TCRLA_Public/060727.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

          Wednesday, July 27, 2006, Vol. 7, Issue 148

                            Headlines

A R G E N T I N A

ACINDAR INDUSTRIA: Starts Building US$50-Mil. Rod & Bar Roller
BIOIMAGEN SA: Trustee Submits Individual Reports on Aug. 8
CLINICA Y MATERNIDAD: Individual Reports to be Filed on Aug. 30
COMODEX SA: Claims Verification Deadline Moved to Sept. 15
FONDOS FIDUCIARIOS: Individual Reports Due in Court on Aug. 15

HACIENDAS DEL FORTIN: Individual Reports Due in Court on Aug. 17
MAGIA SRL: Trustee to Present Individual Reports on Aug. 20
PETROFULL SRL: Reorganization Proceeding Concluded
PIKER SRL: Trustee Will Deliver Individual Reports on Aug. 22
SAVIO MATERIALES: Individual Reports to be Submitted on Aug. 15

SLOOP SA: Verification of Proofs of Claim Is Until Oct. 4
SUMATIK SRL: General Report to be Presented in Court Tomorrow

B A H A M A S

COMPLETE RETREATS: Wants to Use Lenders' Cash Collateral
COMPLETE RETREATS: Wants Court OK to Use US$10-Mil DIP Financing

B E R M U D A

SEA CONTAINERS: Christopher Garnett Steps Down as GNER CEO

B O L I V I A

PETROLEO BRASILEIRO: Bolivian Gov't Alleges Gas Meter Tampering

* BOLIVIA: Spots Irregularities on Gas Meters of Two Companies

B R A Z I L

BANCA SAFRA: S&P Says Change in Ownership Won't Affect Ratings
BANCO BRADESCO: Providing BRL5.5MM Insurance to Canadian Tour
FIDELITY NATIONAL: Reports US$1.02 Bil. Revenues in 2nd Quarter
PETROLEO BRASILEIRO: Gets Approval to Develop Mexilhao Gas Pole
PETROLEO BRASILEIRO: Unit Declares Cash Tender Offer Results

VARIG S.A.: Brazilian Agency Vetoes Flight Suspensions

C A Y M A N   I S L A N D S

AHFP HALCYON: Final Shareholders Meeting Is Set for Aug. 24
AHFP LEGEND: Shareholders Gather for a Final Meeting on Aug. 24
C-BASS ABS: Liquidator To Presents Wind Up Accounts on Aug. 24
PEYPER INVESTMENTS: Final Shareholders Meeting Is on Aug. 14
SANWA CAPITAL: Shareholders Gather for Final Meeting on Sept. 7

SANWA (FINANCE): Last Shareholders Meeting Is Set for Sept. 7
SANWA (INT'L): Will Hold Final Shareholders Meeting on Sept. 7
SANWA (INVESTMENT): Last Shareholders Meeting Is Set for Sept. 7
SANWA (MONETARY): Last Shareholders Meeting Is Set for Sept. 7
SANWA (SECURITIES): Last Shareholders Meeting Is Set for Sept. 7

SANWA (TREASURY): Final Shareholders Meeting Is Set for Sept. 7

C H I L E

IRON MOUNTAIN: Moody's Rates US$200 Million Senior Notes at B3

C O L O M B I A

ECOPETROL SA: Gov't May Sell 20% Stake to Attract Investment

* COLOMBIA: Amends Import Standards for Venezuelan Liquid Fuel
* COLOMBIA: Niscota Block Qualifiers to be Disclosed on August 3
* COLOMBIA: Two Bids Qualify for Airport Concession

C O S T A   R I C A

* COSTA RICA: State Firm Seeks Regular Gasoline Price Increase

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE: Xstrata Receives Investment Canada Act Approval
FREESTAR TECH: Files Amended Financial Statements

* DOMINICAN REPUBLIC: Experiences 12-Hour Power Outages
* DOMINICAN REPUBLIC: Temistocles Montas Won't Take on More Debt

E C U A D O R

* ECUADOR: Posts US$67.10 Mil. Oil Product Export Revenue in May

E L   S A L V A D O R

* EL SALVADOR: Government Mulls Cooperation Plan with Japan

G U A T E M A L A

BANCO INDUSTRIAL: Sets Up Share Exchange to Merge with Occidente

H A I T I

* HAITI: Will Get US$750-Million Aid to Restore Economy

H O N D U R A S

* HONDURAS: Foreign Mine Ownership Law Incites Protest
* HONDURAS: Mulls Privatization of Water Utilities

M E X I C O

GENERAL MOTORS: Secures New US$4.63 Billion Debt Facility
LIBBEY INC: Declares Quarterly Dividend of US$0.025 Per Share
INNOPHOS INVESTMENT: Moody's Affirms B2 Corporate Family Rating
MERIDIAN AUTO: Panel Responds to First American's Objection
PORTRAIT CORP.: Hires Thomas L. Garret, Jr., as EVP & CFO

VITRO SA: Reports Strong Results in Second Quarter of 2006

P A N A M A

* PANAMA: Sells US$313 Million of Reopened 2015 Global Bond

P A R A G U A Y

* PARAGUAY: Meets International Monetary Fund's Economic Targets

P E R U

GRAN TIERRA: Deloitte & Touche Expresses Going Concern Doubt

* PERU: US Finance Committee Mulls Free Trade Accord with Nation

P U E R T O   R I C O

ADELPHIA COMMS: Wants Court Nod on Extended DIP Facility
GLOBAL HOME: Has Until Jan. 15 to Remove State Court Civil Suits
MUSICLAND HOLDING: Trade Creditors Sell US$77 Million Claims
OCA INC: Court OKs Amended & Restated Joint Disclosure Statement
UNIVERSITY OF PUERTO: Moody's May Downgrade Baa2 Rating

WARRANTECH CORP: Balance Sheet Upside Down by US$30,499,002

T R I N I D A D   &   T O B A G O

MIRANT CORP: Equity Panel Counsel Insists on No Fee Enhancement
MIRANT CORP: Excluded Debtors Want Until December 6 to File Plan

U R U G U A Y

* URUGUAY: Insurers Post UYU9.26 Mil. First Quarter 2006 Profit

V E N E Z U E L A

ARVINMERITOR: Sells LVA Control Unit in Marion to AVM Industries

* VENEZUELA: Inks Cooperation Accords with Belarus
* LatinFinance Ranks LatAm Banks According to Sustainability
* Large Companies with Insolvent Balance Sheets


                          - - - - -  


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


ACINDAR INDUSTRIA: Starts Building US$50-Mil. Rod & Bar Roller
--------------------------------------------------------------
Acindar Industria Argentina de Aceros SA has began works for the
installation of a new US$50-million rod and bar roller line at
its Villa Constitucion plant, Business News Americas reports,
citing a company executive.

"We are replacing line 1 which, although it has been upgraded
over several years in different stages, is still a line that has
run its course and we are exchanging it for a more modern one,"
the unnamed source told BNamericas.

According to BNamericas, the 500,000t/y line will allow Acindar
to increase rolling capacity and raise output from 1.3Mt to
1.7Mt.  The facility will also be able to manufacture industrial
products like round, square, and flat bars and bars for
concrete.

The project is part of Acindar's US$150-million investment
program, which also aims to increase sponge iron output, improve
the steel mill, and better environmental and worksite safety,
BNamericas relates.

Acindar, controlled by Brazilian steelmaker Belgo-Mineira,
produces non-flat steel products such as steel pipe, cable, hot-
rolled and cold-drawn steels for concrete, forged bars and
blocks for distributors of steel products, other steel
companies, manufacturers of original equipment for several
industrial sectors including the automotive and the oil and gas
industries and end users, mainly in the construction and
agricultural sectors of the economy.  Its principal market is
Argentina, although it exports its products to Brazil, Chile and
the United States, Bolivia and Uruguay through its sales office.

                        *    *    *

As reported on Dec. 23, 2005, Fitch Argentina Calificadora de
Riesgo S.A. maintained the 'D(arg)' rating given to a total of
US$100 million of corporate bonds issued by steelmaker Acindar
Industria Argentina de Aceros.

Comision Nacional Valores, the country's securities regulator,
said that the rating action was based on the company's finances
as of Sept. 30, 2004.

The bonds, which matured in February 16, 2005, are described as
"Obligaciones Negociables simples, no 5.8.96."


BIOIMAGEN SA: Trustee Submits Individual Reports on Aug. 8
----------------------------------------------------------
Emilio Omar Abraham, the court-appointed trustee for Bioimagen
S.A.'s bankruptcy proceeding, will present individual reports in
court on Aug. 8, 2006.  A general report that contains an audit
of the company's accounting and banking records will follow on
Sept. 20, 2006.

Mr. Abraham verified creditors' proofs of claim until
June 12, 2006.

The debtor can be reached at:

           Bioimagen S.A.
           Zuviria 2147
           Buenos Aires, Argentina

The trustee can be reached at:

           Emilio Omar Abraham
           Viamonte 1592
           Buenos Aires, Argentina


CLINICA Y MATERNIDAD: Individual Reports to be Filed on Aug. 30
---------------------------------------------------------------
Estudio Contable Ruggiero, Cordero & Suarez, the court-appointed
trustee for Clinica y Maternidad Modelo S.A. Medico
Asistencial's bankruptcy proceeding, will present individual
reports in court on Aug. 30, 2006.  A general report that
contains an audit of the company's accounting and banking
records will follow on Sept. 29, 2006.

The trustee verified creditors' proofs of claim until
June 14, 2006.

The debtor can be reached at:

           Clinica y Maternidad Modelo S.A. Medico Asistencial
           Mitre 2951, Mar del Plata
           Buenos Aires, Argentina

The trustee can be reached at:

           Estudio Contable Ruggiero, Cordero & Suarez
           Avenida Luro 3894, Mar del Plata
           Buenos Aires, Argentina


COMODEX SA: Claims Verification Deadline Moved to Sept. 15
----------------------------------------------------------
A court in Buenos Aires moved the deadline for verification of
creditors' proofs of claim against Comodex S.A. to
Sept. 15, 2006.  The verification deadline was previously set
for May 15, 2006.  

Gustavo Alejandro Pagliere, the court-appointed trustee for
Comodex' reorganization proceeding, will remain in his position.

Mr. Pagliere will present the validated claims in court as
individual reports on Oct. 30, 2006.  A general report that
contains an audit of Comodex' accounting and banking records
will follow on Dec. 12, 2006.

On June 21, 2007, Comodex' creditors will vote on a settlement
plan that the company will lay on the table.

The debtor can be reached at:

           Comodex S.A.
           Pasaje de la Conquista 1014
           Buenos Aires, Argentina

The trustee can be reached at:

           Gustavo Alejandro Pagliere
           Tucuman 1424
           Buenos Aires, Argentina


FONDOS FIDUCIARIOS: Individual Reports Due in Court on Aug. 15
--------------------------------------------------------------
Lia Stella Maris Alvarez, the court-appointed trustee for Fondos
Fiduciarios S.A.'s reorganization proceeding, will present
individual reports in court on Aug. 15, 2006.  A general report
that contains an audit of the company's accounting and banking
records will follow on Sept. 26, 2006.

Ms. Alvarez verified creditors' proofs of claim until
June 20, 2006.

On March 27, 2007, Fondos Fiduciarios' creditors will vote on a
settlement plan that the company will lay on the table.

The trustee can be reached at:

         Lia Stella Maris Alvarez
         Cerrito 146
         Buenos Aires, Argentina


HACIENDAS DEL FORTIN: Individual Reports Due in Court on Aug. 17
----------------------------------------------------------------
Carlos Daniel Grela, the court-appointed trustee for Haciendas
del Fortin S.A.'s bankruptcy proceeding, will present individual
reports in court on Aug. 17, 2006.  A general report that
contains an audit of the company's accounting and banking
records will follow on Sept. 29, 2006.

Mr. Grela verified creditors' proofs of claim until
June 22, 2006.

The trustee can be reached at:

         Carlos Daniel Grela
         Tucuman 1585
         Buenos Aires, Argentina


MAGIA SRL: Trustee to Present Individual Reports on Aug. 20
-----------------------------------------------------------
Graciela Beatriz Gobbi, the court-appointed trustee for Magia
S.R.L.'s bankruptcy proceeding, will present individual reports
in court on Aug. 20, 2006.  A general report that contains an
audit of the company's accounting and banking records will
follow on Sept. 22, 2006.

Ms. Gobbi verified creditors' proofs of claim until
June 16, 2006.

The debtor can be reached at:

         Magia S.R.L.
         Santa Rosa 3085, Alto Alberdi
         Ciudad de Cordoba
         Cordoba, Argentina

The trustee can be reached at:

         Graciela Beatriz Gobbi
         Obispo Trejo 351 Ciudad de Cordoba
         Cordoba, Argentina


PETROFULL SRL: Reorganization Proceeding Concluded
--------------------------------------------------
Petrofull S.R.L.'s reorganization proceeding has ended.  Data
published by Infobae on its Web site indicated that the process
was concluded after Court No. 7 in Buenos Aires, with assistance
from Clerk No. 14, approved the debt agreement signed between
the company and its creditors on May 15, 2006.

Juan Carlos Caro was the court-appointed trustee who supervised
the reorganization proceeding.  He verified creditors' proofs of
claim until Aug. 18, 2005.

Mr. Caro presented the validated claims in court as individual
reports on Sept. 29, 2006.  He also submitted a general report
that contained an audit of Petrofull's accounting and banking
records on Nov. 11, 2005.

The debtor can be reached at:

           Petrofull S.R.L.
           Avenida Nazca 1330
           Buenos Aires, Argentina

The trustee can be reached at:

           Juan Carlos Caro
           Junin 933
           Buenos Aires, Argentina


PIKER SRL: Trustee Will Deliver Individual Reports on Aug. 22
-------------------------------------------------------------
Armando Gutman, the court-appointed trustee for Piker S.R.L.'s
bankruptcy proceeding, will present individual reports in court
on Aug. 8, 2006.  A general report that contains an audit of the
company's accounting and banking records will follow on
Oct. 3, 2006.

Mr. Gutman verified creditors' proofs of claim until
June 26, 2006.

Court No. 3 in Buenos Aires declared Piker S.R.L. bankrupt at
the behest of Terencio Ruiz, whom it owes US$7,789.66.

The debtor can be reached at:

           Piker S.R.L.
           Pereyra 1781
           Buenos Aires, Argentina

The trustee can be reached at:

           Armando Gutman
           Esmeralda 625
           Buenos Aires, Argentina


SAVIO MATERIALES: Individual Reports to be Submitted on Aug. 15
---------------------------------------------------------------
Manuel Arnaldo, the court-appointed trustee for Savio Materiales
S.A.'s bankruptcy proceeding, will present individual reports in
court on Aug. 15, 2006.  A general report that contains an audit
of the company's accounting and banking records will follow on
Sept. 26, 2006.

Mr. Arnaldo verified creditors' proofs of claim until
June 20, 2006.

Court No. 18 in Buenos Aires declared Savio Materiales bankrupt
at the behest of Aridos de Campana S.A., the company's creditor.

Clerk No. 35 assists the court in the case.

The debtor can be reached at:

           Savio Materiales S.R.L.
           Ricardo Levene 956
           Buenos Aires

The trustee can be reached at:

           Manuel Arnaldo
           Parana 224
           Buenos Aires


SLOOP SA: Verification of Proofs of Claim Is Until Oct. 4
---------------------------------------------------------
Court-appointed trustee Daniel Guillermo Contador will verify
creditors' proofs of claim against bankrupt company Sloop S.A.
until Oct. 4, 2006.

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

Mr. Contador will present the validated claims in court as
individual reports on Nov. 16, 2006.  A general report that
contains an audit of Sloop S.A.'s accounting and banking records
will follow on Feb. 1, 2007.

The trustee can be reached at:

           Daniel Guillermo Contador
           Tucuman 1657
           Buenos Aires, Argentina


SUMATIK SRL: General Report to be Presented in Court Tomorrow
-------------------------------------------------------------
A general report on the reorganization case of Sumatik S.R.L.
will be presented in a Buenos Aires court on July 28.  The
report contains the company's audited business records as well
as a summary of events pertaining to the case.

As reported in the Troubled Company Reporter-Latin America on
March 17, 2006, court-appointed trustee Jorge Osvaldo
Stanislavsky stopped verifying claims from Sumatik's creditors
on April 18, 2006.  The verified claims were used as basis in
creating individual reports, which were presented in court on
June 1, 2006.

The debtor can be reached at:

           Sumatik S.R.L.
           Nunez 4820
           Buenos Aires, Argentina

The trustee can be reached at:

           Jorge Osvaldo Stanislavsky
           Talcahuano 768
           Buenos Aires, Argentina




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


COMPLETE RETREATS: Wants to Use Lenders' Cash Collateral
--------------------------------------------------------
Prior to the Petition Date, Complete Retreats LLC and its
debtor-affiliates obtained financing under two credit
agreements:

                                                   Amount
                                                 Outstanding
     Credit Facility                           at Petition Date
     ---------------                           ----------------
     US$50,600,000 Amended and Restated           US$25,600,000
     Loan Agreement with The Patriot Group

     US$28,500,000 Loan Agreement with            US$27,600,000
     LPP Mortgage Ltd., assignee of
     Beal Bank, S.S.B.

The Debtors' obligations under the Patriot Loan Agreement are
secured by a first-priority security interest in certain of the
Debtors' real estate assets, as well as all of their other
tangible and intangible property.  The obligations under the LPP
Loan Agreement are secured by a first-priority security interest
in several of the real estate assets not included in the Patriot
Loan Agreement.

In addition, certain of the Debtors' real estate assets are
subject to mortgages in favor of other lenders:

     Secured Lender      Property Location      Mortgage Amount
     --------------      -----------------      ---------------
     Cabo Resort         Cabo San Lucas, Mexico  US$3,000,000
     Investing, LLC

     R.E. Loans LLC      Ketchum, Idaho          US$1,400,000

     D.G. Capital, LLC   Maui, Hawaii            US$2,900,000

Because the Debtors filed for bankruptcy, absent court authority
pursuant to Section 363(c) of the Bankruptcy Code, the Debtors
have no right to use their prepetition lenders' cash collateral.

"The Debtors need access to cash collateral in order to
effectively continue to operate their business.  The Debtors
would use cash collateral to meet many of their obligations
going forward, including, among others, obligations to
employees," Holly Felder Etlin, the Debtors' chief restructuring
officer, tells the Court.  Ms. Etlin is a principal at XRoads
Solutions Group, LLC, the Debtors' crisis managers.

If the Debtors are not permitted to do so, Ms. Etlin continues,
their business could be irreparably harmed to the detriment of
their estates, creditors, and other parties-in-interest.

In this regard, the Debtors seek the Court's permission to use
their lenders' cash collateral.

To the extent the prepetition Lenders' liens on and security
interests in the Collateral or any other form of adequate
protection of the Lenders' interests is insufficient as a result
of diminution to satisfy all Prepetition Obligations, the
Debtors propose to grant the Lenders a priority claim under
Section 507(b) to the extent of any deficiency.

The Debtors will also pay monthly to the Lenders (i) the
reasonable attorney's fees and expenses incurred by Lenders in
connection with their cases and the Existing Loans and (ii)
accrued interest on the Existing Loans.

To the extent parties-in-interest challenge the extent,
priority, avoidability, or enforceability of the Debtors'
prepetition obligations or the liens granted to the prepetition
Lenders, the Debtors ask the Court to require those parties,
including any official committee appointed in their cases, to
file any objections or complaints within 60 days from the
committee's formation or, if no committee is formed within 30
days of the Petition Date, until 75 days after the Petition
Date.

If no Objection is timely filed, or if an Objection is timely
filed but denied, (i) the prepetition obligations will be deemed
allowed in full and Lenders' prepetition liens will be deemed
valid and non-avoidable.  The Lenders will also be deemed
discharged from claims and causes of action related to or
arising out of the prepetition credit agreements.

he Debtors propose that a final hearing on their request be
scheduled no later than August 22, 2006.

Objections, if any, to the Debtors' request should be filed with
the Court and served to:

   (i) proposed counsel to the Debtors
       Dechert LLP
       30 Rockefeller Plaza
       New York, NY 10112
       Attn: Joel H. Levitin, Esq., and
             David C. McGrail, Esq.;

  (ii) The Office of the United States Trustee
          for the District of Connecticut;

(iii) counsel to any official committee appointed in the cases;

  (iv) counsel to Patriot
       Pepper Hamilton LLP
       1313 Market Street
       P.O. Box 1709
       Wilmington, DE 19899
       Attn: David M. Fournier, Esq.;
    
             -- and --

       counsel to LLP Mortgage
       Jenkens & Gilchrist, PC
       1445 Ross Avenue Suite 3200
       Dallas, TX 75202
       Attn: Gregory G. Hesse, Esq.

                  About Complete Retreats

Complete Retreats, LLC, Preferred Retreats, LLC, and their
subsidiaries were founded in 1998.  Owned by Robert McGrath and
four minority owners, the companies operate a five-star
hospitality and real estate management business and are a
pioneer and market leader of the "destination club" industry.  
Under the trade name "Tanner & Haley Resorts," Complete
Retreats, et al.'s destination clubs have numerous individual
and company members.

Destination club members pay up-front membership deposits,
annual dues, and daily usage fees.  In return, members and their
guests enjoy the use of first-class private residences, and
receive an array of luxurious services and amenities in certain
exotic vacation destinations in the United States and locations
around the world, including: Abaco, Bahamas; Cabo San Lucas,
Mexico; Nevis, West Indies; Telluride, Colorado; and Jackson
Hole, Wyoming.

Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245
through 06-50306).  Nicholas H. Mancuso, Esq., Jeffrey K. Daman,
Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A.
Stieglitz Jr., Esq., at Dechert LLP, are representing the
Debtors in their restructuring efforts.  Xroads Solutions Group,
LLC, is the Debtors financial and restructuring advisor.  When
the Debtors filed for chapter 11 protection, they listed total
debts of US$308,000,000.


COMPLETE RETREATS: Wants Court OK to Use US$10-Mil DIP Financing
----------------------------------------------------------------
Holly Felder Etlin, the Debtors' chief restructuring officer,
informs the U.S. Bankruptcy Court for the District of
Connecticut that the Debtors have entered into a short-term
postpetition financing to satisfy immediate liquidity needs.

Ms. Etlin relates that The Patriot Group, LLC, has agreed to
provide the Debtors with a US$10,000,000 postpetition revolving
line of credit to give them some time to secure a longer-term
DIP financing arrangement.

Accordingly, the Debtors ask the Court to approve a DIP Credit
Agreement, dated July 23, 2006, with Patriot, as lender and
agent, and LLP Mortgage, Ltd., as lender.  LLP Mortgage is the
assignee of Beal Bank, S.S.B.

A full-text copy of the DIP Credit Agreement is available at no
charge at http://bankrupt.com/misc/T&H_PatriotDIPAgreement.pdf

The Debtors will use US$1,480,000 of the DIP loan proceeds to
repay an advance made by Patriot shortly before the Petition
Date.  The remainder will be used to pay costs and expenses
associated with the operation of the Debtors' business and in
administering their Chapter 11 cases.

The parties contemplate that by September 15, 2006, the Debtors
will have secured an US$85,000,000 DIP financing facility from a
third-party lender to repay in full the Debtors' prepetition
loan obligations, certain third-party secured debt, and the DIP
Facility.

The Debtors have prepared a 13-week budget, which the DIP
Lenders approved.  A copy of a 10-week portion of the budget is
available at no charge at
http://bankrupt.com/misc/T&H_cashflowforecast.pdf

The Debtors believe that the Budget is achievable and would
allow them to operate without accruing administrative expenses
that they will not be able to pay.

Extensions or modifications of the Budget would be permitted
with the DIP Lenders' written approval.

                      Security Interest

To secure repayment of the DIP Loan, the Debtors will provide
the DIP Lenders with:

   -- a perfected, first priority, senior priming lien on the
      collateral subject to the existing liens of Patriot and
      LLP Mortgage;

   -- a perfected, first priority lien on their unencumbered
      assets; and

   -- a perfected, second priority lien on any already
      encumbered assets; and

   -- a superpriority administrative claim.

The DIP Liens will be subject to a US$1,100,000 carve-out for
professional fees, and fees payable to the U.S. Trustee and the
Clerk of Court.

                 Interest & Other Payments

Each loan advance will incur a non-default interest rate at 1-
Month LIBOR applicable at the time of the Advance plus 6% per
annum on the basis of a 360-day year, and will be assessed for
the actual number of days elapsed on the amount of Advances
outstanding.  Interest will be payable monthly in cash in
arrears on the first business day of each month, commencing
Aug. 1, 2006.

The default rate of interest would be the Non-Default Interest
Rate plus 3%.

The Debtors will also pay all reasonable out-of-pocket costs and
expenses of the DIP Lenders in connection with the:

   (i) negotiation, preparation, execution, and delivery of the
       DIP Financing Agreement documentation and the funding of
       the DIP Financing Agreement;

  (ii) enforcement or protection of any of the Lenders' claims,
       rights, and remedies under the DIP Financing Agreement or
       Patriot's loans to the Debtors;

(iii) administration of the DIP Financing Agreement and any
       amendment or waiver of any provision of the DIP Facility
       documentation; and

  (iv) these bankruptcy cases.

The Debtors agree to indemnify and hold the DIP Lenders harmless
from claims or liabilities related to the DIP financing.

                        Maturity Date

The DIP loan will mature on the earliest of:

   (a) September 30, 2006;

   (b) the effective date of a plan of reorganization concerning
       any Debtor; or

   (c) the date on which an Event of Default occurs.

All amounts outstanding and any other obligations of the Debtors
under the DIP Financing Agreement would be due and payable in
full on the Maturity Date, and no further advances may be drawn.

Events of Default include:

     * failure of the Bankruptcy Court to enter the Interim
       Order on or before July 28, 2006;

     * failure of the Bankruptcy Court to enter the Final Order
       on or before the earlier of August 31, 2006, or the 30th
       day after the entry of the Interim Order;

     * the Debtors' failure to:

       (1) provide the DIP Lenders with an executed financing
           commitment for a New DIP facility, in form and
           substance acceptable to the Lenders, with a third-
           party lender, by Aug. 31; and

       (2) file with the Bankruptcy Court a motion of approval
           for the New DIP Facility Commitment by Sept. 10.

The Debtors are also barred from pursuing consolidation or
merger with another entity.

                      Sale of DR Abaco

As a condition to funding, the Debtors will attempt to sell
certain non-core assets or properties owned by Debtor Private
Retreats Nevis, LLC, and non-debtor DR Abaco, LLC.

Prior to the Petition Date, Patriot exercised its rights under
its prepetition agreements with the Debtors and took over
control and management of DR Abaco.  Pursuant to the DIP
Financing Agreement, the Debtors will file a voluntary Chapter
11 bankruptcy petition for DR Abaco in the near future.

However, upon the filing of a bankruptcy petition for DR Abaco,
the failure of DR Abaca to become a Patriot Debtor subject to
Patriot's DIP Lien and Patriot's Superpriority Claim will
constitute an Event of Default.

Patriot is represented in the Debtors' cases by:

     David M. Fournier, Esq.
     Pepper Hamilton LLP
     Wilmington, DE

LLP Mortgage is represented by:

     Gregory G. Hesse, Esq.
     Jenkens & Gilchrist, PC
     Dallas, TX  

                 About Complete Retreats

Complete Retreats, LLC, Preferred Retreats, LLC, and their
subsidiaries were founded in 1998.  Owned by Robert McGrath and
four minority owners, the companies operate a five-star
hospitality and real estate management business and are a
pioneer and market leader of the "destination club" industry.  
Under the trade name "Tanner & Haley Resorts," Complete
Retreats, et al.'s destination clubs have numerous individual
and company members.

Destination club members pay up-front membership deposits,
annual dues, and daily usage fees.  In return, members and their
guests enjoy the use of first-class private residences, and
receive an array of luxurious services and amenities in certain
exotic vacation destinations in the United States and locations
around the world, including: Abaco, Bahamas; Cabo San Lucas,
Mexico; Nevis, West Indies; Telluride, Colorado; and Jackson
Hole, Wyoming.

Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245
through 06-50306).  Nicholas H. Mancuso, Esq., Jeffrey K. Daman,
Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A.
Stieglitz Jr., Esq., at Dechert LLP, are representing the
Debtors in their restructuring efforts.  Xroads Solutions Group,
LLC, is the Debtors financial and restructuring advisor.  When
the Debtors filed for chapter 11 protection, they listed total
debts of US$308,000,000.




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


SEA CONTAINERS: Christopher Garnett Steps Down as GNER CEO
----------------------------------------------------------
Sea Containers Ltd. disclosed that Christopher Garnett, Chief
Executive Officer of GNER and Senior Vice President - Rail of
Sea Containers, will be stepping down after 10 years with the
Company.

Mr. Garnett, 60, will leave the Company on Aug. 31.  Bob
MacKenzie, President and CEO of Sea Containers, will become
Executive Chairman of GNER, supported by the other GNER
directors.

"After ten challenging and rewarding years helping to transform
GNER into a company renowned for customer service, now is the
right time to step down and hand over to others to lead the next
stage in GNER's development," Mr. Garnett said.

Commenting on Mr. Garnett's departure, Mr. MacKenzie said: "We
thank Christopher for his sterling work building GNER into the
first class train operating company which it is, and for his
efforts and commitment to the company since 1996.  Looking
ahead, GNER does face a number of challenges, which in the
current financial environment need urgent attention. I will be
working with the GNER team to address these."

                    About Sea Containers

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

                        *    *    *

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

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

As reported in the Troubled Company Reporter on May 4, 2006,
Standard & Poor's Ratings Services lowered its ratings on Sea
Containers, including lowering the corporate credit rating to
'CCC-' from 'CCC+'.  All ratings remain on CreditWatch with
negative implications.

The rating action followed the company's announcement that it is
continuing to evaluate a range of strategic and financial
alternatives, including the "appropriate level of debt capacity,
with the intent to engage the public note holders and other
stakeholders."




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


PETROLEO BRASILEIRO: Bolivian Gov't Alleges Gas Meter Tampering
---------------------------------------------------------------
The Bolivian government conducted investigations on Petroleos
Brasileiro aka Petrobras -- the state oil firm of Brazil -- and
Spanish-Argentine firm Repsol YPF on suspicions of tampering
with natural gas meters at local fields, Dow Jones Newswires
reports.

Agencia Boliviana de Informacion -- the official government news
agency in Bolivia -- said on Monday that irregularities were
detected after a surprise inspection at the Maragarita gas field
administered by Repsol-YPF, and at the San Antonio gas field
that Petrobras operates.

Wilbor Morales, an engineer working at the Bolivian Hydrocarbons
Ministry, told ABI, "The gas meters are not working.  There are
irregularities."

The Bolivian government then announced that it will audit the
fields, Dow Jones relates.

Dow Jones states that a spokesperson of Petrobras denied the
accusations, saying that the company uses high-tech equipment
with a high level of accuracy.

Still the government went ahead with the investigation amid
difficult negotiations between Brazil and Bolivia on natural gas
prices, according to Dow Jones.

Jose Sergio Gabrielli, the head of Petrobras, told Dow Jones
that he was "extremely surprised" to hear Bolivia's accusation
and said that his company could not accept it.  

The gas meters Petrobras uses are among the most modern
available and are closely monitored by Yacimientos Petroliferos
Fiscales Bolivianos, Bolivia's very own state oil company, Dow
Jones states, citing Mr. Gabrielli.

"It's incoherent to say that there are problems with flows,
because the gas that arrives and is measured in Brazil is
compatible with measurements taken elsewhere," Mr. Gabrielli
told Dow Jones.

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.


* BOLIVIA: Spots Irregularities on Gas Meters of Two Companies
--------------------------------------------------------------
Agencia Boliviana de Informacion -- the official government news
agency in Bolivia -- reported that irregularities were detected
after a surprise inspection at Repsol YPF's Maragarita gas
field, and at Petroleo Brasileiro's San Antonio gas field.

Wilbor Morales, an engineer working at the Bolivian Hydrocarbons
Ministry, told ABI, "The gas meters are not working.  There are
irregularities."

Dow Jones relates that the Bolivian government then announced
that it will audit the fields.

The Bolivian government would conduct investigations on both
Repsol YPF and Petroleo Brasileiro to find out whether there was
any tampering with natural gas meters at the local fields, Dow
Jones states.

                        *    *    *

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
===========


BANCA SAFRA: S&P Says Change in Ownership Won't Affect Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
Banco Safra S.A. (BB/Stable/B) remain unchanged following the
announcement that Joseph Safra acquired all the bank's shares
previously belonging to his brother Moise Safra.  

The acquisition includes the participation in Banco Safra S.A.
in Brazil and its branch and subsidiary in Cayman Islands as
well as the interests in the financial services companies
located in the U.S., Luxembourg, France, the Bahamas, and
Uruguay.  All of these banks operate under the common Safra name
but are totally independent from Banco Safra S.A.

As usual, the transaction is subject to approval by the local
authorities. The participation by Joseph and Moise Safra in the
capital of Aracruz Papel e Celulose S.A. (a pulp processor in
Brazil; BBB-/Stable/--; national scale rating brAAA/Stable/--)
remains unchanged.

Standard & Poor's expects the change in the bank's shareholder
structure to bring more clarity to the bank's strategic
positioning, and add to its financial flexibility.


BANCO BRADESCO: Providing BRL5.5MM Insurance to Canadian Tour
-------------------------------------------------------------
Banco Bradesco SA's insurance unit, Bradesco Auto/RE, said in a
statement that it will provide BRL5.5 million in coverage for
the Brazilian tour by Canadian circus troupe Cirque du Soleil.

Business News Americas reports that Bradesco Auto/RE will
provide:

       -- civil responsibility coverage, which includes:

          * all installations, and
          * the troupe's 100 tons of equipment; and

       -- BRL500,000 for P&C coverage, including fire or theft.

According to BNamericas, Bradesco will assume 40% of the risk.  
Federal reinsurer IRB-Brasil Re will shoulder the rest.

AON Risk Services was the broker of the deal, BNamericas
relates.

Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco
-- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management.  Bradesco has branches throughout Brazil as
well as one in New York, two in the Bahamas, and four in the
Cayman Islands.  Bradesco offers Internet banking, insurance,
pension plans, annuities, credit card services (including
football-club affinity cards for the soccer-mad population), and
Internet access for customers.  The bank also provides personal
and commercial loans, along with leasing services.

                        *    *    *

Fitch Ratings upgraded on June 30, 2006, these ratings of Banco
Bradesco S.A., in the wake of the upgrade of the country's
foreign and local currency Issuer Default Ratings to 'BB':

   -- Foreign currency long-term IDR: to BB from BB-;
   -- Local currency long-term IDR: to BBB- from BB+; and
   -- National long-term rating: to 'AA+(bra)' from 'AA(bra)'.

Fitch said the long-term Outlook is Stable.


FIDELITY NATIONAL: Reports US$1.02 Bil. Revenues in 2nd Quarter
---------------------------------------------------------------
Fidelity National Information Services, Inc., disclosed
financial results for the second quarter of 2006.  Consolidated
revenue increased to US$1.02 billion, Net earnings increased to
US$66.0 million and Net earnings per diluted share was US$0.34.  
These results reflect the combination between FIS and Certegy
Inc. as of February 1, 2006, the effective date of the merger,
in accordance with Generally Accepted Accounting Principles.
    
"FIS generated another quarter of solid operating performance.  
Year-to-date pro forma revenue growth of 6.2% and EBITDA growth
of 10.4% are in line with our original full year expectations,"
stated FIS Chairman William P. Foley, II.  "With strong sales
growth in the first half of the year and the recent launch of
our new item processing and BPO operation in Brazil, we are
increasing our full year outlook to reflect pro forma revenue
growth of 5% to 7% percent, EBITDA growth of 10% to 12% and cash
earnings per diluted share of US$2.06 to US$2.12."
    
FIS' expected cash earnings per diluted share now includes costs
associated with the newly established credit card processing
joint venture in Brazil, which the company announced in
March 2006.  These expenses were previously excluded from the
company's guidance.
    
FIS' operating results are presented on a GAAP and on an
adjusted pro forma basis, which management believes provides
more meaningful comparisons between the periods presented.  FIS'
pro forma results reflect a January 1, 2005, effective date for
the merger between FIS and Certegy, the March 2005
recapitalization and the sale of minority interests by FIS.  
Additionally, the adjusted pro forma results exclude merger and
acquisition and integration expenses.

The prior year second quarter included contract termination
revenue of approximately US$22.0 million associated with the
acquisition of Riggs Bank by PNC.  Excluding this revenue from
prior year results, pro forma consolidated revenue in the second
quarter of 2006 increased 6.1% and adjusted pro forma EBITDA
increased 16.9%.
    
FIS presents its financial results in accordance with GAAP.
However, in order to provide the investment community with a
broader means of evaluating the operating performance of its
operations, FIS also reports several non-GAAP measures,
including earnings before interest, taxes, depreciation and
amortization, net earnings plus depreciation and amortization
less capital expenditures and net earnings plus other intangible
amortization, net of income tax.  Any non-GAAP measures should
be considered in context with the GAAP financial presentation
and should not be considered in isolation or as a substitute for
GAAP net earnings.

                  Pro Forma Segment Information
    
FIS' Transaction Processing Services generated revenue of
US$612.1 million, or 2.6% over the prior-year period, driven by
11.2% growth in International and 6.5% growth in Integrated
Financial Solutions.  EBITDA increased 0.7% to US$147.5 million.  
Excluding the previously mentioned contract termination revenue
from the prior year quarter, Transaction Processing Services
revenue increased 6.4% and EBITDA increased 17.3%.
    
Lender Processing Services revenue increased 5.1% to US$408.1
million, driven by a 6.2% increase in the number of mortgage
loans processed, strong results within the Default Solutions
product line and deeper penetration within the existing customer
base.  EBITDA increased 1.4% to US$141.4 million.
   
Pro forma corporate expense for the second quarter of 2006
totaled US$24.6 million.  The US$11.5 million, or 31.9%, decline
from the prior-year quarter was primarily attributable to the
consolidation of duplicate administrative functions.  Pro forma
interest expense for the quarter increased US$9.4 million to
US$49.0 million, due primarily to higher interest rates.
    
                           Outlook

Management increased its pro forma earnings outlook for full
year 2006.  This guidance excludes pre-tax merger and
acquisition and integration costs and pre-tax expense associated
with the accelerated vesting of performance based options in the
first quarter of 2006.  The guidance now includes expenses
associated with the newly established credit card processing
joint venture in Brazil, which was announced in March 2006.
These expenses were previously excluded from the company's
guidance.

   -- Pro forma revenue growth of 5% to 7%.

   -- Pro forma EBITDA growth of 10% to 12%.

   -- Pro forma cash earnings per share of US$2.06 to US$2.12,
      which includes after-tax purchase amortization of
      approximately US$111 million, or US$0.57 per diluted
      share.

   -- Pro forma earnings per diluted share of US$1.49 to
      US$1.55.

   -- Capital expenditures of approximately US$300 million,
      including anticipated investments in the Brazilian credit
      card processing joint venture and the newly launched item  
      processing and BPO operation.

   -- Free cash flow of approximately US$440 million to
      US$490 million, which includes the incremental capital
      investments in Brazil.
    

            Fidelity National Information Services, Inc.
                  and Subsidiaries and Affiliates

    Unaudited Consolidated and Combined Results for the Three
          and Six Months Ending June 30, 2006, And 2005
                        (In US$ thousands)


                 Three months ended       Six months ended
                       June 30,                June 30,
                   2006       2005        2006        2005

Processing and
Services
revenues        $1,021,946  $708,713  $1,922,882  $1,360,293

Cost of revenues    719,718   453,504   1,342,055     883,579
Selling, general,
And administrative
expenses           125,866   109,318     271,595     219,874
Research and
Development costs   23,646    28,303      51,706      52,239

Operating income    152,716   117,588     257,526     204,601

Other income (expense)
Interest income      1,533       274       3,424       3,036
Realized gains and
losses                 866        85      (1,244)     (3,212)
Interest expense    (49,033)  (36,388)    (92,301)    (49,809)
Total other income
(expense)          (46,634)  (36,029)    (90,121)    (49,985)

Earnings before income
taxes, equity
earnings and
minority interest   106,082    81,559     167,405     154,616
Income tax expense    40,629    31,380      64,116      59,434
Equity in earnings of
unconsolidated
entities              (259)   (1,006)     (2,092)     (2,244)
Minority interest      (317)    2,609          (6)      4,254

Net earnings        $66,029   $48,576    $105,387     $93,172

Net earnings per
share- basic         $0.34     $0.38       $0.58       $0.73
Weighted average
Shares outstanding-
basic              192,224   127,920     181,168     127,920
Net earnings per
share-diluted        $0.34     $0.38       $0.57       $0.73
Weighted average
Shares outstanding-
diluted            195,374   127,920     184,242     127,920


        Financial Measures Excluding Selected Items - 2006

     EBITDA                                         $263,090
     M&A and Integration costs                         6,978
     EBITDA, excluding selected items               $270,068

     Net Earnings                                    $66,029
     M&A and Integration Costs, net of tax             4,305
     Net Earnings, excluding selected items          $70,334

     Net Earnings per diluted share                    $0.34
     M&A and Integration Costs per share                0.03
     Net Earnings per diluted share,
      excluding selected items                         $0.37

     Net Earnings, excluding selected items          $70,334
     + Tax Adjusted Purchase Price Amortization       28,597
     Cash Earnings, excluding selected items         $98,931

    Net Earnings per diluted share,
     excluding selected items                          $0.37
     + Tax Adjusted Purchase Price Amortization
       per share                                        0.14
       Cash Earnings per diluted share,
       excluding selected items                        $0.51

    Net Earnings, excluding selected items           $70,334
     + Depreciation/Amort                           $110,374
     - Capital Expenditures                          (80,156)
    Free Cash Flow, excluding selected items        $100,552


           Pro Forma Measures Excluding Selected Items

    Pro Forma EBITDA                                   $401,776
     M&A and Integration Costs                           88,729
     Performance Based Stock Option Costs                24,130
    Pro Forma EBITDA, excluding selected items         $514,635


    Pro Forma Net Earnings                               59,156
     M&A and Integration Costs, net of tax               54,914
     Performance Based Stock Option Costs, net of tax    14,888
    Pro Forma Net Earnings, excluding selected items   $128,958

    Weighted Average Shares                             184,242
    Adjustment as if transaction took place 1/1/2005     11,002
    Pro Forma Weighted Average Shares                   195,244

    Pro Forma Net Earnings per diluted share             $ 0.30
     M&A and Integration Costs per share                   0.28
     Performance Based Stock Option Costs per share        0.08
    Pro Forma Net Earnings per diluted share,
     excluding selected items                            $ 0.66

     Net Earnings, excluding selected items             128,958
     + Tax Adjusted Purchase Price Amortization          56,874
    Cash Earnings, excluding selected items             185,832

    Net Earnings per diluted share, excluding
     selected items                                        0.66
     + Tax Adjusted Purchase Price Amortization
       -per share                                          0.29
    Cash Earnings per diluted share, excluding
     selected items                                       $0.95

     Net Earnings, excluding selected items            $128,958
     + Depreciation/Amort                               218,299
     - Capital Expenditures                            (154,620)
    Free Cash Flow, excluding selected items           $192,637

                   About Fidelity National

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

                        *    *    *

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

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


PETROLEO BRASILEIRO: Gets Approval to Develop Mexilhao Gas Pole
--------------------------------------------------------------
Petroleo Brasileiro SA announced the approval of the Technical
and Economic Viability Study for the biggest natural gas
production project in the Santos Basin to date -- the
development of the Mexilhao gas pole.

The TEVS covers the basic project and the offshore gas
production and flow system hiring process, which will include a
platform.  The project, announced during the inauguration of the
company's first Exploration and Production Business Unit
administrative office in the State of Sao Paulo, foresees the
production of up to 15 million cubic meters of gas and of 20,000
barrels of condensed natural gas a day.

The Mexilhao Pole, considered strategic to supply the country
with natural gas, is one of the five production complexes slated
to be deployed in the Santos Basin.  It foresees the
installation of a megaplatform to be positioned between the
Mexilhao field and a gas treatment unit to be built in the
municipality of Caraguatatuba.  The project is budgeted at US$2
billion.  The company is already defining the gas treatment unit
construction agreements, which will be announced in due time.

Because of its geographical position, the production and
treatment complex that has been defined was sized to receive gas
produced in the Mexilhao field and, later, in other Santos Basin
areas.  In the future, four more production poles will be
developed in this basin, which begins in Cabo Frio, in the State
of Rio de Janeiro, and ends near Florianopolis, in Santa
Catarina.

The Mexilhao field is located in the Sao Paulo coast, about 160
kilometers offshore and at a depth (distance between sea surface
and bed) of 320 to 550 meters.

The fixed Mexilhao 1 (PMXL-1) platform, which will receive the
gas and condensate produced at the pole, will be a 230-meter
tall superstructure, twice the height of Petrobras' main office
building in Rio de Janeiro, a 26-story building.  It is expected
to go online in the first half of 2009, producing 8 to 9 million
cubic meters of gas a day.  After two or three years of
operation, the platform will reach its maximum capacity, i.e.,
15 million cubic meters a day.

Mexilhao 1 will be installed at a site where sea depth is 172
meters, at about 20 kilometers from the field.  Its production
will flow through a 34-inch wide, 146-kilometer long pipeline
that will connect it to the Caraguatatuba Gas Treatment Unit.

The treatment unit will be installed in modules.  Each module
will be capable of processing 7.5 million cubic meters of gas a
day.  In the future, this unit will also be sized to treat the
gas coming from other Santos Basin areas.  New modules will be
installed according to the needs that arise from the gradual
increase in production.  After being processed at the CGTU, the
gas will be transported to the municipality of Taubate, located
about 100 kilometers from Caraguatatuba, where the Campinas-Rio
gas pipeline, which is currently under construction, passes.

             Santos Basin: More Gas for Brazil

In the next 10 years, Petrobras and its partners expect to
invest some US$18 billion in exploration and production
development activities in the Santos Basin.  The Company hopes
to add 12 million cubic meters a day of gas produced in the
Santos Bay to its total production as early as the second half
of 2008.  By the end of 2010, this volume is likely to surge to
about 30 million cubic meters a day, contributing to a
significant reduction in the dependence on imported gas.  With
the BS Business Unit's exploration, Petrobras will create 1,200
direct and 10,000 indirect jobs, strengthening the Sao Paulo
state's industry.

The Santos Basin is located in Southeastern Brazil, under the
waters of the southern portion of the State of Rio de Janeiro,
cutting through the coast of Sao Paulo and Parana, and reaching
the northern portion of the Santa Catarina coast.  It covers an
area of nearly 352,000 square kilometers, 151,000 square
kilometers (43%) of which at depths of up to 400 meters, while
201,000 square meters (57%) between 400 and 3,000 meters.  
Petrobras and its partners hold 40,663 square kilometers of
exploratory concessions of this basin's 352,000 square
kilometers. About 52% of the area under concession is in the
State of Sao Paulo. The rest is in the states of Rio de Janeiro
(35%), Santa Catarina (7%), and Parana (6%).

                         Master Plan

The Santos Basin Natural Gas and Oil Production Development
Master Plan foresees five production poles in the area:

Merluza

Located in the State of Sao Paulo, about 200 km away from
Santos, the Merluza pole currently produces 1.2 million cubic
meters a day of gas and 1,600 barrels a day of condensate.  The
following new projects will be deployed there:

    * Enhancement of production at the Merluza-1 platform
      (Merluza and Lagosta fields and the SPS-25 well area),
      that will start producing 2.5 million cubic meters of gas
      a day in 2008;

    * Installation of the Merluza-2 platform, capable of
      producing 8 million cubic meters a day of gas and 25,000
      barrels per day of oil and condensate.

This pole has the potential to reach a daily production rate of
9 to 10 million cubic meters of gas by 2010.

Mexilhao

Also located in the State of Sao Paulo, some 140 km away from
the Sao Sebastiao terminal, this pole will be capable of
producing up to 15 million cubic meters a day of gas and 20,000
barrels per day of oil and condensate.  This pole's main
project, that includes the Mexilhao field and the Cedro area,
will produce 8 to 9 million cubic meters a day of gas as of the
second half of 2008.  The pole's total capacity is expected to
be reached early next decade when the new areas located around
and in horizons that are deeper than Mexilhao will go online.
Integrated to the Merluza Pole's enhancement projects and to the
Mexilhao Pole's development, Petrobras will install a Gas
Treatment Plant in Caraguatatuba.

BS-500

The development of this pole, located in the State of Rio de
Janeiro, about 160 km from the capital city, foresees the
installation of gas and oil production systems.  In the future,
it is expected to produce some 20 million cubic meters of gas
and 150,000 to 200,000 bpd of oil.

Sul

This pole is located about 200 km from the coast of the states
of Sao Paulo, Parana and Santa Catarina.  The Coral platform,
located in Parana, already produces about 9,000 bpd of oil
there.  The Cavalo-Marinho field is expected to go online in
this pole as well in 2008. Located in Santa Catarina, its
production is estimated to be similar to Coral's.  The Santos
Basin Master Plan foresees the deployment of new projects for
the Southern Pole, estimating a future production of about
140,000 bpd of oil and 3 million cubic meters a day of gas.

Centro

This pole, located approximately 250 km from the coasts of the
states of Sao Paulo and Rio de Janeiro, is still in the
exploratory stage. Petrobras believes this area, also known as
the Santos Basin's cluster, has great production potential.  If
the expectations regarding this area are confirmed, one of the
possibilities to increase local production will be to send gas
to the Mexilhao platform and transfer it to the Caraguatatuba
plant for treatment.  Santos Basin's production will greatly
contribute to consolidate the Brazilian natural gas market and
to the country's oil supply self-sufficiency.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras was founded in 1953.  The company explores,
produces, refines, transports, markets, and 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: Unit Declares Cash Tender Offer Results
------------------------------------------------------------
Petroleo Brasileiro S.A. reports that its wholly owned
subsidiary Petrobras International Finance Company announced
Tuesday the results of its cash tender offers for five series of
notes.  The offers expired at 5:00 p.m., New York time, on
Monday, July 24, 2006.

PIFCo has been advised by the depositary that, as of the
expiration date of the offers, of the US$2,950.00 million in
aggregate principal amount of notes outstanding for the five
series, US$888.26 million had been validly tendered and not
validly withdrawn pursuant to the offers, excluding the amount
held by Petrobras and its affiliates.  PIFCo has accepted for
purchase all the notes.

Petrobras and its affiliates tendered notes with an aggregate
principal amount of US$327.40 million, leading to a total of
US$1,215.66 million of notes accepted for purchase by PIFCo in
the tender offers.

The purchase price for each US$1,000 principal amount of notes
validly tendered and not validly withdrawn pursuant to each
offer is listed in the table below for each series.  This
amount, plus accrued and unpaid interest from the last interest
payment date to, but excluding, the settlement date, will be
paid by PIFCo on the settlement date, which will be July 27,
2006.

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

                        *    *    *

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

                        *    *    *

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

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

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


VARIG S.A.: Brazilian Agency Vetoes Flight Suspensions
------------------------------------------------------
VARIG, S.A., has said it will suspend all its flights except
those between Rio de Janeiro and Sao Paulo, in Brazil, until
Friday, July 28, 2006.

The reduction in flights was part of a strategy to "rapidly
resume growth and increase profitability," the Associated Press
reports citing VARIG's statement on its Web site.

On July 21, 2006, Brazil's Civil Aeronautics Agency vetoed the
flight suspensions and ordered the airline to fly all its
assigned routes, the AP reports.  VARIG is assigned five
national routes and five international routes.

VARIG initially planned to operate with just 13 planes.  Within
six months, the airline intended to increase the fleet to 80.

                         About VARIG

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

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

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts. (VARIG Bankruptcy News, Issue No. 28; Bankruptcy
Creditors' Service, Inc., 215/945-7000)




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


AHFP HALCYON: Final Shareholders Meeting Is Set for Aug. 24
-----------------------------------------------------------
AHFP Halcyon's shareholders will convene for a final meeting on
Aug. 24, 2006, at:

           Maples Finance Limited
           Queensgate House, George Town
           Grand Cayman, Cayman Islands,

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

The liquidators can be reached at:

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


AHFP LEGEND: Shareholders Gather for a Final Meeting on Aug. 24
---------------------------------------------------------------
AHFP Legend's shareholders will convene for a final meeting on
Aug. 24, 2006, at:

           Maples Finance Limited
           Queensgate House, George Town
           Grand Cayman, Cayman Islands,

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

The liquidators can be reached at:

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


C-BASS ABS: Liquidator To Presents Wind Up Accounts on Aug. 24
--------------------------------------------------------------
C-Bass ABS I's liquidator will present an accounts of the
company's liquidation proceeding during the shareholders' final
meeting on August 24, 2006, at:

           Maples Finance Limited
           Queensgate House, George Town
           Grand Cayman, Cayman Islands,

The liquidators can be reached at:

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


PEYPER INVESTMENTS: Final Shareholders Meeting Is on Aug. 14
------------------------------------------------------------
Peyper Investments Ltd.'s final shareholders meeting will be at
9:00 a.m. on Aug. 14, 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 liquidator can be reached at:

           C.I. Directors Ltd.
           P.O. Box 1110, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949-7212
           Fax: (345) 949-0993


SANWA CAPITAL: Shareholders Gather for Final Meeting on Sept. 7
---------------------------------------------------------------
Sanwa Capital Finance 1 Limited's shareholders will convene for
a final meeting on Sept. 7, 2006, at:

           Maples Finance Limited
           Queensgate House, George Town
           Grand Cayman, Cayman Islands,

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

The liquidators can be reached at:

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


SANWA (FINANCE): Last Shareholders Meeting Is Set for Sept. 7
-------------------------------------------------------------
Sanwa Cayman Finance Limited's shareholders will convene for a
final meeting on Sept. 7, 2006, at:

           Maples Finance Limited
           Queensgate House, George Town
           Grand Cayman, Cayman Islands,

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

The liquidators can be reached at:

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


SANWA (INT'L): Will Hold Final Shareholders Meeting on Sept. 7
--------------------------------------------------------------
Sanwa Cayman International Investment Limited's shareholders
will convene for a final meeting on Sept. 7, 2006, at:

           Maples Finance Limited
           Queensgate House, George Town
           Grand Cayman, Cayman Islands,

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

The liquidators can be reached at:

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


SANWA (INVESTMENT): Last Shareholders Meeting Is Set for Sept. 7
----------------------------------------------------------------
Sanwa Cayman Investment Limited's shareholders will convene for
a final meeting on Sept. 7, 2006, at:

           Maples Finance Limited
           Queensgate House, George Town
           Grand Cayman, Cayman Islands,

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

The liquidators can be reached at:

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


SANWA (MONETARY): Last Shareholders Meeting Is Set for Sept. 7
--------------------------------------------------------------
Sanwa Cayman Monetary Fund Limited's shareholders will convene
for a final meeting on Sept. 7, 2006, at:

           Maples Finance Limited
           Queensgate House, George Town
           Grand Cayman, Cayman Islands,

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

The liquidators can be reached at:

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


SANWA (SECURITIES): Last Shareholders Meeting Is Set for Sept. 7
----------------------------------------------------------------
Sanwa Cayman Securities Investment Limited's shareholders will
convene for a final meeting on Sept. 7, 2006, at:

           Maples Finance Limited
           Queensgate House, George Town
           Grand Cayman, Cayman Islands,

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

The liquidators can be reached at:

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


SANWA (TREASURY): Final Shareholders Meeting Is Set for Sept. 7
---------------------------------------------------------------
Sanwa Cayman Treasury Fund Limited's shareholders will convene
for a final meeting on Sept. 7, 2006, at:

           Maples Finance Limited
           Queensgate House, George Town
           Grand Cayman, Cayman Islands,

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

The liquidators can be reached at:

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

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


IRON MOUNTAIN: Moody's Rates US$200 Million Senior Notes at B3
--------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to the recent
issue of US$200 million senior subordinated notes due 2018 of
Iron Mountain Incorporated.  In addition, Moody's upgraded the
existing US-based senior secured credit facilities to Ba3 from
B2 and the existing senior subordinated notes to B3 from Caa1.

Concurrently, Moody's affirmed the B2 Corporate Family Rating.
The outlook for the ratings is stable.  The new US$200 million
8.75% senior subordinated notes due 2018 offering was completed
on July 17, 2006, and will be used in part to pay down debt
associated with the company's recent offer to repurchase its
8.25% senior subordinated notes due 2018, retire revolver debt
and for other corporate purposes.

The B2 Corporate Family Rating is supported by the company's
prominent position as a global leader in information storage and
data protection, including its strategic expansion in the
digital market in recent years.  Despite meaningful improvement
over the past two years, the Corporate Family Rating of B2
continues to reflect high financial leverage, the significant
amount of goodwill and intangibles to total assets and the
relatively low level of pro forma free cash flow relative to
debt.

Sustained improvements in free cash flow generation after growth
capital expenditures that bring free cash flow to debt closer to
5% could lead to an upgrade, as could reductions in debt to
EBITDA below five times.  Material increases in financial
leverage from acquisitions or margin deterioration could put
negative pressure on the company's ratings.  In addition, if
free cash flow to debt is anticipated to turn negative for any
period of time, the ratings could be downgraded.

Moody's took these rating actions:

   * Assigned a B3 rating to the US$200 million issue of 8.75%
     guaranteed senior subordinated notes due 2018;

   * Upgraded to Ba3 from B2 the US$400 million guaranteed
     senior secured revolving credit facility of Iron Mountain
     Incorporated due 2009;

   * Upgraded to Ba3 from B2 the US$350 million guaranteed
     senior secured Term Loan B of Iron Mountain Incorporated
     due 2011;

   * Upgraded to B3 from Caa1 the US$150 million principal
     amount of 8.25% guaranteed senior subordinated notes due
     2011;

   * Upgraded to B3 from Caa1 the US$481 million principal
     amount of 8.625% guaranteed senior subordinated notes due
     2013;

   * Upgraded to B3 from Caa1 the US$439 million principal
     amount of 7.75% guaranteed senior subordinated notes due
     2015;

   * Upgraded to B3 from Caa1 the US$315 million principal
     amount of 6.625% guaranteed senior subordinated notes due
     2016;

   * Upgraded to B3 from Caa1 the US$261 million issue of 7.25%  
     GBP guaranteed senior subordinated notes due 2014;

   * Upgraded to (P)Ba3 from (P) B2 secured drawings under the
     existing shelf;

   * Upgraded to (P)B2 from (P) B3 senior unsecured drawings
     under the existing shelf;

   * Upgraded to (P)B3 from (P)Caa1 subordinated draws under the
     existing shelf;

   * Upgraded to (P)Caa1 from (P) Caa2 preferred stock draws
     under the existing shelf;

   * Upgraded to (P)B3 from (P) Caa2 trust preferred stock shelf
     issuances by IM Capital Trust;

   * Affirmed the B2 Corporate Family Rating;

   * Affirmed the Speculative Grade Liquidity rating of SGL-3.

The outlook for the ratings is stable.

Headquartered in Boston, Massachusetts, Iron Mountain
Incorporated is an international provider of information storage
and protection related services.  The company offers
comprehensive records management and data protection solutions,
along with the expertise to address complex information
challenges such as rising storage costs, litigation, regulatory
compliance and disaster recovery.  Founded in 1951, Iron
Mountain has more than 90,000 corporate clients throughout North
America, Europe, Latin America, and Asia Pacific.  Net revenue
for twelve months ended March 31, 2006 was approximately US$2.1
billion.  Its Latin American operations are located in
Argentina, Brazil, Chile, Mexico and Peru.




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


ECOPETROL SA: Gov't May Sell 20% Stake to Attract Investment
------------------------------------------------------------
Media reports say that the government of Colombia may sell 20%
of Ecopetrol SA, the country's national oil firm, to attract
investment and increase oil production.

However, Ecopetrol's 2006 action plan, which was presented early
this month to the country's congress, did not include a sale of
a 20% share in the company, Business News Americas relates.  
Also, Ecopetrol's production has recovered after experiencing
years of decline.

BNamericas states that Ecopetrol reported that in May,
Colombia's oil production had averaged 538,709 barrels per day,
which was the highest in almost three years.

In recent years, Ecopetrol sought partners for several mature
fields, which helped the company's output improve, BNamericas
says.

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

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


* COLOMBIA: Amends Import Standards for Venezuelan Liquid Fuel
--------------------------------------------------------------
The government of Colombia has ratified a bill modifying import
standards for liquid fuel from Venezuela, SNE -- the country's
state news service -- reports.

The decree is aimed at ensuring the amount of imported fuel
corresponds to real demand in border regions to prevent any
surplus being sold in other parts of Colombia, SNE relates.

According to Business News Americas, the decree states that
import volumes of liquid fuels for distribution in Arauca,
Guainia, Vichada and Norte de Santander departments cannot go
beyond the maximum amounts UPME -- the government mining energy
planning unit -- set.  

BNamericas states that the decree also authorizes the
municipality of Arauca -- which is in the department of Arauca
-- to be the site where Venezuelan fuel imports can be
collected.

The Arauquita municipality used to be the authorized location
for the collection of Venezuelan fuel.  However, existing land
and water transport infrastructure did not allow authorities to
control fuel deliveries efficiently, BNamericas reports.

                        *    *    *

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

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

Fitch said the Rating Outlook is Stable.


* COLOMBIA: Niscota Block Qualifiers to be Disclosed on August 3
----------------------------------------------------------------
Agencia Nacional de Hidrocarburos, the hydrocarbons regulator of
Colombia, told Business News Americas that it will publish on
Aug. 3, a list of qualifiers for the US$50-million Niscota
hydrocarbons block work initiative.

The Niscota block is in the Piedemonte area in the Casanare
department.  It is deemed that potential reserves in the area
could reach up to 500 million barrels, BNamericas states.

Entities that expressed interest in the work program and that
have submitted documents include:

      -- UK major BP,
      -- Colombia's state oil company Ecopetrol,
      -- Colombian oil firm Hocol,
      -- Russia's Lukoil,
      -- Spanish major Repsol YPF,
      -- UK oil company Perenco,
      -- Argentina's Pluspetrol,
      -- Canadian firm Talisman Energy, and
      -- Tempa.

The latest published timetable indicates that ANH will open a
data room, along with access to 3D seismic information from
Aug. 23, to Sept. 5.

On Sept. 12, ANH will receive and open bids.  Contract signing
will follow on Sept. 18, BNamericas relates.

                       *    *    *

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

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

Fitch said the Rating Outlook is Stable.


* COLOMBIA: Two Bids Qualify for Airport Concession
---------------------------------------------------
The government of Colombia will decide on two qualifying bids
for a concession to upgrade and operate the Bogota airport El
Dorado, Aerocivil -- the airport authority -- told Dow Jones
Newswires.

The report says that five groups of firms presented bids in July
for the 20-year concession.

According to Dow Jones, the accepted proposals were from:

     -- a consortium formed by Swiss-based airport operator
        Flughafen Zuerich AG and the Colombian engineering
        company Organizacion de Ingenieria Internacional SA, and

     -- Colombian retailer Supertiendas y Droguerias Olimpica
        SA, the construction firm MNV SA and other top Colombian
        investors from the coastal city of Barranquilla.

Two other consortiums were told to resubmit their bids, Dow
Jones states, citing Aerocivil.  These were:

     -- consortium of German conglomerate Siemens AG and
        Colombia's Constructora Colpatria, and

     -- a Chinese company that runs the Beijing airport and top
        local construction companies.

Dow Jones reports that a proposal from Argentina-based
Corporacion America SA and local investors was not accepted, as
it didn't pass technical requirements.

Fernando Sanclemente, the director of Aerocivil, told Dow Jones
that the government will award the concession by Aug. 31.

Dow Jones underscores that Mr. Sanclemente said that the winner
in the bidding must invest up to US$600 million to increase the
airport's passenger capacity as well as its capacity for freight
in the first five years of the concession.  Once these upgrades
are done, the airport should be able to receive 16 million
passengers yearly and 2 million metric tons of freight.

Mr. Sanclemente told Dow Jones that from the Bogota airport, the
government currently receives COP169 billion, about 44% of the
revenue from all the country's airports the government still
manages.

                       *    *    *

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

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

Fitch said the Rating Outlook is Stable.




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


* COSTA RICA: State Firm Seeks Regular Gasoline Price Increase
--------------------------------------------------------------
Refinadora Costarricense de Petroleo aka Recope, Costa Rica's
state monopoly on gasoline refinery and distribution, is
requesting a price hike in regular gasoline, Inside Costa Rica
reports.

According to the report, Recope wants to increase the regular
gasoline's price by CRC0.19 per liter.  The price of the
gasoline would then be raised to CRC0.569 from CRC0.550.

Inside Costa Rica relates that Recope disclosed last Friday that
it has requested the Autoridad Reguladora de los Servicios
Publicos -- the state agency that regulates prices of public
services -- a CRC0.17 increase in the price of super gasoline.  
The price of super gasoline would then increase to CRC0.592 from
CRC0.575.

The price increases could be approved this week, which would
mean that implementation could be as early as this weekend,
Inside Costa Rica states.

                        *    *    *

Costa Rica is rated by Moody's:

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

Fitch assigned these ratings to Costa Rica:

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

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

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




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


FALCONBRIDGE: Xstrata Receives Investment Canada Act Approval
-------------------------------------------------------------
Xstrata plc received notice from the Minister of Industry that
Its acquisition of control of Falconbridge Limited has been
approved by the Minister under the Investment Canada Act.

Xstrata's all cash offer to the shareholders of Falconbridge
Limited is therefore not subject to any further regulatory
review.

Commenting, Xstrata CEO Mick Davis said, "I am pleased that
Xstrata has been able to demonstrate the benefits to Canada of
our successful acquisition of Falconbridge.

"Today's announcement effectively removes the last remaining
regulatory hurdle to our acquisition of Falconbridge. Given the
overwhelming support of Xstrata's shareholders for this
acquisition at the first shareholders' meeting, on-going
positive feedback from our shareholders and the undertakings
already received to vote in favour of the transaction at the
next meeting, I have no doubt that the resolution will be passed
at the Xstrata general meeting on 14 August enabling us to take
up and pay for any shares tendered to Xstrata's offer.

"The outcome of this transaction therefore lies -- as it should
-- in the hands of the Falconbridge shareholders themselves.  
Set against the continuing significant market and commodity risk
inherent in the Inco offer, particularly given Inco's
significantly higher leverage post transaction, and the high
degree of uncertainty around the completion of Phelps Dodge
offer, Xstrata's all cash offer provides clear and certain value
for Falconbridge shareholders and an opportunity to bring this
prolonged process to a close, to the benefit of all Falconbridge
stakeholders. I therefore urge all Falconbridge shareholders who
wish to receive the full cash value of CDN$62.50 per share to
tender their shares to Xstrata as soon as possible and not to
tender to the Inco offer.

"Following approval by Xstrata shareholders on 14 August 2006,
Xstrata will immediately take up and pay CDN$62.50 in cash for
all shares tendered under our offer.  We anticipate that all
tendering shareholders will receive their all cash consideration
within three business days from August 14, at least one full
month in advance of the earliest possible payment under the
proposed Phelps Dodge paper and cash deal for which a closing
date has not even been set."

To demonstrate net benefit to Canada in order to obtain the
approval under the Investment Canada Act, Xstrata has provided
to the Minister several important commitments in respect of
Falconbridge's operations and employees in Canada.  Given the
uncertainties that Falconbridge employees have faced through
this contested transaction, Xstrata wishes to confirm a number
of key commitments provided to the Minister:

    i) Establishment of New Global Business: Xstrata Nickel

    Xstrata has committed to establishing a new standalone
    global nickel business, Xstrata Nickel, with its head office
    in Toronto and with responsibility for all of Xstrata's
    worldwide nickel operations now and in the future.  The CEO
    of Xstrata Nickel, as well as a majority of the members of
    its operating board and senior management, will be Canadian.  
    The CEO of Xstrata Nickel will also serve on Xstrata's
    Executive Committee, which is the primary governance body
    responsible for Xstrata's worldwide operations.  Xstrata
    Nickel will oversee Falconbridge's existing nickel
    operations and all future growth in nickel worldwide for the
    Xstrata Group.  Xstrata Nickel will be tasked with the
    mandate of expanding its position as a global leader in its
    industry, with Xstrata's greater access to capital enhancing
    its ability to grow, both organically and through
    acquisitions.

    ii) Expanded Technology and Research & Development

    Canada will benefit from having a prominent and increased
    role with respect to technology and research and development
    in the mining industry.  Xstrata has committed to
    establishing in Toronto a Canadian Division of Xstrata
    Technology, which will be responsible not only for marketing
    Falconbridge's existing commercial technologies worldwide,
    but also for marketing Xstrata's existing highly successful
    proprietary technologies throughout the Americas.
    Xstrata has further committed to establishing a new
    technology research and development unit, the Process
    Technology Development Group, in Sudbury.  This Group will
    oversee Xstrata's existing hydrometallurgical know-how and
    facilities in Australia as well as Falconbridge's existing
    research and development activities.  In addition, Xstrata
    has made significant commitments with respect to increased
    research and development expenditures in Canada over the
    next three years.

    iii) Canada-Based Copper and Zinc Regional Head Offices

    Xstrata has committed to establishing regional head offices
    in Toronto to manage Falconbridge's Canadian copper and zinc
    operations, which will also benefit in other important
    respects from being part of the Enlarged Group.  The Chief
    Operating Officers in charge of each of these two head
    offices, as well as a majority of their senior management,
    will be Canadian.  The head office for the Canadian copper
    operations will also oversee the global headquarters for
    Xstrata's copper recycling operations, which itself will be
    established in Canada. Among other benefits to the Canadian
    copper and zinc operations, Canadian copper smelters will
    have increased security of copper concentrate supply due to
    the substantially improved copper concentrate position
    resulting from the combination of Xstrata's existing strong
    copper concentrate position with Falconbridge's copper
    assets.

    iv) Commitment to Employment

    Xstrata is confident that its acquisition of Falconbridge
    will have a positive impact on long-term employment
    stability and growth as a result of improved diversification
    by commodities, countries and currencies, as well as
    improved access to capital.  Xstrata has committed not to
    make any lay-offs of operating staff at any of
    Falconbridge's operating facilities in Canada for a three-
    year period.  Any potential lay-offs in Canada over that
    period will be confined to head office, administrative and
    non-Canadian exploration positions.  More generally,
    Canadian employees (both management and non-management) will
    benefit from increased training and employment opportunities
    that result from being exposed to Xstrata's global
    management skills, training and development programmes and
    international best practices.  Xstrata's track record in
    other countries has demonstrated the very real benefits to
    employees in terms of overall employment growth and
    increased opportunities that result from being part of the
    Enlarged Group.
    
    v) Improved Exploration and Capital Expenditure in Canada

    Xstrata has made substantial commitments with respect to
    improve capital expenditures in Canada over the next three
    years consistent with the Enlarged Group's excellent access
    to capital and Xstrata's long-term growth philosophy and
    commitment to Canada.  Xstrata has similarly provided
    significant commitments in respect of increased expenditures
    on exploration, including greenfield exploration, in Canada
    over that same period.

    vi) Canadian Non-Executive Director

    Given the importance to the Enlarged Group of its Canadian
    businesses, Xstrata has committed to a process to identify
    for consideration by the Nominations Committee of Xstrata
    plc an appropriate Canadian candidate to be put forward to
    shareholders as a non executive director of Xstrata.    

    vii) Commitment to Communities

    Xstrata has an established practice of setting aside 1% of
    its Annual pre-tax profits to support communities in which
    it operates.  Consistent with that philosophy, Xstrata has
    committed that a set portion of the Group social involvement
    funding will be spent on community and social initiatives in
    Canada, with a particular focus on supporting aboriginal
    communities.

Falconbridge Shareholders with questions please contact:

    Kingsdale Shareholder Services Inc.
    North American Toll Free: 1-866-639-7993
    Outside North America, Banks and
    Brokers Call Collect: +1 (416) 867-2272
    Email: contactus@kingsdaleshareholder.com

                        About Xstrata

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

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

                     About Falconbridge

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

                        *    *    *

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


FREESTAR TECH: Files Amended Financial Statements
-------------------------------------------------
FreeStar Technology Corp. filed with the Securities and Exchange
Commission on July 21, 2006, its amended financial statements
for:

   -- the year ended June 30, 2005;
   -- the first quarter ended Sept. 30, 2005;
   -- the second quarter ended Dec. 31, 2005; and
   -- the third quarter ended March 31, 2006.

The Company's Statement of Operations showed:

                              For the period ended
                             (amounts in US dollars)
                   Year       Quarter     Quarter      Quarter
                 06/30/05     09/30/05    12/31/05     03/31/06
               -----------   ---------   ----------  -----------
Revenue         $1,602,819    $602,748     $577,946     $494,296

Net (Loss)    ($22,177,057)  ($903,068) ($1,809,758)($2,222,527)

The Company's Balance Sheet showed:

                               For the period ended
                             (amounts in US dollars)
                     Year      Quarter     Quarter     Quarter
                   06/30/05    09/30/05    12/31/05    03/31/06
                  ----------  ----------  ---------  -----------
Current Assets      $837,633  $2,122,001  $1,214,368  $4,888,796

Total Assets      $5,367,744  $6,531,584  $5,764,693  $9,464,211

Current
Liabilities       $6,555,125  $6,387,633  $1,941,927  $1,483,050

Total
Liabilities       $6,555,125  $6,387,633  $1,941,927  $1,483,050

Total
Stockholders'
Equity (Deficit) ($1,187,381)   $143,951  $3,822,766  $7,981,160

                      Reasons of Amendment

The Company filed these amended financials in response to
comments issued by the staff of the Division of Corp. Finance of
the US Securities and Exchange Commission.

The amended financials showed the cost of amortizing capitalized
computer software as a cost of revenue in its consolidated
statements of operations.  Those costs were previously
classified as selling, general and administrative expenses.

This change in presentation has no impact on previously reported
net loss, revenue, cash, total assets, cash flow or deficiency
in stockholders' equity.

Full-text copies of the company's financial statements are
available for free at:

   Year Ended
   June 30, 2005          http://ResearchArchives.com/t/s?e41

   First quarter ended
   Sept. 30, 2005         http://ResearchArchives.com/t/s?e42

   Second quarter ended
   Dec. 31, 2005          http://ResearchArchives.com/t/s?e43

   Third quarter ended
   March 31, 2006         http://ResearchArchives.com/t/s?e44

                     Going Concern Doubt

As reported in the Troubled Company Reporter on March 3, 2006,
Russell Bedford Stefanou Mirchandani LLP raised substantial
doubt about FreeStar Technology's ability to continue as a going
concern after it audited the company's financial statements for
the fiscal year ended June 30, 2005.  The auditors cited the
company's difficulty in generating sufficient cash flow to meet
its obligations and sustain operations.

                   About FreeStar Technology

FreeStar Technology Corp. -- http://www.freestartech.com/--  
is a payment processing company.  Its wholly owned subsidiary
Rahaxi Processing Oy., based in Helsinki, is a robust Northern
European BASE24 credit card processing platform.  Rahaxi
currently processes in excess of 1 million card payments per
month for those companies as Finnair, Ikea, and Stockman.  
FreeStar is focused on exploiting a first-to-market advantage
for its Enhanced Transactional Secure Software, which is a
software package that empowers consumers to consummate e-
commerce transactions with a high level of security using
credit, debit, ATM (with PIN), electronic cash or smart cards.  
The company, based in Dublin, maintains satellite offices in
Helsinki, Santo Domingo, Dominican Republic, and Geneva.


* DOMINICAN REPUBLIC: Experiences 12-Hour Power Outages
-------------------------------------------------------
The Dominican Republic is experiencing power outages of up to 12
hours long, Listin Diario reports.

The report states that four areas were affected:

    -- National District,
    -- Santo Domingo Province,
    -- El Cibao, and
    -- the southern region.

According to Listin Diario, there have been problems in the
Cibao transmission lines and Santo Domingo Province.  Some
cities were also experiencing an overload in the urban
transmission system.

The deficit was approximately 600 megawatts, the Superintendence
of Electricity told the DR1 Newsletter.

                        *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

   -- Short-term Issuer Default Rating: B.

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

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

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


* DOMINICAN REPUBLIC: Temistocles Montas Won't Take on More Debt
----------------------------------------------------------------
The Dominican Republic's technical minister told the DR1
Newsletter that the government of Temistocles Montas does not
want to take on more foreign debt.

DR1 relates that in recent times, the government had taken on
billions in loans with foreign commercial banks.  The loans were
guaranteed by foreign export agencies and had been taken on
without tenders, with the payment of high commissions and fees,
at costs higher than those in the market.

Recently, the country's congress had passed a US$132 million
debt with the guarantee of US Eximbank -- the US government
export agency -- and another for US$45 million for the Samana
aqueduct construction, with ABN Agrobank and a foreign export
bank, according to DR1.

President Montas told the elected legislators during a workshop
held in Bavaro last week that the country can't continue to take
on more foreign debt, DR1 states.

                        *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

   -- Short-term Issuer Default Rating: B.

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

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

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




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


* ECUADOR: Posts US$67.10 Mil. Oil Product Export Revenue in May
----------------------------------------------------------------
Ecuador's central bank told Dow Jones Newswires that the
country's oil product export revenue in May 2006 was US$67.10
million.

The amount was 93% higher than the US$34.82 million recorded in
May 2005, Dow Jones reports, citing the central bank.

According to Dow Jones, the central bank said that in terms of
volume, Ecuador's exports in May 2006 increased 50% to 1.42
million barrels, compared with May 2005, which was 948,000
barrels.

The oil products in May 2006 had an average price of US$47.34 a
barrel, increasing 29% from May 2005's US$36.73 a barrel, Dow
Jones states.

                        *    *    *

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




=====================
E L   S A L V A D O R
=====================


* EL SALVADOR: Government Mulls Cooperation Plan with Japan
-----------------------------------------------------------
The El Salvadorian government is considering a cooperation plan
with Japan, Business News Americas reports.

El Diario de Hoy relates that representatives from the
government met with the embassy officials of Japan to discuss
the latter's cooperation policy for the next months.

According to BNamericas, Japan contributes with water and health
projects in El Salvador, collaborating in:

   -- socioeconomic development,
   -- environmental care, and
   -- the consolidation of democracy.

The Japanese government has invested about US$850 million for
projects in El Salvador over the years.  In 2005, it granted
US$3.5 million for safety measures and community projects,
BNamericas states.

                        *    *    *

Fitch Ratings assigned these ratings on El Salvador:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     BB+      Jun. 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




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


BANCO INDUSTRIAL: Sets Up Share Exchange to Merge with Occidente
----------------------------------------------------------------
Luis Prado, the international banking director of Banco
Industrial SA, told Business News Americas that the bank has
arranged a share swap to merge with Banco de Occidente.

As reported in the Troubled Company Reporter-Latin America on
July 12, 2006, an official from Banguat, the central bank of
Guatemala, said that the bank granted approval on the merger, as
required by the Guatemalan law.  It would then need preliminary
approval from Superintendencia de Bancos de Guatemala, the
banking regulator.  Banguat said the monetary board had
authorized on March 9 Banco Industrial's acquisition of
Occidente's 2,151,114 shares or 72% for US$136 million.

According to BNamericas, Citigroup acted on behalf of Occidente
in the merger.

BNamericas reports that the merger will give Banco Industrial an
asset market share of 26%.

Mr. Prado told BNamericas that Ernst & Young was responsible
with carrying out valuations of Occidente and Banco Industrial
and its subsidiaries.  This is to address shareholder issues.

Edgar Giron, the corporate comptroller of Banco Industrial, told
BNamericas that after the valuations, shareholders will receive
-- in exchange for each Occidente share they hold -- two shares
in the new Banco Industrial and two shares in Blue Island II
Corporation, a financial group in the British Virgin Islands
that has interests in:

   -- Seguros El Roble,
   -- Fianzas El Roble,
   -- stockbrokerage Mercado de Transacciones,
   -- leasing company Servicios Multiples de Inversion, and
   -- warehouses Almacenadora Integrada and Almacenes Generales.

                        *    *    *

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

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




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


* HAITI: Will Get US$750-Million Aid to Restore Economy
-------------------------------------------------------
International organizations and other nations promised to donate
US$750 million to Haiti as aid for the country's recovery, the
Miami Herald reports.

According to the Miami Herald, the amount was US$250 million
above what Haiti asked.  

The Miami Herald relates that Haiti had requested for US$500
million over the next year and a total of US$7.1 billion over
five years, to finance eight priority projects, among them:

   -- road construction,
   -- strengthening the security,
   -- education, and
   -- health systems.

Jacques Edouard Alexis, the prime minister of Haiti, told the
Miami Herald, "We are happy for the support and commitment.  
This will allow us to erase the burden and errors of past
governments."

The initial funds would be used to develop projects that would
help create jobs, raise salaries and improve electricity,
potable water supplies and roads, the Miami Herald says, citing
Prime Minister Alexis.

Haiti's leaders remain welcome support for programs that would
allow Haiti to recover its international sovereignty on the path
to lasting development, the prime minister told the Miami
Herald.

The Miami Herald emphasizes that the international community
began supporting Haiti after years of frozen funds due to
political conflicts.  The European Commission blocked US$90
million in aid five years ago during the Jean-Bertrand Aristide
administration.  Former Haitian president Aristide was forced
out by a revolt in 2004.

Haiti's economic proposal was a work in progress that will be
reviewed yearly, the Miami Herald states, citing Albert Ramdin,
the assistant secretary general for the Organization of American
States.

The report states that Edmond Mulet, the United Nations'
representative in Haiti, promised continued support.  However,
he warned that if the security problems were not solved,
development would be hindered.  

The Miami Herald reports that since President Rene Preval's
election in February, the capital has experienced relative calm.  
However, killings and kidnappings have started again.

Mr. Mulet told the Miami Herald that to preserve stability,
Haiti must uphold the principles of good government and develop
strong alliance with the international community.

Other organizations that promised support to Haiti were:

   -- Inter-American Development Bank,
   -- US Agency for International Development,
   -- World Bank,
   -- Organization of American States, and
   -- Caribbean Community.

The Miami Herald underscores that Prime Minister Alexis said
that before Haiti can ask for outside help, it must do more at
home.  Referring to people who evade taxes or contribute to
rampant corruption and the smuggling of goods, he stated, "The
country considers you all as traitors.  My government will fight
mercilessly against corruption, smuggling and tax evasion."

                        *    *    *

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




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


* HONDURAS: Foreign Mine Ownership Law Incites Protest
------------------------------------------------------
Honduras' 1998 law on foreign mine ownership has sparked a
protest that closed parts of the Pan-American Highway, BBC News
reports.

The Pan-American Highway is the major route in Honduras.

BBC News relates that the Civic and Democratic Alliance
organized the protest on the law that allowed foreigners to own
up to 34% of the mines in Honduras.  Agricultural workers --
along with priests, environmentalists and students -- joined the
protest.

Monsignor Luis Alonso Santos, a bishop, told BBC News, "We do
not want foreign capital that destroys our territory.  We will
maintain our position until the mining law is abolished."

Honduras' President Manuel Zelaya told BBC News that the
protesters were ruining the image of the country.

                        *    *    *

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


* HONDURAS: Mulls Privatization of Water Utilities
--------------------------------------------------
Some mayors in Honduras have met with legislators and community
representatives to discuss the benefits of the privatization of
potable water and sewerage services, Business News Americas
reports.

According to the report, the officials believe that
privatization would improve services like increased access to
potable water.

The first cities to privatize water utilities are:

    -- Puerto Cortes, through a public-private system; and
    -- San Pedro Sula, through a 30-year concession granted to
       an Italian-Honduran consortium.

BNamericas relates that among cities considering privatization
are:

      -- La Lima,
      -- Trujillo,
      -- Tela,
      -- El Progreso, and
      -- El Negrito.

Lima, in particular, has 80,000 residents, of which almost
40,000 do not have access to potable water, BNamericas says.

A law on water and sanitation approved in August 2003
contemplates the creation of water councils and the approval of
municipal laws for guaranteed access to water and related
services.

The municipalities depend on the international community and
foreign financial entities' support in financing the initiative,
BNamericas states.

                        *    *    *

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




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


GENERAL MOTORS: Secures New US$4.63 Billion Debt Facility
---------------------------------------------------------
General Motors Corp. executed a US$4.63 billion amended and
restated credit agreement with a syndicate of banks on
July 20, 2006.  The Agreement provides for both an extended
facility of US$4.48 billion, which will terminate on July 20,
2011 and for a non-extended facility of US$152 million which
expires on June 16, 2008.  Only the extended facility, which
consists of 97% of the combined facility, is secured.

The collateral for the secured facility consists of certain
North American accounts receivable and inventory of General
Motors Corp., Saturn Corp., and General Motors of Canada,
Limited, certain plants, property and equipment of General
Motors of Canada and a pledge of 65% of the stock of the holding
company for the General Motors indirect subsidiary, GM de
Mexico.

In addition to securing the extended secured facility, the
collateral will also secure certain lines of credit, Auto
Clearing House and overdraft arrangements and letters of credit
provided by the extending secured lenders totaling US$1.5
billion.  At GM's current secured credit rating, all-in cost of
borrowings from extending lenders will be LIBOR plus 225 basis
points, while all-in costs of borrowings from non-extending
lenders will be LIBOR plus 160 basis points.  In addition,
extending lenders received a consent fee of 40 basis points.

In the event of certain work stoppages, the facility will be
temporarily reduced to US$3.5 billion.  The Agreement removes
any existing uncertainty as to whether the lenders would be
required to honor a borrowing request by General Motors.  The
Agreement will be filed with the Form 10-Q for the quarter ended
June 30, 2006.

                    About General Motors

General Motors Corp. -- http://www.gm.com/-- the world's  
largest automaker, has been the global industry sales leader for
75 years.  Founded in 1908, GM today employs about 327,000
people around the world.  With global headquarters in Detroit,
GM manufactures its cars and trucks in 33 countries including
Mexico.  In 2005, 9.17 million GM cars and trucks were sold
globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.  GM operates one of the world's leading finance
companies, GMAC Financial Services, which offers automotive,
residential and commercial financing and insurance.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.

                        *    *    *

As reported in the Troubled Company Reporter on June 30, 2006,
Standard & Poor's Ratings Services held all its ratings on
General Motors Corp. -- including the 'B' corporate credit
rating and the 'B+' bank loan rating, but excluding the '1'
recovery rating -- on CreditWatch with negative implications,
where they were placed March 29, 2006.

As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1'
to General Motor's new US$4.48 billion senior secured bank
facility.  The 'RR1' is based on the collateral package and
other protections that are expected to provide full recovery in
the event of a bankruptcy filing.


LIBBEY INC: Declares Quarterly Dividend of US$0.025 Per Share
-------------------------------------------------------------
Libbey Inc. declared a quarterly cash dividend of US$0.025 per
share. The dividend will be paid on August 24, 2006, to
shareholders of record as of August 9, 2006.  As of
July 24, 2006, Libbey had 14,240,102 shares outstanding.

                      About Libbey Inc.

Based in Toledo, Ohio, Libbey Inc. -- http://www.libbey.com/--   
operates glass tableware manufacturing plants in the United
States in Louisiana and Ohio, as well as in Mexico, Portugal and
the Netherlands.  Its Crisa subsidiary, located in Monterrey,
Mexico, is the leading producer of glass tableware in Mexico and
Latin America.  Its Royal Leerdam subsidiary, located in
Leerdam, Netherlands, is among the world leaders in producing
and selling glass stemware to retail, foodservice and industrial
clients.  Its Crisal subsidiary, located in Portugal, provides
an expanded presence in Europe.  Its Syracuse China subsidiary
designs, manufactures and distributes an extensive line of high-
quality ceramic dinnerware, principally for foodservice
establishments in the United States.  Its World Tableware
subsidiary imports and sells a full-line of metal flatware and
hollowware and an assortment of ceramic dinnerware and other
tabletop items principally for foodservice establishments in the
United States.  Its Traex subsidiary, located in Wisconsin,
designs, manufactures and distributes an extensive line of
plastic items for the foodservice industry.  In 2005, Libbey
Inc.'s net sales totaled US$568.1 million.

                        *    *    *

Standard & Poor's Ratings Services assigned on May 16, 2006, its
'B' corporate credit rating to Libbey Inc.

At the same time, Standard & Poor's assigned its 'B' senior
unsecured debt rating to the company's proposed US$400 million
of senior unsecured notes due 2014, which will be issued by the
company's wholly owned subsidiary Libbey Glass Inc. and
guaranteed on a senior basis by Libbey Inc.

Standard & Poor's said the outlook is stable.


INNOPHOS INVESTMENT: Moody's Affirms B2 Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service affirmed the B2 corporate family
rating for Innophos Investment Holdings, Inc., and the existing
ratings on the company's debt and the rated debt of its
Innophos, Inc. subsidiary. Moody's also affirmed the company's
speculative grade liquidity rating of SGL-2.  The outlook was
revised to positive from developing following the recent filing
by Innophos Holdings, Inc., of an initial public offering with a
proposed maximum aggregate offering price of US$150 million.

This summarizes the current ratings:

   Innophos Investment Holdings, Inc.

      * Corporate family rating -- B2
      * US$120 million Senior notes due 2015 -- Caa2
      * Speculative grade liquidity rating -- SGL-2

   Innophos, Inc.

      * US$50 million Guaranteed senior secured revolver due
        2009 -- B2

      * US$220 million Guaranteed senior secured term loan B due
        2010 -- B2

      * US$190 million 8.875% Guaranteed senior subordinated
        notes due 2014 -- Caa1

The positive outlook reflects the expected reduction in debt
resulting from prepaying debt with a portion of the proceeds to
the company from the IPO, credit metrics that are currently
supportive of a higher rating and the fact that the company has
not been required to post security associated with Mexican tax
claims.  The current change in outlook marks the end of the
developing outlook established in July 2005, following
developments in the company's Mexican tax claims case. The
positive outlook might be followed by an upgrade if the company
were to successfully complete its IPO and reduce debt with part
of the proceeds, there were an attractive resolution of the
company's Mexican tax claims case and the company's operations
continued to successfully generate cash flow and reduce debt.

In November 2004, the company's Mexican subsidiary, Innophos
Fosfatados, received notice of claims from the Mexican Tax Audit
and Assessment Unit of the National Waters Commission demanding
payment of duties, taxes and other charges related to the
extraction of water by the Coatzacoalcos manufacturing plant
from 1998 through 2002.  On June 13, 2005, a New York State
Court entered an order granting Innophos' summary judgment
motion on two counts, which sought declarations that the CNA
claims are taxes entitled to full indemnification under the sale
agreement with Rhodia (which sold the Innophos business in a
transaction that closed in August 2004), and that Rhodia is
obligated to pledge any necessary security to guarantee the
claims to the Mexican government.  Rhodia appealed the decision
and has not posted the security.  If Rhodia does not post the
security, Innophos may be required to provide the security.  On
August 29, 2005, the CNA affirmed certain cliams, and ordered
the revocation of certain other claims, but has reserved the
right to correct and re-issue the revoked claims.  The company
appealed all matters to the Mexican Tax Court.  The company has
stated that they have determined that liability is reasonably
possible, but is neither probable nor reasonably estimable and a
final determination of the matter may require appeals, which
might continue for several years.  Failure to resolve the claims
and security situation with Rhodia could potentially have a
negative impact on the Innophos' operations in Mexico, and
hence, the company's financial profile.

The affirmation of the speculative grade liquidity rating at
SGL-2 reflects the likelihood that Innophos will maintain an
elevated cash balance until the situation with Rhodia is
resolved, that the company will continue to generate positive
free cash flow, continued access to its undrawn revolving credit
facility, good flexibility under its financial covenants and a
favorable debt maturity profile.  The company has access to over
US$45 million from its US$50 million revolving credit facility
expiring 2009 (approximately US$4.8 million of letters of credit
are outstanding as of March 31, 2006) that is secured by a lien
on domestic working capital and fixed assets.  Since the
company's businesses are not seasonal and term loan amortization
is currently limited to US$1.9 million per year, Moody's
anticipates that Innophos will not be required to draw under its
revolving credit facility over the next 12 months.  Furthermore,
the company's liquidity should be insulated by a provision in
the bank agreement, which limits cash investments in its Mexican
affiliate.

Innophos Holdings, Inc. is the parent holding company of
Innophos Investment Holdings, Inc., which is also a holding
company that owns 100% of Innophos, Inc.  The company is the
largest North American manufacturer of specialty phosphate
salts, acids and related products serving a diverse range of
customers across multiple applications, geographies and
channels.  Innophos offers a broad suite of products used in a
wide variety of food and beverage, consumer products,
pharmaceutical and industrial applications.

Headquartered in Cranbury, New Jersey, Innophos has plant
operations in the US, Canada and Mexico.  Its revenues for the
last twelve months ended March 31, 2006, were US$528 million.


MERIDIAN AUTO: Panel Responds to First American's Objection
-----------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in
Meridian Automotive Systems, Inc., and its debtor-affiliates
does not dispute that as a third-party defendant, First American
Title Insurance Company is entitled to fully participate in the
case and defend itself.  However, First American must comply
with the Federal Rules of Bankruptcy Procedure and the Local
Rules of the Court, Don A. Beskrone, Esq., at Ashby & Geddes,
P.A., in Wilmington, Delaware, asserts.

First American's Brief seeks to raise purportedly dispositive
arguments in addition to those asserted by Credit Suisse, Cayman
Islands Branch, as First Lien Agent, Mr. Beskrone notes.

The Brief cannot be construed as a simple joinder, but is more
appropriately considered a substantive response filed by an
interested party, Mr. Beskrone contends.  Thus, the deadline to
file the Brief is governed by either the Local Rules or the
Scheduling Order, both of which First American did not abide by.

Mr. Beskrone says that assuming that First American is not bound
by the Scheduling Order, then the deadline for First American to
file its Brief is governed by Rule 7007-1 of the Delaware
Bankruptcy Local Rules pursuant to which answering briefs to the
First Lien Agent's Motion were to be have been filed by May 18,
2006, and answering briefs to the Committee's Cross-Motion were
to have been filed by June 6, 2006.

Mr. Beskrone emphasizes that First American did not file its
Brief until June 12, 2006.

Even if the Court were to strike the Brief, First American's
interests remain defended, Mr. Beskrone maintains.  Credit
Suisse, with whom First American has aligned itself, has already
fully briefed the issues raised in the Motion and the Cross-
Motion.

Considerations of judicial economy are not meant to relieve a
party from complying with applicable law, especially where the
party's failure to comply was completely within its control, Mr.
Beskrone further argues.

                  First American's Objection

As reported in the Troubled Company Reporter on July 21, 2006,
First American maintained 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 argued 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 asserted 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 maintained.  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
said.  It is the most efficient means for First American to
participate in the resolution of common issues in the
litigation.

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


PORTRAIT CORP.: Hires Thomas L. Garret, Jr., as EVP & CFO
---------------------------------------------------------
Portrait Corporation of America, Inc., hired Thomas L. Garrett,
Jr. as its new Executive Vice President and Chief Financial
Officer, effective July 24, 2006.

Mr. Garrett, 52 years old, has served as the Executive Vice
President and Chief Operating Officer of Churchill Mortgage
Corporation/Nations Home Funding, Incorporated, a residential
mortgage company, since 2003.

In 2001, Mr. Garrett served as Senior Vice President and Chief
Financial Officer for LTV Steel.  From 1996-2000 he worked for
Service Merchandise Company, a jewelry and home products
retailer, serving as its Senior Vice President and Chief
Financial Officer from 1999-2000 and its Treasurer from 1996-
1998.  Prior to joining Service Merchandise, Mr. Garrett served
as Treasurer for Magma Copper Company for four years and with
The Goodyear Tire & Rubber Company for sixteen years in various
treasury management positions.

The Company disclosed that the employment agreement provides
that Mr. Garrett will serve as Executive Vice President and
Chief Financial Officer on an 'at will' basis.  His annual base
salary is US$265,000 per year, subject to annual review and is
eligible to receive a bonus of 50% of base salary based upon the
achievement of his defined performance goals.  The Company says
that although Mr. Garret was not involved in developing the
Company's budget for the fiscal year and will serve only a
portion of the fiscal year, he is guaranteed a US$50,000 first
year bonus.

Mr. Garrett is also granted options to purchase 50,000 shares,
or approximately 1.2%, of the Company's common stock, subject to
the terms of the Company's Stock Option Plan.  Of these options,
40,000 will be granted at an exercise price of US$8.00 per
share, and the remaining 10,000 will be granted at an exercise
price of US$26.50 per share, for an eight year exercise term.

The Company also disclosed that Mr. Garrett is entitled to
participate in the Company's benefit plan for executive
employees  and he is also entitled to a minimum of 4 weeks of
vacation per year.  Mr. Garrett will also receive US$60,000 as a
moving allowance.  

Portrait Corporation of America, Inc., provides professional
portrait photography products and services to children, adults
and families in North America.  The Company operates portrait
studios within Wal-Mart stores and Supercenters in the United
States, Canada, Mexico, Germany and the United Kingdom.  The
Company also operates a modular traveling business providing
portrait photography services in additional retail locations and
to church congregations and other institutions.

                      Going Concern Doubt

Eisner LLP raised substantial doubt about Portrait Corp. of
America, Inc.'s ability to continue as a going concern after
auditing the Company's consolidated financial statements for the
year ended Jan. 29, 2006.  The auditor pointed to the Company's
substantial net loss, negative working capital, stockholders'
deficiency, default of certain obligations, which were due on
June 15, 2006, and insufficient liquidity to meet those
obligations.


VITRO SA: Reports Strong Results in Second Quarter of 2006
----------------------------------------------------------
Vitro S.A. de C.V. disclosed its second quarter 2006 unaudited
results. Year over year consolidated sales increased 5.7 % and
EBITDA rose 17.8%.  Consolidated EBITDA margins were up 160
basis points to 16.3% for the quarter.  Excluding divestitures
of Plasticos Bosco in April 2005, Quimica M in March 2006 and
the acquisition of Vidrios Panamenos or VIPASA in April 2006,
consolidated sales rose 5.8% and consolidated EBITDA increased
19.45 during the same period.

                    Financial Highlights
                  (in Million US$ Nominal)


                              2Q'06       2Q'05      % Change

Consolidated Net Sales         603         571         5.7%
Flat Glass                     286         285         0.5%
Glass Containers               307         277        11.1%
Cost of Sales                  437         417         4.8%
Gross Income                   167         154         7.9%
Gross Margins                  27.6%       27.0%       0.6 pp
SG&A                           116         116        -0.7%
SG&A % of sales                19.1%       20.4%      -1.3 pp
EBIT                            51          38        34.3%
EBIT Margins                    8.5%        6.7%       1.8 pp
EBITDA                          99          84        17.8%
Flat Glass                      21          23        -9.0%
Glass Containers                77          60        28.5%
EBITDA Margins                 16.3%       14.7%       1.6 pp
Net Income                       7          37           -
Net Income Margins              1.2%        6.4%     -523 bps
Total Debt                    1,297       1,395        -7.0%
Short Term Debt                 580         389        49.2%
Long Term Debt                  717       1,006       -28.7%
Average life of debt            3.4         4.1

Cash & Cash Equivalents         148         175       -15.4%

    
Alvaro Rodriguez, Chief Financial Officer, commented, "This was
again a very good quarter, with a solid performance in both
business units.  As a matter of fact, on a comparable basis, the
EBITDA obtained this quarter is the highest since 2Q'01, which
reflects the positive trend that we've been talking about since
2003."

Mr. Rodriguez continued, "Glass Containers continued to report
outstanding results with sales up 11% and EBITDA up 29%.  It's
important to note that the strength in this business is
widespread.  It reflects strong demand in both international and
domestic operations covering all major market segments and the
fact that we continue to open new markets."

"At Flat Glass, trends remain positive, with strong growth in
the domestic construction and auto OEM markets, as well as at
our foreign subsidiaries.  As anticipated, exports declined as
we refocus on domestic markets.  In fact, on a comparable basis,
excluding Quimica M, sales rose 3 % and EBITDA without inventory
reduction effect grew 64 % for the quarter and 46 % for the
first half of the year.  This is a sign of the new trend for the
Flat Glass business unit."

"Progress was also made in our cost cutting efforts, and this
quarter SG&A fell to 19.1% of sales from 20.4% in the second
quarter of 2005."

"We are also moving ahead with our strategy of reducing holding
company debt.  Year over year, we reduced gross debt at the
holding company level by US$144 million and consolidated gross
debt by US$98 million to US$1.297 billion which, on a comparable
basis, is the lowest debt level since 4Q'02.  In addition,
consolidated net debt declined by US$71 million.  We continued
to make progress with the sale of ancillary real estate, with an
additional US$13 million received in July.  Proceeds from the
sale of real estate and the recent divestiture of Crisa will
fund our 2006 amortizations."

                                    Jun-05             Jun-06
Inflation in Mexico
      Quarter                        0.0%              -0.1%
      LTM                            4.3%               3.3%
Inflation in USA
      Quarter                        1.4%               1.9%
      LTM                            2.8%               4.2%
Exchange Rate
      Closing                       10.7752            11.2723
Devaluation
      Quarter                       -3.6%               3.5%
      LTM                           -6.5%               4.6%


                            Sales

Consolidated net sales for 2Q'06 increased 5.7% YoY to US$603
million and 8.8 % to US$2,312 million for LTM 2006.  Flat Glass
and Glass Containers sales for the quarter rose 0.5% and 11.1%
YoY respectively.

During the quarter domestic and foreign subsidiaries' sales grew
7.4% and 9.9% YoY, respectively. Export sales decreased 1.9%
during the same period.

On a comparable basis, excluding divestitures of Plasticos Bosco
in April 2005, Quimica M in March 2006 and the acquisition of
Vidrios Panamenos in April 2006, consolidated net sales for the
quarter rose 5.8% YoY.
                              
                       EBIT and EBITDA

Consolidated EBIT for the quarter increased 34.3% YoY to US$51
million from US$38 million last year.  EBIT margin increased 1.8
%age points to 8.5%.  For LTM 2006, EBIT margin increased 1.7
%age points to 7.4%.

EBIT for the quarter at Glass Containers increased by 42.3 %
YoY, while at Flat Glass EBIT decreased 12.2 %. On a comparable
basis, Flat Glass EBIT, excluding Quimica M, rose 5.5 % YoY
while Glass Containers EBIT, excluding VIPASA, increased 41.6 %
YoY.

Consolidated EBITDA for the quarter increased 17.8% to US$99
million from US$84 million in 2Q'05.  The EBITDA margin
increased 1.6 percentage points YoY to 16.3%.  For LTM 2006,
consolidated EBITDA increased 13.1% to US$358 million from
US$317 million in LTM 2005. On a comparable basis, excluding
Bosco, Quimica M and VIPASA, consolidated EBITDA for the quarter
increased 19.4% YoY.

During the quarter, EBITDA decreased 9.0% YoY at Flat Glass.  
EBITDA at Glass Containers rose 28.5%.  On a comparable basis,
excluding Quimica M, EBITDA for Flat Glass during the quarter
decreased 1.1% YoY while EBITDA for Glass Containers, excluding
VIPASA, increased 27.1% YoY. Glass Containers was the major
EBITDA contributor for the quarter.

                   Consolidated Financing Cost

Consolidated financing costs for the quarter increased to US$79
million compared with US$11 million during 2Q'05.  This was
primarily driven by a non-cash foreign exchange loss of US$27
million compared to a non-cash foreign exchange gain of US$30
million in 2Q'05.  During 2Q'06 the Mexican Peso depreciated by
3.5% compared with a 3.6% appreciation in 2Q'05.  In addition,
an increase in other financial expenses driven mainly by the
negative value in derivative transactions more than offset a
slight reduction in interest expense.

                            Taxes

Total Taxes and PSW (Profit Sharing to Workers) decreased from
an income of US$40 million in 2Q'05 to an income of US$5 million
for this quarter.  This decrease was due to the recognition of
the tax basis of certain assets of some foreign subsidiaries
subject to be repatriated during 2Q'05.  Additionally, during
2Q'06 a Tax net operating loss generated by the sale of
Vitrocrisa's shares, which implied an increase in deferred
income tax.

                   Consolidated Net Income

During the quarter, the Company recorded a consolidated net
income of US$7 million compared to US$37 million during the same
quarter last year.  This variation is mainly a result of an
increase in financing costs due to a non-cash foreign exchange
loss compared with an non-cash foreign exchange gain in 2Q'05.  
In addition, the company recorded a tax income of US$5 million
during the quarter compared to US$40 million in 2Q'05.  The
above mentioned factors more than offset higher EBIT and income
from Discontinued Operations of US$38 million associated with
the sale of Vitrocrisa's share.

                     Capital Expenditures

Capital expenditures for the quarter totaled US$29 million,
compared with US$23 million in 2Q'05.  Flat Glass accounted for
39% and was mainly invested in concluding the VF1 furnace repair
and for maintenance purposes.  Glass Containers represented 60%
of total Capex consumption and included investment in a major
furnace repair, inspection equipment and maintenance.

             Consolidated Financial Position

Consolidated gross debt as of June 30 2006 totaled US$1,297
million, a QoQ decrease of US$57 million.

Net debt, which is calculated by deducting cash and cash
equivalents as well as restricted cash accounted for in other
current assets, decreased QoQ by US$73 million to US$1,149.  On
a YoY comparison, net debt decreased US$71 million.

As of 2Q'06, the Company had a cash balance of US$148 million,
of which US$118 million was recorded as cash and cash
equivalents and US$30 million was classified as other current
assets.  The US$30 million is restricted cash, which corresponds
to cash collateralizing debt and derivatives instruments - US$25
million were recorded at Flat Glass and US$5 million at the
holding company.

   -- The company's average life of debt as of 2Q'06 was 3.4
      years compared with 4.1 years for 2Q'05.

   -- Short term debt as of June 30 2006 increased by US$95
      million to 43% as a percentage of total debt, compared
      with 34% in 1Q'06.  These amounts include current
      maturities of long-term debt.

   -- As of June 30, 2006 we had an aggregate of US$138 million
      in off-balance sheet financing related to our sales of
      receivables and receivable securitization programs.  Flat
      Glass recorded US$74 million and Glass Containers recorded
      US$64 million.

   -- 39% of total short-term debt maturities are at the Holding
      Co. level.

   -- Revolving and other short-term debt, including trade
      related debt, accounted for 25% of total short-term debt.
      This type of debt is usually renewed within 28 to 180
      days.

   -- Current maturities of long-term debt, including current
      maturities of market debt, increased by US$98 million to
      US$417 million from US$319 as of March 31, 2006, and as of
      2Q'06 represented 75% of total short term debt.

   -- Approximately 60% of debt maturities due in the remainder
      of 2006 are at the operating subsidiary level.

   -- Market maturities during 2006 include medium-term notes
      denominated in UDI's.  Maturities for 2007 include the
      Senior Notes at the Holding Company level, Vena's Euro
      Commercial Paper and Credit Facilities at the subsidiary
      level.

   -- Market maturities from 2008, 2009, 2010 and thereafter,
      include the Senior Notes due in 2011 at VENA, the 2010
      Secured Term Loan at VENA, long-term "Certificados
      Bursatiles", a Private Placement, and the Senior
      Notes due in 2013 at the Holding Company level.

                          Cash Flow

Net free cash flow for the quarter increased to US$22 million
compared to US$19 million in 2Q'05.  Higher EBITDA and lower Net
Interest Expense helped compensate for the higher working
capital and capex needs during the quarter and cash taxes paid
by our foreign subsidiaries and our Mexican companies which do
not consolidate for tax purposes.

On an LTM basis, the Company recorded a free cash flow of US$50
million compared to US$4 million during the same period last
year.  Higher EBITDA as well as recovery of working capital and
lower capex investments, more than compensated for the higher
net interest expense and cash taxes paid.

                       Key Developments

Vitro's Subsidiary in Central America Acquires Vidrios
Panamenos, S.A.

On April 20, 2006 the Company announced that in a joint effort
with its Central American partners and through its subsidiary
Empresas Comegua, S.A., commercially known as Grupo Vidriero
Centroamericano or VICAL, it has completed the acquisition of
the majority of shares of Vidrios Panamenos, S.A., the leading
Panama-based glass containers Company. Through this acquisition,
VICAL will own approximately 96 per cent of the VIPASA
outstanding shares.  Since 1964 Vitro has been a partner of
VICAL, Central America's and the Caribbean leading glass
containers manufacturing company with production facilities in
Guatemala and Costa Rica.  The company has some of the most
important companies in the region as customers, mainly serving
soda bottling companies, beer, as well as liquor, food and
pharmaceutical industries.  VIPASA is the largest and most
important glass containers manufacturer for the beverage,
liquor, food and pharmaceutical industries in Panama and exports
to more than 15 countries in the American continent.  The
company's sales in 2005 reached US$23 million.

          Vitro Completes Sale of Interest in Vitrocrisa

On June 16, 2006 the Company announced that it has completed the
sale of its 51 % interest in Vitrocrisa Holdings, S de R.L. de
C.V. and related companies to Libbey Inc.  Libbey is now the
sole owner of this joint venture that was formed in 1997.  The
total cash inflow of US$119 million is comprised of US$80
million from the equity sale, plus approximately US$28 million
of intercompany receivables and US$11 million of intercompany
debt.  Additional to the US$11 million of intercompany debt,
Vitrocrisa's total outstanding bank debt, as of May 31, 2006,
stood at US$62 million.  With this transaction Vitro retained
the pension liability of approximately US$27 million for Crisa
employees who had retired as the closing date.  In addition,
there was a real estate swap with Libbey.

                    About Vitro S.A. de C.V.

Headquartered in Nuevo Leon, Mexico, Vitro, S.A. de C.V. --
http://www.vitro.com/-- (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers.  Vitro is a major participant in three principal
businesses: flat glass, glass containers and glassware.  Its
subsidiaries serve multiple product markets, including
construction and automotive glass; food and beverage, wine,
liquor, cosmetics and pharmaceutical glass containers; glassware
for commercial, industrial and retail uses.  Vitro also produces
raw materials and equipment and capital goods for industrial
use, which are vertically integrated in the Glass Containers
business unit.

Founded in 1909, Monterrey, Mexico-based Vitro has joint
ventures with major world-class partners and industry leaders
that provide its subsidiaries with access to international
markets, distribution channels and state-of-the-art technology.
Vitro's subsidiaries have facilities and distribution centers in
eight countries, located in North, Central and South America,
and Europe, and export to more than 70 countries worldwide.

                        *    *    *

As reported in the Troubled Company Reporter on Mar. 27, 2006,
Standard & Poor's Ratings Services lowered its long-term local
and foreign currency corporate credit ratings assigned to glass
manufacturer Vitro S.A. de C.V. and its glass containers
subsidiary Vitro Envases Norteamerica S.A. de C.V. (Vena) to
'B-' from 'B'.

Standard & Poor's also lowered the long-term national scale
corporate credit rating assigned to Vitro to 'mxBB+' from
'mxBBB-' with negative outlook.

Standard & Poor's also lowered the rating assigned to Vitro's
notes due 2013 and Servicios y Operaciones Financieras Vitro
S.A. de C.V. notes due 2007 (which are guaranteed by Vitro) to
'CCC' from 'CCC+'.  Standard & Poor's also lowered the rating
assigned to Vena's notes due 2011 to 'B-' from 'B'.




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


* PANAMA: Sells US$313 Million of Reopened 2015 Global Bond
-----------------------------------------------------------
Panama sold Tuesday US$313 million of a reopened global bond
that would expire in March 15, 2015, Reuters reports, citing
Barclays -- the deal's lead manager.

Barclays told Reuters that the bond was sold at a yield 6.813%.

Demand, says Reuters, was three times the amount for sale,
receiving US$950 million in bids.

The notes -- priced at 102.80 or 175 basis points over
comparable US Treasuries -- carry a coupon of 7.25%, Reuters
relates.

                        *    *    *

Fitch Ratings assigned these ratings on Panama:

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




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


* PARAGUAY: Meets International Monetary Fund's Economic Targets
----------------------------------------------------------------
Jorge Von Horoch, the deputy finance minister of Paraguay, told
Xinhua News Agency that the country has met the economic targets
that the International Monetary Fund aka IMF set.

Under a stand-by agreement, the IMF will make a credit of US$97
million to Paraguay if the latter meets the economic targets,
Xinhua states.

According to Xinhua, Mr. Von Horoch said at a joint conference
with Alejandro Santos -- the senior official of IMF -- that the
latter arrived in Paraguay days ago to check whether the country
reached the targets agreed.

Paraguay's economy had continued to increase at a reasonable
rate while inflation control had improved, Xinhua relates,
citing Mr. Santos.

                        *    *    *

Moody's assigned these ratings on Paraguay:

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

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

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




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


GRAN TIERRA: Deloitte & Touche Expresses Going Concern Doubt
------------------------------------------------------------
Deloitte & Touche LLP expressed substantial doubt about the
ability of Gran Tierra Energy Inc. fka Goldstrike Inc. to
continue as a going concern after auditing the Company's
financial statements for the year ending Dec.31, 2005.

The auditing firm says that the Company's ability to continue as
a going concern is dependent upon obtaining the necessary
financing to acquire oil and natural gas interests and generate
profitable operations from the Company's oil and natural gas
interests in the future.

The Company incurred a US$2.2 million net loss for the period
ended Dec. 31, 2005, negative cash flows from operations of
US$1.9 million, and, as of Dec. 31, 2005, had an accumulated
deficit of US$2.2 million.

The Company expects to incur substantial expenditures to further
its capital investment programs and its cash flow from operating
activities may not be sufficient to satisfy its current
obligations and meet our capital investment objectives.

As of Dec. 31, 2006, the Company's balance sheet showed assets
amounting to US$12,371,131 and an US$11,039,347 stockholders'
equity.

A full-text copy of the Annual Report on Form 10-KSB/A filed
with the Securities and Exchange Commission on July 18, 2006, is
available for free at http://ResearchArchives.com/t/s?e55

Gran Tierra Energy Inc., fka Goldstrike Inc., is an independent
international energy company involved in oil and natural gas
exploration and exploitation.  

Gran Tierra's current activities in Argentina and Colombia have
been established via acquisitions.  The Company has also signed
a license contract in Peru and has offered to purchase a mix of
producing and prospective assets in Argentina.  


* PERU: US Finance Committee Mulls Free Trade Accord with Nation
----------------------------------------------------------------
The United States' Senate Finance Committee will meet today to
discuss the free trade agreement signed with the government of
Peru, Brownfield Network reports.

According to Brownfield Network, the meeting is a step toward
Congressional ratification of the accord US President George W.
Bush negotiated under Trade Promotion Authority.  

The agreement scraps the average Peruvian tariff of 18% on
agriculture and food shipped from the US, Brownfield Network
relates.

The accord is especially good for agriculture, Brownfield
Network States, citing Charles Grassley, the finance committee
chairman in the US.

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

                     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




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


ADELPHIA COMMS: Wants Court Nod on Extended DIP Facility
--------------------------------------------------------
Adelphia Communications Corp. and its debtor-affiliates ask
the U.S. Bankruptcy Court for the Southern District of New York
to authorize and approve:

    (a) the amendment, restatement and extension of their
        existing Fourth Amended and Restated Credit and Guaranty
        Agreement dated as of March 17, 2006, with a group of
        lenders led by J.P. Morgan Securities, Inc., and
        Citigroup Global Markets, Inc., as Joint Bookrunners and
        Co-Lead Arrangers;

    (b) the related commitment letter for the Extended DIP
        Facility; and

    (c) the payment of related fees and expenses as provided for
        in the Commitment Letter and the related fee letter.

Shelley C. Chapman, Esq., at Willkie Farr & Gallagher LLP, in
New York, tells Judge Gerber that while the Debtors expect to
consummate the Sale Transaction prior to its outside date of
July 31, 2006 -- and thus prior to the current Aug. 7, 2006,
maturity date of the Existing DIP Facility -- in the exercise of
prudent business judgment, the Debtors have taken steps to
obtain the DIP Lenders' agreement to an extension of the
Existing DIP Facility in the event the Sale Transaction closing
is delayed.

Among other things, the Extended DIP Facility:

    (a) provides for a US$1.3 billion facility, comprised of an
        US$800,000,000 revolving credit facility -- including a
        US$500,000,000 letter of credit sub facility -- and a
        US$500,000,000 term loan, although prior to the closing
        date of the Extended DIP Facility, the Co-Lead Arrangers
        are entitled to change the allocations between the
        revolving credit facility and the term loan facility,
        but in any event the aggregate amount of the Extended
        DIP Facility cannot be reduced below US$1.3 billion;

    (b) provides for a Maturity Date of Nov. 7, 2006;

    (c) provides for the termination of the Extended DIP
        Facility on the earlier of:

           (i) the Maturity Date,

          (ii) the acceleration of the loans and the termination
               of the commitments in accordance with the terms
               of the Extended DIP Facility,

         (iii) the date on which the transactions contemplated
               by either Purchase Agreement are consummated,

          (iv) the date on which any Break-Up Fee is paid to
               either Buyer pursuant to the terms of the
               applicable Purchase Agreement, and

           (v) subject to the terms of the Extended DIP
               Facility, the substantial consummation of a plan
               of reorganization; and

    (d) provides that the EBITDA and EBITDAR definitions
        contained in the Extended DIP Facility will be modified
        to add back to net income the aggregate amount of any
        charges recorded or reserves taken by any Loan Party
        during any period for any Break-Up Fee that becomes
        payable under the Purchase Agreements or is otherwise
        accrued by the Loan Parties during that period,
        provided, that the aggregate amount of those charges or
        reserves does not exceed US$440,350,000.

The Borrowing Limits under the July 10, 2006, Commitment Letter
are:

                         Initial            Final
    Borrower Group       Borrowing Limits   Borrowing Limits
    --------------       ----------------   ----------------
    Century                US$690,000,000     US$650,000,000
    Century-TCI               230,000,000        250,000,000
    UCA                       100,000,000         75,000,000
    Parnassos                  10,000,000         10,000,000
    FrontierVision            215,000,000        205,000,000
    Olympus                    25,000,000         25,000,000
    Seven A                             0                  0
    Seven B                    20,000,000         75,000,000
    Seven C                    10,000,000         10,000,000
                         ----------------   ----------------
                TOTAL:   US$1,300,000,000   US$1,300,000,000
                         ================   ================

The ACOM Debtors are required to pay certain fees to the DIP
Lenders as consideration for the commitments under the
Commitment Letter and the extension of the Existing DIP
Facility:

    -- Marketing Fees totaling US$650,000
    -- Annual Administrative Fee equal to US$250,000
    -- Collateral Fee equal to US$250,000
    -- Arrangement Fee equal to US$250,000

The ACOM Debtors have agreed to reimburse each Co-Lead Arranger
and each Lead Lender for their reasonable out-of-pocket expenses
incurred.

According to Ms. Chapman, none of the fees associated with the
Extended DIP Facility will become payable -- except for
reimbursement of out-of-pocket expenses associated with the
negotiation and documentation of the extension -- unless the
Sale Transaction fails to close prior to the Existing DIP
Facility's August 7, 2006, maturity date and the Extended DIP
Facility is closed.

A full-text copy of the Fifth Amended and Restated Credit and
Guaranty Agreement is available for free at:

               http://ResearchArchives.com/t/s?e09

A full-text copy of the Commitment Letter is available for free
at http://ResearchArchives.com/t/s?e0a

                   Use of Cash Collateral

The Debtors further ask the Court to approve their continued use
of cash collateral.

The ACOM Debtors and the administrative agents for certain
prepetition lenders:

    -- Bank of America, N.A., for the Century Lenders;
    -- Bank of Montreal, for the Olympus Lenders;
    -- Wachovia Bank, N.A., for the UCA Lenders; and
    -- JPMorgan Chase Bank, for the FrontierVision Lenders,

agree that the Debtors will be authorized to continue to use the
Cash Collateral in which the Pre-Petition Secured Lenders claim
an interest.  The Debtors are directed to continue to provide
Adequate Protection Obligations pursuant to the terms and
conditions contained in the Final DIP Order; provided that
following consummation of the Purchase Agreements and the JV
Plan, the Debtors no longer will be obligated to:

    (a) comply with the requirements of Articles 5 and 6 of the
        DIP Credit Agreement; and

    (b) implement and follow the Cash Management Protocol.

                   Investment Guidelines

Upon the closing of the Sale Transaction, the Debtors will
require the services of one or more investment managers, a
custodian, and a cash management bank to hold, manage, and
disburse the proceeds of the Sale Transaction.  The Debtors
conducted an extensive selection process over the past several
weeks, during which representatives of the Debtors met with and
considered six sophisticated and qualified financial services
firms for the position of investment manager and five such firms
for the position of cash manager.  After careful consideration,
the Debtors have determined to retain UBS Global Asset
Management (Americas) Inc., and Morgan Stanley & Co., Inc., as
investment managers, with each Investment Manager to manage 50%
of the net proceeds received from the Sale Transaction.

Ms. Chapman explains that the Debtors' determination was based
on, among other things, the reputation and experience of UBS and
Morgan Stanley, the quality of the personnel from each firm who
will be dedicated to serving the Debtors' account, and the
willingness of the Investment Managers to offer highly
competitive pricing.

The Debtors also have determined to continue using Wachovia
Bank, National Association, who throughout their cases has
operated as the primary cash management bank for the Debtors, as
the institution that will transact the majority of the cash
activities for the Debtors.  "This determination was based on,
among other things, the operational efficiency of avoiding a
transition to a different system and Wachovia's willingness to
keep the same customer service team in place and offer
competitive pricing," Ms. Chapman says.

Accordingly, the Debtors seek the Court's authority (i) to enter
into investment management agreements with the Investment
Managers; and (ii) to continue using Wachovia as the Cash
Management Bank.

The Investment Management Agreements, among other things,
contain industry standard indemnification provisions.

The Debtors also ask Judge Gerber to approve certain investment
guidelines.

The Investment Guidelines are designed to:

    (a) safely preserve the value of the principal proceeds
        received from the Sale Transaction pending distribution
        to the Debtors' creditors;

    (b) maintain appropriate liquidity for the cash
        disbursements of the Debtors;

    (c) provide for prudent diversification of investments; and

    (d) maximize the after-tax rate of return on investments
        consistent with the safety, liquidity and
        diversification guidelines.

A full-text a copy of the Investment Guidelines is available for
free at http://ResearchArchives.com/t/s?e0b

                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 Jan. 15 to Remove State Court Civil Suits
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware extended
until Jan. 15, 2007, the period within which Global Home
Products, LLC, and its debtor-affiliates can remove state court
civil actions to the U.S. District Court for the District of
Delaware or the Bankruptcy Court.

David M. Bertenthal, Esq., at Pachulski Stang Ziehl Young Jones
& Weintraub, LLP, in Wilmington, Delaware, tellsd the Court that
since the Debtors filed for bankruptcy, they have been
constantly and persistently occupied with matters of immediate
importance to their chapter 11 cases.  The Debtors have devoted
substantial amounts of time to transitioning into chapter 11 and
on actively preparing, and ultimately filing, their schedules.

Furthermore, after filing for bankruptcy, the Debtors have
focused their efforts on obtaining expedited Court approval for
the sale of some assets, addressing issues to that sale and
working with key constituencies on issues relating to their
cases.

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


MUSICLAND HOLDING: Trade Creditors Sell US$77 Million Claims
------------------------------------------------------------
From May 16, 2006 to July 7, 2006, the Clerk of the United
States Bankruptcy Court for the Southern District of New York
recorded five claim transfers to:

   Transferee               Creditor             Claim Amount
   ----------               --------             ------------
   Credit Suisse            Twentieth Century               -
   International.           Fox LLC

   Cargill Financial        Wilmington Trust    US$26,941,787
   Services Int'l Inc.      Company

   Cargill Financial        Paramount Pictures     13,450,961
   Services Int'l Inc.      Home Video Div.

   Varde Investment         Sony BMG Music         29,107,675
   Partners, L.P.           Entertainment

   Varde Investment         EMI Music               8,080,779
   Partners, L.P.           North America

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: Court OKs Amended & Restated Joint Disclosure Statement
----------------------------------------------------------------
The Honorable Jerry A. Brown of the U.S. Bankruptcy Court for
the Eastern District of Louisiana approved the Amended and
Restated Joint Disclosure Statement explaining the Joint Chapter
11 Plan filed by OCA, Inc., and its debtor-affiliates yesterday,
July 24, 2006.

The Court determined that the Disclosure Statement contains
adequate information -- the right amount of the right kind of
information necessary for creditors to make informed decisions
-- as required in Section 1125 of the Bankruptcy Code.

The primary purposes of the Plan are to:

   -- provide for the continued operation and renewed growth of
      the Debtors' businesses;

   -- rationalize the Debtors' debt structure by satisfying the
      senior lender claims through a new term loan facility and
      the issuance of 100% of the equity in the Reorganized OCA
      to the senior lenders (subject to the dilution by the
      Management Incentive Plan and the Doctors' Incentive
      Plan);

   -- provide for US$10 million in exit financing to repay the
      DIP Facility, pay the expenses of the bankruptcy cases and
      the allowed claims against the Debtors and to provide
      additional working capital for the Debtors' businesses;

   -- provide for new senior management and ownership of the
      Debtors; and

   -- provide distributions to holders of allowed claims and
      potential distributions to holders of equity interests and
      subordinated claims.

          Debt &  Capital Structure Under the Plan

The Senior Lender will be issued 100% of the New Common Stock in
the Reorganized OCA (subject to the dilution by the Management
Incentive Plan and the Doctors' Incentive Plan) and will receive
ratable interests in the New Term Loan Facility in satisfaction
of the Senior Lender Claims.

The holders of Allowed General Unsecured Claims share ratably
in:

   (1) the General Unsecured Claims Pool, consisting of
       US$3,000,000 deposited by the Reorganized Debtors in the
       Unsecured Creditors' Trust;

   (2) several potential General Unsecured Deferred Payments
       (consisting of possible payments by the Reorganized
       Debtors to the Unsecured Creditors' Trust) upon the
       Reorganized Debtors achieving certain financial
       milestones; and

   (3) the Transferred Avoidance Action Proceeds (consisting of
       the net proceeds from the Transferred Avoidance Actions).

Depending on the amount of General Unsecured Claims that are
ultimately Allowed, and the Reorganized Debtors' performance,
Holders of Allowed General Unsecured Claims could conceivably
receive as much as 100% of the amount of their Allowed General
Unsecured Claims over time, but will in no instance receive more
than a full recovery on account of their Allowed General
Unsecured Claims, exclusive of interest accruing after the
Debtors' bankruptcy filing.

The existing common, and preferred, stock and any options in OCA
will be canceled.  However, if the classes comprising Equity
Interests and Subordinated Claims vote to accept the Plan, the
existing stockholders, together with the holders of allowed
Subordinated Claims will receive Equity and Subordinated Claims
Deferred Payments, which are potential payments (not securities)
based on the Reorganized OCA achieving certain milestones in the
future including the payment in full of Allowed General
Unsecured Claims.  The Reorganized Debtors will make Equity and
Subordinated Claims Deferred Payments, if any, to the Equity and
Subordinated Claims Trust.

                       Exit Financing

The Senior Lenders will provide up to US$10 million of exit
financing on the Effective Date of the Plan to repay the DIP
Facility incurred during the bankruptcy case, and to pay
administrative claims due to professionals and others, trade
creditors and other general unsecured creditors, as well as to
provide working capital for the Reorganized Debtors.

                          Deadlines

Objections to the Plan and ballots should be filed and served by
August 28, 2006.  Ballots will be tabulated by the voting agent
and the certification of ballots will be prepared and filed by
Sept. 1, 2006.

The Court will consider confirmation of the Plan beginning at
10:00 a.m. on Sept. 5, 2006.  The confirmation hearing may be
continued after that from time to time.

A full-text copy of the Disclosure Statement is available for a
fee at:

  http://www.researcharchives.com/bin/download?id=060725223228

                          About OCA

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

The Debtor and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No.
06-10179).  Three 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.


UNIVERSITY OF PUERTO: Moody's May Downgrade Baa2 Rating
-------------------------------------------------------
Moody's Investors Service continues to maintain the University
of Puerto Rico's unenhanced and underlying Baa2 bond rating on
Watchlist for downgrade.

Moody's recently confirmed the Commonwealth of Puerto Rico's
general obligation rating and removed the Commonwealth's rating
from watchlist (GO rating now Baa3 with a negative outlook).  
Moody's ongoing review of the University's credit profile will
focus on the impact to the University of the Commonwealth's
FY2007 budget, the potential for interruption or reduction to
University appropriations and specific credit strengths of the
University that are not influenced by the Commonwealth's credit
profile.

While the University retains opportunity and ability to increase
revenue diversity over the long-term, these efforts are unlikely
to have a significant impact on the level of reliance on the
Commonwealth over the near term.  As such, Moody's ongoing
review will consider lowering the University's rating to the
same level as the Commonwealth's rating until such
diversification and reduction in reliance on Commonwealth
funding occurs.

The Baa3 rating on the University's subordinate debt, issued by
AFICA on behalf of Desarrollos Universitarios, Inc. and
ultimately secured by lease payments of the University also
remains on Watchlist for possible downgrade.  The Baa2 ratings
apply to US$440 million of Series C, D, F, M, N and O bonds.  
The Baa3 rating applies to $86 million of Series A of 2000 bonds
issued through AFICA.

Moody's expects its review to be completed within 90 days.


WARRANTECH CORP: Balance Sheet Upside Down by US$30,499,002
-----------------------------------------------------------
Warrantech Corp.'s liquidity position weakened by 11%, standing
for a US$1.68 million increase in working capital deficit, from
US$15.37 million at March 31, 2005 to US$17.06 million at
March 31, 2006.

The Company recorded US$39.53 million in current assets and
US$56.59 million in current liabilities at March 31 2006,
compared with US$34.00 million in current assets and US$49.38
million in current liabilities at March 31, 2005.

As of March 31, 2006, total cash and short-term investments
totaled $5.06 million, from US$6.03 million at March 31, 2005.  
During the fiscal year ended March 31, 2006, the Company used
net cash from operations totaling US$866,210, compared with
US$280,170 for the same period in 2005.  The change in net cash
from operations is due to an increase in insurance premiums
payable, mainly because of the increase in revenue.

During fiscal year 2006, the Company increased its accounts
receivable by US$4.7 million as a result of higher sales from
its automotive business.  The Company offset the use of those
funds with a US$6.0 million increase in its insurance premiums
payable and US$1.7 million increase in its accounts and
commissions payable.

Cash in investing activities during the fiscal year ended March
31, 2006 was US$562,000, compared with US$239,000 for the same
period in 2005.  This increase in use of funds of US$322,000 is
primarily due to a decrease in proceeds from the sale of
marketable securities.  The Company used slightly more funds
from the purchase of property and equipment during the current
fiscal year. The total amount financed through leasing
transactions during the fiscal year ended March 31, 2006
amounted to US$205,000 compared with US$538,000 for the same
period in 2005.  At fiscal year end 2006, the Company had
US$1.09 million in debt from capital lease obligations compared
with US$1.46 million for the same period in 2005.

Cash from financing activities during the fiscal year ended
March 31, 2006 was US$712,000, compared with (US$678,000) for
the same period in 2005. The variance was primarily due to the
reduction of US$3.54 million in loans by Company directors and
its tendering of shares back into treasury of US$1.16 million.

The Company said that it will have sufficient funds to finance
its current operations for at least the next 12 months from
internally generated funds and from extended terms and the $3
million line of credit from Great American Insurance Company.

The Company also mentioned the possibility of reduced litigation
expenditures in the event of either a successful appeal pending
in the 5th circuit regarding the LLoyds Underwriters litigation
or a successful appeal also pending in the 5th circuit regarding
Steadfast Insurance Company's defense in the Lloyds Matter.

On June 7, 2006, the Company, entered into an agreement and plan
of merger with WT Acquisition Holdings, LLC and WT Acquisition
Corp. The Company said that if approved, the merger will
positively impact the Company's active search for additional
lines of credit to fund working capital.

Headquartered in Bedford, Texas, Warrantech Corp. offers service
contracts and extended warranties on automotive and consumer
products in the United States, Canada, Puerto Rico and Latin
America.

At Mar. 31, 2006, Warrantech Corp.'s balance sheet showed
US$266,885,901 in total assets and US$297,384,903 in total
liabilities, reflecting a US$30,499,002 equity deficit.




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


MIRANT CORP: Equity Panel Counsel Insists on No Fee Enhancement
---------------------------------------------------------------
Mirant Corp. and its debtor-affiliates, the Official Committee
of Unsecured Creditors of Mirant Corporation, et al., and the
Official Committee of Unsecured Creditors of Mirant Americas
Generation asked the U.S. Bankruptcy Court for the Northern
District of Texas to approve the fee enhancements for certain
core counsel.

Although Brown Rudnick Berlack Israels LLP and Hohmann, Taube &
Summers, L.L.P., are among the core counsel that will benefit
from the fee enhancement in the event the Court approves the
request, the two firms did not support that request.

The Debtors, the Mirant Committee and the MAGi Committee are
attempting to dictate the process of awarding fee enhancements,
Eric J. Taube, Esq., at Hohmann, Taube & Summers, L.L.P., in
Austin, Texas, asserts.  The parties are asking Judge Lynn to
disregard the previous procedures the Court has instituted
regarding fee applications and to ignore the law governing fee
enhancements, Mr. Taube notes.

Despite having previously argued that no bonuses be paid in the
Chapter 11 cases, the Debtors and the Mirant Committee -- and
now joined by the MAGi Committee -- seek to thrust a scheme for
awarding fee enhancements on the Court and certain parties that
do not agree with that scheme, Mr. Taube relates.

Aside from being a late-filed fee enhancement application, the
request is premised on the ill-founded position that fee
enhancements should be awarded to the primary estate attorneys
based on the total base fees incurred by the attorneys, Mr.
Taube points out.

The determination of which professionals are entitled to a fee
enhancement and the amount of any of the enhancements is within
the exclusive province of the Court, Mr. Taube adds.

Hence, Brown Rudnick and Hohmann Taube -- the Equity Committee
Counsel -- ask the Court to deny the fee enhancement request.

                      About Mirant Corp.

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

                        *     *     *

As reported in the Troubled Company Reporter on July 17, 2006,
Moody's Investors Service downgraded the ratings of Mirant
Corporation and its subsidiaries Mirant North America, LLC and
Mirant Americas Generation, LLC.  The Ba2 rating for Mirant Mid-
Atlantic, LLC's secured pass through trust certificates was
affirmed.  Additionally, Mirant's Speculative Grade Liquidity
rating was revised to SGL-2 from SGL-1.  The rating outlook is
stable for Mirant, MNA, MAG, and MIRMA.

Moody's downgraded Mirant Americas Generation, LLC's Senior
Unsecured Regular Bond/Debenture, to B3 from B2.  Moody's also
downgraded Mirant Corporation's Corporate Family Rating, to B2
from B1, and Speculative Grade Liquidity Rating, to SGL-2 from
SGL-1.  Mirant North America, LLC's Senior Secured Bank Credit
Facility, was also downgraded to B1 from Ba3 and its Senior
Unsecured Regular Bond/Debenture, to B2 from B1.

As reported in the Troubled Company Reporter on July 13, 2006,
Fitch Ratings placed the ratings of Mirant Corp., including the
Issuer Default Rating of 'B+', and its subsidiaries on Rating
Watch Negative following its announced plans to buy back stock
and sell its Philippine and Caribbean assets.

Ratings affected are Mirant Corp.'s 'B+' Issuer Default Rating
and Mirant Mid-Atlantic LLC's 'B+' Issuer Default Rating and the
Pass-through certificates' 'BB+/Recovery Rating RR1'.

Fitch also placed Mirant North America, Inc.'s Issuer Default
Rating of 'B+', Senior secured bank debt's 'BB/RR1' rating,
SenioR secured term loan's 'BB/RR1' rating, and Senior unsecured
notes' 'BB-/RR1' rating on Rating Watch Negative.  Mirant
Americas Generation, LLC's Issuer Default Rating of 'B+' and
Senior unsecured notes' 'B/RR5' rating was included as well.

Standard & Poor's Ratings Services also placed the 'B+'
corporate credit ratings on Mirant Corp. and its subsidiaries,
Mirant North American LLC, Mirant Americas Generating LLC, and
Mirant Mid-Atlantic LLC, on CreditWatch with negative
implications.


MIRANT CORP: Excluded Debtors Want Until December 6 to File Plan
----------------------------------------------------------------
Mirant Corp. debtor-affiliates which did not emerged from
bankruptcy with Mirant ask the U.S. Bankruptcy Court for the
Northern District of Texas to further extend their exclusive
periods to:

    (a) adopt or abandon the Debtors' Plan of Reorganization, or
        to file a plan of reorganization until Dec. 6, 2006; and

    (b) solicit acceptances of the Plan or another plan until
        Febr. 3, 2007.

These debtor-affiliates are:

    (a) the New York Debtors -- Mirant Bowline, LLC; Mirant
        Lovett, LLC; and Mirant New York, Inc.;

    (b) Mirant NY-Gen, LLC; and

    (c) Hudson Valley Gas Corp.

Jeff P. Prostok, Esq., at Forshey & Prostok LLP, in Fort Worth,
Texas, relates that certain issues in the Excluded Debtors'
Chapter 11 cases have not yet been resolved, specifically the
New York Debtors' tax dispute with the New York taxing
authorities and the Mirant NY-Gen, LLC's remediation plan.

Judge Lynn recently issued a Memorandum Order relating to the
New York Debtors' tax issues, Mr. Prostok notes.  The Memorandum
Order provides for hearing schedules that will tackle the
resolution of the tax disputes.  The Bankruptcy Court or the
Supreme Court of the State of New York, where the Debtors' tax
certiorari actions are pending, may rule on the issues in
October 2006.

Mr. Prostok contends that the New York Debtors and Hudson Valley
cannot confirm a plan without resolving the tax disputes with
the New York Taxing Authorities.  In addition, Mirant NY-Gen
contemplates selling certain of its assets, which may need to be
addressed prior to the proposal of a plan.

The New York Debtors and Hudson Valley, Mr. Prostok says, will
use the additional time after October 2006 to propose a plan of
reorganization based on the outcome of the tax disputes and the
resolution of other matters.

Mirant NY-Gen will use the extension to begin its compliance
with the remediation plan approved by the Federal Energy
Regulatory Commission and address any related issues, which may
arise prior to proposing a plan.

Denying the requested extension and opening up the Excluded
Debtors' cases to competing plans, on the other hand, would
destabilize the process, risk unnecessary litigation, and delay
the timely emergence of the Excluded Debtors from Chapter 11,
Mr. Prostok points out.

                      About Mirant Corp.

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

                        *     *     *

As reported in the Troubled Company Reporter on July 17, 2006,
Moody's Investors Service downgraded the ratings of Mirant
Corporation and its subsidiaries Mirant North America, LLC and
Mirant Americas Generation, LLC.  The Ba2 rating for Mirant Mid-
Atlantic, LLC's secured pass through trust certificates was
affirmed.  Additionally, Mirant's Speculative Grade Liquidity
rating was revised to SGL-2 from SGL-1.  The rating outlook is
stable for Mirant, MNA, MAG, and MIRMA.

Moody's downgraded Mirant Americas Generation, LLC's Senior
Unsecured Regular Bond/Debenture, to B3 from B2.  Moody's also
downgraded Mirant Corporation's Corporate Family Rating, to B2
from B1, and Speculative Grade Liquidity Rating, to SGL-2 from
SGL-1.  Mirant North America, LLC's Senior Secured Bank Credit
Facility, was also downgraded to B1 from Ba3 and its Senior
Unsecured Regular Bond/Debenture, to B2 from B1.

As reported in the Troubled Company Reporter on July 13, 2006,
Fitch Ratings placed the ratings of Mirant Corp., including the
Issuer Default Rating of 'B+', and its subsidiaries on Rating
Watch Negative following its announced plans to buy back stock
and sell its Philippine and Caribbean assets.

Ratings affected are Mirant Corp.'s 'B+' Issuer Default Rating
and Mirant Mid-Atlantic LLC's 'B+' Issuer Default Rating and the
Pass-through certificates' 'BB+/Recovery Rating RR1'.

Fitch also placed Mirant North America, Inc.'s Issuer Default
Rating of 'B+', Senior secured bank debt's 'BB/RR1' rating,
Senior secured term loan's 'BB/RR1' rating, and Senior unsecured
notes' 'BB-/RR1' rating on Rating Watch Negative.  Mirant
Americas Generation, LLC's Issuer Default Rating of 'B+' and
Senior unsecured notes' 'B/RR5' rating was included as well.

Standard & Poor's Ratings Services also placed the 'B+'
corporate credit ratings on Mirant Corp. and its subsidiaries,
Mirant North American LLC, Mirant Americas Generating LLC, and
Mirant Mid-Atlantic LLC, on CreditWatch with negative
implications.




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


* URUGUAY: Insurers Post UYU9.26 Mil. First Quarter 2006 Profit
---------------------------------------------------------------
Figures from the Uruguayan central bank indicate that 15
insurers posted a consolidated profit of UYU9.26 million in the
first quarter of 2006, Business News Americas reports.

In the first quarter of 2005, the insurance sector had reported
a UYU5.98 million loss, BNamericas states.

The insurers, says BNamericas, counterbalanced a combined
UYU35.9 million technical loss in the first quarter of 2006 with
higher financial investment returns of UYU308 million.

According to BNamericas, operating expenses increased 62% to
UYU491 million.  Claim costs grew 22% to UYU738 million.

The insurers' combined net retained premiums increased 1.4% to
UYU1.45 billion in the first quarter this year, compared to the
same quarter last year, BNamericas relates.

                        *    *    *

Fitch Ratings assigned these ratings on Uruguay:

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




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


ARVINMERITOR: Sells LVA Control Unit in Marion to AVM Industries
----------------------------------------------------------------
ArvinMeritor, Inc., sold its Light Vehicle Aftermarket or LVA
Motion Control business in Marion, S.C., to AVM Industries LLC,
an Ohio Limited Liability Company.  Terms of the agreement were
not disclosed.  The sale does not include the land and buildings
which are being retained by ArvinMeritor.
    
"With this sale, we move closer to our objective to divest the
entire LVA business group, allowing us to build on our core
competencies in the global automotive and commercial truck
markets," said Chip McClure, ArvinMeritor chairman, CEO and
president.
    
ArvinMeritor has in recent months announced the divestiture of
other LVA businesses including:

   -- its equity share in Purolator India;
  
   -- the Purolator filters business and exhaust business in
      North America; and
   
  -- last month, its Gabriel South Africa Ride Control
      business in Cape Town.
    
The Marion operation, which produces gas springs and vacuum
actuators, has approximately 400 employees.

Headquartered in Troy, Michigan, ArvinMeritor, Inc. --
http://www.arvinmeritor.com/-- is a premier $8.8 billion global
supplier of a broad range of integrated systems, modules and
components to the motor vehicle industry.  The company serves
light vehicle, commercial truck, trailer and specialty original
equipment manufacturers and certain aftermarkets.  ArvinMeritor
employs approximately 29,000 people at more than 120
manufacturing facilities in 25 countries.  It maintains 23
facilities in Venezuela, Brazil and Argentina.  ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.

                        *    *    *

As reported in the Troubled Company Reporter on April 7, 2006,
Moody's Investors Service affirmed ArvinMeritor's corporate
family rating at Ba2, and changed the rating outlook from stable
to negative.

Moody's said the company's core Light Vehicle Systems segment
continues to under-perform and debt protection measures are
somewhat weak for the rating category.

Moody's also affirmed the Ba2 rating of the Company's senior
unsecured notes and senior unsecured shelf.


* VENEZUELA: Inks Cooperation Accords with Belarus
--------------------------------------------------
Venezuela's President Hugo Chavez and Alexander Lukashenko, his
counterpart in Belarus, signed cooperation agreements, pledging
long-term support at world forums, Prensa Latina reports.

The agreements, says Prensa Latina, increases cooperation in:

     -- energy,
     -- petrochemicals,  
     -- science and technology,
     -- agriculture, and
     -- fertilizers.

The Venezuelan governmental committee for science and technology
also entered an agreement of understanding with its Belarus
counterpart, Prensa Latina relates.

                        *    *    *

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


* LatinFinance Ranks LatAm Banks According to Sustainability
------------------------------------------------------------
For the second year running, Itau is Latin America's most
sustainable and ethical bank, according to a study of over 280
criteria of sustainability, ethics, corporate social
responsibility, corporate governance and transparency.  The big
winners in the 2006 ranking over 2005 are:

   -- Bradesco (from 10th to 2nd position),
   -- HSBC Mexico (14th to 4th), and
   -- ABN AMRO Banco Real (16th to 5th).  

The annual study and ranking of Latin America's most
sustainable/ethical large banks is compiled by the
sustainability research and rating company Management &
Excellence (M&E), Madrid, and LatinFinance, Miami.

               Ranking 2006

    1       Itau                    85.42%
    2       Bradesco                81.05%
    3       BBVA Peru               80.47%
    4       HSBC Mexico             79.01%
    5       ABN Amro Real           75.22%
    6       Santander Santiago      73.47%
    7       BBVA Bancomer           72.59%
    8       Unibanco                69.97%
    9       BBVA Chile              63.85%
            BCP - Peru              63.85%
    11      B. de Chile             62.97%
    12      Santander Brasil        62.10%
    13      Santander Mexico        59.48%
    14      Scotiabank-Mexico       58.31%
    15      BBVA Venezuela          51.60%
    16      Bancolombia             50.44%
    17      B. Hipotecario          47.52%
    18      B. Estado de Chile      46.94%
    19      BBRA Colombia           40.82%
    20      Banco Rio               38.78%
    
Banks are taking sustainability, ethics and social
responsibility seriously as investors, clients and the market as
a whole increasingly look at performance in these areas.
Bradesco, for example, jumped up in the ranking because it
consolidated all its achievements in social fields in a 145-page
"Social Responsibility Report" and spent roughly US$25 million
on training its staff in 2005.
    
Yet banks improved most in "easier" points, such as producing
detailed, often 40-page codes of ethics addressing real life
situations, how to deal with money laundering, conflicts of
interest and bribes or discrimination.  They have become new
instruments for keeping employees in line.
    
Community programs go beyond local or regional programs for the
poor. ABN AMRO Banco Real in Brazil, for example, has been
running an ethical fund since 2001, which not only excludes
companies producing pornography and weapons but also alcoholic
beverage and nuclear energy companies.  Loans for small
companies and individuals are driving thousands into banks and
helping Bradesco.  For example, Bradesco grew its customer base
from 12 million in 2001 to 16.5 million in 2005. Sixteen of the
20 banks claimed having significantly increased their socially
responsible transactions in 2005.
    
Corporate governance continues to be relatively weak, although
overall banks improved from an average of 37% compliance last
year to 58,33%. Board committees lacking a majority of
independent directors, the absence of nomination committees for
top executives and the failure to give voting rights to all
shareholders are typical deficiencies of even the best Latin
banks.


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------  
                                Total  
                                Shareholders  Total     
                                Equity        Assets    
Company                 Ticker  ($MM)          ($MM)     
-------                 ------  ------------  -------  
Alpargatas SAIC          ALPA     (262.27)     646.43
Bally Total Fitn         BFT       (1,430)     452     
Centennial Comm          CYCL      (1,069)   1,409  
Foster Wheeler           FWLT        (239)   2,032     
Kuala                    ARTE3     (33.57)      11.86
Kuala-Pref               ARTE4     (33.57)      11.86
Bombril                  BOBR3    (554.69)     488.38
Bombril-Pref             BOBR4    (554.69)     488.38
CIC                      CIC    (1,883.69)  22,312.12
Maxxam Inc.              MXM         (661)   1,048     
Telefonica Holding       CITI   (1,481.31)     307.89
Telefonica Holding       CITI5  (1,481.31)     307.89
IMPSAT Fiber Networks    IMPTQ     (17.16)     535.01
Paranapanema SA          PMAM3    (214.08)   2,847.86
Paranapanema-PREF        PMAM4    (214.08)   2,847.86
TEKA                     TEKA3    (180.22)     557.47
TEKA-PREF                TEKA4    (180.22)     557.47


   
                         ***********


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

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

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

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

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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 * * *