TCRLA_Public/060626.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Monday, June 26, 2006, Vol. 7, Issue 125

                           Headlines


A R G E N T I N A

AEROSOL SINTESIS: Seeks Court Approval to Reorganize Business
BANINVER SA: Asks Court Approval to Restructure Debts
CERAMICA PLATENSE: Trustee Won't Verify Claims After Aug. 23
COLLI SA: Verification of Proofs of Claim Ends on Sept. 1
COSTAS DEL PLATA: Files Petition to Reorganize Business

ELECTROMECANICA MENDOZA: Claims Verification Will End on Sept. 5
EXPRESO BECHER: Claims Verification Deadline Is Set for Aug. 29
INDIECITO SA: Sets Aug. 14 Deadline for Verification of Claims
INTRAMED SRL: Trustee Has Until July 5 to Verify Claims
LA NUEVA: Last Day for Verification of Claims Is on Aug. 18

METROGAS SA: S&P Assigns CCC+ Ratings After Debt Restructuring

* ARGENTINA: Sells US$242.57 Million in Bonds to Venezuela

B A H A M A S

WINN-DIXIE: Earns US$36.5 Million in May 2006

B E R M U D A

JETBLUE AIRWAYS: Entry Raises Passenger Arrivals in Bermuda
TRENWICK AMERICA: Wants Bankruptcy Case Formally Closed

B O L I V I A

* BOLIVIA: IDB Loans US$15MM to Boost Reforms in Gov't Revenues

B R A Z I L

AMERICA LATINA: Fitch Lowers Local & Foreign Curr. Ratings to B+
BANCO NACIONAL: OKs Technological Fund to Improve Economic Dev't
PARMALAT BRASIL: Creditors OK Revisions to Restructuring Plan
TRANSAX: March 31 Balance Sheet Upside Down by US$2.2 Million
TRANSAX INT'L: Launches Real-Time MedLink Costing for Hospitals

C A Y M A N   I S L A N D S

AC CP: Schedules July 26 Deadline for Proofs of Claim Filing
AI FIRST: Final Shareholders Meeting Is Scheduled for Aug. 7
AI SECOND: Shareholders Will Meet for a Final meeting on Aug. 7
CRANSTON STREET: Liquidator Presents Wind Up Accounts on July 27
DUPLEX FOURTH: Shareholders Meet for a Final Meeting on July 27

PARALLAX LIQUID: Final Shareholders Meeting Is Set for July 24
PCC HOLDINGS: Holding Final Shareholders Meeting on July 26
SOUNDVIEW US: Final Shareholders Meeting Is Set for July 27
STBL FUNDING: Last Shareholders Meeting Is Scheduled for July 27
WASHINGTON STREET: Holds Last Shareholders Meeting on July 27

C O L O M B I A

* COLOMBIA: Holds Bilateral Talks with Cuba
* COLOMBIA: Trade Surplus Reached US$163.6MM in First Quarter

C O S T A   R I C A

BAC SAN JOSE: Intends to Increase Loan Market Shares by 2009

C U B A

* CUBA: Holds Talks with Colombia to Expand Trade Relations
* CUBA: Rum Experts to Present at International Gathering

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE LTD: Offers CDN2.30 Per Share to Acquire Novicourt

* DOMINICAN REPUBLIC: Free Trade Pact with US May Cut Prices

E C U A D O R

PETROECUADOR: Unit's Production Decline Could Affect Revenue

H A I T I

* HAITI: Needs More International Aid, Says Guyana Minister

J A M A I C A

DIGICEL LIMITED: Launches Emergency Texting Service
KAISER: Law Debenture Withdraws Holder Affidavits Protest

M E X I C O

CASABLANCA TRUST: Moody's Rates MXN300MM Sr. Secured Loan at B1
DELTA AIR: Will Provide Los Angeles-Puerto Vallarta Flights
EL POLLO: Gets Lenders' Requisite Consents for Indenture Changes
FORD MOTOR: Unveils 2007 Lineup Amidst Declining SUV Sales
JETBLUE AIRWAYS: Will Launch New York-Cancun Flights

* MEXICO: Paying US$7 Billion of Debts with World Bank & IDB

N I C A R A G U A

* NICARAGUA: Inks Free Trade Agreement with Taiwan

P A R A G U A Y

PARMALAT PARAGUAY: Stipulation Allows Citibank to Pursue Suit

P E R U

* PERU: Congress Commission Asks to Renegotiate Camisea Contract

P U E R T O   R I C O

ADELPHIA COMMS: Can Restructure Time Warner & Comcast Asset Sale
ADELPHIA COMMS: Inks Stipulation on Bank Lenders' Distributions
DORAL FINANCIAL: Completes Sale of US$2.5 Bil. of Mortgage Loans
KOOSAHREM CORP: Moody's Rates US$245-M First Lien Loan at B1
MUSICLAND HOLDING: Posts US$11.1 Million Net Loss in May 2006

RENT-A-CAR: Moody's Puts Ba2 Rating on Proposed US$725-Mil. Loan

T R I N I D A D   &   T O B A G O

BWIA WEST: Restarts Negotiation with Workers' Union
DIRECTV HOLDINGS: Fitch Affirms BB Issuer & Sr. Debt Ratings

U R U G U A Y

NUEVO BANCO: Loses UYU130 Million in January-May 2006 Period

V E N E Z U E L A

CITGO PETROLEUM: Mulls Sale of Colonial & Explorer Pipelines
CITGO PETROLEUM: Reduces Oil Delivery to Lake Charles Plant
CITGO PETROLEUM: Oil Spill Clean Up Near Clifton Ridge Continues
PETROLEOS DE VENEZUELA: Allegedly Funds Campaign of Evo Morales
PETROLEOS DE VENEZUELA: Building Ethanol Plants with Cuban Help

PETROLEOS DE VENEZUELA: Issuing US$3.5-Bil. Debt on Local Market

* VENEZUELA: Purchases US$242.57 Million in Bonds from Argentina



                         - - - - -


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


AEROSOL SINTESIS: Seeks Court Approval to Reorganize Business
-------------------------------------------------------------
Court No. 25 in Buenos Aires is studying the petition filed by
Aerosol Sintesis S.A. to reorganize its business, La Nacion
states.

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

Clerk No. 49 assists the court on this case.

The debtor can be reached at:

           Aerosol Sintesis S.A.
           Holgura 3612
           Buenos Aires, Argentina


BANINVER SA: Asks Court Approval to Restructure Debts
-----------------------------------------------------
Court No. 11 in Buenos Aires is reviewing the merits of Baninver
S.A.'s petition to reorganize.  La Nacion says that the company
filed the petition following cessation of debt payments on
June 20, 2006.

Once the court approves Baninver's petition, reorganization will
allow the company to avoid bankruptcy by negotiating a
settlement with its creditors.

Clerk No. 22 assists the court in this case.

The debtor can be reached at:

           Baninver S.A.
           Belgrano 615
           Buenos Aires, Argentina


CERAMICA PLATENSE: Trustee Won't Verify Claims After Aug. 23
------------------------------------------------------------
Court-appointed trustee Nancy Edith Gonzalez won't validate
creditors' proofs of claim against bankrupt company Ceramica
Platense S.A. after Aug. 23, 2006, Infobae reports.

Ms. Gonzalez will present the validated claims in court as
individual reports on Oct. 4, 2006.  A general report that
contains an audit of Ceramica Platense's accounting and banking
records will follow on Nov. 16, 2006.

The trustee can be reached at:

           Nancy Edith Gonzalez
           Lavalle 1290
           Buenos Aires, Argentina


COLLI SA: Verification of Proofs of Claim Ends on Sept. 1
---------------------------------------------------------
The verification of creditors' proofs of claim against Colli
S.A. will end on Sept. 1, 2006, La Nacion reports.  Maria Gacio
is the court-appointed trustee who will validate the claims.

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

Court No. 5 in Buenos Aires declared Colli bankrupt at the
request of Jorge Pesich, whom the company owes US$6,430.10.

Clerk No. 9 assists the court in the proceeding.

The debtor can be reached at:

           Colli S.A.
           Arcos 4765
           Buenos Aires, Argentina

The trustee can be reached at:

           Maria Gacio
           San Martin 793
           Buenos Aires, Argentina


COSTAS DEL PLATA: Files Petition to Reorganize Business
-------------------------------------------------------
Costas del Plata S.A., a company operating in Buenos Aires, has
filed a petition with Court No. 17 in Buenos Aires to reorganize
its business after failing to pay its liabilities since November
2002.

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

Clerk No. 33 assists the court in the case.

The debtor can be reached at:

           Costas del Plata S.A.
           Tucuman 359
           Buenos Aires, Argentina


ELECTROMECANICA MENDOZA: Claims Verification Will End on Sept. 5
----------------------------------------------------------------
Maria Cecilia Arrigo, the court-appointed trustee for the
bankruptcy proceeding of Electromecanica Mendoza S.A., will
verify creditors' proofs of claim until Sept. 5, 2006.
Creditors who fail to submit the required documents won't
receive any post-liquidation distribution.

Ms. Arrigo will submit in court individual reports based on the
verified claims on Oct. 18, 2006, and a general report that
contains a summary of the proceeding on Nov. 29, 2006.

The debtor can be reached at:

           Electromecanica Mendoza S.A.
           Sarmiento 677, Ciudad de Mendoza
           Mendoza, Argentina

The trustee can be reached at:

           Maria Cecilia Arrigo
           Martinez de Rozas 1015, Ciudad de Mendoza
           Mendoza, Argentina


EXPRESO BECHER: Claims Verification Deadline Is Set for Aug. 29
---------------------------------------------------------------
The last day for verification of creditors' proofs of claim
against bankrupt company Expreso Becher S.A. is on
Aug. 29, 2006.  A court in Mendoza appointed Enrique Mauricio
Romero as trustee who will verify the claims.

The verified claims will be presented in court as individual
reports on Oct. 10, 2006.  A general report that contains an
audit of Expreso Becher's accounting and banking records will
follow on Nov. 22, 2006.

The debtor can be reached at:

           Expreso Becher S.A.
           Avenida Espana 512, Ciudad de Mendoza
           Mendoza, Argentina

The trustee can be reached at:

           Enrique Mauricio Romero
           Avenida San Martin 1425, Ciudad de Mendoza
           Mendoza, Argentina


INDIECITO SA: Sets Aug. 14 Deadline for Verification of Claims
--------------------------------------------------------------
The deadline for verification of creditors' proofs of claim
against Indiecito S.A. is set for Aug. 14, 2006.  Estudio Juan
Ulnik y Asociados was appointed as trustee to verify the claims.

The verified claims will be submitted in court as individual
reports on Sept. 26, 2006.  A general report that contains an
audit of Indiecito's accounting and banking records will follow
on Nov. 8, 2006.

An informative assembly is scheduled for May 23, 2007, wherein
creditors will cast their votes on a settlement that Indiecito
will lay on the table.

Court No. 14 in Buenos Aires approved Indiecito's petition to
reorganize its business after it has defaulted on its debt
payments on April 16, 2006.

Clerk No. 27 assists the court in this case.

The debtor can be reached at:

           Indiecito S.A.
           Fray Justo Santa Maria de Oro 1971
           Buenos Aires, Argentina

The trustee can be reached at:

           Estudio Juan Ulnik y Asociados
           Maipu 509
           Buenos Aires, Argentina


INTRAMED SRL: Trustee Has Until July 5 to Verify Claims
-------------------------------------------------------
A court-appointed trustee for the bankruptcy proceeding of
Intramed S.R.L. will verify crditors' proofs of claim until
July 5, 2006, Infobae reports.  The name of the trustee is yet
to be disclosed.

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

Argentine bankruptcy law requires the trustee to present
individual reports on the validated claims and a general report
that contains an audit of Intramed's accounting and banking
records.  The dates of submission of these reports are yet to be
disclosed.

A court in Cordoba handles the proceeding.

The debtor can be reached at:

           Intramed S.R.L.
           Urquiza 184, Ciudad de Cordoba
           Cordoba, Argentina


LA NUEVA: Last Day for Verification of Claims Is on Aug. 18
-----------------------------------------------------------
Arnaldo Giecco, the court-appointed trustee for the bankruptcy
case of La Nueva Suiza S.R.L., will verify creditors' proofs of
claim until Aug. 18, 2006.  Creditors who fail to submit the
required documents won't receive any post-liquidation
distribution.

Mr. Giecco will submit in court individual reports on the
validated claims on Sept. 29, 2006.  A general report that
contains an audit of La Nueva's accounting and banking records
will follow on Nov. 13, 2006.

The debtor can be reached at:

           La Nueva Suiza S.R.L.
           Tucuman 753
           Buenos Aires, Argentina

The trustee can be reached at:

           Arnaldo Giecco
           Uruguay 1061
           Buenos Aires, Argentina


METROGAS SA: S&P Assigns CCC+ Ratings After Debt Restructuring
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'CCC+' local-
and foreign-currency corporate credit ratings to Argentina's
largest natural gas distribution company, Metrogas S.A.,
following the recent completion of the company's debt
restructuring.  At the same time, Standard & Poor's assigned
'CCC+' senior unsecured debt ratings to these notes issued in
exchange for defaulted debt:

   -- US$236.3 million in Series I notes,
   -- US$6.3 million in Series II A notes, and
   -- EUR26.1 million in Series II B notes.

All the notes will amortize in semiannual installments (Series I
starting in 2010 and Series II A and B starting in 2012) and
will finally mature in December 2014.  The outlook for the
ratings is stable.

As part of its debt restructuring, Metrogas reached
approximately 95% of acceptance by debtholders in its offer.
Those debtholders that did not participate in the restructuring
account for about US$23.7 million.  Standard & Poor's believes
that the high level of acceptance for the proposal, in addition
to the company's cash position of about US$30 million following
the restructuring, mitigates the risks of some holdouts
potentially preventing the company from concluding its
restructuring.

"The ratings on Metrogas reflect its weak business and financial
profile, which mainly derives from the high regulatory risk in
Argentina," said Standard & Poor's credit analyst Luciano
Gremone.  "The ratings also reflect uncertainties about when the
concession contracts will be renegotiated and what their final
outcome will be.  Furthermore, the ratings reflect the
significant mismatch between revenues denominated in Argentine
pesos and financial debt denominated in foreign currency, mostly
U.S. dollars.  And lastly, the ratings reflect the company's
limited financial flexibility."

These factors are partially compensated for by Metrogas'
improved debt maturity schedule after its restructuring and by
its competitive position as the largest natural gas distribution
company in Argentina.

The stable outlook reflects our expectations that the large
reduction in Metrogas' financial obligations after the debt
restructuring and its relatively favorable maturity profile
should allow it to service its debt in the next three years.
The upside rating potential will be influenced by the final
renegotiation of the concession contract, to the extent that the
outcome strengthens Metrogas' repayment ability.  The ratings or
outlook could come under pressure, however, if Metrogas'
financial performance gets weaker as a result of significant
devaluation or inflation levels, or if there is no significant
progress with regard to tariffs and the global renegotiation of
its concession contract by year-end 2007.


* ARGENTINA: Sells US$242.57 Million in Bonds to Venezuela
----------------------------------------------------------
The Venezuelan government will purchase about US$242.57 million
in public debt bonds from Argentina, El Universal reports.
Venezuela has already acquired approximately US$3 billion of
Argentina's 2012 Libor Bonds since May 2005.

The latest purchase will be made at market prices.

Previously, Venezuela made a US$120 million profit from the sale
of US$1.4 billion of Argentina's Boden 2012 bonds.

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     RD      Dec. 14, 2005
   Long Term IDR       B       Dec. 14, 2005
   Short Term IDR      B-      Jun.  3, 2005
   Local Currency
   Long Term Issuer
   Default Rating      B       Jun.  3, 2005

                        *    *    *

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




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


WINN-DIXIE: Earns US$36.5 Million in May 2006
---------------------------------------------

                   Winn-Dixie Stores, Inc., et al.
                Unaudited Consolidated Balance Sheet
                          At May 31, 2006
                        (In US$ Thousands)

                              Assets

Current Assets:
   Cash and cash equivalents                            $161,443
   Marketable securities                                  14,285
   Trade and other receivables, net                      147,639
   Insurance claims receivable                            44,394
   Income tax receivable                                  30,382
   Merchandise inventories, net                          448,810
   Prepaid expenses and other current assets              36,042
   Assets held for sale                                   30,885
                                                      ----------
Total current assets                                     913,880

Property, plant and equipment, net                       513,072
Other assets, net                                        115,476
                                                       ---------
Total assets                                          $1,542,428
                                                       =========

                 Liabilities and Shareholders' Deficit

Current liabilities:
   Current borrowings under DIP Credit facility          $40,000
   Current portion of long-term debt                         230
   Current obligations under capital leases                3,487
   Accounts payable                                      212,687
   Reserve for self-insurance liabilities                 88,296
   Accrued wages and salaries                             74,237
   Accrued rent                                           29,730
   Accrued expenses                                      111,719
   Liabilities related to assets held for sale             6,835
                                                      ----------
Total current liabilities                                567,221

Reserve for self-insurance liabilities                   144,077
Long-term debt                                               184
Obligations under capital leases                           4,125
Other liabilities                                         15,715
                                                      ----------
Total liabilities not subject to compromise              731,322

Liabilities subject to compromise                      1,139,164
                                                      ----------
Total liabilities                                      1,870,486

Shareholders' deficit:
    Common stock                                         141,858
    Additional paid-in capital                             4,670
    Accumulated deficit                                (470,606)
    Accumulated other comprehensive loss                (33,980)
                                                      ----------
Total shareholders' deficit                            (328,058)
                                                      ----------
Total liabilities and shareholders' deficit           $1,542,428
                                                      ==========


                    Winn-Dixie Stores, Inc., et al.
          Unaudited Consolidated Statement of Operations
                    Four Weeks Ended May 31, 2006
                           (In Thousands)

Net sales                                               $557,944
Cost of sales                                            408,070
                                                      ----------
Gross profit on sales                                    149,874

Other operating and administrative expenses              157,381
Restructuring gains                                      (2,521)
                                                      ----------
Operating loss                                           (4,986)

Interest expense, net                                        222
                                                      ----------
Loss before reorganization items and income taxes        (5,208)
Reorganization items, net gains                          (8,989)
Income tax expense                                             -
                                                      ----------
Net earnings from continuing operations                    3,781

Discontinued operations:
  Loss from discontinued operations                      (1,696)
  Gain on disposal of discontinued operations            34,434
Income tax expense                                             -
                                                      ----------
Net earnings from discontinued operations                 32,738
                                                      ----------
Net earnings                                             $36,519
                                                      ==========


                    Winn-Dixie Stores, Inc., et al.
           Unaudited Consolidated Statement of Cash Flows
                     Four Weeks Ended May 31, 2006
                           (In Thousands)

Cash flows from operating activities
    Net earnings                                         $36,519
    Adjustment to reconcile net loss to
    net cash provided by operating activities:
       Gain on sales of assets, net                      (8,300)
       Reorganization items, net                         (8,989)
       Depreciation and amortization                       7,770
       Stock compensation plans                              545
       Change in operating assets and liabilities:
          Trade and other receivables                      9,626
          Merchandise inventories                          9,329
          Prepaid expenses and other current assets        8,520
          Accounts payable                              (17,446)
          Reserve for self-insurance liabilities         (1,172)
          Lease liability on closed facilities          (41,536)
          Income taxes receivable                             23
          Defined benefit plan                               352
          Other accrued expenses                          13,701
                                                      ----------
    Net cash provided by operating activities
     before reorganization items                           8,942

    Cash effect of reorganization items                  (3,531)
                                                      ----------
Net cash provided by operating activities                  5,411
                                                      ----------
Cash flows from investing activities:
    Purchases of property, plant and equipment           (2,960)
    Increase in investments and other assets             (1,232)
    Proceeds from sales of assets                         10,616
    Purchases of marketable securities                   (1,304)
    Sales of marketable securities                           272
    Other                                                    980
                                                      ----------
Net cash used in investing activities                      6,372
                                                      ----------
Cash flows from financing activities
    Gross borrowings on DIP Credit Facility                  154
    Gross payments on DIP Credit Facility                (1,123)
    Principal payments on capital lease obligations        (119)
    Other                                                    165
                                                      ----------
Net cash used in financing activities                      (923)
                                                      ----------
Increase in cash and cash equivalents                     10,860
Cash and cash equivalents classified
    as Assets held for sale                              (5,731)
Cash and cash equivalents at beginning of period         156,314
                                                      ----------
Cash and cash equivalents at end of period              $161,443
                                                      ==========

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




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


JETBLUE AIRWAYS: Entry Raises Passenger Arrivals in Bermuda
-----------------------------------------------------------
The launching of JetBlue Airways Corporation's New York-Bermuda
service in May contributed to the increase in passenger arrivals
in the Bermuda International Airport, the Associated Press
reports.

The Royal Gazette states that arrivals in Bermuda increased 6%
in May, compared with the same month in 2005.  Passengers from
New York increased by 26%.

Based on airport data, around 4,000 more people, including
returning locals, arrived in the Bermuda International, the
Royal Gazette relates.

Dr. Ewart Brown, the Minister of Tourism and Transport in
Bermuda, commented to the Royal Gazette, "The numbers are
definitely up and JetBlue undoubtedly has had an impact."

James Howes, the general manager of the Bermuda International,
told AP, "The introduction of JetBlue has not resulted in any
loss of business, it's brought it in."

JetBlue prompted other carriers like American Airlines and
Continental Airlines to slash prices, AP states, citing Mr.
Howes.

"The main problem we have seen is high air fares.  That's why,
with the introduction of JetBlue, the fares dropped on the other
airlines," Mr. Howes told the Royal Gazette.  "We saw no drop in
traffic with American and an increase on Continental as well."

Based in Forest Hills, New York, JetBlue Airways Corporation
(Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger
air transportation services primarily in the United States.  As
of Feb. 14, 2006, the Company operated approximately 369 daily
flights serving 34 destinations in 15 states, Puerto Rico, the
Dominican Republic, and the Bahamas.  The Company also provides
in-flight entertainment systems for commercial aircraft,
including live in-seat satellite television, digital satellite
radio, wireless aircraft data link service, and cabin
surveillance systems and Internet services, through its wholly
owned subsidiary, LiveTV, LLC.


TRENWICK AMERICA: Wants Bankruptcy Case Formally Closed
-------------------------------------------------------
Trenwick America LLC fka Trenwick America Corporation asks the
Honorable Mary F. Walrath of the U.S. Bankruptcy Court for the
District of Delaware for entry of final decree to close its
chapter 11 case.

The Bankruptcy Court confirmed the Debtor's Second Amended Plan
of Reorganization on Oct. 27, 2004, and that Plan took effect on
Aug. 15, 2005.

Pursuant to the Plan, Trenwick LLC succeeded to all of the
Debtor's assets and liabilities on the Effective Date, and
various post-confirmation matters were vested in Trenwick LLC or
were assigned to the Litigation Trust.

There is no pending adversary proceeding or contested matter in
this case and all or substantially all of the distributions
contemplated in the Plan have been made, Charlene D. Davis,
Esq., at The Bayard Firm, told the Court.  Thus, the Plan has
been substantially consummated, Ms. Davis added.

The Debtor has filed all post-confirmation reports, will pay all
unpaid quarterly fees to the Office of the U.S. Trustee, and
will file a final post-confirmation report through the Debtor's
closing date.

Based in Stamford, Connecticut, Trenwick America Corporation is
a holding company for operating insurance companies in the
United States.  The Company filed for chapter 11 protection on
Aug. 20, 2003 (Bankr. Del. Case No. 03-12635).  Christopher S.
Sontchi, Esq., and William Pierce Bowden, Esq., at Ashby &
Geddes, and Benjamin Hoch, Esq., Irena Goldstein, Esq., Carey D.
Schreiber, Esq., at Dewey Ballantine LLP represent the Debtors
in their restructuring efforts.  As of June 30, 2003, the Debtor
listed approximate assets of US$400,000,000 and debts of
US$293,000,000.  The Court confirmed the Debtor's Second Amended
Plan of Reorganization on Oct. 27, 2004, and the Plan became
effective as of Aug. 15, 2005.

On Aug. 20, 2003, Trenwick Group, Ltd., and LaSalle Re Holdings
Limited also filed insolvency proceedings in the Supreme Court
of Bermuda.  On Aug. 22, 2003, the Bermuda Court granted an
order appointing Michael Morrison and John Wardrop, partners of
KPMG in Bermuda and KPMG LLP in the United Kingdom,
respectfully, as Joint Provisional Liquidators in respect of TGL
and LaSalle.

The Bermuda Court granted the JPLs the power to oversee the
continuation and reorganization of these companies' businesses
under the control of their boards of directors and under the
supervision of the U.S. Bankruptcy Court and the Bermuda Court.




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


* BOLIVIA: IDB Loans US$15MM to Boost Reforms in Gov't Revenues
---------------------------------------------------------------
The Inter-American Development Bank approved a US$15-million
loan to Bolivia for a program to improve the efficiency of the
government's revenue collection.  The program will strengthen,
coordinate and consolidate institutional reform processes to
formulate and implement tax and customs policies.

Since the last decade, the IDB has been supporting Bolivia in
reforms to modernize its tax and customs administrations.  The
Bank will now be helping the country to consolidate the process
by seeking synergies in these areas:

   -- interagency coordination,
   -- management by results,
   -- information technology and communications,
   -- human resources training and updating and
   -- harmonizing rules and procedures.

The management by results focus includes the establishment of
agreements of performance, between the Ministry of Finances and
the Tax and Customs Services in order to improve the efficiency
of the collection agencies.  The program is expected to create a
better alignment between the formulation and implementation of
tax and tariff policies, increase compliance with tax
obligations and obtain greater efficiency in the customs
administration.

The building of a transparent, efficient and effective fiscal
management in Bolivia has been supported by several IDB
projects.  This particular operation will help improve the
efficiency and sustainability of public finance by strengthening
reforms that will ensure a sustainable generation of public
sector income.

This new loan from the IDB Fund for Special Operations is for a
40-year period, with a 10-year grace period with an interest
rate of 1% during the grace period and 2% thereafter.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


AMERICA LATINA: Fitch Lowers Local & Foreign Curr. Ratings to B+
----------------------------------------------------------------
Fitch downgrades these ratings for America Latina Logistica
S.A.:

   -- Local and foreign currency Issuer Default Ratings to 'B+'
      from 'BB-';

   -- Long-term national rating to 'BBB+(bra)' from 'A-(bra)';
      and

   -- Third, fourth and fifth debenture issuances to 'BBB+(bra)'
      from 'A-(bra)'.

The ratings have also been removed from Rating Watch Negative,
where they were originally placed on May 10, 2006.  The Rating
Outlook for the local and foreign currency IDRs and long-term
national ratings is Stable.

These rating actions are the result of the increased debt to be
assumed by America Latina in the proposed BRL1.4 billion
acquisition of Brasil Ferrovias S.A. and its affiliate Novoeste
Brasil S.A.  The acquisition has been approved by Brazil's
national surface transportation agency, Agencia Nacional de
Transportes Terrestres or ANTT, and is expected to be completed
by the end of the month.  Payment will be made using America
Latina's common and preferred shares such that the transaction
will result in no new debt issuances at the America Latina
holding company and operating subsidiary levels.  However, the
acquisition of higher leveraged Brasil Ferrovias and Novoeste
will significantly increase consolidated leverage and should
negatively affect the overall credit quality of America Latina.

The transaction is expected to add about BRL3.9 billion of debt
and lease obligations to America Latina's consolidated debt
level of about BRL1.7 billion as of Dec. 31, 2005.  The BRL3.9
billion includes BRL3.0 billion of debt at the acquired
companies and its operating subsidiaries and about BRL900
million of new debt to be used for restructuring costs and to
improve the acquired railways' operating efficiency over the
medium-term.  America Latina's liquidity is supported by about
BRL1 billion of cash as of March 31, 2006.  In 2005, America
Latina's EBITDAR was BRL457 million while Brasil Ferrovias'
EBITDAR totaled BRL226 million.  As a result of the acquisition,
America Latina's consolidated adjusted total debt/operating
EBITDAR ratio of 3.8x at December 2005 is expected to surpass
6.0x in 2006, which is weak for the rating category.

Fitch's 'B+' IDR rating reflects an expectation that America
Latina's consolidated operating earnings will increase as a
result of investing approximately BRL650 million over the next
three years in Brasil Ferrovias' rolling stock and implementing
an aggressive cost cutting program at the company, in addition
to capturing other cost saving synergies.  America Latina's
ratings incorporate Fitch's expectation that the company will
increase its combined EBITDAR generation over the next 24 to 36
months from about BRL700 million to more than BRL1.0 billion and
the ratio of total debt to operating EBITDAR will decrease to
below 5.0x from about 6.8x currently on a pro forma basis.

Positively, the acquisition of Brasil Ferrovias and Novoeste
holds the potential to enhance America Latina's market position
over the medium- to long-term.  The acquired railroads also
transport agricultural products in the Central Western and South
Eastern regions of Brazil. In addition to the ports of Rio
Grande, Sao Francisco do Sul and Paranagua that America Latina
already serves, the operations of Ferrovias Bandeirantes S.A.
aka Ferroban, a subsidiary of Brasil Ferrovias, will provide
access to the Port of Santos, Brazil's largest port for exports.

America Latina is a holding company that directly controls
America Latina Brasil and America Latina Intermodal, based in
Brazil, and indirectly controls America Latina - America Latina
Logistica Central S.A. and America Latina -- America Latina
Logistica Mesopotamica S.A., in Argentina.  America Latina's
network of approximately 16,400 kilometers of railway lines is
used to transport mainly soybeans and other agricultural and
industrial products in the south of Brazil, in the State of Sao
Paulo and in the central and northeastern regions of Argentina.
The group's railways provide key transportation links with the
region's main ports.

Brasil Ferrovias is a holding company that owns the Ferrovias
Norte Brasil S.A. and Ferroban railroads.  Novoeste is an
affiliated holding company that owns the Ferrovia Novoeste S.A.
railway.  Ferronorte operates a network of 506 kilometers that
connects the cities of Alto Araguaia and Santa Fe do Sul,
providing access to Brazil's principal agricultural region in
the state of Mato Grosso.  With 1,961 kilometers of rail lines,
Ferroban connects the Port of Santos to the cities of Santa Fe
do Sul, Panorama and Colombia all in the state of Sao Paulo and
provides transportation within the states of Mato Grosso, Mato
Grosso do Sul, and Sao Paulo.  Ferrovia Novoeste operates in the
states of Mato Grosso do Sul and Sao Paulo with 1,621 kilometers
of railway lines.


BANCO NACIONAL: OKs Technological Fund to Improve Economic Dev't
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved the creation of a Technological Fund or Funtec, with
non-reimbursable funds, to invest in areas with considered
technological objectives.  Funtec will support projects in these
areas:

   -- renewable energy from biomass, mainly ethanol;

   -- software, semiconductors and biotechnological solutions
      directed to the designing of problems associated to
      Brazilian farming development; and

   -- drugs and inputs for neglected illnesses and
      pharmaceutical products obtained through advanced
      technology.

Funtec's main objective is to seek solutions for large
technological problems in order to make possible strategic
fronts and remove obstacles to the Brazilian economic and social
development.  With BRL153 million as equity, the new fund will
have as beneficiaries the technological institutions and those
supporting technological development, with the participation of
enterprises. They will use 70% of Funtec's available funds,
which will come from BNDES profits.

With this move, BNDES completes the tripod vertex of its
innovation-supporting strategy.  The two other operating fronts
are:

   -- the financing to enterprises presenting projects with
      processes considered innovative, in which BNDESPAR
      performs capital funding, and

   -- the recently created financing for Research, Development
      and Innovation, bearing a fixed rate of 6% and zero basic
      spread, and the Innovation-Production, bearing long-term
      interest Rate plus a spread up to 1.8%, which are included
      in BNDES' New Operating Policies.

Funtec-supported programs will aim at covering gaps and
accelerating the search of solutions to large problems already
detected and recognized by research institutes and economic
agents.  In addition, the concentration of efforts with well-
defined focus will allow BNDES to have a remarkable presence in
areas or matters in which the Brazilian enterprises may play an
important role or even lead in a global level.

Lastly, Funtec would join efforts from Research Institutes and
enterprises to seek solutions.  BNDES financial support will be
provided to nonprofit institutions directed to research and
innovation. The supported projects would be considered as
effective introductions of market innovations.  Presently, BNDES
carries a portfolio of long-term projects, which may receive
funds from Funtec, in a total amount of BRL286 million.

                        *    *    *

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.


PARMALAT BRASIL: Creditors OK Revisions to Restructuring Plan
-------------------------------------------------------------
Certain amendments to the Restructuring Plan of Parmalat Brasil
Industria de Alimentos S.A. have been approved during a general
creditors meeting.

The amendments include:

   -- Authorization of the subscription by Laep Capital LLC
      of PA's capital increase.  As a result, Laep will hold a
      majority shareholding of 98.5% of PA's share capital.
      Parmalat group has waived its pre-emption rights to the
      newly issued shares.

   -- Sale by PA to Perdigao Agroindustrial SA of the
      controlling stockholding in Batavia SA, and of the bakery
      division and the production plant of Guaranhus in the
      State of Pernambuco.

   -- Trademark license agreement between Parmalat SpA and
      Batavia.

The amendments to the Plan are subject to approval by the
Court of Sao Paulo.  Upon completion of the procedure, the
control of the Parmalat Group over PA will cease.

                       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.


TRANSAX: March 31 Balance Sheet Upside Down by US$2.2 Million
-------------------------------------------------------------
Transax International Limited delivered its first quarter
financial statements for the three months ended March 31, 2006,
to the Securities and Exchange Commission on May 19, 2006.

The company reported a US$629,927 net loss on US$981,058 of
revenues for the three months ended March 31, 2006.

At March 31, 2006, the Company's balance sheet showed
US$1,836,246 in total assets and US$4,041,575 in total
liabilities, resulting in a US$2,205,329 stockholders' deficit.

The Company's March 31 balance sheet also showed strained
liquidity with US$691,719 in total current assets available to
pay US$3,310,361 in total current liabilities coming due within
the next 12 months.

Full-text copies of the Company's first quarter financial
statements for the three months ended March 31, 2006, are
available for free at http://ResearchArchives.com/t/s?a10

                     Going Concern Doubt

Moore Stephens, P.C., in New York, raised substantial doubt
about Transax International Limited's ability to continue as a
going concern after auditing the Company's consolidated
financial statements for the year ended Dec. 31, 2005.  The
auditor pointed to the Company's losses, and working capital and
stockholders' deficiencies.

Based in Miami, Florida, Transax International Limited (OTCBB:
TNSX) -- http://www.transax.com/-- provides hospitals,
physicians and health insurance companies with innovative health
information management systems to manage coding, compliance,
abstracting and record management's processes.  The Company's
subsidiaries are: TDS Telecommunication Data Systems LTDA
provides those services in Brazil; Transax Australia Pty Ltd.
provides those services in Australia; and Medlink Technologies,
Inc., initiates research and development.


TRANSAX INT'L: Launches Real-Time MedLink Costing for Hospitals
---------------------------------------------------------------
Transax International Limited has developed and launched a
real-time costing specifically tailored for the management of
hospital in-patient visits.  The company has initiated marketing
efforts for its MedLink Hospital solution, MedLink HOSP, to a
number of potential clients.

MedLink HOSP processes the entire aspect of a patient's visit
from the higher cost procedures to the analysis of lesser cost
events and items.  The solution also offers the ability to
monitor these costs during the patient's stay at the hospital.
Utilizing MedLink HOSP, hospitals will benefit from a
significantly improved response time from the Payer, a dramatic
reduction in the cost to submit/review and discuss claims, as
well as a reduction in rejections processing and collection.
Additionally, the MedLink HOSP solution offers significant Payer
benefits, specifically in the reduction of claims processing
cost, reduced rejection discussion and a reduction of
inappropriate medical costs.

The control of higher cost items is achieved by implementing a
set of pre- and post-authorization functions, thereby allowing
the hospital to notify the Payer of any major events occurring
to the patient.  These events may include, but are not limited
to, patient registration, change in length of stay, requests for
special examinations, therapies, drugs or materials.  These
functions are processed by the MedLink HOSP system and allow the
Payer's medical team to follow-up on these events as they occur.

The analysis of lower cost, ancillary items is achieved by
linking the Hospital's in-house system to the MedLink system,
thereby allowing the capture of all service/material items used
with the patient.  After capturing this data, the MedLink system
applies various filters to the data, as per the Payer
definition.

Stephen Walters, President & CEO of Transax International,
commented, "After extensive research and development we are
excited to offer the MedLink HOSP solution to our clients.  This
solution has gone through an extensive design phase with a
number of major insurance companies in Brazil."  Mr. Walters
added, "A typical insurer will have just 5% of their claims
associated with Hospital visits, however in most cases it is
accountable for over 50% of payments and costs.  The
introduction of MedLink HOSP will allow the payer to
significantly control their costs and cash flow as a direct
result of implementing our solution. Additionally, both the
healthcare provider and payer benefit by reducing rejections due
to abuse, misuse and fraud, as well as dramatically reducing the
time involved in both claims submission and adjudication."

                       Going Concern Doubt

Moore Stephens, P.C., in New York, raised substantial doubt
about Transax International Limited's ability to continue as a
going concern after auditing the Company's consolidated
financial statements for the year ended Dec. 31, 2005.  The
auditor pointed to the Company's losses, and working capital and
stockholders' deficiencies.

Based in Miami, Florida, Transax International Limited (OTCBB:
TNSX) -- http://www.transax.com/-- provides hospitals,
physicians and health insurance companies with innovative health
information management systems to manage coding, compliance,
abstracting and record management's processes.  The Company's
subsidiaries are: TDS Telecommunication Data Systems LTDA
provides those services in Brazil; Transax Australia Pty Ltd.
provides those services in Australia; and Medlink Technologies,
Inc., initiates research and development.




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


AC CP: Schedules July 26 Deadline for Proofs of Claim Filing
------------------------------------------------------------
AC CP 04-1 Funding 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.

AC CP'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 FIRST: Final Shareholders Meeting Is Scheduled for Aug. 7
------------------------------------------------------------
AI First Financing Company's shareholders will gather for a
final meeting on Aug. 7, 2006, at:

           Caledonian House
           69 Dr. Roy's Drive, George Town
           Grand Cayman, Cayman Islands

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

The liquidators can be reached at:

           David S. Walker
           Caledonian Bank & Trust Limited
           Caledonian House
           P.O. Box 1043, George Town
           Grand Cayman, Cayman Islands


AI SECOND: Shareholders Will Meet for a Final meeting on Aug. 7
---------------------------------------------------------------
AI Second Financing Company's shareholders will convene for a
final meeting on Aug. 7, 2006, at:

           Caledonian House
           69 Dr. Roy's Drive, George Town
           Grand Cayman, Cayman Islands

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

The liquidators can be reached at:

           David S. Walker
           Caledonian Bank & Trust Limited
           Caledonian House
           P.O. Box 1043, George Town
           Grand Cayman, Cayman Islands


CRANSTON STREET: Liquidator Presents Wind Up Accounts on July 27
----------------------------------------------------------------
Cranston Street 2002-1 Limited's shareholders will convene for a
final meeting on July 27, 2006, at:

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

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

The liquidators can be reached at:

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


DUPLEX FOURTH: Shareholders Meet for a Final Meeting on July 27
---------------------------------------------------------------
Duplex Fourth's shareholders will gather for a final meeting on
July 27, 2006, at:

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

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

The liquidators can be reached at:

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


PARALLAX LIQUID: Final Shareholders Meeting Is Set for July 24
--------------------------------------------------------------
Parallax Liquid Asia Fund, Ltd.'s shareholders will gather on
July 24, 2006, for a final general meeting at 10:00 a.m. at the
company's registered office.

Accounts of the company's liquidation process will be presented
during the meeting.  The shareholders will 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 liquidator can be reached at:

           CFS Liquidators Ltd.
           Attention: M. David Makin
           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


PCC HOLDINGS: Holding Final Shareholders Meeting on July 26
-----------------------------------------------------------
PCC Holdings Limited's final shareholders meeting will be
at 3:00 p.m. on July 26, 2006, at:

           KPMG, 27/F, Alexandra House
           18 Chater Road, Central, Hong Kong

These will be taken during the meeting:

   1) accounting of the liquidation process showing how the
      winding up has been conducted during the preceding year,

   2) requesting the members' approval of the liquidation fees
      incurred to date, approval of the liquidator's estimated
      costs to completion, and

   3) hearing any explanation that may be given by the
      liquidator.

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:

           Jacky Chung Wing Muk
           Edward Simon Middleton
           Attn: Christy Wong
           27/F, Alexandra House
           Chater Road, Central, Hong Kong
           Tel: (852) 3121-9888
           Fax: (852) 2869-7357


SOUNDVIEW US: Final Shareholders Meeting Is Set for July 27
-----------------------------------------------------------
Soundview U.S. Treasury 2-Year Note Fund Ltd.'s shareholders
will gather for a final meeting on July 27, 2006, at:

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

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

The liquidators can be reached at:

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


STBL FUNDING: Last Shareholders Meeting Is Scheduled for July 27
----------------------------------------------------------------
STBL Funding Corporation's shareholders will convene for a final
meeting on July 27, 2006, at:

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

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

The liquidators can be reached at:

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


WASHINGTON STREET: Holds Last Shareholders Meeting on July 27
-------------------------------------------------------------
Washington Street 2002-1 Limited's shareholders will convene for
a final meeting on July 27, 2006, at:

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

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

The liquidators can be reached at:

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




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


* COLOMBIA: Holds Bilateral Talks with Cuba
-------------------------------------------
Colombia launched negotiations with Cuba to expand economic,
technical, scientific, educative and cultural relations between
the countries, Prensa Latina reports.

Prensa Latina relates that Orlando Requejo, Cuba's vice minister
for Foreign Investment and Economic Collaboration launched the
7th Mixed Bilateral Economic, Technical, Scientific, Educative
and Cultural Cooperation on Thursday to evaluate and work on the
scientific-technical program covering actions including those
for:

  -- environment,
  -- public health,
  -- fishing,
  -- education,
  -- sports,
  -- and others.

The event, says Prensa Latina, could result to formulation of
strategies and regional actions to contribute to fight poverty,
inequality and other things in Latin America.

Prensa Latina states that the meeting would end on Friday with
the signing of the Educative-Cultural Program to be concluded in
2008.  The program is part of the Educative and Cultural
Cooperation Agreement that Cuba and Colombia signed almost 30
years ago.

Minister Rquejo told Prensa Latina that Cuba highly appreciates
relations with Colombia, and it will not spare efforts to widen
and diversify them.

Julio Londono Paredes -- the Colombian Ambassador to Havana
-- recognized the relation between the nations as an example of
cooperation, cordiality and understanding, with an almost
exceptional condition in the continent, Prensa Latina reports.

                        *    *    *

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


* COLOMBIA: Trade Surplus Reached US$163.6MM in First Quarter
-------------------------------------------------------------
According to the Colombia's Statistics Department --
Departamento Administrativo Nacional de Estadistica or DANE --
exports in the first quarter climbed 18% to US$5.45 billion and
imports moved 24% to US$5.29 billion, as compared to that of
2005; accounting for a trade surplus of US$163.3 million, Dow
Jones Newswires reports.

Dow Jones relates that statistics for the first quarter showed
increases on imports in these sectors:

   -- fuel and its sub-products, with 206%;
   -- vehicles with 48%;
   -- consumer goods with 27%; and
   -- capital goods with 26%.

Meanwhile, oil and coal commodities and revenue primarily from
manufactured goods boosted growth in exports for the quarter,
DANE told Dow Jones.

                        *    *    *

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


BAC SAN JOSE: Intends to Increase Loan Market Shares by 2009
------------------------------------------------------------
Costa Rica's Banco BAC San Jose plans to increase its individual
and corporate loan market shares by 2009, Business News Americas
reports, citing Mr. Gerardo Corrales, the executive vice
president of parent company Grupo Financiero BAC San Jose.

Mr. Corrales told BNamericas that BAC San Jose's market share is
still low, with up to 15% of the market in retail banking and
about 10% in the corporate segment.  According to Mr. Corrales,
the company aims to double those shares.

BNamericas relates that BAC San Jose has also a part in
Financiero's strategy of intensifying the group's regional
penetration.  Financiero reported assets of CRC577 billion as of
March 31.  Its main subsidiaries include:

  -- Banco BAC San Jose, and
  -- BAC Bahamas Bank.

Mr. Corrales explained to BNamericas, "In the past, every
Central America's country operated with a national perspective,
but now there are regional groups like ours that seek to provide
services from Guatemala to Panama.  Organic growth has been our
strategy of choice because we have been seeking to standardize
policies, procedures, information systems and cultures.  Now all
our companies have ISO 9001 certification and the same
organizational culture from Guatemala to Panama, which is a
competitive advantage."

However, Mr. Corrales told BNamericas that organic growth means
slower expansion than BAC's competitors.  Securing high levels
of profitability has been BAC's main goal.

The strategy may be changed after the arrival of the General
Electric's GE Consumer Finance unit, BNamericas relates, citing
Mr. Corrales.  General Electric had acquired in 2005 about
49.99% of BAC International Bank, Grupo Financiero's parent.

BAC San Jose, created in 1968, is a wholly owned unit of
financial group Corporacion Tenedora BAC San Jose aka Grupo
Financiero BAC San Jose.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 22, 2005,
Standard & Poor's Ratings Services assigned these ratings to
Banco BAC San Jose S.A.:

   -- Local currency credit rating:  BB+/Stable/B
   -- Foreign currency credit rating:  BB/Stable/B




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


* CUBA: Holds Talks with Colombia to Expand Trade Relations
-----------------------------------------------------------
Cuba launched negotiations with Colombia to expand economic,
technical, scientific, educative and cultural relations between
the countries, Prensa Latina reports.

Prensa Latina relates that Orlando Requejo, Cuba's vice minister
for Foreign Investment and Economic Collaboration launched the
7th Mixed Bilateral Economic, Technical, Scientific, Educative
and Cultural Cooperation on Thursday to evaluate and work on the
scientific-technical program covering actions including those
for:

  -- environment,
  -- public health,
  -- fishing,
  -- education,
  -- sports,
  -- and others.

The event, says Prensa Latina, could result to formulation of
strategies and regional actions to contribute to fight poverty,
inequality and other things in Latin America.

Prensa Latina states that the meeting would end on Friday with
the signing of the Educative-Cultural Program to be concluded in
2008.  The program is part of the Educative and Cultural
Cooperation Agreement that Cuba and Colombia signed almost 30
years ago.

Minister Rquejo told Prensa Latina that Cuba highly appreciates
relations with Colombia, and it will not spare efforts to widen
and diversify them.

Julio Londono Paredes -- the Colombian Ambassador to Havana --
recognized the relation between the nations as an example of
cooperation, cordiality and understanding, with an almost
exceptional condition in the continent, Prensa Latina reports.

                        *    *    *

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: Rum Experts to Present at International Gathering
---------------------------------------------------------
Rum experts from the Cuban Institute of Investigations on Cane
Sugar and Byproducts showcased their knowledge on rum quality
during the 9th International Congress on Cane Suger and
Byproducts, ACN, the Cuban news agency, reports.

According to ACN, the International Congress has been providing
scientific bases for the development of new technologies that
guarantee better exploitation of sugar cane.

CAN relates that the main topics discussed in the gathering
-- from June 19 to 22 -- were the influence of catalysts in the
production of high-quality rums and aguardientes.
Representatives from 11 Latin American and Caribbean nations
-- among them Dr. Peter Baron, the executive director of the
International Sugar Organization -- attended the gathering.

The Cuban experts showed the contrast of liquors aged in oak
barrels with those industrially synthesized, ACN states.

Another group of Cuban specialists discussed the application of
systems of analysis on risks and critical phases in the rum
production at the National Workshop on Ethanol Uses and
Production, which took place parallel to the Congress, ACN
relates.  The program included conferences on the treatment of
residues acquired from producing alcohol from sugar cane.

                        *    *    *

Moody's assigned these ratings on Cuba:

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




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


FALCONBRIDGE LTD: Offers CDN2.30 Per Share to Acquire Novicourt
---------------------------------------------------------------
Falconbridge Limited disclosed that it will offer to acquire by
way of takeover bid all of the outstanding common shares of its
subsidiary Novicourt Inc. that it does not already own which
amounts to 7,620,207 shares, at a cash offer price of CDN2.30
per Novicourt share.

Falconbridge presently holds approximately 62.1% of the
outstanding common shares of Novicourt.  The offer is subject to
customary conditions, including the condition, which may not be
waived by Falconbridge, that not less than 50% of the Novicourt
shares that are the subject of the offer be tendered to the bid.

The offer is an insider bid under applicable securities laws.
After Falconbridge advised the Novicourt Board of Directors on
March 15, 2006 of its intention to make such an offer, a special
committee comprised of independent directors of Novicourt was
formed to evaluate the Falconbridge proposal and supervise the
preparation of a formal valuation of Novicourt.  Upon receipt of
the Special Committee's recommendation and the formal valuation
and fairness opinion of Orion Securities Inc., the members of
the Board of Directors of Novicourt who are not related to
Falconbridge voted unanimously to recommend that Novicourt
shareholders tender their shares to the Falconbridge offer.
The Special Committee's review states that the Falconbridge
offer is fair, from a financial point of view, to the Novicourt
minority shareholders.  The take-over bid circular is expected
to be mailed to Novicourt's shareholders by June 30, 2006.

On successful completion of the bid, Falconbridge, if necessary,
intends to initiate a second-step acquisition transaction for
the remaining shares of Novicourt in order that Novicourt
continue as a wholly-owned private company subsidiary of
Falconbridge.

                     About Falconbridge

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

                        *    *    *

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


* DOMINICAN REPUBLIC: Free Trade Pact with US May Cut Prices
------------------------------------------------------------
The implementation of the Dominican Republic-Central America-
United States Free Trade Agreement or DR-CAFTA may result to
price cuts in the country, the DR1 Newsletter reports.

According to DR1, these products are expected to decrease up to
33%:

   -- processed fish,
   -- juices, and
   -- fruits.

DR1 states that fine cheeses and appliances will also have price
cuts.

These items, says DR1, are scheduled to undergo major price
decrease:

   -- baby food,
   -- wines,
   -- disposable diapers,
   -- shaving gear,
   -- irons,
   -- microwaves,
   -- stoves,
   -- fridges, and
   -- freezers.

Listin Diario relates that prices of tires, car radios, brake
parts and other items would also be reduced.

Car prices are expected to drop by 5% in 2007 and in five years,
they will be reduced by 20% or more, says DR1.

The DR-CAFTA's implementation was initially scheduled on Jan. 1
but was moved to July 1, 2006, which DR1 says is expected to be
postponed again.

                        *    *    *

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


PETROECUADOR: Unit's Production Decline Could Affect Revenue
------------------------------------------------------------
Petroecudor said in a statement that the decrease in the
production rate of its unit, Petroproduccion, could mean a
US$150 million decrease in revenue over the course of 2006.

Petroproduccion's output decreased 2.8% to 192,500 barrels of
oil a day (b/d) in the first two weeks of June, compared with
that of January 2006, Petroecuador said.

According to Business News Americas, the decline in
Petroproduccion's output indicates a lack of investment in
production equipment.

The Ecuadorean government's lack of investment in
Petroproduccion left it with no choice but to start operating
with used or standby parts to transport crude, Petroecuador
said.

Petroecuador, according to published reports, is faced with
cash-problems.  The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash because of
Petroecuador's alleged inefficiency and non-transparency in its
accounts.




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


* HAITI: Needs More International Aid, Says Guyana Minister
-----------------------------------------------------------
Haiti needs more international aid for its economic and social
recovery, Prensa Latina reports, citing Rudy Insanally -- the
foreign minister of Guyana -- during a meeting of the Rio Group.

The Rio Group -- founded in 1986 to consolidate political and
economic cooperation -- comprises of:

   -- Argentina,
   -- Belize,
   -- Bolivia,
   -- Brazil,
   -- Colombia,
   -- Costa Rica,
   -- Chile,
   -- Ecuador,
   -- El Salvador,
   -- Guatemala,
   -- Honduras,
   -- Mexico,
   -- Nicaragua,
   -- Panama,
   -- Paraguay,
   -- Peru,
   -- Dominican Republic,
   -- Uruguay,
   -- Venezuela, and
   -- Guyana.

Prensa Latina relates that Minister Insanally urged the United
Nations Stabilization Mission in Haiti or MINUSTAH to bring more
aid to the country, which he considers to be the poorest in
Latin America.

Minister Insanally told the deputy foreign ministers and foreign
policy directors from the member countries of the Rio Group that
both the amount of help as well as the mandate of MINUSTAH must
be expanded, Prensa Latina states.

According to Prensa Latina, Minister Insanally said that a new
working period might be aimed at:

   -- increasing development and,
   -- consolidating the achievements in political stabilization.

There were predictions that MINUSTAH will conclude its work in
August.

"We must remain vigilant as a group to guarantee that the
financial aid promised by the international community to support
Haiti's reconstruction be sent rapidly," the minister told
Prensa Latina.

                        *    *    *

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




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


DIGICEL LIMITED: Launches Emergency Texting Service
---------------------------------------------------
Digicel Limited, in collaboration with the Jamaica Constabulary
Force of JCF, launched on June 21 Emergency Texting Service
which is aimed at improving intelligence gathering and fighting
of crimes, the Jamaica Gleaner reports.

According to The Gleaner, the initiative -- launched at the
Police Commissioner's Office on Old Hope Road, St. Andrew --
will allow clients of Digicel, Cable and Wireless, and MiPhone
to text 119 from their phones to contact the police for just
US$1.

Digicel Limted was worried about the level of crime in society
and saw the initiative as a way of helping to solve the problem,
Wayne Miller, the company's marketing communications manager,
told The Gleaner.  He said, "If we are to make inroads into
crime, members of the public need quick access to the crime
fighters and the 119 texting service will allow them to do just
that."

The new service would be one way of improving the capability of
the police force as the times called for new and ingenious ways
of information gathering, The Gleaner relates, citing Lucius
Thomas, the Commissioner of Police.

Mr. Thomas told The Gleaner, "This bit of technology will
enhance the capacity of the intelligence area, we are speaking
here of an intelligence-driven organization (and) we speak of
people having trust and confidence in the information that is
passed on."

Mr. Thomas asked the citizens to make use of the new system to
relay information to the police, The Gleaner states.

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

                        *    *    *

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


KAISER: Law Debenture Withdraws Holder Affidavits Protest
---------------------------------------------------------
Law Debenture Trust Company of New York withdrew its objection
to the stipulated Stay Order with respect to the affidavits of
18 holders of the Liquidating Debtors' 10-7/8% Series B Notes, 9
holders of 10-7/8% Series D Notes, and 20 holders of Gramercy
Bonds.

A list of the affidavits is available for free at:

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

Liverpool Limited Partnership has joined Law Debenture's
objection to the Stay Order.

Francis A. Monaco, Esq., at Monzack and Monaco, P.A., in
Wilmington, Delaware, relates that the withdrawal is without
prejudice to Law Debenture and Liverpool's objection to the
other Holder Affidavits, as to which Objection remains pending
and unaffected.

As reported in the Troubled Company Reporter on June 6, 2006,
Judge Fitzgerald has approved a stipulated Stay Order, which
permitted the distribution of "Funds and Stock Subject to
Appeal" to certain holders of the Kaiser Aluminum Corporation
and its debtor-affiliates' senior notes -- 10-7/8% Notes, 9-7/8%
Notes, and 7-3/4% SWD Revenue Bonds.

To distribute the Funds and Stock, the Stay Order requires the
holders of the Senior Notes to submit an affidavit providing a
promise to return monies they received upon a reversal of the
Guaranty Decision on appeal.

Joseph J. Bodnar. Esq., at Monzack and Monaco, P.A., in
Wilmington, Delaware, relates that approximately 400 holder
affidavits were delivered to Law Debenture Trust Company on
April 25, 2006.

However, Mr. Bodnar says, several of the Holder Affidavits are
defective because of holders' failure to:

    (1) sign the affidavit or sign on behalf of the correct
        noteholder;

    (2) sign the verification or identify the signer of the
        verification;

    (3) obtain the NYSE Medallion Stamp Signature;

    (4) indicate the dollar amount of the noteholder's holdings;

    (5) include all pages of the Holder Affidavit;

    (6) state the noteholder's net worth or the net worth stated
        was insufficient under the terms of the Holder
        Affidavit; or

    (7) provide the noteholder's address, tax identification
        number, and complete broker information.

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 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.
(Kaiser Bankruptcy News, Issue No. 98; Bankruptcy Creditors'
Service, Inc., 609/392-0900)




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


CASABLANCA TRUST: Moody's Rates MXN300MM Sr. Secured Loan at B1
---------------------------------------------------------------
Moody's de Mexico assigned its Baa2.mx and B1 ratings to
Casablanca Trust's proposed MXN300 million senior secured
securities.  Moody's also assigned a Baa2.mx and a B1 corporate
family rating to Casablanca Trust.  The rating outlook is
stable.  This is the first time Moody's has rated Casablanca
Trust.

Casablanca Trust, which is a Fideicomiso de Infraestructura y
Bienes Raices or FIBRA, or Mexican REIT, will be created when
three subsidiaries of Grupo Propulsa, S.A. de C.V., contribute
its main real estate properties consisting of five private
sports clubs in Mexico, into it.  Casablanca Trust will enter
into a long-term lease agreement with Impulsora y Operadora de
Clubes, S.A. de C.V. with the latter as the lessee.  A FIBRA is
a trust or a company in Mexico that complies with certain
restrictions under the Mexican tax law in order to be able to
benefit from certain tax incentives recently approved by the
Mexican Congress.

Moody's Baa2.mx national scale senior secured securities, and
corporate family ratings, reflect Casablanca Trust's good
profitability, strong management skill base in the sport club
business, established market position in sports clubs, lack of
well-established competitors of comparable quality, and high
appraised value of the properties that support the proposed
securities issuance.   Furthermore, the clubs' established,
infill locations should make the properties attractive for other
uses.

The company's primary credit challenges are that it operates in
a narrow market, the properties are few in number with
considerable asset and geographic concentration, and it is
unlikely there will be significant growth in the property
portfolio, as most of the proceeds from the securities issuance
will be used to buy and develop other sport clubs, which may or
may not become part of the Casablanca Trust. In addition, the
market for this type of transaction is untested.

The ratings also incorporate these six key factors in the
structure of the securities:

  -- The proposed securities will be backed by the sports club
     real estate (to be revalued annually), and investors will
     receive a dividend based on the TIIE rate plus a spread
     (with a floor of 9% and a ceiling of 18%) based on the
     assumed total issuance of MXN300 million;

  -- The securities will have a 24.5 year term;

  -- No interest holder in the Casablanca Trust gets paid
     before the securities holders have received their
     dividends and other distributions under the trust
     agreement; there can be no other debt at the trust level
     or in the clubs;

  -- Should a property be sold before the maturity of the
     securities, the securities holders will have the right
     to veto such transaction, and if sold, the right to
     receive 43.11% of the proceeds of such sale;

  -- In case of default under the trust, the trustee will act
     under an irrevocable mandate to auction the properties
     and distribute to the securities holders the greater of
     the face value of their securities or 43.11% of the
     proceeds from the auction; and

  -- At maturity of the trust, if the properties have not
     been sold, securities holders will receive co-ownership
     of the real estate representing 43.11% of the properties,
     or will have the right to give up such right, and receive
     in exchange an amount equal or greater to the face value
     of their securities.

Casablanca Trust will also be required to comply with these five
terms:

   -- Provide annual financial statements prepared by an
      independent auditor within 120 days of year end;

   -- Provide company prepared quarterly financial statements
      signed by the General Director;

   -- Within the first four months of the fiscal year end,
      provide a budget for the coming year, including
      financial projections with expected income and
      expenses;

   -- Maintain minimum EBITDAR/Dividend coverage of 1.35x for
      2006-2007; thereafter minimum coverage of 1.50x; and

   -- Maintain maximum Securities Face Value/Market Value of
      Assets of 50%.

The stable rating outlook reflects Moody's expectation that
Casablanca Trust will maintain stable earnings and conservative
leverage.  The securities' covenants prohibit the incurrence of
additional debt.

Positive ratings movement would reflect:

   -- fixed charge coverage approaching 3x (defined as
      EBITDAR/Interest Expense + Dividends Paid);

   -- solid operations with NOI growth closer to the
      mid-teens, a decrease in leverage closer to 25%;

   -- portfolio growth by at least 30% with more geographic
      diversity; and

   -- an increase in membership bringing average capacity to
      80%.

Negative ratings movement would reflect:

   -- significant problems with any one of the clubs,

   -- a decline in membership and average capacity approaching
      50%,

   -- fixed charge coverage below 1.5x, or

   -- leverage greater than 50%.

Casablanca Trust is represented by its trustee Multivalores Casa
de Bolsa, S.A. de C.V., Multivalores Grupo Financiero.
Casablanca Trust and the trustee are acting together as a single
credit entity pursuant to a proposed public offering of
Certificados de Participación Ordinarios No Amortizables or the
proposed senior secured securities.

Grupo Propulsa, S. A. de C.V. is a private Mexican holding
company formed on 1981, whose main activity is the development
and creation of new companies, as well as the acquisition of
shares of other companies. Grupo Propulsa has various
subsidiaries separated into three main divisions:

   -- Sports Clubs,
   -- Real Estate and
   -- Services.

The subsidiaries are primarily involved in the construction,
promotion and operation of private sports clubs.  Other business
activities include hotels, land reserves and a property
service/maintenance company.

Founded in 1973, Clubes Casablanca consists of seven sports
clubs from which the five clubs contributed to the trust are
located in the Mexico City Metropolitan Area-Atizapan, Satelite,
Santa Monica, Lomas Verdes and San Angel.  The sports clubs vary
in size, but all have tennis courts, swimming pools, soccer
fields, racquetball courts, a fitness center, track, play area
for children, weight rooms, locker rooms, steam rooms and rooms
for fitness classes.  They also have massage rooms, snack bars,
pro shops and cafeterias/snack bars.  All five club properties
have parking, and four clubs offer valet parking.

A FIBRA is a Mexican trust that holds real estate and other
rights derived from real estate (such as leasing contracts and
insurance, as well as right to receive sales proceeds).
Regarding the capital structure, FIBRAs can be funded via debt
or through Certificados de Participación or CP (equivalent to
the equity share of a trust).

Under Mexican Tax Law, to be a FIBRA or a trust subject to
special tax treatment under articles 223 and 224 of Mexican
income tax law (Ley del Impuesto Sobre la Renta), a trust must
meet the following conditions:

   1) It must be incorporated under Mexican law;

   2) Its purpose must be the acquisition or construction of
      real estate that will be used for leasing and later sale
      and has to be leased for at least a year before its sale;
      as well as the acquisition of rights to receive revenues
      coming from the leasing of the real estate;

   3) At least 70% of the FIBRA's assets must be represented
      by real estate that fulfill the preceding condition and
      the remaining can be government securities or debt and
      mutual funds (to a limit of 30%); and

   4) At least 28% of its taxable income is paid to its
      certificate holders.


DELTA AIR: Will Provide Los Angeles-Puerto Vallarta Flights
-----------------------------------------------------------
The U.S. Transportation Department selected Delta Air Lines to
provide new flights between United States' Los Angeles and
Puerto Vallarta, Mexico, Reuters reports.

Reuters relates that Delta, along with JetBlue Airways and
Frontier Airlines were tentatively selected to provide new
service between the US and Mexico.  The new flights were due to
the amendments to the US-Mexico air services accord, which was
signed in December 2005.

Frontier will provide flights between Los Angeles and San Jose
del Cabo while JetBlue will offer a New York-Cancun service,
Reuters states.

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


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

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

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

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

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

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

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

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

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

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

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

                      About El Pollo Loco

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

                        *    *    *

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

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

                        *    *    *

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


FORD MOTOR: Unveils 2007 Lineup Amidst Declining SUV Sales
----------------------------------------------------------
Ford Motor Co. unveiled its 2007 lineup of new crossover and
all-wheel-drive cars to attract new customers and halt declining
sales, reports said.

Ford's 2007 lineup includes:

   -- new five-passenger Edge crossover vehicle, to be built at
      the Company's Oakville plant, and is due in showrooms in
      November 2006;

   -- new Lincoln MKX;

   -- new Ford Shelby GT, a Mustang powered by a 500 horsepower
      V-8, goes on sale in June;

   -- redesigned Ford Expedition SUV, the Expedition EL model
      with more storage capacity, and Lincoln Navigator SUVs
      will go on sale in Septermer 2006, Navigator L will
      follow; and

   -- all-wheel-drive in the Ford Fusion, Mercury Milan and
      Lincoln MKZ models.

Crossover vehicles are sport utility vehicles but smaller in
size.

                    Declining SUV Sales

Unnamed Ford officials said that the Company might not be able
to earn profit in North America by 2008 because of declining SUV
sales and high gasoline prices, reports said.

Those officials said that General Motors Corp. and Toyota Motor
Corp. may erode sales of Ford's pickup trucks, Bloomberg
reported.

J.D. Power and Associates reported that consumer demand for new
midsize SUVs continued to slow, Wall Street Journal said.  The
segment, made up of traditional midsize SUVs, currently records
the second-longest length of time on dealership lots among the
26 segments tracked by auto information company.

                      About Ford Motor

Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- is the world's third largest automobile
manufacturer.  The Company manufactures and distributes
automobiles in 200 markets across six continents.  Ford Motor has
two assembly plants and an engine plant in Mexico.  With more than
324,000 employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury and Volvo.  Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.

                        *    *    *

As reported in the Troubled Company Reporter on June 12, 2006,
Fitch downgraded long-term ratings for both Ford Motor Company
and Ford Motor Credit Company with a Negative Rating Outlook,
and assigned these Recovery Ratings:

  Ford:

    -- Issuer Default Rating to 'B+' from 'BB'
    -- Senior unsecured to 'BB-/RR3' from 'BB'

  FMCC:

    -- Issuer Default Rating to 'B+' from 'BB'

Fitch also affirms FMCC's senior unsecured debt at 'BB/RR2'.

As reported in the Troubled Company Reporter on May 31, 2006,
Standard & Poor's Ratings Services placed its ratings on nine
U.S. single-issue synthetic ABS transactions related to Ford
Motor Co. (Ford; BB-/Watch Neg/B-2) and Ford Motor Credit Co.
(Ford Credit; BB-/Watch Neg/B-2) on CreditWatch with negative
implications.

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

As reported in the Troubled Company Reporter on Jan. 13, 2006,
Moody's Investors Service lowered its ratings on Ford Motor
Company (Corporate Family and long-term to Ba3 from Ba1).  The
rating outlook for Ford Motor is negative.


JETBLUE AIRWAYS: Will Launch New York-Cancun Flights
----------------------------------------------------
The U.S. Transportation Department selected JetBlue Airways to
provide new flights between New York, USA, and Cancun, Mexico,
Reuters reports.

Reuters relates that JetBlue, along with Delta Air Lines and
Frontier Airlines were tentatively selected to provide new
service between the US and Mexico.  The new flights were due to
the amendments to the US-Mexico air services accord, which was
signed in December 2005.

Frontier will provide flights between Los Angeles and San Jose
del Cabo while Delta will offer a Los Angeles-Puerto Vallarta
service, Reuters states.

Based in Forest Hills, New York, JetBlue Airways Corporation
(Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger
air transportation services primarily in the United States.  As
of Feb. 14, 2006, the Company operated approximately 369 daily
flights serving 34 destinations in 15 states, Puerto Rico, the
Dominican Republic, and the Bahamas.  The Company also provides
in-flight entertainment systems for commercial aircraft,
including live in-seat satellite television, digital satellite
radio, wireless aircraft data link service, and cabin
surveillance systems and Internet services, through its wholly
owned subsidiary, LiveTV, LLC.


* MEXICO: Paying US$7 Billion of Debts with World Bank & IDB
------------------------------------------------------------
Mexico will pay back ahead of schedule about US$7 billion of
debts with the World Bank and Inter-American Development Bank,
Bloomberg News reports.  The country has an outstanding
US$13.4-billion debt with WB and IAB.

According to Mexico's deputy finance minister Alonso Garcia
Tames, the government will sell floating-rate peso-denominated
bonds in the local market to raise funds needed to buy the
dollar-denominated debts, Bloomberg says.

"They've accumulated a lot of reserves and there's a cost to
keep them," John Welch, sovereign debt strategist for Latin
America at Lehman Brothers Inc. in New York, told Bloomberg.
"This is good news."

Emerging Latin American economies like Brazil, Argentina and
Venezuela have also paid foreign liabilities ahead of time,
taking advantage of growth in export revenues.

The buy back of foreign debts is aimed at reducing vulnerability
of public finances to adverse shocks in international financial
markets.

                        *    *    *

As reported in the Troubled Company Reporter on April 17, 2006,
Standard & Poor's Ratings Services placed an mxBB+ long-term
rating with stable outlook on the state of Mexico.




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


* NICARAGUA: Inks Free Trade Agreement with Taiwan
--------------------------------------------------
Alejandro Jose Arguello Choiseul -- Minister of Development,
Industry and Commerce Nicaragua -- signed a free trade agreement
or FTA with Hwang Ing-san, Taiwan's Minister of Economic
Affairs, on June 16 in Taipei, Taiwan Journal reports.

Taiwan Journal relates that the countries' parliaments still
have to approve the agreement, which is expected to be
implemented at the start of 2007.

According to Taiwan Journal, the FTA is aimed at enhancing
bilateral trade and economic cooperation between Nicaragua and
Taiwan.

Citing Minister Hwang during the signing ceremony, Taiwan
Journal states that the start of the 21st century is
characterized by economic globalization and trade
liberalization, and every nation will need to get in line with
the global trends.  According to the minister, the countries --
through the removal of the trade barriers under the framework of
FTA -- will be able to:

   -- complement each other's economies;
   -- boost cooperation in terms of:

      * trade,
      *investment, and
      *technology; and

   -- multiply business opportunities.

The two-way trade between Taiwan and Nicaragua reached US$46.27
million in 2005, consisting about US$39.67 million exports and
US$6.60 million imports, Taiwan's Bureau of Foreign Trade told
Taiwan Journal.  With a 5.2% boost on the US$43.99 million of
2004, Nicaragua has become Taiwan's 99th largest trade partner.

Taiwan Journal states that most of Taiwan's exports to Nicaragua
include:

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

According to Taiwan Journal, Nicaragua exports to Taiwan:

    -- frozen beef,
    -- coffee,
    -- lumber,
    -- mechanical components, and
    -- scrap metals.

When the new agreement is implemented, Nicaragua expects Taiwan
to deliver more consumer industrial products to its local
markets and hopes to sell more farm goods to Taiwan, Taiwan
Journal states, citing Minister Arguello.

Chen Ruey-long, Taiwan's Vice Minister of Economic Affairs --
told Taiwan Journal that both export and import volumes are
expected to increase.

Citing the terms of the FTA, Minister Ruey-long, told Taiwan
Journal that Nicaragua will offer duty-free treatment to 3,374
categories -- about 51.1% -- of products shipped from Taiwan,
while Taiwan offers zero-tariff treatment to 5,797 categories --
about 65.6% -- of imports from Nicaragua.  These figures will
increase to 95.1% and 97.3%, respectively, within 15 years of
FTA, as the range of categories are extended to sectors:

  -- industrial,
  -- agricultural,
  -- financial,
  -- communication,
  -- environmental,
  -- labor,
  -- intellectual property, and
  -- investment.

                        *    *    *

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


PARMALAT PARAGUAY: Stipulation Allows Citibank to Pursue Suit
-------------------------------------------------------------
Citibank, N.A., and Citibank, N.A. International Banking
Facility, on one hand, and Dr. Enrico Bondi, extraordinary
administrator of Parmalat Finanziaria S.p.A. and certain of its
affiliates and CEO of Reorganized Parmalat, on the other hand,
entered into an agreement relating to a preliminary injunction
order issued by the U.S. Bankruptcy Court for the Southern
District of New York.

Accordingly, the Parties agree in a Court-approved stipulation
that:

   a. at 5:00 p.m. New York time on July 31, 2006, the
      Preliminary Injunction Order will be automatically be
      deemed modified to permit Citibank to take any action to
      enforce its rights against Parmalat Paraguay or otherwise
      with respect to the obligations of Parmalat Paraguay to
      Citibank in Paraguay;

   b. during the Standstill Period, Reorganized Parmalat will
      provide Citibank, concerning Parmalat Paraguay and its
      subsidiaries, with:

         -- access to company management;

         -- access to their Paraguayan advisers;

         -- access to their books and records;

         -- copies of and access to forecasts, budgets,
            restructuring plans, term sheets relating to a sale
            or other disposition of the assets, purchase and
            sale agreements, and correspondence relating to a
            sale or other disposition of assets or the
            restructuring of indebtedness; and

   c. during the Standstill Period, Reorganized Parmalat will
      not sell, transfer, encumber or incur new debt on any of
      the assets or shares of any of the Parmalat Paraguay
      Entities without Citibank's prior written consent.

The Standstill Period may be further extended upon the parties'
written agreement.

                       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)




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


* PERU: Congress Commission Asks to Renegotiate Camisea Contract
----------------------------------------------------------------
After five incidents of leaks in the Camisea project's pipeline
used to transport natural gas and liquids from the jungle to the
coast, a congressional commission called for a renegotiation of
the contracts as Peruvian government officials failed to
sufficiently oversee the progress in the natural gas project,
Dow Jones Newswires reports.

As previously reported, the Camisea project started in mid-2004
and had an investment of about US$1.6 billion for its
development. Its upstream stage is operated by Pluspetrol Peru
in a consortium with:

   -- U.S. Hunt Oil;
   -- S.K.;
   -- Tecpetrol;
   -- Sonatrach; and
   -- Repsol YPF.

The congressional commission sought answers and solutions to the
impact of the leaks and concluded that it "recommends the
renegotiation of the contract with Pluspetrol and if necessary
to extend it to the group holding the transport concession,"
Congress told reporters.

Congress claimed that a "systematic omission" was present on the
part of officials from Osinerg, the Peruvian energy regulator,
so that they will not be directly involved in the supervision of
the project, Dow Jones says.

In connection with the claim, Congress recommends that Alfredo
Dammert be removed from office as chief of Osinerg and to
immediately reorganize the energy regulator, Dow Jones relates.

According to Dow Jones, Congress also blamed Transportadora de
Gas del Peru aka TGP for the design of the transport system.  In
response to this, Rafael Guarderas, TGP's institutional
relations manager, told CPN radio that the company is ready to
talk with the government about the contract but could not assure
that a negotiation would be met.

"What I can say is that if the government calls us we will sit
down and talk with them, within a framework of respect for
private investment and mutual agreement," Mr. Guarderas told
CPN.

The reports will be sent to the Attorney General for
verification of any criminal responsibility, Dow Jones says.

According to president-elect Alan Garcia, any changes in the
contract would undergo negotiation and would not be imposed by
the government, Dow Jones says.


                        *    *    *

Fitch Ratings assigned these ratings on Peru:

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




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


ADELPHIA COMMS: Can Restructure Time Warner & Comcast Asset Sale
----------------------------------------------------------------
The Honorable Robert D. Gerber of the U.S. Bankruptcy Court for
the Southern District of New York gave Adelphia Communications
Corporation and its debtor-affiliates permission to restructure
the sale of substantially all of their assets to Time Warner
Cable and a portion of its asset sale to Comcast Corporation

According to Judge Gerber, the Debtors have demonstrated a
compelling and sound business justification for the Additional
Buyer Provisions set forth in the Amended Purchase Agreements.

The amended sale documents are:

    -- Amendment No. 2 to Asset Purchase Agreement Between
       Adelphia Communications Corporation and Time Warner NY
       Cable LLC, a full-text copy of which is available for
       free at http://ResearchArchives.com/t/s?b74

    -- Amendment No. 2 to Asset Purchase Agreement Between
       Adelphia Communications Corporation and Comcast
       Corporation.  A full-text copy of the amendments is
       available for free at http://ResearchArchives.com/t/s?b75

    -- a draft of a registration rights agreement, a full-text
       copy of which is available for free at:

                 http://ResearchArchives.com/t/s?b76

    -- a draft of a letter agreement with Comcast Corporation.
       A copy of the letter is available for free at:

                 http://ResearchArchives.com/t/s?b77

Among others, the Amended Purchase Agreements provide that in
the event that:

    (i) prior to the earlier of:

        (x) July 31, 2006 and

        (y) the entry of both the 363 Order and the Transaction
            Order,

        ACOM does not deliver a written notice to Time Warner
        and Comcast that it will not pursue the 363 Sale,

   (ii) neither the Time Warner Agreement nor the Comcast
        Purchase Agreement is terminated by ACOM or Time Warner
        or prior to September 1, 2006; and

  (iii) the Closing does not occur on or prior to
        Aug. 31, 2006,

then:

    (1) the Purchase Price will be reduced by US$352,850,000 by
        Time Warner and by US$87,500,000 by Comcast; and

    (2) in the event that the Agreements are terminated, ACOM
        will pay, by wire transfer of immediately available
        funds, a US$352,850,000 termination fee to Time Warner
        and a US$87,500,000 termination fee to Comcast.

ACOM is not allowed to terminate the Amended Purchase Agreements
prior to September 1, 2006.

Based in Coudersport, Pa., Adelphia Communications Corporation
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth-largest
cable television company in the country.  Adelphia serves
customers in 30 states and Puerto Rico, and offers analog and
digital video services, high-speed Internet access and other
advanced services over its broadband networks.  The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002.  Those cases
are jointly administered under case number 02-41729.  Willkie
Farr & Gallagher represents the ACOM Debtors.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.  (Adelphia Bankruptcy News, Issue Nos. 136
& 137; Bankruptcy Creditors' Service, Inc., 215/945-7000)


ADELPHIA COMMS: Inks Stipulation on Bank Lenders' Distributions
---------------------------------------------------------------
Adelphia Communications Corporation and its debtor-affiliates
amended their stipulation with:

    -- the Ad Hoc Committee Of FrontierVision Noteholders
    -- the Ad Hoc Committee Of Acc Senior Noteholders
    -- the Ad Hoc Committee Of Arahova Noteholders
    -- W.R. Huff Asset Management Co., LLC, and
    -- Ft. Myers Noteholders,

to provide, among others, that other than as provided for in the
Second Modified Fourth Amended Joint Plan of Reorganization for
the Century-TCI Debtors and the Parnassos Debtors with respect
to the pending motion of the Creditors' Committee to holdback
distributions to the bank lenders and the Bank Lender Avoidance
Complaint, no party-in-interest will have the right or be
permitted to seek to disgorge or holdback payments made to
creditors of the Century-TCI Debtors and Parnassos Debtors.

A full-text copy of the Amended Stipulation is available for
free at http://bankrupt.com/misc/adelphia_amendedJVstip.pdf

                Objections to Stipulation

(1) Calyon New York Branch

Calyon, a creditor of each of the Century-TCI Debtors and the
Parnassos Debtors, notes that by the Stipulation, bondholders
involved in the litigation of the Order in Aid Issues intend to:

    (a) have the Court, in advance of evidentiary showing, find
        and conclude that the Joint Venture Plan is feasible
        with respect to payments to the creditors of the JV
        Debtors as provided for in the Joint Venture Plan;

    (b) cause the waiver by "all parties" of any objection to
        "the findings of fact, conclusions of law or objections
        to confirmation of the Joint Venture Plan" in conflict
        with the requested finding and conclusion;

    (c) preclude the presentation by any "party in interest" of
        evidence or testimony, or to take any discovery, with
        respect to an Order In Aid Issue;

    (d) deem inadmissible in any future proceeding in the
        Debtors' Chapter 11 cases any evidence introduced by the
        Debtors (including non-party Debtors) to demonstrate
        that the Joint Venture Plan should be confirmed or by
        the non-party bondholders in response to that evidence;
        and

    (e) create the fiction of effecting distributions and
        leaving unimpaired the equity interests under the Joint
        Venture Plan while determining in the future allocation
        of value issues as if the Joint Venture Plan had never
        been consummated.

Andrew P. Brozman, Esq., at Clifford Chance US LLP, in New York,
notes that these non-parties to the JV Debtor confirmation
process "seek to effect this extraordinary and blanket scripting
of that process and curtailment of basic rights of actual JV
Debtor creditors to appear and to be heard without so much as a
motion, an articulated written rationale, or the support of
law."

"Should the strangers to the JV Debtor confirmation process wish
to ensure that the rights in the 'MIA Process' as among
themselves will not be affected by the confirmation of the Joint
Venture Plan, we would find no need to object.  However, once
non-parties purport to define for actual parties to the JV
Debtor estates what they may or may not do in the prosecution or
defense of their rights and to define for the Court what it may
and what it may not find and conclude on the basis of an
undeveloped record, they overstep both the limits of their
entitlements and of the Court's power to entertain them," Mr.
Brozman asserts.

Calyon contends that it has a clear right to appear and to be
heard on all issues concerning the confirmation of the Joint
Venture Plan.  Moreover, Calyon points out, it has the right to:

    * object to confirmation on any ground cognizable by law or
      predicated on relevant fact;

    * offer for introduction into evidence testimony and other
      information that it believes germane to the reasonable
      advocacy of its objections;

    * pursue contested matter discovery in pursuit of
      information likely to lead to admissible evidence;

    * findings of fact and conclusions of law reflective of the
      record of the confirmation proceedings and as reasonably
      found and determined by the Court; and

    * rely on the confirmation order containing those findings
      and conclusions as res judicata as to issues addressed or
      that could have been addressed in the process leading to
      the entry of that order.

Calyon complains that the Stipulation vastly overreaches to the
extent:

    (i) it purports to affect rights of third parties who are
        actual parties in interest to the JV Debtors' chapter 11
        cases;

   (ii) it purports to define the legal effects of a prospective
        confirmation order on the rights of parties to the
        process resulting in the entry of that order; and,
        finally

  (iii) it would presume the Court to make findings and
        conclusions on a record yet to be revealed, even
        assuming these strangers would have standing to do so.

Accordingly, Calyon asks the Court to deny approval of the
Stipulation in its present form.

(2) The Bank of Nova Scotia

The Bank of Nova Scotia does not object to entry of the
Stipulation to the extent that it memorializes the agreement of
the parties thereto to stand down from the ongoing intercompany
claims litigation in connection with confirmation of the Joint
Venture Plan.

However, BNS objects to the stipulation insofar as it attempts
to bind, restrict or otherwise foreclose any non-consenting
party, including BNS, from exercising its rights to object or
otherwise create an evidentiary record with respect to
feasibility of the Joint Venture Plan.

"The Court's findings of fact and conclusions of law vis-a-vis
non-consenting parties must be based on the evidentiary and
legal record before it.  They remain at issue and cannot be pre-
determined," Richard Stern, Esq., at Luskin, Stern & Eisler LLP,
in New York, asserts.

In short, Mr. Stern says, BNS, as a non-consenting party, must
be given full rights to object to the Joint Venture Plan upon a
developed evidentiary record.

Thus, BNS asks the Court to deny the Stipulation to the extent
that it restricts its rights and the rights of other Parnassos
lenders to object to the feasibility of the Joint Venture Plan.

(3) Citibank

Citibank, N.A., as administrative agent for the Century-TCI
Lenders under the Credit Agreement dated as of December 3, 1999,
among Century-TCI California, L.P., as the Borrower and certain
lenders, notes that the Amended Stipulation, as presented,
purports to impair or eliminate the ability of the Century-TCI
Administrative Agent, the Century-TCI Lenders and other
parties-in-interest who are not signatories to the Amended
Stipulation.

The Amended Stipulation presents a fundamental violation of due
process, and is unauthorized by any provision of the Bankruptcy
Code or the Bankruptcy Rules, Luc A. Despins, Esq., at Milbank,
Tweed, Hadley & McCloy LLP, in New York, asserts.  "To allow the
Debtors to stipulate away their statutory burden by agreement
with entities not even creditors of the affected estates makes a
mockery of the bankruptcy process.  The Debtors have cited no
statute, rule or case justifying such a perversion, and
therefore the Court should deny entry of the Amended Stipulation
unless it is modified to provide that it binds only the
signatories thereto."

(4) Bank of America

Bank of America, N.A., as a syndicate member of the Century-TCI
Credit Facility and Parnassos Credit Facility, joins in the
Objections filed by Citibank, Bank of Nova Scotia, and Calyon
New York Branch.

(5) Ad Hoc Committee of Non-Agent Secured Lenders

The Non-Agent Committee joins in the arguments and assertions
set forth in Calyon's Objection.

The Non-Agent Committee further objects to the Stipulation to
the extent that its terms are vague and ambiguous.  Moreover,
the Non-Agent Committee says it was not given sufficient notice
to assess the Stipulation's potential impact on the Non-Agent
Committee's rights with respect to confirmation of the Joint
Venture Plan.

The Non-Agent Committee reserves any and all rights to be heard
before the Court with respect to the Stipulation.

Based in Coudersport, Pa., Adelphia Communications Corporation
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth-largest
cable television company in the country.  Adelphia serves
customers in 30 states and Puerto Rico, and offers analog and
digital video services, high-speed Internet access and other
advanced services over its broadband networks.  The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002.  Those cases
are jointly administered under case number 02-41729.  Willkie
Farr & Gallagher represents the ACOM Debtors.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.  (Adelphia Bankruptcy News, Issue Nos. 136
& 137; Bankruptcy Creditors' Service, Inc., 215/945-7000)


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

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

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

                     About Doral Financial

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

                        *    *    *

As reported in the Troubled Company Reporter on June 13, 2006,
Standard & Poor's Ratings Services lowered its long-term ratings
on Doral Financial Corp. (NYSE: DRL), including the company's
long-term counterparty rating, to 'B+' from 'BB-'.  At the same
time, Doral's outlook remains on CreditWatch with negative
implications.


KOOSAHREM CORP: Moody's Rates US$245-M First Lien Loan at B1
------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to Koosharem
Corporation's proposed US$245 million first lien credit facility
and a Caa1 rating to its proposed US$55 million second lien term
loan, which are intended to replace its proposed US$300 million
first lien senior secured credit facility (rated B2 on June 13,
2006) that was cancelled. Simultaneously, Moody's withdrew the
B2 rating assigned to the proposed US$300 million first lien
credit facility.  Pro-forma for the aforementioned capital mix
changes, Moody's affirmed the B2 corporate family rating.  The
ratings outlook is stable.

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

The acquisition of Remedy together with the refinancing of
Select's existing debt is expected to be financed with a US$160
million first lien term loan, US$55 million second lien term
loan, approximately US$24 million of borrowings under a proposed
US$85 million revolving credit facility and US$27.9 million of
unrestricted cash on hand.

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

Moody's assigned these ratings:

   -- US$85 million 5-year senior secured revolving credit
      facility: B1;

   -- US$160 million 6-year first lien term loan: B1; and

   -- US$55 million 7-year second lien term loan: Caa1.

This rating was affirmed:

   -- corporate family rating: B2.

These ratings were withdrawn:

   -- US$85 million 5-year senior secured revolving credit
      facility: B2; and

   -- US$215 million 6-year senior secured term loan: B, B2.

The ratings outlook is stable.

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

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

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

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

Select is a privately-held staffing services business with over
50 offices throughout California, Arizona, Florida, New Jersey
and Texas. Select offers temporary, temp-to-hire, and direct
placement positions primarily in the clerical, accounting,
customer service, mortgage, industrial and technical fields.
Pro forma for the acquisition of Remedy, 2005 revenues were
about US$1 billion.  The combined company expects to provide its
services in 35 states, Puerto Rico and Canada, through a network
of 220 offices (122 owned and 98 franchises).


MUSICLAND HOLDING: Posts US$11.1 Million Net Loss in May 2006
-------------------------------------------------------------

                       Musicland Holding Corp.
                      Consolidated Balance Sheet
                          As of May 31, 2006
                               (US$)

ASSETS
Current Assets
   Cash                                             $56,112,000
   Inventories                                                0
   Other
      Final Installment due to Transworld            11,564,000
      Expense Reimbursement from Transworld             291,000
      Receivables from Entertainment Weekly                   0
      Receivables from Sub-leases                       637,000
      Prepaid expenses                                        0
      Receivables from HilCo                            652,000
      Miscellaneous CC                                   73,000
      Vendor Deposits                                 3,795,000
      Pre-paid Rent                                      66,000
                                                   ------------
      Total                                          73,190,000
                                                   ------------
Fixed Assets                                                  0
Other assets
   Transport Logistic deposit                           600,000
   Utility and Tax Deposits                             296,000
                                                   ------------
      TOTAL ASSETS                                  $74,086,000
                                                   ============

Liabilties & Shareholders' deficit
Current liabilities
   Accounts payable
      Due to Transworld                                 779,000
      Due to Deluxe                                           0
      A/P                                                64,000
   Other accrued liabilities
      Accrued Bank Fee                                        0
      Accrued Insurance                                       0
      HilCo payable                                     225,000
      Logistic Accrual                                  415,000
      Deferred Income                                   500,000
      Insurance Reserve                               4,663,000
      Accrued Payroll & Employee Benefits:
         Accrued Vacation                               874,000
         Accrued Severance                            2,804,000
         Accrued Employer Payroll Taxes                 773,000
         Accrued Benefits                             1,664,000
         May Payroll Accrual                            779,000
      Sales Tax                                         522,000
      5% Admin. Fee on Wachovia L/C                     251,000
      Miscellaneous                                      85,000
   Gift Card liabilities                                      0
                                                   ------------
      Total                                          14,398,000
                                                   ------------
DIP financing                                                 0
Other LT Liabilities                                          0
Liabilities subject to compromise                   352,958,000
Shareholders' deficit                              (293,270,000)
                                                    -----------
      TOTAL LIABILITIES &
      SHAREHOLDERS' DEFICIT                         $74,086,000
                                                   ============


                       Musicland Holding Corp.
                Consolidated Statement of Operations
                  For the Month Ended May 31, 2006


Merchandise revenue                                           -
Non-merchandise revenue                                       -
                                                   ------------
   Net sales                                                  -

Cost of good sold                                             -
                                                   ------------
   Gross Profit                                               -
                                                   ------------

Store operating expenses
   Payroll                                                    -
   Occupancy                                                  -
   Other                                                      -
                                                   ------------
      Store expenses                                          -

Other operating expenses
   Net advertising expense                                    -
   Logistics                                                  -
   Field administration & others                              -
                                                   ------------
      Operating expenses                                      -
                                                   ------------
General & administrative                             $1,168,000
                                                   ------------
EBITDA (Loss)                                        (1,168,000)
                                                   ------------
Hilco 340 Store GOB                                  (1,078,000)
Chapter 11 & related charges                          8,397,000
Sale to Transworld                                  (16,255,000)
Hilco 65                                                (48,000)
Media Play Wind down                                   (444,000)
Depreciation & Amortization                                   0
                                                   ------------
   Operating income (Loss)                          (10,596,000)
                                                   ------------
Interest income (expense)                               316,000
Other non-operating charges                            (631,000)
                                                   ------------
   Earnings before Taxes                            (10,912,000)
                                                   ------------
Income tax                                              215,000
                                                   ------------
   Net earnings (Loss)                             ($11,127,000)
                                                   ============


                       Musicland Holding Corp.
                 Consolidated Statement of Cash Flow
                    For the Month Ended May 31, 2006


Operating activities
   Net earnings (Loss)                             ($11,127,000)
   Adjustments to reconcile net earnings (loss)
      to net cash provided by (used in)
      operating activities                            5,885,000
   Changes in operating assets & liabilities
      Inventory                                               0
      Other current assets                            1,625,000
      Accounts payable                               (1,399,000)
      Other operating liabilities                    (3,314,000)
      Gift card liability                                     0
      Liabilities subject to compromise              (1,421,000)
                                                   ------------
   Net cash provided by (used in)
      operating activities                           (9,751,000)
                                                   ------------
Investing activities
   Change in other long term asset/liabilities                -
   Retirement of fixed assets                                 -
                                                   ------------
   Net cash provided by (used in)
      investing activities                                    -
                                                   ------------
Financing activities
   Revolver borrowings                                        -
                                                   ------------
Increase/decrease in cash                            (9,751,000)
                                                   ------------
   Cash at the beginning of Period                   65,863,000
                                                   ------------
   Cash at the end of Period                        $56,112,000
                                                   ============

Headquartered in New York City, Musicland Holding Corp., is a
specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 13; Bankruptcy Creditors' Service, Inc., 215/945-7000)


RENT-A-CAR: Moody's Puts Ba2 Rating on Proposed US$725-Mil. Loan
----------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to the proposed
bank loan of Rent-A-Center, Inc., and affirmed the Ba2 corporate
family as well as the senior subordinated note issue at Ba3.
The continuation of the positive outlook reflects Moody's
opinion that ratings could be upgraded over the medium-term once
the company establishes a lengthier track record of sales
improvement and Moody's becomes more comfortable with the
company's financial policy.

This rating is assigned:

   * US$725 million proposed secured bank loan at Ba2.

These additional ratings are affirmed:

   * US$600 million existing secured bank loan at Ba2,
   * US$300 million 7.5% senior subordinated notes at Ba3,
   * Corporate family rating at Ba2.

The rating on the existing bank loan will be withdrawn following
completion of the contemplated transaction.

Rent-A-Center's corporate family rating of Ba2 reflects the
balance of certain key quantitative and qualitative rating
drivers that have low investment grade characteristics with
other attributes that are solidly non-investment grade.
Weighting down the ratings are the company's aggressive
financial policies whereby virtually all operating cash flow is
spent for share repurchases, capital investment, and industry
consolidation; the unproven success to date of initiatives
designed to stimulate average unit volume growth; and the
challenges in expanding the personal loan business beyond the
test stage.

While leverage is moderate, there has been little net debt
reduction over the previous several years.  However, supporting
the company's ratings are the leading position of Rent-A-Center
in the consumer rent-to-own industry in terms of geography,
store count, sales, and store count; the lower cyclicality and
seasonality of rent-to-own stores compared to many other
retailing segments; and the relatively high quality of the store
base.

In addition, key credit metrics such as leverage and retained
cash flow to debt have Baa and better characteristics, with the
exception of free cash flow to debt that scores at the B level
because of the substantial ongoing investment in store count
growth.  Moody's does not expect that the pending replacement of
the existing US$600 million credit facility with a new US$725
million credit facility will materially impact debt protection
measures.

The continued positive outlook recognizes that an upgrade
remains possible within the medium-term.  The potential upgrade
assumes that comparable store sales growth will not become
negative, that the business line expansion into financial
services is profitable, and that the company remains measured
with its uses of discretionary free cash flow.  Over the next
several quarters, ratings could move upward if the company
establishes a lengthier track record of sales stability and
margin improvement; if financial flexibility strengthens such
that EBIT covers interest expense by more than 3 times, leverage
stays below 2.5 times, and Free Cash to Debt can be sustained
above 12%; and if likely incremental acquisitions do not
meaningfully impact credit metrics.

Given the positive outlook, Moody's believes that a downgrade is
unlikely.  However, the outlook could be revised to stable as a
result of financial policy decisions such as material increases
in leverage, share repurchases, increased capital investment, or
for operating reasons that prevent the company from improving
its operating margin.  A stable outlook would result if
comparable store sales becomes negative, free cash flow to debt
does not improve from the current level of 4%, or Debt to EBITDA
approaches 3 times.

Rent-A-Center, Inc, with headquarters in Plano, Texas operates
the largest chain of consumer rent-to-own stores in the U.S.
with 2,751 company operated stores located in the U.S., Canada,
and Puerto Rico.  The company also franchises 297 rent-to-own
stores that operate under the "ColorTyme" and "Rent-A-Center"
banners.  Revenue for the twelve months ending March 31, 2006,
was about US$2.3 billion.




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


BWIA WEST: Restarts Negotiation with Workers' Union
---------------------------------------------------
British West Indies met with the Aviation Communication and
Allied Workers Union or ACAWU on June 21 at the airline's Sunjet
House offices in Spain to explore ways on addressing workers'
concerns, Newsday reports.

As reported in the Troubled Company Reporter on June 16, 2006,
protests resulting from stalled negotiations between BWIA and
the workers stopped when a meeting was scheduled to discuss the
workers' grievances, which include:

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

The talks held were exploratory in nature and the two parties
have not yet decided, Newsday relates, citing Curtis John, the
head of ACAWU.  The talks revolved around the status of the
current collective agreement.

BWIA's executives did accept the proposals and suggestions from
the union for a new collective agreement and said that they
would analyze the proposals and promised to report back to the
union in July, Trinidad and Tobago states, citing Mr. John.

The Express states that Mr. John said Peter Davies, the chief
executive officer of BWIA, assured the union that after a
"costing process" and an end-of-the-month report to the
government, the airline will inform labor leaders if any aspect
of the proposals would be accepted.

"Depending on what BWIA management and the Government decides,
we will know what will be the next step," Mr. John told The
Express.

Mr. John told Newsday that the draft business plan for BWIA was
also discussed during the meeting.

Dr. Lenny Saith, Trinidad and Tobago's minister of public
administration and information, told Newsday in April that he
had seen the draft plan.  According to him, the plan could work
once approved by all of the airline's stakeholders.  The
government would not proceed with any initiative for BWIA unless
the plan gets the approval.

However, ACAWU told Newsday that BWIA's management did not
provide them any copy of the draft.

"Davies said we could not get a copy of the business plan as it
is a confidential document," Mr. John told The Express.

Mr. John said that although he felt that the proposals made to
BWIA are reasonable, the union was negotiating blindly because a
request to get a copy of BWIA's new business plan was denied at
the meeting, The Express relates.  He said that without the
document, the union couldn't fully know how reasonable the
proposals would be in the context of the new plans for BWIA.

According to Newsday, ACAWU said BWIA asked the government to
intervene.

There was no need for government intervention at this time,
Newsday relates, citing Dr. Saith.

Mr. John, says Newsday, stated that he did not expect another
meeting with BWIA before the end of July as both the company and
the union had exchanged proposals and would need to study them
in detail.  However, Mr. John said that he expected BWIA would
call to tell him the date of the next meeting.

The Express reports that Mr. John also wanted to put rumors
about retrenchment at BWIA to rest.  He said that although the
company indicated that a retrenchment is possible in the
restructuring process, Mr. Davies said at the meeting that BWIA
has not yet gone through the whole restructuring process and
could not tell if anyone will be retrenched or what areas will
be affected.

If a retrenchment is needed, BWIA needs to inform ACAWU, as
stated in the current collective agreement, Mr. John told The
Express.  There is a process that must be followed, with the
company having to offer Voluntary Separation of Employment
Package first.

Operations at BWIA were normal on Wednesday with all flights
leaving on time and all employees working, Mr. John told
Newsday.

As reported in the Troubled Company Reporter on June 14, 2006,
four flights were cancelled at BWIA after a number of its
employees failed to show up, saying they were sick.  The move
was alleged to be part of a strategy to pressure the BWIA
management to settle outstanding wage negotiations, which Mr.
John had denied.  All passengers had been accommodated and
reallocated to new services.  Some had to be accommodated
overnight at hotels.

BWIA resorted to hiring Service Air to deal with transportation
of passengers.  BWIA also wet leased airlines Miami Air and
North American Air to handle flights to New York and London.

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

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


DIRECTV HOLDINGS: Fitch Affirms BB Issuer & Sr. Debt Ratings
------------------------------------------------------------
Fitch Ratings has affirmed the 'BB' Issuer Default Rating and
'BB' senior unsecured debt rating of DIRECTV Holdings LLC.
Additionally Fitch has affirmed the 'BB+' rating assigned to the
company's senior secured credit facility.  Fitch has revised the
Rating Outlook to Positive from Stable.  DIRECTV is a wholly
owned subsidiary of DIRECTV Group, Inc.  Approximately US$3.4
billion of debt as of March 31, 2006, is affected by these
actions.

The positive outlook reflects the DIRECTV Holdings' strong
credit protection metrics relative to its rating category, which
is primarily attributable to the company's improved operating
profile.  Fitch acknowledges that DIRECTV's EBITDA and free cash
flow metrics have in part been positively affected by the slower
pace of gross additions. During the first quarter of 2006
subscriber acquisition costs adjusted to include capitalized
subscriber acquisition costs decreased approximately 18%
relative to the first quarter of 2005 and represented 19.2% of
revenues compared to 26.6% in the year earlier period.  The
lower gross additions stems from the company's decision to focus
on higher quality subscribers, tighten its credit policy, and
restructure its independent dealer incentives to support the
company's strategic focus on higher quality subscribers.
However, the company's operations have also been positively
influenced by its efforts to:

   -- reduce churn,
   -- stabilize subscriber acquisition costs, and
   -- grow average revenue per unit.

DIRECTV's shift in strategy from aggressive subscriber growth to
focus on subscriber quality and reduce churn is yielding the
expected results, as approximately 86% of the company's gross
additions during the first quarter of 2006 were higher quality
subscribers.  In Fitch's opinion the strategy should lower the
company's exposure to bad debt and higher churn while
positioning the company to grow ARPU and operating margins, as
the higher quality subscribers tend to take higher margin
services.

Overall the ratings reflect the size and scale of DIRECTV's
operations as the second largest multichannel video-programming
distributor in the U.S.  The ratings also incorporate DIRECTV's
lack of revenue diversity and narrow product offering relative
to its cable multiple system operator or MSO competition.  From
Fitch's perspective the company is in a weak competitive
position to respond to the service-bundling strategy utilized by
the cable MSOs and eventually the telephone companies.  Fitch
believes that the convergence of service offerings between the
cable MSOs and the telephone companies and the changes to the
competitive landscape will increase the business risks related
to DIRECTV's credit profile.  As competition for subscribers
increases, Fitch believes that the direct broadcast satellite or
DBS operators' (including DIRECTV and Echostar Communications
Corporation) market share is most at risk.  Fitch would expect
that DIRECTV may have to spend more subscriber acquisition costs
or SAC to acquire subscribers and increase retention costs to
retain existing subscribers, resulting in pressure on EBITDA
margins and the company's ability to sustain stable generation
of free cash flow.

To position the company to effectively compete with the service
bundling approach used by the cable MSOs, DIRECTV is taking
steps to enhance its video offering and is developing a high-
speed data product strategy to bundle with its video service
offering.  Efforts to enhance its video offering will focus on
providing differentiated and exclusive programming content,
launching interactive and video-on-demand services, and
expanding its high definition television capabilities, which in
Fitch's opinion may be difficult given DIRECTV's platform
limitations.

The uncertainty surrounding the potential investment in a
wireless broadband product has in Fitch's view created somewhat
of an overhang on DIRECTV's credit profile.  Fitch believes that
for competitive purposes an investment in broadband is
appropriate, but that DIRECTV will mitigate the financial and
technical risks associated with a broadband investment by using
multiple investment partners.

The potential for continued shareholder-friendly actions also
adds risk to DIRECTV's credit profile.  On Feb. 7, 2006, DTVG's
board of directors authorized a US$3 billion share repurchase
program.  When the program was announced, the company indicated
that it would take about two years to complete with a large part
funded with existing cash on DTVG's balance sheet.  The company
indicates that as of June 1, 2006, including the two additional
repurchases from the GM pension trusts, DTVG has repurchased
approximately 160.1 million shares for approximately US$2.56
billion, which leaves approximately US$440 million of remaining
capacity.  DTVG had approximately US$2.5 billion of cash and
short-term investments on its balance sheet including US$1.2
billion of cash at DIRECTV as of the end of the first quarter of
2006.

Given DIRECTV's weak competitive position, Fitch would hold the
company to tighter credit protection metrics for a given rating
level.  Factors that could lead to additional positive rating
actions include further development of the capital costs and
financing requirements associated with the company's potential
broadband investment.  Additionally the company will need to
demonstrate solid gross addition, churn, ARPU, and SAC cost
performance.

Likewise, a perceived erosion in the company's ability to
compete with cable MSOs and telephone companies as evidenced by
an accelerated rate of gross addition decline, increased churn,
and elevated SAC costs would likely lead to negative rating
actions.  In addition, the adoption of an aggressive debt-
financed share repurchase program could also lead to negative
rating actions.

DIRECTV Holdings' liquidity position is supported by a
combination of cash on hand, expected free cash flow, and
available borrowing capacity under its US$500 million revolver
contained within the company's US$2.5 billion senior secured
credit facility.




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


NUEVO BANCO: Loses UYU130 Million in January-May 2006 Period
------------------------------------------------------------
Central bank figures show that Uruguay's Nuevo Banco Comercial
had a UYU130 million loss in the January-May period this year,
Business News Americas reports.

The loss, says BNamericas, is due to higher loan loss
provisions.

BNamericas relates that due to a significant reduction of loan
loss provisions, Nuevo Banco had a UYU24.0 million profit in the
Jan-May period of last year.

According to BNamericas, Return on Equity and Return on Assets
and indicators decreased to 6.93% and 1.24% from January-May,
respectively.  In the same period last year, ROE and ROA were
15.4% and 2.42%.

Nuevo Banco had a UYU121 million operating profit in the Jan-May
period of 2006, compared to a UYU34.6 million operating loss in
the same period in 2005, BNamericas states.

BNamericas relates that the bank's net service income in Jan-May
2006 increased 36% to UYU131 million.  Assets increased 12.2% to
UYU24.8 billion in May compared to the same month in 2005.

Nuevo Banco's non-performing loan ratio in Jan-May 2006 was
3.56% of total loans, about 8.05% lesser than in Jan-May 2005.
Liabilities increased 15.3% to UYU20.7 billion while equity was
down 1.6% to UY4.03 billion, BNamericas reports.

                        *    *    *

As reported in the Troubled Company Reporter on May 4, 2006,
Fitch Ratings assigned a long-term local currency issuer
default rating of 'BB-' to Nuevo Banco Comercial.  At the same
time, Fitch affirmed these ratings:

   -- Foreign currency long-term IDR at 'B+';
   -- Support '4'; and
   -- National Long-term rating at 'AA-(uy)'.




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


CITGO PETROLEUM: Mulls Sale of Colonial & Explorer Pipelines
------------------------------------------------------------
Citgo Petroleum Corporation is considering the sale of its
interests in the Colonial and Explorer pipelines.  The company's
board of directors has chosen JPMorgan as exclusive financial
advisor for the divestiture process.

Citgo owns 15.8% of Colonial Pipeline and 6.8% of Explorer
Pipeline.  These pipelines are the two largest US refined
products pipelines carrying motor fuels and heating oil to New
York and Chicago.

Citgo told Reuters that the sale was part of a restructuring to
focus on the core business of refining and marketing motor
fuels.

"As with the previously announced potential sale of some of our
other non-strategic assets, this is the result of an ongoing
review of the company's performance.  As a product of this
study, the board has decided to focus on our core, strategic
business," said Alejandro Granado, chairman of Citgo's board of
directors.

However, rumors say that Venezuela's President Hugo Chavez would
force Venezuelan state-run Petroleos de Venezuela to sell its US
arm, Citgo, due to the conflict between the Venezuelan leader
and the Bush administration, Reuters states.

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

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

                        *    *    *

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


CITGO PETROLEUM: Reduces Oil Delivery to Lake Charles Plant
-----------------------------------------------------------
Citgo Petroleum Corporation told El Universal on Thursday that
oil and byproducts delivered to its Lake Charles refinery in
Lousiana has been reduced due to the closing of the Calcasieu
navigation channel.

The channel will be closed for a few days to remove an oil
leakage and contaminated waters due to heavy rains that started
on Monday, the United States coastguard told Reuters.

The spokesperson told El Universal, "We plan to continue with
this operational modality during the whole cleansing."

A Citgo spokesperson told Reuters that the closure of the
Calcasieu channel was not affecting output at the Lake Charles
refinery.

The Lake Charles refinery in Louisiana produces about 425,000
barrels per day.

The spokesperson said that Citgo may not need to borrow oil from
the US Strategic Petroleum Reserve to fill any gap but would
appreciate the offer, El Universal states.

According to Reuters, the US government had loaned crude oil
from the Strategic Petroleum Reserve to refiners facing
temporary supply disruptions in the past.

Heavy rains and flooding had overwhelmed the wastewater storage
tanks and pollution-control dikes at Citgo's Clifton Ridge
Terminal on early last week, resulting to a release of oil and
water into the Calcasieu channel, Reuters relates.

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

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

                        *    *    *

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


CITGO PETROLEUM: Oil Spill Clean Up Near Clifton Ridge Continues
----------------------------------------------------------------
A five-mile section of the Calcasieu Ship Channel remained
closed as clean up and recovery of the oil spill in the
Calcasieu Parish Ship Channel near Citgo Petroleum's Clifton
Ridge Terminal continued.

An estimated 15,000-18,000 barrels of oil had leaked into the
channel late Tuesday.

Responders and personnel from the Unified Command -- established
by Citgo Lake Charles Manufacturing Complex, the United States
Coast Guard and the Louisiana Oil Spill Coordinator's Office in
response to ongoing oil containment and recovery activities on
Calcasieu -- worked throughout the night staging equipment and
monitoring the spill.

Presently, six miles of the river has been contaminated by oil.
The majority of the oil is contained within the three-mile area
between light 101 and light 109.  The other three-miles have
light oil sheen.

The Coast Guard closed on Tuesday morning about three miles of
the Calcasieu to maritime traffic from light 101 to light 109.
Today, an additional two miles of the channel was closed.  The
channel is now closed from light 113, near Rose Bluff, to light
94, just south of Moss Lake.

It is expected that the channel will remain closed for several
more days.  The Unified Command is working at this time to
complete the containment and recovery of the oil and restoration
of channel usage.

Recovery efforts began Tuesday night after receiving reports of
oil in the Calcasieu channel near Citgo's Clifton Ridge.  The
heavy rainfall and flooding that occurred on Monday overwhelmed
Citgo's wastewater storage tank area and dikes.  About 30,000
barrels of oil was released into the Indian Marais, Citgo's on-
site drainage feature.

Multiple contract oil recovery organizations, boats, skimmers
and containment booms are being utilized to contain and recover
the oil.

The cause of the spill remains under investigation.  Clean up
and containment operations continue on the east and west banks
of the Calcasieu channel.  The Unified Command is conducting
continual on-site and aerial evaluations of the area.

As of Thursday, there were six ships waiting to depart, and 14
ships waiting to come into port.  Facilities affected by the
channel closure include:

   -- Calcasieu Refinery,
   -- CII Carbon,
   -- CONOCO Clifton Ridge,
   -- Citgo Clifton Ridge,
   -- Citgo Refinery,
   -- Bulk Terminal 1,
   -- Port of Lake Charles,
   -- PPG,
   -- CONOCO West Lake Refinery,
   -- Bulk Terminal 4,
   -- Port Agragates,
   -- Pelican Refinery, and
   -- Centeral Crude.

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

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

                        *    *    *

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


PETROLEOS DE VENEZUELA: Allegedly Funds Campaign of Evo Morales
---------------------------------------------------------------
Samuel Doria Medina, Bolivian Unidad Nacional opposition party
leader, alleged that Venezuela's state-run oil firm Petroleos de
Venzuela SA is paying for the media campaign of Movimiento al
Socialismo -- President Evo Morales' party -- for the election
of the Constituent Assembly on July 2, EFE reports.

"Foreign oil company Pdvsa covers all of the advertising of the
Bolivian Government in June, including the whole advertising of
MAS broadcast in all TV channels," Mr. Medina asserted, citing a
report from an audit firm, El Universal states.

Mr. Medina, a candidate for Bolivia's Constituent Assembly, El
Universal relates, said that major TV networks sold spots to
Petroleos de Venezuela "thinking that publicity about the
company would be disseminated, but the spots were used to air
advertising of the Bolivian Government and MAS."

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.


PETROLEOS DE VENEZUELA: Building Ethanol Plants with Cuban Help
---------------------------------------------------------------
Venezuela, through its state-run oil company -- Petroleos de
Venezuela SA, will build 15 distilleries to produce significant
amounts of ethanol for domestic consumption using parts of Cuban
dismantled sugar mills.

"We are going to begin building next year 15 mills that will
produce ethanol ... Cuba is advising us in the process and
training personnel," Maria Antonieta Chacon, the president of
Corporacion Venezolana Agraria's sugar company, told Reuters.

After the decline of Cuba's raw sugar export, the country
dismantled 71 out of 156 sugar mills and temporarily closed
another 43.

"Both countries have agreed to dispose of parts of the existing
facilities that will be taken to Venezuela," Victor Carrizales
at Petroleos de Venezuela was quoted by El Universal as saying
during a congress on sugar and byproducts held in Havana, Cuba.

Industry sources quoted by Reuters said five or more of the
recently closed mills will be shipped to Venezuela.  In
addition, the Venezuelan ethanol plants will be equipped with
parts from Germany, Brazil, United Kingdon and India, El
Universal says.

Venezuela aims to add 10% ethanol to gasoline.  To achieve that
goal, it needs to plant 300,000 hectares of cane and build 21
distilleries by 2012, Reuters says.

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.


PETROLEOS DE VENEZUELA: Issuing US$3.5-Bil. Debt on Local Market
----------------------------------------------------------------
Rafael Ramirez, the president of Petroleos de Venezuela, told El
Universal that the company will issue about US$3.5 billion in
debt on local markets to finance new projects.

"Our goal is to finance large oil projects in the domestic
market," Mr. Ramirez told Business News Americas.

It has not been decided when the debt would be issue, whether it
would be this year, BNamericas relates, citing Mr. Ramirez.

El Universal states that financial sources said Petroleos de
Venezuela could issue dollar-denominated bonds that would be
paid for in bolivars by small-scale investors and firms.
According to El Universal, this would decrease Petroleos de
Venezuela's interest rates and help the central bank absorb
excess liquidity and reduce inflationary pressures.

Petroleos de Venezuela is coordinating the issue with the
central bank and the ministry of finance, BNamericas 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.


* VENEZUELA: Purchases US$242.57 Million in Bonds from Argentina
----------------------------------------------------------------
The Venezuelan government will purchase about US$242.57 million
in public debt bonds from Argentina, El Universal reports.
Venezuela has already acquired approximately US$3 billion of
Argentina's 2012 Libor Bonds since May 2005.

The latest purchase will be made at market prices.

Previously, Venezuela made a US$120 million profit from the sale
of US$1.4 billion of Argentina's Boden 2012 bonds.

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     RD      Dec. 14, 2005
   Long Term IDR       B       Dec. 14, 2005
   Short Term IDR      B-      Jun.  3, 2005
   Local Currency
   Long Term Issuer
   Default Rating      B       Jun.  3, 2005

                        *    *    *

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



                        ***********


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

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

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