TCRLA_Public/060530.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, May 30, 2006, Vol. 7, Issue 106

                            Headlines

A R G E N T I N A

ALFREDO ROMEO: Trustee Stops Accepting Claims by July 4
AVAN SAIC: Seeks Court Approval to Reorganize Business
COMPANHIA ENERGETICA: S&P Withdraws B+ Corporate Credit Rating
CENTRO DE EXPOSICIONES: Claims Verification Ends on June 30
CENTRO INTEGRAL: Creditors Must File Proofs of Claim by June 29

COIM S.R.L.: Asks Court Approval to Enter Bankruptcy
COMCEL SA: Trustee Verifies Proofs of Claim Until July 5
MARCHIEU S.R.L.: Verification of Proofs of Claim Ends on July 6
MONTON FOOD: Trustee Stops Validating Proofs of Claim by June 30
NUTRAR S.A.: Creditors Must Present Proofs of Claim by July 4

TERMAN S.A.: Trustee Stops Verifying Proofs of Claim by July 4

B A H A M A S

WINN-DIXIE: Panel Seeks Approval of Amendment on A&M's Retention

B E L I Z E

* BELIZE: Venezuela Loans US$25 Million to Finance Oil Market

B E R M U D A

ATHENA INSURANCE: Creditors Must File Proofs of Claim by June 9
BAY POINT: S&P Rates Senior Secured US$125M Debt Facility at BB
CREDIT SUISSE: Holds Final Shareholders Meeting Tomorrow
GALVEX HOLDINGS: Court Approves Sale of Assets to SPCP Group
SOLVEST LTD: Fitch Downgrades Senior Bank Debt Rating to BB-

B O L I V I A

* BOLIVIA: Concludes Trade Fair with Cuba & Venezuela
* BOLIVIA: Venezuela Buying US$100 Million of Country's Debts

B R A Z I L

BANCO BMG: S&P Affirms B+/B Counterparty Credit Rating
BANCO BRADESCO: Launches Firms & Couples Life Insurance Program
BANCO BRADESCO: Mulls Expansion of Prime Brand This Year
BANCO DAYCOVAL: Will Proceed with US$50-Mil. Bond Issuance
BANCO DO BRASIL: Clients Use Automated Channel in Transactions

BANCO DO BRASIL: Insurance Unit Issued Policies Up by 4%
BANCO PINE: S&P Puts B+/B Foreign Currency Credit Rating
BANCO NACIONAL: Approves New Export Financings for US$89.5 Mil.
BICBANCO: Extends 8.25% US$20-Million Bond Issue Term to 2 Years
BRASIL TELECOM: Launches Wireless Fixed Line Phone

COMPANHIA VALE: Secures Preliminary License for Para Project
PETROLEO BRASILEIRO: Posts Lower Local Oil Production in March

C A Y M A N   I S L A N D S

AERCAP G: Sets Final Shareholders Meeting on June 5
BRONZEWOOD LIMITED: Sets Final General Meeting on June 1
DBY SIX: Schedules Final Shareholders Meeting on June 1
MILLENNIUM SHOPPING I: Last Shareholders Meeting Is on June 1
MILLENNIUM SHOPPING II: Final General Meeting Is Set for June 1

MJT FUNDING: Liquidator Presents Wind Up Accounts on June 1
MONUMENT CAPITAL: Holds Last Shareholders Meeting on June 1
PACIFIC DIAMOND: Schedules Last General Meeting on June 1
STARVIEW OPPORTUNITIES: Holds Last General Meeting on June 1
STARVIEW PARTNERS: Final Shareholders Meeting Is Set for June 1

C H I L E

ROCK-TENN: Moody's Confirms Corporate Family Rating at Ba2
SANTANDER SANTIAGO: Issues CLP108 Bil. Bonds on Local Market

C O L O M B I A

BANCAFE: Allocates COP180 Bil. Excess Capital to Credit Program
BANCO DE BOGOTA: Will Issue COP300 Billion in New Shares

* COLOMBIA: IFC Grants US$50M to Support Small Entrepreneurs

C U B A

* CUBA: Concludes Trade Fair with Bolivia & Venezuela

D O M I N I C A

DIGICEL LTD: Adds US$5-Million Investments in Dominica Market

D O M I N I C A N   R E P U B L I C

CAP CANA: Creditor Files Bankruptcy Petition Against Company
MINIARI S.A.: Creditor Files Bankruptcy Request Against Company

E L   S A L V A D O R

MILLICOM INTERNATIONAL: China Mobile Wins Auction

H O N D U R A S

* HONDURAS: Farmers Wary of Free Trade Agreement with US

M E X I C O

CORUS GROUP: Sells Rolled Aluminum Unit to Aleris for EUR826MM
GRUPO HERDEZ: Arca Cancels Grupo Herdez Acquisition Talks
MERIDIAN AUTOMOTIVE: Files Amended Plan of Reorganization
SATMEX: Arianespace Launches Satmex 6 on May 27
XIGNUX SA: Moody's Upgrades Rating on Senior Global Bonds to B2

P E R U

* PERU: President Asks Congress to Ratify Free Trade with US

P U E R T O   R I C O

ADELPHIA: Barbs on Multi-Mil. Suit with Devon Trustee Continues
ADELPHIA COMMS: Wants Aid in Asset Sale to Time Warner & Comcast
FIRSTBANK PUERTO: Moody's Continues Review for Likely Downgrade
GLOBAL HOME: Files Schedules of Assets and Liabilities
MAXXAM: Palco Provides Asset Information to Potential Lenders

OCA INC: Court OKs William Steffes as Committee's Local Counsel
SANTANDER BANCORP: Fitch Affirms C Individual Rating

T R I N I D A D   &   T O B A G O

DIRECTV: Gets Backing from Copyright Music on Piracy Issues

U R U G U A Y

* URUGUAY: Foreign Ministry Wary of Venezuela's Joining Mercosur

V E N E Z U E L A

PETROLEOS DE VENEZULA: Says Orinoco Debt Refinancing Unaffected

* VENEZUELA: Buying US$100 Million of Bolivian Debt
* VENEZUELA: Concludes Trade Fair with Cuba & Bolivia
* VENEZUELA: President to Arrive in Ecuador to Ink Oil Pact


                          - - - - -



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


ALFREDO ROMEO: Trustee Stops Accepting Claims by July 4
-------------------------------------------------------
Leon Sergio Fuks, the trustee appointed by the Buenos Aires
court for the bankruptcy proceeding of Alfredo Romeo Agazzi
S.A.C.I., will no longer entertain claims that are submitted
after July 4, 2006, Infobae reports.  Creditors whose claims are
not validated will be disqualified from receiving any payment
that the company will make.

Individual reports on the validated claims will be presented in
court on Aug. 4, 2006.  The submission of the general report on
the case will follow on Oct. 18, 2006.

The debtor can be reached at:

         Alfredo Romeo Agazzi S.A.C.I.
         Ramon Freire 2331
         Buenos Aires, Argentina

The trustee can be reached at:

         Leon Sergio Fuks
         Bouchard 644
         Buenos Aires, Argentina


AVAN SAIC: Seeks Court Approval to Reorganize Business
------------------------------------------------------
A Buenos Aires court is reviewing the merits of Avan S.A.I.C.'s
petition to reorganize.  Infobae recalls that the company filed
the petition following cessation of debt payments.
Reorganization will allow Avan to avoid bankruptcy by
negotiating a settlement with its creditors.

The debtor can be reached at:

          Avan S.A.I.C.
          Ruta 8 Km 51,00
          Buenos Aires, Argentina


COMPANHIA ENERGETICA: S&P Withdraws B+ Corporate Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'B+' corporate
credit rating on Companhia Energetica da Borborema or CELB, as
well as its 'B+' issue rating on the forthcoming US$15 million
perpetual senior notes units, at the company's request.

At the time of the withdrawal, the outlook was stable.  There is
no rated outstanding debt.


CENTRO DE EXPOSICIONES: Claims Verification Ends on June 30
-----------------------------------------------------------
Court-appointed trustee Alfonso Raul Badaracco will stop
validating claims against bankrupt company Centro de
Exposiciones y Congresos S.R.L. after June 30, 2006, Infobae
reports.

Mr. Badaracco will present the validated claims in court as
individual reports on Aug. 25, 2006.  The trustee will also
submit a general report on the case on Oct. 9, 2006.

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

The debtor can be reached at:

         Centro de Exposiciones y Congresos S.R.L.
         Avenida J. B. Alberdi 4550
         Buenos Aires, Argentina

The trustee can be reached at:

         Alfonso Raul Badaracco
         Esmeralda 980
         Buenos Aires, Argentina


CENTRO INTEGRAL: Creditors Must File Proofs of Claim by June 29
---------------------------------------------------------------
Creditors of Centro Integral de Carrocerias Blindadas S.R.L. are
required to submit proofs of claim by June 29, 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 Aug. 25, 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. 6, 2006.

A Buenos Aires court declared Centro Integral bankrupt and
appointed Griselda Isabel Eidelstein as trustee.

The debtor can be reached at:

         Centro Integral de Carrocerias Blindadas S.R.L.
         Combatientes de Malvinas 3495
         Buenos Aires, Argentina

The trustee can be reached at:

         Griselda Isabel Eidelstein
         Lambare 1140
         Buenos Aires, Argentina


COIM S.R.L.: Asks Court Approval to Enter Bankruptcy
----------------------------------------------------
A Buenos Aires court is studying the bankruptcy petition
submitted by local company Coim S.R.L., says Infobae.

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

If the petition is granted, the court will order the transfer of
control of the company's assets to a court-appointed trustee who
will supervise the liquidation proceedings.

The debtor can be reached at:

         Coim S.R.L.
         Junin 558
         Buenos Aires, Argentina


COMCEL SA: Trustee Verifies Proofs of Claim Until July 5
--------------------------------------------------------
Creditors' proofs of claim against Comcel S.A. will be verified
by the court-appointed trustee, Osvaldo L. Weiss, until
July 5, 2006.

Infobae relates that validated claims will be presented in court
as individual reports on Aug. 31, 2006.

The submission of a general report will follow on Oct. 13, 2006.

A Buenos Aires court handles the Comcel S.A. bankruptcy case.

The trustee can be reached at:

         Osvaldo L. Weiss
         Roque Saenz Pena 651
         Buenos Aires, Argentina


MARCHIEU S.R.L.: Verification of Proofs of Claim Ends on July 6
---------------------------------------------------------------
Miguel Angel Tregob, court-appointed trustee for the bankruptcy
case of Marchieu S.R.L., has started verifying creditors'
claims.  Verification phase will end on July 6, 2006.

La Nacion relates that Buenos Aires' Court No. 25 declared the
company bankrupt at the request of Banco Rio, whom the company
owes US$31,854.44.

Mr. Tregob will submit an individual report based on the
verified claims on Sept. 1, 2006.  A general report is expected
in court on Oct. 13, 2006.

Clerk No. 49 assists the court in this case.

The debtor can be reached at:

         Marchieu S.R.L.
         Lima 1635
         Buenos Aires, Argentina

The trustee can be reached at:

         Miguel Angel Tregob
         Lima 287
         Buenos Aires, Argentina


MONTON FOOD: Trustee Stops Validating Proofs of Claim by June 30
----------------------------------------------------------------
The verification of creditors' claims for the Monton Food S.A.
insolvency case will end on June 30, 2006, states Infobae.

Maria Angelica Adornetto, the court-appointed trustee who will
examine the claims, will submit the validation results as
individual reports on Sept. 25, 2006.  She will also present a
general report in court on Nov. 7, 2006.

On June 12, 2007, the Monton Food's creditors will vote on a
settlement proposal prepared by the company.

As reported in the Troubled Company Reporter on April 10, 2006,
Monton Food has requested for reorganization after failing to
pay its liabilities.

Buenos Aires Court No. 20, with the assistance of Clerk No. 40,
granted the company's petition to reorganize.

The debtor can be reached at:

         Monton Food S.A.
         Santa Fe 2939
         Buenos Aires, Argentina

The trustee can be reached at:

         Maria Angelica Adornetto
         Suipacha 670
         Buenos Aires, Argentina


NUTRAR S.A.: Creditors Must Present Proofs of Claim by July 4
-------------------------------------------------------------
Creditors of bankrupt company Nutrar S.A. are required to
present proofs of their claim to Jorge Tasanis, the court-
appointed trustee, by July 4, 2006, La Nacion reports.
Creditors who fail to submit the required documents will not
qualify for any post-liquidation distributions.

Buenos Aires' Court No. 25 declared the company bankrupt at the
behest of Obra Social de Empleados de Comercio y Actividades
Civiles, which the company owes US$929.

Mr. Tasanis will submit an individual reports based on the
validated claims on Aug. 29, 2006.  A general report will also
be presented in court on Oct. 10, 2006.

Clerk No. 50 assists the court on the case.

The debtor can be reached at:

         Nutrar S.A.
         Cordoba 557
         Buenos Aires, Argentina

The trustee can be reached at:

         Jorge Tasanis
         Tte. Gral. Juan Domingo Peron 1410
         Buenos Aires, Argentina


TERMAN S.A.: Trustee Stops Verifying Proofs of Claim by July 4
--------------------------------------------------------------
Oscar Leonardo Epstein, the court-appointed trustee, has started
verifying claims against Terman S.A.  The verification phase
will end on July 4, 2006.

La Nacion relates that Buenos Aires' Court No. 25 declared the
company bankrupt at the request of Alimentos y Bebidas
Cartellone S.A., which the company owes US$20,000.

The verified claims will be used as basis for the individual
reports that will be submitted in court on Aug. 29, 2006.
A general report that contains an audit of the company's
accounting and business records will be submitted on
Oct. 10, 2006.

Clerk No. 50 assists the court in this case.

The debtor can be reached at:

         Terman S.A.
         Hipolito Yrigoyen 3081
         Buenos Aires, Argentina

The trustee can be reached at:

         Oscar Leonardo Epstein
         Viamonte 1620
         Buenos Aires, Argentina




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


WINN-DIXIE: Panel Seeks Approval of Amendment on A&M's Retention
----------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in
Winn-Dixie Stores, Inc., and its debtor-affiliates asks the U.S.
Bankruptcy Court for the Middle District of Florida to amend the
previously approved retention of Alvarez & Marsal, LLC, as its
operational and real estate advisors.

The Committee also asks the Court to reduce A&M's Restructuring
Fee by:

    -- 50% of each Monthly Fee paid from March 2006 through
       August 2006; and

    -- 75% of each Monthly Fee paid from September 2006 onward.

Patrick P. Patangan, Esq., at Akerman Senterfitt, in
Jacksonville, Florida, tells the Court that A&M has and
continues to provide additional services and analyses to the
Committee that are broader in scope and breadth, as well as
longer in duration, than was originally anticipated.

The parties have agreed to amend A&M's compensation terms,
which, if granted, would reduce the amount of Monthly Fees that
are set off against A&M's Restructuring Fee.

The parties have agreed that A&M's retention in the Debtors'
Chapter 11 cases will otherwise remain the same, Mr. Patangan
says.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people.  The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on
Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred
Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through
05-03840).  D.J. Baker, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Sarah Robinson Borders, Esq., and Brian C. Walsh,
Esq., at King & Spalding LLP, represent the Debtors in their
restructuring efforts.  Paul P. Huffard at The Blackstone Group,
LP, gives financial advisory services to the Debtors.  Dennis F.
Dunne, Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John
B. Macdonald, Esq., at Akerman Senterfitt give legal advice to
the Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 39; Bankruptcy Creditors' Service, Inc., 215/945-
7000).




===========
B E L I Z E
===========


* BELIZE: Venezuela Loans US$25 Million to Finance Oil Market
-------------------------------------------------------------
The Venezuelan government will lend US$25 million to Belize to
help it finance its emerging oil market, El Universal reports.

According to Belize Planning and Budge Management minister Ralph
Fonseca, the loan will help his country improve its balance of
payments before commencing an alliance with PDVSA, El Universal
relates.

"We have just arrived in the oil business, but Venezuela has a
valuable expertise we could use," Mr. Fonseca told El Universal.

In addition, Venezuela's state-owned oil firm -- Petroleos de
Venezuela SA -- proposes a strategic alliance with Belize to
help the nation explore its newfound oil.

PDVSA has proposed to export crude oil to Belize and help the
nation develop its infrastructure for its new oil industry, El
Universal relates.

                        About PDVSA

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

                        *    *    *

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

                       About Belize

Belize lies on the eastern or Caribbean coast of Central
America, bounded on the north and part of the west by Mexico,
and on the south and the remainder of the west by Guatemala. The
Country's natural resources include arable land potential,
timber, fish, andhydropower.

Moody's Investor Service assigned these ratings to Belize:

        -- CC LT Foreign Bank Depst Caa3
        -- CC LT Foreign Curr Debt  Caa3
        -- CC ST Foreign Bank Depst NP
        -- CC ST Foreign Curr Debt  NP
        -- LC Curr Issuer Rating    Caa3
        -- FC Curr Issuer Rating    Caa3
        -- Foreign Currency LT Debt Caa3
        -- Local Currency LT Debt   Caa3

Standard & Poor's Rating Service assigned these ratings to
Belize:

        -- Foreign Currency LT Debt CCC-
        -- Local Currency LT Debt   CCC+
        -- Foreign Currency ST Debt C
        -- Local Currency ST Debt   C




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


ATHENA INSURANCE: Creditors Must File Proofs of Claim by June 9
---------------------------------------------------------------
Creditors of Athena Insurance Company Limited are given until
June 9, 2006, to prove their claims to Joe B. Freeman, 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 and the full particulars of their debts
or claims, and the names and addresses of their lawyers, if any,
to Mr. Freeman.

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, 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 23, 2006.

The liquidator can be reached at:

         Joe B. Freeman
         Messrs. Conyers Dill & Pearman
         Clarendon House, Church Street
         Hamilton, HM DX, Bermuda


BAY POINT: S&P Rates Senior Secured US$125M Debt Facility at BB
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB'
counterparty credit rating to Bay Point Re Ltd. and assigned its
'BB' senior secured debt rating to Bay Point's term loan debt
facility of up to US$125 million.  The outlook is stable.

Bay Point is a limited-life, special-purpose Class 3 reinsurance
company domiciled in Bermuda and set up specifically to offer
quota share reinsurance to Harbor Point Re Ltd. (Harbor Point;
A-/Stable/--).

"The senior debt rating reflects the modeled risk inherent in
writing property catastrophe business and to a lesser extent Bay
Point's delegation of underwriting authority to Harbor Point,"
explained Standard & Poor's credit analyst James Brender.
"These positive factors are balanced by Harbor Point's strong
competitive position and risk management, good alignment of
interests between Bay Point and its cedant, the unique structure
of sidecars, and a low modeled probability of attachment."

Leverage and coverage were not considered explicitly as ratings
factors due to Bay Point Re's use of a trust structure.
However, these factors indirectly affect the modeled results for
a given capital structure and premium base.

Bay Point Re may borrow up to US$125 million from a consortium
of banks for five years.  The entity's capital structure will
include an equal amount of equity.

The proceeds from capital raising transactions will be placed in
a collateral account, which will provide Harbor Point with a
source of indemnity cover for losses relating to its property
catastrophe lines of business and other related lines.  The
duration of Bay Point's assets will be consistent with that of
its obligations.

Harbor Point will cede a portion of its premium from its
property business to Bay Point through a quota share reinsurance
treaty under which Bay Point's liability will attach
simultaneously with that of Harbor Point and otherwise follow
the fortunes with respect to the business retroceded to Bay
Point.  The exact cession percentage will depend on Bay Point
Re's collateral and Harbor Point's expected premium volume and
probable maximum loss from a 1-in-100-year U.S. wind event and
1-in-250-year U.S. earthquake event.  Initially, the quota share
cession will be up to 50%.


CREDIT SUISSE: Holds Final Shareholders Meeting Tomorrow
--------------------------------------------------------
Credit Suisse First Boston Finance Company Limited's final
shareholders general meeting will be tomorrow, May 31, 2006, at
9:30 a.m.

The meeting will be held at:

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

During the meeting, there will be a:

     -- presentation of an account on the wind up process of
        the company by the liquidator -- Mr. Robin J. Mayor, who
        will show the manner in which the winding-up
        has been conducted, how the property of the company has
        been disposed of and explain the process;

     -- determination by resolution the manner in which the
        books, accounts and documents of the company and of the
        liquidator shall be disposed; and

     -- resolution dissolving the company.

The company began liquidating assets on April 19, 2006.
Mr. Mayor stopped validating creditors' proofs of claim on
May 19, 2006.

The liquidator can be reached at:

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


GALVEX HOLDINGS: Court Approves Sale of Assets to SPCP Group
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approved the sale of Galvex Holdings Ltd.'s assets including its
subsidiaries' equities to SPCP Group LLC.

The purchase is effected in exchange for the discharge of the
Debtors' US$192 million debt to SPCP.  The purchaser acquired
the shares of:

      -- Galvex Estonia,
      -- Galvex Intertrade and
      -- Galvex Trade.

                    About Galvex Holdings

Headquartered in New York City, New York, Galvex Holdings
Limited -- http://www.galvex.com/-- and its affiliates operate
the largest independent galvanizing line in Europe.  The Debtors
have offices in New York, Tallinn, Bermuda, Finland, Ukraine,
Germany and the United Kingdom.  The company and four of its
affiliates filed for chapter 11 protection on Jan. 17, 2006
(Bankr. S.D.N.Y. Lead Case No. 06-10082).  Galvex Capital, LLC,
is represented by David Neier, Esq., at Winston &  Strawn LLP,
and Gerard DiConza, Esq., at DiConza Law, P.C.  Galvex Holdings
Ltd. and the other debtor-affiliates are represented by David
Neier, Esq., at Winston & Strawn LLP, and Lori R. Fife, Esq.,
Marcia L. Goldstein, Esq., and Shai Waisman, Esq., at Weil,
Gotshal & Manges, LLP.  John P. McNicholas, Esq., and Thomas R.
Califano, Esq., at DLA Piper Rudnick Gray Cary US LLP, represent
the Official Committee of Unsecured Creditors.  When the Debtors
filed for protection from their creditors, they estimated assets
and debts of more than US$100 million.


SOLVEST LTD: Fitch Downgrades Senior Bank Debt Rating to BB-
------------------------------------------------------------
Fitch Ratings removed Dole Food Company, Inc. from Rating Watch
Negative, where it was placed on April 10, 2006, and downgraded
the company's Issuer Default Rating, unsecured debt, and
Recovery Ratings.  Fitch withdrew its credit rating on Dole
Holding Company, LLC's second-lien term loan, which was
refinanced by Dole Food Co. on April 12, 2006.

Fitch downgraded these ratings:

  Dole Food Company, Inc. (Operating Company):

    -- Issuer Default Rating to 'B-' from 'B'
    -- Senior secured bank facility to 'BB-/RR1' from 'BB/RR1'
    -- Senior unsecured debt to 'CCC+/RR5' from 'BB-/RR2'

  Solvest Ltd. (Bermuda-based Subsidiary):

    -- Senior secured bank facility to 'BB-/RR1' from 'BB/RR1'

  Dole Holding Company, LLC (Intermediate Holding Company):

    -- IDR to 'B-' from 'B'

Fitch also assigned these ratings:

  Dole Food Company, Inc.:

    -- Secured asset-based revolving facility 'BB-/RR1'

  Solvest Ltd.:

    -- IDR 'B-'

These rating actions affect Dole's approximate $2.5 billion in
consolidated debt outstanding as of April 12, 2006.  The Rating
Outlook is Negative.

The ratings downgrade and Negative Outlook reflect Dole's high
leverage and the extremely weak operating fundamentals of the
fresh produce industry.  Elevated fuel and other commodity costs
disproportionately affect global fresh produce companies because
much of their production is imported from Latin and Central
America.  Also, effective Jan. 1, 2006, the cost to market
bananas increased as tariffs on bananas imported into the
European Union rose 135% to EUR176/metric ton.

The ratings also incorporate risks related to Dole's private
ownership structure and lack of material covenants in its credit
facilities and bond indentures.  While high debt levels increase
financial risk, the lack of significant near-term debt
maturities and over $200 million of availability on its $350
million asset-based revolver provides adequate near-term
financial flexibility. Dole has $390 million of debt maturities
in 2009 and its revolver expires in 2011.  If improvement in
operating fundamentals and leverage is not apparent within the
next several quarters, further downgrades to Dole's ratings may
be warranted.

Fitch's actions follow a review of Dole's first-quarter ended
March 25, 2006 results, final fiscal 2005 financial results, and
its recently renegotiated secured credit agreements.  Dole's
credit profile has weakened over the past 15 months due
primarily to significant declines in operating income and higher
debt levels.

For the latest 12 months ended March 25, 2006, total debt
(excluding holding company debt)-to-operating EBITDA was 7.2x,
operating EBITDA-to-interest incurred was 2.1x, and net cash
flow from operations-to-total debt was 0.4%.  In fiscal 2004,
these credit statistics measured 4.0x, 3.0x, and 11.6%,
respectively.

During the first quarter ended March 25, 2006, operating income
declined 77% versus the prior year period.  For the year ended
Dec. 31, 2005, operating income declined 29% versus the full
year 2004.  The deterioration has primarily been caused by
higher fuel, packaging and production costs.  Fuel and other
distribution related costs are estimated at about a third of
overall expenses. Higher banana import tariffs contributed to
the decline during the March 25, 2006, period.  Bananas have
historically represented about a third of gross profit.

Dole's debt balances have increased because of higher working
capital requirements.  Large working capital fluctuations are
not unusual for the commodity produce industry.  However, on
April 12, 2006, Dole expanded its secured credit facility to
US$1.425 billion from US$1.050 billion.  The company refinanced
Dole Holdings, LLC's second-lien term loan at the Dole Food Co.
level, thus lowering its cost of capital, raised the size of
Solvest's term loan borrowings, and provided cash
collateralization for its letters of credit.

Dole's new credit facilities do not have many financial
maintenance covenants and have limited restrictions related to
the financing of its wellness center projects.  The only
significant covenants are a minimum quarterly fixed-charge
coverage requirement of 1.0x and a limitation on the incurrence
of additional debt if total leverage exceeds 5.5x.  Fitch
anticipates that, over the intermediate term, Dole's leverage
can normalize below 5.5x.  This would be acceptable for the 'B-'
rating category.

In the near term, Fitch expects Dole's credit protection
measures to remain weak as the company manages through the new
European Union banana regime and as fuel and container-board
expenses remain elevated.  For the quarter ended March 25, 2006,
Dole received a waiver for certain covenants contained in its
secured credit facility that was subsequently refinanced in
April.

Maximum leverage in the old facility was 5.75x through the third
quarter of fiscal 2006, stepping down to 3.5x by year-end 2009.
Dole's new credit facilities do not have a maximum leverage
covenant.  Nonetheless, Fitch anticipates that there is high
probability that Dole may need to obtain additional waivers
relating to its fixed-charge coverage covenant.  For the LTM
ended March 25, 2006, Fitch calculates that Dole's fixed-charge
coverage approached 1.0x.

In a distressed scenario, Fitch anticipates reduced recovery
prospects for Dole's senior unsecured indebtedness.  The 'RR5'
recovery rating reflects below-average recovery in the event of
default.  This is primarily due to the increased amount of
secured debt in Dole's capital structure.

Solvest's secured bank facility increased from roughly $500
million of term loans and a revolver to $700 million of term
loans.  While the subsidiary does not have any real assets, its
debt is guaranteed by DHM Holdings, Inc. (parent) and certain
domestic and foreign subsidiaries on a pari passu basis with
Dole's secured obligations.  Dole's credit facility has a
special provision applicable to lenders in a sharing of
collateral event.

The provision describes a mandatory procedure which is intended
to result in equitable sharing of credit risk for all tranches
of debt, including that issued by Solvest.  The debt of Solvest
also has a claim on certain U.S. cash flows and assets.  As a
result, in a distressed scenario, recovery on Solvest's secured
debt is anticipated to be equal with that of Dole's secured
creditors.

Dole Food Company is one of the world's largest producers of
fresh fruit, fresh vegetables, and fresh-cut flowers.
Approximately 54% of Dole's revenue is generated from outside of
the U.S. Dole's operations are fully integrated, with the vast
majority of growing, harvesting, processing and packaging done
in South America and the Far East; 58% of Dole's tangible assets
are outside of the U.S. Dole's four primary operating segments
contributed to 2005 revenue and operating income:

   * Fresh Fruit 63% of 2005 revenues and 68% of 2005 operating
     income;

   * Fresh Vegetables 18% of revenues and 4% of operating
     income;

   * Packaged Foods 15% of revenues and 29% of operating income;
     and

   * Fresh-Cut Flowers, which contributed 3% of revenues but
     lost US$5.1 million.

Dole Foods is 100% owned by its CEO and chairman, David H.
Murdock.




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


* BOLIVIA: Concludes Trade Fair with Cuba & Venezuela
-----------------------------------------------------
Bolivia has ended its business fair with Cuba and Venezuela, El
Universal reports.

El Universal recalls that the fair was held in La Paz, Bolivia,
for two days.  The trade is within the framework of the
Bolivarian Alternative for the Americas aka ALBA and the
Peoples' Trade Treaty aka TCP.

The fair resulted in business plans estimated at US$12.1
billion, Bolivian authorities told El Universal.  A second event
is expected soon.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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

                        *    *    *

Moody's assigned these ratings on Cuba:

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

                        *    *    *

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


* BOLIVIA: Venezuela Buying US$100 Million of Country's Debts
-------------------------------------------------------------
As part of the numerous cooperation treaties signed last week,
Venezuela will buy US$100 million of Bolivian debt to help
President Evo Morales' government while it seizes oil assets of
foreign firms and rewrites the constitution, Bloomberg News
reports.  The new bonds will pay lower interest rates and will
have longer maturities.

The Venezuelan bond purchases are expected to finance about 37%
of the Bolivian government's estimated US$270 million budget
shortfall for 2006, Bloomberg reports, citing the Bolivian
finance ministry Web site. The deficit is expected to be 3.2% of
the country's gross domestic product.

"I think Chavez is trying to do what he did for Argentina and
Ecuador, help bolster a friendly government's finances as the
its leaders try to build political backing," Armando Alvarez,
president of the Bolivian Stock Exchange, told Bloomberg in an
interview in La Paz. "If they buy that much, it will be enough
to finance about half the government's annual budget shortfall."

Bloomberg says that Venezuela bought US$25 million of Ecuadorian
bonds on Dec. 7 and has bought about US$1.7 billion of Argentine
government bonds in dollars this year.

                        *    *    *

Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO BMG: S&P Affirms B+/B Counterparty Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+/B'
counterparty credit rating on Banco BMG S.A.  The outlook is
stable.

"The ratings on Banco BMG reflect the risks of a relatively
small bank operating in a highly competitive market and with
significant product concentration," said Standard & Poor's
credit analyst Daniel Araujo.

In addition, the bank is dependent on wholesale funding and
faces the challenge of maintaining a stable and diversified
funding base.  These risks are partially offset by a well-
defined and successful strategy as:

   -- niche bank,

   -- good execution benefiting from technology and distribution
      capabilities,

   -- sound results in terms of profitability, and

   -- good asset quality.

The bank is relatively small in the Brazilian banking industry,
ranking currently as the 25th largest bank as measured by
reported assets (BRL 3.9 billion or approximately US$1.7
billion) in December 2005.

Nevertheless, Banco BMG maintains a leading position in the
segment of payroll-discount loans in the country, having
originated BRL4.7 billion during 2005 supported by its pioneer
technology and distribution network.  While the bank is very
successful in its niche, it is viewed as more vulnerable to a
potential margin reduction in the medium to long term in
comparison with larger and more diversified players that are
currently rated in the 'BB' category, because of its more
limited access to cheap funding.  Banco BMG closed loan sale
agreements with different counterparties, which has sustained
such strong lending growth.  While results are still strong,
Standard & Poor's expect profitability to decline due to
increasing competition and potential lower spreads.

The stable outlook reflects our expectations that Banco BMG will
benefit from the maintenance of its core competencies, with
further growth in its niche operations in discount-payroll
loans, maintaining asset quality and capitalization at prudent
levels.

The ratings may be raised if Banco BMG:

   -- maintains good asset quality indicators in line with
      those of previous years;

   -- shows satisfactory profitability levels with the
      benefit of larger volumes to compensate potential decline
      in margins expected for the medium term; and

   -- demonstrates more diversification and stability in
      domestic funding.

These ratings may be lowered:

   -- if there is a significant worsening in asset quality to
      levels worse than 5% (loans from "E" to "H" according to
      local regulations, adjusted for ceded loans);

   -- if profitability levels drop to less than 1.5% on an
      adjusted basis (excluding sales of loan portfolio);

   -- if funding becomes problematic to support the bank's
      operations; and

   -- if liquidity is significantly impaired.


BANCO BRADESCO: Launches Firms & Couples Life Insurance Program
---------------------------------------------------------------
Banco Bradesco SA said in a statement that its life insurance
and private pension plan unit -- Bradesco Vida e Previdencia --
launched new life insurance policies -- Vida Mais Segura
Bradesco and Vida Max Bradesco -- that will be applicable to
firms and married couples.

According to Business News Americas, Vida Max Bradesco allows
companies to insure their top executives.

Vida Mais Segura Bradesco, on the other hand, provides joint
coverage for married couples, BNamericas states.

Bradesco is now targeting families with monthly salaries above
BRL3,000 after two years of promoting a cheaper life insurance
product with monthly premiums below BRL10 for lower-income
earners, Marco Antonio, the president of Bradesco Vida e
Previdencia, said in a statement.

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 BRADESCO: Mulls Expansion of Prime Brand This Year
--------------------------------------------------------
Banco Bradesco SA is considering the expansion of its Bradesco
Prime brand for high-income customers in 2006, according to
local financial daily Diario de Comercio.

Business News Americas relates that Bradesco Prime serves
customers with monthly salaries higher than BRL4,000, or
BRL50,000 in investments through the bank.

While high-income Brazilian customers may be small in number,
they are faithful and have higher expenses and a lot of added
value, Alexandre Umberti, a local analyst from Ibope
Intelegencia, was quoted by Business News Americas.

Diario de Comercio states that Bradesco plans to launch about 15
new Prime branches this year and raise the number of clients to
400,000 from 300,000.

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 DAYCOVAL: Will Proceed with US$50-Mil. Bond Issuance
----------------------------------------------------------
Banco Daycoval SA, a bank based in Brazil, plans to proceed with
its issuance of US$50 million worth of overseas bonds on Tuesday
despite recent market volatility, a source at Daycoval informed
Dow Jones Newswires.

According to Dow Jones, the issue -- rated B+ by Standard &
Poor's -- is part of a US$150 million program by Daycoval, which
already raised US$65 million of the program.

Dow Jones says that the bond will mature in 36 months.

"At the start of our recent road show in Europe, we were a
little worried because of the emerging market volatility.  But
the market was receptive and we decided not to change our
plans," the unnamed source was quoted by Dow Jones as saying.

Dow Jones relates that Banco Pactual was hired to organize the
process.  Daycoval did not make any estimate for the yield.

                        *    *    *

As reported in the Troubled Company Reporter on May 12, 2006,
Standard & Poor's Ratings Services assigned its 'B+/B'
counterparty credit rating to Banco Daycoval S.A.  The outlook
is stable.  At the same time, Standard & Poor's assigned a 'B+'
foreign-currency senior unsecured debt rating to the proposed
issuance of US$50 million with a three-year tenor.


BANCO DO BRASIL: Clients Use Automated Channel in Transactions
--------------------------------------------------------------
Banco do Brasil said in a statement that its clients used
automated channels for 89% of their transactions in the first
quarter of 2006.

According to Business News Americas, these automated services
includes transactions using:

  -- the Internet,
  -- automated teller machines aka ATMs,
  -- telephone banking,
  -- fax,
  -- call centers, and
  -- mobile banking.

BNamericas relates that about 44,000 ATMs handled 523 million
transactions.  This represents 59% of services for individual
clients.

Internet banking handled 339 million transactions online in the
first quarter, BNamericas states.  Of this number, 153 million
transactions were done by individual clients while 186 million
were performed by firms or government agencies.

About 200,000 clients used the mobile banking service, which
allows the use of cell phones.

                        *    *    *

As reported on Mar. 3, 2006, Standard & Poor's Ratings Services
raised its foreign currency counterparty credit ratings on Banco
do Brasil S.A. to 'BB' from 'BB-'.  The foreign and local
currency ratings of this bank are now equalized at 'BB'.  S&P
said the outlook is stable.


BANCO DO BRASIL: Insurance Unit Issued Policies Up by 4%
--------------------------------------------------------
Banco do Brasil's auto insurance unit reported a 4.2% first
quarter increase in issued policies compared to the same period
in 2005, Business News Americas reports, citing a company
statement.

Banco do Brasil Seguros/Brasilveiculos also reported a 6.3% rise
in new and renewed policies compared to the same quarter in
2005.

A spokesperson told BNamericas that the insurer would not
release additional information at this time regarding net
profits or total premiums for the quarter.

BNamericas says that Banco do Brasil's insurance broker BB
Corretora has more than 5,000 branches throughout the country.
It also offers BB insurance products via Internet and telephone.

Banco do Brasil Seguros/Brasilveiculos ranks seventh in the
local auto insurance market with a market share of 5.98%,
according to figures from insurance regulator Susep.

                        *    *    *

As reported on Mar. 3, 2006, Standard & Poor's Ratings Services
raised its foreign currency counterparty credit ratings on Banco
do Brasil S.A. to 'BB' from 'BB-'.  The foreign and local
currency ratings of this bank are now equalized at 'BB'.  S&P
said the outlook is stable.


BANCO PINE: S&P Puts B+/B Foreign Currency Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+/B' foreign
currency counterparty credit rating to Banco Pine S.A.  The
outlook is stable.

"The counterparty credit rating on Banco Pine reflects the risks
of a small bank operating in a competitive environment, the
challenge of building and maintaining a stable and diversified
funding base, and the relative concentration of assets and
liabilities inherent to the nature of its activities," said
Standard & Poor's credit analyst Daniel Araujo.

The rating benefits from the bank's consistent track record in
its niche of midsize companies, including good credit risk
management and good earnings generation with adequate cost
structure.  The rating also factors in the bank's conservative
positioning regarding liquidity management.

Banco Pine is a family-owned bank with total assets of BRL2
billion or approximately US$850 million in December 2005, which
places the bank as the 29th private bank in the Brazilian
banking industry.  The bank specializes in collateralized
lending to midsize companies and has added other products to
diversify its operations, namely onlendings from the Brazilian
National Development Bank -- BNDES and the rendering of
guarantees to larger corporates, discount-payroll loans to
individuals (retirees, pensioners, and civil servants), and
trade finance.  The bank has an agile operating structure, which
allows rapid growth under favorable macroeconomic conditions and
flexibility in times of stress.  In the medium to long term,
though, the bank faces increasing competition in the market,
with an increase in the number of players and potential decline
in margins.

The stable outlook mirrors our expectation that the bank will be
able to maintain its good track record of profitability (ROAA of
about 2%) and good asset quality indicators.  The outlook also
factors in the maintenance of the bank's main focus on secured
loans to midsize companies.

The outlook may be revised to negative or the ratings may be
lowered

   -- if there is a significant deterioration in the bank's
      asset quality ratios in comparison to current ratios;

   -- if profitability drops substantially; or

   -- if liquidity deteriorates due to difficulties in funding
      or less-conservative management.

The outlook may be revised to positive or the rating raised if
the bank gains scale without damaging current asset quality and
profitability levels while maintaining prudent liquidity
management with more stable and diversified funding sources.


BANCO NACIONAL: Approves New Export Financings for US$89.5 Mil.
---------------------------------------------------------------
The board of Banco Nacional de Desenvolvimento Economico e
Social aka BNDES approved four financings for exports, amounting
to US$89.5 million.  Eligible for pre-Shipment Line, the credit
operations are destined to support new sales of the companies

   -- Caterpillar Brasil,
   -- CNH Latin America,
   -- DaimlerChrysler do Brasil and
   -- Bertin.

The higher financing will be released to the manufacturer
Caterpillar, which presently produces 23 machine models,
including

   -- motor graders,
   -- caterpillar tractors,
   -- wheel loaders,
   -- backhoes,
   -- compactors,
   -- hydraulic excavators and
   -- generator groups.

Exported to over 120 countries, Caterpillar products have as
main markets the United States, Mexico and Argentina.  This
manufacturer already employs about 4 thousand employees and
ranks among the 20 leading exporters in Brazil.

The second financing, for an amount equivalent to US$20 million,
will be destined to CNH Latin America.  The company, which has
2.3 thousand employees, produces

   -- caterpillar excavators,
   -- backhoes,
   -- motor graders and
   -- wheel loaders

in its Belo Horizonte plant.  The Piracicaba, in the State of
Sao Paulo, plant produces sugar cane and coffee harvesters,
while the Curitiba plant manufactures combined tractors and
harvesters.

The main CNH Latin America's export markets are Argentina, the
United States, Venezuela, Chile and Paraguay.

The financing approved by BNDES went to DaimlerChrysler do
Brasil, for an amount equivalent to US$10 million, for exports
of

   -- trucks of several models,
   -- buses and
   -- hoisters for semitrailers.

This manufacturer is held by DaimlerChrysler AG, founded in
1998, when Daimler-Benz incorporated Chrysler Corporation.  In
Brazil, the company has 13.2 thousand employees and operates
with three plants:

   -- Juiz de Fora (cars),
   -- Campinas (parts and services) and
   -- Sao Bernardo do Campo (trucks, chassis, motors and bus
      platforms), where it also installed a product development
      center, bearer of ISO-9901 Certificate.

Last year the company exported US$1.3 billion in buses, trucks
and motors for over 70 countries.  The main destination markets
for its sales are the United States, Germany, Latin American
countries like Argentina, Chile, Mexico and Ecuador, besides
Middle East countries, among which are Egypt, Qatar and Iran.

Bertin Ltda. will receive a BNDES credit equivalent to US$9.5
million. The company integrates the Bertin Group, which became
one of Brazil's leading producer in the meat and byproducts
industry, operating in several segments like

   -- meat,
   -- leather,
   -- hygiene and
   -- cleaning products.

Located in the State of Sao Paulo, today the group is spread
through the States of Minas Gerais, Bahia, Para, Goias and Mato
Grosso do Sul. It already has seven slaughtering and boning
plants and two meat-manufacturing plants.  It ranks second in
leading beef exporters and its main markets are the United
States, Italy, Chile and Hong Kong.

                        *    *    *

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.


BICBANCO: Extends 8.25% US$20-Million Bond Issue Term to 2 Years
----------------------------------------------------------------
Bicbanco aka Banco Industrial e Comercial S.A. has extended the
timeline to two years for its latest international bond issue of
US$20 million, Business News Americas reports.

Local bank Banco BMG S.A. has started sounding out the market in
relation to a future issue, local newspapers reported.

Bicbanco's previous issue at the end of last year also promised
to pay 8.25%, but over an 18-month period.  The demand for
Industrial's last bond issue reached US$25 million, BNamericas
quoted local press.

The bank's international director Claudio Torres said that
proceeds from the issue will be parlayed to customers in the
form of payroll loans, according to local financial daily Valor
Economico.

Investment bank BCP Securities managed the bond issues.

BicBanco S.A. is a bank that primarily targets SMEs, has 31
branches and 606 employees, and carries out 75% of its
activities in southern and southeastern Brazil.

                        *    *    *

As reported on Mar. 7, 2006, Moody's Investors Service assigned
a 'B2' long-term foreign-currency debt rating to the US$120
million step-up subordinated notes, due 2016, of Banco
Industrial e Comercial S.A. aka BICBANCO.  Moody's said the
outlook on the rating is stable.


BRASIL TELECOM: Launches Wireless Fixed Line Phone
--------------------------------------------------
Brasil Telecom Participacoes said in a statement that it has
launched a wireless fixed line telephone service with Intelbras,
a local telecoms manufacturer.

Business News Americas reports that Brasil Telecom's wireless
phone, which is available in the company's region for BRL399,
has many of the cell phone's characteristics.  However, it
operates at fixed line rates.

According to BNamericas, Brasil Telecom and Intelbras selected
the Sagem D85c handset for this service.  It contains DECT
technology and transmits data, allowing users to transfer up to
200 names and numbers from a cell phone into the fixed line
handset.

BNamericas states that the D85c handset has these features:

  -- call identification,
  -- an alarm,
  -- live voice,
  -- call registration,
  -- games, and many others.

"We want to encourage users who make calls at home from their
mobile phones, to switch to their cordless fixed line phone,"
Eugenio Pimenta, the product director of Brasil Telecom, was
quoted by BNamericas as saying.

The product director admitted to BNamericas that the company's
long distance revenues have been dropping 1% per month and said
that the firms is trying to fill the gap in lost revenues
through broadband, higher international traffic and fixed mobile
convergence.

                        *    *    *

Brasil Telecom SA is controlled by Brasil Telecom Participacoes
SA which is the publicly-listed holding company for 10 fixed-
line operating companies located in the western, central, and
southern regions of Brazil and in the Federal District region.

Brasil Telecom Participacoes' local currency long-term debt
carries Fitch's BB+ rating.


COMPANHIA VALE: Secures Preliminary License for Para Project
------------------------------------------------------------
Companhia Vale do Rio Doce obtained a preliminary license from
Brazil's environmental protection agency, Instituto Brasileiro
do Meio Ambiente e dos Recursos Naturais Renovaveis (Ibama), to
operate the copper project in Para state.

The new mine, known as project 118, entails extracting the
mineral from the southern part of the Carajas national forest
park and building a plant with a 45,000t/y nominal capacity,
Business News Americas says.

Companhia Vale must provide Ibama with all the mitigation,
monitoring and compensation plans and programs mentioned in the
environmental impact study, which should be detailed in a basic
environmental plan, BNamericas relates.

The license is valid for two years.

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'.


PETROLEO BRASILEIRO: Posts Lower Local Oil Production in March
--------------------------------------------------------------
Petroleo Brasileiro SA or Petrobras, Brazil's state-owned energy
company, reported lower domestic oil output in March.  The
company's local production fall to 1.75 million barrels a day in
March 2006, down 0.7% from 1.76Mb/d in February, Business News
Americas reports, citing a statement from the company.

In the first three months of 2006, average daily output was
1.75Mb/d, up from 1.68Mb/d for the whole of 2005, the statement
said.

According to the same statement, the decline in production was
caused by maintenance stoppages of an oil-processing unit in the
Campos basin and a gas-processing unit in the Sergipe-Alagoas
basin.

Petrobras' international output rose to 159,400 barrels a day in
March from 158,700b/d in February.  In the first three months of
2006, output averaged 158,300b/d down from 162,800b/d in the
whole of 2005, BNamericas relates.

Combined natural gas and oil production fell to 2.28 million
barrels of oil equivalent a day (Mboe/d) in March, down 0.3%
from 2.29Mboe/d in February, the company said in the statement.

In the first quarter of 2006, total hydrocarbons output averaged
2.28Mboe/d compared to 2.22Mboe/d for the whole of 2005.

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      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+




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


AERCAP G: Sets Final Shareholders Meeting on June 5
---------------------------------------------------
Shareholders of Aercap G Caymans Limited, fka Debis
Airfinance G Caymans Limited, will gather for a final
meeting on June 5, 2006, at:

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

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

As reported in the Troubled Company Reporter on May 24, 2006,
Aercap G started liquidating assets on March 31, 2006.
Creditors of the company were required to submit particulars of
their debts or claims on or before May 25, 2006, to Sean
Brennan, the company's appointed liquidator.

The liquidator can be reached at:

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


BRONZEWOOD LIMITED: Sets Final General Meeting on June 1
--------------------------------------------------------
Shareholders of Bronzewood Limited will gather for a final
general meeting on June 1, 2006, at:

            Maples Finance Limited
            Queensgate House, 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 March 21, 2006,
Bronzewood Limited started liquidating assets on Feb. 21, 2006.
The company's appointed liquidators, Jon Roney and Richard
Gordon validated creditors' proofs of claim until April 6, 2006.

The liquidators can be reached at:

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


DBY SIX: Schedules Final Shareholders Meeting on June 1
-------------------------------------------------------
Shareholders of DBY Six (Cayman) Limited will gather for a final
meeting on June 1, 2006, at:

            Maples Finance Limited
            Queensgate House, 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 March 23, 2006,
FK Capital started liquidating assets on Feb. 13, 2006.  The
company's liquidators, Jon Roney and Richard Gordon verified
creditors' proofs of claim until April 6, 2006.

The liquidators can be reached at:

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


MILLENNIUM SHOPPING I: Last Shareholders Meeting Is on June 1
-------------------------------------------------------------
Millennium Shopping Corp. I's shareholders will gather on
June 1, 2006, for a final general meeting at the offices of:

           Maples Finance Limited
           Queensgate House, 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 March 30, 2006,
Millenium Shopping Corp. I started liquidating assets on
Feb. 22, 2006.  The company's liquidators verified creditors'
proofs of claim until April 6, 2006.

The company's liquidators can be reached at:

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


MILLENNIUM SHOPPING II: Final General Meeting Is Set for June 1
---------------------------------------------------------------
Millennium Shopping Corp. II's shareholders will hold a final
meeting on June 1, 2006, at the offices of:

            Maples Finance Limited
            Queensgate House, 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 March 31, 2006,
Millennium Shopping Corp. II started liquidating assets on
Feb. 22, 2006.  Carlos Farjallah and Richard Gordon, the
company's appointed liquidators verified creditors' proofs of
claim until April 6, 2006.

Parties-in-interest may contact the liquidator at:


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


MJT FUNDING: Liquidator Presents Wind Up Accounts on June 1
-----------------------------------------------------------
Ryutaro Uchiyama, the liquidator of MJT Funding Corporation,
will present wind up accounts during a final meeting on June 1,
2006, at:

           Maples Finance Limited,
           Queensgate House, George Town
           Grand Cayman, Cayman Islands

As reported in the Troubled Company Reporter on May 26, 2006,
MJT Funding started liquidating assets on April 12, 2006.  The
company's liquidator required creditors to submit proofs of
claim by June 1, 2006.

The liquidator can be reached at:

           Ryutaro Uchiyama
           Maples Finance Limited
           P.O. Box 1093, George Town
           Grand Cayman, Cayman Islands


MONUMENT CAPITAL: Holds Last Shareholders Meeting on June 1
-----------------------------------------------------------
Monument Capital Ltd. will hold a final general meeting on
June 1, 2006, at the offices of:

           Maples Finance Limited
           Queensgate House, George Town
           Grand Cayman, Cayman Islands

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

The company's liquidators can be reached at:

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


PACIFIC DIAMOND: Schedules Last General Meeting on June 1
---------------------------------------------------------
Shareholders of Pacific Diamond Corporation will gather for a
final meeting on June 1, 2006, at:

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

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

Parties-in-interest may contact the liquidator at:

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


STARVIEW OPPORTUNITIES: Holds Last General Meeting on June 1
------------------------------------------------------------
Shareholders of Starview Opportunities Access Ltd. will gather
on June 1, 2006, for a final general meeting at the offices of:

           Maples Finance Limited
           Queensgate House, 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 25, 2006,
Starview Opportunities started liquidating assets on April 12,
2006.  Verification of creditors' claims against the company
will end on June 1, 2006.

The company's liquidators can be reached at:

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


STARVIEW PARTNERS: Final Shareholders Meeting Is Set for June 1
---------------------------------------------------------------
Starview Partners Access Ltd. will hold a fina shareholders
meeting on June 1, 2006, at:

           Maples Finance Limited,
           Queensgate House, 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 25, 2006,
Starview Partners started liquidating assets on April 12, 2006.
The company's creditors are required to submit proofs of claim
by June 1, 2006.

The liquidators can be reached at:

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




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


ROCK-TENN: Moody's Confirms Corporate Family Rating at Ba2
----------------------------------------------------------
Moody's Investors Service confirmed Rock-Tenn Company's long
term debt ratings and restored the outlook to stable.  The
rating action concludes a review initiated on February 13.  In
turn, "the review was prompted by ongoing margin pressure that,
given the background of increased debt levels as a consequence
of an acquisition that was completed last year, has caused
credit protection measures to lag those appropriate for the
current rating".

In the interim, profit margins for companies such as Rock-Tenn
that manufacture recycled fiber-based paperboard have stabilized
as input costs for natural gas and old corrugated containers
have moderated.  In addition, very recent announcements indicate
that the pace of relevant capacity rationalization has
accelerated, suggesting that pricing pressure may also be
abating.

Lastly, Rock-Tenn has been rationalizing its' box plant network.
This should also assist with margin improvement over time.
With these factors, and given Rock-Tenn's commitment to debt
reduction, Moody's expects Rock-Tenn's credit protection
measures to stabilize in a range supportive of the existing
ratings.

Outlook actions:

Outlook: Changed To Stable from Rating Under Review From Stable

Rating confirmations:

   * Corporate Family Rating: Confirmed at Ba2
   * Senior Unsecured Bank Credit Facility: Confirmed at Ba2
   * Senior Unsecured Regular Bond/Debenture: Confirmed at Ba3

Headquartered in Norcross, Georgia, Rock-Tenn Company, provides
marketing and packaging solutions to consumer products companies
from operating locations in the United States, Canada, Mexico,
Argentina and Chile.


SANTANDER SANTIAGO: Issues CLP108 Bil. Bonds on Local Market
------------------------------------------------------------
Banco Santander Santiago, the largest bank in Chile, issued
CLP108 billion bonds on the local market to home mortgage
lending's growth, Business News Americas reports.

Santander Santiago said in a press release that investor demand
reached CLP177 billion -- 1.63 times the offer.

The series K2 bonds denominated in the country's inflation-
indexed unit -- the UF -- has a 4.57% annual interest rate and
will mature in 14 years, BNamericas relates.

                        *    *    *

As reported on Jan. 6, 2006, Moody's Investor Services
reaffirmed Banco Santander Santiago's credit risk ratings:

    * Bank Financial Strength: B-
    * Long-term Bank Deposits: Baa1
    * Senior bonds: A2
    * Subordinated Debt: A3
    * Short-term: P-2
    * Outlook: Positive: Deposits and Stable: Bank Financial
      Strength Ratings and Senior and Subordinated Foreign
      Currency Debt Ratings




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


BANCAFE: Allocates COP180 Bil. Excess Capital to Credit Program
---------------------------------------------------------------
Colombia's state bank Bancafe aka Granbanco-Bancafe told the
local regulator in a filing that it allocated about COP180
billion of its excess capital partly to fund the creation of
Banco de las Oportunidades.

Business News Americas relates that Banco de las Oportunidades
is a low-cost credit program sponsored by the government to
offer financial services to about 300 municipalities and other
government projects.

According to BNamericas, it will make the solvency ratio of
Bancafe drop to 11% from 16%. The equity of Bancafe had amounted
to BRL915 billion in March.

Bancafe was formed by the merging of Bancafe assets and part of
Granahorrar, a local mortgage bank, in March 2005.  To save them
from bankruptcy when the country was hit by financial crisis in
the late 90s, the government had taken control of the banks.


BANCO DE BOGOTA: Will Issue COP300 Billion in New Shares
--------------------------------------------------------
Banco de Bogota, the second largest bank in Colombia and a
subsidiary of Grupo Aval, told the financial regulator in a
filing that it will issue about COP300 billion in new shares.

As reported in the Troubled Company Reporter on March 20, 2006,
Banco de Bogota, bought a 95% stake in Megabanco from bankrupt
Coopdesarrollo for COP808 billion in an auction.  Luis Carlos
Sarmiento, the chief executive of Grupo Aval told reporters that
the purchase of Megabanco will be financed with a US$300 million
loan from Citigroup Inc. (C) and the remainder will come from
Grupo Aval's own cash.

Banco de Bogota increased its market share to 13.6% from 11.7%
of the financial system's assets with the acquisition, Business
News Americas states.

                        *    *    *

As reported by Troubled Company Reporter on March 13, 2006,
Moody's Investors Service assigned a 'Ba3' long-term foreign
currency deposit rating on Banco de Bogota and changed the
outlook to stable from negative.  Moody's also assigned a 'D+'
bank financial strength rating on the company, while the outlook
remained stable.


* COLOMBIA: IFC Grants US$50M to Support Small Entrepreneurs
------------------------------------------------------------
The International Finance Corporation, the private sector arm of
the World Bank Group, will provide US$50 million to Fundacion
Social in Colombia to help expand its operations providing
access to credit for small companies.

This transaction will continue to strengthen the partnership
between IFC and Fundacion Social, entities that share a
strategic interest in furthering Colombia's economic
development, in particular that of the lower-income population
and small entrepreneurs.  IFC's operation will allow Fundacion
Social to grow its microfinance portfolio to more than US$37
million and reach over 53,000 clients over the next five years.

IFC's financing, part of which has the option to convert into
equity of different companies of Fundacion Social, aims to
leverage the foundation's expansion strategy for its business
organization.  This operation follows IFC's equity participation
in BCSC, the largest company of the Fundacion Social Group.

Roberto Albisetti, IFC's Country Manager for Colombia, said,
"For IFC, the ongoing support to Fundacion Social reflects our
strategy in Colombia of facilitating access to finance for
medium- and low-income segments of society.  The development of
the country's small and medium enterprises is crucial for
generating jobs, creating opportunities, and improving the
people's quality of life."

"The strengthening of the relationship with IFC is a very
important step for the Fundacion.  We have worked for over a
century on a business model for overcoming the structural causes
of poverty in Colombia.  This mission relates to the objectives
of IFC and its development strategy," pointed out Alvaro Davila
Ladron de Guevara, President of Fundación Social.

IFC's total portfolio in Colombia was US$280 million as of June
2005.  Since Colombia joined IFC in 1956, the Corporation has
provided US$1.4 billion, including syndications, for 58
companies.

The financial sector is one of IFC's priorities in Colombia,
with special emphasis on housing finance and microfinance, as
well as strengthening local capital markets and improving
corporate governance. IFC's strategy includes also increasing
support to strategic sectors for economic growth in the context
of free trade agreements, such as

   -- infrastructure projects,
   -- port expansion,
   -- road and airport concessions, and
   -- support to companies in the logistic services sector.

IFC has found in the business area of Fundacion Social a strong
local ally in Colombia, given its track record and over 95
years' experience in managing different types of businesses
including banks and insurance and real estate companies and in
developing successful strategies for the low- and middle-income
population sectors, where it is a leading actor.

The Fundacion Social Group comprises, among other companies,

   -- the BCSC bank, with its networks Banco Caja Social BCSC
      and Colmena BCSC;
   -- Riesgos Profesionales Colmena;
   -- Capitalizadora Colmena;
   -- Fiduciaria Colmena; and
   -- Deco Construcciones.

                        *    *    *

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

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

Fitch said the Rating Outlook is Stable.


                        *    *    *

Moody's upgraded Colombia's long-term foreign currency rating of
Ba1 from Ba2 under the revised foreign currency ceilings on
May 24, 2006.

Moody's said the Rating Outlook is Stable.




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


* CUBA: Concludes Trade Fair with Bolivia & Venezuela
-----------------------------------------------------
Cuba has ended its business fair with Bolivia and Venezuela, El
Universal reports.

El Universal recalls that the fair was held in La Paz, Bolivia,
for two days.  The trade is within the framework of the
Bolivarian Alternative for the Americas aka ALBA and the
Peoples' Trade Treaty aka TCP.

The fair resulted in business plans estimated at US$12.1
billion, Bolivian authorities told El Universal.  A second event
is expected soon.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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

                        *    *    *

Moody's assigned these ratings on Cuba:

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

                        *    *    *

Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.




===============
D O M I N I C A
===============


DIGICEL LTD: Adds US$5-Million Investments in Dominica Market
-------------------------------------------------------------
Digicel Ltd., a mobile telecommunications company in the
Caribbean, introduced to the Eastern Caribbean island of
Dominica its "Expect More. Get More." tagline and an increased
investment of US$5 million to meet surging demand, as the
Company continues to market its value offerings including:

   -- best network coverage,
   -- commitment to customer service, and
   -- competitive pricing throughout the Caribbean region.

Digicel's US$5 million investment is focused on upgrades and
expansion to the network across Dominica, which is characterized
by rugged and steep terrain.  Digicel acquired operations in
Dominica through its purchase of Cingular Wireless assets in the
Caribbean and Bermuda in June 2005.

The "Expect More. Get More." tagline, rolled out across
Dominica, was introduced to the Digicel brand six months ago to
communicate the company's customer-centric operating principles
and continued commitment to customer satisfaction.  The tag has
differentiated Digicel among competitors' customer service
capabilities, a key area of strength for Digicel and a success
driver in its ability to achieve an annualized growth rate of 69
percent in April 2006, marking the company's fifth anniversary.

"We are delivering a consistent brand experience for customers
across the Caribbean and will continue to transform mobile
telecommunications and set new standards for service in
countries like Dominica," said Denis O'Brien, Digicel Founder
and Chairman who joined a commemorative event in Dominica on May
24, 2006 that prominently served as the official beginning of a
new era for mobile communications for Dominican residents.

"Digicel's brand promises to exceed our customers' expectations
in Dominica and across our pan Caribbean operations" Mr. O'Brien
added.

Throughout its 20 markets of operation, Digicel has become one
of the most admired brands in the region resulting in an average
market share of 63 percent.  In addition to Digicel's
recognizable logo, the company has built strong ties with local
customers through its active participation in cultural and
social events.

With an investment in the region at US$1 billion and a staff of
employment of close to 2000 people, Digicel's presence in the
Dominican market and throughout the Eastern Caribbean continues
to have a positive impact on the region's economy by developing
local jobs and supporting a broad range of public initiatives.

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.




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


CAP CANA: Creditor Files Bankruptcy Petition Against Company
------------------------------------------------------------
A bankruptcy petition has been filed against Cap Cana, S.A., by
Manuel Emilio Gomez Pion, the company's creditor, on May 19, in
adherence to Law 4852, newspaper Listin Diario reports.

Listin Diario relates that the documents were filed by Atty.
Jorge Lora in behalf of the creditor, opening the procedure
before the Industry and Commerce Ministry, through the National
District Chamber of Commerce and Production.

According to Dominican Today, the documents say that companies
Miniari and Cap Cana owe DOP288,396,500 from the purchase and
transfer of property developments.

As stated in the documents included in the procedure, Mr. Pion
was favored.  A 10-day deadline was given to pay the debt.

The newspaper report, as part of the request, affirms that the
creditors claim to have information that Cap Cana owes the
Dominican financial system DOP2.5 billion, an extraordinary sum
that imposes tremendous and monthly moratorium letter.


MINIARI S.A.: Creditor Files Bankruptcy Request Against Company
---------------------------------------------------------------
A bankruptcy petition has been filed against Miniari, S.A., by
Manuel Emilio Gomez Pion, the company's creditor, on May 19, in
adherence to Law 4852, newspaper Listin Diario reports.

Listin Diario relates that the documents were filed by Atty.
Jorge Lora in behalf of the creditor, opening the procedure
before the Industry and Commerce Ministry, through the National
District Chamber of Commerce and Production.

According to Dominican Today, the documents say that companies
Miniari and Cap Cana owe DOP288,396,500 from the purchase and
transfer of property developments.

As stated in the documents included in the procedure, Mr. Pion
was favored.  A 10-day deadline was given to pay the debt.

The newspaper report, as part of the request, affirms that the
creditors claim to have information that Cap Cana owes the
Dominican financial system DOP2.5 billion, an extraordinary sum
that imposes tremendous and monthly moratorium letter.




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


MILLICOM INTERNATIONAL: China Mobile Wins Auction
-------------------------------------------------
Chinese major telecom operator China Mobile won the Millicom
International auction, SinoCast reports.

Sources were quoted by SinoCast as saying that the deal is yet
to be approved by the authorities.

As reported in the Troubled Company Reporter on May 8, 2006,
Millicom entered in January a process of due diligence to
consider selling its operations.  Millicom's Latin American
operators include:

   -- Telecel Paraguay,
   -- Telecel Bolivia,
   -- Comcel in Guatemala,
   -- Celtel in Honduras, and
   -- Telemovil in El Salvador.

SinoCast recalls that United Arab Emirates' Investcom LLC led
the auction at first with a US$5 billion bid.  However, it
withdrew from the auction after it was surprisingly acquired by
MTN Group Ltd. of South Africa for US$5.53 billion, resulting to
the winning of China Mobile, the second biggest bidder.

SinoCast relates that China Mobile's offered US$4 billion,
contrary to its earlier report, which said the bid amounted to
US$6 billion.

Sources told SinoCast that the amount was lower than the market
value of Millicom, which was at US$4.9 billion.

Spokespersons from both firms have not made any comment,
SinoCast reports.

Millicom International Cellular S.A. -- http://www.millicom.com/
-- is a global telecommunications investor with cellular
operations in Asia, Latin America and Africa.  It currently has
cellular operations and licenses in 16 countries.  The Group's
cellular operations have a combined population under license of
approximately 391 million people.

The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras.  The population under
license in Central America as at December 2005 is 26.4 million.

The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay.  The population under license in South
America as at December 2005 is 15.2 million.

                        *    *    *

Millicom International's 10% senior notes due 2013 carry Moody's
B3 rating and Standard & Poor's B- rating.




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


* HONDURAS: Farmers Wary of Free Trade Agreement with US
--------------------------------------------------------
Poultry farmers in Honduras are wary of the country's free trade
agreement aka CAFTA with the United States, saying that it will
affect their chicken meat production, Prensa Latina reports.

According to Prensa Latina, Hector Hernandez -- the minister of
agriculture and stockbreeding -- said that any US entity could
export chicken to Honduras with a 164% tariff.

The CAFTA duty amounts to:

   -- 164% for the next nine years,
   -- 150.47% by 2015, and
   -- 136.94% by 2016.

Prensa Latina states that the US industry has huge chicken
reserves and will be cheaper to buy despite the tariff imposed,
making the farmers very worried.

The farmers are also worried over the possibility that US
chicken imports from a neighbor country under CAFTA may be sold
in Honduras, according to Prensa Latina.

The Honduran National Poultry Farmers Association was scheduled
to hold a general assembly on Sunday for the discussion of the
impact of CAFTA on the country, Daniel Manjivar, the association
chief, told Prensa Latina.

                        *    *    *

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




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


CORUS GROUP: Sells Rolled Aluminum Unit to Aleris for EUR826MM
--------------------------------------------------------------
Corus Group plc signed a Share Purchase Agreement for EUR826
million sale of its aluminum rolled products and extrusions
businesses to Aleris International Inc.

On March 16, 2006, Corus and Aleris signed a Letter of Intent
for the proposed acquisition by Aleris of Corus' downstream
aluminum rolled products and extrusions businesses for a gross
consideration of EUR826 million.

Following the completion of internal consultation and advice
processes related to the transaction, Corus and Aleris confirmed
they entered into a definitive Share Purchase Agreement.  The
transaction remains subject to certain external regulatory
clearances.  Completion is anticipated in the third quarter of
2006.

The net cash proceeds, after deducting pension liabilities but
excluding minority interests and net debt, would be
approximately EUR728 million.  These proceeds will be used to
further strengthen both the Group's balance sheet and develop
the carbon steel business.  The transaction is not expected to
have a material effect on the Group's net assets.

In 2005, Corus' downstream aluminum rolled products and
extrusions businesses generated a profit before taxation of
EUR47 million.  Gross assets related to these businesses, as at
Jan. 1, 2006, were EUR1.120 billion.  The management teams of
these businesses are expected to transfer to Aleris.

                        About Aleris

Headquartered in Beachwood Ohio, suburb of Cleveland, Aleris
International Inc.-- http://www.aleris.com/-- is a major North
American manufacturer of rolled aluminum products and is a
global leader in aluminum recycling and the production of
specification alloys.  Aleris is also a leading manufacturer of
value-added zinc products that include zinc oxide, zinc dust and
zinc metal.  The Company operates 41 production facilities in
the United States, Brazil, Germany, Mexico and Wales, and
employs approximately 4,000 employees.

                      About Corus Group

Corus Group PLC -- http://www.corusgroup.com/-- is an
international metal company, providing steel and aluminum
products and services to customers worldwide.  With an annual
turnover of GBP9 billion, the company is comprised of four
Divisions: Strip Products, Long Products, Distribution &
Building Systems and Aluminum, and has a global network of sales
offices and service centers.

                        *    *    *

As reported in the Troubled Company Reporter on May 11, 2006,
Moody's Investors Service upgraded Corus Group plc's corporate
family rating to Ba2, upgraded its senior unsecured and
supported unsecured obligations to B1 and raised senior secured
bank facility to Ba1.

As reported in the Troubled Company Reporter on March 30, 2006,
Standard & Poor's Ratings Services placed its 'BB-' long-term
corporate credit rating on U.K.-based steel consortium Corus
Group PLC on CreditWatch with positive implications following
March 16, announcement concerning the intended disposal of the
aluminum division, coupled with good financial performance in
2005.

At the same time, Standard & Poor's placed its 'BB' senior
secured bank loan ratings on Corus and its 'B+' senior unsecured
debt ratings on Corus and Corus Finance PLC on CreditWatch with
positive implications.  The 'B' short-term corporate credit
rating on Corus was also placed on CreditWatch with positive
implications.

At the same time, Fitch Ratings changed Corus Group PLC's
Outlook to Positive from Stable and affirmed the Issuer Default
Rating at BB- following the company's announcement of its 2005
results and plan to dispose its aluminum business for EUR826
million.


GRUPO HERDEZ: Arca Cancels Grupo Herdez Acquisition Talks
---------------------------------------------------------
The transaction to acquire a non-controlling stake in Grupo
Herdez SA, a food company, by Embotelladoras Arca SA, a Mexican
Coca-Cola bottler, was has been called off, El Financiero
reports.

Arca said in a statement to the Mexican stock exchange that both
firms had to change terms under the original agreement announced
on Feb. 3 and could not align respective interests under the new
terms.

Arca had planned to pay MXN3.2 billion to buy 49% of a company
that controls Herdez and pay MXN10 per share for Herdez's
outstanding shares, according to El Financiero.

Grupo Herdez is a leading company in the processed food sector,
with a background of over 90 years. If manufactures and sells
products under the brands Herdez, McCormick, Dona Maria,
Barilla, Yemina, Carlota, Hormel, Solo and Yavaros, among
others.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 17, 2005,
Grupo Herdez, S.A. de C.V. announced on Aug. 9, 2005, that it
finished the restructuring of US$399 million in bank debt,
extending maturities due in 2007 and 2008 to 2009 and 2010.
This amount represents a third of Grupo Herdez's liabilities.
With the restructuring, the funds allocated to paying
liabilities would be lower than 50% of the estimated annual free
cash flow during the following years.


MERIDIAN AUTOMOTIVE: Files Amended Plan of Reorganization
---------------------------------------------------------
Meridian Automotive Systems, Inc., filed, on May 26, 2006, its
First Amended Joint Plan of Reorganization and a Disclosure
Statement with the U.S. Bankruptcy Court for the District of
Delaware.

Meridian, together with certain of its secured creditors,
originally filed a plan of reorganization on March 30, 2006.
Those same secured creditors as well as the Official Committee
of Unsecured Creditors are co-proponents of the Amended Plan.
Meridian has asked the Bankruptcy Court to schedule a hearing in
June to approve the Disclosure Statement.

"We are very pleased that our restructuring plan is supported by
both a significant group of our secured creditors and the
Official Committee of Unsecured Creditors," Richard E. Newsted,
Meridian's President and CEO, said.  "Filing a Disclosure
Statement is a major step towards our exit from Chapter 11,
which we are committed to doing as quickly and efficiently as
possible."

                   About Meridian Automotive

Based in Dearborn, Michigan, Meridian Automotive Systems, Inc.
-- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens.  When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.


SATMEX: Arianespace Launches Satmex 6 on May 27
-----------------------------------------------
On May 27, Arianespace placed into geostationary transfer orbit
Satmex 6 for the Mexican operator Satelites Mexicanos S.A. de
C.V.

Arianespace also launched Thaicom 5 for the Thai operator Shin
Satellite Plc.

The launch was the 27th mission for Ariane 5 and the 13th
success in a row, further proof that Arianespace sets the global
standard for launch services, meeting the needs of operators
around the world.

Arianespace set a new record with this launch, boosting two
satellites totaling more than 8,200 kg. into orbit.  In just a
little more than nine months, Arianespace has used six Ariane 5s
to boost 11 satellites into geostationary transfer orbit.

Ariane 5 is the only commercial launcher in service capable of
simultaneously launching two payloads and providing customers
the performance, flexibility and competitiveness they expect.

               Launches for Two Loyal Customers

This is the fourth time that Satmex has used Arianespace to
launch a communications satellite.  Satmex had already chosen
Arianespace to launch Solidaridad 1 in November 1993,
Solidaridad 2 in October 1994 and Satmex 5 in December 1998.

Thaicom 5 was the fifth satellite launched by Arianespace for
private Thai operator Shin Satellite, following Thaicom 1 in
December 1993, Thaicom 2 in October 1994, Thaicom 3 in April
1997 and Thaicom 4 in August 2005.  Shin Satellite Plc, one of
the largest operators in the Asia-Pacific region, has shown its
continued confidence in Arianespace, the clear recognition of a
top-quality launch service.

             Satmex 6/Thaicom 5 Mission at a Glance

The mission was carried out by an Ariane 5 ECA launcher from
Europe's Spaceport in Kourou, French Guiana.  Liftoff was on
Saturday, May 27 at 6:09 pm local time in Kourou (5:09 p.m. in
Washington, D.C., 4:09 p.m. in Mexico City, 21:09 GMT, 11:09
p.m. in Paris, and on Sunday, May 28 at 4:09 a.m. in Bangkok).

Provisional parameters at injection of the cryogenic upper stage
(ESC-A) were:

    * Perigee: 250 km. for a target of 249.7 km. (˝3)
    * Apogee: 35,923 km. for a target of 35,910 km. (˝160)
    * Inclination: 6.99 degrees for a target of 7.00 degrees
      (˝0.06°)

Satmex 6 was produced by Space Systems/Loral of the United
States in Palo Alto, California.  Weighing about 5,500 kg. at
launch, it will be positioned at 113 degrees West.  Satmex 6 is
fitted with 36 C-band transponders and 24 Ku-band transponders.
It will bolster Satmex's telecommunications and Internet service
offering throughout Mexico, as well as in parts of North America
and Latin America.

Built by Alcatel Alenia Space, Thaicom 5 weighed about 2,800 kg.
at launch. It is fitted with 25 C-band transponders and 14 Ku-
band transponders. From its orbital position at 78.5 degrees
East, Thaicom 5 will provide telecom and television transmission
services for the entire Asia-Pacific region, and will eventually
replace the Thaicom 3 satellite.

                         About SATMEX

Headquartered in Mexico, Satelites Mexicanos, S.A. de C.V.
-- http://www.satmex.com/-- is the leading provider of fixed
satellite services in Mexico and is expanding its services to
become a leading provider of fixed satellite services throughout
Latin America.  Satmex provides transponder capacity to
customers for distribution of network and cable television
programming and on-site transmission of live news reports,
sporting events and other video feeds.  Satmex also provides
satellite transmission capacity to telecommunications service
providers for public telephone networks in Mexico and elsewhere
and to corporate customers for their private business networks
with data, voice and video applications, as well as satellite
internet services.  The Debtor is an affiliate of Loral Space &
Communications Ltd., which filed for chapter 11 protection on
July 15, 2003 (Bankr. S.D.N.Y. Case No. 03-41710).  Some holders
of prepetition debt securities filed an involuntary chapter 11
petition against the Debtor on May 25, 2005 (Bankr. S.D.N.Y.
Case No. 05-13862).  The Debtor, through Sergio Autrey Maza, the
Foreign Representative, Chief Executive Officer and Chairman of
the Board of Directors of Satmex filed an ancillary proceeding
on Aug. 4, 2005 (S.D.N.Y. Case No. 05-16103).

Matthew Scott Barr, Esq., Luc A. Despins, Esq., Paul D. Malek,
Esq., and Jeffrey K. Milton, Esq., at Milbank, Tweed, Hadley &
McCloy LLP represent the Debtor.  When the Debtor filed an
ancillary proceeding, it listed US$900,000,000 in assets and
US$688,000,000 in debts.


XIGNUX SA: Moody's Upgrades Rating on Senior Global Bonds to B2
---------------------------------------------------------------
Moody's Investors Service upgraded Xignux S.A. de C.V.'s
corporate family rating to B1 from B2 and the rating of its 9.5%
senior unsecured global bonds due 2009 to B2 from B3.  The
upgrade reflects the company's improved credit metrics and
liquidity position as a result of strengthening earnings and
cash flow generation over the past two years and the successful
efforts to reduce debt and extend its debt maturity profile.
The ratings outlook is stable.

These ratings were upgraded:

   -- Corporate Family Rating: to B1 from B2; and
   -- US$93 Million 9.5% Senior Unsecured Global Bonds, due
      2009: to B2 from B3.

The outlook for the ratings is stable.

Xignux's ratings are supported by

   -- scale and business diversification parameters that are
      comparable to those of similarly rated peers;

   -- the leading market positions of its electrical wire and
      cable, automotive harnesses, electrical transformer and
      food businesses;

   -- the operational and strategic benefits from its joint
      ventures with financially strong international companies
      such as General Electric, Yazaki and Sara Lee; and

   -- the improving earnings and cash flow trends over the past
      two years, which in part resulted from successful cost
      reduction efforts.

Conversely, the ratings are constrained by Xignux's

   -- pronounced financial leverage;

   -- the intense competition and cyclical challenges it faces
      in most of its operations; and

   -- the company's vulnerability to commodity price
      fluctuations in the cable and automotive wire harness
      businesses, which can create cost pressures and require
      hefty working capital investments.

In addition, Xignux's liquidity currently remains modest,
despite considerable improvements in the past two years.

Although margins have remained fairly flat, operating earnings
have grown significantly since 2003, helped by the cyclical
upturn in the company's markets, and cost reduction efforts such
as the transfer of labor intensive auto harnesses operations to
lower cost areas in Mexico and Central America, and
rationalization efforts in other divisions. Sales grew 26% and
17% (in nominal terms) in 2004 and 2005, respectively, on flat
operating margins of about 5.7%, and cash flow from operations,
adjusted for working capital timing effects, rose from less than
US$50 million in 2003 to about US$80 million in 2005.

Credit metrics improved consistently since early 2004 because of
stronger earnings and cash generation and debt reduction
facilitated by proceeds from the disposal of the Primex PVC
business in late 2004.  For the twelve months ended March 31,
2006, the retained cash flow to net debt and debt/EBITDA ratios
were at about 25% and 2.5 times, respectively, which are solid
measures relative to the company's B1 corporate family rating,
all ratios reflect normalized cash flow measures and Moody's
standard adjustments.  Yet these metrics reflect fully
consolidated results, including the full performance of joint
ventures.

Somewhat offsetting these relatively solid credit measures, is
Moody's expectation of negative free cash flow and higher net
debt in 2006 because of hefty investments in the company's auto
harness and food operations.  However, Moody's anticipates that
despite increased debt, credit metrics will remain close to
current levels in the near term because of earnings growth
(particularly driven by benefits from higher copper prices in
the wire and cable division) and, in our view, a permanent shift
towards more conservative financial policies.  Moody's expect
net debt to increase to about US$430 million by the end of
fiscal 2006, which is below levels seen in 2003 and 2004, from
US$390 as at March 31, 2006.

Xignux's liquidity currently remains modest despite significant
improvements since May 2004, such as the extension of debt
tenors and new committed revolving credit facilities.  Short-
term debt fell to about US$100 million at the end of the first
quarter 2006 (from about US$300 million in early 2004) and is
currently covered by about US$50 million in cash reserves and
US$70 million in availability under various committed long-term
revolving credit facilities.

In Moody's view, liquidity would become more solid if, as
anticipated, short term debt falls to be below US$50 million by
year end 2006, and if the company extends debt tenors further
and extends its use of committed debt facilities.  Conversely, a
reversal to less than full coverage of short-term debt, higher
than anticipated levels of short-term debt or persistent
negative free cash flow could pressure ratings.

The rating on the 9.5% senior unsecured global bonds continues
to be located one notch below the corporate family rating
because of the structural subordination of these bonds relative
to non-guarantor debt. In fiscal 2005, non-guarantor
subsidiaries, including joint ventures

   -- Xignux-Yazaki (wire harnesses),
   -- Qualtia (packaged food), and
   -- Prolec-GE (transformers),

generated about 73% of consolidated EBITDA and held 28% of
consolidated debt.  Guarantor entities include Viakable, a
wholly owned subsidiary (cable and wire) and Prolec, a 100%
owned sub-holding that owns 50% of Prolec-GE.

The stable outlook reflects our expectation that Xignux's credit
metrics will remain close to current levels, supported by solid
operating performance and prudent financial management.

Ratings could be upgraded or the outlook changed to positive if
operating performance and financial policies support consistent
free cash flow generation and result in a sustainable
improvement of credit metrics, such that total coverage exceeds
4.0 times and debt/EBITDA falls toward 2.0 times.

Ratings could be downgraded if

   -- credit metrics deteriorate materially (total coverage
      below 2.5 times and debt/EBITDA above 3.0 times) because
      of weaker business fundamentals;

   -- higher than expected raw material working capital
      requirements; and

   -- more aggressive financial policies or because of
      debt-financed acquisitions or investments beyond those
      currently anticipated.

Pressure on the rating could also come from a deterioration of
the company's liquidity profile.

Xignux S.A. de C.V., based in Monterrey, Mexico, is one of
Mexico's leading, privately held industrial conglomerates.
Through one wholly owned operating subsidiary and various fully
consolidated joint ventures with international partners, the
company manufactures and distributes:

   -- industrial cable and wire,
   -- automotive wire harnesses,
   -- transformers and
   -- certain food products.

In the fiscal year ended December 31, 2005, Xignux generated
about US$2 billion in sales.




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


* PERU: President Asks Congress to Ratify Free Trade with US
------------------------------------------------------------
Peru's President Alexander Toledo urged the country's Congress
to approve the Free Trade Agreement with the United states aka
TLC, Dominican Today reports.

Dominican Today recalls that the TLC was signed on
Apr. 12, 2006.

Before the TLC can start, it needs the approval of the Congress,
Dominican Today relates.

However, the Congress has not yet begun to discuss the possible
approval of TLC, Dominican Today relates.

According to a press note sent by the government to the
Associated Press on Saturday, President Toledo said, "80% of the
private industrialists are small and macro business men who
produce and generate jobs, they have the right to place their
products abroad."

Dominican Today states that President Toledo said that these
industrialists make a valuable contribution to the national
company.  According to him, the work in their factories
representing 42% of the national economy.

The Peruvian leader emphasized the necessity to open trade with
the United States, European Union, Chinese, Thailand, Chile and
Mexico markets, Dominican Today reports.

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

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




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


ADELPHIA: Barbs on Multi-Mil. Suit with Devon Trustee Continues
---------------------------------------------------------------
Devon Mobile Communications Liquidating Trust and the ACOM
Debtors stipulate that the Devon Trustee's complaint regarding
ACOM's breach of duty to fund operations is dismissed with
prejudice.  Each party bears its own costs.

                  Motions for Summary Judgment

The Liquidating Trustee assigned in Devon Mobile Communications'
chapter 11 case asks the U.S. Bankruptcy Court for the Southern
District of New York for a summary judgment that Adelphia
Communications Corporation and its debtor-affiliates, as the
alter ego of Devon Mobile Communications, L.P., is liable to the
Devon Trustee:

    -- for the US$80,000,000 debt that the Devon Trustee is
       unable to pay;

    -- for US$80,000,000 under the doctrine of deepening
       insolvency;

    -- for US$53,046,674 on account of its receipt of fraudulent
       conveyances from Devon;

    -- for US$53,046,674 as the result of its breach of the
       Agreement of Limited Partnership of Devon.

In a separate pleading, the ACOM Debtors ask the Court for
summary judgment in their favor.

Judge Morris denies the parties' summary judgment motions on
fraudulent conveyance and breach of limited partnership
agreement.  Judge Morris finds that material issues of fact
exist
as to:

    -- whether the transfers made on August 31, 2001; October
       26, 2001; November 23, 2001; December 7, 2001; and
       February 19, 2002, were returns of capital or repayment
       of undocumented intercompany loans;

    -- whether the transfer of the Florida License sale proceeds
       were an improper return of capital, or fraudulent
       conveyances;

    -- whether the funds were ultimately used to pay Devon's
       ongoing operating liabilities;

    -- whether the Devon Trustee received reasonably equivalent
       value for the transfers; and

    -- whether the Devon trustee was left undercapitalize by the
       transfers.

The Court denies the Devon Trustee's request for summary
judgment in its entirety.

The Court grants ACOM's request for summary judgment on
fraudulent conveyance and breach of services agreement.  The
Court finds that as of February 7, 2002, the transfer of
US$22,100,000 was a transfer of funds initially provided by the
ACOM Debtors, and therefore did not diminish the Devon Trustee's
assets and could have not been a fraudulent conveyance or have
caused the Devon trustee any contract damages.

On the deepening insolvency allegation, Judge Morris finds that
the Devon Trustee failed to adequately allege that ACOM
prolonged the Devon Trustee's life in breach of a separate duty
owed to the Devon Trustee or any of its constituency.

Judge Morris also rules that the Devon Trustee does not have
standing to assert an alter ego claim against ACOM.

In a separate order, Judge Morris denies in its entirety the
ACOM Debtors' request for summary judgment with regards to its
counterclaims for breaches of contracts and agreements under the
General Dynamics Agreement where ACOM guaranteed Devon's
obligations:

    -- the General Dynamics Claim against ACOM for
       US$34,908,731, plus consequential damages, interest,
       attorney's fees, costs and expenses in defending the
       Claim;

    -- US$34,908,731 representing Devon's failure to indemnify
       ACOM under its implied obligation under the Partnership
       Agreement, plus consequential damages, interest,
       attorney's fees, costs and expenses in defending the
       General Dynamics Claim; and

    -- US$34,908,731 in violation of Devon's equitable duty to
       indemnify ACOM, plus consequential damages, interest,
       attorneys' fees, costs and expenses incurred in defending
       the General Dynamics Claim.

                     Motions in Limine

The Devon Trustee asks the Court to:

    a. preclude the ACOM Debtors' expert, Glenn Pomerantz, from
       testifying on subjects that the Devon Trustee was
       prevented from exploring at deposition;

    b. preclude Mr. Pomerantz from testifying at trial in
       support of the irrelevant theory that Devon could have
       survived by selling its PCS Licenses;

    c. limit the ACOM Debtors' evidence and argument in
       accordance with the limits they placed on their Rule
       30(b)(6) depositions testimony; and

    d. exclude a certain expert, Susan M. Simmons, from
       testifying at trial to facts and opinions she failed to
       supply during her deposition.

The ACOM Debtors ask the Court to deny the Devon Trustee's
motions in limine because:

    a. the Devon Trustee failed to follow the discovery rules
       governing discovery disputes; and

    b. their witnesses properly responded to deposition
       questions.

Joanne B. Wills, Esq., at Klehr, Harrison, Harvey, Branzburg &
Ellers LLP, in Philadelphia, Pennsylvania, asserts that the
motions in limine are nothing more than a "veiled discovery
motion."  The Devon Trustee has needlessly wasted the Court's
and the ACOM Debtors' time with the motions in limine, Ms. Wills
says.

However, the Devon Trustee asserts that:

    -- it was not required to confer with the ACOM Debtors
       before filing the motions in limine;

    -- it gave the ACOM Debtors a full and fair opportunity to
       provide the required deposition testimony, which they
       have spurned;

    -- it is entitled to an order precluding Mr. Pomerantz from
       testifying:

       a. on subjects that it was prevented from exploring at
          deposition by ACOM Debtors' instructions not to
          answer;

       b. in support of his theory that Devon could have
          survived by selling its PCS Licenses; and

    -- it is entitled to an order limiting the ACOM Debtors'
       evidence and argument in accordance with the limits they
       placed on their Rule 30(b)(6)deposition testimony.

                 Court Denies Motions in Limine

For reasons stated in open Court, Judge Morris denied the Devon
Trustee's motions in limine.

              ACOM Debtors Amend Counterclaims

The ACOM Debtors ask the Court to enter a declaratory judgment
in their favor that to the extent ACOM is required to pay any
monies to General Dynamics pursuant to ACOM's guarantee of
Devon's obligations to General Dynamics, ACOM is entitled to a
dollar-to-dollar indemnification from the Liquidating Trust.

The ACOM Debtors' counterclaims have been further amended to
reflect that the ACOM Debtors assert counterclaims for breach
and unjust enrichment under the Bridge Financing pursuant to the
terms of the Limited Partnership Agreement:

    -- unpaid obligations under the Bridge Financing amounting
       to not less than:

       * US$56,277,605; or

       * US$106,277,605, if the Court determines that the
         Florida License Sale Proceeds were not used to pay
         Devon vendors for work and services provided by those
         vendors to Devon; and

    -- damages of:

       * US$56,277,605; or

       * US$106,277,605, if the Court determines that the
         Florida License Sale Proceeds were not used to pay
         Devon vendors for work and services provided by those
         vendors to Devon.

             Devon Trustee Answers ACOM's Counterclaims

The Devon Mobile Communications Liquidating Trust asserts that:

    -- the ACOM Debtors fail to state a [counter]claim on which
       relief can be granted;

    -- the ACOM Debtors' counterclaims, if any are found to have
       merit, must be offset by amount that they took from Devon
       Mobile Communications, L.P.;

    -- the ACOM Debtors' counterclaims on the counts of:

          * breach of contract to the Devon L.P. Agreement,
          * breach of implied indemnity contract,
          * equitable indemnity, and
          * contribution,

       are barred in whole or in part because they:

          (1) are contingent claims for indemnification or
              contribution and are therefore disallowable
              pursuant to Section 502(e)(1)(B) of the Bankruptcy
              Code; and

          (2) are subrogated by any ACOM Debtors' unpaid amount
              of those claims, pursuant to Section 509(c).

    -- the ACOM Debtors' allegedly "advanced" funds should all
       be characterized as equity instead of debt, contrary to
       what the ACOM Debtors describe it;

    -- the ACOM Debtors' claims are barred, in whole or part, by
       the doctrine of equitable subordination pursuant to
       Section 510(c);

    -- the ACOM Debtors are obligated to the Devon Trustee thus
       entitling them to set-off, recoupment or other equitable
       rights;

    -- the ACOM Debtors' claims are barred, in whole or part, to
       the extent they were asserted after the Court-approved
       bar date; and

    -- the ACOM Debtors' claims are barred, in whole or part,
       because of the ACOM Debtors' inequitable conduct and of
       Devon being the alter ego and instrumentality of the ACOM
       Debtors.

The ACOM Debtors ask the Court to strike the Devon Trustee's
affirmative defense asserting that the ACOM Debtors' claims are
barred because Devon was the alter ego and instrumentality of
the ACOM Debtors.

Joanne B. Wills, Esq. at Klehr, Harrison, Harvey, Branzburg &
Ellers LLP, in Philadelphia, Pennsylvania, argues that the Devon
Trustee's assertion is a predicament on the same theory of a
summary judgment that the Court had already granted to the ACOM
Debtors.  Judge Morris already ruled that the Devon Trustee does
not have standing to bring that claim.

Despite the summary judgment in favor of the ACOM Debtors, the
Devon Trustee indicated that it will press its affirmative
defense at trial, Ms. Wills relates.

Ms. Wills further asserts that the Devon Trustee will prejudice
the ACOM Debtors by forcing it to defend at trial against a
claim on which it has already prevailed at summary judgment.

For reasons stated in open court, the Court denied the ACOM
Debtors' request to strike that affirmative defense asserted by
the Devon Trustee.

                     Joint Pretrial Order

Pursuant to a Joint Pretrial Order, the parties agree that:

    * As of April 3, 2006, the Devon Trustee asserts claims for:

      (a) US$50,760,000 on account of these transfers, as
          amended, which may be avoided as fraudulent
          conveyances:

          Payment Date                 Payment Amount
          ------------                 --------------
            08/03/01                   US$3,000,000
            08/10/01                     33,000,000
            08/30/01                        975,000
            10/04/01                     13,500,000
            10/26/01                         40,000
            11/23/01                         20,000
            12/07/01                        130,000
            02/20/02                         95,000

      (b) the same US$50,760,000 as damages arising from the
          ACOM Debtors' material breaches of the Limited
          Partnership Agreement.

    * As of April 3, 2006, the ACOM Debtors assert
      counterclaims:

      (a) for breach and unjust enrichment under the Services
          Agreement dated December 29, 2000:

          -- service fees of not less than US$2,000,000;

          -- consolidated purchase fees of not less than
             US$5,315,351; and

      (b) for breach and unjust enrichment under the Bridge
          Financing pursuant to the terms of the Limited
          Partnership Agreement:

          -- unpaid obligations under the Bridge Financing
             amounting to not less than US$56,277,605; and

          -- US$50,011,488 in damages.

      (c) for breach and unjust enrichment under a brokerage fee
          agreement in connection with the purchase and sale of
          certain Devon FCC Licenses, brokerage fees for
          US$1,440,000 relating to the sale of the Fort Pierce
          license; and

      (d) for obligations relating to a contract for the
          provision of telephone services entered into with ACC
          Telecommunication of VA, in which Devon failed to pay
          the invoiced charges:

          -- US$1,701,818 in damages plus consequential damages,
             interest, and costs for the breach; and

          -- US$1,701,818 for damages representing Devon's
             unjust enrichment.

    * In connection with the indemnity provisions of the Devon
      L.P. Agreement, the General Dynamics Agreement, and the
      General Dynamics Guaranty; Devon's equitable duty of
      indemnity; and Devon's contribution obligation under the
      General Dynamics Agreement and the General Dynamics
      Guaranty, the ACOM Debtors ask the Court:

      (a) for a declaratory judgment of their right to
          indemnification with the indemnification amount to be
          determined through the adjudication of the General
          Dynamics claim in the ACOM Debtors' claims resolution
          process; and

      (b) to award them attorneys' fees, costs and expenses
          incurred in defending the General Dynamics ACC Claim.

Based in Coudersport, Pa., Adelphia Communications Corporation
-- http://www.adelphia.com/-- is the fifth-largest cable
television company in the country.  Adelphia serves customers in
30 states and Puerto Rico, and offers analog and digital video
services, high-speed Internet access and other advanced services
over its broadband networks.  The Company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002.  Those cases are jointly
administered under case number 02-41729.  Willkie Farr &
Gallagher represents the ACOM Debtors.  PricewaterhouseCoopers
serves as the Debtors' financial advisor.  Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.
(Adelphia Bankruptcy News, Issue No. 134; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


ADELPHIA COMMS: Wants Aid in Asset Sale to Time Warner & Comcast
----------------------------------------------------------------
Adelphia Communications Corporation sought, on May 26, 2006,
authority from the U.S. Bankruptcy Court for the Southern
District of New York to proceed with its asset sale to a
subsidiary of Time Warner Cable and a portion of its asset sale
to Comcast Corporation without first confirming a Chapter 11
Plan of Reorganization.  If the motion is granted, it will
increase the likelihood of the transaction being completed in a
timely manner.

Adelphia currently anticipates that a hearing to approve certain
amended bid protections will be held on or about June 8,
followed by a hearing to approve the sale, as well as a Plan of
Reorganization related to Adelphia's joint ventures with
Comcast, on or about June 27.

Time Warner Cable and Comcast are working closely with Adelphia
to find the swiftest path to accomplish the sale.  Adelphia's
motion was prompted by an ongoing dispute between certain
creditor groups over how to distribute the sale proceeds, which
has delayed resolution of Adelphia's bankruptcy, a prerequisite
for closing the asset sale under the current terms of the deal.
Court approval would authorize limited amendments to the sale
agreements that would allow the asset sale to Time Warner Cable
and certain of the assets to be sold to Comcast to take place
without first confirming a Plan of Reorganization for such
assets and without the corresponding creditors' vote.

Adelphia's majority ownership interest in two joint ventures
with Comcast Corporation, Century-TCI and Parnassos, would still
be sold to Comcast concurrently with the consummation of a Plan
of Reorganization for those joint ventures.  Other assets being
purchased by Comcast would, under the proposal, be purchased
without prior confirmation of a Plan of Reorganization and
without the associated creditors' vote.  The closing of the
Comcast and Time Warner Cable acquisitions are conditioned on
one another and are expected to occur simultaneously.

"Despite our best efforts, the creditors' disputes remain
unresolved," William Schleyer, chairman and CEO of Adelphia,
said. "Removing the requirement for a confirmed Plan of
Reorganization for Adelphia greatly increases the odds of
Adelphia's sale closing in a timely manner.  We believe these
modifications accommodate the desires of creditors to lock in
maximum value for the estate while enabling them to continue
settlement discussions and litigation without the pressure of a
looming deadline.

"It has the added benefit of providing greater certainty to our
employees, customers and the local communities we serve who are
anxious to make the transition from a much-improved Adelphia to
even stronger companies in Comcast and Time Warner Cable."

If the modified approach were used, after making distributions
to creditors of the joint ventures pursuant to a Plan, Adelphia
would be comprised of the balance of cash (approximately $12.7
billion, less cash payments to joint venture creditors) and Time
Warner Cable stock (approximately 16% of the common stock of
Time Warner Cable) used to pay for Adelphia's assets.  The
entities other than the joint ventures would remain in
bankruptcy.  The remaining creditors could continue their
negotiations and litigation over how to distribute the value of
the bankruptcy estate.

For Adelphia employees, customers and the communities it serves,
the modifications would have no effect on the well-planned
transition related to operations and job transfers.  There will
be no change in the ultimate ownership of the former Adelphia
systems; at the conclusion of the transactions, the ownership of
such systems will be the same as contemplated under the previous
plan and the separate agreement between Time Warner Cable and
Comcast.

The modifications Adelphia expects to request include a
requirement that Adelphia sell a portion of Time Warner Cable
shares to be received by Adelphia in an underwritten public
offering and a provision that an amount equal to the already
approved breakup fee automatically would be paid or credited
against the purchase price if the sale fails to close by Aug.
31, 2006, under certain circumstances.  There is no assurance
that an asset sale or Plan of Reorganization can be consummated
on a timely basis, if at all.  An asset sale under Section 363
of the Bankruptcy Code may involve additional transaction-
related costs, which may be substantial.

A full-text copy of the Asset Sale Motion filed with the Court
is available for free at: http://ResearchArchives.com/t/s?9fe

                        About Adelphia

Based in Coudersport, Pa., Adelphia Communications Corporation
-- http://www.adelphia.com/-- is the fifth-largest cable
television company in the country.  Adelphia serves customers in
30 states and Puerto Rico, and offers analog and digital video
services, high-speed Internet access and other advanced services
over its broadband networks.  The Company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002.  Those cases are jointly
administered under case number 02-41729.  Willkie Farr &
Gallagher represents the ACOM Debtors.  PricewaterhouseCoopers
serves as the Debtors' financial advisor.  Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.


FIRSTBANK PUERTO: Moody's Continues Review for Likely Downgrade
---------------------------------------------------------------
Moody's Investors Service said that it is continuing its review
of FirstBank Puerto Rico for possible downgrade.  Moody's had
most recently downgraded the bank (deposits to Ba1 from Baa3) on
October 28, 2005 and kept the bank's ratings on review for
possible downgrade.  The bank is currently rated D+ for
financial strength and Ba1 for deposits. According to Moody's,
the main credit issue is one of borrower risk concentrations.

Single-name exposures resulted from a change in accounting for
mortgage loan portfolios that FirstBank purchased from Doral
Financial Corporation and R&G Financial Corp.  These loans were
originally accounted for as mortgage loans on the financial
reports of FirstBank. The transactions, however, did not qualify
as "true sales."  As a consequence, the loans had to be
reclassified as commercial loans that substantially exceeded
regulatory limits to single borrowers.

In its prior press release of March 20, 2006, the rating agency
stated its intention of concluding its review within a 60-day
timeframe. Moody's believes that management is actively engaged
in negotiations to lower single-name exposures.  Therefore,
Moody's has extended its review period, but expects to conclude
a rating decision within the next several weeks.  The rating
agency added that should management fail to achieve a meaningful
reduction of large lending exposures, a downgrade is likely.
Moreover, deterioration elsewhere in FirstBank's credit profile
could prompt a negative rating action.  Conversely, success in
lowering risk concentrations, absent any other negative
developments, could result in a rating confirmation.

FirstBank Puerto Rico, headquartered in San Juan, Puerto Rico,
reported total assets of roughly US$19 billion at year-end 2005.
It is a subsidiary of First Bancorp.


GLOBAL HOME: Files Schedules of Assets and Liabilities
------------------------------------------------------
Global Home Products LCC delivered to the U.S. Bankruptcy Court
for the District of Delaware its schedules of assets and
liabilities, disclosing:

  Name of Schedule          Assets         Liabilities
  ----------------          ------         -----------
  A. Real Property
  B. Personal Property
  C. Property Claimed as Exempt
  D. Creditors Holding
     Secured Claims                       US$311,656,546
  E. Creditors Holding
     Unsecured Priority
     Claims                                        5,000
  F. Creditors Holding
     Unsecured Nonpriority
     Claims
                                          --------------
     Total                                US$311,661,546

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


MAXXAM: Palco Provides Asset Information to Potential Lenders
-------------------------------------------------------------
MAXXAM Inc.'s indirect wholly owned subsidiary, The Pacific
Lumber Company, is pursuing efforts to increase its liquidity.
As part of its initiative to pursue discussions with potential
lenders, Palco submitted to the Securities and Exchange
Commission a summary of certain information being made available
to potential lenders by Palco in connection with a proposed new
$75 million senior secured term loan facility and a proposed new
$60 million senior secured revolving credit facility.  The new
debt facilities are intended to refinance and replace Palco's
existing credit facilities, as well as to provide additional
funds for capital expenditures and working capital.

A table estimating ranges of market values and replacement costs
of certain assets of Palco and its subsidiaries, exclusive of
Palco's interest in MAXXAM is available for free at:

                http://researcharchives.com/t/s?9ea

Palco advises potential lenders that it has underway efforts to
monetize during the next three to five years certain of the real
estate assets included in the table, whose aggregate values or
replacement costs are estimated to be approximately $75 million.

                      About MAXXAM Inc.

MAXXAM Inc. (AMEX: MXM) is engaged in a wide range of businesses
from aluminum and timber products to real estate and horse
racing.  The Company's timber subsidiary, Pacific Lumber, owns
about 205,000 acres of old-growth redwood and Douglas fir
timberlands in Humboldt County, California.  MAXXAM's real
estate interests include commercial and residential properties
in Arizona, California, and Texas, and Puerto Rico.  The company
also owns the Sam Houston Race Park, a horseracing track near
Houston.

At Dec. 31, 2005, the company's stockholders' deficit widened to
US$661,300,000 from a US$657,100,000 deficit at Dec. 31, 2004.

                        *    *    *

As reported in the Troubled Company Reporter on April 5, 2006,
Deloitte & Touche LLP in Houston, Texas, raised substantial
doubt about MAXXAM Inc. and its subsidiaries' ability to
continue as a going concern.  Deloitte pointed to the
difficulties of:

   -- MAXXAM Inc. and its subsidiaries in realizing their
      timber-related assets and discharge their timber-related
      liabilities in the normal course of business;

   -- The Pacific Lumber Company, an indirect subsidiary, in
      meeting its loan agreement covenants; and

   -- Scotia Pacific Company LLC, an indirect subsidiary, in
      paying the interest on the timber notes.


OCA INC: Court OKs William Steffes as Committee's Local Counsel
---------------------------------------------------------------
The Official Committee of Unsecured Creditors of OCA, Inc., and
its debtor-affiliates obtained authority from the U.S.
Bankruptcy Court for the Eastern District of Louisiana for
authority to retain William E. Steffes, Esq., and the law firm
of Steffes, Vingiello & McKenzie, LLC, as its local counsel,
nunc pro tunc to March 30, 2006.

Steffes Vingiello is expected to assist the Committee in
performing its duties in the Debtors' Chapter 11 cases and will
take any action necessary or required to represent the
Committee's interests.  The firm will work with Jenner & Block,
LLP, of Chicago, Illinois, which serves as the Committee's
national counsel.

The Committee did not disclose how much Steffes Vingiello
charges for its services.

Mr. Steffes assures the Bankruptcy Court that his firm does not
hold any interest adverse to the Debtors' estates.

               About Steffes, Vingiello & McKenzie

Steffes, Vingiello & McKenzie, LLC -- http://www.steffeslaw.com/
-- is an eight-attorney law firm with offices in Baton Rouge and
New Orleans, Louisiana.   The firm concentrates in complex
bankruptcies, workouts, reorganizations, insolvency matters,
banking and commercial litigation.  Mr. Steffes can be reached
at:

     William E. Steffes, Esq.
     Steffes, Vingiello & McKenzie, LLC
     13702 Coursey Boulevard, Building 3
     Baton Rouge, LA 70817

                        About OCA

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

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


SANTANDER BANCORP: Fitch Affirms C Individual Rating
----------------------------------------------------
Fitch affirmed the Individual ratings of Santander Bancorp and
Banco Santander Puerto Rico at 'C'.  This follows the rating
actions announced May 12, 2006, when Fitch raised the long-term
Issuer Default Ratings and assigned a Stable Outlook based on
the upgrade of the parent Banco Santander Central Hispano.

The Individual ratings reflect the profile of SBP independent of
support from its parent.  SBP's rating is characterized by an
adequate earnings and funding profile and stable asset quality,
constrained by low capital ratios and high parent company
leverage.  SBP is the third largest bank in Puerto Rico but has
the second largest branch network. Earnings performance and
funding are adequate but have come under pressure due to the
flat yield curve and intense competition. Profitability has been
hampered by

   -- lower margins,
   -- the absence of securities gains, and
   -- higher taxes.

The recent acquisition of Island Finance should bring an
improvement in spread income, a trend that began in 1Q06.

Asset quality has stabilized as evidenced by trends in net
charge-offs and nonperforming loans.  Annualized NCOs fell to
0.29% of average loans during the 1Q06 and NPLs totaled 1.10% of
total loans.  At the same time Fitch remains cautious on credit
dynamics going forward.  The newly acquired IF portfolio and the
soft local economy will likely put some stress on quality,
particularly on the consumer portfolio.

As expected, parent company leverage increased while capital
ratios declined, both significantly.  Debt service commitments
at the parent are substantial.  Importantly, the majority of
commitments are serviced by subsidiaries and the parent
maintains ample cash to enhance the liquidity cushion.  Fitch
expects SBP will maintain this high degree of liquidity at the
parent.

SBP is well-capitalized as designated by regulatory guidelines,
but ratios are considered low.  Tangible common equity is 4.13%
and total risk based capital ratio is 10.62%.  The recent
unwinding of the mortgage transactions with Doral Financial will
improve ratios.  Fitch also expects that core equity will
improve with the gradual build up from earnings retention.

Given SBP's strong support rating of '1', the Long-Term and
Short-Term ratings were raised on May 12, when Fitch upgraded
the parent, Banco Santander Central Hispano to 'AA'. A Stable
Outlook was assigned at this time as well.

These ratings are affirmed:

   Santander Bancorp

      -- Long-Term IDR 'AA-';
      -- Short-Term Issuer rating 'F1+';
      -- Subordinated Debt 'A+';
      -- Individual 'C'; and
      -- Support '1'.

The Outlook is Stable.

   Banco Santander Puerto Rico

      -- Long-Term Deposits 'AA';
      -- Long-Term IDR 'AA-';
      -- Short-Term Issuer 'F1+';
      -- Short-Term Deposits 'F1+';
      -- Senior Long-Term Debt 'AA-';
      -- Individual 'C'; and
      -- Support '1'.

The Outlook is Stable.




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


DIRECTV: Gets Backing from Copyright Music on Piracy Issues
-----------------------------------------------------------
The Trinidad and Tobago Express reports that the Copyright Music
Organisation -- COTT -- supports Digicel Ltd.'s claim that
piracy in the country is becoming blatant and is unchecked by
the Government and the Telecommunications Authority -- TATT.

As previously reported, Digicel has called on to the telecoms
authority to take action in order to stop piracy in the
industry.  The company noted 12 channels being illegally
broadcasted.

Allison Demas, COTT chief executive officer, told the Express,
that TATT's silence on the matter "...has been deafening."

Ms. Demas is quoted by the Express as saying:

"What is of equal concern is the quiet endorsement of this
action by the Government and its relevant agencies, who have not
uttered a sentence against the practice of selling illegally
acquired goods, a lucrative operation raking in mega millions
monthly.

"In addition, given the method by which the cable company gets
premium channels for rebroadcast, "paying nothing for something
you turn around and sell to subscribers, their rates cannot
reflect the real cost of such a service so, in reality, they are
also setting up DirecTV to be the villain when the chips fall,
as they must."

                       About DIRECTV

The DIRECTV Group, Inc., formerly Hughes Electronics
Corporation, headquartered in El Segundo, California, is a
world-leading provider of multi-channel television
entertainment, and broadband satellite networks and services.
The DIRECTV Group, Inc. with sales in 2004 of approximately
US$11.4 billion is 34% owned by Fox Entertainment Group, Inc.,
which is owned by News Corporation.  DIRECTV is currently
available in Latin American countries: Argentina, Brazil, Chile,
Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras,
Mexico, Nicaragua, Panama, Puerto Rico, Trinidad & Tobago,
Uruguay, Venezuela and several Caribbean island nations.

                        *    *    *

Standard & Poor's Rating Services placed a BB credit rating on
DIRECTV Group'S long-term foreign and local currency ratings
effective Aug. 9, 2004.  S&P said the outlook is stable.




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


* URUGUAY: Foreign Ministry Wary of Venezuela's Joining Mercosur
----------------------------------------------------------------
Carlos Amorim -- the director for Economic Affairs in the
Uruguayan Foreign Ministry -- is wary about Venezuela's failure
to properly join the Mercosur trade block, El Universal reports.

"We cannot run the risk of legal gaps, or uncompleted
architecture.  Otherwise, the system will not work," Mr. Amorim
was quoted by El Universal as saying.

El Universal recalls that Argentina, Brazil, Paraguay, Uruguay
and Venezuela conducted talks on May 24 regarding the Mercosur
Adherence Protocol and set a four-year term for Venezuela's full
membership.

                        *    *    *

As reported in the Troubled Company Reporter on May 26, 2006,
Fitch Ratings revised the Outlooks on the Oriental Republic of
Uruguay's Sovereign ratings to Positive from Stable.  The long-
term foreign currency Issuer Default Rating is affirmed at 'B+',
and the long-term local currency IDR is affirmed at 'BB-'.  The
Short-term IDR is affirmed at 'B' and the Country Ceiling is
affirmed at 'BB-'.

                        *    *    *

As reported in the Troubled Company Reporter on May 26, 2006,
Moody's Investors Service upgrades this rating of Uruguay under
the revised foreign currency ceilings:

   -- Long-term foreign currency rating: B1 from B3 with
      stable outlook.

This rating is assigned:

   -- Short-term foreign currency rating: Not Prime.




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


PETROLEOS DE VENEZULA: Says Orinoco Debt Refinancing Unaffected
---------------------------------------------------------------
State-run Petroleos de Venezuela SA could refinance billions of
dollars in debt issued by heavy oil projects in the Orinoco
river basin despite recent ratings cuts, the company said in a
statement.

Fitch Ratings downgraded bonds and bank loans issued by the four
Orinoco partnerships to B+ from BB on May 11, saying tax
increases would reduce the amount of cash flow available to pay
off the debt.  Moody's Investors Service put the four projects
under review for a possible cut on April 26.

PdVSA Director Eulogio Del Pino, however, said the ratings
downgrades haven't discouraged investment banks from offering to
refinance the existing Orinoco debt under better payment
conditions.

The four projects, in which international oil majors
ConocoPhillips, Exxon Mobil Corp., Statoil ASA, Chevron Corp.,
BP PlC and Total SA own equity stakes, have a total of US$1.6
billion in bonds and US$2.3 billion in loans, according to Fitch
Ratings.

PdVSA and its foreign partners have invested over US$17 billion
in the projects, which produce roughly 600,000 barrels a day of
synthetic crude oil, over a fifth of Venezuela's total
production.

Mr. Del Pino criticized the ratings agencies for looking to
increase the interest rates PdVSA pays on its debt.

"The change in the risk rating for the existing Orinoco belt
projects, announced by some ratings companies, is political
pressure by the international financial system to capitalize on
that risk through favorable interest (rates)," PdVSA quoted Del
Pino as saying in a statement published on its Web site.

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

                        *    *    *

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


* VENEZUELA: Buying US$100 Million of Bolivian Debt
---------------------------------------------------
As part of the numerous cooperation treaties signed last week,
Venezuela will buy US$100 million of Bolivian debt to help
President Evo Morales' government while it seizes oil assets of
foreign firms and rewrites the constitution, Bloomberg News
reports.  The new bonds will pay lower interest rates and will
have longer maturities.

The Venezuelan bond purchases are expected to finance about 37%
of the Bolivian government's estimated US$270 million budget
shortfall for 2006, Bloomberg reports, citing the Bolivian
finance ministry Web site.  The deficit is expected to be 3.2%
of the country's gross domestic product.

"I think Chavez is trying to do what he did for Argentina and
Ecuador, help bolster a friendly government's finances as the
its leaders try to build political backing," Armando Alvarez,
president of the Bolivian Stock Exchange, told Bloomberg in an
interview in La Paz. "If they buy that much, it will be enough
to finance about half the government's annual budget shortfall."

Bloomberg says that Venezuela bought US$25 million of Ecuadorian
bonds on Dec. 7 and has bought about US$1.7 billion of Argentine
government bonds in dollars this year.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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

                        *    *    *

Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.


* VENEZUELA: Concludes Trade Fair with Cuba & Bolivia
-----------------------------------------------------
Venezuela has ended its business fair with Cuba and Bolivia, El
Universal reports.

El Universal recalls that the fair was held in La Paz, Bolivia,
for two days.  The trade is within the framework of the
Bolivarian Alternative for the Americas aka ALBA and the
Peoples' Trade Treaty aka TCP.

The fair resulted in business plans estimated at US$12.1
billion, Bolivian authorities told El Universal.  A second event
is expected soon.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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

                        *    *    *

Moody's assigned these ratings on Cuba:

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

                        *    *    *

Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.


* VENEZUELA: President to Arrive in Ecuador to Ink Oil Pact
-----------------------------------------------------------
Venezuela's President Hugo Chavez is scheduled to arrive in
Quito today, May 30, to sign an oil deal with Ecuador's
President Alfredo Palacio, Prensa Latina reports.

The accord will allow Ecuador to refine its crude oil in
Venezuela and will receive byproducts at lower prices than those
in the international market, Prensa Latina states.

According to Prensa Latina, President Chavez will be accompanied
by Rafael Ramirez -- the energy minister of Venezuela -- as well
as by other government officials.

                        *    *    *

Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.

                        *    *    *

Fitch Ratings assigned these ratings on Ecuador:

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



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

Troubled Company Reporter - Latin America is a daily newsletter
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Mae Hechanova, and Christian Toledo, Editors.

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