TCRLA_Public/060721.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Friday, July 21, 2006, Vol. 7, Issue 144

                          Headlines

A R G E N T I N A

AEROPAGO SA: Trustee Verifies Creditors' Claims Until Aug. 25
CYAN SRL: Claims Verification Deadline Set for September 21
DIPELE SRL: Trustee Has Until Sept. 14 to Verify Claims
EABSA SA: Last Day for Verification of Claims is on Sept. 8
EL PUEBLO: Proofs of Claim Verification Continues Until Sept. 4

EMERGENCIAS SEMCA: Trustee Will Verify Claims Until Aug. 8
EMPRESA SOCIAL: Last Day for Claims Verification Is on Sept. 11
MA-CO CONSTRUCCIONES: Claims Verification is Until Sept. 22
ROGARSOL SA: Reorganization Proceeding Concluded
TRANSPORTADORA DE GAS: Will Restructure US$689-Million Debts

UNIQUE SA: Deadline for Verification of Claims is on Aug. 31

B A H A M A S

PINNACLE ENT: Commences Cash Tender Offer for Notes Due 2001
WINN-DIXIE: Can Retroactively Reject 77 Store Leases
WINN-DIXIE: Rejects Lifetime Hoan Prepetition Supply Agreement

B E R M U D A

GLOBAL CROSSING: Launches Video Endpoint Management Service
REFCO INC: Official Committee Wants Seat in Fee Panel
REFCO: Meridian IT Wants Decision on Smartnet Maintenance Pact
SEA CONTAINERS: Closes US$563 Mil. Silja Sale to Tallink Grupp

B O L I V I A

* BOLIVIA: Reviewing US$2.3-Billion Bid from Two Indian Firms

B R A Z I L

BANCO NACIONAL: Grants BRL17.8 Million Financing to Enersul
FIDELITY NATIONAL: Declares US$0.05 Per Share Quarterly Dividend
HSBC BRASIL: Wants to Capture 8% of Credit Card Market by 2007
PARMALAT GROUP: Wins Appeal Against Citigroup in US Court
TRANSAX INT'L: Net Revenues Reach US$1.035MM in Second Quarter

VARIG S.A.: Sold to Volo do Brasil for US$600,000,000

* BRAZIL: Agencia Nacional Defers Eighth Hydrocarbon Licensing
* BRAZIL: Government Moves Power Auction to October 10
* BRAZIL: Securitization Market Lures Growing No. Of Investors

C A Y M A N   I S L A N D S

ALMA HOLDINGS: Proofs of Claim Filing Deadline is on Aug. 11
BCP GLOBAL: Last Day for Proofs of Claim Filing is on Aug. 11
BOB LTD: Creditors Have Until Aug. 10 to File Proofs of Claim
DALTON DISTRESSED: Proofs of Claim Filing is Until Aug. 10
DALTON GLOBAL: Filing of Proofs of Claim is Until Aug. 10

DALTON GLOBAL(OFFSHORE): Claims Filing Deadline is on Aug. 10
FOCUS ALLOCATION: Creditors Must Present Claims by August 11
FOCUS GLOBAL: Creditors Must Submit Proofs of Claim by August 11
FOCUS STRATEGIC: Proofs of Claim Must Be Filed by August 11
FOCUS STRATEGIC II: Proofs of Claim Filing is Until Aug. 11

HEXAVEST LTD: Deadline for Proofs of Claim Filing is on Aug. 10

C O L O M B I A

* COLOMBIA: Moody's Says Banks Have Stable Financial Strength

D O M I N I C A N   R E P U B L I C

AES DOMINICANA: S&P Rates US$160 Mil. Sr. Notes Due 2015 at B-
FALCONBRIDGE: Xstrata Raises All Cash Offer to CDN$62.50 a Share
FLOWSERVE CORP: Repays US$25 Mil. of Debt in 2nd Quarter of 2006

* DOMINICAN REPUBLIC: CenBan Gov. Affirms Boost from US FTA

E C U A D O R

PETROECUADOR: OVL Inks MOU to Bid for Oil Blocks in Country

G U A T E M A L A

EMPRESA ELECRTICA: S&P Ups Foreign Curr. Rating to BB from BB-

J A M A I C A

KAISER ALUMINUM: Wants to Settle With Products Coverage Insurers

M E X I C O

AXTEL SA: Posts 14% Revenues Increase in Second Qtr. of 2006
EL POLLO: Extends Tender Offer Expiration to August 11
GRUPO IUSACELL: Still Implements Restructuring of Unit's Debt
MERIDIAN AUTOMOTIVE: Court to Hold Disclosure Hearing Today

N I C A R A G U A

* NICARAGUA: Government Doesn't Support Oil Deal with PDVSA

P A N A M A

* PANAMA: Five Firms File Documents for Pacific Port Concession

P E R U

CELLSTAR CORP: Earns US$2.7 Million in Second Quarter 2006

P U E R T O   R I C O

ADELPHIA: BofA Wants Stay Lifted to File Financing Documents
GLOBAL HOME: Will Auction Off WearEver Business on August 7
MUSICLAND HOLDING: Ct. Lifts Stay to Let Xerox Set-Off Deposit
MUSICLAND HOLDING: Moves for Summary Judgment on Deluxe's Lien
OCA INC: Has Until August 14 to Remove State Court Civil Actions

T R I N I D A D  A N D  T O B A G O

BRITISH WEST: CEO Not Surprised by Privatization Talks

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Nicaraguan Pres. Snubs AMUNIC Oil Pact

* VENEZUELA: Moves Closer to Signing Energy Accord with Trinidad

* Euler Sees Significant Increase In Global Business Failures
* IDB Grants US$60MM Loan for Mezzanine Infrastructure Fund

                         - - - - -

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


AEROPAGO SA: Trustee Verifies Creditors' Claims Until Aug. 25
-------------------------------------------------------------
Adalberto Corbelleri, the court-appointed trustee for Aeropago
S.A.'s reorganization proceeding, will verify creditors' proofs
of claim until Aug. 25, 2006.

Mr. Corbelleri will submit the verified claims in court as
individual reports on Oct. 6, 2006.  A general report that
contains an audit of Aeropago's accounting and banking records
will follow on Nov. 20, 2006.

On April 17, 2007, Aeropago's creditors will vote on a
settlement plan that the company will lay on the table.

Court No. 26 in Buenos Aires approved Aeropago's petition to
reorganize its business after the company defaulted on its
obligations.

Clerk No. 51 assists the court in the case.

The debtor can be reached at:

    Aeropago S.A.
    Lavalle 1578
    Buenos Aires, Argentina

The trustee can be reached at:

    Adalberto Corbelleri
    Carabobo 2372
    Buenos Aires, Argentina


CYAN SRL: Claims Verification Deadline Set for September 21
-----------------------------------------------------------
Luis Plizzo, the court-appointed trustee for Cyan S.R.L.'s
bankruptcy proceeding, will verify creditors' proofs of claim
until Sept. 21, 2006.

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

Court No. 9 in Buenos Aires declared Cyan S.R.L. bankrupt at the
request of Andres Maidana, whom it owes US$10,349.79.

Clerk No. 18 assists the court in the proceeding.

The debtor can be reached at:

    Cyan S.R.L.
    Potosi 4471
    Buenos Aires, Argentina

The trustee can be reached at:

    Luis Plizzo
    Pte. Roque Saenz Pena 651
    Buenos Aires, Argentina    


DIPELE SRL: Trustee Has Until Sept. 14 to Verify Claims
-------------------------------------------------------
Court-appointed trustee Alberto Jose Rotenberg will verify
creditors' proofs of claim against bankrupt company Dipele
S.R.L. until Sept. 14, 2006.

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

Under Argentine bankruptcy law, Mr. Rotenberg is required to
filed with the court individual reports and a general report
containing an audit of Dipele's accounting and banking records
after the claims are verified.  The report submission dates have
not been disclosed.

The trustee can be reached at:

    Alberto Jose Rotenberg
    Avenida Cordoba 1336
    Buenos Aires, Argentina


EABSA SA: Last Day for Verification of Claims is on Sept. 8
-----------------------------------------------------------
Alcira Tallote, the court-appointed trustee for Eabsa S.A.'s
reorganization proceeding, will verify creditors' proofs of
claim until Sept. 8, 2006.

After the claims are verified, Ms. Tallote will submit in court
individual reports and a general report that contain an audit of
Eabsa's accounting and banking records.  The report submission
dates have not been disclosed.

On June 6, 2007, Eabsa's creditors will vote on a settlement
plan that the company will lay on the table.

Court No. 13 in Buenos Aires approved Eabsa's petition to
reorganize its business after it defaulted on its obligations.

Clerk No. 26 assists the court in the case.

The debtor can be reached at:

    Eabsa S.A.
    Chacabuco 314
    Buenos Aires, Argentina

The trustee can be reached at:

    Alcira Tallote
    Guido 1948
    Buenos Aires, Argentina


EL PUEBLO: Proofs of Claim Verification Continues Until Sept. 4
---------------------------------------------------------------
Court-appointed trustee Abel Arnaldo Vila will verify creditors'
proofs of claim against bankrupt company El Pueblo S.R.L. until
Sept. 4, 2006.

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

Mr. Vila will present the validated claims in court as
individual reports on Oct. 19, 2006.  A general report
containing an audit of El Pueblo's accounting and banking
records will follow on Dec. 4, 2006.

The trustee can be reached at:

    Abel Arnaldo Vila
    General Paz 1753, Zarate-Campana
    Buenos Aires, Argentina


EMERGENCIAS SEMCA: Trustee Will Verify Claims Until Aug. 8
----------------------------------------------------------
Court-appointed trustee Hector Ricardo Martinez will verify
creditors' proofs of claim against Emergencias Semca S.R.L.
until Aug. 8, 2006.

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

The verified claims will be submitted in court as individual
reports on Sept. 5, 2006.  A general report that contains an
audit of Emergencias Semca's accounting and banking records will
follow on Oct. 17, 2006.

Emergencias Semca's creditors did not accept the settlement plan
that the company proposed, prompting Court No. 1 in Zarate,
Buenos Aires, to convert the company's insolvency case into a
bankruptcy proceeding.  

The trustee can be reached at:

    Hector Ricardo Martinez
    San Martin 855, Zarate
    Buenos Aires, Argentina


EMPRESA SOCIAL: Last Day for Claims Verification Is on Sept. 11
---------------------------------------------------------------
Manuel Arias, the court-appointed trustee for Empresa Social ESA
Argentina S.A.'s bankruptcy proceeding, will verify creditors'
proofs of claim until Sept. 11, 2006.

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

Court No. 13 in Buenos Aires declared Empresa Social bankrupt at
the behest of Malvino Rafael Gil, whom it owes US$58,331.

Clerk No. 26 assists the court in the proceeding.

The debtor can be reached at:

    Empresa Social ESA Argentina S.A.
    Contralmirante Martin Guerrico 543
    Buenos Aires, Argentina

The trustee can be reached at:

    Manuel Arias
    Conesa 3518
    Buenos Aires, Argentina    


MA-CO CONSTRUCCIONES: Claims Verification is Until Sept. 22
-----------------------------------------------------------
Irma Susana Aguilera, the court-appointed trustee for Ma-Co
Construcciones S.A.'s bankruptcy case, will verify creditors'
proofs of claim until Sept. 22, 2006.

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

Court No. 4 in Buenos Aires declared Ma-Co Construcciones
bankrupt at the request of Jose Mario Grignolo, whom it owes
US$182,675.58.

Clerk No. 8 assists the court in this case.

The debtor can be reached at:

    Ma-Co Construcciones S.A.
    Pumacahua 440
    Buenos Aires, Argentina

The trustee can be reached at:

    Irma Susana Aguilera
    Luis Saenz Pena 1690
    Buenos Aires, Argentina


ROGARSOL SA: Reorganization Proceeding Concluded
------------------------------------------------
Rogarsol S.A.'s reorganization proceeding ended after a court in
Buenos Aires approved the debt agreement signed between the
company and its creditors, Infobae published on its Web site.


TRANSPORTADORA DE GAS: Will Restructure US$689-Million Debts
------------------------------------------------------------
Transportadora de Gas del Norte will propose, in the next few
days, an offer to its creditors in order to restructure its
debt.  This would be the last renegotiation of a debt in default
among the main public service companies in Argentina, Nosis
reports.

As of March, the company's debt reached US$689.6 million, which
include principal, interests and penalties.  

Of the total debt:

   -- US$230 million are from certificates supported by a branch
      of the World Bank;

   -- US$210 million belong to the bonds known as "Bonos del
      tipo Convertibility Risk Insurance";

   -- US$84 million belong to bonds of variable rate;

   -- US$24 million come from a syndicated loan of
      BankBoston; and

   -- the rest is short-term debt.

American CMS (29.4%) and Gasinvest (70.6%) own Transportadora de
Gas is owned.  The latter is integrated by Petronas, from
Malaysia (12.9%), and in equal parts by TecGas, from Techint,
the Argentine CGC and the French Total (all with a 19.22%
stake).

Transportadora de Gas will use US$50 million from its own funds
to buy bonds for US$80 million (a discount of 37.5%).  It will
also issue two types of Obligaciones Negociables for about
US$450 million and will give a percentage to its creditors, who
will hold on to their recently issued class C shares.

After the restructuring, Transportadora de Gas will have new
investors.  DE Shaw as well as ING Investment is anticipated to
have the largest participations.  Stark will hold a lower
participation percentage.  

The entry of the new investors will reduce GasInvest' control.  
Nevertheless, GasInvest will still hold the largest stake in
Transportadora de Gas at 65%.  Other stakeholders include
Totalfinaelf, Compania General de Combustibles, Organizacion
Techint, CMS Gas Argentina Company and Petroliam Nasional
Berhad.  

Transportadora de Gas del Norte S.A. holds a contract to
transport and operate the gas pipes in the north and central
regions of Argentina for 35 years (until Dec. 28, 2027).  It has
the option to extend the contract for 10 more years after 2027.


UNIQUE SA: Deadline for Verification of Claims is on Aug. 31
------------------------------------------------------------
Court-appointed trustee Miguel Angel Troisi will verify
creditors' proofs of claim against bankrupt company Unique S.A.
until Aug. 31, 2006.

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

Mr. Troisi will present the validated claims in court as
individual reports on Oct. 20, 2006.  A general report that
contains an audit of Unique's accounting and banking records
will follow on Dec. 11, 2006.

The trustee can be reached at:

    Miguel Angel Troisi
    Cerrito 146
    Buenos Aires, Argentina




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


PINNACLE ENT: Commences Cash Tender Offer for Notes Due 2001
------------------------------------------------------------
Pinnacle Entertainment, Inc., has commenced a cash tender offer
for any and all of the outstanding 12% Notes due 2001 (Cusip No.
740822AA9) and 13% Senior Exchange Notes due 2001 (Cusip No.
740848AF3) issued by President Casinos, Inc., on the terms and
subject to the conditions set forth in its Offer to Purchase,
dated July 19, 2006.
    
The Tender Offer will expire at 8:00 a.m., New York City Time,
on Aug. 16, 2006.  The Tender Offer is subject to a number of
conditions, including a condition that AIG Global Investment
Corp. and MacKay Shields LLC tender all Notes held of record,
beneficially owned or controlled, either directly or indirectly,
by each of them.  AIG and MacKay have represented to the company
that together they hold or control over 80% of the original
principal amount of the outstanding Notes and have agreed to
tender and not withdraw all Notes that they hold or control.  
Once AIG and MacKay complete the tender of their Notes, the
company will promptly accept (assuming the conditions to the
Tender Offer are satisfied or waived) and purchase Notes
tendered prior to or on the Early Tender Date.  Notes once
tendered may not be withdrawn.
    
Holders who validly tender their Notes, either prior to the
Expiration Date or prior to the Early Tender Date, will receive
the purchase price of US$809.07 per US$1,000 of the original
principal amount of the Notes.  The aggregate original principal
amount of the Notes that are currently outstanding is
approximately US$75 million.  Due to previous distributions in
the bankruptcy proceedings of President Casinos, Inc. and its
affiliates, the actual claims associated with the Notes are less
than the original principal amount of the outstanding Notes.  
The claims associated with the Notes are believed to be no
greater than the Purchase Price being offered by the company in
the Tender Offer.  The aggregate Purchase Price under this
Tender Offer, assuming that the Tender Offer is fully
subscribed, is approximately US$60.7 million.  Payment for the
Notes will be made promptly after the Early Tender Date or the
Expiration Date.
    
Pinnacle Entertainment's obligation to accept Notes tendered and
to pay the Purchase Price is subject to a number of conditions,
including the condition relating to the tender of the AIG and
MacKay Notes described above, which are set forth in the Offer
to Purchase and the Letter of Transmittal for the Tender Offer.
    
HSBC Bank USA, National Association, is the depositary agent in
connection with the Tender Offer.  Requests for copies of the
Offer to Purchase and Letter of Transmittal should be directed
to the information agent at:

                    D.F. King & Co., Inc.
                     Tel: (800) 967-7635

                  About President Casinos

Headquartered in St. Louis, Missouri, President Casinos Inc.
-- http://www.presidentcasino.com/-- currently owns and  
operates a dockside gaming casino in St. Louis, Missouri through
its wholly owned subsidiary, President Missouri.  The Debtor
filed for chapter 11 protection on June 20, 2002 (Bankr. S.D.
Miss. Case No. 02-53055).  On July 11, 2002, substantially all
of Debtor's other operating subsidiaries filed for chapter 11
protection in the same Court.  The Honorable Judge Edward Gaines
ordered the transfer of President Casino's chapter 11 cases from
Mississippi to Missouri.  The case was reopened on Nov. 5, 2002
(Bankr. E.D. Mo. Case No. 02-53005).  Brian Wade Hockett, Esq.,
at Hockett Thompson Coburn LLP, represents the Debtors in their
restructuring efforts.  David A. Warfield, Esq., at Blackwell
Sanders Peper Martin LLP, represents the Official Committee of
Unsecured Creditors.  The Company's balance sheet at
Nov. 30, 2005, showed assets totaling US$66,292,000 and debts
totaling US$75,531,000.

                       About Pinnacle

Headquartered in Las Vegas, Nevada, Pinnacle Entertainment, Inc.
(NYSE: PNK) -- http://www.pnkinc.com/-- owns and operates   
casinos in Nevada, Louisiana, Indiana and Argentina, owns a
hotel in Missouri, receives lease income from two card club
casinos in the Los Angeles metropolitan area, has been licensed
to operate a small casino in the Bahamas, and owns a casino site
and has significant insurance claims related to a hurricane-
damaged casino previously operated in Biloxi, Mississippi.  
Pinnacle opened a major casino resort in Lake Charles, Louisiana
in May 2005 and a new replacement casino in Neuquen, Argentina,
in July 2005.

                        *    *    *

As reported in the Troubled Company Reporter on May 24, 2006,
Standard & Poor's Ratings Services revised its CreditWatch
implications on Las Vegas-based casino owner and operator
Pinnacle Entertainment Inc. to positive from negative.  

As reported in the Troubled Company Reporter on March 20, 2006,
Moody's Investors Service placed the ratings of Pinnacle
Entertainment, Inc. on review for possible upgrade.  Pinnacle
ratings affected include its B2 corporate family rating, B1
senior secured bank loan rating, and Caa1 senior subordinated
debt rating.

As reported in the Troubled Company Reporter on Mar. 15, 2006,
Fitch Ratings has placed the ratings of Pinnacle Entertainment
on Rating Watch Negative.  The ratings affected include 'B'
issuer default rating; 'BB/RR1' senior secured credit facility
rating; and 'CCC+/RR6' senior subordinated note rating.


WINN-DIXIE: Can Retroactively Reject 77 Store Leases
----------------------------------------------------
Judge Funk of the U.S. Bankruptcy Court for the Middle District
of Florida grants Winn-Dixie Stores, Inc.' request and deems the
77 store leases rejected on Feb. 21, 2005.

The Court overrules all objections, and clarifies that its order
does not constitute a waiver of any claims the Debtors may have
against any counterparty to the Assigned Leases.

The Court Order will not affect the validity of the lease
assignments, and the assignees' rights and obligations under
their respective leases, or constitute a breach or default by
the assignee of the leases and related documents, Judge Funk
states.

Judge Funk directs the landlords to file proofs of claim for
rejection damages, if any, by Aug. 12, 2006.

                   Fiesta Mart's Objection

Fiesta Mart, Inc., objects to the rejection of the leases of
Store Nos. 2411, 2422, 2441 and 2459.

Michael J. Durrschmidt, Esq., at Hirsch & Westheimer, P.C., in
Houston, Texas, relates that the Debtors assigned to Fiesta all
their right, title and interest as tenant under the four leases
pursuant to an asset purchase agreement dated May 21, 2002.

The Debtors' attempt to reject the leases constitutes a breach
of the Asset Purchase Agreement, Mr. Durrschmidt asserts.

Section 365(c) of the Bankruptcy Code allows the rejection of
any "unexpired lease of the debtor".  However, the Leases are
not, nor were they at the time of the Debtors' bankruptcy
filing, leases of the Debtors, Mr. Durrschmidt points out.

If the Debtors reject the leases, Fiesta would show that the
lease rejections constitute a default leading to damages not
only for the landlords, but also for the lease assignee, Mr.
Durrschmidt asserts.

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


WINN-DIXIE: Rejects Lifetime Hoan Prepetition Supply Agreement
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida
consented to Winn-Dixie Stores, Inc., and its debtor-affiliates'
rejection of their prepetition supply agreement with Lifetime
Hoan, effective as of July 14, 2006.

As reported in the Troubled Company Reporter on July 6, 2006,
Winn-Dixie Stores, Inc., was obligated to purchase kitchen tools
and gadgets from Lifetime Hoan until the net volume purchased
reaches US$15,000,000, with the term of the agreement continuing
until the volume requirement is satisfied, pursuant to their
supply agreement dated Aug. 2, 2003.

The Debtors' reduced store count has operated to extend the term
of the Prepetition Supply Agreement, According to Cynthia C.
Jackson, Esq., at Smith Hulsey & Busey, in Jacksonville,
Florida.

Although the Debtors desire to continue their relationship with
Lifetime Hoan, the terms of their contract are no longer
feasible, Ms. Jackson told the Court.

The Debtors have determined that it is in their best interests
to reject the Prepetition Supply Agreement and continue their
relationship with Lifetime Hoan on more favorable terms under a
new ordinary course supply agreement.

The new supply agreement is set to take effect upon rejection of
the Prepetition Supply Agreement.

Lifetime Hoan has agreed that the Debtors may terminate the new
supply agreement without liability if their reorganization plan
is not confirmed or does not become effective.

Ms. Jackson said that by rejecting the Prepetition Supply
Agreement in favor of a new contract with Lifetime Hoan, the
Debtors will:

    (a) avoid the burdensome obligation of the US$15,000,000
        volume requirement as well as the risk of significant
        rejection damages claim if that requirement is not
        satisfied; and

    (b) be able to continue offering Lifetime Hoan's products to
        their customers on terms that better reflect the current
        and future needs of their operating stores.

                        Claims Resolution

Winn-Dixie Procurement, Inc., scheduled a claim in favor of
Lifetime Hoan for US$91,247.  Lifetime Hoan filed Claim No. 6177
against Winn-Dixie Stores for US$135,650.

Ms. Jackson told the Court that the parties have agreed to set
off their claims against each other, specifically:

    (a) the Scheduled Claim will be disallowed and expunged in
        its entirety; and

    (b) Claim No. 6177 will be set off against the Debtors'
        accrued prepetition credits for US$44,403, resulting
        in an allowed general unsecured claim for US$91,247.

In addition, Lifetime Hoan will waive any claim for rejection
damages and all other claims against the Debtors, except for the
agreed general unsecured claim and any unpaid postpetition
invoices.

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




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


GLOBAL CROSSING: Launches Video Endpoint Management Service
-----------------------------------------------------------
Global Crossing added Video Endpoint Management Service to its
collaboration services portfolio.  The service enhances workflow
and employee productivity, eliminates unnecessary network
administration typically associated with videoconferencing, and
eases the complexity of monitoring global enterprise customers'
videoconferencing endpoints.

Using uCommand(R), Global Crossing's award winning customer Web
portal, multinational enterprises can monitor and manage their
videoconferencing equipment at any time, and from anywhere in
the world, to conduct fault resolution, upgrade software and
dispatch maintenance.  This capability mitigates operational
challenges, improves service levels and minimizes the need to
devote internal technical staff to videoconferencing application
support.  By using Video Endpoint Management, enterprises can
expend fewer resources managing their videoconferencing
infrastructure and can focus more time and attention on their
strategic business goals.

"Global Crossing has been providing video-bridging services for
more than 14 years," said Anthony Christie, Global Crossing's
chief marketing officer.  "Now, while leveraging our experience
and private IP backbone, Video Endpoint Management Service makes
video networks easier to use by managing a customer's
videoconferencing endpoint equipment."

Video Endpoint Management Service also expands the current
Managed Solutions portfolio offering by providing real-time, 24
x 7 video endpoint and network monitoring.  It gives customers
improved root cause analysis capabilities that diagnose
transport versus equipment errors.  As a result, customers
experience less downtime and may improve communication,
workflow, and employee productivity.

Monitored via Global Crossing's flagship IP VPN service, Video
Endpoint Management Service helps reduce the duration of system
outages.  Monitoring includes equipment testing on request and
proactive trouble notification with automated alerts.  The
service provides remote CODEC rebooting, software updates and
patches, maintenance dispatch, and remote electronic testing for
call speed, frame rate, network jitter and packet loss."

Videoconferencing helps geographically dispersed teams achieve
business goals and remain competitive, while helping them
maximize efficiencies and control costs.

Global Crossing offers IP video services as part of its
converged IP solution, supporting ISDN and IP-based endpoints
for videoconferencing services. Global Crossing's award-winning
iVideoconferencing, a high- performance, reliable and economical
solution for international videoconferences, allows customers to
place ISDN calls directly on Global Crossing's IP network and
transports them directly to service nodes around the world.  
With iVideoconferencing, video calls perform better and are more
reliable than those placed through traditional ISDN-originated
connections.  Customers typically enjoy between 40 and 70
percent cost savings on their videoconferences for international
routes.

Frost & Sullivan, a global growth consulting company, awarded
Global Crossing's iVideoconferencing services its 2005 Product
Differentiation Innovation Award for the European market.  
According to Frost & Sullivan, Global Crossing's
iVideoconferencing service will be a catalyst for the next
growth phase in IP, enabling customers worldwide to easily and
gradually make the transition from ISDN to IP videoconferencing.

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.


REFCO INC: Official Committee Wants Seat in Fee Panel
-----------------------------------------------------
The Official Committee of Unsecured Creditors appointed in
Refco, Inc., and its debtor-affiliates chapter 11 cases,
supports the fee containment goals the Fee Protocol seeks to
promote.  However, the Committee cannot support approval of the
Fee Protocol in its current form for three reasons:

   (i) It places disproportionate voting power with respect to
       the fee review process in the hands of fee earners, not
       creditors;

  (ii) The Committee, and not the Fee Protocol, should decide
       which of the Committee's members should serve on the Fee
       Committee; and

(iii) The Debtors' contentions notwithstanding, the Fee
       Committee should have standing to appear and object at
       fee application hearings.

The Committee suggests that the Debtors amend the Fee Protocol
by providing that:

   1.  at least two of the five voting seats on the Fee
       Committee -- and thus appropriate voting power with
       respect to important Fee Committee decisions -- will be
       granted to the Creditors Committee members;

   2.  the Creditors Committee alone will decide which of its
       members occupy seats on the Fee Committee; and

   3.  the Fee Committee will have the power to speak with the
       single voice, greater efficiency, and enhanced authority
       that standing to appear at fee hearings confers.

The Creditors Committee can only support approval of the Fee
Protocol to the extent it is amended to address the concerns
raised, Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy
LLP, in New York, tells the Honorable Robert Drain of the United
States Bankruptcy Court for the Southern District of New York.

VR Global Partners, L.P.; Paton Holdings Ltd.; VR Capital Group
Ltd.; and VR Argentina Recovery Fund, Ltd.; and Premier Bank
International N.V. support the Creditors Committee's arguments.

VR Global is co-chairperson of the Creditors Committee.  Premier
Bank is a Committee member.

                      About Refco Inc.

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

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

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

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

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


REFCO: Meridian IT Wants Decision on Smartnet Maintenance Pact
--------------------------------------------------------------
Meridian IT Solutions asks the U.S. Bankruptcy Court for the
Southern District of New York to compel Refco Inc. and its
debtor-affiliates to assume or reject the Smartnet Maintenance
Contract, pursuant to Section 365(d)(2) of the Bankruptcy Code.

In the alternative, pursuant to Section 362(d), Meridian wants
the automatic stay lifted so it may terminate the agreement and
instruct its vendor to cease providing services to the Debtors.
Meridian also asks the Court to require the Debtors to provide
adequate protection of its property interests in the contract by
requiring payments pursuant to Sections 363(e) and 361.

Meridian IT and the Debtors are parties to a Smartnet
Maintenance Contract -- a one-year, prepaid contract.  Meridian,
through its third-party vendor, performs ongoing repair and
maintenance for various of the Debtors' IT equipment.

The parties renewed the Maintenance Contract on Sept. 16, 2005.

The Debtors' purchase order called for a total cost of
US$328,325.  In reliance upon the purchase order, Meridian pre-
paid its vendor the entire sum of its contract, Michael T.
Conway, Esq., at Lazare Potter Giacovas & Kranjac LLP, in New
York, relates.

When Refco filed for bankruptcy, Meridian received from the
Debtors a check for US$304,447, representing payment in full of
the revised contract price.  However, the Debtors stopped
payment on the check the next day.

As a consequence, Mr. Conway says, Meridian's vendor has been
paid in full for the one-year maintenance agreement and has been
performing critical maintenance services for the Debtors.
However, Meridian has never been paid for those services.

Mr. Conway notes that the Debtors have made no current payments
to Meridian since the Petition Date, despite Meridian's many
requests.

The Debtors have yet to assume or reject the Maintenance
Contract.  They have taken no steps to do so.

Mr. Conway also argues that Meridian is entitled to an
administrative claim under Section 503(b)(1)(A) in the full
contractual amount for all postpetition services provided
pursuant to the contract.

                       About Refco Inc.

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

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

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

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

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


SEA CONTAINERS: Closes US$563 Mil. Silja Sale to Tallink Grupp
--------------------------------------------------------------
Sea Containers Ltd. has completed the sale of its Baltic ferry
subsidiary Silja Oy Ab to Estonian ferry operator AS Tallink
Grupp.

The sale, which was announced on June 12, was subject to receipt
of regulatory approvals from Finnish, Swedish and Estonian
competition authorities, all of which have been granted.  

The consideration for the sale of Silja's core business is
US$563 million and five million ordinary shares in Tallink,
equivalent to US$22 million.  Tallink shareholders approved the
transaction at an EGM on June 22, 2006.

The transaction does not include Silja's fast ferry services
from Helsinki, Finland to Tallinn, Estonia and the two
SuperSeaCat ferries, which will be retained by Sea Containers
and operated as a stand-alone business under the SuperSeaCat
brand name.

The sale of Silja will be used to pay approximately
US$503 million related bank debt.

                      About Sea Containers

London-based Sea Containers -- http://www.seacontainers.com/--   
engages in passenger and freight transport and marine container
leasing.  The Bermuda registered company is primarily owned by
U.S. shareholders and its common shares have been listed on the
New York Stock Exchange (SCRA and SCRB) since 1974.

                            *   *   *

In June 2006, Moody's Investors Service downgraded the senior
unsecured ratings and confirmed the senior secured rating of Sea
Containers -- Senior Unsecured to Caa3, Senior Secured at B3.
The outlook is negative.

The downgrades were due to the increased probability of a
payment default following Sea Containers' disclosure that it is
unable to confirm whether it will pay the US$115 million
principal amount of 10-3/4% senior unsecured notes due October
2006.

As reported in the Troubled Company Reporter on May 4, 2006,
Standard & Poor's Ratings Services lowered its ratings on Sea
Containers, including lowering the corporate credit rating to
'CCC-' from 'CCC+'.  All ratings remain on CreditWatch with
negative implications.
     
The rating action followed the company's announcement that it is
continuing to evaluate a range of strategic and financial
alternatives, including the "appropriate level of debt capacity,
with the intent to engage the public note holders and other
stakeholders."




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


* BOLIVIA: Reviewing US$2.3-Billion Bid from Two Indian Firms
-------------------------------------------------------------
Hal Weitzman, writing for the Financial Times, reports that the
Bolivian government is currently reviewing a US$2.3-billion bid
presented by Jindal Steel and Power of India to extract untapped
iron ore deposits in the country.  A decision is expected in six
weeks.

The bid, according to Mr. Weitzman, highlights the extent to
which the quest for natural resources is trumping other
considerations.  Meaning, despite Bolivia's sudden
nationalization of its hydrocarbons sector and plans to do the
same for the mining industry, investors are still willing to
take a chance to put money in the country.

Bolivia's business relations with its biggest traditional
investors are close to breaking point.  Brazil's Petroleo
Brasileiro SA is adamant about keeping the terms of its 20-year
operating license unchanged.  

Jindal inked last month a memorandum of understand with Bolivia.  
The two parties are now negotiating on the technical aspect of
the development plan, FT says.

"This is the first big Indian investment in Latin America,"
Riewad Warjri, India's ambassador to Bolivia and Peru, was
quoted by the FT as saying.  "It has opened the eyes of Indian
companies to the potential for profitable investment in the
region."

"Bolivia is being seen as the potential hub for Asian investment
and production in South America. It has great natural resources
but it lacks the expertise.  It also has a good central location
- and land and labour are cheap," an Indian businessman told
the FT.

According to the government's former head of the mining firm
Comibol, the government's forthcoming overhaul of its mining
policy will raise taxes moderately and demand a small public
stake in private mining operations of 3% to 4%.

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO NACIONAL: Grants BRL17.8 Million Financing to Enersul
-----------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social, aka BNDES,
approved a financing of BRL17.8 million, for the expansion and
improvement in the electric energy distribution system of
Empresa Energetica do Mato Grosso do Sul S.A. or Enersul.  The
financing, which accounts for 54.2% of the total investments,
will be transferred by Banco Alfa.

Enersul forecasts that 210 indirect jobs will be generated by
the project.  The total investment is BRL32.9 million.

Enersul holds the public concession of electric energy
distribution in 73 municipalities of Mato Grosso do Sul (which
is equivalent to 92% of the total area of the State).  It is a
wholly owned subsidiary of Energias do Brasil S.A., which also
controls the distributors Bandeirante Energia S.A. and Espirito
Santo Centrais Eletricas S.A.

The electric energy distribution program meets the growth
expectations of Enersul's operation market, besides improving
quality, reliability and control of the energy supply in the
region attended by the company, it also assures low tariffs.

                        *    *    *

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


FIDELITY NATIONAL: Declares US$0.05 Per Share Quarterly Dividend
----------------------------------------------------------------
Fidelity National Information Services, Inc., declares a regular
quarterly dividend of US$0.05 per common share.  The dividend is
payable Sept. 27, 2006, to shareholders of record as of the
close of business Sept. 14,2006.

                  About Fidelity National

Headquartered in Jacksonville, Florida, Fidelity National
Information Services, Inc. --
http://www.fidelityinfoservices.com/-- provides core processing  
for financial institutions; card issuer and transaction
processing services; mortgage loan processing and mortgage-
related information products; and outsourcing services to
financial institutions, retailers, mortgage lenders and real
estate professionals.  FIS has processing and technology
relationships with 35 of the top 50 global banks, including nine
of the top ten.  Nearly 50 percent of all U.S. residential
mortgages are processed using FIS software.  FIS maintains a
strong global presence, serving over 7,800 financial
institutions in more than 60 countries worldwide, including
Brazil.

                        *    *    *

Standard & Poor's Ratings Services raised, on March 8, 2006, the
corporate credit and senior secured ratings of Fidelity National
Information Services Inc. to 'BB+' from 'BB', and removed it
from CreditWatch where it was placed on Sept. 15, 2005.

Moody's upgraded on March 18, 2006, Fidelity National
Information Solutions' senior secured credit facility to Ba1
from Ba3, Assigned a corporate family rating of Ba1 and a
speculative grade liquidity rating of SGL-1.  The outlook is
stable.


HSBC BRASIL: Wants to Capture 8% of Credit Card Market by 2007
--------------------------------------------------------------
HSBC Bank Brasil SA intends to increase to 8% its market share
in Brazil's credit card industry by 2007, Business News Americas
reports, citing the bank's consumer finance chief executive
officer.

Henrique Frayha, CEO of Lonsango, the consumer finance arm of
HSBC, told BNamericas that the bank currently holds a 4% market
share in the credit card sector.  The unit is targeting an
increase in its credit portfolio from BRL3.5 billion to BRL5
billion.

Losango's book includes direct consumer credit, personal loans
and retirement and payroll loans as well as plastic, BNamericas
relates.

"The credit card segment, however, is growing at a higher rate
than the credit market in general," Mr. Frayha noted.  "Today
30-40% of retail sales are charged to a card."

The finance company launched the Losango Visa card last week,
aimed at low-income earners, BNamericas says.

"Low-income customers are the fastest-growing segment within the
consumer credit business -- 35% a year for the past five years
-- while average growth for the whole segment was around 25%,"
Mr. Frayha told BNamericas.

According to BNamericas, Losango will begin issuing the Visa-
branded card for low-income earners in August and expects to
have some 2 million in circulation by the end of next year.

On Mar. 8, 2006,  Standard & Poor's Ratings Services assigned a
'BB' credit rating to HSBC Bank Brasil S.A.

The company's outstanding ratings include:

      -- 'BB/Stable/B' rating on counterparty credit;
      -- 'BB/B' rating on certificate of deposit;
      -- 'BB' rating on senior unsecured foreign currency; and
      -- 'BB' on subordinated foreign currency.


PARMALAT GROUP: Wins Appeal Against Citigroup in US Court
---------------------------------------------------------
The Appellate Division of the Superior Court of New Jersey
allows Parmalat Finanziaria, S.p.A., to continue with its fraud
lawsuit against Citigroup, Inc., and certain affiliates.

In a decision dated July 14, 2006, the New Jersey Appellate
Division rejected an appeal filed by the Citigroup Entities to
dismiss a ruling from the New Jersey Law Division, which ruling
denied Citigroup's request to dismiss a complaint filed by Dr.
Enrico Bondi, extraordinary administrator of Parmalat.

In the complaint, Dr. Enrico Bondi alleged that Citigroup, Inc.
and Citibank, N.A., aided Parmalat's subsidiaries in their
fraudulent scheme.  Specifically, Dr. Bondi asserted that
Citigroup knowingly structured financing for Parmalat
subsidiaries to disguise debt and artificially increase cash
flow.  

Eureka PLC, a United Kingdom-based public liability company, is
one of the corporations alleged to be affiliated with Citigroup
that have participated in the Parmalat scheme.

Dr. Bondi said Citigroup created Eureka as a special purpose
entity to assist in Parmalat's scheme.  Citigroup purportedly
provided credit lines and financial services to Eureka.  Eureka,
acting on Citigroup's behalf, bought and securitized receivables
of Farmland Dairies LLC, a holding company of Parmalat
subsidiary Parmalat USA Corp.  

Dr. Bondi believes that Eureka's transactions with Farmland were
purportedly essential links in the global scheme.

In their dismissal motion, the Citigroup Defendants argued that
the New Jersey trial court lacks personal jurisdiction over
Eureka.

The Citigroup Defendants also relied on the forum non conveniens
doctrine.  They argued that New Jersey lacks interest in the
litigation, witnesses and documents are not located in New
Jersey, and application of Italian law will make it inconvenient
to pursue the case in the State.

Under the forum non conveniens doctrine, "a court may decline
jurisdiction whenever the ends of justice indicate a trial in
the forum selected by the plaintiff would be inappropriate," the
New Jersey Appellate Division notes, citing a court ruling in
D'Agostino v. Johnson & Johnson, Inc., 225 N.J. Super. 250, 259
(App. Div. 1988), aff'd, 115 N.J. 491 (1989) (D'Agostino I).

However, the New Jersey Appellate Division holds that the trial
court had established a prima facie case of specific
jurisdiction against Eureka.

The Appellate Court also finds that the Citigroup Defendants
failed to show that they will not have access to sources of
proof, or that witnesses will be unavailable so that it would be
unreasonable for the lawsuit to proceed in the State.  Hence,
the Appeals Court rules that the dismissal motion based on forum
non conveniens was properly denied.

The Appellate Division affirms, without prejudice, the Law
Division's decision not to dismiss the Bondi suit based on forum
non conveniens, allowing Citigroup to raise the issue again
after it:

   -- has made a good faith effort to obtain discovery necessary
      to defend the action; and

   -- can provide the court with a record showing that
      plaintiff's choice of forum is truly inappropriate.

                       About Parmalat

Headquartered in Wallington, New Jersey, Parmalat USA
Corporation -- http://www.parmalatusa.com/-- generates more  
than 7 billion euros in annual revenue.  The Parmalat Group's
40-some brand product line includes milk, yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices and employs over 36,000
workers in 139 plants located in 31 countries on six continents.  
The Company filed for chapter 11 protection on February 24, 2004
(Bankr. S.D.N.Y. Case No. 04-11139).  Gary Holtzer, Esq., and
Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP,
represent the Debtors.  When the U.S. Debtors filed for
bankruptcy protection, they reported more than US$200 million in
assets and debts.  The U.S. Debtors emerged from bankruptcy on
April 13, 2005.  (Parmalat Bankruptcy News, Issue No. 74;
Bankruptcy Creditors' Service, Inc., 215/945-7000)


TRANSAX INT'L: Net Revenues Reach US$1.035MM in Second Quarter
--------------------------------------------------------------
Transax International Limited reports preliminary revenue and
transaction volume for the second quarter of 2006.

During the first half of 2006, Transax processed a record 3.75
million transactions, compared to 3 million for the first half
of 2005, a 25% increase.  The company anticipates recording net
revenues of approximately US$1.035 million for the second
quarter of 2006, compared to net revenues of US$861,023 for the
same period in 2005, representing an approximate 20% increase.

For the first six months of 2006 Transax expects to record net
revenues of US$2.015 million or a 35% increase from net revenues
of US$1.501 million from the same period in 2005.  The company
anticipates revenues will continue to increase for the remainder
of 2006 as previously announced contracts are implemented.

Transax currently has over 6000 solutions operational in Brazil,
including 3,175 Point of Sale terminals and 2700 IVR solutions.  
During the quarter the company rationalized the way a number of
IVR solutions were installed for better efficiency.  The company
installed 600 additional solutions into medical provider
locations, including 250 POS terminals and 345 IVR solutions.

Stephen Walters, President & CEO of Transax, commented, "For the
first time in our company's history we will exceed US$1 million
in quarterly revenue.  During the second quarter we continued to
rollout previously announced contracts which resulted in a
continued increase in transaction volume."  Mr. Walters
continued, "Additionally, during the quarter, the Company signed
a contract to execute transactions for National Health Services,
a healthcare marketing company in the United States and we made
significant headway on implementing our two previously announced
contracts in Brazil.  Both of these initiatives are expected to
become revenue generating during the second half of 2006."

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

                     Going Concern Doubt

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


VARIG S.A.: Sold to Volo do Brasil for US$600,000,000
-----------------------------------------------------
VARIG S.A. was sold to Volo do Brasil for more than
US$600,000,000 at an auction Thursday, averting liquidation of
the airline's assets.

Volo will pay in cash BRL277,000,000 -- US$127,000,000 -- for
VARIG's operating assets and invest up to US$485,000,000 based
on a timetable contained in a business plan.  Volo must pay a
US$75,000,000 deposit by July 24, 2006, the Associated Press
reports.

Volo emerged the lone bidder at the auction scheduled by Judge
Luiz Roberto Ayoub of the 8th District Bankruptcy Court in
Brazil.  According to AP, no other party was willing to advance
US$24,000,000 to take part in the auction.

Volo will acquire, among others:

   -- the rights under VARIG's lease agreements for 30 aircraft;
   -- airport slots;
   -- certain receivables;
   -- property and rights related to VARIG's Smiles program;
   -- rights to software necessary to the airline's operation;
   -- VARIG's crew training center;
   -- the VARIG brand name; and
   -- other contracts necessary to the airline's operation.

Volo will assume VARIG's obligations relating to the aircraft
lease agreements; certain transportation; and the Smiles
program.

Volo will satisfy a portion of VARIG's more than BRL7 billion --
US$3 billion -- of debt with BRL100,000,000 of 10-year bonds.  
Volo will give creditors an option to receive cash instead of
bonds.

Leasing companies and other key creditors of VARIG initially
rejected Volo's offer at a creditors' meeting.  The creditors
said the proposal was not enough to pay for the airline's debts.

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, pointed out
that creditors with "little financial stake" were given the same
voting power as larger creditors.  He noted that the larger
creditors voted for Volo's offer.

On Tuesday, 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, Bloomberg News says.

Bloomberg writer Romina Nicaretta relates that Volo has enhanced
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.

                         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.


* BRAZIL: Agencia Nacional Defers Eighth Hydrocarbon Licensing
--------------------------------------------------------------
Agencia Nacional do Petroleo, Brazil's hydrocarbons regulator,
moved the eighth hydrocarbon exploration-licensing round from
August 28 to give officials more time to prepare for the
process, Business News Americas reports.

Agencia Nacional has yet to announce a new schedule for the
tender, a spokesperson told BNamericas.

The agency's personnel still need to agree on requirements for
local content and minimum investment levels.  Planners also must
analyze geological information about the blocks to be offered,
the spokesperson explained to BNamericas.

Conselho Nacional de Politica Energetica, Brazil's national
energy planning council, urged Agencia Nacional to hasten the
licensing in response to Bolivia nationalization of its oil and
gas industry.  Bolivia's move affected Petroleo Brasileiro SA's
operations in that country.  The government is intent in finding
domestic gas supplies as an alternative to Bolivian gas.

However, BNamericas says, oil firms pressured Agencia Nacional
to delay the bidding to give them more time to thoroughly study
and prepare for the bidding.

Agencia Nacional's head Haroldo Lima said the eighth round could
not be held before October, news service Agencia Estado
reported.

                        *    *    *

Fitch Ratings assigned these ratings on Brazil:

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


* BRAZIL: Government Moves Power Auction to October 10
------------------------------------------------------
The Brazilian government postponed, from September 9 to October
10, the second auction for new power generation projects,
Business News Americas reports, citing a mines and energy
ministry spokesperson.

Companies interested to bid have until today, July 21, to
register in order to participate in the auction, Bnamericas
says.  

According to BNamericas, the developers of the proposed projects
aim to obtain 30-year power sale contracts with a delivery start
of January 2011.

The government held the first auction last month and was able to
realize BRL46 billion (US$20.6 billion) from the sale of 15 and
30-year power contracts with delivery starting in 2009.

                        *    *    *

Fitch Ratings assigned these ratings on Brazil:

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


* BRAZIL: Securitization Market Lures Growing No. Of Investors
--------------------------------------------------------------
The growing sophistication of Brazil's securitization market,
shaped by the emergence of:

   -- credit enhancers,
   -- multilaterals, and
   -- international banks,

is luring an increasing number of local and foreign investors,
according to analysts at Standard & Poor's Ratings Services.
     
One result of this progress seems to be an entrenched growth
trend in domestic issuance, with US$2.1 billion already issued
in local-currency structured transactions in 2006, a 99%
increase over the first half of 2005; volume grew 106% in full-
year 2005 over 2004.  The bulk of the domestic activity has
centered on the Fundo de Investimento em Direitos Creditorios or
FIDC structure, which is a securitization vehicle set up as an
investment fund.  In fact, there could be a 50% increase in FIDC
securitizations in 2006--that is, "if the business and
macroeconomic environment remains favorable after the
presidential election in October," said credit analyst Juan
Pablo De Mollein, a director in Standard & Poor's Structured
Finance group.
     
Nevertheless, solid macroeconomic stability has kept performance
of structured transactions steady, and related factors, such as
low or declining interest rates and fiscal discipline, have
further promoted Brazil's structured markets to investors.  This
has allowed investors to expand their portfolio horizons to
include long-term, local-currency securitizations.   Investing
in local currency is beneficial to investors because of the:

   -- higher yields,
   -- asset allocation, and
   -- diversification;

for borrowers, it helps them match their financial inflows and
outflows and reduce their exposure to the potential harshness of
a global financial crisis.
     
Besides the advantages of local-currency securitizations, focus
seems to be on domestic issuance because cross-border activity,
compared with prior years, has calmed considerably.  Some cross-
border future flow deals were issued in 2005, as was one
political risk-protected transaction.  "With the 2006 federal
elections approaching, political uncertainty could tighten
market liquidity," said credit analyst Diane Audino, a managing
director in Standard & Poor's Structured Finance group.  "If
this happens, investors will favor structured transactions over
unsecured debt.  But banks and companies aren't expected to
issue more structured transactions than they did in 2005."
     
The assets being securitized in Brazil demonstrate the
increasing diversification of the market.  Leading assets have
been:

   -- consumer loans (29% of the market),
   -- trade receivables (26%),
   -- future flows (15%), and
   -- auto loans (10%).  

Potential also lies in the securitization of other assets, such
as residential mortgages, because of the recent partnerships
forged between mortgage originators and local real estate
participants.  The development of partial guarantees and
multiasset and multiseller structures also shows promise.  
Small- and medium-enterprise CDO transactions could bring
further advancement and growth to the market.

"This is despite the potentially volatile financial environment
in a presidential election year," said credit analyst Pedro
Gazoni, an associate in Standard & Poor's Structured Finance
group.  

Real estate certificates (Certificados de Recebiveis
Imobiliarios, or CRIs) have also made recent strides in the
market.
     



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


ALMA HOLDINGS: Proofs of Claim Filing Deadline is on Aug. 11
------------------------------------------------------------
Alma Holdings' creditors are required to submit proofs of claim
by Aug. 11, 2006, to the company's liquidators:

   CDL Company Ltd.
   P.O. Box 31106SMB
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Alma Holdings' 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.


BCP GLOBAL: Last Day for Proofs of Claim Filing is on Aug. 11
-------------------------------------------------------------
BCP Global Wise Fund's creditors are required to submit proofs
of claim by Aug. 11, 2006, to the company's liquidators:

   Richard L. Finlay
   Conyers Dill & Pearman, Cayman
   George Town
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

BCP Global's shareholders agreed on May 24, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

   Krysten Lumsden
   P.O. Box 2681, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 945-3901
   Fax: (345) 945-3902


BOB LTD: Creditors Have Until Aug. 10 to File Proofs of Claim
-------------------------------------------------------------
Bob Ltd.'s creditors are required to submit proofs of claim by
Aug. 10, 2006, to the company's liquidator:

   Robert N. Wiviott
   c/o Campbells
   4th Floor, Scotia Centre
   P.O. Box 884, George Town
   Grand Cayman, Cayman Islands
   Ref: SG/10476

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.

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


DALTON DISTRESSED: Proofs of Claim Filing is Until Aug. 10
----------------------------------------------------------
Dalton Distressed Debt Offshore Fund Ltd.'s creditors are
required to submit proofs of claim by Aug. 10, 2006, to the
company's liquidators:

   Eric Clauson
   David Robinson
   c/o Dalton Investments LLC
   12424 Wilshire Boulevard, Suite 600
   Los Angeles, CA 90025

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.

Dalton Distressed's shareholders agreed on June 8, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


DALTON GLOBAL: Filing of Proofs of Claim is Until Aug. 10
---------------------------------------------------------
Dalton Global Opportunity Fund Ltd.'s creditors are required to
submit proofs of claim by Aug. 10, 2006, to the company's
liquidators:

   Eric Clauson
   David Robinson
   c/o Dalton Investments LLC
   12424 Wilshire Boulevard, Suite 600
   Los Angeles, CA 90025

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.

Dalton Global's shareholders agreed on June 8, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


DALTON GLOBAL(OFFSHORE): Claims Filing Deadline is on Aug. 10
-------------------------------------------------------------
Dalton Global Opportunity Offshore Fund Ltd.'s creditors are
required to submit proofs of claim by Aug. 10, 2006, to the
company's liquidators:

   Eric Clauson
   David Robinson
   c/o Dalton Investments LLC
   12424 Wilshire Boulevard, Suite 600
   Los Angeles, CA 90025

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.

Dalton Global's shareholders agreed on June 8, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


FOCUS ALLOCATION: Creditors Must Present Claims by August 11
------------------------------------------------------------
Focus Allocation Fund, Ltd's creditors are required to submit
proofs of claim by Aug. 11, 2006, to the company's liquidators:

   Richard L. Finlay
   Conyers Dill & Pearman, Cayman
   George Town
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Focus Allocation's shareholders agreed on May 24, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

   Krysten Lumsden
   P.O. Box 2681, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 945-3901
   Fax: (345) 945-3902


FOCUS GLOBAL: Creditors Must Submit Proofs of Claim by August 11
----------------------------------------------------------------
Focus Global Long Short Fund Ltd.'s creditors are required to
submit proofs of claim by Aug. 11, 2006, to the company's
liquidators:

   Richard L. Finlay
   Conyers Dill & Pearman, Cayman
   George Town
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Focus Global's shareholders agreed on May 24, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

   Krysten Lumsden
   P.O. Box 2681, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 945-3901
   Fax: (345) 945-3902


FOCUS STRATEGIC: Proofs of Claim Must Be Filed by August 11
-----------------------------------------------------------
Focus Strategic Fund's creditors are required to submit proofs
of claim by Aug. 11, 2006, to the company's liquidators:

   Richard L. Finlay
   Conyers Dill & Pearman, Cayman
   George Town
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Focus Strategic's shareholders agreed on May 24, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

   Krysten Lumsden
   P.O. Box 2681, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 945-3901
   Fax: (345) 945-3902


FOCUS STRATEGIC II: Proofs of Claim Filing is Until Aug. 11
-----------------------------------------------------------
Focus Strategic Fund II's creditors are required to submit
proofs of claim by Aug. 11, 2006, to the company's liquidators:

   Richard L. Finlay
   Conyers Dill & Pearman, Cayman
   George Town
   Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Focus Strategic's shareholders agreed on May 24, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

   Krysten Lumsden
   P.O. Box 2681, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 945-3901
   Fax: (345) 945-3902


HEXAVEST LTD: Deadline for Proofs of Claim Filing is on Aug. 10
---------------------------------------------------------------
Hexavest Ltd.'s creditors are required to submit proofs of claim
by Aug. 10, 2006, to the company's liquidator:

   Q&H Nominees Ltd.
   P.O. Box 1348, 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.

Hexavest Ltd.'s shareholders agreed on May 17, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

   Greg Link
   P.O. Box 1348, George Town
   Grand Cayman, Cayman Islands      
   Tel: (345) 949-4123
   Fax: (345) 949-4647




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


* COLOMBIA: Moody's Says Banks Have Stable Financial Strength
-------------------------------------------------------------
In its annual report on the Colombian banking system, Moody's
Investors Service says that the nation's banks appear poised to
assimilate fast changes and growth while retaining the stability
of their financial strength.

According to the author of the report, Vice President David
Olivares-Villagomez, "The stable outlook that Moody's assigns to
the average bank financial strength rating, or BFSR, of
Colombia's rated banks -- which now stand at D+, which is about
average for the region's systems -- reflects the view that these
institutions are successfully continuing to widen their
franchises."

According to Mr. Olivares, "The financial profiles of our three
rated banks -- which hold 45% of the system's assets -- remain
moderate overall, and this contributes to their stable outlooks.  
Their financial fundamentals, moreover, continue to show
considerable improvement."

The analyst believes that Colombia's banks are "successfully
penetrating existing customer bases more deeply through cross-
selling strategies, although the delivery of financial products
to the pool of traditionally unbanked customers -- whose numbers
are large but as yet unclear -- is yet to be tested."

"Consolidation of the Colombian banking system continues to
favor stronger domestic banks with leading positions in their
home market," Mr. Olivares-Villagomez contends.  He notes that
Moody's expects the consolidation trend "to increase because of
the banking industry's drive toward greater efficiency and
competitiveness which, in turn, should accelerate the process."

Less optimistically, Mr. Olivares-Villagomez adds that "Moody's
outlook also incorporates the fact that it will be necessary for
rated banks to grow organically for positive pressure to
accumulate on the existing ratings."

"Despite the country's relatively prosperous economy," Mr.
Olivares- Villagomez says, "lending activity remains relatively
low and organic growth is still scarce."

The analyst also says that the domestic banks' prosperity may be
compromised when they face the full aggressive competition of
seasoned international players, such as BBVA, which have shown a
slowly mounting interest in Colombian expansion.




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


AES DOMINICANA: S&P Rates US$160 Mil. Sr. Notes Due 2015 at B-
--------------------------------------------------------------
Standard & Poor's Ratings Services' 'B-' rating on AES
Dominicana Energia Finance S.A.'s US$160 million senior notes
due 2015 reflects the challenges of operating in the electric
sector in the Dominican Republic, and a legacy liquefied natural
gas contract that could be burdensome, offset by the contractual
nature of the revenue stream, and continued support of the
electricity sector by the Dominican government.  The outlook is
stable.

AES Dominicana is a special-purpose financing entity that issued
the bonds and on-lent the funds through an intermediate bank (an
ABN AMRO affiliate) to AES Andres B.V. (AES Dominicana's parent,
an electric generation company operating in the Dominican
Republic) to repay its loan facility, for working capital, and
to return a US$26 million security deposit to Dominican Power
Partners, which was used to repay its loan facility.

AES Dominicana manages two of The AES Corp.'s (BB-/Stable/--)
wholly owned generating facilities, Andres and DPP. Andres is
incorporated under the laws of the Netherlands, and it owns a
304 MW gas-fired, combined-cycle plant outside of Santo Domingo.  
The facility also includes an LNG regasification terminal.  
Andres is equipped to run on fuel oil #2, although this
functionality has yet to be tested.

DPP is incorporated under the laws of the Cayman Islands, and it
owns two open-cycle gas turbines of 118 MW each, Los Mina V and
Los Mina VI. The units were converted to natural gas in February
2003.  These units can still run on fuel oil #2, but have not
since the conversion.  A Cayman Island affiliate of Andres and
DPP manages Empresa Distribuidora del Este S.A., which is one of
three distribution companies in the country.  EDE Este is 50%
indirectly owned by The Trust Company of the West, and about 49%
owned by the Dominican government.  EDE Este is the primary
offtaker for Andres and DPP, with a 210 MW contract with DPP and
a 50 MW (rising to 300 MW) contract with Andres.

The 'B-' rating on the bonds incorporates the following risks:

   -- Historically weak collections and losses on the part of
      the local distribution companies are passed on to the
      generators impairing cash flow;

   -- Creditworthiness is highly correlated to that of the
      sovereign, as the electricity sector relies on government
      subsidies, which has contributed to the government's
      fiscal problems;

   -- The rating on the Dominican Republic (B/Stable/B) has
      historically been volatile, which could lead to
      volatility in AES Dominicana's rating;

   -- Regulatory institutions have historically been weak, but
      regulatory risk is moderating;

   -- The DPP units are rarely dispatched because the high heat
      rate makes them uneconomical;

   -- There is a history of operational problems at DPP; and

   -- The security package does not include a pledge of the
      hard assets.

These strengths offset the above risks:

   -- There is a contractual revenue stream, with electricity
      volumes set to increase as demand for electricity
      increases;

   -- A take-or-pay contract for 33.6 trillion Btu per year of
      LNG with a subsidiary of BP PLC was amended to reduce
      the contractual offtake to 12 trillion Btu.  AES
      Dominicana also successfully negotiated an alternative
      payment requirement, which will heretofore permitted the
      company to post a standby LOC instead of prepaying for
      deliveries;

   -- With gas prices declining since December 2005, and in
      combination with rising crude prices, the
      competitiveness of generation assets has increased.
      Dispatch factors of Andres/Los Mina are higher and
      working-capital requirements have also reduced;

   -- Although small, two new unregulated customers, Aeropuertos
      Dominicanos and Cerveceria Bohemia, provide some diversity
      to cash flow;

   -- Conditions of loans to the Dominican Republic from the
      International Monetary Fund and World Bank for the
      electricity sector align the government's interests with
      those of the bondholders;

   -- Andres controls the country's only LNG import point;

   -- Standard & Poor's considers parent AES a strong power
      plant operator; and

   -- Management has succeeded in other difficult jurisdictions
      and has gained some regulatory improvements in the
      Dominican Republic.

In February 2006, Andres and DPP executed a second round of
setoff transactions with Corporacion Dominicana de Empresas
Electricas Estatales or CDEEE, the government-owned entity from
whom the company purchases power from when buying on the market,
and distribution companies for about US$35.4 million, reducing
the outstanding receivables and canceling fully the payables
with CDEEE.  Also, most of the generators and distributors
entered into a new sector agreement with the government, whereby
the Dominican Republic renewed its commitment to stay current
with its electricity bills and cover the cash deficit of the
distributors during 2006.

In 2005, Andres received four shipments of LNG, totaling 444,251
cubic meters purchased.  During 2004, Andres' ability to
purchase LNG was significantly restricted due to lack of payment
from the Dominican Government.  In March 2006, Andres received
the first LNG ship of 2006, containing 136,000 m3 LNG, which was
used to generate continuously for about two months.

Liquidity

Liquidity is provided by a six-month interest reserve fund and a
US$23.5 million limited guarantee from AES.  Together, these
would fund over 18 months of debt service.  Working-capital
needs can be large, but a US$20 million import LOC facility is
now available.  The company had about US$18 million of cash on
hand as of March 31, 2006, up from just US$1 million in December
2005.

Outlook

The stable outlook on AES Dominicana reflects that of the
Dominican Republic and AES Dominicana's improved prospects for
cash flow generation, given the improved situation in the
Dominican Republic electric sector.  The rating is capped and is
highly dependent on the rating of the Dominican Republic.  
Improvements in collections and losses at the distribution
companies, coupled with growth in demand leading to
strengthening cash flows would be necessary for an upgrade.
Deterioration in the sovereign rating or weak collections
coupled with the failure of the government to provide requisite
support would result in a downgrade.


FALCONBRIDGE: Xstrata Raises All Cash Offer to CDN$62.50 a Share
----------------------------------------------------------------
Xstrata plc, through its wholly-owned subsidiary Xstrata Canada
Inc., has increased its fully underwritten all-cash offer to
acquire all of the outstanding common shares of Falconbridge
Limited not already owned by the Xstrata group from CDN$59 to
CDN$62.50 in cash per Falconbridge share, representing a total
consideration of approximately CDN$19.2 billion (approximately
US$16.9 billion).  In addition, Xstrata has amended its offer to
provide that Falconbridge shareholders will receive the special
cash dividend of CDN$0.75 per Falconbridge share declared by
Falconbridge on July 16, 2006, representing a total
consideration of CDN$63.25 per Falconbridge share, including the
special dividend.  The expiry time for the increased Xstrata
offer is on August 14, 2006 at 8 pm (Toronto time).
    
The increased Xstrata offer values the total common share
capital of Falconbridge at approximately CDN$24.1 billion
(approximately US$21.2 billion) including the special dividend.  
Xstrata expects to mail a formal notice of variation to all
Falconbridge shareholders on 21 July 2006.
    
The acquisition of Falconbridge is again conditional on approval
by Xstrata shareholders at a meeting to be held on August 14,
2006.  Xstrata has received irrevocable undertakings from Credit
Suisse Securities (Europe) Limited and Glencore International AG
to vote in favor of the resolution to be proposed at the
meeting.  In aggregate, these undertakings are given in respect
of approximately 35.84% of Xstrata's current issued ordinary
share capital.
    
In keeping with its consistently stated objective of acquiring
100% of Falconbridge, Xstrata's offer is no longer subject to a
minimum tender condition.  As a result, following receipt of
approval under the Investment Canada Act and approval from its
own shareholders, Xstrata will be in a position to take up and
pay for any shares tendered to its offer without further delay.
    
Mick Davis, Xstrata Chief Executive, said, "Xstrata's revised
offer reflects our belief in the fundamental value of this
acquisition to Xstrata.  Xstrata's 20% stake in Falconbridge,
purchased at CDN$28 per share, puts us in the unique position of
being able to offer CDN$63.25 per share, a price that is simply
more than any other company can justify under any realistic
commodity price scenario.  At the revised offer of CDN$62.50,
together with the dividend of CDN$0.75 per share, Xstrata's
average cost per share of acquiring all of Falconbridge's shares
will be approximately CDN$56.44 per share.  Due to the
flexibility of the nearly CDN$7 per share advantage Xstrata has
secured in this transaction, we have been able to present a
definitive, compelling and generous offer to Falconbridge
shareholders, while ensuring that the acquisition of
Falconbridge remains value, earnings and cash flow accretive to
Xstrata shareholders.
    
"Given the overwhelming support of Xstrata's shareholders for
this acquisition at the first shareholders' meeting, and the
undertakings already received to vote in favour of the
transaction at the next meeting, the process of shareholder
approval impacts the closing date of our offer but represents no
material risk. In respect of Industry Canada approval, Xstrata
has now concluded an extensive and comprehensive process with
the Investment Review Division and we have been advised to
expect a decision shortly.  We believe the undertakings we have
given will underpin the positive benefits to Canada that we have
always identified in our acquisition of Falconbridge.  We remain
confident that, as a committed and long-term investor with a
track-record of delivering growth and value to stakeholders
wherever we operate, approval will be forthcoming.
    
"It is therefore time for the Falconbridge Board to give
Xstrata's compelling offer due and careful consideration and
recognise that Xstrata's certain cash offer is a superior value-
creating proposition for Falconbridge shareholders that provides
an opportunity to bring this prolonged process to a close, to
the benefit of Falconbridge employees and shareholders.  I
therefore urge all Falconbridge shareholders who wish to receive
the full cash value of CDN$63.25 per share to tender their
shares to Xstrata as soon as possible and not to tender to the
Inco offer.  I reiterate our repeatedly stated position that it
is Xstrata's intention to secure 100% of the Falconbridge
shares."
    
Other than as set out above, all of the terms and conditions of
Xstrata's offer for Falconbridge described in its offer and
offering circular dated May 18, 2006, as amended on July 7 and
July 11, remain unchanged.
    
Xstrata will finance its increased offer through committed debt
facilities of US$19 billion, including US$7 billion under an
equity bridge facility agreement.  Xstrata remains committed,
following the successful completion of its acquisition of
Falconbridge, to undertake one or more equity capital raisings
to refinance the equity bridge facility agreement.  Deutsche
Bank AG and J.P. Morgan Securities Ltd. have irrevocably
undertaken to underwrite any future equity offering to raise
funds to repay any amounts outstanding under the equity bridge
facility agreement.  Xstrata also remains committed to
maintaining a solid investment grade credit rating.
    
The directors of Xstrata remain confident that any rights issue
will be fully supported by Credit Suisse and Glencore
International, Xstrata's two largest shareholders with a
combined shareholding of approximately 35.84% of Xstrata's
issued ordinary share capital.
    
Falconbridge shareholders wishing to withdraw their shares from
the Inco offer should immediately contact their broker or other
financial intermediary and instruct such intermediary to
withdraw their Falconbridge common shares.  For assistance in
withdrawing shares from the Inco offer, or for questions or
requests for copies of documents, Falconbridge shareholders
should contact:

             Kingsdale Shareholder Services Inc.
             Tel: 1-866-639-7993
             Email: contactus@kingsdaleshareholder.com
                 
Banks and brokers should call at 416-867-2272.

                  Inco Responds to Xstrata offer

The Inco Offer for Falconbridge now consists of CDN$18.50 in
cash and 0.55676 of an Inco common share, assuming full
proration of the consideration under the Offer.  Assuming the
completion of both the Inco Offer and the combination between
Inco and Phelps Dodge, and together with the Falconbridge
special dividend, Falconbridge shareholders would receive an
implied total consideration on a "look-through" basis of
CDN$64.92 per Falconbridge common share, consisting of
approximately:

   (a) CDN$29.77 in cash; and

   (b) 0.3741 of a Phelps Dodge Inco Corporation common share,
       valued at the closing price of the Phelps Dodge common
       shares on the New York Stock Exchange and applicable
       US-Canadian dollar exchange rates on July 19, 2006.

This is CD$1.67 more than the value of the Xstrata offer of
CDN$63.25 per share, including the Falconbridge special
dividend.
    
"This is our best and final offer for Falconbridge," said Scott
Hand, chairman and chief executive officer of Inco.  "It
provides greater value than the competing offer from Xstrata,
and it is available for acceptance only until midnight
(Vancouver time) on July 27.  Xstrata's competing offer remains
subject to a variety of conditions, including Investment Canada
approval and shareholder approval, and will not be available for
acceptance until at least August 14.
    
"Only Inco's Offer gives both current Inco and Falconbridge
shareholders the opportunity to participate in the earnings,
cash flow and growth potential of Phelps Dodge Inco.  For these
reasons and others, we strongly encourage Falconbridge
shareholders to tender their shares to Inco's increased Offer,"
Mr. Hand said.

        Phelps Dodge Responds to Revised Xstrata Offer
    
Phelps Dodge Corp. responds to Xstrata plc's revised offer for
Falconbridge Ltd. and Atticus Capital's announcement that it
does not support Phelps Dodge's proposed acquisition of Inco
Ltd.
    
J. Steven Whisler, chairman and chief executive officer of
Phelps Dodge, said, "We believe Inco's bid for Falconbridge,
which we fully support, represents the most compelling offer for
Falconbridge.  This is the only proposal that allows
Falconbridge shareholders to participate in the enormous
synergies and upside available only by combining these three
companies.  This is the best and final proposal for Falconbridge
that we will support.  It is time for Falconbridge shareholders
to decide what is truly in their best interests.
    
"Today's announcement by hedge fund Atticus Capital opposing our
proposed transactions does not surprise us at all. In our
planning for these transactions, we always assumed this would be
their position.
    
"Atticus has consistently recommended short-term strategies
based on their own objectives.  Our board of directors, which
has carefully considered all of Atticus' suggestions, has
concluded unanimously that our agreement with Inco is a superior
path to creating shareholder value in both the long run and the
short term. The transactions we have proposed will be
substantially and immediately accretive to cash flow, and the
new Phelps Dodge Inco will be well positioned for the future.
Fortunately, from the many conversations we have had with our
shareholders in recent weeks, we are confident that most Phelps
Dodge shareholders have come to see the compelling benefits of
these transactions."
    
                       About Xstrata

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

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

                     About Phelps Dodge

Phelps Dodge Corp. -- http://www.phelpsdodge.com/-- produces
copper and molybdenum and is the largest producer of molybdenum-
based chemicals and continuous-cast copper rod.  The company and
its two divisions, Phelps Dodge Mining Co. and Phelps Dodge
Industries, employ approximately 15,000 people worldwide.

                         About Inco

Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N)
-- http://www.inco.com/-- is the world's #2 producer of nickel,
which is used primarily for manufacturing stainless steel and
batteries.  Inco also mines and processes copper, gold, cobalt,
and platinum group metals.  It makes nickel battery materials
and nickel foams, flakes, and powders for use in catalysts,
electronics, and paints.  Sulphuric acid and liquid sulphur
dioxide are produced as byproducts.  The company's primary
mining and processing operations are in Canada, Indonesia, and
the UK.

                     About Falconbridge

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

                        *    *    *

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


FLOWSERVE CORP: Repays US$25 Mil. of Debt in 2nd Quarter of 2006
----------------------------------------------------------------
Flowserve Corp. has repaid US$25 million of debt in the second
quarter of 2006, including a US$20 million repayment on its
revolving credit facility, which reduced the revolver balance to
zero at the end of the quarter.

The Company also reported record second quarter bookings of
approximately US$900 million for 2006.  Second quarter 2006
bookings increased to approximately US$900 million, which
represents a second quarter record.  Organic bookings for 2006
compare with second quarter 2005 organic bookings of
approximately US$696 million, or reported 2005 bookings of
US$723 million.  Organic bookings increased about 29% in the
second quarter of 2006 compared with the organic bookings in the
prior year period, or about 25% on the reported basis.  Currency
had a negligible impact on second quarter 2006 bookings.

For the first six months of 2006, organic bookings increased to
a record level of approximately US$1.82 billion.  It represents
an increase of 32% compared with organic bookings of US$1.38
billion, and an increase of 27 percent over reported bookings of
US$1.44 billion, in the prior year period.  

Organic bookings exclude divested operations, where applicable,
in relevant periods and the effect of currency in 2006 periods.

"Our pump business has been extremely robust and achieved the
highest quarterly bookings increase among our business
segments," said Flowserve President and Chief Executive Officer
Lewis M. Kling.  "This bodes very well for the future, since
project-related purchases of valves typically lag those of pumps
in our customers' project investment cycle.  And, the increased
pump installed base provides us with greater aftermarket
opportunities, where our mechanical seal business has been
particularly strong."

                     About Flowserve Corp.

Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) --
http://www.flowserve.com/-- provides fluid motion and control  
products and services.  Operating in 56 countries, the company
produces engineered and industrial pumps, seals and valves as
well as a range of related flow management services.  In Latin
America, Flowserve operates in 36 countries such as the
Dominican Republic, Guatemala, Guyana and Belize.

                        *    *    *

As reported in the Troubled Company Reporter on July 5, 2006,
PricewaterhouseCoopers LLP in Dallas, Texas, said that Flowserve
has not maintained effective internal control over its financial
reporting as of Dec. 31, 2005.  The auditors found seven
material weaknesses in the Company's financial statements
indicating, among others, that the Company did not adequately
document the criteria for measuring hedge effectiveness at the
inception of certain derivative transactions, which primarily
affects accounts receivable, other expense, other comprehensive
income and accumulated other comprehensive income.

Flowserve Corp.'s corporate credit rating is rated 'BB-' by
Standard & Poor's Ratings Services while its short-term credit
rating stands at 'B-3'.  The Company's US$1 billion credit
facility carries S&P's 'BB-' rating.

Moody's Investors Service's rated the Company's US$1 billion
senior secured credit facilities at Ba3.  


* DOMINICAN REPUBLIC: CenBan Gov. Affirms Boost from US FTA
-----------------------------------------------------------
Hector Valdez Albizu, the governor of the Dominican Central
Bank, affirmed to the Dominican Today that his country's growth
rate would be bolstered when the DR-CAFTA takes effect.

The DR-CAFTA is a free trade zone that aims to eliminate tariffs
among countries involved on about 80% of U.S. exports to the
participating countries and the phasing out of other tariffs
over the subsequent decade.  As a result, DR-CAFTA does not
require substantial reductions in US import duties with respect
to the other countries, as the vast majority of goods produced
in the participating countries already enter the US duty-free
due to the US Government's Caribbean Basin Initiative.

As a result, the Dominican Republic expects an increase in
foreign investment brought by the establishment of a
nondiscriminatory treatment which contributes to the
transparency and legal security currently demanded by investors,
Dominican Today relates.

Additionally, the central bank's government believes that the
agreement will spur competitiveness in domestic markets and
positive external positioning for local products.   Furthermore,
Mr. Albizu said that the country will benefit from adopting
international standars in producing and marketing of goods and
services, Dominican Today says.

                        *    *    *

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: OVL Inks MOU to Bid for Oil Blocks in Country
-----------------------------------------------------------
India's OGNC Videsh Limited signed on July 19, 2006, a
memorandum of understanding with Petroecudor, Ecuador's state
oil firm, to bid for the exploration of oil and gas blocks in
the Southern American nation.

"PetroEcuador and OVL would collaborate in the area of
exploration and exploitation of hydrocarbons in Ecuador on
mutually agreed terms," Ecuador's external relations minister
Francisco Carrion Mena told reporters after the signing of the
MoU.

Press Trust India reports that OVL will also conduct research in
investing in liquid natural gas in the country.

Mr. Mena told India's The Telegraph that his country is mulling
to let OVL develop the ITT oil field, which reportedly has 5
billion barrels of in-place reserves that could potentially give
1 billion of recoverable reserves.

The ITT oil field is a very good prospect for exploration and
needs a large investment for oil to be produced, the Telegraph
says.

Other state-owned oil companies, such as those in Venezuela and
Mexico, have expressed interest in the oil field, and according
to Mr. Mena, Ecuador will see who has the better deal to offer,
the Telegraph relates.

OVL managing director R.S. Butola told the Telegraph that his
company hopes that the pact with Petroecuador will give OVL an
edge over the other firms.

According to the Telegraph, Mr. Mena said that the next round of
bidding is set for January, and OVL is expected to participate
in the auction in a joint venture with Petroecuador.

Ecuador also plans to sell 2 million barrels of oil per month to
India and to modernize its three downstream refineries, the
Telegraph said.  

Mr. Butola, however, told the Telegraph, that OVL will stick to
the oil exploration and production projects and said that the
downstream programs may be taken up either by MRPL, Indian Oil,
or Hindustan Petroleum.
Mr. Mena told Kuwait News, "The collaboration with OVL is to
promote government-to-government deals in areas like
exploration, refining, petrochemicals and power generation among
others."
                     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
=================


EMPRESA ELECRTICA: S&P Ups Foreign Curr. Rating to BB from BB-
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its foreign currency
rating on Empresa Electrica de Guatemala S.A. or EEGSA to 'BB'
from 'BB-', following the upgrade of the Republic of Guatemala
(foreign currency BB/Stable/B; local currency BB+/Stable/B) on
July 17, 2006.  At the same time, Standard & Poor's affirmed the
local currency rating on EEGSA at 'BB'.  The outlook is stable.
     
The 'BB' ratings on EEGSA are constrained by the significant
country risks relevant for a utility operating in Guatemala.
      
"In our opinion, the issuer faces a certain level of uncertainty
operating in a competitive market for electricity in a country
that, while stable today, has experienced periods of
macroeconomic instability," Standard & Poor's credit analyst
Fabiola Ortiz said.
     
The ratings are supported by the company's strong cash flow
protection measures and adequate liquidity.  EEGSA benefits from
a strong market position through its natural monopoly, as it
provides services to 70% of the total customers and covers 30%
of the total demand for energy in the most important regions in
Guatemala.

Another credit strength is the favorable regulatory framework
for the energy companies, particularly the favorable tariff
structure, proven under the current economic environment.  The
ratings also reflect management's experience and success in
Latin America.
     
The foreign and local currency ratings for EEGSA are unlikely to
exceed the sovereign foreign currency rating for Guatemala.  
This reflects our view of country risk for Guatemala as well as
the harsh impact on EEGSA that would result from the potential
set of negative events related to a sovereign foreign currency
default scenario.
      



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


KAISER ALUMINUM: Wants to Settle With Products Coverage Insurers
----------------------------------------------------------------
Kaiser Aluminum & Chemical Corporation asks the U.S. Bankruptcy
Court for the District of Delaware to:

   (i) approve its settlement agreements with Republic Indemnity
       Company, Transport Insurance Company, and Hudson
       Insurance Company; and

  (ii) authorize the sale of certain policies back to the
       corresponding issuers free and clear of liens, claims,
       encumbrances or other interests.

pursuant to Sections 105(a) and 363 of the Bankruptcy Code.

To obtain an adjudication of its rights for coverage under
certain insurance policies as to asbestos-related bodily injury
liabilities, Kaiser Aluminum & Chemical Corp. filed an action
against certain insurers before the Superior Court of
California, County of San Francisco.

Republic, Transport, and Hudson are three of the defendants in
KACC's Products Coverage Action.  They issued policies that
provide insurance coverage to KACC for these periods:

     Insurer                  Insurance Coverage
     -------                  ------------------
     Republic           April 1, 1984 to April 1, 1985
     Transport          April 1, 1984 to April 1, 1985
     Hudson             April 1, 1981 to April 1, 1984

KACC and the three insurers have engaged in separate
negotiations to resolve their disputes regarding the subject
policies, Kimberly D. Newmarch, Esq., at Richards, Layton &
Finger, in Wilmington, Delaware, relates.

Under their respective Settlement Agreements with KACC,

   (a) Republic agrees to make a US$1,500,000 settlement payment
       within 14 days after the Court grants final approval to
       the Settlement;

   (b) Transport will pay US$1,000,000 as settlement amount no
       later than 30 days after execution of the Settlement
       Agreement; and

   (c) Hudson agrees to pay US$500,000 before or on October 15
       each year from 2007 to 2012, for a total of US$3,000,000
       as settlement payment.

All three insurers will pay their Settlement Amounts to the U.S.
Bank National Association, as settlement account agent, unless
the Trigger Date has occurred, in which case, to Wells Fargo
Bank, N.A., as insurance escrow agent, for distribution to the
Funding Vehicle Trust.

The Trigger Date is the day that the last of these events has
occurred:

    -- the order approving the Settlement Agreement becomes a
       Final Order;

    -- the order confirming the Reorganizing Debtors' Plan
       becomes final; and

    -- the occurrence of the Plan Effective Date.

The Settlement Agreements also include these terms:

   (a) Republic, Transport and Hudson will receive all benefits
       of being designated as Settling Insurance Companies in
       the Plan of Reorganization, including the benefits of the
       Personal Injury Channeling Injunctions;

   (b) KACC releases all its rights with respect to the Subject
       Policies of the three insurers as well as its other
       rights under the three insurers' additional policies, and
       will dismiss Republic, Transport, and Hudson from the
       Products Coverage Action;

   (c) KACC will sell the Subject Policies back to their
       respective issuers, and the insurers will buy back the
       policies free and clear of all liens, claims, or
       interests, with the payment of the Settlement Amounts
       constituting the consideration for the buy-back;

   (d) If any claim is brought against Republic, Transport, or
       Hudson that is subject to a PI Channeling Injunction, the
       Funding Vehicle Trust will exercise all reasonable
       efforts to establish that the claim is enjoined as to the
       three insurers; and

   (e) Republic, Transport, and Hudson will not seek from any
       entity other than their reinsurers or retrocessionaires:

       * reimbursement of any payments that they are obligated
         to make under their Settlement Agreements;

       * any other payments they have made to or for the benefit
         of KACC or, upon its creation, the Funding Vehicle
         Trust, under the Subject Policies, whether by way of
         contribution, subrogation, indemnification or
         otherwise.

       In no event will the three insurers make any claim for or
       relating to the insurance, reinsurance or retrocession
       against any KACC Party.

The Settlement Agreements also contain certain rights to
adjustment of the Settlement Amount if Asbestos Legislation is
enacted into law before the earlier of the Trigger Date and
July 31, 2006.

                    About Kaiser Aluminum

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading    
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company, along with its Jamaican subsidiaries
-- Alpart Jamaica Inc. and Kaiser Jamaica Corporation -- filed
for chapter 11 protection on Feb. 12, 2002 (Bankr. Del. Case No.
02-10429), and has sold off a number of its commodity businesses
during course of its cases.  Corinne Ball, Esq., at Jones Day,
represents the Debtors in their restructuring efforts. Lazard
Freres & Co. serves as the Debtors' financial advisor.  Lisa G.
Beckerman, Esq., H. Rey Stroube, III, Esq., and Henry J. Kaim,
Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, and William P.
Bowden, Esq., at Ashby & Geddes represent the Debtors' Official
Committee of Unsecured Creditors.  The Debtors' Chapter 11 Plan
became effective on July 6, 2006.  On June 30, 2004, the Debtors
listed US$1.619 billion in assets and US$3.396 billion in debts.  
(Kaiser Bankruptcy News, Issue No. 101; Bankruptcy Creditors'
Service, Inc., 609/392-0900)




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


AXTEL SA: Posts 14% Revenues Increase in Second Qtr. of 2006
------------------------------------------------------------
Axtel, S.A. de C.V. disclosed its unaudited second quarter
results ended June 30, 2006.  
    
Axtel derives its revenues from:

   -- Local calling services. Axtel generates revenue by
      enabling its customers to originate and receive an
      unlimited number of calls within a defined local service
      area.  Customers are charged with a flat monthly fee for
      basic service, a per call fee for local calls, a per
      minute usage fee for calls completed on a cellular line
      and a monthly fee for value added services and internet
      when requested by the customer.
     
   -- Long distance services.  Axtel also generates revenues by
      providing long distance services (domestic and
      international) for its customers' completed calls.

   -- Other services. The company generates revenues from other
      services, which include activation fees for new customers
      as well as data, interconnection and dedicated private
      line service charged on a monthly basis.

Revenues from operations increased to MXN1.414 billion in the
second quarter of year 2006 from MXN1.241 billion for the same
period in 2005, an increment of MXN172.9 million or 14%.  
Axtel's lines in service at the end of the second quarter of
2006 totaled 696,968 compared to 529,653 at the end of the same
period in 2005, an increase of 32%.
    
Revenues from operations totaled MXN5.351 billion in the twelve
month period ended June 30, 2006, compared to MXN4.528 billion
in the same period in 2005, an increase of MXN823.7 million or
18%.
    
                     Local Services

Local service revenues amounted to MXN1.025 billion for the
three-month period ended June 30, 2006, compared to MXN892.1
million for the same period ended in 2005, an increase of
MXN132.9 million or 15%.  For the twelve-month period ended June
30, 2006, revenue from local services totaled MXN3.881 billion,
an annual improvement of MXN668.4 million, or 21%, from MXN3.213
billion recorded in the same period in 2005.  The main drivers
of these improvements were increased monthly rents and revenues
from cellular consumption originated from higher number of lines
in service in existing and new cities.
    
                 Long distance services

Long distance service revenues amounted to MXN121.6 million for
the three-month period ended June 30, 2006, compared to MXN115.8
million in the same period in 2005, an increase of MXN5.7
million or 5%.  For the twelve-month period ended June 30, 2006,
long distance services grew to MXN464.3 million from MXN429.9
million registered in the same period in 2005, an increment of
MXN34.4 million or8%.

                      Other services

Revenue from other services totaled MXN267.7 million in the
second quarter of 2006, a positive variation of MXN34.3 million,
or 15%, from MXN233.4 million registered in the same period in
2005.  Other services revenue increased to MXN1.005 billion for
the twelve month period ended June 30, 2006, from MXN884.5
million for the same period in year 2005, an increment of
MXN120.9 million or 14%.

                       Consumption
    
Local calls totaled 480.0 million in the three-month period
ended June 30, 2006, an increase of 83.2 million, or 21%, from
396.7 million recorded in the same period in 2005.  For the
twelve month period ended June 30, 2006, local calls increased
to 1,798.2 million from 1,386.9 million registered in the same
period in 2005, an increment of 411.3 million calls or 30%.  A
higher number of lines in service was the main driver for these
increases.
    
Minutes of use of calls completed to a cellular line amounted to
190.2 million in the three-month period ended June 30, 2006,
compared to 145.2 million in the same period in 2005, a 31%
improvement equivalent to 45 million.  For the twelve month
period ended June 30, 2006, cellular minutes grew 184.4 million,
or 37%, from 505.1 million registered in the twelve-month period
ended June 30, 2005, to 689.5 million in the same period in
2006.
    
Long distance minutes increased to 144.4 million for the three-
month period ended June 30, 2006 from 120.3 million in the same
period in 2005, an increment of 24.1 million or 20%.  For the
twelve-month period ended June 30, 2006, long distance minutes
amounted 523.8 million, compared to 423.5 million registered in
the same period in 2005, an increase of 100.3 million of
minutes, or 24%.  These increases are explained by the larger
consumption of bundled offers that incorporate long distance
minutes.
    
             Cost of Revenues and Operating Expenses
    
Our costs are categorized as:

   -- Cost of revenues include expenses related to the
      termination of Axtel's customers' cellular and long
      distance calls in other carriers' networks, as well as
      expenses related to billing, payment processing, operator
      services and our leasing of private circuit links.

   -- Operating expenses include costs incurred in connection
      with general and administrative matters which incorporate
      compensation and benefits, the costs of leasing land
      related to our operations and costs associated with sales
      and marketing and the maintenance of our network.

   -- Depreciation and amortization includes depreciation of all
      communications network and equipment and amortization of
      preoperating expenses and the cost of spectrum licenses.

For the three-month period ended June 30, 2006, the cost of
revenues totaled MXN433.6 million, an increase of MXN45.0
million compared with the same period of year 2005.  For the
twelve month period ended June 30, 2006, the cost of revenues
reached MXN1,643.5 million, an increase of MXN195.9 million in
comparison with the same period in year 2005.  These increments
were mainly due to a higher consumption in cellular minutes.
    
For the second quarter of 2006, the gross profit accounted for
MXn980.7 million, an increase of MXN127.9 million or 15%,
compared with the same period in year 2005.  For the twelve-
month period ended June 30, 2006, our gross profit totaled
MXN3,708.0 million, compared to MXN3,080.3 million recorded in
the same period of year 2005, a positive variation of MXN627.7
million or 20%.
    
For the second quarter of year 2006, operating expenses grew
MXN56.3 million, or 13%, totaling MXN477.7 million compared to
MXN421.5 million for the same period in year 2005.  The two main
factors that generated this increment were the greater customer
base and business scale in the twelve cities in operations in
the second quarter of 2005, and the incremental expenses
associated with the four new cities opened in 2006.  For the
twelve-month period ended June 30, 2006, operating expenses
added MXN1,792.4 million, coming from MXN1,615.4 million in the
same period in 2005, an increase of MXN176.9 million.  This
increase was attributable primarily to salaries, rents, sales
commissions and network maintenance based on the current
operational level of the Company.
    
                  Adjusted EBITDA and Others
    
Adjusted EBITDA.  The Adjusted EBITDA was MXN 503 million for
the three- month period ended June 30, 2006 as compared to
MXN431.3 million for the same period in 2005, an increase of
17%.  As a percentage of total revenues it was 35.6% for the
three-month period ended June 30, 2006.  For the twelve-month
period ended June 30, 2006 amounted to MXN1.915 billion,
compared to MXN1.464 billion in the same period in year 2005, a
positive variation of MXN450.7 million, or 31%.
    
                 Depreciation and Amortization

As a result of the continuing expansion of Axtel's asset base,
depreciation and amortization totaled MXN332.0 million in the
three-month period ended June 30, 2006 compared to MXN273.5
million for the same period in year 2005, an increase of MXN58.5
million or 21%. Depreciation and amortization for the twelve-
month period ended June 30, 2006 reached MXN1.273 billion, from
MXN1.081 billion in the same period in year 2005, an increment
of MXN191.5 million, or 18%.
   
                        Operating Income

Operating income totaled MXN170.9 million in the three-month
period ended June 30, 2006 compared to an operating income of
MXN157.8 million registered in the same period in year 2005, an
increase of MXN13.1 million or 8%.  For the twelve-month period
ended June 30, 2006 our operating income reached MXN642.6
million when compared to the income registered in the same
period of year 2005 of MXN383.4 million, an increment of
MXN259.2 million or 68%.
    
                 Comprehensive financial result

The comprehensive financial loss was MXN89.8 million for the
three-month period ended June 30, 2006, compared to a gain of
MXN14.4 million for the same period in 2005.  The loss evidenced
in the second quarter of 2006 was a result of a significant non-
cash foreign exchange loss of MXN40.6 million, compared to a
gain of MXN91.8 million in the same period in 2005, partially
offset by a decrease of MXN30.0 million in net interest expense
due to our reduced indebtedness level.  For the twelve-month
period ended June 30, 2006, the comprehensive financial result
recorded a loss of MXN361.6 million, compared to MXN129.0
million in the same period in 2005, an increment of MXN232.5
million.  The comprehensive financial result was affected in
MXN105.8 million by the partial early redemption of our 11%
Senior Notes, compensated in part by an increment of MXN51.3
million in interest income.
    
                   Capital Expenditures

Axtel invested MXN379.3 million in fixed assets during the
second quarter of 2006 vs. MXN325.0 million during the same
period in 2005, a 17% increase.  For the twelve month period
ended June 30, 2006, Axtel invested MXNb/744.9 million in fixed
assets compared to MXN1.654 billion in the same period of year
2005, an increase of MXN90.1 million.  This investment was
targeted towards the expansion of our network infrastructure in
current and new cities.
    
                       Highlights

In June 2006, Axtel extended the business agreement with Nextel
de Mexico through December 31, 2007.  Additionally, during the
second quarter of 2006, AXTEL launched operations in Celaya,
increasing AXTEL's presence to 16 cities.

                       About Axtel

Axtel, S.A. de C.V. provides local and long distance
telecommunications services, data transmission and Internet
services in Mexico, to both residential and business customers.
The company has 600,000 installed lines.  Axtel posted net
profits of MXP306 million (US$29 million) for 2005 compared
to a loss of MXP79.6 million in 2004.

                        *    *    *

As reported in the Troubled Company Reporter on June 21, 2006,
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Monterrey, Mexico-based
telecommunications service provider Axtel S.A. de C.V. to 'BB-'
from 'B+'.  The outlook was revised to stable from positive.
The rating on Axtel's US$162 million senior notes due 2013 was
also raised to 'BB-' from 'B+'.


EL POLLO: Extends Tender Offer Expiration to August 11
------------------------------------------------------
El Pollo Loco Inc. and EPL Intermediate Inc. disclosed that, in
connection with the tender offer and consent solicitation by El
Pollo Loco for its 11-3/4% Senior Notes Due 2013 and by
Intermediate for its 14-1/2% Senior Discount Notes Due 2014, the
companies are further extending the expiration time of the Offer
to 5 p.m., New York City time, on Aug. 11, 2006.

As of June 26, 2006, El Pollo Loco had received tenders and
consents for US$125,726,000 in aggregate principal amount of the
11-3/4% Notes, representing 100% of the outstanding 11-3/4%
Notes and Intermediate had received tenders and consents for
US$39,342,000 in principal amount at maturity of the 14-1/2%
Notes, representing 100% of the outstanding 14-1/2% Notes.

The requisite consents to adopt the proposed amendments to the
indentures governing the Notes have been received, and
supplemental indentures to effect the proposed amendments
described in the Offer to Purchase and Consent Solicitations
Statement, dated May 15, 2006 have been executed.  However, the
amendments will not become operative until the Notes are
accepted for payment pursuant to the terms of the Offer.

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

   -- consummation of the Common Stock Offering,
   
   -- El Pollo Loco entering into a new credit facility,

   -- a requisite consent condition,

   -- a minimum tender condition,

   -- condition that each of the Offers be consummated and
      that each of El Pollo Loco and Intermediate receives
      consents from a majority of holders of each of the
      11-3/4% Notes and the-14 1/2% Notes and

   -- other general conditions.

Except as described above, all other provisions of the Offer
with respect to the Notes are as presented in the Offer to
Purchase.  The company reserves the right to further amend or
extend the Offer in its sole discretion.

Requests for documents may be directed to the information agent
for the Offer at:

            Global Bondholder Services Corp.
            Tel: 866-937-2200

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

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

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

                        *    *    *

As reported in the Troubled Company Reporter on May 23, 2006,
Standard & Poor's Ratings Services expects to raise its
corporate credit rating on El Pollo Loco Inc. to 'B+' from 'B'
upon the successful completion of the company's planned IPO.
S&P said the outlook is stable.  Standard & Poor's also assigned
a 'B+' rating, same as the expected corporate credit rating, to
the company's planned US$200 million senior secured bank loan.  
A recovery rating of '2' is also assigned to the loan,
indicating the expectation for substantial recovery of principal
in the event of a payment default.

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


GRUPO IUSACELL: Still Implements Restructuring of Unit's Debt
-------------------------------------------------------------
Grupo Iusacell, S.A. de C.V. will continue to implement the
legal steps to implement the restructuring of the debt of its
operating subsidiary, Grupo Iusacell Celular in accordance with
the agreements previously reached with the majority of its
creditors, and supported by further creditors through their
participation to date in the exchange offer and consent
solicitation of Iusacell Celular launched on May 25, 2006.
    
Iusacell Celular reached an agreement in principle with a
majority of its secured creditors, and has continued to received
the support of additional creditors by means of their
participation in the Exchange Offer the expiration of which has
been extended to July 26, 2006, 5:00 p.m. New York City Time,
unless extended by Iusacell Celular.

The debt of Iusacell Celular is comprised of:

   -- US$190 million of Tranche A Bank Loans,
   -- US$76 million of Tranche B Bank Loans and
   -- US$150 million 10% Senior Notes due in 2004.
    
As described in the Information Memorandum dated May 25,
2006, and supplemented on June 29, 2006 and July 14, 2006, the
proposed restructuring generally consists of an exchange of the
Tranche A Loans for new senior floating rate first lien notes
due 2011 and an exchange of the Tranche B Loans and the Existing
Notes for 10% senior subordinated second lien notes due 2012.  
Iusacell Celular intends to implement the Restructuring by
filing of a plan of reorganization (convenio concursal) under
the Mexican Business Reorganization Act (Ley de Concursos
Mercantiles).  To implement its decision, Iusacell Celular filed
for concurso mercantil, and will in due course provide further
information to its creditors relating to the Plan of
Reorganization and the concurso mercantil proceedings in
accordance with the Mexican Business Reorganization Act.
    
Once the Plan of Reorganization is approved by the Mexican court
and the other terms and conditions of the Restructuring are met,
Iusacell Celular expects that the Tranche A Loans, Tranche B
Loans and Existing Notes will be exchanged for new notes as
described above. During the pendency of the concurso mercantil
proceedings, Iusacell Celular expects that it and its
subsidiaries will continue to operate normally.
    
"The vote of confidence expressed by the majority of our
creditors through their support of the Exchange Offer to date is
enabling us to continue with the implementation of our
restructuring and gives us the ability to continue with our plan
to build a strong company that will benefit our creditors,
shareholders, customers, suppliers and all of the people related
directly or indirectly to Iusacell" commented Gustavo Guzman,
CEO of Iusacell.

                    About Grupo Iusacell

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

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

On July 14, 2006, Gramercy Emerging Markets Fund, Pallmall
LLC and Kapali LLC, owed an aggregate amount of US$55,878,000
filed an Involuntary Chapter 11 Case against Grupo Iusacell.


MERIDIAN AUTOMOTIVE: Court to Hold Disclosure Hearing Today
-----------------------------------------------------------
Judge Walrath of the U.S. Bankruptcy Court for the District of
Delaware adjourned the hearing to consider Meridian Automotive
Systems, Inc., and its debtor-affiliates' Disclosure Statement
for the Third Amended Joint Plan of Reorganization from
July 17, 2006, to July 21, 2006.

                  USW Withdraws Objection

United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,
Allied Industrial and Service Workers International Union
withdraws its objection to the Disclosure Statement explaining
the Debtors' First Amended Joint Plan of Reorganization.

Susan E. Kaufman, Esq., at Heiman, Gouge & Kaufman, LLP, in
Wilmington, Delaware, notes that appropriate language has been
inserted in the Disclosure Statement for the Third Amended Joint
Plan of Reorganization, which satisfies USW's objection.

As reported in the Troubled Company Reporter on June 29, 2006,
the Union objected to the Debtors' Disclosure Statement
explaining their First Amended Joint Plan of Reorganization.

As reported in the Troubled Company Reporter on July 6, 2006,
the Third Amended Plan, among others, adds another batch of
defined terms, amends the treatment of some classes of claims,
revises the Preferred Equity Offering and gives assurance on the
continuance of the Company's retiree benefits program.

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies   
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.  
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens.  When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.  
(Meridian Bankruptcy News, Issue No. 33; Bankruptcy Creditors'
Service, Inc., 215/945-7000).




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


* NICARAGUA: Government Doesn't Support Oil Deal with PDVSA
-----------------------------------------------------------
President Enrique Bolanos' government is not endorsing an oil
agreement inked in April between the Association of Nicaraguan
Municipalities and Venezuelan state oil holding Petroleos de
Venezuela SA, El Universal reports.

Nicaraguan Foreign minister Norman Caldera underscored that the
deal would not benefit all Nicaraguans, but only 87 mayoralties
under the control of the opposition Sandinist Front for National
Liberation, El Universal says.

AMUNIC and Petroleos de Venezuela have agreed on the yearly
supply of 10 million barrels of petrol to Nicaragua under
preferential terms -- 60% of the gasoline and diesel purchased
from Venezuela would have a 90-day term at the international
market price.  The rest would have a two-year grace period and a
23-year credit at 1% interest.

According to the foreign minister, Nicaragua prefers the
enforcement of the Caracas Energy Agreement in order to obtain
oil under preferential terms, and to make Venezuela pardon its
US$31.3 billion, El Universal states.

Moody's Investor Service assigned these ratings to Nicaragua:

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




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


* PANAMA: Five Firms File Documents for Pacific Port Concession
---------------------------------------------------------------
Five firms have already filed pre-qualification documents for
the concession to build and operate the Pacific port of the
Panama Canal, which is scheduled to operate by the end of 2009,
a source from Panama's maritime authority -- Autoridad Maritima
de Panama -- told Business News Americas.

BNamericas reports that the five firms that handed their
documents include:

   -- Cosco Pacific Limited of China,
   -- Hutchison Ports Holding of Hong Kong,
   -- Marine Terminal Corp., of the US,
   -- Danish firm APM Terminal and
   -- Singapore Port Authority.    

The AMP source told BNamericas that the names of the pre-
qualified firms will be announced within 10 to 30 days after the
filing of the documents.  The international tender process for
the port's concession will proceed after the announcment.  

BNamericas source said that the port project will require an
investment of approximately US$600 million to US$1 billion,
depending on the type of material that the concessionaire will
use. Whoever wins the concession will enjoy it for 20 years and
will have the option to extende the contract for another 20
years, BNamericas relates.

BNAmericas adds that in 2005, the AMP conducted feasibility and
sustainability studies in constructing the "megaport," which
will be built on a 112-hectare land in Palo Seco in Farfan.

                        *    *    *

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 E R U
=======


CELLSTAR CORP: Earns US$2.7 Million in Second Quarter 2006
----------------------------------------------------------
CellStar Corp. reported a consolidated net income of US$2.7
million for the quarter ended May 31, 2006, compared to a
consolidated net loss of US$9.4 million in 2005.  For the second
quarter of 2006, the Company reported income from continuing
operations of US$2.1 million compared to a loss of US$1.8
million in the same period in 2005.  The Company's revenues for
the quarter decreased to US$216.8 million from US$261.8 million
in the same period last year.  

As of May 31, 2006, the Company reported year-to-date income
from continuing operations of US$4.2 million compared to a loss
of US$5.2 million in 2005.  Year-to-date through May 31, 2006,
the Company reported consolidated net income of US$4.8 million
compared to a consolidated net loss of US$13.8 million in 2005.  

The Company reported year-to-date revenues through May 31, 2006,
of US$422.5 million compared to US$488.8 million in 2005.  A
revenue increase in the North American Region of US$17.8 million
was offset by a decline of US$84.2 million in the Latin American
Region.  Despite the loss of a portion of the North American
Region's insurance replacement business in April 2006, revenues
increased US$17.8 million or 8.6% compared to year-to-date 2005.  
The increase was due primarily to the regional carrier business.  
The decline in revenues in the Latin American Region was
primarily in the Miami operations related to reduced handset
sales to Telefonica Moviles S.A., a carrier customer in
Colombia.

Consolidated gross profit increased to US$16.6 million in the
second quarter of 2006 compared to US$13.8 million in 2005.  The
increase in gross profit was primarily in the North American
Region and the Mexico operations.  Gross profit as a percentage
of revenues was 7.7% compared to 5.3% in the second quarter of
2005.

                 Consolidated Balance Sheet

Cash and cash equivalents decreased to US$18.2 million, from
US$26.5 million at February 28, 2006.  The balance sheet changes
led to a cash generation from operating activities of US$18.9
million in the second quarter of 2006.  Cash was used to pay
down the domestic revolving credit facility.

As of May 31, 2006, the Company had borrowed US$9.9 million
under its domestic revolving credit facility, a decrease of
US$27.1 million from US$37.0 million at February 28, 2006.  At
May 31, 2006, the Company had additional borrowing availability
under the credit facility of US$19.6 million.  At July 3, 2006,
the Company had borrowed US$15.8 million and had additional
borrowing availability of US$20.5 million under the Facility.

                   About CellStar Corp.

Coppell, Texas-based CellStar Corp. -- http://www.cellstar.com/
-- provides logistics and distribution services to the wireless
communications industry.  CellStar has operations in North
America and Latin America, and distributes handsets, related
accessories and other wireless products from manufacturers to a
network of wireless service providers, agents, MVNOs,
insurance/warranty providers and big box retailers.  CellStar
specializes in logistics solutions, repair and refurbishment
services, and in some of its markets, provides activation
services.

Cellstar has more than 100,000 prepaid cellular subscribers in
its operations in Peru and Venezuela.

                          *     *     *

CellStar Corp.'s 5% Convertible Subordinated Notes due 2002
carries Moody's Investors Service's Ca2 rating.




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


ADELPHIA: BofA Wants Stay Lifted to File Financing Documents
------------------------------------------------------------
Pursuant to the Century Credit Agreement dated April 14, 2000,
Bank of America and the other members of the Century Facility
lending syndicate had claims and liens in the equity interests
of certain non-debtor entities owned directly or indirectly by
the Rigas family.

Borrowers under the Century Credit Agreement are:

   * Adelphia Cablevision Corp.,
   * Adelphia Cablevision of Boca Raton, LLC,
   * Adelphia Cablevision of Fontana, LLC,
   * Adelphia Cablevision of Inland Empire, LLC,
   * Adelphia Cablevision of Newport Beach, LLC (PDG: Ft. Myers
     Debtor Group),
   * Adelphia Cablevision of Orange County II, LLC,
   * Adelphia Cablevision of Orange County, LLC (PDG: Ft. Myers
     Debtor Group),
   * Adelphia Cablevision of San Bernardino, LLC,
   * Adelphia Cablevision of Seal Beach, LLC,
   * Adelphia Cablevision of West Palm Beach III, LLC,
   * Adelphia Cablevision of West Palm Beach IV, LLC,
   * Adelphia Cablevision of West Palm Beach V, LLC,
   * Adelphia Cleveland, LLC,
   * Adelphia Communications of California II, LLC,
   * Adelphia Communications of California, LLC,
   * Adelphia of the Midwest, Inc. ,
   * Adelphia Pinellas County, LLC (PDG: Ft. Myers Debtor
     Group),
   * Adelphia Prestige Cablevision, LLC,
   * Badger Holding Corporation,
   * Blacksburg/Salem Cablevision, Inc.,
   * Brazas Communications, Inc. ,
   * California Ad Sales, LLC (PDG: Ft. Myers Debtor Group),
   * Century Berkshire Cable Corp.,
   * Century Cable Holdings, LLC,
   * Century Colorado Springs Partnership,
   * Century Granite Cable Television Corp.,
   * Century Indiana Corp.,
   * Century Island Associates, Inc.,
   * Century Island Cable Television Corp.,
   * Century Mendocino Cable Television, Inc.,
   * Century Mountain Corp.,
   * Century New Mexico Cable Television Corp.,
   * Century Ohio Cable Television Corp.,
   * Century Southwest Colorado Cable Television Corp.,
   * Century Trinidad Cable Television Corp.,
   * Century Virginia Corp.,
   * Century Warrick Cable Corp.,
   * Century Wyoming Cable Television Corp.,
   * Clear Cablevision, Inc.,
   * CMA Cablevision Associates VII, L.P.,
   * CMA Cablevision Associates XI, Limited Partnership,
   * E. & E. Cable Service, Inc.,
   * Eastern Virginia Cablevision, L.P.,
   * Ft. Myers Cablevision, LLC (PDG: Ft. Myers Debtor Group),
   * Grafton Cable Company,
   * Harron Cablevision of New Hampshire, Inc.,
   * Huntington CATV, Inc.,
   * Louisa Cablevision, Inc.,
   * Manchester Cablevision, Inc.,
   * Martha's Vineyard Cablevision, L.P.,
   * Mickelson Media, Inc.,
   * Owensboro Indiana, L.P.,
   * Owensboro on the Air, Inc.,
   * Paragon Cable Television Inc.,
   * Paragon Cablevision Construction Corporation,
   * Paragon Cablevision Management Corporation,
   * S/T Cable Corporation,
   * Scranton Cablevision, Inc.,
   * Sentinel Communications of Muncie, Indiana, Inc.,
   * Southwest Colorado Cable, Inc.,
   * Star Cable Inc.,
   * Tele-Media Company of Tri-States L.P.,
   * The Westover T.V. Cable Co., Incorporated,
   * TMC Holdings Corporation,
   * Tri-States, L.L.C.,
   * Wellsville Cablevision, L.L.C.

Pursuant to the Court-approved global settlement among Adelphia
Communications Corporation and its debtor-affiliates, the
Securities and Exchange Commission, the Rigases, and the
Department of Justice, the Rigases agreed to forfeit certain
assets to the United States government, including the equity
interests in the Rigas-Managed Entities.

As part of the settlement, the Government then returned certain
of the forfeited assets to the Debtors, free and clear of all
liens, including the Century Lenders' liens.

However, to place the Century Lenders in the same position as
they were prior to the forfeiture of the Century RMEs, the
Government Settlement Order automatically granted the Century
Lenders claims and perfected liens in those assets to the same
extent and validity as were held prior to forfeiture.

On March 31, 2006, certain RMEs and certain newly formed
entities that hold the interests in certain forfeited entities
filed their own Chapter 11 petitions.  Although the Government
Settlement Order automatically granted the Century Lenders
claims and perfected liens in the equity interests of the
Century RME Debtors, in furtherance of the Government Settlement
Order, Bank of America has requested and the Debtors have agreed
to make perfection steps by:

    (i) exchanging the stock certificates of the Century RME
        Debtors; and

   (ii) allowing Bank of America to file new UCC financing
        statements for the Century RME Debtors.

Out of an abundance of caution, Bank of America asks the U.S.
Bankruptcy Court for the Southern District of New York to modify
the automatic stay in the Century Debtors' and Century RME
Debtors' Chapter 11 cases to allow it to perform the Perfection
Steps.

Judith Elkin, Esq., at Haynes and Boone, LLP, in New York,
relates that Bank of America has conferred with the Century
Debtors and the Century RME Debtors, and they do not oppose the
modification of the automatic stay.

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

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly adminsitered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.  (Adelphia Bankruptcy News, Issue No. 139; Bankruptcy
Creditors' Service, Inc., 215/945-7000)


GLOBAL HOME: Will Auction Off WearEver Business on August 7
-----------------------------------------------------------
Global Home Products, LLC, and its debtor-affiliates will be
conducting an auction of their WearEver cookware and bakeware
businesses on Aug. 7, 2006, at 10:00 a.m. (Eastern Time) at:

   Pachulski Stang Ziehl Young Jones & Wientraub LLP
   919 North Market Street, 17th Floor
   P.O. Box 8705
   Wilmington, DE 19801

The businesses to be sold are:

   * Mirro Acquisition Inc.,
   * Mirro Puerto Rico, Inc.,
   * Mirro Operating Company LLC, and
   * 690949 BC, Ltd.

Lifetime Brands, Inc., is the stalking horse bidder, offering to
pay US$21 million for the assets.  Competing bids must be
received by Aug. 3, 2006, at 4:00 p.m. (Eastern Time) by:

   (a) Debtors' counsel:

       Laura Davis Jones
       Pachulski Stang Ziehl Young Jones & Wientraub LLP
       919 North Market Street, 17th Floor
       P.O. Box 8705
       Wilmington, DE 19801

   (b) Debtors

       Mark Eichhorn
       Interim Chief Executive Office
       Randal Rombeiro
       Chief Financial Officer
       Global Home Products, LLC
       550 Polaris Parkway, Suite 500
       Westerville, Ohio 43082

   (c) Debtors' investment bankers

       Adam L. Dunayer
       Houlihan Lokey Howard & Zukin Capital Inc.
       200 Crescent Court, Suite 1900
       Dallas, Texas 75201

The Court will hold a hearing on Aug. 8, 2006, to approve the
sale.

                        About Global Home

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


MUSICLAND HOLDING: Ct. Lifts Stay to Let Xerox Set-Off Deposit
--------------------------------------------------------------
The Honorable Stuart M. Bernstein of the U.S. Bankruptcy Court
for the Southern District of New York modified the automatic
stay to allow Xerox Capital Services, LLC, to apply the
US$200,000 security deposit to its US$1,023,805 claim.

Xerox will amend its claim to reflect application of the
Security Deposit and to turn over any surplus funds exceeding
its allowed claim.

The Court ruled that Xerox will not to file a motion to compel
acceptance or rejection of the Leases as long as Musicland
Holding Corp. and its debtor-affiliates do not become
delinquent, for more than 90 days, on their postpetition
payments to Xerox.

As reported in the Troubled Company Reporter on July 3, 2006,
Xerox as servicing agent for Xerox Corporation, holds a
US$1,023,805 claim, pursuant to certain leases for goods and
services it executed with Musicland Holding on April 19, 2004.

On May 4, 2004, in connection with the execution of the Leases,
the Debtors provided Xerox with a US$200,000 security deposit,
Chantel K. Adams, Esq., at Kizer, Hood & Morgan, L.L.P., in
Baton Rouge, Louisiana, told the Court.  The Leases provide that
Xerox can apply any of the deposit towards the obligations owed
by Debtors.

Xerox was owed a debt by the Debtors as evidenced by its proof
of claim, Ms. Adams stated.  Xerox also owed an obligation to
the Debtors in the form of the security deposit it is holding.

Ms. Adams asserted that the Debtors' debt and Xerox's obligation
to the Debtors are mutual obligations.  Thus, Xerox should be
allowed the right to set off the security deposit against its
claims for services and goods under non-bankruptcy law.

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 US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 14; Bankruptcy Creditors' Service, Inc., 215/945-7000)


MUSICLAND HOLDING: Moves for Summary Judgment on Deluxe's Lien
--------------------------------------------------------------
Musicland Holding Corp. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Southern District of New York to grant
partial summary judgment in their favor, and deny Deluxe Media
Services, Inc.'s statutory lien claim.

As reported in the Troubled Company Reporter on April 19, 2006,
Deluxe provided warehousing and fulfillment services to the
Debtors pursuant to a Logistics Service Agreement by and between
Musicland Purchasing Corp. and Deluxe dated March 26, 2004.

On March 8, 2006, Deluxe asked the Court to compel the Debtors
to pay its alleged US$4,142,931 prepetition lien.  Pursuant to
the LSA, Deluxe also asserted that it is also entitled to
interest on the Total Lien Amount at prime plus 4% per annum.

Subsequently, pursuant to Court-approved expedited procedures
for the rejection of executory contracts, the Debtors rejected
the LSA.

Jonathan P. Friedland, Esq., at Kirkland & Ellis LLP, in New
York, contends that Deluxe's claimed US$4,142,931 statutory
warehouseman's lien is not restricted to the warehouse charges
applicable to the specific goods in its possession as of
January 22 or 26, 2006 -- the dates referred to in the Final DIP
Order for setting the value of Deluxe's contested lien.

According to Mr. Friedman, Deluxe is actually asserting a lien
for all of its unpaid prepetition charges as of Sept. 1, 2005,
even if majority of the goods for which the charges were
incurred had left its warehouse by Jan. 22, 2006.  "Since it is
undisputed that Deluxe failed to include a notice of a general
lien claim in any of the documents it contends constitute its
warehouse receipts, it is precluded from asserting such a
general lien."

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
USUS$100 million in assets and debts.  (Musicland Bankruptcy
News, Issue No. 14; Bankruptcy Creditors' Service, Inc.,
215/945-7000)


OCA INC: Has Until August 14 to Remove State Court Civil Actions
----------------------------------------------------------------
The Honorable Jerry B. Brown of the U.S. Bankruptcy Court for
the Eastern District of Louisiana extended the period within
which OCA, Inc., and its debtor-affiliates can remove state
court civil actions either to the U.S. District Court for the
Eastern District of Louisiana or its Bankruptcy Court to
Aug. 14, 2006.

Tristan Manthey, Esq., at Heller, Draper, Hayden, Patrick &
Horn, L.L.C., New Orleans, Louisiana told the Court that the
additional enlargement of time sought will afford the Debtors an
opportunity to make fully informed decisions concerning removal
of any Civil Action and will ensure that the Debtors do not
forfeit valuable rights under Section 1452 of the Judiciary
Procedures Code.  The rights of the Debtors' adversaries will
not be prejudiced by the extension.  Any party to a Civil Action
that is removed may seek to have it remanded to the applicable
court on any equitable ground.

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 debtor-affiliates 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  A N D  T O B A G O
==================================-


BRITISH WEST: CEO Not Surprised by Privatization Talks
------------------------------------------------------
British West Indies Airlines' chief executive officer Peter
Davies said that the government's decision to privatize the
airline does not surprise him, the Trinidad & Tobago Express
reports, citing the Daily Express.

According to the airline's communications manager, Dionne
Ligoure, Mr. Davies has been ordered by the government to
undertake the successful turnaround of BWIA for eventual
privatization, the Express relates.

Privatization would ensure that BWIA provides safe, effective
and profitable transportation, extending the airline purpose of
connecting the Caribbean to the world, the Express says, citing
Ms. Ligoure.

Speaking to the Daily Express, Raymond Small, the general
secretary of the Communication, Transport and General Workers
Union, said the unions representing BWIA workers had "never
known" about "any privatization plan."

The Union's officer said he would not object to BWIA's
privatization if the identity and purpose of the airline remains
the same, the Express states.

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.




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


PETROLEOS DE VENEZUELA: Nicaraguan Pres. Snubs AMUNIC Oil Pact
--------------------------------------------------------------
President Enrique Bolanos' government is not endorsing an oil
agreement inked in April between the Association of Nicaraguan
Municipalities and Venezuelan state oil holding Petroleos de
Venezuela SA, El Universal reports.

Nicaraguan Foreign minister Norman Caldera underscored that the
deal would not benefit all Nicaraguans, but only 87 mayoralties
under the control of the opposition Sandinist Front for National
Liberation, El Universal says.

AMUNIC and Petroleos de Venezuela have agreed on the yearly
supply of 10 million barrels of petrol to Nicaragua under
preferential terms -- 60% of the gasoline and diesel purchased
from Venezuela would have a 90-day term at the international
market price.  The rest would have a two-year grace period and a
23-year credit at 1% interest.

According to the foreign minister, Nicaragua prefers the
enforcement of the Caracas Energy Agreement in order to obtain
oil under preferential terms, and to make Venezuela pardon its
US$31.3 billion, El Universal states.

                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.


* VENEZUELA: Moves Closer to Signing Energy Accord with Trinidad
----------------------------------------------------------------
The governments of Trinidad and Tobago and Venezuela are one
step closer to closing an energy accord that would allow both
countries to share hydrocarbon reserves found in their borders,
EFE news agency reports.

Both governments agree to share in the costs and benefits of
development and will ensure that exploitation takes place in the
most efficient and effective manner possible, EFE relates.

Talks between the two countries were stalled early this year
after Trinidad & Tobago declined Venezuela President Hugo
Chavez's invitation to join the PetroCaribe program.

"The initiative of Trinidad and Tobago and Venezuela for the
unitization of cross-border reserves is an important element in
the maximization of the value of the hydrocarbons, in the
interests of regional integration and the enhancement of
bilateral synergies to the mutual advantage of all parties
concerned," the Venezuelan Foreign Ministry was quoted by EFE as
saying.

A document, drafted during the 7th Ordinary Meeting of the
Steering Committee comprised of officials from both countries
Venezuelan, contained the final report of a technical working
group, which determined the volume of gas deposits in the
Loran/Manatee field and their respective allocation to Trinidad
and Tobago and to Venezuela, EFE relates.

According to EFE, ChevronTexaco operates Manatee 1 with British
Gas on the Trinidad side, said to contain vast reserves.  
Manatee 1 lies to the northwest of ChevronTexaco's Loran Field
discoveries in Venezuela.  Another technical working group is
examining data recently exchanged by the two countries on the
Kapok/Dorado field.

                   About Trinidad & Tobago

Trinidad & Tobago is one of the most prosperous nations in the
Caribbean due to its large petroleum and natural gas production
reserves and processing capabilties.

                       About Venezuela

Venezuela is highly dependent on its petroleum sector,
accounting for roughly one-third of GDP, around 80% of export
earnings, and over half of government operating revenues.

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


* Euler Sees Significant Increase In Global Business Failures
-------------------------------------------------------------
After a substantial increase in 2005 and a decline in 2006, the
number of business insolvencies in the US is predicted to climb
once again in 2007, according to global trade credit insurer
Euler Hermes.  Worldwide, the Index predicts that business
failures will increase by 3% in 2007 on the heels of a global
economic slowdown.  

The Global Business Failure Index -- created by Euler Hermes to
compare business failures by country, going beyond the national
definitions and taking into account the size of the respective
global economies -- predicts an 8% increase in US corporate
insolvencies for 2007.  The Index has fluctuated quite a bit in
the past two years, showing a 14% increase in 2005 and a 5%
decrease for 2006.  The 2005 hike was caused by an increased
number of businesses insolvencies in advance of the new
bankruptcy laws, which took effect on November 17, 2005.  
However, the revamped U.S. bankruptcy code has caused a notable
decrease in the number of corporate insolvencies for 2006, with
the Index predicting a slight decrease in the number of
businesses that will declare bankruptcy.

Dan North, Euler Hermes ACI Chief Economist, offered his view on
the macroeconomic factors that can affect business failures:
"The US economy turned in a very strong performance in the first
quarter as real Gross Domestic Product grew at a 5.6% annualized
rate.  However, GDP growth is expected to slow during the rest
of the year as a result of three factors.  First, the housing
market which has supported the US economy over the past few
years is cooling off, providing less equity to finance consumer
activity and reducing demand for household goods and services.
Second, high energy prices, particularly for gasoline, are
putting a drag on consumer activity.  Third, and perhaps most
importantly, the Federal Reserve may have tightened monetary
policy too far as reflected in the inverted yield curve, a
strong indicator of a future slowdown.  The effects of Fed
tightening take a year or more to be felt, meaning that the US
economy will be experiencing a drag from rising interest rates
for at least another 12 months.  These three pressures on the US
economy will certainly put pressure on business failures
throughout the next year."

Euler Hermes Global Business Failure Index forecasts these
country-by-county changes in the number of business failures:


     Country        2007      2006
     -------        ----      ----
     USA              8%       -5%
     France           0%        0%
     Spain            4%       10%
     Denmark          0%       -8%
     Taiwan           4%        7%
     Luxembourg       0%       -1%
     Greece           4%        5%
     Germany          0%       -5%
     UK               3%        8%
     China            0%        0%
     Portugal         3%        5%
     Hungary         -1%       -1%
     Hong Kong       -1%      -11%
     Italy            3%        3%
     Netherlands     -1%       -2%
     Belgium          2%        0%
     Canada          -3%       -3%
     Ireland         -3%       -3%
     Norway           1%      -10%
     Austria         -3%       -2%
     Japan            1%        2%
     Finland         -3%       -6%
     Czech Republic   1%       -4%
     South Korea     -4%      -10%
     Switzerland      0%        0%
     Singapore       -7%       -6%
     Slovakia         0%        8%
     Sweden          -7%      -10%
     Poland           0%       -1%
     Brazil          -8%      -15%

     Western Europe   1%        0%

     Global Index of
     insolvencies     3%       -1%

In the face of the changing domestic and global economic
climate, recognizing and managing future risks becomes a
priority for the nation's business leaders.  The predicted rise
in business failures highlights the important role that trade
credit insurance can play within the business environment, said
Euler Hermes ACI Vice President of Marketing Keith Sherman.  "A
Euler Hermes ACI credit insurance program provides a valuable
extension to a company's credit management practices - a second
pair of objective eyes when approving buyers, as well as an
early warning system should things begin to decline so that
exposure can be effectively managed," he said.  "And,
ultimately, should an unexpected loss occur, the trade credit
insurance policy provides indemnification, thus protecting the
policyholder's revenue and bottom line."  Euler Hermes ACI
utilizes a proprietary database that monitors the credit
worthiness of more than 40 million companies worldwide; this
provides advance warning for policyholders and allows losses to
be minimized in the event of a large corporate insolvency.

Further analysis of the Global Business Failure Index is
available in the Euler Hermes Insolvency Outlook publication,
which is available upon request.

Euler Hermes ACI is the US subsidiary of the Euler Hermes Group
and the oldest and largest provider of trade credit insurance in
North America. For more information about Euler Hermes ACI
products and services, visit http://www.eulerhermes.com/usa

Euler Hermes is the worldwide leader in credit insurance and one
of the leaders in bonding and guarantees. With 5,400 employees
in 43 countries, Euler Hermes offers a complete range of
services for the management of customer receivables. The group
posted a 2 billion euro turnover in 2005.  The North American
subsidiary (Euler Hermes ACI) is headquartered in Owings Mills,
MD.  For more information visit www.eulerhermes.com/usa. Euler
Hermes, a subsidiary of AGF and a member of Allianz, is listed
on Euronext Paris. Standard & Poor's rates the group and its
principal credit insurance subsidiaries AA-.


* IDB Grants US$60MM Loan for Mezzanine Infrastructure Fund
-----------------------------------------------------------
The Inter-American Development Bank today approved a senior loan
of up to US$60 million for the Central American Mezzanine
Infrastructure Fund or CAMIF, which will provide mezzanine
lending mainly for private infrastructure projects in:

   -- Belize,
   -- Costa Rica,
   -- El Salvador,
   -- Guatemala,
   -- Honduras,
   -- Nicaragua,
   -- Panama and
   -- the Dominican Republic.

CAMIF has a proposed target size of up to US$150 million, with
additional funding to come from the Central American Bank for
Economic Integration or CABEI, other public entities and private
investors, who may contribute debt and equity.  The fund will
also allocate some of its resources to Mexico and Colombia.

Mezzanine lending is a financial instrument that combines debt
and equity features.  It generally takes the form of an
interest-bearing subordinated loan with structured exits,
including the amortization of loans, scheduled interest, and
equity upsides through conversion rights, warrants or profit
participation.

CAMIF will finance projects in:
   
   -- energy (generation, transmission and distribution of
      electricity; transportation and distribution of gas, and
      alternative sources of energy),

   -- transportation (toll roads, railroads, ports, airports
      and urban and inter-urban mass transit),

   -- water and sanitation (including waste treatment,
      recycling, irrigation and environmental services),

   -- telecommunications (fixed and mobile telephone systems,
      cable and satellite communications),

as well as other sectors.

"By providing long-term financing to CAMIF, the IDB supports the
development of innovative financial instruments, making
mezzanine lending available in a region where it is relatively
scarce," said IDB project team leader Javier Molina.  "It will
also help develop Central America's capital markets, as this
type of vehicle allows institutional investors to take a
portfolio approach to financing infrastructure projects and
benefit from risk diversification."

CAMIF will complement the availability of senior lending in
Central America, facilitating the access to debt financing for a
larger number of projects in a region that must upgrade its
infrastructure to boost competitiveness.  The fund should
demonstrate the viability of mezzanine lending in Central
America, contributing to the development of other similar
vehicles.

CAMIF will be managed by the Washington, DC-based EMP Global,
which was selected by the IDB and CABEI through a competitive
process.  EMP Global is a leading manager of private equity
investment firms focusing on infrastructure in emerging markets.  
It has advised and managed funds specialized in Asia, Africa,
Eastern Europe and Latin America.

                          ***********

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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.


           * * * End of Transmission * * *