TCRLA_Public/060616.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

             Friday, June 16, 2006, Vol. 7, Issue 119


                            Headlines


A R G E N T I N A

ACAPEA SRL: Trustee Verifies Proofs of Claim Until July 18
ARLENA SA: Sets June 23 Deadline for Verification of Claims
CENTRO CONDECORADO: Claims Verification Deadline Is on July 19
FAVUZZI CONSTRUCCIONES: Claims Verification Ends on June 29
FLAMARION SA: Verification of Proofs of Claim Ends on Aug. 10

INDUSTRIAS METALURGICAS: Fitch Arg Puts BB- Ratings on 5 Debts
INDUSTRIAS PIP: Trustee Verifies Proofs of Claim Until June 28
LIBERIAN SRL: Asks Court Approval to Restructure Debts
POL SUDAMERICANA: Concludes Reorganization Proceeding
REALLY SA: Seeks Court Approval to Reorganize Business

TELEFONICA DE ARGENTINA: Launches CAM24 Surveillance Camera
ZEOX SA: Last Day for Verification of Claims Is on July 19

B A H A M A S

TEEKAY SHIPPING: Moody's Holds Corporate Family Rating at Ba1

B E R M U D A

FOSTER WHEELER: Unit Secures US$65MM PC Boiler Contract from SRP
GLOBAL CROSSING: Provides New Communication Network to DE-STA-CO
INTELSAT LTD: PanAmsat Receives Requisite Consents for Sr. Notes
SEA CONTAINERS: Further Delays 10-K Filing & Remains on Default

B O L I V I A

* BOLIVIA: Government Eyes Reforms on Pension System

B R A Z I L

BANCO NACIONAL: Grants BRL66MM Loan to Rehabilitate Para's Road
BANCO NACIONAL: Mulls Sale of 25% Stake in Tele Norte Leste
COMPANHIA VALE: Settles Pellet Price with Three Foreign Firms
VARIG SA: Judge Ayoub to Consider Other Bids for Company Assets

* BRAZIL: IDB Grants US$118 Mil. for Power Transmission Project

C A Y M A N   I S L A N D S

ATACAMA FUND: Last Day to File Proofs of Claim Is on July 14
ATACAMA MASTER: Creditors Must File Proofs of Claim by July 14
BANCREDIT CAYMAN: GFN Corp. Opposes Discovery Authority Request
BROWNIE FUNDING: Filing of Proofs of Claim Ends on July 14
CLASSY CAYMAN: Creditors Have Until July 14 to Present Claims

CT BONDS: Last Day to File Proofs of Claim Is on July 14
GANNET ONE: Liquidator Won't Accept Claims Filed After July 14
KFC LIMITED: Sets July 14 Deadline for Proofs of Claim Filing
LAPUTA V: Schedules July 14 Deadline for Filing of Claims
ML/ZWEIG DIMENNA: Proofs of Claim Filing Deadline Is on July 14

POETIC CAYMAN: Deadline to File Proofs of Claim Is on July 14
RIMINI LTD: Creditors Have Until July 3 to File Proofs of Claim

C H I L E

AES GENER: Plans Maipo Hydro Project with Aguas Andinas

C O L O M B I A

* COLOMBIA: IMF Completes Second Review of Stand-by Agreement
* COLOMBIA: Ministry to Propose Personal Computers Tax Reduction

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE LTD: US DOJ Completes Review of Xstrata's Offer

* DOMINICAN REPUBLIC: Aims to Eliminate Energy Subsidy by 2007
* DOMINICAN REPUBLIC: Bank Auctions DOP200-Mil. Certificates
* DOMINICAN REPUBLIC: Cement Industry Loses Over DOP100 Mil.

E C U A D O R

* ECUADOR: Puts Block 15 Oil Field Under State of Emergency

E L   S A L V A D O R

* EL SALVADOR: Draft Bill on Ethanol Use Expected in July
* EL SALVADOR: Regulator Campaigns for Reduction of Power Use

H A I T I

* HAITI: Caribbean Group Urges Global Community's Aid to Nation

J A M A I C A

DIGICEL LTD: Has 2,000+ Employees in 20 Markets
KAISER ALUMINUM: Wants Zurich Insurance Settlement Pact Approved
SUGAR COMPANY: Hoping to Pay Debts with Ministry & Creditor Aid

M E X I C O

DANA CORPORATION: Wants to Enter Into Spicer Share Purchase Pact
DIRECTV INC: Adds Azteca America's KODF-26 in Dallas Lineup
FORD MOTOR: Report Says Co. Will Invest US$9.2 Billion in Mexico
J.L. FRENCH: Creditors Unanimously Approve Chapter 11 Plan
KRISPY KREME: Sees Revenue Decline in Fiscal 2006 First Quarter

MERIDIAN AUTO: Likely Lenders & Debtors Tap Hilco Appraisal
MUNICIPALITY OF TEPATITLAN DE MORELOS: Moody's Withdraws Ratings
TELE NORTE: Banco Nacional Mulls Sale of 25% Stake in Company
TELE NORTE: Brandes Investment Slams Share Conversion Proposal
TV AZTECA: DirecTV Adds Subsidiary's KODF-26 in Dallas Lineup

N I C A R A G U A

* NICARAGUA: Inks Free Trade Pact With Taiwan

P A N A M A

GRUPO BANISTMO: Begins Trading on Latibex Under XBAN Symbol

P U E R T O   R I C O

ADELPHIA: America Channel Fights Injunction v. Timer Warner Suit
ADELPHIA: Continental Casualty Says Plan Violates Section 1129
KOOSHAREM CORP: Moody's Rates Proposed US$300-Mil. Debt at B2
SAFETY KLEEN: Moody's Rates Proposed Credit Facilities at B1

T R I N I D A D   &   T O B A G O

BWIA WEST: Workers Halt Strike to Meet with Firm Executives

V E N E Z U E L A

BANCO MERCANTIL: Inquiries on NY Agency Liquidation Due June 29
PETROLEOS DE VENEZUELA: Plans to Issue US$3.5 Billion in Bonds
* VENEZUELA: May Oil Output Down 30,000 Barrels Per Day
* Mauricio Pons Joins Alvarez & Marsal as Director


                         - - - - -


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


ACAPEA SRL: Trustee Verifies Proofs of Claim Until July 18
----------------------------------------------------------
Silvia Muavero, the court-appointed trustee for the bankruptcy
proceeding of Acapea S.R.L. will verify creditors' proofs of
claim until July 17, 2006.

Ms. Muavero will present the validated claims in court as
individual reports on Sept. 13, 2006.  She will also submit a
general report containing an audit of the company's accounting
and banking records on Oct. 26, 2006.

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

The trustee can be reached at:

       Silvia Muavero
       Avenida Rivadavia 1615
       Buenos Aires, Argentina


ARLENA SA: Sets June 23 Deadline for Verification of Claims
-----------------------------------------------------------
The verification of creditors' proofs of claim for the Arlena
S.A. insolvency case will end on June 23, 2006, Infobae reports.
Marta Elena Pereyra, the court-appointed trustee who will
examine the claims, will submit the validation results as
individual reports on Aug. 17, 2006.  She will also present a
general report in court on Oct. 3, 2006.

On April 17, 2007, the company's creditors will vote on a
settlement proposal prepared by the company.  Infobae says that
a court in Resistencia, Chaco, handles the company's
reorganization case.

The debtor can be reached at:

         Arlena S.A.
         Vedia 135/145, Resistencia
         Chaco, Argentina

The trustee can be reached at:

         Marta Elena Pereyra
         Cervantes 531, Resistencia
         Chaco, Argentina


CENTRO CONDECORADO: Claims Verification Deadline Is on July 19
--------------------------------------------------------------
Liliana Edith Rey, the court-appointed trustee for the
bankruptcy case of Centro Condecorado S.A., will verify
creditors' proofs of claim until July 19, 2006.

La Nacion relates that Buenos Aires' Court No. 6 declared Centro
Condecorado bankrupt at the request of Olga Elena Chiana, whom
the company owes US$22,499.95.

Clerk No. 12 assists the court in this case.

The debtor can be reached at:

         Centro Condecorado S.A.
         Santiago del Estero 657/663
         Buenos Aires, Argentina

The trustee can be reached at:

         Liliana Edith Rey
         Avenida Presidente Roque Saenz Pena 651
         Buenos Aires, Argentina


FAVUZZI CONSTRUCCIONES: Claims Verification Ends on June 29
-----------------------------------------------------------
The verification of creditors' proofs of claim against bankrupt
company Favuzzi Construcciones Civiles S.R.L. will end on
June 29, 2006.  The court is yet to disclose the name of the
trustee who will verify the claims.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records.  The individual reports will be submitted
on Aug. 29, 2006, followed by the general report on
Oct. 11, 2006.

A court in Rosario, Santa Fe, handles Favuzzi Construcciones'
bankruptcy case.

The debtor can be reached at:

        Favuzzi Construcciones Civiles S.R.L.
        Dean Funes 1247, Rosario
        Santa Fe, Argentina


FLAMARION SA: Verification of Proofs of Claim Ends on Aug. 10
-------------------------------------------------------------
Andrea Isabel Sita, the court-appointed trustee for the
bankruptcy case of Flamarion S.A., will verify creditors' proofs
of claim until Aug. 10, 2006.

Buenos Aires' Court No. 1 declared Flamarion bankrupt at the
behest of Andrea Gomez, whom the company owes US$148,833.69.

Clerk No. 2 assists the court on the case.

The debtor can be reached at:

         Flamarion S.A.
         Zabala 2488
         Buenos Aires, Argentina

The trustee can be reached at:

         Andrea Isabel Sita
         Cramer 2175
         Buenos Aires, Argentina


INDUSTRIAS METALURGICAS: Fitch Arg Puts BB- Ratings on 5 Debts
--------------------------------------------------------------
The Argentine arm of Fitch assigned these ratings to Industrias
Metalurgicas Pescarmona's debts:

    -- ON Serie 8 for US$122,100,000

       * Rated date: June 9, 2006
       * Rate: BB- (arg)

    -- ON serie 2 for US$150 million, emitted under the global
       program for

       * Last due: May 30, 2002
       * Rated date: June 9, 2006
       * Rate: D (arg)

    -- ON Serie 9 for US$ 4.200.000

       * Rated date: June 9, 2006
       * Rate: BB-

    -- ON Serie 10 for US$9,600,000

       * Rated date: Jan. 9, 2006
       * Rate: BB- (arg)

    -- ON Serie 11 for US$11,400,000

       * Rated date: June 9, 2006
       * Rate: BB- (arg)

    -- ON Serie 12 for US$700,000

       * Rated date: June 9, 2006
       * Rate: BB- (arg)


INDUSTRIAS PIP: Trustee Verifies Proofs of Claim Until June 28
--------------------------------------------------------------
The reorganization of Industrias Pip S.R.L. has turned into
bankruptcy -- which means the company's assets will be
liquidated and proceeds distributed to creditors.

Argentine news source Infobae relates that Court No. 5 of the
Civil and Commercial Tribunal of Rosario in Santa Fe, Argentina,
ruled that the Company is "Quiebra Decretada."

The court-appointed trustee, Osvaldo Luis Depiante, will verify
creditors' proofs of claim until June 28, 2006.

The trustee will:

    -- prepare and present in court on Aug. 25 individual
       reports after the verification process is completed, and

    -- present in court on Oct. 6, 2006, a general report
       detailing the bankruptcy process.

The debtor can be reached at:

        Industrias Pip S.R.L.
        Ruta Nacional Niro 7km 661, Justo Daract
        San Luis, Argentina

The trustee can be reached at:

        Osvaldo Luis Depiante
        Corrientes 751, Rosario
        Santa Fe, Argentina


LIBERIAN SRL: Asks Court Approval to Restructure Debts
------------------------------------------------------
Liberian S.R.L., a company operating in Buenos Aires, has
requested Buenos Aires' Court No. 17 permission to reorganize
its business after failing to pay its liabilities.

The reorganization petition, once approved by the court, will
allow the company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.

The debtor can be reached at:

       Liberian S.R.L.
       Jeronimo Salguero 3172
       Tercer Nivel Local 3340
       Buenos Aires, Argentina


POL SUDAMERICANA: Concludes Reorganization Proceeding
-----------------------------------------------------
The reorganization of Pol Sudamericana S.A. has ended.  Data
revealed by Infobae on its Web site indicated that the process
was concluded after a Buenos Aires court approved the debt
agreement signed between the company and its creditors.


REALLY SA: Seeks Court Approval to Reorganize Business
------------------------------------------------------
Court No. 21 of Buenos Aires' civil and commercial tribunal is
studying the request for reorganization submitted by local
company Rally S.A., La Nacion says.

The report adds that that the company filed a "Concurso
Preventivo" petition following cessation of debt payments on
March 13, 2006.

If the court approves the petition, the reorganization will
allow the company to negotiate a settlement with its creditors
in order to avoid a straight liquidation

Buenos Aires' Clerk No. 42 assists the court on this case.

The debtor can be reached at:

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


TELEFONICA DE ARGENTINA: Launches CAM24 Surveillance Camera
-----------------------------------------------------------
Telefonica de Argentina, in a drive to increase the use of its
Asymmetric Digital Subscriber Line or ADSL broadband service,
launched CAM24, a surveillance camera facility, for small-to-
medium enterprises, local daily el Cronista reports.

Business News Americas relates that the service includes the
installation of an IP camera connected to an ADSL line.

The CAM24 needed an investment of ARS6 million.  Temporarily, it
will be offered to corporate and residential clients as well as
SMEs, BNamericas states.

Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina S.A. -- http://www.telefonica.com.ar/-- provides
telecommunication services which include telephony business both
in Spain and Latin America, mobile communications businesses,
directories and guides businesses, Internet, data and corporate
services, audiovisual production and broadcasting, broadband and
Business-to-Business e-commerce activities.

                        *    *    *

As reported in the Troubled Company Reporter on April 27, 2006,
Fitch Ratings made these changes to Telefonica de Argentina
S.A.:

   Local Currency

     -- Previous Rating: 'B'
     -- New RR: 'BB-', Rating Outlook Stable

   US$771 million, Senior Unsecured Notes due 2006, 2007, 2008,
   2010 and 2011

     -- Previous Rating: 'B'
     -- New IDR: 'B+/RR3'

                        *    *    *

As reported in the Troubled Company Reporter on May 12, 2006,
Standard & Poor's Ratings Services said that its ratings on
Telefonica de Argentina S.A. or TASA (B/Stable/--) would not be
affected by the recent announcement of the approval to acquire
Telefonica Data Argentina S.A., a company that provides
telecommunication and IT solutions to the corporate sector in
Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on May 29, 2006,
Moody's Investors Service placed these ratings on Telefonica de
Argentina, S.A.:

   -- Corporate Family Rating (foreign currency): to B2 from
      B3 with stable outlook;

   -- Foreign currency issuer rating: to B2 from B3 with
      stable outlook; and

   -- Senior Unsecured Rating (foreign currency): to B2 from
      B3 with stable outlook.


ZEOX SA: Last Day for Verification of Claims Is on July 19
----------------------------------------------------------
Court-appointed trustee Natalio Kinsbrunner will verify claims
from Zeox S.A.'s creditors until July 19, 2006.  Infobae relates
that verified claims will be used as basis in creating
individual reports, which will be due in court on
Sept. 14, 2006.  A general report will be filed in court on
Oct. 26, 2006.

The informative assembly is scheduled for May 2, 2007, wherein
the creditors can ratify on a settlement plan that will be
proposed by the company.

The debtor can be reached at:

        Zeox S.A.
        Ramon Freire 2911
        Buenos Aires, Argentina

The trustee can be reached at:

        Natalio Kinsbrunner
        Marcelo T. de Alvear 1671
        Buenos Aires, Argentina




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


TEEKAY SHIPPING: Moody's Holds Corporate Family Rating at Ba1
-------------------------------------------------------------
Moody's Investors Service lowered the Speculative Grade
Liquidity rating of Teekay Shipping Corporation to SGL-2 from
SGL-1.  Moody's also affirmed all other ratings -- corporate
family rating at Ba1.  In addition, Teekay's plan to create a
second Master Limited Partnership does not affect the ratings at
this time.  The outlook is stable.

The change from SGL-1 is prompted by the expectation of
significantly negative free cash flow over the next twelve
months due to declining spot market rates for tankers.  Lower
spot rates will reduce cash flow from operations during a period
of stepped-up capital expenditures for new building programs for
the company.  In addition, Moody's believes that Teekay will
also continue to return cash to shareholders via share
repurchases or by increasing dividends.

Notwithstanding the effects on operating cash flows of a
softening spot tanker market, Moody's expects that Teekay will
maintain a good liquidity profile over the next 12 months.
Moody's anticipates Teekay will hold unrestricted cash above
US$200 million along with at least US$550 million available
under US$1.7 billion of senior secured revolving bank credit
facilities, with significant cushion under financial covenants.
However, Moody's estimates that cash flow from operations will
decline over the next 12 months by approximately 40% below cash
flow from operations over the last twelve months.

Free cash flow is likely to be negative of approximately US$250
million due to the decline in cash flow from operations, and the
contemporaneous increase in capital expenditures to pproximately
US$500 million along with regular dividends of approximately
US$80 million.

Moody's expects Teekay will fund capital expenditures with
either secured term loan facilities pre-arranged for particular
new buildings or with the existing revolvers until requisite
secured term loans are arranged.  However, Teekay also has
somewhat limited alternatives to raise cash in the event the
company lost access to the revolvers since a substantial amount
of its vessels are already pledged to secure credit agreements.

As well, the company is likely to continue to return cash to
shareholders as evidenced by the nearly US$750 million worth of
shares repurchased over the last one and a half years and the
additional authorization announced on June 13.

Teekay announced on June 12, 2006, that it plans to create a
second master limited partnership called Teekay Offshore
Partners L.P. which will house its existing shuttle tanker and
floating storage & offtake businesses.  While Moody's considers
the use of MLP's in the equity capital structure as an
aggressive financial policy, the effect of placing the Fixed
Rate Businesses into an MLP does not affect the ratings at this
time.

Moody's believes that, similar to the ownership of Teekay LNG
Partners, Teekay will retain a significant majority ownership of
Teekay Offshore Partners L.P.  The existing level of dividends
paid by Teekay LNG Partners to third party holders does not
overly burden Teekay's free cash flow, and the incremental
dividend for Teekay Offshore Partners L.P. should be no more
burdensome.

Teekay Shipping Corporation, a publicly owned company
headquartered in Nassau, Bahamas, having its main operating
office in Vancouver, Canada, is the world's largest operator of
medium-size and shuttle oil tankers.  Teekay operates a fleet of
119 owned or chartered-in crude, refined products and LNG
vessels, excluding 21 new buildings on order.




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


FOSTER WHEELER: Unit Secures US$65MM PC Boiler Contract from SRP
----------------------------------------------------------------
Foster Wheeler Ltd. disclosed that Foster Wheeler North America
Corp., an operating unit of its Global Power Group, has been
awarded a contract for a pulverized-coal or PC boiler by Salt
River Project Agricultural Improvement and Power District or
SRP.

The contract, valued in excess of US$65 million, calls for
Foster Wheeler to design and supply a 400 megawatt PC boiler for
the Springerville Generating Station in Arizona.  The unit will
be owned by SRP and operated by Tucson Electric.  The award will
be included in Foster Wheeler's second-quarter 2006 bookings.

This is the second boiler supplied by Foster Wheeler for the
Springerville Generating Station.  The previous 400 MWe boiler,
supplied to an ownership team including SRP, is currently in the
start-up phase.

"As a repeat client, we are confident that Foster Wheeler is the
right boiler supplier for our Springerville expansion project.
We know that Foster Wheeler stands behind its commitments," said
Bill Rihs, SRP's manager of new generation projects.

The boiler will incorporate Foster Wheeler's low-NOx burner and
selective catalytic reduction technologies to cleanly burn low-
sulfur Powder River Basin coal and other local western fuels.

"The award of a second boiler to a customer is, in many ways,
more significant than the award of the first boiler.  It
underscores SRP's confidence in our ability to deliver a quality
product at a competitive price that meets or exceeds all of
SRP's high standards," said James Crumm, president and CEO of
Foster Wheeler North America Corp.

Construction of the facility is expected to begin in the fall of
2006, with commercial operation scheduled for December 2009.

                    About Foster Wheeler

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

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

                        *    *    *

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

                        *    *    *

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


GLOBAL CROSSING: Provides New Communication Network to DE-STA-CO
----------------------------------------------------------------
Global Crossing disclosed that it is providing primary and
secondary networks to DE-STA-CO, a Dover Company.  Global
Crossing is deploying a new, scalable, 10-site communications
network linking DE-STA-CO's automation and manufacturing
facilities in North America and Europe.  Global Crossing's
enhanced IP Virtual Private Network Service will enable DE-STA-
CO to benefit from the convergence of its IP and data traffic
onto one network.  As a secondary measure, Global Crossing is
also providing DE-STA-CO with Dedicated Internet Access for
business continuity purposes.

"When choosing a new network provider, we looked at a range of
different companies, and Global Crossing clearly stood out by
offering the best solution for our needs, as well as competitive
pricing, superior customer care and top- level accountability,"
said Bart White, IT manager for DE-STA-CO.  "Our new IP VPN
provides DE-STA-CO with the security and features that will help
us remain a worldwide leader in the automation industry today,
and they'll be scalable to allow us to take advantage of future
technologies."

DE-STA-CO, which is involved in the innovation, design,
manufacture and support of clamping, gripping, transferring and
robotic tooling solutions for workplace and flexible automation
needs, is utilizing its new network to transmit internal
applications and critical business communications, such as blue
prints and designs, among its locations and offices throughout
the United States, the United Kingdom, Germany and France.  The
company will increase the efficiency, security and reliability
of their communications by converging IP and data traffic on its
network, and will move towards convergence of voice in the
future.

Global Crossing is also providing DIA for use as back-up
Internet access.  In case of a natural disaster or a
catastrophic service interruption, this business continuity
solution will allow DE-STA-CO an additional mode of access, via
the public Internet, to their secure IP VPN.  DE-STA-CO wanted
the ease and convenience of having a single provider for both
solutions.

"We take great pride in the fact that DE-STA-CO has chosen
Global Crossing as both their primary and secondary network
provider," said Mike Toplisek, senior view president, global
enterprise and collaboration services, Global Crossing.  "In
addition to providing DE-STA-CO with the tremendous benefits of
IP convergence, Global Crossing has designed a business
continuity solution that will provide back-up access to DE-STA-
CO's network and help with disaster recovery."

Available in more than 600 cities in 60 countries, Global
Crossing provides one of the highest performance and versatile
IP VPN solutions currently in place, with true global reach,
scalable connectivity, multiple access options, and flexible
billing options.  IP VPN traffic is transported over Global
Crossing's secure, privately owned and operated MPLS-based IP
backbone, which is separate from the public Internet, for
greater security and performance.  The solution supports the IP
convergence of data, voice, video and Internet access, all over
a single connection.

Global Crossing DIA provides always-on, direct high-speed global
Internet connections at speeds ranging from 56/64 Kbps to
OC48/STM16, as well as Fast Ethernet, Gigabit Ethernet and even
10-Gigabit Ethernet.  The company's fully- meshed IP network,
incorporating Multiprotocol Label Switching-traffic engineering
as a backbone transport technology, provides the ultimate in
network resiliency and flexibility.  Not only is DIA the gateway
to all Internet domains worldwide, but it also provides access
to Global Crossing's portfolio of converged IP services,
including VoIP and IP Video.  Frame Relay or ATM customers can
enjoy the benefits of DIA via internetworking.

                    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.


INTELSAT LTD: PanAmsat Receives Requisite Consents for Sr. Notes
----------------------------------------------------------------
Intelsat, Ltd. reported that PanAmSat Holding Corporation
announced the results of its previously disclosed offer to
purchase and consent solicitation for any and all of their
outstanding 10-3/8% Senior Discount Notes due 2014.

PanAmSat said that it had received the requisite consents to
adopt the proposed amendments to the indenture pursuant to which
the 10-3/8% Notes were issued and that a supplemental indenture
to effect the proposed amendments has been executed.  The
proposed amendments, will eliminate, among other things,
substantially all of the restrictive covenants and certain
events of default and related provisions contained in the
indenture, will become operative when, and if, the tendered
Notes are accepted for purchase by PanAmSat.

Intelsat, Ltd. previously said that, in connection with the
contemplated acquisition of PanAmSat by Intelsat (Bermuda),
Ltd., PanAmSat intended to offer approximately US$725 million of
senior notes due 2016.

If the tender offer for the 10-3/8% Notes is consummated,
PanAmSat will not issue the senior notes due 2016 and Intelsat
(Bermuda), Ltd., will issue additional senior notes to fund the
tender offer and consent payments for the Notes, as well as the
balance of the Acquisition merger consideration.

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

Intelsat, Ltd. - http://www.intelsat.com/-- offers telephony,
corporate network, video and Internet solutions around the globe
via capacity on 25 geosynchronous satellites in prime orbital
locations.  Customers in approximately 200 countries rely on
Intelsat's global satellite, teleport and fiber network for
high-quality connections, global reach and reliability.

                        *    *    *

On June 12, 2006, Moody's Investor Service affirms Intelsat
(Bermuda) Ltd.'s ratings:

      -- New Guaranteed Sr. Notes: Assigned B2,
      -- New Sr. Notes: Assigned Caa1, and
      -- Sr. Discount Notes, due 2015: Downgraded to Caa1 from
         B3 (these notes will be moved to Intelsat Intermediate
         Holding Company Ltd. Upon closing of the merger).


SEA CONTAINERS: Further Delays 10-K Filing & Remains on Default
---------------------------------------------------------------
Sea Containers Ltd. is providing an update on its financial
condition pending completion of its annual report on SEC Form
10-K for the year ended Dec. 31, 2005, and its quarterly report
on SEC Form 10-Q for the three months ended March 31, 2006.

The Company had a consolidated operating loss for the year ended
Dec. 31, 2005, and the three months ended March 31, 2006,
continues to generate operating losses and currently has
negative cash flow.  As at May 31, 2006, the Company's total
consolidated cash was approximately US$183 million.  This
compares to US$347 million at Dec. 31, 2005, and US$106 million
at Sept. 30, 2005.

The increase in total consolidated cash from Oct. 1, 2005, to
Dec. 31, 2005, was US$241 million.  This increase included the
benefit of the net proceeds from the sale of shares in Orient-
Express Hotels Ltd. (NYSE:OEH) of US$301 million with operating
cash inflows including working capital movements contributing
US$43 million and fixed asset sale proceeds contributing another
US$32 million.  These receipts were partly offset by the payment
of senior secured debt of US$87 million and interest of US$24
million and net capital expenditure and other outflows of US$24
million.

The reduction in total consolidated cash from Dec. 31, 2005, to
May 31, 2006, was US$164 million.  Operating cash outflows
including working capital movement amounted to US$55 million
with scheduled repayment of senior secured debt of US$58 million
and interest of approximately US$35 million.  Net capital
expenditure necessary to maintain the operating capability of
the business caused much of the remaining US$16 million
reduction.

Of the US$183 million of total consolidated cash at May 31,
only US$52 million was readily available for the Company's use
as free cash.  The other US$131 million of cash, was either
restricted as security for Sea Containers' obligations to third
parties, or was held by subsidiaries and cannot be remitted to
the Company for various regulatory or financial covenant
reasons.

The Company is considering various options to increase its
available free cash.  The short-term liquidity of Sea Containers
is dependent on the successful completion of the Silja
transaction, a proposed refinancing of container assets, and/or
other potential non-operational sources of funds.  Sufficient
short-term liquidity is also dependent on there continuing to be
no acceleration of repayment of debt facilities in default and
for the present, at least, the retention of part of the OEH
share sale proceeds.

                       10-K Filing Delay

As announced on May 1, 2006, the Company remains unable to file
its 2005 Form 10-K annual report, including its audited 2005
consolidated financial statements, as it has not completed its
internal processes with respect to applicable certifications.
The Company's external professional advisers are assisting the
Board in completing these processes as expeditiously as
practicable.  Because of the 10-K delay, the filing of the
Company's first quarter 2006 Form 10-Q has also been delayed.

                    Public Note Indentures

The Company's public note indentures contain a covenant
requiring it to maintain consolidated tangible net worth (as
defined in the indentures) of at least US$175 million.  As noted
above, the Company has not completed its internal processes to
finalize its financial statements for the year ended
Dec. 31, 2005 or for the first quarter ended March 31, 2006.
Because the consolidated tangible net worth calculation is based
on the financial statements, the Company will not be in a
position to confirm whether it has been in compliance with this
covenant until the financial statements are finalized.  The
calculation is subject to adjustment for events up to the date
of 10-K and 10-Q filing, of which the most significant is
continuing change in the estimated net sale value of ferry
assets held for disposal at Dec. 31, 2005, including Silja.
These continuing adjusting events could result in the
consolidated tangible net worth of the Company being at less
than US$175 million as of Dec. 31, 2005, but this matter cannot
be confirmed until the relevant financial statements are
finalized.

The Company's public note indentures also contain a covenant
requiring that net proceeds from asset sales be applied to the
payment of debt or the investment in replacement assets within
six months of receipt of the net proceeds.  Thereafter, under
the covenant, any remaining net proceeds must be applied to an
offer to purchase outstanding public notes.  In addition, the
Company's indenture for the public notes maturing in 2012
contains a specific covenant for the application of the proceeds
of sale of the OEH shares.

Of the net proceeds received from the sale of OEH shares, the
Company has applied approximately US$200 million as required in
the indentures, and estimates that it will have approximately
US$100 million of excess proceeds at the time the indenture
covenant requires the Company to make an excess proceeds offer.
The approximate US$52 million balance of the Company's "free
cash" at May 31, 2006, however, includes these US$100 million
excess proceeds.  Consequently the Company has decided to retain
the OEH share sale proceeds unless it determines that they or a
portion of them are not needed to fund operations during the
coming months.  A failure to make an excess proceeds offer would
constitute a default under the public note indentures.

Further to the Company's May 1, 2006 news release, Sea
Containers' management is finalizing its business plan,
including an assessment of the appropriate level of debt
capacity and appropriate range of values of the Company.
Management continues to explore a range of appropriate strategic
and financial alternatives, which may include a restructuring of
the Company's obligations under the public notes.  To facilitate
discussions with its public note holders and implementation of
any of these alternatives, the Company has signed a
confidentiality agreement with a law firm and with a financial
advisor, each of whom will act in the interest of the public
note holders in discussions with the Company.

Sea Containers can give no assurance as to the results of any
restructuring including the impact upon creditors and equity
holders.  The Company is currently unable to confirm whether it
expects to pay the US$115 million principal amount of 103/4%
senior notes due on Oct. 15, 2006.  Payment may not be made
unless the Company expects that it will also be able to pay in
full when due its other public notes maturing in 2008, 2009 and
2012 and all other unsecured creditors including potential
significant pension liabilities.

                        Credit Default

The Company remains in default under many of its secured credit
facilities due to breaches of certain financial covenants and
other requirements contained in these facilities.  The Company's
secured and other credit facilities also generally include
cross-default provisions so that non-compliance with a covenant
in one secured credit facility constitutes a default under
substantially all other credit facilities.  The Company is
continuing discussions with its lenders regarding waivers,
amendments and forbearances to address pending and prospective
defaults.  No lender has taken any action to exercise remedies
in respect of any events of default and many lenders have signed
forebearance agreements effective through the end of June.

                     About the Company

Headquartered in London, England, Sea Containers (NYSE: SCRA and
SCRB) -- http://www.seacontainers.com/-- engages in passenger
and freight transport and marine container leasing.  U.S.
shareholders primarily own the Bermuda-registered company and
its common shares have been listed on the New York Stock
Exchange (SCRA and SCRB) since 1974.

On May 4, the Troubled Company Reporter-Latin America reported
that Standard & Poor's Ratings Services lowered its ratings on
Sea Containers Ltd. including lowering the corporate credit
rating to 'CCC-' from 'CCC+'.  All ratings remain on CreditWatch
with negative implications; ratings were initially placed on
CreditWatch on Aug. 25, 2005, and lowered on Feb. 16, 2006, and
again on March 24, 2006.

The rating action followed the company's announcement that it is
continuing to evaluate a range of strategic and financial
alternatives, including the "appropriate level of debt capacity,
with the intent to engage the public note holders and other
stakeholders."




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


* BOLIVIA: Government Eyes Reforms on Pension System
----------------------------------------------------
The government of Bolivia is planning on a pension system
reform, an official from ABI or Agencia Boliviana de Informacion
-- the government news service -- told Business News Americas.

The reform will focus on the increase of pension coverage,
BNamericas states, citing the ABI official.  Among the key
issues to be reviewed is the retirement age, which is currently
at 65.

BNamericas recalls that in a move to privatize industries under
the first administration of President Gonzalo Sanchez de Lozada
in the 1990s, the old pension system was intervened and a
private one was founded in 1997.

BNamericas relates that the current pension system comprises
pension fund managers:

   -- AFP Futuro of the Swiss group Zurich, and
   -- AFP Prevision of Spanish group BBVA.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO NACIONAL: Grants BRL66MM Loan to Rehabilitate Para's Road
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a financing for the State of Para for BRL66 million.
The funds will be used to reconstruct 125 km of roadways.  The
total investment is BRL82.5 million -- 80% financed by BNDES and
the remaining 20% by the State Government.

The project will involve the highways:

   -- PA-415, in the southeast of Para, connecting Altamira to
      Vitoria do Xingu;

   -- PA-154, in Ilha de Marajo; and

   -- PA-395, in the northeast of the State, joining the highway
      PA-127 to the municipalities of Magalhaes Barata and
      Cafezal.

The three sections will ensure access to the region which is not
passable in some periods of the year due to rains.

The project financed by BNDES involves:

   -- works of draining,
   -- wood bridge replacement,
   -- earthwork services,
   -- plan modifications, and
   -- asphalt revetment, without limitation.

The works will contribute for the regional development,
improvement in the access to public services and logistic cost
reduction.  The highway PA-415 will enable the land access to
the Xingu region, enabling the improvement of the goods
transportation conditions and social services maintenance to the
population, harmed by the current situation of the road.
Nowadays the integration of that region is performed by
Transamazonica and Xingu river in its navigable part.  The
highway PA-154, located in Ilha de Marajo, will have as main
function to guarantee better access to the tourism regions of
the island, thus allowing better use of the potential of that
economic activity, currently thwarted by the lack of
infrastructure.  Besides, Marajo island has important fishing
and farming activity.  The highway PA-395, inserted in a roadway
system already consolidated (PA-127), will contribute for the
improvement in the product drainage conditions of the region,
and shall operate as inductor of a major economic development.

Para, with 142 municipalities, is the second largest state of
Brazil, with an area of 1,253,164.5 Km2, which represents 14.65%
of the entire Brazilian territory.  It has inferior area only to
the State of Amazonas.  The population of Para sums up almost
6.2 million inhabitants, with high concentration in urban areas.

The State of Para shows GDP growth above the Brazilian average,
ranking in the 11th position among the Federation units, with
BRL25.5 billion shared by the main economic sectors:

   -- 35% for the industry,
   -- 24% for the farming and
   -- 41% for the trade and services sector.

The farming sector has great importance in the State's economy,
with highlight for the heard of cattle, fifth biggest of Brazil,
production and export of tropical wood, production of palm and
black pepper oil. It is to be noted the international insertion
of the State economy, having a foreign trade reaching 39% of GDP
participation of the State in 2004.

In economies with significant presence of farming and
extractivist activities, the infrastructure for the
transportation acquires high degree of relevance, being decisive
factor for the international competitiveness.  Because of that,
BNDES included the support to infrastructure of Par  as one of
its priorities.

                        *    *    *

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


BANCO NACIONAL: Mulls Sale of 25% Stake in Tele Norte Leste
-----------------------------------------------------------
Fabio Sotelino, the capital markets manager of the Brazilian
Development Bank aka BNDES, told financial daily Valor Economico
that the bank is studying a proposal to sell its 25% in Tele
Norte Leste Participacoes aka Telemar.

BNDES' decision came as a result of a share conversion proposal
laid by Tele Norte.  The share restructuring scheme will convert
all shares into voting shares simplifying Telemar's structure
and bring its shareholders under one firm.  The company urrently
operates in 16 Brazilian states.  The restructuring is expected
to be approved this week, BNamericas says.

"I can't anticipate a decision," Mr. Sotelino told Business News
Americas.  However, he said that any sale would be for BNDES'
entire stake in the operator.

The restructuring, according to BNamericas, will lead to a
secondary offering of ordinary shares to be sold on the new
market listing of stock exchange Bolsa de Valores do Estado de
Sao Paulo or Bovespa, as well as on the New York Stock Exchange
or NYSE.

                        *    *    *

As reported in the Troubled Company Reporter on May 26, 2006,
Standard & Poor's Ratings Services disclosed that its 'BB' l
long-term corporate credit ratings on Brazil-based integrated
telecommunications carrier Telemar Norte Leste S.A. and its
holding company Tele Norte Leste Participacoes S.A. remain on
CreditWatch with positive implications, where they were placed
on Feb. 28, 2006.  The national scale rating assigned to three
local debentures issued by Telemar Participacoes S.A. (Tele
Norte's holding company) also remain on CreditWatch with
positive implications.

                        *    *    *

As reported in the Troubled Company Reporter on May 29, 2006,
Fitch Ratings has taken these rating actions for Tele Norte
Leste Participacoes S.A. and Telemar Norte Leste S.A.:

Tele Norte Leste Participacoes:

   -- International scale local currency issuer default rating
      upgraded to 'BBB-' from 'BB+' with Stable Outlook;

   -- International scale foreign currency IDR affirmed at 'BB-'
      with Positive Outlook;

   -- National scale rating upgraded to 'AA+(bra)' from
      'AA-(bra)' with Stable Outlook; and

   -- BRL1.3 billion local debenture issuance upgraded to
      'AA+(bra)' from 'AA-(bra)' with Stable Outlook.

Telemar Norte Leste S.A.:

   -- International scale local currency IDR affirmed at 'BBB-'
      with Stable Outlook;

   -- International scale foreign currency IDR affirmed at 'BB-'
      with Positive Outlook; and

   -- National scale rating upgraded to 'AA+(bra)' from
      'AA(bra)' with Stable Outlook.


COMPANHIA VALE: Settles Pellet Price with Three Foreign Firms
-------------------------------------------------------------
Companhia Vale do Rio Doce aka CVRD concluded the negotiations
for the 2006 direct reduction of pellets price with Saudi
Arabia's Hadeed Saudi Iron & Steel Company, Malaysia's Amsteel
Mills SDN BHD, and Egypt's Al Ezz Dekheila Steel.

After several rounds of negotiation, CVRD and the companies
agreed on a 3% price reduction for Tubarao and Sao Luis direct
reduction pellets relatively to the 2005 price.

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

CVRD capex budget for 2006 allocated US$2.1 billion to
investments in the ferrous minerals division.

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

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

                        *    *    *

On Jan. 5, 2006, Fitch Ratings assigned a long-term foreign
currency rating of 'BB' to Vale Overseas Limited's 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 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'.


VARIG SA: Judge Ayoub to Consider Other Bids for Company Assets
---------------------------------------------------------------
Judge Luiz Roberto Ayoub of the 8th District Bankruptcy Court in
Rio de Janeiro, Brazil, postponed a ruling on a US$446 million
bid submitted by NV Participacoes for VARIG, S.A.'s assets after
receiving last minute offers.

NV Participacoes emerged as the lone bidder at the June 8, 2006
auction.  NVP, a company formed by VARIG pilots and flight
attendants, offered to acquire VARIG's entire air transportation
operations.

According to papers filed with the U.S. Bankruptcy Court, NVP's
US$446-million bid is comprised of:

   * approximately US$126 million cash;

   * debentures totaling around US$220 million; and

   * the conversion of approximately US$100 million of labor
     claims.

Bloomberg News reports that NVP offered US$449 million.

                    Last-Minute Interest

As widely reported, the Brazilian Court received a late offer
from Fundo de Investimento Multilong Corporation.

Bloomberg, citing Agencia Estado, relates that Multilong, a Sao
Paulo-based investment fund, presented an US$800-million bid for
VARIG's domestic and international operations.

Multilong fund will seek to finance the purchase by issuing
debentures in a restructured VARIG and obtaining loans from
Banco Nacional de Desenvolvimento Economico e Social, a national
development bank run by the Brazilian government.

Syn Logistica and Fontidec have also submitted offers for VARIG,
Bloomberg says, citing Judge Ayoub's spokeman as its source.

Furthermore, Portugal's TAP SA is reportedly joining forces with
Air Canada and Brookfield Asset Management Inc. to bid for the
bankrupt airline.  According to Bloomberg, TAP will only make a
formal offer after Judge Ayoub rejects NVP's bid and calls for a
new auction.

                      June 8 Auction

Rick B. Antonoff, Esq., at Pillsbury Winthrop Shaw Pittman LLP,
in New York, relates that the June 8 auction was conducted in
two stages and provided two options.  The first stage of the
auction included a minimum bid requirement and the second stage
had no minimum bid.  Both stages provided bidders with the
option to bid on either:

   -- the entire air transportation operations with the proceeds
      of the sale to be paid towards the airline's ongoing
      operations and toward the payments required under the
      Consolidated Recovery Plan; or

   -- the  domestic and regional operations with the proceeds of
      the sale to be applied to the then outstanding
      postpetition debts and the remainder to be injected into
      VARIG's international operations and to make the payments
      required under the Recovery Plan.

Since NVP's bid did not reach the $860 million minimum bid
requirement, a second auction commenced immediately.  With no
other bids for VARIG's entire air operation, the auction
concluded with NVP as the successful bidder, subject to the
Brazilian Court's approval.

            NVP Bid Gets Conditional Approval

On June 9, 2006, the Brazilian Court approved the NVP bid
subject to the requirement that:

   a. NVP immediately provide proof of its ability to fund the
      US$75 million require deposit to VARIG; and

   b. NVP change the US$220 million debenture feature of its bid
      to either cash or the assumption of an equal amount in
      postpetition debt with proof of its ability to fund the
      postpetition debt.

Bloomberg says the Brazilian Court will look into NVP's offer
next week.

                       About VARIG

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

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

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


* BRAZIL: IDB Grants US$118 Mil. for Power Transmission Project
---------------------------------------------------------------
The Inter-American Development Bank approved a US$118.1 million
loan to a private concessionaire in Brazil for the development
of an energy transmission line to cross the country's Northern
and Northeastern areas.  The program will help reinforce and
improve power supply in a national interconnected system and
improve the efficiency and reliability of the electricity
system.

The project comprises the development, construction, erection,
commissioning, operation and maintenance of a 1,200 Megawatt,
922-kilometer, 500-kilovolt energy transmission line from the
Colinas substation in the state of Tocantins to the Sobradinho
substation in the state of Bahia.

The project company, ATE II Transmissora de Energia S.A. --
sponsored by Abengoa S.A., ATE II's controlling shareholder
-- was awarded the concession by the Government of Brazil in
November 2004.  Construction began in 2005 and the project is
expected to be in operation in March 2007.

"The project is vital for the Brazilian integrated energy system
and particularly attends the energy needs of the Northeastern
region of Brazil, by increasing its transmission to 1200
Megawatts capacity and improving its reliability by reducing
energy shortages and interruptions caused by long distance
transmission instabilities," said IDB Team Leader Rocio Medina-
Bolívar.  "Project benefits will be evidenced by increasing
storage capacity, reducing energy deficit, increasing energy
flows between regions and savings in fuel cost, as ATE II will
enable the system to take advantage of the hydrological
differences between the regions interconnected by the project."

The IDB financing includes an "A-loan" of up to US$107.8 million
from the Bank's ordinary capital and a syndicated "B-loan", of
up to US$10.3 million, consisting of resources from financial
institutions that subscribe participation agreements with the
IDB.  BNDES and local commercial banks, through on-lending of
BNDES, will also be co-lenders for approximately US$162.6
million.

                        *    *    *

Fitch Ratings assigned these ratings on Brazil:

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




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


ATACAMA FUND: Last Day to File Proofs of Claim Is on July 14
------------------------------------------------------------
Atacama Fund Limited's creditors are required to submit proofs
of claim by July 14, 2006, to the company's liquidators:

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

Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Atacama Fund's shareholders agreed on April 27, 2006, for the
company's voluntary liquidation under Section 135 of Cayman's
Companies Law (2004 Revision).


ATACAMA MASTER: Creditors Must File Proofs of Claim by July 14
--------------------------------------------------------------
Atacama Master Fund Limited's creditors are required to
File proofs of claim by July 14, 2006, to the company's
liquidators:

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

Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Atacama Master's shareholders decided on April 27, 2006 to place
the company into voluntary liquidation under Section 135 of
Cayman's Companies Law (2004 revision).


BANCREDIT CAYMAN: GFN Corp. Opposes Discovery Authority Request
---------------------------------------------------------------
GFN Corp., Ltd., balks at the discovery authority request
included in Bancredit Cayman Limited's chapter 15 petition filed
with the U.S. Bankruptcy Court for the Southern District of New
York.

John K. Cunningham, Esq., at White & Case LLP, in Manhattan,
clarified that GFN does not object to recognition of Bancredit's
liquidation proceeding in the Cayman Islands as a foreign main
proceeding.  What GFN doesn't like is providing the liquidators
with unfettered authority to act as a roving commission to
obtain unidentified information from unidentified parties.  Mr.
Cunningham argued that this relief is inappropriate without
first requiring the liquidators to demonstrate to the Court what
information is sought, why it might be relevant to the
administration of the Cayman Proceeding, and against whom the
information requests are directed, and to provide notice to
those parties.

According to Mr. Cunningham, the overly broad authority sought
by the liquidators is beyond what a trustee, a debtor-in-
posssession, or other party-in-interest could be granted in
other cases under the Bankruptcy Code.

Headquartered in Grand Cayman, Cayman Islands, Bancredit Cayman
Ltd. is a banking institution.  Richard Fogerty & G. James
Cleaver of Kroll (Cayman) Ltd., the joint official liquidators
for the Company, filed a chapter 15 petition on May 10, 2006
(Bankr. S.D.N.Y. Case No. 06-11026).  Timothy T. Brock, Esq., at
Satterlee Stephens Burke & Burke LLP represents the liquidators.
When the petitioners filed for chapter 15, they reported that
the Debtor's assets amount to US$100 million and its liabilities
aggregate US$215 million.


BROWNIE FUNDING: Filing of Proofs of Claim Ends on July 14
----------------------------------------------------------
Creditors of Brownie Funding Corp. are required to prove
their claims to Martin Couch and Emile Small, the company's
liquidators, by July 14, 2006, or be excluded from
receiving any distribution or payment that the company will
make.

Creditors are required to send by July 14 their full names,
addresses, descriptions, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
the liquidators.

Brownie Fuunding's shareholders decided on May 30, 2006, to
place the company in voluntary liquidation under Section 135 of
Cayman's Companies Law (2004 revision).

The liquidators can be reached at:

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


CLASSY CAYMAN: Creditors Have Until July 14 to Present Claims
-------------------------------------------------------------
Classy Cayman Limited's creditors are required to present proofs
of claim by July 14, 2006, to Richard Gordon and Mike Hughes,
the company's liquidators.

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

The shareholders of Classy Cayman agreed on May 29, 2006, to
place the company in voluntary liquidation under Section 135 of
Cayman's Companies Law (2004 revision).

The liquidators can be reached at:

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


CT BONDS: Last Day to File Proofs of Claim Is on July 14
--------------------------------------------------------
CT Bonds Investment Cayman Limited's creditors are required to
submit proofs of claim by July 14, 2006, to the company's
liquidators:

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

Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

CT Bonds' shareholders agreed on May 29, 2006, for the company's
voluntary liquidation under Section 135 of Cayman's Companies
Law (2004 Revision).


GANNET ONE: Liquidator Won't Accept Claims Filed After July 14
--------------------------------------------------------------
Gannet One Funding Corp.'s creditors are required to file proofs
of claim by July 14, 2006, to the company's liquidators:

   Steven O'Connor
   Emile Small
   Maples Finance Limited
   P.O. Box 1093, George Town
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

The shareholders of Gannet One agreed on May 30, 2006, to place
the company under voluntary liquidation under Section 135 of
Cayman's Companies Law (2004 revision).


KFC LIMITED: Sets July 14 Deadline for Proofs of Claim Filing
-------------------------------------------------------------
KFC Limited's creditors are required to present proofs of claim
by July 14, 2006, to Richard Gordon and Guy Major, the company's
liquidators.

Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

KFC Limited's shareholders decided on May 26, 2006, to put the
company in voluntary liquidation under Section 135 of Cayman's
Companies Law (2004 revision).

The liquidators can be reached at:

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


LAPUTA V: Schedules July 14 Deadline for Filing of Claims
---------------------------------------------------------
Laputa V Funding Corp.'s creditors are required to prove
their claims to Steven O'Connor and Emile Small, the company's
liquidators, by July 14, 2006, or be excluded from receiving any
distribution or payment that the company will make.

Creditors are required to send by the July 14 deadline their
full names, addresses, descriptions, the full particulars of
their debts or claims, and the names and addresses of their
lawyers, if any, to the liquidators.

Laputa V's shareholders agreed on May 30, 2006, to place the
company in voluntary liquidation under Section 135 of Cayman's
Companies Law (2004 revision).

The liquidators can be reached at:

         Steven O'Connor
         Emile Small
         Maples Finance Limited
         P.O. Box 1093, George Town
         Grand Cayman, Cayman Islands


ML/ZWEIG DIMENNA: Proofs of Claim Filing Deadline Is on July 14
---------------------------------------------------------------
ML/ZWEIG Dimenna Ltd.'s creditors are required to submit proofs
of claim by July 14, 2006, to the company's liquidators:

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

Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

ML/ZWEIG Dimenna's shareholders agreed on May 19, 2006, for the
company's voluntary liquidation under Section 135 of Cayman's
Companies Law (2004 Revision).


POETIC CAYMAN: Deadline to File Proofs of Claim Is on July 14
-------------------------------------------------------------
Poetic Cayman Limited's creditors are required to present proofs
of claim by July 14, 2006, to the company's liquidators:

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

Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Poetic Cayman's shareholders decided on May 29, 2006 to place
the company into voluntary liquidation under Section 135 of
Cayman's Companies Law (2004 revision).


RIMINI LTD: Creditors Have Until July 3 to File Proofs of Claim
---------------------------------------------------------------
Rimini Limited's creditors are required to send by July 3, 2006,
their names, addresses, the particulars of their debts or
claims, and the names and addresses of their attorneys-at-law
(if any) to the liquidator:

    Manex Limited, Bahamas
    c/o Messrs. Maples and Calder
    P.O. Box 309 George Town, Ugland House
    South Church Street, George Town
    Grand Cayman, Cayman Islands

Rimini Ltd.'s shareholders agreed on May 29, 2006, to place the
company in voluntary liquidation under Section 135 of Cayman's
Companies Law (2004 Revision).




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


AES GENER: Plans Maipo Hydro Project with Aguas Andinas
-------------------------------------------------------
AES Gener, a subsidiary of AES Corp., plans to construct a 530MW
hydro project in the Maipo river basin in the Metropolitan
Region with Aguas Andinas, according to a report by Diario
Financiero.

The project, tagged as Alto Maipo, would cost about US$500
million, Diario Financiero states.

Diario Financiero recalls that Gener and Aguas Andinas proposed
the project to Chile's energy commission, CNE, last week.

The two companies will be submitting environmental impact study
documents in the coming weeks, says Diario Financiero.

Business News Americas relates that Alto Maipo will be made up
of two "run-of-the-river" factories on rivers Maipo and
Colorado.

Alto Maipo is expected to be operational by 2012, BNamericas
reports.

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

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

                        *    *    *

On May 25, 2006, Moody's Investors Service upgraded the senior
unsecured debt of AES Gener to Ba1 from Ba3 with stable outlook.




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


* COLOMBIA: IMF Completes Second Review of Stand-by Agreement
-------------------------------------------------------------
The Executive Board of the International Monetary Fund on
June 12, 2006, approved on a lapse-of-time basis the second
review of Colombia's performance under an 18-month SDR405
million (about US$597 million) Stand-By Arrangement approved on
April 29, 2005.  The Board also approved Colombia's request for
a rephasing of the remaining purchases under the arrangement.

Completion of this review means Colombia's access to a credit
line amounting to SDR320.4 million (aboutUS$ 472 million).
However, the authorities continue to treat the arrangement as
precautionary, and do not intend to draw on the credit
available.

                        *    *    *

Colombia's ratings affirmed by Fitch are:

   -- Foreign currency Issuer Default Rating (IDR) 'BB';
   -- Local currency Issuer Default Rating (IDR) 'BBB-';
   -- Country Ceiling 'BB';
   -- Short-term 'B'.


* COLOMBIA: Ministry to Propose Personal Computers Tax Reduction
----------------------------------------------------------------
The communications ministry of Colombia said in a statement that
it intends to send a draft bill to congress proposing to reduce
taxes on low cost personal computers or PC as a means of
increasing its penetration in the country.

BNamericas relates that the ministry is aiming to boost Internet
penetration and more specifically broadband penetration.

According to BNamericas, Internet penetration has been growing
20% per year while that of broadband has a yearly growth of 40%.

Martha Pinto de De Hart, the communications minister, told
BNamericas, "We are aware that one of the biggest obstacles to
increasing Internet and broadband penetration in Colombia is the
high cost of PCs."

The communications department is discussing with the commerce,
industry and tourism ministry the cancellation of taxes imposed
on imports of PC parts, BNamericas states, citing Ms. De Hart.

                        *    *    *

Colombia's ratings affirmed by Fitch are:

   -- Foreign currency Issuer Default Rating (IDR) 'BB';
   -- Local currency Issuer Default Rating (IDR) 'BBB-';
   -- Country Ceiling 'BB';
   -- Short-term 'B'.




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


FALCONBRIDGE LTD: US DOJ Completes Review of Xstrata's Offer
------------------------------------------------------------
The US Department of Justice confirmed that it has completed its
review of Xstrata's proposed acquisition of Falconbridge Limited
and has not identified any competition issues under the Hart-
Scott-Rodino Act.

The DOJ allowed the Hart-Scott-Rodino waiting period to expire
without taking action or seeking any type of remedy.  Xstrata is
free to proceed with its offer with no further US anti-trust
review.

However, European and Canadian competition authorities have yet
to approve Xstrata's proposal, which is due on July 13, 2006,
for the European Union, Reuters reports.

Claire Divver, Xstrata's spokeswoman, told Reuters that the
company expects the Canadian authorities to give their decision
before the offering deadline on July 7, 2006.

"We don't expect any antitrust issues at all, which encompasses
the U.S. Department of Justice, the EU and Canada," Ms. Divver
told Reuters.

According to Reuters, Inco has petitioned to the Canadian
industry minister in an effort to delay the review on Xstrata,
which is due on July 12, 2006, before the EU can make a
decision.

Reuters relates that a Canadian parliamentary industry committee
has requested the minister to close the review on Xstarta's
proposal after all international regulatory bodies have made
their ruling on the Inco-Falconbridge proposal.

                      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 commodities
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 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: Aims to Eliminate Energy Subsidy by 2007
--------------------------------------------------------------
The Dominican Republic plans to eliminate energy subsidies by
July 2007 through an integrated three-year plan, Radhames Segura
-- the executive vice president of the Energy Consortium or
CDEEE -- said during an extensive presentation at the First
International Encounter on energy.

Dominican Today reports that the meeting, which was attended by
the country's President Leonel Fernandez, was held to evaluate
the reform on the energy sector.

According to Dominican Today, Mr. Segura said that plans include
collecting up to US$114 million in July 2007, and US$130 million
by December next year.

The only costs to be subsidized relate to operational costs that
would also be eliminated by December 2007, Mr. Segura told
Dominican Today.

Dominican Today states that Mr. Segura said the president could
use the subsidy funds on social projects that the country needs
badly like hospitals, schools and the Armed Forces.

Investments would be for the construction of transmission
networks to reduce losses to 1.9% from 2.8%, Dominican Today
relates.

                        *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

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

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

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


* DOMINICAN REPUBLIC: Bank Auctions DOP200-Mil. Certificates
------------------------------------------------------------
Dominican Republic's Central Bank auctioned on June 14 DOP200
million worth of investment certificates, Dominican Today
reports.

Dominican Today relates that among those invited to participate
are:

    -- multiple banking entities,
    -- savings and loans associations,
    -- savings and loans banks,
    -- financials,
    -- small loans units,
    -- savings and credit cooperatives,
    -- institutional investors,
    -- insurance companies,
    -- public and private investment funds,
    -- exchange houses, and
    -- other non-financial entities and individuals.

Dominican Today states that the minimum amount for offers is
DOP100,000.  Offers can be submitted by filling up a form on the
Central Bank Web page.

As reported in the Troubled Company Reporter on May 26, 2006,
Dominican Republic's Central Bank also auctioned DOP2,500
million worth of investment certificates on May 24.

                        *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

   -- Short-term Issuer Default Rating: B.

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

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

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


* DOMINICAN REPUBLIC: Cement Industry Loses Over DOP100 Mil.
------------------------------------------------------------
The Dominican Republic's cement industry posted losses of more
than DOP100 million at November 2005, the DR1 Newsletter
reports.

Spokesmen of the Cement Producers Association told DR1 that the
government's coffers have suffered, revealing a reduction of
DOP85 million a month in decreased income from taxes.

According to DR1, the losses resulted to an ill-advised price
war.

As reported in the Troubled Company Reporter on May 31, 2006, a
manufacturer had initiated a price war, taking down prices below
production costs.  This strategy, however, suddenly stopped and
now prices have risen over 75%.

DR1 relates that Jean Alain Rodriguez, the executive director of
Cementos Dominicanos or Domicen, the newest cement provider,
admitted that things got out of control when his firms entered
the market competing with lower prices.

DR1 states that when the producers reversed the price trend and
almost doubled the price, the government intervened and asked
them to stop the price increases and reduce them.  The producers
then decreased the price to US$3.79 per bag from US$2.18 a bag.

While recognizing the importance of cement in the construction
sector, the Cement Producers Association however told DR1 that
cement represented 8% of the raw material costs of a building on
a per kilogram basis.

                        *    *    *

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: Puts Block 15 Oil Field Under State of Emergency
-----------------------------------------------------------
Ecuador's President Alfredo Palacio has declared a state of
emergency on block 15 and other assets formerly operated by US
oil company Occidental (NYSE: OXY), the presidential website
reported.

The state of emergency will allow state oil company Petroecuador
to avoid the paperwork associated with public company operations
-- for example, tender processes -- and concentrate on operating
the assets, a Petroecuador spokesperson told BNamericas,
confirming local press reports.

Production levels remain roughly at the normal 100,000 barrel-a-
day level.

The company will operate under the state of emergency until a
special committee selects a state-owned company to operate the
assets, the spokesperson said. The committee was appointed by
presidential decree on Monday.

Chile's state oil company Enap, Brazil's Petrobras (NYSE: PBR)
and China's Sinopec as well as Indian and Russian state-owned
companies have expressed interest in the block, with Colombia's
Ecopetrol interested in providing technical assistance, the
spokesperson said.

Ecuador expropriated Oxy's assets alleging the US company
transferred a 40% stake in block 15 to Canadian oil firm EnCana
(NYSE: ENC) in 2000 without government permission, overproduced
some wells and did not comply with the block's investment plan.

Oxy responded by filing an arbitration claim with the
International Center for Settlement of Investment Disputes.

                        *    *    *

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




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


* EL SALVADOR: Draft Bill on Ethanol Use Expected in July
---------------------------------------------------------
The government of El Salvador is expecting in July a draft bill
that would promote ethanol use in the country, Mario Salaverria,
the minister of agriculture and livestock, told the local press.

Reports say that the government aims to add locally produced
ethanol into the gasoline mix.  This would cut El Salvador's
yearly US$1 billion energy expenditure by US$100 million.

According to reports, ethanol could also be shipped to the
United States under the free trade agreement.

A Brazilian specialist has been hired by El Salvador's economy
ministry to study the initiative to define the ethanol-gasoline
mix, Business News Americas reports.

                        *    *    *

Fitch Ratings assigned these ratings on El Salvador:

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


* EL SALVADOR: Regulator Campaigns for Reduction of Power Use
-------------------------------------------------------------
Siget, the power and telecom regulator of El Salvador, said in a
statement that it launched Ahorre, a campaign to reduce power
consumption and maintain competitive energy prices.

Business News Americas relates that the energy savings campaign
aims to help consumers reduce bills on electricity usage by
being able to identify equipment power consumption requirements.

                        *    *    *

Fitch Ratings assigned these ratings on El Salvador:

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




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


* HAITI: Caribbean Group Urges Global Community's Aid to Nation
---------------------------------------------------------------
The Caribbean Community and Common Market or CARICOM has asked
the international community's participation in providing long-
term commitment to support Haiti in its stabilization, Radio
Jamaica reports.

The CARICOM was established by the Treaty of Chaguaramas, which
came into effect on Aug. 1, 1973.  It replaced the 1965-1972
Caribbean Free Trade Association or CARIFTA, which had been
organized to provide a continued economic cooperation between
the English-speaking nations of the Caribbean.

Radio Jamaica relates that Frank Davies, Bahamas' United Nations
Charge d'Affairs, told the United Nations' Fifth Committee --
which deliberated on the budget for the UN Stabilization Mission
in Haiti -- that the road ahead for the stabilization of Haiti
would be long and difficult and so support to the country must
be commended and pursued.

Mr. Davies told Radio Jamaica that he was pleased that the
mission is continuing to review its staffing requirements to
guarantee a greater proportion of national staff.

However, Mr. Davies said that the CARICOM wanted to know why the
mission must go on using consultancy services for disarmament,
demobilization and reintegration, Radio Jamaica relates.

Posts have been made available by the General Assembly, Radio
Jamaica states, citing Mr. Davies.

                        *    *    *

Haiti is currently seeking international help to spur economic
development in the country.  President Rene Preval submitted
that the country's poverty, widespread unemployment and the
dilapidated state of infrastructures will be alleviated with
increased international assistance.




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


DIGICEL LTD: Has 2,000+ Employees in 20 Markets
-----------------------------------------------
Digicel Ltd.'s number of employees has reached more than 2,000
throughout its 20 markets of operation.  In the past year,
Digicel has expanded from seven to 20 markets and doubled the
number of its employees.

"The Digicel family has grown significantly in the past year and
we are very proud of our staff's accomplishments.  The
commitment of our employees is the cornerstone of our unmatched
level of service and ability to provide more value and a better
customer experience then the competition," said Colm Delves, CEO
of Digicel.  "As we continue to deliver on our vision of a
seamless pan-Caribbean network, Digicel will demonstrate
unrivalled growth through the entrance into new markets in
conjunction with sustained growth in our existing markets.  As a
result our number of employees will grow in tandem."

With a significant amount of growth over the past five years,
Digicel has become a significant employer in the region.  More
than 90% of Digicel's staff is from the Caribbean.  The company
receives an average 400 resumes and inquires for employment each
day according to Digicel's human resources department.

Digicel reached this latest milestone through a combination of
internal growth and acquisition. Almost one year ago, Digicel
announced the acquisition of Cingular Wireless assets in the
Caribbean and Bermuda, which quickly accelerated the expansion
of its operations to several new markets.  In April, Digicel
closed its US$196 million acquisition of Bouygues Telecom Caribe
establishing operations in:

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

and in the same month launched operations in Trinidad & Tobago.
On May 2006, Digicel commenced operations in Haiti, a market of
over 8 million people.

As the employee base continues to grow, Digicel has made more
investments in professional development including the recent
introduction of its Digicel University, a comprehensive
portfolio of mentoring and training programs for all staff.
Digicel's ongoing commitment to developing staff and providing
growth opportunities has paid off significantly in high employee
retention rates.  Many employees have been with Digicel since
its launch in 2001.

The employee growth has been across all of Digicel's markets
including its headquarters in Jamaica.  The company has plans to
develop a state-of-the-art facility to house its Jamaica and
head office operations in New Kingston, Jamaica.

With over US$1 billion invested in the Caribbean region, Digicel
has become one of the most admired and leading brands in the
region.

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.


KAISER ALUMINUM: Wants Zurich Insurance Settlement Pact Approved
----------------------------------------------------------------
Kaiser Aluminum & Chemical Corporation and its affiliates ask
the U.S. Bankruptcy Court for the District of Delaware to:

   (i) approve their settlement agreement with Zurich Insurance
       Company (Switzerland), and Zurich International
       (Bermuda), Ltd.; and

  (ii) authorize the sale of certain Zurich-issued policies back
       to Zurich free and clear of liens, claims, encumbrances
       or other interests.

In May 2000, KACC instituted an insurance coverage action
against Zurich and other insurers before the Superior Court of
California for the County of San Francisco.  KACC is seeking:

    -- a declaratory judgment that the insurers are obligated to
       cover the asbestos-related bodily injury products that
       have been asserted against KACC; and

    -- damages for breach of contract and breach of the covenant
       of good faith and fair dealing against several of the
       insurers.

Zurich subscribed to or issued certain policies that provide
KACC insurance coverage that spans the period from 1977 to 1979,
and 1985 to 1987.

The Debtors and Zurich have engaged in negotiations to resolve
their dispute regarding the Subject Policies, Kimberly D.
Newmarch, Esq., at Richards, Layton & Finger, in Wilmington,
Delaware, relates.

Pursuant to the Settlement Agreement, Zurich agrees to make a
US$1,600,000 settlement payment not later than June 30, 2006.

Zurich will deliver the settlement amount to U.S. Bank National
Association, as settlement account agent, unless a Trigger Date
has occurred, in which case, payment will be made to Wells Fargo
Bank, N.A., as insurance escrow agent, for distribution to the
Funding Vehicle Trust.

The Trigger Date is the day that the last of these events has
occurred:

    -- the order approving the Settlement Agreement becomes a
       Final Order;

    -- the order confirming the Reorganizing Debtors' Plan
       becomes final; and

    -- the occurrence of the Plan Effective Date.

Other terms of the Settlement Agreement are:

   (a) Zurich will receive all benefits of being designated as a
       Settling Insurance Company in the Plan of Reorganization,
       including the benefits of the Personal Injury Channeling
       Injunctions;

   (b) KACC releases all its rights with respect to Zurich's
       participation under the Subject Policies and other rights
       under additional policies, and will dismiss Zurich from
       the Products Coverage Action;

   (c) KACC will sell the Subject Policies back to Zurich, and
       Zurich will buy back the Policies free and clear of all
       liens, claims, or interests, with Zurich's payment of the
       Settlement Amount constituting the consideration for the
       buy-back;

   (d) If any claim is brought against any of the Zurich that is
       subject to a PI Channeling Injunction, the Funding
       Vehicle Trust will exercise all reasonable efforts to
       establish that the claim is enjoined as to Zurich; and

   (e) Zurich will not seek from any entity other than its
       reinsurers or retrocessionaires:

       * reimbursement of any payments that it is obligated
         to make under the Settlement Agreement;

       * any other payments Zurich has made to or for the
         benefit of KACC or, upon its creation, the Funding
         Vehicle Trust, under the Subject Policies, whether by
         way of contribution, subrogation, indemnification or
         otherwise.

       In no event will Zurich make any claim for or relating to
       the insurance, reinsurance or retrocession against any
       KACC Party.

The Settlement Agreement contains certain rights to adjustment
of the Settlement Amount if Asbestos Litigation is enacted into
law before the earlier of the Trigger Date and June 30, 2006,
and the Asbestos Legislation does not provide Zurich a dollar-
for-dollar credit for payments under the Settlement.

Ms. Newmarch tells the Court that through the Settlement
Agreement:

   (i) KACC will eliminate its continuing costs of prosecuting
       the Products Coverage Action against Zurich;

  (ii) uncertainty regarding future payments by Zurich will be
       eliminated; and

(iii) total fixed payment from Zurich will be secured without
       further delay and cost to KACC.

                   About Kaiser Aluminum

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company, along with its Jamaican subsidiaries
-- Alpart Jamaica Inc. and Kaiser Jamaica Corporation --  filed
for chapter 11 protection on February 12, 2002 (Bankr. Del. Case
No. 02-10429), and has sold off a number of its commodity
businesses during course of its cases.  Corinne Ball, Esq., at
Jones Day, represents the Debtors in their restructuring
efforts.  On June 30, 2004, the Debtors listed US$1.619 billion
in assets and US$3.396 billion in debts.  (Kaiser Bankruptcy
News, Issue No. 98; Bankruptcy Creditors' Service, Inc.,
215/945-7000)


SUGAR COMPANY: Hoping to Pay Debts with Ministry & Creditor Aid
---------------------------------------------------------------
The Sugar Company of Jamaica hopes to solve its financial crisis
and be able to pay debts through the assistance of the Ministry
of Finance and Europe's KBC Group, the firm's creditor, The
Jamaica Gleaner reports.

Roger Clarke, the minister of agriculture and lands, told
Farmers Weekly, "We are pinning our hopes on what we can do
through the Ministry of Finance and we do have some credit
arrangement with KBC out of Europe, they have been funding us to
a certain extent."

Negotiations were taking place between the company and the
ministry, The Gleaner relates, citing Mr. Clarke.

Mr. Clarke told The Gleaner, "We do have some money coming in at
the second and final payment from the sugar produced, but the
problem is it is committed to paying debt so what we want to do
is to see if we can find a way to hold that (the first and
second payments) to deal with our present needs."

The divestment of the SCJ would aid the government in solving
the debt problem.  Eight firms from the United States, Brazil,
Canada India and China have shown interest in acquiring the
company's assets, the minister told The Gleaner.

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




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


DANA CORPORATION: Wants to Enter Into Spicer Share Purchase Pact
----------------------------------------------------------------
Dana Corporation and its debtor-affiliates seek authority from
the U.S. Bankruptcy Court for the Southern District of New York
to:

   (a) enter into and perform a Master Share Purchase Agreement
       dated May 30, 2006, by and among the Debtors, Desc
       Automotriz, S.A. de C.V., Inmobilaria Unik, S.A. de C.V.,
       Spicer, S.A. de C.V., and Dana Holdings Mexico, S. de
       R.L. de C.V., relating to dissolution of the Spicer Joint
       Venture; and

   (b) assume the Trademark License Agreement between Dana and
       Transmisiones TSP, S.A. de C.V., as amended, regarding
       the license of the "Spicer" trademark.

A full-text copy of the Master Share Purchase Agreement is
available for free at http://researcharchives.com/t/s?b4d

Spicer is a holding company, which, through its subsidiaries, is
engaged in the manufacture and sale of automotive parts in
Mexico.  The Debtors have full title to 5,329,801,806 Spicer
shares, which represents 48.803% of the issued and total
outstanding shares of Spicer.

The Debtors and Desc Automotriz are parties to the Spicer, S.A.
de C.V. Shareholders Agreement, as amended, dated as of
May 19, 2000, which:

   -- prohibits the Debtors from manufacturing or selling
      products in Mexico directly competitive with those of
      Spicer; and

   -- provides that Desc Automotriz will be a preferred partner
      through Spicer should the Debtors expand their production
      in Mexico.

According to Corinne Ball, Esq., at Jones Day, in New York, the
Debtors and Desc Automotriz have agreed on a series of
transactions to unwind the Spicer JV which are memorialized in
the Share Purchase Agreement and other related agreements.

Upon completion of the transactions:

   (a) the Dana Companies will have acquire sole ownership of
       the Spicer Entities involved in the manufacture of axles,
       driveshafts and gears and the casting and forging
       businesses, along with some companies that support those
       operations -- the Dana Targets -- which include:

          * Ejes Tractivos, S.A. de C.V. -- Etrac,
          * Engranes C>nicos, S.A. de C.V. -- ENCO,
          * Cardanes, S.A. de C.V.,
          * Autometales, S.A. de C.V. -- AMSA,
          * Forjas Spicer, S.A. de C.V.,
          * Direcspicer, S.A. de C.V.,
          * Spicer Servicios, S.A., and
          * Corporaci>n Inmobiliaria; and

   (b) Desc Automotriz and Spicer will have acquire sole
       ownership of the remaining JV Subsidiaries.

The Share Purchase Agreement provides for the Debtors'
divestiture of the Dana JV Shares and the acquisition of the
shares of the Dana Targets:

   1. The Debtors will contribute US$19,500,000, to ENCO and
      Cardanes in return for hybrid securities, which will be
      treated as equity under U.S. law and debt under Mexican
      law;

   2. The debt owed by AMSA to Spicer will be capitalized by
      each of Desc Automotriz and Inmobiliaria Unik,
      contributing cash to AMSA in an amount equal to their
      percentage ownership in AMSA times the value of AMSA's
      debt, with the remaining portion of AMSA's indebtedness to
      Spicer being converted into additional equity held by
      Spicer in AMSA;

   3. All intercompany debt owed by the Dana Targets to Spicer
      will be assigned to Corporacion Inmobiliaria in return for
      Corporacion Inmobiliaria's issuance of additional shares
      of its stock to Spicer in satisfaction of all of the debt;

   4. After satisfaction of certain obligations, the Debtors and
      Desc Automotriz will split the cash held in Spicer and all
      of its subsidiaries based on their ownership interests in
      Spicer, with the resulting cash distribution to the Dana
      Targets being used to fund their ongoing operations;

   5. Desc Automotriz will buy the Debtors' shares in Spicer for
      US$166,010,000, to be paid in the form of a promissory
      note;

   6. ENCO and Cardanes will dividend the funds they received
      under the Hybrid Loans to Spicer and Inmobiliaria Unik;

   7. The Debtors will transfer the Desc Automotriz Promissory
      Note to Dana Holdings Mexico SRL de C.V., which is a
      wholly owned non-debtor Mexican subsidiary, to facilitate
      the contemplated transactions; and

   8. Dana Mexico will buy the Dana Targets from Spicer by
      transferring the Desc Automotriz Promissory Note to
      Spicer.

After the Spicer Transaction is consummated, the Debtors will
have swapped around 49% of their interest in Spicer, plus
US$19,500,000, for 100% ownership of the Dana Targets.

A diagram of the Spicer Transaction is available for free at:

               http://researcharchives.com/t/s?b4e

Pursuant to the Share Purchase Agreement, the parties will
adjust the purchase prices of the Dana JV Shares and the shares
of the Dana Targets at Closing to take into account levels of
working capital and cash in Spicer and its subsidiaries as of
June 30, 2006, with an adjustment for any prepetition payables
paid after June 30, 2006.

In the event that the actual working capital amounts for either
the Desc Targets or the Dana Targets diverge by 15% or more from
the average of the projected working capital amounts of the Desc
Targets and the Dana Targets, Desc Automotriz or Dana Mexico
will pay an adjustment to the purchase prices in the amount by
which the divergence exceeds 15%.

The parties have also agreed to estimate the level of cash as of
June 30, 2006, in Spicer and its subsidiaries and to debit and
credit from their own portions of that cash, which is based on
the ownership percentages in Spicer and the JV Subsidiaries, the
amounts required to satisfy the obligations of certain parties.

The Share Purchase Agreement contemplates that the Debtors will
reimburse Spicer for certain expenditures totaling US$7,000,000,
made on the Debtors' behalf to prepare and execute certain
projects to be pursued by the Dana Targets post-Closing.

The Debtors will reimburse Spicer for any amounts required to
terminate certain leases with GE relating to automobiles used by
employees of the Dana Targets.

To optimize the production capacity of the Dana Targets, the
Debtors plan to move a variety of production equipment from
certain of their U.S. facilities to facilities that will be
owned by the Dana Targets after the Spicer Transaction closes,
including:

   1. the moving assembly equipment from Fort Wayne, Indiana,
      and Buena Vista, Virginia, to a facility owned by Etrac in
      Mexico City;

   2. the moving axle related equipment from Cape Girardeau,
      Missouri, and Fort Wayne, Indiana, to the Etrac Facility;

   3. the moving plant steering machinery and assembly
      operations from Lima, Ohio, to a plant owned by Cardanes
      in Quer,taro, Mexico;

   4. the moving plant driveshaft machining from Bristol,
      Virginia, to the Cardanes Facility; and

   5. the moving plant driveshaft machining from Pottstown,
      Virginia, to the Cardanes Facility.

                    About Dana Corporation

Headquartered in Toledo, Ohio, Dana Corporation --
http://www.dana.com/-- designs and manufactures products for
every major vehicle producer in the world, and supplies
drivetrain, chassis, structural, and engine technologies to
those companies.  Dana employs 46,000 people in 28 countries.
Dana is focused on being an essential partner to automotive,
commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.
The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  Corinne
Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in
Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors.  Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker.  Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.  Thomas Moers
Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents
the Official Committee of Unsecured Creditors.  When the Debtors
filed for protection from their creditors, they listed US$7.9
billion in assets and US$6.8 billion in liabilities as of
Sept. 30, 2005.  (Dana Corporation Bankruptcy News, Issue No.
11; Bankruptcy Creditors' Service, Inc., 215/945-7000).


DIRECTV INC: Adds Azteca America's KODF-26 in Dallas Lineup
-----------------------------------------------------------
DIRECTV, Inc., provider of digital television service, has added
KODF-26, Azteca America, to the Dallas-Ft. Worth local broadcast
channel lineup.  DIRECTV is the only multichannel service
provider to deliver Azteca America throughout the entire Dallas-
Ft. Worth designated market area.

The launch of Azteca America in the Dallas DMA marks the first
time Azteca America programming is available to DIRECTV
customers in the sixth largest Hispanic market, as ranked by
Nielsen Media Research. DIRECTV customers in this DMA who
subscribe to the local channel package can now see a variety of
Azteca America's Spanish-language entertainment programming,
including:

   -- worldwide soccer highlight coverage,
   -- Ventaneando with Patti Chapoy,
   -- newscasts from Mexico,
   -- highly popular novelas and
   -- professional Mexican League Soccer matches.

TV Azteca, the second-largest producer of Spanish-language
programming in the world, provides KODF-26 with the full array
of TV Azteca's hard-hitting, highly popular novelas in weekday
primetime, including two brand new novellas, "Amor sin
Condiciones" and "Amores Cruzados."  On July 6 begins the brand
new season of "La Academia."

DIRECTV currently offers customers in the Dallas-Ft. Worth DMA
access to additional Spanish-language local channels, including:

   -- KXTX/Telemundo Channel 39,
   -- KSTR/Telefutura Channel 49 and
   -- KUVN/Univision Channel 23.

                      About TV Azteca

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

                        *    *    *

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

                       About DIRECTV

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

                        *    *    *

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


FORD MOTOR: Report Says Co. Will Invest US$9.2 Billion in Mexico
----------------------------------------------------------------
Ford Motor Co. will invest US$9.2 billion in Mexico to leverage
its low operating costs in the country, Reuters reports, citing
the Oakland Press.  The investment could potentially create up
to 150,000 jobs in the country over a six-year period.

Ford Motor has been slashing jobs and planning plant closures in
the United States in its effort to return its North American
operations to profitability.  The automaker faces rising costs
and decling market share in the United States.

Ford spokesman Oscar Suris said the Mexico investment news is
"speculative" when asked by Reuters.

Oakland Press said it got the information from a document given
to it by an unnamed Ford employee.  The newspaper added that a
second source vouched for the authenticity of the information.

                        *    *    *

On May 30, 2006, Standard & Poor's Ratings Services placed its
ratings on nine U.S. single-issue synthetic ABS transactions
related to Ford Motor Co. (Ford; BB-/Watch Neg/B-2) and Ford
Motor Credit Co. (Ford Credit; BB-/Watch Neg/B-2) on CreditWatch
with negative implications.

The May 25, 2006, placement of the ratings on Ford, Ford Credit,
and all related entities on CreditWatch with negative
implications does not have any immediate rating impact on the
Ford-related ABS supported by collateral pools of consumer auto
loans or auto wholesale loans.

Ford Motor has two assembly plants and an engine plant in
Mexico.


J.L. FRENCH: Creditors Unanimously Approve Chapter 11 Plan
----------------------------------------------------------
Each of the five voting creditor classes overwhelmingly accepted
J.L. French Automotive Castings, Inc.'s Plan of Reorganization,
which readies the company for its confirmation hearing on
June 21.

The second lien noteholders voted unanimously to accept the
Plan, along with more than 98% in claims amount and 95% in
number of the two classes of unsecured creditors who voted.
The senior subordinated noteholders who voted also unanimously
accepted the Plan.

In addition, the company's rights offering, which was conducted
concurrently with the solicitation of plan acceptances, was
fully subscribed at US$130 million by the second lien
noteholders.  Details on the rights offering subscriptions and
the voting report will be filed with the Court prior to the
confirmation hearing.

The unsecured creditors' committee has filed a statement in
support of Plan confirmation, and no objections to confirmation
were filed prior to the objection deadline.  If the court
confirms the Plan, the company expects to emerge from bankruptcy
shortly thereafter.

Headquartered in Sheboygan, Wisconsin, J.L. French Automotive
Castings, Inc. -- http://www.jlfrench.com/-- is one of the
world's leading global suppliers of die cast aluminum components
and assemblies.  There are currently nine manufacturing
locations around the world including plants in the United
States, United Kingdom, Spain, and Mexico.  The company has
fourteen engineering/customer service offices to globally
support its customers near their regional engineering and
manufacturing locations.  The Company and its debtor-affiliates
filed for chapter 11 protection on Feb. 10, 2006 (Bankr. D. Del.
Case No. 06-10119 to 06-06-10127).  James E. O'Neill, Esq.,
Laura Davis Jones, Esq., and Sandra G.M. Selzer, Esq., at
Pachulski Stang Ziehl Young & Jones, and Marc Kiesolstein, P.C.,
at Kirkland & Ellis LLP, represent the Debtors in their
restructuring efforts.  Miller Buckfire & Co., LLC, serves as
their financial advisor.  Ricardo Palacio, Esq., and William
Pierce Bowden, Esq., at Ashby & Geddes, PA, represents the
Official Committee Of Unsecured Creditors.  When the Debtor
filed for chapter 11 protection, it estimated assets and debts
of more than US$100 million.


KRISPY KREME: Sees Revenue Decline in Fiscal 2006 First Quarter
---------------------------------------------------------------
Krispy Kreme Doughnuts, Inc. (NYSE: KKD), expects to report
revenues of US$116 million for the first quarter of fiscal 2007,
which ended April 30, 2006, compared to revenues of US$153
million for the first quarter of fiscal 2006.  The decrease in
revenues principally reflects a decrease in the number of
Company stores, lower sales to franchisees from the Company's
Manufacturing and Distribution segment, and lower royalties and
fees from franchisees.

Systemwide sales fell approximately 17% in the first quarter of
fiscal 2007 compared to the first quarter of the prior year
primarily due to a 19% decrease in the number of factory stores
to 310 (total stores, including satellites, decreased 6%).
Average weekly sales per factory store increased 10% and 2% in
Company stores and systemwide, compared to the first quarter of
fiscal 2006.  Average weekly sales per store increased
approximately 10% for Company stores and decreased approximately
11% systemwide, compared to the first quarter of fiscal 2006.
The average sales per unit data reflect, among other things,
store closures and the related shift in off-premises doughnut
production into a smaller number of stores.

Systemwide sales data include sales at all Company and franchise
locations.  Systemwide sales are a non-GAAP financial measure;
however, the Company believes systemwide sales information is
useful in assessing the overall performance of the Krispy Kreme
brand and, ultimately, the performance of the Company.

"We are taking steps to turn around the Company," Daryl
Brewster, President and Chief Executive Officer, said.  "We have
filed our fiscal 2005 financial statements. We have reached an
initial settlement of the ERISA class action.  We continue to
see growth in our international markets, including two new
international development agreements.  We are also seeing signs
of stability in the United States."

The Company's financial results continue to be adversely
affected by the substantial costs associated with the legal and
regulatory matters.  The Company expects to report a net loss
for the first quarter of fiscal 2007.

                     Financial Position

The Company ceased consolidation of its sole remaining
consolidated franchisee, Glazed Investments, in early February
2006 when Glazed filed for bankruptcy protection.  Substantially
all of Glazed's assets subsequently were sold to another of the
Company's franchisees, which is continuing the business, and
Glazed's affairs are being wound up.  The Company believes that
the amount, if any, it will be required to pay pursuant to its
guarantee of a portion of certain of Glazed's indebtedness will
not be significant.  The indebtedness totaled US$13 million.

The Company believes that cash flow from operations, combined
with other anticipated cash inflows, will be sufficient to meet
its liquidity needs.  As of April 30, 2006, the Company's cash
balance was US$19 million and its indebtedness was US$121
million, compared to approximately US$20 million and US$122
million at Jan. 29, 2006.  The January amount excludes any
amount relating to Glazed Investments, its sole consolidated
franchisee at the time.  As of April 30, 2006, the Company had
no consolidated franchisees.  In May 2006, the Company sold for
cash its notes receivable from Krispy Kreme Australia for their
par balance of approximately US$3.8 million and entered into a
definitive agreement to sell its interest in Krispy Kreme UK for
approximately US$5.6 million cash.  The Company's unused
borrowing capacity under its credit facilities is expected to
have declined during the quarter due to a reduction in the
operating earnings on which such availability depends.  The
Company's operating plan for fiscal 2007 does not forecast any
additional borrowings under these credit facilities.

                      About Krispy Kreme

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) --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.

Headquartered in Winston-Salem, North Carolina, Freedom Rings
LLC is a majority-owned subsidiary and franchisee partner of
Krispy Kreme Doughnuts, Inc., in the Philadelphia region.  The
Debtor operates six out of the approximately 360 Krispy Kreme
stores and 50 satellites located worldwide.  The Company filed
for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del. Case
No. 05-14268).  M. Blake Cleary, Esq., Margaret B. Whiteman,
Esq., and Matthew Barry Lunn, Esq., at Young Conaway Stargatt &
Taylor, LLP, represent the Debtor in its restructuring efforts.
When the Debtor filed for protection from its creditors, it
estimated US$10 million to US$50 million in assets and debts.

Headquartered in Oak Brook, Illinois, Glazed Investments, LLC,
is a 97%-owned unit of Krispy Kreme.  Glazed filed for chapter
11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No.
06-00932).  The bankruptcy filing will facilitate the sale of 12
Krispy Kreme stores, as well as the franchise development rights
for Colorado, Minnesota and Wisconsin, for approximately US$10
million to Westward Dough, the Krispy Kreme area developer for
Nevada, Utah, Idaho, Wyoming and Montana.  Daniel A. Zazove,
Esq., at Perkins Coie LLP represents Glazed in its restructuring
efforts.  When Glazed filed for protection from its creditors,
it estimated assets and debts between US$10 million to US$50
million.

KremeKo, Inc., Krispy Kreme's Canadian franchisee, is currently
restructuring under the Companies' Creditors Arrangement Act.
Pursuant to the Court's Initial Order, Ernst & Young Inc. was
appointed as Monitor in KremeKo's CCAA proceedings.  The Monitor
is attempting to sell the KremeKo business.


MERIDIAN AUTO: Likely Lenders & Debtors Tap Hilco Appraisal
-----------------------------------------------------------
Meridian Automotive Systems, Inc., and its debtor-affiliates
seek authority from the U.S. Bankruptcy Court for the District
of Delaware to employ Hilco Appraisal Services, LLC, as
appraiser, nunc pro tunc to May 26, 2006.

The Debtors want Hilco to appraise their inventory, machinery
and equipment, and real property.

The Debtors and their potential exit lenders have agreed to
retain one set of mutually agreed upon appraisers, which will be
paid for by the Debtors.

Hilco will perform separate machinery and equipment appraisals
for the Prospective Lenders and the Debtors.

Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware, relates that the Prospective Lenders'
appraisal, to be used in connection with the Exit Facility due
diligence, will focus on various machinery and equipment at
various locations, assigning the machinery and equipment an
"orderly liquidation value."

Hilco will physically appraise the Debtors' machinery and
equipment located at:

           Location                         Size in Sq. Ft.
           --------                         ---------------
           Ionia, Michigan                       650,318
           Ionia, Michigan                        94,700
           Grabill, Indiana                      447,000
           Huntington, Indiana                   180,000
           Shelbyville, Indiana                  432,000
           Lenoir, North Carolina                131,091
           Kentwood, Michigan (Plant #1)         207,000
           Kentwood, Michigan (Plant #5)         244,000
           Kentwood, Michigan (Plant #7)         268,000
           Kentwood, Michigan (29th St.)          52,000
           Angola, Indiana                       115,000
           Angola, Indiana                        73,000
           Canton, Michigan                      120,000
           Detroit, Michigan                     306,000
           Detroit, Michigan                      67,765
           Kansas City, Kansas                   200,000
           Shreveport, Louisiana                  72,000
           Brantford, Ontario                    172,000
           Rushville, Indiana                     97,000
           Salisbury, North Carolina             282,000
           Grabill, Indiana (SMC)                 62,000
           Fowlerville, Michigan                 234,000
           Newton, North Carolina                 65,000
           Jackson, Ohio                         217,000

The appraisal to be used by the Debtors in connection with their
fresh start accounting will also focus on those machinery and
equipment, assessing their "fair value" in accordance with
Statement of Position No. 90-7:

           Location                         Size in Sq. Ft.
           --------                         ---------------
           Ionia, Michigan                       650,318
           Ionia, Michigan                        94,700
           Grabill, Indiana                      447,000
           Huntington, Indiana                   180,000
           Shelbyville, Indiana                  432,000
           Lenoir, North Carolina                131,091
           Kentwood, Michigan (Plant #1)         207,000
           Kentwood, Michigan (Plant #5)         244,000
           Kentwood, Michigan (Plant #7)         268,000
           Kentwood, Michigan (29th St.)          52,000
           Angola, Indiana                       115,000
           Angola, Indiana                        73,000
           Canton, Michigan                      120,000
           Detroit, Michigan                     306,000
           Detroit, Michigan                      67,765
           Kansas City, Kansas                   200,000
           Shreveport, Louisiana                  72,000
           Brantford, Ontario                    172,000
           Rushville, Indiana                     97,000
           Salisbury, North Carolina             282,000
           Grabill, Indiana (SMC)                 62,000
           Fowlerville, Michigan                 234,000
           Newton, North Carolina                 65,000
           Jackson, Ohio                         217,000
           Muzquiz, Mexico                       220,000
           Celaya, Mexico                        102,000
           Rio Claro, Brazil                     226,000

Hilco will perform an orderly liquidation value appraisal of the
Debtors' inventory, to be used as part of the Prospective
Lenders' due diligence, delineated between raw materials, work-
in-progress, and finished good inventory categories, Mr. Brady
tells the Court.

With respect to the Debtors' real estate, Hilco will estimate
the market value of several of the Debtors' properties located
in the United States.  This appraisal will be used in connection
with the Debtors' fresh start accounting.

The Debtors propose to pay Hilco a flat fee for each of these
appraisals:

                Appraisal                     Fee
                ---------                     ---
                Inventory                 US$48,500
                Machinery & Equipment    US$138,000
                Real Estate               US$76,500

On the Court's approval, the Debtors will pay Hilco a US$50,000
retainer, which will be applied to the total fees charged by
Hilco.

Andrew Dahlman, senior vice president of Hilco Appraisal
Services, LLC, assures the Court that:

    * Hilco has no connection with, and holds no interest
      adverse to, the Debtors or their estates in the matters on
      which Hilco is proposed to be engaged, except as
      disclosed;

    * Hilco does not hold any prepetition claims against the
      Debtors and as a result, it is not a "creditor" of the
      Debtors within the meaning of Section 101(10) of the
      Bankruptcy Code; and

    * Hilco is a "disinterested person" as that term is defined
      in Section 101(14) of the Bankruptcy Code.

                 About Meridian Automotive

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens.  When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 29; Bankruptcy Creditors'
Service, Inc., 215/945-7000).


MUNICIPALITY OF TEPATITLAN DE MORELOS: Moody's Withdraws Ratings
----------------------------------------------------------------
Moody's withdrew the issuer ratings A2.mx (Mexico National
Scale) and Ba2 (Global Scale, local currency) assigned to the
municipality of Tepatitlan de Morelos.  Moody's has withdrawn
these ratings for business reasons.


TELE NORTE: Banco Nacional Mulls Sale of 25% Stake in Company
-------------------------------------------------------------
The Brazilian Development Bank aka BNDES is studying a proposal
to sell its 25% in Tele Norte Leste Participacoes aka Telemar,
Fabio Sotelino, the capital markets manager of BNDES, told
financial daily Valor Economico.

BNDES' decision came as a result of a share conversion proposal
laid by Tele Norte.  The share restructuring scheme will convert
all shares into voting shares simplifying Telemar's structure
and bring its shareholders under one firm.  The company urrently
operates in 16 Brazilian states.  The restructuring is expected
to be approved this week, BNamericas says.

"I can't anticipate a decision," Mr. Sotelino told Business News
Americas.  However, he said that any sale would be for BNDES'
entire stake in the operator.

The restructuring, according to BNamericas, will lead to a
secondary offering of ordinary shares to be sold on the new
market listing of stock exchange Bolsa de Valores do Estado de
Sao Paulo or Bovespa, as well as on the New York Stock Exchange
or NYSE.

                        *    *    *

As reported in the Troubled Company Reporter on May 26, 2006,
Standard & Poor's Ratings Services disclosed that its 'BB' l
long-term corporate credit ratings on Brazil-based integrated
telecommunications carrier Telemar Norte Leste S.A. and its
holding company Tele Norte Leste Participacoes S.A. remain on
CreditWatch with positive implications, where they were placed
on Feb. 28, 2006.  The national scale rating assigned to three
local debentures issued by Telemar Participacoes S.A. (Tele
Norte's holding company) also remain on CreditWatch with
positive implications.

                        *    *    *

As reported in the Troubled Company Reporter on May 29, 2006,
Fitch Ratings has taken these rating actions for Tele Norte
Leste Participacoes S.A. and Telemar Norte Leste S.A.:

Tele Norte Leste Participacoes:

   -- International scale local currency issuer default rating
      upgraded to 'BBB-' from 'BB+' with Stable Outlook;

   -- International scale foreign currency IDR affirmed at 'BB-'
      with Positive Outlook;

   -- National scale rating upgraded to 'AA+(bra)' from
      'AA-(bra)' with Stable Outlook; and

   -- BRL1.3 billion local debenture issuance upgraded to
      'AA+(bra)' from 'AA-(bra)' with Stable Outlook.

Telemar Norte Leste S.A.:

   -- International scale local currency IDR affirmed at 'BBB-'
      with Stable Outlook;

   -- International scale foreign currency IDR affirmed at 'BB-'
      with Positive Outlook; and

   -- National scale rating upgraded to 'AA+(bra)' from
      'AA(bra)' with Stable Outlook.


TELE NORTE: Brandes Investment Slams Share Conversion Proposal
--------------------------------------------------------------
Brandes Investment Partners balks at a major share restructuring
planned by Tele Norte Leste Participacoes SA or Telemar.

Under Telemar's share restructuring scheme, the company wants to
consolidate the stocks of its subsidiaries into one class of
voting shares.

Brandes, which owns 8.75% of Telemar's preferred shares, told
Bloomberg News that converting all shares into voting shares
will compromised the preferred shareholders' stake in the
company's profits by more than a third.  Brandes asserts that
the conversion of shares would reduce preferred shareholders'
profits by 19% from 55%.

An analyst at Banif Investment Banking quoted by Bloomberg said
that Brandes' opposition could put pressure on Telemar to revise
its plan that seeks to improve corporate governance.

Brandes plans to ask Brazil's stock regulator to allow preferred
shareholders to vote separately on the plan, Bloomberg says.

                        *    *    *

As reported in the Troubled Company Reporter on May 26, 2006,
Standard & Poor's Ratings Services disclosed that its 'BB' l
long-term corporate credit ratings on Brazil-based integrated
telecommunications carrier Telemar Norte Leste S.A. and its
holding company Tele Norte Leste Participacoes S.A. remain on
CreditWatch with positive implications, where they were placed
on Feb. 28, 2006.  The national scale rating assigned to three
local debentures issued by Telemar Participacoes S.A. (Tele
Norte's holding company) also remain on CreditWatch with
positive implications.

                        *    *    *

As reported in the Troubled Company Reporter on May 29, 2006,
Fitch Ratings has taken these rating actions for Tele Norte
Leste Participacoes S.A. and Telemar Norte Leste S.A.:

Tele Norte Leste Participacoes:

   -- International scale local currency issuer default rating
      upgraded to 'BBB-' from 'BB+' with Stable Outlook;

   -- International scale foreign currency IDR affirmed at 'BB-'
      with Positive Outlook;

   -- National scale rating upgraded to 'AA+(bra)' from
      'AA-(bra)' with Stable Outlook; and

   -- BRL1.3 billion local debenture issuance upgraded to
      'AA+(bra)' from 'AA-(bra)' with Stable Outlook.

Telemar Norte Leste S.A.:

   -- International scale local currency IDR affirmed at 'BBB-'
      with Stable Outlook;

   -- International scale foreign currency IDR affirmed at 'BB-'
      with Positive Outlook; and

   -- National scale rating upgraded to 'AA+(bra)' from
      'AA(bra)' with Stable Outlook.


TV AZTECA: DirecTV Adds Subsidiary's KODF-26 in Dallas Lineup
-------------------------------------------------------------
DIRECTV, Inc., has added KODF-26, Azteca America, to the Dallas-
Ft. Worth local broadcast channel lineup.   DIRECTV is the only
multichannel service provider to deliver Azteca America
throughout the entire Dallas-Ft. Worth designated market area.

The launch of Azteca America in the Dallas DMA marks the first
time Azteca America programming is available to DIRECTV
customers in the sixth largest Hispanic market, as ranked by
Nielsen Media Research.  DIRECTV customers in this DMA who
subscribe to the local channel package can now see a variety of
Azteca America's Spanish-language entertainment programming,
including:

   -- worldwide soccer highlight coverage,
   -- Ventaneando with Patti Chapoy,
   -- newscasts from Mexico,
   -- highly popular novelas and
   -- professional Mexican League Soccer matches.

TV Azteca, the second-largest producer of Spanish-language
programming in the world, provides KODF-26 with the full array
of TV Azteca's hard-hitting, highly popular novelas in weekday
primetime, including two brand new novellas, "Amor sin
Condiciones" and "Amores Cruzados."  On July 6 begins the brand
new season of "La Academia."

DIRECTV currently offers customers in the Dallas-Ft. Worth DMA
access to additional Spanish-language local channels, including:

   -- KXTX/Telemundo Channel 39,
   -- KSTR/Telefutura Channel 49 and
   -- KUVN/Univision Channel 23.

                       About DIRECTV

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

                        *    *    *

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

                       About TV Azteca

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

                        *    *    *

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




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


* NICARAGUA: Inks Free Trade Pact With Taiwan
---------------------------------------------
Minister of Economic Affairs Hwang Ing-san of Taiwan and his
Nicaraguan counterpart, Alejandro Jose Arguello Choiseul, will
sign a free trade pact today in Taipei to enhance the bilateral
trade and economic cooperation between the two countries, the
Taiwan Central News Agency reports.

According to the officials, the agreement will officially take
effect at the beginning of next year, the CNA relates.

The negotiations on the agreement were completed earlier this
year.  Taiwan is involved with free trade pacts with other
Central American countries; today's event makes Nicaragua as the
third country to make an accord with Taiwan, the CNA says.

The CNA adds that the bilateral trade between Nicaragua and
Taiwan reached US$46.27 million in 2005, accounting for a year-
on-year growth of 5.2%.  It has also credited Taiwan with a
US$33.06 million trade surplus.

Taiwan mainly exports:

    -- textiles,
    -- kitchenware and
    -- plastic products.

Meanwhile, Nicaragua exports:

   -- frozen beef,
   -- coffee,
   -- timber, and
   -- scrap materials.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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




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


GRUPO BANISTMO: Begins Trading on Latibex Under XBAN Symbol
-----------------------------------------------------------
Panama's Grupo Banistmo began trading on Spain's Latibex on
Wednesday, using the ticker symbol XBAN, Dow Jones Newswires
reports.

Dow Jones recalls that Banistmo said in April it planned to list
its shares in Madrid or New York after refusing acquisition
offers from international investors.  The shares are being
traded in Panama's stock exchange.

Alberto Vallarino, the executive president of Banistmo, said in
a press release that the listing will give the company's shares
greater liquidity and will allow it to broaden its investor
base.

                        *    *    *

As reported on Nov. 9, 2005, Moody's Investors Service
affirmed the D+ financial strength rating and Ba1 foreign
currency deposit rating of Primer Banco del Istmo, S.A.  The
affirmation follows the announcement that Banistmo's
shareholder, Grupo Banistmo, S.A., has agreed to purchase
between 51% and 60% of Inversiones Financieras Bancosal S.A.,
the owner of Banco Salvadoreno, El Salvador's third largest
bank.




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


ADELPHIA: America Channel Fights Injunction v. Timer Warner Suit
----------------------------------------------------------------
The America Channel, LLC, filed a complaint against Time Warner
Cable, Inc., Time Warner NY Cable, LLC, Time Warner, Inc., and
Comcast Corporation in the United States District Court for the
District of Minnesota alleging antitrust violations.

America Channel is a television-programming network formed in
January 2003.  According to America Channel, since at least that
time, Time Warner and Comcast have unlawfully monopolized,
attempted to monopolize, and conspired to monopolize and
unreasonably restrain trade in cable system markets in the
United States and various regions by anti-competitive practices
-- including acquisitions of actual and potential competitors,
and swaps and horizontal divisions of markets and customers.

Daniel R. Shulman, Esq., at Gray, Plant, Mooty, Mooty & Bennett,
P.A., alleges that in April 2005, Time Warner and Comcast
engaged in bid-rigging and price-fixing by agreeing jointly to
bid for and acquire substantially all of the assets of Adelphia
Communications Corporation, and then to divide the acquired
assets, including cable systems in Minneapolis and St. Paul,
among themselves.

Mr. Shulman asserts that completion of the Adelphia acquisition
and the planned division of assets will constitute further
violations of Sections 1 and 2 of the Sherman Act and Section 7
of the Clayton Act; strengthen and enhance the unlawful
monopolies already held by Time Warner and Comcast; and
facilitate and better enable defendants to continue and
perpetuate their antitrust violations in the cable network
market, including specifically the exclusion of America Channel.

America Channel seeks to obtain damages for the injuries it has
sustained to date and will sustain up to the time of trial.

America Channel asks the Minnesota District Court to:

    -- find that Time Warner and Comcast have violated the law;

    -- enter a preliminary injunction and then a permanent
       injunction restraining and prohibiting Time Warner and
       Comcast from completing the Adelphia acquisition and
       associated division of markets and customers;

    -- award it actual damages sustained as a result of Time
       Warner and Comcast's violations of law;

    -- treble those damages;

    -- preliminarily and then permanently enjoin Time Warner and
       Comcast from continuing to engage in those violations of
       law; and

    -- allow it to recover its expenses and cost of suit,
       including reasonable attorney's fees.

                Time Warner Denies Allegations

Time Warner spokeswoman Susan Duffy told Bloomberg News that the
allegations in America Channel's complaint "are entirely
frivolous".  She says Time Warner is confident that the
complaint will not impede closing of the Adelphia transaction.

According to Bloomberg, Comcast spokesman Tim Fitzpatrick and
Adelphia spokesman Paul Jacobson declined to comment.

Early this year, the Federal Trade Commission closed its
antitrust investigation into the proposed sale of Adelphia's
assets to Time Warner and Comcast.

Time Warner is now urging the Federal Communications Commission
to approve the Adelphia Transaction, which has been under review
for more than a year.

Bloomberg reports that Time Warner Cable expects the deal to be
approved by July 31, according to spokesman Mark Harrad.

            ACOM's Complaint vs. America Channel, et al.

The ACOM Debtors ask the Bankruptcy Court for a declaration
that:

    -- The America Channel, LLC; Gray, Plant, Mooty, Mooty &
       Bennett, P.A.; and Alioto Law Firm, have impermissibly
       interfered with the Bankruptcy Court's jurisdiction and
       mandate by filing an action against Time Warner Cable,
       Inc., Time Warner NY Cable, LLC, Time Warner, Inc., and
       Comcast Corporation in the United States District Court
       for the District of Minnesota, which seeks, as its
       primary relief, a preliminary and permanent injunction
       enjoining the consummation of the Debtors' sale of their
       assets to Time Warner and Comcast;

    -- given the nature of the relief sought in the TAC Action,
       America Channel, et al., should have commenced the TAC
       Action, if at all, in the Bankruptcy Court;

    -- the TAC Action violates the automatic stay embodied in
       Section 362(a)(3) of the Bankruptcy Code;

The ACOM Debtors also ask the Bankruptcy Court for an injunctive
relief, preliminarily and permanently enjoining America Channel,
et al., from interfering with the Bankruptcy Court's
jurisdiction over the ACOM Debtors' Chapter 11 cases and the
Sale by prosecuting the claims asserted in the TAC Action in any
court other than the Bankruptcy Court.

America Channel is a television programming network set to
launch in late 2006.

Alioto Law Firm and Gray, Plant, Mooty, Mooty & Bennett, P.A.,
represent America Channel in the TAC Action.

According to Brian E. O'Connor, Esq., at Willkie Farr &
Gallagher LLP, in New York, the TAC Action on its face value
represents a blatant attempt by America Channel, et al., to
coerce, at the considerable expense of the ACOM Debtors and
their stakeholders, Time Warner and Comcast into carrying
America Channel's programming on their cable systems.  Even
though the ACOM Debtors were not named as defendants in the TAC
Action, the prosecution of the TAC Action and issuance of the
requested injunctive relief will interfere with the Bankruptcy
Court's administration of their Chapter 11 cases and will
irreparably injure the ACOM Debtors and their stakeholders, Mr.
O'Connor says.

Mr. O'Connor contends that America Channel's accusations in the
TAC Action have been summarily rejected by the Federal Trade
Commissions.

            Judge Gerber Blocks Attempt to Stop Sale

Judge Gerber preliminarily enjoins America Channel, et al.,
from:

    -- continuation of further proceedings in the TAC Action;
       and

    -- taking any other action, with the exception of any action
       taken in the Bankruptcy Court, to interfere with:

       * the Bankruptcy Court's jurisdiction over the Debtors'
         Chapter 11 cases; and

       * the sale of substantially all of the ACOM Debtors'
         assets to Time Warner and Comcast.

          America Channel, et al., Wants Order Vacated

America Channel asks the Minnesota District Court to vacate
Judge Gerber's order.  America Channel also asks the Minnesota
District Court to quash service of process on it in the New York
bankruptcy proceedings.

America Channel relates that until June 5, 2006, the only
service of anything related to the adversary proceeding made on
America Channel and its counsel was by e-mail.

America Channel have told the ACOM Debtors that it does not
intend to respond to the ACOM Debtors' papers or participate in
any proceedings in the New York Bankruptcy Court until proper
service is made.

America Channel and its attorneys also informed the ACOM Debtors
that they believe that the ACOM Debtors' counsel was attempting
to obstruct justice and that they would move to quash any order
served on them.

On June 2, 2006, the ACOM Debtors served Judge Gerber's order on
America Channel, through e-mail.

Mr. Shulman asserts that Judge Gerber's Order should be vacated
because:

    (1) None of the persons enjoined by the New York Bankruptcy
        Court is party to proceedings in that court.

    (2) The action filed in the Minnesota District Court is
        against defendants who are not parties to proceedings in
        the New York Bankruptcy Court.

    (3) America Channel has filed no action against Adelphia or
        any other debtor in the New York bankruptcy proceedings.

    (4) This is an original action to obtain relief for
        violations of United States antitrust laws by Time
        Warner and Comcast over which the Minnesota District
        Court has original jurisdiction.

    (5) The order of the New York bankruptcy court impermissibly
        interferes with the rights of The America Channel and
        its attorneys to prosecute the Antitrust Action and the
        jurisdiction of the Minnesota Court to hear and decide
        the matter.

    (6) The only service of papers on the parties enjoined by
        the New York bankruptcy court's order has been service
        by e-mail, which is insufficient.

    (7) There is no antitrust action pending in the United
        States bankruptcy court in New York.

               Debtors Want America Channel Penalized

The ACOM Debtors ask the Court to find that:

    -- America Channel, et al., violated the Temporary
       Restraining Order by filing their Motion to Quash in the
       Minnesota District Court; and

    -- the commencement of the TAC Action violated the automatic
       stay.

Mr. O'Connor asserts that the TRO clearly prohibits actions of
the type taken by America Channel, et al., including the Motion
to Quash.

Accordingly, Mr. O'Connor contends, America Channel, et al.,
should be found in civil contempt and should be sanctioned in an
amount not less than the ACOM Debtors' costs incurred in
preparing, filing and prosecuting their Contempt Motion.

                       About Adelphia

Based in Coudersport, Pa., Adelphia Communications Corporation
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth-largest
cable television company in the country.  Adelphia serves
customers in 30 states and Puerto Rico, and offers analog and
digital video services, high-speed Internet access and other
advanced services over its broadband networks.  The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002.  Those cases
are jointly administered under case number 02-41729.  Willkie
Farr & Gallagher represents the ACOM Debtors.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.  (Adelphia Bankruptcy News, Issue No. 135;
Bankruptcy Creditors' Service, Inc., 215/945-7000)


ADELPHIA: Continental Casualty Says Plan Violates Section 1129
--------------------------------------------------------------
Continental Casualty Company, a defendant in an adversary
proceeding initiated by the Official Committee of Unsecured
Creditors and the Official Committee Equity Security Holders,
argues that the Fourth Amended Plan of Reorganization filed by
Adelphia Communications Corporation and its debtor-affiliates
violates Section 1129 of the US Bankruptcy Code.

CNA used to own a US$5 million participation interest in the
credit agreement among Century Cable Holdings, LLC, Ft. Myers
Cablevision, LLC, and Highland Prestige Georgia, Inc., and Bank
of America, N.A., and Chase Manhattan Bank as co-Administrative
Agents.  CNA sold its participation interest in the Loan in
September 2002.

Leslie Berkoff, Esq., at Moritt Hock Hamroff & Horowitz LLP, in
New York, notes that the Plan allows the Plaintiffs to amend the
Adversary Proceeding at any time to plead with particularity and
allows those amendments to relate back to the original filing,
now almost three years old and almost two years after the
statute of limitations contained in Section 546 of the
Bankruptcy Code has run.

According to Ms. Berkoff, the defendants, including CNA, have
never had an opportunity to defend themselves or test the
allegations of the Adversary Proceeding.

"This right to amend violates Section 1129(b) because it
unfairly discriminates and is not fair and equitable as to CNA
(and the other non-agent participants) in its capacity as a
participant in the Loan," Ms. Berkoff asserts.

The Plan, Ms. Berkoff continues, also purports to limit CNA's
reimbursement obligations from the Debtors from a fund
established to pay indemnification claims, regardless of whether
that fund is sufficient to pay all claims.

CNA maintains a right to indemnification from the Debtors for
all damages that it incurs as a result of its being a
participant in the loan.  CNA, as a participant in a wholly
secured credit facility, would be paid in full under a chapter 7
scenario.

Ms. Berkoff notes that the Plan provides no assurances that the
fund will be sufficient to indemnify CNA.

"This potential shortfall is prejudicial to CNA, violates
Section 1129(a)(7) and the absolute priority rule, and is purely
a litigation strategy in the Adversary Proceeding although CNA
has been denied the opportunity to meaningfully participate,"
Ms. Berkoff says.

Although there is no guarantee that CNA will be paid its
indemnification obligation, the Plan provides for payment of
classes of claims and interests junior to CNA, Ms. Berkoff tells
the Court.  "This cannot be countenanced."

CNA also joins in the objections to confirmation filed by the Ad
Hoc Committee of Non-Agent Secured Lenders.

                        About Adelphia

Based in Coudersport, Pa., Adelphia Communications Corporation
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth largest
cable television company in the country.  Adelphia serves
customers in 30 states and Puerto Rico, and offers analog and
digital video services, high-speed Internet access and other
advanced services over its broadband networks.  The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002.  Those cases
are jointly administered under case number 02-41729.  Willkie
Farr & Gallagher represents the ACOM Debtors.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.  (Adelphia Bankruptcy News, Issue No. 135;
Bankruptcy Creditors' Service, Inc., 215/945-7000)


KOOSHAREM CORP: Moody's Rates Proposed US$300-Mil. Debt at B2
-------------------------------------------------------------
Moody's Investors Service assigned a B2 rating to the proposed
US$300 million senior secured credit facility of Koosharem
Corporation.  This is the first time that Moody's has assigned
ratings to Koosharem, a holding company that owns Select
Personnel Services, Inc.

On May 11, 2006, Select entered into a definitive agreement to
acquire RemedyTemp, Inc., for US$17 in cash per share,
representing approximately US$169 million in aggregate
consideration before US$27.9 million of unrestricted cash
received.  The acquisition is expected to close in June 2006 and
is subject to customary closing conditions, including approval
by Remedy shareholders.

The acquisition of Remedy together with the refinancing of
Select's existing debt is expected to be financed with a
US$215 million term loan, approximately US$24 million of
borrowings under a proposed US$85 million revolving credit
facility and US$27.9 million of unrestricted cash on hand.

The ratings reflect solid credit metrics for the rating
category, a strong market position in California, low levels of
customer concentration and good industry demand trends.  The
ratings are constrained by substantial integration risks,
intense price competition, and pronounced earnings and margin
cyclicality.

Moody's assigned these ratings:

   * US$85 million 5-year senior secured revolving credit
     facility, B2

   * US$215 million 6 year senior secured term loan B, B2

   * Corporate family rating, B2

   * The ratings outlook is stable.

The ratings are subject to review of executed documents and
Koosharem's 2005 audited financial statements.

The stable rating outlook anticipates flat to modestly declining
revenues as the company completes the integration of Remedy.
The pro forma operating margin, reflecting Moody's estimate of
cost savings, is expected to stabilize at about 3.5%.  Cash flow
from operations over the next year should exceed required
capital expenditures, term loan amortization and non-recurring
costs related to the integration.

The ratings could be upgraded if the company achieves steady
organic revenue growth and reaches management's targeted cost
savings such that debt to EBITDA and free cash flow to debt can
be sustained at less than 4 times and over 8%, respectively.

The ratings could be downgraded if the company experiences
difficulty completing the merger integration or suffers
deteriorating operating margins such that debt to EBITDA and
free cash flow to debt are expected to be sustained at over 6.5
times and below 3%, respectively.  A material settlement of
outstanding employment related litigation could also pressure
the ratings.

Select is a privately-held staffing services business with over
50 offices throughout California, Arizona, Florida, New Jersey
and Texas.  Select offers temporary, temp-to-hire, and direct
placement positions primarily in the clerical, accounting,
customer service, mortgage, industrial and technical fields.
Pro forma for the acquisition of Remedy, 2005 revenues were
about US$1 billion.  The combined company expects to provide its
services in 35 states, Puerto Rico and Canada, through a network
of 220 offices.


SAFETY KLEEN: Moody's Rates Proposed Credit Facilities at B1
------------------------------------------------------------
Moody's Investors Service assigned B1 ratings to the proposed
senior secured credit facilities of Safety-Kleen Systems, Inc.,
an indirect, wholly-owned subsidiary of Safety-Kleen HoldCo.,
Inc.  Concurrently, Moody's assigned a B1 Corporate Family
Rating to HoldCo.  The outlook for the ratings is stable.  The
transaction is in connection with the refinancing of the
company's capital structure through a combination of equity and
debt financing.  This is the first time Moody's is rating the
company's debt since its emergence from bankruptcy in December
2003.

Notwithstanding the company being in a turnaround mode for a
period that effectively spans the last seven years, Moody's
believes that the company's track record since it emerged from
Chapter 11 bankruptcy protection, including increasing revenue
growth, improvements in working capital management, diversity of
revenues, overall size, as well as valuable assets and
prominence in the oil recycling and re-refinery business, offers
substantive indication of ongoing improvement in business
performance. Offsetting these positive trends is the need for
substantial margin improvements for the company as a
prerequisite for profitability.

Moody's assigned these ratings:

Safety-Kleen HoldCo., Inc.:

   * Corporate Family Rating, rated B1;

Safety-Kleen Systems, Inc.:

  * US$100 million senior secured revolving credit facility due
    2012, rated B1;

  * US$230 million senior secured term loan B due 2013, rated
    B1;

  * US$65 million pre-funded letter of credit facility due 2013,
    rated B1.

  * The ratings outlook is stable.

The ratings are contingent upon the receipt of executed
documentation in form and substance acceptable to Moody's.

Profitability improvements that lead to sustainable adjusted
EBIT to interest coverage above two times and adjusted debt to
EBITDA leverage ratios closer to three times could lead to a
positive ratings outlook.  Improved pricing, continued growth in
the higher margin oil and oil products line of business as well
as capturing cost reductions can move the company closer to this
goal.

Increased costs that cannot be passed through could put negative
pressure on the company's margins and, consequently, the
ratings. In addition, if the company is unable to make
substantive progress toward sustained profitability and adjusted
EBIT to interest coverage exceeding 1.5 times, the rating could
be downgraded.

Safety-Kleen Systems, Inc. headquartered in Plano, TX, is a
provider of parts washers, industrial waste management and oil
recycling and re-refining services. Safety-Kleen serves 400,000
customers in a broad range of industries in the United States,
Canada and Puerto Rico and is the largest recovery and recycling
company for used oil products in North America.  The company is
privately held and had revenues of approximately US$925 million
for the fiscal year ending December 31, 2005.  Safety-Kleen
emerged from Chapter 11 bankruptcy protection in December 2003.




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


BWIA WEST: Workers Halt Strike to Meet with Firm Executives
-----------------------------------------------------------
Demonstrations against BWIA West Indies Airways were halted on
Tuesday when a meeting was scheduled between the company's
officials and the Aviation Communication and Allied Workers
Union or ACAWU, Trinidad and Tobago's Newsday reports.

As reported in the Troubled Company Reporter on June 14, 2006,
disgruntled BWIA workers held demonstrations outside BWIA's
offices in Piarco and Port of Spain over stalled wage
negotiations.  The workers said they could not wait any longer
for an agreed compensation package, threatening to intensify
action against BWIA if an agreement is not reached soon.

Curtis John, the head of ACAWU, told Newsday that the meeting
would be held at Piarco next Friday.

According to Newsday, the two parties would be discussing the
workers' grievances during the meeting.  Mr. John said that some
of the staff's grievances include:

   -- dismissals,
   -- suspensions, and
   -- unlawful terminations of employment of officers since
      2001.

Mr. John told Newsday that ACAWU had several matters against
BWIA before the Industrial Court.  Some of BWIA's retrenchments
were against the collective agreements the company made with its
employees.  The union official believed BWIA was trying to bribe
workers cheaply to halt actions against the company.  BWIA wants
to keep the union out of matters concerning workers, including
hiring and firing.

Newsday reports that Mr. John said BWIA's move to wet lease two
aircrafts was to incite workers to hold strikes that would
enable the company to fire them without reason.

As reported in the Troubled Company Reporter, BWIA wet leased
airlines Miami Air and North American Air to handle the New York
and London routes since June 12 when several of its employees
called in sick over the weekend.  The wet lease included the
lease of:

     -- the aircraft,
     -- flight crew,
     -- maintenance crew, and
     -- insurance.

Dionne Ligoure, BWIA's corporate communications manager, could
not be reached for comments, Newsday reports.

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

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




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


BANCO MERCANTIL: Inquiries on NY Agency Liquidation Due June 29
---------------------------------------------------------------
Banco Mercantil, C.A. (Banco Universal) commenced the voluntary
liquidation of its New York agency under the provisions of Sec.
605.11(c) of the New York State Banking Law.

Upon completion of the liquidation, all related businesses will
be conducted from Banco Mercantil's agency in Coral Gables,
Florida.

All inquiries regarding the winding up of Banco Mercantil's New
York Agency should be directed to Ms. Lourdes Jordan-Caldera
on or before June 29, 2006.  Ms. Caldera can be reached at this
number: (212) 891-7400.

Headquartered in Caracas, Venezuela, Banco Mercantil, C.A.
-- http://www.bancomercantil.com/-- is a universal bank with
which operates under the supervision of the Superintendence of
Banks and Other Financial Institutions.  It has 300 branches in
Venezuela, two agencies in Miami and New York, one branch in
Curacao and five representative offices in United Kingdom,
Brazil, Colombia, Peru and Mexico.

                          *     *     *

Banco Mercantil's long-term bank deposits carry Moody's B3
rating.  The rating was placed on Sept. 8, 2004, with a stable
outlook.

Standard & Poor's assigned the bank BB long-term local and
foreign issuer credit ratings and B short-term local and foreign
issuer credit ratings.  The ratings were placed on June 4, 1999,
with a stable outlook.

On Sept. 23, 2004, Fitch assigned the bank single B debt and
default ratings with a negative outlook.


PETROLEOS DE VENEZUELA: Plans to Issue US$3.5 Billion in Bonds
--------------------------------------------------------------
Petroleos de Venezuela SA or PDVSA will be issuing US$3.5
billion in bonds in the domestic and foreign markets, El
Universal reports, citing financial sources.

PDVSA has reportedly commissioned European investment banks
Deutsche Bank, UBS and Calyon to handle the transaction, El
Universal says.

A report from Santander Investment said that majority of the
proposed issue will be sold in Venezuela to support excess
liquidity in the country, El Universal says.

El Universal says PDVSA has resorted to financial markets in
order to fund President Hugo Chavez's social programs.

Meanwhile, research firm Ecoanalitica said that the debt
issuance is positive in the wake of PDVSA's buyback of foreign
debts that were more expensive for the company, El Universal
relates.

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.  Fitch said the Rating Outlook
is Stable.  Both rating actions followed Fitch's November 2005
upgrade of Venezuela's sovereign rating.


* VENEZUELA: May Oil Output Down 30,000 Barrels Per Day
-------------------------------------------------------
Venezuela reports producing 2.6 million barrels of oil per day
in May, compared to a 2.63 million bpd output in April, El
Universal cites data from the International Energy Agency.

As a result, Venezuela failed to meet its production quota under
the Organization of Petroleum Exporting Countries.  The
country's output is 620,000 bpd below the agreed production, El
Universal says.

The energy agency included in its report a lower estimate for
Venezuela's orimulsion production this year:

    -- 106,000 bpd in 2000;
    -- 110,000 bpd in 2001;
    -- 104,000 bpd in 2002;
    --  58,000 bpd in 2003;
    --  90,000 bpd in 2004;
    --  90,000 bpd in 2005; and
    -- 76,000 bpd to 84,000 bpd in 2006.

                        *    *    *

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


* Mauricio Pons Joins Alvarez & Marsal as Director
--------------------------------------------------
Alvarez & Marsal Real Estate Advisory Services, LLC announced
that Mauricio "Guicho" Pons, an experienced hospitality, tourism
and real estate industry professional with domestic and
international experience, has joined the firm as director.  He
is based in Dallas and will be a leader in the hospitality and
Latin America practice areas.

Mr. Pons brings substantial domestic and international
experience, and specializes in advising a variety of hospitality
properties including hotels, mixed-use resort developments,
hotel condominiums, interval ownership, all-inclusive resorts,
and marinas.  He also has significant experience with
residential, commercial and industrial projects in the US and
Latin America.

"Since forming A&M Real Estate Advisory Services nearly three
years ago, we have attracted a highly sophisticated team of
professionals with deep and diverse backgrounds," said Chuck
Bedsole, managing director and head of the hospitality and Latin
America practices for Alvarez & Marsal Real Estate Advisory
Services.  "Guicho's broad experience working with scores of
hospitality and leisure companies strengthens our impressive
roster of talent and industry-specific expertise.  In addition,
his extensive experience in the field of mergers and
acquisitions and transaction support is an ideal complement to
the restructuring practice we have established."

Prior to joining A&M, Mr. Pons was responsible for the merger
and acquisition activities in the Americas for Regus PLC, where
his responsibilities included the due diligence, contract/deal
negotiation, and post closing implementation and transitioning
of the acquisitions.  He also served as a manager in the
transaction advisory services group of PricewaterhouseCoopers,
and began his career in the real estate audit group at Ernst &
Young.

Mr. Pons earned his bachelor's degree in accounting and finance
from Texas A&M University.  He serves as an executive board
member of the Dallas Center for Contemporary Art, and is fluent
in Spanish.

              A&M Real Estate Advisory Services

Alvarez & Marsal Real Estate Advisory Services, LLC advises
owners, investors, lenders, and users of real estate throughout
the real estate lifecycle.  Alvarez & Marsal Real Estate
Advisory Services professionals align their interests with those
of their clients, and are committed to providing senior-level
attention, the right resources, objective advice and flawless
execution to every engagement.  Building on Alvarez & Marsal's
operational and problem-solving heritage, the Alvarez & Marsal
Real Estate Advisory Services team develops and implements
detailed real estate plans that improve operations, unlock value
and minimize risk.  Alvarez & Marsal Real Estate Advisory
services include: Restructuring Advisory, Litigation Advisory,
Strategy and Operations Consulting, Corporate Finance,
Transaction Advisory, Public Sector Advisory, Hospitality
Advisory, and Latin America Advisory.  Alvarez & Marsal Real
Estate Advisory Services, LLC, is an affiliate of Alvarez &
Marsal.

                      Alvarez & Marsal

Alvarez & Marsal -- http://www.alvarezandmarsal.com/ -- is a
leading global professional services firm with expertise in
guiding underperforming companies and public sector entities
through complex operational, financial and organizational
challenges.  The firm excels in problem solving and value
creation, and brings a bias toward executing solutions with a
distinctive hands-on approach to serving clients, management and
stakeholders.

Founded in 1983, Alvarez & Marsal draws on its strong
operational heritage to provide specialized services, including
Turnaround and Management Advisory, Crisis and Interim
Management, Performance Improvement, Creditor Advisory Services,
Corporate Finance, Dispute Analysis and Forensics, Tax Advisory,
Business Consulting, Real Estate Advisory and Transaction
Advisory.  A network of experienced professionals in locations
across the U.S., Europe, Asia and Latin America, enables the
firm to deliver on its proven reputation for leadership, problem
solving and value creation.


                         ***********


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

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

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

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

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

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


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