TCRLA_Public/060724.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Monday, July 24, 2006, Vol. 7, Issue 145

                          Headlines

A R G E N T I N A

CARTA LOCAL: Verification of Proofs of Claim Is Until Sept. 14
COMDIAR ARGENTINA: Trustee Verifies Claims Until Sept. 22
DEPORMAR SRL: Deadline for Verification of Claims Is on Sept. 1
ESPECTACULOS DEL PILAR: Claims Verification Is Until Oct. 18
FRIGORIFICO: Trustee Presents Individual Reports on Aug. 28

FRUMAR FRUTOS: Reorganization Proceeding Concluded
ORGANIZACION JG: Trustee Verifies Creditors' Claims Until Nov. 8
ORGANIZACION DE SEGURIDAD: Claims Verification Ends on Sept. 6
SAN SEBASTIAN: Trustee Has Until Sept. 15 to Verify Claims
SUCESION DE FRANCISCO: Claims Verification Deadline Is Oct. 17

* ARGENTINA: IT Sector Needs to Generate 80,000 Jobs by 2014

B A H A M A S

PINNACLE ENT: Launches Offer for President Casinos' Issued Notes

B E R M U D A

LOLA OVERSEAS: Creditors Must File Proofs of Claim by Aug. 9
PALMETTO LTD: Proofs of Claim Filing Deadline Is Set for Aug. 2
PGA BIG: Deadline for Proofs of Claim Filing Is Set for Aug. 2
REFCO: Chapter 11 Trustee Inks Settlement Pact with Rogers Raw
REFCO INC: Files June 2006 Statement of Cash Disbursements

ROCHE CAPITAL: Filing of Proofs of Claim Is Until Aug. 2
SEA CONTAINERS: Closes US$585 Mil. Silja Sale to Tallink Grupp
SPHYNX (BERMUDA): Will Hold Creditors' First Meeting on Aug. 25

B O L I V I A

PETROLEOS DE VENEZUELA: Launching Gas Exploration in Madidi Park

* BOLIVIA: Comibol Says Cerro Rico Has Large Mineral Reserves

B R A Z I L

BANCO SCHAHIN: Moody's Assigns Ba3 Local Currency Deposit Rating
BRASKEM SA: Appoints Two New Members to Board of Directors
FOSTER WHEELER: Unit Secures Boiler Contracts from Abalco
GLOBO COMUNICACAO: Will Prepay Series A & B Senior Secured Notes
GOL LINHAS: Reports Net Revenues of BRL844MM in Second Quarter

PETROLEO BRASILEIRO: Unit Declares Pricing Terms on Tender Offer
PETROLEO BRASILEIRO: Won't Agree to Bolivia's Gas Price Hike

* BRAZIIL: 26 Cos. Pre-Qualify in Transmission Tender in Aug.

C A Y M A N   I S L A N D S

ENERGIA DE ARGENTINA: Final Shareholders Meeting Is on Aug. 10
ENERGIA TOTAL: Last Shareholders Meeting Is Set for Aug. 10
FGC FINIAL: Will Hold final Shareholders Meeting on Aug. 10
KBRDC CNC: Final Shareholders Meeting Is Scheduled for Aug. 9
KBRDC NITROGEN: Final Shareholders Meeting Is Set for Aug. 9

NEW SKIES: Schedules Final Shareholders Meeting on Aug. 9
ORPHEUS INT'L: Final Shareholders Meeting Scheduled for Aug. 10
ULYSSES FUND: Last Shareholders Meeting Is Set for Aug. 10
UNOCAL FAR: Last Shareholders Meeting Is Scheduled for Aug. 10
WILSON MESA: Last Day to File Proofs of Claim Is on Aug. 24

C U B A

* CUBA: Signs Trade Agreement with Southern Common Market

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE LTD: Inco Asserts Offer Is Better Than Xstrata's

E C U A D O R

PETROECUADOR: Auctioning Crude After Talks with Venezuela Fail

* ECUADOR: IDB Loans US$6.6 Mil. to Rehabilitate Downtown Cuenca

G U A T E M A L A

GUATEMALA ELECTRICITY: S&P Ups US$100-Mil. Notes' Rating to BB

H O N D U R A S

* HONDURAS: Prepares to Buy Oil from Company With Best Offer

J A M A I C A

AIR JAMAICA: S&P's B Issuer Rating Is Based on Payment Guarantee
KAISER ALUMINUM: Reports Changes in Ownership of Securities

M E X I C O

MERIDIAN AUTOMOTIVE: Ct. Removes GSC Group from Adversary Suit

P A N A M A

GRUPO BANISTMO: HSBC to Acquire Bank for US$1.77 Billion

* PANAMA: Prepays US$351.6 Million Brady Bonds

P U E R T O   R I C O

ADELPHIA COMMS: Ct. Bars America Channel from Going After Assets
GLOBAL HOME: Has Until November 6 to Decide on Leases
LOS FRAILES: Case Summary & Five Largest Unsecured Creditors
MUSICLAND HOLDINGS: Posts US$1.7 Million Net Loss in June 2006
OCA INC: Hawaii Unit Files Schedules of Assets & Liabilities

PEP BOYS: Chief Executive Officer Larry Stevenson Resigns

S A I N T  V I N C E N T  &  G R E N A D I N E S

TRI-CONTINENTAL EXCHANGE: Chapter 15 Petition Summary

V E N E Z U E L A

CITGO PETROLEUM: Discontinues Houston Refinery Auction Process
CITGO PETROLEUM: Discontinued Sale Won't Change Fitch's Ratings
PARMALAT GROUP: Confirms Intention to Sell Venezuela Plants
PETROLEOS DE VENEZUELA: Amuay Refinery Fire Cuts Output by 74K

* VENEZUELA: Trade with Italy Up 40% in First Quarter


                         - - - - -


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


CARTA LOCAL: Verification of Proofs of Claim Is Until Sept. 14
--------------------------------------------------------------
Court-appointed trustee Ricardo Bataller will verify creditors'
proofs of claim against bankrupt company Carta Local
Gualeguaychu S.R.L. until Sept. 14, 2006.

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

After the claims are verified, Mr. Bataller will submit in court
individual reports and a general report that contains an audit
of Carta Local's accounting and banking records.  The report
submission dates have not been disclosed.

The trustee can be reached at:

    Ricardo Bataller
    Junin 684
    Buenos Aires, Argentina


COMDIAR ARGENTINA: Trustee Verifies Claims Until Sept. 22
---------------------------------------------------------
Carlos Guido Martino, the court-appointed trustee for Comdiar
Argentina S.A.'s bankruptcy proceeding, 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 Mr. Martino will
make.

Court No. 5 in Buenos Aires declared Comdiar Argentina bankrupt
at the behest of Fernando Repetto, whom it owes US$25,069.93.

Clerk No. 9 assists the court in this case.

The debtor can be reached at:

    Comdiar Argentina S.A.
    Alicia Moreau de Justo 840
    Buenos Aires, Argentina

The trustee can be reached at:

    Carlos Guido Martino
    Avenida Pte. Roque Saenz Pena 651
    Buenos Aires, Argentina


DEPORMAR SRL: Deadline for Verification of Claims Is on Sept. 1
---------------------------------------------------------------
Court-appointed trustee Emilio Gallego will verify creditors'
proofs of claim against bankrupt company Depormar S.R.L. until
Sept. 1, 2006.

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

Mr. Gallego will submit the verified claims in court as
individual reports on Oct. 16, 2006.  A general report that
contains an audit of Depormar's accounting and banking records
will follow on Nov. 27, 2006.

Depormar's creditors did not accept the settlement plan that the
company presented when it was still undergoing reorganization,
prompting Court No. 19 in Buenos Aires to convert the insolvency
case into a bankruptcy proceeding.

Court No. 38 assists the court in the case.

The debtor can be reached at:

    Depormar S.R.L.
    Avenida Santa Fe 2811
    Buenos Aires, Argentina

The trustee can be reached at:

    Emilio Gallego
    Esmeralda 1066
    Buenos Aires, Argentina


ESPECTACULOS DEL PILAR: Claims Verification Is Until Oct. 18
------------------------------------------------------------
Griselda Eidelstein, the court-appointed trustee for
Espectaculos del Pilar S.A.'s reorganization proceeding, will
verify creditors' proofs of claim until Oct. 18, 2006.

On Aug. 15, 2007, Espectaculos del Pilar's creditors will vote
on a settlement plan that the company will lay on the table.

Court No. 9 in Buenos Aires approved Espectaculos del Pilar's
petition to reorganize its business after defaulting on its
obligations.

Clerk No. 17 assists the court in this case.

The debtor can be reached at:

    Espectaculos del Pilar S.A.
    Avenida Corrientes 753
    Buenos Aires, Argentina

The trustee can be reached at:

    Griselda Eidelstein
    Lambare 1140
    Buenos Aires, Argentina


FRIGORIFICO: Trustee Presents Individual Reports on Aug. 28
-----------------------------------------------------------
Mariano Aristides Kepaptsoglou, the court-appointed trustee for
Frigorifico El Tolosano S.A.'s bankruptcy case, will present
individual reports in court on Aug. 28, 2006.  A general report
that contains an audit of Frigorifico El's accounting and
banking records will follow on Oct. 9, 2006.

Mr. Kepaptsoglou verified creditors' proofs of claim until
June 30, 2006.

The debtor can be reached at:

    Frigorifico El Tolosano S.A.
    Calle 526 Numero 1209/1231, La Plata
    Buenos Aires, Argentina

The trustee can be reached at:

    Mariano Aristides Kepaptsoglou
    Calle 47 Numero 862, La Plata
    Buenos Aires, Argentina


FRUMAR FRUTOS: Reorganization Proceeding Concluded
--------------------------------------------------
Frumar Frutos Marinos S.A.'s reorganization proceeding has
ended.  Data published by Infobae on its Web site indicated that
the process was concluded after a court in Buenos Aires approved
the debt agreement signed between the company and its creditors.


ORGANIZACION JG: Trustee Verifies Creditors' Claims Until Nov. 8
----------------------------------------------------------------
Court-appointed trustee Roberto Jose Gaztelu is verifying
creditors' proofs of claim against Organizacion J.G. S.A. until
Nov. 8, 2006.

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

Mr. Gaztelu will submit the verified claims in court as
individual reports on Feb. 6, 2007.  A general report that
contains an audit of Organizacion J.G.'s accounting and banking
records will follow on March 20, 2007.

Organizacion J.G.'s creditors did not accept the settlement plan
that the company presented on March 27, 2006, prompting Court
No. 22 in Buenos Aires to convert the company's insolvency case
into a bankruptcy proceeding.

Clerk No. 44 assists the court in the case.

The debtor can be reached at:

    Organizacion J.G. S.A.
    Ambrosetti 766
    Buenos Aires, Argentina

The trustee can be reached at:

    Roberto Gaztelu
    Virrey del Pino 2719
    Buenos Aires, Argentina


ORGANIZACION DE SEGURIDAD: Claims Verification Ends on Sept. 6
--------------------------------------------------------------
Court-appointed trustee Francisco Rogelio Cano will verify
creditors' proofs of claim against bankrupt company Organizacion
de Seguridad y Vigilancia Proteccion S.A. until Sept. 6, 2006.

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

Mr. Cano will submit the verified claims in court as individual
reports on Oct. 19, 2006.  A general report that contains an
audit of Organizacion de Seguridad's accounting and banking
records will follow on Nov. 30, 2006.

The debtor can be reached at:

    Organizacion de Seguridad y Vigilancia Proteccion S.A.
    Pena 2158
    Buenos Aires, Argentina

The trustee can be reached at:

    Francisco Rogelio Cano
    Uruguay 618
    Buenos Aires, Argentina


SAN SEBASTIAN: Trustee Has Until Sept. 15 to Verify Claims
----------------------------------------------------------
Estudio Sereni-Paz-Napolitano, the court-appointed trustee for
San Sebastian S.A.I.C.I.F. y A.'s bankruptcy proceeding, will
verify creditors' proofs of claim until Sept. 15, 2006.

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

The trustee will submit the verified claims in court as
individual reports on Oct. 30, 2006.  A general report that
contains an audit of San Sebastian's accounting and banking
records will follow on Nov. 10, 2006.

The trustee can be reached at:

    Estudio Sereni-Paz-Napolitano
    Lavalle 2024
    Buenos Aires, Argentina


SUCESION DE FRANCISCO: Claims Verification Deadline Is Oct. 17
--------------------------------------------------------------
Ernesto Resnizky, the court-appointed trustee for Sucesion de
Francisco A. Sanguinetti Sociedad Colectiva's bankruptcy case,
will verify creditors' proofs of claim until Oct. 17, 2006.

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

Court No. 3 in Buenos Aires declared Sucesion de Francisco
bankrupt at the behest of Martin Baltaian, whom it owes
US$1,557.87.

Clerk No. 6 assists the court in this case.

The debtor can be reached at:

    Sucesion de Francisco A. Sanguinetti Sociedad Colectiva
    Uruguay 618
    Buenos Aires, Argentina

The trustee can be reached at:

    Ernesto Resnizky
    Caracas 4330
    Buenos Aires, Argentina


* ARGENTINA: IT Sector Needs to Generate 80,000 Jobs by 2014
------------------------------------------------------------
Pres. Carlos Pallotti of Argentina's software and IT services
association, Camara de Empresas de Tecnologias de Informacion de
Argentina aka Cessi, said that the country's technology sector
needs to generate 80,000 new jobs in order to raise its export
value to US$1 billion by 2014, Business News Americas reports.

Mr. Palotti told BNamericas that there are about 35,000 workers
that are currently employed in the IT sector and the number
could possibly reach 40,000 by year-end.

Cessi and the Argentine government are investing together in a
ARS12-million plan to satisfy the demand and to increase the
number of working professionals in the sector, BNamericas
relates.

In 2005, the country's software division incurred ARS$4 billion
or approximately US$1.3 billion with exports accounting for
US$240 million.  Cessi projects a 20% increase in exports to
reach US$290 million for this year, BNamericas says.

According to Mr. Palotti, to increase the sector's exports, it
needs to concentrate and direct its attention on the highly
developed niche technology areas, for instance, the software for
agricultural and health divisions, BNamericas states.

Mr. Palotti further told BNamericas that Cessi is presently
doing research on how to make software for the oil and gas
niches prevalent.

"The model we adopted in 2004 was to promote Argentina as a
niche player. In those areas we could become leaders," Mr.
Pallotti told BNamericas.

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

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




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


PINNACLE ENT: Launches Offer for President Casinos' Issued Notes
----------------------------------------------------------------
Pinnacle Entertainment, Inc., 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, unless extended or earlier terminated.  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 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 US$60.7 million.  Payment for the Notes will be
made promptly after the Early Tender Date or the Expiration
Date.

The Company'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, 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.  D.F. King & Co., Inc. is the
information agent for the Tender Offer.  Requests for copies of
the Offer to Purchase and Letter of Transmittal should be
directed to the information agent at (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 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.




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


LOLA OVERSEAS: Creditors Must File Proofs of Claim by Aug. 9
------------------------------------------------------------
Lola Overseas Fund, Ltd.'s creditors are given until
Aug. 9, 2006, to prove their claims to Orlando A. Smith of
Milligan-Whyte & Smith, the company's liquidator, or be excluded
from receiving any distribution or payment.

Creditors are required to send by Aug. 9 their full names,
addresses, the full particulars of their debts or claims, and
the names and addresses of their lawyers, if any, to Mr. Smith.

A final general meeting will be held at the liquidator's place
of business on Aug. 23, 2006, at 10:00 a.m., or as soon as
possible.

Lola Overseas' shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed.  Furthermore, the shareholders will decide whether
or not Lola Overseas will be dissolved.

The shareholders of the company agreed on July 11, 2006, to
place Lola Overseas in voluntary liquidation under Bermuda's
Companies Act 1981.

The debtor can be reached at:

    Lola Overseas Fund, Ltd.
    Hemisphere House, 9 Church Street
    Hamilton HM DX, Bermuda

The liquidator can be reached at:

    Orlando A. Smith
    Milligan-Whyte & Smith
    Mintflower Place, 2nd Floor
    8 Par-la-Ville Road
    Hamilton, HM 08, Bermuda


PALMETTO LTD: Proofs of Claim Filing Deadline Is Set for Aug. 2
---------------------------------------------------------------
Palmetto Ltd.'s creditors are given until Aug. 2, 2006, to prove
their claims to Robin J. Mayor, the company's liquidator, or be
excluded from receiving any distribution or payment.

Creditors are required to send by Aug. 2 their full names,
addresses, the full particulars of their debts or claims, and
the names and addresses of their lawyers, if any, to Mr. Mayor.

A final general meeting will be held at the liquidator's place
of business on Aug. 24, 2006, at 9:30 a.m., or as soon as
Possible.

Palmetto Ltd.'s shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed.  Furthermore, the shareholde1rs will decide whether
or not Palmetto Ltd. will be dissolved.

The shareholders of the company agreed on July 17, 2006, to
place Palmetto ltd. into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

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


PGA BIG: Deadline for Proofs of Claim Filing Is Set for Aug. 2
--------------------------------------------------------------
PGA Big Yellow Ltd.'s creditors are given until Aug. 2, 2006, to
prove their claims to Robin J. Mayor, the company's liquidator,
or be excluded from receiving any distribution or payment.

Creditors are required to send by Aug. 2 their full names,
addresses, the full particulars of their debts or claims, and
the names and addresses of their lawyers, if any, to
Mr. Mayor.

A final general meeting will be held at the liquidator's place
of business on Aug. 24, 2006, at 9:30 a.m., or as soon as
possible.

PGA Big Yellow Ltd.'s shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed.  Furthermore, the shareholders will decide whether
or not PGA Big Yellow Ltd. will be dissolved.

The shareholders of the company agreed on July 13, 2006, to
place PGA Big Yellow Ltd. into voluntary liquidation under
Bermuda's Companies Act 1981.

The liquidator can be reached at:

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


REFCO: Chapter 11 Trustee Inks Settlement Pact with Rogers Raw
--------------------------------------------------------------
An agreement was reached between Marc S. Kirschner, as chapter
11 trustee for Refco Capital Markets, Ltd., and representatives
for Rogers International Raw Materials Fund, L.P. and Rogers Raw
Materials Fund, L.P. that will bring the claims of the two funds
into the settlement agreement reported by Mr. Kirschner on
June 30, 2006.

On Oct. 24, 2005, one week after the Refco chapter 11 filings,
the Rogers Funds filed a complaint in the bankruptcy court
seeking a constructive trust over US$364 million in cash and
securities that the funds claimed were wrongfully diverted from
Refco, LLC, a once active commodity broker registered with the
CFTC, to RCM, an unregulated Bermuda unit of Refco, Inc.

The settlement, which involves RCM customers who hold securities
accounts and foreign-exchange accounts, will provide that the
Rogers Funds shall receive the same treatment as the claims of
securities customers at RCM.  Under the settlement, Mr.
Kirschner has said that securities customers would initially
recover 70% of the value of their claims and foreign-exchange
customers would initially recover 26% of the value of their
claims.  Future recoveries would depend on Mr. Kirschner's
success at pursuing claims against other Refco entities and
third parties.

Importantly for the Rogers funds, the settlement of the funds'
claims against RCM would be without prejudice to the right of
the funds to assert the full amount of their claims against any
other party, including Refco, LLC, which is in a chapter 7
liquidation proceeding.  The settlement remains subject to
bankruptcy court approval at a hearing scheduled for
Aug. 16, 2006.

"The settlement with RCM is in the best interests of the Rogers
funds and their investors," said Walter T. Price, C.E.O. of
Beeland Management Company, L.L.C., the operator of the two
funds.  "First, it should keep RCM in a chapter 11 proceeding
under the expert guidance of Marc Kirschner, who we fully
support as chapter 11 trustee.  Second, it provides for a return
of at least 70%, possibly more, on our claims at RCM.  Finally,
it fully preserves our claims against Refco, LLC, which
wrongfully diverted the funds' cash and securities on the eve of
the Refco bankruptcy filing."

With respect to the Rogers funds' claims against Refco, LLC,
Mr. Price stated that the Rogers funds are willing to sit down
with Albert Togut, the chapter 7 trustee for Refco, LLC, to work
out a resolution of those claims, but are prepared to bring
their claims to trial if no deal can be reached.

On June 30, 2006, Mr. Kirschner announced that he had reached
the settlement agreement between RCM securities and foreign-
exchange customers.  By the terms of the settlement agreement,
if the Rogers funds did not agree to join the settlement within
14 days, Mr. Kirschner would have been required to promptly file
papers with the bankruptcy court asking that the court convert
the RCM chapter 11 case to a chapter 7 stockbroker liquidation
case.  Mr. Kirschner would still have been able to seek
bankruptcy court approval of the settlement agreement, though
there are doubts that such a settlement could have been approved
in a stockbroker liquidation proceeding.

                      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 INC: Files June 2006 Statement of Cash Disbursements
----------------------------------------------------------
In lieu of comprehensive financial statements, Refco, Inc., and
its debtor-affiliates delivered to the Bankruptcy Court a
monthly statement of their cash receipts and disbursements for
the period from June 1 to 30, 2006.

Peter F. James, controller of Refco, reports that the company
holds a beginning cash balance of US$1,357,526,000 during the
reporting period.  Refco received US$36,191,000 and disbursed
US$21,584,000 in cash.  Refco's ending cash balance totals
US$1,372,133,000.

As paying agent for certain non-debtors and Refco, LLC, the
Debtors disbursed approximately US$3,200,000.

Refco also paid US$662,000 in gross wages, of which US$354,000
was paid on behalf of and reimbursed by the Non-Debtors and
Refco LLC.

Mr. James discloses that Refco withheld US$204,000 in employee
payroll taxes, of which US$30,000 was remitted to a third party
vendor.

Mr. James states that all taxes due and owing, as well as tax
returns, have been paid and filed for the current period.

Refco paid US$7,252,000 for professional fees for June, and
US$18,073,000 since the Petition Date.  The Debtors did not pay
professional fees on Refco LLC's behalf.

Mr. James says all insurance policies are fully paid for the
current period, including amounts owed for workers' compensation
and disability insurance.

A full-text copy of Refco's June 2006 Monthly Statement is
available at no charge at:

              http://researcharchives.com/t/s?e19

                     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 USUS$16.5 billion in assets and USUS$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. 35; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


ROCHE CAPITAL: Filing of Proofs of Claim Is Until Aug. 2
--------------------------------------------------------
Roche Capital's creditors are given until Aug. 2, 2006, to prove
their claims to Robin J. Mayor, the company's liquidator, or be
excluded from receiving any distribution or payment.

Creditors are required to send by the Aug. 2 deadline their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any, to Mr.
Mayor.

A final general meeting will be held at the liquidator's place
of business on Aug. 24, 2006, at 9:30 a.m., or as soon as
possible.

Roche Capital's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed.  Furthermore, the shareholders will decide whether
or not Roche Capital will be dissolved.

The shareholders of the company agreed on July 13, 2006, to
place Roche Capital into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

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


SEA CONTAINERS: Closes US$585 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 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.  Corporate approval was given by
Tallink shareholders 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."


SPHYNX (BERMUDA): Will Hold Creditors' First Meeting on Aug. 25
---------------------------------------------------------------
Sphynx (Bermuda) Ltd.'s creditors will convene for a meeting at
10:30 a.m. on Aug. 25, 2006, at:

    Government Administration Building
    30 Parliament Street
    Hamilton HM 12, Bermuda

This is the creditors first meeting and is called for the
purpose of determining whether or not an application is to be
made to the Supreme Court of Bermuda for the appointment of a
permanent liquidator, in place of the provisional liquidator,
and a Committee of Inspection.

Proofs of Debt and Proxies to be used at the meeting must be
lodged by 5:00 p.m. on Aug. 23, 2006, with the Provisional
Liquidator at:

    Stephen E. Lowe
    Government Administration Building
    30 Parliament Street
    Hamilton HM 12, Bermuda




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


PETROLEOS DE VENEZUELA: Launching Gas Exploration in Madidi Park
----------------------------------------------------------------
Petroleos de Venezuela SA will start in the next few days
prospecting and exploration activities in Madidi park, 304 km
from the capital of Bolivia, El Universal reports.

Large amounts of gas and oil may be found in La Paz, according
to Energy Press.  Up to US$1.2 billion have been budgeted for
investment in Madidi national park, the Associated Press says.

El Universal says that this action would prevent Brazilian
Petrobras and Spanish-Argentinean Repsol YPF, both with
concessions in the area since last decade, from working in the
zone.

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.


* BOLIVIA: Comibol Says Cerro Rico Has Large Mineral Reserves
-------------------------------------------------------------
Corporacion Minera de Bolivia aka Comibol, Bolivia's state-run
mining company, and Franklin Mining are pleased to disclosed
that the three Cerro Rico veins evaluated to date have potential
reserves that are over 21 million ounces of silver, about 325
million lbs of Zinc and about 21 million lbs of tin.

"The information provided to us by Comibol is exciting, and we
will begin to review and analyze the details provided as well as
the potential reserves for the remaining vein. The contract with
Comibol calls for us to have a concentrating plant to be
utilized with the ore reserves of the four veins with an
investment of about US$6 million USD. Our partnership with
Comibol is to split the profits 50/50. Our next step is to
initiate a preliminary design plan to implement mining
operations. We hope to have the preliminary design plan
completed in three months," stated Jaime Melgarejo, President of
Franklin Mining, Inc.

                  About Franklin Mining, Inc.

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

                        *    *    *

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 SCHAHIN: Moody's Assigns Ba3 Local Currency Deposit Rating
----------------------------------------------------------------
Moody's Investors Service assigned a bank financial strength
rating of D- to Banco Schahin S.A.  Moody's also assigned long-
and short-term global local-currency deposit ratings of Ba3 and
Not Prime to Schahin, with stable outlooks.  In addition,
Moody's assigned long- and short term national scale deposit
ratings of Baa1.br and BR-2, both with stable outlooks.  The
long- and short-term foreign-currency deposit ratings of B1 and
Not Prime, respectively, are at Brazil's country ceiling, and
have positive outlooks.

Moody's D- bank financial strength rating for Banco Schahin
reflects management's focused strategy, which is centered on the
fast-growing and high-yielding consumer-credit segment, and one
that is supported by a largely web-based, multi-product
platform.  Ratings also indicate Schahin's adequate financial
metrics, and its profitability and asset quality in particular,
which compare well to similarly rated peers', despite the small
size of the bank's assets and equity.

Moody's noted that Schahin has been a traditional lender to the
middle market segment; the growth and earning generation
opportunities offered by consumer lending, however, have
resulted in a refocusing of the bank's activities to also
include payroll-linked loans.  Such strategic move has been
boosted by a loan sale agreement with HSBC Bank Brasil, which
accommodates the bank's loan-origination ability that is far
superior than its fund-raising capability.

Ratings for Banco Schahin are constrained by its small size and
by a funding structure that is relatively expensive and
concentrated, despite diversification efforts.  Both the bank's
funding and its modest capital base, says Moody's, can frustrate
the growth of its franchise because they constrain Schahin's
ability to fund loan growth with its own resources.  A higher-
than-peers' cost base -- which largely reflect loan origination
costs -- also acts as a drag on performance.

Moreover, the rating agency noticed that Banco Schahin's
margins, especially on consumer credit operations, might be
squeezed by competitive market conditions and declining domestic
interest rates going forward.  Those pressures might be
mitigated by the bank's broad platform of consumer products, and
its flexible business model.

Improving profitability ratios would strongly indicate
management's ability to expand operations within the bank's
defined niche markets, even under competitive pressures.
Ability to further diversify deposits and overall funding
alternatives would be a positive factor for its ratings.
Conversely, Schahin's ratings might suffer from the effects of
deteriorating asset quality and poor profitability - both of
which could derive from overly aggressive lending practices or
from tougher competition.

Moody's Ba3 global local-currency deposit rating reflects
Schahin's modest participation in the deposits market, and
translates, in Moody's view, into a low probability of
regulatory support.  The controlling shareholders -- Milton and
Salim Tufic Schahin, through their holding HBF Participacoes S.A
-- could be forthcoming in support of the bank's growth.

Established in 1989, Banco Schahin is headquartered in Sao
Paulo, Brazil.  As of December 2005, the bank had total assets
of approximately BRL1.3 billion (US$505million) and equity of
BRL173 million (US$74 million).

These ratings were assigned to Banco Schahin S.A.:

   -- Bank Financial Strength Rating: D- with stable outlook;

   -- Global Local-Currency Rating: Ba3 long-term local-currency
      deposit rating, and Not Prime short-term local-currency
      deposit rating, with stable outlook.

   -- Foreign Currency Deposit Rating: B1 long-term
      foreign-currency deposit rating, and Not Prime
      short-term foreign-currency deposit rating, with
      positive outlook.

   -- Brazilian National Scale Deposit Ratings: Baa1.br
      long-term deposit rating, and BR-2 short-term deposit
      rating.


BRASKEM SA: Appoints Two New Members to Board of Directors
----------------------------------------------------------
Braskem S.A. appointed Jose Lima de Andrade Neto, president of
Petroquisa, and Antonio Britto Filho, president of Azaleia, to
its Board of Directors as approved in the Extraordinary General
Assembly on July 20, 2006.  The appointment of the new board
members is in line with Braskem's commitment with the highest
practices of modern corporate governance and with the
transparency of its management.

Jose Lima de Andrade Neto becomes the representative of
Petroquisa, relevant minority shareholder of Braskem, in the
company's Board of Directors, replacing Maria das Gracas Foster.
Mr. de Andrade Neto is a career employee at Petrobras, where he
has worked since 1988.  He is a chemical engineer with a
Master's in oil engineering from the United States.

Antonio Britto Filho is a corporate executive with knowledge on
the plastic and petrochemical productive chain, as well as
proven strategic vision in exercising public and journalistic
activities.  With his presence, the Braskem Board of Directors,
comprised of 11 effective members, now has four independent
members without direct links to controlling shareholder
interests.

                       About Braskem

Braskem -- http://www.braskem.com.br/-- is a thermoplastic
resins producer in Latin American, and is among the three
largest Brazilian-owned private industrial companies.  The
company operates 13 manufacturing plants located throughout
Brazil, and has an annual production capacity of 5.8 million
tons of resins and other petrochemical products.

                        *    *    *

Fitch Ratings upgraded these ratings of Braskem S.A. on
July 1, 2006:

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

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

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

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

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

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


FOSTER WHEELER: Unit Secures Boiler Contracts from Abalco
---------------------------------------------------------
Foster Wheeler Ltd. disclosed that its Polish subsidiary, Foster
Wheeler Energia Polska Sp. z o.o., part of its Global Power
Group, has been awarded a contract for the design and supply of
two coal-fired circulating fluidized-bed boiler islands by
Abalco S.A. for the Alumar alumina refinery situated in Sao Luis
in northern Brazil.

Foster Wheeler's contract is valued at approximately US$46
million, (EUR39 million), the majority of which was included in
Foster Wheeler's first-quarter 2006 bookings.  A small amount,
covering pre-engineering work, was included in the company's
fourth-quarter 2005 bookings.

The scope of the contract covers the design and supply of two
280 tons per hour CFB boiler islands, including the fuel silos,
boiler auxiliaries, ash handling systems, instrumentation, steel
structures, and supervision of erection and commissioning.  The
boiler islands are scheduled for commercial operation in the
first quarter of 2008.

"Foster Wheeler is very pleased to be awarded this contract by
Abalco," said Raymond J. Milchovich, chairman, president and
chief executive officer of Foster Wheeler Ltd.  "This marks an
important entry into the Brazilian market for our leading-edge
CFB technology."

The Alumar refinery is jointly owned by:

   -- BHP Billiton (36%),
   -- Alcan (10%),
   -- Alcoa Aluminio (35.1%) and
   -- Abalco S.A. (18.9%).

Abalco is part of the Alcoa World Alumina and Chemicals or AWAC
enterprise, owned 60% by Alcoa and 40% by Alumina Ltd.  The
alumina refinery is currently undergoing a major expansion
program to increase capacity by 2.1 million tons per year to 3.5
million tons per year.

                   About Foster Wheeler

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

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

                        *    *    *

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

                        *    *    *

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


GLOBO COMUNICACAO: Will Prepay Series A & B Senior Secured Notes
----------------------------------------------------------------
Globo Comunicacao e Participacoes S.A. disclosed that it will
voluntarily prepay in full the Existing Series A & B Senior
Secured Notes Due 2011 on October 20, 2006.

The funds used for this voluntary prepayment will be obtained
from operating cash flow, as well as approximately US$110
million from the Debt Service Reserve Account or DSRA, which
will be drawn down in full.  The prepayment will be made across
certain of Globo's outstanding bonds as:

   Series A1

   -- Principal amount of approximately US$10.322 billion
   -- Interest amount of approximately US$219,000

   Series A2

   -- Principal amount of approximately BRL13.414 billion
   -- Interest amount of approximately BRL512,000

   Series B

   -- Principal amount of approximately US$176.115 billion
   -- Interest amount of approximately US$3.247 billion

Such voluntary prepayment of Existing Series A & B Notes will be
made in accordance with provisions in (A) Section 6(i) of
Schedule 2 to the Consolidated Trust Deed dated as of July 20,
2005, which governs the terms and conditions related to the
voluntary prepayment of these bonds, together with (B) Section
16.1(a)(8) of the Consolidated Trust Deed regarding the
procedures to be followed for the withdrawal of the required
amounts from the DSRA as referred above.

Upon redemption in full of Existing Series A&B Notes, which are
secured obligations of Globo in connection with the Consolidated
Trust Deed, any and all securities and pledges created and under
the underlying collateral documents for securing the Existing
Series A&B Notes will be promptly released.  The outstanding
Series D will remain Senior and Unsecured.

Roberto Irineu Marinho, President of the Globo Organizations,
said "We could not be more pleased with today's announcement,
exactly one year after the conclusion of the debt restructuring.
Debt will now be reduced by more than US$1.3 billion compared to
the amount as of June 2005.  Including the US$325 million of the
Perpetual Notes, the total outstanding debt will amount
approximately to US$ 650 million.  Once the current payment has
been settled, all remaining notes will be unsecured and all
collateral pledged to the Existing Series A&B Notes will be
released.  The company had originally restructured its debt in
October of 2002, largely due to the highly adverse macro-
economic environment at the time.  Our team worked very hard
with the creditors' committees over a long period.  The outcome
was a company with better management organization and capital
structure, focused on the audiovisual content production and
programming business.  Globo's successful long-term business
model was preserved.  This achievement has only been possible
due to the improvement in the macro-economic environment, the
outstanding work of Globo's management team, creditor support
and shareholders' commitment, including the injection of all
possible resources into the company, and even the proceeds from
the sale of several relevant family assets.  While today's
announcement is a very important step forward, our work is not
yet finished.  We will continue working hard to reduce leverage
and improve capital structure, allowing us to face future
challenges with the same success as in the past forty years."

                        About Globo

Globo Comunicacao e Participacoes S.A. was established from the
merger of TV Globo Ltda. and Globo Comunicacoes e Participacoes
S.A. -- Globopar.

                        *    *    *

As reported in Troubled Company Reporter on March 28, 2006,
Standard & Poor's Rating Services raised its foreign and local
currency corporate credit ratings on Brazilian media group Globo
Comunicacoes e Participacoes fka Globopar SA to 'BB-' from
'B+'.  S&P said the outlook on the ratings is stable.


GOL LINHAS: Reports Net Revenues of BRL844MM in Second Quarter
--------------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A. disclosed financial results
for the second quarter of 2006.

              Operating & Financial Highlights

   -- Net income for the quarter was BRL106.7 million
      (US$49.4 million), representing a 12.6% net margin.
      Earnings per share was BRL0.54 and earnings per ADS
      increased 56.3%, to US$0.25.

   -- Operating income increased 55.6% to BRL132.3million,
      representing an EBIT margin of 15.7%.  Fuel-neutral
      operating income increased by 88.8% to BRL160.5million,
      representing a fuel-neutral EBIT margin of 19.0%.  Cash,
      cash equivalents and short-term investments amounted to
      BRL1.255 billion.

   -- Operating cost per ASK decreased 0.9% from BRL0.1546 in
      2Q05 to BRL0.1532 in 2Q06.  Non-fuel CASK decreased to
      BRL0.0920.

   -- RPKs increased 57.3% from 2.239 billion in 2Q05 to 3.523
      billion in 2Q06.  ASKs increased 50.4% from 3.086 billion
      in 2Q05 to 4.641 billion in 2Q06.  Average load factor
      increased 3.3 percentage points to 75.9% while average
      passenger yields decreased 4.7% to BRL0.2233, resulting
      in a RASK of BRL0.1819, flat vs. 2Q05.  Net revenues
      totaled BRL844.0 million, representing growth of 50.1%.
      GOL's domestic and international regular air
      transportation market-shares at the end of 2Q06 were 35%
      and 6%, respectively.

   -- A net quarterly dividend payment of BRL27.2million
      (BRL0.13897 net per share and US$0.06434 net per ADS) was
      approved at the June 16, 2006 Board Meeting, to be paid on
      August 15, 2006.

   -- On-time arrivals and flight completion averaged 98% and
      94% (ANAC data) respectively, during 2Q06.

                      About Gol Linhas

Headquartered in Sao Paulo, Brazil, Gol Linhas Areas
Inteligentes S.A. -- http://www.voegol.com.br-- through its
subsidiary, Gol Transportes Aereos S.A., provides airline
services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay.
The company's services include passenger, cargo, and charter
services.  As of March 20, 2006, Gol Linhas provided 440 daily
flights to 49 destinations and operated a fleet of 45 Boeing 737
aircraft.  The company was founded in 2001.

                        *    *    *

On March 21, 2006, Moody's Rating Services assigned a Ba2 rating
on Gol's Long-Term Corporate Family Rating.

On June 14, 2006, Fitch Ratings assigned a rating of 'BB' to GOL
Linhas' outstanding US$200 million 8.75% perpetual
bond.  In addition, Fitch assigned:

   -- National Scale Rating of 'AA-(bra)' with Stable Outlook,
      and

   -- Local Currency Issuer Default Rating of 'BB+'- with
      Stable Outlook.


PETROLEO BRASILEIRO: Unit Declares Pricing Terms on Tender Offer
----------------------------------------------------------------
Petroleo Brasileiro S.A. discloses that its wholly owned
subsidiary Petrobras International Finance Corporation declared
the purchase prices for its cash tender offers for any and all
of the five series of notes listed.  The offers are scheduled to
expire at 5:00 p.m., New York time, today, July 24, 2006, unless
any offer is extended or earlier terminated by PIFCo.

PIFCo will pay the purchase price and accrued and unpaid
interest from the last interest payment date to, but excluding,
the settlement date, for the notes accepted pursuant to each
offer. Settlement of each offer is expected to occur on the
third business day following the applicable Expiration Date.
The table below shows the relevant pricing information for the
notes:

                                                    Purchase
                                                    Price per
               Fixed                                U.S.$1,000
               Spread  Reference  Actual    Tender  Principal
Title of       (Basis  Treasury   Reference Offer   Amount
Security       Points) Security   Yield     Yield   of Notes

PIFCo 12.375%         4.625% U.S.
Global Step-Up        Treasury
Notes due 2008        Note due
("Step-Up             March 31,                        U.S.
Notes")         +35   2008        5.103%    5.453%   $1,109.37

                      2.625% U.S.
PIFCo 9.875%          Treasury
Senior Notes          Note due
due 2008              May 15,                          U.S.
("2008 Notes")  +35   2008        5.084%    5.434%   $1,074.36

                      5.125% U.S.
PIFCo 9.750%          Treasury
Senior Notes          Note due
due 2011              June 30,                          U.S.
("2011 Notes")  +70   2011         4.976%    5.676%    $1,173.36

                      4.250% U.S.
PIFCo 9.125%          Treasury
Global Notes          Note due
due 2013              August 15,                         U.S.
("2013 Notes") +125   2013         4.994%    6.244%    $1,160.01

                      5.125% U.S.
PIFCo 8.375%          Treasury
Global Notes          Note due
due 2018              May 15,                            U.S.
("2018 Notes") +190   2016         5.024%    6.924    $1,119.13



The purchase price for each US$1,000 principal amount of notes
validly tendered and not validly withdrawn pursuant to each
offer was calculated by the dealer manager in the manner
described in the offer to purchase at 4:00 p.m., New York City
time, on July 20, 2006.

PIFCo has retained Morgan Stanley & Co., Incorporated and UBS
Securities LLC to serve as dealer managers for the offers, The
Bank of New York to serve as depositary for the offers, The Bank
of New York (Luxembourg) S.A. to serve as Luxembourg agent for
the offers and D.F. King & Co., Inc. to serve as information
agent for the offers.

Requests for documents may be directed to:

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

Questions regarding the offers may be directed to:

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

                        -- or --

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

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

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

                        *    *    *

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

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

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


PETROLEO BRASILEIRO: Won't Agree to Bolivia's Gas Price Hike
------------------------------------------------------------
Brazil's Petroleo Brasileiro SA or Petrobras rejects the
Bolivian government's call for changes to a 20-year energy
contract that would allow for larger natural gas price
increases, Bloomberg News reports.

Petrobras, which is one of the most affected by Bolivia's
decision to nationalize its hydrocarbons sector, plans to
increase expenditure that would boost Brazil's oil and gas
production from 1.8 million barrels per day to 4.6 million per
day by 2015.

Bloomberg relates that Petrobras is preparing to build two
liquefied natural gas terminals in Brazil to handle imports from
countries such as Nigeria, reducing dependence on Bolivia, the
source of half of Brazil's natural gas supply.

"We are not considering the possibility of breaking the Bolivia
contract that we now have," Jose Sergio Gabrielli, chief
executive officer of Rio de Janeiro-based Petrobras, told
analysts and journalists at an event in New York to explain the
company's 2007-2011 strategic plan, Bloomberg relates.

Bolivian President Evo Morales want's Brazil to pay as much as
US$8.00 per million British Thermal Units for gas, double the
US$3.40 per BTU that Petrobras now pays, Bloomberg says.

Petrobras and Bolivia's national oil firm YFPB are holding talks
to discuss possible compensation of seized assets.  If the
parties fail to reach an agreement, the issue will likely reach
the international court.

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

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

                        *    *    *

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

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

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


* BRAZIIL: 26 Cos. Pre-Qualify in Transmission Tender in Aug.
-------------------------------------------------------------
Brazilian power regulator Agencia Nacional De Energia Eletrica
aka Aneel, declared in a statement that it pre-qualifies 26
companies to auction for a power transmission tender on
Aug. 18, 2006, Business News Americas reports.

According to BNamericas, the tender includes 2,250 kilometers of
new lines in seven blocks and will require an investment of
about BRL1.1 billion or US$500 million.

Spain's two electric companies, Elecnor and Cobra Instalaciones
y Servicios were not included in the pre-qualification due to
submission of insufficient requirements.  Aneel gave both
companies five days to appeal the decision, BNamericas relates.

Aneel stated that the pre-qualified companies have until Aug. 17
to deposit their financial guarantees, Bnamericas says.

                        *    *    *

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




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



ENERGIA DE ARGENTINA: Final Shareholders Meeting Is on Aug. 10
--------------------------------------------------------------
Energia de Argentina Ltd.'s final shareholders meeting will be
held at 11:00 a.m. on Aug. 10, 2006, at:

   Shearman & Sterling LLP
   599 Lexington Avenue, 2nd Floor
   New York 10022, U.S.A.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

     Michael P. Borom
     Impala Partners, LLC
     18 Marshall Street, Suite 112
     Norwalk, CT 06854, U.S.A.


ENERGIA TOTAL: Last Shareholders Meeting Is Set for Aug. 10
-----------------------------------------------------------
Energia Total de Argentina Ltd.'s final shareholders meeting
will be at 11:00 a.m. on Aug. 10, 2006, at:

   Shearman & Sterling LLP
   599 Lexington Avenue, 2nd Floor
   New York 10022, U.S.A.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

     Michael P. Borom
     Impala Partners, LLC
     18 Marshall Street, Suite 112
     Norwalk, CT 06854, U.S.A.


FGC FINIAL: Will Hold final Shareholders Meeting on Aug. 10
-----------------------------------------------------------
FGC Finial Group of Companies Ltd's final shareholders meeting
will be at 10:00 a.m. on Aug. 10, 2006, at:

   Deloitte
   Fourth Floor, Citrus Grove
   P.O. Box 1787, George Town
   Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

   Stuart Sybersma
   Attention: Joshua Taylor
   Deloitte
   P.O. Box 1787, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 949-7500
   Fax: (345) 949-8258


KBRDC CNC: Final Shareholders Meeting Is Scheduled for Aug. 9
-------------------------------------------------------------
KBRDC CNC (Cayman) Ltd.'s final shareholders meeting will be
at 10:00 a.m. on Aug. 9, 2006, at:

   Walkers
   P.O. Box 265GT, Walker House
   Mary Street, George Town
   Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

   Art Weigand
   c/o Walkers, Walker House
   P.O. Box 265 GT
   Mary Street, George Town
   Grand Cayman, Cayman Islands


KBRDC NITROGEN: Final Shareholders Meeting Is Set for Aug. 9
------------------------------------------------------------
KBRDC Nitrogen 2000 (Cayman) Ltd.'s final shareholders meeting
will be at 10:00 a.m. on Aug. 9, 2006, at:

   Walkers
   P.O. Box 265GT, Walker House
   Mary Street, George Town
   Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

   Art Weigand
   c/o Walkers, Walker House
   P.O. Box 265 GT
   Mary Street, George Town
   Grand Cayman, Cayman Islands


NEW SKIES: Schedules Final Shareholders Meeting on Aug. 9
---------------------------------------------------------
New Skies (Cayman) Limited's final shareholders meeting will be
at 10:00 a.m. on Aug. 9, 2006, at:

   Walkers
   PO Box 265GT, Walker House
   Mary Street, George Town
   Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

   Daniel Goldberg
   Frederick Hendrikplein 46
   2582 BA The Hague, The Netherlands


ORPHEUS INT'L: Final Shareholders Meeting Scheduled for Aug. 10
---------------------------------------------------------------
Orpheus International Limited's final shareholders meeting will
be on Aug. 10, 2006, at:

   Coutts (Cayman) Limited
   Coutts House, 1446 West Bay Road
   P.O. Box 707, George Town
   Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

    Royhaven Secretaries Limited
    Attn: Laura Henry
    Coutts (Cayman) Limited
    Coutts House, 1446 West Bay Road
    P.O. Box 707 George Town
    Grand Cayman, Cayman Islands
    Tel: (345) 945-4777
    Fax: (345) 945-4799


ULYSSES FUND: Last Shareholders Meeting Is Set for Aug. 10
----------------------------------------------------------
Ulysses Fund Ltd's final shareholders meeting will be
at 11:00 a.m. on Aug. 10, 2006, at the company's registered
office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

   David A.K. Walker
   Lawrence Edwards
   PricewaterhouseCoopers
   Strathvale House, George Town
   Grand Cayman, Cayman Islands

Parties-in-interest may contact:

   Miguel M. Brown
   P.O. Box 219, George Town
   Grand Cayman, Cayman Islands
   Tel: (345) 914-8665
   Fax: (345) 949-4590


UNOCAL FAR: Last Shareholders Meeting Is Scheduled for Aug. 10
--------------------------------------------------------------
Unocal Far East Development, Ltd.'s shareholders will convene
for a final meeting on Aug. 10, 2006, at:

           Reid Services Limited
           Clifton House, 75 Fort Street, Georgetown
           Grand Cayman, Cayman Islands

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

The liquidators can be reached at:

           Reid Services Limited
           Clifton House, 75 Fort Street, Georgetown
           Grand Cayman, Cayman Islands


WILSON MESA: Last Day to File Proofs of Claim Is on Aug. 24
-----------------------------------------------------------
Wilson Mesa LDC's creditors are required to submit proofs of
claim by Aug. 24, 2006, to the company's liquidator:

   Michelle Wolfe
   20 Victoria Street
   Hamilton, Bermuda

Creditors who are not able to comply with the Aug. 24 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Wilson Mesa's shareholders agreed on June 26, 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:

   Truman Bodden & Company
   Tel: 345-949-7555
   Fax: 345-949-8492




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


* CUBA: Signs Trade Agreement with Southern Common Market
---------------------------------------------------------
Cuba inked a trade agreement with the Southern Common Market
last week, according to Gustavo Marquez, Venezuela's Minister of
State for Integration and Foreign Trade, El Universal states.

"All of the member countries of Mercosur have relations with
Cuba.  The current trade embargo is an imposition of the United
States, but it does not include the nations of the southern bloc
or the Latin American countries," the foreign trade minister is
quoted by El Universal as saying.

In relation with the signing of the trade deal, Cuban President
Fidel Castro attended Thursday the Mercosur trade summit in
Buenos Aires, Argentina, the Dominican Today reports.

According to the Dominican Today, President Castro's present at
the summit eclipsed what was supposed to be the main event --
Venezuela's first-time attendance as a member.

                        *    *    *

Moody's assigned these ratings to Cuba:

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




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


FALCONBRIDGE LTD: Inco Asserts Offer Is Better Than Xstrata's
-------------------------------------------------------------
Inco Limited made a statement on the status of the decision
facing Falconbridge shareholders:

"The shareholders of Falconbridge have a clear decision to make
by July 27 and it is in their interest to bear a few facts in
mind.

"First, Inco is making the superior offer. It has the highest
value and provides the greatest potential to benefit from very
strong nickel and copper markets.  Both short and long-term
shareholders will benefit from the strong profits and cash flow
of the new company.  Why turn that over to Xstrata?

"Second, Falconbridge shareholders can be sure of what they are
getting by tendering to Inco's offer on July 27. On July 28,
Xstrata will not need to be nearly as 'shareholder friendly' as
it appears today. There can be no assurance they will not start
accumulating shares at lower prices, once the support of the
Inco offer is gone. At that point, Xstrata will have the
opportunity to gain effective control without paying full price.

"Third, Inco's offer is unconditional and Xstrata's bid remains
conditional.  Xstrata requires Investment Canada approval and
still do not have it.  Xstrata also requires a shareholder vote.

"On July 27 Falconbridge shareholders will have a choice between
two distinct options.  Their best interests are with the
certainty of Inco's offer."

                       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 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.




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


PETROECUADOR: Auctioning Crude After Talks with Venezuela Fail
--------------------------------------------------------------
Petroecuador, Ecuador's state-run oil firm, issued Friday
tenders for the sale of six lots of 12,000 barrels of Napo crude
per day each, Dow Jones Newswires reports.  The news contracts
will begin in August and will last for eight months.

The Napo crude comes from Occidental Petroleum's former block 15
and Eden-Yuturi and Limoncocha fields.  The fields were seized
by the government after Occidental's license was revoked amid
claims of contract violations.

Ecuador and Venezuela had been in talks for the refining of the
crude in Petroleos de Venezuela's Paraguana Refining Complex.
The talks, evidently, have fallen apart.

Dow Jones says Petroecuador invited 50 oil firms from all over
the world to participate in the auction.  Bids are accepted
until July 27.

The auction date has not been disclosed.

                     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.


* ECUADOR: IDB Loans US$6.6 Mil. to Rehabilitate Downtown Cuenca
----------------------------------------------------------------
The Inter-American Development Bank approved a US$6.6 loan to
rehabilitate the downtown areas of the city of Cuenca, Ecuador.

"The objective is to maintain the vitality of the city's
historic center by improving the quality of life of people in
the downtown areas with the most significant physical, social
and economic deterioration," said Patricia Torres, project team
leader.

Many families have migrated to this area for work, and most of
them live in a state of poverty.  Several sections of the
downtown areas have a high level of physical, social and
economic deterioration, where the presence of informal
activities has a serious impact on the use and potential
valuation of these areas.

The rehabilitation project includes the construction of the
urban infrastructure necessary to empower and complement the
city's network of public market centers and the reclamation of
the recovered public space, improving the environmental,
security and habitability in the area.

Support will be provided to formal and informal vendors so they
can improve their businesses, with incentives for private
investment and the strengthening of micro-enterprises,
particularly in the areas of tourism, trade, culture, and arts
and crafts.

The project also includes institutional strengthening of the
municipality, in particular in the area of management and
administration of the network of public market centers and
public space in general.

"These rehabilitation activities were designed based on a
consultation and negotiation process carried out with the
project beneficiaries in which the Bank provided direct
support," Ms. Torres said.

A key result of this consultation process was the emphasis given
to social programs that cater to children and women who live and
work in the affected areas.  These programs include the
construction of a child development center, a dining facility
and a library, and measures to prevent domestic violence and
promote security.

                        *    *    *

Fitch assigned these ratings on Ecuador:

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




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


GUATEMALA ELECTRICITY: S&P Ups US$100-Mil. Notes' Rating to BB
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its rating on
Guatemala Electricity Trust's US$100 million fixed-rate notes to
'BB' from 'BB-'.

The rating action follows the July 19, 2006, upgrade of the
underlying obligor, Empresa Electrica de Guatemala S.A. aka
EEGSA, to 'BB' from 'BB-'.

The notes are being repaid with all credit and collections
rights originated under an international loan agreement entered
into between Citibank N.A. and EEGSA, which were sold to the
trust. The rating on the notes is based on the foreign currency
rating of EEGSA as the underlying obligor.  The rating on the
notes also reflects a well-defined structure and the
enforceability given by the participation agreement in which
Citibank N.A. assigns 100% participation of all credit and
collection rights under the loan agreement.




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


* HONDURAS: Prepares to Buy Oil from Company With Best Offer
------------------------------------------------------------
Honduran President Manuel Zelaya was quoted by the EFE news
agency as saying that the government is prepared to buy oil from
anybody that offers the best pricing deal.

Interested parties will present their bids on a 15-day public
tender offer, El Universal says.

Pres. Zelaya also told Efe that the government will go on with
subsidizing the prices of oil byproducts while the bidding is
going on, so that citizens will not be gravely affected by the
oil shortage.

"If either, Mexico, Venezuela or the United States offers us
better prices, then we will purchase where we can get better
prices," Pres. Zelaya told El Universal.

The government will closely study the offers from Venezuela,
Mexico, the United States and the Middle East during the
auction, El Universal adds.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

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




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


AIR JAMAICA: S&P's B Issuer Rating Is Based on Payment Guarantee
----------------------------------------------------------------
Standard & Poor's Rating Services that its assigned B long-term
foreign issuer credit rating on Air Jamaica Ltd., which is equal
to the long-term foreign currency sovereign credit rating on
Jamaica, is based on the government's unconditional guarantee of
both principal and interest payments.

Air Jamaica operates eight A-320s, six Airbus A-321s, and two
wide-body A-340s with a total lift of more than 3,350 seats on a
daily basis, and a market share of more than 51% of the total
Jamaican market.  Air Jamaica currently flies to Atlanta,
Baltimore, Barbados, Bonaire, Chicago, Curacao, Fort Lauderdale,
Grand Cayman, Grenada, Havana, Kingston, London, Los Angeles,
Miami, Montego Bay, Nassau, Newark, New York, Orlando,
Philadelphia, St. Lucia, Turks and Caicos, and Toronto.
Moreover, Air Jamaica has a code-sharing alliance with Delta
Airlines and with Air Canada to connect to other points within
the United States and Canada.

The ratings on Jamaica are supported by the government's ongoing
commitment to fiscal discipline and debt reduction amid external
shocks.  The ratings also reflect Jamaica's higher growth
prospects, boosted by the strong inflow of FDI in the tourism
and mining sectors. The confidence level of domestic businesses
and international investors remains strong (despite worse-than-
expected economic and fiscal performances in 2005), due to the
government's timely and appropriate policy responses to adverse
external developments.  Transparent dialogue between the
government and market participants regarding economic
performance and policy direction are important ingredients of
Jamaica's stable investment and political environment.

While economic growth may pick up in 2006 and beyond, the
government will be challenged to generate the fiscal surpluses
initially planned for fiscal 2006 (ending March 31, 2007).  The
balanced budget targeted for fiscal 2005 is also out of reach.
Hence, fiscal 2005 is now expected to yield a general government
deficit of 4.9% of GDP (including central bank losses of 1.9% of
GDP and social security surpluses of 0.5% of GDP).  This is
below that targeted, but an improvement over the 7% deficit in
fiscal 2004.  A 3% of GDP general government deficit is also
expected in fiscal 2006.

The two-year public-sector wage freeze expired in March 2006,
and capital expenditure needs remain high.  Nevertheless, the
government remains committed to fiscal prudence and expects to
support it with a better tax administration, simplification of
the tax system, and restrained capital expenditure (where
feasible).

Real GDP growth is expected to rise to 2.5% in 2006, up from an
estimated 1.5% in 2005. Medium-term growth is expected to hover
at about 2.5% of GDP, based upon significant investment in the
tourism and mining sectors.

The ratings on Jamaica continue to be constrained by the
government's very high, albeit slowly declining, debt burden.
Despite worse-than-expected fiscal performance, government debt
is projected to decline to 127% of GDP in fiscal 2005 from 133%
one year earlier.  Nevertheless, improvements in the debt
structure have slowed, and interest rate-sensitive debt
continues to account for almost 50% of domestic debt. The share
of external and domestic foreign currency-linked debt continues
to stand at a high 50% of total debt.  On a positive note, the
interest cost burden is subsiding due to the decline in domestic
interest rates. Interest payments now consume 43% of general
government revenue, down from 53% in 2004.

The stable outlook reflects the outlook on the sovereign credit
rating on Jamaica.  Any rating action on Jamaica would be
reflected in the ratings on the Air Jamaica's notes.  The stable
outlook on Jamaica balances the expectation of prudent fiscal
policies and promising growth prospects with significant risk
stemming from high government debt and rising fiscal pressures.
The expiration of the public sector wage freeze, significant
infrastructure spending needs (further curtailment of which may
not be socially acceptable), and the preelection period will all
place increasing pressure on the fiscal accounts in 2006.
Standard & Poor's Ratings Services expects higher economic
growth, continued popular support for the government's
stabilization program, and a disciplined fiscal stance to help
alleviate some of these pressures and keep fiscal accounts in
check. Nevertheless, if this scenario does not materialize, the
missed fiscal targets in 2006 will likely endanger public
support for reform, macroeconomic stability, and foreign-
investor sentiment toward the country, all of which will harm
Jamaica's creditworthiness.


KAISER ALUMINUM: Reports Changes in Ownership of Securities
-----------------------------------------------------------
In regulatory filings with the U.S. Securities and Exchange
Commission, these directors disclosed that they do not own
securities of Kaiser Aluminum Corp.:

    -- George Becker,
    -- Carl Bennett Frankel,
    -- Teresa A. Hopp,
    -- William F. Murdy,
    -- Alfred E. Osborne, Jr.,
    -- Georganne Proctor,
    -- Jack Quinn,
    -- Thomas Melton Van Leeuwen, and
    -- Brett Wilcox.

KAC made restricted stock grants to these executive 1officers on
July 6, 2006, according to the company's filings with the SEC:

                                        No. of Shares of
     Name                               Restricted Stock
     ----                               -----------------
     Jack A. Hockema
     President, CEO & Director              185,000

     Joseph P. Bellino
     EVP, CFO & Director                     15,000

     John Barneson
     SVP & Chief Administrative Officer      48,000

     John Malcolm Donnan
     VP, Secretary & General Counsel         45,000

     Daniel D. Maddox
     VP & Controller                         11,334

     Daniel J. Rinkenberger
     VP & Treasurer                          24,000

The restricted stock grants were made pursuant to the company's
2006 Equity and Performance Incentive Plan.  All restrictions
will lapse on July 6, 2009.

On July 6, 2006, eight parties disposed their shares of common
stock, at par value of $0.01 per share:

                              Shares of Common
     Stockholder               Stock Disposed        Price
     -----------               --------------        -----
     Daniel J. Rinkenberger            33                0
     John Malcolm Donnan            2,706                0
     MAXXAM, Inc.                 750,000        US$0.0134
     MAXXAM, Inc.              27,938,250                0
     MAXXAM, Inc.              21,311,750                0
     John Barneson                 10,700                0
     Daniel D. Maddox               4,429                0
     Jack A. Hockema               17,851                0
     George T. Haymaker             2,542                0
     Robert J. Cruikshank           2,000                0

Pursuant to KAC's Reorganization Plan, all outstanding shares of
common stock, at par value of US$0.01 per share, were cancelled
without consideration on July 6, 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
===========


MERIDIAN AUTOMOTIVE: Ct. Removes GSC Group from Adversary Suit
--------------------------------------------------------------
Judge Walrath of the U.S. Bankruptcy Court for the District of
Delaware grants the Official Committee of Unsecured Creditors'
request for the dismissal of the GSC Entities.  The GSC Entities
are removed from the Avoidance Action, without prejudice.

The Committee and Defendants GSC Recovery II. L.P. and GSC
Recovery IIA, L.P., asked the Court to dismiss the GSC Entities
from the adversary proceeding without prejudice.

The GSC Entities had advised the Committee that they no longer
hold any position and do not assert any interest in the Debtors'
assets with respect to either the First Lien Facility or the
Second Lien Facility.

The Parties stipulate that the GSC Entities will represent that:

   (a) their economic interest in the First Lien Facility was
       terminated in connection with the sale of interests
       before May 25, 2006; and

   (b) they never held any position in the Second Lien Facility.

The Parties further agree the GSC Entities will be dismissed
from the Avoidance Action, without prejudice, subject to certain
conditions.

       Committee Seeks to Strike First American's Brief

Don A. Beskrone, Esq., at Ashby & Geddes, P.A., in Wilmington,
Delaware, relates that the Court established in a scheduling
order that as the First Lien Agent, Credit Suisse Cayman Islands
Branch's reply brief regarding its Summary Judgment Motion and
its answering brief to the Cross Motion of the Official
Committee of Unsecured Creditors should be filed and served no
later than June 9, 2006.

Mr. Beskrone notes that the Scheduling Order did not reference
First American Title Insurance Company nor does it authorize
First American to file any pleading in connection with the
Motion or the Cross-Motion.

Nonetheless, First American filed its brief, claiming sole
responsibility for any modifications made to the First Lien
Termination Statement and rejecting any suggestion that it was
otherwise authorized to modify the UCC filing, Mr. Beskrone
informs the Court.

Accordingly, the Committee asks the Court to strike First
American's Brief because it was:

   (1) not authorized;
   (2) not timely filed; and
   (3) duplicative of the arguments of the First Lien Agent.

                 First American Talks Back

First American maintains that it is a party to, and is entitled
to participate meaningfully in, the litigation.

Neil B. Glassman, Esq., at the Bayard Firm, in Wilmington,
Delaware argues that despite not being referenced in the
Scheduling Order, First American is entitled to assert any
defenses that Credit Suisse has against the Committee's claims
pursuant to Rule 14(a) of the Federal Rules of Civil Procedure.

Civil Rule 14(a) made applicable pursuant to Rule 7014 of the
Federal Rules of Bankruptcy Procedure provides, inter alia, that
a third-party defendant may assert against the plaintiff any
defenses, which that third-party has to the plaintiff's claim.

Mr. Glassman asserts that the Scheduling Order does not limit in
any way First American's right to file a dispositive motion or
joinder.  First American does not need prior authorization from
the Court to assert its defenses by motion, joinder or
otherwise.

If the Court deems that First American is subject to the
Scheduling Order, Mr. Glassman contends that First American's
Brief is timely filed because the Aug. 9, 2006, deadline to file
case dispositive motions has been stayed pursuant to the
Scheduling Order.

Moreover, the Committee will not suffer any prejudice if the
Brief is permitted by the Court, Mr. Glassman maintains.  On the
contrary, First American would suffer significant prejudice of
the Joinder is stricken for it will be denied the opportunity to
participate meaningfully in the resolution of the issues raised
in the Summary Judgment Motion and the Cross Motion.

The Brief is in the interests of judicial economy, Mr. Glass
says.  It is the most efficient means for First American to
participate in the resolution of common issues in the
litigation.

Accordingly, First American asks the Court to allow its Brief.

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).




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


GRUPO BANISTMO: HSBC to Acquire Bank for US$1.77 Billion
--------------------------------------------------------
London-based HSBC Holdings PLC told Reuters that it is offering
US$1.77 billion to acquire Panama's Grupo Banistmo, Reuters
reports.

Banistmo's owners that controls 65% percent of the bank has
accepted HSBC's offer of US$52.63 per share, Reuters says.

This move by HSBC, the world's third largest bank, is aimed at
making its presence in the Latin American region prevalent, and
redirecting its target toward the emerging markets' middle
classes while it is facing slow growth in the United Kingdom,
Hong Kong and the United States, Reuters relates.

HSBC already owns Mexico's fourth-largest bank and one of
Brazil's top ten, has recently acquired banks in Paraguay and
Argentina, and seeks to participate in Peru's banking system,
Reuters adds.

                        *    *    *

Troubled Company Reporter-Latin America reported on Nov. 9,
2005, Moody's Investors Service affirmed the D+ financial
strength rating and Ba1 foreign currency deposit rating of
Primer Banco del Istmo, S.A. aka Banistmo.  The affirmation
follows the announcement that Banistmo's shareholder, Grupo
Banistmo, S.A., has agreed to purchase between 51% and 60% of
Inversiones Financieras Bancosal S.A., the owner of Banco
Salvadoreno, El Salvador's third largest bank.

These ratings were also affirmed:

   * Long term foreign currency deposit rating: Ba1, with stable
     outlook

   * Short term foreign currency deposit rating: Not Prime


* PANAMA: Prepays US$351.6 Million Brady Bonds
----------------------------------------------
Panama paid in advance all of the outstanding US$351.6 million
of its Brady bonds in a bid to cut debt-servicing costs, Reuters
reports.

Reuters relates that the government issued a statement saying
that it prepaid all PDI, IRB, par and discount Brady bonds
denominated in dollars via a call option embedded in the
securities.

The government paid part of the Brady debt using funds from a
one-year US$320 million credit from Barclays Bank Plc, Reuters
says.

U.S. dollar-denominated Brady bonds were issued by an emerging
market, particularly those in Latin America, and collateralized
by U.S. Treasury zero-coupon bonds.  Brady bonds arose from an
effort in the 1980s to reduce the debt held by less-developed
countries that were frequently defaulting on loans.  The bonds
are named for Treasury Secretary Nicholas Brady, who helped
international monetary organizations institute the program of
debt-reduction.

They were part of a financial package that Panama offered to its
creditors in 1996 to re-establish relationships with its
commercial bank lenders and end the country's default status.

"The prepayment of the remaining Brady bonds represents a
historical milestone with multiple benefits for the country, as
it will allow Panama to cancel all restructured debt and erase
any remaining trace of the country's past experience with
insolvency," Reuters relates, citing the government's statement.

                        *    *    *

Fitch Ratings assigned these ratings on Panama:

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




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


ADELPHIA COMMS: Ct. Bars America Channel from Going After Assets
----------------------------------------------------------------
On June 5, 2006, the Honorable Robert D. Gerber of the U.S.
Bankruptcy Court for the Southern District of New York modified
his prior order to provide that The America Channel, LLC; Gray,
Plant, Mooty, Mooty & Bennett, P.A.; and Alioto Law Firm are
temporarily restrained, until the Bankruptcy Court rules on the
Debtors' motion for a preliminary injunction, from:

    (a) continuation of further proceedings in their action
        against Time Warner Cable, Inc., Time Warner NY Cable,
        LLC, Time Warner, Inc., and Comcast Corporation in the
        United States District Court for the District of
        Minnesota;

    (b) taking any other action, with the exception of any
        action taken in the Bankruptcy Court, to interfere with
        the Bankruptcy Court's jurisdiction over the chapter 11
        cases of Adelphia Communications Corporation and its
        debtor-affiliates; and

    (c) taking any other action, with the exception of any
        action taken in the Bankruptcy Court, to interfere with
        the sale of substantially all of Adelphia's assets to
        the Purchasers.

Judge Gerber also issued a bench decision explaining his
issuance of the temporary restraining order against America
Channel, et al.

According to Judge Gerber, "an interference with the estate's
ability to dispose of its property, or, for that matter, with
its contractual right to secure the US$17 billion in cash and
stock that it will obtain on the closing of the Time Warner and
Comcast deal, is a classic, and egregious, violation of Section
362(a)(3) of the Bankruptcy Code."

"I find, as a mixed question of fact and law, that Adelphia
plainly has shown irreparable injury, by reason of the
threatened loss of the US$17 billion it will receive on the sale
of its business, and the threatened interference with Adelphia's
reorganization.  There is nothing in the record now, if there
ever will be, to lead me to believe that TAC, a company yet to
start business, could answer for such an astronomical loss in
damages.  The irreparable injury is especially severe since the
proposed sale involves a control premium which Adelphia was
unable to obtain from anyone else, and since any delay in
closing will subject the Adelphia estate to even greater
prejudice, as interest on secured bank claims continues to
accrue," Judge Gerber notes.

            America Channel, et al., Oppose TRO

America Channel, et al., argue that the Court's original order
was an impermissible restraint on their right to bring a federal
antitrust action in the court of their choice, and wrongfully
interfered with the jurisdiction of the Minnesota District
Court. Entry of a preliminary or permanent injunction would
repeat and compound that error, America Channel, et al., assert.

America Channel, et al., ask the Bankruptcy Court to vacate its
temporary restraining order and not issue a permanent or
preliminary injunction.

In the event the Bankruptcy Court enters an injunction, America
Channel, et al., request that:

    (1) the injunction be narrowly drawn so as only to prevent
        America Channel, et al., from seeking injunctive relief
        against the sale of the Adelphia assets to Comcast and
        Time Warner in the Minnesota case, and otherwise permit
        America Channel, et al., to proceed with their antitrust
        action in Minnesota; and

    (2) the injunction be sufficiently final to allow America
        Channel, et al., to take an immediate appeal of the
        injunction to the United States District Court for the
        Southern District of New York, or, alternatively, the
        Court grant America Channel, et al., leave to appeal
        under Section 158(a) of the Judiciary Code.

                        ACOM Responds

The ACOM Debtors point out that America Channel, et al., fail to
address or disclaim the important public policies compelling the
prosecution in the Bankruptcy Court of any action that threatens
to impair the Bankruptcy Court's ability to supervise their
reorganization -- including the Sale -- and the rights of the
Debtors and their constituents to the fruits of the Sale.

The ACOM Debtors insist that America Channel, et al.'s filing of
the lawsuit in the Minnesota District Court violated the
automatic stay and threatens the Bankruptcy Court's ability to
administer the Debtors' estates.  The ACOM Debtors contend that
the Bankruptcy Court has the power, jurisdiction and authority
to enjoin America Channel, et al., from continuing to prosecute
the Action in the Minnesota District Court.  "[I]f the TAC
Action is to be prosecuted anywhere, [the Bankruptcy] Court is
the appropriate forum, both because of the strong public
policies favoring [the Bankruptcy] Court's ability to manage the
Debtors' estates and because of [the Bankruptcy] Court's
intimate knowledge of and experience with the Sale," the ACOM
Debtors note.

Moreover, the ACOM Debtors continue, an injunction enjoining
America Channel, et al., from prosecuting the TAC Action in any
court other the Bankruptcy Court would not run afoul of the
public policies underlying the antitrust laws, and, indeed,
would allow the full and fair enforcement of those laws.  The
ACOM Debtors believe that America Channel, et al., will not be
materially prejudiced should the Bankruptcy Court grant their
request for an injunction.  "[A]lthough [the Bankruptcy] Court
can issue a narrow injunction that would allow [America Channel,
et al.] to prosecute the TAC Action to the extent that such
prosecution would not interfere with the Sale or the Debtors'
estates, [America Channel, et al.'s] suggested injunction is too
narrow," the ACOM Debtors say.

                    Permanent Injunction

Judge Gerber has issued a permanent injunction enjoining America
Channel, et al., from taking any steps to exercise control over
the ACOM Debtors' property in any forum other than the
Bankruptcy Court.

The Bankruptcy Court finds that (i) Adelphia plainly has shown
irreparable injury, (ii) the resulting loss to Adelphia cannot
be compensated for by damages, (iii) the balance of hardships
favors Adelphia, and (iv) public interest would not be disserved
by issuance of a permanent injunction.

But the injunction is in a form narrower than the original TRO.
Judge Gerber permits America Channel, et al., to proceed with
their action in Minnesota if they seek damages only, or seek
equitable relief that does not interfere with the sale.

Judge Gerber reiterates that America Channel, et al.'s efforts
to enjoin the sale of the ACOM Debtors' assets constituted "a
classic and egregious violation of the automatic stay."

Judge Gerber notes that the sale represents an extraordinary
achievement, and the loss of it would be a corresponding
disaster.

"The injunction requested in Minnesota would have the effect of
holding the sale of Adelphia's assets hostage in [America
Channel, et al.]'s effort to cause Time Warner and Comcast to
carry [America Channel, et al.]'s programming on their cable
properties.  If [America Channel, et al.] contends that Comcast
or Time Warner acted wrongfully in declining to put [America
Channel, et al.] on their cable systems' channel lineups, it can
seek to convince a court of that, and secure an order requiring
[America Channel, et al.]'s programming to be carried, or to
secure damages for a refusal.  But as the remedy for the alleged
offense, [America Channel, et al.] seeks very different relief
-- an injunction prohibiting Adelphia and its creditors from
realizing on the value of their assets -- directly and
materially interfering with the estate's realization of the
value of its assets, and with its reorganization.  That goes to
the heart of what section 362(a)(3) prohibits."

Moreover, the Bankruptcy Court points out that there is no
written or unwritten exception to the automatic stay provision
for litigants prosecuting private actions under the antitrust
laws.

Judge Gerber states that America Channel, et al., would not be
deprived of a place to litigate their claims -- or to secure a
fair adjudication of the claims -- because they could still
litigate the claims in the bankruptcy court, with appellate
rights in the three courts above the bankruptcy court, and with
the right to move for withdrawal of the reference.

The Bankruptcy Court believes that if America Channel, et al.,
wish to secure an order requiring Time Warner or Comcast to
carry The America Channel on their cable properties, which the
Court understands to be the main grievance America Channel, et
al., assert, America Channel, et al., can seek that order
without material prejudice to Adelphia's reorganization, and the
Court will permit a claim for relief of that character to
proceed.  "The same could be said with respect to any [America
Channel, et al.] claims for damages, and [the Bankruptcy] Court
will permit claims for damages to proceed too.  And the Court
will even permit [America Channel, et al.] to seek divestiture,
after Adelphia has successfully realized on the value of its
assets," Judge Gerber adds.

Judge Gerber rejects America Channel, et al.'s suggestion that
America Channel, et al., should be free to enjoin Time Warner
and Comcast from proceeding under agreements they entered into
with each other as part of the sale transaction under which
Adelphia will dispose of its assets, so long as America Channel,
et al., do not try to enjoin the closing of the sale itself.

A full-text copy of the Bankruptcy Court's 30-page Decision is
available for free at http://ResearchArchives.com/t/s?e0c

               About Adelphia Communications

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


GLOBAL HOME: Has Until November 6 to Decide on Leases
-----------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave
Global Home Products, LLC, and its debtor-affiliates until
Nov. 6, 2006, to assume, assume and assign or reject non-
residential real property leases and executory contracts.

These debtor-affiliates have until August 23, 2006, to assign
some of their leases and contracts to C.R. Gibson, Inc.:

   * Burnes Acquisition, Inc.,
   * Intercraft Company,
   * Burnes Puerto Rico, Inc.,
   * Picture LLC,
   * Burnes Operating Company LLC.

The Burnes Debtors sold substantially all of their assets to
C.R. Gibson in May 2006.  The Debtors are also selling its
WearEver businesses and have yet to file a plan of
reorganization.

Section 365(d)(4) of the Bankruptcy Code, as amended by The
Bankruptcy Abuse, Prevention and Consumer Protection Act of
2005, gives a debtor only 210 days from the filing of the case
within which to decide whether to assume or reject its leases.

Under current law, all proceeds received from the sale of leases
go to a debtor's estate.  Under the new law, debtors will be
forced to negotiate with their landlords to obtain extensions
beyond 210 days.

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.


LOS FRAILES: Case Summary & Five Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Los Frailes Services Station Inc.
        P.O. Box 195392
        San Juan, Puerto Rico 00919

Bankruptcy Case No.: 06-02371

Chapter 11 Petition Date: July 19, 2006

Court: District of Puerto Rico (Old San Juan)

Debtor's Counsel: Juan A. Santos Berrios, Esq.
                  Juan A. Santos Berrios, P.S.C.
                  P.O. Box 9102
                  Humacao, Puerto Rico 00792-9102
                  Tel: (787) 285-1001

Estimated Assets: US$1 Million to US$10 Million

Estimated Debts:  US$1 Million to US$10 Million

Debtor's Five Largest Unsecured Creditors:

   Entity                              Claim Amount
   ------                              ------------
   Banco Popular de Puerto Rico          US$910,000
   P.O. Box 362708
   San Juan, PR 00936-2708

   American Petroleum                     US$68,000
   P.O. Box 2529
   Toa Baja, PR 00951-2529

   Aurora Loan Services                   US$52,000
   P.O. Box 1706
   Scottsbluff, NE 69363-1706

   Mr. Rosario                            US$46,000
   c/o Enrique Reyes Martinez BBA
   P.O. Box 6746
   Bayamon, PR 00960-5746

   JJ Petroleum                           US$23,000
   P.O. Box 1916
   Trujillo Alto, PR 00977-1916


MUSICLAND HOLDINGS: Posts US$1.7 Million Net Loss in June 2006
--------------------------------------------------------------

                       Musicland Holding Corp.
                      Consolidated Balance Sheet
                        As of June 30, 2006

ASSETS
Current Assets
   Cash                                           US$52,801,000
   Inventories                                                0
   Other
      Final Installment due to Transworld            11,564,000
      Expense Reimbursement from Transworld             846,000
      Receivables from Entertainment Weekly                   0
      Receivables from Sub-leases                       637,000
      Prepaid expenses                                        0
      Receivables from HilCo                             18,000
      Miscellaneous CC                                   24,000
      Vendor Deposits                                 3,832,000
      Pre-paid Rent                                           0
                                                   ------------
      Total                                          69,722,000
                                                   ------------
Fixed Assets                                                  0
Other assets
   Transport Logistic deposit                           600,000
   Utility and Tax Deposits                             183,000
                                                   ------------
      TOTAL ASSETS                                US$70,505,000
                                                   ============

Liabilities & Shareholders' deficit
Current liabilities
   Accounts payable
      Due to Transworld                                      $0
      Due to Deluxe                                           0
      A/P                                             1,627,000
   Other accrued liabilities
      Accrued Bank Fee                                        0
      Accrued Insurance                                       0
      HilCo payable                                           0
      Logistic Accrual                                  415,000
      Deferred Income                                   500,000
      Insurance Reserve                               4,337,000
      Accrued Payroll & Employee Benefits:
         Accrued Vacation                               126,000
         Accrued Severance                              352,000
         Accrued Employer Payroll Taxes                 422,000
         Accrued Benefits                             1,518,000
         June Payroll Accrual                                 0
      Sales Tax                                         208,000
      5% Admin. Fee on Wachovia L/C                     250,000
      Grand Thornton                                    150,000
      Ceridian                                          106,000
      Miscellaneous                                      29,000
   Gift Card liabilities                                      0
                                                   ------------
      Total                                           8,413,000
                                                   ------------
DIP financing                                                 0
Other LT Liabilities                                          0
Liabilities subject to compromise                   355,513,000
Shareholders' deficit                              (295,048,000)
                                                    -----------
      TOTAL LIABILITIES &
      SHAREHOLDERS' DEFICIT                       US$70,505,000
                                                   ============


                       Musicland Holding Corp.
                Consolidated Statement of Operations
                  For the Month Ended June 30, 2006

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

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

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

Other operating expenses
   Net advertising expense                                    -
   Logistics                                                  -
   Field administration & others                              -
                                                   ------------
      Operating expenses                                      -
                                                   ------------
General & administrative
   Payroll                                           US$305,000
   Occupancy                                             20,000
   Payroll/W2/1099 system conversion                    106,000
   FY06 Tax returns & employee benefit audit            124,000
   Data communications                                  237,000
   IT mainframe & store polling                         463,000
   Transworld reimbursements, non-payroll              (450,000)
   Others                                               118,000
                                                   ------------
EBITDA (Loss)                                          (924,000)
                                                   ------------
Hilco 340 Store GOB                                   1,742,000
Chapter 11 & related charges                         (3,465,000)
Sale to Transworld                                      283,000
Hilco 65                                               (101,000)
Media Play Wind down                                    391,000
Depreciation & Amortization                                   0
                                                   ------------
   Operating income (Loss)                           (2,074,000)
                                                   ------------
Interest income (expense)                               175,000
Other non-operating charges                             112,000
                                                   ------------
   Earnings before Taxes                             (1,787,000)
                                                   ------------
Income tax                                               (8,000)
                                                   ------------
   Net earnings (Loss)                            (US$1,779,000)
                                                  =============


                       Musicland Holding Corp.
                 Consolidated Statement of Cash Flow
                  For the Month Ended June 30, 2006


Operating activities
   Net earnings (Loss)                            (US$1,779,000)
   Adjustments to reconcile net earnings (loss)
      to net cash provided by (used in)
      operating activities:
         Loss on utility deposits write off             113,000
         Gain on write off of payroll overaccrual      (467,000)
   Changes in operating assets & liabilities:
      Inventory                                               0
      Other current assets                              156,000
      Accounts payable                                  785,000
      Other operating liabilities                    (4,675,000)
      Gift card liability                                     0
      Liabilities subject to compromise               2,555,000
                                                   ------------
   Net cash provided by (used in)
      operating activities                           (3,312,000)
                                                   ------------
Investing activities
   Change in other long term asset/liabilities                -
   Retirement of fixed assets                                 -
                                                   ------------
   Net cash provided by (used in)
      investing activities                                    -
                                                   ------------
Financing activities
   Revolver borrowings                                        -
                                                   ------------
Increase/decrease in cash                            (3,312,000)
                                                   ------------
   Cash at the beginning of Period                   56,112,000
                                                   ------------
   Cash at the end of Period                      US$52,801,000
                                                  =============

                 About Musicland Holdings

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)


OCA INC: Hawaii Unit Files Schedules of Assets & Liabilities
------------------------------------------------------------
Orthodontic Centers of Hawaii, Inc, Oca, Inc.'s debtor-
affiliate, delivered to the U.S. Bankruptcy Court for the
Eastern District of Louisiana its schedules of assets and
liabilities, disclosing:

     Name of Schedule                Assets         Liabilities
     ----------------                ------         -----------
  A. Real Property
  B. Personal Property
  C. Property Claimed
     as Exempt
  D. Creditors Holding
     Secured Claims                               US$92,255,022
  E. Creditors Holding
     Unsecured Priority Claims
  F. Creditors Holding
     Unsecured Nonpriority
     Claims
                                        ---       -------------
     Total                                0       US$92,255,022

A copy of the 22-page document containing the schedules is
available for free at http://ResearchArchives.com/t/s?e12

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.


PEP BOYS: Chief Executive Officer Larry Stevenson Resigns
---------------------------------------------------------
The Pep Boys - Manny, Moe & Jack reported the resignation of CEO
and Director Larry Stevenson.  Non-executive Chairman Bill
Leonard was named interim CEO.

Mr. Leonard has served on Pep Boys' Board of Directors since
2002 and as its Chairman since February.  From 1992 through his
retirement in 2004, he served as an officer, and ultimately
President & Chief Executive Officer of ARAMARK Corporation.

"On behalf of the Board, I want to thank Larry for his efforts
during the past three and a half years, particularly in
strengthening our management team and improving our retail
offering," said Mr. Leonard.

He continued, "I look forward to working with our management and
our more than 20,000 associates to realize the potential of the
Pep Boys brand and national footprint."

The Board has appointed a special committee to conduct a search
among internal and external candidates for a permanent CEO.

                       About Pep Boys

Pep Boys (NYSE: PBY) -- http://www.pepboys.com/-- has 593
stores and more than 6,000 service bays in 36 states and Puerto
Rico.  Along with its vehicle repair and maintenance
capabilities, the Company also serves the commercial auto parts
delivery market and is one of the leading sellers of replacement
tires in the United States.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 14, 2006,
Standard & Poor's Ratings Services placed its ratings on Pep
Boys-Manny, Moe & Jack, including its 'B-' corporate credit
rating, on CreditWatch with developing implications.  This
action follows the company's announcement that it has hired
Goldman, Sachs & Co. to explore strategic and financial
alternatives.  Standard & Poor's will monitor developments
associated with this process to assess the implications for the
ratings.




================================================
S A I N T  V I N C E N T  &  G R E N A D I N E S
================================================


TRI-CONTINENTAL EXCHANGE: Chapter 15 Petition Summary
-----------------------------------------------------
Petitioner: Malcolm Butterfield
            Saint Vincent and the Grenadines

   Debtors                    Case No.    Judge
   -------                    --------    -----
   Tri-Continental            06-22652    Christopher M. Klein
   Exchange Ltd.
   c/o Michael Tagg
   KPMG Financial Adv. Services
   Crown House 4, Par la Ville Road
   Hamilton, Bermuda

   Combined Services Ltd.     06-22655    Thomas Holman

   Alternative Market         06-22657    Michael S. McManus
   Exchange Ltd.

Type of Business: The Debtors sell auto insurance policies and
                  underwrites related insurance products.

                  In January 2006, Nationwide Mutual Insurance
                  Company sued the Debtors for trademark
                  infringement and dilution.  The U.S. District
                  Court for the Central District of California
                  found out that the Debtors were using the
                  Nationwide name to sell insurance policies to
                  customers.  None of the Debtors were
                  affiliated with the company.  Nationwide
                  asserts that the Debtors claimed to be
                  "administrators of a pool of insurers", of
                  which Nationwide is a member.

                  Subsequently, the Court granted Nationwide a
                  preliminary injunction against the Debtors.
                  Furthermore, the company and several state
                  authorities have issued cease and desist
                  orders against the Debtors.

Chapter 15 Petition Date: July 20, 2006

Court: Eastern District of California (Sacramento)

Petitioner's Counsel: Forrest B. Lammiman, Esq.
                      Lord Bissell & Brook LLP
                      111 South Wacker Drive
                      Chicago, Illinois 60606-4410
                      Tel: (312) 443-0700

Estimated Assets: US$1 Million to US$10 Million

Estimated Debts:  US$10 Million to US$50 Million




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


CITGO PETROLEUM: Discontinues Houston Refinery Auction Process
--------------------------------------------------------------
CITGO Petroleum Corp. and Lyondell Chemical have discontinued
the exploration of a sale to a third party of the LYONDELL-CITGO
Refining LP partnership that operates a refinery in Houston,
Texas.

While significant interest was expressed in the refinery and
offers exceeded US$5 billion, Lyondell has determined that these
offers were insufficient to overcome the significant benefit of
retaining an ownership position in the 268,000 barrels-per-day
refinery.  The partners continue to evaluate alternatives
including Lyondell's acquisition of CITGO's position or
continuation of the joint venture.

Lyondell's decision regarding LCR takes into consideration such
factors as:

     *  The strength and potential duration of the United States
        refining cycle;

     *  Earnings and after-tax cash flow considerations;
     *  Synergies and fit with Lyondell's chemical holdings;
     *  Deleveraging potential through a sale versus continued
        participation in refining.

It is anticipated that a decision and announcement will be
forthcoming in the near future.

                       About Lyondell

Lyondell Chemical Company, headquartered in Houston, Texas, is
North America's third-largest independent, publicly traded
chemical company.  Lyondell is a major global manufacturer of
basic chemicals and derivatives including ethylene, propylene,
titanium dioxide, styrene, polyethylene, propylene oxide and
acetyls.  It also is a significant producer of gasoline blending
components.  The company has a 58.75 percent interest in
LYONDELL-CITGO Refining LP, a refiner of heavy, high-sulfur
crude oil.  Lyondell is a global company operating on five
continents and employs approximately 10,000 people worldwide.

                        About CITGO

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

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

                        *    *    *

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


CITGO PETROLEUM: Discontinued Sale Won't Change Fitch's Ratings
---------------------------------------------------------------
The ratings of CITGO Petroleum Corporation are not expected to
change due to the announcement that Lyondell Chemical Company
(Issuer Default Rating (IDR) of 'BB-' on Rating Watch Evolving)
and CITGO have discontinued the auction process for the
LYONDELL-CITGO Refining L.P. refinery in Houston, Texas.
Although bids exceeded US$5.0 billion, these offers did not meet
the owners' views of the value of the facility.  The
announcement also indicated that the owners would seek other
alternatives, including the possible acquisition of CITGO's
41.25% interest in the 268,000 barrel per day (bpd) refinery by
Lyondell or continuation of the joint venture. Fitch rates the
debt of CITGO as follows:

   -- IDR 'BB-';

   -- US$1.15 billion senior secured revolving credit facility
      maturing in 2010 'BB+';

   -- US$700 million secured term-loan B maturing in 2012 'BB+';

   -- Senior secured notes 'BB+'.

CITGO's variable-rate IRBs are supported by letters of credit
under the company's credit facilities and are not rated by
Fitch. The Rating Outlook for CITGO's debt is Stable.

Although the ultimate outcome is uncertain, CITGO's ratings
incorporate Fitch's expectation that net proceeds from the sale
of its interest in LCR would be distributed to its ultimate
parent, the Bolivarian Republic of Venezuela (Venezuela, long-
term IDR of 'BB-' with a Stable Rating Outlook by Fitch). CITGO
is also evaluating the sale of its two smaller asphalt
refineries in Savannah, Georgia and Paulsboro, New Jersey.
CITGO's credit facilities allow for the distribution of gross
proceeds of up to $3 billion of asset sales by CITGO, including
inventories associated with the asset sales, but excluding the
Lake Charles, Louisiana, and Corpus Christi, Texas, refineries.
The credit facilities are secured by the Lake Charles and Corpus
Christi refineries as well as the company's current assets
(accounts receivable and inventories).

CITGO's ratings continue to be supported by the significant
improvements made to the company's balance sheet in recent
quarters. CITGO's three core refineries (Lake Charles, Corpus
Christi and Lemont, Illinois) have also been upgraded over the
past several years to process a high percentage of heavy sour
crude. Heavy crudes continue to sell at a 20% to 25% discount to
lighter sweet crudes such as the benchmarks West Texas
Intermediate and Brent.  As the largest recipient of Venezuelan
crude exports, CITGO remains a critical piece of Venezuela's
integrated oil strategy.

CITGO is one of the largest independent crude oil refiners in
the U.S., with three modern, highly complex refineries and two
asphalt refineries. Including the company's 41.25% interest in
LCR, CITGO owns 970,000 bpd of crude refining capacity. CITGO
branded fuels are marketed through more than 13,000
independently owned and operated retail sites. CITGO is owned by
PDV America, an indirect, wholly owned subsidiary of Petroleos
de Venezuela S.A., the state-owned oil company of Venezuela.


PARMALAT GROUP: Confirms Intention to Sell Venezuela Plants
-----------------------------------------------------------
Parmalat S.p.A. confirmed in a press release that its subsidiary
Parmalat de Venezuela C.A. talked with the Venezuelan government
in June 2006 regarding the possible sale of two of the unit's
seven industrial plants.

Parmalat de Venezuela, in a communique delivered to El Universal
and its workers, suppliers, transportation contractors, cattle-
raisers and customers, said the negotiations started two years
ago and have now entered their final phase.  Parmalat Venezuela
said it will advise the public "of the time when the sale of
such two plants is to take place, as well as of the terms of the
agreement," according to El Universal, citing the communique.

Bloomberg News, citing another report by El Universal, says the
parties have failed to agree on a price.  The Venezuelan
government officials found Parmalat's price is "too high."

According to Reuters, the Venezuelan government wants to use the
two plants -- one located in Machiques, Zulia state, the other
in Barquisimeto, Lara state -- for state-supported cooperatives
under a worker co-management model promoted as part of
Venezuelan President Hugo Chavez's socialist revolution for the
poor.

Parmalat also clarifies that, contrary to reports in the
Venezuelan press, the government does not intend to acquire the
entire Venezuelan unit.

Parmalat says the unit is its most important business in the
Latin America region, generating EUR152.8 million revenues in
2005 and EUR43.5 million in the first quarter of 2006.

                       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)


PETROLEOS DE VENEZUELA: Amuay Refinery Fire Cuts Output by 74K
--------------------------------------------------------------
The fire that hit Petroleos de Venezuela SA's Amuay refinery at
its Paraguana Refining Complex cuts daily production by 74,000
barrels, El Universal reports.  Estimated losses resulting from
the incident is at US$5.8 million.

Jesus Luongo, manager of the refining premises, said in a press
statement that the fire was the third accident in the refining
facilities this month.

Petroleos de Venezuela's Public Affairs Division denied rumors
that the refinery halted oil shipments and called for
evacuation, El Universal relates.

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

                        *    *    *

On Jan. 23, 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: Trade with Italy Up 40% in First Quarter
-----------------------------------------------------
Venezuela-Italy trade for the first quarter of 2006 increased
40%, ABN reported, citing Maximiliano Tremiterra, head of the
Trade Promotion Office of the Italian Embassy to Venezuela.

El Universal reports that Italian exports to Venezuela amounted
to US$600 million, and Venezuelan sales to Italy were US$200
million.

Venezuela has mostly imported state-of-the-art technology for
state companies, the Italian trade minister told ABN.  While,
Italy imported a number of Venezuelan items the diplomat labeled
as "excellent," such as cocoa and its derivatives.

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



                         ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
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 * * *