TCRLA_Public/060623.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 23, 2006, Vol. 7, Issue 124

                            Headlines

A R G E N T I N A

ABC FARMACOS: Verification of Proofs of Claim Ends on August 8
AUDIOCOLOR SA: Trustee Will Verify Proofs of Claim Until Aug. 18
BANCO HIPOTECARIO: Reduced Sovereign Exposure Boosted 1Q Results
COPY BLACK: Enters Bankruptcy on Court Orders
COVIAMA SA: Seeks Court Approval to Reorganize Business

DUSTON SACIF: Sets Aug. 31 Deadline for Verification of Claims
ESTUDIO FALCON: Claims Verification Deadline Is Set for Aug. 24
ORGANIZACION ADMINISTRACION: Claims Verification Ends on Aug. 28
SENAL ECONOMICA: Asks Court Approval to Restructure Debts
TERRAZAS DEL COLONIAL: Trustee Verifies Claims Until Sept. 1

VAPER SA: Trustee Has Until Aug. 11 to Verify Proofs of Claim

B A H A M A S

WINN-DIXIE: Allows Sylvania Lighting's US$1.4 Million Claims

B O L I V I A

BANCO MERCANTIL: Takes Lead in Bolivia's Financial System

B R A Z I L

BANCO BRADESCO: 1Q Results Show Better Profitability Level
BANCO DO BRASIL: Shows Steady Profitability Improvement in 1Q
BANCO ITAU: First Quarter Results Showed Strong Profitability
BANCO NACIONAL: Financing Consultations Grew 9% to BRL38 Bil.
COMPANHIA DE SANEAMENTO: S&P Affirms BB- Global Scale Ratings

COMPANHIA VALE: Approves Buy-Back Program of Preferred Shares
NOSSA CAIXA: Closes Distribution Deal With Visa Vale
PARMALAT BRASIL: Creditors Approve Sale to LatAm Equity Partners
PETROLEO BRASILEIRO: To Develop Frade Oil Field With Partners
SANTANDER BANESPA: Shows Steady Profitability Improvement

TELE NORTE: Cancels July BRL3 Billion Share Offering
UNIAO DE BANCOS: Loans Lower 2% in First Quarter

C A Y M A N   I S L A N D S

AI FIRST: Sets July 26 Deadline for Filing Proofs of Claim
AI SECOND: Last Day to File Proofs of Claim Is on July 26
AI SECURITY: Creditors Have Until July 26 to File Claims
CHEYNE CREDIT: Schedules Last Shareholders Meeting on July 20
COSTINHA SA: Last Shareholders Meeting Is Set for July 19

CUMULUS OFFSHORE: Holds Last Shareholders Meeting on July 14
ENSCO CORONADO: Liquidator Presents Wind Up Accounts on July 17
FARIPSA LIMITED: Schedules Final Shareholders Meeting on July 19
HEATON PROPERTIES: Sets Final Shareholders Meeting on July 19
INVIERNO HOLDINGS: Last Shareholders Meeting Will be on July 19

KARDIO COMPANY: Creditors Must File Proofs of Claim by July 26
MALIPUS LIMITED: Liquidator Presents Wind Up Progress on July 19
O, W & W HOLDINGS: Final Shareholders Meeting Will Be on July 19
PARALLAX LIQUID: Last Day to File Proofs of Claim Is on July 22
PARMALAT: Grand Cayman Court Appoints Kroll as Liquidator

RELOJ LIMITED: Final Shareholders Meeting Scheduled for July 19
STANLEY GLOBAL: Sets Final Shareholders Meeting on July 14
SUBMARINO.COM: Final Shareholders Meeting Is Set for July 17
SUMARA PORTFOLIO: Sets July 20 for Final Shareholders Meeting
TAKASAGODEN CORP: Final Shareholders Meeting Is Set for July 17

TROCADERO HOLDINGS: Last Shareholders Meeting Is on July 19

C O L O M B I A

BANCO DE BOGOTA: Completes Acquisition of 94.99% Megabanco Stake
BBVA COLOMBIA: Posts COP121 Billion Profit in Five Months
MEGABANCO: Banco de Bogota Completes 94.99% Stake Acquisition

* COLOMBIA: IFC Grants COP69-B Credit Guarantee to Interbolsa

C O S T A   R I C A

* COSTA RICA: Union Leaders Support Trade with European Union

C U B A

* CUBA: Mango Producers Meet With Dominican Counterpart
* CUBA: Aims Higher Ethanol Output

D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Expenditures Exceed Revenues
* DOMINICAN REPUBLIC: Producers Discuss Mango Marketing in Cuba
* DOMINICAN REPUBLIC: Picks Brazilian Firm to Build US$225MM Dam

E C U A D O R

* ECUADOR: Banana Exporters Want Accord with China
* ECUADOR: Guayaquil Included in IDB's Issuing Bank Program

E L   S A L V A D O R

* EL SALVADOR: Asks Spain to Fund Railway Rehabilitation Study
* EL SALVADOR: May Ink Free Trade Pact with Taiwan in October

G U A T E M A L A

* GUATEMALA: IDB Loans US$100MM for Financial Management Reform

H O N D U R A S

* HONDURAS: IDB Grants US$30-M Loan for Public Management Reform

J A M A I C A

KAISER ALUMINUM: Expects to Exit Chapter 11 Protection on July 6
NATIONAL WATER: Workers Hold Strike Due to Failed Wage Talks

M E X I C O

BALLY TOTAL: Will Join the Russell 3000 Index on June 30
GRUPO IUSACELL: Inks Data Roaming Deal With Sprint Nextel
J.L. FRENCH: Delaware Court Confirms Plan of Reorganization

N I C A R A G U A

* NICARAGUA: Sets Out Plan With Venezuela for Oil Shipment

P A R A G U A Y

* PARAGUAY: Public Sector Accounts for Most of Copaco Debt

P E R U

BANCO DE CREDITO: ROAA Grew 2.51% in First Quarter of 2006

* PERU: Study Shows Mobile Use Growth Quicker in Provinces

P U E R T O   R I C O

BURGER KING: Fitch Assigns BB Rating on US$1.12 Billion Sr. Debt
OCA INC: Court Dismisses Motions Enforcing Automatic Stay

T R I N I D A D   &   T O B A G O

MIRANT CORP: Creditors Committee Objects to Professional Fees
MIRANT: Court Denies Shareholders' Move for Protective Order

U R U G U A Y

BBVA URUGUAY: Posted Positive ROAA of 1.3% in First Quarter
CITIBANK NA: ROAA Grew 5.59% in First Quarter of 2006
DISCOUNT BANK: Posts Steady Solid Profits in First Quarter

* URUGUAY: Posts US$9.43 Billion Bank Deposits in May

V E N E Z U E L A

CERRO NEGRO: Moody's Downgrades Secured Debt Rating to B1
PETROLEOS DE VENEZUELA: Plans Oil Shipments with Nicaragua
PETROLERA HAMACA: Moody's Lowers Secured Debt Rating to B1
PETROZUATA FINANCE: Moody's Downgrades Secured Debt Rating to B1
SINCRUDOS DE ORIENTE: Moody's Lowers Secured Debt Rating to B1

* S&P Says LatAm Banks Maintain 2005 Trends in First Quarter



                         - - - - -  


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


ABC FARMACOS: Verification of Proofs of Claim Ends on August 8
--------------------------------------------------------------
Mauricio Mudric, the court-appointed trustee for the bankruptcy
proceeding of ABC Farmacos S.R.L., will verify creditors' proofs
of claim until Aug. 8, 2006.  Creditors who fail to submit the
required documents won't receive any post-liquidation
distributions.

After the claims are verified, Mr. Mudric will submit in court
individual reports and a general report that contains an audit
of ABC Farmacos' accounting and banking records.  The submission
dates for these reports are yet to be disclosed.

The trustee can be reached at:

       Mauricio Mudric
       Tucuman 893
       Buenos Aires, Argentina


AUDIOCOLOR SA: Trustee Will Verify Proofs of Claim Until Aug. 18
----------------------------------------------------------------
Gloria Clara Kremer, the court-appointed trustee for the
bankruptcy case of Audiocolor S.A., will verify creitors' proofs
of claim until Aug. 18, 2006.  Creditors who fail to present the
required dovcuments won't receive any post-liquidation
distributions.

Court No. 8 in Buenos Aires, with assistance from Clerk No. 15,
declared Audiocolor S.A. bankrupt at the behest of Jorge Horacio
Torres, whom the company owes US$4,069.25.

The debtor can be reached at:

       Audiocolor S.A.
       Luis Belaustegui 2770
       Buenos Aires, Argentina

The trustee can be reached at:

       Gloria Clara Kremer
       Lavalle 1672
       Buenos Aires, Argentina   


BANCO HIPOTECARIO: Reduced Sovereign Exposure Boosted 1Q Results
----------------------------------------------------------------
Banks across Latin America began the year continuing the
business trends seen in 2005.  There are no major changes to
business trends, with consumer lending showing more dynamism,
which is having a positive impact on profit generation.  In
general, Standard & Poor's Ratings Services expects the trend to
continue since it sees great potential for business development
in the region.

During first-quarter 2006, Banco Hipotecario S.A. (B/Stable/)
continued to progressively strengthen its balance sheet via the
reduction in the exposure to the sovereign, the partial
cancellation of the financial assistance granted by the Central
Bank in the context of the crisis, further reduction in the
mismatches, and the early redemption of a significant amount of
the bank's restructured debt.  The bank also maintained adequate
profitability indicators (with a ROAA at 2.90% versus 2.30% in
first-quarter 2005), improved its earnings base structure, and
reduced NPLs to 7.3% (from 8.2% as of December 2005).
Nevertheless, Banco Hipotecario will continue to face the
challenge of expanding its client base and increasing
intermediation in segments previously unexploited by the bank
(in which the bank has been growing quickly), given the still-
low potential of the bank's core mortgage lending business in
Argentina.


COPY BLACK: Enters Bankruptcy on Court Orders
---------------------------------------------
Copy Black S.A. enters bankruptcy protection after Court No. 1
in Buenos Aires ordered the company's liquidation at the behest
of Rithner Portedus y Cia. S.A.C.I., which it owes US$9,858.40.  

The order transfers control of Copy Black's assets to Adriana
Esnaola, the court-appointed trustee who will supervise the
liquidation proceedings.  She will verify creditors' proofs of
claims until the end of the verification phase, which is yet to
be disclosed.

Ms. Esnaola, pursuant to the Argentine bankruptcy law, will
provide the court with individual reports on the forwarded
claims and a general report containing an audit of Copy Black's
accounting and business records.  The submission dates of these
reports are yet to be disclosed.

Clerk No. 1 assists the court in this case.

The debtor can be reached at:

       Copy Balck S.A.
       Tucuman 320
       Buenos Aires

The trustee can be reached at:

       Adriana Esnaola
       Parana 489
       Buenos Aires, Argentina  


COVIAMA SA: Seeks Court Approval to Reorganize Business
-------------------------------------------------------
A court in Buenos Aires is reviewing the merits of Coviama
S.A.'s petition to reorganize its business.  Infobae relates
that the company filed the petition following a cessation of
debt payments.  Reorganization will allow Coviama to avoid
bankruptcy by negotiating a debt settlement with its creditors.


DUSTON SACIF: Sets Aug. 31 Deadline for Verification of Claims
--------------------------------------------------------------
Mirta Addario, the court-appointed trustee for Duston
S.A.C.I.F.'s bankruptcy case, will verify proofs of claim until
Aug. 31, 2006.  

Court No. 11 in Buenos Aires has declared that Duston's
reorganization must be converted into a bankruptcy proceeding.  
Consequently, all of the debtor's assets will be liquidated and
proceeds distributed to creditors.

Argentine bankruptcy law requires Ms. Addario to present in
court individual reports and a general report that contains an
audit of Duston's accounting and banking records after the
claims are verified.  The dates of submission of these reports
are yet to be disclosed.

Clerk No. 22 assists the court in the proceeding.

The debtor can be reached at:

       Duston S.A.C.I.F.
       Pedro Varela 3576
       Buenos Aires, Argentina

The trustee can be reached at:

       Mirta Addario
       Moreno 442
       Buenos Aires, Argentina


ESTUDIO FALCON: Claims Verification Deadline Is Set for Aug. 24
---------------------------------------------------------------
Luis Juan Kuklis, the court-appointed trustee for Estudio Falcon
S.R.L.'s bankruptcy case, will verify proofs of claim until
Aug. 24, 2006.  

Creditors who fail to submit the required documents won't
receive any post-liquidation distributions.

La Nacion reports that Court No. 6 in Buenos Aires declared
Estudio Falcon bankrupt at the request of Crescencio Alonso
Coronel, whom it owes US$9,650.61.

Clerk No. 11 assists the court on the case.

The debtor can be reached at:

       Estudio Falcon S.R.L.
       San Martin 170, Galeria Guemes
       Buenos Aires, Argentina

The trustee can be reached at:

       Luis Juan Kuklis
       Lavalle 1619
       Buenos Aires, Argentina


ORGANIZACION ADMINISTRACION: Claims Verification Ends on Aug. 28
----------------------------------------------------------------
Jose Eduardo Preve, the court-appointed for Organizacion,
Administracion, Limpieza y Vigilancia Integral S.A.'s bankruptcy
case, will verify proofs of claim until Aug. 28, 2006.  

Creditors who fail to submit the required documents won't
receive any post-liquidation distribution.

La Nacion relates that Court No. 5 in Buenos Aires declared
Organizacion, Administracion bankrupt at the request of Cristian
Tanquia, whom the company owes US$14,040.28.

Clerk No. 9 assists the court in this case.

The debtor can be reached at:

      Organizacion, Administracion, Limpieza y Vigilancia
      Integral S.A.
      H. Yrigoyen 788
      Buenos Aires, Argentina

The trustee can be reached at:

      Jose Eduardo Preve
      Presidente Roque Saenz Pena 651
      Buenos Aires, Argentina    


SENAL ECONOMICA: Asks Court Approval to Restructure Debts
---------------------------------------------------------
Senal Economica S.A., a company operating in Buenos Aires, asks
permission from Court No. 17 in Buenos Aires to reorganize its
business after defaulting on its debt payments on June 20, 2006.

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.

Clerk No. 50 assists the court on this case.

The debtor can be reached at:

       Senal Economica
       Maipu 267
       Buenos Aires, Argentina


TERRAZAS DEL COLONIAL: Trustee Verifies Claims Until Sept. 1
------------------------------------------------------------
Miguel Angel Fierro, the court-appointed trustee for the
bankruptcy case of Terrazas del Colonial S.A., will verify
creditors' proofs of claim until Sept. 1, 2006.  Creditors who
fail to submit the required documents won't receive any post-
liquidation distributions.

Court No. 20 in Buenos Aires declared Terrazas del Colonial
bankrupt at the behest of Martin Batista, whom the company owes
US$13,481.89.

Clerk No. 20 assists the court on the case.

The debtor can be reached at:

       Terrazas del Colonial S.A.
       Avenida del Lebertador 1174
       Buenos Aires, Argentina

The trustee can be reached at:

       Miguel Angel Fierro
       Avenida Presidente Roque Saenz Pena 1219
       Buenos Aires, Argentina


VAPER SA: Trustee Has Until Aug. 11 to Verify Proofs of Claim
-------------------------------------------------------------
Silvia Nora Davicco, the court-appointed trustee for Vaper
S.A.'s bankruptcy proceeding, will verify proofs of claim until
Aug. 11, 2006, Infobae states.  Creditors who fail to present
the required documents won't receive any post-liquidation
distributions.

The verified claims will be submitted in court as individual
reports on Sept. 13, 2006.  A general report that contains an
audit of Vaper's accounting and banking records will follow on
Nov. 9, 2006.

The trustee can be reached at:

       Silvia Nora Davicco
       Roque Saenz Pena 651
       Buenos Aires, Argentina




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


WINN-DIXIE: Allows Sylvania Lighting's US$1.4 Million Claims
------------------------------------------------------------
Sylvania Lighting Services Corp. and Winn-Dixie Stores, Inc.,
and its debtor-affiliates are parties to an Energy Services
Contract, dated Jan. 3, 2000, which was extended until
Dec. 31, 2005, via a letter agreement.

On July 19, 2005, Sylvania filed three unsecured non-priority
claims:

    (1) Claim No. 6862 for US$435,450 against Winn-Dixie
        Montgomery, Inc.;

    (2) Claim No. 6863 for US$796,885 against Winn-Dixie Stores,
        Inc.; and

    (3) Claim No. 6864 for US$234,654 against Winn-Dixie
        Raleigh, Inc.

Pursuant to Rule 3003(c)(4) of the Federal Rules of Bankruptcy
Procedure, claim nos. 6862, 6863, and 6864 superseded Sylvania
Lighting's three scheduled claims, which totaled US$1,147,583.

The Debtors investigated and verified that the claims contain
the correct amount.

After the Debtors filed for bankruptcy, Sylvania made a
reclamation demand for US$105,000.

Sylvania Lighting investigated the Reclamation Claim and has
determined that there was a mistake and that it should be
disallowed.

Accordingly, the parties stipulate that:

    (a) Claim Nos. 6862, 6863, and 6864 will be allowed as
        filed; and

    (b) the Reclamation Claim will be disallowed in its
        entirety.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people.  The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on Feb. 21,
2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred Apr. 14,
2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through 05-03840).
D.J. Baker, Esq., at Skadden Arps Slate Meagher & Flom LLP, and
Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King
& Spalding LLP, represent the Debtors in their restructuring
efforts.  Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 40; Bankruptcy Creditors' Service, Inc., 215/945-7000)




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


BANCO MERCANTIL: Takes Lead in Bolivia's Financial System
---------------------------------------------------------
Banks across Latin America began the year continuing the
business trends seen in 2005.  There are no major changes to
business trends, with consumer lending showing more dynamism,
which is having a positive impact on profit generation.  In
general, Standard & Poor's Ratings Services expects the trend to
continue since Standard & Poor's see great potential for
business development in the region.

As of April 2006, Banco Mercantil S.A. (B-/Negative/C) had
bought 96.3% of the shares of Banco Santa Cruz, previously owned
by Banco Santander Central Hispano.  With this operation, Banco
Mercantil positions itself as the most important bank in the
Bolivian financial system, with leading market shares in terms
of assets, loans, and deposits.  In first-quarter 2006, the bank
continued its growth but at a moderate speed, with ROAA dropping
to a still-positive 0.73%, comparing favorably with the 0.5% in
the same period of 2005.  Asset quality worsened, with NPLs
increasing to 11.8% as of March 2006 from 9.8% at the end of
2005. Coverage with reserves slipped to 65.72%.  In light of the
recent merger, Standard & Poor's expects the bank to resume its
growth, provided its consolidation process with the acquired
entity is smooth.




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


BANCO BRADESCO: 1Q Results Show Better Profitability Level
----------------------------------------------------------
Banks across Latin America began the year continuing the
business trends seen in 2005.  There are no major changes to
business trends, with consumer lending showing more dynamism,
which is having a positive impact on profit generation.  In
general, Standard & Poor's Ratings Services expects the trend to
continue since Standard & Poor's see great potential for
business development in the region.

First-quarter results for Banco Bradesco S.A. (BB+/Stable/B)
showed the bank's ability to sustain its improved profitability
level (ROA of 2.9% based on march 2006 annualized figures) by
means of its credit growth to profitable segments (loan
portfolio grew 28% in the 12 months ended March 2006) and
constant efforts at cost control.  The insurance,
capitalization, and private pension businesses continue to be
significant parts of the group's results (altogether
representing around 30% of the group's net income in first-
quarter 2006). Although recent lending expansion to individuals
and small and midsize companies has called for higher provision
cost for the Brazilian retail banks (Bradesco's ratio of new
loan-loss provisions to revenues grew to 12.2% as of March 2006
from 9.6% in 2005), the bank has been managing its credit risk
adequately and presented an NPL ratio of 5.1% in March 2006
compared to 4.8% in December 2005.


BANCO DO BRASIL: Shows Steady Profitability Improvement in 1Q
-------------------------------------------------------------
Banks across Latin America began the year continuing the
business trends seen in 2005.  There are no major changes to
business trends, with consumer lending showing more dynamism,
which is having a positive impact on profit generation.  In
general, Standard & Poor's Ratings Services expects the trend to
continue since Standard & Poor's see great potential for
business development in the region.

Banco do Brasil S.A.'s (BB/Stable/) results for first-quarter
2006 confirm the consistent trend of improvement in
profitability for several years already, despite the challenge
posed by its public-policy role that combines the profile of a
public institution with private-sector operations.  The bank
continues to carry sizable volumes of government securities due
to its role and previous restructurings. Despite the growth in
loans, the bank was able to keep the quality of the loan
portfolio under control with the ratio of NPLs to total loans at
6.8%, in line with the average in the system. At its current
level, the rating on Banco do Brasil mirrors the foreign
currency credit rating on the Federative Republic of Brazil.


BANCO ITAU: First Quarter Results Showed Strong Profitability
-------------------------------------------------------------
Banks across Latin America began the year continuing the
business trends seen in 2005.  There are no major changes to
business trends, with consumer lending showing more dynamism,
which is having a positive impact on profit generation.  In
general, Standard & Poor's Ratings Services expects the trend to
continue since Standard & Poor's see great potential for
business development in the region.

Banco Itau S.A. (BB+/Stable/B) confirmed its strong
profitability in first-quarter 2006 (annualized ROA of 3.7%
based on March 2006 figure) and its position among the most
efficient banks in the region.  The profitability level has been
supported by the bank's ability to maintain strong interest
margins (due to its low funding cost and high participation of
individual loans) and cross-selling ability; and better
efficiency than its retail peers.  The pace of its lending
expansion should continue this year after a 27% raise in 2005,
emphasizing loans to individuals and small-to-midsize companies.  
Despite the higher growth in loans to these two segments, the
bank has been able to manage its credit risk by reinforcing its
credit provisions.  The ratio of problem loans to total loans
reached 7.4% as of March 2006.  Standard & Poor's expects
problem loans to be maintained at adequate levels this year,
aided by expected economic growth and the bank's good credit
policies and procedures.


BANCO NACIONAL: Financing Consultations Grew 9% to BRL38 Bil.
-------------------------------------------------------------
The volume of financing consultations with Banco Nacional de
Desenvolvimento Economico e Social aka BNDES, between January
and May, increased 9% in relation to the same period in 2005,
and amounted to BRL38 billion.  In May, the consultations
increased 65%, reaching BRL12.6 billion and compensating for
performance in April, when there was a drop of 18%.  The growth
in consultations shows higher requests for future BNDES
financings for investment projects.  This may mean an expansion
in releases for the next months.

May disbursements of BRL3 billion, remained stable, with a
slight drop of 1% in relation to the same month in 2005.  Within
the first five months of current year, disbursements were
BRL13.6 billion, which is equivalent to a reduction of 10%
versus that of 2005.  In May, results point out to an
improvement in the dropping pace of disbursements. In April the
releases amounted to BRL10.58 billion, which is 12% less than in
2005.

In May, these sectors received the corresponding disbursements:

   -- farming sector, which accounted for the highest expansion
      of May disbursements, with an increase of 41%, amounted to
      BRL290 million;

   -- industry sector with an increase of 4% to BRL1.5 billion;

   -- trade and services sector, with an increase of 14%
      reaching BRL188.7 million; and

   -- infrastructure sector with a drop of 16% to BRL1 billion.

Between January and May, disbursements dropped for farming (13%)
and for infrastructure (4%), but increased for trade and
services (21%).

Approvals within the first five months of this year amounted to
BRL14.9 billion, equivalent to a drop of 11% in relation to the
same period of last year.  Eligibilities amounted to BRL32.4
billion, representing a drop of 7% in relation to the first five
months of last year.

For the social area, disbursements increased 119%, with 6,500
operations, which resulted in BRL531.6 million, between January
and May of 2006.  Financing to exports presented a slight growth
of 1% in the same period.

The Northeast region gained a relative share in BNDES
disbursements in current year.  Within the first five months of
2006, the Northeast states received 10% of total releases from
BNDES, over the 8% in same period of 2005.  Meanwhile, the
Southeast share in releases decreased, closing May with 59% of
disbursements against 61% between January and May of last year.  
The Center-West region also expanded its share in BNDES
releases, accounting for 9% of the total, against 6% in the same
period of 2005.  The North region maintained 3% and the South
region reduced its presence to 19%, against 22% last year.

These were the top five financial agents for BNDES' transfer of
funds:

   -- Bradesco came in first with BRL1.6 billion, of which 59.7%
      was expended for Micro, Small and Medium Enterprises or
      MSMEs;

   -- Banco do Brasil with BRL1 billion, 36.5% to MSMEs;

   -- Unibanco with BRL714 million, 18.1% to MSMES;

   -- Santander with BRL532 million, 10.6% to MSMEs; and

   -- Safra with BRL408 million, 39.8% to MSMEs.

                        *    *    *

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


COMPANHIA DE SANEAMENTO: S&P Affirms BB- Global Scale Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services has raised its Brazilian
national-scale corporate credit rating on Companhia de
Saneamento Basico do Estado de Sao Paulo aka SABESP to 'brA+'
from 'brA'.  At the same time, it affirmed the company's global-
scale ratings at 'BB-'.  The outlook is stable.
      
"The upgrade on the SABESP national scale ratings reflects
significant improvement in the company's financial risk profile
and our expectations that such performance will be sustainable
even in light of SABESP's substantial investment commitment,"
said Standard & Poor's credit analyst Juliano Gallo.
     
The improvement in the company's financial risk profile mirrors
the increasing volume demand for the water and sewer services
during the past few quarters, combined with its capacity to
implement annual tariff adjustments that historically have been
above the inflation index.
      
"We also recognize SABESP's efforts to manage its operating
costs, which resulted in important savings and improvements in
its EBITDA margin," said Mr. Gallo.
     
The stable outlook reflects Standard & Poor's expectations that
SABESP will continue practicing good governance and be allowed
to keep tariffs at levels that can sustain its improved
financial performance, which in turn supports the company's good
access to capital markets and multilateral banks--a crucial
factor in the company's investment program.
     

COMPANHIA VALE: Approves Buy-Back Program of Preferred Shares
-------------------------------------------------------------
Companhia Vale do Rio Doce approved on June 21 a buy-back
program of its preferred shares.  

The program will involve the acquisition of up to 47,986,763
preferred shares, corresponding to 5% of its preferred shares
and will be executed over the next 180 days.

As required by the capital markets laws and regulations of
Brazil and USA, the buy-back will be performed through these
financial institutions:

   -- Agora-Senior CTVM S.A.,
   -- Bradesco S.A. CTVM,
   -- Fator S.A. CV,
   -- Hedging-Griffo CV S.A.,
   -- Itau CV, and  
   -- Magliano S.A. CCVM.

The strong commitment to capital allocation discipline and
confidence in the company's outlook, as well as its capacity to
continue to create shareholder value, led to the decision to
launch the buy-back program.

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'.


NOSSA CAIXA: Closes Distribution Deal With Visa Vale
----------------------------------------------------
Banco Nossa Caixa said in a statement that it has concluded a
distribution deal with Visa Vale, a food voucher provider in Sao
Paulo.

Business News Americas relates that during the first stage of
the agreement, Nossa Caixa will distribute Visa Vale voucher
cards to its 13,000 personnel.

Nossa Caixa plans to offer later this year the Visa Vale cards
through the bank's 511 branches, BNamericas reports.

                        *    *    *

On Oct. 19, 2005, Moody's Investors Service upgraded Banco Nossa
Caixa S.A.'s long-term foreign currency deposit rating to B1
from B2 with a positive outlook.

At the same time, the ratings agency upgraded Banco Nossa
Caixa's long-term foreign currency debt rating to Ba1 with a
stable outlook.

The action followed Moody's upgrade of Brazil's foreign currency
ceiling for deposits to B1, from B2, and the foreign currency
country ceiling for bonds and notes to Ba3, from B1. Moody's
said the country ceilings have a positive outlook.


PARMALAT BRASIL: Creditors Approve Sale to LatAm Equity Partners
----------------------------------------------------------------
Parmalat Brasil Industria de Alimentos SA's creditors agreed on
May 26, 2006, to sell the business to Latin American Equity
Partners, Reuters reports.

The transaction will allow the unit to emerge from bankruptcy
protection.

As part of the agreement, 51% of Parmalat Brasil's Batavia unit
will be sold to Perdigao SA.

LatAm is a Brazilian investment fund.  Perdigao is a producer
and distributor of meat and poultry products.

The creditors agree to give LatAm control of Parmalat Brasil in
exchange for its BRL20,000,000 -- US$8,850,000 -- investment.

Perdigao paid BRL101,000,000 for the Batavia stake.

According to Reuters, the creditors agreed to write off 85% of
Parmalat Brasil's liabilities estimated at BRL970,000,000.  The
new owners will pay the remaining debt at closing.

LatAm Managing Partner Marcus Elias told Reuters in an interview
that the investment fund plans to license the Parmalat brand
name from Parmalat Brasil's parent, which will no longer have a
stake in the unit after the sale.

                    Perdigao's Statement

Pursuant to CVM Instruction 358 of January 3, 2002, Perdigao
S.A. (NYSE: PDA) announced that PDA Distribuidora de Alimentos
Ltda., a corporation indirectly controlled by Perdigao S.A., has
acquired 51% of the capital stock of Batavia S/A Industria de
Alimentos, subject to the effective transfer of shares.

PDA, Batavia, Cooperativa Central de Laticinios do Parana
Ltda., Cooperativa Central Agromilk ("CCA" and, jointly
with CCLPL, the "Cooperatives") and Parmalat Brasil S.A.
Industria de Alimentos have concluded a series of transactions
under which:

     1. PDA has acquired from Parmalat at a price of
        BRL101,000,000, 73,542,000 common shares issued by
        Batavia and held by Parmalat and the totality of the
        equipment that up to the present time has been leased
        free of charge by Parmalat to Batavia;

     2. PDA has acquired from the Cooperatives at a total price
        of BRL8,700,000, 5,000,000 common nominative shares
        issued by Batavia and held by said Cooperatives; and

     3. The implementation and conclusion of the operations are
        subject to compliance with the suspensive conditions in
        the documents relative to the transactions.

                       About Parmalat

Headquartered in Wallington, New Jersey, Parmalat USA
Corporation -- http://www.parmalatusa.com/-- generates more  
than 7 billion euros in annual revenue.  The Parmalat Group's
40-some brand product line includes milk, yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices and employs over 36,000
workers in 139 plants located in 31 countries on six continents.  
The Company filed for chapter 11 protection on February 24, 2004
(Bankr. S.D.N.Y. Case No. 04-11139).  Gary Holtzer, Esq., and
Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP,
represent the Debtors.  When the U.S. Debtors filed for
bankruptcy protection, they reported more than US$200 million in
assets and debts.  The U.S. Debtors emerged from bankruptcy on
April 13, 2005.


PETROLEO BRASILEIRO: To Develop Frade Oil Field With Partners
-------------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras, along with partners
Chevron Corporation, through its affiliate Chevron Frade Limited
Liability Company and Frade Japao Petroleo Limitada, a joint
vehicle company of INPEX, Sojitz and JOGMEC, disclosed their
commitment to develop the offshore Frade oil field in Brazil.
    
The Frade Field is Chevron's first oil field development project
in Brazil.  It is expected to begin production in late 2008 or
early 2009, with production capacity of approximately 100,000
barrels of crude oil per day and estimated peak annual
production of 85,000 oil-equivalent barrels per day.  The Frade
Field contains an estimated 200 million to 300 million barrels
of recoverable oil and is located in the Campos Basin in a water
depth of 3,500 feet, approximately 75 miles offshore the state
of Rio de Janeiro.
    
"This commitment marks the first major upstream development for
Chevron in Brazil and is aligned not only with Chevron's
upstream growth strategies for the region but will bring
significant new crude oil supplies to the world market," said
John Watson, president, Chevron International Exploration and
Production.
    
Chevron, as operator, together with partners Petrobras and FJPL
recently signed contracts for construction and installation of
the major facilities components for development of the Frade
Field.  The entire project represents an estimated financial
commitment of approximately US$2.4 billion.
    
Ali Moshiri, president, Chevron Latin American Upstream, said,
"The Frade Project will establish the foundation for growing
Chevron's upstream business in Brazil.  Our teams will now focus
on the safe and timely execution of the project."
    
The development concept consists of horizontal production wells
along with vertical water injection wells to maintain reservoir
pressure.  The wells will be individually tied back to a
floating production storage and offloading vessel.  Crude oil
export will be by tanker, while natural gas will be transported
through the local natural gas pipeline infrastructure.
    
Chevron, through its affiliate Chevron Brasil Limitada, is the
operator of the Frade Field and holds a 51.74% working interest.  
Other partners in the project include Petrobras, with 30%; and
Frade Japao Petroleo Limitada, 18.26%.

                  About Chevron Corporation

Headqurtered in San Ramon, Calif, Chevron Corp. --
http://www.chevron.com/-- with more than 53,000 employees,  
conducts business in approximately 180 countries around the
world, producing and transporting crude oil and natural gas, and
refining, marketing, and distributing fuels and other energy
products.  

                  About Petroleo Brasileiro

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

                        *    *    *

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

                        *    *    *

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

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


SANTANDER BANESPA: Shows Steady Profitability Improvement
---------------------------------------------------------
Banks across Latin America began the year continuing the
business trends seen in 2005.  There are no major changes to
business trends, with consumer lending showing more dynamism,
which is having a positive impact on profit generation.  In
general, Standard & Poor's Ratings Services expects the trend to
continue since Standard & Poor's see great potential for
business development in the region.

In first-quarter 2006, Santander Banespa (BB/Stable/B) showed a
consistent improvement on the quality of its profitability
derived from higher income from fees and commission and
improvement on its revenues from its commercial business
(annualized ROA of 1.8% based on march 2006 figures). Helping on
higher revenues from its commercial business is the bank's
ability to increase its lending activities by 32% in the 12
months ended march 2006 (as compared to 20% of the banking
industry) and gaining market share in some of the segments in
which it operates. The higher lending to individuals and small
and midsize companies brought higher margins but also called for
higher provisions charges, with the new loan-loss provisions-to-
revenues ratio up to 11.7% in first-quarter 2006 from 8% in
2005.  Yet, the bank has been adequately managing its asset
quality -- the NPLs-to-total loans ratio reached 5.1% as of
March 2006.


TELE NORTE: Cancels July BRL3 Billion Share Offering
----------------------------------------------------
Tele Norte Leste Participacoes SA aka Telemar, has cancelled its
planned share offering in July due to unfavorable market
conditions, according to financial daily Valor Economico.

Business News Americas relates that the share offering -- around
BRL3 billion -- was part of a planned restructuring.  

According to reports, Telemar said in a filing with Brazilian
securities regulator CVM that with the negative market
conditions, the offering may not be launched before September.

"The US summer vacation period is starting, which is a bad time
to organize a road show or major offering," Alexander Garcia, a
telecoms analyst at Angora Senior CTVM, told BNamericas.

Another reason for the delay is that Telemar is unlikely to get
approval from CVM, local telecoms regulator Anatel and the New
York Stock Exchange in time to launch the offering in July,
BNamericas says, citing Mr. Garcia.

Telemar also needs shareholders' approval for share offerings as
it has ADRs traded in New York.  A meeting is scheduled in July,
BNamericas states.

                        *    *    *

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.


UNIAO DE BANCOS: Loans Lower 2% in First Quarter
------------------------------------------------
Banks across Latin America began the year continuing the
business trends seen in 2005.  There are no major changes to
business trends, with consumer lending showing more dynamism,
which is having a positive impact on profit generation.  In
general, Standard & Poor's Ratings Services expects the trend to
continue since Standard & Poor's see great potential for
business development in the region.

Unibanco-Uniao de Bancos Brasileiros S.A. (BB/Stable/B) achieved
adequate profitability levels in first-quarter 2006 (annualized
ROAA of 2.2%).  After the 25% growth in its loan portfolio
during fiscal 2005, Unibanco adopted a more prudent approach
toward the speed of loan growth.  Total loans had a slight
reduction (2%) in the first quarter.  Asset quality stayed under
control during the period, with the ratio of NPLs to total loans
at 4.6%.  Unibanco increased its loan-loss provisions to 120% of
NPLs (from 112% in December 2005).




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


AI FIRST: Sets July 26 Deadline for Filing Proofs of Claim
----------------------------------------------------------
AI First Financing Company's creditors are required to submit
proofs of claim by July 26, 2006, to the company's liquidator:

       David S. Walker
       Caledonian Bank & Trust Limited
       Caledonian House, 69 Dr. Roy's Drive
       P.O. Box 1043, George Town
       Grand Cayman, Cayman Islands

Creditors who are not able to comply with the July 26 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

AI First's shareholders agreed on May 23, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

       Darina Fennell
       Caledonian Bank & Trust Limited
       Caledonian House, 69 Dr. Roy's Drive
       P.O. Box 1043, George Town
       Grand Cayman, Cayman Islands
       Tel: (345) 914-4966
       Fax: (345) 814-4859


AI SECOND: Last Day to File Proofs of Claim Is on July 26  
---------------------------------------------------------
AI Second Financing Company's creditors are required to submit
proofs of claim by July 26, 2006, to the company's liquidator:

       David S. Walker
       Caledonian Bank & Trust Limited
       Caledonian House, 69 Dr. Roy's Drive
       P.O. Box 1043, George Town
       Grand Cayman, Cayman Islands

Creditors who are not able to comply with the July 26 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

AI Second's shareholders agreed on May 23, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

       Darina Fennell
       Caledonian Bank & Trust Limited
       Caledonian House, 69 Dr. Roy's Drive
       P.O. Box 1043, George Town
       Grand Cayman, Cayman Islands
       Tel: (345) 914-4966
       Fax: (345) 814-4859


AI SECURITY: Creditors Have Until July 26 to File Claims
--------------------------------------------------------
AI Security Company's creditors are required to submit proofs of
claim by July 26, 2006, to the company's liquidator:

       Ali Mudeen
       Caledonian Bank & Trust Limited
       Caledonian House, 69 Dr. Roy's Drive
       P.O. Box 1043, George Town
       Grand Cayman, Cayman Islands

Creditors who are not able to comply with the July 26 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

AI Security's shareholders agreed on May 23, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

       Darina Fennell
       Caledonian Bank & Trust Limited
       Caledonian House, 69 Dr. Roy's Drive
       P.O. Box 1043, George Town
       Grand Cayman, Cayman Islands
       Tel: (345) 914-4966
       Fax: (345) 814-4859


CHEYNE CREDIT: Schedules Last Shareholders Meeting on July 20
-------------------------------------------------------------
Cheyne Credit Defender Fund Inc.'s shareholders will convene on
July 20, 2006, for a final general meeting at 10:00 a.m., at:

       Close Brothers (Cayman) Limited
       4th Floor Harbour Place, George Town
       Grand Cayman, Cayman Islands

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

A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.

The liquidators can be reached at:

       Linburgh Martin
       John Sutlic
       Attn: Thiry Gordon
       Close Brothers (Cayman) Limited
       Fourth Floor, Harbour Place
       P.O. Box 1034, George Town
       Grand Cayman, Cayman Islands
       Tel: (345) 949-8455
       Fax: (345) 949-8499


COSTINHA SA: Last Shareholders Meeting Is Set for July 19
---------------------------------------------------------
Costinha S.A.'s shareholders will convene for a final meeting on
July 19, 2006, at:

       4th Floor FirstCaribbean House
       Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

       Condor Nominees Limited
       c/o Barclays Private Bank & Trust (Cayman) Limited
       4th Floor FirstCaribbean House
       25 Main Street, George Town
       Grand Cayman, Cayman Islands


CUMULUS OFFSHORE: Holds Last Shareholders Meeting on July 14
------------------------------------------------------------
Cumulus Offshore Partners, Ltd.'s shareholders will gather on
July 14, 2006, for a final general meeting at 10:00 a.m., at the
company's registered office.

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

A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.

The liquidators can be reached at:

       John Cullinane
       Derrie Boggess
       c/o Walkers SPV Limited
       Walker House, P.O. Box 908, George Town
       Grand Cayman, Cayman Islands


ENSCO CORONADO: Liquidator Presents Wind Up Accounts on July 17
---------------------------------------------------------------
Ensco Coronado Limited's shareholders will convene for a final
meeting on July 17, 2006, at the company's registered office at:

       ENSCO Offshore International Company
       Dallas, Texas

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

The liquidators can be reached at:

       Herman E. Malone, Jr.
       P.O. Box 309, George Town
       Grand Cayman, Cayman Islands


FARIPSA LIMITED: Schedules Final Shareholders Meeting on July 19
----------------------------------------------------------------
Faripsa Limited's shareholders will gather for a final meeting
on July 19, 2006, at 10:00 a.m., at:

       4th Floor FirstCaribbean House
       Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

       Martin Pollock
       Lana Farrington
       Condor Nominees Limited  
       P.O. Box 487GT, 4th Floor
       FirstCaribbean House
       25 Main Street, George Town
       Grand Cayman, Cayman Islands


HEATON PROPERTIES: Sets Final Shareholders Meeting on July 19
-------------------------------------------------------------
Heaton Properties Limited's shareholders will convene for a
final meeting on July 19, 2006, at 12:00 p.m., at:

       4th Floor FirstCaribbean House
       Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

       Martin Pollock
       Lana Farrington
       Condor Nominee Limited  
       P.O. Box 487GT, 4th Floor
       FirstCaribbean House
       25 Main Street, George Town
       Grand Cayman, Cayman Islands


INVIERNO HOLDINGS: Last Shareholders Meeting Will be on July 19
---------------------------------------------------------------
Invierno Holdings Limited's shareholders will convene for a
final meeting on July 19, 2006, at 11:00 a.m., at:

       4th Floor FirstCaribbean House
       Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

       Martin Pollock
       Lana Farrington
       Condor Nominee Limited  
       P.O. Box 487GT, 4th Floor
       FirstCaribbean House
       25 Main Street, George Town
       Grand Cayman, Cayman Islands


KARDIO COMPANY: Creditors Must File Proofs of Claim by July 26
--------------------------------------------------------------
Kardio Company's creditors are required to submit proofs of
claim by July 26, 2006, to the company's liquidator:

       Bernard McGrath
       Caledonian Bank & Trust Limited
       Caledonian House, 69 Dr. Roy's Drive
       P.O. Box 1043, George Town
       Grand Cayman, Cayman Islands

Creditors who are not able to comply with the July 26 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Kardio Company's shareholders agreed on May 23, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

       Darina Fennell
       Caledonian Bank & Trust Limited
       Caledonian House, 69 Dr. Roy's Drive
       P.O. Box 1043, George Town
       Grand Cayman, Cayman Islands
       Tel: (345) 914-4966
       Fax: (345) 814-4859


MALIPUS LIMITED: Liquidator Presents Wind Up Progress on July 19
----------------------------------------------------------------
Malipus Limited's shareholders will convene for a final meeting
on July 19, 2006, at 9:00 a.m., at:

       4th Floor FirstCaribbean House
       Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

       Martin Pollock
       Lana Farrington
       Condor Nominee Limited  
       P.O. Box 487GT, 4th Floor
       FirstCaribbean House
       25 Main Street, George Town
       Grand Cayman, Cayman Islands


O, W & W HOLDINGS: Final Shareholders Meeting Will Be on July 19
---------------------------------------------------------------
O, W & W Holdings' shareholders will convene for a final meeting
on July 19, 2006, at the company's registered office.

The liquidator will give an account and explanation of the
winding up process during the meeting.  

The liquidator can be reached at:

       Law Yui Lun
       Wong Man Chung Francis
       Attn: Joannah Bodden
       Maples and Calder
       P.O. Box 309, George Town
       Grand Cayman, Cayman Islands


PARALLAX LIQUID: Last Day to File Proofs of Claim Is on July 22
---------------------------------------------------------------
Parallax Liquid Asia Fund, Ltd.'s creditors are required to
submit proofs of claim by June 22, 2006, to the company's
liquidator:

       CFS Liquidators Ltd.
       Windward 1, Regatta Office Park
       West Bay Road, P.O. Box 31106 SMB,
       Grand Cayman, Cayman Islands

Creditors who are not able to comply with the July 22 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Parallax Liquid's shareholders agreed on Dec. 5, 2005, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

       M. David Makin
       CFS Liquidators Ltd.
       c/o Windward 1, Regatta Office Park
       West Bay Road, P.O. Box 31106 SMB
       Grand Cayman, Cayman Islands
       Tel: (345) 949 - 3977
       Fax: (345) 949 - 3877


PARMALAT: Grand Cayman Court Appoints Kroll as Liquidator
---------------------------------------------------------  
In a judgment dated May 12, 2006, the Grand Court of Cayman
Islands appointed Gordon I. MacRae and James Cleaver at Kroll
(Cayman) Limited as Joint Official Liquidators of Parmalat
Capital Finance Limited, Dairy Holdings Limited, and Food
Holdings Limited.

The Cayman Court has yet to enter an order regarding the
judgment.

The Official Liquidators expect Parmalat Finanziaria SpA and its
affiliates and subsidiaries to file a notice of appeal from the
Grand Court Order.

Messrs. Cleaver and MacRae are former partners of Ernst & Young
Restructuring Ltd., before the Cayman Islands insolvency and
advisory arm of Ernst & Young was acquired by Kroll Cayman, an
affiliate of Kroll, Inc., in 2005.

                      About Parmalat

Headquartered in Wallington, New Jersey, Parmalat USA
Corporation -- http://www.parmalatusa.com/-- generates more  
than 7 billion euros in annual revenue.  The Parmalat Group's
40-some brand product line includes milk, yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices and employs over 36,000
workers in 139 plants located in 31 countries on six continents.  
The Company filed for chapter 11 protection on February 24, 2004
(Bankr. S.D.N.Y. Case No. 04-11139).  Gary Holtzer, Esq., and
Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP,
represent the Debtors.  When the U.S. Debtors filed for
bankruptcy protection, they reported more than US$200 million in
assets and debts.  The U.S. Debtors emerged from bankruptcy on
April 13, 2005.  (Parmalat Bankruptcy News, Issue No. 73;
Bankruptcy Creditors' Service, Inc., 215/945-7000)


RELOJ LIMITED: Final Shareholders Meeting Scheduled for July 19
---------------------------------------------------------------
Reloj Limited's shareholders will gather for a final meeting on
July 19, 2006, at:

       4th Floor FirstCaribbean House
       Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

       Condor Nominees Limited
       c/o Barclays Private Bank & Trust (Cayman) Limited
       4th Floor FirstCaribbean House
       25 Main Street, George Town
       Grand Cayman, Cayman Islands


STANLEY GLOBAL: Sets Final Shareholders Meeting on July 14
----------------------------------------------------------
Stanley Global Resources Market Neutral Fund's shareholders will
convene on July 14, 2006, for a final general meeting at 9:00
a.m., at the company's registered office.

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

A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.

The liquidators can be reached at:

       John Cullinane
       Derrie Boggess
       c/o Walkers SPV Limited
       Walker House, P.O. Box 908, George Town
       Grand Cayman, Cayman Islands


SUBMARINO.COM: Final Shareholders Meeting Is Set for July 17
------------------------------------------------------------
Submarino.com Limited's shareholders will gather on
July 17, 2006, for a final general meeting at 10:00 a.m., at the
company's registered office.

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

A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.

The liquidator can be reached at:

       David A. K. Walker
       Attention: Jodi Smith
       P.O. Box 219, George Town
       Grand Cayman, Cayman Islands
       Tel: (345) 914-8694
       Fax: (345) 949-4590


SUMARA PORTFOLIO: Sets July 20 for Final Shareholders Meeting
-------------------------------------------------------------
Sumara Portfolio Limited's shareholders will convene on
July 20, 2006, for a final general meeting at 10:00 a.m., at:

       Close Brothers (Cayman) Limited
       4th Floor Harbour Place, George Town
       Grand Cayman, Cayman Islands

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

A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.

The liquidators can be reached at:

       Linburgh Martin
       John Sutlic
       Attention: Thiry Gordon
       Close Brothers (Cayman) Limited
       Fourth Floor, Harbour Place
       P.O. Box 1034, George Town
       Grand Cayman, Cayman Islands
       Tel: (345) 949-8455
       Fax: (345) 949-8499


TAKASAGODEN CORP: Final Shareholders Meeting Is Set for July 17
---------------------------------------------------------------
Takasagoden Corp.'s shareholders will gather on July 17, 2006,
for a final general meeting at 10:00 a.m., at:

       HSBC Financial Services (Cayman) Limited
       P.O. Box 1109, George Town
       Grand Cayman, Cayman Islands

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

A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.

The liquidators can be reached at:

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


TROCADERO HOLDINGS: Last Shareholders Meeting Is on July 19
-----------------------------------------------------------
Trocadero Holdings Limited's shareholders will gather for a
final meeting on July 19, 2006, at:

       4th Floor FirstCaribbean House
       Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

       Condor Nominees Limited
       c/o Barclays Private Bank & Trust (Cayman) Limited
       4th Floor FirstCaribbean House
       25 Main Street, George Town
       Grand Cayman, Cayman Islands




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


BANCO DE BOGOTA: Completes Acquisition of 94.99% Megabanco Stake
----------------------------------------------------------------
Banco de Bogota S.A. told financial regulator Superfinanciera
that it has completed its acquisition of a 94.99% stake in
Megabanco.

The Troubled Company Reporter said on March 20, 2006, that Grupo
Aval, through its subsidiary Banco de Bogota, bought
approximately 95% stake in Megabanco from Coopdesarrollo for
COP808 billion.  Grupo Aval, which controls seven banks in
Colombia, would assume about COP733 billion in debts owed to
Fogafin by Coopdesarollo.

The purchase of Megabanco was to be funded with a US$300-million
loan from Citigroup Inc. and the remainder would come from Grupo
Aval's own cash, Luis Carlos Sarmiento, the chief executive of
Grupo Aval told reporters.

Banco de Bogota has set a shareholders meeting for June 29 to
discuss the acquisition, Business News Americas relates.

                        *    *    *

On March 10, 2006, Moody's Investors Service assigned a 'Ba3'
long-term foreign currency deposit rating on Banco de Bogota and
changed the outlook to stable from negative.  Moody's also
assigned a 'D+' bank financial strength rating on the company,
while the outlook remained stable.


BBVA COLOMBIA: Posts COP121 Billion Profit in Five Months
---------------------------------------------------------
BBVA Colombia reported COP121 billion in profits for the
January-May period, Business News Americas reports.

According to BNamericas, the amount was 92.5% higher than the
one recorded in the same period last year.

BBVA Colombia said in a press release that its lending increased
73.4% to COP7.67 trillion by the end of May, compared to the
same month in 2005.

                        *    *    *

As reported in the Troubled Company Reporter on March 13, 2006,
Moody's Investors Service assigned a 'Ba3' long-term foreign
currency deposit rating on BBVA Colombia.  Moody's changed the
outlook to stable from negative.

                        *    *    *

As reported in the Troubled Company Reporter on June 9, 2006,
Fitch Ratings revised the Outlook on the long-term foreign
currency issuer default rating of BBVA Colombia to Positive from
Stable, after taking the same action on the sovereign foreign
currency IDR.  All other ratings remain unchanged as:

   -- Foreign currency long-term IDR: 'BB' with Outlook revised
      to Positive;

   -- Foreign currency short-term IDR: 'B';

   -- Local currency long-term IDR: 'BB+' with Stable Outlook;

   -- Local currency short-term IDR: 'B';

   -- Individual 'C/D' on Rating Watch Negative; and

   -- Support: '3'.


MEGABANCO: Banco de Bogota Completes 94.99% Stake Acquisition
-------------------------------------------------------------
Banco de Bogota S.A. told financial regulator Superfinanciera
that it has completed its acquisition of a 94.99% stake in
Megabanco.

The Troubled Company Reporter said on March 20, 2006, that Grupo
Aval, through its subsidiary Banco de Bogota, bought a 95% stake
in Megabanco from Coopdesarrollo for COP808 billion.  Grupo
Aval, which controls seven banks in Colombia, would assume about
COP733 billion in debts owed to Fogafin by Coopdesarollo.

The purchase of Megabanco was to be funded with a US$300-million
loan from Citigroup Inc. and the remainder would come from Grupo
Aval's own cash, Luis Carlos Sarmiento, the chief executive of
Grupo Aval told reporters.

Banco de Bogota has set a shareholders meeting for June 29 to
discuss the acquisition, Business News Americas relates.


* COLOMBIA: IFC Grants COP69-B Credit Guarantee to Interbolsa
-------------------------------------------------------------
The International Finance Corporation, the private sector arm of
the World Bank Group, will provide a partial credit guarantee of
up to COP69 billion to Interbolsa's inaugural bond issue of
COP230 billion.

The proceeds of the bond issue will help Interbolsa reduce its
reliance on commercial bank funding, which is needed on a daily
basis to settle its trading positions.  It will also free up a
significant portion of the company's equity that is currently
used for settlement purposes and redeploy it for underwriting
other products and services, notably private corporate bonds.  

In addition, IFC will sign an agreement to purchase equity
shares in Interbolsa for a total investment of US$10 million,
representing a shareholding of up to 8%.  The equity investment
will also give IFC the right to have a seat on the company's
board of directors.

This operation is part of a broader IFC and World Bank program
to help broaden and deepen Colombia's domestic securities
markets, enabling them to make a greater contribution to the
country's growing needs for housing, infrastructure, and general
private sector development.  

Atul Mehta, IFC's Director for Latin America and the Caribbean,
said, "For IFC, the transaction with Interbolsa is in line with
our strategy of broadening the financial markets in Colombia,
revitalizing the private sector, and improving access to finance
through development of capital markets.  The issuance of the
bond by Interbolsa will greatly improve market liquidity and
activity in the domestic government securities markets, which is
critical in enabling a nongovernment bond market to emerge, and
necessary for financing housing, infrastructure, and private-
corporate operations."

Currently, the Colombian government bond market faces several
constraints, including limited funding that comes primarily from
short-term bank debt, and a settlement process that requires
independent dealers and other market participants to maintain
significant liquidity to settle their daily trading positions.  
Interbolsa will be the first securities dealer in Colombia to
issue a bond under new regulations put in place by
Superintendencia Financiera, the country regulatory agency. The
proceeds of this bond will help ensure that Interbolsa can meet
its settlement obligations without having to liquidate its
investment holdings in government bonds, thereby minimizing
market disruptions and providing overall price stability in the
market.  Interbolsa will also be well positioned to capitalize
on its regional network and strength as nearby countries see
growth in their securities markets.

"We are delighted that our relationship with IFC has helped us
be the first securities dealer in Colombia to issue a bond under
the new guidelines established by Superfinanciera," added
Rodrigo Jaramillo, CEO of Interbolsa.  "We are starting on a
long road toward growth, both domestically and in the region,
and with IFC by our side, as guarantors of the bond and more
importantly as shareholders, we are confident that we can
achieve our objectives and remain a dominant market player for
years to come."

IFC's total portfolio in Colombia was US$280 million as of June
2005.  Since 1956, when Colombia joined IFC, the Corporation has
provided US$1.4 billion, including syndications, for 58
companies in the country.  The financial sector is one of IFC's
priorities in Colombia, with special emphasis on supporting
housing finance and microfinance, as well as strengthening local
capital markets and improving corporate governance.  IFC's
strategy includes also increasing support to sectors that are
strategic for economic growth in the context of free trade
agreements, such as infrastructure projects, port expansions,
road and airport concessions, and support to companies in the
logistics services sector.

                      About Interbolsa

Interbolsa was established in 1990 in Medellin, as a member of
the stock exchange.  It was as Comisionista de Bolsa, Colombia's
first independent brokerage company, specializing in fixed
income and equities trading.  By 2000, the company rose to the
top rank of market traders and received authorization from
regulatory authorities to be the country's first independent
participant in the "market maker" program.   Since then, the
company has become a strong regional player, expanded its
product offering, and, through significant investment in
information technology, has become one of the leading full
service brokerage companies in Colombia today, with wide
national coverage.  Interbolsa is currently the second market
maker in government bonds, after Bancolombia S.A, with a market
share of approximately 30 percent as of end-2005.  It has a
short term counterparty risk rating of AA with a positive
outlook from BCR, a local ratings agency.

                        *    *    *

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'.




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


* COSTA RICA: Union Leaders Support Trade with European Union
-------------------------------------------------------------
Trade union leaders in Costa Rica told Prensa Latina that they
will support the Association Treaty with the European Union for
a Free Trade Agreement or FTA, Prensa Latina reports.

As reported in the Troubled Company Reporter on May 17, 2006,
Costa Rican politicians and businessmen said that joining the
European Union-Central America trade deal would help the country
boost its economy.  The European Union and the Central American
senior officials agreed during the EU-Latin American Summit held
in Vienna, Austria, to begin talks on the possibility of a free
trade pact between the regions.  Antonio Burges, who heads the
Costa Rica Chamber of Commerce, said that the agreement would
cover trade as well as aid, environment and issues related to
laborers.

However, the trade union leaders said they would not accept any
similarity with the agreements sponsored by the United States,
Prensa Latina relates.

As reported in the Troubled Company Reporter on June 5, 2006,
the unions planned to hold a strike against Costa Rica's free
trade agreement with the US, saying that the accord would affect
their work rights.  Albino Vargas, the secretary of the
Association of Public Employees, criticized the Constitutional
Court's turning down various clauses that would grant benefits
to public sector officials, saying that the court was violating
the Constitution to adjust to the free trade pact.

Edgar Morales, a member of the National Association of Public
Servants, recalled how social democracy was given away during
the negotiations with the US, Prensa Latina states.

"They gave away our entire patrimony, reflected in natural
resources and in biodiversity," Jorge Arguedas -- the
coordinator of the Internal Front of Workers of the Costa Rican
Electricity Institute or ICE -- told Pernsa Latina.

Agreements that risk Costa Rican democracy and sovereignty will
be rejected, Prensa Latina states, citing Mr. Morales.

                        *    *    *

Costa Rica is rated by Moody's:

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

Fitch assigned these ratings to Costa Rica:

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

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

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




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


* CUBA: Mango Producers Meet With Dominican Counterpart
-------------------------------------------------------
Cuban mango producers met with their counterparts from the
Dominican Republic in Santiago de Cuba for a discussion of ideas
and strategies on marketing the crop, Prensa Latina reports.

According to Prensa Latina, both parties studied the need for
the sustainable production of mango in the Caribbean with
traditional methods of organic agriculture and the use of
regional land suitable for the crop.

The Agriculture Ministry discussed the potential of Cuba's
southeastern zone to have bigger harvests, Prensa Latina
relates.

                        *    *    *

Moody's assigned these ratings on Cuba:

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


* CUBA: Aims Higher Ethanol Output
----------------------------------
A leading sugar expert told the Associated Press that Cuba is
making investments in its ethanol plants to raise the production
of the renewable fuel.

According to AP, the sugar expert said that the country foresees
a growth in ethanol demand as petroleum prices increase.

Cuba hopes to achieve a yearly production of 500 million liters
of ethanol by 2010, about five times higher than the current
production, AP reports, citing Luis Galvez, a member of the
Cuban Research Institute for Sugar Cane Derivatives.

Without giving any figure on the current ethanol production, Mr.
Galvez told AP that Cuba had about 17 distilleries capable of
producing up to 180 million liters every year.  Cuba must
upgrade 11 of the refineries and construct seven new ones to
increase the production.

Cuba gets most of its petroleum on favorable terms from
Venezuela.  It could benefit by producing ethanol for its own
use, Peter Baron, president of the London-based International
Sugar Organization, told the 200 representatives from a dozen
countries at an international congress on sugar and its
derivatives.

Cuba has been searching for alternative uses for sugar.  The
crop has become less important for the country's economy and
harvests decreased radically.  Cuba's sugar harvest from 2004 to
2005 was 1.5 million metric tons, a lot lower than in recent
years, AP relates.

                        *    *    *

Moody's assigned these ratings on Cuba:

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




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


* DOMINICAN REPUBLIC: Expenditures Exceed Revenues
--------------------------------------------------
Figures from the Dominican Republic's National Planning Office
show that the government overspent in the first part of 2006,
the DR1 Newsletter reports.

The Dominican government has a commitment with the International
Monetary Fund to end 2006 with a zero deficit regarding revenues
and expenditures, Diario Libre relates.

As reported in the Troubled Company Reporter on June 22, 2006,
the Dominican government's authorities agreed on June 19 to
launch an austerity program that would prohibit institutions
from raising their debts with banks and suppliers.  The
government encouraged planning of expenditures among
institutions according to their most basic needs to ensure that
by the end of June, the non-financial public sector would end up
with a DOP332 million surplus.

However, Diario Libre states that while the government had
revenues of DOP57.24 billion from January to April, it spent
about DOP61.6 billion.

According to DR1, the revenues include a windfall of around DOP3
billion that would have been used to compensate for duty free
imports if the Dominican Republic-Central America-United States
Free Trade Agreement had been implemented as planned.

                        *    *    *

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: Producers Discuss Mango Marketing in Cuba
---------------------------------------------------------------
Mango producers from the Dominican Republic met with their Cuban
counterparts in Santiago de Cuba for a discussion of ideas and
strategies on marketing the crop, Prensa Latina reports.

According to Prensa Latina, both parties studied the need for
the sustainable production of mango in the Caribbean with
traditional methods of organic agriculture and the use of
regional land suitable for the crop.

The Agriculture Ministry discussed on the potential of Cuba's
southeastern zone to have bigger harvests, Prensa Latina
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: Picks Brazilian Firm to Build US$225MM Dam
----------------------------------------------------------------
The government of the Dominican Republic has awarded a contract
to Brazil's Norberto Odebrecht to build a US$225 million
hydroelectric dam, the DR1 Newsletter reports.

DR1 relates that no tender was carried out for the contract.  
The government has taken on a loan from the France's BNP Paribas
and Brazil's export development bank, Bandes.

El Caribe says that the construction will take 48 months.

The hydroelectric dam, called the Palomino Dam, will use waters
from the Yaque del Sur and Blanco rivers in San Juan de la
Maguana, DR1 states.

                        *    *    *

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: Banana Exporters Want Accord with China
--------------------------------------------------
The Ecuadorian Association of Banana Exporters requested the
country's foreign trade ministry and the government to work on
reaching an accord with China regarding banana exports, Fresh
Plaza reports.

According to Fresh Plaza, the association aims to increase
banana exports to the Asian country.

Fresh Plaza relates that until two years ago, Ecuador supplied
around 6 million boxes of banana yearly to China.  However, due
to the development of the Philippines as a supplier of the
product to China, sales decreased to 300,000 boxes in 2005.

                        *    *    *

Fitch Ratings assigned these ratings on Ecuador:

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


* ECUADOR: Guayaquil Included in IDB's Issuing Bank Program
-----------------------------------------------------------
The Inter-American Development Bank has included Banco de
Guayaquil from Ecuador as Issuing Bank under its Trade Finance
Facilitation Program or TFFP.  Under the TFFP, the IDB extends
guarantees to cover letters of credit, promissory notes and
other instruments used in the financing of international trade
transactions. This agreement will help support Banco de
Guayaquil's expansion in trade finance activities by having
access to a broader number of International Confirming Banks
participating in the program.

Launched in 2005, the TFFP constitutes an effective tool for the
IDB to support economic reactivation and growth through the
expansion of international trade financing available to Latin
American and Caribbean companies.  The TFFP currently comprises
a network of over 60 Confirming Banks from 30 different
international banking groups, and 12 Issuing Banks in seven
Latin American countries with more than US$290 million in
approved credit lines.

To date, the IDB has issued guarantees for over US$36 million in
support of approximately 60 individual international trade
transactions totaling approximately US$55 million.  The IDB's
partnership with Banco de Guayaquil under the TFFP will be
instrumental to support the expansion of intra-regional trade
flows between Ecuador and other Latin American countries.

                     About Banco Guayaquil

Banco de Guayaquil - http://www.bancoguayaquil.com/ -- is the  
second largest bank in Ecuador with approximately US$1.54
billion in assets.  Through its 135 branches and 377 ATMs, the
bank services a broad nationwide customer base in both corporate
and consumer lending.  The TFFP is expected to play a
significant role in assisting Banco de Guayaquil to broaden its
international funding base among existing and new international
correspondent banks.  

                        *    *    *

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: Asks Spain to Fund Railway Rehabilitation Study
--------------------------------------------------------------
An official from Cepa, El Salvador's port authority, told
Business News Americas that it is seeking Spain's financial aid
for a feasibility study on rehabilitation works for the
country's railway cargo system.

According to Business News Americas, the official said that some
rail experts claim that only a transnational cargo system
linking the country to Honduras and Guatemala would be
profitable.  The railway system would boost commercial trade
between El Salvador and neighboring nations.  It could also
become a logistics corridor to connect ports on the Pacific
coast with the ones on the Atlantic coast.

The feasibility study is necessary to determine the
specifications for the proposed rail system, BNamericas states,
citing the official.

Cepa has contacted the Spanish government to request the funding
through its embassy in San Salvador, the official told
BNamericas.  El Salvador's authorities expect the Spanish
government to respond in July.

The official said that Fenadesal, the national railway of El
Salvador belonging to Cepa, has estimated that the
rehabilitation would cost SVC600 million, BNamericas 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: May Ink Free Trade Pact with Taiwan in October
-------------------------------------------------------------
The signing of a Free Trade Agreement or FTA between El Salvador
and Taiwan could occur in October if talks are completed
smoothly, Ko Jai-son, Taiwan's director-general of the Ministry
of Foreign Affairs' Department of Central and South American
Affairs, told Taiwan News.

El Salvador's President Elias Antonio Saca will be visiting
Taiwan in October, Taiwan News states, citing Mr. Jai-son.

According to Taiwan News, Mr. Jai-son said that Chen Ruey-long,
Taiwan's Minister of Economic Affairs, and other representatives
met with authorities in El Salvador in May for the first round
of FTA talks.

The second round of negotiations will start in July, Mr. Jai-son
told Taiwan News.

As reported in the Troubled Company Reporter on May 31, 2006,
Taiwan has been actively seeking for FTAs with its diplomatic
allies after the United States-Central America Free Trade
Agreement aka CAFTA was implemented this year.  Officials said
that Taiwan is aiming to help Taiwanese manufacturers tap
markets in North, Central and South America by making the most
of the FTA mechanism.  

                        *    *    *

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




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


* GUATEMALA: IDB Loans US$100MM for Financial Management Reform
---------------------------------------------------------------
The Inter-American Development Bank approved a US$100-million
loan to Guatemala for reforms aimed at improving the efficiency
and transparency of public sector financial management,
government expenditures and tax collection.

The program will support actions and investments carried out or
planned by the Guatemalan government to maintain fiscal
discipline and strengthen the management of natural disaster
risks, state procurement and accountability and transparency in
the administration of public resources.

Regarding public sector revenues, the program will support steps
to increase the efficiency of the Guatemalan revenue agency,
raise the productivity of value added tax collection, modernize
customs management and promote transparency and civil society
audits of the agency.

In order to foster competition in government procurement and
greater efficiency in such expenditures, the program will
support actions to deepen the Guatecompras system.  Its coverage
will be expanded in the central government, decentralized
agencies and municipalities and an e-procurement system for
minor purchases will be developed.

The program will also support results-based management through
measures to increase the availability of reliable and timely
information on budget execution to improve accountability to the
public, expenditure planning and fine tuning programs to reach
their development targets.

The program complements other state modernization projects
financed in Guatemala by the World Bank and the Central American
Bank for Economic Integration, as well as by the aid agencies of
Japan, the Netherlands, Spain and the United States.

The loan is for 20 years, with a five-year grace period and a
variable interest rate.  Interest costs will be partially
covered with resources from the IDB Intermediate Financing
Facility.  The loan will be disbursed in a single tranche.

This program may be followed by another policy-based loan for
US$100 million, which could be presented to the IDB Board of
Executive Directors in 2007.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

                        *    *    *

Fitch also rated Guatemala's senior unsecured bonds:

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




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


* HONDURAS: IDB Grants US$30-M Loan for Public Management Reform
----------------------------------------------------------------
The Inter-American Development Bank approved a US$30-million
loan to Honduras to support a gradual reform of public sector
management, promoting a more effective and efficient use of
government resources.

The Honduran government's measures seek to:

   -- establish an institutional framework of results-based
      management,

   -- improve the efficiency of public financial management,

   -- boost tax collection,

   -- increase transparency in government procurement and

   -- strengthen macroeconomic stability.

The national tax agency will be modernized, starting with its
organizational structure.  Career paths will be established for
its staff, information systems will be updated and efficient
rules and procedures will be developed for managing customs and
adapting them to Honduras' trade commitments.

The program will also support the reorganization of the Finance
Ministry to simplify its internal procedures, eliminate
overlapping functions, avoid the duplication of efforts and
speed up work.

These measures are expected to help the Honduran government
acquire appropriate instruments and relevant information for
crafting policies with realistic development goals and that
respond to the needs and priorities of its citizens.  They will
also improve the allocation and use of public resources made
available due to debt relief.

The program reflects a continued support for Honduras' efforts
to improve its public financial management.  In recent years the
IDB approved loans to support fiscal management reforms and
transparency in government procurement.  These programs, which
were backed by other donors as well, are part of a sector
approach shared with the World Bank.

The new loan is for 40 years, with a 10-year grace period.  The
annual interest rate will be 1 percent during the first decade
and 2% later. Disbursements will be made in two US$15 million
tranches.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

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




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


KAISER ALUMINUM: Expects to Exit Chapter 11 Protection on July 6
----------------------------------------------------------------
Kaiser Aluminum Corporation (OTCBB: KLUCQ) expects its second
amended plan of reorganization to become effective on or about
July 6, 2006, whereupon it will emerge from Chapter 11
protection.

In accordance with the POR, the Company fixed the "Distribution
Record Date" under the POR as the close of business on June 28,
2006.  Pursuant to the POR, the company will have no obligation
to recognize the transfer of, or the sale of any participation
in, any allowed claim that occurs after the Distribution Record
Date and will be entitled for all purposes of the POR to
recognize and make distributions under the POR only to those
holders of allowed claims that are holders of such claims, or
participants therein, as of the Distribution Record Date.

In addition, the POR provides that, as of the Distribution
Record Date, each transfer register for the public notes and
bonds giving rise to claims under the POR will be closed and
that neither the company nor the applicable indenture trustee
will have any obligation to recognize the transfer or sale of
any public note claim that occurs after the Distribution Record
Date and each of them will be entitled for all purposes of the
POR to recognize and make distributions under the POR only to
those holders of public note claims who are holders of such
claims as of the Distribution Record Date.

The company, its subsidiary Kaiser Aluminum & Chemical
Corporation and certain of their affiliates filed petitions for
relief under Chapter 11 in the first quarter of 2002, and
additional affiliates of the company and Kaiser Aluminum &
Chemical Corporation filed petitions for relief under Chapter 11
in the first quarter of 2003.  On Feb. 6, 2006, the U.S.
Bankruptcy Court for the District of Delaware confirmed the POR,
which is a joint plan of reorganization of all the Kaiser
Aluminum companies currently operating under Chapter 11
protection, and on May 11, 2006, the U.S. District Court for the
District of Delaware affirmed that confirmation.

                   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 Feb. 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. Lazard
Freres & Co. serves as the Debtors' financial advisor.  Lisa G.
Beckerman, Esq., H. Rey Stroube, III, Esq., and Henry J. Kaim,
Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, and William P.
Bowden, Esq., at Ashby & Geddes represent the Debtors' Official
Committee of Unsecured Creditors.  On June 30, 2004, the Debtors
listed US$1.619 billion in assets and US$3.396 billion in debts.


NATIONAL WATER: Workers Hold Strike Due to Failed Wage Talks
------------------------------------------------------------
Workers of the National Water Commission of Jamaica started
holding demonstrations outside the firm's Marescaux Road plant
in Kingston after a negotiation for wage increase between the
company's management and the unions failed, the Jamaica Observer
reports.

The Observer relates that the protest disrupted normal
operations at Marescaux, holding up traffic and forcing clients
to leave or park their vehicles on the roadside to enter the
premises on foot.

The National Water released a statement saying that it could not
guarantee full normality in all its operations.  It asked the
Ministry of Labor's intervention.

According to The Observer, the National Water's executives met
early on Tuesday with representatives from:

   -- Bustamante Industrial Trade Union or BITU,
   -- National Workers Union or NWU,
   -- Jamaica Union of Public Officers and Public Employees, and
   -- Jamaica Association of Local Government Officers.

Reports say that several representatives of the unions were
dissatisfied with the proceedings, and even walked out of the
meeting.

A female worker of the National Water told The Observer, "Our
salaries are way below the market level and it is not fair.  A
salary adjustment should have been done, and then a pay
increase.  But we are not getting neither of the two."

The strike was endorsed by the unions and would continue until a
settlement favorable to the workers is reached, The Observer
says, citing Wesley Nelson, the vice president of BITU.

The Observer says that if the workers remain off their jobs,
water supplies to households in the Corporate Area are likely to
be disrupted.

A conciliatory meeting was scheduled for 10:00 on Wednesday at
the Ministry of Labor's office in Kingston, The Observer
reports.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 7, 2006,
the National Water had been criticized in the past for failing
to act promptly in cutting its losses.  For the fiscal years
2002 and 2003, the water commission accumulated a net loss of
US$2.11 billion.  The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.




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


BALLY TOTAL: Will Join the Russell 3000 Index on June 30
--------------------------------------------------------
Bally Total Fitness Holding Corporation disclosed that it has
been selected to join the Russell 3000r Index when Russell
Investment Group reconstitutes its family of U.S. indexes on
June 30, 2006, according to a preliminary list of additions
posted last Friday on Russell's Web site.

Membership in the Russell 3000, which remains in place for one
year, means automatic inclusion in the large-cap Russell 1000r
Index or small-cap Russell 2000r Index as well as the
appropriate growth and style indices.  Russell determines
membership for its equity indices primarily by objective
measures such as market capitalization rankings and style
attributes.

"Inclusion in the Russell 3000 highlights Bally's unique
position as the leading player in the high-growth fitness,
nutrition and wellness industry in North America," said Paul
Toback, Chairman, President and CEO of Bally Total Fitness.  "We
are pleased to be added to the index."

Russell indexes are widely used by investment managers and
institutional investors for index funds and as benchmarks for
both passive and active investment strategies.  An industry-
leading US$3.8 trillion in assets currently are benchmarked to
them.  Investment managers who oversee these funds purchase
shares of member stocks according to that company's weighting in
the particular index.

Annual reconstitution of Russell indexes captures the 3,000
largest U.S. stocks as of the end of May, ranking them by total
market capitalization to create the Russell 3000.  The largest
1,000 companies in the ranking comprise the Russell 1000 while
the remaining 2,000 companies become the widely used Russell
2000.  These investment tools originated from Russell's multi-
manager investment business in the early 1980s when Russell saw
the need for a more objective, market-driven set of benchmarks
in order to evaluate outside investment managers.

                     About Bally Total

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

                        *    *    *

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


GRUPO IUSACELL: Inks Data Roaming Deal With Sprint Nextel
---------------------------------------------------------
Grupo Iusacell, along with Bell Canada, has signed a contract
for data roaming with Sprint Nextel.

Clients of Sprint now have more international locations to
easily access mobile dates applications due to the new
reciprocal wireless service deals signed with Bell and Iusacell.  
The North Americas data roaming accords are part of an
aggressive international services expansion by Sprint.

Sprint is facilitating data access availability for US clients
north and south of the border by augmenting CDMA voice roaming
accords with a data roaming capability.  Under the reciprocal
agreements, customers will be able to seamlessly access e-mail,
Internet and corporate applications in Canada and Mexico using
select PCS phones, smart devices and mobile broadband cards.  

"Data demand knows no borders. Our new roaming agreements allow
customers of all partners too seamlessly access the applications
they need so they can do more in more places on the extended
Sprint network.  We're meeting mobility and access needs by
increasing our portfolio of international services," said Danny
Bowman, the vice president of product at Sprint.

Data roaming is available in Mexican cities included in the
Iusacell network, particularly in:

  -- Acapulco,
  -- Cabo San Lucas,
  -- Cancun,
  -- Comalcalco,
  -- Cozumel,
  -- Ciudad del Carmen,
  -- Guadalajara,
  -- Leon,
  -- Macuspana,
  -- Matamoros,
  -- Merida,
  -- Mexicali,
  -- Mexico City,
  -- Monterrey,
  -- Nuevo Laredo,
  -- Playa del Carmen,
  -- Puebla,
  -- Puerto Aventuras,
  -- Puerto Morelos,
  -- Queretaro,
  -- Reynosa,
  -- San Jose del Cabo,
  -- San Luis de Rio Colorado,
  -- Tecate,
  -- Tuxtla,
  -- Vera Cruz,
  -- and Villahermosa.

Headquartered in Mexico City, Mexico, Grupo Iusacell, S.A. de
C.V. (Iusacell, BMV: CEL) is a wireless cellular and PCS service
provider in Mexico with a national footprint.  Independent of
the negotiations towards the restructuring of its debt, Iusacell
reinforces its commitment with customers, employees and
suppliers and guarantees the highest quality standards in its
daily operations offering more and better voice communication
and data services through state-of-the-art technology, including
its new 3G network, throughout all of the regions in which it
operate.

As of Dec. 31, 2005, Grupo Iusacell's stockholders' deficit
widened to MXN2,076,000,000 from a deficit of MXN1,187,000,000
at Dec. 31, 2004.


J.L. FRENCH: Delaware Court Confirms Plan of Reorganization
-----------------------------------------------------------
After only 18 weeks under Chapter 11 protection, J.L. French
Automotive Castings, Inc. reported that the U.S. Bankruptcy
Court for the District of Delaware has confirmed the company's
Plan of Reorganization that details how the company will satisfy
creditor claims.  J.L. French anticipates that the company will
emerge from Chapter 11 protection at the end of June.

"I am pleased to communicate that we have successfully completed
our restructuring," stated Jack F. Falcon, chairman, CEO and
president.  "I want to acknowledge the tremendous support of
our major customers, employees, vendors, and creditors as well
as the professionals we engaged to help us reach our goals.

"When we emerge on June 30, J.L. French will have shed
US$465 million in first and second lien senior secured debt and
US$28.9 million in 11.5% senior subordinated unsecured notes.  
We will have acquired US$130 million in new equity investment
and US$255 million in new financing.  In recent months, our
major customers have made new business commitments to us, and we
expect to grow solidly into the future. Our work in Europe and
China is progressing to plan, and the opportunities in these
markets are encouraging.  With a strong balance sheet and
capable production centers, we foresee controlled, steady
growth."

Upon emergence, the participants in the US$130 million rights
offering will hold 92% of the common stock in the newly
reorganized company.  The holders of second lien debt will
receive the remaining 8% of new common stock in satisfaction of
approximately US$170 million of claims.  The approved Plan of
Reorganization also calls for three tranches of warrants to be
made available to certain creditor classes with an exercise
period five years from the Plan's effective date.

The US$130 million of new money investment, along with a new
US$205 million term loan that is part of the exit facility, will
pay off first lien debt of approximately US$295 million, as well
as fund certain costs associated with exiting bankruptcy.  The
newly reorganized company will then have US$231 million in long-
term debt comprised of the term loan and some US$26 million in
other secured debt.  The company's debt leverage will be
approximately 3.5x projected 2006 earnings before certain
deductions, as compared to a pre-reorganization leverage of
approximately 8.5x earnings.

The new US$205 million term facility is structured as US$140
million and US$65 million in first and second lien term loans,
respectively.  The US$255 million exit facility also contains a
US$50 million revolver available to fund working capital needs.

Exit financing is being provided by Goldman Sachs Credit
Partners L.P. and Morgan Stanley Senior Funding, Inc.

                     About J.L. French

Headquartered in Sheboygan, Wisconsin, J.L. French Automotive
Castings, Inc. -- http://www.jlfrench.com/-- is a global  
supplier of die cast aluminum components and assemblies with
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
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.  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.




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


* NICARAGUA: Sets Out Plan With Venezuela for Oil Shipment  
----------------------------------------------------------
The Association of Nicaraguan Municipalities or AMUNIC is making
arrangements with Venezuelan state oil Petroleos de Venezuela
S.A. regarding the latter's crude shipment to Nicaragua, Prensa
Latina reports.

According to Prensa Latina, Dionisio Marenco, Managua's mayor
and the president of AMUNIC, talked of two alternatives:

   -- that gas and diesel be shipped through Costa Rica or
      Honduras, or

   -- that official awareness to access the fuels be increased.

AMUNIC and Petroleos de Venezuela have agreed on the yearly
supply of 10 million barrels of petrol to Nicaragua under
preferential terms, Prensa Latina relates.  However, Nicaragua's
President Enrique Bolanos would not support the initiative.

As reported in the Troubled Company Reporter on June 21, 2006,
the government of Nicaragua prevented Mayor Marenco from
importing Venezuelan gasoline amid a transport crisis.  
President Bolanos had said that oil imports from Venezuela
should be agreed to at state level and not through the office of
Managua's mayor.

The Nicaraguan leader claims that the deal has political
connotations, Prensa Latin states.

                        *    *    *

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


* PARAGUAY: Public Sector Accounts for Most of Copaco Debt
----------------------------------------------------------
Omar Ramos -- the head of Copaco, Paraguay's state-owned fixed
line operator -- told local paper ABC that more than half of the
US$36 million owed to the company in outstanding bills are from
the country's public sector.

Business News Americas relates that the debt was accumulated
between 1999 and 2003.

Debtors include several ministries, the police department, and
many other public sector entities, Mr. Ramos told Business News
Americas.

                        *    *    *

As reported in the Troubled Company Reporter on May 26, 2006,
Moody's Investors Service upgraded these ratings on Paraguay:

   -- Long-term foreign currency rating: B3 from Caa1 with
      stable outlook.

Moody's assigned this rating:

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

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

     -- Foreign Currency LT Debt B-
     -- Local Currency LT Debt   B-
     -- Foreign Currency ST Debt C
     -- Local Currency ST Debt   C




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


BANCO DE CREDITO: ROAA Grew 2.51% in First Quarter of 2006
----------------------------------------------------------
Banks across Latin America began the year continuing the
business trends seen in 2005.  There are no major changes to
business trends, with consumer lending showing more dynamism,
which is having a positive impact on profit generation.  In
general, Standard & Poor's Ratings Services expects the trend to
continue since Standard & Poor's see great potential for
business development in the region.

Despite the partial deceleration experienced by the Peruvian
financial system and increased volatility during the first
months of the year, Banco de Credito del Peru (BB/Positive/B)
continued to present positive results in terms of profitability
and asset quality.  During first-quarter 2006, returns on
average assets -- ROAA -- increased to 2.51% (from 2.40% during
first-quarter 2005) as a result of the increase in the bank's
earning asset base, higher trading gains, and increasing
operating efficiencies, which more than offset higher pressures
on interest margins. With NPLs at 5.0% as of March 31, 2006
(5.4% at December 2005), asset quality also continued to
improve, pointing to the still-benign macroeconomic environment.
Standard & Poor's expects the bank-and the financial system as a
whole-to reflect lower loan portfolio growth rates in line with
the expected slight reduction in the country's economic growth.  
Despite increasing volatility, Standard & Poor's expects the
bank to present above-average profitability based on better
asset mix and improving operating efficiencies.  


* PERU: Study Shows Mobile Use Growth Quicker in Provinces
----------------------------------------------------------
A study from consultancy Grupo Inmark shows that mobile
penetration among small firms in Peru grew faster in the
provinces though most small-to-medium enterprises or SMEs are
concentrated in capital Lima, local paper Gestion relates.

According to Business News Americas, the study arrived at these
results on small firms:

    -- 82% use prepaid mobile lines,
    -- 11% have post-paid plans, and
    -- 7% use plans with a limited number of minutes.

BNamericas states that in relation to the use of the mobile
line, Inmark found that:

     -- 82% of traffic is voice,
     -- 16% of traffic is SMS,
     -- about 55% of calls are on net calls,
     -- 23% of calls are off net,
     -- 22% of calls are fixed lines, and
     -- 10% of the calls made are within the company.

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

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




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


BURGER KING: Fitch Assigns BB Rating on US$1.12 Billion Sr. Debt
----------------------------------------------------------------
Fitch assigns these initial ratings for Burger King Corporation,
the world's second largest fast food hamburger restaurant chain:

   -- Issuer Default Rating: B+; and

   -- US$1.12 billion of remaining guaranteed senior secured
      credit facilities: BB/RR2, it consists of these
      facilities:

      -- US$150 million revolving credit facility maturing
         June 2011; and

      -- US$967 million aggregate remaining term loan A and
         B outstandings maturing June 2011 and June 2012,
         respectively;

The Outlook on all Ratings is Positive.

The ratings incorporate the capital structure and operations of
Burger King pro-forma for parent company Burger King Holdings,
Inc.'s initial public offering, which closed on May 18, 2006.  
Approximately 18.5% of the company's common equity was sold to
the public at an offering price of US$17 per share.  Burger
King's overall market capitalization upon the IPO was thereby
imputed to be US$2.26 billion.  The IPO generated net proceeds
for the benefit of the company approximating US$397 million, of
which US$350 million was applied against existing outstanding
term loans.  The balance of the net proceeds will primarily be
utilized to pay a US$30 million termination fee related to the
existing sponsor management agreement, along with various other
fees and expenses.  The ratings additionally reflect certain
February 2006 transactions that were implemented by Burger King
in advance of the IPO.  The company incurred a new $350 million
term loan and used about US$55 million of cash on hand in
connection with Burger King's February 2006 payment of both a
US$367 million dividend to shareholders and a US$33 million
make-whole payment to holders of options and restricted stock to
compensate for dilution.

The 'B+' IDR rating reflects that Burger King remains a highly
leveraged company within the very competitive quick serve
restaurant industry.  The company's high debt balance and weak
historical free cash flow performance are the result of several
factors, including inattentive management of Burger King's
operations by its former ownership, the incurrence of additional
debt in conjunction with both the company's December 2002 buyout
and its 2006 dividend payment, and significant recent
investments in the global reorganization of Burger King and the
operating turnaround of its franchisee base.  Pro forma for the
IPO and incorporating actual last-twelve-month operating results
through March 31, 2006, post-IPO leverage is currently estimated
as:

   -- 4.0x for total balance sheet debt/EBITDA,
   
   -- 5.2x for total adjusted debt/EBITDAR, including as debt
      8(x) net rent associated with operating leases), and

   -- 5.7x total adjusted debt/EBITDAR, including as debt 8(x)
      gross rent associated with operating leases.

EBITDAR as used here is defined as operating earnings before
interest, tax, depreciation, amortization, and rent expense.  
Net rent expense is equal to Burger King's total rent expense,
net of rental income received from its franchisees.  In
contrast, Burger King's almost 3.0x pro-forma EBIT coverage of
gross interest is a comparatively strong credit metric relative
to the company's peers within the 'B+' IDR rating category. Cash
flow from operations/ total balance sheet debt was satisfactory
at approximately 20.5% for the LTM period, after factoring in
the debt reduction resulting from the IPO.

Burger King's systemwide base of approximately 11,100
restaurants consists of about 11% company-owned stores and 89%
franchised stores. This proportion of franchise units compared
to the total system is the highest of its competitors.  While
this operating structure potentially enables Burger King to
minimize its fixed cost base and its capital expenditures, the
high proportion of non-owned restaurants also presents several
obstacles.  Burger King has limited control over its franchisees
and a restricted ability to facilitate changes in restaurant
ownership when management is dissatisfied with operator
performance.  As has been proven by experience, Burger King's
ability to collect royalties and fees is at substantial risk
when the franchisees are distressed.  Burger King also faces the
expiration of about 20% if its franchise agreements over the
next five years, and cannot predict with assurance the rate at
which these agreements will be either extended or formally
renewed.  The company reported that with regard to the franchise
agreements that expired during the nine months ended March 2006,
45% were renewed, 29% were extended, 4% of the franchisees
continued to operate with no agreement, and 22% of the affected
restaurants were closed.  It is not known to Fitch to what
extent the franchised restaurant closures were attributable to
an inability to negotiate terms, or instead due to the fact that
they were underperforming operations.  Burger King's "Franchise
Financial Restructuring Program", which was initiated in
February 2003 to assist over one-third of the company's
franchisees in the US and Canada, notably appears to be a key
driver behind Burger King's steadily improving results.  While
the up-front costs of implementing the program have initially
been significant, the ongoing benefits are already evident.  
Through fiscal year-end June 30, 2005, Burger King purchased an
aggregate of 170 franchised restaurants, closed 56 franchised
restaurants, and re-franchised 35 of these restaurants in
connection with the FFRP initiative.

Burger King's approximately US$1.1 million average annual
revenues per restaurant currently lag meaningfully behind
McDonald's average of more than US$1.8 million.  Burger King's
current management team is implementing various initiatives to
improve individual store performance, such as standardizing and
improving menu offerings, filling in product gaps, introducing
more health-conscious choices, extending hours of operation,
refurbishing stores, and improving store design prototypes.  
Burger King's most significant growth opportunity centers on
future planned initiatives for growth in international markets,
where Burger King's restaurant base is currently only one-fourth
the size of the McDonald's footprint.

Fitch's Positive Rating Outlook acknowledges the fact that
Burger King's operating metrics have demonstrated steady
improvement over the past few years and there is reason to
expect that the favorable trend will continue, albeit at a more
moderate pace.  Burger King reports that it has achieved eight
consecutive quarters of comparable stores sales growth,
following seven prior consecutive quarters of comparable stores
sales losses.  Franchisees are notably generating a steadily
higher portion of Burger King's overall restaurant-level
operating income, having increased from a negative contribution
during FY2003, to a positive contribution of about 20% during
FY2004, 33% during FY2005, and an estimated at 45% year-to-date
March 2006.  However, Burger King's franchisees may be
challenged to achieve the level of further improvement necessary
before their almost 90% share of systemwide revenues contributes
almost 90% of systemwide operating income.  Burger King's brand
recognition remains strong, and its royalty income stream and
real estate holdings provide additional value.

Fitch also believes that Burger King's access to the capital
markets will be enhanced as a result of the company's IPO and
new requirement to file public financial statements.  The
company has indicated that it plans to launch 200-250 new stores
per year going forward, largely in international markets and
through the use of qualified franchisees. Since expenditures
associated with certain of these efforts are discretionary,
Burger King would have the ability to curtail many of them in
the event that operating conditions change.  Fitch expects that
Burger King's equity sponsorship will be less likely to seek
future returns of capital in the form of dividends and other
distributions, now that there exists a definitive mechanism to
exit their investment through the public sale of stock.

These are examples of future events that could potentially cause
Fitch to lower Burger King's Outlook or ratings:

   -- The occurrence of a material reduction in the systemwide
      base of restaurants;

   -- Significant revenue declines attributed to weakening
      economic conditions or aggressive competitor initiatives;

   -- A declaration by the board of directors of another
      sizeable dividend or similar initiatives to enhance
      investment returns for the equity sponsors; or

   -- The occurrence of a severe incident involving food-borne
      illness or food tampering which results in public
      backlash.

Burger King's senior secured credit agreement was amended and
restated during February 2006.  Obligations under the agreement
are guaranteed by substantially all material domestic
subsidiaries, which account for about 65% of the company's
consolidated revenue base.  Collateral security consists only of
pledges of 100% of the stock of domestic subsidiaries (with
limited exceptions) and 65% of the stock of certain first-tier
foreign subsidiaries.  Financial covenants consist of an
'EBITDA/cash interest coverage ratio', a 'net debt/EBITDA'
leverage ratio, and a capital expenditures limitation.  While
there are no direct loans currently outstanding under the US$150
million revolving credit facility, there are approximately US$42
million of open standby letters of credit in support of various
insurance programs.  Provisions already exist within the credit
agreement permitting an aggregate of US$150 million of
additional term loans, subject to future lender commitments,
pro-forma compliance with covenants, and no evidence of existing
defaults.  A 50% mandatory excess cash flow recapture provision
exists as long as leverage exceeds 3.0x.  While Burger King has
stated in its public filings that the company does not intend to
pay dividends, dividends are permitted under the credit
agreement subject to prescribed formulas and compliance with all
covenants.

The recovery ratings and notching of Burger King's guaranteed
senior secured credit facilities reflect Fitch's recovery
expectations under a distress scenario.  Fitch has used an
enterprise value analysis for these recovery ratings, given the
limited tangible asset base that exists in this company.  The
'RR2' recovery rating assigned for Burger King's fully drawn
senior secured commitment reflects Fitch's expectation that 71%-
to-90% recovery would be achievable.

Pro-forma for the IPO, approximately 76% of Burger King's equity
remains controlled by the group of three private equity sponsors
that acquired the company from Diageo plc during December 2002.  
This sponsor group consists of affiliates of Texas Pacific
Group, Bain Capital Partners, and Goldman Sachs, which
respectively continue to hold about 28%, 24%, and 24% of the
company's equity after factoring in IPO dilution and the
exercise of certain over-allotments.  It is notable that these
equity sponsors have already realized a return of substantially
all their originally invested equity capital and are now poised
to realize a significant positive return.  Fitch believes that
the sponsors will pursue an exit strategy going forward that
focuses on the gradual release of additional common shares for
sale through the open market.


OCA INC: Court Dismisses Motions Enforcing Automatic Stay
---------------------------------------------------------
The Honorable Jerry A. Brown of the U.S. Bankruptcy Court for
the Eastern District of Louisiana dismissed as moot on June 2,
2006:

   -- a motion filed by OCA Outsource, Inc., an affiliate of OCA
      Inc., to enforce automatic stay, and to cite for contempt
      and give sanctions for violations of second order against
      George Marse, D.D.S, and George Marse, D.D.S., P.C.; and

   -- a motion for relief from automatic stay filed by George
      Marse, a creditor.

OCA Outsource made this motion because of Dr. Marse's willful
violation of the automatic stay, and contumacious and willful
violation of the Bankruptcy Court's Second Order [P-46], Warren
Horn, Esq., at Heller Draper Hayden Patrick & Horn, LLC, told
the Court.

The Second Order, dated March 15, 2006, ordered that all
Affiliated Practices (defined in the motion and order) from whom
the Debtors have not received written notice of termination or
default prior to their bankruptcy filing will continue to comply
with the Business Service Agreements.

The Second Order also:

   -- authorized the Debtor to continue to operate under and
      provide services pursuant to BSAs;

   -- authorized the Debtors to pay certain prepetition
      obligations in connection with BSAs; and

   -- directed Affiliated Practices to continue to operate under
      the BSAs, including, without limitation, making timely
      deposits and payments to the Debtors.

Dr. Marse filed a motion for relief from the automatic stay and
objected to the Second Order directing Affiliated Practices to
continue to operate under the BSAs.  The Bankruptcy Court
overruled Dr. Marse's objection at a hearing on April 5, 2006,
and denied Dr. Marse's motion for relief from automatic stay on
April 11, 2006.

Dr. Marse entered into an Outsource Agreement with OCA Outsource
in Jan. 2005.  The agreement is an executory contract and a BSA.  
At the April 5 hearing, Dr. Marse argued that the agreement is
not a BSA and is not governed by the Second Order.  Also at that
hearing, Dr. Marse's counsel was admonished by the Court that if
Dr. Marse refused to comply with the Second Order, he did so "at
his own peril."

Notwithstanding the clear language of the Second Order, Dr.
Marse willfully refused and failed to pay the required payments
due to OCA Outsource under the Outsource Agreement, Mr. Horn
added.

Dr. Marse filed another motion to lift automatic stay relating
to the Outsource Agreement.  The order overruling Dr. Marse
objections entered on April 11, 2006, clearly states that the
Second Order remains in full force and effect until further
order from this Bankruptcy Court.

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

The Debtor and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No.
06-10179).  Three Debtors also filed for bankruptcy protection
on June 1, 2006 (Bankr. E.D. La. Case No. 06-10503).  William H.
Patrick, III, Esq., at Heller Draper Hayden Patrick & Horn, LLC,
represents the Debtors.  Patrick S. Garrity, Esq., and William
E. Steffes, Esq., at Steffes Vingiello & McKenzie LLC represent
the Official Committee of Unsecured Creditors.  Carmen H.
Lonstein, Esq., at Bell Boyd & Lloyd LLC and Robin B. Cheatham,
Esq., at Adams and Reese LLP represent the Official Committee of
Equity Security Holders.  When the Debtors filed for protection
from their creditors, they listed US$545,220,000 in total assets
and US$196,337,000 in total debts.




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


MIRANT CORP: Creditors Committee Objects to Professional Fees
-------------------------------------------------------------
The Official Committee of Unsecured Creditors of Mirant
Corporation, et al., objects to the requests for payment of fees
and reimbursement of expenses of these professionals and the
parties they represent:

    Professional                              Party Represented
    ------------                              -----------------
    Brown Rudnick Berlack Israels LLP and     Equity Committee
    Hohmann, Taube & Summers, L.L.P.

    Cadwalder, Wickersham & Taft LLP, and     MAGi Committee
    Cox Smith Matthews Incorporated

    Peter J. Solomon Company                  Equity Committee

    Houlihan Lokey Howard & Zukin             MAGi Committee

    Blackstone Group L.P.                     Debtors

    The Wilson Law Firm, P.C.                 Frank Smith, Kent
                                              Koerper, Peter
                                              Depavloff, Bart
                                              Engram, Mary
                                              Leight
                                              and L. Matt Wilson

Fredric Sosnick, Esq., at Shearman & Sterling LLP, in New York,
asserts that Brown and Hohmann have been paid more than
US$6,200,000, which adequately compensates them for their
efforts.  In addition, Brown and Hohmann are unable to
demonstrate that they did anything more than "what any competent
counsel would have done under similar circumstances."

Cadwalader and Cox Smith fail to establish exceptional
circumstances to justify a fee enhancement, Mr. Sosnick says.
Even if the Court were to conclude that exceptional
circumstances exist, Cadwalader and Cox Smith fail to
demonstrate that the quality of representation they provided was
"superior to that which one would reasonably expect."

The Mirant Committee disputes the calculation of the proper
transaction fee that should be awarded for Peter J. Solomon.
Instead of US$3,400,000, Mr. Sosnick contends that Peter J.
Solomon is entitled to US$2,120,000 in transaction fees pursuant
to the terms of its engagement letter.

Mr. Sosnick argues that Houlihan Lokey's US$9,800,000
transaction fee is "unreasonably high," and far in excess of
transaction or success fees paid to comparable firms under
similar circumstances.  The Mirant Committee asks the Court to
deny Houlihan's Fee Application and reduce Houlihan's
transaction fee to a reasonable amount.

The Mirant Committee believes that Blackstone's US$7,000,000
transaction fee and US$7,200,000 in other fees is sufficient
compensation for the firm's work in the Debtors' cases.  No
additional compensation should be awarded, Mr. Sosnick says.

The Mirant Committee asks the Court to deny the Wilson
Shareholders' fee application in its entirety.  Mr. Sosnick
argues that:

     (i) the fees underlying the application were never
         "incurred" by the Wilson Shareholders; and

    (ii) the Wilson Shareholders are unable to establish that
         they made a "substantial contribution" to the Debtors'
         cases.

"[The Wilson Shareholders'] activities were duplicative of the
efforts of the Equity Committee, wasted countless hours of court
time and thus added no value," Mr. Sosnick points out.

For these reasons, the Mirant Committee asks the Court to deny
the fee applications.

Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is a competitive energy  
company that produces and sells electricity in North America,
the Caribbean, and the Philippines.  Mirant's investments in the
Caribbean include three integrated utilities and assets in
Jamaica, Grand Bahama, Trinidad and Tobago and Curacao.  Mirant
owns or leases more than 18,000 megawatts of electric generating
capacity globally.  Mirant Corporation filed for chapter 11
protection on July 14, 2003 (Bankr. N.D. Tex. 03-46590), and
emerged under the terms of a confirmed Second Amended Plan on
January 3, 2006.  Thomas E. Lauria, Esq., at White & Case LLP,
represented the Debtors in their successful restructuring.  
Shearman & Sterling LLP represents the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they listed US$20,574,000,000 in assets and
US$11,401,000,000 in debts.  (Mirant Bankruptcy News, Issue No.
98; Bankruptcy Creditors' Service, Inc., 215/945-7000)

                        *    *    *

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


MIRANT: Court Denies Shareholders' Move for Protective Order
------------------------------------------------------------
Certain shareholders represented by the Wilson Law Firm, P.C.,
filed separate fee applications seeking payment for monthly fees
totaling US$712,518 and US$6,450,000 as contingency success fee.

Because of those fee applications, Reorganized Mirant
Corporation and its debtor-affiliates propounded discovery
requests from the Wilson Shareholders -- Frank Smith, Kent
Koerper, Peter Depavloff, Bart Engram, Mary Leight and L. Matt
Wilson.

The Shareholders ask the Court for a protective order and to
quash New Mirant's discovery requests.

L. Matt Wilson, Esq., at The Wilson Law Firm, P.C., in Atlanta,
Georgia, asserts that the discovery requests, among other
things, broadly seek attorney-client privileged information and
attorney work product privileged information.

                     New Mirant Objects

Jason D. Schauer, Esq., at White & Case LLP, in Miami, Florida,
explains that the purpose of New Mirant's discovery request is
to narrow issues so a hearing on the Shareholders' Fee
Application may proceed efficiently and without surprise.

New Mirant asks the Court to compel the Shareholders to submit
to discovery.  New Mirant also asks the Court deny the
Shareholders' requests for a protective order and to quash
discovery.

                Wilson Shareholders' Reply

Mr. Wilson contends that New Mirant failed to:

    * obtain leave from the Court to conduct the discovery;

    * articulate the relevance of the discovery to the fee
      requests; and

    * limit the scope of their discovery, resulting to
      "excessive, burdensome or oppressive" requests.

Thus, the Shareholders ask the Court for a protective order and
to deny New Mirant's request to compel responses to discovery.

                        *     *     *

Judge Lynn denies, in all respects, the Shareholders' requests
for a protective order and to quash New Mirant's discovery.

The Court grants New Mirant's request to compel the
Shareholders' responses to the discovery requests subject to any
attorney-client privilege claims.

With respect to any documents withheld on the basis of attorney-
client privilege, Judge Lynn directs the Shareholders to provide
a privilege log to Mirant's counsel.  The log must be prepared
by category rather than by individual document.

Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is a competitive energy  
company that produces and sells electricity in North America,
the Caribbean, and the Philippines.  Mirant owns or leases more
than 18,000 megawatts of electric generating capacity globally.  
Mirant Corporation filed for chapter 11 protection on July 14,
2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of
a confirmed Second Amended Plan on January 3, 2006.  Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.  Shearman & Sterling LLP
represents the Official Committee of Unsecured Creditors.  When
the Debtors filed for protection from their creditors, they
listed US$20,574,000,000 in assets and US$11,401,000,000 in
debts.  (Mirant Bankruptcy News, Issue No. 98; Bankruptcy
Creditors' Service, Inc., 215/945-7000)

                         *     *     *

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




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


BBVA URUGUAY: Posted Positive ROAA of 1.3% in First Quarter
-----------------------------------------------------------
Banks across Latin America began the year continuing the
business trends seen in 2005.  There are no major changes to
business trends, with consumer lending showing more dynamism,
which is having a positive impact on profit generation.  In
general, Standard & Poor's Ratings Services expects the trend to
continue since Standard & Poor's see great potential for
business development in the region.

For Banco Bilbao Vizcaya Argentaria Uruguay (B/Positive/B), the
bank posted a positive returns on average assets -- ROAA -- of
1.3% by the end of first-quarter 2006, compared to the negative
0.97% by year-end 2005 and the 1.95% a year before.  These
positive results were mainly due to higher income from services,
negligible provisioning efforts partially because of the
revolving of the loan portfolio, and to a lesser extent, an
improved efficiency ratio with noninterest expenses dropping to
59.4% of total revenues from 61.1% at December 2005.  The
adjusted common equity-to-adjusted assets ratio increased to
8.64% compared to 8.1% at year-end 2005 after the reduction of
its capital base.  Asset quality has worsened, with NPLs
increasing to 5.43% of total loans, mainly due to the reversal
of a previously charged-off loan.  In this context, coverage
with reserves decreased to 118.3%, compared to the 204.5% posted
at year-end 2005 and the 213.7% a year before.  


CITIBANK NA: ROAA Grew 5.59% in First Quarter of 2006
-----------------------------------------------------
Banks across Latin America began the year continuing the
business trends seen in 2005.  There are no major changes to
business trends, with consumer lending showing more dynamism,
which is having a positive impact on profit generation.  In
general, Standard & Poor's Ratings Services expects the trend to
continue since Standard & Poor's see great potential for
business development in the region.

Citibank N.A. (Uruguay Branch) (B/Positive/B) showed strong
results in first-quarter 2006 in line with the positive results
achieved in 2005, with returns on average assets -- ROAA -- up
to 5.59% from the 1.65% reported in 2005.  Improvements in
profitability were mainly due to higher income from services and
lower provisioning efforts. Credit quality continued its
improving trend, with NPLs reducing to 4.3%, while coverage with
reserves dropped to a still acceptable 115.38% of NPAs.  
Capitalization has improved with adjusted total equity to
adjusted assets up to 8.17% from 7.47% at year-end 2005.


DISCOUNT BANK: Posts Steady Solid Profits in First Quarter
----------------------------------------------------------
Banks across Latin America began the year continuing the
business trends seen in 2005.  There are no major changes to
business trends, with consumer lending showing more dynamism,
which is having a positive impact on profit generation.  In
general, Standard & Poor's Ratings Services expects the trend to
continue since Standard & Poor's see great potential for
business development in the region.

Discount Bank Latin America S.A. (B/Positive/B) continued
posting solid profits in first-quarter 2006, in line with the
positive results by year-end 2005.  Despite the low interest
rate environment and the negative effect of the appreciation of
the Uruguayan peso, the bank's profitability was underpinned by
a higher margin, improved efficiency (with noninterest expenses
dropping to 70.34% of total revenues from 74% at December 2005),
and lower provisioning efforts.  Asset quality has improved,
with NPLs falling to a low 3.3% from the 3.5% posted at year-end
2005, while coverage with reserves dropped to a still-high
152.1% from the 173.3% as of December 2005.


* URUGUAY: Posts US$9.43 Billion Bank Deposits in May
-----------------------------------------------------
Uruguay's central bank said in its latest report that the
country's financial system increased 10% to US$9.43 billion in
May 2006, compared with the same month in 2005.

Business News Americas relates that these results in were
released:

   -- foreign currency deposits represent 86% or US$9.04 billion
      of private deposits in May this year, decreasing from 88%
      in the same month last year,

   -- deposits held by Uruguayan residents increased 7.5% to
      US$6.22 billion,

   -- non-resident deposits increased 4.6% to US$1.58 billion.

Deposits in the Uruguayan financial system have been steadily
recovering after an experience of financial crisis in 2002.  In
November 2001, bank deposits were US$15 billion, BNamericas
states.

                        *    *    *

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

                        *    *    *

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




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


CERRO NEGRO: Moody's Downgrades Secured Debt Rating to B1
---------------------------------------------------------
Moody's Investors Service downgraded the ratings of the secured
long-term debt of four heavy oil projects in Venezuela to B1
from Ba3.  The rating outlook is stable.  Ratings affected are
the senior secured foreign currency debt of:

   -- Petrozuata Finance Inc.,
   -- Cerro Negro Finance Ltd.,
   -- Sincrudos de Oriente Sincor, C.A., and
   -- Petrolera Hamaca, S.A.

The downgrade incorporates greater financial risk to the
projects as a result of increased royalties and pending income
tax hikes, which will weaken debt service coverage, and
continuing uncertainty related to potential future changes. T
his rating action concludes the review for possible downgrade
that was initiated on April 26, 2006.  The stable rating outlook
for the four projects reflects the expectation that cash flow
coverages will continue to provide a substantial margin of
protection over the next two years, absent a sharp decline in
oil prices or significantly larger than anticipated changes in
payments to the government.

Moody's notes that the projects have been subjected to
successive increases in royalties, most recently from a
contractual 16 2/3% to 33 1/3%, and an announced plan to
increase income taxes to 50% from a current 34% rate.  The
timing of the income tax increase is not clear; and other
payment increases are also under discussion, such as payment-in-
kind royalties.  The projects are benefiting from high oil
prices and are generating robust cash flow coverage of debt
service even at higher tax and royalty rates.  However, the
changes will undercut cash flow protection, and the negative
impact would be magnified in the future if oil prices decline
from recent high levels.

Another concern is that the government appears to be seeking to
forcibly increase Petroleos de Venezuela's ownership in the
projects up to a targeted 60% level.  The rating downgrade does
not relate to possible changes in ownership structure.  At this
time it is not clear how a change in ownership would be legally
effected or what form of compensation would be made to the
partners.  In Moody's view, majority control by PDVSA would not
automatically compromise project structural protections.  In
addition, the convergence of the ratings of the projects to the
same B1 level as PDVSA's foreign currency rating makes it less
likely that further actions by the government would affect the
project ratings in the near term.  Nevertheless, such potential
changes add to the uncertainty over governance, management and
operation of the projects, as well as their future strategic
direction.

Each of the four heavy oil project issuers is a government-
related issuer in accordance with Moody's rating methodology
entitled "The Application of Joint Default Analysis to
Government-Related Issuers." The B1 rating for the foreign
currency debt of each project incorporates a baseline credit
assessment of 6, the B1 local currency Issuer Rating of PDVSA,
and Moody's assessments of low dependence and support levels by
PDVSA.

The Petrozuata, Sincor, Hamaca, and Cerro Negro projects
produce, upgrade and export heavy oil in the Orinoco region in
Southeastern Venezuela.  The four projects are separately owned
and operated, with current shareholdings by their ultimate
owners as:


   -- Petrozuata (ConocoPhillips 50.1%, and PDVSA 49.9%);

   -- Cerro Negro (ExxonMobil 41.67%, PDVSA 41.67%, and
      Veba Oel AG 16.67%);

   -- Hamaca (ConocoPhillips 39.9%, Chevron 30.1%, and
      PDVSA 30%); and

   -- Sincor (Total 47%, Statoil 15%, and PDVSA 38%).


PETROLEOS DE VENEZUELA: Plans Oil Shipments with Nicaragua
----------------------------------------------------------
The Association of Nicaraguan Municipalities or AMUNIC is making
arrangements with Venezuelan state oil Petroleos de Venezuela
S.A. regarding the latter's oil shipment to Nicaragua, Prensa
Latina reports.

According to Prensa Latina, Dionisio Marenco, Managua's mayor
and the president of AMUNIC, talked of two alternatives:

   -- that gas and diesel be shipped through Costa Rica or
      Honduras, or

   -- that official awareness to access the fuels be increased.

AMUNIC and Petroleos de Venezuela have agreed on the yearly
supply of 10 million barrels of petrol to Nicaragua under
preferential terms, Prensa Latina relates.  However, Nicaragua's
President Enrique Bolanos would not support the initiative.

As reported in the Troubled Company Reporter on June 21, 2006,
the government of Nicaragua prevented Mayor Marenco from
importing Venezuelan gasoline amid a transport crisis.  
President Bolanos had said that oil imports from Venezuela
should be agreed to at state level and not through the office of
Managua's mayor.

The Nicaraguan leader claims that the deal has political
connotations, Prensa Latin states.

Petroleos de Venezuela SA 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.


PETROLERA HAMACA: Moody's Lowers Secured Debt Rating to B1
----------------------------------------------------------
Moody's Investors Service downgraded the ratings of the secured
long-term debt of four heavy oil projects in Venezuela to B1
from Ba3.  The rating outlook is stable.  Ratings affected are
the senior secured foreign currency debt of:

   -- Petrozuata Finance Inc.,
   -- Cerro Negro Finance Ltd.,
   -- Sincrudos de Oriente Sincor, C.A., and
   -- Petrolera Hamaca, S.A.

The downgrade incorporates greater financial risk to the
projects as a result of increased royalties and pending income
tax hikes, which will weaken debt service coverage, and
continuing uncertainty related to potential future changes. T
his rating action concludes the review for possible downgrade
that was initiated on April 26, 2006.  The stable rating outlook
for the four projects reflects the expectation that cash flow
coverages will continue to provide a substantial margin of
protection over the next two years, absent a sharp decline in
oil prices or significantly larger than anticipated changes in
payments to the government.

Moody's notes that the projects have been subjected to
successive increases in royalties, most recently from a
contractual 16 2/3% to 33 1/3%, and an announced plan to
increase income taxes to 50% from a current 34% rate.  The
timing of the income tax increase is not clear; and other
payment increases are also under discussion, such as payment-in-
kind royalties.  The projects are benefiting from high oil
prices and are generating robust cash flow coverage of debt
service even at higher tax and royalty rates.  However, the
changes will undercut cash flow protection, and the negative
impact would be magnified in the future if oil prices decline
from recent high levels.

Another concern is that the government appears to be seeking to
forcibly increase Petroleos de Venezuela's ownership in the
projects up to a targeted 60% level.  The rating downgrade does
not relate to possible changes in ownership structure.  At this
time it is not clear how a change in ownership would be legally
effected or what form of compensation would be made to the
partners.  In Moody's view, majority control by PDVSA would not
automatically compromise project structural protections.  In
addition, the convergence of the ratings of the projects to the
same B1 level as PDVSA's foreign currency rating makes it less
likely that further actions by the government would affect the
project ratings in the near term.  Nevertheless, such potential
changes add to the uncertainty over governance, management and
operation of the projects, as well as their future strategic
direction.

Each of the four heavy oil project issuers is a government-
related issuer in accordance with Moody's rating methodology
entitled "The Application of Joint Default Analysis to
Government-Related Issuers." The B1 rating for the foreign
currency debt of each project incorporates a baseline credit
assessment of 6, the B1 local currency Issuer Rating of PDVSA,
and Moody's assessments of low dependence and support levels by
PDVSA.

The Petrozuata, Sincor, Hamaca, and Cerro Negro projects
produce, upgrade and export heavy oil in the Orinoco region in
Southeastern Venezuela.  The four projects are separately owned
and operated, with current shareholdings by their ultimate
owners as:


   -- Petrozuata (ConocoPhillips 50.1%, and PDVSA 49.9%);

   -- Cerro Negro (ExxonMobil 41.67%, PDVSA 41.67%, and
      Veba Oel AG 16.67%);

   -- Hamaca (ConocoPhillips 39.9%, Chevron 30.1%, and
      PDVSA 30%); and

   -- Sincor (Total 47%, Statoil 15%, and PDVSA 38%).


PETROZUATA FINANCE: Moody's Downgrades Secured Debt Rating to B1
----------------------------------------------------------------
Moody's Investors Service downgraded the ratings of the secured
long-term debt of four heavy oil projects in Venezuela to B1
from Ba3.  The rating outlook is stable.  Ratings affected are
the senior secured foreign currency debt of:

   -- Petrozuata Finance Inc.,
   -- Cerro Negro Finance Ltd.,
   -- Sincrudos de Oriente Sincor, C.A., and
   -- Petrolera Hamaca, S.A.

The downgrade incorporates greater financial risk to the
projects as a result of increased royalties and pending income
tax hikes, which will weaken debt service coverage, and
continuing uncertainty related to potential future changes. T
his rating action concludes the review for possible downgrade
that was initiated on April 26, 2006.  The stable rating outlook
for the four projects reflects the expectation that cash flow
coverages will continue to provide a substantial margin of
protection over the next two years, absent a sharp decline in
oil prices or significantly larger than anticipated changes in
payments to the government.

Moody's notes that the projects have been subjected to
successive increases in royalties, most recently from a
contractual 16 2/3% to 33 1/3%, and an announced plan to
increase income taxes to 50% from a current 34% rate.  The
timing of the income tax increase is not clear; and other
payment increases are also under discussion, such as payment-in-
kind royalties.  The projects are benefiting from high oil
prices and are generating robust cash flow coverage of debt
service even at higher tax and royalty rates.  However, the
changes will undercut cash flow protection, and the negative
impact would be magnified in the future if oil prices decline
from recent high levels.

Another concern is that the government appears to be seeking to
forcibly increase Petroleos de Venezuela's ownership in the
projects up to a targeted 60% level.  The rating downgrade does
not relate to possible changes in ownership structure.  At this
time it is not clear how a change in ownership would be legally
effected or what form of compensation would be made to the
partners.  In Moody's view, majority control by PDVSA would not
automatically compromise project structural protections.  In
addition, the convergence of the ratings of the projects to the
same B1 level as PDVSA's foreign currency rating makes it less
likely that further actions by the government would affect the
project ratings in the near term.  Nevertheless, such potential
changes add to the uncertainty over governance, management and
operation of the projects, as well as their future strategic
direction.

Each of the four heavy oil project issuers is a government-
related issuer in accordance with Moody's rating methodology
entitled "The Application of Joint Default Analysis to
Government-Related Issuers." The B1 rating for the foreign
currency debt of each project incorporates a baseline credit
assessment of 6, the B1 local currency Issuer Rating of PDVSA,
and Moody's assessments of low dependence and support levels by
PDVSA.

The Petrozuata, Sincor, Hamaca, and Cerro Negro projects
produce, upgrade and export heavy oil in the Orinoco region in
Southeastern Venezuela.  The four projects are separately owned
and operated, with current shareholdings by their ultimate
owners as:


   -- Petrozuata (ConocoPhillips 50.1%, and PDVSA 49.9%);

   -- Cerro Negro (ExxonMobil 41.67%, PDVSA 41.67%, and
      Veba Oel AG 16.67%);

   -- Hamaca (ConocoPhillips 39.9%, Chevron 30.1%, and
      PDVSA 30%); and

   -- Sincor (Total 47%, Statoil 15%, and PDVSA 38%).


SINCRUDOS DE ORIENTE: Moody's Lowers Secured Debt Rating to B1
--------------------------------------------------------------
Moody's Investors Service downgraded the ratings of the secured
long-term debt of four heavy oil projects in Venezuela to B1
from Ba3.  The rating outlook is stable.  Ratings affected are
the senior secured foreign currency debt of:

   -- Petrozuata Finance Inc.,
   -- Cerro Negro Finance Ltd.,
   -- Sincrudos de Oriente Sincor, C.A., and
   -- Petrolera Hamaca, S.A.

The downgrade incorporates greater financial risk to the
projects as a result of increased royalties and pending income
tax hikes, which will weaken debt service coverage, and
continuing uncertainty related to potential future changes. T
his rating action concludes the review for possible downgrade
that was initiated on April 26, 2006.  The stable rating outlook
for the four projects reflects the expectation that cash flow
coverages will continue to provide a substantial margin of
protection over the next two years, absent a sharp decline in
oil prices or significantly larger than anticipated changes in
payments to the government.

Moody's notes that the projects have been subjected to
successive increases in royalties, most recently from a
contractual 16 2/3% to 33 1/3%, and an announced plan to
increase income taxes to 50% from a current 34% rate.  The
timing of the income tax increase is not clear; and other
payment increases are also under discussion, such as payment-in-
kind royalties.  The projects are benefiting from high oil
prices and are generating robust cash flow coverage of debt
service even at higher tax and royalty rates.  However, the
changes will undercut cash flow protection, and the negative
impact would be magnified in the future if oil prices decline
from recent high levels.

Another concern is that the government appears to be seeking to
forcibly increase Petroleos de Venezuela's ownership in the
projects up to a targeted 60% level.  The rating downgrade does
not relate to possible changes in ownership structure.  At this
time it is not clear how a change in ownership would be legally
effected or what form of compensation would be made to the
partners.  In Moody's view, majority control by PDVSA would not
automatically compromise project structural protections.  In
addition, the convergence of the ratings of the projects to the
same B1 level as PDVSA's foreign currency rating makes it less
likely that further actions by the government would affect the
project ratings in the near term.  Nevertheless, such potential
changes add to the uncertainty over governance, management and
operation of the projects, as well as their future strategic
direction.

Each of the four heavy oil project issuers is a government-
related issuer in accordance with Moody's rating methodology
entitled "The Application of Joint Default Analysis to
Government-Related Issuers." The B1 rating for the foreign
currency debt of each project incorporates a baseline credit
assessment of 6, the B1 local currency Issuer Rating of PDVSA,
and Moody's assessments of low dependence and support levels by
PDVSA.

The Petrozuata, Sincor, Hamaca, and Cerro Negro projects
produce, upgrade and export heavy oil in the Orinoco region in
Southeastern Venezuela.  The four projects are separately owned
and operated, with current shareholdings by their ultimate
owners as:


   -- Petrozuata (ConocoPhillips 50.1%, and PDVSA 49.9%);

   -- Cerro Negro (ExxonMobil 41.67%, PDVSA 41.67%, and
      Veba Oel AG 16.67%);

   -- Hamaca (ConocoPhillips 39.9%, Chevron 30.1%, and
      PDVSA 30%); and

   -- Sincor (Total 47%, Statoil 15%, and PDVSA 38%).


* S&P Says LatAm Banks Maintain 2005 Trends in First Quarter
------------------------------------------------------------
Banks across Latin America began the year continuing the
business trends seen in 2005.  There are no major changes to
business trends, with consumer lending showing more dynamism,
which is having a positive impact on profit generation.  In
general, Standard & Poor's Ratings Services expects the trend to
continue since Standard & Poor's see great potential for
business development in the region.

During first-quarter 2006, the Chilean financial system
continued to expand its lending activities to the private
sector, maintaining healthy asset quality indicators and a
diversified and growing earnings base, despite increasing
competition and higher pressures on interest margins.  The loan
portfolio expanded by 13.7% year-over-year, mainly fuelled by
higher lending activities in the consumer segment.  With the
nonperforming asset ratio at 0.89% as of March 31, 2006 (0.91%
at December 2005), asset quality indicators continued to improve
during the first months of the year, pointing to the benign
macroeconomic scenario.  ROAA also improved, reaching 1.43%
(1.27% in 2005), thanks to higher operating efficiencies and
better asset mix, which more than offset the negative impact of
the rise in short-term interest rates.  Standard & Poor's
expects the strong loan portfolio growth to slightly decelerate,
and no further improvements in terms of asset quality given the
higher participation of the retail portfolio in the banks'
balance sheets. Standard & Poor's expects profitability to
remain at adequate levels in line with increasing operating
efficiencies and improving asset mix, despite higher pressures
on interest margins.

In first-quarter 2006, retail loans in Mexico continued the
strong expansion exhibited in previous quarters.  Consumer and
mortgage loans are the main source of growth in the loan
portfolios.  Asset mix in the banks is shifting toward higher-
margin loans and in some institutions retail loans already
represent more than half of total loans.  There has been an
increase in the nonperforming loans amount in the Mexican
market, but Standard & Poor's thinks this is a natural
consequence of the strong growth held in recent quarters.  NPA
ratios are lower than the ones exhibited in previous years.  In
addition, banks are closely monitoring the performance of their
loan portfolios and taking proactive measures to correct
deviation from expected trends.

Strong profitability and changes in the capital calculation have
allowed most banks to improve their adjusted capitalization
ratios mainly due to a more coherent regulatory framework to
weight derivative products in capitalization implemented in
2006.  The most important positive impacts were for Banamex and
Santander Serfin.

The preelection period in Mexico has not had an important impact
on banks' performance, and lending activity has remained strong.  
Although there has been some volatility in the second quarter,
mainly in the capital markets, Standard & Poor's expects banks
to continue posting good results, mainly because most have
hedged their positions in interest rates and they have few
exposures to foreign exchange.

In the quarter, Brazilian banks continued their pattern of loan
growth-3.15% in first-quarter 2006 compared to 4.4% in the same
period of 2005.  The main focus is on lending to individuals and
small and midsize companies.  The lending growth to profitable
segments, and cost-control and cross-selling efforts have
enabled the maintenance of strong profitability (annualized ROA
of 2.8% according to Central Bank data) despite growth in credit
costs and higher provision costs.  These developments are
expected to remain in place for the next quarters. With the
growth in lending to riskier segments such as the retail
segment, the NPL ratio (credit classified from 'E' to 'H'
according to local regulation) increased to 7.1% by March 2006,
compared to 6.6% at year-end 2005 and 6.1% for the same period
of 2005.  Brazilian banks have presented an adequate provision
coverage ratio and strong profitability to compensate for higher
provision expenses.

In the context of a benign macroeconomic environment, the
Argentine financial system continued to increase intermediation
to the private sector and to consolidate its earning base and
gradually strengthen its capital level and its balance-sheet
structure.  Mainly fuelled by the dynamism of the domestic
demand and the increasing economic activity, lending to the
private sector recorded a remarkable 36% year-over-year increase
at March 2006.  Asset quality also continued to improve, with
the private sector NPLs ratio at 6.8% as of March 31, 2006 (7.6%
at December 2005).  Higher operating earnings (which led to an
adjusted ROAA of 2.6% in the 12 months ended March 2006) coupled
with new capital inflows resulted in the banking system
consolidating its capital base.  The system also continued to
strengthen its balance-sheet structure, thanks to the gradual
reduction in the exposure to the sovereign (28.3% of total
assets at March 2004 versus 30.4% at December 2005) and the
reduction in the financial assistance granted by the Central
Bank in the context of the financial crisis.  In the short run,
Standard & Poor's expects the system to maintain strong
portfolio growth rates, better asset quality indicators, and
higher profits, as well as to further improve its balance-sheet
structure.



                        ***********


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, and Christian Toledo, Editors.

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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