TCRLA_Public/060605.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                

             Monday, June 5, 2006, Vol. 7, Issue 110
  
                            Headlines


A R G E N T I N A

AEROLINEAS ARGENTINAS: Adds Boeing 737/500 Aircraft Into Fleet
BANCO RIO: Eyes Increase in Loans to Small Agribusiness Firms
BANCO HIPOTECARIO: Moody's Ups Financial Strength Rating to E+
COMPANIA INTERAMERICANA: Claims Verification Ends After July 21
COPACO SACIFA: Proofs of Claim Verification Ends on July 20

HOUCER SRL: Individual Reports Due in Court on July 25
JORSAR SA: Reorganization Proceeds to Bankruptcy
JURGEN M: Trustee Stops Verification of Claims by July 19
LITRAN SA: Trustee Submits Individual Reports on July 12
MAFRALAC ALIMENTICIA: Court Concludes Reorganization Proceeding

MATRIBA SA: Enters Bankruptcy on Court Orders
MS EDITORES: Verification of Proofs of Claim Ends on July 20
PIONEER NATURAL: Apache Closes Purchase of Argentine Assets
PINNACLE ENT: Buying President's St. Louis Casino for US$31.5MM
TENSIOACTIVOS AMERICANOS: Creditors Must File Claims by July 10

B E R M U D A

GLOBAL CROSSING: Announces Availability of VoIP On-Net Service
MONTPELIER RE: May Get Additional Capital from Wilbur Ross

B O L I V I A

COEUR D' ALENE: Bolivia Won't Nationalize San Bartolome Project

* BOLIVIA: Grants El Mutun Mine Contract to Jindal Steel

B R A Z I L

BANCO DO BRASIL: Brasilprev Expects 13% Boost in Pension Billing
COPEL: Will Invest BRL11 Mil. to Start Araucaria Plant Operation
COMPANHIA SIDERURGICA: Holds Joint Venture Talks with Baosteel
COMPANHIA VALE: Asserts Chinese Steelmakers Must Accept 19% Hike
GLOBAL CROSSING: Will Provide Internet Services to CTBC

C A Y M A N   I S L A N D S

ADMIRAL CBO: Moody's Places Caa3 Rating on Watch & May Upgrade
COMPASS ROYALTY: Sets June 16 as Proofs of Claim Filing Deadline
HSJ LIMITED: Liquidator Won't Accept Claims After June 16
KPA LTD: Last Day for Proofs of Claim Filing Is on June 16
NICOS SPC: Creditors Must Present Proofs of Claim by June 21

RL CAPITAL: Creditors Must File Proofs of Claim by June 16
SANTA ISABEL: Creditors Have Until June 16 to File Claims
SCEPTRE INT'L: Proofs of Claim Filing Deadline Is June 16
SECOND EMERGING: Creditors Must File Proofs of Claim by June 16
START INVESTMENTS: Proofs of Claim Must be Filed by June 16

UNITED MULTI-SECTOR: Proofs of Claim Must be Filed by June 16

C O L O M B I A

* COLOMBIA: Nine Firms Interested in Bogota Airport Concession

C O S T A   R I C A

CENTRAL AMERICAN: Earns US$24,767 in 2006 First Fiscal Quarter

* COSTA RICA: Unions to Protest Free Trade Accord with US

C U B A

* CUBA: Will Intensify Economic Cooperation with Indonesia

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE LTD: Xstrata Asserts Its Cash Offer Is Best Choice

* DOMINICAN REPUBLIC: Must Revise Laws for Trade Pact with US

E C U A D O R

* ECUADOR: Wants Fair Trade Deals Without US & European Pressure
* ECUADOR: Secures US$60-Mil. Loan for Cash Transfer Program

G U Y A N A

DIGICEL: In Talks with Cel*Star for Acquisition of Guyana Assets

J A M A I C A

DELTA AIR: Adds Nine New Routes Across LatAm & Caribbean
MIRANT CORP: Resolves Electric Power Purchase Dispute with Pepco
MIRANT CORP: Will Pay PEPCO US$520 Million Under Settlement Pact

M E X I C O

GRUPO MEXICO: Workers Hold Demonstrations at Cananea Copper Mine
KRISPY KREME: Files FY 2005 10K & Restates 2003 to 2004 Reports
PENN OCTANE: Receives Nasdaq Delisting Notice
XIGNUX SA: High Leverage Cues S&P to Place B+ Corp. Rating

P E R U

REPSOL: Subsidiary Buys Mobil Oil Service Stations for US$35MM

* PERU: Alan Garcia Pledges Renewal of US$422-Mil. IMF Loan

P U E R T O   R I C O

FIRST BANCORP: Receives Regulatory Approval for Dividend Payment
GLOBAL HOME: Can Continue Union Pension & Profit Sharing Plans
GLOBAL HOME: Hires Houlihan Lokey as Investment Banker
MUSICLAND HOLDING: Posts US$12.5 Million Net Loss in April 2006
OCA INC: Voluntary Chapter 11 Case Summary

T R I N I D A D   &   T O B A G O

DIRECTV HOLDINGS: Moody's Affirms Ba2 Corporate Family Rating

U R U G U A Y

BANCO ITAU (URUGUAY): Fitch Revises Ratings Outlook to Positive
PETROLEO BRASILEIRO: Completes Buy of Shell Assets in Uruguay

* URUGUAY: 400-MW Baseload Power Plant Is Up for Bidding on July

V E N E Z U E L A

CITGO PETROLEUM: Harsh Weather Causes Oil Spill at Refinery
PETROLEOS DE VENEZUELA: Enquiry Panel Files Report
PETROLEOS DE VENEZUELA: Mulls Selling Oil in Euros

* VENEZUELA: Minister Says OPEC Meeting Was a Success



                         - - - - -   



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


AEROLINEAS ARGENTINAS: Adds Boeing 737/500 Aircraft Into Fleet
--------------------------------------------------------------
Aerolineas Argentinas will add the Boeing 737/500 into its
fleet.

The plane will arrive in Argentina from China.  It is the third
plane of the kind incorporated this year in the airline's fleet.

The four remaining B-737/500 -- that will systematically replace
the B-737/200 -- will be added gradually until November 2007.

The Boeing 737/500s, with capacity for 108 passengers, have a
4,399-km range, making them extremely suitable for domestic and
regional flights.

Aerolineas Argentinas continues its fleet extension and
renovation process as it previously announced.

                        *    *    *

As reported in the Troubled Company Reporter on June 15, 2000,
Aerolineas Argentinas needed a US$650 million capital injection
and sweeping cost cuts to save it from bankruptcy.  Aerolineas'
biggest shareholder covered a bulk of its losses, which Spanish
sources put at US$300 million in 2000.

                        *    *    *

Aerolineas Argentinas defaulted on a US$50 million bonds due on
Dec. 23, 2003.


BANCO RIO: Eyes Increase in Loans to Small Agribusiness Firms
-------------------------------------------------------------
Banco Rio de la Plata, Grupo Santander's unit in Argentina,
foresees that loans granted to the agribusiness SMEs or small-
to-medium enterprises in 2006 will increase to ARS500 million,
Hernan Caballero, the SME and agribusiness manager, told
Business News Americas.

Mr. Caballero was quoted by BNamericas as saying that Banco
Rio's agribusiness SME loan portfolio rose 160% last year to
ARS260 million, representing about 25% if total corporate
lending at the end of December last year.  Lending in the period
immediately after the financial crisis -- between 2001 and 2002
-- was 10-12%.

Local producers have been increasingly turning to bank
assistance and even to making deposits with the improvement
after that crisis, a move that most Argentines have avoided due
to distrust, Mr. Caballero told BNamericas.

BNamericas relates that Argentina's exports of grain and
vegetable oil have become one of the foundations of the economy
and have been the center of important investments.

Enrique Cristofani, the head of Banco Rio, said at a press
conference after an accord signing with the regional consortium
of agricultural research, "We have invested and will keep
investing in this sector, which is the most important in
Argentina."

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

                        *    *    *

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

                        *    *    *

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

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


BANCO HIPOTECARIO: Moody's Ups Financial Strength Rating to E+
--------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength
rating of Banco Hipotecario S.A. to E+ from E.  This rating
action reflects the bank's improved fundamentals, which include:

   -- stronger core earnings,
   -- better asset quality, and
   -- solvency.

In making its decision, Moody's also took into consideration
Argentina's improving operating environment, especially after
the shock of the nation's 2001-2002 financial crisis.

The outlook on the rating is positive, in an indication of
Moody's expectations that Hipotecario can further expand its
franchise, its product and client base, with resultant
improvements in its core earnings.

Moody's also assigned long- and short-term global local-currency
deposit ratings of Ba3 and Not Prime, respectively, to Banco
Hipotecario.  Both ratings have a stable outlook.

Moody's said that its ratings incorporate the bank's importance
in a key economic sector -- housing finance -- as well as the
Argentine government's ownership and final say in Hipotecario's
corporate existence and mission.

The rating agency pointed out that its Ba3 global local currency
deposit rating indicates that Banco Hipotecario would have
relatively high access to the Central Bank's stores of liquidity
to cover any local-currency deposits if needed in situations of
high stress.

Additionally, Moody's assigned a national scale rating for
foreign-currency deposits of Ba1.ar to Banco Hipotecario.  The
rating agency also affirmed the bank's Aa1.ar national scale
rating for local-currency deposits.  The bank's existing global
long-and short- term foreign currency deposit ratings of Not
Prime and Caa1 were affirmed, and remain constrained by the
Argentine country ceiling for deposits.

Headquartered in Buenos Aires, Banco Hipotecario is a leading
mortgage originator.  It had ARS8.4 billion in assets and
ARS588.8 million in deposits as of March 2006.

These ratings were affected:

   -- Bank Financial Strength Rating: upgraded to E+ from E,
      with positive outlook;

   -- Long-term global local-currency deposit rating: Ba3 with
      stable outlook;

   -- Short-term global local-currency deposit rating: Not Prime
      with stable outlook; and

   -- National scale rating for foreign currency deposits:
      Ba1.ar with stable outlook.

These ratings were affirmed:

   -- National scale rating for local-currency deposits: Aa1.ar
      with stable outlook;

   -- Long-term foreign currency-deposit rating: Caa1 and

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


COMPANIA INTERAMERICANA: Claims Verification Ends After July 21
---------------------------------------------------------------
Court-appointed trustee Edith Regazzoni won't verify creditors'
claims against bankrupt company, Compania Interamericana de
Granos S.A., after July 21, 2006, La Nacion reports.

Buenos Aires Court No. 19, with assistance from Clerk No. 37,
declared the company bankrupt at the behest of Cooperativa de
Credito del Milenio Ltda.

The debtor can be reached at:

         Compania Interamericana de Granos S.A.
         Arenales 1000
         Buenos Aires, Argentina

The trustee can be reached at:

         Edith Regazzoni
         Carlos Pellegrini 465
         Buenos Aires, Argentina


COPACO SACIFA: Proofs of Claim Verification Ends on July 20
-----------------------------------------------------------
Edgardo Alberto Borghi, the court-appointed trustee for the
bankruptcy case of Copaco SACIFA has started verifying
creditors' proofs of claim.  Verification phase will end on
July 20, 2006.

La Nacion relates that Buenos Aires' Court No. 5 declared the
company bankrupt at the request of Banco de San Juan S.A., which
the company owes US$80,000.

Clerk No. 10 assists the court in this case.

The debtor can be reached at:

         Copaco SACIFA
         Parana 480
         Buenos Aires, Argentina

The trustee can be reached at:

         Edgardo Alberto Borghi
         Luis Viale 2176
         Buenos Aires, Argentina    


HOUCER SRL: Individual Reports Due in Court on July 25
------------------------------------------------------
The court-appointed trustee, Susana Gonzalez, will present on
July 25, 2006, individual reports on the validated claims of
creditors against Houcer S.R.L., a company under reorganization.

Ms. Gonzalez stopped verifying creditors' proofs of claim on
May 29, 2006.

A general report is expected in court on Sept. 5, 2006.  An
informative assembly is scheduled on Feb. 15, 2007.

The debtor can be reached at:

         Houcer S.R.L.
         H. Yrigoyen 184
         General Madariaga
         Buenos Aires, Argentina

The trustee can be reached at:

         Susana Gonzalez
         Buenos Aires 595, Dolores
         Buenos Aires, Argentina


JORSAR SA: Reorganization Proceeds to Bankruptcy
------------------------------------------------
A Buenos Aires court has declared that Jorsar S.A.'s
reorganization must be converted into a bankruptcy proceeding.  
Consequently, all of the debtor's assets will be liquidated and
proceeds distributed to creditors.

A court-appointed trustee will verify creditors' proofs of claim
against the company.  The trustee, after the claims verification
period, will prepare individual reports for presentation in
court.  The trustee will then submit to the court a general
report that contains an audit of the company's accounting and
banking records.

The name of the trustee and the dates of the verification
deadline and submission of the reports are yet to be disclosed.


JURGEN M: Trustee Stops Verification of Claims by July 19
---------------------------------------------------------
Carlos Ireneo Lastoria, the court-appointed trustee for the
bankruptcy case of Jurgen M. Nathan S.A., has started verifying
creditors' claims.  Claims must be submitted to the trustee by
July 19, 2006, for verification.

The trustee will present in court individual reports based on
the verified claims on Sept. 14, 2006.  A general report that
contains an audit of the company's accounting and banking
records will be due in court on Oct. 30, 2006.

The trustee can be reached at:

         Carlos Ireneo Lastoria
         Viamonte 1785
         Buenos Aires, Argentina


LITRAN SA: Trustee Submits Individual Reports on July 12
--------------------------------------------------------
Susana Beatriz Minio, the court-appointed trustee for the
bankruptcy proceeding of Litran S.A., will present individual
reports in court on July 12, 2006.  Ms. Minio verified
creditors' proofs of claim until May 30, 2006.

A general report that contains an audit of the company's
accounting and banking records is expected in court on
Sept. 8, 2006.  

A court based in the Neuquen Capital handles the company's
bankruptcy case.

The trustee can be reached at:

         Susana Beatriz Minio
         Mendoza 69
         Nuequen Capital, Argentina


MAFRALAC ALIMENTICIA: Court Concludes Reorganization Proceeding
---------------------------------------------------------------
The reorganization proceeding of Mafralac Alimenticia S.R.L. has
ended.  Data revealed by Infobae on its Web site indicated that
the process was concluded after a court in Santa Fe approved the
debt agreement signed between the company and its creditors.


MATRIBA SA: Enters Bankruptcy on Court Orders
---------------------------------------------
Matriba S.A. entered bankruptcy protection after a Buenos Aires
court ordered the company's liquidation.  The order transfers
control of the company's assets to a court-appointed trustee,
whose name is yet to be disclosed.  The trustee will supervise
the liquidation proceeding.

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

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

The debtor can be reached at:

           Matriba S.A.
           Avenida de Mayo 954
           Buenos Aires, Argentina


MS EDITORES: Verification of Proofs of Claim Ends on July 20
------------------------------------------------------------
Monica Beatriz Cacioli, the court-appointed trustee for the
bankruptcy proceeding of MS Editores S.A. will stop verifying
creditors' proofs of claim on 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. 5 declared the company bankrupt at the
behest of Pablo Timberg, whom the company owes US$22,708.72.

Clerk No. 10 assists the court on the case.

The debtor can be reached at:

         MS Eidtores S.A.
         Alvarez Thomas 2244
         Buenos Aires, Argentina

The trustee can be reached at:

         Monica Beatriz Cacioli
         Parana 723
         Buenos Aires, Argentina


PIONEER NATURAL: Apache Closes Purchase of Argentine Assets
-----------------------------------------------------------
Apache Corporation has completed the purchase of Pioneer Natural
Resources' assets in Argentina for US$675 million, the
Latinlawyer Online reports.

The Latinlawyer states that the deal grants Apache full control
of Pioneer's oil and gas assets in:

   -- Neuquen,
   -- San Jorge, and
   -- Austral basins, in the country's southern cone.

Robert Kimball of Vinson and Elkins LLP, who advised Pioneer,
told the Latinlawyer, "The high-profile government approvals and
registrations for the transaction were obtained very quickly,
but it took an unusually long time to form and register the few
new companies in Argentina necessary to close the sale.  Those
new companies were the last pieces to fall in place for closing.   
It's a reminder not to underestimate even the seemingly small
stuff in a Latin American transaction."

                     About Apache Corp.

The company engages in oil and gas exploration and production.
It has onshore and offshore operations in North America and in
Argentina, Australia, China, Egypt and the United Kingdom.  It
has proven reserves of 1.9 billion barrels of oil equivalent,
mostly from five North American regions: the Gulf of Mexico, the
Gulf Coast of Texas and Louisiana, the Permian Basin in West
Texas, the Anadarko Basin in Oklahoma, and western Canada.  In
2004, it acquired more than two dozen mature US and Canadian
fields from Exxon Mobil for US$347 million and Gulf of Mexico
properties from Anadarko Petroleum for US$525 million.

                   About Pioneer Natural

Pioneer Natural Resources is an independent exploration and
production company.  It holds proven reserves of 789.1 million
barrels of oil equivalent.  The vast majority of its reserves
are found within the United States, but Pioneer also explores
for and produces oil and gas in Argentina, Canada, Gabon, South
Africa, and Tunisia.  In 2004, it acquired Evergreen Resources,
in a US$2.1-billion deal that expanded its proven reserves by
33%.

                        *    *    *

As reported in the Troubled Company Reporter on April 28, 2006,
Moody's assigned a Ba1 rating to Pioneer Natural Resources'
US$450 million of 12-year senior unsecured notes and affirmed
its existing Ba1 corporate family.  Moody's said the rating
outlook remains negative.  


PINNACLE ENT: Buying President's St. Louis Casino for US$31.5MM
---------------------------------------------------------------
Pinnacle Entertainment, Inc., will buy 100% of the issued and
outstanding common stock of President Riverboat Casino-Missouri,
Inc., and trademarks owned by President Casinos, Inc., for
US$31.5 million after the bankruptcy court handling the chapter
11 cases of President Casinos and President Riverboat approved
the deal.  

The Honorable Kathy A. Surratt-States of the U.S. Bankruptcy
Court for the Eastern District of Missouri gave her stamp of
approval after a scheduled May 16, 2006, auction didn't push
through since no other bidder expressed interest.

President Riverboat owns and operates a gaming casino on board
the Admiral on Laclede's Landing in St. Louis, Missouri, and is
the owner of all of the assets used in the operation of the
casino

President Riverboat initially planned to sell the assets to
Columbia Sussex Corp. and had a plan of reorganization confirmed
based on the planned sale.  However, Columbia backed out in
October 2005, a year after it won the auction due to the
possibility that the Missouri Gaming Commission might not
approve the sale.  The confirmed plan didn't take effect and had
to be abandoned.  

Penn National Gaming, Inc., the stalking horse bidder at the
first auction, which bid for US$28 million will be paid a
breakup fee from the proceeds of the sale.  Libra Securities,
LLC, the investment banker who advised and assisted the Debtors
in selling the assets will also be paid a US$900,000 commission.  
The remaining funds will be used to pay off creditors.  

                   About President Casinos

Headquartered in St. Louis, Missouri, President Casinos Inc.
-- http://www.presidentcasino.com/-- currently owns and  
operates a dockside gaming casino in St. Louis, Missouri through
its wholly owned subsidiary, President Missouri.  The Debtor
filed for chapter 11 protection on June 20, 2002 (Bankr. S.D.
Miss. Case No. 02-53055).  On July 11, 2002, substantially all
of Debtor's other operating subsidiaries filed for chapter 11
protection in the same Court.  The Honorable Judge Edward Gaines
ordered the transfer of President Casino's chapter 11 cases from
Mississippi to Missouri.  The case was reopened on Nov. 5, 2002
(Bankr. E.D. Mo. Case No. 02-53005).  Brian Wade Hockett, Esq.,
at Hockett Thompson Coburn LLP, represents the Debtors in their
restructuring efforts.  David A. Warfield, Esq., at Blackwell
Sanders Peper Martin LLP, represents the Official Committee of
Unsecured Creditors.  The Company's balance sheet at Nov. 30,
2005 showed assets totaling US$66,292,000 and debts totaling
US$75,531,000.

               About Pinnacle Entertainment

Headquartered in Las Vegas, Nevada, Pinnacle Entertainment, Inc.
-- http://www.pnkinc.com/-- owns and operates casinos in
Nevada, Louisiana, Indiana and Argentina, owns a hotel in
Missouri, receives lease income from two card club casinos in
the Los Angeles metropolitan area, has been licensed to operate
a small casino in the Bahamas, and owns a casino site and has
significant insurance claims related to a hurricane-damaged
casino previously operated in Biloxi, Mississippi.  Pinnacle
opened a major casino resort in Lake Charles, Louisiana in May
2005 and a new replacement casino in Neuquen, Argentina in July
2005.

                        *    *    *

As reported in the Troubled Company Reporter on May 24, 2006,
Standard & Poor's Ratings Services revised its CreditWatch
implications on Las Vegas-based casino owner and operator
Pinnacle Entertainment Inc. to positive from negative.  

As reported in the Troubled Company Reporter on March 20, 2006,
Moody's Investors Service placed the ratings of Pinnacle
Entertainment, Inc. on review for possible upgrade.  Pinnacle
ratings affected include its B2 corporate family rating, B1
senior secured bank loan rating, and Caa1 senior subordinated
debt rating.

As reported in the Troubled Company Reporter on Mar. 15, 2006,
Fitch Ratings has placed the ratings of Pinnacle Entertainment
(NYSE: PNK) on Rating Watch Negative.  The ratings affected
include:

     -- Issuer default rating 'B';
     -- Senior secured credit facility rating 'BB/RR1';
     -- Senior subordinated note rating 'CCC+/RR6'.


TENSIOACTIVOS AMERICANOS: Creditors Must File Claims by July 10
---------------------------------------------------------------
Creditors of bankrupt company Tensioactivos Americanos S.R.L.
must file claims to Mirta Haydee Addario, the court-appointed
trustee for the case, by July 10, 2006, for verification,
Infobae reports.

Ms. Addario will present the verified claims in court as
individual reports on Sept. 5, 2006.  The trustee will also
submit a general report on the case on Oct. 18, 2006.

A Buenos Aires court declared the company bankrupt at the
request of Isiquim S.A., which the company owes US$5,976.07.

The debtor can be reached at:

         Tensioactivos Americanos S.R.L.
         Monroe 2158
         Buenos Aires, Argentina

The trustee can be reached at:

         Mirta Haydee Addario
         Moreno 442
         Buenos Aires, Argentina




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B E R M U D A
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GLOBAL CROSSING: Announces Availability of VoIP On-Net Service
--------------------------------------------------------------
Global Crossing disclosed the global availability of its VoIP
On-Net Plus Service -- the industry's first fully integrated,
network-based voice Virtual Private Network.  The service
enables businesses to migrate to a fully converged, IP solution,
consolidating voice and data networks on a single IP network.  
By seamlessly migrating existing voice VPNs to an IP platform,
companies can simplify management and administration.

Global Crossing VoIP On-Net Plus Service is network-based and
fully independent of premises-based equipment.  As a result, it
can employ any routing protocol, enabling enterprises to manage
migration to IP at their own pace while immediately reaping the
productivity gains and lower total cost of ownership provided by
convergence.  The service allows enterprises to complete calls
to their office locations over Global Crossing's worldwide VoIP
network, reaching more than 600 cities in 60 countries.

A distinctive feature of VoIP On-Net Plus is cross protocol
routing -- the ability to connect to the VoIP network either
through an IP protocol or a traditional Time Division
Multiplexing protocol.  This capability provides customers
increased flexibility and simplified installation.  With cross
protocol routing, Global Crossing's network accepts an IP or TDM
call and makes any necessary translations to complete it through
a customer's Virtual Private Network.  Calls can be completed:

   -- IP to IP,
   -- IP to TDM,
   -- TDM to IP, or
   -- TDM to TDM.

"VoIP On-Net Plus empowers enterprises to reap the immediate
advantages of IP convergence with existing infrastructure and
without disrupting their existing voice VPNs," said Anthony
Christie, Global Crossing's chief marketing officer.  
"Advantages include implementing voice VPNs using a single dial
plan, which end-users can easily manage through Global
Crossing's online portal, uCommand for enhanced productivity.
Our network-based VoIP services also enable enterprises to
achieve lower total cost of ownership as they seamlessly and
securely migrate to a converged IP network.

VoIP On-Net Plus has also been enhanced to support private
dialing plans that can range from four to 16 digits in length.
Customers benefit from a secure, centralized routing plan
database that can be accessed globally 24 hours a day via
uCommand.  Within minutes, Global Crossing customers can
institute dialing plan changes such as number creation or
private number destination changes.  Private dialing plan
numbers can be routed to different locations based on the time
of day, which improves call handling and can help quickly
initiate disaster recovery plans if an office is inaccessible.

"With VoIP On-Net Plus, we're able to reach our offices in nine
locations as though they were in neighboring towns," said Cheryl
Mook, team leader telecommunications, Lord Corp.  "In addition
to the cost savings, VoIP On-Net Plus allows us to migrate to a
converged voice, video and data environment by using our
existing equipment."

"Global Crossing VoIP On-Net Plus Service delivers the
simplicity and flexibility of a fully integrated single
connection, while offering the VPN functionality, improved
network performance, security and seamless TDM interoperability,
easing the migration from a legacy to next-gen voice solution,"
commented Will Stofega, research manager for VoIP services at
IDC.  "With VoIP On-Net Plus Service, Global Crossing continues
to push the frontier of innovation by bringing the advantages of
IP technologies to the marketplace."

Customers can also benefit from VoIP On-Net Plus by adding
Global Crossing Ready-Access audio conferencing service to their
network as an on-net private dialing plan number, enabling them
to fully integrate audio conferencing capabilities into their
corporate VoIP solutions.

VoIP On-Net Plus provides customers full call detail records for
on-net completions, and the service is fully integrated with
Global Crossing VoIP Outbound(TM), Global Crossing VoIP
Local(TM) and Global Crossing VoIP Toll Free(TM) services.  
Offered in managed or non-managed environments, all of Global
Crossing's enterprise VoIP services offer carrier-class quality,
backed by end-to-end converged IP services with service level
agreements for jitter, packet loss, availability and latency.  
Location-to-location calling via Global Crossing VoIP On-Net
Plus Service is available in the more than 600 cities in 60
countries and 6 continents served by Global Crossing IP VPN
Service(TM).  Off-net, gateway-type service to and from the
Public Switched Telephone Network (PSTN) complements Global
Crossing VoIP Outbound and VoIP Local Services.

Global Crossing VoIP Services supports multiple compression
schemes including G.711 and G.729, and IP signaling protocols
including SIP and H.323.  Global Crossing offers various access
options including:

   -- IP VPN,
   -- Private Line,
   -- Dedicated Internet Access, and
   -- public Internet.

                     About Global Crossing

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

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


MONTPELIER RE: May Get Additional Capital from Wilbur Ross
----------------------------------------------------------
The Royal Gazette relates that billionaire financier Wilbur Ross
may increase his US$100 million investment in Montpelier Re
Holdings Ltd.

"For us, US$100 million is not such a big investment," Mr. Ross,
chairman of New York-based WL Ross & Co., said in an interview
with the Gazette.  "We would have appetite for more with
Montpelier or perhaps with some other very good reinsurance
companies."

Mr. Ross, the Gazette relates, expects demand for reinsurance
will increase in the wake of the US$52.7-billion hurricane
claims in 2005.

"Premiums have gone up enormously," Mr. Ross told the Gazette.  
"The prices of the products are now proper even if there is
greater severity and greater frequency of hurricanes, as many
people forecast."

Headquartered in Bermuda, Montpelier Re Holdings Ltd., through
its operating subsidiary Montpelier Reinsurance Ltd., is a
premier provider of global property and casualty reinsurance and
insurance products.  During the year ended December 31, 2005,
Montpelier underwrote US$978.7 million in gross premiums
written.  Shareholders' equity at December 31, 2005, was US$1.1
billion.

                        *    *    *

On Jan. 4, 2006, Moody's Investors Service assigned Ba1 rating
on Montpelier Re Holdings Ltd.'s subordinated shelf and Ba2 on
preferred shelf.  Moody's said the outlook for the ratings is
stable.




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


COEUR D' ALENE: Bolivia Won't Nationalize San Bartolome Project
---------------------------------------------------------------
Coeur d'Alene Mines Corp. has been informed by the Minister of
Mines of Bolivia that the country has no intention of seeking to
nationalize the company's San Bartolome project.   The company
remained in regular contact with government officials in Bolivia
over the past several weeks.  

As reported in the Troubled Company Reporter on May 4, 2006,
Coeur clarified that the Bolivian national mining company,
Corporacion Minera Bolivia -- Comibol -- is the underlying owner
of all of the mining rights relating to the San Bartolome
project with the exception of the Thuru property, which is owned
by the Cooperativa Reserva Fiscal, a local miners' cooperative.  
In essence, Comibol already owns virtually all of the mining
rights for the associated land package at Coeur's San Bartolome
project.

The company continues to expect that any potential government
proposals to revise tax and royalty structures in the mining
industry would be reasonable.  The company currently plans to
complete the project and begin producing silver toward the end
of 2007.  San Bartolome is expected to produce 6 to 8 million
ounces of silver per year.

As previously reported, on Dec. 31, 2005, Coeur had
approximately US$35 million investment in the San Bartolome
project.  Such amount is insured by a risk insurance policy from
the Overseas Private Investment Corporation.  The policy is in
the amount of US$155 million and covers 85% of any loss arising
from expropriation, political violence, or currency
inconvertibility.

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 Corporation's US$180 Million notes due
Jan. 15, 2024, carry Standard & Poors' B- rating.


* BOLIVIA: Grants El Mutun Mine Contract to Jindal Steel
--------------------------------------------------------
The government of Bolivia awarded a contract to develop the El
Mutun mine to Indian firm Jindal Steel and Power Ltd., Reuters
reports.

The bidding for El Mutun has been put on hold several times
under previous administrations but regional leaders from Santa
Cruz demanded that the process be finally set on May 30.  Juan
Ramon Quintana, the presidential chief of staff, said that the
industrialization of El Mutun would be done under control of the
state, at the command of the state and with the state having a
majority shareholder interest.

El Mutun, owned by state mining firm Comibol, is a 60-sq-km site
in Santa Cruz, near the Brazilian border.  It is believed to
hold one of the biggest iron-ore deposits in the world,
estimated over 40 billion tons and were said to be of medium-
grade quality.  Magnesium and limestone can also be found in El
Mutun, Reuters relates.  

Jindal initially promised to invest up to US$2.3 billion to ore
mining and steel production, officials were quoted by Reuters as
saying.  It was the biggest investment in a single project in
Bolivia and a boost for the government, which nationalized the
hydrocarbons sector in May.

Carlos Villegas, the planning minister, told journalists and
local leaders, "The company firmly manifested the government's
commitment to the El Mutun project, to Santa Cruz and to
Bolivia.  From now on we won't just earn money by exporting raw
materials, but also from producing steel in the mother of all
industries -- steel-making."

Reuters reports that the government's conditions on the El Mutun
bidding had been changed to include a steel production operation
to generate jobs -- which officials expect to be about 10,000
-- and supply Bolivia's domestic needs.  The government also
demanded that instead of charcoal, the site be fueled with the
Bolivia's natural gas supplies.  The project will include
extending a gas pipeline between Bolivia and Brazil and building
a rail-linked river port.

Reuters states earlier attempts to develop the mine had been
unsuccessful due to inaccessibility and concerns over fuel
supplies.

The eventual investment would be much more than the sum already
committed, Arving Sharma, India's consul general to Bolivia who
was acting as Jindal's representative, told Reuters.  

According to Reuters, Mr. Villegas had said in May that the
contract for the El Mutun exploitation would last 40 years.  The
successful bidder would get total administrative control of the
project for the first 20 years.  Control then would be shared
with Comibol.

                        *    *    *

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

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

Fitch said the Rating Outlook is Stable.




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


BANCO DO BRASIL: Brasilprev Expects 13% Boost in Pension Billing
----------------------------------------------------------------
Banco do Brasil's private pension plan unit, Brasilprev, sees
total billing to increase 13% this year from 10.3%, according to
local press reports.

Business News Americas relates that the unit reported an 18%
increase in its billing in the first quarter of 2006, reaching
BRL 550 million compared to the same quarter of 2005.

Eduardo Bom Angelo, the head of Brasilprev, said in May that the
same rate of growth would not continue.  However, BNamericas
states that a better-than-expected billing from pension plan
VGBL Made Brasilprev raise its estimates for the remainder of
2006.

Mr. Angelo told local financial daily Gazeta Mercantil that the
unit did not expect a large boost in VGBL contributions in the
first quarter.

Valor Economico states that Mr. Angelo is positive that billing
would grow 13% in the industry this year.

Brasilprev promised to introduce new products soon.  Although no
timeframe had yet been determined, Mr. Angelo was quoted by
Gazeta Mercantil as saying that he would really like it to be
this year.

Valor Economico states that the expansion plans of Brasilprev
include inviting clients with high income as they represent
500,000 of Banco do Brasil's 23 million account holders.

                        *    *    *

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


COPEL: Will Invest BRL11 Mil. to Start Araucaria Plant Operation
----------------------------------------------------------------
Copel aka Companhia Paranaense de Energia will spend BRL11
million to get the 480MW Araucaria gas-fired plant producing
power next year after acquiring a 60% in the plant from US
energy company El Paso, a company spokesperson was quoted by
Business News Americas as saying.

Copel paid El Paso US$190 million for the stake, which increases
its control in the plant to 80%.  The sale concluded a three-
year dispute between Copel and El Paso.  Copel's controller, the
Parana state government, had claimed that accords signed by the
state governor until 2003 were disadvantageous to Copel and that
technical problems did not allow Araucaria to work.

The spokesperson told BNamericas, "All the studies to correct
technical errors are concluded and Copel believes it's possible
to start generating power next year."

BNamericas relates that according to the spokesperson, Copel has
began negotiations with equipment supplier Siemens Westinghouse
to adapt the equipment in the plant to technical conditions as
required by Brazil's national grid operator ONS.

Copel is likely to seek long-term power sale accords from
Araucaria at power auctions this year, BNamericas says.

Copel said in a statement that it has also drawn up plans to
invest BRL30 million to BRL40 million in the plant to allow it
to also burn diesel and the new H-Bio diesel being developed by
Petrobras.

Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Paran and has a generating capacity of nearly 4,600 MW,
primarily from hydroelectric plants.  COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services.  The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitly postponed.  In response, COPEL is
re-evaluating its corporate structure.  The government of Paran
controls about 59% of COPEL.

                        *    *    *

Copel's BRL100,000,000 debentures due March 1, 2007, is rated
Ba3 by Moody's.


COMPANHIA SIDERURGICA: Holds Joint Venture Talks with Baosteel
--------------------------------------------------------------
CSN aka Companhia Siderurgica Nacional is holding negotiations
with Shanghai Baosteel Group Corp., the largest steelmaker in
China, for the creation of a joint venture steel plant in
Brazil, according to China Business News.

CBN states that an unnamed Baosteel senior executive said that
the company aims for a 50% stake in the venture, which has a
projected capacity of six million tons a year.

A Baosteel press officer has declined to give comments, XFN-Asia
states.

CSN is one of the lowest-cost steel producers in the world,
which is a result of its access to proprietary, high-quality
iron ore (at the Casa de Pedra mine); self-sufficiency in
energy; streamlined facilities; and logistics advantages.  This
is in addition to the group's strong market position in the
fairly concentrated steel industry in Brazil.

                        *    *    *

On Jan. 26, 2006, Standard and Poor's Rating Services assigned a
'BB' corporate credit rating on Brazilian flat carbon steelmaker
Companhia Siderurgica Nacional.

The 'BB' corporate credit rating on CSN reflects the company's
exposure to volatile demand and price cycles, increasing
competition in its home and predominant market of Brazil,
aggressive dividend policy and capital investment plan, and
sizable gross-debt position.  These risks are partly offset by
CSN's privileged cost position and sound operating profile,
favorable market position in Brazil, strong export capabilities
to offset occasional domestic demand sluggishness, and
increasing business diversification.


COMPANHIA VALE: Asserts Chinese Steelmakers Must Accept 19% Hike
----------------------------------------------------------------
Companhia Vale do Rio Doce insists Chinese steelmakers should
accept a 19% price hike on iron ores, Bloomberg News reports.  
The company said a lower rate wouldn't be fair to its other
clients.

Chinese companies, which account for 43% of global imports of
iron ore, have wanted a lower rate after last year's 71.5%
increase.

Companhia Vale first reached a rate hike agreement with German
firm ThyssenKrupp AG.  As customary in previous years, the deal
would have been made the benchmark for this year's price
increase.  Despite Japan, Taiwan and Korea's agreeing to the 19%
increase, China remains firm in wanting a lower price increase.

"The market is clearly tight," Tim Barker at BT Financial Group
in Sydney, Australia, told Bloomberg.  "The Chinese need the
material, and they will need to come an agreement with the
producers."

Luo Wei, an analyst with China International Capital Corp., told
Bloomberg that talks between suppliers and Chinese steelmakers
will only be just "a formality, and we're all expecting them to
sign the deal within a week or so."

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

                        *    *    *

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

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

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


GLOBAL CROSSING: Will Provide Internet Services to CTBC
-------------------------------------------------------
Global Crossing reported that it entered into a one-year
contract with Brazilian telecommunication provider, Companhia de
Telecomunicacoes do Brasil Central or CTBC, to provide gigabit
ethernet (Gig-E) IP tservices for fast, reliable, high
performance Internet connectivity.  By selecting Global
Crossing's IP solution, CTBC said it aims to maintain services
that offer exceptional speed, security, reliability and
congestion-free Internet access.
    
Currently, more than one million subscribers utilize CTBC's
national and international long distance services.  

Under the agreement signed by Global Crossing and CTBC, the
latter's customers will benefit from Global Crossing's Tier-1 IP
backbone, including more than 100,000 route miles of the most
advanced fiber-based IP network in the world and extensive
peering that provides direct links to many of the best Internet
content sites with minimal network hops and best-in-class low-
latency connectivity.

Furthermore, with gigabit ethernet IP transit service, CTBC will
be able to scale their solutions on demand as Internet traffic
and applications continue to expand, responding quickly to
changing service requirements.

"In addition to being widely recognized in the market, Global
Crossing met the requirements we were searching for in a
provider, presenting solutions to enhance the quality of the
services provided to our customers, with dynamic scalability to
handle higher volumes of traffic without impacting performance
quality," said Jose Antonio Fechio, CTBC's IT director.
    
Global Crossing IP Transit service leverages Global Crossing's
worldwide network and extensive private peering relationships to
provide high-performance, always-on, direct high-speed
connectivity to the Internet at speeds ranging from T1/E1 to
OC48/STM16 on a global basis.  Connection to Global Crossing's
IP network is available though a variety of access options,
including IP VPN, Frame Relay, Asynchronous Transfer Mode, metro
rings, Ethernet, and other global access services based on
location and availability.
    
"We are pleased that CTBC has selected Global Crossing to
provide high performance IP Transit services that will benefit
their customer base," said Dale Miller, Global Crossing's
managing director for Latin America.

"This agreement underscores our leadership in serving Latin
America's top carriers and highlights the unwavering quality and
reliability of our services."
    
CTBC will also be able to count on the support offered by
uCommand(R) -- an industry-leading online account management
tool, available 24x7, which allows customers to monitor their
network, create utilization reports, establish end-user and
product accounts, and view monthly billing reports.

                  About Companhia de
          Telecomunicacoes do Brasil Central

CTBC, Grupo Algar's telecommunications company, was founded in
1954 and is present in the segments of fixed telephony,
cellular, data center, Internet, data communications and pay TV.  
Currently, the carrier has 1.2 million customers and provides
services to the following segments: residential, business (micro
and small businesses), corporate (medium and large businesses)
and carriers.  Its area of coverage extends through part of the
states of Minas Gerais, Mato Grosso do Sul, Sao Paulo, Goias,
Distrito Federal, Parana and Rio de Janeiro, in Brazil.  Its
long distance calling code 12 is currently utilized in all of
the country for national and international long distance calls.
    
                      About Global Crossing

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

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




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


ADMIRAL CBO: Moody's Places Caa3 Rating on Watch & May Upgrade
--------------------------------------------------------------
Moody's Investors Service placed these notes issued by Admiral
CBO (Cayman) Ltd. on watch for possible upgrade:

   -- US$171.5 million Class A-1 Senior Secured Floating Rate
      Notes Due 2011

       -- Prior Rating: Baa3

       -- Current Rating: Baa3 (on watch for possible upgrade)

   -- US$47.5 million Class A-2 Senior Secured Fixed Rate Notes
      Due 2011

       -- Prior Rating: Caa3

       -- Current Rating: Caa3 (on watch for possible upgrade)

According to Moody's, the rating actions are primarily the
result of significant delevering of the Class A-1 notes.


COMPASS ROYALTY: Sets June 16 as Proofs of Claim Filing Deadline
----------------------------------------------------------------
Creditors of Compass Royalty I, Ltd., which is being voluntarily
wound up, are required to present proofs of claim by
June 16, 2006 to Chris Watler and Richard Gordon, the company's
liquidators.

Compass Royalty started liquidating assets on April 26, 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 liquidators.  
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:

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


HSJ LIMITED: Liquidator Won't Accept Claims After June 16
---------------------------------------------------------
Helen Allen and Mike Hughes, the liquidators of HSJ Limited's
assets, will stop accepting creditors' claims by
June 16, 2006.

Creditors who fail to submit claims by June 16, will not receive
any distribution that the company will make.

HSJ Limited started liquidating assets on April 26, 2006.

The liquidators can be reached at:

           Helen Allen
           Mike Hughes
           Maples Finance Limited
           P.O. Box 1093, George Town
           Grand Cayman, Cayman Islands


KPA LTD: Last Day for Proofs of Claim Filing Is on June 16
----------------------------------------------------------
Creditors of KPA Ltd., which is being voluntarily wound up, are
required to present proofs of claim by June 16, 2006, to Guy
Major and Mike Hughes, the company's liquidators.

KPA Ltd. started liquidating assets on April 26, 2006.

Creditors must send their full names, addresses, descriptions,
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:

           Guy Major
           Mike Hughes
           Maples Finance Limited
           P.O. Box 1093 George Town
           Grand Cayman, Cayman Islands


NICOS SPC: Creditors Must Present Proofs of Claim by June 21
------------------------------------------------------------
Creditors of Nicos SPC Holdings Corp. are required to prove
their claims to Jamal Young and Janet Crawshaw, the company's
liquidators, by June 21, 2006, or be excluded from receiving any
distribution or payment that the company will make.

Creditors are required to send by June 21 their full names,
addresses, descriptions and the full particulars of their debts
or claims, and the names and addresses of their lawyers, if any,
to the liquidators.

The company started liquidating assets on May 3, 2006.

The liquidators can be reached at:

         Jamal Young
         Janet Crawshaw    
         Attention: Marguerite Britton
         P.O. Box 1109, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 945-7755
         Fax: (345) 949-7634


RL CAPITAL: Creditors Must File Proofs of Claim by June 16
----------------------------------------------------------
Creditors of R. L. Capital Limited Company, which is being
voluntarily wound up, are required to file proofs of claim by
June 16, 2006, to Richard Ellison and Richard Gordon, 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 any distribution that the company will make.

The company began liquidating assets on May 1, 2006.

The liquidators can be reached at:

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


SANTA ISABEL: Creditors Have Until June 16 to File Claims
---------------------------------------------------------
Santa Isabel Overseas's creditors are required to submit
particulars of their debts or claims by June 16, 2006, to the
company's appointed liquidators, Richard Gordon and Jon Roney.  
Failure to do so will exclude them from receiving any
distribution that the company will make.

The company started liquidating assets on April 27, 2006.

The liquidators can be reached at:

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


SCEPTRE INT'L: Proofs of Claim Filing Deadline Is June 16
---------------------------------------------------------
Creditors of Sceptre International Limited are required to
submit particulars of their debts or claims by June 16, 2006, to
the company's appointed liquidators, Richard Gordon and Jon
Roney.  Failure to do so will exclude them from receiving the
benefit of any distribution that the company will make.

Sceptre International started liquidating assets on
April 25, 2006.

The liquidators can be reached at:

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


SECOND EMERGING: Creditors Must File Proofs of Claim by June 16
---------------------------------------------------------------
Creditors of Second Emerging Markets CBO, Limited, are required
to submit particulars of their debts or claims by June 16, 2006,
to Mora Goddard and Mike Hughes, the company's appointed
liquidators.  Failure to do so will exclude them from receiving
any distribution that the company will make.

The company started liquidating assets on May 4, 2006.

The liquidators can be reached at:

            Mora Goddard
            Mike Hughes      
            Maples Finance Limited
            P.O. Box 1093, George Town
            Grand Cayman, Cayman Islands


START INVESTMENTS: Proofs of Claim Must be Filed by June 16
-----------------------------------------------------------
Creditors of Start Investments Limited, which is being
voluntarily wound up, are required to present proofs of claim by
June 16, 2006, to Hugh Thompson and Richard Gordon, 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 any distribution that the company will make.

Star Investments began liquidating assets on April 21, 2006.

The liquidators can be reached at:

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


UNITED MULTI-SECTOR: Proofs of Claim Must be Filed by June 16
-------------------------------------------------------------
Creditors of United Multi-Sector CDO I Limited, which is being
voluntarily wound up, are required to present proofs of claim by
June 16, 2006, to Helen Allen and Emile Small, the company's
liquidators.

The company started liquidating assets on May 4, 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 any
distribution that the company will make.

The liquidators can be reached at:

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




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


* COLOMBIA: Nine Firms Interested in Bogota Airport Concession
--------------------------------------------------------------
Colombia's presidential press office disclosed in a statement
that nine firms bought forms to bid for a 20-year concession on
the Bogota El Dorado airport.

The companies, according to the statement, have until today,
June 5, to file bids for the concession with the government.  
The concession will be awared in July.

According to Dow Jones, Aerocivil -- the airport authority in
Colombia -- launched the auction process on Dec. 14, 2005.

Dow Jones Newswires recalls that the Colombian government had
said in March that seven firms were interested in the auction.  
However, potential bidders have come.  

Reuters reports that companies who bought bidding forms for
COP12 million include:

       -- Organizacion de Ingenieria Internacional SA, a
          Colombian engineering company,

       -- Argentina's Corporacion America SA,

       -- Spain's state-owned Aeropuertos Espanoles y Navegacion
          Area,

       -- privately operated Abertis Infraestructuras SA,

       -- China-based Stratis Cia.,

       -- Mexico's MNV,

      -- Mexico's Pisa

      -- Colombia's Conconcreto SA, and

      -- Colombia's Mario Huertas Cote.

Martin Gonzalez -- spokesman for Aerocivil -- told Dow Jones
that the government will grant the concession to the bidder that
offers to transfer the biggest share of revenue back to the
government.  According to Dow Jones, the winning bidder will:

      -- operate the country's largest airport,
      -- invest as much as US$650 million in upgrades, and
      -- commit to building new terminals for:

             * international flights,
             * domestic flights, and
             * for freight.

                        *    *    *

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

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

Fitch said the Rating Outlook is Stable.




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


CENTRAL AMERICAN: Earns US$24,767 in 2006 First Fiscal Quarter
--------------------------------------------------------------
Central American Equities Corp. filed its first quarter
financial statements for the three months ended March 31, 2006,
with the US Securities and Exchange Commission on May 17, 2006.

The company earned US$24,767 of net income on US$410,121 of
revenues for the three months ended March 31, 2006.

At March 31, 2006, the company's balance sheet showed
US$5,447,653 in total assets, US$674,289 in total liabilities,
and US$4,773,364 in stockholders' equity.

The company's March 31 balance sheet also showed strained
liquidity with US$160,930 in total current assets available to
pay US$421,032 in total current liabilities coming due within
the next 12 months.

Full-text copies of the company's financial statements for the
three months ended March 31, 2006, are available for free at
http://ResearchArchives.com/t/s?a58

                     Going Concern Doubt

As reported in the Troubled Company Reporter on May 4, 2006,
Killman, Murrell & Company, P.C., in Odessa, Texas, raised
substantial doubt about Central American Equities Corp.'s
ability to continue as a going concern after auditing the
Company's consolidated financial statements for the year ended
Dec. 31, 2005.  The auditor pointed to the company's sales
growth uncertainty and inability to raise sufficient capital.

Central American Equity Corp. provides an integrated eco-
vacation experience in Costa Rica, and owns and operates hotels
and real property in that place.


* COSTA RICA: Unions to Protest Free Trade Accord with US
---------------------------------------------------------
Unions in Costa Rica will hold a strike against the country's
free trade agreement with the United States on Wednesday, Inside
Costa Rica reports.

The unions told Inside Costa Rica that the free trade accord
will affect their work rights.

Albino Vargas, the secretary of the Association of Public
Employees, said in a news conference on last week that the
Central American Free Trade Agreement or CAFTA means to
retrogress in breastfeeding, health and holidays.

Inside Costa Rica states that Mr. Vargas criticized the
Constitutional Court's turning down various clauses that would
grant benefits to public sector officials.  The clauses affect
the principle of equity with respect to the rest of the workers,
they say.

The court was violating the Constitution to adjust to the CAFTA,
Mr. Vargas asserted, Inside Costa Rica relates.

                        *    *    *

Costa Rica is rated by Moody's:

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

Fitch assigned these ratings to Costa Rica:

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

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

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




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


* CUBA: Will Intensify Economic Cooperation with Indonesia
----------------------------------------------------------
Cuba will increase its bilateral economic cooperation with
Indonesia, Antara News reports.

Cuba's foreign affairs minister, Felipe Perez Roque, met with
his Indonesian counterpart, Nur Hassan Wirajuda, and reached an
agreement, Desra Percaya, the Indonesian ministry's spokesman
told Antara.

According to Antara, the volume of the two-way trade between the
countries has been relatively low.  Cuba's exports to Indonesia
were still small in volume and in value as they were mainly of
household goods.  The value of Indonesia's exports to Cuba in
2004 amounted to US$1.37 million while its imports from Cuba was
only about US$2,352.

Antara states that Cuba's imports from Indonesia included:

   -- Rice,
   -- shoes,
   -- garments,
   -- electronic goods,
   -- spare-parts of communication equipment, and
   -- television sets.

Antara relates that Cuba's exports to Indonesia reached US$16
million between 1997 and 1998, according to data collected by
the country's foreign trade ministry.  Cuba's exports to
Indonesia fell to US$500,000, with sugar as the only commodity
exported in 1998 to 1999.  In 1999 to 2000, sugar was excluded
in Cuba's exports to Indonesia.  

The low value of trade between the countries was due to the
geographic distance and other technical barriers, Mr. Desra told
Antara.  Indonesian products are usually shipped to Mexico due
to distance.

                        *    *    *

Moody's assigned these ratings on Cuba:

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




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


FALCONBRIDGE LTD: Xstrata Asserts Its Cash Offer Is Best Choice
---------------------------------------------------------------
Xstrata plc noted the announcement by Falconbridge Ltd.'s board
of directors expressing its continued support for the Inco bid
to acquire the company.  Xstrata reaffirms its belief that its
CDN52.50 all cash offer for Falconbridge shares is the best
choice for Falconbridge shareholders, the company, community,
and employees.
    
The Inco share price has risen by 11% since May 5, 2006, the day
on which Teck announced their premium offer for Inco.  During
the same period and despite continued buoyant metal prices, the
S&P mining index has declined by 11%.  By any objective measure,
even taking into account the takeover premium currently embedded
in the Inco share price, Xstrata's all cash offer of CDN52.50
remains a superior offer to that of Inco.
    
Mick Davis, Xstrata Chief Executive, said, "Xstrata is offering
Falconbridge shareholders a higher price in cash for their
shares and we believe this clearly makes our bid the best choice
for shareholders. Our offer is also the best choice for
Falconbridge employees, particularly in light of Inco's recent
agreement with the Steelworkers' Union to protect Inco employees
at Sudbury from lay-offs for three years, including following a
take-over of Inco by any third party.  We stand by our
commitment to Falconbridge employees to make no lay-offs at
Sudbury for a minimum of three years."
    
Xstrata said it is a serious, long-term investor in mining
businesses around the world, with a proven track record of
creating sustained jobs, growth and value.  For existing
Falconbridge employees, Xstrata ownership will focus on growth
and sustained investment rather than on the delivery of
aspirational cost savings estimates.
    
Xstrata remains confident that it will obtain the approvals of
its shareholders and regulatory authorities and is working to
achieve these within the shortest timeframe possible.
    
On May 18, 2006, Xstrata, Falconbridge's largest shareholder,
Inco, made its fully underwritten offer for the company valuing
the total common share capital of Falconbridge at approximately
CDN20.0 billion, approximately US$18.1 billion.  The Xstrata
offer is open for acceptance until 8:00 p.m., Toronto time, on
Friday, July 7, 2006, unless extended or withdrawn.
    
Xstrata's offer document and offering circular were mailed to
Falconbridge registered shareholders on May 30, 2006.  The offer
and offering circular have been filed on SEDAR and are available
on these websites:

             http://www.sedar.com
             http://www.sec.gov
             http://www.xstrata.com.

For inquiries, Falconbridge shareholders may contact:

             Kingsdale Shareholder Services Inc.
             Tel: 1-866-639-7993 (toll free)
                  +1 (416) 867-2272 (collect)
             E-mail: contactus@kingsdaleshareholder.com


                       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 does business 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.


* DOMINICAN REPUBLIC: Must Revise Laws for Trade Pact with US
-------------------------------------------------------------
The Dominican Republic has to revise several laws as a condition
set by the United States for the implementation of the DR-CAFTA
or the Dominican Republic-Central America-United States Free
Trade Agreement, the Dr1 newsletter reports.

According to Dr1, the office of the US Trade Representative has
confirmed that it requires the changes.

Dr1 relates that Everett Eisenstat, the Deputy Secretary for The
Americas, spoke in an online conference and said that US
requirements for change are specifically aimed at:

  -- Law 173 regarding the representation of foreign companies,
  -- Law 65-01 on copyrights, and
  -- Law 20-01 on industrial property.

Dr1 says that these requirements were confirmed to the Dominican
mission in Washington.

Mr. Eisenstat was quoted by Dr1 as saying that the US government
wants that countries involved in the treaty need to show their
commitment to DR-CAFTA, Dr1 states.   

The US is working on including the Dominican Republic into the
treaty soon, Dr1 reports.  However, as reported in Diario Libre,
the July 1 date was not mentioned by Mr. Eisenstat.

As reported in the Troubled Company Reporter on May 22, 2006,
Kevin Manning -- president of the American Chamber of Commerce
said that the DR-CAFTA will scheduled to take effect in the
Dominican Republic on July 1, 2006, as prescheduled.

                        *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

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

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

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




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


* ECUADOR: Wants Fair Trade Deals Without US & European Pressure
----------------------------------------------------------------
Ecuador demanded for fair trade agreements without the United
States and European pressure, Prensa Latina reports.

According to Prensa Latina, Ecuador's President Alfredo Palacio
questioned the use of trade deals for political pressure that
could damage the less developed nations.

Ecuador wants to reach a free trade pact with Washington, the
European Union and other world regions, but in mutual respect
and under equal conditions, President Palacio was quoted by
Prensa Latina as saying.

As reported in the Troubled Company Reporter on Jun 1, 2006,
President Palacio signed a series of energy cooperation accords
-- including refining Ecuadorian crude in Venezuela -- with Hugo
Chavez, his Venezuelan counterpart.  However, correspondents say
that the accord is likely to raise concerns in the US over the
growing regional influence of Venezuela's President Hugo Chavez,
who has been very vocal of his abhorrence to the US.  The
foreign ministry of Ecuador said in a statement that the
Venezuelan president's visit is much more technical than
political.  The statement said they were trying to build
integration on the continent and not form any kind of anti-US
access.

As reported in the Troubled Company Reporter on May 31, 2006,
Ecuador declined an invitation by President Chavez to join in an
energy alliance that will challenge the economic influence of
Washington in the Latin American region.

                        *    *    *

Fitch Ratings assigned these ratings on Ecuador:

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


* ECUADOR: Secures US$60-Mil. Loan for Cash Transfer Program
------------------------------------------------------------
The World Bank's Board of Directors approved a US$60-million
loan for Ecuador to strengthen its existing Human Development
Bond cash transfer program, which seeks to protect poor families
and foster investment in human capital.

"This project will directly support the Government of Ecuador in
the development of a comprehensive social protection strategy
for the country," said Marcelo Giugale, World Bank Director for
Bolivia, Ecuador, Peru and Venezuela.  "In addition, the project
will contribute to poverty reduction by creating household-based
incentives to fight malnutrition and attain universal primary
and secondary education."

The Human Development Bond or BDH is a conditional cash transfer
program created in 2003 by merging two previously existing
programs -- the Solidarity Cash Transfer and the Schooling
Grant.  The BDH pays a monthly transfer to the 40% poorest
households in the population provided they fulfill certain
education and health co-responsibilities. The Ministry of Social
Welfare, through the Social Protection Program, administers the
program.  It has a budget of US$200 million, equivalent to 57%
of all social assistance expenditure and 0.7% of GDP, which
makes it the biggest conditional cash transfer program in Latin
America in terms of budget share.

The Support to Reform of the Human Development Bond Project
seeks to reduce poverty and promote human capital investments
among poor families by consolidating the role of the BDH as a
conditional cash transfer program, and of the Beneficiary
Selection Project or SelBen as a targeting tool for social
programs.  SelBen is a proxy-means test that uses information on
household demographic composition, assets, and other variables
to classify households according to their welfare levels.     

The project will support the BDH program by financing two
components.

The first component will:

   -- provide institutional strengthening,
   -- support the consolidation of the BDH reforms, and
   -- help protect and provide opportunities for poor and
      vulnerable households in Ecuador.

The second component will protect transfers targeted to the
country's 40% poorest households with children ages 0-16 to
foster investments health, nutrition, and education.

"The project will support actions aimed at strengthening the BDH
program and ensuring that the technical, institutional, and
legal conditions necessary to guarantee a successful
consolidation of the BDH are in place," said Carolina Sanchez-
Paramo, World Bank task manager for the project.  "It will also
support the financing of Ecuador's development priorities while
increasing the impact and the quality of public spending," David
Warren, World Bank co-task manager for the project, said.

The US$60 million fixed-spread loan is repayable in 18 years and
includes a four-year grace period.

                        *    *    *

Fitch Ratings assigned these ratings on Ecuador:

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




===========
G U Y A N A
===========


DIGICEL: In Talks with Cel*Star for Acquisition of Guyana Assets
----------------------------------------------------------------
Digicel Limited held negotiations with Cel*Star for the possible
purchase of the latter's assets in Guyana, Kenneth Melin, a
Cel*Star marketing and sales director, told Stabroek News.

Mr. Melin told Stabroek that it is not yet clear on how close
the two firms might be to reaching an agreement.

The negotiations between Cel*Star and Digicel seem to have come
close to being concluded on more than one occasion, according to
Stabroek.

Mr. Melin did not provide a reason for the delay when asked by
Stabroek on whether the size of Digicel's offer for the assets
of Cel*Star might be a problem in the takeover talks.

Rumors have been circulated since 2005 regarding the likely
entry of Digicel into Guyana's telecommunications market,
Stabroek relates.

As reported in the Troubled Company Reporter on Jun 1, 2006,
Digicel has studied the possibility of acquiring either Cel*Star
Guyana or Guyana Telephone & Telegraph aka GT&T.

According to Stabroek, GT&T confirmed that there have been
meetings with Digicel officials but denied that any negotiations
for a takeover have taken place.

Mr. Melin informed Stabroek in February that the entry of
Digicel into the local telecommunications market could squeeze
out either GT&T or Cel*Star due to the size of the local market.  

Mr. Melin had thought that Digicel might be eager to close a
deal with Cel*Star before the Cricket World Cup 2007, which is
anticipated to bring huge raise in telecommunications traffic,
Stabroek reports.

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

                        *    *    *

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




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


DELTA AIR: Adds Nine New Routes Across LatAm & Caribbean
--------------------------------------------------------
Delta Air Lines added nine new routes to seven destinations
across Latin America and the Caribbean this month, Atlanta
Business Chronicle reports.

Glen Hauenstein, the executive vice president of network
planning and revenue management in Delta, was quoted by
Primezone as saying, "Since November, we have successfully
launched almost 20 new routes across Latin America and the
Caribbean and are seeing an extremely positive response from our
customers for these new services."

According to Cincinnati Business Courier, service for all the
new routes started on June 1.

Cincinnati Business relates that Delta will serve five of these
destinations:

    -- Kingston, Jamaica;
    -- Aquadilla and Ponce, Puerto Rico; and
    -- Guayaquil and Quito, Ecuador.

Cancun, Mexico, and Sao Paulo, Brazil, will get expanded service
to new US gateways, Cincinnati Business states.

Cincinnati Business says that the new Cincinnati-based route VIA
Boeing 737-800 aircraft will be a Saturday flight to and from
Cancun, Mexico, with this schedule:

    -- departure from the Cincinnati/Northern Kentucky
       International Airport at 9:37 a.m.,

    -- arrival in Cancun at 11:50 a.m.,

    -- return flight to leave Cancun at 1:00 pm., and

    -- arrival at 5:15 p.m.

Cincinnati recalls that Delta started in recent months service
to new nonstop destinations including:

   -- Acapulco, Merida, and Ixtapa/Zihuatanejo Mexico, and San
      Pedro Sula and Roatan, Honduras from Atlanta;

   -- Los Cabos, Mexico from Cincinnati;

   -- Mazatlan, Mexico from Salt Lake City;
    
   -- Puerto Vallarta and Acapulco, Mexico from New York JFK;
      and

   -- Ixtapa/Zihuatanejo from Los Angeles.

The expanded nonstop service to Latin America and the Caribbean
is part of a series of nearly 40 new routes to the two regions
added or announced by Delta in 2005 as part of the airline's
largest international expansion, Cincinnati Business reports.  

Headquartered in Atlanta, Georgia, Delta Air Lines --
http://www.delta.com/-- is the world's second-largest airline   
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 502 destinations
in 88 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners.  The Company and
18 affiliates filed for chapter 11 protection on Sept. 14, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-17923).  Marshall S. Huebner,
Esq., at Davis Polk & Wardwell, represents the Debtors in their
restructuring efforts.  Timothy R. Coleman at The Blackstone
Group L.P. provides the Debtors with financial advice.  Daniel
H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump
Strauss Hauer & Feld LLP, provide the Official Committee of
Unsecured Creditors with legal advice.  John McKenna, Jr., at
Houlihan Lokey Howard & Zukin Capital and James S. Feltman at
Mesirow Financial Consulting, LLC, serve as the Committee's
financial advisors.  As of June 30, 2005, the Company's balance
sheet showed US$21.5 billion in assets and US$28.5 billion in
liabilities.


MIRANT CORP: Resolves Electric Power Purchase Dispute with Pepco
----------------------------------------------------------------
Mirant entered into a settlement with Potomac Electric Power
Company that will resolve outstanding litigation between the
companies that arose from agreements entered into in 2000 as
part of Mirant's acquisition of power plants and other assets
from Pepco.

Mirant emerged from a Chapter 11 reorganization on Jan. 3, 2006,
but unresolved elements of its case have remained pending before
the bankruptcy court, including the disputes with Pepco that are
resolved by this settlement.

The settlement resolves a number of disputed matters, including
a long-term arrangement entered into in 2000 that required
Mirant to buy electric power from Pepco through 2021 at prices
significantly higher than market prices.  Mirant will be allowed
to reject this arrangement and avoid future payments.

                   Terms of the Settlement

Pepco will receive a claim under Mirant's previously approved
Plan of Reorganization that entitles it to receive a
distribution of common shares and cash with a value of US$520
million, subject to certain adjustments.  To satisfy the claim,
Mirant will distribute to Pepco up to 18 million shares of
Mirant common stock plus an additional amount of cash so that
Pepco receives a total of US$520 million.  Mirant will not issue
new shares to satisfy the Pepco claim but will use shares from
the shares to be distributed to creditors under its Plan of
Reorganization that were reserved for distribution on disputed
claims.

"It is good to have this matter behind us," Edward R. Muller,
chairman and CEO of Mirant, said.  "We look forward to resuming
normal business relations with our valued customer, Pepco."

A full-text copy of the material terms of the settlement
agreement is available at http://ResearchArchives.com/t/s?a4c

                        About Pepco

Headquartered in Washington, D.C., Potomac Electric Power
Company -- http://www.pepco.com/-- a subsidiary of Pepco  
Holdings, Inc., provides safe and reliable electric service to
more than 725,000 residential and commercial customers in
Washington, D.C., and Montgomery and Prince George's counties in
Maryland.

                       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's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao.  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.


MIRANT CORP: Will Pay PEPCO US$520 Million Under Settlement Pact
----------------------------------------------------------------
Reorganized Mirant Corporation and its debtor-affiliates ask the
U.S. Bankruptcy Court for the Northern District of Texas to
approve the settlement agreement it entered into with Potomac
Electric Power Cooperative and other settling parties:

    * Conectiv Energy Supply, Inc.;
    * PEPCO Energy Services, Inc.;
    * PEPCO Gas Services, Inc.;
    * PEPCO Holdings, Inc.; and
    * Potomac Capital Investment Corporation.

The Debtor and PEPCO have been involved in significant
litigation throughout the Debtors' bankruptcy proceedings.

The parties' disputes mainly relate to an Asset Purchase and
Sale Agreement for Generating Plants and Related Assets between
Old Mirant and PEPCO, a back-to-back arrangement entered into
under the terms of the APSA, and certain other executory
contracts and agreements.

Ian T. Peck, Esq., at Haynes and Boone, LLP, in Dallas, Texas,
tells the Court that with the assistance of William K. Snyder,
as Chapter 11 Examiner for Mirant, the New Mirant Entities and
PEPCO have reached an agreement for the resolution of their
disputes.

                       The Settlement

Under the Settlement Agreement, the Mirant Settling Parties will
assume the APSA, certain agreements with Southern Maryland
Electric Cooperative, and other agreements.

The Mirant Settling Parties are:

    * Mirant Corporation, as New Mirant;
    * Mirant Power Purchase, LLC;
    * MC 2005, LLC;
    * Mirant Mid-Atlantic, LLC;
    * Mirant Potomac River, LLC;
    * Mirant Chalk Point, LLC;
    * Mirant Piney Point, LLC;
    * Mirant MD Ash Management, LLC;
    * Mirant Energy Trading, LLC;
    * Mirant Services, LLC; and
    * the MC Plan Trust.

The Mirant Settling Parties will reject:

    * the Back-to-Back Arrangement; and

    * an Assignment and Assumption Agreement, dated December 19,
      2000, between PEPCO and certain New Mirant subsidiaries
      that PEPCO has asserted creates joint and severable
      liability on the part of those subsidiaries for various
      obligations assumed by Old Mirant under the APSA.

In addition, the parties will grant each other broad releases
relating to their current disputes.

PEPCO will receive:

    * an allowed Mirant Debtor Class 3 - Unsecured Claim, not
      subject to offset or reduction for any reason, in an
      amount that will result in an aggregate distribution in
      shares of common stock of New Mirant; and

    * cash having a guaranteed value of US$520,000,000 after
      certain commissions, fees and expenses have been paid.

PEPCO's Class 3 Claim constitutes damages for rejection of the
Back-to-Back Arrangement and the Assumption Agreement, and for
various other prepetition claims filed by PEPCO against one or
more of the Debtors that are released under the Settlement
Agreement.

A copy of the Settlement Agreement between New Mirant and PEPCO
is available for free at http://ResearchArchives.com/t/s?a6e

Mr. Peck says that the Settlement Agreement concludes almost
three years of intense and costly litigation in the Bankruptcy
Court, the U.S. District Court for the Northern District of
Texas, and the U.S. Court of Appeals for the Fifth Circuit.

Mr. Peck notes that Mirant has entered into a separate
settlement with SMECO.  SMECO's Settlement Agreement is part of
the overall resolution of the PEPCO disputes.

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's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao.  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 January 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.  
(Mirant Bankruptcy News, Issue No. 98; Bankruptcy Creditors'
Service, Inc., 215/945-7000)

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 8, 2005,
Standard & Poor's Ratings Services placed a 'B+' corporate
credit rating on Mirant and said the outlook is stable.




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


GRUPO MEXICO: Workers Hold Demonstrations at Cananea Copper Mine
----------------------------------------------------------------
Workers at Grupo Mexico's Cananea copper mine held
demonstrations on Thursday, Dow Jones Newswires reports.

The walkout is expected to last for several days, a local union
member told Dow Jones via telephone.

Juan Rebolledo, Grupo Mexico's vice president for international
affairs, informed Dow Jones that June 1 is a day off at the mine
as it is the anniversary of the 1906 strike.

According to Dow Jones, Mr. Rebolledo said that the full effect
of the strike would not be felt until Friday.

Mr. Rebolledo was quoted by Dow Jones as saying, "But I wouldn't
be surprised.  We're very disappointed with these announcements
of staggered walkouts."

Dow Jones relates that the National Mining and Metal Workers
Union has been in conflict with the Mexican government over the
union leadership since March 24.  Labor authorities maintained
that dissident Elias Morales is the leader and not Napoleon
Gomez Urrutia, whom the union has ratified.  Mr. Urrutia,
currently in Canada, is being investigated on allegations of
misuse of US$55 million Grupo Mexico handed for distribution
among workers in 2004 as part of the 1990 privatization of
Cananea and La Caridad.

"There will be a reduction in the production of copper in 2006,
principally because of the impact of the ongoing strike and the
work stoppages at La Caridad, which have affected production,"
Mr. Rebolledo told Dow Jones.

Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--   
through its ownership of Asarco and the Southern Peru Copper
Company, is the world's third largest copper producer, fourth
largest silver producer and fifth largest producer of zinc and
molybdenum.

                        *    *    *

Fitch Ratings assigned these ratings to Grupo Mexico SA de C.V.:

     -- foreign currency long-term debt, BB; and
     -- local currency long-term debt, BB.


KRISPY KREME: Files FY 2005 10K & Restates 2003 to 2004 Reports
---------------------------------------------------------------
Krispy Kreme Doughnuts, Inc., filed its financial results for
the fiscal year ended Jan. 30, 2005, with the Securities and
Exchange Commission on April 28, 2006.

The Company also restated its consolidated balance sheet as of
Feb. 1, 2004 (the last day of fiscal 2004) and its consolidated
statements of operations, of shareholders' equity and of cash
flows for fiscal 2004 and fiscal 2003.  Certain restatement
adjustments affected periods prior to fiscal 2003.

For the fiscal year ended Jan. 30, 2005, the Company reported a
US$198.3 million net loss on US$707.8 million of net revenues,
compared to US$48.6 million of net income on US$649.3 million of
net revenues for the year ended Feb. 1, 2004.

As of Jan. 30, 2005, the Company's balance sheet showed total
assets of US$480.3 million and total debts of US$239.3 million.

As reported in the Troubled Company Reporter on April 19, 2006,
the Company noted that it is unable to file timely its annual
report on Form 10-K for fiscal 2006 because there have been
substantial resources devoted to completing the 10-K for fiscal
2005.  The Company intended to file the fiscal 2006 10-K as soon
as practicable after completing its fiscal 2005 10-K.

A full-text copy of Krispy Kreme's Annual Report is available
for free at http://researcharchives.com/t/s?a59

                      About Krispy Kreme                   

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
-- http://www.krispykreme.com/-- is a leading branded specialty   
retailer of premium quality doughnuts, including the Company's
signature Hot Original Glazed.  There are currently
approximately 320 Krispy Kreme stores and 80 satellites
operating systemwide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.


PENN OCTANE: Receives Nasdaq Delisting Notice  
---------------------------------------------
Penn Octane Corporation received, on May 23, 2006, a written
Staff Determination from The Nasdaq Stock Market's Listing
Qualifications Department.

The Staff Determination stated that Penn Octane has not regained
compliance with the minimum bid price requirement of $1.00 per
share as provided in Marketplace Rule 4310(c)(4) for continued
listing on NASDAQ.  Therefore, Penn Octane's common stock is
subject to delisting from the NASDAQ Capital Market at the
opening of business on June 1, 2006.  Penn Octane has requested
a hearing before a Nasdaq Listing Qualifications Panel to review
the Staff Determination.  There can be no assurance that the
Hearing Panel will grant Penn Octane's request for continued
listing.  A timely request for a hearing will stay the delisting
pending a determination by the Hearing Panel.  An adverse
determination by the Hearing Panel would result in immediate
delisting, whether or not Penn Octane further appeals the
decision of the Hearing Panel.

If Penn Octane's common stock is delisted from the NASDAQ
Capital Market, Penn Octane will continue to file all required
reports with the Securities and Exchange Commission and intends
to seek quotation in the OTC Bulletin Board through a market
maker.  The OTC Bulletin Board is a regulated quotation service
that displays real-time quotes, last sale prices and volume
information in over-the-counter securities.  Delisting by NASDAQ
may result in decreased market interest in Penn Octane common
stock, investors and stockholders may experience more difficulty
in buying and selling Penn Octane common stock, and Penn
Octane's stock price may decline.  In addition, Penn Octane may
experience greater difficulty in obtaining necessary debt and
equity capital for potential acquisitions or the operation of
its business.

                       About Penn Octane

Headquartered in Palm Desert, California, Penn Octane
Corporation (NASDAQ:POCC) -- http://www.pennoctane.com/--  
formerly known as International Energy Development Corporation
buys, transports and sells liquefied petroleum gas for
distribution in northeast Mexico, and resells gasoline and
diesel fuel.  The Company has a long-term lease agreement for
approximately 132 miles of pipeline, which connects ExxonMobil
Corporation's King Ranch Gas Plant in Kleberg County, Texas and
Duke Energy's La Gloria Gas Plant in Jim Wells County, Texas, to
the Company's Brownsville Terminal Facility.

                        *    *    *

                     Going Concern Doubt

As reported in the Troubled Company Reporter on May 4, 2006,
Burton McCumber & Cortez, L.L.P., Brownsville, Texas, raised
substantial doubt about the ability of Penn Octane Corporation
to continue as a going concern after auditing the company's
consolidated financial statements for the year ended
Dec. 31, 2005.

Burton McCumber pointed to the Company's insufficient cash flow
to pay its obligations when due, inability to obtain additional
financing because substantially all of the Company's assets are
pledged or committed to be pledged as collateral on existing
debt, existing credit facility may be insufficient to finance
its liquefied petroleum gas and Fuel Sales Business, and working
capital deficiency.


XIGNUX SA: High Leverage Cues S&P to Place B+ Corp. Rating
----------------------------------------------------------
Standard & Poor's Ratings Services' assigned a B+ rating on
Xignux S.A. de C.V.   

The ratings on the company reflect its high leverage and the
cyclical nature of most of its end markets, particularly the
construction and automotive industries.  The ratings also
consider Xignux's significant market share positions, product
diversity, and vertical integration.  Its emphasis on high
quality has attracted world-recognized joint-venture partners,
providing Xignux, a diversified holding company, with low-cost
access to state-of-the-art technology and enhancement of its
export possibilities.

The 'B+' rating on Xignux's notes due 2009 reflects the
structural subordination of the issue relative to the company's
priority liabilities.  Despite the debt at the holding company
being guaranteed by some of the subholding and operating
subsidiaries, the proportion of priority liabilities (i.e.,
current and long-term liabilities as well as short- and long-
term debt at the operating company level) relative to
consolidated total assets is significant (more than 15%),
leading to a possible low residual claim for Xignux's holding
company creditors.

Xignux is a diversified holding company, the subsidiaries of
which manufacture a variety of products, mostly for industrial
markets.  The company sells:

   -- auto parts,
   -- food,
   -- cable,
   -- foundry,
   -- power, and
   -- distribution transformers.

During the next two years, Xignux is expected to focus its
efforts on increasing value-added products and services to
increase its market share in the cable & wire and power
transformers business.  During the same period, the group is
expected to continue its tight control on costs and expenses in
the automotive business.  Of particular importance in this
business segment are the operations that have been established
in Central America to contain the continued pricing pressure
from original equipment manufacturers.  In the food division,
Standard & Poor's expects the group to continue its efforts to
increase its market share, particularly in the mom-and-pop
distribution channel, and improve its productivity.  
Notwithstanding the aforementioned, the rating agency believes
that the nature of Xignux's business portfolio still leaves the
company exposed to the inherent risks associated with the
cyclicality of the construction and automotive industries.  
Standard & Poor's believes that to weather the potential
weakening of the group's top line during the down part of the
cycle, Xignux's capital expenditures and investment program
should not exceed US$100 million over the next two calendar
years.  Recent acquisitions by the group indicate that
investments in the aforementioned items could exceed said
figures.  Nevertheless, the positive trend in the group's
EBITDA, coupled with the top-line contribution from Mercosur and
the new cold cut operations, should continue to offset the
impact of higher debt levels on the group's key financial
indicators.

Xignux's performance in the first quarter was positive.  EBITDA
growth, driven by all operating units, offset the impact of
higher debt in the group's key financial indicators.  For the 12
months ended March 31, 2006, the group posted EBITDA interest
coverage, total debt-to-EBITDA, and funds from operations (FFO)-
to-total debt ratios of 3.9x, 2.5x, and 24.0%, respectively.  
Higher debt levels reflect increased working capital needs due
to higher copper prices and the purchase of three cold cuts
operations that serve mainly Central and Southeast Mexico.
Xignux has also indicated that starting April 1, 2006, it will
consolidate the operations of Mercosur, a joint venture between
Xignux and Yazaki to manufacture automotive harnesses for the
Mercosur market (Toyota, Ford, GM, Peugeot, Honda, and Renault.)  
The aforementioned operations should increase the group's
consolidated revenues by about US$160 million.

Xignux's liquidity is adequate. As of March 31, 2006, Xignux
held about US$48 million in cash and equivalents and had about
US$75 million available under committed credit facilities that
mature in 2006 and 2008.  Other uncommitted and capital market
facilities total around US$240 million.  The aforementioned
compares favorably with short-term debt of US$78 million.  Free
operating cash flow totaled US$68 million during 2005 and should
be about US$30 million during 2006.

The outlook is positive.  Xignux's past efforts to reduce its
debt and improve its capital structure, coupled with the group's
ongoing initiatives to strengthen its competitive position, have
laid a foundation that could lead to a stronger financial
profile.  A positive rating action is possible should Xignux's
EBITDA interest coverage, total debt-to-EBITDA, and FFO-to-total
debt ratios remain steady at about 4.5x, 2.5x, and 25%,
respectively, during 2006 and forward.  A weakening of the
company's financial and operating performance, particularly as a
result of lower operating margins in the down part of the cycle,
could lead to a negative rating action.




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


REPSOL: Subsidiary Buys Mobil Oil Service Stations for US$35MM
--------------------------------------------------------------
Repsol YPF SA's Peruvian subsidiary, Refineria La Pampilla, told
MarketWatch that it had acquired the Peruvian gas service
stations owned by Exxon Mobil Corp.'s Mobil Oil de Peru for
US$35 million.

According to a company statement, Repsol will bring the total
number of its Peruvian service stations to 220 from 150, giving
it a 17% share of the market.

MarketWatch relates that Repsol is part of a consortium that is
developing the Camisea natural gas blocks 88 and 56 in the
Amazon jungle region.   The company also has a 20% stake in Peru
LNG, a group that plans to export liquefied natural gas to
Mexico and other North American markets.  La Pampilla itself
runs the largest refinery in Peru, with 47% of the market.   

                        *    *    *

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

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


* PERU: Alan Garcia Pledges Renewal of US$422-Mil. IMF Loan
-----------------------------------------------------------
Peruvian presidential candidate Alan Garcia said he will renew a
US$422-million aid package with the International Monetary Fund
should he win the June 4 election, Bloomberg News quoted Mr.
Garcia's economic advisor, Enrique Cornejo, as saying.

The loan, first inked in June 2004, between Peru and the IMF, is
aimed at boosting investor confidence in the country.

Mr. Cornejo told reporters in Lima that Mr. Garcia seeks to
expand Peru's local currency capital markets and reduce the
country's foreign debt.

"Our great challenge will be to increase local-currency bonds to
make us less vulnerable to possible exchange rate swings," Mr.
Cornejo was quoted by Bloomberg as saying.  "We have to make
sol-denominated assets more attractive."

Standard & Poor's rates Peru's long-term, foreign-currency debt
BB, two levels below investment grade. S&P changed Peru's
outlook in July to positive from stable on expectations the
economy will keep growing at an annual pace of at least 4%
between 2006 and 2008.

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

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




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


FIRST BANCORP: Receives Regulatory Approval for Dividend Payment
----------------------------------------------------------------
First BanCorp said in a statement that it received regulatory
approval of its next payment of dividends on its Common, Series
A through E Preferred and Trust Preferred I & II shares.  Common
stockholders of record as of June 15, 2006 will receive the 44th
consecutive quarterly dividend payment declared by First
BanCorp's Board of Directors, in the amount of US$0.07 per
share, on June 30, 2006.
    
The estimated corresponding amounts, record dates and payment
dates for the Series A through E Preferred Shares are:

   Series     $Per/share     Record Date    Payment Date
     A           0.14       June 27, 2006   June 30, 2006
     B           0.17       June 15, 2006   June 30, 2006
     C           0.15       June 15, 2006   June 30, 2006
     D           0.15       June 15, 2006   June 30, 2006
     E           0.14       June 15, 2006   June 30, 2006
    
The Company will pay dividends to Trust Preferred I & II
shareholders on June 19, 2006 and June 20, 2006, respectively.
    
"Our continued payment of dividends is another important
component of First BanCorp's upholding its commitments to
shareholders," said Luis Beauchamp, First BanCorp President and
CEO.  "We are particularly pleased to be paying our 44th
consecutive dividend to common shareholders."
    
The regulatory approvals were obtained as a part of First
BanCorp's previously announced agreement with the Board of
Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation and the Office of the Commissioner of
Financial Institutions of the Commonwealth of Puerto Rico.
    
As previously announced, First BanCorp is in the process of
preparing restated financial statements.  First BanCorp
anticipates it will file an amended annual report for 2004 this
summer, and then its financial statements for the interim
periods of 2005, the first quarter of 2006 andits annual report
for 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 the following 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'.


GLOBAL HOME: Can Continue Union Pension & Profit Sharing Plans
--------------------------------------------------------------
Global Home Products, LLC, and its debtor-affiliates obtained
authority on a final basis from the U.S. Bankruptcy Court for
the District of Delaware to continue:

   a) contributions to its union pension;
   b) matching pension contributions to the 401(k) plan; and
   c) contributions to its profit sharing plan.

                   401(K) Retirement Plan

The Debtors offer a 401(k) retirement plan administered by
JP Morgan for non-union employees and U.S. union employees.  
The Debtors match employee contributions to the 401(k) Plan
dollar for dollar up to the first 3% of the employee
contributions, and then 0.50 cents per dollar for the next 2% of
employee contributions.

The monthly contributions to the 401(k) Plan, including matching
contributions is approximately US$150,000 per month.  For the
2005 calendar year, the Debtors transferred approximately US$3.4
million in contributions for participating employees to the
401(k) Plan and approximately US$1.8 million in matching
contributions made by the Debtors.  

The Debtors estimate that approximately US$120,000 in
withholding obligations under the 401(k) Plan remain unpaid as
of April 10, 2006.  In this regard, the Debtors requested
authority to continue its existing 401(k) Plan, including the
ability to continue to make matching contributions under the
401(k) Plan in the ordinary course of business.

                     Profit Sharing Plan

Full-time non-union employees are eligible to participate in the
Debtors' profit sharing plan if they have been employed with the
company through the end of the profit sharing plan year.  Part
time non-union employees who work at least 1,000 hours per plan
year are also eligible to participate in the Profit Sharing
Plan.  

Under the Profit Sharing Plan, the Debtors may, in their
discretion, contribute up to 2% of their annual net profits to
participants in the Profit Sharing Plan.  

As of Apr. 10, 2006, the Debtors have not accrued any
obligations to any employees with respect to its Profit Sharing
Plan, and, consequently, do not need the authority to make any
contributions to the Profit Sharing Plan.  However, the Debtors
requested authority, but not the obligation, to continue the
Profit Sharing Plan in the ordinary course of their business.

The Debtors' U.S. union employees receive a defined benefit
pension pursuant to a plan maintained by the Debtors in
accordance with the terms of the different union agreements.  
The Debtors next annual contribution to the Pension Plan will be
in September 2006 in an amount of approximately US$2.2 million.

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


GLOBAL HOME: Hires Houlihan Lokey as Investment Banker
------------------------------------------------------
Global Home Products, LLC, and its debtor-affiliates obtained
authority from the U.S. Bankruptcy Court for the District of
Delaware to employ Houlihan Lokey Howard & Zukin Capital, Inc.,
as their investment banker, nunc pro tunc to Apr. 10, 2006.

As reported in the Troubled Company Reporter on May 22, 2006,
the Debtors expect Houlihan Lokey to:

   a. assist in the review of the Burnes Group's financial
      position, financial history, operations, competitive
      environment, and assets to assist the Debtors in
      determining the best means and timing to effect a
      transaction with a potential acquirer and strategic
      partner, including any of the Debtors' current and former
      creditors, and any of the Debtors' affiliates, provided
      that neither Cerberus Capital Management nor any of its
      affiliates will be deemed to be an acquirer;

   b. assist in the development of a list of potential acquirers
      and interact with potential acquirers in order to create
      interest in one or more transactions;

   c. assist in the development of a coordinated sales process;

   d. assist in the preparation, with substantial input from the
      Debtors, of an offering memorandum to provide to, and
      discuss with potential acquirers;

   e. actively participate in the negotiating process regarding
      a transaction, and coordinate the process with the Debtors
      and its other advisors, and otherwise reasonably assist
      the Debtors in effectuating each transaction; and

   f. assist in the development and presentation of the
      Restructuring Alternatives Analyses, as requested by the
      Debtors.

The Debtors told the Court that prior to filing for bankruptcy,
they paid the Firm a US$150,000 retainer.  The Firm will receive
a monthly fee of US$75,000 for the Restructuring Alternatives
Analysis services that it will perform.  Additionally, the
Debtors will pay the Firm an initial amount of US$1 million upon
the consummation of a transaction with an acquirer, plus
incremental amounts according to the base value of the
transaction.

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


MUSICLAND HOLDING: Posts US$12.5 Million Net Loss in April 2006
---------------------------------------------------------------

                      Musicland Holding Corp.
                    Consolidated Balance Sheet
                       As of April 30, 2006

ASSETS
Current assets
   Cash                                           US$65,863,000
   Other
      Final Installment due to TransWorld            26,040,000
      Final Reimbursement to TransWorld                 404,000
      Receivables from Entertainment Weekly           1,225,000
      Receivables from Sub-Leases                       800,000
      Prepaid expenses                                1,340,000
      Receivables from Hilco                          2,060,000
      Miscellaneous CC                                  110,000
      Vendor Deposits                                 6,186,000
Other assets
   Transport Logistic deposit                           600,000
   Utility and tax deposit                              331,000
                                                  -------------
   TOTAL ASSETS                                  US$104,961,000
                                                  =============

LIABILITIES & SHAREHOLDERS DEFICIT
Current liabilities
   Accounts payable
      Due to TransWorld                               1,705,000
      April Expenses unpaid until May                   536,000
   Other accrued liabilities
      Accrued Bank Fee                                  375,000
      Accrued Insurance                                 510,000
      Hilco Payable                                   1,009,000
      Logistic Accrual                                1,338,000
      Deferred Income                                   482,000
      Insurance Reserve                               3,640,000
      Accrued Payroll & Employee Benefit              7,947,000
      Sales Tax                                         767,000
   Gift Card Liabilities                                      1

DIP financing                                                 0
Other LT liabilities                                 13,958,000
Liabilities subject to compromise                   354,836,000
Shareholders' deficit                              (282,142,000)
                                                  -------------
   TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT     US$104,961,001
                                                  =============


                     Musicland Holding Corp.
                     Statement of Operations
                  Period from April 1 to 30, 2006

Store operating expenses
   Payroll                                             US$8,000
   Others                                               164,000

Other operating expenses
   Net advertising expense                              (87,000)
   Logistics                                          1,013,000
   Field administration & others                      1,871,000

General & administrative expenses                     1,331,000
   EBITDA (Loss)                                     (4,300,000)

   Hilco 340 Store GOB
      Unrecoverable Liquidation Expense              (3,080,000)
      Miscellaneous Asset                              (263,000)
   Chapter 11 & related charges
      Professional/Legal fees                        (3,513,000)
      Severance                                      (1,088,000)
   Sale to TransWorld
      Proceeds                                         (816,000)
      Occupancy cure costs                              345,000
      Book Value of Assets                              638,000
   Media Play Wind down                                (130,000)
                                                  -------------
      Operating income (loss)                       (12,541,000)
                                                  -------------

   Interest expense                                      (5,000)
   Other non-operating charges                           (5,000)
                                                  -------------
      Net Earnings (Loss)                        (US$12,551,000)
                                                  =============


                     Musicland Holding Corp.
                     Statements of Cash Flow
                 Period from April 1 to 30, 2006

Operating activities
   Net earnings (Loss)                           (US$12,551,000)
   Other current assets                               8,281,000
   Accounts payable                                    (647,000)
   Other operating liabilities                       (3,784,000)
   Liabilities subject to compromise                    435,000
                                                  -------------
   Net Cash provided by (used in)
      operating activities                           (8,266,000)
                                                  -------------
Investing activities
   Change in other long term asset/liabilities          (17,000)
                                                  -------------
   Net Cash provided by (used in)
      Investing activities                              (17,000)
                                                  -------------
Financing Activities
   Revolver borrowings                                        0
                                                  -------------
Increase (Decrease) in Cash                          (8,283,000)

   Cash at beginning of period                       74,146,000
                                                  -------------
   Cash at end of Period                          US$65,863,000
                                                  =============

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


OCA INC: Voluntary Chapter 11 Case Summary
------------------------------------------
Debtor: OCA, Inc.
        fdba Orthodontic Centers of America, Inc.
        3850 North Causeway Boulevard, Suite 800
        Metairie, Louisiana 70002
        Tel: (504) 834-4392

Bankruptcy Case No.: 06-10179

Debtor affiliates filing separate chapter 11 petitions on
June 1, 2006:

      Entity                                  Case No.
      ------                                  --------
      Orthodontic Centers of Hawaii, Inc.     06-10503
      Orthodontic Centers of Iowa, Inc.       06-10504
      Orthodontic Centers of Idaho, Inc.      06-10505

Debtor affiliates that filed separate chapter 11 petitions on
March 14, 2006:

      Entity                                  Case No.
      ------                                  --------
      Orthodontic Centers of Alabama, Inc.    06-10180
      Orthodontic Centers of Arizona, Inc.    06-10181
      Orthodontic Centers of Arkansas, Inc.   06-10182
      Orthodontic Centers of California, Inc. 06-10183
      Orthodontic Centers of Colorado, Inc.   06-10184
      Orthodontic Centers of Connecticut      06-10185
      Orthodontic Centers of Florida          06-10186
      Orthodontic Centers of Illinois         06-10187
      Orthodontic Centers of Indiana          06-10187
      Orthodontic Centers of Kansas           06-10189
      Orthodontic Centers of Kentucky         06-10190
      Orthodontic Centers of Louisiana        06-10191
      Orthodontic Centers of Maine            06-10192
      Orthodontic Centers of Maryland         06-10193
      Orthodontic Centers of Massachusetts    06-10194
      Orthodontic Centers of Michigan         06-10195
      Orthodontic Centers of Minnesota        06-10196
      Orthodontic Centers of Mississippi      06-10197
      Orthodontic Centers of Missouri         06-10198
      Orthodontic Centers of Nebraska         06-10199
      Orthodontic Centers of Nevada           06-10200
      Orthodontic Centers of New Hampshire    06-10201
      Orthodontic Centers of New Jersey       06-10202
      Orthodontic Centers of New Mexico       06-10203
      Orthodontic Centers of New York         06-10204
      Orthodontic Centers of North Carolina   06-10205
      Orthodontic Centers of North Dakota     06-10206
      Orthodontic Centers of Ohio             06-10207
      Orthodontic Centers of Oklahoma         06-10208
      Orthodontic Centers of Pennsylvania     06-10209
      Orthodontic Centers of Puerto Rico      06-10210
      Orthodontic Centers of Rhode Island     06-10211
      Orthodontic Centers of South Carolina   06-10212
      Orthodontic Centers of Tennessee        06-10213
      Orthodontic Centers of Texas            06-10214
      Orthodontic Centers of Utah             06-10215
      Orthodontic Centers of Virginia         06-10216
      Orthodontic Centers of Washington       06-10217
      Orthodontic Centers of West Virginia    06-10218
      Orthodontic Centers of Wisconsin        06-10219
      Orthodontic Centers of Wyoming          06-10220

Type of Business: Publicly held OCA is the leading provider of
                  business services to orthodontists and
                  pediatric dentists.  The Company's client
                  practices provide treatment to patients
                  throughout the United States and in Japan,
                  Mexico, Spain, Brazil and Puerto Rico.  See
                  http://www.oca.com/and http://www.ocai.com/

                  Headquartered in Metairie, Louisiana, OCA,
                  Inc., was adversely impacted by Hurricanes
                  Katrina and Wilma.

                  In December 2005, OCA hired Jefferies &
                  Company, Inc., as its financial advisor and
                  investment banker, at a cost of US$100,000 per
                  month.  In January 2005, OCA hired Michael F.
                  Gries at Conway, Del Genio, Gries & Co., LLC,
                  as its Chief Restructuring Officer, at a cost
                  of US$200,000 per month.

Chapter 11 Petition Date: March 14, 2006

Court: Eastern District of Louisiana (New Orleans)

Judge: Jerry A. Brown

Debtors' Counsel: William H. Patrick, III, Esq.
                  Heller Draper Hayden Patrick & Horn, LLC
                  650 Poydras Street, Suite 2500
                  New Orleans, Louisiana 70130
                  Tel: (504) 568-1888
                  Fax: (504) 522-0949




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


DIRECTV HOLDINGS: Moody's Affirms Ba2 Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service affirmed DIRECTV Holdings LLC's Ba2
Corporate Family rating, senior unsecured notes rating, and the
Ba1 rating on DIRECTV's senior secured credit facility.  The
rating outlook is stable.

DIRECTV's Ba2 rating and stable outlook reflect the company's
improved financial operating performance which have had a
positive impact on credit metrics and financial flexibility,
though the rating also reflects recent large share repurchase
activity at The DIRECTV Group, Inc. and concern for increasing
competition.  The improved performance reflects DIRECTV's recent
slower growth rates and slightly improved churn, which have
resulted in lower subscriber acquisition costs thereby
increasing EBITDA and free cash flow.  Moody's anticipates that
the company will continue to possess strong credit metrics for
its ratings despite the potential for incremental debt in part
to fund future share repurchase activity at DTVG and in part to
fund expansion of its product offerings for competitive reasons,
such as the potential investment in broadband applications.  

Moody's remains concerned that competition from Cable TV and
Telecommunications industries will negatively impact DIRECTV
given its single product offering as compared to three-plus
product bundles that will be provided by cablecos and telcos.  
This concern is a constraining factor for the rating.  Since
DTVG's February 2006 announcement of its US$3.0 billion stock
repurchase program, the company has already redeemed US$2.56
billion with cash and short-term investments.  DTVG had US$2.5
billion of cash and short term investments remaining at March
31, 2006 and Moody's estimates approximately US$1.7 billion of
cash and short term investments is remaining on a pro forma
basis taking into account the most recent buyback of GM pension
shares.

The DIRECTV Group, Inc. is headquartered in El Segundo,
California and is a world-leading provider of multi-channel
television entertainment, and broadband satellite networks and
services. The DIRECTV Group, Inc. is 38% owned by News
Corporation.




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


BANCO ITAU (URUGUAY): Fitch Revises Ratings Outlook to Positive
---------------------------------------------------------------
Fitch Ratings revised Banco Itau BBA - Uruguay Branch's Rating
Outlook on the foreign and local currency Issuer Default Rating
to Positive from Stable after taking the same action on the
sovereign IDR.

The bank's ratings are as follows:

   -- Long-term foreign currency Issuer Default Rating: 'B+';
   -- Long-term local currency IDR: 'BB-';
   -- Support Rating: '4'; and
   -- National long-term rating: 'AA(uy)' with Stable Outlook.

The bank's long-term ratings reflect its status as a branch of
Banco Itau BBA and the quality of its parent, Banco Itau Holding
Financiera, which has ratings of 'BB-' with a Positive Outlook
for the long-term foreign currency IDR, restricted by the
sovereign ceiling, and 'AA(br)' for the long-term National
rating.  The ratings also reflect the strong supervision by BIHF
of credit, market, and operational risks, the group's good
access to credit, and the good performance of Banco Itau BBA
S.A.  Its international ratings are constrained by those of the
sovereign and of its parent.

Banco Itau BBA S.A., one of the largest banks operating in
Brazil, is controlled almost entirely by BIHF (95.75%), which
also holds a 100% equity stake in Banco Itau S.A. and reported
assets and equity of US$64.6 billion and US$6.6 billion,
respectively, at the end of 2005.


PETROLEO BRASILEIRO: Completes Buy of Shell Assets in Uruguay
-------------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras, Brazil's state-run oil
firm, has completed its purchase of Royal Dutch PLC's assets in
Uruguay, Dow Jones Newswires reports.

The acquired fuel and distribution assets include:

   -- gasoline stations,
   -- jet fuel installations, and
   -- lubricant facilities.

Dow Jones says that the acquired service stations will carry the
Petrobras brand name within twelve months.

On December 2005, Petrobras signed the sale and purchase
agreements with Shell relating to the latter's divestment of its
downstream businesses in Uruguay and Paraguay and also in some
assets in Colombia.

The Brazilian oil firm paid a total of US$140 million for the
series of Shell commercial units in Colombia, Paraguay and
Uruguay.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras was founded in 1953.  The company explores,
produces, refines, transports, markets, distributes oil and
natural gas and power to various wholesale customers and retail
distributors in the country.

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's and its foreign currency long-term debt is
rated BB by Fitch.

                        *    *    *

Fitch assigned these ratings on Petroleo Brasileiro's senior
unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+


* URUGUAY: 400-MW Baseload Power Plant Is Up for Bidding on July
----------------------------------------------------------------
Uruguay's Ministry for Energy and Industry will invite companies
to present offers in July for the government's new 400-MW
baseload power plant, Power Engineering International reports.

Aside from the power plant, the ministry has other projects that
include contracts for building a number of wind farms and
biomass plants.  Minister Jorge Lepra told Power Engineering
that this is to part of the ministry's plan to improve the
national infrastructure.

This move will mark Uruguay's first major power investment in
fifteen years.  The 400 MW power plant is estimated to cost
US$400 million, Power Engineering says.

Mr. Lepra told Power Engineering that an expected contract of
US$180 million for the building of an interconnection system
between Uruguay and Argentina will improve the country's
electricity transmission network.

                        *    *    *

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


CITGO PETROLEUM: Harsh Weather Causes Oil Spill at Refinery
-----------------------------------------------------------
Citgo Petroleum Corp. reported an oil spill at its Corpus
Christi Refinery East Plant due to very heavy storms on
Thursday.

According to the company, a release of oily water -- 50 gallons,
as reported by Reuters -- into the ship channel from its 156,000
barrel per day Corpus Christi refinery occurred.  Pockets of
oily water have been spotted and there are some isolated areas
of sheen.  

Reuters reports that, as indicated in a notice filed with the
Texas pollution control agency, Citgo was restarting a gasoline-
producing fluidic catalytic cracking unit at the refinery.

Citgo, Reuters states, has refused to discuss operations at the
refinery beyond refuting rumors on the refinery's shutdown due
to high water or the loss of steam from Calpine Corp.'s 547
megawatt power plant, which went down during the thunderstorms.

Citgo said that all appropriate authorities and regulatory
agencies were contacted, and that the company continues to work
with authorities to contain the release and minimize any
environmental impact.  Containment boom has been deployed and
assessment is underway.  Responders are on scene and recovery is
in progress.

Reuters relates that tanker shipping to the refinery was halted
as crews cleaned up the oil spilled.   

No injuries have been reported.  Additional information will be
provided as it becomes available.

Calpine was quoted by Reuters as saying that steam was restored
to the Citgo refinery at 6:30 a.m.

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

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

                        *    *    *

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


PETROLEOS DE VENEZUELA: Enquiry Panel Files Report
--------------------------------------------------
A special committee formed by Venezuela's National Assembly
filed a report concerning the opening of the country's oil
industry to foreign investors in the 1990s.

The panels seeks to determine the responsibilities of Petroleos
de Venezuela SA's former directors and former energy ministers
in relation to the oil opening.

The National Assembly approved the report and found that the
former officials have political responsibilities.  The report
suggested imposing sanctions against the former officials.

"We want the Attorney General's Office to start an investigation
and that special prosecutors be appointed to review these
cases." Rodrigo Cabezas, the special committee's head, told El
Universal.  "Venezuelans can be pleased that we regained oil
sovereignty."

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.


PETROLEOS DE VENEZUELA: Mulls Selling Oil in Euros
--------------------------------------------------
The Venezuelan government is considering quoting some oil sales
in euros rather than US dollars to avoid the impact of any
devaluation in the dollar, Petroleos de Venezuela SA's president
Rafael Ramirez was quoted by El Universal.  For the last two
years, US dollar has devaluated by 20%, hitting Venezuelan oil
sales in real terms.

The idea has been broached by President Hugo Chavez.

"Establishing a basket of currencies for oil transactions is an
issue under discussion.  We have been evaluating adopting euros
for some transactions and US dollars for others," Mr. Ramirez
told TV channel Venezolana de Television.

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: Minister Says OPEC Meeting Was a Success
-----------------------------------------------------
Rafael Ramirez -- the minister of energy and petroleum and
president of state oil firm Petroleos de Venezuela aka PDVSA --
disclosed that Venezuela's expectations have been completely
fulfilled at the 141st Extraordinary Meeting of the Organization
of Petroleum Producing Countries or OPEC.

"We are very happy with the results of the meeting," Mr. Ramirez
asserted.  

After a long discussion in the closed session of the 141st
Extraordinary Meeting of the OPEC Conference, Ramirez informed
that the organization's production levels will be maintained.  
"There is no increase in production, this will be maintained at
the same levels, right now there will be no increase or
decrease," the minister of energy expressed.

Minister Ramirez added that there is a need to find a balance
for the fundamentals of the market, which it does not have yet.  
According to him, the market does not reflect the fundamentals
it should reflect.

"We are going to do the necessary to defend our price and to
attain a balance in the market," Minister Ramirez indicated.

Minister Ramirez mentioned in the meeting that he had
conversations on the inclusion of new countries, an initiative
that had great reception by the ministers that constitute the
OPEC, but there is a set of formalities that should be met
before they are included.

"All my counterparts felt strengthened with the president's
words," Minister Ramirez asserted, with regards to the speech
offered by President Hugo Chavez in the opening act of the 141st
Extraordinary Meeting of the OPEC Conference.

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



                         ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
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Copyright 2006.  All rights reserved.  ISSN 1529-2746.

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