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         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

            Wednesday, July 12, 2006, Vol. 7, Issue 137

                             Headlines

A R G E N T I N A

ARLENA SA: Trustee Presents Individual Reports on Aug. 17
CONSULTADORA DE SALUD: Individual Reports Due on Aug. 28
DALLA CARS: Trustee to Deliver Individual Reports on Aug. 15
DESHIDRATADOS SALTA: Individual Reports Due in Court on Aug. 23
DOCANE SA: Trustee Submits Individual Reports on Aug. 29

EL PLATA: Individual Reports to be Submitted in Court on Aug. 14
FAVUZZI CONSTRUCCIONES: Individual Reports Due on Aug. 29
HIDRAULICA SV: Trustee to Present Individual Reports on Aug. 11
SUCESION DE CAMPI: Trustee Verifies Claims Until Sept. 7
TRANSPORTADORA DE GAS DEL SUR: S&P Outlines Risk Factors

TOP EXPRESS: Individual Reports Due in Court on Aug. 11

B A H A M A S

REFCO: 3 Parties Object to Ch. 11 Trustee's Skadden Retention
REFCO: Court to Consider Exclusive Period Requests on July 20
SBARRO INC: 2005 Fin'l Results Cues Moody's to Up Rating to Caa1
WINN-DIXIE: Intends to Honor Secured Claims Under Various Pacts
WINN-DIXIE: Wants to Amend Two Schedules to Disallow 93 Claims

B E R M U D A

ACE AMERICAN: Randall Deal Cues Fitch to Withdraw CCC+ Rating
AERCAP FUNDING NO.1: Filing of Proofs of Claim Is Until July 19
AERCAP FUNDING NO.2: Proofs of Claim Filing Is Until July 19
AERCAP FUNDING NO.3: Creditors Must Present Claims by July 19
TOTAL FITNESS: Creditors' First Meeting Willl be Held on July 18

B O L I V I A

CORPORACION MINERA: Forms Joint Venture with Franklin Mining

B R A Z I L

ALERIS INTERNATIONAL: Moody's Affirms B1 Corporate Credit Rating
BANCO DO BRASIL: Helps Retail Groups Provide Consumer Loans
BANCO NACIONAL: Provides BRL45MM Financing to Cia. De Navegacao
BANCO NACIONAL: Grants BRL40.9-Million Loan to MRC Rental
PETROLEO BRASILEIRO: Petroquisa Joins Citepe in Yarn Production

VARIG: Brazilian Court Approves Volo's US$500-Million Bid

C A Y M A N   I S L A N D S

CORBEL INVESTMENTS: Proofs of Claim Filing Is Until Aug. 25
INVESTCORP SKS: Last Day to File Proofs of Claim Is on Aug. 18
MPC COMMODITY: Final Shareholders Meeting on Aug. 30
PROMO SPORTCAR: Creditors Required to Submit Claims by Sept. 13
REAL CLOTHES: Creditors Must File Proofs of Claim by Aug. 18

SAKS CORPORATE: Creditors Have Until Aug. 18 to Present Claims
SAKS FIFTH: Deadline for Proofs of Claim Filing Is on Aug. 18
SFA INVESTMENTS: Filing of Proofs of Claim Is Until Aug. 18
SUN CAPITAL: Will Hold Final Shareholders Meeting on Aug. 14
WORKS HOLDINGS: Proofs of Claim Filing Deadline Is on Aug. 18

C H I L E

LORAL SPACE: Unit to Provide Satellite Services to Entel Chile

C O L O M B I A

MILLICOM INTERNATIONAL: Vies for Strategic Partnership with Ola

C O S T A   R I C A

* COSTA RICA: Lawmaker Wants Concessionaire to Do Railway Works

C U B A

* CUBA: Inks Exchange & Collaboration Pact with Antigua
* CUBA: US Congressman Urges Energy Joint Ventures with Country

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Former Head's Lawyers Release Evidence
BANCO INTERCONTINENTAL: Jose Malkun Expects to Testify in Court

E C U A D O R

* ECUADOR: Liquid International Reserves Down to US$2.232B

G U A T E M A L A

BANCO INDUSTRIAL: Central Bank Okays Merger with Occidente

H A I T I

* HAITI: Emigrants to Ask President Flexible Investment Terms

J A M A I C A

DIGICEL LIMITED: Among Candidates to be Ola's Strategic Partner
KAISER ALUMINUM: Removal Deadline Expires on August 5
KAISER ALUMINUM: Inks US$250 Million JPMorgan-Arranged Loan

M E X I C O

GENERAL MOTORS: Merger May Affect Nissan's Ratings, Says Fitch
GRUPO IUSACELL: Inks Broadband Dev't Pact with Smith & UTStarcom
MERIDIAN AUTOMOTIVE: BDO Seidman's Scope of Work Expanded

N I C A R A G U A

* NICARAGUA: Seeks US$30-Million Debt Pardon from Venezuela

P A N A M A

FINANCIERO CONTINENTAL: Will Buy Sabadel's Atlantico for US$96MM

P A R A G U A Y

* PARAGUAY: Won't Join Southern Gas Pipeline Project

P E R U

GLOBAL CROSSING: Head Says Free Trade Accords Good for Firms

P U E R T O   R I C O

ADVANCE AUTO: Sees Lower Fiscal 2006 Second Quarter Sales
GLOBAL HOME: Sells WearEver Cookware Business to Lifetime Brands
MAXXAM INC: CFO John Karnes Resigns from Post

T R I N I D A D   &   T O B A G O

MIRANT CORP: Mitsui Settlement Deal Junks US$3-Million Claim

U R U G U A Y

* URUGUAY: Won't Participate in Southern Gas Pipeline Project
* URUGUAY: State Firm Launches Punta del Tigre Test Operations

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Elnusa Wants Firm to Have Stake in Plant
PETROLEOS DE VENEZUELA: Unit May Get Gas Exploration Licenses

* VENEZUELA: Marquez Talks About CAN in Mercosur Context
* VENEZUELA: Fitch Says Heavy Oil Project at Risk


                         - - - - -


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


ARLENA SA: Trustee Presents Individual Reports on Aug. 17
---------------------------------------------------------
Marta Elena Pereyra, the court-appointed trustee for Arlena
S.A.'s reorganization proceeding, will submit individual reports
in court on Aug. 17, 2006.  A general report that contains an
audit of the company's accounting and banking records will
follow on Oct. 3, 2006.

On Apr. 17, 2007, the company's creditors will vote on a
settlement plan that Arlena S.A. will lay on the table.

As reported in the Troubled Company Reporter-Latin America on
June 16, 2006, Ms. Pereyra verified creditors' proofs of claim
until June 23, 2006.

The debtor can be reached at:

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

The trustee can be reached at:

         Marta Elena Pereyra
         Cervantes 531, Resistencia
         Chaco, Argentina


CONSULTADORA DE SALUD: Individual Reports Due on Aug. 28
--------------------------------------------------------
Carlos Daniel Ayuso, the court-appointed trustee for
Consultadora de Salud S.A.'s bankruptcy case will present in
court individual reports based on the verified claims on
Aug. 28, 2006.  A general report that contains an audit of the
company's accounting and banking records as well as a summary of
events on the proceeding will follow on Oct. 9, 2006.

Mr. Ayuso verified creditors' claims until July 3, 2006.

Judge Chomer of Court No. 10 in Buenos Aires ordered that
Consultadora de Salud's insolvency case must be converted into a
bankruptcy proceeding.  Dr. D'Alessandri, Clerk No. 19, assists
the court on the case.

The debtor can be reached at:

            Consultora de Salud S.A.
            5th Floor Ave, Rivadavia 2358
            Buenos Aires, Argentina

The trustee can be reached at:

            Carlos Daniel Ayuso
            Tucuman 1455
            Buenos Aires, Argentina


DALLA CARS: Trustee to Deliver Individual Reports on Aug. 15
------------------------------------------------------------
Ramon Antonio Ruiz, the court-appointed trustee for Dalla Cars
S.A.'s bankruptcy proceeding will present in court individual
reports based on the verified claims on Aug. 15, 2006.  A
general report that contains an audit of the company's
accounting and banking records as well as a summary of events on
the proceeding will follow on Sept. 27, 2006.

As reported in the Troubled Company Reporter-Latin America on
June 6, 2006, Mr. Ruiz verified creditors' proofs of claim until
July 3, 2006.

The debtor can be reached at:

         Dalla Cars S.A.
         Avenida Hipolito Yrigoyen 267, Quilmes
         Buenos Aires, Argentina

The trustee can be reached at:

         Ramon Antonio Ruiz
         San Martin 528, Quilmes
         Buenos Aires, Argentina


DESHIDRATADOS SALTA: Individual Reports Due in Court on Aug. 23
---------------------------------------------------------------
Sandra Beatriz Dagum, the court-appointed trustee for
Deshidratados Salta S.A.'s bankruptcy proceeding will present in
court individual reports based on the verified claims on
Aug. 23, 2006.  A general report that contains an audit of the
company's accounting and banking records and a summary of the
proceeding will follow on Oct. 4, 2006.

As previously reported in the Troubled Company Reporter-Latin
America, Ms. Dagum verified creditors' proofs of claim until
June 22, 2006.

The debtor can be reached at:

         Deshidratados Salta S.A.
         General Guemes 86, Ciudad de Salta
         Salta, Argentina

The trustee can be reached at:

         Sandra Beatriz Dagum
         Santa Fe 88
         Salta, Argentina


DOCANE SA: Trustee Submits Individual Reports on Aug. 29
--------------------------------------------------------
Moises Gorelik, the court-appointed trustee for Docane S.A.'s
reorganization proceeding will present in court individual
reports based on the verified claims on Aug. 29, 2006.  A
general report that contains an audit of the company's
accounting and banking records as well as a summary of events on
the proceeding will follow on Oct. 9, 2006.

On Apr. 9, 2007, the company's creditors will vote on a
settlement plan that Docane S.A. will lay on the table.

As reported in the Troubled Company Reporter-Latin America on
June 8, 2006, Mr. Gorelik verified creditors' proofs of claim
until July 3, 2006.

The trustee can be reached at:

         Moises Gorelik
         Avenida Cordoba 850
         Buenos Aires, Argentina


EL PLATA: Individual Reports to be Submitted in Court on Aug. 14
----------------------------------------------------------------
Court-appointed trustee Edgardo Adolfo Lucchetti will submit in
court individual reports based on the verified creditors' proofs
of claim against El Plata S.R.L. on Aug. 14, 2006.

As reported in the Troubled Company Reporter-Latin America on
June 9, 2006, Mr. Lucchetti verified creditors' claims until
July 4, 2006.

The trustee can be reached at:

         Edgardo Adolfo Lucchetti
         Santa Cruz 584, Ciudad de Mendoza
         Mendoza, Argentina


FAVUZZI CONSTRUCCIONES: Individual Reports Due on Aug. 29
---------------------------------------------------------
A court-appointed trustee for Favuzzi Construcciones Civiles
S.R.L.'s bankruptcy case will submit individual reports in court
on Aug. 20, 2006.  A general report that contains an audit of
the company's accounting and banking records will follow on
Oct. 11, 2006.

As reported in the Troubled Company Reporter-Latin America on
June 16, 2006, an unnamed trustee verified creditors' proofs of
claim against Favuzzi Construcciones until June 29, 2006.

A court in Rosario, Santa Fe, declared Favuzzi Construcciones
bankrupt after it defaulted on its obligations.

The debtor can be reached at:

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


HIDRAULICA SV: Trustee to Present Individual Reports on Aug. 11
---------------------------------------------------------------
Enrique Batellini, the court-appointed trustee for Hidraulica
S.V. S.A.'s bankruptcy case will present in court individual
reports based on the verified claims on Aug. 11, 2006.  A
general report that contains an audit of the company's
accounting and banking records as well as a summary of the
proceeding will follow on Sept. 22, 2006.

As previously reported in the Troubled Company Reporter-Latin
America, Mr. Batellini verified creditors' proofs of claim until
June 23, 2006.

The trustee can be reached at:

         Enrique Batellini
         Parana 774
         Buenos Aires, Argentina


SUCESION DE CAMPI: Trustee Verifies Claims Until Sept. 7
--------------------------------------------------------
Court-appointed trustee Jose Angel Sallon will verify creditors'
proofs of claim against bankrupt company Sucesion de Campi
Margarita Nelida until Sept. 7, 2006.

Creditors who fail to present their proofs of claims won't
receive any post-liquidation distribution that the liquidator
will make.

Mr. Sallon will submit in court individual reports and a general
report that contains an audit of Sucesion de Campi's accounting
and banking records after the claims verification.  The report
submission dates have not been disclosed.

The trustee can be reached at:

    Jose Angel Sallon
    Libertad 860
    Buenos Aires, Argentina


TRANSPORTADORA DE GAS DEL SUR: S&P Outlines Risk Factors
--------------------------------------------------------
The ratings on Transportadora de Gas del Sur S.A. or TGS
reflect:

   -- the high political and regulatory risk the company faces
      in Argentina,

   -- still-high leverage after restructuring,

   -- partial currency mismatch between revenues (partly
      denominated in Argentine pesos) and debt service
      (denominated in U.S. dollars), and

   -- limited financial flexibility.

The above-mentioned risks are partially offset by the benefits
of Argentine peso devaluation on TGS' unregulated activity
(although the unregulated activity is somewhat exposed to the
swings in international prices) and by a favorable debt maturity
schedule after debt restructuring.

TGS is Argentina's largest natural gas transportation company
and had about US$837 million in debt outstanding as of
March 31, 2006.  The ratings still reflect some government
intervention that could partially affect TGS' unregulated
business, given the uncertainties regarding future natural gas
supply to be processed at the Cerri Complex.

The conclusion of debt restructuring in late 2004 led to
significant debt relief.  Although there was no haircut on
principal, maturities have been pushed out significantly and are
amortizing more in line with expected cash flow generation
capacity.  Standard & Poor's Ratings Services expects TGS' funds
from operations to represent between 15% and 20% of total debt
in the next two years.  TGS should be able to face the first six
years of interest and principal amortization, assuming EBITDA
generation of about US$200 million and some flexibility in
capital expenditures.  In the longer term, the company will need
to increase revenues or obtain other sources of refinancing to
meet the requirements of a growing debt service profile.

Nevertheless, assuming a relatively stable evolution of the
Argentine peso/U.S. dollar exchange rate, TGS should be able to
reduce some additional debt in the next few years through the
cash sweep mechanisms included in the restructuring conditions.
(During 2005, TGS paid about US$55 million of additional
amortization due to these mechanisms.)

Despite the more favorable maturity schedule, as long as TGS
does not increase revenues and cash generation, its repayment
capacity could be affected, particularly in scenarios of peso
devaluation and high inflation.  Standard & Poor's considers the
company's future cash flow generation to be somewhat unclear as
long as the renegotiation of the concession contracts is not
resolved and until a new tariff adjustment mechanism has been
determined to re-establish the company's financial and economic
balance.  The rating agency also considers potential mandated
increases in capital expenditures to be another form of
regulatory risk.  Given TGS' current revenue base and capital
structure, its financial performance will also depend on the
performance of the international natural gas liquids prices.

More than half of TGS' revenues (57% in 2005) are unregulated
and come from selling NGL processed at the Cerri complex near
the city of Bahˇa Blanca, in Buenos Aires Province.  Although
this U.S. dollar-linked revenue stream became more significant
after the peso devaluation, TGS' financial risk profile severely
weakened as a result of the government's emergency measures in
early 2002.

TGS' capital structure significantly improved due to debt
reduction. Consequently, total debt to total capitalization
decreased to 50.6% as of March 31, 2006, from 55.2% in fiscal
2004 and 61.2% in fiscal 2003. Continuing debt reduction is
expected, given the amortization profile of the restructured
debt and the limitations on incurring additional debt.
Nevertheless, the foreign exchange rate will remain critical for
TGS because its entire debt burden is still U.S. dollar-
denominated. The company does not face interest rate risk
because its all debt is at fixed (although step-up) rates.

As Argentina's largest natural gas transportation company, TGS
delivers more than 60% of the country's total gas consumption.
It has a 35-year license to operate Argentina's southern gas
transportation system (regulated activity).  TGS also operates a
natural gas separation facility near Bahˇa Blanca.  The company
separates natural gas into ethane, butane, propane, and natural
gasoline, which are sold to distributors, refineries, and other
third parties (unregulated activity).

Liquidity

TGS' liquidity is relatively adequate, having significantly
improved after the rescheduling of its debt maturities.  As of
March 31, 2006, TGS had about US$220 million in cash and short-
term investments, abundantly exceeding its short-term debt.  In
addition, the new obligations issued contain certain cash sweep
mechanisms and various restrictive covenants, including:

   -- limitations to issue additional debt,
   -- maximum capital expenditures and investments, and
   -- restrictions on dividend payments, among others.

Nevertheless, these conditions should not jeopardize the
company's current liquidity.  In the medium term, TGS'
deleveraging should help improve financial flexibility.

Outlook

The stable outlook on TGS reflects expectations of strengthening
repayment capacity after the improvement in the company's debt
maturity schedule, certain stability in the exchange rate, and a
certain degree of government intervention in the company's
operations.  The ratings on TGS could benefit from future
perceived important improvements in the country's institutional
environment or from a renegotiation of the concession contract
favorable for the company's cash flow generation. Nevertheless,
the ratings could come under pressure if the renegotiation of
the concession contract negatively affects TGS' business or
financial risk profiles, or if further government intervention
(e.g., in the form of mandatory investments, additional export
duties, or significant natural gas restrictions to be processed
at Cerri) significantly affects the company's cash generation.

On March 30, 2005, S&P assigned CCC+ on Transportadora de Gas'
local and foreign currency ratings.


TOP EXPRESS: Individual Reports Due in Court on Aug. 11
-------------------------------------------------------
Adriana E. Serki, the court-appointed trustee for Top Express
S.A.'s bankruptcy case will present in court individual reports
based on the verified claims on Aug. 11, 2006.  A general report
that contains an audit of the company's accounting and banking
records as well as a summary of events on the proceeding will
follow on Sept. 26, 2006.

As previously reported in the Troubled Company Reporter-Latin
America, Mr. Serki verified creditors' proofs of claim until
June 14, 2006.

The debtor can be reached at:

         Top Express S.A.
         Santa Fe 1373, Rosario
         Santa Fe, Argentina

The trustee can be reached at:

         Adriana E. Serki
         Ituzaingo 1575, Rosario
         Santa Fe, Argentina




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


REFCO: 3 Parties Object to Ch. 11 Trustee's Skadden Retention
-------------------------------------------------------------
Marc S. Kirschner, the Chapter 11 trustee of the estate of Refco
Capital Markets, Ltd., asked the U.S. Bankruptcy Court for the
Southern District of New York for authority to employ Skadden,
Arps, Slate, Meagher & Flom LLP, as his special counsel.

                         Objections

(A) Wells Fargo

Wells Fargo Bank, National Association tells Judge Drain that it
is not at all clear whether Skadden, Arps, Slate, Meagher &
Flom, LLP, may provide legal advice to the Debtors' creditors,
including those of the non-RCM Debtors, on matters that may be
adverse to RCM, and whether the Other Refco Entities could act
on that advice to maximize recoveries for the parties to whom
they owe duties of loyalty.

Wells Fargo is the indenture trustee under an Indenture dated as
of August 5, 2004, with respect to the 9% Senior Subordinated
Notes due 2012, aggregating US$600,000,000.

Walter H. Curchack, Esq., at Loeb & Loeb LLP, in New York,
asserts that if the role of the executives of the Other Refco
Entities will not include zealous advocacy solely for the non-
RCM creditors when conflict issues arise between RCM and the
Other Refco Entities, the Bankruptcy Court, at a minimum, must
clarify who will play that role for the benefit of those
creditors and give that party authority to act for the sole
interest of the Other Refco Entities -- a privilege that, at
this point, only the RCM creditors enjoy.

Specifically, Wells Fargo proposes that if Skadden is to be
retained by the RCM Trustee, its role should be limited to
advising the RCM Trustee solely with respect to issues that are
not and do not have potential to be in conflict with the
interests of the Other Refco Entities.

Wells Fargo maintains that any order approving the Skadden
Retention should make clear that the allocation referred to in
the engagement letter is not binding on any party, will not
create a presumption regarding cost-allocation for any purpose,
and will remain subject to further Court order.

Wells Fargo cannot at this time take a position with respect to
the allocation methodology of Skadden's professional fees
because the RCM Trustee has failed to disclose the rationale for
that allocation.

Moreover, Mr. Curchack notes that the Skadden engagement letter
contemplates that only the proposed fee committee may challenge
the proposed allocation.

(B) Ad Hoc Committee

The Ad Hoc Committee of holders of the 9.0% Senior Subordinated
Notes due 2012, issued by Refco Finance, Inc., and Refco Group
Ltd., LLC, contends that the Skadden Application is patently
inappropriate and is not what the Court intended when it
appointed the RCM Trustee.

Michael J. Sage, Esq., at Stroock & Stroock & Lavan LLP, in New
York, points out that the Court indicated that the RCM Trustee
should rely primarily on his own business and legal judgment and
should not hire an army of professionals.

Mr. Sage says the RCM Trustee's attempt to hire professionals
with undivided loyalty to RCM, and to systematically silence the
estate-funded fiduciaries that may be adverse to RCM, indicates
that the RCM Trustee is not interested in working toward a
global resolution of the RCM cases.

Mr. Sage notes that intercompany claims may well be the
preeminent issue in these cases.  However, the RCM Trustee's
Application provides that Skadden will not be permitted, without
a waiver from RCM, to represent the non-RCM Entities in
litigation against RCM with respect to intercompany claims.

Skadden will also provide services to the RCM Trustee with
respect to the BAWAG settlement and the SPhinX preference
action, both of which will presumably include issues relating to
the allocation of the recovered proceeds, according to Mr. Sage.
The allocation of the recovered proceeds from both the BAWAG and
the SPhinX litigations will be hotly contested by all parties-
in-interest in these cases and will likely involve issues that
relate to intercompany claims.  In the event the Application is
granted, Skadden would be precluded from taking positions that
are adverse to RCM with respect to the allocation of the
recovered proceeds.

(C) Bank of America

Bank of America, N.A., the administrative agent for prepetition
secured lenders, says the RCM Trustee is attempting to
neutralize the professionals representing the other Debtors
estates.  BofA notes that those professionals are obligated to
defend the rights of the Debtors' creditors against RCM s
attacks, and perhaps even to pursue offensive claims against RCM
and its constituents.  They cannot be required to obtain the
permission of the RCM Trustee to do so.

"If these cases are about to degenerate into a litigation
quagmire over intercompany and inter-creditor issues, then the
other Debtors and their creditors are entitled to unconflicted
representation in this Court," Karen E. Wagner, Esq., at Davis
Polk & Wardwell, in New York, tells Judge Drain.

According to Ms. Wagner, the provision in the engagement letter,
which provides that Skadden will not to litigate against RCM
without obtaining a waiver from the RCM Trustee, will leave the
Refco Group Estates unrepresented with regard to key matters.

Ms. Wagner says the more appropriate resolution is to require
that, rather than being preserved by the RCM Trustee, any
conflict will be waived, Ms. Wage says.

          RCM Trustee Wants All Objections Overruled

"The [O]bjecting [P]arties have it all wrong," Timothy B.
DeSieno, Esq., at Bingham Mccutchen LLP, in New York, tells
Judge Drain.  "They ascribe to the [RCM] Trustee the
Machiavellian motive of 'conflicting out' the [o]ther Chapter 11
Debtors' professionals so that those professionals cannot be
adverse to the [RCM] Trustee."

Mr. DeSieno clarifies that what the RCM Trustee is really
seeking to do is balance his many duties as trustee with cost
concerns in accordance with the Bankruptcy Court's order.  Mr.
DeSieno explains that the conflicts issues raised by the
Objecting Parties are illusory -- to the extent they exist, they
also existed before the appointment of the RCM Trustee.

Mr. DeSieno says that the RCM Trustee requires the advice and
assistance of professionals to discharge his duties in RCM's
case, considering:

   (a) the size and complexity of the RCM estate;

   (b) the myriad issues in RCM's cases;

   (c) the extensive fiduciary, management, reporting, and other
       responsibilities imposed on a Chapter 11 trustee; and

   (d) the fact that RCM has no employees of its own.

According to Mr. DeSieno, it is not reasonable to expect that
the RCM Trustee acting alone could discharge those statutory
duties, much less also spend the innumerable hours he has spent
striving to achieve a resolution among the RCM constituencies as
a precursor to working out a global resolution of the Chapter 11
Debtors' cases.

Mr. DeSieno argues that the Objecting Parties' primary
suggestion -- that the RCM Trustee only informally consult other
estates' and professionals without their having any
responsibility to him -- is unworkable in view of the RCM
Trustee's numerous and non-delegable responsibilities as a
fiduciary in the RCM's case.

"Nor does it address the fact that the conflicts the Objecting
Parties decry have always existed, and will continue to exist,
in these cases," Mr. DeSieno says.

Resolving substantial intercompany disputes and other matters
underlying a global resolution of the RCM's cases are, and have
always been, central issues, well before the RCM Trustee's
appointment, Mr. DeSieno points out.  The conflicting loyalties
of the Professionals were born of different interests of
creditor constituencies, not because of the RCM Trustee's
appointment.

Given that each of the Professionals is already performing
services for RCM, prevailing rules of professional
responsibility already prohibit their being adverse to RCM,
regardless of whether the RCM Trustee were to engage them.

                      About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Bingham
McCutchen LLP represents Mr. Kirschner.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 34; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


REFCO: Court to Consider Exclusive Period Requests on July 20
-------------------------------------------------------------
The Hon. Robert D. Drain of the United States Bankruptcy Court
for the Southern District of New York adjourned, to
July 20, 2006, the hearing to consider Refco Inc., and its
debtor-affiliates' request to extend their:

    * Exclusive Plan Filing Period to Sept 1, 2006; and
    * Exclusive Solicitation Period to Oct. 31, 2006.

As reported in the Troubled Company Reporter on May 22, 2006,
the Court had previously set the hearing on June 27, 2006.

                       About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products.  Refco is one of
the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Bingham
McCutchen LLP represents Mr. Kirschner.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 34; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


SBARRO INC: 2005 Fin'l Results Cues Moody's to Up Rating to Caa1
----------------------------------------------------------------
Moody's Investors Service upgraded both the corporate family and
senior unsecured ratings of Sbarro, Inc., to Caa1 from Caa2
while at the same time changed the ratings outlook to positive
from negative.

The rating actions reflect Sbarro's improved operating
performance in fiscal 2005 and year-to-date highlighted by
positive same store sales growth and a steadily expanding
franchisee base.  The ratings remain constrained by:

    1) weak credit metrics stemming primarily from high
       financial leverage,

    2) limited financial flexibility and access to alternate
       liquidity,

    3) intense competition within the pizza segment of the
       restaurant industry and

    4) seasonality of revenues and cash flow driven largely by
       shopping mall traffic.

These ratings are upgraded with a positive outlook:

   -- Corporate family rating: to Caa1 from Caa2;

   -- Senior unsecured rating: to Caa1 from Caa2; and

   -- US$255 million senior unsecured notes maturing in
      2011: to Caa1 from Caa2.

Moody's previous rating action on Sbarro was in November of 2003
when the corporate family and senior unsecured ratings were
lowered to Caa2 and the outlook moved to negative due to
declining sales, negative free cash flow generation and the
termination of its revolving credit facility due to perpetual
covenant violations.

Sbarro, Inc. headquartered in Melville, New York, is a leading
quick service restaurant chain that serves Italian specialty
foods.  As of April 23, 2006, the company owned and operated 482
and franchised 491 restaurants worldwide under brand names such
as "Sbarro,", "Umberto's," and "Carmela's Pizzeria".  Total
revenues for fiscal 2005 were approximately US$348 million.


WINN-DIXIE: Intends to Honor Secured Claims Under Various Pacts
---------------------------------------------------------------
Pursuant to their Joint Plan of Reorganization, Winn-Dixie
Stores, Inc., and its debtor-affiliates intend to continue their
obligations with respect to secured claims existing under the
terms of these agreements:

    (i) the Application and Agreement for Standby Letter of
        Credit, dated as of Dec. 6, 2001, as modified on
        April 29, 2002, between AmSouth Bank and Winn-Dixie;

   (ii) the Assumption Agreement dated as of Oct. 12, 2000,
        among Winn-Dixie as assuming borrower, Gooding's
        Supermarket, Inc., as original borrower, and Lutheran
        Brotherhood, now known as Thrivent Financial for
        Lutherans, as lender; and

  (iii) the Teradata Purchase Addendum dated as of
        Dec. 22, 2004, between Winn-Dixie and NCR Corp.

This will result in a continuing contingent obligation with
respect to the AmSouth claim of about US$17,000,000 and secured
payment obligations with respect to the Thrivent/Lutherans and
NCR claims of approximately US$3,800,000 in the aggregate.

In addition, the Debtors will have approximately US$31,300,000
of secured payment obligations with respect to Secured Tax
Claims and other secured obligations as may be identified.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people.  The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on
Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred
Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through
05-03840).  D.J. Baker, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Sarah Robinson Borders, Esq., and Brian C. Walsh,
Esq., at King & Spalding LLP, represent the Debtors in their
restructuring efforts.  Paul P. Huffard at The Blackstone Group,
LP, gives financial advisory services to the Debtors.  Dennis F.
Dunne, Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John
B. Macdonald, Esq., at Akerman Senterfitt give legal advice to
the Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 43; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


WINN-DIXIE: Wants to Amend Two Schedules to Disallow 93 Claims
--------------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Middle District of Florida, under Rules
1009 and 9014 of the Federal Rules of Bankruptcy Procedure, to
deem their schedules of assets and liabilities and schedules of
executory contracts and unexpired leases amended to disallow,
reduce or reclassify 93 scheduled claims.

A. No Liability Claims

The Debtors have identified 14 scheduled claims that their books
and records reflect as zero balance claims, as a result of:

    (a) prepetition payments that were not reflected in their
        books and records at the time the Schedules were filed;
        or

    (b) the correction of erroneous entries in the books and
        records that were scheduled as claims.

The Debtors ask the Court to disallow these No Liability
Scheduled Claims:

      Claimant                         Claim No.
      --------                         ---------
      Anderson News LLC                  35573
      BVI DBA Primed Wetumpka            33320
      Collins & Aikman                   33472
      Collins Pointe Shopping Center     36167
      Finazzle Corporation USA           34830
      Folmar & Associates                36314
      Gravlee, Macon                     36532
      JDN Realty Corporation             31015
      Marlin Leasing Corp.               32787
      Nativa Foods                       35158
      Ocala Star Banner                  31300
      Royal & Son                        31489
      Spartanburg Coca-Cola Bottling     34183
      Spartanburg Coca-Cola Bottling     36810

B. Overstated Claims

Upon review of their books and records, the Debtors have also
identified 50 overstated scheduled claims aggregating
US$4,191,194.

The Overstated Scheduled Claims include:

                                                      Reduced
      Claimant                       Claim Amount   Claim Amount
      --------                       ------------   ------------
      Birchwood Foods                US$293,248       US$5,712
      Chattem, Inc.                     152,743        142,743
      Citi Systems Leasing              152,825        101,883
      Fieldale Farms Corp.              159,961         85,968
      Krispy Kreme, NC                  229,823         88,909
      Krispy Kreme, FL                  101,300         84,882
      Safe Harbor Seafood             1,265,923      1,107,305
      Schwan's Sales Enterprises        240,279        105,349
      Wise Foods, Inc.                  153,461         82,017

James H. Post, Esq., at Smith Hulsey & Busey in Jacksonville,
Florida, asserts that the Overstated Scheduled Claims should be
reduced to account for:

    (a) postpetition payments made on account of prepetition
        claims pursuant to a Court order;

    (b) postpetition amounts due to the claimants that were
        inadvertently included in the Overstated Scheduled
        Claims;

    (c) accounts payable credits and accounts receivable
        balances due to the Debtors; or

    (d) amounts that are otherwise no longer reflected as
        liabilities on the books and records.

Mr. Post adds that certain Overstated Scheduled Claims were
based on the same invoices as the reclamation demands submitted
by the Debtors' suppliers and vendors, thereby partially
duplicating the reclamation claims.

The Debtors and the reclamation vendors have previously agreed
to allowed reclamation claims pursuant to a reclamation trade
lien program.  The Debtors ask the Court to reduce these
Overstated Scheduled Claims by the agreed amounts.

C. Misclassified Claims.

The Debtors have identified 29 scheduled claims that are based
in part on the same invoices as the reclamation demands
submitted by the Debtors' suppliers and vendors.  As a result,
the scheduled claims partially duplicate the reclamation
demands.  The Debtors and the reclamation vendors have
previously agreed to their respective allowed reclamation
claims.

The Debtors ask the Court to reclassify the claims as
administrative priority claims, to the extent of the allowed
reclamation claims, with the remainder of the proposed reduced
claim amounts to remain classified as unsecured non-priority
claims.

The Misclassified Scheduled Claims, aggregating US$3,222,197,
include:

      Claimant                       Claim No.      Claim Amount
      --------                       ---------      ------------
      Chloe Foods Corp.                34685        US$215,467
      Coty US, Inc.                    34727           123,178
      Gold Kist, Inc.                  34888           149,527
      Pacific Coast Producers          35212           207,964
      Reynolds Metals Co.              35785           166,014
      Schwan's Bakery, Inc.            35343           510,795
      Silver Eagle Dist. Key West      32203           370,800
      St. John's Beverage Co.          35396           313,692
      Swift & Co.                      35430           194,282
      Wenner Bread Products, Inc.      35534           238,149


Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people.  The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on Feb. 21,
2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred Apr. 14,
2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through 05-03840).
D.J. Baker, Esq., at Skadden Arps Slate Meagher & Flom LLP, and
Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King
& Spalding LLP, represent the Debtors in their restructuring
efforts.  Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 43; Bankruptcy Creditors' Service, Inc., 215/945-
7000).




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


ACE AMERICAN: Randall Deal Cues Fitch to Withdraw CCC+ Rating
-------------------------------------------------------------
Fitch Ratings today affirmed the 'B-' insurer financial strength
rating of Century Indemnity Company, the 'CCC+' IFS rating of
ACE American Reinsurance Company and the 'CCC+' IFS rating of
Century Reinsurance Company.  All ratings were removed from
Rating Watch Negative.  Fitch then withdrew its IFS rating of
ACE American Re.  The Rating Outlook is Negative for all
ratings.

The rating actions follow an announcement that the pending sale
of ACE American Re to Randall and Quilter Investment Holdings
had been consummated.  ACE American Re is one of three run-off
reinsurance subsidiaries that were sold to Randall and Quilter
by Brandywine Holdings, whose ultimate parent is Bermuda-based
ACE Limited.

The affirmation follows approval of the sale by the United
Kingdom's Financial Services Authority and the Pennsylvania
Department of Insurance.

Fitch also commented that it views the closing of the sale of
the run-off insurance subsidiaries as a positive credit event
for ACE because it reduces uncertainty about ACE's exposure to
asbestos and environmental claims and reinsurance recoverables.

Although ACE's obligations to Brandywine are fixed and finite
under the terms of a 1996 restructuring agreement, Fitch
believes that it is sensible for ACE to manage Brandywine
through an orderly disposition of its insurance subsidiaries.
The sale reduces ACE's A&E reserves by approximately US$900
million and its reinsurance recoverables by approximately US$400
million.  However, Fitch also notes that, after the sale, ACE
will still have significant A&E liabilities and reinsurance
recoverables.

Brandywine Holdings is an intermediate holding company that is
ultimately owned by ACE.  Brandywine Holdings and INA Holdings,
another intermediate holding company, together comprise the
domestic operations of INA Financial, their parent, and
represent the US property/casualty insurance operation that ACE
purchased from CIGNA Corporation in 1999. INA Holdings owns the
15 insurance companies that represent the group's active
insurance operations.  Brandywine Holdings owns the two domestic
insurance companies that are inactive, run-off operations now
largely consisting of asbestos and environmental claims.  The
two groups were separated in a 1996 restructuring.  However, the
groups remain linked through an aggregate excess of loss
agreement.  The excess of loss agreement originally provided
Century Indemnity Company, the lead inactive company, with up to
US$800 million of support for either net worth maintenance or
liquidity needs.

Fitch affirms these ratings and removes them from Rating Watch
Negative.  The Outlook is Negative:

   Century Indemnity Company

      -- Insurer Financial Strength Rating: 'B-';

   ACE American Reinsurance Company

      --Insurer Financial Strength Rating: 'CCC+'; and

   Century Reinsurance Company

      -- Insurer Financial Strength Rating: 'CCC+'.

Fitch withdraws this rating:

   ACE American Reinsurance Company

      -- Insurer Financial Strength Rating: 'CCC+'.

The ACE Group of Companies is one of the world's largest
providers of property and casualty insurance and reinsurance.
Headquartered in Bermuda, ACE provides a diversified range of
products and services to clients in nearly 50 countries around
the world.


AERCAP FUNDING NO.1: Filing of Proofs of Claim Is Until July 19
---------------------------------------------------------------
Aercap Funding No.1 (Bermuda) Ltd.'s creditors are given until
July 19, 2006, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.

Creditors are required to send by the July 19 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mayor.

A final general meeting will be held at the liquidator's place
of business on Aug. 10, 2006, at 9:30 a.m.

Aercap Funding No.1's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed.  Furthermore, the shareholders will decide whether
or not Hypoguard Development will be dissolved.

Aercap Funding No.1's shareholders agreed on June 28, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

         Robin J. Mayor
         Messrs. Conyers Dill & Pearman
         Clarendon House, Church Street
         Hamilton, HM DX, Bermuda


AERCAP FUNDING NO.2: Proofs of Claim Filing Is Until July 19
------------------------------------------------------------
Aercap Funding No.2 (Bermuda) Ltd.'s creditors are given until
July 19, 2006, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.

Creditors are required to send by the July 19 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mayor.

A final general meeting will be held at the liquidator's place
of business on Aug. 10, 2006, at 9:30 a.m., or as soon as
possible.

Aercap Funding No.2's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed.  Furthermore, the shareholders will decide whether
or not Hypoguard Development will be dissolved.

Aercap Funding No.2's shareholders agreed on June 28, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

         Robin J. Mayor
         Messrs. Conyers Dill & Pearman
         Clarendon House, Church Street
         Hamilton, HM DX, Bermuda


AERCAP FUNDING NO.3: Creditors Must Present Claims by July 19
-------------------------------------------------------------
Aercap Funding No.3 (Bermuda) Ltd.'s creditors are given until
July 19, 2006, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.

Creditors are required to send by the July 19 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mayor.

A final general meeting will be held at the liquidator's place
of business on Aug. 10, 2006, at 9:30 a.m., or as soon as
possible.

Aercap Funding No.3's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed.  Furthermore, the shareholders will decide whether
or not Hypoguard Development will be dissolved.

Aercap Funding No.3's shareholders agreed on June 28, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

         Robin J. Mayor
         Messrs. Conyers Dill & Pearman
         Clarendon House, Church Street
         Hamilton, HM DX, Bermuda


TOTAL FITNESS: Creditors' First Meeting Willl be Held on July 18
----------------------------------------------------------------
Total Fitness Centre Ltd.'s creditors will hold their first
meeting at 10:00 a.m. on July 18, 2006 at:

    The Registrar of Companies
    4th Floor, 30 Parliament Street
    Hamilton HM 12, Bermuda

The shareholders' meeting will follow at 10:30 a.m.

Proxy forms to be used at the meeting have been mailed to all
known creditors and must be registered with the provisional
liquidator by 5:00 p.m. on July`17, 2006.

The provisional liquidator can be reached at:

    Malcolm Butterfield
    KPMG Financial Advisory Services Limited
    Crown House, 4 Par-la-Ville Road
    Hamilton, Bermuda




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


CORPORACION MINERA: Forms Joint Venture with Franklin Mining
------------------------------------------------------------
Corporacion Minera de Bolivia aka Comibol, Bolivia's state-run
mining company, has signed a joint venture contract on four
veins at the Cerro Rico silver deposit in Potosi department with
Franklin Mining, Bolivia S.A., the Bolivian unit of US firm
Franklin Mining, Inc., Business News Americas reports.

Jaime Melgarejo, the Chief Executive Officer of Franklin Mining,
said that the partnership between his company and Comibol is
official.

This is the first time Comibol has partnered with a corporation
outside of Bolivia since the 1950s.

As reported in the Troubled Company Reporter-Latin America on
June 30, 2006, Comibol approved Franklin Mining to be its joint
venture partner in the Cerro Rico Mines.  The joint venture
would cover the Cerrorico silver mine in Bolivia's Potosi
department.  Both companies agreed to include four silver veins
in the mine.  Comibol would make the mines available while
Franklin would provide the capital as well as the mining know-
how.  The two firms also considered including into the joint
venture a group of local cooperatives that would supply the
necessary work force.

"We signed the Letter of Intent back in November.  One of the
last hurdles was the board of Directors approval.  Which we
cleared a couple of weeks ago.  Our team has worked diligently
to finalize negotiations with Comibol and to sign the contract.
This is the biggest event for our company to date," Mr.
Melgarejo said.

Cerro Rico de Potosi Mine owned by Comibol is considered the
world's largest silver deposit and one of the most popular
tourist attractions in Bolivia.  The four veins in the mine
include:

    -- San Miguel,
    -- San Pedro,
    -- Mesa Pata, and
    -- Alco Barreno.

In April 2006, FMNJ.PK announced Comibol's assignment of the
four veins in the Cerro Rico de Potosi Mine and requested
analysis of each vein's potential value from Comibol.  An
analysis of the San Miguel vein, the first of four reports to be
received, was released on May 18 describing a mineral vein 1,600
meters in length and believed to contain 154,000 kilos of
silver, 9,881 tons of tin and 28,758 tons of zinc.  The San
Miguel vein is in the northwest quadrant of Cerro Rico de
Potosi, approximately 1,600 meters in length with a width that
reaches two meters.  The remaining analysis is under review at
this time.  Comibol has also authorized concentrating plants.

Franklin Mining's joint venture with Comibol expects to initiate
operations following a full review of its assigned four mineral
veins.  Behre Dolbear, mining consultants to Franklin Mining,
will review all four reports.

Franklin Mining did not disclose any details of the final joint
venture contract, BNamericas relates.

                  About Franklin Mining, Inc.

Franklin Mining, Inc - http://franklinmining.com/-- currently
have interests in Bolivia and the United States.  The company
opened opened a division named Franklin Oil & Gas, and opened
subsidiaries in Bolivia -- Franklin Mining, Bolivia and Franklin
Oil & Gas, Bolivia.

                       About Comibol

Corporacion Minera de Bolivia aka Comibol is undergoing a
restructuring initiated by the Bolivian government.  Bolivian
President Evo Morales' initiative for the company's
restructuring would take time as currently Comibol mines are
under joint venture contracts or leasing agreements.  Comibol
has US$85 million in assets including equipment and machinery,
which cannot be used by small and medium-scale miners and
cooperatives.




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


ALERIS INTERNATIONAL: Moody's Affirms B1 Corporate Credit Rating
----------------------------------------------------------------
Moody's Investors Service confirmed Aleris International, Inc.'s
B1 corporate family rating.  In a related rating action, Moody's
assigned a Ba3 rating to the company's proposed 7 year senior
secured guaranteed term loans aggregating US$650 million, which
Aleris is issuing to partially finance its EUR691 million
acquisition of certain aluminum assets from Corus Group plc and
refinance its existing debt.

The balance of the necessary funding will be provided under a
senior unsecured guaranteed bridge loan (unrated) provided by
Deutsche Bank and Citigroup.  Aleris has initiated a tender
offer for its 10 3/8% senior secured notes due 2010 and its 9%
senior notes due 2014 and is seeking consent to a number of
modifications to restrictive covenants, events of default, and
in the case of the 10 3/8% senior secured notes, the release of
security.

Moody's has confirmed the B2 rating on the 10 3/8% senior
secured notes and the B3 rating on the 9% senior unsecured
notes.  The ratings for the proposed financings assume that the
tender offer will be successful, the desired consents obtained
and that the acquisition and associated financing transactions
will close as contemplated.  At such time, Moody's ratings for
Aleris' existing debt will be withdrawn.  The ratings outlook is
negative.

This concludes the review for possible downgrade, initiated on
March 17, 2006, following Aleris' announcement that it had
entered into a non-binding letter of intent to acquire the
downstream aluminum rolled products and extrusion businesses of
Corus for EUR700 million, or approximately US$840 million.  The
ratings on the proposed facilities assume that they will close
on the terms and in the amounts indicated.

Key favorable factors reflected in Aleris's ratings include:

    1) increased diversity and size following the acquisition
       of certain aluminum rolling assets from Corus, including
       a portfolio of higher value-added end use markets,

    2) an improving cost position, and

    3) robust demand trends expected to continue in many of
       the company's end markets into 2007.

Key rating considerations offsetting these stronger business
attributes however include:

    1) the significant increase in leverage following the
       transaction, with pro forma outstanding debt of
       approximately US$1.6 billion,

    2) the relatively thin margin nature of the business and
       sensitivity to volume levels,

    3) the company's propensity towards acquisitions, which
       Moody's believes will be a continuing impetus for
       growth over the intermediate term, and

    4) integration risk associated with this predominately
       European acquisition.

The negative outlook reflects Moody's view that the degree of
leverage (pro-forma LTM March 31, 2006 debt/EBITDA of 4.6x -
using Moody's standard adjustments for debt) being incurred in
conjunction with the acquisition is high for a business whose
performance is subject to cyclicality and which continues to
have a relatively high degree of exposure to more commodity
based products and end market use.  Although the ratings reflect
the increased diversity/size and broader end use market profile
following the acquisition of certain assets from Corus, Moody's
anticipates that leverage and debt coverage metrics will remain
weak within the current rating category over the near term.

Given the current favorable operating environment for aluminum
fabricators, and ability to generate free cash flow, the
application of cash flow generated during this highpoint of the
cycle to meaningful debt reduction in a timely fashion would be
viewed favorably.  To the degree that margins and volumes track
at current levels, and the company uses free cash flow to reduce
debt incurred, Moody's would expect to the company's metrics to
become more solidly positioned in the B1 rating category.

The outlook could experience upward pressure if the company is
able to:

    1) maintain and improve volume levels,

    2) maintain gross margins per pound in the US$0.18 range,

    3) improve its EBIT to interest coverage ratio to greater
       than 2.5x on a sustainable basis,

    4) generate free cash flow to debt above 6%, and

    5) reduce debt to EBITDA substantially below 4.0x.

Downward rating pressure would exist should the company continue
to make debt-financed acquisitions, experience volume and margin
declines or have free cash flow to debt less than 2.5%.

Moody's assigned a Ba3 rating to Aleris' US$400 million 7 year
term loan secured by domestic plant and equipment as well as a
second lien on the receivables and inventory securing a US$750
million asset backed revolver and guaranteed by the domestic
subsidiaries.  Moody's also assigned a Ba3 rating to Aleris
Deutschland Holding GmbH's EUR200 million 7-year term loan
secured by foreign plant and equipment.  This term loan is
guaranteed by Aleris International as well as its domestic
subsidiaries and the subsidiaries of Aleris Deutschland, and
also has a second lien on the receivables and inventory securing
the ABL.  The term loans will be cross-collateralized.

The rating reflects the good coverage associated with the
security package on a primary and secondary position.  While the
term loans are not at parity in the overall capital structure,
in that the term loan to Aleris International does not benefit
from guarantees from the foreign subsidiaries, Moody's has
equalized the rating on the term loans reflective of the low
leverage at the European level and the excess collateral
available.  At the outset of the financing secured debt will be
approximately 67% of the total debt in the capital structure,
which Moody's expects will decrease modestly over the next
twelve months as the company pays down its outstanding revolver
balance.

Moody's does not expect the company will need to borrow
additional funds from the secured revolver, unless used to help
finance further acquisitions or substantive capital
expenditures.  The bridge loan (unrated), which is unsecured,
has the same guaranty structure as the domestic term loan.
Moody's previous rating action on Aleris was on March 17, 2006
when the company's ratings were put under review for possible
downgrade.

These ratings were confirmed:

   -- Corporate Family Rating: B1;

   -- US$210 million senior secured notes, 10.375% due
      2010: B2; and

   -- US$125 million senior unsecured notes, 9.0% due
      2014: B3.

These ratings were assigned:

   Aleris International Inc.

      -- US$400 million senior secured guaranteed term loan
         due 2013: Ba3; and

   Aleris Deutschland Holding GmbH

      -- EUR200 million senior secured guaranteed term loan
         due 2013: Ba3.

Aleris, headquartered in Beachwood, Ohio, had revenues of US$2.4
billion in 2005.  LTM March 31, 2006 pro-forma revenues for the
acquisitions made by Aleris in late 2005 and for the acquisition
of select assets of Corus were US$4.7 billion.


BANCO DO BRASIL: Helps Retail Groups Provide Consumer Loans
-----------------------------------------------------------
Banco do Brasil, a Brazilian federal bank, partners with
Confederacao Nacional de Dirigentes Lojistas or CNDL, the
national retail managers' confederation, and Associacao de
Lojistas de Shopping or Alshop, the shopping center retailers'
association, to provide loans to consumers, Business News
Americas reports.

According to Gazeta Mercantil, launching a private label credit
card may be included in Banco do Brasil's programs with CNDL for
small and medium-sized enterprises or SMEs.

With Banco do Brasil's partnership with CNDL and Alshop, SMEs
linked with thwe retail groups will enjoy interest rates of 1.18
to 1.65%, lower than the 1.89% in standard consumer credits,
Gazeta Mercantil says.

According to BNamericas, the bank said in a statement that CNDL
and Alshop may recommend other financial services offered by
Banco do Brasil.

According to BNamericas, many of the Brazilian banks have
entered into this kind of arrangement with retailers even in the
past years. Recent agreements include:

   -- Banco do Brasil and Lojas Maia,
   -- Banco Bradesco and Gbarbosa, and
   -- Banco Itau with Lojas Americanas.

                        *    *    *

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


BANCO NACIONAL: Provides BRL45MM Financing to Cia. De Navegacao
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a financing of BRL45 million to Companhia de Navegacao
da Amazonia or CNA.  The loan aims at modernizing the company's
fleet, upon the construction of two tugboats, with a potency of
1,200 hp, and 14 double-hull rafts, to transport petroleum and
byproducts.

In addition to the 16 vessels considered in BNDES' loan, CNA
intends to construct an additional tugboat and four double-hull
rafts, using its own funds and increasing the investment to
BRL51 million.

The construction will be made at three shipyards located in
Amazonia. The operation of the two new tugboats will open 20
jobs at CNA and another 200 direct jobs at the shipyards of Rio
Amazonas and F. Barbosa, in Manaus, and Rio Maguari, in Belem.

Companhia de Navegacao da Amazonia is a company held by the
Libra Group, engaged in different segments of maritime and
fluvial navigation, besides operating in port terminals, cargo
storage and tugging services.

For over 60 years CNA has been operating fluvial bulk transport
of liquids and cargoes in general, at the North Region.  One of
the main activities of the company is to transport from the City
of Coari to Manaus refinery the petroleum extracted in Urucu,
and distributing to Amazonia inland the byproducts refined in
the capital of the State of Amazonas.

                        *    *    *

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


BANCO NACIONAL: Grants BRL40.9-Million Loan to MRC Rental
-----------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a financing of BRL40.947 million for MRC Rental
Servicos Ferroviarios Ltda, a company of Mitsui group, for the
purchase of 249 new wagons of closed Hopper type, which will be
used for the transportation of soy grains to the States of
Parana, Santa Catarina and Rio de Grnde do Sul, under America
Latina Logistica.

The wagons that will be acquired by MRC will be rented to
Imcopa, Importacao, Exportacao e Industria de Oleos Ltda, for 11
years.  Imcopa will sublease the wagons to America Latina in
order to transport its production grains and to reduce risks by
using the railway instead of the roadway as transportation
means.  The company, one of the main soy exporters, has
approximately 40% of its soy, bran and corn production carried
by America Latina.

The arrangement has an estimated investment of BRL51.184
million, of which 20% (BRL10.236 million) will come from MRC
Rrental's own resources.  Unibanco will transfer the remaining
80% financed by BNDES.

In support of the project, BNDES boosts the partnership
formation between concessionaires and their clients, with
business risk division, besides strengthening the railway
material industry in the country.  The operation will also
promote a reduction of logistic cost related to grain
transportation and contribute to the existing infrastructure
improvement.

The Brazilian export growth has expanded the need of logistic
infrastructure, specially the ones linked to roadway
investments.  The expansion of cargo movement by railways
depends not only on investments in permanent roads, but also on
the increase of the wagon and locomotive number.  The demand for
rolling stock is the major urgency of the railway modal.

America Latina Logistica is the main logistic company of the
Southern region and holds the concession of the local railway
system.

                        *    *    *

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


PETROLEO BRASILEIRO: Petroquisa Joins Citepe in Yarn Production
---------------------------------------------------------------
Petrobras Quimica S.A. aka Petroquisa, a subsidiary of Petroleo
Brasileiro S.A., will join Citepe in producing Continuous,
Partially Oriented Polyester Yarn or POY, a basic raw material
to manufacture polyester thread for the textile industry.

The investment is estimated at US$320 million and production is
expected to begin at the end of 2008.

Citepe's shareholding composition will be formed by Petroquisa
with 40% of the joint stock and Companhia Integrada Textil do
Nordeste or Citene, with 60% of the stock.

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.

                        *    *    *

Fitch Ratings 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+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with 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.


VARIG: Brazilian Court Approves Volo's US$500-Million Bid
---------------------------------------------------------
Brazilian bankruptcy judges late Monday accepted a
US$500-million bid for Brazil's flagship airline Viacao Aerea
Rio-Grandense SA, or Varig, and will put the proposal to
creditors at a meeting July 17.

After seven hours of deliberations, judges at a Rio de Janeiro
bankruptcy court voted to accept the bid from Volo do Brasil,
the investment group that recently purchased Varig's cargo unit,
VarigLog, after alterations were made to the offer.

If the creditors accept the bid, the company will then be put up
for auction to allow other interested parties the right to take
over the company.

Bidders have to deposit BRL52.8 million (US$24 million) to take
part at the auction.  The buyers will also be obliged to issue
BRL100 million in 10-year debentures to pay off debts.

Varig has been in financial trouble for a number of years amid
mounting debts, which now total around BRL8 billion.

The airline is having trouble paying for landing and departure
fees and fuel for its jets.  Meanwhile, more than two-thirds of
its planes are grounded as leasing companies demand their craft
back and the company can't pay for basic maintenance.

On Friday, the court-appointed restructuring administrator,
Deloitte Touche Tohmatsu, declared that liquidation would be a
better option for creditors than accepting the only offer for
the ailing carrier.

However, modifications to the offer, presented Monday, had led
to "a considerable improvement," Deloitte director Luiz Alberto
Fiore told the Estado newswire.

Volo do Brasil continues to make deposits with Varig to ensure
it continues operating until a final decision has been made on
the future of the company.

Up to Friday, Volo had deposited US$11 million to pay fuel and
airport expenses, among others.

                         About VARIG

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

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

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




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


CORBEL INVESTMENTS: Proofs of Claim Filing Is Until Aug. 25
-----------------------------------------------------------
Corbel Investments Inc.'s creditors are required to submit
proofs of claim by Aug. 25, 2006, to the company's liquidator:

   MIL (Cayman) Limited
   Strathvale House, North Church Street
   P.O. Box 513 GT, George Town
   Grand Cayman, Cayman Islands

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

Corbel Investments' 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.

Parties-in-interest may contact:

    Kareen Watler
    Yvonne Hines
    Strathvale House, North Church Street
    P.O. Box 513GT, George Town
    Grand Cayman, Cayman Islands
    Tel: (345) 949-9898
    Fax: (345) 949-7959


INVESTCORP SKS: Last Day to File Proofs of Claim Is on Aug. 18
--------------------------------------------------------------
Investcorp SKS Holdings Limited's creditors are required to
submit proofs of claim by Aug. 18, 2006, to the company's
liquidator:

   Westport Services Ltd.
   P.O. Box 1111
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 18 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Investcorp SKS' 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.

Parties-in-interest may contact:

    Bonnie Willkom
    P.O. Box 1111
    Grand Cayman, Cayman Islands
    Tel: (345) 949-5122
    Fax: (345) 949-7920


MPC COMMODITY: Final Shareholders Meeting on Aug. 30
----------------------------------------------------
MPC Commodity (General Partner) Inc.'s final shareholders
meeting will be at 10:00 a.m. on Aug. 30, 2006, at:

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

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


PROMO SPORTCAR: Creditors Required to Submit Claims by Sept. 13
---------------------------------------------------------------
Promo Sportcar Corp.'s creditors are required to submit proofs
of claim by Sept. 13, 2006, to the company's liquidator:

   Paolo Giacomelli
   MBT Trustees Ltd.
   P.O. Box 30622 S.M.B.
   Grand Cayman, Cayman Islands
   Tel: 945-8859
   Fax: 949-9793/4

Creditors who are not able to comply with the Sept. 13 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Promo Sportcar'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.


REAL CLOTHES: Creditors Must File Proofs of Claim by Aug. 18
------------------------------------------------------------
Real Clothes Holdings Limited's creditors are required to submit
proofs of claim by Aug. 18, 2006, to the company's liquidator:

   Westport Services Ltd.
   P.O. Box 1111
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 18 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Real Clothes' 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.

Parties-in-interest may contact:

    Bonnie Willkom
    P.O. Box 1111
    Grand Cayman, Cayman Islands
    Tel: (345) 949-5122
    Fax: (345) 949-7920


SAKS CORPORATE: Creditors Have Until Aug. 18 to Present Claims
--------------------------------------------------------------
Saks Corporate Holdings Ltd.'s creditors are required to submit
proofs of claim by Aug. 18, 2006, to the company's liquidator:

   Westport Services Ltd.
   P.O. Box 1111
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 18 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Saks Corporate'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.

Parties-in-interest may contact:

    Bonnie Willkom
    P.O. Box 1111
    Grand Cayman, Cayman Islands
    Tel: (345) 949-5122
    Fax: (345) 949-7920


SAKS FIFTH: Deadline for Proofs of Claim Filing Is on Aug. 18
-------------------------------------------------------------
Saks Fifth Avenue Equity Limited's creditors are required to
submit proofs of claim by Aug. 18, 2006, to the company's
liquidator:

   Westport Services Ltd.
   P.O. Box 1111
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 18 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Saks Fifth'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.

Parties-in-interest may contact:

    Bonnie Willkom
    P.O. Box 1111
    Grand Cayman, Cayman Islands
    Tel: (345) 949-5122
    Fax: (345) 949-7920


SFA INVESTMENTS: Filing of Proofs of Claim Is Until Aug. 18
-----------------------------------------------------------
SFA Investments Limited's creditors are required to submit
proofs of claim by Aug. 18, 2006, to the company's liquidator:

   Westport Services Ltd.
   P.O. Box 1111
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 18 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

SFA Investments' 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.

Parties-in-interest may contact:

    Bonnie Willkom
    P.O. Box 1111
    Grand Cayman, Cayman Islands
    Tel: (345) 949-5122
    Fax: (345) 949-7920


SUN CAPITAL: Will Hold Final Shareholders Meeting on Aug. 14
------------------------------------------------------------
Sun Capital Investment Ltd.'s final shareholders meeting will be
at 9:00 a.m. on Aug. 14, 2006, at:

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

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

   Bernard McGrath
   David Walker
   Caledonian House
   P.O. Box 1043, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 949-0050
   Fax: (345) 949-8062


WORKS HOLDINGS: Proofs of Claim Filing Deadline Is on Aug. 18
-------------------------------------------------------------
Works Holdings Limited's creditors are required to submit proofs
of claim by Aug. 18, 2006, to the company's liquidator:

   Westport Services Ltd.
   P.O. Box 1111
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 18 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Works Holdings' 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.

Parties-in-interest may contact:

    Bonnie Willkom
    P.O. Box 1111
    Grand Cayman, Cayman Islands
    Tel: (345) 949-5122
    Fax: (345) 949-7920




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


LORAL SPACE: Unit to Provide Satellite Services to Entel Chile
--------------------------------------------------------------
Loral Skynet do Brasil, a subsidiary of Loral Space &
Communications, signed a contract with Chile's Empresa Nacional
de Telecomunicaciones S.A. aka Entel, to provide nationwide
fixed satellite communications services aboard Loral Skynet's
Estrela do Sul 1/Telstar 14 satellite.

"We are very happy to be selected by Entel to provide essential
satellite-based telecommunications services," said Patrick
Brant, president of Loral Skynet.  "Entel joins many other Latin
American telecommunications service providers and major
international corporations on the Estrela do Sul 1/Telstar 14
satellite, which encompasses the entire Southern Cone of Latin
America and reaches to portions of Antarctica."

Entel will lease one full Ku-band transponder, which will
provide comprehensive coverage throughout Chile.  Entel awarded
the contract as part of an open and competitive RFP process.

"This agreement with Loral Skynet-Brazil enables Entel to
provide high quality satellite-based telecommunications services
throughout Chile, even our country's most remote and difficult-
to-reach areas," said Ricardo Buchi, CEO of Entel.  "Loral
Skynet's robust satellite coverage, its engineering team and
customer service capabilities were key deciding factors in the
competitive evaluation."

Strategically located at 63 degrees West longitude, the Estrela
do Sul 1/Telstar 14 satellite reaches all parts of the 1,800-
mile-long South American nation, including the city of Arica in
the far north, the previously hard-to- reach cities of Puerto
Montt and Coihaique, and Punta Arenas in the south, which is one
of the southernmost cities in the world.

Entel plans to use the satellite capability to provide video
distribution, Internet access and data transmission services to
broadcasters, financial institutions and businesses throughout
the country.

Additional Loral Skynet satellite assets available to the South
American region enable the company to offer coverage options in
both C- and Ku-band.

                     About Entel Chile

Headquartered in Santiago, Chile, Empresa Nacional de
Telecomunicaciones S.A. -- http://www.entel.cl./-- is the
largest listed telecommunication company in Chile, providing
mobile, data, Internet, local telephony, long distance and
integration services.  The company also has operations in Peru.

                     About Loral Skynet

Loral Skynet -- http://www.loralskynet.com/-- delivers service
quality and range of satellite and global network service
solutions that have made it an industry leader for more than 40
years.  Through the broad coverage of the Telstar satellite
fleet, in combination with its global fiber network
infrastructure, Skynet meets the needs of companies around the
world for broadcast and data network services, Internet access,
IP and systems integration.

                     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.




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


MILLICOM INTERNATIONAL: Vies for Strategic Partnership with Ola
---------------------------------------------------------------
Millicom International Cellular SA is vying to be a strategic
partner of Ola, a Colombian mobile operator, Reuters reports.

According to Reuters, the two other candidates are:

      -- Digicel Limited, and
      -- Entel PCS.

Ola will name its partner on Aug. 3, Reuters says.

Business News Americas relates that the three firms received an
invitation from local municipal telcos Empresa de Telefono de
Bogota and Empresas Publicas de Medellin, the owners of Ola, to
participate in the second stage of the process.  ETB and EPM had
rejected three non-binding offers received from the companies in
the first stage.

BNamericas noted that ETB and EPM aim to find a partner that
will provide an injection of capital.  Ola's infrastructure
expansion in 2005 had been costly and depleted the company's
cash.

ETB and EPM also want to surrender the control of Ola to the
winning bidder, BNamericas states.

Millicom International Cellular S.A. -- http://www.millicom.com/
-- is a global telecommunications investor with cellular
operations in Asia, Latin America and Africa.  It currently has
cellular operations and licenses in 16 countries.  The Group's
cellular operations have a combined population under license of
approximately 391 million people.

The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras.  The population under
license in Central America at December 2005 is 26.4 million.
The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay.  The population under license in South
America at December 2005 is 15.2 million.

                        *    *    *

Millicom International's 10% senior notes due 2013 carry Moody's
B3 rating and Standard & Poor's B- rating.

                        *    *    *

Standard & Poor's Ratings Services affirmed on July 4, 2006, its
'B+' long-term corporate credit and 'B-' senior unsecured debt
ratings on Millicom International Cellular S.A.  The ratings
were removed from CreditWatch with developing implications,
where they had been placed on Jan. 20, 2006, on the initiation
of a strategic review that could have led to a transaction such
as the sale of all or part of the company.  The outlook is
stable.




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


* COSTA RICA: Lawmaker Wants Concessionaire to Do Railway Works
---------------------------------------------------------------
Mario Nunez Arias, a Puntarenas lawmaker, told A.M. Costa Rica
that he plans to introduce a bill that would allow Instituto
Costarricense de Ferrocarriles, Costa Rica's national railway
firm, to let a concessionaire continue its work.

A.M. Costa Rica reports that Mr. Nunez said he would propose to
have the Instituto Costarricense sell all its activities, except
its property.  Earnings from the sale will be used as "front
money" for a concessionaire that can build up a real railroad
with new branch lines.

According to A.M. Costa Rica, Mr. Arias said that he foresees a
passenger train crossing Costa Rica from Penas Blancas to Paso
Canoas.

However, Mr. Arias first wants the restoration of service from
San Jose to Puntarenas, A.M. Costa Rica relates.

A.M. Costa Rica notes that works had been done on the lines from
the southeast near Sixaola to San Jose and to Provincia de
Puntarenas.  The lines between San Jose and Siquirres, however,
are damaged and unused.

Mr. Arias admitted to A.M. Costa Rica that Puntarenas is largely
poor and underdeveloped.  There is little work, he said.

Puntarenas would benefit from the rail line, Mr. Arias told A.M.
Costa Rica.

                        *    *    *

Costa Rica is rated by Moody's:

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

Fitch assigned these ratings to Costa Rica:

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

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

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




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


* CUBA: Inks Exchange & Collaboration Pact with Antigua
-------------------------------------------------------
Abel Prieto, the culture minister of Cuba, entered into an
exchange and collaboration agreement with Eleston Admas, a
representative of Antigua and Barbuda, in Santiago, Cuba, Prensa
Latina reports.

According to Prensa Latina, the accord, which will run for five
years, is aimed at fostering bilateral ties of friendship and
solidarity.  It includes, among other things:

    -- exchange of trade,
    -- displays between the two islands' institutions, and
    -- publication of magazines, catalogs and other visual arts
       materials.

                        *    *    *

Moody's assigned these ratings on Cuba:

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


* CUBA: US Congressman Urges Energy Joint Ventures with Country
---------------------------------------------------------------
Solomon Ortiz -- a Democratic Congressman for Texas, USA -- has
called for energy joint ventures between Cuban and US firms,
encouraging the cancellation of the ban the US imposed on Cuba,
Xinhua News Agency reports.

Congressman Ortiz told Xinhua, "We are very limited in the areas
where we can work together, but if the embargo is lifted, many
states would negotiate not only agriculture deals, but also in
energy and fuels."

Cuban officials have stated in the past that they would be
willing to work with US firms to explore for energy resources in
the waters of the Gulf of Mexico, Xinhua relates.

Congressman Ortiz has been in Cuba since Wednesday, Xinhua
states.

                        *    *    *

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: Former Head's Lawyers Release Evidence
--------------------------------------------------------------
The lawyers of Ramon Baez Figueroa, the former president of
Banco released to the press a certification dated July 6 that
confirmed that in the files of the First Collegiate Court there
was no notification to their client on the order of the material
evidence presented by the Dominican Central Bank and the Banks
Superintendence, Dominican Today reports.

Mr. Figueroa is represented by:

      -- Marino Vinicio Castillo (Vincho),
      -- Juarez Castillo, and
      -- Vinicio Castillo.

The fraud trial against Mr. Figueroa, three of Baninter's
executives and an adviser continued on Monday at 2:00 p.m.

Jose Lois Malkun, the former governor of the Central Bank, had
said in the National District court on Friday that when the
monetary authorities decided to intervene the Baninter bank, the
Dominican banking system was totally in upheaval, was made a
disaster, Dominican Today relates.

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.  The bankruptcy of Baninter was
considered the largest in world history, in relation to the
Dominican Republic's Gross Domestic Product.  It cost Dominican
taxpayers DOP55 billion and resulted to the country's worst
economic crisis.


BANCO INTERCONTINENTAL: Jose Malkun Expects to Testify in Court
---------------------------------------------------------------
Jose Lois Malkun, the Dominican Central Bank's former governor,
is waiting for the subpoena that would demand his presence in
court to respond to the accusation made by Ramon Baez Figueroa,
the former president of Banco Intercontinental SA (Baninter),
against him, Dominican Today reports.

Mr. Malkun told Dominican Today, "Right now I don't have
anything to say.  I still have not received any subpoena, I
simply wait and for now, the necessary explanations will be
made."

As reported in the Troubled Company Reporter-Latin America on
July 11, 2006, Mr. Figueroa filed charges against Mr. Malkun
before Jose Manuel Hernandez -- the National District prosecutor
-- on Friday.  In his suit, Mr. Figueroa alleged that Mr. Malkun
violated the Monetary and Financial Law 183-02 of the Dominican
Republic when the latter transferred more than DOP40 billion
from Baninter under his safekeeping without complying with the
due process.  Mr. Figueroa's lawyers said that the charges
involve legal serious consequences with the blatant violation of
the Monetary and Financial Law by Mr. Malkun when the latter
ordered paying all deposits in Baninter and the Baninter Trust,
in excess of the DOP500,000 limit that the law has established.
Mr. Figueroa said that he decided to press charges as a citizen
and because -- in addition to the quasi-fiscal deficit of DOP55
billon -- he is being pointed as the one that caused the
Baninter conflict.  Prosecutor Hernandez had said after
receiving the document from Mr. Figueroa that as soon as he
studies it he will assign a team of Assistant DAs to conduct the
investigation.  Mr. Figueroa said upon leaving the prosecutor's
office that Hipolito Mejia, the former president of the
Dominican Republic, must be included in the process, alleging
that Mr. Mejia was the cause of Baninter's bankruptcy.  He said
that there were many media outlets that interested the former
president for his re-election.   Mr. Figueroa is represented by:

      -- Marino Vinicio Castillo (Vincho),
      -- Juarez Castillo, and
      -- Vinicio Castillo.

Mr. Figueroa is accused of embezzling more than DOP50 billion
from Baninter, Dominican Today relates.

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.  The bankruptcy of Baninter was
considered the largest in world history, in relation to the
Dominican Republic's Gross Domestic Product.  It cost Dominican
taxpayers DOP55 billion and resulted to the country's worst
economic crisis.




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


* ECUADOR: Liquid International Reserves Down to US$2.232B
----------------------------------------------------------
Ecuador's Central Bank indicated on Monday in its weekly
statistics that the country's liquid international reserves were
down 1% to US$2.232 billion as of July 7.

Ecuador started using the US dollar currency in 2000.

The report emphasizes that the Central Bank said Ecuador's
liquid international reserves a week earlier stood at US$2.264
billion.

The country's reserves are mainly used to pay for its foreign
debt, Dow Jones states.

The report says that no further details were obtained from
Central Bank.

The latest liquid international reserves increased 25% from
US$1.788 billion registered for July 2005, according to Dow
Jones.

                        *    *    *

Fitch 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
=================


BANCO INDUSTRIAL: Central Bank Okays Merger with Occidente
----------------------------------------------------------
An official from Banguat, the central bank of Guatemala, told
Business News Americas that the bank granted approval on Banco
Industrial SA's merger with Banco de Occidente.

As required by the Guatemalan law, a merger between banks has to
receive definitive approval from Banguat's monetary board and
preliminary approval from Superintendencia de Bancos de
Guatemala, the banking regulator.

BNamericas notes that no documents regarding Banguat's approval
of the merger were posted on the Web sites of the central bank
and SIB.

Banguat's monetary board will disclose to the public the merger
authorization later this week, BNamericas relates, citing the
official.

Sources within the banking sector told BNamericas that Banco
Industrial and Occidente both know of the central bank's
decision.

BNamericas states that the merger will increase Banco
Industrial's asset market share to 26%.

The monetary board had authorized on March 9 Banco Industrial's
acquisition of Occidente's 2,151,114 shares or 72% for US$136
million, Banguat told BNamericas.

                        *    *    *

On March 20, 2006, Moody's Ratings Services affirmed Banco
Industrial S.A.'s 'D' bank financial strength rating.

Moody's also affirmed Industrial's 'Baa2' and Prime-3 long and
short term global local currency deposit ratings, respectively,
and its 'Ba3' and Not Prime long and short term foreign currency
deposit ratings.  All the ratings have stable outlooks.




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


* HAITI: Emigrants to Ask President Flexible Investment Terms
-------------------------------------------------------------
About 200 members of Haiti's four million emigrants have said
that they would attend the Diaspora Forum to ask President Rene
Preval for flexible investment terms, Prensa Latina reports.

The National Organization for Haitian Progress will also join
Diaspora organizations and support national development, Joseph
Baptiste, the group's leader, told Prensa Latina.

Prensa Latina notes that President Preval met with the Haitian
community in Quebec in May 2005 to explain what the group could
do to help the country.

Prensa Latina relates that President Preval, to lift his nation
out of poverty, has called on investors and emigrants for help
and to trust the government, saying that only stability can
improve the yearly US$1 billion remittances three times.

Economic growth, unemployment reduction and fair distribution of
national wealth is only possible through honest government and
investments, Prensa Latina says, citing President Preval.

                        *    *    *

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




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


DIGICEL LIMITED: Among Candidates to be Ola's Strategic Partner
---------------------------------------------------------------
Jamaica's Digicel Limited is considered to become a strategic
partner of Ola, a Colombian mobile operator, Reuters reports.

According to Reuters, the two other candidates are:

      -- Millicom International, and
      -- Entel PCS.

Ola will name its partner on Aug. 3, Reuters relates.

Business News Americas relates that the three firms received an
invitation from local municipal telcos Empresa de Telefono de
Bogota and Empresas Publicas de Medellin, the owners of Ola, to
participate in the second stage of the process.  ETB and EPM had
rejected three non-binding offers received from the companies in
the first stage.

BNamericas noted that ETB and EPM aim to find a partner that
will provide an injection of capital.  Ola's infrastructure
expansion in 2005 had been costly and had depleted the company's
cash.

ETB and EPM also want to surrender the control of Ola to the
winning bidder, BNamericas states.

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

                        *    *    *

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


KAISER ALUMINUM: Removal Deadline Expires on August 5
-----------------------------------------------------
Judge Judith K. Fitzgerald extended Kaiser Aluminum Corp. and
its debtor-affiliates' Removal Deadline to the later of 30
days:

    -- after the effective date of the Plan of Reorganization;
       and

    -- after the entry of an order terminating the automatic
       stay with respect to a particular action sought to be
       removed.

The Debtors' Second Amended Joint Plan of Reorganization became
effective July 6, 2006.  Accordingly, the Debtors' removal
deadline expires on August 5, 2006.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company, along with its Jamaican subsidiaries
-- Alpart Jamaica Inc. and Kaiser Jamaica Corporation -- filed
for chapter 11 protection on Feb. 12, 2002 (Bankr. Del. Case No.
02-10429), and has sold off a number of its commodity businesses
during course of its cases.  Corinne Ball, Esq., at Jones Day,
represents the Debtors in their restructuring efforts. Lazard
Freres & Co. serves as the Debtors' financial advisor.  Lisa G.
Beckerman, Esq., H. Rey Stroube, III, Esq., and Henry J. Kaim,
Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, and William P.
Bowden, Esq., at Ashby & Geddes represent the Debtors' Official
Committee of Unsecured Creditors.  The Debtors' Chapter 11 Plan
became effective on July 6, 2006.  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. 100; Bankruptcy Creditors'
Service, Inc., 609/392-0900)


KAISER ALUMINUM: Inks US$250 Million JPMorgan-Arranged Loan
-----------------------------------------------------------
Kaiser Aluminum Corp., Kaiser Aluminum Investments Company,
Kaiser Aluminum Fabricated Products, LLC, and Kaiser Aluminium
International, Inc., entered into a new Senior Secured Revolving
Credit Agreement with JPMorgan Chase Bank, N.A., as
administrative agent and lender, and other financial
institutions on July 6, 2006.

The Reorganized Debtors also entered into a Term Loan and
Guaranty Agreement with JPMorgan, as administrative agent and
lender, Wilmington Trust Company, as collateral agent, and other
financial institutions.

The Revolving Credit Agreement provides for US$200,000,000 in
revolving loans, swingline loans and protective advances,
including up to US$60,000,000 in letters of credit.

The Term Loan Facility provides for a US$50,000,000 delayed draw
term loan to Kaiser Aluminum Fabricated Products, LLC, as
borrower, which may be drawn in a single borrowing within the
first 30 days after the Effective Date.

Amounts owed under both credit facilities may be accelerated
upon the occurrence of various events of default set forth in
each agreement.

Both credit facilities place restrictions on the ability of the
company and certain of its subsidiaries to, among other things,
incur debt, create liens, make investments, pay dividends, sell
assets, undertake transactions with affiliates and enter into
unrelated lines of business.

Pursuant to KAC and its affiliates' Second Amended Joint Plan of
Reorganization, the Secured Super-Priority DIP Revolving Credit
and Guaranty Agreement was terminated on July 6, 2006.

                   Revolving Credit Facility

Under the Revolving Credit Facility, KAC is able to borrow from
time to time in an aggregate amount equal to the lesser of
US$200,000,000 and a borrowing base comprised of eligible
accounts receivable, eligible inventory and certain eligible
machinery, equipment and real estate, reduced by certain
reserves.

Lenders under the Revolver are:

     Lender                                 Commitment
     ------                                 ----------
     JPMorgan Chase Bank, N.A.           US$35,000,000
     The CIT Group/Business Credit, Inc.    35,000,000
     Bank of America                        30,000,000
     Wachovia Bank                          25,000,000
     Wells Fargo Foothill                   20,000,000
     GMAC                                   20,000,000
     Merrill Lynch Capital Corporation      20,000,000
     UBS                                    15,000,000

KAC may request the issuance of letters of credit on account of
a Borrower from JPMorgan, as issuing bank.

The Revolving Credit Facility has a five-year term and matures
on July 6, 2011, at which time all principal amounts outstanding
will be due and payable.

Borrowings under the Revolving Credit Facility bear interest at
a rate equal to either a base rate or LIBOR, at the company's
option, plus a specified variable percentage determined by
reference to the then remaining borrowing availability under the
Revolving Credit Facility.

Subject to certain conditions and the agreement of Lenders, the
Revolving Credit Facility may be increased to up to
US$275,000,000 at the request of the company.

The Revolving Credit Facility is secured by a first priority
lien on substantially all of the assets of the KAC and certain
of its domestic operating subsidiaries that are also borrowers
in the Revolving Credit Agreement.

J.P. Morgan Securities, Inc., serves as sole bookrunner and
co-lead arranger in the Revolving Credit Agreement together with
The CIT Group/Business Credit, Inc. as co-lead arranger and
co-syndication agent, Bank of America as co-syndication agent,
and Wachovia Bank and Wells Fargo Foothill served as
co-documentation agents.

A full-text copy of the Senior Secured Revolving Credit
Agreement is available for free at
http://researcharchives.com/t/s?d6e

                      Term Loan Facility

The Term Loan Facility matures on July 6, 2011, at which time
all principal amounts outstanding under the Facility will be due
and payable.

Borrowings under the Term Loan Facility bear interest at a rate
equal to either a base rate plus 2.50% or LIBOR plus 4.25%, at
the company's option.

The Term Loan Facility is secured by a second lien on
substantially all of the assets of KAFP, the company and its
other domestic operating subsidiaries that are guarantors.

J.P. Morgan Securities Inc. serves as lead arranger, sole
bookrunner and syndication agent, and The CIT Group/Business
Credit, Inc., served as co-arranger in the Term Loan and
Guaranty Agreement.

A full-text copy of the Term Loan and Guaranty Agreement is
available for free at http://researcharchives.com/t/s?d6f

                   About Kaiser Aluminum

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company, along with its Jamaican subsidiaries
-- Alpart Jamaica Inc. and Kaiser Jamaica Corporation -- filed
for chapter 11 protection on Feb. 12, 2002 (Bankr. Del. Case No.
02-10429), and has sold off a number of its commodity businesses
during course of its cases.  Corinne Ball, Esq., at Jones Day,
represents the Debtors in their restructuring efforts. Lazard
Freres & Co. serves as the Debtors' financial advisor.  Lisa G.
Beckerman, Esq., H. Rey Stroube, III, Esq., and Henry J. Kaim,
Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, and William P.
Bowden, Esq., at Ashby & Geddes represent the Debtors' Official
Committee of Unsecured Creditors.  The Debtors' Chapter 11 Plan
became effective on July 6, 2006.  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. 100; Bankruptcy Creditors'
Service, Inc., 609/392-0900)




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


GENERAL MOTORS: Merger May Affect Nissan's Ratings, Says Fitch
--------------------------------------------------------------
Fitch Ratings said that the ratings of Nissan Motor Co., Ltd.
(rated 'A-'/Stable/ 'F2') could be negatively influenced if the
proposal to include General Motors Corp. (rated 'B'/Watch
Negative) in the current Renault-Nissan alliance becomes a
reality.  This despite noted positive synergies from the
three-way association.

Regarding the proposal initiated by Tracinda Corp., a major
shareholder of General Motors, to form a new alliance by
including the company in the current Renault-Nissan alliance,
both Nissan and Renault S.A.'s (rated 'BBB+'/Stable) board of
directors have given approval to proceed with exploratory
discussions, if General Motors supports the proposal.  Whether
or not the deal proceeds is now largely dependent on a decision
by the company's management.

Given the necessity of shared strategic goals for all parties
involved in a successful alliance, as shown in the case of the
Renault-Nissan alliance so far, Fitch thinks the new alliance is
unlikely to go ahead without General Motors management's
favorable acceptance of the proposal.  The agency views that
there is a high possibility that the proposed new alliance, if
realized, will eventually result in equity investment and
managerial involvement in General Motors by Renault and Nissan
under the leadership of their CEO, Carlos Ghosn.

The major areas of benefit for the three companies springing
from the new alliance will be cost reductions through the
widening of joint procurement projects, sharing of research and
development achievements, having common platforms for vehicles,
and exchanging production facilities for the better usage of
their production capacities.  On the other hand, Fitch also
underscores the probability that there will be negative aspects
to the deal.  Apart from channeling financial investments into
General Motors, both Renault and Nissan may also have to give
additional financial support, if necessary.  As many of the
problems General Motors currently has are deeply rooted and
cannot be resolved in a short period of time, it is expected
that a considerable amount of Renault and Nissan's management
resources will be spent revitalizing General Motors' operations
for a long time, if they are involved in the company's
management.

Fitch views that Nissan currently has weaker sales than expected
as a result of its low level of new model introductions.  In
addition, Nissan has a lot to do to achieve its mid-term goals,
including successful and continuous new model introductions, and
research and development to prepare for keener competition,
especially against its stronger Japanese rivals.  Fitch believes
the new partnership may hinder the company's efforts to achieve
its management goals.


GRUPO IUSACELL: Inks Broadband Dev't Pact with Smith & UTStarcom
----------------------------------------------------------------
Grupo Iusacell has partnered with Smith Micro Software, Inc.
-- a software supplier -- and UTStarcom, a supplier of hardware,
to improve its wireless broadband platform for laptop users,
Smith Micro said in a statement.

Smith Micro said that it will supply QuickLink Mobile to
UTStarcom for distribution to Grupo Iusacell.

Smith Micro's QuickLink Mobile connection manager will provide
high-speed remote Internet access from a notebook PC used by
Grupo Iusacell's expanding wireless subscriber base.

QuickLink Mobile and the UTStarcom 5740 PC Card have been
integrated to run on the Grupo Iusacell wireless network --
offering their users the latest high-speed wireless data
connectivity.  As companies and government agencies throughout
Mexico increase their demand for wireless Internet access,
QuickLink Mobile will boost productivity by ensuring easy mobile
data connections to Grupo Iusacell's robust network.

"Partnering with UTStarcom is an important step in our ever-
expanding drive to deliver unparalleled mobile connectivity
solutions.  This highlights one of our strength and our core
competencies -- understanding the needs associated with
supporting both the device manufacturer and the wireless
carrier.  Our expertise within the international marketplace
allows us to implement very quickly the ideal connectivity
solution for Iusacell.  We are delighted to partner with
UTStarcom for this opportunity," said William W. Smith, Jr.,
President and Chief Executive Officer for Smith Micro.

James Daurio, the vice president of sales at UTStarcom Personal,
said, "The efficient design of QuickLink Mobile allowed us to
quickly integrate the software application with our high
performance EV-DO 5740 PC Card to meet the launch plans for our
customer.  And our growing relationship with the Smith Micro
team of engineers continues to help us reduce software
integration costs while meeting the accelerated product delivery
timelines from our customers."

"In our markets, the introduction of the new UTStarcom 5740 PC
Card and QuickLink Mobile will provide the competitive edge to
deliver the best wireless broadband experience, and increase our
subscriber base.  We are excited to offer this new product
combination.  It meets the needs of our mobile subscribers and
will help us achieve our data service goals," said Luis Lomeli,
the Broadband Wireless Access Product Manager at Grupo Iusacell.

                     About Smith Micro

Headquartered in Aliso Viejo, California, Smith Micro Software,
Inc. -- http://www.smithmicro.com/-- develops and markets
wireless communication, broadband and utility software products
for multiple OS platforms.  The company designs integrated cross
platform, easy-to-use software for personal and business
computing worldwide.  With a focus on wireless, broadband and
Internet technologies, the company's products and services
enable wireless communications, file and image compression,
digital image and music management, eCommerce, eBusiness,
Internet communications (voice-over-IP), video conferencing, and
traditional computer telephony.

                      About UTStarcom

Headquartered in Alameda, California, UTStarcom --
http://www.utstarcom.com/-- is a global leader in IP-based,
end-to-end networking solution and international support.  The
company sells its broadband, wireless and handset solutions to
operators and established telecommunications markets around the
world.  UTStarcom enables its deployment of revenue-generating
access services using existing infrastructure, while providing a
path to cost-efficient end-to-end IP networks.  Founded in 1991,
the company has research and design operations in the United
States, China, and Korea and is a FORTUNE 1000 company.

                    About Grupo Iusacell

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

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


MERIDIAN AUTOMOTIVE: BDO Seidman's Scope of Work Expanded
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
the expansion of BDO Seidman, LLP's scope of work as Meridian
Automotive Systems, Inc., and its debtor-affiliates' accountants
and auditors, nunc pro tunc to May 26, 2006.

As reported in the Troubled Company Reporter on June 14, 2006,
BDO's services will include an audit of the Debtors' opening
consolidated balance sheet as of June 30, 2006, or upon
emergence from Chapter 11, Robert S. Brady, Esq., at Young
Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, tells
the Court.

According to Mr. Brady, BDO does not anticipate that its fees
for performing the Supplemental Services will exceed US$150,000
to US$175,000.

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).




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


* NICARAGUA: Seeks US$30-Million Debt Pardon from Venezuela
-----------------------------------------------------------
Nicaragua has requested Venezuela to pardon a US$30-million debt
to continue with the Caracas Agreement and buy oil at
preferential prices, El Universal reports, citing Norman
Caldera, the foreign minister of Nicaragua.

Minister Caldera said that authorities in Venezuela argue that
they cannot reactivate the Caracas Agreement began by Enrique
Bolanos -- when he was the vice president of Ecuador -- in 2000,
as there is an outstanding amount of US$31 million.

However, Minister Caldera told reporters that Ali Rodriguez,
Venezuela's foreign minister, promised to accept the request for
debt pardon during a meeting in the context of the Organization
of American States regular session in the Dominican Republic.

"We had a private dialogue and the Venezuelan Foreign Minister
undertook to abandon the claim," Minister Caldera told El
Universal.

According to El Universal, the Nicaraguan minister is hopeful
that the dialogue could pave the way to a state-to-state deal on
Venezuelan oil exports to Nicaragua.

Minister Caldera did not provide further detail about the
meeting, El Universal relates.  However, he did mention
"rapport" on the matter.

President Bolanos, now the head of the Nicaraguan government, is
looking forward to having a positive outcome by the end of this
current year, El Universal states, citing Minister Caldera.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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




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


FINANCIERO CONTINENTAL: Will Buy Sabadel's Atlantico for US$96MM
----------------------------------------------------------------
Grupo Financiero Continental, a financial group in Panama, has
reached an agreement with Banco Sabadel, a Spanish banking
group, to buy 100% of Banco Atlantico Panama, the latter's
Panamanian unit, for US$96 million.

Banco Sabadel acquired Banco Atlantico in 2003.

The agreement is subject to mandatory regulatory approvals.
This transaction will generate a net capital gain of EUR31
million for Banco Sabadell.

Following the recent internally funded acquisition of Banco
Urquijo, this transaction is part of Banco Sabadell's ongoing
commitment to streamlining the capital base of the group as well
as focusing on all aspects of its core domestic business in
Spain.

Lehman Brothers and Bufete Roca Junyent Advocats have advised
banco Sabadell in this transaction.

                      About Banco Atlantico

Banco Atlantico Panama was founded in 1975 and is today a
medium-sized player in the Panamanian banking sector, being a
well-recognized and respected player in the country.  The bank's
main operation is corporate banking as well as traditional
retail banking.  The network has seven branches and
approximately 130 employees.  On Dec. 31, 2005, client loans
stood at EUR250 million and total assets reached EUR350 million.

                       About Banco Sabadel

Banco Sabadell -- http://www.bancsabadell.com/en/-- is Spain's
fourth largest banking group, which is comprised of different
banks, brands, subsidiaries and part-owned companies, covering
all areas of the financial business sector.

                 About Grupo Financiero Continental

Grupo Financiero Continental -- http://www.bcontinental.com/
-- is the holding company that owns 100% of Banco Continental.
Banco Continental is the third biggest bank in Panama and is one
of the growing universal banks in the Central American region.
The bank provides services in the following three banking areas:

      -- Corporate Banking (with more than 4,000 relationships),
      -- Private Banking (in 16 branches), and
      -- Consumer Banking (with key products such as mortgages,
         auto loans and credit cards).

                        *    *    *

As reported in the Troubled Company Reporter on May 10, 2006,
Fitch Ratings affirmed these ratings of Grupo Financiero
Continental:

   -- Long-term Issuer Default Rating: BBB-;
   -- Short-term: F3;
   -- Individual: C;
   -- Support: 5.

Fitch said the Outlook is Stable.




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


* PARAGUAY: Won't Join Southern Gas Pipeline Project
----------------------------------------------------
Paraguay did not sign an adhesion instrument to the southern gas
pipeline with Argentina, Brazil and Venezuela, contrary to
previous claims by Venezuela's foreign ministry, El Universal
says.

When asked why Paraguay refused to join the project, the Energy
and Petroleum Ministry Public Affairs Office would not provide
the reasons, El Universal continues.

Paraguay, according to El Universal, has been reluctant to enter
the project, saying it has other plans to lay pipelines linking
its country with Bolivia, its traditional gas supplier.

The proposed pipeline is estimated to cost US$20 billion and
will stretch for 8,000 km.  The countries involve did not
disclose how the initial layout will be changed to accommodate
Bolivia, El Universal says.

                        *    *    *

Moody's assigned these ratings on Paraguay:

     -- CC LT Foreign Bank Deposit, Caa2
     -- CC LT Foreign Curr Debt, Caa1
     -- CC ST Foreign Bank Deposit, NP
     -- CC ST Foreign Currency Debt, NP
     -- LC Currency Issuer Rating, Caa1
     -- FC Curr Issuer Rating, Caa1
     -- Local Currency LT Debt, WR

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

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




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


GLOBAL CROSSING: Head Says Free Trade Accords Good for Firms
------------------------------------------------------------
Jose Antonio Rios -- the international president for Global
Crossing Ltd. -- believes that free trade agreements or FTAs
benefit firms and consumers, the Panama Guide reports.

Mr. Rios told the Panama Guide, "Anytime there's a free trade
agreement, it increases multilateral business, it increases
employment and grows access to telecom, broadband and Internet,
which in turn helps develop countries.

Mr. Rios explained to the Panama Guide that FTAs bring more
deregulation, more competition and more players in the country,
which are good for the businesses.

"The market grows, there is greater economic incentive to get
into phone and IP services, which creates the need for companies
in the US that have subsidiaries in those countries and at the
same time, helps people in Latin America doing long-term, stable
business with the US and the rest of the world," Mr. Rios told
the Panama Guide.

In particular, Mr. Rios expects Global Crossing to benefit from
the FTAs with Colombia and Peru as well as the Central American
Free Trade Agreement or CAFTA, the Panama Guide relates.

The Panama Guide says that Colombia signed an FTA with the US in
February while Peru signed the agreement in April.  The CAFTA is
yet being gradually implemented in Central America.

Global Crossing is now eyeing the Colombian market for potential
business, the Panama Guide states.  It is also analyzing
investments in Ecuador.

"We are seriously considering how to land in those countries,"
Mr. Rios told the Panama Guide.

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

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




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


ADVANCE AUTO: Sees Lower Fiscal 2006 Second Quarter Sales
---------------------------------------------------------
Advance Auto Parts, Inc., provides updated financial guidance
for its fiscal second quarter, which ends July 15, 2006.

For the quarter, comparable-store sales are now expected to
increase approximately 1% to 2%, versus a 9% increase last year.
This compares to prior guidance of a 3% to 5% increase.  In
addition, both gross margin and SG&A rates are expected to be
less favorable than prior expectations.

"Our quarter-to-date results have been lower than we expected,"
said Mike Coppola, Chairman, President and CEO.  "In the
interest of timely communication, we felt it is important to
share this information with you now.  We believe that macro-
economic factors, including, higher energy prices, ever-higher
interest rates, and higher required credit card payments are
further reducing discretionary income for our lower- and middle-
income customers and has unfavorably impacted customer traffic.
Both do-it-yourself and do-it-for-me sales have been running
below expectations.  Our history shows that customers can defer
purchases of non-discretionary replacement parts only for a
limited period of time.  With our core customers pressured by
macro factors, we must provide customers more reasons than ever
to visit our stores.  We accept that challenge, and know that we
must drive additional traffic to our stores."

"As we focus on driving our sales, we also are working hard to
manage our expenses in-line with our current sales trend," said
Coppola.  "In addition, we are working on a number of expense-
reduction initiatives that will further reduce our expense
base."

Even if current sales trends persist, the Company continues to
expect growth in earnings per diluted share for 2006, compared
to 2005, albeit at a lower rate of growth than previously
expected.  The Company will provide a more-detailed update to
earnings guidance for fiscal 2006 on its regularly scheduled
August 10 conference call.

                      About Advance Auto

Headquartered in Roanoke, Va., Advance Auto Parts (NYSE: AAP)
-- http://www.advanceautoparts.com/-- is the second-largest
retailer of automotive aftermarket parts, accessories,
batteries, and maintenance items in the United States, based on
store count and sales.  As of April 22, 2006, the Company
operated 2,927 stores in 40 states, Puerto Rico, and the Virgin
Islands.  The Company serves both the do-it-yourself and
professional installer markets.

                        *    *    *

As reported in the Troubled Company Reporter on June 9, 2006,
Standard & Poor's Ratings Services revised the outlook for
Advance Auto Parts Inc. to positive from stable and affirmed its
'BB+' corporate credit and senior secured debt ratings.

As reported in the Troubled Company Reporter on Oct. 31, 2005,
Moody's Investors Service upgraded the corporate family and
secured bank facility ratings of Advance Auto Parts, Inc. to Ba1
from Ba2, assigned a positive outlook to the long term ratings,
and affirmed Advance Auto Parts' Speculative Grade Liquidity
Rating of SGL-1.


GLOBAL HOME: Sells WearEver Cookware Business to Lifetime Brands
----------------------------------------------------------------
Lifetime Brands, Inc., signed an agreement to acquire certain
assets comprising the WearEver cookware and bakeware businesses
of Global Home Products LLC.

"This agreement provides an opportunity for Lifetime Brands
significantly to expand its cookware business and to augment its
bakeware business," said Jeffrey Siegel, Chairman, President and
Chief Executive Officer of Lifetime Brands.  "The combination of
WearEver's established and respected brands and Lifetime's
superior design capabilities, sourcing expertise and
complementary customer base will create an excellent platform
for growth.  In addition, Lifetime's strong financial position
will enable us to improve WearEver's operations, product
deliveries and vendor relationships."

Global and certain of its affiliates, including certain of the
companies that make up the WearEver business, filed for
bankruptcy protection in April 2006.  The agreement provides
that Lifetime will purchase the assets pursuant to Section 363
of the United States Bankruptcy Code.  The transaction is
subject to a number of conditions, including completion of an
auction process and bankruptcy court approval.

                      About Lifetime Brands

Headquartered in Westbury, New York, Lifetime Brands, Inc.
(Nasdaq: LCUT) designs, markets and distributes kitchenware,
cutlery & cutting boards, bakeware & cookware, pantryware &
spices, tabletop, home decor, picture frames and bath
accessories, marketing its products under various trade names,
including Farberware(R), KitchenAid(R), Pfaltzgraff(R), Calvin
Klein(R), Cuisinart(R), Hoffritz(R), Sabatier(R), Nautica(R),
Joseph Abboud Environments(R), Roshco(R), Baker's Advantage(R),
Kamenstein(R), CasaModa(TM), :USE(R), Pedrini(R), International
Silver(R), Towle(R), Tuttle(R), Wallace(R), Melannco(R),
Rochard(R) and Kenneth Cole Reaction(R).

                      About Global Home

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


MAXXAM INC: CFO John Karnes Resigns from Post
---------------------------------------------
John H. Karnes, MAXXAM Inc.'s Executive Vice President and Chief
Financial Officer, resigned from the Company on July 7, 2006.
Mr. Karnes indicated that the sole reason for his resignation
was in order to return to the oil and gas industry.

The Company has named M. Emily Madison, its Vice President,
Finance, to the additional position of Acting Chief Financial
Officer.

Headquartered in Houston, Texas, MAXXAM Inc. (AMEX: MXM)
operates businesses ranging from aluminum and timber products to
real estate and horse racing.  MAXXAM's top revenue source is
Kaiser Aluminum, which has been in Chapter 11 bankruptcy since
2002.  MAXXAM's timber subsidiary, Pacific Lumber, owns about
205,000 acres of old-growth redwood and Douglas fir timberlands
in Humboldt County, California.  MAXXAM's real estate interests
include commercial and residential properties in Arizona,
California, Texas, and Puerto Rico.  The Company also owns the
Sam Houston Race Park, a horseracing track near Houston.
Chairman and CEO Charles Hurwitz controls 77% of MAXXAM.

                        *     *     *

Maxxam's balance sheet at March 31, 2006 showed a US$671.3
million total stockholders' deficit resulting from US$1,013.1
million in total assets and US$1,684.4 million in total
liabilities.




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


MIRANT CORP: Mitsui Settlement Deal Junks US$3-Million Claim
------------------------------------------------------------
Reorganized Mirant Corp. and its reorganized debtor-affiliates
ask the U.S. Bankruptcy Court for the Northern District of Texas
to approve a settlement agreement between Mitsui & Co. (U.S.A.),
Inc., and Mirant and its affiliated companies, including Mirant
Americas, Inc., Mirant Bowline, L.L.C., and Mirant Wyandotte,
L.L.C.

The Settlement Agreement resolves the parties' dispute over
alleged breach of contract by the Mirant Debtors under two
prepetition supply agreements -- the Bowline Agreement and the
Wyandotte Agreement.  In addition, pursuant to the Agreements,
Mitsui provided the Mirant Debtors with certain letters of
credit.

Michelle C. Campbell, Esq., at White & Case LLP, in Miami,
Florida, relates that the dispute arose when the Mirant Debtors:

    * canceled their projects under the Bowline Agreement and
      the Wyandotte Agreement; and

    * elected not to take delivery of Mitsui's equipment,
      material and services provided under the Agreements.

The undelivered equipment, material and services total to
US$1,900,000.

As a result, Mitsui filed Claim No. 0000003094 for US$3,000,000
against the Mirant Debtors.

Recently, the parties began discussing:

    -- Mitsui's potential supply of goods and services to the
       Reorganized Debtors in the event they recommence
       construction at the Bowline Facility; and

    -- the possible need for Mitsui's services in support of the
       potential sale by the Reorganized Debtors to a third
       party of the equipment provided by Mitsui under the
       Bowline Agreement and Wyandotte Agreement.

Because of the parties' intention to re-establish their
professional relationship, Mitsui and the Reorganized Debtors
agree to resolve all issues relating to the Mitsui Claim and the
Undelivered Scope through the Settlement Agreement.

The principal terms of the Settlement Agreement are:

    (a) New Mirant will release all claims under any of the
        Letters of Credit.  New Mirant will also return the
        Letters of Credit, in the full undrawn amounts, to the
        entity issuing the Letters of Credit.  In the event that
        the Letters of Credit are lost or missing, or New Mirant
        does not return the Letters of Credit within two days of
        the effective date of the Settlement Agreement, the
        Reorganized Debtors must provide a certification in the
        Settlement Agreement;

    (b) Mitsui will withdraw the Mitsui Claim once the Letters
        of Credit are returned or the Certification has been
        provided;

    (c) New Mirant will have no further payment obligations
        under either the Bowline Agreement or Wyandotte
        Agreement;

    (d) Mitsui will have no further obligation to deliver
        materials, supplies or services, or perform under a
        warranty or any other obligations, under either of the
        Bowline Agreement or the Wyandotte Agreement;

    (e) New Mirant will grant Mitsui and Ishikawajima-Harima
        Heavy Industries Co., Ltd., a general release, while
        Mitsui will  grant Mirant a general release.  IHI is
        Mitsui's subcontractor in connection with the Bowline
        Agreement and Wyandotte Agreement.  While not a party to
        the Settlement Agreement, IHI did agree and consent to
        the Settlement Agreement;

    (f) Mirant will provide Mitsui prior written notice of the
        recommencement of any of its construction at the Bowline
        Facility or the sale of any equipment previously
        supplied by Mitsui to Mirant under the Bowline Agreement
        or Wyandotte Agreement; and

    (g} The parties will negotiate in good faith to reach a new
        commercial agreement describing the work or services to
        be provided by Mitsui to Mirant.

A full-text copy of the Mitsui Settlement Agreement is available
for free at http://researcharchives.com/t/s?d79

Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao.  Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.  Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on January 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring.  When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts.
(Mirant Bankruptcy News, Issue No. 100; Bankruptcy Creditors'
Service, Inc., 215/945-7000)

                         *     *     *

As reported in the Troubled Company Reporter on Dec. 8, 2005,
Standard & Poor's Ratings Services assigned its 'B+' corporate
credit rating to power generator and developer Mirant Corp. and
said the outlook is stable.  That rating reflected the credit
profile of Mirant, based on the structure the company expects to
have on emergence from bankruptcy at or around year-end 2005,
S&P said.




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


* URUGUAY: Won't Participate in Southern Gas Pipeline Project
-------------------------------------------------------------
Uruguay did not sign an adhesion instrument to the southern gas
pipeline with Argentina, Brazil and Venezuela, contrary to
previous claims by Venezuela's foreign ministry, El Universal
says.

When asked why Paraguay refused to join the project, the Energy
and Petroleum Ministry Public Affairs Office would not provide
the reasons, El Universal continues.

Paraguay, according to El Universal, has been reluctant to enter
the project, saying it has other plans to lay pipelines linking
its country with Bolivia, its traditional gas supplier.

The proposed pipeline is estimated to cost US$20 billion and
will stretch for 8,000 km.  The countries involve did not
disclose how the initial layout will be changed to accommodate
Bolivia, El Universal says.

                         *    *    *

Fitch Ratings assigned these ratings on Uruguay:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     BB-      Mar. 7, 2005
   Long Term IDR       B+      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating      BB-      Mar. 7, 2005


* URUGUAY: State Firm Launches Punta del Tigre Test Operations
--------------------------------------------------------------
UTE, the state-run energy firm of Uruguay, started on Monday
test operations at the 200-megawatt Punta del Tigre thermo
plant, El Pais reports, citing Pedro de Aurrecoechea, the UTE's
vice president.

Mr. de Aurrecoechea told Business News Americas in June that the
Punta del Tigre plant has four 50MW turbines.  It will use
diesel during the winter season and switch to gas in spring,
when supplies of Argentine natural gas increase.

BNamericas relates that the plant will start operations
officially by the end of July, when capacity will be 100MW
before hitting 200MW in August.

General Electric constructed the project to add to the energy
matrix of Uruguay that weakened recently due to low rainfall.
The construction amounted to U$100 million, BNamericas states.

                        *    *    *

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: Elnusa Wants Firm to Have Stake in Plant
----------------------------------------------------------------
Petroleos de Venezuela, the Venezuelan state-owned oil company,
has received an invitation from Elnusa, an Indonesian state-run,
to acquire a stake in a refinery being built in Indonesia,
according to a report by Agencia Bolivariana de Noticias.

Eulogio del Pino, the director of Petroleos de Venezuela, told
Business News Americas that the Indonesian refinery will be able
to process extra-heavy crude like that of the Orinoco oil belt
in Venezuela.

BNamericas states that the plant will have a daily capacity of
330,000 barrels.  It will be constructed over the next three
years.

The Elnusa refinery will be the largest in Southeast Asia.  It
will be the first to incorporate deep conversion capacities that
will enable it to convert up to a third of the crude into
gasoline, ABN relates.

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

                        *    *    *

On Jan. 23, 2005, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'.  The rating of PDVSA's export receivable future
flow securitization, PDVSA Finance Ltd, was also upgraded to
'BB+' from 'BB'.  In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating.  Fitch said the Rating Outlook
is Stable.  Both rating actions followed Fitch's November 2005
upgrade of Venezuela's sovereign rating.


PETROLEOS DE VENEZUELA: Unit May Get Gas Exploration Licenses
-------------------------------------------------------------
PDVSA Gas, a unit of Venezuelan state-run oil firm Petroleos de
Venezuela aka PDVSA, could be awarded exploration and production
licenses for five unassociated natural gas properties, Business
News Americas reports, citing Jorge Luis Sanchez -- the head of
Enagas, Venezuela's gas regulator.

The properties include:

    -- La Galera in Cojedes,
    -- El Pao, between Guarico and Cojedes,
    -- El Totumo, straddling Guarico and Aragua states,
    -- Memo, which is near El Totumo, and
    -- Norte de Ambrosio in Zulia.

According to BNamericas, Venezuela's energy and oil ministry was
expected to organize the auction for the areas.  Authorities,
however, are almost sure they want to give it to PDVSA Gas.

Enagas is affiliated with the energy and oil ministry.

Mr. Sanchez told BNamericas, "PDVSA Gas will probably be
assigned those areas.  PDVSA Gas has been evolving nicely.  It
is involved in a lot of challenging projects and we want to
develop the free natural gas rapidly."

A decision is expected to be made before the year ends,
BNamericas relates, citing Mr. Sanchez.

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

                        *    *    *

On Jan. 23, 2005, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'.  The rating of PDVSA's export receivable future
flow securitization, PDVSA Finance Ltd, was also upgraded to
'BB+' from 'BB'.  In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating.  Fitch said the Rating Outlook
is Stable.  Both rating actions followed Fitch's November 2005
upgrade of Venezuela's sovereign rating.


* VENEZUELA: Marquez Talks About CAN in Mercosur Context
--------------------------------------------------------
Gustavo Marquez, Venezuela's state minister for integration and
president of the Foreign Trade Bank, told El Universal that the
country is to foster relations with the Andean Community of
Nations within Mercosur.

Last year, with the new cooperation agreement with Mercosur, the
Andean Community gained four new associate members: Argentina,
Brazil, Paraguay and Uruguay.  These four Mercosur members were
granted associate membership by the Andean Council of Foreign
Ministers meeting in an enlarged session with the Commission (of
the Andean Community). This moves reciprocates the actions of
Mercosur that granted associate membership to all the Andean
Community nations by virtue of the Economic Complementarity
Agreements signed between the CAN and individual Mercosur
members.

The minister believes that once relations with CAN has been
developed, it will eventually lead to a global free trade area.
He emphasized to El Universal that financial resources will be
injected not only in individual countries, but also through
strategic partnerships.  This will be an important driver of
economic growth.

Gross Domestic Product in the Southern economic block grew by
75%, which, Mr. Marquez noted, will increase further as
investments are made in energy, the Southern gas pipeline and
the agricultural and petrochemical sectors, El Universal
relates.

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


* VENEZUELA: Fitch Says Heavy Oil Project at Risk
-------------------------------------------------
Projects for upgrading heavy crude oil crude from the Orinoco
Belt can be affected by the Venezuelan Government policy of
increasing taxes and restructuring agreements signed with
foreign companies, Fitch Ratings said.

In a report entitled "Venezuela's Heavy Oil Projects: The
Beginning of the End?," Fitch Ratings "details the rationale
behind Fitch's May 11, 2006 decision to downgrade the senior
secured debts of Petrozuata Finance Inc., Cerro Negro Finance,
Ltd. Sincrudos de Oriente Sincor, C.A., and Petrolera Hamaca,
S.A. from 'BB' to 'B+'."

Fitch kept on Rating Watch Negative four projects for upgrading
heavy crude oil crude from the Orinoco Belt.

"The downgrade considers the ongoing policy shifts affecting
private and foreign hydrocarbon producers in Venezuela," stated
Fitch in the report.

"Specifically, on May 11, the National Assembly amended the
Organic Hydrocarbon law of 2001 to levy a new oil extraction tax
at the rate of 33.33% on the strategic associations for the
development of extra-heavy crude oil of the Orinoco Basin,"
added the ratings agency.

Likewise, Fitch stated "The Rating Watch Negative signals that
additional downgrades are highly probable in the short term. The
expectation of further credit deterioration considers the
government's announced intention to restructure the association
agreements between Petroleos de Venezuela S.A. and the foreign
producers participating in the projects as 'Mixed Enterprises.'"


                         ***********


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

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