TCRLA_Public/060525.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

          Thursday, May 25, 2006, Vol. 7, Issue 103

                            Headlines

A R G E N T I N A

BANCO RIO: Will Give Out Cash Dividends to Shareholders in 2008
BIOIMAGEN SA: Trustee Won't Verify Proofs of Claim After June 12
CAMPINS MORENO: Creditors Must File Proofs of Claim by June 22
INTERMODE SRL: Creditors Must Present Proofs of Claim by June 11
LLAFE SA: Individual Reports Due in Court on July 7

REALY SA: Seeks Reorganization Approval from Court
RENACE CONSTRUIR: Trustee to Validate Claims Until June 22
RODRIGUEZ ABEL: Individual Reports Due in Court on June 20
SIRKAM SRL: Creditors' Claims Verification Ends on June 27
VIDEGARD SA: Asks Court Approval to Restructure Debts

VIVIANA NOEMI: Validation of Creditors' Claims Ends on June 11

* ARGENTINA: Calyon Bank Gets Involved in Pulp Mill Dispute

B A H A M A S

WINN-DIXIE: Jenner OK'd as Special Insurance Litigation Counsel
WINN-DIXIE: Judge Funk Approves PwC's Retention Supplement

B E R M U D A

ARCH CAPITAL: A.M. Best Rates US$125M 7.875% Shares at BB
DBT TRADING: Creditors Must File Proofs of Claim by June 9
FOSTER WHEELER: Stronger Risk Profile Cues S&P to Raise Ratings
MAN VANTAGE: Creditors Must File Proofs of Claim by June 2
STERLING CAPITAL: Proofs of Claim Filing Ends on June 2

B O L I V I A

* BOLIVIA: Requests US for Preferential Trade Terms Extension

B R A Z I L

BANCO BRADESCO: Plans to Buy Back 10 Million Shares
BANCO MERCANTIL: Acquires 75% Stake in Minas Gerais Insurer
BANCO NACIONAL: Inks Pact with MTE for Productive Microcredit
COMPANHIA VALE: Posts US$500 Mil. Revolving Credit Line Contract
COMPANHIA VALE: Settles 2006 Prices with Korean & Chinese Firms

GLOBO COMUNICACAO: Consents to Sell Net's Shares to Embratel
GOL LINHAS: Vice President Says Company Might Bid for Varig
PETROLEO BRASILEIRO: Concludes Consent Solicitation
PETROLEO BRASILEIRO: Gains Stake in 3 Angolan Exploratory Blocks
PETROLEO BRASILEIRO: Develops New Technology in Producing Diesel

VARIG: Gol Linhas Might Submit Bid Proposal for Airline's Assets

C A Y M A N   I S L A N D S

ADUSAY: Sets June 1 as Last Day for Proofs of Claim Filing
CRANSTON STREET: Liquidators Won't Accept Claims After June 1
ORICO HERMES: Liquidators Present Wind Up Accounts on June 1
PGS FOCUS: Moves Final Shareholder Meeting to June 1
PGS FOCUS (HOLDINGS): Final Shareholders Meeting Moved to June 1

SOUNDVIEW US: Creditors Must Present Proofs of Claim by June 1
STARVIEW OPPORTUNITIES: Proofs of Claim Must Be Filed by June 1
STARVIEW PARTNERS: Verification of Claims Ends on June 1
STBL FUNDING: Sets June 1 Deadline for Proofs of Claim Filing
WASHINGTON STREET: Filing of Proofs of Claim Ends on June 1

C U B A

REPSOL YPF: Inks Contract for Exploration of Six Offshore Blocks

D O M I N I C A N   R E P U B L I C

AES CORP.: Unit Denies Ownership in Electric Distributor

E L   S A L V A D O R

SPECTRUM BRANDS: Posts US$563,000 Net Loss in 2nd Fiscal Quarter
SPECTRUM BRANDS: Entered into Third Amendment under Credit Pact

F R E N C H   G U I A N A

DIGICEL LTD: Names Eric Viel as CEO for French West Indies Unit

H O N D U R A S

* HONDURAS: Pres. Zelaya Grateful to Venezuela for Cheap Fuel

J A M A I C A

SUGAR COMPANY: Government to Borrow US$5 Bil. to Pay Debts

M E X I C O

J.L. FRENCH: Inks US$255M Goldman & Morgan Stanley's Exit Pact
MORELOS: Moody's Assigns Ba1 Local Currency Rating on Loans
TV AZTECA: Makes US$68 Million Cash Distribution to Shareholders

P E R U

SIDERPERU: Aceros Arequipa Wants to Bid in Stake Auction

P U E R T O   R I C O

CARIBBEAN RESTAURANTS: S&P Lowers Corporate Credit Rating to B
KMART CORP: Asks Court for Summary Judgment on Kersh's Claim
PIER 1 IMPORTS: Annual Stockholders Meeting Scheduled on June 22
RENT-A-CENTER: Moody's Lifts Rating on US$330 Mil. Notes to Ba3

T R I N I D A D   &   T O B A G O

BWIA WEST: T&T Stock Exchange Junks Request to Extend Suspension

U R U G U A Y

BANKBOSTON NA: Unit Earns UYU42.7 Million in Period-Ended April

* URUGUAY: Calyon Bank Gets Involved in Pulp Mill Dispute

V E N E Z U E L A

ARVINMERITOR INC: Replacing US$900M Revolving Facility due 2008
ARVINMERITOR INC: S&P Puts BB Sr. Unsecured Rating on Neg. Watch
BANCO INDUSTRIAL: Venezuelan Gov't Intends to Buy Bolivian Bank
CITGO PETROLEUM: Valero's Interest in Buying Houston JV Remains


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BANCO RIO: Will Give Out Cash Dividends to Shareholders in 2008
---------------------------------------------------------------
Banco Rio de la Plata, a unit of Spanish Grupo Santander in
Argentina, plans to distribute cash dividends to shareholders in
2008, a bank source informed Business News Americas.

According to BNamericas, the source said that the distribution
was made possible due to a balance sheet strengthening plan
carried out over the last few years.

BNamericas relates that the strengthening of the balance sheet
helped resuscitate Banco Rio in the first quarter 2006 since an
economic and financial crisis in 2001 and 2002.  The bank saw
ARS33.2 million profits in the first quarter of 2006.

The source was quoted by BNamericas as saying that, as part of
the plan, a new US$25.8 million capital increase was set this
week by Grupo Santander as well as other shareholders.  This
would end the bank's capitalization need.

BNamericas recalls that the parent company capitalized Banco Rio
with US$370 million in 2005.

The source told BNamericas that while new shares were issued to
turn two of the capital injections in 2005 into shareholders'
equity, an increase in capital in December 2005 and the new
increase will be used to make up for Banco Rio's accumulated
losses.

Headquartered in Buenos Aires, Argentina, Banco Rio de la Plata
is an Argentinean private bank providing a range of financial
services, including retail, corporate, and merchant banking,
insurance, credit cards and fund management, to individuals,
companies of all sizes, financial institutions and the public
sector (both provincial and national).  The company has a
network of approximately 280 branches and employs over 5,000
serving over 1 million customers.  It is part of the Latin
American franchise of Banco Santander Central Hispano, which
holds over 80% of the bank's share capital.

                        *    *    *

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

                        *    *    *

As reported in the Troubled Company Reporter on May 17, 2006,
Fitch Ratings affirmed these ratings of Banco Rio de la
Plata:

   -- Individual 'E'; and
   -- Support '5'.


BIOIMAGEN SA: Trustee Won't Verify Proofs of Claim After June 12
----------------------------------------------------------------
Court-appointed trustee Emilio Omar Abraham will stop validating
claims against bankrupt company Bioimagen S.A. by June 12, 2006,
Infobae reports.

Mr. Abraham will present the validated claims in court as
individual reports on Aug. 8, 2006.  The trustee will also
submit a general report on the case on Sept. 20, 2006.

The debtor can be reached at:

         Bioimagen S.A.
         Zuviria 2147
         Buenos Aires, Argentina

The trustee can be reached at:

         Emilio Omar Abraham
         Viamonte 1592
         Buenos Aires, Argentina


CAMPINS MORENO: Creditors Must File Proofs of Claim by June 22
--------------------------------------------------------------
Creditors against Campins Moreno S.R.L. are required to submit
proofs of claim by June 22, 2006.  Infobae relates that the
claims will undergo a verification phase.  Claims that are
verified will then be submitted in court as individual reports
on Sept. 5, 2006.

A general report, which will contain the company's audited
business records as well as a summary of events pertaining to
the liquidation, will be presented in court on Oct. 26, 2006.

A Buenos Aires court declared Campins Moreno bankrupt and
appointed Alfredo Alberto A. Figliomeni as trustee.

The debtor can be reached at:

         Campins Moreno S.R.L.
         Albarracin 1942
         Buenos Aires, Argentina

The trustee can be reached at:

         Alfredo Alberto A. Figliomeni
         Agrelo 4240
         Buenos Aires, Argentina


INTERMODE SRL: Creditors Must Present Proofs of Claim by June 11
----------------------------------------------------------------
Creditors of bankrupt company Intermode S.R.L. are required to
present proofs of their claim to Alberto Mateo, the court-
appointed trustee, by June 11, 2006, La Nacion reports.
Creditors who fail to submit the required documents by the said
date will not qualify for any post-liquidation distributions.

Buenos Aires' Court No. 22 declared the company bankrupt at the
behest of Obra Social de Empleados de Comercio y Actividades
Civiles, which the company owes US$4,899.17.

Clerk No. 44 assists the court on the case.

The debtor can be reached at:

         Intermode S.R.L.
         Lavalle 1362
         Buenos Aires, Argentina

The trustee can be reached at:

         Alberto Mateo
         Piedras 153
         Buenos Aires, Argentina


LLAFE SA: Individual Reports Due in Court on July 7
---------------------------------------------------
Court-appointed trustee Estudio Manfredi - Gonzalez Sturla
stopped verifying claims from bankrupt company Llafe S.A.'s
creditors yesterday, May 24, 2006.  Infobae relates that
verified claims will be used as basis in creating individual
reports, which will be due in court on July 7, 2006.

A general report is expected in court on September 4, 2006.

The debtor can be reached at:

         Llafe S.A.
         25 de Mayo 158
         Buenos Aires, Argentina

The trustee can be reached at:

         Estudio Manfredi - Gonzalez Sturla
         Avenida Rivadavia 789
         Buenos Aires, Argentina


REALY SA: Seeks Reorganization Approval from Court
------------------------------------------------
Buenos Aires Court No. 10 is currently reviewing the merits of
the reorganization petition filed by Realy S.A.  The Company
filed the request after defaulting on its debt payments, the
Argentine daily La Nacion reports.

The reorganization petition, if granted by the court, will allow
Realy S.A. to negotiate a settlement with its creditors in order
to avoid a straight liquidation.  Clerk No. 19 assists the court
on this case.

The debtor can be reached at:

           Realy S.A.
           Alicia Moreau de Justo 1050
           Buenos Aires, Argentina


RENACE CONSTRUIR: Trustee to Validate Claims Until June 22
----------------------------------------------------------
Court-appointed trustee Oscar Ricardo Scally will stop
validating claims against bankrupt company Ranace Construir
S.R.L. after June 22, 2006, Infobae reports.

Mr. Scally will present the validated claims in court as
individual reports on Aug. 18, 2006.  The trustee will also
submit a general report on the case on Sept. 25, 2006.

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

The trustee can be reached at:

         Oscar Ricardo Scally
         Arenales 875
         Buenos Aires, Argentina


RODRIGUEZ ABEL: Individual Reports Due in Court on June 20
----------------------------------------------------------
Court-appointed trustee Monica Graciela Terranova stopped
verifying claims from Rodriguez Abel Omar y Spada Silvia Noemi
S.H.'s creditors on May 5, 2006.  Infobae relates that verified
claims will be used as basis in creating individual reports,
which will be due in court on June 20, 2006.

A general report is expected in court on Aug. 16, 2006.  An
informative assembly is scheduled on Feb. 27, 2007.

Infobae adds that a court in Concepcion del Uruguay, Entre Rios
approved the company's to petition to reorganize.

The trustee can be reached at:

         Monica Graciela Terranova
         L. Lopez 927 Concepcion del Uruguay
         Entre Rios, Argentina


SIRKAM SRL: Creditors' Claims Verification Ends on June 27
----------------------------------------------------------
Analia Mild, court-appointed trustee for the bankruptcy case of
Sirkam S.R.L., has started verifying creditors' claims.
Verification phase will end on June 27, 2006.

La Nacion relates that Buenos Aires' Court No. 10 declared the
company bankrupt at the request of Mauricio Vargas, whom the
company owes US$24,563.85.

Clerk No. 20 assists the court in this case.

The debtor can be reached at:

         Sirkam S.R.L.
         11 de Septiembre 4847
         Buenos Aires, Argentina

The trustee can be reached at:

         Analia Mild
         Lavalle 2024
         Buenos Aires, Argentina


VIDEGARD SA: Asks Court Approval to Restructure Debts
-----------------------------------------------------
Buenos Aires Court No. 22 is reviewing the merits of Videgard
S.A.'s petition to reorganize.  La Nacion recalls that the
Company filed the petition following cessation of debt payments
on January 2006.  A reorganization will allow Videgard to avoid
bankruptcy by negotiating a settlement with its creditors.

Clerk No. 44 is assisting the court on the Company's case.

The debtor can be reached at:

          Videgard S.A.
          Parana 557
          Buenos Aires, Argentina


VIVIANA NOEMI: Validation of Creditors' Claims Ends on June 11
--------------------------------------------------------------
The validation of creditors' proofs of claim against Viviana
NoemĄ Lorenzo y Carlos Enrique Schiaffino Sociedad de Hecho, a
company under reorganization, will end on June 11, 2006,
Argentine daily La Nacion reports.

Buenos Aires' Court No. 22 approved the company's petition for
reorganization filed after the company defaulted on its debt
payments.  Alberto Mateo was appointed as trustee.

An informative assembly will be held on March 21, 2007.
Creditors will vote to ratify the completed settlement plan
during the said assembly.

The city's Clerk No. 43 assists the court on the case.

The debtor can be reached at:

         Viviana Noemi Lorenzo y Carlos Enrique
         Schiaffino Sociedad de Hecho
         Avenida Triunvirato 2936
         Buenos Aires, Argentina

The trustee can be reached at:

         Alberto Mateo
         Piedras 153
         Buenos Aires, Argentina


* ARGENTINA: Calyon Bank Gets Involved in Pulp Mill Dispute
-----------------------------------------------------------
French bank Calyon became involved in the Uruguay-Argentina pulp
mill dispute after several groups charged the bank with
infringing the Equator Principles, which it has signed with
other international banks to make responsible investments
regarding environmental and social issues, Inter Press Service
reports.

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

The two pulp mills are Orion, which is sponsored by Botnia of
Finland for 1.2 billion dollars, and Celulosas de M'Bopicua,
which is backed by ENCE of Spain for 600 million dollars.

The Argentine complaints against the harmful effects of the pulp
mill are reiterated by global environmental groups that want to
bring up the involvement of private banks in the construction of
the pulp mills, which according to them are ironically esteemed
for their environmental consciousness, ISP relates.

Calyon and Swedish Nordea disclosed in a press release that 60%
of the Orion pulp mill would come from investments from Botnia's
shareholders and the other 40% will be through external loans.

Calyon, the international financial arm of France's Credit
Agricole, was one of the first banks to sign the Equator
Principles, ISP says.

The groups that complained against involved lenders include:

   -- Friends of the Earth Uruguay,
   -- Friends of the Earth International,
   -- Centre for Human Rights and Environment of Argentina,
   -- Banktrack of the Netherlands,
   -- Guayubira of Uruguay and
   -- World Rainforest Movement.

ISP says that the groups promised to deal with Calyon and Nordea
for their involvement with the financing of the pulp mills, and
to coerce the banks to withdraw their support on the project, as
they have done with ING, which they have convinced not to invest
US$480 million into Botnia's plant.

ISP also reports that companies with investments in the project
requested US$400 million from the World Bank, but until now, the
request has not yet been consented.

If the project pushes through, a combined production of
1.5 billion tons would make these pulp mills two of the largest
pulp production endeavors and also as Uruguay's largest
investment with direct foreign control, ISP says.

"It is unfortunate that Calyon, another Equator Bank, has
stepped into this arrangement," Johan Frijns, coordinator of
BankTrack, told ISP, "ING did the right thing and pulled its
investments."

The pulp mills are situated near Gualeguaychu in Argentina.  The
residents have recently complained to the Compliance Advisory
Ombudsman of the IFC and to the Inter-American Commission on
Human Rights on the harmful effects of the project, ISP relates.

ISP reports that in March the auditing body of the IFC found out
that the IFC's Environmental and Social Review procedures has
not practiced sufficient thoroughness to come up with an outcome
that observes the body's disclosure policy.  The procedures
contain the processes that IFC staff has to abide when
evaluating if a corporation should finance a certain project.

The environmentalists have referred this incident before the
International Court of Justice to substantiate its claim against
Calyon if it will continue financing Botnia, making the lender a
violator of human rights and environmental law, ISP relates.

According to these groups, many international companies have
reallocated their operations in poorer nations with more lenient
regulations because of the fact that in recent years, the
European legal system has been more rigid in its laws, ISP says.

"They are moving these companies south to places like Uruguay
where they have less strict environmental laws," Jorge Daniel
Taillant of CEDHA told ISP in a phone interview from Argentina.


                        *    *    *

Fitch Ratings assigned these ratings on Uruguay:

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


                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

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




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WINN-DIXIE: Jenner OK'd as Special Insurance Litigation Counsel
---------------------------------------------------------------
The Hon. Jerry Funk of the U.S. Bankruptcy Court for the Middle
District of Florida gave Winn-Dixie Stores, Inc., and its
debtor-affiliates authority to employ Jenner & Block LLP as
their special insurance litigation counsel.

Before the Debtors filed for bankruptcy, Jenner has advised them
with respect to a variety of insurance-related matters.  Jenner
has served as the Debtors' counsel in a breach of contract
lawsuit seeking payment of more than $8,900,000 owed by XL
Insurance America, Inc., or, in the alternative, Marsh USA Inc.,
in connection with hurricane damage incurred by the Debtors in
2004, D. J. Baker, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in New York, relates.

As a result of increased activity in the Litigation and the
likelihood that it will proceed to trial, the Debtors anticipate
that the cost of services they will require from Jenner going
forward will exceed the monthly and case caps provided in the
OCP Order, Mr. Baker tells the Court.

Jenner's hourly rates are:

                 Professional             Hourly Rate
                 ------------             -----------
                 John H. Mathias, Jr.         $670
                 Christopher C. Dickinson      485
                 John P. Wolfsmith             420
                 Joseph F. Arias               325
                 Rebecca L. Miller             160
                 Project Assistants            120

John H. Mathias, Jr., Esq., a partner at Jenner, discloses that
during the 90 days prior to the petition date, the Debtors paid
the firm in the ordinary course prepetition legal fees and
expenses:

               Date of Payment              Amount
               ---------------              ------
                 11/29/2004                 $1,920
                 01/17/2005                  1,125
                 01/16/2005                  1,541
                 02/18/2005                 12,560

There remain unpaid prepetition fees and expenses totaling
$1,700, to which Jenner waives any claim, Mr. Mathias tells the
Court.

To the best of the Debtors' knowledge:

    (a) Jenner neither holds nor represents any interest adverse
        to their estates with respect to the services for which
        it will be employed; and

    (b) Jenner has had no affiliation with the Debtors, their
        creditors or any party-in-interest, or their attorneys
        and accountants, the United States Trustee, any person
        employed in the office of the United States Trustee, or
        the Bankruptcy Judge presiding over the Debtors' cases.

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 $2,235,557,000 in total assets and
$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


WINN-DIXIE: Judge Funk Approves PwC's Retention Supplement
----------------------------------------------------------
The Hon. Jerry Funk of the U.S. Bankruptcy Court for the Middle
District of Florida approves Winn-Dixie Stores, Inc., and its
debtor-affiliates' supplement to PricewaterhouseCoopers LLP's
retention.

The Debtors advise the Court that they need the services of PwC
to ensure that the security of their information technology
remains at the highest possible level.

Although PwC has previously been retained to provide services to
the Debtors, the current terms of PwC's approved retention do
not encompass services related to the enhancement of the
Debtors' information technology security, D. J. Baker, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, in New York, explains.

Accordingly, the Debtors propose to supplement the terms of
PwC's retention to include, effective as of April 14, 2006:

    (1) IT Security Strategy Development -- PwC will work with
        the Debtors to:

        (a) confirm the current state of security;

        (b) determine the relevant business objectives, risks,
            and regulatory and legal drivers for security;

        (c) establish a desired future state; and

        (d) create a maturity model to assist with the
            prioritization and implementation of security
            initiatives over the next 12 to 24 months.

        To that end, PwC will focus on these areas of security:

        * Governance -- Defining the purpose and scope of the
          information technology security governance program;

        * Policies, Procedures, and Standards -- Determining the
          structure around security policy management and
          defining a framework within which to develop new
          policies, procedures, and standards;

        * Awareness & Training -- Defining current security
          awareness initiatives and identifying new programs to
          support the strategy;

        * Risk Identification -- Defining the desired components
          of a program to identify risks to information security
          assets;

        * Information Management -- Defining the desired
          components of a program to analyze security events and
          escalate those that present a risk to the business;

        * Remediation -- Defining the desired actions for a
          program to mitigate and resolve security incidents;

        * Change Control -- Establishing a framework for
          security to leverage and interact with current change
          control processes;

        * Asset Management -- Defining the integration points
          with existing or proposed asset management processes
          to leverage asset data and increase the value and
          effectiveness of the IT security strategy; and

        * Reporting -- Defining the desired scope of security
          reporting and determining the appropriate integration
          with existing reporting capabilities and developing a
          framework to allow future security initiatives to
          support that scope.

    (2) Capability Development -- PwC will work with the Debtors
        to establish a sustainable IT Governance Program by:

        (a) developing the charter;
        (b) defining team composition;
        (c) defining the organizational structure;
        (d) establishing sponsorship;
        (e) defining roles and responsibilities;
        (f) defining decision processes; and
        (g) defining accountabilities.

PwC will also work with the Debtors to develop an information
classification model to allow the Debtors to prioritize security
efforts, allocate appropriate security resources, and align
security control initiatives to business objectives and the
security strategy by:

    (i) identifying the scope of information assets;
   (ii) identifying the relevant business risks;
  (iii) establishing a classification scheme; and
   (iv) classifying a sample of information assets.

Mr. Baker notes that PwC has indicated its willingness to
provide the services.

In a letter agreement between the Debtors and PwC dated
March 28, 2006, PwC indicated that its engagement is estimated
to take eight weeks to complete, beginning May 1, 2006.

Except as supplemented, the parties have agreed that the terms
of PwC's retention in the Debtors' Chapter 11 cases will remain
the same, Mr. Baker assures the Court.

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 $2,235,557,000 in total assets and
$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-
7000).




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


ARCH CAPITAL: A.M. Best Rates US$125M 7.875% Shares at BB
---------------------------------------------------------
A.M. Best Co. assigned a debt rating of "bb" to Arch Capital
Group Limited's US$125 million 7.875% non-cumulative Series B
preferred shares. The outlook for this rating is stable.  Arch's
remaining debt ratings and the financial strength rating of A-
of Arch Reinsurance Ltd. (Hamilton, Bermuda) and its affiliated
companies are unchanged.

The proceeds from the preferred share offering will be used for
general corporate purposes.  A.M. Best anticipates that these
proceeds will be used to support additional opportunities in
lines of business that experience rate increases and meet Arch's
return expectations.  Arch may also redeem the Series B
preferred shares in whole or in part at a redemption price of
US$25 per share on or after May 15, 2011.  Following the
transaction, Arch's debt-to-adjusted capital will be
approximately 19%, and fixed charge coverage is expected to be
in the high single-digit range.

The rating reflects Arch's excellent capitalization, solid
operating performance and its well regarded operating franchise
in both its primary and reinsurance business.  The combination
of Arch's

   -- solid historical profits,
   -- strong risk management capability and
   -- demonstrated financial flexibility

has enabled it to withstand the heightened loss activity of the
2005 hurricane season.

Partially offsetting these strengths is Arch's higher
underwriting leverage position relative to its peer group,
combined with the overall casualty orientation of its
reinsurance and insurance lines of business.  Despite Arch's
loss reserve adequacy based on current actuarial studies,
approximately 60% of its book of business is in long-tail
casualty lines.  Due to the company's relatively short operating
history and long-tail nature of the casualty business, the
pricing and reserve adequacy of these lines will not be fully
apparent for several years. A.M. Best will continue to monitor
Arch's loss reserve development, capitalization and operating
performance.

This debt rating has been assigned:

   -- "bb" on US$125 million 7.875% non-cumulative Series B
      preferred shares.


DBT TRADING: Creditors Must File Proofs of Claim by June 9
----------------------------------------------------------
Creditors of DBT Trading Solutions Limited have until June 9,
2006, to prove their claims to Marco Montarsolo, 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 9 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. Montarsolo.

A final general meeting will be held at the office of the
liquidator on June 23, 2006, at 10:00 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 its assets on May 16, 2006.

The liquidator can be reached at:

           Marco Montarsolo
           Sofia House, 1st Floor
           48 Church Street
           Hamilton, Bermuda


FOSTER WHEELER: Stronger Risk Profile Cues S&P to Raise Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Clinton, New Jersey-based engineering and construction
company Foster Wheeler Ltd. to 'B+' from 'B-'.

At the same time, Standard & Poor's assigned its 'BB-' bank loan
rating and '1' recovery rating to the company's five-year,
US$250 million credit facility due 2010, indicating a high
expectation (100%) of full recovery of principal in the event of
a payment default.

Standard & Poor's also raised its rating on the company's senior
secured notes to 'B+' from 'CCC+'.  US$50 million of the notes
were exchanged for common equity on April 27, 2006, with the
remaining US$61.5 million to be redeemed for cash on May 25,
2006.  Upon completion of the redemption, Standard & Poor's will
remove its ratings on the senior notes.

All ratings were removed from CreditWatch where they were placed
with positive implications on March 22, 2006.  The outlook is
stable.

"The upgrade reflects Foster Wheeler's stronger business risk
profile, as new orders, backlog levels, risk management policies
and profitability have all markedly improved in the past couple
of years," said Standard & Poor's credit analyst James T.
Siahaan.  The ratings also reflect improvements in the company's
financial risk profile, marked by the company's leverage
reduction initiatives this year.

Backlog in the company's engineering and construction segment
has risen to US$3.4 billion as of March 31, 2006, up from US$1.3
billion for the corresponding period in 2004; this was driven by
backlog increases of 489% in oil and gas and 469% in
petrochemicals.  The U.S. power market, after a period of
weakness, has also seen a renewal in capital spending -- backlog
in the company's Global Power Group totaled US$1.2 billion at
the end of the first quarter, which is an 89% increase from
2004.

Backlog levels are the company's highest since 2002, and are now
more in line with historical levels.  More importantly, the
quality of the backlog seems strong, as the scope in the
backlog, which is defined as the portion excluding zero-margin
reimbursable flow-through costs, has also increased, to US$2.5
billion from US$1.5 billion.


MAN VANTAGE: Creditors Must File Proofs of Claim by June 2
----------------------------------------------------------
Creditors of Man Vantage Limited are given until June 2, 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 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
Ms. Mathias.

A final general meeting will be held at the office of the
liquidator on June 30, 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 18, 2006.

The liquidator can be reached at:

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


STERLING CAPITAL: Proofs of Claim Filing Ends on June 2
-------------------------------------------------------
Creditors of Sterling Capital Advisors Limited are given until
June 2, 2006, to prove their claims to Mr. 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 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
Mr. Mayor.

A final general meeting will be held at the office of the
liquidator on June 23, 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 18, 2006.

The liquidator can be reached at:

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

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


* BOLIVIA: Requests US for Preferential Trade Terms Extension
-------------------------------------------------------------
The government of Bolivia is seeking an extension of the
deadline for the preferential trade terms with the United
States, Agencia Boliviana de Informacion, Bolivia's government-
run news service, reports.

ABI relates that the US Andean Trade Promotion and Drug
Eradication Act was passed in 2002 to discourage the production
of crops used in making illegal drugs in Bolivia, Colombia,
Ecuador and Peru, and offers preferential tariff treatment on
other products.

ABI relates that a commission of public and private sector
officials plan to push for the extension of the act, which will
expire in December.

According to Dow Jones Newswires, Colombia and Peru have
negotiated new free trade agreements to replace the ATPDEA,
while Ecuador's free trade talks were held up after a conflict
with the U.S. firm Occidental Petroleum Corporation.  Bolivia
did not start any negotiation because of the opposition
occurring in the country and the fragility of its previous
government.

Carlos Villegas, the minister in development planning, told ABI
that the Bolivian government, however, held informal talks with
some officials in the U.S., who were willing to listen to
Bolivia's concerns.

The government will also hold discussions with Mexico and Brazil
to implement a trade similar to ATPDEA, Minister Villegas was
quoted by Dow Jones as saying.

                        *    *    *

Fitch Ratings assigns 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 BRADESCO: Plans to Buy Back 10 Million Shares
---------------------------------------------------
Banco Bradesco, a Brazilian private bank, plans to buy back 10
million of its shares, Business News Americas reports.

According to BNamericas, these shares include the 5 million
common shares as well as the 5 million preferred shares.

Bradesco announced plans to buy the shares at market price
within six months, BNamericas relates.

The company told BNamericas that it has 640 million outstanding
stocks -- 176 million common shares, and 463 million preferred
shares.

Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco
-- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management.  Bradesco has branches throughout Brazil as
well as one in New York, two in the Bahamas, and four in the
Cayman Islands.  Bradesco offers Internet banking, insurance,
pension plans, annuities, credit card services (including
football-club affinity cards for the soccer-mad population), and
Internet access for customers.  The bank also provides personal
and commercial loans, along with leasing services.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 23, 2006,
Moody's Investors Service shifted Banco Bradesco S.A.'s 'C-'
bank financial strength rating to positive from stable.


BANCO MERCANTIL: Acquires 75% Stake in Minas Gerais Insurer
-----------------------------------------------------------
Banco Mercantil do Brasil, a bank based in Belo Horizonte, told
the Sao Paulo stock exchange -- Bolsa de Valores do Estado de
Sao Paulo -- and securities and exchange commission, Comissao de
Valores Mobiliarios, that it acquired a 75% stake in Minas
Brasil, the largest insurer in Minas Gerais.

According to BNamericas, Banco Mercantil purchased 10,426
ordinary shares and 582 preferred shares for an undisclosed
amount.

Some of the members of the Araujo family, who controls both
Banco Mercantil and Minas Brasil, said they wanted to sell and
since the Banco Mercantil wanted to strengthen its presence in
the insurance market, it bought the shares, Andre Brasil -- the
director of the purchasing bank -- told local financial daily
Gazeta Mercantil.

                        *    *    *

As reported in the Troubled Company Reporter on April 12, 2006,
Standard & Poor's Ratings Services said that it affirmed its 'B'
long-term counterparty credit rating on Banco Mercantil do
Brasil S.A.  The outlook was revised to negative from stable.


BANCO NACIONAL: Inks Pact with MTE for Productive Microcredit
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
and the Ministry of Labor and Employment or MTE entered into an
agreement to implement the Institutional Development Plan of the
National Program of Oriented Productive Microcredit.  The
agreement, in the amount of BRL2.45 million, will be supported
by non-reimbursable funds from the technical cooperation program
entered into between BNDES and Interamerican Development Bank.

PDI lists a group of actions -- preparation of organizational
diagnosis on microcredit institutions, seminars, qualification
programs, and training, among others -- to improve the
management and organization of the financial institutions
involved with the productive credit.

The document was signed by the minister of Labor and Employment,
Luiz Marinho, and by the director of BNDES's Social Inclusion
area, Elvio Gaspar, representing the president of the Bank,
Demian Fiocca.

The agreement between BNDES and MTE will afford the
strengthening of about 50 institutions operating microcredit in
Brazil, allowing the BNDES Microcredit Program to carry a more
comprehensive portfolio of operations, with national scope.

During the event, at MTE's head office in Brasilia, Elvio Gaspar
announced BNDES board approval of two projects in the ambit of
PDI, for institutional strengthening:

   -- the Central Cooperative for Rural Credit with Solidarity
      Interaction or Cresol Baser, in the amount of
      BRL956,000, and

   -- Banco do Estado do Sergipe or Banese, in the amount of
      BRL527,000.

The BNDES's director also announced the approval of two
productive microcredit operations, in the amount of BRL13
million, of which
BRL8 million to Banco Cooperativo Sicredi or Bansicredi and
BRL5 million to the Supporting Center of Small Entrepreneurs for
the State of Maranhao.

The BNDES Microcredit Program carries today a portfolio of
BRL41.4 million, with twelve projects approved, of which BRL39
million have already been contracted.  In addition, BNDES
carries a potential portfolio in the amount of BRL30.6 million.

Disbursement estimates for BNDES Microcredit Program in 2006
amount to BRL15 million, just taking into consideration the
twelve projects approved up to now.  Such amount may increase to
BRL23 million, if we include the BRL8 million disbursements
forecasted for the potential portfolio.

                        *    *    *

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


COMPANHIA VALE: Posts US$500 Mil. Revolving Credit Line Contract
----------------------------------------------------------------
Companhia Vale do Rio Doce aka CVRD disclosed a contract
involving a US$500 million revolving credit line, with a five-
year maturity.

The facility fee is 0.09% p.a. and in the case of utilization
the interest rate will be equal to Libor plus 0.235% p.a.

The revolving credit line was arranged by a bank syndicate that
includes:

  -- HSBC,
  -- Citigroup,
  -- ABN Amro N.V.,
  -- Bradesco,
  -- BankBoston N.A.,
  -- Calyon,
  -- Deutsche Bank,
  -- Dresdner Bank,
  -- Export Development Canada-EDC,
  -- ING Bank N.V.,
  -- Istituto Bancario San Paolo,
  -- JP Morgan Chase,
  -- Mizuho Bank,
  -- Santander,
  -- Standard Chartered Bank,
  -- Tokyo Mitsubishi, and
  -- WestLB AG.

The amount of lines offered equals to approximately two and a
half the volume originally demanded by CVRD.

The transaction was structured in a way as not to have any
restriction related to sovereign risk on the disbursement of
this credit line.

The revolving credit line adds to the US$650 million committed
bank lines obtained by the company in 2005, representing the
availability of significant liquidity, contributing to improve
its risk perception.

Unlike the committed bank facility, which has a two year
utilization period and a two year term for amortization, the
revolving credit line can be used at any time, for a longer
period, five years, and with a lower cost, conditions that are
derived from a better risk assessment by the world financial
markets and from the recent raising of CVRD rating by Standard &
Poor's to BBB+.

The access to an inventory of credit lines -- committed and
revolving -- of US$1.15 billion enhances CVRD liquidity and
allows a more efficient cash management, being consistent with
its strategic focus on cost of capital reduction.

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'.


COMPANHIA VALE: Settles 2006 Prices with Korean & Chinese Firms
---------------------------------------------------------------
Companhia Vale do Rio Doce aka CVRD concluded the iron ore price
negotiations for 2006 with Pohang Steel Corporation aka Posco,
the largest Korean steel maker, and China Steel Corporation aka
CSC, one of the largest steel maker in Asia.

As negotiated, iron ore prices for Carajas aka SFCJ and Southern
System aka SSF fines increased by 19.0% relatively to 2005.
Blast furnace pellet price from Tubarao will be reduced by 3.0%

CVRD and Posco developed a long and mutually beneficial
relationship that completes its 30th anniversary this year and
the current agreement involves an amount of iron ore fines and
pellets of approximately 12 million tons for 2006.

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.

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: Consents to Sell Net's Shares to Embratel
------------------------------------------------------------
Globo Comunicacao e Participacoes S.A. has agreed, together with
its controlled subsidiary Globosat Programadora Ltda., to sell
to Empresa Brasileira de Telecomunicacoes S.A. - Embratel:

   (a) 200 million preferred shares issued by Net Servicos de
       Comunicacao S.A., representing respectively 8.54% and
       5.06% of Net's preferred capital and total capital, for a
       price per share equal to the average market price of
       Net's preferred shares as quoted in the Sao Paulo's Stock
       Exchange - BOVESPA at the closing of the 30 immediate
       preceding trading sessions; and

   (b) the right to convert into new shares of Net certain tax
       credits assessable by Net as a result of the amortization
       of a special premium reserve booked by Net as provided
       for in Instruction nr. 319/99, as amended, issued by the
       Brazilian Securities Commission - Comissao de Valores
       Mobiliarios - CVM, for a total price of BRL69.3 million.

The Shares are currently pledged as collateral for a certain
loan granted to Distel Holding S.A., a company controlled by
Globo.  The proceeds resulting from the sale of the Shares will
be applied to partially prepay the Loan.  The new shares issued
by Net as a result of the conversion of the tax credits as
referred to above will be bound to the Shareholders' Agreements
of Net, dated March 21, 2005.

The proceeds of the transaction related to certain tax credits
assessable will be deposited on the Brazilian cash collateral
account for future prepayment of the outstanding bonds issued by
Globo pursuant to the Consolidated Trust Deed dated as of July
20, 2005.

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.


GOL LINHAS: Vice President Says Company Might Bid for Varig
-----------------------------------------------------------
Brazil's low-cost airline Gol Linhas Aereas Inteligentes may bid
in an auction for the assets of local flagship airline Viacao
Aerea Riograndense or Varig, said Gol's operations vice-
president, according to the local Estado newswire Wednesday.

David Barioni said the company will decide whether to invest or
not after the sale rules are clear and Varig makes data on the
company available, Estado relates.

Gol has grown rapidly since its creation in 2001 to become
Brazil's No. 2 domestic airline, and it is expanding its Latin
American operations.

Varig's administrators plan to auction the company's domestic
and international operating assets within the next two months.

Under the proposals, either all Varig operations will be put up
for sale at a minimum price of US$860 million, or just the
company's domestic assets could be sold, with a minimum price of
US$700 million.

                      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 Eduardo
Zerwes and Vicente Cervo as foreign representatives.  In this
capacity, the foreign representatives 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.

                     About Gol Linhas

Headquartered in Sao Paulo, Brazil, Gol Linhas Areas
Inteligentes S.A. -- http://www.voegol.com.br-- through its
subsidiary, Gol Transportes Aereos S.A., provides airline
services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay.
The company's services include passenger, cargo, and charter
services.  As of March 20, 2006, Gol Linhas provided 440 daily
flights to 49 destinations and operated a fleet of 45 Boeing 737
aircraft.  The company was founded in 2001.

                       *    *    *

On March 21, 2006, Moody's Rating Services assigned a Ba2 rating
on Gol's Long-Term Corporate Family Rating.


PETROLEO BRASILEIRO: Concludes Consent Solicitation
---------------------------------------------------
Petroleo Brasileiro S.A aka Petrobras reported that, through its
subsidiary Petrobras International Finance Company aka PIFCO, it
completed its solicitation of consents from holders of the
Series 2003-A 6.436% Senior Trust Certificates due 2015 issued
by PF Export Receivables Master Trust, a Cayman Islands trust.

The securities are secured by receivables generated from sales
of fuel oil and bunker fuel exported by Petrobras.

The amendments seek to eliminate exports of bunker fuel from the
transaction so that the securities will be collateralized only
by receivables from sales of fuel oil exported by Petrobras.

The securities are currently rated Baa2 by Moody's Investors
Service, BBB- by Standard & Poor's and BBB by Fitch.  All three
rating agencies have indicated that, subject to final review of
the documentation, the current ratings will be affirmed.  The
company also indicated that it expects that MBIA Insurance
Corporation, the financial guarantor and controlling party of
the Series 2003-B Senior Trust Certificates due 2013 also issued
by PF Export Receivables Master Trust and supported by the same
receivables pool, will complete its review and approval of the
documentation and give its consent to the amendments, subject to
receipt of the rating confirmations, prior to settlement.
Assuming MBIA's consent is obtained, settlement is expected to
take place by May 31, 2006, or as soon thereafter as
practicable.

The company engaged Citigroup Global Markets Inc. to act as
solicitation agent in connection with the Consent Solicitation.
Questions regarding the Consent Solicitation should be directed
to:

     Citigroup Corporate and Investment Banking
     Phone: (800) 558-3745 (toll-free)
            (212) 723-6108 (collect)

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+


PETROLEO BRASILEIRO: Gains Stake in 3 Angolan Exploratory Blocks
----------------------------------------------------------------
Petroleo Brasileiro S.A. - Petrobras disclosed that following a
tender bid organized by the Angolan state oil company, Sonangol,
it successfully obtained a stake in 3 Angolan exploratory
blocks, namely blocks 6, 26 and 15.  Petrobras is to be the
operator for blocks 6 and 26.

In the case of the shallow-water block 6, the work to be carried
out by Petrobras over the next four years will focus on
establishing the economic feasibility of a hydrocarbons
reservoir originally discovered about twenty years ago as a
result of special technology developed by the Company's Research
Center, Centro de Petrobras or CENPES, and investigating further
exploratory prospects for drilling and expansion of reserves.

Block 26, located in the deep waters of the Benguela Basin in
southern Angola, is at the current exploratory frontier where
the Company is to conduct exploratory drilling over the next few
years.  These operations will be based on the integration of
geological and geophysical data and analogies with hydrocarbons
models for the west coast of Africa and the east coast of
Brazil.

Block 15 is constituted by an area not yet investigated in
Angolan deep-waters.  This area is located in a perimeter which
has oil fields with reserves of about 3.5 billion barrels and
production of about 600 thousand barrels of oil/day.  The new
area therefore has major potential for new discoveries and has
generated considerable interest and competition among the oil
companies.

Present in Angola since 1979, Petrobras currently has a stake in
Block 2, with its own production of 6,500 barrels/day and
exploratory activities in the deep water Block 34.  The
inclusion of the three new exploratory blocks in its portfolio
is closely aligned to the Strategic Plan and represents a new
phase in the Company's business in Angola, where it will now
take on a new role as operator.

Petrobras' activities in Angola are as:


       Block      Participation(%)      Characteristics
       -----      ----------------      ---------------
         2             27.5                Production
        34              30                 Exploratory
         6              40            Exploratory, Operator
        26              80            Exploratory, Operator
        15               5                 Exploratory


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+


PETROLEO BRASILEIRO: Develops New Technology in Producing Diesel
----------------------------------------------------------------
Petroleo Brasileiro S.A. - Petrobras disclosed that it is
testing a new process , denominated H-Bio, incorporating
vegetable oils for the production of diesel oil at its
refineries.

H-Bio is a refining process that utilizes vegetable oils as an
input, in order to obtain diesel oil, and involves the
hydrogenation of a blend of vegetable oils.  This technology has
been developed by the Petrobras Research Center over the last
eighteen months.

Recent industrial tests, conducted at the Gabriel Passos
Refinery or Regap, confirm the technical feasibility of the
process, and a patent application has already been submitted to
the National Institute of Industrial Property.

The chief benefits of this new industrial process are that it:

   -- allows the use of vegetable oils from a variety of
      sources;

   -- doesn't produce waste requiring special disposal;

   -- produces a higher quality of diesel oil;

   -- complements the biomass usage program in the country's
      energy framework, yielding environmental benefits and
      promoting social inclusion;

   -- introduces flexibility in the load composition for the
      Hydrogenation Unit and optimizes the utilization of
      diesel oil fractions at the refinery;

   -- offers the prospect of minimal vehicle and lab testing,
      since the final product - diesel oil - is already
      used by the Brazilian vehicle fleet; and

   -- requires only normal handling and storage.

It is important to note that the new process does not compete
with the refining of oil to obtain diesel oil, nor with the
biodiesel program, as these are all complementary initiatives,
aimed at increasing the country's supply of diesel oil.

Certain details need to be developed further, in order to make
commercial production of H-bio economically viable.

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: Gol Linhas Might Submit Bid Proposal for Airline's Assets
----------------------------------------------------------------
Brazil's low-cost airline Gol Linhas Aereas Inteligentes may bid
in an auction for the assets of local flagship airline Viacao
Aerea Riograndense or Varig, said Gol's operations vice-
president, according to the local Estado newswire Wednesday.

David Barioni said the company will decide whether to invest or
not after the sale rules are clear and Varig makes data on the
company available, Estado relates.

Gol has grown rapidly since its creation in 2001 to become
Brazil's No. 2 domestic airline, and it is expanding its Latin
American operations.

Varig's administrators plan to auction the company's domestic
and international operating assets within the next two months.

Under the proposals, either all Varig operations will be put up
for sale at a minimum price of US$860 million, or just the
company's domestic assets could be sold, with a minimum price of
US$700 million.

                      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 Eduardo
Zerwes and Vicente Cervo as foreign representatives.  In this
capacity, the foreign representatives 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.

                     About Gol Linhas

Headquartered in Sao Paulo, Brazil, Gol Linhas Areas
Inteligentes S.A. -- http://www.voegol.com.br-- through its
subsidiary, Gol Transportes Aereos S.A., provides airline
services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay.
The company's services include passenger, cargo, and charter
services.  As of March 20, 2006, Gol Linhas provided 440 daily
flights to 49 destinations and operated a fleet of 45 Boeing 737
aircraft.  The company was founded in 2001.

                       *    *    *

On March 21, 2006, Moody's Rating Services assigned a Ba2 rating
on Gol's Long-Term Corporate Family Rating.




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


ADUSAY: Sets June 1 as Last Day for Proofs of Claim Filing
----------------------------------------------------------
Adusay's creditors are required to submit particulars of their
debts or claims by June 1, 2006, to the company's appointed
liquidators, Mark Wanless and Liam Jones.  Failure to do so will
exclude them from receiving the benefit of any distribution that
the company will make.

Adusay started liquidating assets on April 19, 2006.

The liquidators can be reached at:

           Mark Wanless
           Liam Jones
           Maples Finance Jersey Limited
           2nd Floor Le Masurier House
           La Rue Le Masurier
           St. Helier, Jersey JE2 4YE


CRANSTON STREET: Liquidators Won't Accept Claims After June 1
-------------------------------------------------------------
Creditors of Cranston Street 2002-1 Limited are required to
submit particulars of their debts or claims by June 1, 2006, to
the company's appointed liquidators - Carlos Farjallah and Emile
Small.  Failure to do so will exclude them from receiving the
benefit of any distribution that the company will make.

The company started liquidating assets on April 11, 2006.

The liquidators can be reached at:

            Carlos Farjallah
            Emile Small
            Maples Finance Limited
            P.O. Box 1093 George Town
            Grand Cayman, Cayman Islands


ORICO HERMES: Liquidators Present Wind Up Accounts on June 1
------------------------------------------------------------
The sole shareholder of Orico Hermes Holdings will meet with the
company's liquidators, Regina Forman and Darren Riley, for a
final meeting on June 1, 2006, at 10:00 a.m. at:

           BNP Paribas Bank & Trust Cayman Limited
           Royal Bank House, Shedden Road, George Town
           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 23, 2006,
Orico Hermes started liquidating assets on April 21, 2006.
Creditors were required to present proofs of claim to the
liquidators by June 1, 2006.

The liquidators can be reached at:

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


PGS FOCUS: Moves Final Shareholder Meeting to June 1
----------------------------------------------------
The final shareholders meeting of PGS Focus - TR Kingsway Ltd.
has been moved to June 1, 2006 from Dec. 28, 2005.  The meeting
will be held at 10:15 a.m. at the company's registered office.

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 April 13, 2006,
GPF Almatis Holdings Limited started liquidating assets on March
13, 2006.  Verification of creditors' claims against GPF Almatis
Holdings will end on April 24, 2006.

The company's liquidators can be reached at:

            S.L.C. Whicker
            K.D. Blake
            Attention: Caroline Cookson
            P.O. Box 493 George Town
            Grand Cayman, Cayman Islands
            Tel: (345) 945-4331
                 (345) 949-4800
            Fax: 345-949-7164


PGS FOCUS (HOLDINGS): Final Shareholders Meeting Moved to June 1
---------------------------------------------------------------
The final shareholders meeting of wound up company PGS Focus -
TR Kingsway Holdings Ltd. has been moved from Dec. 28, 2005 to
June 1, 2006.  The meeting will be held at 10:00 a.m. at the
company's registered office.

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

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

Parties-in-interest may contact the liquidatosr at:

            S.L.C. Whicker
            K.D. Blake
            Attention: Caroline Cookson
            P.O. Box 493 George Town
            Grand Cayman, Cayman Islands
            Tel: (345) 945-4331
                 (345) 949-4800
            Fax: (345) 949-7164


SOUNDVIEW US: Creditors Must Present Proofs of Claim by June 1
--------------------------------------------------------------
Creditors of Soundview U.S. Treasury 2-Year Note Fund Ltd. are
required to prove their claims to Richard Gordon and Jon Roney,
the company's liquidators, by June 1, 2006, or be excluded from
receiving any distribution or payment that the company will
make.

Creditors are required to send by June 1 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 19, 2006.

The liquidators can be reached at:

         Richard Gordon
         Jon Roney
         Maples Finance Limited
         P.O. Box 1093 George Town
         Grand Cayman, Cayman Islands


STARVIEW OPPORTUNITIES: Proofs of Claim Must Be Filed by June 1
---------------------------------------------------------------
Creditors of Starview Opportunities Access Ltd., which
is being voluntarily wound up, are required to present proofs of
claim by June 1, 2006, to Richard Gordon and Jon Roney, 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:

            Richard Gordon
            Jon Roney
            Maples Finance Limited
            P.O. Box 1093 George Town
            Grand Cayman, Cayman Islands


STARVIEW PARTNERS: Verification of Claims Ends on June 1
--------------------------------------------------------
Richard Gordon and Jon Roney, the liquidators of wound up
company Starview Partners Access Ltd. will verify creditors'
proofs of claim until June 1, 2006.  Creditors of the company
are required to submit particulars of their debts or claims or
be excluded from receiving the benefit of any distribution that
the company will make.

Starview Partners started liquidating assets on April 12, 2006.

The liquidators can be reached at:

            Richard Gordon
            Jon Roney
            Maples Finance Limited
            P.O. Box 1093 George Town
            Grand Cayman, Cayman Islands


STBL FUNDING: Sets June 1 Deadline for Proofs of Claim Filing
-------------------------------------------------------------
Creditors of STBL Funding Corporation are required to submit
particulars of their debts or claims on or before June 1, 2006,
to the company's appointed liquidators - Philippa White and
Emile Small.  Failure to do so will exclude them from receiving
the benefit of any distribution that the company will make.

STBL Funding started liquidating assets on April 18, 2006.

The liquidators can be reached at:

            Philippa White
            Emile Small
            Maples Finance Limited
            P.O. Box 1093 George Town
            Grand Cayman, Cayman Islands


WASHINGTON STREET: Filing of Proofs of Claim Ends on June 1
-----------------------------------------------------------
Creditors of Washington Street 2002-1 Limited, which is being
voluntarily wound up, are required by June 1, 2006, to present
proofs of claim to Carlos Farjallah and Emile Small, the
company's liquidators.

The company started liquidating assets on April 11, 2006.

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

The liquidators can be reached at:

            Carlos Farjallah
            Emile Small
            Maples Finance Limited
            P.O. Box 1093 George Town
            Grand Cayman, Cayman Islands




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


REPSOL YPF: Inks Contract for Exploration of Six Offshore Blocks
----------------------------------------------------------------
Repsol YPF, Hydro of Norway, OVL of India and Cubana de
Petroleos or Cupet of Cuba signed an International Economic
Association Contract in Havana for the exploration of six
offshore blocks that are in the Exclusive Economic Zone of Cuba.

Repsol YPF -- with a 40% stake in the project -- will be the
operator, while the other companies will each have 30% stakes.
For its part, Cupet will maintain its rights as a State company.

With this agreement, Repsol YPF, which until now was the holder
of 100% of the exploration rights in the mentioned blocks, will
transfer 60% of its previous stake to Hydro and OVL in the
project.

As part of the project's exploratory program, 3,000 square
kilometers of 3D seismic is currently being realized -- which
will be completed in the short term -- as well as diverse
geological studies that will serve as a base to evaluate future
exploratory actions.

                        *    *    *

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

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




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


AES CORP.: Unit Denies Ownership in Electric Distributor
--------------------------------------------------------
Some media outlets in the Dominican Republic had reported that
AES Dominicana, AES Corp.'s unit in the Dominican Republic, owns
EdeEste, Dominican Today reports.

EdeEste is an electric distributor owned by the Trust Company of
the West aka TCW, Dominican Today states.

AES told Dominican Today that it manages the electric
distributor, but does not own it.

AES said it operates EdeEste under a November 2004 contract,
Dominican Today relates.

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

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

                        *     *     *

As reported in the Troubled Company Reporter on May 24, 2006,
Fitch affirmed The AES Corporation's Issuer Default Rating at
'B+'.  Fitch also affirms and withdraws the ratings for the
company's junior convertible debt.  The Rating Outlook for all
remaining instruments is Stable.




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


SPECTRUM BRANDS: Posts US$563,000 Net Loss in 2nd Fiscal Quarter
----------------------------------------------------------------
Spectrum Brands, Inc., filed its second quarter financial
statements for the three months ended April 2, 2006, with the
Securities and Exchange Commission on May 12, 2006.

The Company reported a $563,000 net loss on $625,121,000 of net
sales for the three months ended April 2, 2006.

At April 2, 2006, the Company's balance sheet showed
$4,007,531,000 in total assets, $3,147,235,000 in total
liabilities, and $860,296,000 in total stockholders' equity.

"We are disappointed by the results from our North American and
European battery businesses this quarter, where a decrease in
sales volume and high raw material costs, particularly zinc,
resulted in significant underperformance to our expectations,"
Dave Jones, Spectrum Brands Chairman and CEO said.

"However, we are encouraged by this quarter's good performance
from our specialty pet and Remington product portfolios.  Our
lawn and garden business is poised for a solid performance in
the upcoming selling season with consumer purchases at retail up
10%, although inventory management initiatives by some of our
largest retail customers had a negative impact on second quarter
lawn and garden sales."

"With a challenging second quarter behind us, we are now moving
forward with a renewed focus on organic sales growth, aggressive
cost management and debt reduction.  Through the various
restructuring activities . . ., we are committed to aggressively
pursuing cost management initiatives throughout our
organization designed to achieve $150 million in annual cost
savings by the end of fiscal 2007.

"At the same time, we are increasing our focus on sales growth
and investing in our brands through new product development and
increased advertising."

Full-text copies of the Company's financial statements for the
three months ended April 2, 2006, are available for free at
http://ResearchArchives.com/t/s?99d

Spectrum Brands, Inc. -- http://www.spectrumbrands.com/-- is a
global consumer products company with a diverse portfolio of
world-class brands, including Rayovac, Varta and Remington.  The
Company manufactures and sells batteries, lawn and garden care
products, specialty pet supplies, shaving and grooming products,
household insecticides, personal care products and portable
lighting.  The Company's manufacturing and product development
facilities are located in the United States, Europe, China and
Latin America.  The company operates in 13 Latin American
nations including El Salvador, Guatemala, Costa Rica, Colombia
and Nicaragua.

                          *     *     *

As reported in the Troubled Company Reporter on April 10, 2006,
Standard & Poor's Ratings Services lowered its ratings on
Spectrum Brands Inc., including its corporate credit rating to
'B-' from 'B'.  At the same time, the Company's ratings were
placed on CreditWatch with negative implications.

As reported in the Troubled Company Reporter on Feb. 2, 2006,
Moody's Investors Service downgraded Spectrum Brands, Inc.'s
corporate family rating, to B2 from B1; $700 million 7-3/8%
senior subordinated notes due 2015, to Caa1 from B3; and $350
million 8.5% senior subordinated notes due 2013, to Caa1 from
B3.  Moody's also confirmed the Company's $300 million senior
secured revolving credit facilities, at B1; and $1.2 billion
senior secured term loan facilities, at B1.


SPECTRUM BRANDS: Entered into Third Amendment under Credit Pact
---------------------------------------------------------------
Spectrum Brands, Inc. entered, on May 9, 2006, into an Amendment
No. 3 to the Fourth Amended and Restated Credit Agreement dated
as of Feb. 7, 2005.

The Borrowers are:

   -- Spectrum Brands, Inc., fka Rayovac Corporation,

   -- Varta Consumer Batteries GmbH & Co. KGaA, a German
      partnership limited by shares, and

   -- Rayovac Europe Limited,

The LenderLenders are:

   -- Citicorp North America, Inc., as Syndication Agent,

   -- Merrill Lynch Capital Corporation, as Co-Documentation
      Agent and Managing Agent,

   -- LaSalle Bank National Association, as Co-Documentation
      Agent, and

   -- Bank of America, N.A., as Administrative Agent, Swing Line
      Lender and L/C Issuer.

Under Amendment No. 3:

   (1) the maximum consolidated leverage ratio was raised and
       minimum consolidated interest coverage ratio was lowered
       for the period ended April 2, 2006, and subsequent
       periods;

   (2) the interest rate on the Company's Euro term loan under
       the Credit Agreement increased by 25 basis points;

   (3) the interest rates on the U.S. Dollar, Canadian Dollar
       and Euro Tranche B term loans under the Credit Agreement
       increased by 50 basis points; and

   (4) the interest rate on the revolver under the Credit
       Agreement increased by 75 basis points.

A full-text copy of the Fourth Amended and Restated Credit
Agreement dated as of Feb. 7, 2005, is available for free at
http://ResearchArchives.com/t/s?99f

Spectrum Brands, Inc. -- http://www.spectrumbrands.com/-- is a
global consumer products company with a diverse portfolio of
world-class brands, including Rayovac, Varta and Remington.  The
Company manufactures and sells batteries, lawn and garden care
products, specialty pet supplies, shaving and grooming products,
household insecticides, personal care products and portable
lighting.  The Company's manufacturing and product development
facilities are located in the United States, Europe, China and
Latin America.  The company operates in 13 Latin American
nations including El Salvador, Guatemala, Costa Rica, Colombia
and Nicaragua.

                          *     *     *

As reported in the Troubled Company Reporter on April 10, 2006,
Standard & Poor's Ratings Services lowered its ratings on
Spectrum Brands Inc., including its corporate credit rating to
'B-' from 'B'.  At the same time, the Company's ratings were
placed on CreditWatch with negative implications.

As reported in the Troubled Company Reporter on Feb. 2, 2006,
Moody's Investors Service downgraded Spectrum Brands, Inc.'s
corporate family rating, to B2 from B1; $700 million 7-3/8%
senior subordinated notes due 2015, to Caa1 from B3; and $350
million 8.5% senior subordinated notes due 2013, to Caa1 from
B3.  Moody's also confirmed the Company's $300 million senior
secured revolving credit facilities, at B1; and $1.2 billion
senior secured term loan facilities, at B1.




=========================
F R E N C H   G U I A N A
=========================


DIGICEL LTD: Names Eric Viel as CEO for French West Indies Unit
---------------------------------------------------------------
Digicel, a mobile operator in the Caribbean, appointed Eric Viel
as CEO for Digicel French West Indies, who will be responsible
for ensuring that Digicel's entry into the French West Indies
will bring more value to customers by leveraging the company's
seamless pan Caribbean GSM network.

Digicel's expansion into the French West Indies' markets of:

   -- Martinique,
   -- Guadeloupe and
   -- French Guiana,

follows the recent completion of the Caribbean company's
acquisition of Bouygues Telecome Caraibe, formerly owned by
French mobile operator, Bouygues Telecom.

As CEO of Digicel French West Indies, Viel will focus on
delivering a smooth transition for Bouygues Telecom Caraibe's
160,000 plus customers who will maintain all of their existing
benefits, in addition to receiving an innovative product range
and the region's best performing network with the widest
coverage in the Caribbean.

"Eric's customer centric focus and excellent record of
leadership in the telecommunications industry position him to
deliver on the existing momentum for Digicel's entry into the
French West Indies," said Digicel Group CEO Mr. Colm Delves.
"We look forward to joining forces with the current team in
providing the residents and visitors of the French West Indian
territories with our industry leading service and unmatched
customer care."

With eight years of experience in the Caribbean mobile
telecommunications market, Mr. Viel worked as Vice President of
Customer Care and Billing with Orange in the Dominican Republic
before joining Digicel in 2005 as Group Customer Facing
Director.  A French national, Mr. Viel's experience also
includes eight years of consultancy work with Cap Gemini Telecom
in Paris where he supported the rollout of GSM networks across
the globe from French Polynesia, India, Romania and the French
West Indies.  Mr. Viel is a graduate from the Institute of
Technology of Lannion, France.

The acquisition of Bouygues Telecom Caraibe has provided Digicel
with a large established pre-paid and post-paid customer base
and an advanced GSM network in markets that are populated by
more than one million people.  The three territories have
economies centered on the Euro as their functional currency and
serve as a destination for international tourists.  Digicel
French West Indies coverage area includes St. Barths and French
St. Martin.

Digicel has completed three acquisitions in the past 14 months
including Cingular Wireless' Caribbean and Bermuda operations.
With recent launches in Trinidad & Tobago and Haiti, the pan
Caribbean operator now has operations in 20 Caribbean markets
covering a total population of over 15 million people.

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.




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


* HONDURAS: Pres. Zelaya Grateful to Venezuela for Cheap Fuel
-------------------------------------------------------------
Honduran President Manuel Zelaya was grateful to Venezuelan
Pres. Chavez for offering Honduras a cheaper price for fuel, as
his country may encounter a probable energy crisis, Associated
Press reports.

Venezuela provides preferential terms under its PetroCaribe
program.  The country would sell fuel with 60% of the value paid
immediately, while the rest will be paid over a long period of
time.

As reported in the Troubled Company Reporter on May 18, 2006,
Pres. Zelaya has considered buying fuel from Venezuela.
Although according to El Universal, experts say that the move
may trigger political troubles for Honduras.  The president
defended its plan by saying that such a move will only eliminate
prejudgment against Venezuela.  He added that Honduras'
sovereignty is not for sale.

Pres. Chavez praised Pres. Zelaya in his courageous statement.
He told El Universal that such words underlined Venezuela's
willingness to support the underprivileged peoples in Central
America and contradicted other nation's judgment that he is
buying Honduras out with a checkbook.

                        *    *    *

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

                        *    *    *

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




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


SUGAR COMPANY: Government to Borrow US$5 Bil. to Pay Debts
----------------------------------------------------------
The government of Jamaica will seek a US$5 billion long-term
debt to refinance the outstanding obligations of its state-owned
firm, the Sugar Company of Jamaica aka SCJ, before the sale of
the factories, the Jamaica Observer reports.

SCJ will assume US$3.8 billion in long-term liabilities during
the financial year October 2005 to September 2006, as indicated
in the revenue and expenditure estimates for state firms
recorded in April.

The Observer relates that the government also plans an
additional US$1 billion in bank borrowings to be used in
reducing short-term debt.  SCJ's short-term debt portfolio is
composed of:

   -- gearing debt of US$1.3 billion up to the end of September
      2005, and

   -- payable of US$4.6 billion.

According to the Observer, refinancing will enable SCJ to
eradicate the short-term loan and decreased its payable to
US$1.38 billion.

The government underwrites the debt through letters of
undertaking aka LOU, the Observer states.  It had not done the
refinancing up to the end of March 31, 2006.

The amount of debt to be shouldered by the investors is yet
unknown, but the refinancing is expected to improve the SCJ's
liquidity gap, the Observer reports.

Last year, the SCJ factories lost US$602 million from 181,000
metric tons of sugar -- an improvement over 2003, when a loss of
US$807 million was made from 153,500 tons of sugar produced.

SCJ registered a net loss of almost US$1.1 billion for the
financial year ended Sept. 30, 2005, 80% higher than the
US$600 million reported in the previous financial year.  The SCJ
blamed its financial deterioration to the reduction in sugar
cane production.



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


J.L. FRENCH: Inks US$255M Goldman & Morgan Stanley's Exit Pact
--------------------------------------------------------------
J.L. French Automotive Castings, Inc., and its debtor-affiliates
ask the U.S. Bankruptcy Court for the District of Delaware to
approve a US$255 million exit financing to be provided by
Goldman Sachs Credit Partners, L.P., and Morgan Stanley Senior
Funding, Inc.

Scotta E. McFarland, Esq., at Pachulski Stang Ziehl Young Jones
& Weintraub LLP in Wilmington, Delaware, tells the Court the
exit lenders offered the most favorable terms, including the
lowest overall interest rate.  These terms, coupled with Goldman
Sachs' familiarity with the Debtors as second lien agent, formed
the basis for the Debtors' decision.

The senior secured bank financing includes:

   (a) US$150 million senior secured first lien term loan;
   (b) US$55 million senior secured second lien term loan;
   (c) US$50 million senior secured revolving credit facility.

The proceeds of the term facilities will be used to fund, in
part, the recapitalization contemplated by the Debtors' Second
Amended Plan.  Amounts available under the revolving facility
will be used to provide for the Debtors' ongoing working capital
requirements.

Goldman Sachs has agreed to provide:

   -- 60% of the term facilities; and
   -- 50% of the revolving facility.

Morgan Stanley has agreed to provide:

   -- 40% of the term facilities; and
   -- 50% of the revolving facility.

Fees to be paid to the exit lenders were not disclosed to the
public.  The Debtors ask the Court for permission to file under
seal copies of the commitment letter and fee agreement.

                    Rating Agency Agreements

In connection with the exit financing, the Debtors entered
rating agency agreements with Moody's Investors Services and
Standard & Poor's Rating Agency.  The Debtors will pay Moody's
$50,000 for its services in rating the exit facility.  S&P will
be paid $52,500.

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 our 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 $100 million.


MORELOS: Moody's Assigns Ba1 Local Currency Rating on Loans
-----------------------------------------------------------
Moody's assigned ratings of A1.mx National Scale rating and Ba1
local currency rating to two bank loans of the State of Morelos
held by Banco Santander Serfin.  The loans are paid through a
master trust (F/112288) that also services other debt of the
state.  Each loan is payable under a distinct loan agreement.
The trust was established in 2001 with Banco Santander Serfin as
paying trustee.

All obligations issued under the master trust are payable from
assigned shares of the 16.4% of the state's participation
revenues which have been committed to the trust.  The state has
no direct debt outside the trust.

The two loans now rated had original face values of MXN326.4
million and MXN190.6 million, respectively, when issued in
October 2003.  The loans are denominated in pesos, and each has
a maturity of 5 years and 10 months, including a one-year grace
period for principal payments, with final maturity in August
2009.  The loans pay a variable interest rate of TIIE+0.5 on the
outstanding balance, and principal is paid in 58 equal
installments.

The proceeds of the larger loan were applied to public works
projects in the State's 2003 budget, while the smaller loan was
used to refinance outstanding loans with Banorte that had also
financed public works.

Because the loans are a direct obligation of the state, payment
of which is governed by the trust agreement and the respective
loan agreements, the ratings rely on the state's intrinsic
credit quality as well as the additional protection provided by
the legal arrangements for each transaction.  The ratings are
based on the following factors:

   1. The credit standing of the State of Morelos, which carries
      issuer ratings of A2.mx National Scale and Ba2 local
      currency ratings.   Morelos' issuer ratings reflect the
      state's adequate financial performance as well as its debt
      burden, which has remained at a manageable level despite
      increases in recent years.  The ratings incorporate the
      state's limited budgetary flexibility resulting from its
      low level of own-source revenue and above-average
      financial transfers to municipalities.  The ratings also
      reflect a limited economic base.

      While debt grew in absolute terms in 2005, as a percent
      of total revenues it decreased slightly, to 6.6% from 6.9%
      in 2004, due to significant (15%) revenue growth.  Debt
      service remains manageable, although it grew in 2005 to
      2.1% of total revenues, compared with 0.8% in 2004, as the
      Santander Serfin loans began to amortize.  At the moment,
      the state reports no additional borrowing plans.

   2. The governing legal arrangements created by the
      authorizing documents, including decree No. 240 issued
      by the state congress in 2001 and its subsequent
      amendments, which authorizes the state government to
      issue an irrevocable instruction to the Federation
      Treasury to transfer a fixed percentage-16.4%-of the
      state's federal participation revenues (Ramo 28) to the
      master trust until all debts in the trust are paid off.

      According to Decree 240, only the executive of the state
      may request a modification of the instruction to TESOFE.
      A precondition for such a request is authorization from
      the state congress, which can occur only after receipt of
      the written consent of all senior lien creditors under the
      master trust.  Proof of compliance with these conditions
      must be included with the request.

      The instruction to TESOFE and the safeguards against its
      modification provide additional protection for loan
      payments.  Nonetheless, the ratings assigned recognize
      that the protection offered is not certain, since the
      mechanism relies to a degree on the active participation
      of TESOFE in verifying that the conditions for a
      modification have been met.  There have been no attempts
      to modify either the instruction or the master trust since
      their establishment in 2001.

   3. The designation by the state of the rights to 16.4% of its
      federal participacion revenues (Ramo 28) to the master
      trust, and the assignment of fixed percentages of the
      committed amount as a designated payment source for each
      debt obligation registered in the trust.  In this case,
      the MXN326.4 million loan has an assigned percentage of
      35%, while the MXN190.6 million loan is assigned 21%.
      Participation revenues constitute a stable and predictable
      revenue source, which have generally demonstrated good
      growth, averaging 10% annually for Morelos over the five
      years through 2005, including flat performance in 2002.

      Based on actual payment information through April 2006,
      minimum monthly debt service coverage for each loan of
      about two times occurred in 2005, shortly after the loans
      began to amortize, and could approach this level again in
2006. While such a coverage ratio is relatively low
      compared to similar transactions rated by Moody's, the
      loan contracts require the State to maintain debt service
      coverage of at least two times, providing additional
      resources if necessary.  The State's MXN220 million BBVA
      Bancomer loan (rated Aa2.mx/Baa2) derives similar coverage
      from its flow of funds, but that loan is insulated by both
      reserves as well as an 11% interest rate cap in force
      during the first two years of the loan.  Looking ahead
      over the remaining three years of the Santander Serfin
      loans, the flows of funds appear likely to withstand a
      range of realistic stress scenarios involving interest
      rate increases and revenue reductions.

   4. A limiting credit factor for both loans is the absence of
      reserves to cover possible liquidity needs, a common
      feature in most transactions of this nature rated by
      Moody's.  It is worth noting, for example, that the
      State's Bancomer loan has reserves equal to two months of
      principal and interest payments, while the reserves of its
      MXN216 million CPOs (rated Aa1.mx/Baa2) are equal to six
      months' principal and interest.

  5. The loan contracts have designated certain obligations
     for the State to comply with in order to maintain its
     ability to make debt service payments.  Failure to comply
     with these obligations could trigger an "Event of
     Acceleration", whereby the Trustee captures the entire
     percentage of funds assigned to service each loan (the
     Cantidad Limite)-in this case, the 35% and the 21%,
     respectively.  The contracts also list conditions that
     could cause early amortization, whereby the full amount of
     the loans become immediately due and payable.  The
     penalties associated with such events appropriately protect
     lender interests, as they serve to deter the State from
     taking (or failing to take) a specified action that may
     threaten loan payments.

     The wording of one item listed as an event of acceleration,
     related to rating levels, is ambiguous and could lead to
     undue volatility, though this would be limited to
     acceleration and not early amortization.  Furthermore, in
     the case of acceleration, the severity of such a risk is
     mitigated by a "cure" period of 15 days to resolve any
     violation.  Finally, neither events of acceleration nor
     early amortization are triggered automatically, depending
     instead on the request of the creditor, which should
     provide an opportunity to negotiate a remedy with the
     State.


TV AZTECA: Makes US$68 Million Cash Distribution to Shareholders
----------------------------------------------------------------
TV Azteca, S.A. de C.V., made a US$68 million cash distribution
to shareholders, equivalent to US$0.02 per CPO.

As previously announced, TV Azteca Shareholders' Meetings held
on Feb. 20 and April 28 approved distributions for an aggregate
amount of US$90 million to be paid during 2006, which include
the payment made on May 23 and another of US$22 million
programmed for Nov. 22.

The cash disbursement is part of the company's ongoing plan to
allocate a substantial portion of TV Azteca's cash generation to
distributions to shareholders of over US$500 million within a
six-year period that began in June 2003.

The distributions under the cash-usage plan made to date
represent an aggregate amount of US$473 million, equivalent to a
26% yield based on the May 22, 2006, CPO closing price.

Prior distributions include:

   -- US$125 million on June 30, 2003;
   -- US$15 million on Dec. 5, 2003;
   -- US$33 million on May 13, 2004;
   -- US$22 million on Nov. 11, 2004;
   -- US$130 million on Dec. 14, 2004;
   -- US$59 million on June 9, 2005; and
   -- US$21 million on Dec. 1, 2005.

TV Azteca is one of the two largest producers of Spanish-
language television programming in the world, operating two
national television networks in Mexico -- Azteca 13 and Azteca 7
-- through more than 300 owned and operated stations across the
country.  TV Azteca affiliates include Azteca America Network, a
new broadcast television network focused on the rapidly growing
US Hispanic market, and Todito, an Internet portal for North
American Spanish speakers.

                        *    *    *

Moody's Investor Services rated TV Azteca's senior unsecured
debt at B1.




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


SIDERPERU: Aceros Arequipa Wants to Bid in Stake Auction
--------------------------------------------------------
Aceros Arequipa, a steelmaker in Peru, is interested in joining
the 51.7% stake auction of Siderperu, according to reports by
the local press.

Reports say that Aceros Arequipa is considering whether to take
legal action to be able to participate.  Bidding rules published
by Peru's state investment promotion agency ProInversion state
that only firms with minimum annual production of 2Mt and with
at least US$1 billion in equity can join the bidding process.

Ricardo Cilloniz, the Chief Executive Officer of Aceros Arequipa
CEO, told the media, "Not one national company can meet those
requirements."

Aceros Arequipa said in a statement to the Lima stock exchange
that it has proposed a change to the bidding rules.

Aceros Arequipa told BNamericas that it will decide based on the
due diligence process to be carried out in the auction data
room.

Press reports state that ProInversion said that the bidding
rules do not discriminate Peruvian firms since locals would be
able to team up with foreign companies that have the required
experience and solvency.

Danilo Munarriz, the project technical coordinator of
ProInversion, revealed to BNamericas that firms were informed
that they can partner with other foreign companies to
participate.  According to him, ProInversion had even given them
some names to associate with.

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

                        *    *    *

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

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

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

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



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


CARIBBEAN RESTAURANTS: S&P Lowers Corporate Credit Rating to B
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating and secured bank loan rating on San Juan, Puerto Rico-
based Caribbean Restaurants LLC to 'B' from 'B+'.  The outlook
is stable.

"The downgrade is based on the company's deteriorating cash flow
protection measures due to negative operating trends over the
past four quarters," said Standard & Poor's credit analyst Diane
Shand.  Total debt to EBITDA is expected to increase to more
than 6.0x in fiscal 2006, from mid-5.0x in fiscal 2005.  "We do
not expect these measures to improve over the next year," said
Ms. Shand.

CRI's narrow geographic focus leaves it susceptible to changes
in the Puerto Rican economy.  Sales trends in the fiscal year
ended April 30, 2006, should be negative due to an economic
slowdown in Puerto Rico, and margins are expected to narrow as a
result of:

   -- lack of sales leverage,
   -- higher utility costs, and
   -- wage incentives.

Operating trends are not expected to improve until the economy
in Puerto Rico strengthens.  The company's profitability had
also declined during a regional economic downturn in 2001 and
2002.  Operating performances had been good from fiscal 2003 to
fiscal 2005.

The ratings on Caribbean Restaurants reflect the company's

   -- highly leveraged capital structure,
   -- the risks of operating in the extremely competitive
      quick-service restaurant industry, and
   -- its regional concentration.

Overall business risk for this fourth-largest franchisee of
Burger King restaurants is influenced heavily by strong
competition in the fast-food segment, especially from McDonald's
Corp. and Subway in Puerto Rico, where CRI operates all 170 of
its units.  Somewhat tempering these factors is the strength the
company derives from its exclusive franchise agreement with
Burger King for Puerto Rico.

CRI is the leading player in the US$1 billion Puerto Rican fast-
food market.  It controls about 18% of total units and about 25%
of total revenues.  Subway, with a 19% share of total fast-food
units, and McDonald's, with 12%, are its closest competitors.


KMART CORP: Asks Court for Summary Judgment on Kersh's Claim
------------------------------------------------------------
On July 19, 2002, David Kersh filed Claim No. 48076, which was
later amended on March 31, 2003.

The Debtors objected to the Claim and asserted that it was
overstated and should be allowed in an amount determined by the
Court.

William J. Barrett, Esq., at Barack, Ferrazzano, Kirschbaum,
Perlman & Nagelberg, LLC, in Chicago, Illinois, discloses that
Mr. Kersh's Claim includes five separate claims arising from:

A. David Kersh v. Kmart Corporation, Case No. GC-970294

    Mr. Kersh made a claim for $65,369 against Kmart relating to
    "Metro Passbook Memberships."  This claim incorporates a
    lawsuit Mr. Kersh previously filed against Kmart in the 21st
    District Court, in Wayne County, Michigan.  In 1998, the
    21st District Court granted summary judgment in favor of
    Kmart.  Mr. Kersh requested for reconsideration and sought
    to disqualify the judge.  However, both requests were
    denied.

B. David Kersh v. City of Southfield, Case No. AB-90-9138856

    Mr. Kersh made a claim against Kmart for $18,500 related to
    the loss of a 1979 Mark V automobile.  The claim
    incorporates Mr. Kersh' previously filed lawsuit against the
    Southfield Police Department in the 46th District Court, in
    Oakland County, Michigan, which was dismissed in 1992.
    Similarly, Mr. Kersh sought for a rehearing and
    disqualification of the judge that was denied.

C. Common Stock

    Mr. Kersh made a claim for stock owned in Kmart but did not
    say how many shares he owned.  Under Kmart's Plan of
    Reorganization, all stock in the company was cancelled and
    no stockholder has any claim as a result of the
    cancellation.

D. David Kersh v. Kmart et al., Case No. CA-99-0185-GC

    Mr. Kersh made a claim against Kmart -- allegedly due to a
    defective starter installed by Kmart in Mr. Kersh's car --
    that incorporates a lawsuit previously filed against Kmart
    in the 37th District Court in Macomb County, Michigan.
    However, that lawsuit was dismissed with prejudice in an
    order that affirmed a prior $500 sanction against Mr. Kersh.
    Mr. Kersh asked the Court to set aside the dismissal and to
    disqualify both the judge hearing the case and the judge
    assigned to an earlier request of Mr. Kersh to disqualify.
    The requests were never ruled on.

E. Michigan Consumer Protection Act

    Mr. Kersh also made a claim for penalties allegedly owed by
    Kmart as a consequence of not having in stock goods that it
    had advertised for sale.  The claim includes a general
    description of the provisions of the Michigan Consumer
    Protection Act that govern "rain checks."  Although Mr.
    Kersh says that he was unable to purchase "sale goods" on at
    least 100 occasions, his claim makes specific reference to
    only one occasion concerning a can of Campbell's Chicken
    Noodle Soup that Mr. Kersh attempted to purchase at a Kmart
    store in Honolulu, Hawaii.

Against this backdrop, Kmart asks the Court to enter a partial
summary judgment disallowing in full Mr. Kersh' claims for:

    * $64,369 relating to the "Metro Passbook Memberships"
      because under the doctrine of res judicata, Mr. Kersh
      cannot have a claim against Kmart in the case that was
      previously adjudicated against him by another court;

    * $18,500 relating to the 1979 Mark V automobile, which
      arose more than 10 years before the Petition Date and is,
      thus, barred by the applicable Michigan statute of
      limitations;
      and

    * any shares of common stock Mr. Kersh held in Kmart.

Without admitting any allegations of liability, Kmart further
asks the Court to enter a partial summary judgment allowing and
reclassifying as Class 7 unsecured claims, Mr. Kersh' claims
for:

    * $750 relating to the defective starter; and
    * $250 relating to the can of chicken soup.

Among other things, Kmart asserts that it is entitled to partial
summary judgment because there are various final judgments, and
no question of fact exists in these cases:

    -- David Kersh v. City of Southfield, Case No. AB-90-9138856
    -- David Kersh v. Kmart Corporation, Case No. GC-970294
    -- David Kersh v. Kmart et al., Case No. CA-99-0185-GC

             Kersh Wants to Quash Kmart's Request

David Kersh informs Judge Sonderby that the Debtors have filed a
fraudulent request falsely claiming that they are entitled to
partial summary judgment because there is no final judgment in
any of the cases on which summary disposition can be granted.

According to Mr. Kersh, the judges of the 46th District Court
have been disqualified on all cases involving him.  Each time
the judges would submit signed disqualification papers to the
State Court Administrator's Office, the SCAO would then assign a
judge to act in the case.

Mr. Kersh further notes that:

    * Judge Hammer's assignment to the Metro Passbooks case was
      terminated in January 1998.  The case was subsequently
      assigned to Judges Bowman and Nicholson and no final
      judgment has been entered; and

    * Judge Sauer admitted his prejudice against Mr. Kersh when
      he was assigned the Mark V case.  Judge Sauer disqualified
      himself in November 1995 and the case was assigned to
      Judge Hammer.  The Mark V case was then assigned to Judges
      Bowman and Nicholson by the SCAO.

Since Mark V and the Passbooks cases were still pending in the
State Courts as of the Petition Date, Mr. Kersh contends that
latches apply because the Debtors knew about the pending cases
for years and failed to petition them to be heard by the
Bankruptcy Court.

Furthermore, Mr. Kersh argues that the Bankruptcy Court has
neither jurisdiction nor venue over the State Court actions as
the automatic stay was lifted when the Debtors were discharged
from bankruptcy.  As each lawsuit is pending before the State
Courts, any statute of limitations has been tolled.

Mr. Kersh maintains that contained in Kmart's records are
multiple rain check certificates he submitted along with his
complaints.  To date, Kmart has failed to produce the records or
any of the correspondence between himself and Kmart.

Mr. Kersh also argues that his $750 claim should be deemed a
Class 5 claim with stock options at the same price as would have
been offered to him at the time Kmart emerged from bankruptcy.

Since there are no res judicata rulings and no final judgment,
the Court should quash the Kmart's request and assess sanctions
under Rule 11 of the Federal Rules of Civil Procedure, Mr. Kersh
concludes.

             Kersh Demands Answers to Interrogatories

On November 8, 2005, Mr. Kersh sent Kmart his first set of
interrogatories and request for production of documents, which
required a response within 30 days.

Mr. Kersh tells the Court that more than 60 days after service,
Kmart's counsel served answers that were inadequate, evasive and
failed to properly address the discovery request.

In February 2006, Mr. Kersh served his second set of
interrogatories, which, to date, have not been answered.

Mr. Kersh says his attempts to get the Debtors and their counsel
to cooperate have been met with stonewalling and comments that
he should get an attorney.

Pursuant to Rule 37 of the Federal Rules of Civil Procedure, Mr.
Kersh asks the Court to compel Kmart to fully answer the two
sets of interrogatories, produce all requested documents, and
cooperate in any further discovery.

Mr. Kersh also asks the Court to sanction the Debtors and their
counsel for intentional misconduct.

                        About Kmart

Headquartered in Troy, Michigan, Kmart Corporation (n/k/a KMART
Holding Corporation) -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam.  The Company filed for chapter
11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on May 6,
2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps,
Slate, Meagher & Flom, LLP, represented the retailer in its
restructuring efforts.  The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection.  Kmart bought Sears, Roebuck &
Co., for US$11 billion to create the third-largest U.S.
retailer, behind Wal-Mart and Target, and generate US$55 billion
in annual revenues.  The waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act expired on Jan. 27, without
complaint by the Department of Justice.  (Kmart Bankruptcy News,
Issue No. 110; Bankruptcy Creditors' Service, Inc., 215/945-
7000)


PIER 1 IMPORTS: Annual Stockholders Meeting Scheduled on June 22
----------------------------------------------------------------
Pier 1 Imports, Inc., will hold its annual stockholders meeting
at 10:00 a.m. on June 22, 2006, at the Fort Worth Club, Trinity
Room, 306 West 7th Street in Fort Worth, Texas.

Pier 1 stockholders will be asked to:

   (1) elect seven directors to hold office until the next
       annual meeting of shareholders;

   (2) vote on a proposal to approve the Pier 1 Imports 2006
       Stock Incentive Plan; and

   (3) transact any other business as may properly come before
       the annual meeting.

The Board of Directors of Pier 1 has established the close of
business on April 24, 2006, as the record date for the
determination of shareholders entitled to vote at the annual
meeting.

A full-text copy of the Company's proxy statement is available
for free at http://ResearchArchives.com/t/s?9a1

Pier 1 Imports, Inc. -- http://www.pier1.com/-- is North
America's largest specialty retailer of imported decorative home
furnishings and gifts with Pier 1 Imports(R) stores in 49
states, Puerto Rico, Canada, and Mexico and Pier 1 Kids(R)
stores in the United States.

                           *     *     *

As reported in the Troubled Company Reporter on May 8, 2006,
Standard & Poor's Ratings Services' 'B' corporate credit and
'B-' unsecured debt ratings on Fort Worth, Texas-based Pier 1
Imports Inc. remained on CreditWatch with negative implications.


RENT-A-CENTER: Moody's Lifts Rating on US$330 Mil. Notes to Ba3
---------------------------------------------------------------
Moody's Investors Service upgraded the senior subordinated notes
of Rent-A-Center, Inc to Ba3 and affirmed all other ratings.
The upgrade of the senior subordinated notes is prompted by
Moody's notching policy for subordinated debt relative to the
corporate family rating.

The continuation of the positive outlook reflects Moody's
opinion that ratings could be upgraded over the medium-term once
the company establishes a lengthier track record of sales
improvement and Moody's becomes more comfortable with the
company's financial policy.

These rating is upgraded:

   * $300 million 7.5% senior subordinated notes to Ba3
     from B1.

The following additional ratings are affirmed:

   * $600 million secured bank loan at Ba2,
   * Corporate family rating at Ba2.

Although some of Rent-A-Center's key rating drivers are
consistent with a low investment grade profile, the company's
corporate family rating remains Ba2 primarily due to Moody's
concern regarding the historic use of most free cash flow for
share repurchases, the company's position as a consolidator
within the rent-to-own industry, the unproven success of
initiatives designed to stimulate average unit volume growth,
and the challenges in expanding the personal loan business
beyond the test stage.  While leverage is moderate, there has
been little net debt repayment over the previous several years.

Moody's also believes that the company could take advantage of
an opportunity to increase its market presence if a sizable
chain or several smaller chains of rent-to-own retailers were to
become available.  Partially offsetting these risks are the
lower cyclicality and seasonality of rent-to-own stores compared
to many other retailing segments and Rent-A-Center's consumer
credit efficiency, geographic diversity, and strong market
position.

The continued positive outlook recognizes that an upgrade
remains possible within the medium-term.  The potential upgrade
assumes that comparable store sales growth will not become
negative, that the business line expansion into financial
services is profitable, and that the company remains measured
with its uses of discretionary free cash flow.

Over the next several quarters, ratings could move upward if the
company establishes a lengthier track record of sales stability
and margin improvement, if financial flexibility were to
strengthen such that EBIT covers interest expense by more than 3
times, leverage stays below 2.5 times, and Free Cash to Debt can
be sustained above 12%, and if possible incremental acquisitions
do not meaningfully impact credit metrics.

Given the positive outlook, Moody's believes that a downgrade is
unlikely.  However, the outlook could be revised to stable as a
result of financial policy decisions such as material leverage
increases, share repurchases, or capital expenditures or for
operating reasons that prevent the company from improving
operating margin.

A stable outlook would result if comparable store sales become
negative, free cash flow to debt does not improve from the
current level of 4%, or Debt to EBITDA approaches 3 times.

Rent-A-Center, Inc, with headquarters in Plano, Texas operates
the largest chain of consumer rent to own stores in the U.S.
with 2,751 company operated stores located in the U.S., Canada,
and Puerto Rico.  The company also franchises 297 rent to own
stores that operate under the "ColorTyme" and "Rent-A-Center"
banners. Revenue for the twelve months ending March 31, 2006 was
about $2.3 billion.



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


BWIA WEST: T&T Stock Exchange Junks Request to Extend Suspension
----------------------------------------------------------------
The Trinidad and Tobago Stock Exchange rejected BWIA West
Indies' request to further extend to three months the suspension
of its shares from trading.  The suspension expired on May 15.

The Stock Exchange set a process that could result in the
eventual delisting of BWIA.  Delisting effectively prevents the
BWIA's shareholders from selling their shares on the local stock
market.

The Stock Exchange said BWIA had applied to have its shares
suspended from trading on Nov. 15, 2005, claiming that it had a
new board of directors who had been given a mandate of
restructure the company.  When the suspension ended on Feb. 15,
BWIA requested a three-month extension ending May 15, so as to
facilitate the preparation of a business plan as well as a plan
for restructuring.

The Stock Exchange referred the request to the Trinidad & Tobago
Securities and Exchange Commission aka SEC for further action
since BWIA could not give a specific date on when it would be
able to resume trading.  The further action, according to a
stock market source, is the delisting of the airline.

Osbourne Nurse, the executive chairman of the SEC could not be
reached for comment.



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


BANKBOSTON NA: Unit Earns UYU42.7 Million in Period-Ended April
---------------------------------------------------------------
BankBoston Uruguay, the third largest private bank in Uruguay
and a unit of BankBoston NA, reported UYU42.7 million profit in
the period of January-April, as indicated by central bank
figures.

Business News Americas recalls that the bank incurred UYU41.5
million loss in the same period last year.

According to BNamericas, the bank's loans increased 30% to
UYU17.6 billion while its net financial margin reached UYU293
million.  Net service income was UYU105 million -- a 4.4% boost.
Provisions, on the other hand, plunged 45%, arriving at UYU38.3
million.

Non-performing loan ratio was 1.97% of the total loans,
decreasing from 5.06% from the same period last year, BNamericas
relates.

The bank posted assets of UYU20.5 billion, incurring a 9.2%
increase, and reported that its liabilities including deposits
rose 8.8% to UYU19.2 billion, BNamericas states.

BankBoston is one of the 10 largest banks in Argentina in terms
of assets, deposits and loans and it ranks among the top five
private banks.  It operates through 89 branches and has assets
of US$2.5 billion.

                        *    *    *

As reported in the Troubled Company Reporter on Jul 4, 2005,
Moody's Investors Service upgraded the long-term foreign
currency deposit rating to Caa1 from Caa2 for BankBoston, N.A.
(Argentina) following Moody's upgrade of Argentina's foreign
currency ceiling for bank deposits to Caa1. All the ratings have
a stable outlook.


* URUGUAY: Calyon Bank Gets Involved in Pulp Mill Dispute
---------------------------------------------------------
French bank Calyon became involved in the Uruguay-Argentina pulp
mill dispute after several groups charged the bank with
infringing the Equator Principles, which it has signed with
other international banks to make responsible investments
regarding environmental and social issues, Inter Press Service
reports.

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

The two pulp mills are Orion, which is sponsored by Botnia of
Finland for 1.2 billion dollars, and Celulosas de M'Bopicua,
which is backed by ENCE of Spain for 600 million dollars.

The Argentine complaints against the harmful effects of the pulp
mill are reiterated by global environmental groups that want to
bring up the involvement of private banks in the construction of
the pulp mills, which according to them are ironically esteemed
for their environmental consciousness, ISP relates.

Calyon and Swedish Nordea disclosed in a press release that 60%
of the Orion pulp mill would come from investments from Botnia's
shareholders and the other 40% will be through external loans.

Calyon, the international financial arm of France's Credit
Agricole, was one of the first banks to sign the Equator
Principles, ISP says.

The groups that complained against involved lenders include:

   -- Friends of the Earth Uruguay,
   -- Friends of the Earth International,
   -- Centre for Human Rights and Environment of Argentina,
   -- Banktrack of the Netherlands,
   -- Guayubira of Uruguay and
   -- World Rainforest Movement.

ISP says that the groups promised to deal with Calyon and Nordea
for their involvement with the financing of the pulp mills, and
to coerce the banks to withdraw their support on the project, as
they have done with ING, which they have convinced not to invest
US$480 million into Botnia's plant.

ISP also reports that companies with investments in the project
requested US$400 million from the World Bank, but until now, the
request has not yet been consented.

If the project pushes through, a combined production of
1.5 billion tons would make these pulp mills two of the largest
pulp production endeavors and also as Uruguay's largest
investment with direct foreign control, ISP says.

"It is unfortunate that Calyon, another Equator Bank, has
stepped into this arrangement," Johan Frijns, coordinator of
BankTrack, told ISP, "ING did the right thing and pulled its
investments."

The pulp mills are situated near Gualeguaychu in Argentina.  The
residents have recently complained to the Compliance Advisory
Ombudsman of the IFC and to the Inter-American Commission on
Human Rights on the harmful effects of the project, ISP relates.

ISP reports that in March the auditing body of the IFC found out
that the IFC's Environmental and Social Review procedures has
not practiced sufficient thoroughness to come up with an outcome
that observes the body's disclosure policy.  The procedures
contain the processes that IFC staff has to abide when
evaluating if a corporation should finance a certain project.

The environmentalists have referred this incident before the
International Court of Justice to substantiate its claim against
Calyon if it will continue financing Botnia, making the lender a
violator of human rights and environmental law, ISP relates.

According to these groups, many international companies have
reallocated their operations in poorer nations with more lenient
regulations because of the fact that in recent years, the
European legal system has been more rigid in its laws, ISP says.

"They are moving these companies south to places like Uruguay
where they have less strict environmental laws," Jorge Daniel
Taillant of CEDHA told ISP in a phone interview from Argentina.

                        *    *    *

Fitch Ratings assigned these ratings on Uruguay:

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


                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

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




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


ARVINMERITOR INC: Replacing US$900M Revolving Facility due 2008
---------------------------------------------------------------
ArvinMeritor, Inc., selected JP Morgan Securities Inc. and
Citigroup Global Markets Inc. to arrange new senior secured
credit facilities to replace its existing revolving credit
facility.

                 Bank Revolving Credit Facility

The company has a US$900 million revolving credit facility that
expires in 2008.  Under the facility, borrowings are subject to
interest based on quoted LIBOR rates plus a margin, and a
facility fee, both of which are based upon the company's credit
rating.  At March 31, 2006, the margin over the LIBOR rate was
150 basis points, and the facility fee was 37.5 basis points.
Certain of the company's domestic subsidiaries irrevocably and
unconditionally guarantee amounts outstanding under the credit
facility.  The revolving credit facility includes a US$150
million limit on the issuance of letters of credit.  At March
31, 2006, and Sept. 30, 2005, approximately US$24 million and
US$23 million letters of credit, respectively, were issued.

The facilities are expected to consist of a new revolving credit
facility and a term loan B.  Details of the planned facilities
will be provided to potential participants in the facilities at
a bank meeting, today, May 24, 2006, in New York City.

Headquartered in Troy, Michigan, ArvinMeritor, Inc. --
http://www.arvinmeritor.com/-- is a premier $8.8 billion global
supplier of a broad range of integrated systems, modules and
components to the motor vehicle industry.  The company serves
light vehicle, commercial truck, trailer and specialty original
equipment manufacturers and certain aftermarkets.  ArvinMeritor
employs approximately 29,000 people at more than 120
manufacturing facilities in 25 countries.  It maintains 23
facilities in Venezuela, Brazil and Argentina.  ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.

                          *     *     *

As reported in the Troubled Company Reporter on April 7, 2006,
Moody's Investors Service affirmed ArvinMeritor's corporate
family rating at Ba2, and changed the rating outlook from stable
to negative.

Moody's said the company's core Light Vehicle Systems segment
continues to under-perform and debt protection measures are
somewhat weak for the rating category.

Moody's also affirmed the Ba2 rating of the Company's senior
unsecured notes and senior unsecured shelf.


ARVINMERITOR INC: S&P Puts BB Sr. Unsecured Rating on Neg. Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB' senior
unsecured and 'B-1' short-term corporate credit ratings on
ArvinMeritor Inc. on CreditWatch with negative implications.

At the same time, Standard & Poor's affirmed its 'BB' long-term
corporate credit rating on the Troy, Michigan-based auto
supplier.

These actions stem from ArvinMeritor's announcement that it will
replace its unsecured bank facility with new senior secured
credit facilities.  The facilities are expected to consist of a
new revolving credit facility and a term loan B.

Standard & Poor's will review the effect of contractual
subordination on the unsecured debt, and depending on the level
of security granted, the unsecured debt rating could be lowered.
The rating agency will also evaluate the impact on the company's
liquidity and short-term rating as a result of the new
facilities.

Standard & Poor's would expect to withdraw the rating on
ArvinMeritor's existing bank facility upon completion of the
proposed transaction.  Currently, the rating on ArvinMeritor's
existing $900 million senior unsecured revolving credit
facility, maturing in July 2008, is the same as the corporate
credit rating, because Standard & Poor's expects that lenders
will fare the same as other senior creditors in the event of a
default.


BANCO INDUSTRIAL: Venezuelan Gov't Intends to Buy Bolivian Bank
---------------------------------------------------------------
Luis Quiaro, state-bank Banco Industrial's president, was quoted
by El Universal as saying that the Venezuelan government will
use US$25 million to purchase a stake in a Bolivian financial
institution.

Mr. Quiaro however, did not name the bank that the government
wants to buy in Bolivia.

                        *    *    *

On March 20, 2006, Moody's Ratings Services affirmed Banco
Industrial S.A.'s 'D' bank financial strength rating.

Moody's also affirmed Industrial's 'Baa2' and Prime-3 long and
short term global local currency deposit ratings, respectively,
and its 'Ba3' and Not Prime long and short term foreign currency
deposit ratings.  All the ratings have stable outlooks.


CITGO PETROLEUM: Valero's Interest in Buying Houston JV Remains
---------------------------------------------------------------
The purchase of the Venezuela's Citgo Petroleum joint venture
refinery in Houston, Texas, still interests Valero Energy Corp.,
the latter's top executive told Reuters.

Bill Klesse, Valero's Chief Executive, said at the UBS Global
Oil & Gas Conference that his firm believes it would be able to
buy the 268,000 barrel per day refinery.

As previously reported, Valero disclosed its interest in buying
the refinery owned 58.75% by Lyondell and 41.25% by Citgo.
Lyondell and Citgo had disclosed that they are considering a
sale.

Reuters relates that the plant has complex units to increase the
volume of light products made from heavy sour Venezuelan crude
that sells at a discount to lighter, sweeter grades.

The heavy crude nature of the refinery caught the interest of
Valero, Mr. Klesse was quoted by Reuters as saying.

Headquartered in Houston, Texas, CITGO Petroleum Corporation
-- http://www.citgo.com/-- is owned by PDV America, an
indirect, wholly owned subsidiary of Petroleos de Venezuela
S.A., the state-owned oil company of Venezuela.

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.

                        *    *    *

As reported at the Troubled Company Reporter on Feb. 16, 2006,
Standard and Poor's Ratings Services assigned a 'BB' rating on
CITGO Petroleum Corp.



                        ***********


S U B S C R I P T I O N   I N F O R M A T I O N

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