TCRLA_Public/060703.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, July 3, 2006, Vol. 7, Issue 130

                            Headlines

A R G E N T I N A

ESTUDIO DI FIORI: Claims Verification Deadline Is on Sept. 20
HEFAISTOS SA: Proofs of Claim Verification Is Until Sept. 4
HERNATAL SA: Trustee Will Verify Proofs of Claim Until Sept. 4
MCC SRL: Claims Verification Deadline Moved to Sept. 19
OLDEAR S.R.L.: Last Day for Claims Verification Is on July 5

PASTORINO, STEIREINSIS: Claims Verification Ends on Sept. 28
PUMBA SA: Trustee Will Verify Proofs of Claim Until Aug. 31
SEMILLERIA FLORENSA: Trustee Will Verify Claims Until Aug. 4
WAISCO SA: Trustee Has Until Sept. 6 to Verify Creditors' Claims
YESAY SA: Last Day for Verification of Claims Is on Sept. 1

B A H A M A S

WINN-DIXIE STORES: Files Chapter 11 Reorganization Plan

B E R M U D A

FOSTER WHEELER: Unit Inks Steam Generator Pact with Shanghai
LORAL SPACE: Names Patrick Dewitt as CEO of Space Systems/Loral
LORAL SPACE: Promotes John Celli to Pres. of Space Systems/Loral

B R A Z I L

ARACRUZ CELULOSE: Fitch Ups Foreign Currency Rating to BBB-
BRASKEM INT'L: Fitch Ups Rating on US$150MM Senior Notes to BB+
BRASKEM SA: Fitch Ups Foreign Currency Rating to BB+ from BB
COMPANHIA SIDERURGICA: Fitch Ups Foreign Currency Rating to BBB-
CST OVERSEAS: Fitch Ups Foreign Curr. Rating to BBB- from BB+

COMPANHIA VALE: Fitch Ups Foreign Curr. Rating to BBB- from BB+
GERDAU ACOMINAS: Fitch Ups Foreign Curr. Rating to BBB- from BB+
GERDAU SA: Fitch Maintains BB+ Foreign Currency Issuer Rating
GOL LINHAS: Fitch Ups Foreign Currency Rating to BB from BB-
MRS LOGISTICA: Fitch Ups Foreign Currency Rating to BB from BB-

PETROLEO BRASILEIRO: Fitch Ups Foreign Currency Rating to BB+
RIPASA SA: Fitch Upgrades Foreign Currency Rating to BB from BB-
SAMARCO MINERACAO: Fitch Ups Foreign Currency Rating to BBB-
TELE NORTE: Fitch Ups Foreign Currency Rating to BB from BB-
TELEMAR NORTE: Fitch Ups Foreign Currency Rating to BB from BB-

VOTORANTIM PARTICIPACOES: Fitch Ups Foreign Curr. Rating to BBB-

C A Y M A N   I S L A N D S

AVENIR MASTER: Last Day to File Proofs of Claim Is on July 26
COMMONWEALTH INVESTMENTS: Proofs of Claim Must be In by July 26
CORNICE (LEVEL I): Shareholders Vote to Liquidate Business
CORNICE (LEVEL II): Shareholders Voluntarily Liquidate Company
CORNICE (LEVEL III): Shareholders Vote to Liquidate Company

INDAIR LEASING: Deadline to File Proofs of Claim Is on July 26
HARTVILLE GROUP: Posts US$2MM Net Loss in Quarter Ended March 31
MESPIL FUND: Sets July 26 Deadline for Proofs of Claim Filing
MESPIL MASTER: Creditors Must File Proofs of Claim by July 26
MPC COMMODITY: Proofs of Claim Must be Submitted by July 26

MPC COMMODITY FUND: Proofs of Claim Must be Filed by July 26
PRIMUS JAPAN: Proofs of Claim Filing Deadline Is on July 26
SUCCESSOR II: Moody's Rates US$73.2MM Class A Notes at B3
SUCCESSOR IV: Moody's Rates US$30MM Series 1 Class A Notes at B3
SUCCESSOR CAL: Moody's Rates US$47.5MM Notes Due 2008 at Ba3

SUCCESSOR EURO: Moody's Assigns Low B Ratings on Variable Notes
SUCCESSOR HURRICANE: Moody's Puts Low B Ratings on Three Notes
SUCCESSOR JAPAN: Moody's Puts Low B Ratings on Variable Notes

C H I L E

CELLSTAR CORP: Extends Agreements with Motorola in LatAm & US

C O L O M B I A

AES CHIVOR: S&P Says B+ Ratings Reflect Volatile Cash Flow
BAVARIA SA: To Sell Juice Business for US$55.3MM to Postobon
CENTRAGAS-TRANSPORTADORA: Enron Sells 50% Stake in Company
COLOMBIA TELECOM: Investing COP6BB for Barranguilla Maintenance

* COLOMBIA: Moody's Retains Ba2 Foreign Currency Rating

C U B A

* CUBA: Says Sugar Sector Won't Attain Harvest Goals

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Fraud Trial Continues
FALCONBRIDGE LTD: Contests Xstrata Application to Superior Court

E C U A D O R

PETROECUADOR: Increasing Windfall Revenue by at Least 50%

* ECUADOR:  Banana Growers Mulls Possibility of Holding Strike

G U A T E M A L A

* GUATEMALA: Faces Anti-FTA Demonstrations

H A I T I

* HAITI: President Wants Re-Entry to Caribbean Community

H O N D U R A S

* HONDURAS: Banana Growers Want to Sell Crops to China

J A M A I C A

KAISER ALUMINUM: Court Approves ACE Insurers Settlement Accord

M E X I C O

BALLY TOTAL: Files 2005 Annual & First Quarter 2006 Fin. Results
EAGLEPICHER INC: Ohio Court Confirms Plan of Reorganization
EMPRESAS ICA: Delays Filing of Annual Report on Form 20-F
GENERAL MOTORS: S&P Holds Neg. Watch on B Corp. Credit Rating
MERIDIAN AUTOMOTIVE: Has Until July 31 to File Chapter 11 Plan

P A N A M A

* PANAMA: Wants to Negotiate Payment Terms with Chiquita Brands

P U E R T O   R I C O

ADELPHIA COMMS: Files May 2006 Monthly Operating Report
MERIDIAN AUTO: Filing 3rd Amended Plan & Disclosure Statement
PREFERRED HEALTH: Moody's Rates Proposed US$185-Mil. Loan at B1
UNIVISION COMMS: S&P Downgrades Senior Unsecured Notes to BB-

T R I N I D A D   &   T O B A G O

BWIA WEST: Lacks Proper Managerial Systems, Says Union Head

U R U G U A Y

PETROLEO BRASILEIRO: Acquires 51% Share in Gaseba for US$11 Mil.

* URUGUAY: State Firm Invests US$2.16MM to Set Up Power Meters

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Inks Training Accord with University
SIDERURGICA DEL TURBIO: Concludes US$113 Million Refinancing


                         - - - - -


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A R G E N T I N A
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ESTUDIO DI FIORI: Claims Verification Deadline Is on Sept. 20
-------------------------------------------------------------
Gisela Mara Corradini, the court-appointed trustee for Estudio
Di Fiori Hermanos S.R.L.'s bankruptcy case, will verify
creditors' proofs of claim until Sept. 20, 2006, La Nacion
reports.

Creditors who fail to present their proofs of claims won't
receive any post-liquidation distribution.

Court No. 6 in Buenos Aires declared Estudio de Fiori bankrupt
at the request of Silvia De Carrere, whom it owes US$23,914.32.

Clerk No. 11 assists the court in this case.

The debtor can be reached at:

    Estudio de Fiori S.R.L.
    Peru 457
    Buenos Aires, Argentina

The trustee can be reached at:

    Gisela Mara Corradini
    Albania 4518
    Buenos Aires, Argentina


HEFAISTOS SA: Proofs of Claim Verification Is Until Sept. 4
-----------------------------------------------------------
Court-appointed trustee Ruben Leonardo Kwasniewski will verify
creditors' proofs of claim against bankrupt company Hefaistos
S.A. until Sept. 4, 2006, Infobae reports.

Mr. Kwasniewski will present the validated claims in court as
individual reports on Oct. 17, 2006.  A general report that
contains an audit of Hefaistos' accounting and banking records
will follow on Nov. 28, 2006.

The debtor can be reached at:

    Hefaistos S.A.
    Tte. Gral. Juan Domingo Peron 318
    Buenos Aires, Argentina

The trustee can be reached at:

    Ruben Leonardo Kwasniewski
    Montevideo 536
    Buenos Aires, Argntina


HERNATAL SA: Trustee Will Verify Proofs of Claim Until Sept. 4
--------------------------------------------------------------
Juan Carlos Alvarez, the court-appointed trustee for Hernatal
S.A.'s bankruptcy case, will verify creditors' proofs of claim
until Sept. 4, 2006, La Nacion reports.

Creditors who fail to present their proofs of claim won't
receive any post-liquidation distribution.

Court No. 8 in Buenos Aires declared Hernatal S.A. bankrupt at
the behest of Union Cortadores de la Indumentaria, which it owes
US$2,163.44.

Clerk No. 16 assists the court in this case.

The debtor can be reached at:

    Hernatal S.A.
    A.Olmos 1239
    Buenos Aires, Argentina

The trustee can be reached at:

    Juan Carlos Alvarez
    Cordoba 1522
    Buenos Aires, Argentina


MCC SRL: Claims Verification Deadline Moved to Sept. 19
-------------------------------------------------------
Rut Noemi Alfici, the court-appointed trustee for MCC S.R.L.'s
bankruptcy case, will verify proofs of claim until Sept. 19,
2006.  The verification deadline was previously set for May 31,
2006, Infobae reports.

The submission of the individual reports on the verified claims
has been moved to Nov. 2, 2006, from July 27, 2006.  The
presentation of the general report on the case has also been
rescheduled to Dec. 15, 2006, from Sept. 8, 2006.

The trustee can be reached at:

        Rut Noemi Alfici
        Rodriguez Pena 565
        Buenos Aires, Argentina


OLDEAR S.R.L.: Last Day for Claims Verification Is on July 5
------------------------------------------------------------
A court-appointed trustee, overseeing Oldear S.R.L.'s bankruptcy
proceeding, will verify creditors' proofs of claim until
July 5, 2006.

Creditors who fail to present their proofs of claim won't
receive any post-liquidation distribution.

The verified claims will be submitted in court as individual
reports on Sept. 1, 2006.  A general report containing an audit
of Oldear's accounting and banking records will follow on a date
that is yet to be disclosed.

A court in San Lorenzo, Santa Fe, handles the proceeding.

The debtor can be reached at:

    Oldear S.R.L.
    Avenida San Martin 1490, San Lorenzo
    Santa Fe, Argentina


PASTORINO, STEIREINSIS: Claims Verification Ends on Sept. 28
------------------------------------------------------------
Ernesto Higueras, the court-appointed trustee for Pastorino,
Steireinsis y Cabrera S.R.L.'s bankruptcy case, will verify
creditors' proofs of claim until Sept. 28, 2006, La Nacion
reports.

Creditors who fail to present their proofs of claims won't
receive any post-liquidation distribution.

Court No. 3 in Buenos Aires declared Pastorino, Steireinsis
bankrupt at the request of Miguel Garcia, whom it owes
US$16,292.

Clerk No. 5 assists the court in this case.

The debtor can be reached at:

    Pastorino, Steireinsis y Cabrera S.R.L.
    Chile 1165/67
    Buenos Aires, Argentina

The trustee can be reached at:

    Ernesto Higueras
    Sanchez de Loria 1944
    Buenos Aires, Argentina


PUMBA SA: Trustee Will Verify Proofs of Claim Until Aug. 31
-----------------------------------------------------------
Court-appointed trustee Pablo Ernesto Aguilar will verify
creditors' proofs of claim against bankrupt company Pumba S.A.
until Aug. 31, 2006, Infobae reports.

Mr. Aguilar will present the validated claims in court as
individual reports on Oct. 13, 2006.  A general report that
contains an audit of Pumba's accounting and banking records will
follow on Nov. 24, 2006.

Court No. 3 in Buenos Aires declared Pumba S.A. bankrupt after
it has defaulted on its obligations on November 2004.

Clerk No. 5 assists the court in the proceeding.

The debtor can be reached at:

    Pumba S.A.
    Montevideo 666
    Buenos Aires, Argentina

The trustee can be reached at:

    Pablo Ernesto Aguilar
    Hipolito Yrigoyen 1516
    Buenos Aires, Argentina


SEMILLERIA FLORENSA: Trustee Will Verify Claims Until Aug. 4
------------------------------------------------------------
Julio Esteban Gavatorta, the court-appointed trustee for
Semilleria Florensa S.A.'s reorganization proceeding, will
verify creditors' proofs of claim until Aug. 4, 2006, Infobae
reports.

Mr. Gavatorta will present the validated claims in court as
individual reports on Sept. 15, 2006.  A general report that
contains an audit of Semilleria Florensa's accounting and
banking records will follow on Oct. 27, 2006.

Creditors will cast their votes on a settlement plan that
Semilleria Florensa will lay on the table during an informative
assembly.

The debtor can be reached at:

    Semilleria Florensa S.A.
    Dean funes 669, Ciudad de Cordoba
    Cordoba, Argentina

The trustee can be reached at:

    Julio Esteban Gavatorta
    9 de Julio 151 Galeria Libertad, Ciudad de Cordoba
    Cordoba, Argentina


WAISCO SA: Trustee Has Until Sept. 6 to Verify Creditors' Claims
----------------------------------------------------------------
Marcelo Carlos Rodriguez, the court-appointed trustee for Waisco
S.A.'s bankruptcy case, will verify creditors' proofs of claim
until Sept. 6, 2006, La Nacion reports.

Creditors who fail to present their proofs of claim won't
receive any post-liquidation distribution.

Court No. 5 in Buenos Aires declared Waisco S.A. bankrupt at the
request of Florencio Padilla, whom it owes US$13,771.91.

Clerk No. 10 assists the court in this case.

The debtor can be reached at:

    Waisco S.A.
    San Benito de Palermo 1686
    Buenos Aires, Argentina

The trustee can be reached at:

    Marcelo Carlos Rodriguez
    Cerrito 146
    Buenos Aires, Argentina


YESAY SA: Last Day for Verification of Claims Is on Sept. 1
-----------------------------------------------------------
Silvia Trombetta, the court-appointed trustee for Yesay S.A.'s
bankruptcy case, will verify creditors' proofs of claim until
Sept. 1, 2006, La Nacion reports.

Creditors who fail to present their proofs of claim won't
receive any post-liquidation distribution.

Court No. 12 in Buenos Aires declared Yesay S.A. bankrupt at the
behest of Jose Beneyto, whom it owes US$28,722.30.

Clerk No. 23 assists the court in this case.

The debtor can be reached at:

    Yesay S.A.
    Padre Monte Carballo 1628
    Buenos Aires, Argentina

The trustee can be reached at:

    Silvia Trombetta
    Sarmiento 2226
    Buenos Aires, Argentina




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


WINN-DIXIE STORES: Files Chapter 11 Reorganization Plan
-------------------------------------------------------
Winn-Dixie Stores, Inc. filed its proposed Plan of
Reorganization and related Disclosure Statement with the U.S.
Bankruptcy Court for the Middle District of Florida on
June 29, 2006.  With this filing, Winn-Dixie is positioned to
emerge from Chapter 11 protection as soon as late October.

Winn-Dixie expects to emerge from its reorganization with
sufficient financing and liquidity to make significant
investments in its current store base, to selectively open new
stores, and to take other actions to position the business to
compete effectively in its markets over the next several years.
The company also expects to emerge with only a minimal amount of
long- term debt on its balance sheet.

The proposed Plan of Reorganization represents the culmination
of extensive negotiations with various creditors and creditor
groups in Winn- Dixie's Chapter 11 cases.  Creditors have been
divided over whether these cases should be substantively
consolidated or not. Litigation of that issue would have been
complex and expensive, delaying Winn-Dixie's emergence from
Chapter 11 for a substantial period of time.  Accordingly, the
Official Committee of Unsecured Creditors, with Winn-Dixie's
support, successfully negotiated a settlement of the substantive
consolidation issue.  The Creditors Committee and the company
have garnered the support of ad hoc committees representing the
interests of trade vendors and retirees.  Winn- Dixie's Plan of
Reorganization incorporates the substantive consolidation
settlement.

                 US$725 Million Exit Financing

Winn-Dixie received a commitment for up to US$725 million in
exit financing from Wachovia Bank.  The exit financing, which
will replace the company's current debtor-in-possession credit
facility on the effective date of a Plan of Reorganization, will
increase Winn-Dixie's cash availability substantially.  The
financing is subject to the satisfaction of customary
conditions.

"The filing of the Plan of Reorganization and Disclosure
Statement represents an important milestone in our Chapter 11
cases," Winn-Dixie President and Chief Executive Officer Peter
Lynch said.  "We are hopeful that all parties involved in our
Chapter 11 cases will agree that this plan represents an
appropriate resolution of a variety of complex issues, including
potential disputes regarding substantive consolidation."

"Winn-Dixie now is positioned to emerge from bankruptcy as soon
as late October," Mr. Lynch continued.  "Upon emergence, Winn-
Dixie will be in a stronger and more financially stable
position.  We will have only a minimal amount of long- term debt
on our balance sheet and, between our projected cash flow and
new exit financing, we will be able to make significant
investments in our stores and our business to ensure that we can
continue to provide outstanding service and products to our
customers and compete effectively in our markets.

"I want to thank our Associates for their unwavering support
during this process.  Their perseverance and commitment to help
Winn-Dixie get better all the time played a significant role in
positioning us to emerge in such a positive way.  We are also
extremely appreciative of our customers and our partners in the
vendor and real estate communities for their continued loyalty
to Winn-Dixie."

                        Business Plan

The Disclosure Statement filed includes a discussion of Winn-
Dixie's five-year business plan, which is designed to position
the company to compete successfully by delivering high-quality
products and customer service with competitive pricing.

The business plan highlights the many actions the company has
already taken to enhance its operational and financial
performance.  These include numerous merchandising and marketing
initiatives, such as a focus on improving the perishables
offering to reinforce the stores' image of freshness and quality
and communicating the branding message of "Getting better all
the time" to reflect the improvements that are being made in the
stores and throughout the company.  Other major completed
actions include a reduction of the store footprint to focus on
regions where Winn-Dixie's market share and profitability
provide the best foundation for growth, a major redesign of the
field and corporate overhead structure, and an annual cost
reduction of approximately US$100 million.

As a result of these initiatives, Winn-Dixie has reported
improved financial results and sales growth in recent periods.
For the quarters ended Jan. 11, 2006, and April 15, 2006, the
company reported year-over-year increases in identical store
sales of 7.3% and 6.7%, respectively.  In its business plan,
Winn-Dixie projects additional growth in revenue (fueled by
continued increases in identical store sales and, beginning in
2008, new store openings), gross margin and EBIDTA (earnings
before interest, taxes, depreciation and amortization) during
the five-year period.

The Disclosure Statement also includes information about the
proposed Plan of Reorganization, financial estimates regarding
the company's reorganized business enterprise value, and events
leading up to and during the company's Chapter 11 cases.

Approval of the Disclosure Statement and related voting
solicitation procedures, which Winn-Dixie will seek at a
Bankruptcy Court hearing scheduled for Aug. 4, 2006, will permit
the company to solicit acceptances for the proposed Plan of
Reorganization and seek confirmation of the proposed Plan of
Reorganization by the Bankruptcy Court.  Assuming these
milestones are achieved, Winn-Dixie expects to emerge from
Chapter 11 reorganization as soon as late October 2006.  The
company's Chapter 11 cases are being presided over by the
Honorable Jerry A. Funk, U.S. Bankruptcy Judge for the Middle
District of Florida.

"In the 16 months since Winn-Dixie filed for Chapter 11
protection, the company has made tremendous progress in
addressing its operational and financial challenges," Mr. Lynch
said.  "In particular, there has been a tangible improvement in
customer service, Associate morale, and the quality of the
product offering -- particularly in perishables.  All of this
has led to significant increases in identical store sales in
recent months and improving gross margin.  I look forward to
seeing what our talented and dedicated Associates can accomplish
once they are no longer held back by the constraints of Chapter
11."

           Details of Proposed Plan of Reorganization

The Plan of Reorganization and Disclosure Statement may be
modified prior to the approval of the Disclosure Statement and
as a result of the confirmation process.  Key elements of the
Plan of Reorganization, as currently proposed and subject to
approval by the Bankruptcy Court, include:

   * The company and its subsidiaries will be deemed
     substantively consolidated for purposes of the Plan of
     Reorganization and distribution under the Plan of
     Reorganization in accordance with the settlement negotiated
     by the Creditors Committee, which include different levels
     of recovery for different categories of unsecured
     creditors, based on their relative rights and the strengths
     of their positions on the substantive consolidation issue
     and other matters.

   * Substantially all of the unsecured liabilities of the
     company will be discharged in exchange for distribution of
     common equity of the reorganized company, allocated to the
     unsecured creditors in accordance with the substantive
     consolidation compromise.

   * A portion of the common equity of the reorganized company
     will be set aside for use in a long-term incentive plan to
     be provided to certain key Winn-Dixie Associates.  That
     plan may consist of a combination of stock grants and
     options.  The participants in that plan and the awards for
     each participant will generally be determined by a newly
     constituted Board of Directors.

   * On the effective date of the Plan of Reorganization, a new
     Board of Directors will be appointed. The initial New Board
     will be comprised of nine directors.

   * Administrative claims and priority claims will be paid in
     full as required by the Bankruptcy Code, unless otherwise
     agreed by the holders of such claims.  Secured claims may
     be reinstated on original terms, satisfied on deferred
     payment terms, or paid in full at the election of the
     company.

   * Certain creditors with claims under US$3,000, including
     creditors who elect to reduce their claims to US$3,000,
     will receive cash payments equal to 67% of the amount of
     their claims.  Creditors with claims under US$100 will be
     paid in cash, in full.

   * Current holders of Winn-Dixie's equity will not receive any
     distributions following emergence and their equity
     interests will be cancelled once the Plan of Reorganization
     becomes effective.  Similarly, subordinated claims,
     including stock-related claims, will not receive any
     distributions and will be discharged.

                        CEO Retention

The Winn-Dixie Board believes it is in the best interest of the
reorganized company to enter into a new employment agreement
with Mr. Lynch, pursuant to which he will continue to serve as
the President and Chief Executive Officer of Winn-Dixie after
the Effective Date of the Plan of Reorganization.  Mr. Lynch has
expressed a strong desire to continue serving in these roles
after the company emerges from Chapter 11.  To this end, the
Winn-Dixie Board, Creditors Committee and Mr. Lynch are
negotiating the terms of a new employment agreement for Mr.
Lynch.  His current retention agreement expires on Aug. 31,
2006.

                       About Winn-Dixie

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.




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FOSTER WHEELER: Unit Inks Steam Generator Pact with Shanghai
------------------------------------------------------------
Foster Wheeler Ltd. disclosed that Foster Wheeler North America
Corp., a unit of its Global Power Group, has entered into a
contract with Shanghai Boiler Works, Ltd., a unit of Shanghai
Electric Corporation, to provide an advanced technology license
for arch-fired subcritical and supercritical steam generators.
The value of the initial fees will be included in the company's
second-quarter 2006 bookings, and ongoing royalty payments will
be booked over the fifteen-year agreement period.

Foster Wheeler's leading arch-fired design steam generator
technology and overall boiler design "know-how" offers China's
growing power market a state-of-the-art solution for firing
difficult-to-burn low volatile coals in large-scale utility-size
steam generators, with high efficiency and reduced emissions.

In addition to the Chinese market where Shanghai Boiler Works
Ltd. will lead the contracting activities, Foster Wheeler and
Shanghai Boiler Works Ltd. have agreed to cooperate for projects
outside China, with Foster Wheeler providing design packages and
other project support.

"The award of this contract further extends the relationship
between Foster Wheeler and Shanghai Boiler Works, which dates
back over 15 years for projects in China, Asia and other parts
of the world," said Raymond J. Milchovich, chairman, president
and CEO of Foster Wheeler Ltd.  "This contract opens up
additional markets for Foster Wheeler in China and also enhances
our overall capability and cost-competitiveness for projects
outside China.  Our two companies each bring complementary
strengths: Foster Wheeler has considerable arch-fired experience
in China, including the direct sale and license sale of over 40
boilers and 15,000 electric megawatts of power, and Shanghai
Boiler Works Ltd. is a leading presence in the Chinese power
market, having placed over 60,000 MWe of capacity in service
over the past several years."

                     About Foster Wheeler

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

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

                        *    *    *

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

                        *    *    *

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


LORAL SPACE: Names Patrick Dewitt as CEO of Space Systems/Loral
---------------------------------------------------------------
Loral Space & Communications Inc. named Patrick DeWitt as chief
executive officer of Loral's satellite manufacturing subsidiary,
Space Systems/Loral or SS/L.

Mr. DeWitt, was most recently president of SS/L, where he has
led the company through one of its most successful periods in
the company's history.  Since 2003, SS/L has booked 12 new
commercial satellite awards, more than any other satellite
manufacturer.  He has held senior management positions with SS/L
and its predecessor companies since 1973.  Mr. DeWitt earned his
degree in business administration from San Jose State
University.

"Pat DeWitt successfully led SS/L through a difficult period in
the satellite manufacturing industry, marked by an adverse
economic environment, strong competition and ever-evolving
technologies," said Michael B. Targoff, chief executive officer,
Loral Space & Communications.  "In his new role as CEO, I'm
confident Pat will keep leading SS/L to continued successful
growth."

                 About Space/Systems Loral

Headquartered in Palo Alto, Calif., Space Systems/Loral -
http://www.ssloral.com/ -- is a premier designer, manufacturer,
and integrator of powerful satellites and satellite systems.
SS/L also provides a range of related services that include
mission control operations and procurement of launch services.
The company has an international base of commercial and
governmental customers whose applications include broadband
digital communications, direct-to-home broadcast, defense
communications, environmental monitoring, and air traffic
control.  SS/L satellites have amassed more than 1,300 years of
reliable on-orbit service. SS/L is ISO 9001:2000 certified.

                     About Loral Space

Loral Space & Communications -- http://www.loral.com/-- is a
satellite communications company.  It owns and operates a fleet
of telecommunications satellites used to broadcast video
entertainment programming, distribute broadband data, and
provide access to Internet services and other value-added
communications services.  Loral also is a world-class leader in
the design and manufacture of satellites and satellite systems
for commercial and government applications including direct-to-
home television, broadband communications, wireless telephony,
weather monitoring and air traffic management.

The Company and various affiliates filed for chapter 11
protection (Bankr. S.D.N.Y. Case No. 03-41710) on July 15, 2003.
Stephen Karotkin, Esq., and Lori R. Fife, Esq., at Weil, Gotshal
& Manges LLP, represented the Debtors in their successful
restructuring and prosecution of their Fourth Amended Joint Plan
of Reorganization to confirmation on Aug. 1, 2005.  As of
Dec. 31, 2004, the Company listed assets totaling approximately
US$1.2 billion and liabilities totaling approximately US$2.3
billion.


LORAL SPACE: Promotes John Celli to Pres. of Space Systems/Loral
----------------------------------------------------------------
Loral Space & Communications Inc. promoted John Celli to
president and chief operating officer of Loral's satellite
manufacturing subsidiary, Space Systems/Loral (SS/L).

John Celli, previously executive vice president of the company,
will succeed Mr. Patrick DeWitt, who has been promoted chief
executive officer of SS/L, as president.

With nearly 30 years of experience, Mr. Celli, is a veteran of
the satellite industry.  Starting in 2001, Celli served as
SS/L's senior vice president of engineering, manufacturing and
test operations, where he was responsible for the development,
manufacturing, testing and procurement for all SS/L satellites,
as well as managing the company's materiel, information systems
and facilities organizations.  He originally joined the company
in 1981 as an antenna mechanical engineer and has held
increasingly important roles with the company. Before joining
SS/L, Mr. Celli held various engineering and project management
roles with the Space and Ground Systems division of Alenia
S.P.A.  In addition, from 1975 to 1980 he taught mechanical
engineering at the University of Rome.  Mr. Celli holds a
master's degree in mechanical engineering from the University of
Rome.

                 About Space/Systems Loral

Headquartered in Palo Alto, Calif., Space Systems/Loral -
http://www.ssloral.com/ -- is a premier designer, manufacturer,
and integrator of powerful satellites and satellite systems.
SS/L also provides a range of related services that include
mission control operations and procurement of launch services.
The company has an international base of commercial and
governmental customers whose applications include broadband
digital communications, direct-to-home broadcast, defense
communications, environmental monitoring, and air traffic
control.  SS/L satellites have amassed more than 1,300 years of
reliable on-orbit service. SS/L is ISO 9001:2000 certified.

                     About Loral Space

Loral Space & Communications -- http://www.loral.com/-- is a
satellite communications company.  It owns and operates a fleet
of telecommunications satellites used to broadcast video
entertainment programming, distribute broadband data, and
provide access to Internet services and other value-added
communications services.  Loral also is a world-class leader in
the design and manufacture of satellites and satellite systems
for commercial and government applications including direct-to-
home television, broadband communications, wireless telephony,
weather monitoring and air traffic management.

The Company and various affiliates filed for chapter 11
protection (Bankr. S.D.N.Y. Case No. 03-41710) on July 15, 2003.
Stephen Karotkin, Esq., and Lori R. Fife, Esq., at Weil, Gotshal
& Manges LLP, represented the Debtors in their successful
restructuring and prosecution of their Fourth Amended Joint Plan
of Reorganization to confirmation on Aug. 1, 2005.  As of
Dec. 31, 2004, the Company listed assets totaling approximately
US$1.2 billion and liabilities totaling approximately US$2.3
billion.




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


ARACRUZ CELULOSE: Fitch Ups Foreign Currency Rating to BBB-
-----------------------------------------------------------
Fitch Ratings upgraded Aracruz Celulose S.A.'s foreign currency
rating to BBB- with a stable outlook, from BB+ with a positive
outlook.  This rating action follows Fitch's upgrade of the
long-term foreign and local currency IDRs of the Federative
Republic of Brazil to BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


BRASKEM INT'L: Fitch Ups Rating on US$150MM Senior Notes to BB+
---------------------------------------------------------------
Fitch Ratings upgraded its rating on Braskem International
Ltd.'s US$150 million senior unsecured notes due 2015 to BB+
from BB.  This rating action follows Fitch's upgrade of the
long-term foreign and local currency IDRs of the Federative
Republic of Brazil to BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


BRASKEM SA: Fitch Ups Foreign Currency Rating to BB+ from BB
------------------------------------------------------------
Fitch Ratings upgraded these ratings of Braskem S.A.:

   -- Foreign Currency IDR: To BB+ Rating with Stable Outlook,
      from BB Rating with Positive Outlook;

   -- US$525 million Sr. Unsecured notes due 2008, 2014: To BB+,
      from BB;

   -- US$350 million Perpetual Bonds: To BB+, from BB;

   -- National Long-term Rating: To 'AA(bra)' from 'AA-(bra)';
      and

   -- BRL600 million 12th and 13th Debenture Issuances due 2009
      and 2010: To 'AA(bra)' from 'AA-(bra)'.

These rating actions follow Fitch's upgrade of the long-term
foreign and local currency IDRs of the Federative Republic of
Brazil to BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


COMPANHIA SIDERURGICA: Fitch Ups Foreign Currency Rating to BBB-
----------------------------------------------------------------
Fitch Ratings upgraded these ratings of Companhia Siderurgica de
Tubarao aka CST:

   -- Foreign Currency IDR: To BBB- with Stable Outlook, from
      BB+ with Positive Outlook; and

   -- National Long-term Rating: To 'AA(bra)' from 'AA-(bra)';

These rating actions follow Fitch's upgrade of the long-term
foreign and local currency IDRs of the Federative Republic of
Brazil to BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


CST OVERSEAS: Fitch Ups Foreign Curr. Rating to BBB- from BB+
-------------------------------------------------------------
Fitch Ratings upgraded CST Overseas' foreign currency rating to
BBB- with a stable outlook, from BB+ with a positive outlook.
This rating action follows Fitch's upgrade of the long-term
foreign and local currency IDRs of the Federative Republic of
Brazil to BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


COMPANHIA VALE: Fitch Ups Foreign Curr. Rating to BBB- from BB+
---------------------------------------------------------------
Fitch Ratings upgraded Companhia Vale do Rio Doce aka CVRD's
foreign currency rating to BBB- with a stable outlook, from BB+
with a positive outlook.  This rating action follows Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


GERDAU ACOMINAS: Fitch Ups Foreign Curr. Rating to BBB- from BB+
----------------------------------------------------------------
Fitch Ratings upgraded these ratings of Gerdau Acominas S.A.:

   -- Foreign Currency IDR: To BBB- with Stable Outlook, from
      BB+  with Positive Outlook; and

   -- National Long-term Rating: To 'AA+(bra)' from 'AA(bra)'.

These rating actions follow Fitch's upgrade of the long-term
foreign and local currency IDRs of the Federative Republic of
Brazil to BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


GERDAU SA: Fitch Maintains BB+ Foreign Currency Issuer Rating
-------------------------------------------------------------
Fitch Ratings upgraded to 'BBB-' from 'BB+' the US$600 million
8.875% guaranteed perpetual senior notes issued by Gerdau S.A.
in September 2005.  Fitch has also upgraded to 'BBB-' from 'BB+'
the rating of the proposed senior unsecured 10-year bond to be
issued by GTL Trade Finance Inc., a wholly owned subsidiary of
Gerdau.  In addition, Fitch maintains a 'BB+' foreign currency
IDR for Gerdau. The Rating Outlook is Stable.

These ratings actions follow Fitch's upgrade of the foreign
currency issuer default rating of Gerdau's Brazilian operating
subsidiary, Gerdau Acominas S.A. to 'BBB-' from 'BB+'.  Gerdau
and its four majority-owned Brazilian operating subsidiaries:

   -- Acominas,
   -- Gerdau Acos Longos S.A.,
   -- Gerdau Acos Especiais S.A. and
   -- Gerdau Comercial de Acos S.A.;

unconditionally and irrevocably, jointly and severally guarantee
the perpetual notes and bonds.

The retained BB+ foreign currency rating reflects the favorable
business positions of Gerdau's main steel production
subsidiaries, Acominas, Acos Longos and Gerdau Ameristeel
Corporation, as well as the group's strong consolidated
financial profile characterized by low leverage and healthy
liquidity.  In 2005, Gerdau continued its strong performance,
generating consolidated net revenues of US$8.9 billion and
operating EBITDA of US$2.0 billion.  Compared with the prior
year, revenues and operating EBITDA increased by 28% and 3%,
respectively mainly due to the continuing high spread between
steel prices and scrap prices as well as the inclusion in
consolidated 2005 results of acquired assets such as North Star
Steel, Diaco and Sipar.  With total consolidated debt of about
US$3.4 billion (including an adjustment of about US$200 million
for operating leases and guaranteed debt) and cash of US$2.3
billion at Dec. 31, 2005, Gerdau's leverage, as measured by net
debt to operating EBITDA, decreased to 0.6 times from 1.0x in
2004, and the ratio of total debt to operating EBITDA increased
to 1.7x from 1.3x. Liquidity remains manageable, as cash and
marketable securities cover short-term debt by 4.1x.

Although Gerdau is geographically well diversified, with 54% of
its total production capacity outside Brazil, approximately 64%
of the company's consolidated operating EBITDA was generated by
its Brazilian operating subsidiaries.  This exposure, as well as
the overall risk of the cyclical steel industry, is factored
into Gerdau's ratings and the credit assessment of its operating
subsidiaries.

Gerdau's 'BB+' foreign currency IDR exceeds Brazil's country
ceiling rating of 'BB' due to:

   -- the benefits of owning 65.2% of Ameristeel, the second
      largest producer of long-steel products in North
      America;

   -- significant exports by its Brazilian subsidiaries; and

   -- substantial cash balances both in Brazil and outside of
      the country.

The combination of these three factors, plus management's long-
term commitment to maintaining a conservative credit profile,
should allow the company to make payment on its foreign currency
obligations in a timely manner in the event of capital and
exchange controls being imposed by the Brazilian government
during a sovereign crisis.

Headquartered in Porto Alegre, Brazil, Gerdau is a holding
company for the group's steel production facilities in North and
South America and Europe.  The Gerdau companies operate mini-
mill and integrated-steel facilities in Brazil, Argentina,
Chile, Colombia, Uruguay, the United States, Canada, and Spain
and have a crude steel production capacity of 18.7 million tons
in 2006.  Gerdau owns 89.3% of its Brazilian operating
companies, which consist primarily of the Acominas and Acos
Longos and have a combined production capacity of about 9.0
million tons of crude steel.  In North America, Gerdau owns
65.2% of Ameristeel that ranks as the second-largest producer of
long-steel products with an annual production capacity of 8.3
million tons, including the Gallatin Steel joint venture.


GOL LINHAS: Fitch Ups Foreign Currency Rating to BB from BB-
------------------------------------------------------------
Fitch Ratings upgraded the foreign currency rating of GOL Linhas
Aereas Inteligentes S.A. to BB from BB-, with positive outlook.
This rating action follows Fitch's upgrade of the long-term
foreign and local currency IDRs of the Federative Republic of
Brazil to BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


MRS LOGISTICA: Fitch Ups Foreign Currency Rating to BB from BB-
---------------------------------------------------------------
Fitch Ratings upgraded the foreign currency rating of MRS
Logistica S.A. to BB from BB-, with positive outlook.  This
rating action follows Fitch's upgrade of the long-term foreign
and local currency IDRs of the Federative Republic of Brazil to
BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


PETROLEO BRASILEIRO: Fitch Ups Foreign Currency Rating to BB+
-------------------------------------------------------------
Fitch Ratings upgraded the foreign currency rating of Petroleo
Brasileiro S.A. to BB+ from BB, with positive outlook.  This
rating action follows Fitch's upgrade of the long-term foreign
and local currency IDRs of the Federative Republic of Brazil to
BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


RIPASA SA: Fitch Upgrades Foreign Currency Rating to BB from BB-
----------------------------------------------------------------
Fitch Ratings upgraded these ratings of Ripasa S.A. Celulose e
Papel:

   -- Foreign Currency IDR: To BB with Stable Outlook, from BB-
      with Positive Outlook; and

   -- National Long-term Rating: To 'AA-(bra)' from 'A+(bra)'.

These rating actions follow Fitch's upgrade of the long-term
foreign and local currency IDRs of the Federative Republic of
Brazil to BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


SAMARCO MINERACAO: Fitch Ups Foreign Currency Rating to BBB-
------------------------------------------------------------
Fitch Ratings upgraded Samarco Mineracao S.A.'s foreign currency
rating to BBB- with a stable outlook, from BB+ with a positive
outlook.  This rating action follows Fitch's upgrade of the
long-term foreign and local currency IDRs of the Federative
Republic of Brazil to BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


TELE NORTE: Fitch Ups Foreign Currency Rating to BB from BB-
------------------------------------------------------------
Fitch Ratings upgraded the foreign currency rating of Tele Norte
Leste Participacoes S.A. to BB from BB-, with positive outlook.
This rating action follows Fitch's upgrade of the long-term
foreign and local currency IDRs of the Federative Republic of
Brazil to BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


TELEMAR NORTE: Fitch Ups Foreign Currency Rating to BB from BB-
---------------------------------------------------------------
Fitch Ratings upgraded the foreign currency rating of Telemar
Norte Leste S.A. to BB from BB-, with positive outlook.  This
rating action follows Fitch's upgrade of the long-term foreign
and local currency IDRs of the Federative Republic of Brazil to
BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.


VOTORANTIM PARTICIPACOES: Fitch Ups Foreign Curr. Rating to BBB-
----------------------------------------------------------------
Fitch Ratings upgraded Votorantim Participacoes S.A.'s foreign
currency rating to BBB- with a stable outlook, from BB+ with a
positive outlook.  This rating action follows Fitch's upgrade of
the long-term foreign and local currency IDRs of the Federative
Republic of Brazil to BB, from BB- on June 29, 2006.

"Our foreign currency corporate upgrades reflect Brazil's
improving external balance sheet, which translates to lower risk
for the Brazilian corporates", said Daniel R. Kastholm, head of
Latin America Corporate Ratings at Fitch.  "Lower transfer and
convertibility risk and a more robust sovereign and economic
environment bode well for corporate fundamentals.  Exporters in
particular have benefited from a favorable global environment
and maintained strong performance despite the strengthening of
the Brazilian Real."

"Brazilian corporates have taken advantage of strong global
liquidity to extend maturities, lower financing costs and
increase equity capital which collectively have strengthened
many corporate balance sheets," said Rafael Guedes, Managing
Director of Fitch Brasil. "Lower nominal and real interest rates
in Brazil, further underpin economic recovery in Brazil, which
should benefit many of the private sector corporates.
Improvement in regulated industries and high commodity prices
have also helped bolster corporate credit fundamentals.  These
factors, among others are reflected in our national scale long-
term rating upgrades."

Fitch's upgrade of the Federative Republic of Brazil's ratings
are a result of the country's on-going improvement in public and
private external finances and a macroeconomic policy framework
that has proved robust in the face of political and financial
market pressures.  The rating upgrades also reflect Brazil's
enhanced external balance sheet and the fact that the country
has weathered the latest storm affecting the capital markets in
emerging countries.  Fitch believes that Brazil's next
administration will continue to maintain prudent fiscal and
monetary policies but that it is unlikely to implement deep
structural reforms.

Many Brazilian corporate ratings continue to be linked to the BB
foreign currency IDR of the sovereign.




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


AVENIR MASTER: Last Day to File Proofs of Claim Is on July 26
-------------------------------------------------------------
Avenir Master Fund Limited's creditors are required to submit
proofs of claim by July 26, 2006, to the company's liquidator:

   Geoffrey Varga
   Brian Forrester
   Kinetic Partners Cayman LLP
   Strathvale House
   P.O. Box 10387APO
   Grand Cayman, Cayman Islands
   Tel: (345) 623-9901
   Fax: (345) 623-0007

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

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


COMMONWEALTH INVESTMENTS: Proofs of Claim Must be In by July 26
---------------------------------------------------------------
Commonwealth Investments Associates Limited's creditors are
required to submit proofs of claim by July 26, 2006, to the
company's liquidator:

   Sandy Perez
   P.O. Box 191818, San Juan
   Puerto Rico, 00919-1818

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

Commonwealth Investments' shareholders agreed on June 7, 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:

   Lesley Walker
   P.O. Box 707, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 945-4777
   Fax: (345) 945-4799


CORNICE (LEVEL I): Shareholders Vote to Liquidate Business
----------------------------------------------------------
Cornice Portfolios Level I Ltd.'s shareholders decided on
Feb. 28, 2006, to place the company in voluntary liquidation
under the Companies Law (2004 Revision) of the Cayman Islands.

Cititrust (Bahamas) Limited was appointed as liquidator to
facilitate the winding up of Cornice Portfolios' business.

The liquidator can be reached at:

    Cititrust (Bahamas) Limited
    P.O. Box N-1576, Citibank Building
    Thompson Boulevard, Oakes Field
    Nassau, Bahamas


CORNICE (LEVEL II): Shareholders Voluntarily Liquidate Company
--------------------------------------------------------------
Cornice Portfolios Level II Ltd.'s shareholders decided on
Feb. 28, 2006, to place the company in voluntary liquidation
under the Companies Law (2004 Revision) of the Cayman Islands.

Cititrust (Bahamas) Limited was appointed as liquidator to
facilitate the winding up of Cornice Portfolios' business.

The liquidator can be reached at:

    Cititrust (Bahamas) Limited
    P.O. Box N-1576, Citibank Building
    Thompson Boulevard, Oakes Field
    Nassau, Bahamas


CORNICE (LEVEL III): Shareholders Vote to Liquidate Company
-----------------------------------------------------------
Cornice Portfolios Level III Ltd.'s shareholders decided on
Feb. 28, 2006, to place the company in voluntary liquidation
under the Companies Law (2004 Revision) of the Cayman Islands.

Cititrust (Bahamas) Limited was appointed as liquidator to
facilitate the winding up of Cornice Portfolios's business.

The liquidator can be reached at:

    Cititrust (Bahamas) Limited
    P.O. Box N-1576, Citibank Building
    Thompson Boulevard, Oakes Field
    Nassau, Bahamas


INDAIR LEASING: Deadline to File Proofs of Claim Is on July 26
--------------------------------------------------------------
Indair Leasing (Cayman) Limited's creditors are required to
submit proofs of claim by July 26, 2006, to the company's
liquidator:

   John Cullinane
   Derrie Boggess
   c/o Walkers SPV Limited
   P.O. Box 908, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 914-6305

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

Indair Leasing's shareholders agreed on June 12, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


HARTVILLE GROUP: Posts US$2MM Net Loss in Quarter Ended March 31
----------------------------------------------------------------
Hartville Group, Inc., filed its financial statements for the
quarter ended March 31, 2006, with the US Securities and
Exchange Commission.

Hartville reported a US$2,479,978 net loss on US$1,336,632 of
gross revenues for the three months ended March 31, 2006, versus
a US$2,093,903 net loss on US$1,090,796 of gross revenues for
the three months ended March 31, 2005.

At March 31, 2006, Hartville's balance sheet showed US$7,191,820
in total assets and US$3,821,686 in total liabilities resulting
in a stockholders' equity of US$3,370,134.

Full-text copies of Hartville's financial statements for the
quarter ended March 31, 2006, are available for free at:

               http://ResearchArchives.com/t/s?c73

                     Going Concern Doubt

As reported in the Troubled Company Reporter on May 4, 2006,
BDO Seidman, LLP, raised substantial doubt about the ability of
Hartville Group, Inc., to continue as a going concern after
auditing the company's consolidated financial statements for the
years ended Dec. 31, 2004, and 2005.  The auditing firm pointed
to the company's recurring losses from operations, substantial
accumulated deficit, and impending due dates of some material
financial obligations.

                 About Hartville Corporation

Hartville Group, Inc. -- http://www.hartvillegroup.com/-- is a
holding company whose wholly owned subsidiaries include
Hartville Re Ltd. and Petsmarketing Insurance.com Agency, Inc.
Hartville is a reinsurance company that is registered in the
Cayman Islands, British West Indies.  Hartville was formed to
reinsure pet health insurance that is being marketed by the
Agency.  The Agency is primarily a marketing/administration
company concentrating on the sale of its proprietary health
insurance plans for domestic pets.  Its business plan calls for
introducing its product effectively and efficiently through a
variety of distribution systems.  The Company accepts
applications, underwrites and issues policies.


MESPIL FUND: Sets July 26 Deadline for Proofs of Claim Filing
-------------------------------------------------------------
Mespil Fund Limited's creditors are required to submit proofs of
claim by July 26, 2006, to the company's liquidator:

   Geoffrey Varga
   Brian Forrester
   Kinetic Partners Cayman LLP
   Strathvale House
   P.O. Box 10387APO
   Grand Cayman, Cayman Islands
   Tel: (345) 623-9901
   Fax: (345) 623-0007

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

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


MESPIL MASTER: Creditors Must File Proofs of Claim by July 26
-------------------------------------------------------------
The Mespil Master Fund Limited's creditors are required to
submit proofs of claim by July 26, 2006, to the company's
liquidator:

   Geoffrey Varga
   Brian Forrester
   Kinetic Partners Cayman LLP
   Strathvale House
   P.O. Box 10387APO
   Grand Cayman, Cayman Islands
   Tel: (345) 623-9901
   Fax: (345) 623-0007

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

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


MPC COMMODITY: Proofs of Claim Must be Submitted by July 26
-----------------------------------------------------------
MPC Commodity (General Partner) Inc.'s creditors are required to
submit proofs of claim by July 26, 2006, to the company's
liquidators:

   Linburgh Martin
   John Sutlic
   P.O. Box 1034, 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 liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

MPC Commodity's shareholders agreed on Apr. 28, 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:

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


MPC COMMODITY FUND: Proofs of Claim Must be Filed by July 26
------------------------------------------------------------
MPC Commodity Fund Inc.'s creditors are required to submit
proofs of claim by July 26, 2006, to the company's liquidators:

   Linburgh Martin
   John Sutlic
   P.O. Box 1034, 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 liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

MPC Commodity Fund's shareholders agreed on Apr. 28, 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:

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


PRIMUS JAPAN: Proofs of Claim Filing Deadline Is on July 26
-----------------------------------------------------------
Primus Japan Funding 03-B Holding Company's creditors are
required to submit proofs of claim by July 26, 2006, to the
company's liquidator:

   John Cullinane
   Derrie Boggess
   c/o Walkers SPV Limited
   P.O. Box 908, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 914-6305

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

Primus Japan's shareholders agreed on June 13, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


SUCCESSOR II: Moody's Rates US$73.2MM Class A Notes at B3
---------------------------------------------------------
Moody's Investors Service assigned a B3 rating to the
US$73,200,000 Series 1 Class A Principal At-Risk Variable Rate
Notes due June 6, 2008, issued by Successor II Ltd., a special
purpose Cayman Islands exempted company for the benefit of Swiss
Reinsurance Company

In addition, Successor II Ltd. issued US$154,250,000 Series 1
Class E Principal At-Risk Variable Rate Notes due June 6, 2008
that was not rated by Moody's.

Investors in the Notes effectively provide reinsurance coverage
to Swiss Reinsurance Company from four perils:

   -- certain hurricanes in the North Atlantic,
   -- certain windstorms in Europe,
   -- certain earthquakes in California, and
   -- certain earthquakes in Japan.

Moody's ratings address the ultimate cash receipt of all
required interest and principal payments as provided by the
governing documents, and is based on the expected loss posed to
the note holders relative to the promise of receiving the
present value of such payments.  The rating is based on Moody's
analysis of the probability of occurrence of qualifying events,
their timing and the severity of losses experienced by investors
should those events occur during the risk period.  Moody's
review of the transaction has included extensive review of the
technical basis, methodology and historical data used to develop
the probabilistic risk model used by EQECAT for the analysis of
potential losses and sensitivity analysis of critical parameters
of the model.

This review, together with a detailed analysis of the
transaction's legal structure and the financial strength of the
various parties to the transaction, provided Moody's with
sufficient comfort that the resulting ratings adequately
captures the risk to investors in these securities.


SUCCESSOR IV: Moody's Rates US$30MM Series 1 Class A Notes at B3
----------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to to the
US$30,000,000 Series 1 Class A Principal At-Risk Variable Rate
Notes due June 6, 2008, issued by Successor IV Ltd., a special
purpose Cayman Islands exempted company for the benefit of Swiss
Reinsurance Company.

Investors in the Notes effectively provide reinsurance coverage
to Swiss Reinsurance Company from two perils: certain hurricanes
in the North Atlantic and certain windstorms in Europe.

Moody's ratings address the ultimate cash receipt of all
required interest and principal payments as provided by the
governing documents, and is based on the expected loss posed to
the note holders relative to the promise of receiving the
present value of such payments.  The rating is based on Moody's
analysis of the probability of occurrence of qualifying events,
their timing and the severity of losses experienced by investors
should those events occur during the risk period.  Moody's
review of the transaction has included extensive review of the
technical basis, methodology and historical data used to develop
the probabilistic risk model used by EQECAT for the analysis of
potential losses and sensitivity analysis of critical parameters
of the model.

This review, together with a detailed analysis of the
transaction's legal structure and the financial strength of the
various parties to the transaction, provided Moody's with
sufficient comfort that the resulting ratings adequately
captures the risk to investors in these securities.


SUCCESSOR CAL: Moody's Rates US$47.5MM Notes Due 2008 at Ba3
------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to the
US$47,500,000 Series 1 Class A Principal At-Risk Variable Rate
Notes due June 6, 2008 by Successor Cal Quake Parametric Ltd., a
special purpose Cayman Islands exempted company for the benefit
of Swiss Reinsurance Company.

Investors in the Notes effectively provide reinsurance coverage
to Swiss Reinsurance Company from certain earthquakes in
California.

Moody's ratings address the ultimate cash receipt of all
required interest and principal payments as provided by the
governing documents, and is based on the expected loss posed to
the note holders relative to the promise of receiving the
present value of such payments.  The rating is based on Moody's
analysis of the probability of occurrence of qualifying events,
their timing and the severity of losses experienced by investors
should those events occur during the risk period.  Moody's
review of the transaction has included extensive review of the
technical basis, methodology and historical data used to develop
the probabilistic risk model used by EQECAT for the analysis of
potential losses and sensitivity analysis of critical parameters
of the model.

This review, together with a detailed analysis of the
transaction's legal structure and the financial strength of the
various parties to the transaction, provided Moody's with
sufficient comfort that the resulting ratings adequately
captures the risk to investors in these securities.


SUCCESSOR EURO: Moody's Assigns Low B Ratings on Variable Notes
---------------------------------------------------------------
Moody's Investors Service assigned ratings to the following
Notes issued by Successor Euro Wind Ltd., a special purpose
Cayman Islands exempted company for the benefit of Swiss
Reinsurance Company:

   -- Ba3 to the US$97,130,000 Series 1 Class A Principal
      At-Risk Variable Rate Notes due June 6, 2008;

   -- B1 to the US$18,500,000 Series 1 Class B Principal
      At-Risk Variable Rate Notes due June 6, 2008;

   -- B3 to the US$110,750,000 Series 1 Class C Principal
      At-Risk Variable Rate Notes due June 6, 2008;

   -- Ba3 to the US$3,000,000 Series 2 Class A Principal
      At-Risk Variable Rate Notes due June 6, 2007; and

   -- B3 to the US$3,000,000 Series 2 Class C Principal
      At-Risk Variable Rate Notes due June 6, 2007.

Investors in the Notes effectively provide reinsurance coverage
to Swiss Reinsurance Company from certain windstorms in Europe.

Moody's ratings address the ultimate cash receipt of all
required interest and principal payments as provided by the
governing documents, and is based on the expected loss posed to
the note holders relative to the promise of receiving the
present value of such payments.  The rating is based on Moody's
analysis of the probability of occurrence of qualifying events,
their timing and the severity of losses experienced by investors
should those events occur during the risk period.  Moody's
review of the transaction has included extensive review of the
technical basis, methodology and historical data used to develop
the probabilistic risk model used by EQECAT for the analysis of
potential losses and sensitivity analysis of critical parameters
of the model.

This review, together with a detailed analysis of the
transaction's legal structure and the financial strength of the
various parties to the transaction, provided Moody's with
sufficient comfort that the resulting ratings adequately
captures the risk to investors in these securities.


SUCCESSOR HURRICANE: Moody's Puts Low B Ratings on Three Notes
--------------------------------------------------------------
Moody's Investors Service assigned ratings to the following
Notes issued by Successor Hurricane Industry Ltd., a special
purpose Cayman Islands exempted company for the benefit of Swiss
Reinsurance Company:

   -- B1 to the US$14,000,000 Series 1 Class B Principal
      At-Risk Variable Rate Notes due December 6, 2007;

   -- B2 to the US$7,250,000 Series 1 Class C Principal
      At-Risk Variable Rate Notes due December 6, 2007; and

   -- B2 to the US$54,000,000 Series 1 Class F Principal
      At-Risk Variable Rate Notes due December 6, 2007.

In addition, Successor Hurricane Industry Ltd. issued:

   -- US$34,250,000 Series 1 Class D Principal At-Risk Variable
      Rate Notes due December 6, 2007;

   -- US$5,000,000 Series 1 Class E Principal At-Risk Variable
      Rate Notes due December 6, 2007;

   -- US$10,250,000 Series 2 Class D Principal At-Risk Variable
      Rate Notes due June 6, 2007; and

   -- US$35,000,000 Series 2 Class E Principal At-Risk Variable
      Rate Notes due June 6, 2007

that were not rated by Moody's.

Investors in the Notes effectively provide reinsurance coverage
to Swiss Reinsurance Company from certain hurricanes in the
North Atlantic.

Moody's ratings address the ultimate cash receipt of all
required interest and principal payments as provided by the
governing documents, and is based on the expected loss posed to
the note holders relative to the promise of receiving the
present value of such payments.  The rating is based on Moody's
analysis of the probability of occurrence of qualifying events,
their timing and the severity of losses experienced by investors
should those events occur during the risk period.  Moody's
review of the transaction has included extensive review of the
technical basis, methodology and historical data used to develop
the probabilistic risk model used by EQECAT for the analysis of
potential losses and sensitivity analysis of critical parameters
of the model.

This review, together with a detailed analysis of the
transaction's legal structure and the financial strength of the
various parties to the transaction, provided Moody's with
sufficient comfort that the resulting ratings adequately
captures the risk to investors in these securities.


SUCCESSOR JAPAN: Moody's Puts Low B Ratings on Variable Notes
-------------------------------------------------------------
Moody's Investors Service assigned ratings to the following
Notes issued by Successor Japan Quake Ltd., a special purpose
Cayman Islands exempted company for the benefit of Swiss
Reinsurance Company:

   -- Ba3 to the US$103,470,000 Series 1 Class A Principal
      At-Risk Variable Rate Notes due June 6, 2008;

   -- B1 to the US$26,250,000 Series 1 Class B Principal
      At-Risk Variable Rate Notes due June 6, 2008;

   -- B3 to the US$70,750,000 Series 1 Class C Principal
      At-Risk Variable Rate Notes due June 6, 2008; and

   -- B3 to the US$3,000,000 Series 2 Class C Principal
      At-Risk Variable Rate Notes due June 6, 2007.

Investors in the Notes effectively provide reinsurance coverage
to Swiss Reinsurance Company from certain earthquakes in Japan.

Moody's ratings address the ultimate cash receipt of all
required interest and principal payments as provided by the
governing documents, and is based on the expected loss posed to
the note holders relative to the promise of receiving the
present value of such payments.  The rating is based on Moody's
analysis of the probability of occurrence of qualifying events,
their timing and the severity of losses experienced by investors
should those events occur during the risk period.  Moody's
review of the transaction has included extensive review of the
technical basis, methodology and historical data used to develop
the probabilistic risk model used by EQECAT for the analysis of
potential losses and sensitivity analysis of critical parameters
of the model.

This review, together with a detailed analysis of the
transaction's legal structure and the financial strength of the
various parties to the transaction, provided Moody's with
sufficient comfort that the resulting ratings adequately
captures the risk to investors in these securities.




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


CELLSTAR CORP: Extends Agreements with Motorola in LatAm & US
-------------------------------------------------------------
CellStar Corp. extended its current distribution agreements with
Motorola, Inc., in the U.S. and Latin America.  Negotiations
pertaining to a new agreement between the two companies will
continue. The U.S. extension automatically renews monthly until
a new agreement is in place.  The Latin American extension
expires on August 31, 2006. The extensions will allow the
companies more time to complete a new agreement.

Under the current agreement CellStar is the primary distributor
for Motorola's wireless products to certain carriers and dealers
throughout the United States.  The strategic relationship
between Motorola and CellStar began in 1989 and encompasses a
wide array of wireless handsets and accessories offered by
Motorola's Personal Communications Sector.

                 About CellStar Corporation

CellStar Corporation -- http://www.cellstar.com-- is a leading
provider of logistics and distribution services to the wireless
communications industry.  CellStar has operations in North
America and Latin America, and distributes handsets, related
accessories and other wireless products from leading
manufacturers to an extensive network of wireless service
providers, agents, MVNO's, insurance/warranty providers and big
box retailers.  CellStar specializes in completely integrated
forward and reverse logistics solutions, repair and
refurbishment services, and in some of its markets, provides
activation services that generate new subscribers for wireless
service providers.

CellStar's Latin America Region includes offices in Chile and
Mexico with the Regional Headquarters located in Miami, Florida
USA.

                        *    *    *

Moody's Investor Service assigned these ratings to CellStar
Corporation:

      * subordinated debt -- Ca; and
      * long-term corporate family rating -- B3.




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


AES CHIVOR: S&P Says B+ Ratings Reflect Volatile Cash Flow
----------------------------------------------------------
The 'B+' ratings on AES Chivor & CIA SCA ESP reflect the
challenges of operating in the highly competitive and largely
hydro-based Colombian electricity system as well as the
company's relatively volatile cash flow generation.  These
weaknesses are partly offset by the company's sizable portfolio
of short- and medium-term power sales contracts (42% of revenues
in fiscal 2005), mainly with local electric distribution
companies at a fixed price in Colombian pesos and indexed by
local inflation.  In addition, Chivor benefits from low variable
power generation cost, a relatively large dam, and favorable
hydrology within its region.

Chivor generates about 4,000 gigawatt-hours per year, and has
short-and medium-term sales contracts (of up to three years) for
about 2,000 GWh to 2,500 GWh.  In addition, the company seeks to
optimize the use of available water and cash flow generation by
purchasing power in the spot market (1,642 GWh in 2004 and 2,134
GWh in 2005) to meet part of its contractual obligations, as
well as use its own generation to sell in the spot market,
depending on the spread between contract and spot prices.
Chivor's total sales reached 5,944 GWh and 6,350 GWh in fiscal
2004 and 2005, respectively.  Also, Chivor derives about 10%-15%
of revenues from ancillary services such as frequency control.

Chivor's financing structure has changed significantly since a
restructuring process in 2002.  In November 2004, Chivor
refinanced its restructured debt with proceeds from a US$170
million 10-year bullet 9.75% fixed-rate secured bond and a
Colombian peso 210 billion (about US$90 million) seven-year
amortizing syndicated bank loan.  While the new debt
significantly extended Chivor's maturity schedule and lowered
its relatively high foreign exchange risk, it resulted in
increased interest costs.  However, Chivor's good financial
performance in 2005, coupled with favorable market conditions,
allowed it to prepay part of its syndicated bank loan and to
renegotiate the outstanding balance in December 2005 at a lower
cost (reducing the cost of the bank debt by about 300 basis
points).  Chivor's funds from operations interest coverage
deteriorated to 3.1x in fiscal 2005 from 3.7x in 2004 due to the
significant increase in interest expenses, and FFO to total
average debt increased to 22.8% in 2005 from 16.8% in 2004,
mainly due to the higher FFO coupled with the decrease in debt.
These ratios should continue to benefit from further debt
reductions and from the lower cost of the latest bank debt,
becoming about 3.5x and 25% in the 2006-2007 period.

Chivor is the fourth-largest power generator in Colombia through
its ownership of a 1,000 MW hydropower plant that represents
about 8% of the country's total installed capacity.  Chivor was
privatized and acquired by Chile's largest thermal generator,
AES Gener S.A. (BBB-/Stable/--) in December 1996.  The AES Corp.
(BB-/Stable/--) acquired AES Gener in January 2001.

Liquidity

Chivor's liquidity significantly improved during 2005, as
evidenced by a cash position of US$50 million as of March 31,
2006, which largely exceeded its US$18 million short-tem
financial debt.  In addition, the company's financial
improvement resulted in more financial flexibility, as evidenced
by the refinancing of its bank debt at a lower cost in December
2005.  However, the company's cash position is expected to
decrease during fiscal 2006 as a result of the projected
relatively large dividend payments.  Still, Chivor should have
relatively good cash flow generation that should allow it to
finance its low capital expenditure needs (about US$2 million to
US$3 million per year), comfortably face the quarterly
amortization of its bank debt (about US$3 million per quarter),
and make additional prepayments.

Outlook

The stable outlook reflects Standard & Poor's Ratings Services'
expectations that, by reducing debt and improving cash flow,
Chivor will maintain a financial risk profile commensurate with
the rating category.  The ratings could be raised if the
company's debt-service coverage ratios further improve to more
than 3.5x and 25% when measured by FFO interest coverage and FFO
to average total debt, and if financial flexibility continues
improving.  However, a deterioration of market conditions in
Colombia or an increase in debt levels could pressure the
current ratings.


BAVARIA SA: To Sell Juice Business for US$55.3MM to Postobon
------------------------------------------------------------
Postobon S.A. entered into a purchase agreement under which it
will acquire Productora de Jugos S.A., the Colombian-based juice
business of Bavaria, S.A., a subsidiary of SABMiller plc, for
US$55.3 million in an all-cash transaction.  Postobon will
purchase 100% of the shares of Productora de Jugos including the
Tutti Frutti and Orense trademarks and certain assets associated
with juice production.  Completion of the transaction is subject
to approval by the Colombian regulatory authorities and
Postobon's bondholders.

Carlos Ardila Lulle, Productora de Jugos S.A. chairman stated,
"With this investment, Postobon will combine its expertise in
the agro-industry to develop an export platform for fruits and
related products, a sector in which Colombia has lagged,
compared to peer countries, despite itsagro-industrial strength.
The acquisition of SABMiller's Colombian juice operation
strengthens our objective of attaining an ideal business
platform in both distribution and manufacturing of tropical
fruit drinks and allows us to capitalize on the growing demand
for tropical fruit-related products as worldwide consumers
become more health-conscious."

Separately, SABMiller plc, the majority shareholder of Bavaria
S.A., has signed a co-operation agreement with Carbe, the
majority shareholder of Postobon, which includes an intention to
assist Postobon in the development of its international markets.
This will enable Organizacion Ardila Lulle to take advantage of
the U.S.-Colombia Free Trade Agreement that will allow the
export of agro-industrial products to the United States under
highly favorable conditions.  The agreement includes, inter
alia, that SABMiller has the right of first refusal in the event
of a sale of the Postobon beverage business.

Hector Fernando Garcia, Postobon's CEO added, "We hope to enjoy
a trajectory similar to that of Colombia's fresh cut flower
export industry, a sector which didn't exist 30 years ago and
now amounts to US$1 billion per year in sales, positioning
Colombia as the second-largest exporter of fresh flowers in the
world.  Our goal is to do the same with the tropical fruit
sector."

                        About Postobon

Postobon S.A., a flagship company of the Organizacion Ardila
Lulle, is one of the market leaders in the carbonated soft
drinks sector in Colombia.  The company's brands include
Colombiana, Postobon and Pepsi.

                      About Bavaria S.A.

Bavaria S.A., through its subsidiaries, produces and distributes
beer, bottled water, juice drinks, malt beverages, and soft
drinks. In Colombia and Peru, it owns nearly 1005 of both
countries' beer market with the brands Aguila and Cristal
respectively.  Its operations in Ecuador involve suds
production.  In Panama, controls the market for suds and bottles
Pepsi brands.  The company also has operations in Bolivia, Chile
and Costa Rica.

Brands include Aguila cerveza, Costena, Cerveza Clara Pilsen,
Poker, Club Colombia, Cerveza Aguila Light, Aguila Imperial,
Leona Cerveza, Cola y Pola, Cerveza Bahia, Agua Brisa, Agua
Brisa con Gas, Pony Malta, Malta Leona Cool, Tutti Frutti and
Malta Leona.

Julio Mario Santo Domingo's family sold more than 75% of their
ownership of Bavaria to SABMiller in 2005.

                        *    *    *

On April 24, 2006, Fitch Ratings assigned its BB long-term
issuer default and local currency long-term issuer default
ratings to Bavaria S.A., both with positive outlook.

                        *    *    *

On Nov. 22, 2005, Standard & Poor's Ratings Services raised its
corporate credit ratings on Bavaria S.A. and its senior
unsecured debt rating on the 8.875% US$500 million bonds issued
by Bavaria due 2010, which have the guarantee of several of
Bavaria's non-rated subsidiaries, to 'BB+' from 'BB'.  The
ratings remain on CreditWatch with positive implications, where
they were placed on July 21, 2005.

                        *    *    *

Moody's Investor Services assigned these ratings to Productora
de Jugos S.A.:

      * subordinated debt -- Ca; and
      * long-term corporate family rating -- B3.


CENTRAGAS-TRANSPORTADORA: Enron Sells 50% Stake in Company
----------------------------------------------------------
Enron sold its 50% stake in Centragas-Transportadora de Gas de
la Region Central de Enron Development and Cia. S.C.A., a gas
distributor in Colombia, to Arctas-Paragon Investments, a
private equity group, LatinLawyer Online reports.

LatinLawyer relates that the transfer of the stake concluded on
June 7, 2006.  The amount for which the stake was sold, however,
was not disclosed.

Enron also handed to Arctas-Paragon its role as managing partner
in Centragas-Transportadora, LatinLawyer states.

Adrian Rodriguez of Lewin & Wills Abogados, who advised Arctas-
Paragon, told LatinLawyer, "This deal was a very interesting one
due to the multi-tiered corporate structure, cross-border
financing and intercompany loans previously adopted by the
seller to which the buyers needed to adapt.  Further
complexities were added by agreements involving other partners
and third parties with interests in Centragas, that all needed
to be reconciled with the interests of both the sellers and the
buyers."

The sale had to be negotiated with Ecogas, the state gas firm of
Colombia, to decide on the continuing relationship between the
company and Centragas, given the impending privatization of
Ecogas, LatinLawyer reports.

                        *    *    *

As reported in the Troubled Company Reporter on July 29, 2005,
Standard and Poor's Ratings Services placed a 'BB' foreign
currency rating on the US$172 million senior secured notes due
2010 issued by Centragas-Transportadora de Gas de la Region
Central de Enron Development and Cia. S.C.A. (Centragas).


COLOMBIA TELECOM: Investing COP6BB for Barranguilla Maintenance
---------------------------------------------------------------
Colombia Telecomunicaciones aka Colombia Telecom will invest
COP6.19 billion for the maintenance of Barranguilla network, El
Heraldo reports.

Business News Americas relates that the amount also covers the
upgrade of telephony systems and cabling to increase the quality
of voice service and prepare the platform to offer broadband
services.

Departamento Administrativo Nacional de EstadĦstica, Colombia's
national statistics agency told BNamericas that Colombia Telecom
previously disclosed a COP80 billion-investment plan for the
expansion of fixed telephony and broadband services.

Barranquilla's fixed line penetration is below the national
average, BNamericas reports, citing DANE.

                        *    *    *

Telefonica SA acquired a majority stake in Colombia Telecom from
the government in April.  The Colombian government said that
it's better to be the owner of a minority stake of a thriving
business than a majority holder of a dying one, in defense to
criticisms from various sectors.  The purchase included the
assumption of COP7.58 trillion debt, which included a US$3.26
billion pension liability and other debts totaling US$449
million.


* COLOMBIA: Moody's Retains Ba2 Foreign Currency Rating
-------------------------------------------------------
Moody's Investors Service downgraded the domestic currency bond
rating of the government of Colombia to Baa3 from Baa2 in order
to more closely align the country's foreign and domestic
currency bond ratings. The outlook for the new rating is stable.

The country's other ratings, including the foreign-currency
country ceilings for bonds and bank deposits and the
government's Ba2 foreign-currency bond rating were unaffected by
the action.  Colombia's local currency guideline, which reflects
the highest possible rating that could be assigned to obligors
and obligations denominated in the local currency, and local
currency bank deposit ceiling both remain at A1.

"Moody's has come to see the need for a closer alignment of
foreign and domestic currency bond ratings although they need
not always be identical, because of the increasing amount of
local-currency issuance by governments and the wider ownership
of these instruments by non-residents," said Moody's Vice
President-Senior Credit Officer Steven Hess.

In general, having more local currency debt can be a positive
for a government's creditworthiness, according to the rating
agency, because of the reduced exposure to foreign exchange
movements.  "While the Colombian government's successful debt
management during the recent past has reduced the proportion of
foreign currency government bonds to about 30%, at the same time
central government deficits are likely to remain sizable over
the next decade.  This indicates a higher debt burden, according
to the government's own medium-term fiscal framework," said
Hess.

"Although the consolidated public sector has recorded much
better fiscal balances than the central government, it is the
central government deficit that is increasing the level of
debt," said Moody's Hess.




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


* CUBA: Says Sugar Sector Won't Attain Harvest Goals
----------------------------------------------------
The Cuban government told The Miami Herald the country's sugar
sector won't accomplish the harvest goals it has set for 2006
due to inefficient mills and a delayed start.

The Herald relates that President Castro announced in February
that the Cuban government, to make up for losses when 71 sugar
mills were shut down in 2002 because the industry had been
heavily subsidized, had aimed to increase harvest for three
million tons.  Sugar prices at that time increased to US$0.17
per pound.

As reported in the Troubled Company Reporter-Latin America on
June 23, 2006, Cuba hopes to increase the yearly production of
ethanol five times to 500 million liters by 2010.

According to The Herald, aiming for a boost in ethanol
production makes the increase in sugar harvest a must.

However, experts told The Herald that the sugar sector is
currently making 1.3 tons yearly.  According to them, it was
less than a fifth of what was produced in the 1950s.

Granma International says that the recent harvest indicated that
hard work and final results don't always correspond.

The government admitted to The Herald that the obstacles are
hard to overcome.

Cuba currently has 42 operating mills while it had about 156
four years ago, Granma states.  About 28 of those mills started
operating late.

Granma relates that of the 22 low-production mills, eight could
not grind the same amount of sugar cane that had been expected
while two were closed down because of repeated inefficiency
cases as well as high cost.  About 15% of the mills produced
high quality sugar.

The country could have produced another 43,800 tons had all the
mills operated at capacity, according to Granma.  However, the
paper did not reveal any figures on this year's production.

Nicolas J. Gutierrez -- the head of the National Association of
Sugar Mill Owners of Cuba, a group of exiled sugar growers --
told The Herald, "There are always excuses -- 'no spare parts,
it's the weather.  Even before this decline in production, Cuba
was producing at 1907 levels.  Maybe now with the decline, they
are at 1800s levels."

The Herald reports that Cuba had to import sweetener just to
meet domestic needs and global demand.

Antonio Jorge, an economist at Florida International University,
told The Herald, "The industry is devastated.  It has collapsed.
It requires an investment in the order of $6 or $7 billion. I
don't think he has the money, and I don't think he'd spend it
even if he had it.  He has other priorities."

President Castro is more interested in tourism, biotechnology
and mining, which are the more profitable areas, The Herald
relates, citing Mr. Jorge.

                        *    *    *

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


BANCO INTERCONTINENTAL: Fraud Trial Continues
---------------------------------------------
The fraud trial of Ramon Baez Figueroa, the former company
president and the main shareholder of Banco Intercontinental aka
Baninter, continued on June 29 at the National District Court of
First Instance in the Dominican Republic, DR1 Newsletter
reports.

Clave Digital relates that Mr. Figueroa was accused of fraud and
asset laundering.

According to Diario Libre, the case is being handled by:

    -- Antonio Sanchez Mejia,
    -- Pilar Rufino Diaz, and
    -- Giselle Mendez.

DR1 states that the hearing is expected to last for many hours
and that the case would take an undetermined number of days, as
indicated by a list of 300 witnesses and a lengthy
documentation.

On March 17, 2006, Mr. Figueroa granted power of attorney to
lawyers Julio Cury and Jose Guerrero, authorizing them to
negotiate an agreement with the authorities so he would not have
to appear in court to face the charges.  The power of attorney
specifically indicates that this kind of negotiation does not
mean acceptance of the charges, Clave Digital states.

BanInter collapsed in 2003 as a result of massive fraud
that drained it of about US$657 million in funds.  As a
consequence, all of its branches were closed.  The bank's
current and savings accounts holders were transferred to the
bank's new owner -- Scotiabank.


FALCONBRIDGE LTD: Contests Xstrata Application to Superior Court
----------------------------------------------------------------
Falconbridge Limited intends to aggressively oppose an
Application to the Superior Court of Justice that was filed by
Xstrata against Falconbridge.  The Application was filed on
June 28, just one day after Xstrata had argued before the
Ontario Securities Commission to have Falconbridge's shareholder
rights protection plan terminated.

Xstrata's Application to the Court demands that Falconbridge be
forced to call an early Annual General Meeting of Shareholders
on the basis of alleged violations of the Ontario Business
Corporations Act by Falconbridge.  Falconbridge had previously
received approval from the TSX to hold its Annual General
Meeting on October 9, 2006 in accordance with the provisions of
the rules of the TSX.

"In our view this is yet another attempt by Xstrata to avoid the
fair and open auction process currently underway for
Falconbridge.  We remain committed to acting in the best
interests of all Falconbridge shareholders," said Derek Pannell,
Chief Executive Officer of Falconbridge Limited.

                       About Xstrata

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

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

                     About Falconbridge

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

                        *    *    *

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




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


PETROECUADOR: Increasing Windfall Revenue by at Least 50%
---------------------------------------------------------
The Ecuadorean government said in a statement that state oil
firm Petroecuador will be granted at least 50% of windfall
revenues from local oil production.

According to the statement, President Alfredo Palacio has signed
a decree to establish a regulation framework for the
hydrocarbons law that would grant the windfall revenues to
Petroecuador.

Windfall revenues are the difference between monthly revenue
generated with the present oil prices compared to the income
that would have been generated using reference prices.

The statement explained that reference prices will be
established in accords signed with the state.  It will vary from
company to company.

Business News Americas relates that the decree will be
implemented once published in Ecuador's official register.

Firms will then be given 60 days to sign the complementary
agreements or be required to hand in at least 60% of their
windfall revenues to Petroecuador, the government said in its
statement.

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 alleging
that Petroecuador has been inefficient and non-transparent in
its accounts.


* ECUADOR:  Banana Growers Mulls Possibility of Holding Strike
--------------------------------------------------------------
Ecuadorean banana growers are considering the possibility of
holding a strike if the government won't guarantee its vigilance
on exporters' payment behavior, Fresh Plaza reports, citing Paul
Gonzalez, the head of Centro Agricola Cantonal de Machala.

Mr. Gonzalez told Fresh Plaza that the unrest resulting from the
reduction and withholding of payments to workers in some cases,
has been blamed on Russian owners of plantations and exporters.

It will be unviable to pay the US$3.25 per box reference price
as market prices have decreased too far, Eduardo Ledesma, the
Executive Director of the Ecuadorian Banana Expor-ters
Association, told Fresh Plaza.

Fresh Plaza relates that Freddy Serrano -- the director of
Aproban -- recalls the past year with contentment as the
European Union market opened up and good prices have been made
during the first part of 2006.  According to him, this has
helped 6000 growers to reach a better financial condition with
their bank as many had overdue payments to suppliers to resolve.

                        *    *    *

Fitch Ratings assigned these ratings on Ecuador:

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




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


* GUATEMALA: Faces Anti-FTA Demonstrations
------------------------------------------
Guatemala's Colectivo de Organizaciones Sociales or COS has
planned to hold a protest against Guatemala's membership in the
Free Trade Agreement for Central America with the US or CAFTA,
Prensa Latina relates.

The protest began on July 1 in Guatemala City, Cesar Davila, a
member COS, told Prensa Latina.  According to him, the group
planned to expand the demonstration to other provinces within
the week.

According to Prensa Latina, Mr. Davila said that CAFTA would
make many sectors like farming as well as workers at the
informal sector more vulnerable.

Prensa Latina relates that COS reaffirmed its appeal against the
CAFTA approval.  Attorney Ramon Cadenas, who represents the
group, said enough evidence has been submitted to show that
CAFTA violates the Guatemalan Constitution.

CAFTA was implemented in the absence of compensatory laws to
counter its impact, making Guatemala compete to the US economy,
Attorney Cadenas told Prensa Latina.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

                        *    *    *

Fitch also rated Guatemala's senior unsecured bonds:

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




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


* HAITI: President Wants Re-Entry to Caribbean Community
--------------------------------------------------------
Haiti's President Rene Garcia Preval plans to reenter his
country to the Caribbean Community and Common Market or Caricom,
Hard Beat News reports.

Caricom was established by the Treaty of Chaguaramas, which came
into effect on Aug. 1, 1973.  It is aimed at the eventual
integration of its members and economies, as well as the
creation of a common market.  Caricom has concentrated on the
promotion of the integration of the economies of members,
coordinating the foreign policies of the independent states and
in functional cooperation, especially in relation to various
areas of social and human endeavor.

Hard Beat relates that President Preval disclosed his plan on
June 23 to:

    -- Edwin Carrington, the Caricom Secretary-General,

    -- Ambassador Colin Granderson, the Assistant Secretary-
       General for Foreign and Community Relations, and

    -- Hugh Cholmondeley, the Chairman of the Caricom Task Force
       on Haiti, Hugh Cholmondeley.

The Haitian president is expected in the Caricom summit to be
held at St Kitts and Nevis from July 3-6, Hard Beat states.  It
will mark the official return of Haiti to Caricom.

According to Hard Beat, Haiti was expelled from Caricom after
the 2004 uprising that forced the resignation of Jean Bertrand
Aristide, the country's former president.

President Preval also asked Caricom to send representatives to
Haiti immediately after the summit to work with Haitian
authorities on facilitating and providing aid for the country's
restoration of participation in Caricom operations, Hard Beat
says.

Secretary-General Carrington assured President Preval that
Caricom would be willing to lend aid as requested by Haiti, Hard
Beat states.

                        *    *    *

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.




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


* HONDURAS: Banana Growers Want to Sell Crops to China
------------------------------------------------------
A group of Honduran banana growers aimed to enter the Chinese
market, Fresh Plaza reports.

According to Fresh Plaza, the banana growers are not worried of
the increasing produce exports from China though the latter may
become a threat to Latin American fruit growers.

Ecuador is shipping surplus production to China, along with
Philippines and Taiwan, Fresh Plaza relates.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

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



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



KAISER ALUMINUM: Court Approves ACE Insurers Settlement Accord
--------------------------------------------------------------
Judge Judith K. Fitzgerald overrules the objections to Kaiser
Aluminum Corporation and its debtor-affiliates' Settlement
Agreement with the ACE Insurers and grants the Debtors' requests
in all respects.

Judge Fitzgerald notes that:

   (1) the KACC Parties are not stayed, restrained or enjoined
       from asserting any claims that are not released under the
       Settlement Agreement; and

   (2) the ACE Parties may assert any and all defenses, claims,
       interests, rights and remedies to any claims.

The U.S. Bankruptcy Court for the District of Delaware also
clarifies that the ACE Parties will not be deemed successors to
the Kaiser Parties or the Debtors' bankruptcy estates as a
result of the consummation of the transactions in the Settlement
Agreement.  The ACE Parties will not assume any liabilities of
the Kaiser Parties.

As reported in the Troubled Company Reporter on Jun 5, 2006,
KACC asked the Court to:

      (i) approve the ACE Insurers Settlement Agreement;

     (ii) authorize the sale of the Subject Policies to the ACE
          Related Companies, free and clear of liens, claims,
          interests and other encumbrances; and

    (iii) enjoin all Claims against the ACE Parties relating to
          or attributable in any way to the Subject Policies,
          including, but not limited to, any Claims in the
          nature of, or sounding in, tort, contract, warranty,
          or any other theory of law, equity or admiralty.

A full-text copy of the Settlement Agreement is available for
free at http://researcharchives.com/t/s?a68

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




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


BALLY TOTAL: Files 2005 Annual & First Quarter 2006 Fin. Results
----------------------------------------------------------------
Bally Total Fitness Holding Corporation reported financial
results for the fourth quarter and year ended December 31, 2005,
as well as for the first quarter ended March 31, 2006.  The
company also filed its 2005 Annual Report on Form 10-K and its
Quarterly Report on Form 10-Q for the first quarter 2006 with
the SEC ahead of the July 10, 2006, deadline agreed to by the
company's bondholders and lenders.

Bally Total Fitness Holding Corp.'s turnaround plan drives
improvement  revenue per member while reducing operating costs.
The highlights of results for the year ended Dec. 31, 2005:

   -- posts record revenue of US$1.071 billion, up 2.2% over
      prior year;

   -- operating income of US$75.7 million, almost double
      compared to 2004 amount;

   -- EBITDA Before Non-Cash Impairment Charges of
      US$149.6 million, increases 21.4% over 2004;

   -- net loss of US$9.6 million, improves almost 70% from
      US$30.3 million net loss in 2004;

   -- new joining members increase 3.3% to 1.2 million in 2005,
      tops record of 2004; and

   -- average monthly revenue per member grows 2.8% to US$19.56.

The highlights for Fourth Quarter 2005:

   -- revenue of US$258.3 million, even with prior year; and

   -- operating income of US$9.2 million, up significantly over
      US$1.8 million in Fourth Quarter 2004;

The highlights for First Quarter 2006 (excludes crunch fitness
from operating results):

    -- revenue increases 1% to US$255.2 million, compared to
       First Quarter 2005;

    -- operating income of US$18.3 million, down US$4.8 million
       from First Quarter 2005 on higher general and
       administrative and advertising expenses;

    -- gain on disposition of crunch fitness of US$38.4 million
       drives net income of US$32.7 Million;

    -- new joining members decrease 2.2% from First Quarter
       2005; and

    -- average monthly revenue per member grows 1.8% to
       US$19.34.

Paul Toback, Chairman and Chief Executive Officer, said, "Our
new business model drives growth through stable membership
sales, improved retention, higher average monthly revenue per
member and lower costs. The results released today reflect the
progress we are making in successfully implementing our
turnaround.  Our 'Build Your Own Membership' or BYOM plan
continues to receive a favorable response from new members, and
has allowed us to eliminate, in just about all markets, the
considerably discounted renewal dues historically sold by the
Company.  This will be an important driver of revenue per member
when these members leave their initial term."

Mr. Toback continued, "We are also seeing that members joining
under BYOM stay longer, as short term attrition has already
improved by over 25% from 23% at the beginning of 2005 to 16.9%
today.  This combination of improved retention and built in
price increases will drive future average yield per member. When
combined with the lower costs, higher efficiencies and better
club service experience for our members under our New Club
Model, I am excited about the potential for Bally Total Fitness
over the next few years."

               Full Year 2005 Financial Results

Net revenues for the year ended December 31, 2005 increased to a
record US$1,071.0 million, up 2.2%, from US$1,048.0 million in
2004.  Membership services revenue increased by US$27.9 million,
driven by a 2.8% increase in average monthly revenue recognized
per member to US$19.56 in 2005, and a US$9.2 million, or 7.3%,
growth in personal training revenue. Revenue from retail
products declined US$2.7 million, or 5.0%, for the year, as a
result of the planned conversion of 45 lower performing full-
size in-club retail stores to a more cost-effective, efficient
model integrated into front-desk operations. Miscellaneous
revenue decreased 11.9%, or US$2.2 million, primarily due to
lower sponsorship revenue and franchise fees. Cash collections
of membership services revenue, exclusive of personal training,
in 2005 were $834.0 million, an increase of US$7.9 million, or
1%, compared to 2004. This increase is the result of higher
receipts from paid-in-full membership fees, advance payments of
dues and membership fees, and monthly payments from month-to-
month memberships, partially offset by a decrease in payments
from financed members and renewal term monthly dues.

Operating income for the year increased 98.0% to US$75.7 million
from US$38.2 million in 2004, driven by US$23.0 million in
revenue growth and a US$14.4 million, or 1.4%, reduction in
operating costs and expenses. Cost reductions were driven by a:

    --  US$5.8 million decrease in membership services
        expenses, reflecting the initial impact of the Bally
        Total's New Club operating model and other expense
        management initiatives, offset in part by increases in
        occupancy and insurance costs;

    --  US$2.5 million decrease in retail product expenses,
        consistent with the decrease in retail revenue;

    --  US$6.6 million decrease in advertising expense due
        primarily to a planned reduction in media spending
        and a deferral of production costs;

    --  US$3.8 million reduction in non-cash impairment
        charges; and

    --  US$7.2 million lower depreciation expense, reflecting
        fewer depreciable assets resulting from fixed asset
        impairment charges in 2004 and prior years, and lower
        capital spending.

These cost reductions were partially offset by a:

    --  US$3.0 million increase in information technology
        spending associated with implementing new business
        initiatives, improved controls and compliance and
        security enhancements;

    --  US$8.5 million increase in other general and
        administrative costs, reflecting higher levels of
        spending for professional fees relating to various
        ongoing legal matters and the audit of the company's
        financial statements, a US$4.0 million increase in
        stock-based compensation, and a US$4.6 million
        write-off of equipment discussed below.

For the year 2005, the Bally Total reported a net loss of US$9.6
million, or US$0.28 per share, versus a net loss of US$30.3
million, or US$0.92 per share, in 2004.  The lower net loss
reflects the favorable effects of the higher revenue and lower
expenses discussed previously, partially offset by an
approximate US$18.1 million increase in interest expense in
2005.

Bally Total uses EBITDA (operating income plus depreciation and
amortization) plus non cash impairment charges as a measure of
operating performance.  This performance measurement for 2005
was US$149.6 million, up 21.4%, or US$26.4 million, compared to
US$123.2 million in 2004.

New joining members in 2005 increased to a record 1.203 million,
up 3.3% over a record 2004.  The total number of members at
December 31, 2005, was 3.610 million, slightly down from the
prior year end due in part to increases in attrition prior to
implementing the BYOM program and a growing percentage of month-
to-month members, who have historically higher attrition rates
than value plan members.

On January 20, 2006, Bally Total completed the sale of Crunch
Fitness and certain other fitness centers.  The results of
operations for 2005 include the operations of these clubs, which
will be reported as discontinued operations in the company's
2006 financial statements, beginning with the first quarter
2006, discussed below.

As part of the 2005 closing process, Bally Total restated the
results of each of the first three quarters of 2005,
cumulatively increasing revenue for the nine months ended
September 30, 2005, by US$5.3 million to US$812.7 million,
increasing operating income by US$4.7 million to US$66.4
million, and increasing net income by US$4.2 million to US$6.0
million.  Further, certain errors in the application of
generally accepted accounting principles were identified that
reduced the company's accumulated deficit balance as of December
31, 2002 by approximately US$2.2 million.  The impact of the
identified errors was deemed not material to the company's
consolidated statements of operations for the years 2003 and
2004, and, accordingly, no changes were made to those previously
reported results of operations.

            Fourth Quarter 2005 Financial Results

Fourth quarter net revenue of US$258.3 million was even with the
fourth quarter in 2004.  Membership services revenue was flat
with the fourth quarter of the prior year with a modest increase
in membership revenue, US$1.3 million, offsetting a decline in
personal training revenue.  Cash collections of membership
services revenue in the fourth quarter of US$199.9 million,
exclusive of personal training, were even with the fourth
quarter last year. Operating income for the quarter of US$9.2
million increased fivefold over the fourth quarter of 2004,
reflecting a US$7.8 million reduction in operating costs and
expenses.  Lower fourth quarter non cash impairment charges in
2005, down US$3.8 million compared to the fourth quarter 2004,
were more than offset by a US$4.6 million write-off of equipment
at various clubs.

Bally Total reported a net loss of US$15.6 million, or US$0.45
per share, for the fourth quarter of 2005 versus a net loss of
US$17.0 million, or US$0.52 per share, in 2004.  The effects of
higher revenue and lower operating expenses in the fourth
quarter were partially offset by increased interest expense, up
US$6.3 million, or 35.4%, to US$24.3 million.

           First Quarter 2006 Financial Results

Operating results for the first quarter 2005 have been
reclassified to exclude Crunch Fitness, which is presented as a
discontinued operation. Net revenues for the first quarter ended
March 31, 2006, increased 1% to US$255.2 million from US$253.8
million in first quarter of 2005.  Lower retail and
miscellaneous revenues offset growth in membership revenue,
driven by a 6.3% increase in personal training revenue, or
US$1.8 million.  Cash collections of membership services
revenue, exclusive of personal training, for the first three
months of US$200.6 million declined US$6.4 million, or 3.1%,
from the same period last year.  This decrease is the result of
lower advance payments of dues and membership fees.

Operating income in the first quarter 2006 of US$18.3 million
declined by US$4.8 million, or 20.8%, from the prior year
quarter, reflecting higher expenses mostly associated with audit
fees and litigation expense.  These were included in general and
administrative expenses that increased 18.7%, or US$3.4 million.
In addition, advertising expenses were up 10.4%, or US$1.8
million, to US$18.9 million, reflecting planned spending and the
impact of deferred production costs from the fourth quarter of
2005.

Net income of US$32.7 million increased from US$4.6 million in
the first quarter 2005, reflecting the operating results, a
US$38.4 million gain on the disposition of Crunch Fitness, and
an increase of 27.4%, or US$5.0 million, in interest expense to
US$23.0 million due to higher interest rates and increased
amortization of deferred financing costs related to consent
solicitations.

                     Cash and Liquidity

At December 31, 2005, Bally Total had US$35 million of
borrowings and US$13.6 million in letters of credit outstanding
under its US$100 million revolving credit facility.
At May 31, 2006, Bally had US$39.5 million of borrowings and
US$14.1 million in letters of credit outstanding under the
revolving credit facility, and the balance on its term loan was
US$143.3 million versus US$173.3 million at December 31, 2005,
reflecting a US$30 million mandatory repayment from the proceeds
of the sale of Crunch Fitness.  In June 2006, US$1.8 million of
funds were released from the Crunch Fitness escrow account and
applied as an additional repayment on the term loan.

                   Capital Expenditures

Capital expenditures for the year 2005 of US$37.9 million were
down approximately 24% from 2004.  First quarter 2006 capital
expenditures totaled US$11.6 million, up US$3.2 million, over
the first quarter 2005 as a result of a large, scheduled
replacement of exercise equipment.  Bally Total has focused its
capital spending primarily on maintenance and improvement of
existing clubs and limited new club growth.  New clubs were
opened in Huntington Park, California in early 2005 and in
Carrollton, Texas in April 2006.  Three clubs currently in
development are planned to open in 2006, two of which replace
existing clubs.  The Company expects to continue controlled
capital spending and is currently planning US$35 million to
US$40 million of capital spending in 2006.

               Strategic Alternatives Process

The strategic process, led by outside financial advisors J.P.
Morgan Securities Inc. and The Blackstone Group L.P. under the
direction of the Strategic Alternatives Committee of the Board
of Directors, continues to progress.

                     About Bally Total

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

                        *    *    *

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


EAGLEPICHER INC: Ohio Court Confirms Plan of Reorganization
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Ohio has
entered an order confirming the joint plan of reorganization for
EaglePicher Inc. and its debtor-affiliates under Chapter 11 of
the U.S. Bankruptcy Code.  Effectiveness of the plan is
conditioned on bankruptcy court approval of settlement
agreements entered into with the U.S. Environmental Protection
Agency and several states after a mandatory period of public
comment.  The Company expects that the settlement agreements
will receive the requisite approval in time to complete the
reorganization by July 31, 2006.

The confirmation order is also conditioned on EaglePicher's
obtaining sufficient financing to complete its plan of
reorganization.

                    DIP Credit Facilities

As reported in the Troubled Company Reporter on January 4, 2006,
the Company obtained new debtor-in-possession credit facilities
consisting of a US$230 million first lien facility, which
includes a US$70 million revolving credit facility and a US$160
million term loan, a US$65 million second lien term loan and a
US$50 million third lien term loan.  These credit facilities are
convertible at EaglePicher's option into financing pursuant to
the approved plan of reorganization and will provide sufficient
funding to complete the reorganization.

                     Terms of the Plan

EaglePicher's plan of reorganization provides for the transfer
of substantially all of the assets of the EaglePicher entities
to newly formed companies.  The consideration for the
transferred assets will be paid to each debtor in amounts equal
to the value of the assets transferred by that debtor.  Under
the plan, unsecured creditors of each debtor will receive their
pro rata share of that value available for unsecured creditors
after satisfaction of all secured, administrative and priority
claims.  Holders of the Company's 9.75% Senior Notes will
receive their distributions in the form of all of the common
stock in the new holding company.  All other general unsecured
creditors of each debtor will receive their distributions at
their option either in the form of cash payments over time or a
single discounted cash payment.

"This is a very significant milestone towards completing
EaglePicher's reorganization," Stuart B. Gleichenhaus, interim
Chairman, President and CEO of EaglePicher, said.  "We now have
all the elements in place to complete our reorganization in the
very near future.  We look forward to continuing to serve our
customers with high value products from the EaglePicher group of
companies."

                      About EaglePicher

Headquartered in Phoenix, Arizona, EaglePicher Incorporated
-- http://www.eaglepicher.com/-- is a diversified manufacturer
and marketer of innovative advanced technology and industrial
products for space, defense, automotive, filtration,
pharmaceutical, environmental and commercial applications
worldwide.  The company has 3,900 employees and operates more
than 30 plants in the United States, Canada, Mexico and Germany.

EaglePicher Inc., along with its affiliates and parent, company,
EaglePicher Holdings, Inc., filed for chapter 11 protection on
April 11, 2005 (Bankr. S.D. Ohio Case No. 05-12601).  Stephen D.
Lerner, Esq., at Squire, Sanders & Dempsey L.L.P, represents the
Debtors in their restructuring efforts.  Houlihan Lokey Howard &
Zukin is the Debtors' financial advisor.  The Official Committee
of Unsecured Creditors is represented by Thomas R. Kreller of
Milbank, Tweed, Hadley & McCloy LLP. Miller Buckfire & Co., LLC
is financial advisor to the Official Committee of Unsecured
Creditors.  When the Debtors filed for protection from their
creditors, they listed US$535 million in consolidated assets and
US$730 in consolidated debts.


EMPRESAS ICA: Delays Filing of Annual Report on Form 20-F
---------------------------------------------------------
Empresas ICA, S.A. de C.V., disclosed that it will delay the
filing of its annual report, including the annual report on Form
20-F.  The company expects to file its annual report with the
Mexican and New York Stock Exchanges and the US Securities and
Exchange Commission by July 15, 2006.

This decision has been taken as a result of Empresas Ica's
continued evaluation of the accounting treatment under U.S. GAAP
for consolidating certain of its joint venture subsidiaries,
solely for purposes of the U.S. GAAP reconciliation of its
financial statements that must be included in its annual report
on Form 20-F.

Although Empresas Ica's management has been working diligently
to complete all of the required information for its annual
report on Form 20-F for the year ended December 31, 2005, and a
substantial portion has been completed as of this date, the
company will not be able to complete its 2005 Form 20-F within
the prescribed time period without unreasonable effort or
expense.

Empresas ICA -- http://www.ica.com.mx/-- the largest
engineering, construction, and procurement company in Mexico,
was founded in 1947.  ICA has completed construction and
engineering projects in 21 countries.  ICA's principal business
units include civil construction and industrial construction.

Through its subsidiaries, ICA also develops housing, manages
airports, and operates tunnels, highways, and municipal services
under government concession contracts and/or partial sale of
long-term contract rights.

                        *    *    *

Standard & Poor's assigned these ratings to Empresas ICA, with
stable outlook:

   -- LT Foreign Issuer Credit B; and
   -- LT Local Issuer Credit B.


GENERAL MOTORS: S&P Holds Neg. Watch on B Corp. Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services held all its ratings on
General Motors Corp. -- including the 'B' corporate credit
rating and the 'B+' bank loan rating, but excluding the '1'
recovery rating -- on CreditWatch with negative implications,
where they were placed March 29, 2006.

The CreditWatch update follows GM's announcement that
approximately 35,000 hourly employees have agreed to participate
in GM's accelerated attrition program.  Although up to 5,000
Delphi Corp. employees can return to GM, GM seems poised to
reach its 2008 goal of reducing 30,000 manufacturing jobs about
two years early.  The program will reduce greatly the number of
idled employees currently in the long-term layoff pool known as
the "JOBS Bank."

GM expects to take a net after-tax charge in the second quarter
of about US$3.8 billion, most of which is not expected to be
cash.

The attrition program announcement bolsters GM's progress in
reducing labor costs as part of turning around its troubled
North American operations.

"Still, market share losses, and the need to execute on the
other cost-based aspects of the plan such as plant closings,
remain concerns," said Standard & Poor's credit analyst Robert
Schulz.

The most pressing near-term issue is resolving several issues
concerning GM's exposure to Delphi, its former unit and an
important supplier.

"We expect GM's ratings to remain on CreditWatch for several
more months," Mr. Schulz continued, "because court hearings on
Delphi's motion to reject its labor contracts were adjourned
until Aug. 11, and hearings on Delphi's request to reject
unprofitable supply contracts with GM have also been postponed
until the same date.  But, we expect negotiations between
Delphi, the United Auto Workers, and GM to continue."

Delphi has offered its employees an attrition program similar to
GM's, and preliminary acceptance rates seem strong.  A lower
Delphi headcount is likely to be an important factor toward
resolving GM's exposure to Delphi.

GM's pending secured bank deal is considered an incremental
positive for GM's liquidity, even prior to establishment of the
new bank facility.  Standard & Poor's believes GM's liquidity is
adequate to meet near-term funding requirements, including
payments to participants in the accelerated attrition program.


MERIDIAN AUTOMOTIVE: Has Until July 31 to File Chapter 11 Plan
--------------------------------------------------------------
Meridian Automotive Systems, Inc., and its debtor-affiliates
obtained authority from the U.S. Bankruptcy Court for the
District of Delaware to further extend their exclusive periods
to:

    (a) file a plan of reorganization through and including
        July 31, 2006; and

    (b) obtain acceptances of that plan through and including
        Sept. 30, 2006.

The Debtors delivered their Second Amended Joint Plan of
Reorganization and Disclosure Statement to the Bankruptcy Court
on June 23, 2006.

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens.  When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 31; Bankruptcy Creditors'
Service, Inc., 215/945-7000).




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


* PANAMA: Wants to Negotiate Payment Terms with Chiquita Brands
---------------------------------------------------------------
The Panamanian government has requested a negotiation with
Chiquita Brands regarding payment terms in the sales contract on
Cooperativa de Servicios Multiples de Puerto Armuelles RL aka
Coosemupar bananas, Fresh Plaza reports.

Fresh Plaza relates that a special government commission that
attends Coosemupar's financial crisis received a notice from
Chiquita saying that the latter's executives had not yet defined
their position towards the negotiation.

According to Fresh Plaza, Chiquita will disclose its position
this week.

The delay of Chiquita's decision, says Fresh Plaza, may pose a
problem as the Sitrachilco, a workers union, has set the
deadline at the start of July.

A rupture would result between Chiquita and Coosemupar, Fresh
Plaza states.

Prism Business Media Inc. reported on Oct. 1, 2003, that
Chiquita had signed an accord with union leaders and the
Panamanian government to sell the assets of its Puerto Armuelles
Fruit Co division to worker cooperative Coosemupar for US$19.8
million.

                      About Coosemupar

M£ltiple Services Cooperative (Coosemupar) produces half the
bananas exported from Panama on 3,000 hectares of land.  The
workers formally own it.  Members of the Armuelles banana
workers union, Sindicato Industrial de Trabajadores de la
Chiriqui Land Co y Empresas Afines or Sitrachilco, lead this
cooperative.

                     About Chiquita Brands

Chiquita Brands International is a Cincinnati, Ohio-based
producer and distributor of bananas and other produce, under a
variety of subsidiary brand names, collectively known as
Chiquita.  Chiquita is the successor to the United Fruit Company
and is the leading distributor of bananas in the United States.
The company also owns a German produce distribution company,
Atlanta AG, which it acquired in 2003.  It markets, produces and
distributes fresh fruits, processed fruits and vegetable
products.

                        *    *    *

Fitch Ratings assigned these ratings on Panama:

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




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


ADELPHIA COMMS: Files May 2006 Monthly Operating Report
-------------------------------------------------------

             Adelphia Communications Corporation, et al.
                Unaudited Consolidated Balance Sheet
                         As of May 31, 2006
                       (US Dollars in thousands)

                               ASSETS

Cash and cash equivalents                              $521,411
Restricted cash                                         266,382
Accounts receivables - net                              108,401
Receivable for securities                                10,029
Other current assets                                    159,105
                                                    -----------
Total current assets                                  1,065,328

Restricted cash                                           2,742
Investments in equity affiliates                          5,870
Property and equipment - net                          4,249,227
Intangible assets - net                               7,487,660
Other non-current assets - net                          115,501
                                                    -----------
Total Assets                                        $12,926,328
                                                    ===========

                LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable                                       $199,860
Subscriber advance payments and deposits                 32,568
Payable to non-filing entities                            1,554
Accrued liabilities                                     429,819
Deferred income                                          21,114
Current portion of parent and subsidiary debt           951,360
                                                    -----------
Total current liabilities                             1,636,275

Other liabilities                                        32,014
Deferred income                                          53,715
Deferred income taxes                                   883,135
                                                    -----------
Total non-current liabilities                           968,864

Liabilities subject to compromise                    18,398,170
                                                    -----------
Total liabilities                                    21,003,309

Minority interests in equity of subsidiary               74,423

Stockholders' equity:
    Series preferred stock                                  397
    Class A and Class B common stock                      2,548
    Additional paid-in capital                        9,516,510
    Accumulated other comprehensive income                   94
    Accumulated deficit                             (17,643,016)
    Treasury stock, at cost                             (27,937)
                                                    -----------
Total stockholders' equity                           (8,151,404)
                                                    -----------
Total liabilities and stockholders' equity          $12,926,328
                                                   ============


             Adelphia Communications Corporation, et al.
           Unaudited Consolidated Statement of Operations
                      Month Ended May 31, 2006
                       (Dollars in thousands)

Revenue                                                 $401,166
Cost and expenses:
    Direct operating and programming                     229,579
    Selling, general and administrative                   33,553
    Investigation, re-audit and sale transaction costs     3,514
    Depreciation and amortization                         73,336
    Impairment of long-lived assets                            -
    Provision for uncollectible amounts from Rigases           -
    Gains on dispositions of long-lived assets                 -
                                                     -----------
Operating income (loss)                                   61,184

Other income (expense):
    Interest expense                                    (58,018)
    Impairment of cost & available for sale investment         -
    Other income (expense) - net                          1,376
                                                     ----------
       Total other expense - net                        (56,642)
                                                    -----------
Loss from continuing operations before reorganization     4,542

Reorganization expenses due to bankruptcy               114,471
                                                    -----------
Loss from continuing operations before income taxes     119,013
Income tax benefit                                            -
Share of losses of equity affiliates - net                   53
Minority's interest in subsidiary losses - net           (4,617)
                                                    -----------
Net loss                                                114,449
Beneficial conversion feature                                 -
                                                    -----------
Net loss applicable to common stockholders             $114,449
                                                    ===========


             Adelphia Communications Corporation, et al.
           Unaudited Consolidated Statement of Cash Flows
                  For the Month Ended May 31, 2006
                       (Dollars in thousands)

Cash flows from operating activities:
    Net loss                                            $114,449
    Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:
       Depreciation and amortization                      73,336
       Impairment of long-lived assets                         -
       Provision for uncollectible amounts from Rigases        -
       Gains on disposition of long-lived assets               -
       Amortization of debt issuance costs                   225
       Impairment of cost & available for sale investments     -
       Reorganization expenses due to bankruptcy       (114,471)
       Deferred tax expense (benefit)                         -
       Share in losses of equity affiliates - net           (53)
Minority interest in losses of subsidiaries                4,617
       Other non-cash gains                                    -
       Depreciation, amortization and other non-cash
          items from discontinued operations                   -
       Change in operating assets & liabilities           12,433
                                                     -----------
Net cash provided by operating activities before
payment of reorganization expenses                        90,536

Reorganization expenses paid during the period          (15,225)
                                                     -----------
Net cash provided by (used in) operating activities       75,311

Cash flows from investing activities:
    Expenditures for property, plant and equipment      (37,145)
    Changes in restricted cash                           (1,267)
    Proceeds from sale of investments                         -
    Other                                                  (829)
                                                    -----------
Net cash used in investing activities                   (39,241)

Cash flows from financing activities:
    Proceeds from debt                                    11,000
    Repayments of debt                                     (879)
    Payment of debt issuance costs                            -
                                                    -----------
Net cash provided by financing activities                10,121

Change in cash and cash equivalents cash                 46,191

Cash, beginning of period                               475,220
                                                    -----------
Cash, end of period                                    $521,411
                                                    ===========

Based in Coudersport, Pa., Adelphia Communications Corporation
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth largest
cable television company in the country.  Adelphia serves
customers in 30 states and Puerto Rico, and offers analog and
digital video services, high-speed Internet access and other
advanced services over its broadband networks.  The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002.  Those cases
are jointly administered under case number 02-41729.  Willkie
Farr & Gallagher represents the ACOM Debtors.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.  (Adelphia Bankruptcy News, Issue No. 138;
Bankruptcy Creditors' Service, Inc., 215/945-7000)


MERIDIAN AUTO: Filing 3rd Amended Plan & Disclosure Statement
-------------------------------------------------------------
Meridian Automotive Systems, Inc.. reached a consensual
agreement with its major creditor constituency classes and will
be filing a Third Amended Plan of Reorganization and an Amended
Disclosure Statement with the United States Bankruptcy Court for
the District of Delaware in the near future to reflect the new
arrangement.  Therefore, Meridian has asked the Bankruptcy Court
to continue the Disclosure Statement hearing currently scheduled
for June 27, 2006, until July 17, 2006.

Richard E. Newsted, Meridian's President and CEO, said, "We are
extremely pleased to have achieved a consensual plan supported
by our major creditor constituencies.  This will enable us to
emerge from Chapter 11 in a quick, uncontested and orderly
manner.  We also are committed to completing the remaining steps
to emerge from Chapter 11 as efficiently as possible."

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens.  When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 31; Bankruptcy Creditors'
Service, Inc., 215/945-7000).


PREFERRED HEALTH: Moody's Rates Proposed US$185-Mil. Loan at B1
---------------------------------------------------------------
Moody's Investors Service assigned a B1 senior debt rating to
the proposed US$185 million term loan of Preferred Health
Management Corporation.  The term loan is being issued under an
amendment to the existing credit facility of Aveta Inc.  The
ratings of the co-borrowers under the existing facility, MMM
Holdings, Inc. and NAMM Holdings, Inc. were both affirmed at B1.
The outlook on all the ratings is stable.

According to Moody's, the proceeds of the bank loan will be used
by Aveta to fund the purchase of Preferred Medicare Choice,
Inc., a licensed HMO operating in Puerto Rico and PHMC, an
administrative services company.  The new facility will be
guaranteed by Aveta on the same basis as the existing facility
and is considered to be pari passu with the existing term loans.
The existing facility is secured with the pledge of the stock
and assets of Aveta, as well as the pledge of the stock of each
of the borrowers and their regulated subsidiaries and all assets
of the non-regulated entities.  The new loan, which matures on
the same date as the existing term loans, will have the same
pledge.

According to Moody's, PHMC and PMC will become subsidiaries of
MMM, alongside MMM Healthcare which also operates in Puerto
Rico.  MMM Healthcare and PMC are the two largest providers of
Medicare Advantage products in Puerto Rico, with 118,000 members
and 61,000 members, respectively.  PMC offers its products in
all 78 municipalities, with a stronger concentration in the
western portion of the island, compared to MMM Healthcare which
is more concentrated in the south and east.  Combined, they will
service approximately 75% of the Medicare Advantage enrolled
population in Puerto Rico.

Moody's B1 senior secured bank credit facility rating is based
on the consolidated results of MMM and NAMM and reflects the
companies' highly leveraged capital structure, including the
large amount of goodwill, the companies' short operating
history, dependence on the Medicare Advantage product and
geographic concentration in Puerto Rico, as well as the
uncertainty which surrounds the future financial prospects of
the Medicare program.

Although the companies comply with the regulatory capital
requirements of each jurisdiction in which they operate, Moody's
believes that the targeted consolidated capital adequacy on an
NAIC risk-based capital basis is relatively weak at
approximately 50% of company action level.  However, the rating
agency noted that the results for 2005 were solid with combined
Medicare membership growth in Puerto Rico exceeding 30% and
operating margins of approximately 10%.

The rating agency added that given the current Medicare
reimbursement rates for Puerto Rico and the combined marketing
potential of MMM Healthcare and PMC, similar results are
expected during 2006.

Moody's ratings are based on the expectation that there are no
changes in the methodology used by the Centers for Medicare
and Medicaid Services in determining the Medicare Advantage
reimbursement rates, that 100% of excess unregulated cash is
used for debt repayment, and the companies maintain a
consolidated RBC of at least 50% of company action level.
Moody's also expects that there are no significant changes to
the financial covenants contained in the secured bank credit
facility and all covenants will be met or exceeded.

Moody's stated that the ratings could move up if NAIC RBC grows
to 100% of company action level, debt to EBIT falls below 2
times, EBIT interest coverage is at least 5 times, there is
additional product and geographic diversification, and there is
successful integration with PMC measured by net margins of at
least 4% and organic membership growth in Puerto Rico of at
least 10%.  However, if there is a significant adverse change in
Medicare reimbursement levels, if NAIC RBC falls below 50% of
company action level, if debt to EBIT exceeds 5 times, if EBIT
to interest expense falls below 3.5 times, or if a significant
portion of debt is not retired each year, then Moody's said, the
ratings could be moved down.

MMM Healthcare offers Medicare Advantage products exclusively to
eligible participants in Puerto Rico.  Moody's notes that the
company currently enjoys being the market leader in providing
Medicare Advantage products in Puerto Rico and being reimbursed
at a very favorable rate from CMS, which determines the rates
that health benefit companies are paid to provide a Medicare
Advantage product.

As a result of these circumstances, Moody's stated, the company
has been able to record impressive growth and earnings margins
since it was established in 2001.  However, while CMS
reimbursement rates are in place for 2006, and rates for 2007
have been announced, rates for subsequent years are susceptible
to unpredictable shifts in Medicare policy emanating from
Washington.

NAMM is a medical management company that operates in California
and Illinois.  Its regulated operating subsidiary, PrimeCare
Medical Network, Inc., consists of 10 owned IPAs in Southern
California that contract with major health care benefit
companies on a capitated basis to provide medical care to
commercial and Medicare members.

This rating was assigned with a stable outlook:

   * Preferred Health Management Corporation -- senior secured
     debt rating at B1

These ratings were affirmed with a stable outlook:

   * MMM Holdings, Inc. -- senior secured debt rating at B1;
     corporate family rating at B1;

   * NAMM Holdings, Inc. -- senior secured debt rating at B1,

   * MMM Healthcare, Inc. -- insurance financial strength
     rating at Ba2;

   * PrimeCare Medical Network, Inc. -- insurance financial
     strength rating at Ba2.

Aveta, Inc. is headquartered in Fort Lee, NJ. As of December 31,
2005, Aveta reported stockholders' equity of $38 million and
approximately 130,500 Medicare members. For full year 2005,
pro-forma total revenues were US$938 million.

Moody's health insurance financial strength ratings are opinions
about the ability of life and health insurance companies to
punctually repay senior policyholder claims and obligations.
Because IFSRs are applied to operating life and health insurance
companies, the cash flows of which are regulated by the
applicable state insurance department, the IFSR is typically the
highest rating within a corporate group.

Moody's corporate family rating is an opinion of a corporate
family's ability to honor all of its financial obligations and
is assigned to a corporate family as if it had a single class of
debt and a single consolidated legal entity structure.


UNIVISION COMMS: S&P Downgrades Senior Unsecured Notes to BB-
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
and senior unsecured notes ratings on Los Angeles-based
Univision Communications Inc. to BB- from BBB-, based on the
company's agreement in principle to a US$12.3 billion (excluding
existing debt) LBO led by investor group Madison Dearborn
Partners LLC.  All ratings, including the BBB- rating on the
company's credit facility, remain on CreditWatch, with
implications revised to negative from developing.  The ratings
were originally placed on CreditWatch on Feb. 9, 2006, after the
company announced it was exploring strategic alternatives.

Terms of the credit agreement require debt to be repaid upon a
change of control of Univision.  Therefore, upon completion of
the announced buyout and repayment of the bank debt, we will
withdraw this rating. However, if the transaction becomes
derailed, we will reassess overall credit quality and the
position of bank creditors relative to all other creditors.

"We anticipate a significant debt burden and deterioration of
key credit measures upon completion of the transaction," said
Standard & Poor's credit analyst Heather M. Goodchild.  "An
important element of this review is whether Univision and its
principal programming supplier, Grupo Televisa S.A., will
restore their working relationship."

In resolving the CreditWatch listing, Standard & Poor's will
review the company's business strategy, capital structure, and
liquidity. Univision, a Spanish-language broadcaster, owns and
operates more than 60 television stations in the US and Puerto
Rico offering a variety of news, sports, and entertainment
programming.  The company had about US$1.4 billion in debt at
March 31, 2006.




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


BWIA WEST: Lacks Proper Managerial Systems, Says Union Head
-----------------------------------------------------------
British West Indies Airways aka BWIA lacks proper managerial
systems and style and a calculated move to withdraw staff
benefits, Curtis John -- the head of the Aviation Communication
and Allied Workers Union -- told the Trinidad and Tobago
Express.

Mr. John denied that unions associated with BWIA workers were
undermining the service at the airline, The Express relates.  He
however maintained that the workers continue to be left out of
the loop by management.

Industry sources told The Express in April that BWIA was losing
in the vicinity of about US$1 million per week.

On June 28, BWIA released a statement saying that it continues
to suffer significant losses.  Its business recovery plan, which
was submitted to the government of Trinidad and Tobago, is at
risk.  The plan was designed to cut BWIA's losses.  BWIA also
said that the industrial action taken by workers also worsened
the loss position of the airline and has ruined its reputation
to its clients.

As reported in the Troubled Company Reporter-Latin America on
June 14, 2006, BWIA workers held demonstrations outside BWIA's
offices in Piarco and Port of Spain over stalled wage talks,
saying that they could not wait any long for an agreed
compensation package and threatening to intensify action against
BWIA if an agreement would not be reached soon.

Furthermore, four flights were cancelled at BWIA after a number
of its employees failed to show up, saying they were sick.  Mr.
John had denied that the move was part of a strategy to pressure
the BWIA management to settle outstanding wage negotiations.
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.

A meeting held between the BWIA management and ACAWU on June 2
at the airline's Sunjet House offices in Spain to explore ways
to address workers' grievances on dismissals, suspensions and
unlawful terminations of employment of officers since 2001.
BWIA's executives had accepted the union's proposals and
suggestions for a new collective agreement, promising to analyze
them and to inform the union of their decision in July.

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

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




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


PETROLEO BRASILEIRO: Acquires 51% Share in Gaseba for US$11 Mil.
----------------------------------------------------------------
Petroleo Brasileiro SA, Brazil's state-run oil company, has paid
US$11 million to Gaz de France International for a 51% share in
Gaseba Uruguay, a gas distribution concessionaire in Montevideo,
LatinLawyer Online reports.

Nicaolas Piaggio of Guyer & Regules -- the advisor of Petroleos
de Brasileiro -- told LatinLawyer, "The acquisition of Gaseba
ratifies Petrobras's interest in the development of the
Uruguayan energy matrix and infrastructure in particular, and
reaffirms Petrobras's interest in investing in Uruguay."

According to LatinLawyer, the deal was closed on June 1.

Alberto Fodere of Sanguinetti, Fodere & Bragard Abogados -- Gaz
de France's advisor -- told LatinLawyer, "This was a challenging
deal to work on as it encompassed very different aspects of
Gaseba Uruguay's corporate activity, which demanded a profound
knowledge of the company."

LatinLawyer relates that the purchase must be approved by
Uruguayan President Tabare Vazquez and the Ministry of Energy
and Mining, as required by Unidad Reguladora de Servicios de
EnergĦa y Agua or URSEA -- the country's gas regulator -- and by
the Tribunal de Cuentas de la Republica, the Uruguayan internal
comptroller.

URSEA and Tribunal de Cuentas also required that Gaseba appoint
a new technical director for the deal, according to LatinLawyer.
Sanguinetti, Fodere & Bragard -- the local counsel of Gaz de
France -- was selected through a recommendation from local
representatives.

"Mr. Fodere's pragmatic approach to solving issues and very good
knowledge of local players brought a real added value in
conducting this deal," LatinLawyer states, citing Cyril Perroy -
- Gaz de France's in-house counsel.

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

                        *    *    *

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

                        *    *    *

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

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


* URUGUAY: State Firm Invests US$2.16MM to Set Up Power Meters
--------------------------------------------------------------
Administracion Nacional de Usinas y Trasmisiones Electricas aka
UTE, the state-run energy firm of Uruguay, said in a statement
that it invested about US$2.16 million in the first five months
for the installation of electricity meters.

According to the statement, about US$1.47 million were used to
install meters for 24,500 residential customers.  Some
US$685,000 went to meters for 3,060 "strategic" clients like
firms.

The US$2.16 million is 71.4% of the total amount invested in
2004 and 2005 combined.  UTE invested as much as US$2.83 million
in meter installations for residential clients in 2004 and 2005
combined, with US$1.92 million for strategic clients.

Business News Americas relates that the company's customers
experience losses in energy, 9% are from technical losses due to
the physical process of the energy's transformation and
distribution.

About 10% of energy is lost through non-technical means like
theft and fraud, UTE said in its statement.

                        *    *    *

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

                        *    *    *

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




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


PETROLEOS DE VENEZUELA: Inks Training Accord with University
------------------------------------------------------------
Petroleos de Venezuela, the state-owned oil company in
Venezuela, told Business News Americas that it has signed an
agreement with Robert Gordon University of Scotland for the
training of firm workers in the oil and gas engineering areas.

About 60 Petroleos de Venezuela employees will benefit from the
accord, BNamericas relates.

According to BNamericas, Luis Vierma -- Petroleos de Venezuela
deputy E&P head -- and Andrew McCreath, the university director
of technological information at Robert Gordon, joined the
signing ceremony.

Petroleos de Venezuela aims to train 600 workers at Robert
Gordon over the next five years, 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.


SIDERURGICA DEL TURBIO: Concludes US$113 Million Refinancing
------------------------------------------------------------
Siderurgica del Turbio aka Sidetur has concluded a US$113
million refinancing, LatinLawyer Online reports.

LatinLawyer relates that on April 26 this year, Sidetur Finance
BV, a unit of Sidetur in Holland, issued US$100 million in
bonds.  Sidetur guarantees the 10% notes, which will be due in
2016.

Deutsche Bank Securities was the underwriter for the issuance,
LatinLawyer says.

According to LatinLawyer, the US$100 million was used to
purchase a participation interest in a loan held by Deutsche
Bank's subsidiary in London.

The loan, says LatinLawyer, would also mature in 2016.  It
consolidated all the external debt owed by Sidetur and its
majority shareholder, Sivensa, to a banking syndicate headed by
ING.  The debt would due in 2009.

Carlos Omana of D'Empaire Reyna Bermudez Abogados, the advisor
of Deutsche Bank, told LatinLawyer Online, "The importance of
this issuance is that it is only the second international debt
issue from a private Venezuelan issuer since foreign exchange
controls were imposed here in 2003."

According to LatinLawywer, CA La Electricidad de Caracas made
the first issuance.

Deutsche Bank also granted Sidetur a US$13 million short-term
loan, LatinLawyer states.  The loan matured on March 31, 2006.

                        *    *    *

As reported in the Troubled Company Reporter on April 19, 2006,
Standard & Poor's Rating Services said that it assigned its 'B'
long-term corporate credit rating to Caracas, Venezuela-based
Siderurgica del Turbio S.A. -- Sidetur.  In addition, Standard &
Poor's assigned its 'B' senior unsecured debt rating to the
company's proposed US$100 million fixed-rate notes due 2016.
The outlook is stable.



                         ***********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
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Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

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members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.


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