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

          Thursday, July 20, 2006, Vol. 7, Issue 143

                           Headlines


A R G E N T I N A

CLAXSON INTERACTIVE: Will Delay Filing of Form 20-F for 2005
COOPER METAL: Trustee Verifies Proofs of Claim Until Sept. 28
DISPREL SA: Verification of Proofs of Claim Is Until Sept. 27
DYZENO SA: Bankruptcy Proceeds to Reorganization
EMISSION SA: General Report Submission Moved to Aug. 8

ENRON: World Bank Court Orders Argentina to Pay Azurix US$165MM
IMAGEN DIGITALIZADA: Claims Verification Deadline Is on Oct. 23
ITAL GNC: Seeks Court Approval to Reorganize Business
LABORMED SA: Trustee to Deliver Individual Reports on Aug. 25
MAS SALUD: Trustee to Submit Individual Reports on Aug. 24

PUNTO ALEM: Last Day for Verification of Claims Is on Oct. 30
SOCIEDAD COMERCIAL: Balance Sheet Upside Down by US$695.5 Mil.
TELECOM ARGENTINA: Starts Converting Ordinary Shares on July 25
TESORO MARINO: Individual Reports Due in Court on Aug. 23

* ARGENTINA: CenBank Caps Banks Holding of Gov't Securities
* ARGENTINA: Ordered to Pay Azurix US$165M by World Bank Court
* ARGENTINA: Selling US$600 Million Boden Bonds to Venezuela

B E R M U D A

GLOBAL CROSSING: Provides Extended Internet Services to Arcor

B O L I V I A

COPORACION MINERA: A. Barreno May Contain Large Mineral Reserves

B R A Z I L

ARR-MAZ CUSTOM: S&P Assigns B Corporate Credit Rating
CAIXA ECONOMICA: Comsat Provides Broadband Connectivity Services
PETROLEO BRASILEIRO: Unit Tenders Offer to Buyback Securities
SADIA SA: Perdigao's Shareholders Reject Tender Offer
SADIA: Perdigao Offer Prompts Moody's to Affirm Ba2 Corp. Rating

VARIG: Brazilian Court Voids Creditor Votes to Reject Volo Bid
VARIG S.A.: Brazilian Government's Claim Gains Priority Status

C A Y M A N   I S L A N D S

AIMCO CLO: Proofs of Claim Filing Deadline Is Set for Aug. 10
ALCO 1: Creditors Must Present Proofs of Claim by Aug. 10
AMETHYST PROPERTIES: Claims Filing Deadline Is on Aug. 10
AUGUSTA FUNDING: Creditors Must File Proofs of Claim by Aug. 10
DIAMOND INVESTMENT: Filing of Proofs of Claim Is Until Aug. 10

MARTIN ASSET: Deadline for Proofs of Claim Filing Is on Aug. 10
MERCURY CAPITAL: Proofs of Claim Filing Is Until Aug. 10
NEW SSB: Creditors Have Until Aug. 10 to File Proofs of Claim
S&N CAPITAL: Proofs of Claim Filing Deadline Is on Aug. 10
SSB HOLDINGS: Last Day to File Proofs of Claim Is on Aug. 10

TLIBD LTD: Last Day for Proofs of Claim Filing Is on Aug. 10

C H I L E

VTR GLOBAL: Moody's Rates US$275MM Sr. Secured Facilities at B1

C O L O M B I A

ECOPETROL: Inks Energy Cooperation Pact With Petroecuador

* COLOMBIA: Cartagena Siglo Gets Wastewater Pipeline Project

C O S T A   R I C A

SPECTRUM BRANDS: Discloses Reduced 2006 Earnings Expectations
SPECTUM BRANDS: S&P Says Low 2006 Earnings Won't Affect Ratings

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE: Raised Phelps Dodge Bid Cues S&P to Watch Ratings
PHELPS DODGE: Revised Terms Cues S&P to Put Ratings on NegWatch

* DOMINICAN REPUBLIC: Tax Agency Wants Verizon to Pay Sales Tax

E C U A D O R

PETROECUADOR: Inks Energy Cooperation Pact With Ecopetrol

G U A T E M A L A

* GUATEMALA: Reaches Tax Agreement With Glamis Gold

H O N D U R A S

* HONDURAS: Report Says There's 5.4% Boost in Economic Activity

P A N A M A

* PANAMA: Congress Approves Canal Expansion
* PANAMA: Pres. Sets Referendum for Canal Expansion on Oct. 22

P A R A G U A Y

PETROLEO BRASILEIRO: Launches First Service Station in Paraguay

P U E R T O   R I C O

KMART: Agrees with Wallace to Stay Proceedings Until Aug. 31
KMART CORP: Says Settlement Pacts with Rudmann, et al. Were Done
MUSICLAND HOLDING: Wants Until Oct. 9 to Solicit Plan Votes
OCA INC: N.C. Regulator Wants N.C. Unit Lawsuit Continued

T R I N I D A D   &   T O B A G O

BRITISH WEST: Cuts Airline Services to Trinidad & Tobago

U R U G U A Y

* URUGUAY: La Teja Refinery Won't Double Production, PDVSA Says

V E N E Z U E L A

ELECTRICIDAD DE CARACAS: Sale of Shares Could Reach US$18.7 Mil.
PETROLEOS DE VENEZUELA: Budgets US$2B to Secure Refinery for Oil
PETROLEOS DE VENEZUELA: La Teja Expansion Scaled Back to 20%
PETROLEOS DE VENEZUELA: Shell Inks New Joint Venture Agreement

* VENEZUELA: Buying US$600 Million Boden Bonds from Argentina
* VENEZUELA: Gets Argentine Coop's Invite to Issue Cabal Cards
* VENEZUELA: Replacing Mining Licenses with Joint Ventures


                         - - - - -


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



CLAXSON INTERACTIVE: Will Delay Filing of Form 20-F for 2005
------------------------------------------------------------
Claxson Interactive Group Inc. was not able to file its annual
report on Form 20-F for the year ended December 31, 2005, with
the US Securities and Exchange Commission within the extended
deadline of July 17, 2006, due to the company's need for
additional time to complete a restatement of its financial
statements for previous years.

The Audit Committee of Claxson Inetractive's Board of Directors
and the company's management concluded that the financial
statements for the years ended December 31, 2002, 2003 and 2004
will need to be restated due to an error in the application of
generally accepted accounting principles as they relate to the
recognition of the impairment in the value of certain
investments in equity securities that the company had held since
its inception and sold during 2005.  The company expects that
the effect of the restatement on the company's consolidated
income statements and comprehensive income with respect to the
accounting for investments in equity securities will be an
increase in net loss for the year ended December 31, 2002, of
US$0.8 million, a reduction in net income for the year ended
December 31, 2003, of US$0.4 million, an increase in net income
for the year ended December 31, 2005, of US$1.2 million and no
net income effect for 2004.  Accordingly, the company does not
expect that in the aggregate, when considering all years covered
by the restatement, there will be any net effect on the
company's net income over the covered years.  Additionally,
Claxson Inetractive identified certain classification errors in
the company's consolidated statements of cash flows for the
years ended December 31, 2003 and 2004 related to dividends and
restricted investments.  These classification errors will also
be corrected as part of the restatement.

The Audit Committee of Claxson Interactive's Board of Directors
and the company's management have discussed these matters with
its independent registered public accounting firm.

Pending the filing by Claxson of its restated financial
statements, previously filed financial statements and the report
of our independent registered public accounting firm included in
Forms 20-F for the fiscal years ended December 31, 2004, 2003
and 2002 and Form 6-K filed on April 4, 2006, containing an
earnings release for the period ended December 31, 2005, should
not be relied upon.

Although Claxson Interactive does not expect that the
restatement will have an impact on its ongoing operations, the
restatement impact discussed in this press release is
preliminary, unaudited and reflects restatement adjustments
identified to date.  This estimate is subject to change as a
result of any adjustments arising from the restatement process
and the completion of the company's investigation.

                 About Claxson Interactive

Claxson Interactive Group Inc. distributes content through pay
and broadcast television, radio, and the Internet. It owns or
distributes interests in more than a dozen pay TV channels,
including Playboy TV Latin America (81%).  The company also owns
a handful of Internet businesses (under the El Sitio name).
Claxson, which operates throughout North and South America, was
formed by the 2001 merger of El Sitio and Ibero-American Media
Partners, a joint-venture between the Cisneros Group of
Companies and HM Capital Partners.  CGC and HM Capital together
own about 60% of the company.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 2, 2006,
Fitch Argentina Calificadora de Riesgo S.A. maintained its
'B(arg)-' rating on US$44.4 million of undated "Obligaciones
negociables" bonds issued by Claxson Interactive Group Inc.


COOPER METAL: Trustee Verifies Proofs of Claim Until Sept. 28
-------------------------------------------------------------
Julio Capovilla, the court-appointed trustee for Cooper Metal
S.A.'s bankruptcy case, will verify creditors' proofs of claim
until Sept. 28, 2006.

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

Court No. 5 in Buenos Aires declared Cooper Metal bankrupt at
the request of Jorge Klosowski, whom it owes US$44,711.

Clerk No. 10 assists the court in this proceeding.

The debtor can be reached at:

    Cooper Metal S.A.
    Cerrito 1054
    Buenos Aires, Argentina

The trustee can be reached at:

    Julio Capovilla
    Corrientes 3859
    Buenos Aires, Argentina


DISPREL SA: Verification of Proofs of Claim Is Until Sept. 27
-------------------------------------------------------------
Isabel Ana Ramirez, the court-appointed trustee for Disprel
S.A.'s bankruptcy proceeding, will verify creditors' proofs of
claim until Sept. 27, 2006.

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

Court No. 2 in Buenos Aires declared Disprel S.A. bankrupt at
the request of Julio E. Rodriguez, whom it owes US$13,271.50.

Clerk No. 3 assists the court in this proceeding.

The debtor can be reached at:

    Disprel S.A.
    Gascon 1224
    Buenos Aires, Argentina

The trustee can be reached at:

    Isabel Ana Ramirez
    Tte. General Juan Domingo Peron 2082
    Buenos Aires, Argentina


DYZENO SA: Bankruptcy Proceeds to Reorganization
------------------------------------------------
A court in Buenos Aires ordered that Dyzeno S.A.'s bankruptcy
case must be converted into a reorganization proceeding.  This
will allow the company to negotiate a settlement with is
creditors to avoid a straight a liquidation.

Rafael Rodolfo Bejar Sadis at Estudio Bejar, Pantin y Asociados
will continue to be the trustee for the reorganzation.  Mr.
Bejar Sadis will:

   -- verify creditors' proofs of claim, and

   -- prepare and submit individual and general reports in court
      after the claims are verified.

The claims verification deadline and the report submission dates
have not been disclosed.

The trustee can be reached at:

    Rafael Rodolfo Bejar Sadis
    Estudio Bejar, Pantin y Asociados
    Suipacha 211
    Buenos Aires, Argentina


EMISSION SA: General Report Submission Moved to Aug. 8
------------------------------------------------------
Court No. 7 in Mendoza moved the submission of the general
report on Emission S.A.'s reorganization proceeding to
Aug. 8, 2006.  It was previously set for March 14, 2006.
Eduardo Julio Quiroga, the court-appointed trustee, will submit
the report in court.

Emission S.A.'s creditors will vote on a settlement plan that
the company will present on Nov. 22, 2006.

The Troubled Company Reporter-Latin America reported on
Aug. 9, 2005, that Mr. Quiroga validated creditors' proofs of
claim until Aug. 25, 2005.  He delivered in court the individual
reports based on the verified claims on Oct. 20, 2005.

The debtor can be reached at:

    Emission S.A.
    Renato Della Santa 1448
    Villa Hipodromo, Godoy Cruz
    Mendoza, Argentina

The trustee can be reached at:

    Eduardo Julio Quiroga
    Mitre 660, Ciudad de Mendoza
    Mendoza, Argentina


ENRON: World Bank Court Orders Argentina to Pay Azurix US$165MM
---------------------------------------------------------------
A World Bank court ordered Argentina to pay US$165,000,000 to
Azurix Corp., a unit of Enron Corp., in connection with the
country's failure to abide by an investment protection treaty
with the United States, according to a report by Bloomberg News,
citing the Argentina-based daily Clarin.

The dispute between the parties arose after Argentina revoked
its water supply contract with the Azurix in 2001.  Argentina
cited Azurix's alleged failure to fulfill its contract
commitments as reason for the revocation, which the company
denied.  The World Bank Court ruled that Argentina's revocation
of the contract was a violation of the treaty.

Headquartered in Houston, Texas, Enron Corporation filed for
chapter 11 protection on December 2, 2001 (Bankr. S.D.N.Y. Case
No. 01-16033) following controversy over accounting procedures,
which caused Enron's stock price and credit rating to drop
sharply.  Judge Gonzalez confirmed the Company's Modified Fifth
Amended Plan on July 15, 2004, and numerous appeals followed.
The Debtors' confirmed chapter 11 Plan took effect on
Nov. 17, 2004.  Martin J. Bienenstock, Esq., and Brian S. Rosen,
Esq., at Weil, Gotshal & Manges, LLP, represent the Debtors in
their restructuring efforts.  Luc A. Despins, Esq., Matthew
Scott Barr, Esq., and Paul D. Malek, Esq., at Milbank, Tweed,
Hadley & McCloy, LLP, represent the Official Committee of
Unsecured Creditors.  (Enron Bankruptcy News, Issue No. 176;
Bankruptcy Creditors' Service, Inc., 15/945-7000)


IMAGEN DIGITALIZADA: Claims Verification Deadline Is on Oct. 23
---------------------------------------------------------------
Elena Beatriz Tancredo, the court-appointed trustee for Imagen
Digitalizada S.A.'s bankruptcy proceeding, will verify
creditors' proofs of claim until Oct. 23, 2006.

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

Court No. 6 in Buenos Aires declared Imagen Digitalizada
bankrupt at the behest of Acron S.A., which it owes US$7,758.48.

Clerk No. 11 assists the court in this case.

The debtor can be reached at:

    Imagen Digitalizada S.A.
    Solis 785
    Buenos Aires, Argentina

The trustee can be reached at:

    Elena Beatriz Tancredo
    Ecuador 1185
    Buenos Aires, Argentina


ITAL GNC: Seeks Court Approval to Reorganize Business
-----------------------------------------------------
Court No. 13 in Buenos Aires is studying the merits of Ital GNC
S.A.'s petition to reorganize its business after defaulting on
its obligations.

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

Clerk No. 26 assists the court in the proceeding.

The debtor can be reached at:

    Ital GNC S.A.
    Avenida de los Constituyentes 3636/38
    Buenos Aires, Argentina


LABORMED SA: Trustee to Deliver Individual Reports on Aug. 25
-------------------------------------------------------------
Omar Lares, the court-appointed trustee for Labormed S.A.'s
bankruptcy case, will present individual reports in court on
Aug. 25, 2006.  A general report that contains an audit of the
company's accounting and banking records will follow on
Oct. 9, 2006.

Mr. Lares verified creditors' proofs of claim against Labormed
until June 29, 2006.

The Troubled Company Reporter-Latin America reported on
May 29, 2006, that Labormed's creditors did not accept the
settlement plan that the company presented, prompting Court No.
11 in Buenos Aires to convert the company's insolvency case into
a liquidation proceeding.

The debtor can be reached at:

    Labormed S.A.
    Calle 37 Nro. 658, La Plata
    Buenos Aires, Argentina

The trustee can be reached at:

    Omar Lares
    Calle 11 Nro. 467, La Plata
    Buenos Aires, Argentina


MAS SALUD: Trustee to Submit Individual Reports on Aug. 24
----------------------------------------------------------
Miguel Angel Drucaroff, the court-appointed trustee for Mas
Salud Mental S.A.'s bankruptcy case, will present individual
reports inn court on Aug. 24, 2006.  A general report that
contains an audit of the company's accounting and banking
records will follow on Oct. 6, 2006.

Mr. Drucaroff verified creditors' proofs of claim against Mas
Salud until June 26, 2006.

The debtor can be reached at:

    Mas Salud Mental S.A.
    Avenida Las Heras 2963
    Buenos Aires, Argentina

The trustee can be reached at:

    Miguel Angel Drucaroff
    Avenida Corrientes 2470
    Buenos Aires, Argentina


PUNTO ALEM: Last Day for Verification of Claims Is on Oct. 30
-------------------------------------------------------------
Court-appointed trustee Ruben E. Martinez Madariaga will verify
creditors' proofs of claim against insolvent company Punto Alem
S.A. until Oct. 30, 2006.

Mr. Madariaga will present individual reports and a general
report that contains an audit of Punto Alem's accounting and
banking records after the claims are verified.  The report
submission dates have not been disclosed.

On Aug. 20, 2007, Punto Alem's creditors will vote on a
settlement plan that the company will lay on the table.

The debtor can be reached at:

    Punto Alem S.A.
    Alem 3440, Mar del Plata
    Buenos Aires, Argentina

The trustee can be reached at:

    Ruben E. Martinez Madariaga
    Alberti 2735, Mar del Plata
    Buenos Aires, Argentina


SOCIEDAD COMERCIAL: Balance Sheet Upside Down by US$695.5 Mil.
--------------------------------------------------------------
Sociedad Comercial del Plata S.A. incurred US$169.3 million in
losses for three months, according to the company's filing with
the Bolsa de Comercio de Buenos Aires.

The company reported sales of US$41.5 million and operating loss
of US$0.8 million.

Sociedad Comercial posted a US$695.9 million negative
shareholder's equity.

             About Socied Comercial del Plata

Sociedad Comercial del Plata S.A.'s principal activities are
carried out through three business segments: petroleum and by-
products, entertainment, and other activities.  The petroleum
and by-products segment includes the production of petroleum,
natural gas, liquefied petroleum gas and gasoline, the
exploration and production of hydrocarbons, the operation of 26
service stations under the brand name PUMA, the processing of
crude petroleum and the distribution of fuel, lubricants,
turpentine, solvents, grease, asphalt, oil and other special
products, the manufacture of macroparaffin used in the
production of candles, matches, floor waxes and shines, carton
packaging, tires and lubricant oil and the transportation of
natural gas.  The entertainment segment includes the operation
of a theme park, a railway station for the theme park and a
casino.  Other activities include the development of single and
multi-family housing, hotels, restaurants, educational
establishments, among others.


TELECOM ARGENTINA: Starts Converting Ordinary Shares on July 25
---------------------------------------------------------------
Telecom Argentina SA will convert 2,112,986 class C shares and
will convert the same number of class B shares, Portfolio
Personal reports.

The directors of Telecom fixed July 25 as the date for starting
the conversion of the class C and B shares.

On April 26, 2006, a general assembly of Telecom's shareholders
approved the conversion of 41,339,464 ordinary shares.

The conversion will be done gradually, depending on the
recommendation of Banco de la Cuidad de Buenos Aires, in charge
of the "Programa de Propiedad Participada."

About 4,590,000 class C shares with titles "Garcias de Vicchi,
Amerinda y otros c/ Sindicacion de Accionistas Clase C del
Programa de Propiedad Participada" are not included.

Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina.  It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo.  France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein.  Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake.  Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).

                        *    *    *

Telecom Argentina's US$64,128,000 and US$54,124,000 notes due
Oct. 15, 2014, carry Standard & Poor's and Fitch's B- ratings.

                        *    *    *

As reported in the Troubled Company Reporter on April 27, 2006,
Fitch Ratings made these changes on Telecom Argentina's ratings:

   Foreign Currency

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

  Local Currency

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

  US$1.5 billion, Senior Unsecured Notes due 2011 and 2014

    -- Previous Rating: 'B-'
    -- New IDR: 'B/RR4'

                        *    *    *

As reported in the Troubled Company Reporter on April 26, 2006,
Standard & Poor's Ratings Services raised its foreign and local
currency corporate credit ratings on several Argentine entities
and removed them from CreditWatch, where they were placed with
positive implications on March 23, 2006.  Telecom Argentina
S.A.'s rating was upgraded to B from B-.

The rating actions followed the upgrade on the global foreign
and local currency ratings on the Republic of Argentina to 'B'
from 'B-' and the ratings on Argentina's national scale to
'raAA-' from 'raA'.


TESORO MARINO: Individual Reports Due in Court on Aug. 23
---------------------------------------------------------
Alicia Monica Gadara, the court-appointed trustee for Tesoro
Marino S.A.'s insolvency case, will present individual reports
in court on Aug. 23, 2006.  A general report that contains an
audit of the company's accounting and banking records will
follow on Oct. 5, 2006.

Ms. Gadara verified creditors' proofs of claim against Tesoro
Marino until June 27, 2006.

On March 7, 2007, Tesoro Marino's creditors will vote on a
settlement plan that the company will lay on the table.

The Troubled Company Reporter-Latin America reported on
Feb. 28, 2006, that Court No. 22 in Buenos Aires declared Tesoro
MArino bankrupt after it has defaulted on its obligations since
August 2005.

Clerk NO. 43 assists the court in the case.

The debtor can be reached at:

    Tesoro Marino S.A.
    Conrado Villegas 5424
    Buenos Aires, Argentina


* ARGENTINA: CenBank Caps Banks Holding of Gov't Securities
-----------------------------------------------------------
The Argentine government is putting a limit on public debts that
financial institutions can hold.  The restriction is aimed at
promoting greater liquidity and bolstering lending to companies.

By July next year, banks can only maintain 35%, from 40%, of
public debt on their balance sheets.

"This measure will reverse the process that has been observed in
recent decades, which was a displacement of private-sector debt
in favor of public-sector financing," the central bank said in a
statement. "This way the central bank produces a structural
reform in the Argentine financial system, inducing [banks] to
focus credit toward private investment."

Economists quoted by Reuters said wider lending is needed to
control inflation and to satisfy the demand for goods.  The
central bank said its new rule "was made in a context of
deepening liquidity and the [banking system's] recovery of
solvency, which together means a strengthening in financial
stability."

The central bank said, according to Bloomberg News, that the
measure will reduce banks' risk by diversifying their assets
more.  Banks in Argentina, many of which held more than 50% of
their assets in public debt in the 1990s, had their biggest
losses in decades in 2002 after the government defaulted on
US$95 billion of bonds in late 2001.

Argentina's strong economic recovery and the normalization of
the financial system after the 2001-2002 economic crisis,
enabled banks to gradually return to profit.

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

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


* ARGENTINA: Ordered to Pay Azurix US$165M by World Bank Court
--------------------------------------------------------------
A World Bank court ordered Argentina to pay US$165,000,000 to
Azurix Corp., a unit of Enron Corp., in connection with the
country's failure to abide by an investment protection treaty
with the United States, according to a report by Bloomberg News,
citing the Argentina-based daily Clarin.

The dispute between the parties arose after Argentina revoked
its water supply contract with the Azurix in 2001.  Argentina
cited Azurix's alleged failure to fulfill its contract
commitments as reason for the revocation, which the company
denied.  The World Bank Court ruled that Argentina's revocation
of the contract was a violation of the treaty.

Headquartered in Houston, Texas, Enron Corporation filed for
chapter 11 protection on December 2, 2001 (Bankr. S.D.N.Y. Case
No. 01-16033) following controversy over accounting procedures,
which caused Enron's stock price and credit rating to drop
sharply.  Judge Gonzalez confirmed the Company's Modified Fifth
Amended Plan on July 15, 2004, and numerous appeals followed.
The Debtors' confirmed chapter 11 Plan took effect on
Nov. 17, 2004.  Martin J. Bienenstock, Esq., and Brian S. Rosen,
Esq., at Weil, Gotshal & Manges, LLP, represent the Debtors in
their restructuring efforts.  Luc A. Despins, Esq., Matthew
Scott Barr, Esq., and Paul D. Malek, Esq., at Milbank, Tweed,
Hadley & McCloy, LLP, represent the Official Committee of
Unsecured Creditors.  (Enron Bankruptcy News, Issue No. 176;
Bankruptcy Creditors' Service, Inc., 15/945-7000)

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

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


* ARGENTINA: Selling US$600 Million Boden Bonds to Venezuela
------------------------------------------------------------
The Venezuelan government plans to buy Argentina's Boden 2012
bonds for US$600 million in the next 15 days, Nosis reports.
Once the purchase is completed, Venezuela's total acquisition of
Argentina's public debts will total around US$3.5 billion.

Argentina will use the proceeds of the sale to pay off interest
due on US$2.286 million of Boden bonds on August 3.  Argentina
is also facing US$650 million in bonds maturing next month.

                        *    *    *

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

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

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




=============
B E R M U D A
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GLOBAL CROSSING: Provides Extended Internet Services to Arcor
-------------------------------------------------------------
Global Crossing Ltd. disclosed that the world's largest
confectionery company, Arcor, signed an extended, multiyear
agreement to use Global Crossing's fully managed Internet
Protocol Virtual Private Network to converge its worldwide data,
voice and videoconferencing traffic into a single platform.

The level of convergence Arcor is obtaining over Global
Crossing's robust global IP VPN platform includes complex
applications, such as JD Edwards (AS/400 and JD Edwards One
World), supply chain management as well as their front and back
office functions creating a seamless business environment across
all of their operations.  Under the five-year agreement, Arcor
is incorporating nine more countries into Global Crossing's
converged IP VPN service, allowing a centralized, fully
integrated communication between locations across the Americas,
Asia, Europe and Africa.

The agreement expanded Global Crossing's existing relationship
with the confectionery giant, which began in 2001 with a Frame
Relay solution and expanded to IP-based services, initially
supporting the convergence of data, voice and video in six
markets.  With more than 18,000 employees around the world,
Arcor is now efficiently interconnecting 15 countries into
Global Crossing's MPLS-based IP VPN service including Argentina,
Bolivia, Brazil, Chile, China, Colombia, Ecuador, Mexico,
Paraguay, Peru, South Africa, Spain, Uruguay, the United States
and Venezuela.

"As we continue to grow our business internationally, we must
rely on a global, strategic partner like Global Crossing that
can deliver a highly secure, reliable and scalable network,"
Oscar Botto, Arcor's chief information technology officer, said.
"One of our priorities is leveraging top notch technologies to
help advance our business -- and the solutions provided by
Global Crossing enabled us to migrate to an IP-based environment
and converge our essential applications efficiently around the
globe."

Global Crossing is also providing Arcor with Managed Solutions,
a full, end-to-end lifecycle support for IP VPN to ensure that
the solution is designed, installed, managed and maintained
24x7.  In addition, the IP VPN managed services provide
significant overhead cost savings, such as communications and
travel expenses.  Furthermore, having Global Crossing manage
their converged IP network simplifies the confectionery's
solution and enables them to focus on managing their core
business.

"I am delighted to see leading companies like Arcor increasingly
rely on Global Crossing to support their expansion across the
globe so that they can concentrate on what they do best," Jose
Antonio Rios, Global Crossing's international president and
chief administrative officer, said.  "This is a true statement
of Global Crossing's leadership in deploying fully-managed
converged IP technologies."

This agreement underscores the explosive growth of demand for
converged IP services around the globe and in Latin America.  In
2005, Global Crossing saw its number of converged IP customers
triple, with IP VPN traffic growing more than 300 percent.  The
convergence of data, voice and video onto a single IP- based
platform yields simplicity in network design and administration,
as well as connectivity, billing and customer care.

Designed to run over the company's extensive global optical
network backbone, which operates at 99.999 percent availability,
Global Crossing Managed IP VPN Service links global businesses
and delivers content-rich multimedia services through a single,
efficient connection, based on Multi-Protocol Label Switching
technology.  Global Crossing offers a converged end-to-end IP
VPN solution for corporations worldwide, integrating video,
voice and data services, and supporting industry-specific
community extranets.  In addition to secure data transport, the
IP VPN offering provides access to VoIP, IP Video and other IP
services, providing a complete platform for managing the
transition to IP convergence.

"Arcor's decision to extend its relationship with us,
underscores Global Crossing's commitment in providing an
excellent customer experience and a flexible IP environment
supporting global expansion," added Jose Luis Kruyff, vice
president, enterprise sales for Global Crossing Latin America
and South Florida.  "We work closely with enterprises, just as
we have done with Arcor over the years, in designing and
implementing solutions tailored to meet their business
requirements as they transition their network operations to IP
at their own pace."

Global Crossing has significant presence in Latin America and
the Caribbean with offices and operational facilities in 12 of
the region's major cities.  Global Crossing has more than 50 IP
VPN points of presence in the region through its core network
and strategic partnerships.  Through its sub-sea and terrestrial
cable systems, Global Crossing seamlessly connects South
America, Mexico, Central America and the Caribbean to the rest
of its global network, delivering services to customers around
the world.  Costa Rica will be connected to the PAC system,
which currently lands in Balboa, Panama, and Mazatlan and
Tijuana, Mexico.  With its regional network officially completed
in 2001, Global Crossing now serves virtually all of Latin
America's major carriers as well as many prestigious Latin
American companies, research and educational networks, and
global companies operating in the region.  Such customers
include Latin America's largest construction and engineering
firm Odebrecht, Mexicana Airlines and Banco Santander
International.

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.




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


COPORACION MINERA: A. Barreno May Contain Large Mineral Reserves
----------------------------------------------------------------
Corporacion Minera de Bolivia aka Comibol, Bolivia's state-run
mining company, said in its prospective reserve reports to
Franklin Mining that A. Barreno, the Cerro Rico Third Vein, and
its branches is believed to contain approximately 1,079,358 tons
of ore, 237,289 kilos of silver and 56,194 metric tons of zinc,
roughly 8,367,777 ounces of silver and 123,626,800 pounds of
zinc.

The combined estimated reserves for the San Miguel vein, Mesa
Pata vein and the A. Barreno vein is about 599,609 kgs of
Silver, 147,898 tons of zinc and 9,881 tons of tin, yielding
approximately 21,144,629 ounces of silver, 325,742,416 lbs of
zinc and 21,777,724 lbs of tin.

"The potential of the third vein with its branches has exceeded
our expectations. The information provided to us by Comibol is
exciting, and we will begin to review and analyze the details
provided as well as the potential reserves for the remaining
vein," stated Jaime Melgarejo, President of Franklin Mining,
Inc.

                  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
===========


ARR-MAZ CUSTOM: S&P Assigns B Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Arr-Maz Custom Chemicals Inc.  At the same
time, the rating agency assigned a 'B+' and a recovery rating of
'1' to Arr-Maz's US$15 million 6-year revolving credit facility
and its US$125 million 6-year 1st-lien term loan, reflecting
Standard & Poor's expectation of full recovery of principal in
the default scenario.  A 'CCC+' rating was also assigned to the
company's US$52.5 million 6.5-year 2nd-lien term loan, with a
recovery rating of '5', indicating negligible (0%-25%) recovery
prospects for 2nd-lien lenders.  The outlook is stable.

Proceeds from the credit facilities, which were underwritten by
UBS Securities LLC, together with US$42.5 million of equity and
an US$8 million contingent seller note, were used to finance the
recent acquisition of Arr-Maz by certain funds managed by GSO
Capital Partners LP from Wind Point Partners, repay existing
debt, and pay transaction expenses.

"The ratings on Arr-Maz reflect good positions in niche
specialty chemical markets, as well as risks associated with its
high debt leverage and modest scope of operations," Standard &
Poor's credit analyst Cynthia Werneth said.

Mulberry, Fla.-based Arr-Maz is a narrowly-focused producer of
process chemicals and functional additives, including reagents
and coatings, to the phosphate fertilizer and mining industries,
which account for more than half of total sales.  The company
also manufactures additives for ammonium nitrate used in
nitrogen fertilizers and explosives and additives for asphalt
used in paving and roofing.  These businesses, which are of
approximately equal size, are much smaller.  In addition, Arr-
Maz makes other diversified industrial mineral flotation and
surfactant chemicals and toll produces chemicals for third
parties. Sales are concentrated in North America, but during the
past few years the company established a manufacturing joint
venture in Brazil (of which it currently owns 90%) and a
presence in Europe through a tolling arrangement with a third-
party manufacturer.  Sales originating from overseas locations
account for about 14% of revenues, which totaled US$153 million
in 2005.

Proprietary chemistry, a value-added product mix, and a high
degree of technical sales and service should ensure the
continuation of good operating profitability and reasonable cash
flow generation despite the company's high debt leverage.
However, the outlook could be revised to negative or the ratings
lowered in the event of:

   -- significant, debt-financed acquisitions,
   -- a leveraged recapitalization,
   -- a sharp deterioration in operating conditions, or
   -- a significant loss of business from a major customer,

none of which is currently anticipated.  Upward rating movement
is likely to be constrained by the company's aggressive
financial policies and weak credit measures.


CAIXA ECONOMICA: Comsat Provides Broadband Connectivity Services
----------------------------------------------------------------
Comsat International has purchased two SkyEdge satellite hubs
operating in a redundant geographic mode and nearly 5,000 VSAT
terminals to provide broadband connectivity services for Caixa
Economica Federal in Brazil.  Comsat is Brazil's second-largest
satellite service provider and Caixa is one of Brazil's largest
public banks and is the institution responsible for managing the
country's federal lottery.

Comsat is providing a hybrid IP network that is comprised mainly
of VSATs, with some terrestrial-based connectivity.  The
network, which is now in the process of being deployed, will
link Caixa's sites for both lottery transactions and general
banking, including bill-paying services.  Once installed, this
will be one of Brazil's largest VSAT networks.

"A geographical redundant SkyEdge hub together with Gilat's
advanced VSAT technology ensures high availability, which is
critical to Caixa's needs.  At the same time, SkyEdge is able to
provide high performance at rates competitive with DSL,
providing a cost effective solution for transactional sites.  In
addition, SkyEdge is the only VSAT solution, we are aware of,
that complies with our complex networking and security
requirements without the need for an external router.  This
factor was an important advantage that enabled us to achieve the
competitiveness required to win this project," Brian Brooks,
Comsat's Vice President of Commercial Operations said.

Mr. Brooks added, "Gilat's strong local support team, and its
experience supporting very large lottery programs also
contributed to our decision to select them for this project."

Russell Ribeiro, General Manager of Gilat do Brasil Ltda., said,
"Comsat's deployment of our technology and services on such a
large scale is indicative of their trust in our organization.
This contract further establishes our position as a leading
provider of satellite networks to the global lottery industry."

                 About Comsat International

Headquartered in McLean, Virginia USA, Comsat International,
Inc. provides local, national and pan-regional network services
and solutions for more than 1,600 enterprise, government and
service-provider customers over modern, integrated terrestrial
and satellite network facilities in all key Latin American
markets.  It owns domestic networks in Argentina, Brazil,
Colombia, Mexico, Peru, Venezuela, the Dominican Republic,
throughout Central America and Turkey and has two gateways
interconnect points in the USA.  It also provides services via
terrestrial and satellite links to Bolivia, Chile, Ecuador and
Uruguay. In addition, it operates over 2,000 square meters of
data center and teleport collocation space throughout the
region.

              About Gilat Satellite Networks Ltd.

Headquartered in Petah Tikva, Israel, Gilat Satellite Networks
Ltd. is a leading provider of products and services for
satellite-based communications networks.  The Company operates
under three business units: (i) Gilat Network Systems, which is
a provider of network systems and associated professional
services to service providers and operators worldwide; (ii)
Spacenet Inc., which provides managed services in North America
for businesses and governments through its Connexstar service
brand and for consumers through its StarBand service brand;
(iii) Spacenet Rural Communications, which offers rural
telephony and Internet access solutions to remote areas
primarily in Latin America.

                        *    *    *

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

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


PETROLEO BRASILEIRO: Unit Tenders Offer to Buyback Securities
-------------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras' wholly owned subsidiary
Petrobras International Finance Corp. has commenced a cash
tender offer for any and all of the five series of notes.

This transaction is intended to allow Petrobras and PIFCo to
reduce overall indebtedness and take advantage of their strong
cash flow generation.  In addition, since Petrobras and PIFCo
received an investment grade rating in October 2005 by Moody's
Investor Service, they expect to have an ability to raise funds
on more favorable terms than were available at the time PIFCo
issued the original notes.

PIFCo has commenced the cash tender offers for any and all of
the aggregate principal amount outstanding of the five series of
notes described in the table below, subject to the conditions
and limitations described in the offer to purchase dated
July 18, 2006, including the condition that PIFCo shall not have
received tenders of notes in all offers having an aggregate
principal amount in excess of US$1 billion, excluding certain
notes currently held by PIFCo or its affiliates that it intends
to tender, or cause to be tendered, in the offers.  In the event
that the Maximum Tender Condition is not met, PIFCo may
terminate one or more offers in order to cause this condition to
be satisfied, beginning with the offer for the notes bearing the
longest maturity and continuing in decreasing order of maturity.

Title of         CUSIP/ISIN     Maturity   Fixed     Reference
Security         Number         Date       Spread    Treasury
                                           (Basis    Security
                                           Points)

PIFCo 12.375%    71645WAF8 /    April 1,            4.625% U.S.
Global Step-     US71645WAF86    2008               Treasury
Up Notes due                                 +35                   Note due
2008 ("Step-
March 31,
Up Notes")
2008

PIFCo 9.875%     EC3844981 /    May 9,              2.625%
Senior Notes    USG7028BAA91*;   2008             U.S.
due 2008         71646FAA5 /                +35           Treasury
("2008           US71646FAA57;                             Note due
Notes")         71646FAB3 /                                   May 15,
                 US71646FAB31*                                 2008

PIFCo 9.750%     71645WAB7 /    July 6,             5.125%
Senior Notes    US71645WAB72*;   2011               U.S.
due 2011         EC4142831 /                +70           Treasury
("2011           USG7028BAB74*;                          Note due
Notes")         71645WAA9 /                                 June 30,
                 US71645WAA99                                 2011

PIFCo 9.125%     71645WAG6 /    July 2,            4.250%
Global Notes     US71645WAG69    2013              U.S.
due 2013                                   +125                    Treasury
("2013
Note due
Notes")
August 15,

2013

PIFCo 8.375%   71645WAH4 /    December           5.125%
Global Notes   US71645WAH43    10, 2018           U.S.
due 2018                                   +190
Treasury
("2018
Note due
Notes")
May 15,

2016

The purchase price for each US$1,000 principal amount of notes
validly tendered and not validly withdrawn pursuant to an offer
shall be the price equal to the present value on the settlement
date of such principal amount and the present value of the
interest payments due on such principal amount from the last
interest payment date through the applicable maturity date
indicated in the chart, determined on the basis of a yield to
the applicable maturity date equal to the sum of (x) the bid-
side yield of the applicable reference treasury security
indicated in the chart above and calculated as described below,
plus (y) the applicable fixed spread indicated in the chart
above, minus accrued and unpaid interest from the last interest
payment date to, but excluding, the settlement date, payable on
the settlement date.  In addition, registered holders of notes
who validly tender and do not validly withdraw their notes in an
offer will also receive accrued and unpaid interest from the
last interest payment date with respect to the relevant series
to, but excluding, the settlement date, payment on the
settlement date.

The reference yield for the applicable reference treasury
security will be calculated by Morgan Stanley & Co.,
Incorporated and UBS Securities LLC, who PIFCo has retained as
dealer managers for the offers, in accordance with standard
market practice as of 4:00 pm New York City time, today, July
20, 2006, as reported on the applicable Bloomberg Government
Pricing Monitor page, or, if any relevant price is not available
on a timely basis on the applicable Bloomberg Page or is
manifestly erroneous, such other recognized quotation source as
the dealer managers shall select in their sole discretion.

The offers are scheduled to expire at 5:00 pm, New York City
time, on Monday, July 24, 2006, unless extended or earlier
terminated. Settlement of each offer is expected to occur three
business days after the applicable expiration time of that
offer.

PIFCo has retained The Bank of New York as depositary for the
offers, the Bank of New York (Luxembourg) S.A. to serve as
Luxembourg agent for the offers and D.F. King & Co., Inc. as
information agent for the offers.

Requests for documents may be directed to:

             D.F. King & Co., Inc.
             48 Wall Street, 22nd Floor
             New York, New York 10005
             Tel: (212) 269-5550 for banks and brokers
                  (800) 859-8508 for all others,

Questions regarding the offers may be directed to:

             Morgan Stanley & Co., Incorporated
             Tel: (800) 624-1800 (in the United States)
                  (212) 761-1864 (outside the United States)

                        -- or --

             UBS Securities LLC
             Tel: (888) 722-9555, ext. 4210 (in the US)
                  (203) 719-4210 (outside the US).

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.


SADIA SA: Perdigao's Shareholders Reject Tender Offer
-----------------------------------------------------
Perdigao S.A. disclosed that it has received a written notice
from shareholders that jointly represent more than 55% of its
social capital, rejecting Sadia S.A.'s tender offer to acquire
50% plus 1 shares of the company.

On July 17, 2006, Sadia made a voluntary public offer to acquire
control of Perdigao.  The offer is extensive to all shareholders
of Perdigao.  The purpose of the offer is to create a historical
partnership between two traditional Brazilian companies, in
order to compete in equal terms with their competitors in a
strategic sector of Brazil.

However, Perdigao said in a statement that Sadia does not own at
least 20% of the total shares issued by Perdigao, which is a
condition under Article 37 of Perdigao's bylaws that must be
satisfied before any company can have a controlling stake on
Perdigao.

In connection with this, Perdigao disclosed that it will not
hold a General Shareholders' Meeting for the purpose of
appointing a financial institution for preparing a valuation
report under articles 37 and 43 of the company's Bylaws

Headquartered in Sao Paulo, Brazil, Sadia S.A. --
http://www.sadia.com-- operates in the agro industrial and food
processing sectors in Brazil and primarily produces a range of
processed products, poultry, and pork.  The company distributes
around 1,000 different products through distribution and sales
centers located in Brazil, Latin America, the Middle East, Asia,
and Europe.

                        *    *    *

As reported by Troubled Company Reporter on Feb. 1, 2006,
Standard & Poor's Ratings Services affirmed its 'BB' foreign and
local currency corporate credit rating on Sadia S.A.  The
ratings affirmation followed Sadia's announcement of a Brazilian
reais 1.5 billion (about US$650 million) capital investment for
the construction of a new production plant in the Brazilian
state of Mato Grosso.  The outlook on the ratings is stable.

Moody's Investors Service assigned on April 4, 2006, a Ba2
global local currency scale corporate family rating to Sadia.


SADIA: Perdigao Offer Prompts Moody's to Affirm Ba2 Corp. Rating
----------------------------------------------------------------
Moody's affirmed the Ba2 global local currency scale corporate
family rating of Sadia S.A. after the announcement of its tender
offer for the acquisition of at least 50% plus one share and up
to 100% of the shares of Perdigao S.A.  The offer runs until
October 24 and is subject to Perdigao shareholder's approval.
The rating outlook is developing, pending the resolution of a
number of uncertainties regarding the transaction.

The rating affirmation is based on our view that at this early
stage of the company's tender offer it is unclear as to the
outcome of the offer and the resulting potential positive or
negative impacts of a successful acquisition.  As contemplated,
the transaction should allow Sadia to maintain or quickly return
to a credit profile and to debt protection measures appropriate
for the Ba2 category.

"The transaction willl also create the largest animal protein
company in Brazil, the greater size, scale and diversification
of which offset the significant integration challenges and
higher leverage that would be facing Sadia," Moody's analyst
Soummo Mukherjee says.  Additionally, the affirmation is based
on Sadia's management's stated target for leverage of less than
1 time on a net debt to EBITDA basis and our expectation that
the company will be strongly committed to de-leveraging to such
a level should the transaction proceed.

The developing outlook reflects a number of uncertainties
related to the transaction, some of which could have either a
positive or negative impact on Sadia's rating.  These
uncertainties include, most immediately, whether or not Perdigao
shareholders will accept Sadia's offer under the terms proposed.
Even if Perdigao accepts Sadia's offer price of BRL27.88 per
Perdigao share, the closing acquisition price of the transaction
could vary significantly depending on the percentage of shares
acquired.  Sadia has secured a two-year bridge financing with
ABN Amro for the acquisition of up to 100% of Perdigao shares;
however, there are still different options that the company is
considering at this stage, regarding the take-out of this bridge
financing if the transaction were to close, which also leads to
the developing outlook. One of such options, includes issuing
additional shares, which would be regarded as a credit positive.
However, Moody's notes that Sadia already has a firm commitment
from ABN Amro for the refinancing of such bridge facility, which
would mitigate the company's refinancing risk, but lead to
overall increased debt levels.

Moody's will continue to monitor further developments about the
transaction.  A review of Sadia's current global local currency
Ba2 corporate family rating is possible once there is more
certainty about the closing and terms of the transaction.

Sadia, headquartered in Sao Paulo, Brazil, exports over 1,000
different products to approximately 100 countries and is the
largest slaughterer and distributor of poultry and pork
products, as well as the leading refrigerated and frozen protein
products company in Brazil.  For the last twelve months ending
in 2005, the company had net sales of BRL7.3 billion or US$3
billion with approximately 50% or revenues derived from exports.


VARIG: Brazilian Court Voids Creditor Votes to Reject Volo Bid
--------------------------------------------------------------
Judge Luiz Roberto Ayoub of the 8th District Bankruptcy Court in
Brazil annulled on Tuesday the votes cast by some VARIG S.A.
creditors to reject Volo do Brasil's US$500,000,000 offer for
the airlines' assets.

The Brazilian Court also scheduled an auction for VARIG's
operating assets today.

As previously reported, leasing companies and other key
creditors threw out a bankruptcy plan to sell the carrier's
assets to Volo, saying the proposal was not enough to pay
VARIG's more than BRL7 billion -- US$3 billion -- of debt.

Representatives of VARIG workers and pensioners, and principal
government creditors have agreed to accept Volo's offer.

Volo and the airline's unions challenged the voting results and
asked the Brazilian Court for a recount.  According to Reuters,
Marcelo Bottini, VARIG's chief executive officer, complained
that creditors with "little financial stake" were given the same
voting power as larger creditors.  He underscored that the
larger creditors voted for Volo's offer.

Bloomberg News reports that Judge Ayoub invalidated votes cast
by 17 parties, including 16 entities affiliated with General
Electric Co.  Judge Ayoub said those votes don't count because
the parties sold their debt in June, Adriana Brasileiro at
Bloomberg News says.

"Without these votes, we have a very clear reflection of the
wish of creditors, which is for the company to be sold and to
recover," Judge Ayoub told reporters at a news conference, Ms.
Brasileiro relates.

Volo initially offered to pay BRL277,000,000 -- US$127,000,000
-- for VARIG's assets and invest up to US$485,000,000 based on a
timetable contained in a business plan.

Volo revised its offer to give creditors an option to receive
cash instead of bonds, Bloomberg writer Romina Nicaretta says.
Volo intends to satisfy a portion of VARIG's debt with
BRL100,000,000 of 10-year bonds.

Volo, Ms. Nicaretta relates, agreed to improve its offer after
Deloitte Touche Tohmatsu, the Court-appointed judicial
administrator of VARIG, reported to the Brazilian Court earlier
this month that creditors would be better off if the airline is
liquidated.

Volo, which recently purchased VARIG's cargo unit, VARIG
Logistica S.A., is partially controlled by U.S. investment fund
MatlinPatterson Global Advisors.

Investnews (Brazil) reports that Cinzel Partners fund has
created a consortium of investors to come up with a
US$600,000,000 bid for VARIG.  Roberto Lima Netto, former
president of Brazilian steel maker Companhia Siderurgica
Nacional and representative of Cinzel, told O Estado de Sao
Paulo that the consortium intends to acquire as much as 30% of
VARIG's operations.  Cinzel will allow the airline's employees
to acquire the 20% while the remainder would be sold in a public
offering.

Volo has advanced more than US$11,000,000 in deposits to VARIG
to keep it flying.

                         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. (VARIG Bankruptcy News, Issue No. 26; Bankruptcy
Creditors' Service, Inc., 215/945-7000)


VARIG S.A.: Brazilian Government's Claim Gains Priority Status
--------------------------------------------------------------
A federal court in Brazil granted priority to the Brazilian
government's claims against VARIG, S.A., over the airline's
other creditors, Bloomberg News says, citing a report from O
Estado de S. Paulo.

The Brazilian government asserts claims against VARIG for back
taxes.  The bankrupt carrier owes the government
BRL3,500,000,000 -- US$1,570,000 -- Estado said.

According to Estado, the government sought relief because VARIG
failed to pay all taxes before filing for bankruptcy -- a
requirement under Brazilian law.

                         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. (VARIG Bankruptcy News, Issue No. 25; Bankruptcy
Creditors' Service, Inc., 215/945-7000)




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


AIMCO CLO: Proofs of Claim Filing Deadline Is Set for Aug. 10
-------------------------------------------------------------
Aimco CLO, Series 2001-A's creditors are required to submit
proofs of claim by Aug. 10, 2006, to the company's liquidators:

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

Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Aimco CLO's shareholders agreed on June 22, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


ALCO 1: Creditors Must Present Proofs of Claim by Aug. 10
---------------------------------------------------------
Alco 1 Limited's creditors are required to submit proofs of
claim by Aug. 10, 2006, to the company's liquidators:

   Mark Wanless
   Liam Jones
   Maples Finance Jersey Limited
   2nd Floor Le Masurier House, La Rue Le Masurier
   St. Helier, Jersey JE2 4YE

Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Alco 1's shareholders agreed on June 29, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law
(2004 Revision) of the Cayman Islands.


AMETHYST PROPERTIES: Claims Filing Deadline Is on Aug. 10
---------------------------------------------------------
Amethyst Properties Corp.'s creditors are required to submit
proofs of claim by Aug. 10, 2006, to the company's liquidators:

   Mark Wanless
   Liam Jones
   Maples Finance Jersey Limited
   2nd Floor Le Masurier House, La Rue Le Masurier
   St. Helier, Jersey JE2 4YE

Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


AUGUSTA FUNDING: Creditors Must File Proofs of Claim by Aug. 10
---------------------------------------------------------------
Augusta Funding Limited VIII's creditors are required to submit
proofs of claim by Aug. 10, 2006, to the company's liquidators:

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

Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Augusta Funding's shareholders agreed on June 27, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


DIAMOND INVESTMENT: Filing of Proofs of Claim Is Until Aug. 10
--------------------------------------------------------------
Diamond Investment Grade CDO II, Ltd.'s creditors are required
to submit proofs of claim by Aug. 10, 2006, to the company's
liquidators:

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

Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Diamond Investment's shareholders agreed on June 27, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


MARTIN ASSET: Deadline for Proofs of Claim Filing Is on Aug. 10
---------------------------------------------------------------
Martin Asset Funding Corp.'s creditors are required to submit
proofs of claim by Aug. 10, 2006, to the company's liquidators:

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

Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


MERCURY CAPITAL: Proofs of Claim Filing Is Until Aug. 10
--------------------------------------------------------
Mercury Capital Company Limited's creditors are required to
submit proofs of claim by Aug. 10, 2006, to the company's
liquidators:

   Mark Wanless
   Liam Jones
   Maples Finance Jersey Limited
   2nd Floor Le Masurier House, La Rue Le Masurier
   St. Helier, Jersey JE2 4YE

Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Mercury Capital's shareholders agreed on June 28, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


NEW SSB: Creditors Have Until Aug. 10 to File Proofs of Claim
-------------------------------------------------------------
New SSB Holdings, Inc.'s creditors are required to submit proofs
of claim by Aug. 10, 2006, to the company's liquidator:

   Tetsuya Hishida
   Maples Finance Limited
   P.O. Box 1093, George Town
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

New SSB's shareholders agreed on June 27, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


S&N CAPITAL: Proofs of Claim Filing Deadline Is on Aug. 10
----------------------------------------------------------
S&N Capital Co. Ltd.'s creditors are required to submit proofs
of claim by Aug. 10, 2006, to the company's liquidators:

   Mark Wanless
   Liam Jones
   Maples Finance Jersey Limited
   2nd Floor Le Masurier House, La Rue Le Masurier
   St. Helier, Jersey JE2 4YE

Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

S&N Capital's shareholders agreed on June 16, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


SSB HOLDINGS: Last Day to File Proofs of Claim Is on Aug. 10
------------------------------------------------------------
SSB Holdings, Inc.'s creditors are required to submit proofs of
claim by Aug. 10, 2006, to the company's liquidator:

   Nobuhiro Sakano
   Maples Finance Limited
   P.O. Box 1093, George Town
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

SSB Holdings' shareholders agreed on June 27, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


TLIBD LTD: Last Day for Proofs of Claim Filing Is on Aug. 10
------------------------------------------------------------
TLIBD, Ltd.'s creditors are required to submit proofs of claim
by Aug. 10, 2006, to the company's liquidators:

   Mark Wanless
   Liam Jones
   Maples Finance Jersey Limited
   2nd Floor Le Masurier House, La Rue Le Masurier
   St. Helier, Jersey JE2 4YE

Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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




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


VTR GLOBAL: Moody's Rates US$275MM Sr. Secured Facilities at B1
---------------------------------------------------------------
Moody's Investors Service assigned a B1 corporate family rating
to VTR Globalcom S.A., as well as to its proposed up to US$725
million senior secured credit facilities.  The proceeds of the
transaction will be used to repay existing debt and general
corporate purposes, including capital expenditures.  This is the
first time Moody's has rated VTR. The rating outlook is stable.

"The ratings reflect the company's small size and negative free
cash flow as well as the fact that management is allowed to
distribute excess funds to shareholders, if financial covenants
are met" says analyst Nymia Almeida.  "Supporting the rating are
VTR's strong market position in the Chilean cable television
sector and sound credit protection measures for its rating
category."

Moody's assigned these ratings:

   -- Corporate Family Rating: B1;

   -- Up to US$225 million equivalent (Chilean pesos) A
      term loan facility with final maturity in 2013: B1;

   -- US$475 million B term loan facility with final maturity
      in 2014: B1; and

   -- Up to US$25 million equivalent (Chilean pesos)
      revolver facility with final maturity 6.5 years after
      the first drawdown date: B1.

VTR is a small company, with revenues of US$492 million and
EBITDA of US$167 million for the last twelve months ended
March 31, 2006.  According to Moody's projections, VTR will have
negative free cash flow in 2006, turning positive in 2007.
However, the rating agency expects credit metrics to remain
sound in 2006 -- if the full US$725 million were to be drawn at
closing date, total debt/EBITDA ratio would be at approximately
3.8 times and EBITDA to interest expense at over 2.3 times,
based on operating cash flow for first three months of 2006 on
an annualized basis and pro-forma interest expense.  It should
also be mentioned that at closing, VTR's leverage ratio should
be at 2.8 times since it will only drawdown in full the US$475
million B term loan facility out of the US$725 million total
facilities.  In 2006, Moody's expects the company's operating
cash flow margin to reach over 35%.

Moody's expects VTR's revenues to continue to grow due to low
cable and broadband penetration in Chile, assisted by the
country's economic stability.  VTR's timely action in launching
new products has given it the clear time-to-market advantage,
enhancing market position.  Moody's also expects the 2005
acquisition of Metropolis Intercom S.A. to help VTR to augment
earnings.  Moody's expects data services to be VTR's main growth
driver.

The company's main business challenge is to improve service
quality through an upgrade of its network for digitalization and
increase of bi-directionality. This upgrade represents a
significant portion of the capital expenditures planned for the
next four years. The company's main marketing challenge is to
increase the penetration of all products within its footprint in
a competitive telecommunications market environment.

The stable outlook incorporates the intentions of the
shareholders to keep leverage at modest levels. The ratings
could see upward pressure if VTR posts meaningful positive free
cash flow and Debt/EBITDA falls below 2 times at the same time
as the company maintains its competitive strengths. A lower pace
of revenue generating unit growth leading to lower revenues and
profitability, with consequent deterioration in the company's
credit protection metrics, could lead to negative ratings
pressure.

Eighty-percent-owned by indirect wholly-owned subsidiaries of
U.S.-based Liberty Global (rated Ba3) and 20%-owned by
Cristalerias de Chile S.A., VTR started its cable TV operations
in 1993.  Today, VTR holds an 89% market share in video, 13%
share in telephone lines in service (31% within its footprint)
and 43% in residential broadband internet. VTR was the first
firm to offer a "triple play" of cable, voice, and data services
in Chile, back in 2001, and has approximately 1.5 million RGUs
as of March 2006.  VTR is headquartered in Santiago, Chile.




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


ECOPETROL: Inks Energy Cooperation Pact With Petroecuador
---------------------------------------------------------
The state-owned energy companies of Ecuador and Colombia,
Petroecuador and Ecopetrol S.A., have signed a five-year
partnership agreement on July 18 to jointly develop energy
projects, Dow Jones Newswires reports.

Ecuador's Energy Minister Ivan Rodriguez and his counterpart
Luis Ernesto Mejia, announced at a press conference in Quito,
that both energy companies will embark on projects that involve:

   -- exploration,
   -- production, and
   -- refining.

According to Dow Jones, Mr. Rodriguez enjoined Ecopetrol to
auction for the Napo crude that came from blocks that were
previously operated by Occidental Petroleum.

                      About Petroecuador

Petroecuador, according to published reports, is faced with
cash-problems.  The state-oil firm has no funds for maintenance
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
that Petroecuador has been inefficient and non-transparent in
its accounts.

                        About Ecopetrol

Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government.  The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products.  Ecopetrol is Latin America's
fourth-largest integrated-oil concern.  Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas.

On June 27, 2006, Fitch Ratings revised the rating outlook of
the long-term foreign currency issuer default rating of
Ecopetrol S.A. to Positive from Stable.  This rating action
follows the recent revision in the Rating Outlook to Positive
from Stable of the 'BB' foreign currency IDR of the Republic of
Colombia.  Ecopetrol's IDR remain strongly linked with the
credit profile of the Republic of Colombia.


* COLOMBIA: Cartagena Siglo Gets Wastewater Pipeline Project
------------------------------------------------------------
The local government of Cartagena, Colombia, awarded a US$15-
million wastewater discharge pipeline project to Cartagena Siglo
XXI, Business News Americas reports, citing company spokesperson
Mabel Silveira.

The contract is part of the World Bank's US$85-million loan for
the rehabilitation of the Colombia-Cartagena water, sewerage and
environmental management project.

The Cartagena Siglo consortium is comprised of the companies:

     -- Cicon,
     -- Oticeca and
     -- Northem Construction Limited.

The consortium has 24 months to complete constructing a pipeline
from the southeast of Cartagena to Punta Canoa, where water will
be treated before being pumped via an underwater outlet over 4
kilometers out to sea, a large portion of which will be buried
under the seabed, BNamericas relates.

                       *    *    *

On May 30, 2005, Fitch Ratings affirmed Colombia's ratings as:

      -- Long-term foreign currency 'BB';
      -- Country ceiling 'BB';
      -- Local currency 'BBB-';
      -- Short-term 'B'.

Fitch said the Rating Outlook is Stable.




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


SPECTRUM BRANDS: Discloses Reduced 2006 Earnings Expectations
-------------------------------------------------------------
Spectrum Brands's preliminary forecast of fiscal third quarter
financial results indicated that full year 2006 earnings will be
substantially lower than the latest earnings guidance.

Spectrum Brands' disappointing third quarter performance was
attributable in large part to lower-than-expected sales volumes,
particularly in the company's European consumer battery
business.  Additionally, North American sales were negatively
impacted by lower-than-expected results from shaving and
grooming products at Father's Day and retail inventory
reductions on the part of several large customers in the
company's lawn and garden category.

Despite disappointing third quarter results, the company
anticipates it will be in compliance with its senior credit
facility debt covenants for the fiscal third quarter based on
its preliminary estimates.

Spectrum Brands has engaged Goldman Sachs and Co. as financial
advisor to assist the company in evaluating potential selective
asset sales designed to sharpen the company's focus on strategic
growth businesses, maximize long-term shareholder value, and
reduce outstanding indebtedness.  No assurance can be given that
any transaction will be pursued as a result of this review, or
if a transaction is pursued, that it will be consummated.

Spectrum Brands, Inc. -- http://www.spectrumbrands.com/-- is a
global consumer products company with a diverse portfolio of
world-class brands, including Rayovac, Varta and Remington.  The
Company manufactures and sells batteries, lawn and garden care
products, specialty pet supplies, shaving and grooming products,
household insecticides, personal care products and portable
lighting.  The Company's manufacturing and product development
facilities are located in the United States, Europe, China and
Latin America.  The company operates in 13 Latin American
nations including El Salvador, Guatemala, Costa Rica, Colombia
and Nicaragua.

                        *    *    *

As reported in the Troubled Company Reporter on June 15, 2006,
Standard & Poor's Ratings Services affirmed its ratings on
Spectrum Brands Inc., including the 'B-' corporate credit
rating.  At the same time, the ratings were removed from
CreditWatch, where they were placed with negative implications
April 6, 2006, following the company's substantially lowered
earnings guidance for the second quarter.  The rating outlook is
negative.

As reported in the Troubled Company Reporter on June 13, 2006,
Moody's Investors Service downgraded all ratings of Spectrum
Brands, Inc.  The outlook for the ratings is stable.  This
action concluded the review for downgrade that was initiated on
April 7, 2006.  Ratings downgraded include Corporate family
rating to B3 from B2; US$300 million senior secured revolving
credit facilities to B2 from B1; US$1.2 billion senior secured
term loan facilities to B2 from B1; US$700 million senior
subordinated notes due 2015 to Caa2 from Caa1, and US$350
million senior subordinated notes due 2013 to Caa2 from Caa1.


SPECTUM BRANDS: S&P Says Low 2006 Earnings Won't Affect Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and
outlook on Spectrum Brands Inc. (B-/Negative/--) will not be
immediately affected following the company's announcement that
its full year 2006 earnings will be substantially lower than
its previous guidance provided in May 2006 and that it has
engaged Goldman Sachs and Co. as financial advisor to evaluate
potential selective asset sales.

The revised guidance represents the fourth negative revision
over the past 12 months and continues to reflect the company's
significant operating challenges.  While Spectrum Brands is
expected to remain in compliance with its financial covenants
for the third quarter of fiscal 2006, its operations continue to
be affected by a weak European consumer battery business and
inventory reductions by key retailers.  The ratings could be
lowered over the near term if the company is not able to
significantly reduce debt leverage through asset sales or
maintain adequate liquidity by stabilizing its operations.




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


FALCONBRIDGE: Raised Phelps Dodge Bid Cues S&P to Watch Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services revised the CreditWatch
implications on Inco Ltd. and Falconbridge Ltd. to developing
from positive after Phelps Dodge Corp. (BBB/Watch Neg/A-2)
announced an increase in the debt-financed cash consideration
for the two companies.  CreditWatch with developing implications
means the ratings may be raised, lowered, or affirmed.

"Because there are multiple competing bids outstanding--both
friendly and hostile--for Inco and Falconbridge, the ratings on
the companies are exposed to several potential outcomes,"
Standard & Poor's credit analyst Donald Marleau said.

First, the ratings on both companies would be affirmed at 'BBB-'
if the three-way transaction with Phelps Dodge is consummated.
The three-way transaction faces some execution risk, with
various regulatory approvals in Canada and Europe still
outstanding.  More important, however, is the uncertainty
surrounding the required consent of Phelps Dodge shareholders, a
majority of whom must approve the transaction.

"It is possible that Inco acquires a majority of Falconbridge on
July 27, 2006, yet the Phelps Dodge shareholders reject the
subsequent acquisition of the combined nickel producers in
September 2006," Mr. Marleau said.

If Phelps Dodge shareholders reject the transaction, the 'BBB-'
ratings on the combined Inco and Falconbridge entity face a
small risk of being lowered because of increased debt leverage,
notwithstanding very strong cash flow stemming from the expected
strength of nickel and copper markets.  Because Inco has lowered
its minimum take-up condition to 50.01%, it may have only
restricted access to the significant cash balances and cash flow
at Falconbridge.  Regardless, Inco's stand-alone cash flow is
expected to be adequate to reduce the Falconbridge acquisition
debt, and bring its financial profile back in line with the
investment-grade rating.  In addition, its limited control could
slow the pace of operational changes necessary to achieve the
US$550 million synergies between the companies, although this is
a smaller risk and decidedly less likely because of the
significant potential for value creation for all investors.

The ratings on Inco could be raised in the two-way scenario,
whereby Phelps Dodge acquires Inco without Falconbridge,
depending on Phelps Dodge's response to the potential
aggressiveness of competing bids.  The ratings on Inco could
also be raised if it is acquired by Teck Cominco Ltd. (BBB/Watch
Neg/--), which currently has a hostile takeover bid outstanding
for Inco for equity and CDN$6.4 billion of cash consideration.
The ratings on Falconbridge may be raised if it is acquired by
Xstrata PLC (BBB+/Watch Neg/--), although the ratings will be
determined only after the company reveals its plans for raising
equity to reduce the debt used to fund its all-cash offer of
US$16.2 billion.


PHELPS DODGE: Revised Terms Cues S&P to Put Ratings on NegWatch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BBB' corporate
credit and 'A-2' commercial paper ratings on Phelps Dodge Corp.
on CreditWatch with negative implications.  The action followed
the announcement that Phelps, Inco Ltd., and Falconbridge Ltd.
have taken action to improve the terms of their original three-
way combination offer announced June 26, 2006.  At that time,
they agreed to merge in a combination valued at US$56 billion,
including debt, preferred stock, and minority interest less cash
and investments in unconsolidated affiliates.  The deal also
included a US$5 billion share-repurchase program to be completed
within a year.  The senior unsecured bond ratings remain on
CreditWatch with negative implications, where they were placed
June 26, 2006, reflecting the potential structural subordination
of these bonds at the parent company relative to obligations at
the Inco and Falconbridge subsidiaries.

Under terms of the new offer, Phelps will increase its cash
offer for Inco by CDN$2.75 per share, with Inco increasing its
cash offer for Falconbridge by CDN$1 per share.  In addition,
Falconbridge declared a CDN$0.75 per-share special cash dividend
to its common equity holders. Despite the expectation that
copper and nickel prices will remain reasonably robust for the
near term, aiding in the ability to meaningfully reduce debt,
the increased leverage (US$1.7 billion) versus the original
offer and the willingness of management to add risk to the
balance sheet in a highly cyclical and commodity-oriented
business expresses a more aggressive financial policy than
Standard & Porr's had originally anticipated.  The existing
rating incorporated little tolerance in the three-way
combination for an increased all-debt offer.

"It is likely that we will lower the corporate credit rating one
notch, based on the current offer and amount of debt employed,"
Standard & Poor's credit analyst Thomas Watters said.
"Depending on the final corporate structure and whether or not
Phelps receives guarantees from its subsidiaries, the senior
unsecured bonds could be notched out of the investment-grade
category."

Mr. Watters added, "We continue to believe, however, that a
three-way merger meaningfully enhances Phelps' business profile,
by improving its operational, geographic, and metals diversity
while providing significant synergies.  If Phelps succeeds in
acquiring Inco and not Falconbridge, we will likely affirm the
'BBB' rating on Phelps and upgrade the corporate rating on Inco
to 'BBB', with most likely a stable outlook."

Standard & Poor's will continue to monitor the proposed merger,
as further, more aggressive bids are quite possible, given that
Teck Cominco Ltd. (BBB/Watch Neg/--) has an offer outstanding
for Inco, and Xstrata PLC, a 20% owner in Falconbridge, has an
outstanding offer.


* DOMINICAN REPUBLIC: Tax Agency Wants Verizon to Pay Sales Tax
---------------------------------------------------------------
The Dominican Republic's Internal Taxes Agency demands a US$500
million in taxes from the sale of Verizon Communications Inc.'s
assets in the country to Telmex aka Telefonos de Mexico SA,
according to local paper Listin Diario.

The tax agency has formally asked the Dominican
Telecommunications Institute -- Indotel -- to hinder the
US$2.062-billion deal unless the capital gains tax is paid,
Listin Diario says.

According to the Dominican Today, Verizon is the Dominican
Republic's largest company.  It has more than 752,000 fixed
telephone, and 1.8 million cell phone customers up to 2005.  In
addition to mobile and fixed telephone services, Verizon
provides Internet services to about 2.7 million customers.

Indotel has given in May a 60-day completion period for Verizon
to close the sale.  As such, Verizon is pressured to pay the tax
agency's demands before Indotel's approval will become moot.

                       *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

   -- Short-term Issuer Default Rating: B.

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

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

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




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


PETROECUADOR: Inks Energy Cooperation Pact With Ecopetrol
---------------------------------------------------------
The state-owned energy companies of Ecuador and Colombia,
Petroecuador and Ecopetrol S.A., have signed a five-year
partnership agreement on July 18 to jointly develop energy
projects, Dow Jones Newswires reports.

Ecuador's Energy Minister Ivan Rodriguez and his counterpart
Luis Ernesto Mejia, announced at a press conference in Quito,
that both energy companies will embark on projects that involve:

   -- exploration,
   -- production, and
   -- refining.

According to Dow Jones, Mr. Rodriguez enjoined Ecopetrol to
auction for the Napo crude that came from blocks that were
previously operated by Occidental Petroleum.

                      About Ecopetrol

Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government.  The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products.  Ecopetrol is Latin America's
fourth-largest integrated-oil concern.  Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas.

On June 27, 2006, Fitch Ratings revised the rating outlook of
the long-term foreign currency issuer default rating of
Ecopetrol S.A. to Positive from Stable.  This rating action
follows the recent revision in the Rating Outlook to Positive
from Stable of the 'BB' foreign currency IDR of the Republic of
Colombia.  Ecopetrol's IDR remain strongly linked with the
credit profile of the Republic of Colombia.

                     About Petroecuador

Petroecuador, according to published reports, is faced with
cash-problems.  The state-oil firm has no funds for maintenance
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
that Petroecuador has been inefficient and non-transparent in
its accounts.




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


* GUATEMALA: Reaches Tax Agreement With Glamis Gold
---------------------------------------------------
Glamis Gold Ltd. finalized an agreement with the Guatemalan
Government to begin payment of income tax effective
July 1, 2006.  The agreement culminates discussions initiated by
the company with the government and facilitated by the World
Bank and International Finance Corp.  The Guatemalan Congress
will be asked by President Berger to dedicate tax payments
derived under this agreement to the Department of San Marcos,
which includes the communities in the proximity of the Marlin
Mine, to be used for local services, and civil and social
improvements.

Kevin McArthur, President and CEO of Glamis, praised the
Guatemalan government's participation in the discussions and
thanked the World Bank and IFC for their role in facilitating
the undertaking.  "We intend to remain part of the social and
economic fabric of Guatemala for a long time.  This agreement
recognizes the mutual responsibilities of the government and
Glamis for the continued betterment of the local communities and
Guatemala."

The temporary exemption from the payment of income tax would
have expired at the end of 2007.  The earlier payment of the
income tax will accelerate improvements to services and
infrastructure in areas near the Marlin Mine and complement the
employment and economic benefits currently being provided.  The
funds will also be used for increased capacity building within
government ministries with mining responsibilities.  Assuming
US$600 gold and US$10 silver prices the income tax will be
approximately US$4.8 million in 2006 and US$10 million in 2007
based on current production guidance.

Over 600 Guatemalans are employed by Glamis at the mine that
began commercial production in December 2005.  The Marlin Mine
is expected to average approximately 250,000 ounces of gold and
4 million ounces of silver production annually over the current
ten-year mine life.

                     About Glamis Gold

Glamis Gold Ltd. - http://glamis.com/-- is a premier
intermediate gold producer with low cost mines and development
projects in Nevada, Mexico and Central America. Plans call for
growth to over 700,000 ounces of gold by 2007.  The company
remains 100 percent unhedged.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

                        *    *    *

Standard & Poor's Ratings Services raised on July 17, 2006, its
long-term foreign currency sovereign credit rating on the
Republic of Guatemala to 'BB' from 'BB-' and its long-term local
currency rating to 'BB+' from 'BB'.  Standard & Poor's also
affirmed its 'B' short-term
foreign and local currency sovereign credit ratings on the
republic.  The outlook on the ratings is stable.




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


* HONDURAS: Report Says There's 5.4% Boost in Economic Activity
---------------------------------------------------------------
Shirley Villalobos at Honduras This Week wrote that Honduras
experienced a 5.4% growth in economic activity between January
and April of 2006, compared to 3.4% for the same period in 2005,
according to a recent report published by the Central Bank of
Honduras.

The report underscored that the economic growth was greatly
powered by commercializing agricultural and manufacturing
products.  Honduras also posted the lowest inflation in Central
America, after El Salvador.

Ms. Villalobos relates that in comparison with the previous
period, the manufacturing industry reported a general 2.8%
growth.  Some influential sub areas include basic metal industry
with an increase of 79.2% and clothing with 17.2%.  There has
been a considerable number of private construction permits
encouraging the cement industry, which grew by 28.3%.  However,
the textile production slowed down its activity compared to 2005
because of a decrease in demand.

Agriculture registered strong production growth of 31.3%.
Increased coffee prices on the international and local markets
have encouraged the producers, which during the last months had
stored their production due to low market prices, but now have a
more active role on the market, Ms. Villalobos continues.  Also,
the poultry industry has experienced a growth in chicken (16.5%)
and egg (6.8%) production.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

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




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


* PANAMA: Congress Approves Canal Expansion
-------------------------------------------
Panama's Congress has formally approved a US$5-billion plan to
widen the Panama Canal, its biggest expansion since it opened in
1914, the Kenya Broadcasting Corp. states.

The expansion will accommodate bigger and modern cargo ships
that currently wait hours before they can pass through the
canal.

A binding referendum will be held in Panama later this year to
determine the voters' opinion of the project, Kenya Broadcasting
says.

The 80-km (50-mile) Panama Canal, which was controlled by the
United States until 1999, handles nearly 5% of global trade.
But with wider locks and deeper and wider access canals it could
take ships carrying up to 10,000 containers, Kenya Broadcasting
says.

The Canal Authority had said in April that it could pay US$5.25
billion for the project, partly from its own funds, and partly
by borrowing US$2.3 billion.  The Canal Authority estimated that
the country could expect a US$1.4 billion annual net income from
tolls charged on ships for using the canal.  The money would
allow the organization to pay back the proposed debt within 10
years.  The Canal Authority also said in February that the
expansion project could create up to 10,000 new jobs in the
construction phase.

Critics of the project said that when the work is finished in
2014-15, the canal will still be inadequate.  An alternative
plan of new terminals at the Pacific and Atlantic ends of the
canal to handle containers in transit is proposed, Kenya
Broadcasting reports.

                        *    *    *

Fitch Ratings assigned these ratings on Panama:

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


* PANAMA: Pres. Sets Referendum for Canal Expansion on Oct. 22
--------------------------------------------------------------
Panama's citizens will be able to vote on the proposed Panama
Canal expansion in a national referendum that Pres. Martin
Torrijos set for Oct. 22, 2006, Business News Americas reports.

Pres. Torrijos stamped on July 17 the Panama Canal expansion
bill that the national assembly unanimously passed on July 14,
prompting the mandate of a national referendum.

The Panama Canal Authority or ACP proposed to build a third set
of locks to accommodate bigger cargo ships and the estimated
investment could reach US$5.25 billion.  Once approved,
authorities expect to begin construction of the lock system in
2007 and to be operating by 2014, BNamericas relates.

Panama's vice president Samuel Lewis Navarro told BNamericas
that ACP may consider to hasten the canal expansion as studies
revealed that its capacity will be exceeded by 2012 due to
growing demand, BNamericas says.

According to the Panama Canal/Universal Measurement System, the
ACP has further raised the tonnage moved through the canal.  In
the second quarter of the 2006 fiscal year, figures increased
5.7% from 70.9M tons to 75M tons, BNamericas says.

                        *    *    *

Fitch Ratings assigned these ratings on Panama:

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




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


PETROLEO BRASILEIRO: Launches First Service Station in Paraguay
---------------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras launched July 18 its
first service station in Asuncion, Paraguay.  The inauguration
marked the commencement of the company's activities in the
Paraguayan fuel retail distribution sector.

The Ciclovia service station, located on Asuncion's main avenue,
is the first of 129 stations Petrobras purchased in 2005, in an
asset purchase process that also involved Colombia and Uruguay.

The ceremony was led by Petrobras' president, Jose Sergio
Gabrielli de Azevedo, who was accompanied by the company's
International Area director, Nestor Cervero, and by its general
manager in Paraguay, Erios Mathias.

More than 100 jobs were created during the station's
refurbishment process.  It will now offer four types of liquid
fuels available in the market, all with Petrobras' value added:

   -- Special Additized Gasoline,
   -- Super Additized Gasoline,
   -- Turbo Additized Gasoline, and
   -- Diesel.

The service station is located on the corner of two avenues:
Mariscal Lopez and Boggiani, also known as "Ciclovia."  It
offers several facilities to consumer in its modern
installations, such as:

   -- the first Spacio 1 convenience store,
   -- a Lubrax lube center,
   -- a drugstore, and
   -- ATMs.

Petrobras will also launch its corporate brand at the remaining
128 service stations distributed throughout Paraguay.  The
investments are in line with the company's goal to reinforce its
leadership position in Latin America.

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.




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


KMART: Agrees with Wallace to Stay Proceedings Until Aug. 31
------------------------------------------------------------
In November 2005, the U.S. Bankruptcy Court for the Northern
District of Illinois signed an agreed case management
order between Kmart Corp. and Martin Wallace, wherein
certain dates were set for the parties to:

    * complete class certification discovery;
    * identify expert witnesses; and
    * complete expert discovery.

After rendering its final decision as to class certification,
the Court set a further scheduling conference.

In April 2006, the Court signed a stipulation vacating the dates
set in the Agreed Case Management Order and staying the
proceedings in the action until June 1, 2006, after which the
parties agreed to submit a further proposed management order.

The Stipulation was entered into to allow the parties adequate
time to resolve the matter and the related case of Shirley
Clarkson against Kmart, which is pending in the Superior Court
of the State of California for the County of San Diego.

In May 2006, the parties participated in mediation before
Mediator Mark Rudy.  The case was not settled at the mediation.
However, the parties accepted the mediators' proposed bracket
within which they continued their settlement negotiations with
the assistance of the mediator.

The parties want to continue their efforts to informally resolve
the matter.

In a Court-approved stipulation, the parties agree:

    -- to further stay all proceedings in the action through
       Aug. 31, 2006;

    -- not to serve any written discovery or deposition notices
       on or before Aug. 31, 2006;

    -- not to file any further requests on or before August 31;

    -- that the status hearing is continued to a later date; and

    -- if the matter is not settled, the parties will deliver to
       the Court an amended agreed case management order by
       Sept. 22, 2006.

On Sept. 28, 2001, Mr. Wallace filed a lawsuit against
Kmart in the Superior Court of California for the
County of Los Angeles.  The lawsuit sought certification of a
putative class of Kmart assistant store managers who were
misclassified as exempt from California wage and hour laws and
overtime requirements.

The California Lawsuit alleged three causes of action seeking:

   (1) recovery for unpaid wages, penalties, pre-judgment
       interest, and waiting time penalties, and attorney's fees
       and costs;

   (2) an order enjoining Kmart from engaging in the alleged
       unlawful practices, restitution of all money due to the
       putative class members, an order declaring that Kmart's
       actions were unlawful, an accounting to determine the
       amount of money owed to each affected employee, and an
       order requiring Kmart to identify each employee who
       worked for the company for four years prior to the filing
       of the lawsuit through time of judgment; and

   (3) amounts converted by Kmart, plus interest, and punitive
       and exemplary damages.

Kmart has denied the allegations.

Due to Kmart's bankruptcy filing, the California Lawsuit was
dismissed.  Mr. Wallace subsequently filed a prepetition claim
asserting the same allegations against Kmart and seeking
US$55,315,740 in damages for the period from Sept. 28, 1997,
through Jan. 22, 2002.  Mr. Wallace also filed an administrative
claim seeking US$19,905,030 in damages for the period from
Jan. 22, 2003, through May 6, 2003.

                      About Kmart Corp.

Headquartered in Troy, Michigan, Kmart Corporation nka KMART
Holding Corporation -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam.  The Company filed for chapter
11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on
May 6, 2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden,
Arps, Slate, Meagher & Flom, LLP, represented the retailer in
its restructuring efforts.  The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection.  Kmart bought Sears, Roebuck &
Co., for US$11 billion to create the third-largest U.S.
retailer, behind Wal-Mart and Target, and generate US$55 billion
in annual revenues.  The waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act expired on Jan. 27, without
complaint by the Department of Justice.  (Kmart Bankruptcy News,
Issue No. 113; Bankruptcy Creditors' Service, Inc., 215/945-
7000)


KMART CORP: Says Settlement Pacts with Rudmann, et al. Were Done
----------------------------------------------------------------
Kmart Corp. asks the U.S. Bankruptcy Court for the Northern
District of Illinois to deny the request of John Miceli and Juan
Reyes' counsel, Max Rudmann, Esq., in Boca Raton, Florida,
because of his failure to allege any specific injury or damage
to him or to his claimants, based on Kmart's inadvertent sending
of the checks directly to Messrs. Miceli and Reyes.

William J. Barrett, Esq., at Barack Ferrazzano Kirschbaum
Perlman & Nagelberg LLP, in Chicago, Illinois, relates that once
Kmart realized that the checks were directly mailed to Messrs.
Miceli and Reyes, Kmart's counsel expressed its willingness to
resolve problems related to fees possibly owing to Mr. Rudmann
from the checks.

Instead of advising Kmart's counsel of any specific issues,
however, Mr. Rudmann filed its Motion to Enforce Pacts.

Mr. Barrett informs the Court that the settlement agreements
have been complied with, and there is nothing left to enforce.

              Kmart Wants Rudmann Sanctioned

Pursuant to Rule 9011 of the Federal Rules of Bankruptcy
Procedure, Kmart asks the Court to impose sanctions against Mr.
Rudmann.

Mr. Barrett asserts that Mr. Rudmann falsely asserted that
Kmart's counsel has violated Sections 4.2 and 8.4 of the
Illinois Rules of Professional Conduct.

Mr. Barrett discloses that when it became apparent to Kmart that
the checks were mistakenly sent, Kmart's counsel e-mailed Mr.
Rudmann but he did not respond.  Kmart's counsel followed up on
June 1, 2006, asking Mr. Rudmann of any specific issues with
respect the handling of the checks.

"Rudmann might have responded to either message by asserting
that he had a lien against the payments made to his client for
the payment of his fee, but in fact he did not respond to
Kmart's queries," Mr. Barrett explains.

Mr. Barrett contends that Mr. Rudmann's allegations are patently
untrue.  Neither Mr. Barrett nor any partner at Barrack
Ferrazzano has had any contact with Mr. Rudmann's clients, Mr.
Barrett explains.

Mr. Rudmann also does not allege facts showing the purported
"contacts" to support his accusations but relies entirely on the
fact that Kmart mailed checks to two of his clients.

Under Rule 9011, every attorney that signs a pleading represents
to the Court that:

    (i) the pleading is not being presented for any improper
        purpose, like to harass;

   (ii) the claims and contentions are warranted by existing law
        or by a non-frivolous argument for the extension of
        existing law; and

  (iii) the factual allegations have evidentiary support.

Mr. Barrett points out that Mr. Rudmann's request fails to meet
the requirements of Rule 9011 because:

    -- there are no facts alleged or that could be proven to
       support the allegation that Kmart's counsel has had
       ex-parte communication with his clients;

    -- there is no law that would punish an attorney for his
       client mailing a check to the wrong address; and

    -- the purpose of Mr. Rudmann's request is solely to harass
       Kmart's counsel.

Moreover, Mr. Barrett asserts that Mr. Rudmann's conduct is not
only harassing and malicious, it is entirely unnecessary in
light of Kmart's willingness to consider resolving any problem.

Kmart seeks an award to compensate for the full costs of
bringing its request for sanctions, and in responding to Mr.
Rudmann's request.   Kmart also seeks further monetary sanction
sufficient to "deter repetition of such conduct or comparable
conduct by other similarly situated."

In 2004, Messrs. Miceli and Reyes entered into separate
settlement agreements with Kmart resolving their claims for
employment discrimination and violations of the Federal Medical
Leave Act.  The Court signed the agreed orders approving the
settlement agreements.

Mr. Rudmann told the Court that each agreement was based on
the understanding that settlement checks would be sent to him on
May 6, 2006.  However, payments were issued directly to Messrs.
Miceli and Reyes on May 13, 2006, in direct violation of
Illinois Supreme Court Rules of Professional Conduct 4.2.

Rule 4.2 states that during the course of representing a client,
a lawyer will not communicate or cause another to communicate on
the subject of the representation with a party the lawyer knows
to be represented by another lawyer in that matter unless the
first lawyer has obtained the prior consent of the lawyer
representing the other party, or as may otherwise be authorized
by law.

Kmart also did not follow customary practice which dictates that
settlement payments be issued in the client's and attorney's
names and sent to the attorney for deposit in a client trust
account to be distributed in accord with the retainer contract
between the Attorney and Client, Mr. Rudmann complained.

The agreements incorporate the provision that Kmart and its
counsel would abide by Rule 4.2, and customary practice
regarding payment of settlements.  Despite Kmart awareness of
Mr. Rudmann's representation, Kmart breached the agreements.

Mr. Rudmann asked the Court to enforce the settlement agreements
and:

    (1) direct Kmart to:

        * stop payment on the checks issued to Messrs. Miceli
          and Reyes; and

        * re-issue the checks -- this time properly addressed to
          him and Messrs. Miceli and Reyes;

    (2) issue sanctions against Kmart's counsel for violations
        of the Rules of Professional Conduct; and

    (3) award him attorney's fees and costs.

After filing his request with the Court, Mr. Rudmann sought to
resolve the issues with Messrs. Miceli and Reyes.

Mr. Reyes duly remitted attorneys' fees to Mr. Rudmann.  The
matter is, therefore, fully resolved as to Mr. Reyes.  However,
Mr. Rudmann was not able to resolve his issues with Mr. Miceli.

                      About Kmart Corp.

Headquartered in Troy, Michigan, Kmart Corporation nka KMART
Holding Corporation -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam.  The Company filed for chapter
11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on May 6,
2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps,
Slate, Meagher & Flom, LLP, represented the retailer in its
restructuring efforts.  The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection.  Kmart bought Sears, Roebuck &
Co., for US$11 billion to create the third-largest U.S.
retailer, behind Wal-Mart and Target, and generate US$55 billion
in annual revenues.  The waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act expired on Jan. 27, without
complaint by the Department of Justice.  (Kmart Bankruptcy News,
Issue No. 113; Bankruptcy Creditors' Service, Inc., 215/945-
7000)


MUSICLAND HOLDING: Wants Until Oct. 9 to Solicit Plan Votes
-----------------------------------------------------------
Musicland Holding Corp. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Southern District of New York to extend
the exclusive period by which they may solicit and obtain
acceptances for their Chapter 11 Plan through and including
October 9, 2006.

The Debtors' limited resources in the first months of their
Chapter 11 cases were deployed to achieve the fastest possible
disposition of their assets, Jonathan P. Friedland, Esq., at
Kirkland & Ellis LLP, in New York, tells the Court.  Since their
bankruptcy filing, the Debtors devoted effort to pursue matters
relating to:

   * a sale of substantially all of their assets to Trans World
     Entertainment Corporation;

   * the filing of sale procedure motions for hundreds of
     leases;

   * the conduct of two auctions with respect to those leases;

   * multiple round competitive bidding and selection process
     for a going-out-of-business sale liquidation agent;

   * procedures for the conduct of two separate rounds of going
     -out-of-business sales;

   * the resolution of numerous disputes with certain
     significant vendors and other parties-in-interest; and

   * the approval of a contested final postpetition financing
     order.

As previously reported, the Debtors filed a plan of liquidation
on May 12, 2006.  However, due to factors not entirely within
the Debtors' control, including the changing of hands of the
secured trade debt and the resultant change in representation of
that constituency, negotiations over the terms of a revised
consensual Plan were stalled, Mr. Friedland says.

Recently, however, those negotiations resumed and substantial
progress were made.  Mr. Friedland informs Judge Bernstein that
the Debtors need to accommodate the time needed to:

   -- revise the Plan to reflect the terms of the agreement
      ultimately reached;

   -- file and garner the Court's approval of a disclosure
      statement; and

   -- conduct solicitation of that amended Plan.

Mr. Friedland notes that the Debtors have discussed their
extension request with the Official Committee of Unsecured
Creditors and the Informal Committee of Secured Trade Vendors.
The Debtors believe that both committees support their request.

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


OCA INC: N.C. Regulator Wants N.C. Unit Lawsuit Continued
---------------------------------------------------------
The North Carolina State Board of Dental Examiners asks the
U.S. Bankruptcy Court for the Eastern District of Louisiana to
determine that the automatic stay under Section 362 of the
Bankruptcy Court does not apply to the claims asserted against
the Board by Orthodontic Centers of North Carolina, Inc., an
Oca, Inc., debtor-affiliate in a North Carolina case.

In the alternative, the Board asks the Court to lift the
automatic stay and to continue litigation and defense of those
claims.

The case is pending in the General Court of Justice, Superior
Court Division, County of Wake, State of North Carolina (Case
No. 97 CVS 2270).

Debtor OCS commenced the case seeking declaratory judgment and
judicial review, and specifically, an order restraining the
Board from conducting a hearing scheduled on April 17, 1997, in
which the Board alleged that certain dentists were engaged in a
working relationship in violation of N.C. Gen. Stat Section 90-
29(b)(11).  The Board alleged that OCS violated the proscription
of corporate ownership, management, and control of a dental
practice in violation of certain consent orders.

Dennis M. Laborde, Esq., at Baldwin Haspel LLC in New Orleans,
Louisiana, asserts that OCS' claims against the Board are not
stayed by operation of Sec. 362 of the Bankruptcy Code.
Additionally, a Board action in defense of those claims,
likewise, is not subject to the automatic stay.  The subject
matter in the North Carolina litigation is purely regulatory in
nature, and the purposes of the litigation is not in any way to
obtain possession of or exercise control over OCS' property.

                         About OCA

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

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




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


BRITISH WEST: Cuts Airline Services to Trinidad & Tobago
--------------------------------------------------------
British West Indies Airlines has reduced to one its services to
Trinidad & Tobago despite the support given by the House of
Assembly, according to local press.

Tourism Secretary Neil Wilson told the Trinidad & Tobago Express
that the decision was done at very short notice although there
had been a steady increase in passenger loads on the routes.

According to the Express, Trinidad and Tobago is left without a
direct link to some major cities in North America.  BWIA is
maintaining its weekly Thursday stopover to and from Washington.

"The withdrawal of the BWIA flights was a serious setback for us
here in Tobago since our arrivals from North America were
beginning to improve. This is a market that is critical to the
diversification away from the dependence on the United Kingdom
and Europe for the bulk of our international tourist arrivals,"
the tourism secretary told the Express.

The Assembly's Airlift Committee will meet with officials of
Delta Air Lines and Continental Air to negotiate air services
from Atlanta and Houston to Tobago, the Express reports.

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

The airline has reportedly been losing US$1 million a week due
to poor operational management.  An employee survey revealed
that lack of responsibility by the management is a major issue
in the company.  A number of key employees moved to other
companies caused by a deadlock in the company's negotiation with
its labor union.




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


* URUGUAY: La Teja Refinery Won't Double Production, PDVSA Says
---------------------------------------------------------------
Petroleos de Venezuela SA scales back a US$600 million expansion
of Uruguay's sole oil refinery, the La Teja plant, Bloomberg
News reports.

La Teja currently process 50,000 barrels of crude.  Petroleos de
Venezuela previously announced doubling the facility's
production capacity but settled for a 20% increase without
providing the press additional information.  The expansion is
expected to be completed in five to six years.

                About Petroleos de Venezuela

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.

                        *    *    *

Fitch Ratings assigns 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




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


ELECTRICIDAD DE CARACAS: Sale of Shares Could Reach US$18.7 Mil.
----------------------------------------------------------------
Director for institutional relations Juan Jose Azpurua at
Electricidad de Caracas told Business News Americas that the
electric company may possibly raise up to VEB40 billion or
US$18.7 million from the sale of some of its 80 million new
common class D shares on the Caracas exchange.

The public subscription for the shares, which account for 2.5%
of EDC's capital, was from June 29 to July 14.  The nominal
value for the new issuing was set at VEB503 per share,
BNamericas reports.

According to Mr. Azpurua, the estimated sale of the shares could
reach US$13 to US$16 million, however, a bigger amount came up
because the demand exceeded the supply of the shares, BNamericas
says.

"This sale of new shares is part of what we're doing to increase
our capital," Mr. Azpurua told BNamericas.

Mr. Azpurua related to BNamericas that the company has further
plans for another issuance of shares by year-end since
shareholders approved up to 5% capital increase in March.

The amount from the sale would most likely be invested in the
construction of La Raisa, a 200MW thermo plant in the Tuy river
valley outside of Caracas, Mr. Azpurua added to BNamericas.

EDC is a vertically integrated utility in Venezuela, operating
in electricity distribution, transmission, and generation in the
capital city of Caracas and its metropolitan area.  It is the
largest private electric utility in the country and is owned by
US-based AES Corp. (B+/Positive/--).  EDC reported net profits
of US$20.6 million from January to March, versus net losses of
US$26.9 the same period in 2005.

                        *    *    *

On Feb 9, 2006, Standard & Poor's Ratings Services affirmed its
'B' long-term corporate credit rating on C.A. La Electricidad de
Caracas aka EDC and its 'B' rating on Electricidad de Caracas
Finance B.V.'s US$260 million senior unsecured notes.  S&P said
the outlook is stable.

On Feb. 3, 2006, S&P raised the long-term local and foreign
currency sovereign credit ratings on the Bolivarian Republic of
Venezuela to 'BB-' from 'B+'.  The decision to raise the ratings
on Venezuela was supported by the continued sharp improvements
in Venezuela's external indicators, which are attributable to a
large current account surplus, a high level of international
reserves, and lower external debt in addition to buoyant
economic growth and the potential buyback of external debt.


PETROLEOS DE VENEZUELA: Budgets US$2B to Secure Refinery for Oil
----------------------------------------------------------------
Petroleos de Venezuela SA plans to spend US$2.18 billion through
2012 on refineries in Brazil, Uruguay, Cuba and Jamaica, to
secure markets for its heavy crude, Bloomberg News says.

Venezuela's heavy-crude has high sulfur and metals content,
requiring special refining units.

Petroleos de Venezuela and Uruguay's state oil company Ancap
signed the initial refinery agreement in December 2005.  The
expansion includes construction of units, which would allow for
the processing of Venezuelan heavy oil, Bloomberg relates.
Ancap will also start work next month on certifying reserves in
one of Venezuela's heavy oil blocks.

                About Petroleos de Venezuela

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, 2006, 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: La Teja Expansion Scaled Back to 20%
------------------------------------------------------------
Petroleos de Venezuela SA scales back a US$600 million expansion
of Uruguay's sole oil refinery, the La Teja plant, Bloomberg
News reports.

La Teja currently process 50,000 barrels of crude.  Petroleos de
Venezuela previously announced doubling the facility's
production capacity but settled for a 20% increase without
providing the press additional information.  The expansion is
expected to be completed in five to six years.

                About Petroleos de Venezuela

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, 2006, 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: Shell Inks New Joint Venture Agreement
--------------------------------------------------------------
Royal Dutch Shell and Petroleos de Venezuela SA's affiliate
Venezuelan Petroleum Corp. inked an agreement for the migration
of Urdaneta Oeste to joint venture Petroregional del Lago.

Meanwhile, Ali Rodriguez, Venezuela's foreign affairs minister,
met with Royal Dutch Shell chief executive officer Jeroen van
der Veer to study investment and cooperation possibilities in
technology for the Anglo-Dutch firm in the country, El Universal
reports, citing a statement from the Foreign Affairs Ministry.

Shell's CEO supported Venezuela's move to transfer operational
agreements into joint ventures, El Universal says.  Mr.
Rodriguez hopes new ideas may emerge in the future that are
useful for Shell's business operation in Venezuela.

Unofficial sources quoted by El Universal said that Shell wants
a stake in the Orinoco Oil Belt.

                 About Royal Dutch Shell

Headquartered in The Hague and incorporated in England and
Wales, Royal Dutch Shell plc -- http://www.shell.com/-- has
operations in more than 145 countries with businesses including
oil and gas exploration and production; production and marketing
of Liquefied Natural Gas and Gas to Liquids; manufacturing,
marketing and shipping of oil products and chemicals and
renewable energy projects including wind and solar power.  The
company is listed on the London, Amsterdam, and New York stock
exchanges.

                About Petroleos de Venezuela

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: Buying US$600 Million Boden Bonds from Argentina
-------------------------------------------------------------
The Venezuelan government plans to buy Argentina's Boden 2012
bonds for US$600 million in the next 15 days, Nosis reports.
Once the purchase is completed, Venezuela's total acquisition of
Argentina's public debts will total around US$3.5 billion.

Argentina will use the proceeds of the sale to pay off interest
due on US$2.286 million of Boden bonds on August 3.  Argentina
is also facing US$650 million in bonds maturing next month.

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

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

                        *    *    *

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


* VENEZUELA: Gets Argentine Coop's Invite to Issue Cabal Cards
--------------------------------------------------------------
Juan Angel Ciolli, president of Argentine autonomous cooperative
Cabal, proposed to the Venezuelan goverment incorporation to the
regional cooperative credit card program, El Universal reports,
citing the official news agency ABN.

El Universal says that the cooperative credit card program is
considered as a mechanism boosting the new South American
solidary integration model.

Mr. Ciolli was quoted by El Universal as saying that he already
held talks with with Venezuelan state-run banks, Bank for
Economic and Social Development and Industrial Bank of
Venezuela, and the Andean Bank for Development for them to start
issuing Cabal credit cards.

Cabal, founded in Argentina 26 years ago, is the only
cooperative credit card around the world.  Uruguay, Paraguay and
Brazil have joined this system, for a total of 53 associated
banking institutions, Mr. Ciolli told El Universal.  Cabal has
around 1 million credit card holders.

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


* VENEZUELA: Replacing Mining Licenses with Joint Ventures
----------------------------------------------------------
El Universal reports that Venezuela's Basic Industries and
Mining Ministry said in a statement it is reviewing "all of the
agreements and licenses, either operational or not, that were
granted to multinationals or domestic private corporations. This
move will allow the Venezuelan State to take absolute sovereign
control, while respecting the companies that do work and meet
their obligations correctly."

Víctor Alvarez, the mining industry minister was quoted by El
Universal as saying that the mining law reform is intended to
"create a regime of transition, whereby current mining licenses
will be replaced and we are to regain sovereignty over our
mineral resources."

The Ministry's statement also said that another fundamental of
the "new Venezuelan mining policy" is "working for consolidation
of alternate mining."  That goal would be accomplished by
"organizing both cooperatives and social production companies,
to ensure stability and settlement of thousands small miners,
while facilitating their participation."

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


                         ***********


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

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

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

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