TCRLA_Public/060602.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

          Fridy, June 2, 2006, Vol. 7, Issue 109

                            Headlines

A R G E N T I N A

ASESORES INTEGRALES: Claims Verification Deadline Is July 21
BANCO BANEX: Moody's Ups Financial Strength Rating to E+ from E
BANCO COMAFI: Moody's Ups Financial Strength Rating to E+ from E
BANCO CREDICOOP: Moody's Ups Financial Strength Rating to D-
BANCO DE LA CIUDAD: Moody's Ups Financial Strength Rating to E+

BANCO DE LA NACION: Moody's Affirms E Financial Strength Rating
BANCO DE LA PROVINCIA: Moody's Alters Rating Outlook to Positive
BANCO DE VALORES: Moody's Raises Financial Strength Rating to D-
BANCO GALICIA: Moody's Revises Rating Outlook to Positive
BANCO ITAU: Moody's Ups Financial Strength Rating to E+ from E

BANCO MACRO: Moody's Ups Financial Strength Rating to E+ from E
BANCO PATAGONIA: Moody's Raises Financial Strength Rating to E+
BANCO RIO: Moody's Ups Financial Strength Rating to D- from E
BANCO SUPERVIELLE: Moody's Ups Financial Strength Rating to E+
BBVA BANCO: Moody's Ups Financial Strength Rating to D- from E

BELLANTE HNOS: Creditors Have Until July 4 to Present Claims
CAMUZZI GAS: Posts ARS5.68 Mil. Net Loss in First Quarter 2006
CLINICA ESPARTA: Moves Claims Verification Deadline to July 10
DF RECORD: Verification of Proofs of Claim Ends on July 21
HIDRAULICA S.V.: Trustee Stops Validating Claims After June 23

HIRISONA S.A.: Creditors Must File Proofs of Claim by July 20
MBA BANCO: Moody's Raises Financial Strength Rating to E+ from E
METALURGICA GAONA: Individual Reports Due in Court on July 12
NUEVO BANCO: Moody's Ups Financial Strength Rating to E+ from E
PINTAL S.R.L.: Sets July 20 Deadline for Proofs of Claim Filing

SERVICIO INTEGRAL: Individual Reports Due in Court on July 13
TOP EXPRESS: Creditors Must Submit Proofs of Claim by June 14

B E R M U D A

BAY POINT: Moody's Puts (P)Ba2 Rating on Seniro Sec. Term Loan
FOSTER WHEELER: Saras Awards Contract for New Refinery Units
INTELSAT LTD: Subsidiary Proposes US$1.9-Billion Notes Offering

B O L I V I A

COMIBOL: Former Workers Occupy Lots Near Industrial Plant

B R A Z I L

AES CORP: Inks Prelim Pact with BNDES to Repay Brasiliana's Debt
BRASKEM SA: Shareholders Approved Merger with Polialden
CEDRO INTERNATIONAL: Proofs of Claim Filing Ends on June 16
GLOBO COMUNICACAO: Net Revenue Reaches BRL1.3B in First Quarter
MOGNO CORP: Liquidator Stops Accepting Claims After June 16

SABESP: Appeals Filing Halts Employees' Planned Strike

* BRAZIL: Central Bank Lowers Benchmark Lending Rate to 15.25%
* BRAZIL: Central Bank Holds First Currency Swap Auction
* BRAZIL: Launches Negotiations on Trade Alliance with Guatemala

C A Y M A N   I S L A N D S

CONISTON LIMITED: Creditors Must File Proofs of Claim by June 20
CONROE LIMITED: Creditors Have Until June 20 to Present Claims
MEDTRONIC EUROPE: Sets June 16 as Last Day for Claims Filing
MEDTRONIC JAPAN: Sets June 16 as Proofs of Claim Filing Deadline
MEDTRONIC U.K.: Proofs of Claim Filing Deadline Is on June 16

OKANAGAN LIMITED: Proofs of Claim Filing Will End on June 20
SIMCOE LIMITED: Filing of Proofs of Claim Will End on June 20
WHITE STAR: Sets July 27 as Last Day for Filing Proofs of Claim

C H I L E

AES CORP: Forms Joint Venture With AgCert to Reduce Gas Emission
COEUR D'ALENE: Earns US$14.3 Mil. in Three Months Ended Mar. 31

C O S T A   R I C A

* COSTA RICA: Agricultural Exports Up 15.2% in First Quarter

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE LTD: Board Endorses Inco Offer Over Xstrata's
FALCONBRIDGE LTD: Inco Venture Identifies US$550M in Synergies

E L   S A L V A D O R

* EL SALVADOR: Okays Revision of Free Trade Accord with Panama
* EL SALVADOR: Trade Talks with Canada to Conclude by Yearend

G U A T E M A L A

* GUATEMALA: Launches Negotiations on Trade Alliance with Brazil
* GUATEMALA: Trade Talks with Canada Set to Conclude by Yearend

H A I T I

* HAITI: Parliament Approves Program on Economic Stabilization

H O N D U R A S

* HONDURAS: Trade Talks with Canada Set to Conclude by Yearend

J A M A I C A

MIRANT CORP: Brings NRG Takeover Bid Dispute to Delaware Court

N I C A R A G U A

* NICARAGUA: Trade Talks with Canada Set to Conclude by Yearend

M E X I C O

BALLY TOTAL: Will Not Submit Stockholder Rights Plan for Voting
BANCO INBURSA: Fitch Affirms C Individual Rating
EL POLLO: Holders Grant Requisite Consents to Amend Indentures
GENERAL MOTORS: Troy Clarke Named President of GM North America

P A N A M A

GRUPO FINANCEIRO: Net Profits Drop 7.2% in First Quarter 2006

* PANAMA: Okays Revision of Free Trade Accord with El Salvador

P U E R T O   R I C O

ADELPHIA: Court Disallows Lenders' Multi-Billion Interest Claim
ADELPHIA COMMS: Selling Real Property & Equipment for US$1.2MM
DORAL FINANCIAL: Completes Sale of US$2.5 Billion Mortgage Loans
FIRSTBANK PUERTO RICO: Receives US$2.4 Bil. Payment from Doral

T R I N I D A D   &   T O B A G O

BWIA WEST: Gets Carped on Jet Pack Delivery Service

U R U G U A Y

CITRICOLA SALTENA: Moody's Rates US$1.3-Mil. Secured Bonds at B3

* URUGUAY: State Power Firm Launches Energy Savings Plan

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Will Ink Oil Pact with Iran's Petropars

* VENEZUELA: Oil Minister Foresees No Change in Oil Quota

* IDB Enhances Credit Guarantees for LatAm and Caribbean Issuers


                         - - - - -


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


ASESORES INTEGRALES: Claims Verification Deadline Is July 21
------------------------------------------------------------
Humberto Perez Vanmoregan, the court-appointed trustee for the
bankruptcy case of Asesores Integrales de Salud S.A., has
started verifying creditors' claims.  Verification phase will
end on July 21, 2006.

La Nacion relates that Buenos Aires' Court No. 8 declared the
company bankrupt at the request of its creditor, Imalab S.A.

Clerk No. 16 assists the court in this case.

The debtor can be reached at:

         Asesores Integrales de Salud S.A.
         Avenida Corrientes 1680
         Buenos Aires, Argentina

The trustee can be reached at:

         Humberto Perez Vanmoregan
         Uruguay 594
         Buenos Aires, Argentina


BANCO BANEX: Moody's Ups Financial Strength Rating to E+ from E
---------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
rating of Banco Banex S.A. to E+ from E.  The outlook on this
rating is stable.

Moody's action reflects:

   -- the bank's improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the bank exerted to improve its core earnings and asset quality,
as well as to reduce its exposures to the public sector --
achievements that vary within the banking system, and which have
contributed to the bank's improving solvency.

The rating action reflects this bank's relatively stronger
balance sheets and solvency following the crisis, as well as its
low public sector exposures.  However they also reflect its
developing franchises, more limited market shares and revenue
diversification relative to their larger peers.


BANCO COMAFI: Moody's Ups Financial Strength Rating to E+ from E
----------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
rating of Banco Comafi S.A. from E to E+.  The outlook on this
rating is stable.

Moody's action reflects:

   -- the bank's improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the bank exerted to improve its core earnings and asset quality,
as well as to reduce its exposures to the public sector --
achievements that vary within the banking system, and which have
contributed to the bank's improving solvency.

The rating action reflects this bank's relatively stronger
balance sheets and solvency following the crisis, as well as its
low public sector exposures.  However they also reflect its
developing franchises, more limited market shares and revenue
diversification relative to their larger peers.


BANCO CREDICOOP: Moody's Ups Financial Strength Rating to D-
------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
rating of Banco Credicoop Cooperativo Limitado to D- from E.
The outlook on this rating is stable.

Moody's action reflects:

   -- the bank's improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the bank exerted to improve its core earnings and asset quality,
as well as to reduce its exposures to the public sector --
achievements that vary within the banking system, and which have
contributed to the bank's improving solvency.

The rating action reflects this bank's relatively stronger
balance sheets and solvency following the crisis, as well as its
low public sector exposures.  However they also reflect its
developing franchises, more limited market shares and revenue
diversification relative to their larger peers.


BANCO DE LA CIUDAD: Moody's Ups Financial Strength Rating to E+
---------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
rating of Banco de la Ciudad de Buenos Aires E+ from E.  The
outlook on this rating is stable.

Moody's action reflects:

   -- the bank's improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the bank exerted to improve its core earnings and asset quality,
as well as to reduce its exposures to the public sector --
achievements that vary within the banking system, and which have
contributed to the bank's improving solvency.

Moody's noted that the bank improved its franchises and
financials since the crisis; nevertheless, its franchise value
still lags that of the D- rated banks because of its more
limited market shares, product diversification and earnings
generating ability.  The rating agency also pointed out that the
positive outlook reflects the expectation of further
improvements in the bank's core earnings and balance sheet
quality as it focus more fully on business development.


BANCO DE LA NACION: Moody's Affirms E Financial Strength Rating
---------------------------------------------------------------
Moody's affirmed Banco de la Nacion Argentina's bank financial
strength rating at E, due to its still extremely weak financial
fundamentals and high public sector exposure.  The outlook on
the rating remains stable.

In taking this action, Moody's also considered the efforts that
the bank exerted to improve its core earnings and asset quality,
as well as to reduce its exposures to the public sector --
achievements that vary within the banking system, and which have
contributed to the bank's improving solvency.


BANCO DE LA PROVINCIA: Moody's Alters Rating Outlook to Positive
----------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
ratings of several Argentinean banks to reflect:

   -- the banks' improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the various banks exerted to improve their core earnings and
asset quality, as well as to reduce their exposures to the
public sector -- achievements that vary within the banking
system, and which have contributed to the banks' improving
solvency.

Moody's changed the outlooks on the E bank financial strength
ratings of Banco de Galicia S.A. and Banco de la Provincia de
Buenos Aires to positive from stable.  The rating agency also
takes into consideration the effort of these banks to improve
their balance sheet quality and earnings.  The low ratings are
however, an indication of the challenges that these banks still
face to reduce their large exposures to the public sector, as
well as the disadvantages of their poor private-sector asset
quality, weak core earnings, and solvency.


BANCO DE VALORES: Moody's Raises Financial Strength Rating to D-
----------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
ratings  of several Argentinean banks to reflect:

   -- the banks' improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the various banks exerted to improve their core earnings and
asset quality, as well as to reduce their exposures to the
public sector -- achievements that vary within the banking
system, and which have contributed to the banks' improving
solvency.

Moody's upgraded Banco Rio de la Plata S.A., BBVA Banco Frances
S.A., Banco Credicoop Cooperativo Limitado and Banco de Valores
S.A to D- from E. Moody's said that the ratings upgrades were
based on

   -- these banks' strong franchises in their respective
      markets,
   -- their improving core earnings potential, and
   -- the successful restructuring of their balance sheets.

The outlooks on these ratings are stable.

Having largely dealt with the legacies of Argentina's deep
financial crisis, these banks now also report improving asset
quality and capitalization ratios, and their managements seem
prone to leverage their earnings generation ability in an
improving economic environment.

Moody's upgraded this rating of Banco de Valores S.A.:

   -- Bank Financial Strength Rating: to D- from E with stable
      outlook.


BANCO GALICIA: Moody's Revises Rating Outlook to Positive
---------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
ratings of several Argentinean banks to reflect:

   -- the banks' improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the various banks exerted to improve their core earnings and
asset quality, as well as to reduce their exposures to the
public sector -- achievements that vary within the banking
system, and which have contributed to the banks' improving
solvency.

Moody's changed the outlooks on the E bank financial strength
ratings of Banco de Galicia S.A. and Banco de la Provincia de
Buenos Aires to positive from stable.  The rating agency also
takes into consideration the effort of these banks to improve
their balance sheet quality and earnings.  The low ratings are
however, an indication of the challenges that these banks still
face to reduce their large exposures to the public sector, as
well as the disadvantages of their poor private-sector asset
quality, weak core earnings, and solvency.


BANCO ITAU: Moody's Ups Financial Strength Rating to E+ from E
--------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
ratings of several Argentinean banks to reflect:

   -- the banks' improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the various banks exerted to improve their core earnings and
asset quality, as well as to reduce their exposures to the
public sector -- achievements that vary within the banking
system, and which have contributed to the banks' improving
solvency.

Moody's upgraded the bank financial strength ratings of Banco
Patagonia S.A., Banco Macro Bansud S.A., Nuevo Banco Suquia
S.A., Banco de la Ciudad de Buenos Aires, and Banco Itau Buen
Ayre S.A. to E+ from E.

The outlooks on these ratings are positive.

Moody's noted that these banks improved their franchises and
financials since the crisis; nevertheless, their franchise value
still lags that of the D- rated banks because of their more
limited market shares, product diversification and earnings
generating ability. The rating agency also pointed out that the
positive outlooks reflect the expectation of further
improvements in these banks' core earnings and balance sheet
quality as they focus more fully on business development.

Moody's upgraded this rating of Banco Itau Buen Ayre S.A.:

   -- Bank Financial Strength Rating: to E+ from E with positive
      outlook.


BANCO MACRO: Moody's Ups Financial Strength Rating to E+ from E
---------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
ratings of several Argentinean banks to reflect:

   -- the banks' improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the various banks exerted to improve their core earnings and
asset quality, as well as to reduce their exposures to the
public sector -- achievements that vary within the banking
system, and which have contributed to the banks' improving
solvency.

Moody's upgraded the bank financial strength ratings of Banco
Patagonia S.A., Banco Macro Bansud S.A., Nuevo Banco Suquia
S.A., Banco de la Ciudad de Buenos Aires, and Banco Itau Buen
Ayre S.A. to E+ from E.

The outlooks on these ratings are positive.

Moody's noted that these banks improved their franchises and
financials since the crisis; nevertheless, their franchise value
still lags that of the D- rated banks because of their more
limited market shares, product diversification and earnings
generating ability. The rating agency also pointed out that the
positive outlooks reflect the expectation of further
improvements in these banks' core earnings and balance sheet
quality as they focus more fully on business development.

Moody's upgraded this rating of Banco Macro Bansud S.A.:

   -- Bank Financial Strength Rating: to E+ from E with positive
      outlook.


BANCO PATAGONIA: Moody's Raises Financial Strength Rating to E+
---------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
ratings of several Argentinean banks to reflect:

   -- the banks' improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the various banks exerted to improve their core earnings and
asset quality, as well as to reduce their exposures to the
public sector -- achievements that vary within the banking
system, and which have contributed to the banks' improving
solvency.

Moody's upgraded the bank financial strength ratings of Banco
Patagonia S.A., Banco Macro Bansud S.A., Nuevo Banco Suquia
S.A., Banco de la Ciudad de Buenos Aires, and Banco Itau Buen
Ayre S.A. to E+ from E.

The outlooks on these ratings are positive.

Moody's noted that these banks improved their franchises and
financials since the crisis; nevertheless, their franchise value
still lags that of the D- rated banks because of their more
limited market shares, product diversification and earnings
generating ability. The rating agency also pointed out that the
positive outlooks reflect the expectation of further
improvements in these banks' core earnings and balance sheet
quality as they focus more fully on business development.

Moody's upgraded this rating of Banco Patagonia S.A.:

   -- Bank Financial Strength Rating: to E+ from E with positive
      outlook.


BANCO RIO: Moody's Ups Financial Strength Rating to D- from E
-------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
ratings of several Argentinean banks to reflect:

   -- the banks' improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the various banks exerted to improve their core earnings and
asset quality, as well as to reduce their exposures to the
public sector --- achievements that vary within the banking
system, and which have contributed to the banks' improving
solvency.

Moody's upgraded Banco Rio de la Plata S.A., BBVA Banco Frances
S.A., Banco Credicoop Cooperativo Limitado and Banco de Valores
S.A to D- from E. Moody's said that the ratings upgrades were
based on

   -- these banks' strong franchises in their respective
      markets,
   -- their improving core earnings potential, and
   -- the successful restructuring of their balance sheets.

The outlooks on these ratings are stable.

Having largely dealt with the legacies of Argentina's deep
financial crisis, these banks now also report improving asset
quality and capitalization ratios, and their managements seem
prone to leverage their earnings generation ability in an
improving economic environment.

Moody's upgraded this rating of Banco Rio de la Plata S.A.:

   -- Bank Financial Strength Rating: to D- from E with stable
      outlook.


BANCO SUPERVIELLE: Moody's Ups Financial Strength Rating to E+
--------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
ratings of several Argentinean banks to reflect:

   -- the banks' improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the various banks exerted to improve their core earnings and
asset quality, as well as to reduce their exposures to the
public sector -- achievements that vary within the banking
system, and which have contributed to the banks' improving
solvency.

Moody's upgraded the BFSRs of Banco Comafi S.A., Banco Banex
S.A. Banco Supervielle S.A., and MBA Banco de Inversiones S.A.
to E+ from E. The outlooks on these ratings are stable.

The rating actions reflect these banks' relatively stronger
balance sheets and solvency following the crisis, as well as
their low public sector exposures.  However they also reflect
their developing franchises, more limited market shares and
revenue diversification relative to their larger peers.

Moody's upgraded this rating of Banco Supervielle S.A.:

   -- Bank Financial Strength Rating: to E+ from E with stable
      outlook.


BBVA BANCO: Moody's Ups Financial Strength Rating to D- from E
--------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
ratings of several Argentinean banks to reflect:

   -- the banks' improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the various banks exerted to improve their core earnings and
asset quality, as well as to reduce their exposures to the
public sector --- achievements that vary within the banking
system, and which have contributed to the banks' improving
solvency.

Moody's upgraded Banco Rio de la Plata S.A., BBVA Banco Frances
S.A., Banco Credicoop Cooperativo Limitado and Banco de Valores
S.A to D- from E. Moody's said that the ratings upgrades were
based on

   -- these banks' strong franchises in their respective
      markets,
   -- their improving core earnings potential, and
   -- the successful restructuring of their balance sheets.

The outlooks on these ratings are stable.

Having largely dealt with the legacies of Argentina's deep
financial crisis, these banks now also report improving asset
quality and capitalization ratios, and their managements seem
prone to leverage their earnings generation ability in an
improving economic environment.

Moody's upgraded this rating of BBVA Banco Frances S.A.:

   -- Bank Financial Strength Rating: to D- from E with stable
      outlook.


BELLANTE HNOS: Creditors Have Until July 4 to Present Claims
------------------------------------------------------------
Creditors of Bellante Hnos. S.A.C.I. are required to submit
particulars of their claims by July 4, 2006.  Infobae relates
that the claims will undergo a verification phase.

Claims that are verified will then be submitted in court as
individual reports.  A general report, which will contain the
company's audited business records as well as a summary of
events pertaining to the liquidation, will follow after the
presentation of the individual report.

The dates of submission of these reports are yet to be
disclosed.

A court in Trenque Lauquen, Buenos Aires, declared the company
bankrupt and appointed Ada Estela Vincent as trustee to
supervise the proceeding.

The debtor can be reached at:

         Bellante Hnos. S.A.C.I.
         Avenida 9 de Julio e H. Yrigoyen, Carlos Casares
         Buenos Aires, Argentina

The trustee can be reached at:

         Ada Estela Vincent
         San Martin 465, Trenque Lauquen
         Buenos Aires, Argentina


CAMUZZI GAS: Posts ARS5.68 Mil. Net Loss in First Quarter 2006
--------------------------------------------------------------
Camuzzi Gas Pampeana, a natural gas distributor in Argentina,
told the country's securities regulator -- Comision Nacional de
Valores -- that its net loss in the first quarter 2006 increased
to ARS5.68 million from ARS3.4 million in the same period in
2005.

Business News Americas says that these factors led to the
increase of losses:

   -- revenue drop,
   -- continued high sales costs,
   -- increased marketing and administrative expenses, and
   -- higher financial losses.

Camuzzi's revenue dropped 10.4% in to ARS73.7 million while
operating losses increased to ARS5.32 million from the ARS1.81
million in the first quarter last year, BNamericas states.

According to BNamericas, Camuzzi used about 69% of its transport
capacity.

Gas deliveries, on the other hand, reached 953 million cubic
meters.

Camuzzi was able to increase its customer base to about
1,034,106 by obtaining about 6,529 new customers in the first
quarter 2006, BNamericas reports.

Camuzzi Gas Pampeana S.A. serves most of the province of Buenos
Aires -- excluding the city of Buenos Aires and the greater
metropolitan area of Buenos Aires -- and the Province of La
Pampa, encompassing primary industrial and residential areas.
The company operates a 3,500-kilometer pipeline network and a
17,600-kilometer distribution network and its primary
shareholder is Sodigas Pamapena, which has an 86.09% interest.

                        *    *    *

As reported in the Troubled Company Reporter on April 17, 2006,
Moody's Investors Service assigned a B2 global local currency
rating and an A2.ar national scale rating to Camuzzi Gas
Pampeana's issue of up to ARS75 millions senior unsecured Class
3 notes with a stable outlook.


CLINICA ESPARTA: Moves Claims Verification Deadline to July 10
--------------------------------------------------------------
Buenos Aires' Court No. 1 extended the submission of creditors'
claims against bankrupt firm Clinica Esparta S.R.L.

Maria Susana Taboada, the court-appointed trustee, will accept
claims until July 10, 2006.

As reported in the Troubled Company Reporter on May 18, 2006,
Court No. 1 declared the company bankrupt, in favor of
Organizacion de Servicios Directos Empresarios, which the
company owes US$8,524.57.

Clerk No. 2 assists the court on the case.

The debtor can be reached at:

         Clinica Esparta S.R.L.
         Tacuari 1330
         Buenos Aires, Argentina

The trustee can be reached at:

         Maria Susana Taboada
         Juana Azurduy 2449
         Buenos Aires, Argentina


DF RECORD: Verification of Proofs of Claim Ends on July 21
----------------------------------------------------------
The verification phase for the proofs of claim submitted by DF
Record S.A.'s creditors have started, Argentine daily La Nacion
reports.  The verification phase will end on July 21, 2006.
Creditors who are unable to submit claims will be excluded from
receiving any distribution or payment that the company will
make.

DF REcord was declared bankrupt by Buenos Aires' Court No. 15
with the assistance of Clerk No. 30.  The court made the ruling
in favor of the company's creditor, Cooperativa del Milenio
Limitada, which the company owes US$42,000.  The court appointed
Carlos Carrescia as trustee.

The debtor can be reached at:

         DF Record S.A.
         Lavalle 1118
         Buenos Aires, Argentina

The trustee can be reached at:

         Carlos Carrescia
         Tucuman 1621
         Buenos Aires, Argentina


HIDRAULICA S.V.: Trustee Stops Validating Claims After June 23
--------------------------------------------------------------
Court-appointed trustee Enrique Batellini will stop validating
claims against bankrupt company Hidraulica S.V. after
June 23, 2006, Infobae reports.

Mr. Batellini will present the validated claims in court as
individual reports on Aug. 11, 2006.  The trustee will also
submit a general report on the case on Sept. 22, 2006.

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

The trustee can be reached at:

         Enrique Batellini
         Parana 774
         Buenos Aires, Argentina


HIRISONA S.A.: Creditors Must File Proofs of Claim by July 20
-------------------------------------------------------------
Marcelo Carlos Rodriguez, the trustee appointed by a Buenos
Aires court for the bankruptcy proceeding of Hirisona S.A., will
no longer entertain claims that are submitted after
July 20, 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 Sept. 15, 2006.  The submission of the general report
on the case will follow on Oct. 31, 2006.

The trustee can be reached at:

         Marcelo Carlos Rodriguez
         Cerrito 146
         Buenos Aires, Argentina


MBA BANCO: Moody's Raises Financial Strength Rating to E+ from E
----------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
ratings of several Argentinean banks to reflect:

   -- the banks' improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the various banks exerted to improve their core earnings and
asset quality, as well as to reduce their exposures to the
public sector --- achievements that vary within the banking
system, and which have contributed to the banks' improving
solvency.

Moody's upgraded the BFSRs of Banco Comafi S.A., Banco Banex
S.A. Banco Supervielle S.A., and MBA Banco de Inversiones S.A.
to E+ from E. The outlooks on these ratings are stable.

The rating actions reflect these banks' relatively stronger
balance sheets and solvency following the crisis, as well as
their low public sector exposures.  However they also reflect
their developing franchises, more limited market shares and
revenue diversification relative to their larger peers.

Moody's upgraded this rating of MBA Banco de Inversiones S.A.:

   -- Bank Financial Strength Rating: to E+ from E with stable
      outlook.


METALURGICA GAONA: Individual Reports Due in Court on July 12
-------------------------------------------------------------
Court-appointed trustee Jacobo Luterstein will present
individual reports on the validated claims against Metalurgica
Gaona S.R.L. on July 12, 2006, Infobae reports.

The trustee stopped verifying the claims on May 30, 2006.

The submission of a general report on the case is expected in
court on Sept. 11, 2006.

As reported in the Troubled Company Reporter on April 21, 2006,
Court No. 5 of Buenos Aires' civil and commercial tribunal
declared the company bankrupt.

Clerk No. 9 assists the court on the case.

The debtor can be reached at:

           Metalurgica Gaona S.R.L.
           Castro Barros 1193
           Buenos Aires, Argentina

The trustee can be reached at:

           Jacobo Luterstein
           Rodriguez Pena 694
           Buenos Aires, Argentina


NUEVO BANCO: Moody's Ups Financial Strength Rating to E+ from E
---------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
ratings of several Argentinean banks to reflect:

   -- the banks' improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

In taking this action, Moody's also considered the efforts that
the various banks exerted to improve their core earnings and
asset quality, as well as to reduce their exposures to the
public sector --- achievements that vary within the banking
system, and which have contributed to the banks' improving
solvency.

Moody's upgraded the bank financial strength ratings of Banco
Patagonia S.A., Banco Macro Bansud S.A., Nuevo Banco Suquia
S.A., Banco de la Ciudad de Buenos Aires, and Banco Itau Buen
Ayre S.A. to E+ from E.

The outlooks on these ratings are positive.

Moody's noted that these banks improved their franchises and
financials since the crisis; nevertheless, their franchise value
still lags that of the D- rated banks because of their more
limited market shares, product diversification and earnings
generating ability. The rating agency also pointed out that the
positive outlooks reflect the expectation of further
improvements in these banks' core earnings and balance sheet
quality as they focus more fully on business development.

Moody's upgraded this rating of Nuevo Banco Suquia S.A.:

   -- Bank Financial Strength Rating: to E+ from E with positive
      outlook.


PINTAL S.R.L.: Sets July 20 Deadline for Proofs of Claim Filing
---------------------------------------------------------------
Creditors of bankrupt company Pintal S.R.L. are required to
present proofs of claim to Ester Lazzarone, the court-appointed
trustee, by July 20, 2006, La Nacion reports.  Creditors who
fail to submit the required documents will not qualify for any
post-liquidation distributions.

Buenos Aires' Court No. 24 declared the company bankrupt at the
behest of Victor Miranda, whom the company owes US$14,785.74.

Clerk No. 47 assists the court on the case.

The debtor can be reached at:

         Pintal S.R.L.
         Azcuenaga 75
         Buenos Aires, Argentina

The trustee can be reached at:

         Ester Lazzarone
         Cordoba 1943
         Buenos Aires, Argentina


SERVICIO INTEGRAL: Individual Reports Due in Court on July 13
-------------------------------------------------------------
Juan Castronuovo, the court-appointed trustee in the bankruptcy
case of Servicio Integral Telefonico S.A., will present in court
individual reports of verified claims on July 13, 2006, Infobae
relates.

The claims verification ended May 31, 2006.

A general report on the case is expected in court on
Sept. 7, 2006.

As reported in the Troubled company Reporter on March 3, 2006,
Servicio Integral was declared bankrupt after Buenos Aires Court
No. 17 endorsed the petition of Obra Social de Empleados de
Comercio for the company's liquidation.

Clerk No. 33 assists the court in this case.

The debtor can be reached at:

         Servicio Integral Telefonico S.A.
         Avenida Belgrano 2068
         Buenos Aires, Argentina

The trustee can be reached at:

         Juan Castronuovo
         Cerrito 1116
         Buenos Aires, Argentina


TOP EXPRESS: Creditors Must Submit Proofs of Claim by June 14
-------------------------------------------------------------
Creditors of Top Express S.A. are required to submit proofs of
claim by June 14, 2006, to Adriana E. Serki, the court-appointed
trustee.

Top Express will proceed with reorganization after a Buenos
Aires Court converted the company's ongoing bankruptcy case into
reorganization, states Infobae.

The court also ordered the trustee to prepare individual reports
after the verification process is completed, and have them ready
by Aug. 11, 2006.  A general report on the reorganization
proceeding is expected on Sept. 26, 2006.

As reported in the Troubled Company Reporter on March 29, 2006,
the trustee was ordered by the court to verify proofs of claim
for the company's reorganization proceeding until
April 17, 2006.  An individual report was also scheduled to be
submitted on June 1, 2006, and a general report was expected to
follow on July 31, 2006.  However, the submission of the reports
has been postponed after the court converted the bankruptcy case
into a reorganization proceeding.

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

The debtor can be reached at:

         Top Express S.A.
         Santa Fe 1373, Rosario
         Santa Fe, Argentina

The trustee can be reached at:

         Adriana E. Serki
         Ituzaingo 1575, Rosario
         Santa Fe, Argentina




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


BAY POINT: Moody's Puts (P)Ba2 Rating on Seniro Sec. Term Loan
--------------------------------------------------------------
Moody's Investors Service assigned a provisional (P)Ba2 rating
to the senior secured term loan of Bermuda-based Bay Point
Holdings Ltd. and a provisional (P)Baa3 insurance financial
strength rating to Bay Point Re Ltd, its wholly-owned Bermuda-
based operating subsidiary.

The outlook for the provisional ratings is stable.  Moody's
noted that it expects to confirm these ratings upon review of
final executed documentation for both Bay Point Holdings and Bay
Point Re, provided the documentation is consistent with the
terms and conditions specified to date that underlie the
provisional ratings.

The privately-placed senior secured term loan of Bay Point
Holdings, which is being syndicated to financial institutions
and other institutional lenders under Section 144A guidelines,
is scheduled to incept on May 31, 2006 and to mature on
Dec. 31, 2010.  The loan is secured by the capital stock of Bay
Point Re, and is non-amortizing, but allows for voluntary
prepayments, requires mandatory prepayments under certain
circumstances, and is callable at a premium.

According to Moody's, Bay Point Holdings is a privately held
holding company for Bay Point Re, a newly formed Class 3
licensed Bermuda reinsurer that has entered into a quota-share
reinsurance treaty with Bermuda-based Harbor Point Re Limited.

Bay Point Re will assume specified percentages of certain lines
of reinsurance -- including property, marine, energy and certain
other lines of business underwritten by Harbor Point Re Limited
for the 2006 and 2007 underwriting years.

Initial capitalization for Bay Point Re is expected to be up to
US$250 million, comprised of up to US$125 million in a senior
secured term loan, cumulative preferred shares and common
equity.  The company's capital and risk assumption capacity
-- or "minimum capital cushion" - is gauged to support a maximum
risk load over the life of the transaction as calibrated by the
greater of two tests, one involving the ratio of maximum
projected in-force premiums, and the other involving a
combination of modeled return-periods for the in-force
portfolio.

Bay Point Re will post its total paid-in capital as cash and
securities into a trust to collateralize its reinsurance
obligations to Harbor Point Re Limited.  Investment holdings are
expected to be entirely investment-grade, with an average
quality toward the high end of rating spectrum, and a duration
that is reasonably matched to Bay Point's expected liability
duration.

Moody's analysis focused on both structural and contractual
features of the Bay Point vehicle, as well as stochastic
analysis of the company's existing and expected underwriting and
investment portfolios, and its expense and capital structures,
which were components of analyzing both the probability of loss,
and expected severity of loss for both Bay Point Holdings' debt-
holders, and Bay Point Re's policyholder.

Moody's stated that Bay Point Re's ratings primarily reflect the
company's capitalization level and balance sheet that is
unencumbered by legacy exposures, structural characteristics
that are designed to offer protection to debt investors, and its
conservative investment policy.

The rating agency stated that these fundamental strengths are
significantly tempered by Bay Point Re's relatively high debt
leverage profile, the inherent underwriting volatility of its
catastrophe-exposed reinsurance portfolio, some uncertainty
about the overall risk composition of its portfolio over time
-- given its multi-line and global span, and by parameter risk
in the assumptions underlying the risk modeling that forms the
basis of the company's capitalization.

Moody's further noted that its expectations at the current
rating level are that Bay Point Holdings will continue to
maintain a financial leverage profile at no more than 50% debt
to total capital and that shareholders' equity will not decline
by more than 15% over a 12 month period.

That said, the rating agency noted that the ratings will likely
reflect updated analysis of the cumulative performance of the
company, its future overall risk-adjusted capitalization level,
and updated prospective probabilistic analysis of its
reinsurance portfolio at future points in time.

These provisional ratings have been assigned:

Bay Point Holdings Ltd.

   * senior secured term loan due 2010 at (P)Ba2;

Bay Point Re Ltd.

   * insurance financial strength at (P)Baa3.

Bay Point Holdings Ltd., based in Bermuda, is the holding
company for Bay Point Re Ltd., which is a licensed Class 3
Bermuda insurer that has entered into a quota-share reinsurance
treaty with Bermuda-based Harbor Point Re Limited pursuant to
which Bay Point Re will assume specified percentages of certain
lines of reinsurance business underwritten by Harbor Point on
behalf of ceding companies for the 2006 and 2007 underwriting
years.

Moody's insurance financial strength ratings are opinions of the
ability of insurance companies to repay punctually senior
policyholder claims and obligations.


FOSTER WHEELER: Saras Awards Contract for New Refinery Units
------------------------------------------------------------
Foster Wheeler Ltd. disclosed that Milan-based Foster Wheeler
Italiana S.p.A., part of its Global Engineering and Construction
Group, has been awarded an engineering and procurement contract
by Saras S.p.A. for new process units at the Sarroch refinery in
Sardinia, Italy.  The contract also includes an option, which
Saras may elect to exercise at a later date, for the provision
of construction supervision services by Foster Wheeler.  Saras
is one of the leading industrial companies in Italy and its
Sarroch refinery is one of Europe's largest and most advanced
refining complexes.

The terms of the contract award, which were included in Foster
Wheeler's first-quarter 2006 bookings, were not disclosed.

Foster Wheeler's scope includes a new hydrodesulfurization unit
with 180 cubic meters per hour throughput, designed to reduce
the sulfur content of a gasoline blending component to seven
parts per million weight, while minimizing octane loss.  In
addition, two new independent tail gas treatment units will be
installed, each with approximately 36 metric tons per hour
capacity.  The tail gas treatment units will be designed to
achieve a minimum overall sulfur recovery of 99.9% from the tail
gases, in line with new emissions legislation.  Tail gases are
"leftover" gases from the sulfur recovery unit.

"We are very pleased to be awarded this project by Saras," said
Umberto della Sala, chief executive officer of Foster Wheeler's
Global Engineering and Construction Group.  "The importance of
this award goes far beyond the contract itself and represents a
significant first step in the development of a long-term
alliance relationship with Saras."

"This project is very important for the future development of
our refinery at Sarroch," said Paolo Alfani, executive vice
president, Saras S.p.A.  "We are confident that Foster Wheeler
has the right experience, expertise and professionalism to meet
our objectives for this challenging project and also to
establish a successful partnership relationship with Saras."

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

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

                        *    *    *

As reported in the Troubled Company Reporter on May 25, 2006,
Standard & Poor's Ratings Services raised its corporate credit
rating to to B+ from B- and its senior secured notes rating to
B+ from CCC+.  At the same time, Standard & Poor's assigned its
'BB-' bank loan rating and '1' recovery rating to the company's
five-year, US$250 million credit facility due 2010.

                        *    *    *

On May 26, 2006, Moddy's Investors Service upgraded Foster
Wheeler LLC's corporate family rating to B1 from B3 and assigned
a Ba3 rating to FWC's US$250 million senior secured bank
revolving credit facility.  The rating outlook is changed to
Positive.


INTELSAT LTD: Subsidiary Proposes US$1.9-Billion Notes Offering
---------------------------------------------------------------
Intelsat, Ltd., disclosed that its wholly owned subsidiary,
Intelsat (Bermuda), Ltd., intends to offer approximately US$1.9
billion of senior notes due 2013 and 2016 in connection with its
contemplated acquisition of PanAmSat Holding Corporation.  In
addition, PanAmSat Holding Corporation intends to offer
approximately US$725 million of senior notes due 2016 and
PanAmSat Corporation intends to offer approximately US$575
million of senior notes due 2016.  The net proceeds from these
offerings will be used, together with cash on hand, to
consummate the Acquisition.

PanAmSat Holding Corporation has commenced an offer to purchase
and consent solicitation for any and all of its outstanding
10-3/8% senior discount notes due 2014.  If the tender offer is
consummated, PanAmSat Holding Corporation will not issue the
senior notes referred to above and Intelsat (Bermuda), Ltd. will
issue approximately an additional US$1.0 billion of senior notes
to fund the tender offer and consent payments, as well as the
balance of the Acquisition merger consideration.

The notes referred to above will be offered to qualified
institutional buyers under Rule 144A and to persons outside the
United States under Regulation S.  The notes will not be
registered under the Securities Act of 1933, as amended, and,
unless so registered, may not be offered or sold in the United
States except pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the Securities
Act and applicable state securities laws.

                       About Intelsat

Intelsat is a global communications provider offering flexible
and secure services to customers in over 200 countries and
territories. Intelsat has maintained a leadership position for
over 40 years by distributing video, voice, and data for
television and content providers, government and military
entities, major corporations, telecommunications carriers, and
Internet service providers.

                        *    *    *

As reported in the Troubled Company Reporter on April 28, 2006,
Fitch currently has Intelsat and its subsidiaries' debt on
Rating Watch Negative, and rated its debt as follows:

   Intelsat, Ltd.

     -- Issuer default rating: B-
     -- Senior unsecured notes: CCC/RR6

   Intelsat (Bermuda), Ltd.

     -- Senior unsecured discount notes: B-/RR4

   Intelsat Subsidiary Holding Company Ltd.

     -- Senior secured credit facilities: BB-/RR1
     -- Senior unsecured notes: B+/RR2




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


COMIBOL: Former Workers Occupy Lots Near Industrial Plant
---------------------------------------------------------
Former workers of Corporacion Minera de Bolivia aka Comibol, a
state-run miner of Bolivia, occupied portions of land where the
Oruro industrial plant is located, El Diario reports.

According to El Diario, the former employees were at odds with
mining cooperative groups over the lots.

El Diario states that the former workers had requested for land.
However, neither Comibol nor the mining ministry responded.

The workers threatened to increase pressure tactics and use the
land for housing unless the Comibol authorities would attend to
their demands within 48 hours, Business News Americas reports.

                        *    *    *

Comibol underwent a restructuring initiated by the Bolivian
government.  As reported in the Troubled Company Reporter on
Feb. 6, 2006, the restructuring of Bolivia's state mining
company Comibol could take a long time.  Bolivian President Evo
Morales' initiative for the company's restructuring would take
time as currently Comibol mines are under joint venture
contracts or leasing agreements.

Comibol has US$85 million in assets including equipment and
machinery, which cannot be used by small and medium-scale miners
and cooperatives.  According to Cabrera, only some of that
equipment can be employed in the restructuring; the rest is too
old or is unsuitable.




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


AES CORP: Inks Prelim Pact with BNDES to Repay Brasiliana's Debt
----------------------------------------------------------------
The AES Corporation (NYSE:AES) disclosed that AES Transgas
Empreendimentos S.A., a wholly owned subsidiary of Brasiliana
Energia S.A., plans to sell a portion of its interest in
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A., the
largest regulated electric utility in Brazil.

Brasiliana is jointly owned by AES and the Brazilian National
Development Bank.

Proceeds from the secondary sale are expected to be used by
Brasiliana to repay in full its debt to BNDES, which was US$582
million as of March 31, 2006.  Upon completion of the proposed
sale, Brasiliana will continue to control Eletropaulo by
maintaining a 76.5 percent stake of the controlling shares.  The
offering, which is subject to regulatory approval, is expected
to be completed this summer.

Eletropaulo serves approximately 5.3 million customers in Sao
Paulo state.  Through its interest in Brasiliana, AES currently
has:

   -- a 34% economic interest in Eletropaulo;

   -- a 24% economic interest in Tiete, a 2,650 megawatt
      hydroelectric power generation business; and

   -- a 46% economic interest in Uruguaiana, a 639
      megawatt gas-fired power plant.

AES has a controlling interest in all of these businesses and
also owns AES Sul, a regulated electric utility serving
approximately one million customers in the state of Rio Grande
do Sul in southern Brazil.

                      About the Company

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

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

                        *     *     *

As reported in the Troubled Company Reporter on May 25, Fitch
affirmed The AES Corporation's Issuer Default Rating at 'B+'.
Fitch also affirmed and withdrew the ratings for the company's
junior convertible debt.  Fitch said the rating outlook for all
remaining instruments is stable.

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

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


BRASKEM SA: Shareholders Approved Merger with Polialden
-------------------------------------------------------
Shareholders of Braskem SA and Polialden approved the merger of
the two firms during the Extraordinary Shareholders' Meetings
held on May 31.  This marked the end of Braskem's corporate
integration process as initially envisioned, combining the
operations of six companies.

"The merger of Polialden was designed to align the interests of
all shareholders and will allow shareholders of Polialden that
choose to become shareholders of Braskem access to the
differentiated benefits offered by Braskem to all of its
shareholders, such as 100% tag-along rights in the event of a
change of control," said Paul Altit, Vice President of Finances
and Investor Relations of Braskem.

Before the merger, Braskem owned 100% of Polialden's voting
share capital and approximately 63.7% of its total share
capital.  Commencing as of May 31, Polialden's preferred
shareholders can exchange their Polialden shares for Braskem's
class A preferred shares, at an exchange ratio of 33.62 of
Braskem's class A preferred shares for each lot of 1,000
Polialden shares.  This exchange ratio is based on an appraisal
report with respect to both companies prepared by
PricewaterhouseCoopers Auditores Independentes.

To maintain the legally required ratio of Braskem's common and
preferred shares, Braskem's shareholders approved the conversion
of 2,632,043 class A preferred shares into common shares, as
well as the issuance of 7,878,825 class A preferred shares.  As
a result, Braskem's share capital will increase by BRL105.3
million, and the block of Braskem's shares traded in the market
will expand, increasing Braskem's free float to approximately
53%.

Minority shareholders of Polialden must exercise their appraisal
rights beginning May 31 and until July 1, 2006, if they do not
exchange their shares for Braskem's shares.  Polialden
shareholders that exercise their appraisal rights will receive a
cash payment of BRL0.449 per share.

As reported in the Troubled Company Reporter on May 18, 2006,
Braskem SA and Polialden Petroquimica SA invited their
respective shareholders to participate in the Extraordinary
General Shareholders' Meetings on May 31, at which the proposed
merger of Polialden with and into Braskem was discussed.  The
proposed merger is consistent with Braskem's commitment to add
value for all of its shareholders, in addition to permitting the
company to streamline its corporate structure and capture
important synergy gains, thereby further improving its
competitiveness.

                      About Polialden

Polialden Petroquimica SA produces, processes, and markets high
density polyethylene and other chemical and petrochemical by-
products.

                       About Braskem

Braskem -- http://www.braskem.com.br/-- is a thermoplastic
resins producer in Latin American, and is among the three
largest Brazilian-owned private industrial companies.  The
company operates 13 manufacturing plants located throughout
Brazil, and has an annual production capacity of 5.8 million
tons of resins and other petrochemical products.

                        *    *    *

As reported in the Troubled Company Reporter on April 10, 2006,
Fitch Ratings and Standard& Poor's Ratings Services assigned
these ratings to Braskem S.A.:

   Fitch Ratings Services:

     -- BB- on the proposed offering of US$200 million senior
        unsecured perpetual bonds to be issued.

   Standard & Poor's Ratings Services:

     -- BB on local- and foreign-currency corporate credit
        ratings; and

     -- BB on forthcoming US$200 million perpetual bonds.


CEDRO INTERNATIONAL: Proofs of Claim Filing Ends on June 16
-----------------------------------------------------------
Creditors of Cedro International Limited are required to submit
particulars of their debts or claims by June 16, 2006, to Manoel
Bizarria Guilherme Neto, the company's appointed liquidator.
Failure to do so will exclude them from receiving the benefit of
any distribution that the company will make.

The company started liquidating assets on May 1, 2006.

The liquidator can be reached at:

          Manoel Bizarria Guilherme Neto
          Avenida Nacoes Unidas
          Sao Paulo, Brazil


GLOBO COMUNICACAO: Net Revenue Reaches BRL1.3B in First Quarter
---------------------------------------------------------------
Globo Comunicacao e Participacoes S.A. disclosed financial
results for the quarter ended March 31, 2006.

                          Highlights

   -- Globo's Net Revenue was BRL1.3 billion in 1Q06, 16.3%
      higher than in 1Q05.

   -- Globo'sEBITDA reached BRL338.9 million in 1Q06
      (26.2% EBITDA margin), increasing 18.0% over 1Q05.

   -- On March 20, 2006, the Company voluntarily prepaid
      approximately US$70.0 million of its outstanding bonds.

   -- On March 24, 2006, Standard & Poor's Rating Services
      raised the Company's global (foreign and local currency)
      ratings to BB-.

   -- On April 20, 2006, Globo issued US$325.0 million in
      Perpetual Notes and refinanced the Existing Series C
      Bonds.

   -- On May 18, 2006, Globo announced an agreement to sell
      preferred shares and other rights issued by Net Servi‡os.
      The proceeds were used to partially offset the Distel Loan
      in an amount of approximately BRL240.0 million.

   -- On May 19, 2006, Globo announced that it will voluntarily
      prepay more than US$150.0 million of certain of its
      outstanding bonds on June 20, 2006.

   -- EBITDA for the Company Group reached BRL322.8 million in
      1Q06 (28.6% of EBITDA margin), increasing 20.9% over 1Q05.

               Globo Unaudited Consolidated

         BRL million        1Q05         1Q06         % Chg.

          Net Revenue      1,114.1     1.295.3         16.3%
          EBITDA             287.2       338.9         18.0%
          EBITDA Margin      25.8%       26.2%         38 bps


                    Advertising Market Overview

The Brazilian media advertising expenditures (including Yellow &
White Pages and Movie Theaters) increased by 17.9% in the first
two months of 2006, compared to the same period of 2005,
reaching BRL2.2 billion by the end of February 2006.  During the
same period, the advertising market for broadcast and pay-TV
increased 16.2%.  Historically, television (including broadcast
TV and pay-TV) is the largest advertising medium in Brazil,
capturing more advertising revenues than all other media
combined.  The 2005 full-year advertising expenditures for
broadcast and pay-TV was BRL9.9 billion, or 62% of total
advertising market expenditures.  This percentage remained the
same in the first two months of 2006.

                  Relevant and Recent Events

Perpetual Notes and the Refinancing of the Existing Series C
Bonds on April 10, 2006, Globo issued a private offering of
US$325.0 million aggregate principal amount of 9.375% perpetual
notes.  On April 20, 2006, Globo used the gross proceeds of the
offering of the Perpetual Notes to refinance in full its
Variable Rate Series C Senior Secured Notes Due 2011.

The Perpetual Notes have not been registered under the United
States Securities Act of 1933, as amended, nor with the
Brazilian Securities and Exchange Commission -- Comissao de
Valores Mobiliarios.  The Perpetual Notes were sold outside the
United States to non-U.S. persons in reliance on Regulation S
under the Securities Act and were not offered to the public in
Brazil.

                Prepayment of the Secured Debt

On May 18, 2006, Globo announced that it had agreed, together
with its controlled subsidiary Globosat Programadora Ltda., to
sell to Empresa Brasileira de Telecomunicacoes S.A. or Embratel

   (a) 200 million preferred shares issued by Net Servicos,
       representing respectively 8.54% and 5.06% of
       Net Servicos' preferred capital and total capital, for a
       price per share equal to the average market price of Net
       Servicos' preferred shares as quoted on the Sao Paulo
       Stock Exchange at the closing of the 30 immediately
       preceding trading sessions; and

   (b) the right to convert into new shares of Net Servicos
       certain tax credits assessable by Net Servi‡os as a
       result of the amortization of a special premium reserve
       booked by Net Servicos as provided for in Instruction
       319/99, as amended, issued by CVM.

The Shares were pledged as collateral for a certain loan granted
to Distel Holding S.A.  The proceeds from the sale of the
Shares, approximately BRL240.0 million were applied to partially
prepay the Distel Loan.

The proceeds of the transaction related to certain tax credits
assessable, a total of BRL69.3 million, were deposited on the
Brazilian cash collateral account for future prepayment of the
outstanding bonds issued by Globo pursuant to the Consolidated
Trust Deed dated as of July 20, 2005.

On May 19, 2006, Globo announced that it will voluntarily prepay
more than US$150 million of certain of its outstanding bonds on
June 20, 2006.  The funds used for this voluntary prepayment
will be obtained from operating cash flow, as well as
approximately BRL69.3 million from the transaction related to
the sale of the right to convert into new shares of Net Servicos
certain tax credits assessable by Net Servicos.

The proceeds of the Transaction had been deposited in the
Brazilian cash collateral account in accordance with the terms
of the Consolidated Trust Deed dated as of July 20, 2005, and
related documents underlying such bonds.

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

                      Earnings Analysis

The Company's net revenue increased BRL181.2 million, reaching
BRL1.3 million, when comparing 1Q06 with 1Q05, due to:

   (i) BRL143.0 million increase due to higher advertising
       revenue mainly explained by the advertising market
       growth;

  (ii) BRL24.3 million increase in Content/Programming revenues,
       mainly due to the improvement in Pay-TV programming
       sales;

(iii) BRL19.7 million increase in "Others" category, mainly due
       to an increase in printing activities, magazine
       subscription fees, sales of books and other; and

  (iv) BRL5.8 million reduction at Net Servicos, related to the
       lower ownership interest held by Globo, from 17.24% in
       1Q05 to 13.04% in 1Q06, and according to Net Servicos'
       results as reported on its 1Q06 financial statements.

                        Cost of sales

The Company's cost of sales, excluding depreciation, increased
BRL93.3 million when comparing 1Q06 with 1Q05.  The cost of
sales reported in the financial statements includes depreciation
of BRL48.3 million in 1Q06 and BRL51.7 million in 1Q05.  The
increase on the Company's cost of sales, excluding depreciation,
was due to:

   (i) BRL48.7 million increase mainly explained by higher costs
       of exhibition, transmission rights and copyright;

  (ii) BRL44.5 million increase related to a higher number of
       employees associated with operating activities and annual
       labor union adjustments;

(iii) BRL1.9 million reduction at Net Servicos, related to the
       lower ownership interest held by Globo, and according to
       Net Servicos' results as reported on its 1Q06 financial
       statements.

                      Selling Expenses

The Company's selling expenses increased BRL20.9 million when
comparing 1Q06 with 1Q05, due to:

   (i) BRL17.5 million increase in expenses as a result of
       advertising sales growth; and

  (ii) BRL2.1 million increase at Net Servicos, related to the
       lower ownership interest held by Globo, and according
       to Net Servicos' results as reported on its 1Q06
       financial statements.

               General and Administrative Expenses

The Company's general and administrative expenses increased
BRL13.2 million when comparing 1Q06 with 1Q05, due to:

   (i) BRL2.8 million increase in legal expenses;

  (ii) BRL11.1 million increase mainly in consulting,
       Information Technology and other services associated with
       business infrastructure; and

(iii) BRL0.7 million reduction at Net Servicos, related to the
       lower ownership interest held by Globo, and according to
       Net Servicos' results as reported on its 1Q06 financial
       statements.

                 Other Operating Expenses

The Company's operating expenses increased BRL2.1 million when
comparing 1Q06 with 1Q05 due to:

   (i) BRL2.6 million increase in the expense mainly related to
       contingent liabilities and provision for losses that
       occurred in 1Q06; and

  (ii) BRL0.8 million reduction at Net Servicos, related to the
       lower ownership interest held by Globo in Net Servicos,
       and according to Net Servicos' results as reported on its
       1Q06 financial statements.

                          EBITDA

The Company's EBITDA increased BRL51.7 million, reaching
BRL338.9 million, when comparing 1Q06 with 1Q05, due to the
drivers explained before.

The Company's net financial results increased BRL266.6 million,
reaching an income of BRL67.8 million when comparing 1Q06 with
1Q05. The impact on the Company's net financial results was due
to:

   (i) Interest income increased BRL6.3 million mainly due to
       the higher cash and cash equivalent balance in 2006;

  (ii) Interest expenses decreased BRL138.5 million mostly due
       to a lower debt balance in 2006; and

(iii) Monetary and exchange rate variation result decreased
       BRL123.9 million mainly due to a 7.2% appreciation of the
       Brazilian Real in relation to the US dollar in 1Q06 and a
       depreciation of 0.4% of the Brazilian Real in relation to
       the US dollar in 1Q05.

          Equity and Provision for Losses on Investments

The Company's equity gain decreased BRL1.5 million, reaching a
loss of BRL1.1 million when comparing 1Q06 with 1Q05, mainly due
to negative impact in Sigla's and Seguradora Roma's shareholders
equity.

                 Amortization of Goodwill

The Company's expense related to amortization of goodwill
increased BRL33.1 million reaching BRL151.6 million when
comparing 1Q06 with 1Q05, mainly due to:

   (i) BRL112.9 million amortization resulting from the merger
       of TV Globo recognized in 1Q06;

  (ii) BRL74.7 million one time amortization of goodwill
       generated in 1Q05 related to the acquisition of the
       remaining shares of UGB from other shareholders; and

(iii) BRL2.0 million reduction related to the lower ownership
       interest held by Globo in 1Q05 in Net Servi‡os.

                   Non-Operating Income

The Company's non-operating income totaled BRL13.0 million in
1Q06 compared to BRL597.7 million in 1Q05, mainly due to the
sale of ownership interest related to Net Servicos recorded in
1Q05.

         Income Tax and Social Contribution Expense

The Company's income tax and social contribution expense
amounted to BRL31.6 million in 1Q06 and BRL39.0 million in 1Q05.
This impact was mainly due to the lower deferred income tax and
social contribution expenses recorded in 1Q06 compared to 1Q05.

                       Net Income

The Company's net income decreased BRL290.4 million, reaching an
income of BRL167.1 million, when comparing 1Q06 to 1Q05, mainly
due to lower non-operating income related to the sale of
interest of Net Servicos that occurred in 1Q05, offset by the
positive financial income results due to monetary and exchange
rate variation and lower debt balance.

         Additions to Property, Plant and Equipment

The Company's additions to property, plant and equipment
increased BRL 32.3 million, reaching BRL47.5 million, when
comparing 1Q06 to 1Q05.

The cash and cash equivalents position for this group of
companies was BRL1.10 billion as of March 31, 2006.  Net
revenues for the Company Group amounted to BRL1.1 billion in
1Q06 (16.8% YOY growth).  EBITDA for the Company Group reached
BRL322.8 million in 1Q06 (28.6% of EBITDA margin).

             Information Regarding Debt Obligations

Since the majority of debt obligations are US dollar-
denominated, the following tables present the Company's debt
obligations in US dollars.

On March 20, 2006, Globo voluntarily prepaid approximately
US$70.0 million of its outstanding bonds.

As of March 31, 2006, Globo's total debt was US$1.1 billion, a
decrease of US$36.3 million compared to US$1.2 billion as of
December 31, 2005. This decrease is mainly due to the result of
the March 20, 2006 voluntary prepayment, partially offset by the
appreciation of the Brazilian Real against the US dollar applied
to Real-denominated debt obligations.

As of March 31, 2006, total debt for the Company Group was
US$1.07 billion a decrease of US$36.0 million compared to US$1.1
billion as of December 31, 2005.

                        About Globo

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

                        *    *    *

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

                        *    *    *

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

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

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


MOGNO CORP: Liquidator Stops Accepting Claims After June 16
-----------------------------------------------------------
Creditors of Mogno Corporation are required to submit
particulars of their debts or claims on by June 16, 2006, to the
company's appointed liquidator -- Manoel Bizarria Guilherme
Neto.  Failure to do so will exclude them from receiving the
benefit of any distribution that the company will make.

Mogno Corporation started liquidating assets on May 1, 2006.

The liquidator can be reached at:

           Manoel Bizarria Guilherme Neto
           Avenida Nacoes Unidas, 7221
           Sao Paulo, Brazil


SABESP: Appeals Filing Halts Employees' Planned Strike
------------------------------------------------------
A strike being threatened against SABESP aka Companhia de
Saneamento Basico do Estado de Sao Paulo has been postponed, a
spokesperson of Sintaema -- a state water, waste and environment
workers union -- informed Business News Americas.

As reported in the Troubled Company Reporter on June 1, 2006,
Sintaema threatened to hold demonstrations against Sabesp
starting May 31 until company officials approve a 15% salary
increase, rejecting a 4.63% salary raise and a promised November
bonus Sabesp offered for this year and demanding the
distribution of company profits as well as an end to regional
salary disparities.

BNamericas relates that the union members accepted during a
Sintaema meeting on May 30 Sabesp's proposal on salary
adjustment as well as the conditions that extend a job guarantee
for 98% of firm employees, after daylong talks between the
company and the union officials.

According to BNamericas, Sabesp countered the union's threat
with a disclosure that it plans to file an appeal to the
regional labor court.

The spokesperson was quoted by BNamericas as saying, "Faced with
the danger of losing the benefits that Sabesp offered, the
workers decided to accept the raise, which is less than they
hoped for, and called off the strike."

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 3, 2005,
Standard & Poor's Ratings Services assigned a 'BB-/Stable/--'
corporate credit rating to Companhia de Saneamento Basico do
Estado de Sao Paulo aka Sabesp.


* BRAZIL: Central Bank Lowers Benchmark Lending Rate to 15.25%
--------------------------------------------------------------
The Financial Times reports that Brazil's central bank lowered
on Wednesday its benchmark-lending rate to 15.25% from 15.75%.
The eight lending rate cut is designed to help bolster the
country's economy.

Inflation is Brazil is under control and with lowering of
interest rates, the country hopes to revive its economy that is
considered biggest in Latin America, FT says, citing Reuters.

According to the government, statistics show that the economy
grew 3.4% in the first quarter when compared to the same period
in 2005, FT relates.

Analysts are quoted by the FT saying that the central bank will
lower rates more cautiously in the coming months in anticipation
of the U.S. Federal Reserves raising of interest rates.

"Now the central bank is basically going to depend on the Fed,"
Massaru Nakayasu, chief economist at Banco de Tokyo Mitsubishi
in Sao Paulo told Reuters.  "If there is more monetary
tightening in the United States, the rate cuts here are going to
be smaller in the future."

                        *    *    *

Fitch Ratings assigned these ratings on Brazil:

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


* BRAZIL: Central Bank Holds First Currency Swap Auction
--------------------------------------------------------
Brazil's central bank held Tuesday its first financial currency
swap auction in almost two years, the Financial Times reports.
The bank sold contracts valued at US$400 million.

A swap is a proxy for selling dollars.

Analysts have already anticipated the bank to sell the swaps if
the real's value continues to fall.  However, analysts did not
expect the bank to step in as early as it did, FT relates.

The FT says that the bank's move was made to clear the ground
for the cut in interest rates on Wednesday.

"A very weak real could put it in the position of either not
being able to cut interest rates or, if it did cut them, of
weakening its credibility," Ricardo Amorim at WestLB in New York
told FT.

                        *    *    *

Fitch Ratings assigns these ratings on Brazil:

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


* BRAZIL: Launches Negotiations on Trade Alliance with Guatemala
----------------------------------------------------------------
The governments of Guatemala and Brazil began bilateral talks
which, according to Guatemalan Economy Minister Marcio Cuevas,
are aimed at setting off both of the countries' trade exchange
toward future negotiations, Prensa Latina reports.

The talks, says Prensa Latina, will focus on Brazilian
cooperation with Guatemala in energy as well as in production of
renewable fuels.

Brazil will seek for possibility in increasing investments in
Guatemala, sighting on the development of a bilateral free trade
accord, according to Prensa Latina.

Guatemala is planning to reach strategic alliances with Brazil
in different economic sectors during the negotiations, Prensa
Latina relates.

Minister Cuevas told Prensa Latina that the agenda includes:

  -- ministerial encounters, and

  -- seminars on business opportunities, promotion of exports
     and investments.

Prensa Latina states that Luiz Fernando Furlan -- the minister
of development, industry and trade -- heads the Brazilian
mission composed of:

  -- a representative of the energy ministry, and
  -- 50 entrepreneurs.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

Fitch also rated Guatemala's senior unsecured bonds:

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

                       *    *    *

Fitch Ratings assigned these ratings on Brazil:

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




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


CONISTON LIMITED: Creditors Must File Proofs of Claim by June 20
----------------------------------------------------------------
Creditors of Coniston Limited are required to prove their claims
to Janet Crawshaw and Jamal Young, the company's liquidators, by
June 20, 2006, or be excluded from receiving any distribution or
payment that the company will make.

Creditors are required to send by June 20 their full names,
addresses, descriptions, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
the liquidators.

The company started liquidating assets on May 1, 2006.

The liquidators can be reached at:

         Janet Crawshaw
         Jamal Young
         Attention: Marguerite Britton
         P.O. Box 1109, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-7755
         Fax: (345) 949-7634


CONROE LIMITED: Creditors Have Until June 20 to Present Claims
--------------------------------------------------------------
Creditors of Conroe Limited, which is being voluntarily wound
up, are required to present claims by June 20, 2006, to Janet
Crawshaw and Jamal Young, the company's liquidators.

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

Conroe Limited began liquidating assets on May 1, 2006.

The liquidators can be reached at:

            Janet Crawshaw
            Jamal Young
            Attention: Marguerite Britton
            P.O. Box 1109, George Town
            Grand Cayman, Cayman Islands
            Tel: (345) 949-7755
            Fax: (345) 949-7634


MEDTRONIC EUROPE: Sets June 16 as Last Day for Claims Filing
------------------------------------------------------------
Creditors of Medtronic Europe Capital Corp., which is being
voluntarily wound up, are required by June 16, 2006, to present
claims to Linburgh Martin and Jeff Arkley, the company's
liquidators.

Medtronic Europe started liquidating assets on March 10, 2006.

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

The liquidators can be reached at:

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


MEDTRONIC JAPAN: Sets June 16 as Proofs of Claim Filing Deadline
----------------------------------------------------------------
Creditors of Medtronic Japan Capital Corp., which is being
voluntarily wound up, are required by June 16, 2006, to present
proofs of claim to Linburgh Martin and Jeff Arkley, the
company's liquidators.

Medtronic Japan started liquidating assets on March 10, 2006.

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

The liquidators can be reached at:

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


MEDTRONIC U.K.: Proofs of Claim Filing Deadline Is on June 16
-------------------------------------------------------------
Creditors of Medtronic U.K. Capital Corp. are required to submit
particulars of their debts or claims by June 16, 2006, to the
company's appointed liquidators, Linburgh Martin and Jeff
Arkley.  Failure to do so will exclude them from receiving the
benefit of any distribution that the company will make.

Medtronic U.K. started liquidating assets on March 10, 2006.

The liquidators can be reached at:

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


OKANAGAN LIMITED: Proofs of Claim Filing Will End on June 20
------------------------------------------------------------
Creditors of Okanagan Limited are required to submit particulars
of their debts or claims by June 20, 2006, to the company's
appointed liquidators, Janet Crawshaw and Jamal Young.  Failure
to do so will exclude them from receiving the benefit of any
distribution that the company will make.

Okanagan Limited started liquidating assets on May 1, 2006.

The liquidators can be reached at:

          Janet Crawshaw
          Jamal Young
          Attention: Marguerite Britton
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


SIMCOE LIMITED: Filing of Proofs of Claim Will End on June 20
-------------------------------------------------------------
Creditors of Simcoe Limited, which is being voluntarily wound
up, are required to present proofs of claim by June 20, 2006, to
Janet Crawshaw and Jamal Young, the company's liquidators.

Simcoe Limited started liquidating assets on May 1, 2006.

Creditors must send their full names, addresses, descriptions
and the full particulars of their debts or claims, and the names
and addresses of their solicitors, if any, to the liquidator.
Failure to do so will exclude them from receiving the benefit of
any distribution that the company will make.

The liquidators can be reached at:

           Janet Crawshaw
           Jamal Young
           Attention: Marguerite Britton
           P.O. Box 1109, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949-7755
           Fax: (345) 949-7634


WHITE STAR: Sets July 27 as Last Day for Filing Proofs of Claim
---------------------------------------------------------------
Creditors of White Star Investment Company, which is being
voluntarily wound up, are required to present proofs of claim by
July 27, 2006, to Paolo Giacomelli of MBT Trustees Ltd., the
company's liquidator.

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

The liquidator can be reached at:

           Paolo Giacomelli
           MBT Trustees Ltd.
           P.O. Box 30622, SMB
           Grand Cayman, Cayman Islands
           Tel: (345) 945-8859
           Fax: (345) 949-9793/4




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


AES CORP: Forms Joint Venture With AgCert to Reduce Gas Emission
----------------------------------------------------------------
The AES Corporation and AgCert International plc disclosed the
formation of AES AgriVerde, a joint venture designed to deploy
AgCert's greenhouse gas emission reduction technology in
selected countries in Asia, Europe and North Africa.  Under the
terms of the relevant agreements, AES will maintain a majority
interest in the joint venture and plans to invest approximately
US$325 million into the joint venture over the next five years.
In addition, AES has invested approximately EUR40 million to
acquire an approximate nine percent equity interest in AgCert.

By 2012, AES AgriVerde intends to create an annual production
volume of 20 million tons of greenhouse gas emission reductions
through the reduction of methane -- a potent greenhouse
gas-emissions created by agricultural and animal farm waste.

AES AgriVerde will utilize a technology process developed by
AgCert to capture methane from agricultural and animal waste
products.  AES AgriVerde will install systems to capture this
gas and either destroy it or use it to generate electricity or
heat, reducing net greenhouse gas emissions from the manure
management process by approximately 95%.  This application
reduces emissions by preventing the animal sewage and other
agricultural waste from being disposed in large open lagoons
where it would otherwise decay, releasing large volumes of
methane.

"AES is committed to helping address climate change issues as
part of our broader alternative energy strategy," said William
Luraschi, AES Executive Vice President for Business Development,
and the head of AES' recently announced alternative energy
business.  "We believe that greenhouse gas emissions will
continue to face increasing regulation, and expect that offsets
will remain a significant component of those regulations.  This
methodology not only mitigates important environmental impacts,
it enhances our ability to meet new power needs."

In April, AES announced the formation of its alternative energy
group and plans to invest approximately US$1 billion over the
next three years in this sector.  Since October 2005, the
company has committed to approximately US$100 million in
investments that will generate over 17 million tons of emission
reductions through 2012.

"Methane is a significant contributor to climate change and is
21 times more potent than CO2," said Bill Lyons, AES Managing
Director of Climate Change and Technology Development within
AES's alternative energy group.  "Agricultural processes provide
a low cost, high volume method for producing offsets.  In
addition to its positive impacts on climate change, this
mitigation method has numerous local health benefits including,
cleaner drinking water and soil as well as reduced exposure to
mosquito-borne diseases.  We are targeting large market
opportunities with this joint venture and are excited to partner
with a quality company like AgCert."

"We are very excited to be expanding upon our strategic
relationship with AES, leveraging our technology and know how to
build a pipeline of incremental emission reductions.  The joint
venture with AES allows AgCert to rapidly deploy our
technologies in areas where AES has strong presence and permits
AgCert to continue to execute our strategy in all other parts of
the globe.  It also provides the option for AgCert to invest
further in the JV," said Bill Haskell, CEO of AgCert.

                        About AgCert

AgCert International plc was founded in 2002 to produce and sell
reductions in greenhouse gas emissions from agricultural sources
on an industrial scale.  These offsets are intended to satisfy
the requirements of the Kyoto Protocol and be capable of being
traded on the European cap and trade system, the European Union
Emissions Trading Scheme.  AgCert has significant expertise in
the use of United Nations approved methodologies for the
production of offsets in the agricultural sector from animal
waste. More information about AgCert's Greenhouse Gas Reduction
projects can be found at http://www.agcert.com

                        About AES Corp.

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

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

                        *    *    *

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


COEUR D'ALENE: Earns US$14.3 Mil. in Three Months Ended Mar. 31
---------------------------------------------------------------
Coeur D'Alene Mines Corporation reported a US$14,338,000 of net
income on US$44,854,000 of revenues for the three months ended
March 31, 2006.

At March 31, 2006, the Company's balance sheet showed
US$749,569,000 in total assets and US$247,482,000 in total
liabilities aand stockholders' equity of US$502,087,000.

Full-text copies of the Company's financial statements for the
quarter ended March 31, 2006, is available at no charge at:

               http://ResearchArchives.com/t/s?a2c

Coeur D'Alene Mines Corporation -- http://www.coeur.com/-- is
the world's largest primary silver producer, as well as a
significant, low-cost producer of gold.  The Company has mining
interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia
and Australia.

Coeur D'Alene Mines Corp.'s 1.25% Convertible Senior Notes due
2024 carry Standard & Poor's B- rating.




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


* COSTA RICA: Agricultural Exports Up 15.2% in First Quarter
------------------------------------------------------------
Costa Rica's agricultural exports increased 15.2% in the first
four months of 2006 compared to the same quarter in 2005, Fresh
Plaza reports.

According to Fresh Plaza, the increase in exports were mainly in
the pineapple and banana products.

Fresh Plaza relates that pineapple exports increased 50.1% to
US$2.574 million.

According to Fresh Plaza, pineapple exports accounted for 5.3%
of the total exports, with major destinations:

   -- United States,
   -- The Netherlands,
   -- Belgium,
   -- Italy, and
   -- Germany.

Banana exports, on the other hand, increased 17.4%, Fresh Plaza
states.  It is accountable for 7.2% of total exports.   The
product is mainly shipped to the US, Germany and the UK.

                        *    *    *

Costa Rica is rated by Moody's:

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

Fitch assigned these ratings to Costa Rica:

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

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

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




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


FALCONBRIDGE LTD: Board Endorses Inco Offer Over Xstrata's
----------------------------------------------------------
Falconbridge Limited disclosed that its Board of Directors has
conducted its assessment of the offer by Xstrata plc to acquire
the outstanding common shares of Falconbridge.

The assessment was completed with the assistance of external
legal and financial advisors and focused on both the financial
and non-financial aspects of the offer from Xstrata.
Falconbridge's Board has decided to continue to endorse the Inco
offer and recommends that Falconbridge shareholders tender their
shares to the Inco offer.

Given the conditional nature of Xstrata's offer, including both
the requirement for Xstrata to receive the approval of its own
shareholders, which will not be obtained until the end of June
at the earliest, and Investment Canada approval, significant
conditions have yet to be satisfied that would permit the offer
to proceed.

In addition, though Xstrata's bid is expressed to be for all
Falconbridge shares, Xstrata has reserved the right to take up
any number of shares tendered to it.  When combined with its
current holding of 20% of Falconbridge, the acquisition of a
further small number of shares may well result in Xstrata
acquiring effective control of Falconbridge without acquiring
all of the shares.

The Falconbridge Board of Directors determined that Xstrata's
offer is not a "superior proposal" under the terms of the
Support Agreement entered into with Inco and will reaffirm its
recommendation of the Inco bid in a Directors Circular
responding to the Xstrata offer.  The Directors Circular will be
sent to shareholders in the near future.

"Clearly, one of the strengths of the Inco offer is that it
gives Falconbridge shareholders almost 50% participation in the
growth of the New Inco, a company that would have one the best
portfolios of development projects in the base metals industry
at a time when the fundamental outlook is so positive," said
Derek Pannell, Falconbridge's Chief Executive Officer.

The Board remains committed to pursue the combination proposed
by Inco and will be seeking the outstanding regulatory approvals
from the U.S. Department of Justice and the European Commission.

                       About Xstrata

Xstrata plc -- http://www.xstrata.com/-- is a major global
diversified mining group, listed on the London and Swiss stock
exchanges.  The Group is and has approximately 24,000 employees
worldwide, including contractors.

Xstrata maintains a meaningful position in six major
international commodity markets: copper, coking coal, thermal
coal, ferrochrome, vanadium and zinc, with additional exposures
to gold, lead and silver. The Group's operations and projects
span four continents and nine countries: Australia, South
Africa, Spain, Germany, Argentina, Peru, Colombia, the U.K. and
Canada.

                         About Inco

Inco Limited -- http://www.inco.com/-- is the world's #2
producer of nickel, which is used primarily for manufacturing
stainless steel and batteries.  Inco also mines and processes
copper, gold, cobalt, and platinum group metals.  It makes
nickel battery materials and nickel foams, flakes, and powders
for use in catalysts, electronics, and paints.  Sulphuric acid
and liquid sulphur dioxide are produced as byproducts.  The
company's primary mining and processing operations are in
Canada, Indonesia, and the UK.

                     About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a
leading copper and nickel company with investments in fully
integrated zinc and aluminum assets.  Its primary focus is the
identification and development of world-class copper and nickel
orebodies.  It employs 14,500 people at its operations and
offices in 18 countries.  The Company owns nickel mines in
Canada and the Dominican Republic and operates a refinery and
sulfuric acid plant in Norway.  It is also a major producer of
copper (38% of sales) through its Kidd mine in Canada and its
stake in Chile's Collahuasi mine and Lomas Bayas mine.  Its
other products include cobalt, platinum group metals, and zinc.

                        *    *    *

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


FALCONBRIDGE LTD: Inco Venture Identifies US$550M in Synergies
--------------------------------------------------------------
Falconbridge Limited disclosed that Inco Limited indicated that
operations personnel of both companies have now jointly
identified the potential to realize estimated average annual
pre-tax operating and corporate synergies of approximately
US$550 million, an increase of US$200 million from the estimated
synergies at the time of the announcement of the Falconbridge
transaction.

This increase in the synergies estimate is attributable to
developed improvements in the Inco-Falconbridge integration plan
and to changes in commodity price assumptions as a result of the
improved commodity market outlook since October 2005.  The net
present value of the estimated annual average pre-tax run-rate
operating and corporate synergies of US$550 million, using a 7%
discount rate, is approximately US$3.5 billion on an after-tax
basis.

                         About Inco

Inco Limited -- http://www.inco.com/-- is the world's #2
producer of nickel, which is used primarily for manufacturing
stainless steel and batteries.  Inco also mines and processes
copper, gold, cobalt, and platinum group metals.  It makes
nickel battery materials and nickel foams, flakes, and powders
for use in catalysts, electronics, and paints.  Sulphuric acid
and liquid sulphur dioxide are produced as byproducts.  The
company's primary mining and processing operations are in
Canada, Indonesia, and the UK.

                    About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a
leading copper and nickel company with investments in fully
integrated zinc and aluminum assets.  Its primary focus is the
identification and development of world-class copper and nickel
orebodies.  It employs 14,500 people at its operations and
offices in 18 countries.  The Company owns nickel mines in
Canada and the Dominican Republic and operates a refinery and
sulfuric acid plant in Norway.  It is also a major producer of
copper (38% of sales) through its Kidd mine in Canada and its
stake in Chile's Collahuasi mine and Lomas Bayas mine.  Its
other products include cobalt, platinum group metals, and zinc.

                        *    *    *

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




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


* EL SALVADOR: Okays Revision of Free Trade Accord with Panama
--------------------------------------------------------------
El Salvador agreed on a procedure with Panama's Commerce and
Industry Ministry to revise the 2003 bilateral free trade
agreement Xinhua News reports.

Xinhua relates that Minister Alejandro Ferrer of Panama and
Gerardo Sol Mixto -- El Salvador's ambassador -- signed the
deal, which established a zero tariff for the first US$250,000
worth of all cheese products traded per year, and a variable
system of tariffs for cheese products that go beyond the quota.

According to Xinhua, the accord is yet to be ratified by the
legal authorities in both Panama and El Salvador.

Producers of cheese will be able to increase their exports and
Panam will continue to promote trade through this kind of deals,
Minister Ferrer tld Xinhua.

                        *    *    *

Fitch Ratings assigned these ratings on Panama:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BBB      Apr.  8, 2005
   Long Term IDR      BB+      Dec. 14, 2005
   Short Term IDR       B      Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating     BB+      Dec. 14, 2005

                        *    *    *

Fitch Ratings assigned these ratings on El Salvador:

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


* EL SALVADOR: Trade Talks with Canada to Conclude by Yearend
-------------------------------------------------------------
Talks on the completion of the trade agreement between
Guatemala, Canada, El Salvador, Honduras and Nicaragua will
conclude at the end of 2006, Mauricio Rosales Rivera, the
ambassador of El Salvador, told the Embassy.

Ambassador Rivera informed the Embassy, "We are hopeful that
negotiations will finish this year."  According to him, the
coming seven months are a break or make period.

To prolong talks into 2007 would be a major disappointment, the
ambassador was quoted by the Embassy as saying.  "They will not
suspend and start again, and so forth.  This is it."

The Embassy recalls that the countries' representatives met on
May 23 this year -- the first meeting since the 10th round of
official talks in February 2004.  The representatives are
scheduled to meet again in July.

The alliance was called the e Canada-Central America Four aka
CA4, Embassy states.  It is a treaty to enhance the flow of
Canadian goods and investment into Central America.

According to the Embassy, the dialogue was launched in 2001 in
Canada by then-Liberal trade minister Pierre Pettigrew.
However, it was halted when the Central American nations turned
their attention to reaching a trade pact with the United States
instead.

Embassy states that an accord with Canada has now been pushed,
but Mr. Rosales warns that political will could extinguish it
unless negotiators act quickly to finalize things.

Mr. Rosales revealed to Embassy that Canada's demands for market
access are much tougher than what the US had been asking.  The
ambassador, however, declined to reveal them to protect the
confidential bargaining positions of each nation.

Mr. Rosales is against opening up of the clandestine talks and
the publication of drafting texts, as what the human rights,
labor and environmental groups in Latin America and Canada are
calling for, Embassy reports.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

Fitch also rated Guatemala's senior unsecured bonds:

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

                        *    *    *

Fitch Ratings assigned these ratings on El Salvador:

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

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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

                        *    *    *

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




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


* GUATEMALA: Launches Negotiations on Trade Alliance with Brazil
----------------------------------------------------------------
The governments of Guatemala and Brazil began bilateral talks
which, according to Guatemalan Economy Minister Marcio Cuevas,
are aimed at setting off both of the countries' trade exchange
toward future negotiations, Prensa Latina reports.

The talks, says Prensa Latina, will focus on Brazilian
cooperation with Guatemala in energy as well as in production of
renewable fuels.

Brazil will seek for possibility in increasing investments in
Guatemala, sighting on the development of a bilateral free trade
accord, according to Prensa Latina.

Guatemala is planning to reach strategic alliances with Brazil
in different economic sectors during the negotiations, Prensa
Latina relates.

Minister Cuevas told Prensa Latina that the agenda includes:

  -- ministerial encounters, and

  -- seminars on business opportunities, promotion of exports
     and investments.

Prensa Latina states that Luiz Fernando Furlan -- the minister
of development, industry and trade -- heads the Brazilian
mission composed of:

  -- a representative of the energy ministry, and
  -- 50 entrepreneurs.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

Fitch also rated Guatemala's senior unsecured bonds:

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

                        *    *    *

Fitch Ratings assigned these ratings on Brazil:

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


* GUATEMALA: Trade Talks with Canada Set to Conclude by Yearend
---------------------------------------------------------------
Talks on the completion of the trade agreement between
Guatemala, Canada, El Salvador, Honduras and Nicaragua will
conclude at the end of 2006, Mauricio Rosales Rivera, the
ambassador of El Salvador, told the Embassy.

Ambassador Rivera informed the Embassy, "We are hopeful that
negotiations will finish this year."  According to him, the
coming seven months are a break or make period.

To prolong talks into 2007 would be a major disappointment, the
ambassador was quoted by the Embassy as saying.  "They will not
suspend and start again, and so forth.  This is it."

The Embassy recalls that the countries' representatives met on
May 23 this year -- the first meeting since the 10th round of
official talks in February 2004.  The representatives are
scheduled to meet again in July.

The alliance was called the e Canada-Central America Four aka
CA4, Embassy states.  It is a treaty to enhance the flow of
Canadian goods and investment into Central America.

According to the Embassy, the dialogue was launched in 2001 in
Canada by then-Liberal trade minister Pierre Pettigrew.
However, it was halted when the Central American nations turned
their attention to reaching a trade pact with the United States
instead.

Embassy states that an accord with Canada has now been pushed,
but Mr. Rosales warns that political will could extinguish it
unless negotiators act quickly to finalize things.

Mr. Rosales revealed to Embassy that Canada's demands for market
access are much tougher than what the US had been asking.  The
ambassador, however, declined to reveal them to protect the
confidential bargaining positions of each nation.

Mr. Rosales is against opening up of the clandestine talks and
the publication of drafting texts, as what the human rights,
labor and environmental groups in Latin America and Canada are
calling for, Embassy reports.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

Fitch also rated Guatemala's senior unsecured bonds:

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

                        *    *    *

Fitch Ratings assigned these ratings on El Salvador:

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

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

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




=========
H A I T I
=========


* HAITI: Parliament Approves Program on Economic Stabilization
--------------------------------------------------------------
The two parliamentary chambers of Haiti have approved a program
presented by Prime Minister Jacques Edouard Alexis to stabilize
the country's economy, Prensa Latina reports.

Prensa Latina states that the Senate and the Lower Chamber
unanimously ratified Mr. Alexis, who is newly appointed by
President Rene Preval.

According to Prensa Latina, the legislature acquiesced on the
need to implement the proposal.

Prensa Latina relates that the team up between President Preval
and Mr. Alexis will focus on creating the institutions needed to
achieve stability in the nation and generate new sources of
employment.

The new administration is faced with extracting the country from
abject poverty, high violence rates and serious consequences
left by the AIDS epidemic, Prensa Latina states.

Prensa Latina adds that the funds for carrying out the
stabilization have been held up by the international community,
mainly by the United States.  The funds would be released if the
domestic crisis ends.  This, however, may be resolved as
President Preval is supported by the majority of citizens who
believe in his capability in improving the quality of life in
Haiti.

                        *    *    *

As reported in the Troubled Company Reporter on April 12, 2006,
president-elect Preval appealed for urgent international help to
spur development in the Western Hemisphere's poorest country and
called on all Haitians to join in a national dialogue to promote
peace, democracy and stability.

"Poverty, widespread unemployment, the state of dilapidation of
basic infrastructures that are necessary for development,
chronic insecurity - these are all the major challenges to be
faced by the next government," President Preval was quoted by
the Associated Press as saying.

President Preval explained that increased international
assistance is "indispensable" to Haiti's economic recovery, to
create conditions for investment and job creation, to improve
social services, and to reform democratic institutions including
parliament, municipalities, the judicial system, and the
national police, the AP relates.




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


* HONDURAS: Trade Talks with Canada Set to Conclude by Yearend
--------------------------------------------------------------
Talks on the completion of the trade agreement between
Guatemala, Canada, El Salvador, Honduras and Nicaragua will
conclude at the end of 2006, Mauricio Rosales Rivera, the
ambassador of El Salvador, told the Embassy.

Ambassador Rivera informed the Embassy, "We are hopeful that
negotiations will finish this year."  According to him, the
coming seven months are a break or make period.

To prolong talks into 2007 would be a major disappointment, the
ambassador was quoted by the Embassy as saying.  "They will not
suspend and start again, and so forth.  This is it."

The Embassy recalls that the countries' representatives met on
May 23 this year -- the first meeting since the 10th round of
official talks in February 2004.  The representatives are
scheduled to meet again in July.

The alliance was called the e Canada-Central America Four aka
CA4, Embassy states.  It is a treaty to enhance the flow of
Canadian goods and investment into Central America.

According to the Embassy, the dialogue was launched in 2001 in
Canada by then-Liberal trade minister Pierre Pettigrew.
However, it was halted when the Central American nations turned
their attention to reaching a trade pact with the United States
instead.

Embassy states that an accord with Canada has now been pushed,
but Mr. Rosales warns that political will could extinguish it
unless negotiators act quickly to finalize things.

Mr. Rosales revealed to Embassy that Canada's demands for market
access are much tougher than what the US had been asking.  The
ambassador, however, declined to reveal them to protect the
confidential bargaining positions of each nation.

Mr. Rosales is against opening up of the clandestine talks and
the publication of drafting texts, as what the human rights,
labor and environmental groups in Latin America and Canada are
calling for, Embassy reports.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

Fitch also rated Guatemala's senior unsecured bonds:

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

                        *    *    *

Fitch Ratings assigned these ratings on El Salvador:

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

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

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




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


MIRANT CORP: Brings NRG Takeover Bid Dispute to Delaware Court
--------------------------------------------------------------
Mirant Corporation sought a court order in Delaware directing
NRG Energy Inc. not to obstruct its unsolicited takeover bid.

Mirant, according to the Associated Press, claimed that the New
Jersey based energy producer is unfairly rejecting its nearly
US$8 billion takeover bid by using a "transaction ploy" to turn
aside the offer by alleging that Mirant is using confidential
information from NRG's former financial adviser.

In the lawsuit, Sophia Pearson of Bloomberg News reports that
Mirant also accused NRG directors of breaching their fiduciary
duties to stockholders by not considering the offer.

Mirant is asking a judge to declare that it isn't barred from
attempting the takeover, and that NRG cannot rely on the alleged
breach of confidentiality as the sole basis to reject the offer,
the Bloomberg News said.

As reported in the Troubled Company Reporter on May 31, 2006,
Mirant made a proposal to acquire NRG at a premium of
approximately 33% to NRG's share price as of May 30, 2006.  The
proposal would be immediately accretive to the pro forma free
cash flow per share of Mirant.  Mirant received a financing
commitment from JPMorgan of approximately US$11.5 billion
for the transaction.

Mirant said that NRG flatly rejected the proposal without
engaging in any discussions.  Mirant continues to believe that
the proposal creates significant value for the owners of both
companies and has decided to make its proposal public in a
letter to NRG's board of directors.

In a press statement covered by the Troubled Company Reporter on
May 31, 2006, NRG said it rejected Mirant's hostile offer and
declined to enter into talks because the proposal undervalues
NRG.

                       About NRG Energy

Headquartered in Princeton, New Jersey, NRG Energy, Inc. --
http://www.nrgenergy.com/-- currently owns and operates a
diverse portfolio of power-generating facilities, primarily in
the Northeast, South Central and Western regions of the United
States.  Its operations include baseload, intermediate, peaking,
and cogeneration facilities, thermal energy production and
energy resource recovery facilities.  NRG also has ownership
interests in generating facilities in Australia and Germany.

                         About Mirant

Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally.  Mirant
Corporation filed for chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03-46590), and emerged under the terms of a
confirmed Second Amended Plan on Jan. 3, 2006.  Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.  When the Debtors filed for
protection from their creditors, they listed US$20,574,000,000
in assets and US$11,401,000,000 in debts.

At Dec. 2, 2005, Moody's Investors Service assigned a B1 long-
term corporate family rating to Mirant Corp.




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


* NICARAGUA: Trade Talks with Canada Set to Conclude by Yearend
---------------------------------------------------------------
Talks on the completion of the trade agreement between
Guatemala, Canada, El Salvador, Honduras and Nicaragua will
conclude at the end of 2006, Mauricio Rosales Rivera, the
ambassador of El Salvador, told the Embassy.

Ambassador Rivera informed the Embassy, "We are hopeful that
negotiations will finish this year."  According to him, the
coming seven months are a break or make period.

To prolong talks into 2007 would be a major disappointment, the
ambassador was quoted by the Embassy as saying.  "They will not
suspend and start again, and so forth.  This is it."

The Embassy recalls that the countries' representatives met on
May 23 this year -- the first meeting since the 10th round of
official talks in February 2004.  The representatives are
scheduled to meet again in July.

The alliance was called the e Canada-Central America Four aka
CA4, Embassy states.  It is a treaty to enhance the flow of
Canadian goods and investment into Central America.

According to the Embassy, the dialogue was launched in 2001 in
Canada by then-Liberal trade minister Pierre Pettigrew.
However, it was halted when the Central American nations turned
their attention to reaching a trade pact with the United States
instead.

Embassy states that an accord with Canada has now been pushed,
but Mr. Rosales warns that political will could extinguish it
unless negotiators act quickly to finalize things.

Mr. Rosales revealed to Embassy that Canada's demands for market
access are much tougher than what the US had been asking.  The
ambassador, however, declined to reveal them to protect the
confidential bargaining positions of each nation.

Mr. Rosales is against opening up of the clandestine talks and
the publication of drafting texts, as what the human rights,
labor and environmental groups in Latin America and Canada are
calling for, Embassy reports.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

Fitch also rated Guatemala's senior unsecured bonds:

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

                        *    *    *

Fitch Ratings assigned these ratings on El Salvador:

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

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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

                        *    *    *

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
===========


BALLY TOTAL: Will Not Submit Stockholder Rights Plan for Voting
---------------------------------------------------------------
Bally Total Fitness Holding Corporation disclosed that its Board
of Directors decided not to submit the Company's Stockholder
Rights Plan to a stockholder vote.  Accordingly, the Plan will
expire pursuant to its terms on July 15, 2006.

Additionally, the Company confirmed that it remains on track to
file its 2005 10-K report and quarterly report for the three
months ended March 31, 2006, before the July 10 expiration of
the waiver period obtained from the Company's senior bank
lenders and bondholders.

Separately, the Company confirmed that its strategic
alternatives process is proceeding.

                      About Bally Total

Bally Total Fitness -- http://www.ballyfitness.com/-- is the
largest and only U.S. commercial operator of fitness centers,
with approximately four million members and 390 facilities
located in 29 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Crunch Fitness(SM),
Gorilla Sports(SM), Pinnacle Fitness(R), Bally Sports Clubs(R)
and Sports Clubs of Canada(R) brands.

                        *    *    *

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Total Fitness Holding Corp., including the 'CCC' corporate
credit rating, on CreditWatch with developing implications,
where they were placed on Dec. 2, 2005.  The CreditWatch update
followed Bally's announcement that it will not meet the
March 16, 2006, deadline for filing its annual report on SEC
Form 10-K for the year ending Dec. 31, 2005.


BANCO INBURSA: Fitch Affirms C Individual Rating
------------------------------------------------
Fitch Ratings affirmed these ratings of Mexico's Banco Inbursa,
with a Stable Outlook:

   -- Foreign currency long-term Issuer Default Rating: 'BBB';
   -- Foreign currency short-term IDR: 'F3';
   -- Local currency long-term IDR: 'BBB;'
   -- Local currency short-term IDR: 'F2';
   -- Individual: 'C';
   -- Support '4';
   -- National-scale long-term: 'AA+(mex)'; and
   -- National-scale short-term 'F1+(mex)'.

Inbursa's ratings are based on its sound capital adequacy by
international standards, ample liquidity, and historically
strong asset quality ratios.  The ratings also reflect its good,
though volatile, performance since its establishment in 1993,
and higher than average loan concentrations and market risk
appetite.

Inbursa has consistently recorded positive, though volatile,
earnings, as a result of hefty trading positions, both in the
form of securities and derivatives.  Positively, its flexible
cost structure and ample capital base provide some comfort to
absorb unstable trading results. Credit risks are managed
satisfactorily and it has historically maintained strong asset
quality.  At end-2005, Inbursa's non-performing loans ratio was
0.78%, with sizeable loan loss reserve of 17.1 times NPLs, or
13.4% of total loans.  Given its corporate nature and its
ownership structure, the bank's loan portfolio is concentrated
and has significant related-party lending.

Inbursa's exposure to market risk is heavy given its high-yield
corporate and sovereign securities holdings as well as sizeable
derivatives (mainly interest rate swaps) for trading purposes.
The bank's historically wholesale-funding structure is rapidly
changing with the introduction of deposit products targeted at
higher and middle-income brackets of the population.  The bank
has shown ample liquidity while its capital adequacy is sound by
international standards and provides a sizeable cushion to
absorb the volatile nature of its activities.

Banco Inbursa was Mexico's seventh largest commercial bank
ranked by total assets and loans at end-2005, with a market
share of 3.4% and 4.8%, respectively (fourth largest by equity).
Banco Inbursa is 99.9%-owned by Grupo Financiero Inbursa.
Roughly 70% of GFInbursa is held by a group of Mexican investors
led by the Slim family, while the balance is widely held.
GFInbursa is a fairly diversified financial company with
subsidiaries in these sectors:

   -- banking,
   -- insurance,
   -- leasing,
   -- mutual funds,
   -- bonding and
   -- brokerage.

In turn, Banco Inbursa has subsidiaries involved in pension fund
management, real estate and venture capital.  The bank accounts
for roughly 90% of GFInbursa's assets.  Although the bank has a
corporate focus (around 14% market share in commercial lending
in 2005), it also offers a range of retail and investment
banking services.  Its branch network at end-2005 was composed
of 73 full-service offices, 560 ATMs, and 126 mini-branches
mainly located in the chain of retail stores owned by the same
group of shareholders.


EL POLLO: Holders Grant Requisite Consents to Amend Indentures
--------------------------------------------------------------
El Pollo Loco Inc. and EPL Intermediate Inc. disclosed that in
connection with the tender offer and consent solicitation for
its 11-3/4% Senior Notes due 2013 and by Intermediate for its
14-1/2% Senior Discount Notes due 2014, a majority of holders in
principal amount of both notes have provided the requisite
consents to amend the indentures governing the Notes.

As of May 30, 2006, El Pollo Loco had received tenders and
consents for US$124,726,000 in aggregate principal amount of the
11-3/4% Notes, representing approximately 99.93% of the
outstanding Notes and Intermediate had received tenders and
consents for US$39,342,000 in aggregate principal amount of the
14-1/2% Notes, representing 100% of the outstanding Notes.

Holders may no longer withdraw Notes that were previously or
hereafter tendered, except as described in the Offer to Purchase
and Consent Solicitation Statement, dated May 15, 2006.  The
tender offer is scheduled to expire at 5 p.m., New York City
time, on July 12, 2006, unless extended or earlier terminated.

Holders of the 11-3/4% Notes who tendered their Notes prior to
the consent deadline will receive a consent payment of US$50 per
US$1,000 principal amount of the 11-3/4% Notes validly tendered
and accepted for purchase, and Holders of the 14-1/2% Notes who
tendered their Notes prior to the Consent Deadline will receive
a consent payment of US$50 per US$1,000 of accreted value of the
14-1/2% Notes validly tendered and accepted for purchase, in
each case in addition to the tender offer consideration as
described in the Offer to Purchase plus, in the case of the
11-3/4% Notes, accrued and unpaid interest on the 11-3/4% Notes.

On the date of the Consent Deadline, El Pollo Loco and
Intermediate executed a supplemental indenture to the indentures
governing each of the 11-3/4% Notes and the 14-1/2% Notes which
supplemental indentures, among other things, eliminated
substantially all of the restrictive covenants, certain events
of default provisions and certain conditions to defeasing the
Notes in the indentures.  The supplemental indentures will
become operative when the Notes are accepted for payment by each
of El Pollo Loco and Intermediate pursuant to the Offer to
Purchase.

The Offer is subject to the satisfaction of certain conditions,
including:

   -- consummation of the Common Stock Offering,
   -- El Pollo Loco entering into a new credit facility,
   -- a requisite consent condition,
   -- minimum tender condition,
   -- condition that each of the Offers be consummated and
   -- that each of El Pollo Loco and Intermediate receives
      consents from a majority of holders of each of the
      11-3/4% Notes and the 14-1/2% Notes.

The detailed terms and conditions of the Offer are contained in
the Offer to Purchase.  Requests for documents may be directed
to the information agent for the offer at:

         Global Bondholder Services Corporation,
         Tel: 866-937-2200.

Additional information concerning the Offer may be obtained by
contacting the dealer manager and solicitation agent for the
offer at:

         Merrill Lynch, Pierce, Fenner & Smith Incorporated,
         Tel: 212-449-4914 (collect)
              888-ML4-TNDR (U.S. toll-free)

                       About El Pollo Loco

El Pollo Loco -- http://www.elpolloloco.com/-- pronounced
"L Po-yo Lo-co" and Spanish for "The Crazy Chicken," is the
nation's leading quick-service restaurant chain specializing in
flame-grilled chicken and Mexican-inspired entrees.  Founded in
Guasave, Mexico, in 1975, El Pollo Loco's long-term success
stems from the unique preparation of its award-winning "pollo"
-- fresh chicken marinated in a special recipe of herbs, spices
and citrus juices passed down from the founding family.

                        *    *    *

As reported in the Troubled Company Reporter on May 23, 2006,
Standard & Poor's Ratings Services expected to raise its
corporate credit rating on El Pollo Loco Inc. to 'B+' from 'B'
upon the successful completion of the company's planned IPO.
S&P said the outlook is stable.

Standard & Poor's also assigned a 'B+' rating, same as the
expected corporate credit rating, to the company's planned
US$200 million senior secured bank loan.  A recovery rating of
'2' is also assigned to the loan, indicating the expectation for
substantial (80%-100%) recovery of principal in the event of a
payment default.

                        *    *    *

Moody's Investors Service upgraded El Pollo Loco, Inc.'s
corporate family rating to B1 from B3 and assigned B1 ratings to
the company's proposed US$200 million senior secured credit
facility following the company's proposed initial public
offering of shares of its common stock and planned refinancing
of its existing debt.  At the same time, the SGL-2 Speculative
Grade Liquidity rating was affirmed.  The outlook remains
stable.


GENERAL MOTORS: Troy Clarke Named President of GM North America
---------------------------------------------------------------
Troy Clarke has been appointed president of GM North America and
GM group vice president, effective July 1, General Motors
Chairman and CEO Rick Wagoner reported on May 30, 2006.

Mr. Clarke, president of GM Asia Pacific since 2004, will work
closely with Mr. Wagoner in implementing the GMNA turnaround
plan, and will oversee day-to-day operations of GM's largest
sales region.  Mr. Wagoner has been leading GMNA since April
2005 to develop and drive the region's turnaround strategy.

"While much work remains to be done, we have reached several
significant milestones in our turnaround plan over the past
year," Mr. Wagoner said.  "This is the right time to turn the
region's day-to-day operations over to Troy, who has the
experience and skills to help lead the GMNA team as it continues
this unprecedented restructuring.  Troy has a track record of
success in general management, manufacturing and labor relations
in the United States and globally, which will be invaluable in
his new assignment."

Mr. Wagoner said he and his senior leadership team will continue
to be actively involved in executing the next key steps in the
GMNA turnaround plan, including:

   * a successful resolution of the Delphi reorganization;

   * completion of the accelerated attrition and capacity-
     reduction programs, and achievement of the $7 billion
     structural cost-reduction target;

   * flawless launches of key new cars, trucks and advanced
     technologies; and

   * ongoing refinement and acceleration of GM's brand and
     product-focused marketing strategy.

David "Nick" Reilly, a GM vice president and president and CEO
of GM Daewoo Auto & Technology Co. in South Korea, will replace
Mr. Clarke as president of GM Asia Pacific and will become a GM
group vice president, also effective July 1.  Mr. Reilly also
will succeed Mr. Clarke as chairman of the GMDAT Board of
Directors.  A replacement for Mr. Reilly as CEO of GMDAT will be
announced at a later date.

"Nick has demonstrated his managerial strength, most recently in
growing GM Daewoo into a profitable enterprise that has quickly
become a key part of our global expansion plans, well in advance
of what was generally expected," Mr. Wagoner said.  "The success
of GM Daewoo is a tribute to Nick's leadership and commitment."

Vice Chairman John Devine, 62, who reported in December that he
planned to retire this year, has decided to make his retirement
effective June 1, Mr. Wagoner said.

"We all owe John a tremendous debt of gratitude for his vast
contributions to GM over the past five years," Mr. Wagoner said.
"John took on a number of challenging and important assignments
during his tenure as vice chairman and chief financial officer.
His extensive experience and expertise in the auto business,
along with the respect he enjoys on Wall Street, enabled him to
contribute to our turnaround in an exceptional manner."

Mr. Clarke, 51, joined GM at the Pontiac division in 1973 and
over the succeeding decade held several engineering and
manufacturing assignments there.  He was named director of
manufacturing for GM de Mexico in 1997, and president and
managing director in 1998, when he also became a corporate vice
president.

In 2001, Mr. Clarke was appointed vice president of labor
relations in Detroit, and he became group vice president of
manufacturing and labor relations in 2002.  He served as GM's
chief negotiator during the 2003 labor negotiations in North
America.

Mr. Reilly, 56, has been at GM Daewoo since 2002, when he was
named to lead the transition team for the company's formation.
He has been a GM vice president since 1997.

He began his GM career in 1975 at the former Detroit Diesel
Allison Division in the United Kingdom.  From 1978 to 1984, he
held assignments in Belgium, the United States and Mexico.
After serving in operations and manufacturing posts with
Vauxhall and the Isuzu joint venture in Luton, England, Mr.
Reilly became vice president of quality and reliability for GM
Europe in Zurich, Switzerland.

Mr. Reilly returned to the United Kingdom in 1996 as chairman
and managing director of Vauxhall, and returned to Zurich in
2001 as vice president of sales, marketing and after-sales for
GME.

                     About General Motors

General Motors Corp. -- http://www.gm.com/-- the world's
largest automaker, has been the global industry sales leader for
75 years.  Founded in 1908, GM today employs about 327,000
people around the world.  With global headquarters in Detroit,
GM manufactures its cars and trucks in 33 countries including
Mexico.  In 2005, 9.17 million GM cars and trucks were sold
globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.  GM operates one of the world's leading finance
companies, GMAC Financial Services, which offers automotive,
residential and commercial financing and insurance.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

                        *    *    *

As reported in the Troubled Company Reporter on May 9, 2006,
Moody's Investors Service placed the B3 senior unsecured rating
of General Motors Corporation under review for possible
downgrade, and affirmed the company's Corporate Family Rating at
B3.  The rating actions are in response to the company's
disclosure that it is pursuing various options to replace or
amend its existing US$5.6 billion bank credit facility, and that
these options could result in providing its bank lenders with a
security interest in certain GM assets.  GM anticipates that any
credit facility replacement or amendment will be completed by
the end of the second quarter or early in the third quarter.




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


GRUPO FINANCEIRO: Net Profits Drop 7.2% in First Quarter 2006
------------------------------------------------------------
Grupo Financiero Continental SA said in a filing with the
Panamanian Stock Exchange that its net profits amounted to
US$11.5 million in the first quarter of 2006, a 7.2% decrease
from the US$12.3 million recorded in the same quarter in 2005.

Dow Jones Newswires reports that the company said the decrease
is due to soft commission income and rising costs.

The company's net lending revenues reached US$22.8 million -- a
6.8% growth, Dow Jones states.  Net commission income, however,
dropped 28.4% to US$4.2 million.

According to Dow Jones, general and administration expenses
increased 6.7% to US$13.8 million.

The company posted a 19.9% growth in assets -- about US$3.06
billion.  Loans rose 24.5% to US$2.02 billion and deposits
amounted to US$1.73 billion, incurring a 17.8% boost, Dow Jones
reports.

                        *    *    *

As reported in the Troubled Company Reporter on May 10, 2006,
Fitch Ratings affirms these ratings of Grupo Financiero
Continental:

   -- Long-term Issuer Default Rating: BBB-;
   -- Short-term: F3;
   -- Individual: C;
   -- Support: 5.

The Outlook is Stable.


* PANAMA: Okays Revision of Free Trade Accord with El Salvador
--------------------------------------------------------------
Panama's Commerce and Industry Ministry agreed on a procedure
with El Salvador to revise the bilateral free trade agreement of
April 11, 2003, the Commerce Ministry of Panama was quoted by
Xinhua News as saying.

Xinhua relates that Minister Alejandro Ferrer of Panama and
Gerardo Sol Mixto -- El Salvador's ambassador -- signed the
deal, which established a zero tariff for the first US$250,000
worth of all cheese products traded per year, and a variable
system of tariffs for cheese products that go beyond the quota.

According to Xinhua, the accord is yet to be ratified by the
legal authorities in both Panama and El Salvador.

Producers of cheese will be able to increase their exports and
Panam will continue to promote trade through this kind of deals,
Minister Ferrer tld Xinhua.

                        *    *    *

Fitch Ratings assigned these ratings on Panama:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BBB      Apr.  8, 2005
   Long Term IDR      BB+      Dec. 14, 2005
   Short Term IDR       B      Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating     BB+      Dec. 14, 2005

                        *    *    *

Fitch Ratings assigned these ratings on El Salvador:

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




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


ADELPHIA: Court Disallows Lenders' Multi-Billion Interest Claim
---------------------------------------------------------------
The Honorable Robert E. Gerber of the U.S. Bankruptcy Court for
the Southern District of New York sustained the objection of
Adelphia Communications Corporation, its debtor-affiliates and
the Official Committee of Unsecured Creditors against claims for
additional interest asserted by the administrative agents for
six of the Debtors' prepetition credit facilities, on behalf of
the lenders of those facilities.

In its 26-page decision, Judge Gerber finds, among others:

    (a) that the Debtors' taking of an accrual for liabilities
        that might be imposed with respect to Grid Interest was
        focused only on financial accounting obligations, with a
        mindset based on the importance of conservative
        accounting, particularly after the excesses of the Rigas
        era;

    (b) no evidence that the Debtors' accounting personnel
        intended to waive any defenses the Debtors might have to
        those claims, and finds no intent to waive those
        defenses;

    (c) that the Debtors did not waive their defenses to bank
        lender claims for the additional interest;

    (d) that the bank lenders' actions too were based solely on
        financial accounting concerns, and that there is no
        indication that the bank lenders intended to waive
        claims for the recovery of sums that they did not
        accrue; and

    (e) that the bank lenders did not waive their claims to the
        additional interest sought.

The Credit Facilities are:

     1. Century-TCI Facility -- dated as of December 3, 1999,
        among Century-TCI California, L.P., certain lenders and
        Citibank, N.A., as the Administrative Agent;

     2. UCA-HHC Facility -- dated as of May 6, 1999, among
        Hilton Head Communications, L.P., UCA Corp. and certain
        Borrowers, various Lenders and Wachovia Bank, N.A., as
        the Administrative Agent;

     3. FrontierVision Facility -- a second amended and restated
        credit agreement dated as of December 19, 1997, among
        FrontierVision Operating Partners, L.P., various Lenders
        and JP Morgan Chase Bank, as the Administrative Agent;

     4. The Parnassos Facility -- dated as of December 30, 1998
        among Parnassos, L.P., various Lenders and The Bank of
        Nova Scotia, as the Administrative Agent;

     5. The Century Facility -- dated as of April 14, 2000,
        among Century Cable Holdings LLC and certain other
        Borrowers, various Lenders and Bank of America, N.A., as
        Administrative Agent; and

     6. The HVA Facility -- amended and restated credit
        agreement dated as of March 29, 1996, among Highland
        Video Associates, L.P., and Global Acquisition Partners,
        L.P., various Lenders and BNS as the Administrative
        Agent.

The Debtors are also a party to the Olympus Facility dated as of
September 28, 2001, among Olympus Cable Holdings, LLC, and
certain Borrowers, various Lenders and Bank of Montreal, as
Administrative Agent.  But BMO did not seek additional interest
in the proof of claim it filed on behalf of the lenders of the
Olympus Facility.

Representing the ACOM Debtors, Marc Abrams, Esq., at Willkie
Farr & Gallagher LLP, in New York, related that in January 2004,
the Administrative Agents filed these claims for the principal
and interest under the Credit Facilities:

    Claimant          Claim No.             Claim Amount
    --------          ---------             ------------
    BMO                 11158           US$1,265,000,000
    BNS                 13383               undetermined
    BNS                 13384                    623,000
    BofA                15928              2,480,000,000
    Citibank             8810              1,000,000,000
    JP Morgan            9888                617,312,500
    Wachovia            11204                831,375,000

Mr. Abrams told the Court that the Lenders have received
approximately US$1,500,000,000 in postpetition adequate
protection payments with respect to interest charges under the
very same Credit Facilities used by the Rigas family to defraud
the Debtors.

Moreover, the Lenders will have their claims for principal and
interest on the Credit Facilities paid in full under the
Debtors' proposed plan of reorganization even though the ACOM
Debtors never received the benefits of at least US$3,000,000,000
of those funds, Mr. Abrams added.

Notwithstanding the extraordinary benefits they have received,
the Administrative Agents amended their proofs of claim
asserting that the compliance certificate delivered to them were
not accurate, and thus the interest rates that they would have
charged the ACOM Debtors under the certain grid pricing
schedules could have been higher than the interest rates
actually charged, resulting in approximately US$300,000,000 of
additional interest charges, Mr. Abrams related.  The
Administrative Agents now seek to recover the US$300,000,000
from the ACOM Debtors' unsecured creditors.

From September through November 2005, the Administrative Agents
filed these claims for additional interests:

    Claimant          Claim No.            Claim Amount
    --------          ---------            ------------
    BNS                 18058      US$2,100,000 to US$41,900,000
    BNS                 18059      US$4,100,000 to US$81,000,000
    BofA                17701                     undetermined
    Citibank            17724      US$4,800,000 to US$92,000,000
    JP Morgan           17702      US$2,500,000 to US$70,000,000
    Wachovia            17722                      US$87,000,000

Mr. Abrams argued that the Administrative Agents' claims for
additional interest should be disallowed because:

    -- there is no basis under the relevant loan agreements for
       awarding additional "grid" interest after inaccurate
       compliance certificates have been delivered;

    -- the Administrative Agents voluntarily waived any right to
       default interest in exchange for numerous benefits they
       received under the DIP Financing;

    -- the Agents waived their right to receive additional grid
       interest by continuing to accept, without objection,
       payments for interests at the grid rates in effect as of
       the Petition Date pursuant to the Final DIP Order; and

    -- the grid interest claims are untimely, since they have
       been asserted for the first time during a period of more
       than seven months to nearly two years after the Bar Date.

                       Court's Ruling

The Court disagreed with bank lenders' contention that they have
a contractual entitlement to the incremental interest, and that
the asserted contractual entitlement is recoverable as a secured
claim under Section 506(b) of the Bankruptcy Code.

Judge Gerber found that the amount payable as Grid Interest, as
a matter of contract law, is determined by the compliance
certificates.  "Under the agreements, whatever is said in the
compliance certificates is controlling.  And there is no
mechanism in the agreements for a re-computation of the
Applicable Margin if the compliance certificates turn out to be
inaccurate, by reason of either mistake or fraud."

The Court noted that Wachovia Bank, N.A., and a number of the
other bank lenders also contend that most of the contracts have
a very broad definition of "Obligations," and include all
obligations "arising under or in connection with the credit
agreements."  Thus, they argue, the incremental interest
collectible is one of the "Obligations" under the credit
agreements, and the Grid Interest, as one of the "Obligations,"
is thus recoverable.

"But the argument is circular, and the Court must reject it,"
Judge Gerber opined.  The desired additional interest
constitutes part of the "Obligations" under the facilities to
the extent -- but only the extent -- that it is provided for
under the contracts, Judge Gerber emphasized.

Moreover, Judge Gerber said, the Court is not persuaded by
Wachovia and other bank lenders' contention that they have the
necessary contractual entitlement because in some or all of the
agreements, each borrower must indemnify the bank lenders
against all losses and damages incurred in connection with the
bank lenders entering into and performing under the credit
agreements.

Judge Gerber pointed out that the key word there is "indemnify,"
which has long been held to be synonymous with "hold harmless,"
and which has been variously defined as "[t]o restore the victim
of a loss, in whole or in part, by payment, repair, or
replacement, or "to make good a loss that someone has suffered
because of another's act or default."  The Court clarifies that
indemnification provisions give rise to restitutionary rights,
and are not back-door means to get the benefit of one's bargain.

The Court considered it inappropriate to penalize the Debtors or
the bank lenders for their accounting decisions with respect to
accrual of additional interest claims.

The Court believed that it has greater expertise in analyzing
contractual obligations than do the Debtors' or the bank
lenders' accounting personnel.

Judge Gerber said the measure of the bank lenders' damages for
fraud or misrepresentation would be their out-of-pocket loss --
essentially or entirely their outstanding principal -- and not
the profits they would have realized in the absence of fraud.

The Debtors will pay that principal back upon confirmation, and,
so far as the record reflects, the bank lenders will have no
further out-of-pocket damages.

According to Judge Gerber, he does not need to address the
Creditors' Committee's and the Debtors' other contentions,
asserting waiver of the claims for incremental interest; that
bank lenders should be judicially estopped from asking for it;
and that proofs of claim filed on behalf of the bank lenders
before the Bar Date failed to assert the claims for the
additional interest.  "There were no valid claims to waive.  The
other arguments are likewise academic."

For these reasons, the Court ruled that the bank lenders will
not have a claim for the incremental interest under their
contracts.

The Court noted that while most of the bank lenders did indeed
retain remedies against Adelphia Communications Corporation in
tort, those tort remedies do not include expectancy damages and
at that time as the bank lenders are fully repaid the principal
on their loans, they will have no claims in tort.

Judge Gerber further ruled that the Debtors do not have to
reserve sums under their reorganization plan to satisfy bank
lender claims for the Grid Interest.

The bank lenders' rights to seek allowance of other aspects of
their claims remains in effect and all parties' rights with
respect to future aspects of the bank lenders' claims are
reserved and preserved.

A full-text copy of the Court's Decision is available for free
at http://ResearchArchives.com/t/s?a34

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


ADELPHIA COMMS: Selling Real Property & Equipment for US$1.2MM
--------------------------------------------------------------
Pursuant to the excess assets sale procedures approved by the
U.S. Bankruptcy Court for the Southern District of New York,
Adelphia Communications Corporation and its debtor-affiliates
inform the Court that they will sell these assets for
US$1,225,703:

    1. Asset:            Two electrical transformers
       Purchaser:        Doug Beat Company
       Purchase Price:   US$10,000
       Agent:            none
       Deposit:          (not mentioned)
       Appraised Value:  No appraisal was conducted

    2. Asset:            Real property at Lot 31, Bloody Point,
                         83 Fuskie Lane, Hilton Head,
                         South Carolina
       Purchaser:        Jeff Bradley
       Purchase Price:   US$1,050,000
       Agent:            Charter One Realty
       Deposit:          US$10,000
       Appraised Value:  US$820,000

    3. Asset:            Cable and electronics equipment
       Purchaser:        West 1 CATV Supplies, Inc.
       Purchase Price:   US$6,000
       Agent:            none
       Deposit:          (not mentioned)
       Appraised Value:  No appraisal was conducted

    4. Asset:            Cable and electronics equipment
       Purchaser:        Quality Cable & Electronics, Inc.
       Purchase Price:   US$3,213
       Agent:            none
       Deposit:          (not mentioned)
       Appraised Value:  No appraisal was conducted

    5. Asset:            Cable and electronics equipment
       Purchaser:        Adams Global Communications, Inc.
       Purchase Price:   US$3,453
       Agent:            none
       Deposit:          (not mentioned)
       Appraised Value:  No appraisal was conducted

    6. Asset:            Cable and electronics equipment
       Purchaser:        Broadband Remarketing Int'l, LLC
       Purchase Price:   US$42,661
       Agent:            none
       Deposit:          (not mentioned)
       Appraised Value:  No appraisal was conducted

    7. Asset:            Cable and electronics equipment
       Purchaser:        Digicomm International, Inc.
       Purchase Price:   US$110,376
       Agent:            none
       Deposit:          (not mentioned)
       Appraised Value:  No appraisal was conducted

The maximum consideration to be paid for assets sold pursuant to
the Court-approved Excess Asset Sale Procedures is $1,000,000.

Shelley C. Chapman, Esq., at Willkie Farr & Gallagher, in New
York, contends that the sale of the South Carolina Real Property
may be authorized because:

    -- the net recovery to the Debtors' estate as a result of
       the Sale will not exceed US$1,000,000; and

    -- the appraised value of the Property does not exceed
       US$1,000,000.

Based in Coudersport, Pa., Adelphia Communications Corporation
-- http://www.adelphia.com/-- is the fifth-largest cable
television company in the country.  Adelphia serves customers in
30 states and Puerto Rico, and offers analog and digital video
services, high-speed Internet access and other advanced services
over its broadband networks.  The Company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002.  Those cases are jointly
administered under case number 02-41729.  Willkie Farr &
Gallagher represents the ACOM Debtors.  PricewaterhouseCoopers
serves as the Debtors' financial advisor.  Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.
(Adelphia Bankruptcy News, Issue No. 132; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


DORAL FINANCIAL: Completes Sale of US$2.5 Billion Mortgage Loans
----------------------------------------------------------------
Doral Financial Corporation, a diversified financial services
holding company, successfully completed the sale of
approximately US$2.5 billion in mortgage loans to an affiliate
of Deutsche Bank Securities Inc. Except for approximately US$100
million in mortgage loans that were not previously transferred
to FirstBank Puerto Rico, all the mortgage loans sold had been
previously transferred to FirstBank in several transactions
occurring between the years 2000 and 2004.

The sale of these mortgage loans is part of Doral's initiative
to restructure the terms of certain prior mortgage loan
transfers and related servicing arrangements, which were
recharacterized as secured borrowings as part of the previously
announced restatement process.  The transactions are expected to
have a positive impact on Doral's regulatory capital ratios.

In addition, as part of this process, on May 25, 2006, Doral
entered into credit agreements with FirstBank to document as
secured borrowings the loan transfers between the parties that
prior to the restatement had been accounted for as sales.  The
aggregate amount of the borrowings documented under the credit
agreements is approximately US$2.9 billion.  The agreements are
secured by a pledge of the mortgage loans that were previously
transferred by Doral to FirstBank.  After the repayment of loans
from the proceeds of the sale of these mortgage loans, the
aggregate unpaid balance of the loans was reduced to
approximately US$450 million.

                     About Doral Financial

Doral Financial Corporation -- http://www.doralfinancial.com/
-- a financial holding company, is the largest residential
mortgage lender in Puerto Rico, and the parent company of Doral
Bank, a Puerto Rico based commercial bank, Doral Securities, a
Puerto Rico based investment banking and institutional brokerage
firm, Doral Insurance Agency, Inc. and Doral Bank FSB, a federal
savings bank based in New York City.

                        *    *    *

As reported in the Troubled Company Reporter on March 27, 2006,
Moody's Investors Service downgraded to B1 from Ba3 the senior
debt ratings of Doral Financial Corporation, and reiterated the
negative rating outlook.  Moody's action follows cease and
desist orders placed by banking regulators on Doral and some of
its subsidiaries, including Doral Bank, San Juan, Puerto
Rico.  When Moody's last downgraded Doral's debt on Oct. 28,
2005, it issued a negative rating outlook, but noted that any
credit deterioration including regulatory consequences or
liquidity issues could result in a review for possible downgrade
or an outright downgrade.


FIRSTBANK PUERTO RICO: Receives US$2.4 Bil. Payment from Doral
--------------------------------------------------------------
FirstBank Puerto Rico, a subsidiary of First BanCorp, has
received a cash payment from Doral Financial Corporation of
approximately US$2.4 billion, substantially reducing the balance
of approximately US$2.9 billion in secured commercial loans
outstanding to Doral.  The commercial loans resulted from First
BanCorp's previously announced revised classification of several
mortgage-related transactions with Doral.

The cash payment by Doral Financial has reduced the remaining
balance of the commercial loans to Doral to approximately US$450
million.  First BanCorp's management expects additional
accelerated payments by Doral, which will further reduce the
outstanding balance prior to the close of the second quarter of
2006.

As previously announced, the loans had been recorded as
purchases of residential real estate loans from Doral by
FirstBank, and subsequently reclassified as commercial loans
secured by mortgages.  FirstBank has executed loan documents
related to its secured loans to Doral, which provide for a
floating interest rate up to a maximum of 7 1/2% on the
remaining balance of US$450 million on the secured loans.

In connection with the agreement providing for Doral's repayment
of the loans, FirstBank and Doral have entered into a sharing
arrangement with respect to certain profits or losses that Doral
incurs as part of the sales of the mortgages that previously
collateralized the commercial loans.

FirstBank has agreed to reimburse Doral for 40% of the net
losses incurred by Doral as a result of sales of the mortgages,
subject to certain conditions and subject to a maximum
reimbursement of US$9.5 million, which will be reduced
proportionately to the extent that Doral does not sell the
mortgages.  Doral Financial will share with FirstBank the
profits, if any, received from any subsequent sales of the
mortgages, in the same proportion as FirstBank shares in the
losses.

The US$2.4 billion payment by Doral will result in the reduction
of an equal amount of assets requiring risk-weighting at the
100% level, increasing FirstBank's capital ratio by
approximately 240 basis points and strengthening the bank's
status as a well-capitalized institution, within the meaning
established by the Federal Deposit Insurance Corporation aka
FDIC.  FirstBank expects to use a substantial amount of the
proceeds of the loan repayments to repay outstanding brokered
certificates of depositthat mature between now and the fourth
quarter of 2006.

"We are very pleased with this transaction which substantially
reduces our loan concentration with Doral and addresses a
primary regulatory concern," said Luis Beauchamp, First
BanCorp's President and Chief Executive Officier.  "The loan
repayments allow the corporation to execute its business and
capital plans and continue to pursue its ongoing business
strategy."

First BanCorp also announced that it plans to file in the summer
of 2006 an amended annual report on Form 10-K for the fiscal
year ended Dec. 31, 2004.

First BanCorp expects to file its financial statements for the
interim periods in 2005 and the first quarter of 2006 and its
annual report on Form 10-K for the fiscal year ended Dec. 31,
2005.

                     About First BanCorp

First BanCorp is the parent corporation of FirstBank Puerto
Rico, a state chartered commercial bank with operations in
Puerto Rico and the Virgin Islands and in the state of Florida;
of FirstBank Insurance Agency; and of Ponce General Corporation.
First BanCorp, FirstBank Puerto Rico and UniBank, the thrift
subsidiary of Ponce General, all operate within U.S. banking
laws and regulations. The Corporation operates a total of 140
financial services facilities throughout Puerto Rico, the U.S.
and British Virgin Islands, and Florida (USA). Among the
subsidiaries of FirstBank Puerto Rico are Money Express, a
finance company; First Leasing and Car Rental, a car and truck
rental leasing company; and FirstMortgage, a mortgage banking
company. In the U.S. and British Virgin Islands, FirstBank
operates FirstBank Insurance VI, an insurance agency; First
Trade, Inc., a foreign corporation management company; and First
Express, a small loan company. First BanCorp's common and
preferred shares trade on the New York Stock Exchange, under the
symbols FBP, FBPPrA, FBPPrB, FBPPrC, FBPPrD and FBPPrE.

                        *    *    *

As reported in the Troubled company Reporter on March 21, 2006,
Fitch Ratings assigned these ratings on First BanCorp and
FirstBank Puerto Rico:

  First BanCorp

    -- Long-term IDR at 'BB';
    -- Short-term at 'B';
    -- Individual at 'C/D';
    -- Support '5'.

  FirstBank Puerto Rico

    -- Long-term IDR at 'BB';
    -- Long-term deposit obligations at 'BB+';
    -- Short-term deposit obligations at 'B';
    -- Short-term at 'B';
    -- Individual at 'C/D';
    -- Support at '5'.

                        *    *    *

As reported in the Troubled Company Reporter on May 30, 2006,
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
Oct. 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.




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


BWIA WEST: Gets Carped on Jet Pack Delivery Service
---------------------------------------------------
BWIA West Indies need to give clear instructions regarding
delivery for its jet pack service, according to a letter sent to
the Stabroek News.

The sender told Stabroek that BWIA's list of products and
services called the Bwee Cargo and the Jet Pack.  On the jet
pack service, BWIA has specified the limit of liability
standard:

  -- the airline will not be liable for loss or non-delivery
     caused by act or default of the one shipping,

  -- the airline could not guarantee delivery by a special time
     or date and shall not be liable for any damage due to delay
     or non-delivery, and

  -- the airline will not be liable for any special, incidental
     or consequential damages, including loss of profit.

Because of these, the sender questioned if the Jet Pack Service
is not liable for not providing the service it has offered for a
fee, Stabroek reports.

"The service, it was explained, was an airport-to-airport
service.  Is it?  I enquired further as the trip to the Cheddi
Jagan International is not en-route.  I was assured it was.  The
package will be available the same evening I was advised," the
sender said in his letter.

The sender, satisfied with the possibility of a next day package
pick up, said he paid BBD40 for the service, Stabroek states.

About four days later, however, there was still no information
on where the package can be claimed, the sender informed
Stabroek.

The sender said that several calls were made to the supervisor
in Barbados to assist in the tracing, according to Stabroek.
The sender was referred to BWIA Guyana, which then advises each
day that the package is yet to arrive 8:00 p.m. the next day.

Four days later, the sender was told that he or she should check
at a separate location, the Swiss House - Eccles, Stabroek
relates.

"Is it not simple enough to have a note which your jet pack
handlers could read and at least be informed that packages sent
are to be collected at Swiss House?  Should BWIA Barbados
sending packages to Guyana not have this information for their
customers sending packages to Guyana?" the sender complained to
Stabroek.

According to Stabroek, the sender suggested:

   -- each of BWIA's service points should be asked to provide
      clear information as to the location of the drop off and
      pick up points, and

   -- BWIA should provide addresses and contract numbers to
      clients as to where the packages are being delivered.

However, the sender questioned if the suggested moves are
already included in the service being paid for, Stabroek says.

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

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




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


CITRICOLA SALTENA: Moody's Rates US$1.3-Mil. Secured Bonds at B3
----------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to Citricola
Saltena S.A.'s US$1.3 million secured bonds and a Ba1.uy rating
on the national scale. The rating outlook is stable.

Moody's National Scale Ratings are intended as relative measures
of creditworthiness among debt issues and issuers within a
country, enabling market participants to better differentiate
relative risks. NSRs in Uruguay are designated by the ".uy"
suffix.  NSRs differ from global scale ratings in that they are
not globally comparable to the full universe of Moody's rated
entities, but only with other rated entities within the same
country.

Citricola's ratings consider the key drivers of Moody's
methodology for natural product processors -- protein and
agriculture, among other factors.  Citricola's very small size,
limited franchise strength, and the limited growth potential
because of the commodity nature of its products, and also its
volatile credit metrics, drive the ratings. Citricola, however,
has the advantage of having a harvest season for its produce
that is opposite that of its global competitors producing in the
Northern Hemisphere, where consumers of its products are
concentrated.  Hence it can provide fresh citrus produce when
competitors cannot.  The advantage led management to enter the
European markets successfully, positioning the company in a
promising niche.

The volatile nature of Citricola's commodity activities is
reflected in its recent performance, with 2004 being a very good
year and 2005 a very bad year.  In particular, a rainy harvest
season last year affected product quality and thus earnings for
Citricola, as shown by a 70% EBITA drop for the fiscal year
ended December 2005.  The appreciation of the local currency in
relation to the US dollar and an increase in Citricola's most
significant production costs (energy, local salaries, fuel,
freight and packaging) also strongly affected performance of the
last fiscal year.  As a result, free cash flow was a negative -
4.7% in relation to debt.

The stable outlook reflects Moody's expectation that Citricola
will be able to sustain operations and export volumes without
losing profitability and also manage its debt levels to be line
with its cash generation.

Over time, Citricola's ratings could be upgraded if it is able
to

   -- build greater scale and diversification,
   -- create greater stability within its earnings and cash
      flow,
   -- stabilize its inflows from exports,
   -- build higher levels of liquidity, and
   -- create a better balance between short- and long- term
      debt.

On the other hand, a rating down-grade could occur if volumes
are cannot be sustained, production costs continue to rise so
that profit margins weaken to below historical levels, and if
free cash flow metrics continue to be negative

Citricola Saltena is a family-owned Uruguayan company, managed
by several family members.  It was established in Uruguay more
than 50 years ago as a small citrus producer, focusing on both
its domestic market as well as exports.


* URUGUAY: State Power Firm Launches Energy Savings Plan
--------------------------------------------------------
UTE aka Usinas y Transmisiones Electricas, the state power firm
of Uruguay, launched an energy savings plan to help fight the
current power crisis, according to a report posted on the
presidential Web site.

As reported in the Troubled Company Reporter on Jun 1, 2006, the
Uruguayan government, due to the energy crisis it is
experiencing, decided to enforce restrictions on electricity
usage and punish violators with suspension of electrical
service.   These measures were implemented to complement the
April 28 Energy Saving Plan:

   -- that public and private entities may only use half their
      elevators and escalators during working hours, and that

   -- neon advertising is only authorized for health and police
      centers.

The report states that increased savings efforts are needed
because of the prolonged drought affecting hydroelectric
generation, the lack of thermo generation capacity and the
difficult regional energy context.

                        *    *    *

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-'.

                        *    *    *

Moody's upgraded Uruguay's long-term foreign currency rating to
B1 from B3 under the revised foreign currency ceilings on
May 24, 2006.




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


PETROLEOS DE VENEZUELA: Will Ink Oil Pact with Iran's Petropars
---------------------------------------------------------------
Rafael Ramirez, Venezuela's oil and energy minister, said in
reports that the National Iranian Oil Co.'s Petropars unit will
help state oil company Petroleos de Venezuela SA or PDVSA
develop a heavy oil block in the country's Orinoco oil belt.
The signing is expected to occur this week during the meeting of
the Organization of Petroleum Exporting Countries in Caracas,
Venezuela.

PDVSA and Petropars have already assessed and found satisfactory
the reserves in the Block Ayacucho 7 in Orinoco Oil Belt,
southeast Venezuela.

"We are very pleased at the results in this block, as the
assessment was completed in a record time," Eulogio Del Pino was
quoted by El Universal as saying.

Additionally, the two companies will also work together to
explore and develop offshore natural gas fields in Block Cardon
II in the Gulf of Venezuela near the Colombian border.  The
block has an estimated reserve of three trillion cubic feet of
gas.  Construction of a gas pipeline connecting Venezuela to
Colombia will begin in July.  The pipeline will supplement the
exploration at Cardon II.

Meanwhile, PDVSA will also sign agreements clearing the way for
Algeria's state energy Sonatrach to help it explore for offshore
natural gas, Bloomberg News reports.

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: Oil Minister Foresees No Change in Oil Quota
---------------------------------------------------------
Rafael Ramirez, Venezuela's minister for oil and energy, said in
reports that members of the Organization of Petroleum Exporting
Countries will probably keep current oil production quotas in
order to stabilize the market.

In March, Venezuela asked OPEC members to lessen oil production
by a million barrels per day in order to control prices.
However, Venezuela's demand was overruled by Saudi Arabia.  The
cartel kept production at 28 million barrels per day.

"Market fundamentals, including inventories, point to a cut,"
Mr. Ramirez was quoted by Bloomberg as saying. "But there are
other factors, such as geopolitical tensions," that have to be
considered.

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


* IDB Enhances Credit Guarantees for LatAm and Caribbean Issuers
----------------------------------------------------------------
The Board of Executive Directors of the Inter-American
Development Bank approved a policy change to enhance its partial
credit guarantees for Latin American and Caribbean debt issuers.
Under the new guidelines, the IDB will be able to denominate
reimbursement claims, fees and other charges in local
currencies.

Previously, the institution's policies required that these items
should be denominated in U.S. dollars.  The new partial credit
guarantee feature improves the IDB's capability to support local
currency operations and is available for private sector
operations and other projects without sovereign guarantee.

"Fostering financial market development is an important part of
the IDB's support for private sector development in the region,"
said Hans Schulz, head of the Private Sector Department's
financial markets team. "We are sharpening our instruments in
response to market demand".

Partial credit guarantees are a key instrument in the IDB's
strategy of promoting the development of local capital markets.
"They strengthen the credit rating of securities denominated in
local currencies, reducing foreign currency exposure for issuers
and creating new investment opportunities in the region's
capital markets.  We anticipate significant demand for this
product," Mr. Schulz added.


                         ***********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.


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