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        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Thursday, August 3, 2006, Vol. 7, Issue 153

                         Headlines

A R G E N T I N A

BANCO HIPOTECARIO: Extends Tender Offer Deadline to Sept. 18
BANCO MACRO: Sets General Shareholders Meeting on Sept. 1
BANCO PATAGONIA: Places ARS14.2 Million Financial Securitization
CLISA: Fitch Arg Holds Junk & Default Ratings on US$220M Notes
DROGUERIA MAGNA: Fitch Arg Puts C- Rating on US$5-Million Notes

FIDEICOMISOS AVG: Evaluadora Rates US$180,000 Debt at C
FIDEICOMISOS CREDICUOTAS: S&P Arg Puts raD Rating on Certs.
FIDEICOMISOS GALTRUST II: Fitch Arg Rates US$16-Mil. Debt at C
FIDEICOMISOS GALTRUST II: Fitch Arg Rates US$46-Mil Debt at CCC
FIDEICOMISOS GALTRUST V: Fitch Arg Rates US$15.7-Bil. Debt at CC

GADAR SRL: Verification of Proofs of Claim Is Until Sept. 5
GONZALO FINDLAY: Claims Verification Deadline Is Set for Sept. 6
OBRAS Y CONSTRUCCIONES: Individual Reports Submission Is Aug. 29
PAN AMERICAN: Fitch Rates US$250MM Proposed Issuance at BB-
PROVINCIA DEL CHACO: Fitch Arg Rates US$50-Mil. Debt at D(arg)

SAFEWAY SA: Trustee Verifies Proofs of Claim Until Aug. 31
SUCESION DE BRANDO: Last Day for Claims Verification Is Sept. 8
TELEFONICA ARGENTINA: Wants Reforms on Telecommunications Law

* ARGENTINA: Fitch Upgrades Currency Issuer Rating to B from B-

B A H A M A S

COMPLETE RETREATS: Wants to Pay US$140K of Foreign Vendor Claims
COMPLETE RETREATS: Can Pay Wages & Benefits to 170 Employees
PINNACLE ENT: Second Quarter Revenues Up 51% to US$228.8 Mil.

B A R B A D O S

SECUNDA INT: Commences Cash Tender Offer of Floating Rate Notes

B E L I Z E

* BELIZE: Opposition Party Says Nation in Serious Debt Crisis

B E R M U D A

FOSTER WHEELER: Names David Parham Executive VP of Global Sales
REFCO INC: US Trustee Reconstitutes Official Creditors Committee
REFCO: Chapter 11 Trustee Hires Capstone as Financial Advisor
SCOTTISH RE: Holding 2nd Quarter Earnings Conference Call Tom.
SCOTTISH RE: Expects to Report US$130 Mil. Second Quarter Loss

SCOTTISH RE: Fitch Downgrades & Places Ratings on NegWatch
SCOTTISH RE: Responds to Agencies' Rating Actions on July 31

B O L I V I A

* BOLIVIA: Comibol Says Cerro Rico Has Large Silver Reserves

B R A Z I L

AES TIETE: Moody's Upgrades Foreign Currency Rating to B1
BANCO ABN AMRO: Moody's Reviews B1 Rating for Possible Upgrade
BANCO BARCLAYS: Moody's Reviews B1 Rating for Likely Upgrade
BANCO BMG: Moody's Reviews B1 Rating for Possible Upgrade
BANCO BONSUCESSO: Moody's Reviews B1 Rating & May Upgrade

BANCO BRADESCO: Moody's Reviews B1 Rating for Possible Upgrade
BANCO CITIBANK: Moody's May Upgrade B1 Rating After Review
BANCO CRUZEIRO: Moody's Reviewing B1 Rating & May Upgrade
BANCO DO BRASIL: Moody's Reviews B1 Rating for Likely Upgrade
BANCO DO ESTADO: Moody's Reviews B1 Rating & May Upgrade

BANCO GMAC: Moody's Reviews B1 Rating for Possible Upgrade
BANCO INDUSTRIAL: Moody's Reviews B1 Rating for Likely Upgrade
BANCO ITAU: Moody's May Upgrade B1 Rating After Review
BANCO ITAU (CI): Moody's Reviews B1 Rating for Likely Upgrade
BANCO NACIONAL: Moody's May Upgrade B1 Rating After Review

BANCO NOSSA: Moody's Reviews B1 Rating for Possible Upgrade
BANCO PANAMERICANO: Moody's Places B1 Rating Under Review
BANCO SAFRA: Moody's Reviews B1 Rating for Possible Upgrade
BANCO SANTANDER: Moody's Reviews B1 Rating for Likely Upgrade
BANCO SCHAHIN: Moody's Places B1 Rating Under Review

BANCO SUDAMERIS: Moody's Reviews B1 Rating for Possible Upgrade
BANCO SUMITOMO: Moody's May Upgrade B1 Rating After Review
BANCO VOTORANTIM: Moody's Reviews Low B Ratings & May Upgrade
BES INVESTIMENTO: Moody's Reviews B1 Rating for Likely Upgrade
CAIXA ECONOMICA: Moody's Reviews B1 Rating for Possible Upgrade

COMPANHIA DE BEBIDAS: Moody's Reviews Ba2 Rating & May Upgrade
COMPANHIA ENERGETICA: Gov't Says It Will Not Privatize Firm
COMPANHIA ENERGETICA: Moody's Reviews Ratings & May Upgrade
HSBC BRASIL: Moody's Reviews B1 Rating for Possible Upgrade
MRS LOGISTICA: Won't Tap Stock Markets to Raise Investment Funds

PETROLEO BRASILEIRO: Moody's Reviews Ba2 Rating & May Upgrade
TRANSAX INT'L: Medlink Commences Contract With Cabesp
UNIAO DE BANCOS: Moody's Reviews B1 Rating for Likely Upgrade

* CITY OF CURITIBA: Moody's Reviews Ba2 Rating & May Upgrade
* BRAZIL: Moody's Reviews Low B Ratings for Possible Upgrade

C A Y M A N   I S L A N D S

AAD BALANCED: Final Shareholders Meeting Is Set for Aug. 15
ANTHRACITE (FRM): Final Shareholders Meeting Is on Aug. 21
ANTHRACITE (JR-32): Last Shareholders Meeting Is Set for Aug. 21
ANTHRACITE (R-1): Last Shareholders Meeting Will be on Aug. 21
ANTHRACITE (R-3): Final Shareholders Meeting Is on Aug. 21

BRUNSWICK (ONE): Filing of Proofs of Claim Is Until Aug. 24
BRUNSWICK (SEVEN): Proofs of Claim Filing Is Until Aug. 24
EURUS CAPITAL: Creditors Must File Proofs of Claim by Aug. 24
GLENDALE INVESTMENTS: Proofs of Claim Must be Filed by Aug. 24
GOOOS AIRCRAFT: Last Day to File Proofs of Claim Is on Aug. 24

GRAPHITE INVESTMENTS: Last Shareholders Meeting Is on Aug. 21
PACIFIC VIEW: Deadline for Proofs of Claim Filing Is on Aug. 24
SUNFISH INVESTMENTS: Proofs of Claim Must be Filed by Aug. 24
TANZANITE FINANCE: Final Shareholders Meeting Is Set for Aug. 21
VERTEX CHINA: Last Day to File Proofs of Claim Is on Aug. 24

C H I L E

COEUR D'ALENE: Net Income Reaches US$32.6MM in Second Quarter

C O L O M B I A

* COLOMBIA: Postpones Airport Concession Bidding Twice

C U B A

* CUBA: Launches Generator Complex in Holguin

D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Prepares Bill for Free Trade Pact with US

E C U A D O R

* ECUADOR: Regulator to Ink Renewal Contract with Peruvian Firm
* ECUADOR: Pacifictel Inks Partnership Agreement with Alegro PCS

E L   S A L V A D O R

* EL SALVADOR: Oil Bill Could Reach US$1.1 Billion This Year
* EL SALVADOR: State Firm Selling Bidding Rules for El Chaparral

H A I T I

* HAITI: UN Says Country Has Foundations for Recovery

H O N D U R A S

* HONDURAS: Will Conduct Petroleum Bidding in September

J A M A I C A

SUGAR COMPANY: Jamaica Labour Party Wants Firm's Board Sacked

M E X I C O

ALERIS INT'L: Closes Buy on Corus' Downstream Aluminum Business
ALERIS INT'L: Completes Tender Offer on 10-3/8% & 9% Sr. Notes
DRESSER INC: Moody's Lowers Corp. Family Rating to B1 from Ba3
GENERAL MOTORS: Revising Second Qtr. Financials Due to GMAC Sale
KERR-MCGEE: Hart-Scott-Rodino Waiting Period Expired on July 31

NORTEL NETWORKS: Declares Dividends for Class A Pref. Shares
WILLIAMS SCOTSMAN: Earns US$11.6 Mil. in Second Quarter of 2006

P E R U

* PERU: IMF Completes Final Reviews on Stand-by Arrangement
* PERU: US Senate Committee Approves Free Trade Pact with Nation

P U E R T O   R I C O

ADELPHIA COMMS: Highfields & Tudor in Settlement Talks
ADELPHIA COMMS: Time Warner to File for IPO of Cable TV Unit

T R I N I D A D   &   T O B A G O

MIRANT CORP: Inks San Francisco Power Contract With Pacific Gas

U R U G U A Y

* URUGUAY: ENCE Awaits Resolution of Env't Impact Conflict

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Unit Inks MOU with Andrade Gutierrez

* VENEZUELA: Bandes Uruguay Begins Operations
* VENEZUELA: Threatens to Cease Oil Shipping to US

* Large Companies with Insolvent Balance Sheets


                          - - - - -  


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


BANCO HIPOTECARIO: Extends Tender Offer Deadline to Sept. 18
------------------------------------------------------------
Banco Hipotecario S.A. has extended the Expiration Date of its
offer to purchase for cash all of its outstanding

   -- Series 1 10% Notes due 2003,
   -- Series 3 10.625% Notes due 2006,
   -- Series 4 13% Notes due 2008,
   -- Series 6 12.25% Notes due 2002,
   -- Series 16 12.625% Notes due 2003,
   -- Series 17 9% Notes due 2002,
   -- Series 22 8.75% Notes due 2002,
   -- Series 23 10.75% Notes due 2004,
   -- Series 24 9% Notes due 2005, and
   -- Series 25 8% Notes due 2005.

The Bank anticipates that Eligible Notes validly tendered prior
to August 1 will be purchased by the Bank on August 4, 2006.

The Expiration Date for the Tender Offer has been extended and,
as a result, the Tender Offer will now expire at 11:59 p.m., New
York City time, on September 18, 2006.
    
Holders who validly tender Eligible Notes on or after
August 1, 2006, but prior to the Expiration Date, as extended,
will not have withdrawal rights, unless the Bank materially
modifies the terms of the Tender Offer as described in the Offer
to Purchase.
    
These amounts of Eligible Notes had been tendered in the Tender
Offer:

             U.S. Dollar-Denominated Eligible Notes


Series   Description   Aggregate Principal       Aggregate
                       Amount Outstanding    Principal Amount
                                                 Tendered

1  10% Notes
        due 2003       US$11,217,000         US$1,397,000

3      10.625%
        Notes
        due 2006         US$707,000           US$347,000

4      13% Notes
        due 2008         US$540,000           US$100,000

6      12.25%
        Notes
        due 2002         US$679,000           US$529,000

16 12.625%
         Notes
         due 2003       US$9,931,000         US$1,176,000

24 9% Notes
         due 2005      US$5,359,000         US$1,298,150

           Total       US$28,433,000         US$4,847,150


               EUR-Denominated Eligible Notes


Series   Description   Aggregate Principal       Aggregate
                       Amount Outstanding    Principal Amount
                                                 Tendered
17 9% Notes
         due 2002       EUR710,000            EUR35,000
   
22 8.75%
         Notes
         due 2002       EUR125,000              [None]

23 10.75%
         Notes
         due 2004     EUR5,081,000          EUR 422,000

25       8% Notes
         due 2005     EUR4,445,213          EUR 808,000

           Total       EUR10,361,213       EUR 1,265,000

The Tender Offer was not made to residents of the Republic of
Italy, as the Bank did not seek the regulatory approval
necessary to extend the offer to Italian Holders of Eligible
Notes.  The Bank is currently evaluating whether to commence a
tender offer in Italy for Eligible Notes that will remain
outstanding following settlement of the Tender Offer, with the
commencement of such an offer being conditioned on receipt of
approval from the Commissione Nazionale per le Societa e la
Borsa.

Citigroup Global Markets Inc. is acting as the Dealer Manager
for the Tender Offer, Dexia Banque Internationale a Luxembourg
is acting as the Luxembourg Depository, Citibank Agency & Trust
is acting as the Depositary, and Global Bondholder Services
Corporation is acting as the Information Agent.  Questions may
be directed to:

       Citigroup Global Markets Inc.
       Attn: Liability Management Group
       Tel: (800) 558-3745 for toll free
            +1-212-723-6108 for collect

Requests for documents should be directed to the information
agent at:

        Global Bondholder Services Corporation
        Tel: (866) 873-7700 for toll free
             +1-212-430-3774 for collect

Banco Hipotecario S.A. is formed under the laws of Argentina in
September 1997 to continue the business of Banco Hipotecario
Nacional.  The Bank distributes its products through a network
of 24 branches and 14 sales offices located throughout
Argentina.

                        *    *    *

Standard & Poor's Ratings Services raised on March 26, 2006, the
foreign and local currency counterparty credit ratings on Banco
Hipotecario S.A. to B from B-.  This rating action followed the
upgrade on the Republic of Argentina.

S&P raised the rating on Banco Hipotecario one notch to
'B/Stable/--', in tandem with the sovereign upgrade on
Argentina, reflecting the close linkage between the credit
quality of the sovereign and that of its financial system.

                        *    *    *

On June 4, 2006, Moody's Investors Service took these rating
actions on Banco Hipotecario S.A.:

   -- Bank Financial Strength Rating: upgraded to E+ from E,
      with positive outlook;

   -- Long-term global local-currency deposit rating: Ba3 with
      stable outlook;

   -- Short-term global local-currency deposit rating: Not Prime
      with stable outlook; and

   -- National scale rating for foreign currency deposits:
      Ba1.ar with stable outlook.

Moody's affirmed these ratings:

   -- National scale rating for local-currency deposits: Aa1.ar
      with stable outlook;

   -- Long-term foreign currency-deposit rating: Caa1 and

   -- Short-term foreign currency-deposit rating: Not Prime.

                        *    *    *

Fitch Ratings assigned these ratings on May 14, 2006, to Banco
Hipotecario S.A.:

   -- long term Issuer Default Ratings 'B-';
   -- foreign and local currency short term IDRs 'B';
   -- individual rating 'D'; and
   -- support rating '5'.

Fitch said the rating outlook is stable.


BANCO MACRO: Sets General Shareholders Meeting on Sept. 1
---------------------------------------------------------
Banco Macro Bansud S.A.'s Board of Directors called for a
General Shareholders' Meeting at 11:00 a.m. on
Sept. 1, 2006, at:

                Sarmiento 447
                Buenos Aires, Argentina

The Chairman of the Board of Directors, Jorge H. Brito,
expresses that given the favorable local and international
macro-economic context and the prospects of growth of the
banking system generally and of the bank in particular, it would
be advisable for the company to call a shareholders' meeting in
order to discuss the creation of a global program for the
issuance of corporate bonds.

These agenda will be taken during the meeting:

   1) Appoint two shareholders to sign the Minutes of the
      Shareholders' Meeting.

   2) Evaluate the creation of a global program for the
      issuance of simple short, medium or long-term notes,
      either subordinated or not, secured or unsecured,
      under the provisions of Law 23,576, as amended by Law
      23,962, and other applicable regulations, for up to a
      maximum outstanding amount anytime during the term of
      the program of US$400,000,000, or its equivalent in
      other currencies, under which the company may issue
      different classes and/or series of notes expressed in
      US dollars or other currencies and reissue any classes or
      series that may be redeemed in the future.

   3) Evaluate how the proceeds raised as a result of the
      placement of the notes to be issued under the Program
      will be applied.

   4) Evaluate the request of authorization:

         -- for the creation of the Program before the
      Comision Nacional de Valores and/or any
            applicable similar entities abroad; and

         -- of the Program for the possible listing and/or
            negotiation of the notes issued under the
            Program, in the Buenos Aires Stock Exchange, the
            Mercado Abierto Electronico S.A. or any other
            stock exchange or self-regulated market of the
            Republic of Argentina and/or abroad as the Board
            of Directors or other authorized persons may from
            time to time determine.

   5) Delegate the necessary powers to the Board of Directors
      so that it may:

         a) determine and establish all terms and conditions
            of the Program, of each of the series that the
            company may issue from time to time and of the
            notes to be issued under the Program and not
            expressly provided for by this Shareholders'
            Meeting, including, without limitation:

               -- the amount (within the maximum amount
                  authorized by this Shareholders' Meeting),

               -- time of issuance,

               -- term,
            
               -- price,

               -- placement method and payment terms,

               -- the interest rate,

               -- the possibility that such corporate bonds be
                  represented by certificates or be simply
                  registered as book-entry notes
                  (escriturales), or in the form of a Global
                  Certificate,

               -- that they be issued on a registered or bearer
                  form,

               -- that they be issued in one or several classes
                  and/or series,

               -- that they be listed or negotiated in stock
                  exchanges and/or over-the-counter markets
                  within the Republic of Argentina and/or
                  abroad, and

               -- any other condition that the Board may, in
                  its discretion, deem necessary to determine;

         b) carry out all the necessary acts before the CNV
            and/or any similar applicable foreign entities in
            order to obtain the authorization for the creation
            of the Program;

         c) carry out all the necessary acts before the Central
            Bank of the Republic of Argentina or BCRA, the MAE
            and/or any other stock exchange or self-regulated
            market of the Republic of Argentina and/or abroad
            in order to obtain the authorization of the Program
            for the possible listing and/or negotiation of the
            notes issued under the Program;

         d) carry out, if applicable, the negotiation with Caja
            de Valores S.A. or the entity provided for in the
            relevant Pricing Supplement, of the terms and
            conditions (including the determination of the fees
            for its services) for it to act as payment and/or
            register agent and, eventually, as depositary of the
            global certificate; and

         e) hire one or more independent notes rating companies
            that shall be different as to the rating of the
            Program and/or the series of notes to be issued
            under the Program.
   
   6) Authorize the Board of Directors to sub-delegate to one
      or more of its members, or to the person such members
      may deem appropriate, the exercise of the powers listed
      in paragraph 5) above.

   7) Evaluate the transaction with a related party, regarding
      the sale of the Certificates representing a Participating
      Interest in Puerto Madero Siete Trust, in favor of the
      Director Fernando A. Sansuste.
      
In order to attend the Shareholders' Meeting, all Shareholders
must deposit evidence or proof of their book-entry shares issued
for such purpose by Caja de Valores S.A. and provide sufficient
evidence of identity and legal capacity, as the case may be, at:

                Sarmiento 447
                Buenos Aires, Argentina

from 10:00 a.m. to 3:00 p.m., by Aug. 28, 2006.

All Shareholders that are foreign companies must register with
the Public Registry of Commerce (Registro Publico de Comercio)
of the City of Buenos Aires under the terms of section 123 of
the Business Company Law No. 19,550, as amended.

Under the provisions set in the rules issued by the CNV, the
owners of the shares must include these information in the
notice of attendance to the Shareholders' Meeting:

    -- owner's name and last name or complete corporate name,
    -- identity card type and
    -- number of individuals or,

if the owner of the shares is a legal entity, then it must
furnish all registration data expressly stating the registry in
which the legal entity was registered, authorized and domiciled.

All persons attending the Shareholders' Meeting in the name and
on behalf of the owner of the shares must provide the same
information.

                        *    *    *

On Dec. 13, 2005, Moody's Investors Service affirmed the credit
ratings of Banco Macro:

    -- Bank Financial Strength Rating: E -- Positive Outlook
    -- Long- Term Global Local Currency Deposits: Ba3
    -- Short -Term Global Local Currency Deposits: Not Prime
    -- National Scale Rating for Local Currency Deposits: Aa2.ar
    -- Long -Term Foreign Currency Deposits: Caa1
    -- Short -Term Foreign Currency Deposits: Not Prime
    -- National Scale Rating for Foreign Currency Deposits:
       Ba1.ar.


BANCO PATAGONIA: Places ARS14.2 Million Financial Securitization
----------------------------------------------------------------
Banco Patagonia SA said in a statement that it has placed a new
ARS14.2 million financial securitization at an 11.6% hurdle
rate.

The bank told Business News Americas that investor demand
reached ARS19.7 million or 1.73 times the offer for the Lombardi
I financial securitization.

Banco Patagonia became Argentina's fifth largest locally owned
private bank through its purchase of Lloyds TSB Argentina in
late 2004.  The bank operates through 139 branches and has 202
ATM machines.

Moody's Rating Services assigned these ratings on Banco
Patagonia:

    -- long-term domestic bank deposits at Ba3,
    -- short-term domestic bank deposits at NP,
    -- long-term foreign bank deposits at Caa1,
    -- short-term foreign bank deposits at NP,
    -- bank financial strength at E+, and
    -- the outlook is positive.


CLISA: Fitch Arg Holds Junk & Default Ratings on US$220M Notes
--------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo SA maintained its ratings
on Compania Latinoamericana de Infraestructura y Servicios' bond
issues:

  -- Obligaciones Negociables for US$120 million, CCC (arg)
  -- ONs for US$100 million, D (arg).

The rating action was based on the company's financial status at
Mar. 31, 2006.


DROGUERIA MAGNA: Fitch Arg Puts C- Rating on US$5-Million Notes
---------------------------------------------------------------
Drogueria Magna S.A.'s Obligaciones Negociables Simples for
US$5,000,000 is rated C- by the Argentine arm of Fitch.  The
rating action was based on the company's financial status at
Apr. 30, 2006.


FIDEICOMISOS AVG: Evaluadora Rates US$180,000 Debt at C
-------------------------------------------------------
The Evaluadora Latinoamericana rates Fideicomisos Financieros
AVG Plan's Certificados de Participacion Clase B for US$180,000
at C.  


FIDEICOMISOS CREDICUOTAS: S&P Arg Puts raD Rating on Certs.
-----------------------------------------------------------
The Argentine arm of Standard & Poor's rated Fideicomisos
Financieros Credicuotas III's Certificado de Participacion Clase
C for US$5,897,876 at raD.  


FIDEICOMISOS GALTRUST II: Fitch Arg Rates US$16-Mil. Debt at C
--------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo SA rates Fideicomisos
Financieros Galtrust II's Certificados de Participacion for up
to US$16 million at C.  The rating action was based on the
company's financial status at July 31, 2006.  


FIDEICOMISOS GALTRUST II: Fitch Arg Rates US$46-Mil Debt at CCC
---------------------------------------------------------------
Fideicomisos Financieros Galtrust II's U$$46-million debt is
rated CCC by the Argentine arm of Fitch.  The rating action was
based on the company's financial status at July 31, 2006.


FIDEICOMISOS GALTRUST V: Fitch Arg Rates US$15.7-Bil. Debt at CC
----------------------------------------------------------------
Fideicomisos Financieros Galtrust V's Certificados de
Participacion for up to US$15,700,000,000 is rated CC by Fitch
Argentina Calificadora de Riesgo SA.  The rating action was
based on the company's financial status at July 31, 2006.


GADAR SRL: Verification of Proofs of Claim Is Until Sept. 5
-----------------------------------------------------------
Court-appointed trustee Luis Antonio Malanchino will verify
creditors' proofs of claim against bankrupt company Gadar S.R.L.
until Sept. 5, 2006.  

Mr. Malanchino will present the validated claims in court as
individual reports on Oct. 17, 2006.  A court in Casilda, Santa
Fe, will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Gadar and its creditors.

Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.

A general report that contains an audit of Gadar's accounting
and banking records will follow on Nov. 28, 2006.

Mr. Malanchino is also in charge of administering Gadar's assets
under court supervision and will take part in their disposal to
the extent established by law.

The debtor can be reached at:

    Gadar S.R.L.
    San Martin 2056, Arequito
    Santa Fe, Argentina

The trustee can be reached at:

    Luis Antonio Malanchino
    Casado 2123, Casilda
    Santa Fe, Argentina


GONZALO FINDLAY: Claims Verification Deadline Is Set for Sept. 6
----------------------------------------------------------------
Mariana Nadales, the court-appointed trustee for Gonzalo Findlay
Wilson y Asociados S.A.'s bankruptcy proceeding, will verify
creditors' proofs of claim until Sept. 6, 2006.

Ms. Nadales will present the validated claims in court as
individual reports on Oct. 20, 2006.  A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by gonzalo Findlay and its creditors.

Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.

A general report that contains an audit of Gonzalo Findlay's
accounting and banking records will follow on Dec. 1, 2006.

Ms. Nadales is also in charge of administering Gonzalo Findlay's
assets under court supervision and will take part in their
disposal to the extent established by law.

The debtor can be reached at:

    Gonzalo Findlay Wilson y Asociados S.A.
    Tucuman 1455
    Buenos Aires, Argentina

The trustee can be reached at:

    Mariana Nadales
    Hipolito Yrigoyen 1349
    Buenos Aires, Argentina


OBRAS Y CONSTRUCCIONES: Individual Reports Submission Is Aug. 29
----------------------------------------------------------------
Juan Antonio Martinez, the court-appointed trustee for Obras y
Construcciones Patagonicas S.R.L.'s bankruptcy proceeding, will
present individual reports in court on Aug. 29, 2006.

A court in Comodoro Rivadavia, Chubut, will determine if the
creditors' claims are admissible, taking into account Mr.
Martinez' opinion and the objections and challenges raised by
Obras y Construcciones and its creditors.  Inadmissible claims
may be subject for appeal in a separate proceeding known as an
appeal for reversal.

A general report that contains an audit of Obras y
Construcciones' accounting and banking records will follow on
Oct. 10, 2006.

Mr. Martinez verified creditors' proofs of claim until
July 3, 2006.

The debtor can be reached at:

    Obras y Construcciones Patagonicas S.R.L.
    Francisco Segui 1849, Rada Tilly
    Chubut, Argentina

The trustee can be reached at:

    Juan Antonio Martinez
    Italia 846, Comodoro Rivadavia
    Chubut, Argentina


PAN AMERICAN: Fitch Rates US$250MM Proposed Issuance at BB-
-----------------------------------------------------------
Fitch Ratings has assigned a foreign currency rating of 'BB-' to
the proposed issuance of US$250 million by Pan American Energy
LLC, Argentine Branch (Argentine Branch) under its US$1 billion
medium-term note program.  The notes will be guaranteed by Pan
American Energy LLC. The proceeds from the issuance will be
applied to the capital expenditure program and to refinance
existing debt.  The Rating Outlook is Stable.

Fitch continues to rate PAE's local currency Issuer Default
Rating 'BB' and its foreign currency Issuer Default Rating 'B+'.  
The issue rating of 'BB-' reflects a recovery expectation in the
'R3' category (indicating a recovery estimation of 51-70%).  The
FC IDR is above the 'B' country ceiling rating of Argentina and
reflects the ability and willingness of the issuer to remain
current on its foreign currency debt obligations, even in the
event of transfer and convertibility restrictions.

PAE's rating incorporates its solid credit profile, significant
oil and gas reserves, and ability to retain a material amount of
export revenues offshore.  The rating continues to be
constrained by the potential for interference in hydrocarbon
operations, inherent risks of commodity price volatility, and
small size relative to BP's (parent company) consolidated
operations.

PAE's ability to generate sufficient cash flow in order to repay
dollar denominated debt, coupled with its right to maintain 70%
of export proceeds outside Argentina, has partially mitigated
the risks associated with having the majority of its assets and
cash-generating activities concentrated in the country.  
Nevertheless, the rating of PAE remains constrained by the risks
of operating in Argentina.

PAE reported robust credit protection measures that have
benefited from the global increase in the price of oil, although
limited by the export taxes.  Through March 2006, the company
reported interest coverage of 37x, net financial debt-to-EBITDA
of 1.8x, and total financial debt-to-capitalization of 17.5%,
which are strong for the rating category.

PAE is owned 60% by BP and 40% by Bridas and has been the
vehicle for the exploration and production of oil and gas as
well as mid- and downstream gas activities in the southern cone.  
Historically, PAE's main cash generating assets were located in
Argentina.  Cerro Dragon (San Jorge Basin) oil production
accounts for more than 75% of total oil production while gas
production shows a more diversified pattern. PAE also benefits
from BP and Bridas' expertise in both oil and gas businesses.


PROVINCIA DEL CHACO: Fitch Arg Rates US$50-Mil. Debt at D(arg)
--------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo SA rated Provincia del
Chaco's titles of debt guaranteed with resources of Federal
Coparticipation for US$50,000,000 at D(arg).  The rating action
was based on the company's default on Jan. 21, 2000.


SAFEWAY SA: Trustee Verifies Proofs of Claim Until Aug. 31
----------------------------------------------------------
Court-appointed trustee Jose Luis Abuchid will verify creditors'
proofs of claim against bankrupt company Safeway S.A. until
Aug. 31, 2006.  

Mr. Abuchid will present the validated claims in court as
individual reports on Oct. 11, 2006.  Court No. 9 in Buenos
Aires will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Safeway and its creditors.

Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.

A general report that contains an audit of Safeway's accounting
and banking records will follow on Nov. 17, 2006.

Safeway's creditors did not accept the settlement plan that the
company presented, prompting Court No. 9 to convert its
insolvency case into a bankruptcy proceeding.  

According to the Argentine bankruptcy law, Mr. Abuchid is also
in charge of administering Safeway's assets under court
supervision and will take part in their disposal to the extent
established by law.

Clerk No. 17 assists the court in the case.

The debtor can be reached at:

    Safeway S.A.
    Juan B. Justo 9250
    Buenos Aires, Argentina

The trustee can be reached at:

    Jose Luis Abuchid
    Avenida de los Incas 3624
    Buenos Aires, Argentina


SUCESION DE BRANDO: Last Day for Claims Verification Is Sept. 8
---------------------------------------------------------------
Mirta Ana Calfun de Bendersky, the court-appointed trustee for
Sucesion de Brando Luis Jose's reorganization proceeding, will
verify creditors' proofs of claim until Sept. 8, 2006.

Ms. Bendersky will present the validated claims in court as
individual reports on Oct. 20, 2006.  A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Sucesion de Brando and its creditors.

Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.

A general report that contains an audit of Sucesion de Brando's
accounting and banking records will follow on Nov. 30, 2006.

On April 20, 2007, Sucesion de Brando's creditors will vote on a
settlement plan that the company will lay on the table.

The trustee can be reached at:

    Mirta Ana Calfun de Bendersky
    Humahuaca 4165
    Buenos Aires, Argentina


TELEFONICA ARGENTINA: Wants Reforms on Telecommunications Law
-------------------------------------------------------------
Juan Waehner, the general manager of Telefonica de Argentina,
told El Cronista that the company expects proposed changes on
telecommunications legislation to allow all operators to offer
triple play services.

"[The new law] must have a broad range of coverage.  We have
been told the new law will include the convergence issue in
order to facilitate investments and the development of new
technologies in the country," Mr. Waehner was quoted by El
Cronista as saying.

Mr. Waehner told Business News Americas, "We can offer voice and
broadband at the moment but cannot offer other services.  
However, other firms at the moment can offer voice, broadband
and TV."

Telefonica de Argentina recently said that once authorities
agree to implement regulatory changes, it would abandon a
lawsuit against the Argentine government, BNamericas states.

Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina S.A. -- http://www.telefonica.com.ar/-- provides    
telecommunication services, which include telephony business
both in Spain and Latin America, mobile communications
businesses, directories and guides businesses, Internet, data
and corporate services, audiovisual production and broadcasting,
broadband and Business-to-Business e-commerce activities.

                        *    *    *

As reported in the Troubled Company Reporter on April 27, 2006,
Fitch Ratings made these changes to Telefonica de Argentina
S.A.:

   Local Currency

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

   US$771 million, Senior Unsecured Notes due 2006, 2007, 2008,
   2010 and 2011

     -- Previous Rating: 'B'
     -- New IDR: 'B+/RR3'

                        *    *    *

As reported in the Troubled Company Reporter on May 12, 2006,
Standard & Poor's Ratings Services said that its ratings on
Telefonica de Argentina S.A. or TASA (B/Stable/--) would not be
affected by the recent announcement of the approval to acquire
Telefonica Data Argentina S.A., a company that provides
telecommunication and IT solutions to the corporate sector in
Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on May 29, 2006,
Moody's Investors Service placed these ratings on Telefonica de
Argentina, S.A.:

   -- Corporate Family Rating (foreign currency): to B2 from
      B3 with stable outlook;

   -- Foreign currency issuer rating: to B2 from B3 with
      stable outlook; and

   -- Senior Unsecured Rating (foreign currency): to B2 from
      B3 with stable outlook.


* ARGENTINA: Fitch Upgrades Currency Issuer Rating to B from B-
---------------------------------------------------------------
Fitch Ratings has upgraded these sovereign ratings for
Argentina:

   -- Performing bonds in foreign and local currency governed
      by Argentine law to 'B' from 'B-';

   -- Performing bonds in foreign currency governed by foreign
      law to 'B-' from 'CCC+';

   -- Long-term Local Currency Issuer Default Rating to 'B'
      from 'B-'; and

   -- Country Ceiling to 'B+' from 'B'.

The Rating Outlook on the LTLC IDR is Stable.

The ratings on bonds currently in default that were not tendered
in last year's distressed debt exchange are unchanged at
'CC/Recovery Rating 4' for senior unsecured notes and 'CCC-/RR3'
for collateralized Brady bonds.

The Long-term Foreign Currency Issuer Default Rating remains at
Restrictive Default.

The rating actions reflect reductions in government financing
requirements and favorable near-term economic prospects.  Debt
amortization requirements through end-2007 are modest compared
with those of other speculative grade sovereigns, and
refinancing them with new local market issues and proceeds from
an expected budget surplus appears feasible.  Small as its near-
term requirements are, though, Argentina could still encounter
refinancing difficulties if international market conditions
deteriorate sharply because most demand for local issues has
come from non-residents.

"Our confidence in Argentina's creditworthiness over the next 18
months has increased, though uncertainty about how the credit
will evolve in 2008 and beyond constrains the rating from moving
higher at this time," said Morgan C. Harting, Fitch Senior
Director and lead sovereign analyst for Argentina.  General
government debt is forecast to decline from 80% of GDP at end-
2006 to about 75% by end-2007 because of continued economic
growth and fiscal balance.  But economic growth is expected to
slow to about 3% in 2008 as the effects of heterodox economic
policies become more evident on the supply side.

"As economic growth slows, the government balance is likely to
shift from a surplus into deficit, and the trend improvement
we've seen in debt dynamics may stall unless there is a more
appropriate policy response," Mr. Harting said.

Argentina's public and external debt ratios are among the
highest across rated sovereigns, even after the large haircut
obtained from bondholders in last year's debt exchange.  Within
the 'B' range, only Lebanon (LTFC IDR 'B-') and Cape Verde (LTFC
IDR 'B+') are expected to have higher end-2006 ratios of general
government debt-to-GDP. Argentina's net external debt relative
to broad exports is higher than for all other speculative grade
sovereigns save Malawi (LTFC IDR 'CCC').  External liquidity is
improving as international reserves grow, but it is still worse
than for most 'B' sovereigns.

"Future changes in the ratings are likely to be driven by
changes in economic policies," said Mr. Harting.  "If
authorities move to allow prices and resource allocation to be
determined more by market forces, and if they improve
perceptions about the stability of contracts and the rule of
law, economic prospects could improve markedly."

Price controls and export restrictions have been imposed to
contain inflation pressures, though these have had a deleterious
effect on investment in the industrial sector and inflation has
nonetheless reached one of the highest rates of all rated
sovereigns.  Ongoing legal disputes have also inhibited
investment, particularly in utilities and by foreign investors.  
Undoing these unorthodox microeconomic policies would underpin
more effective monetary policy management and also support the
credit.  Longer term fiscal sustainability would also be
supported by reducing the Treasury's reliance on distortionary
export and financial transactions taxes.

Argentina must normalize its relations with creditors in order
to bring its LTFC IDR out of Restrictive Default.  Fitch would
remove the 'RD' if Argentina were to open a new exchange offer
for holdouts that was broadly accepted or if it could resume
regular bond issues in international capital markets without
incurring the risk that proceeds or debt service would be
attached by foreign courts.  "Having regular access to the
international markets again would broaden the government's
potential sources of financing and be an important support for
our assessment of fiscal sustainability."




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


COMPLETE RETREATS: Wants to Pay US$140K of Foreign Vendor Claims
----------------------------------------------------------------
Complete Retreats LLC and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Connecticut for authority
to pay US$140,000 to the foreign creditors whom they have
outstanding agreements with.

The Debtors have foreign creditors in Abaco, Bahamas; Cabo San
Lucas, Mexico; Nevis, West Indies; and the Dominican Republic,
among other foreign locations.

Nicholas H. Mancuso, Esq., at Dechert LLP, in Hartford,
Connecticut, relates that certain Foreign Creditors have already
taken, or threatened to take, actions that could cripple the
Debtors' operations, including refusing to provide essential
goods and services to the Debtors or their affiliates until
their claims are paid.  In many instances, the Debtors would not
be able to locate replacement providers in time to avoid
disrupting service to their members, Mr. Mancuso says.

The Debtors also ask the Court for permission to require, to the
extent practicable and at their discretion, any particular
Foreign Creditor to provide goods or services during the course
of their bankruptcy cases on the same terms as those provided
prepetition or on other acceptable terms.

                    U.S. Trustee Objects

The United States Trustee says that the Debtors should provide
him and the Court with a list of the creditors to be paid for in
camera review as soon as possible.

                  About Complete Retreats

Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses.  In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members.  Complete Retreats and its debtor-
affiliates filed for chapter 11 protection on July 23, 2006
(Bankr. D. Conn. Case No. 06-50245).  Nicholas H. Mancuso, Esq.
and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors
in their restructuring efforts.  No estimated assets have been
listed in the Debtors' schedules, however, the Debtors disclosed
US$308,000,000 in total debts.  (Complete Retreats Bankruptcy
News, Issue No. 2; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


COMPLETE RETREATS: Can Pay Wages & Benefits to 170 Employees
------------------------------------------------------------
Complete Retreats LLC and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Connecticut for permission
to:

    (a) continue to pay prepetition wages, salaries,
        commissions, and guaranteed bonuses, as well as all
        payroll withholding taxes and 401(k) plan obligations;

    (b) continue to honor prepetition vacation pay policies;

    (c) reimburse employees for flexible spending expenses,
        ordinary business expenses, and other expenses;

    (d) continue to pay outstanding prepetition premiums for
        health, dental, and vision insurance, life insurance,
        accidental death and dismemberment insurance, short-term
        disability insurance, long-term disability insurance and
        workers' compensation insurance, and to pay all related
        administration, servicing, and processing costs and
        expenses; and

    (e) satisfy all other prepetition employee benefits.

                    Employee Obligations

As of July 23, 2006, the Debtors have 170 employees.

Administaff Partners processes payroll, pays insurance premiums,
and performs other services for the Debtors.  The Debtors pay
Administaff a fee equal to 4% of the total payroll.  The Debtors
believe that they do not owe Administaff any fees as of the
Petition Date.

The Debtors owe their employees salaries and wages for
prepetition work.  The Debtors' employees are paid every other
Friday.  The Debtors' payroll, including overtime, totals
US$478,000.  The Debtors' next pay day is scheduled for
July 28, 2006.  As of the Petition Date, a total of 16 days of
employees' salaries and wages have accrued.

The Debtors believe that, as of the Petition Date, the aggregate
amount of salaries and wages that has accrued but has not yet
been paid, or that has been paid but not yet presented for
payment or cleared through the banking system, should not exceed
US$800,000.

The Debtors have six sales representatives who, in addition to
their base salaries, are entitled to commissions that accrue
when membership deposits are paid.  As of the Petition Date, the
amount of commissions to be paid by the Debtors is US$5,000.

Each of the Debtors' 17 destination club managers is entitled to
a guaranteed bonus of between US$5,000 and US$10,000 that
accrues and is paid quarterly with the first or second payroll
payment after the end of the quarter.  The Debtors believe that
as of the Petition Date, the amount of guaranteed bonuses to be
paid should not exceed US$25,000.

The Debtors withhold taxes, deductions, and other amounts from
the wages and salaries of their employees, as required by
federal, state, and local laws.  As of the Petition Date, no
funds have been withheld and not yet transferred, or transferred
but not yet presented for payment or cleared through the banking
system.

                     Employee Benefits

The Debtors participate in, or are obligated under, a number of
different salary, wage, and benefit structures, programs, and
plans:

(A) 401(k) Plan

     The Debtors sponsor a 401(k) plan, which constitutes a
     qualified retirement savings plan under the Internal
     Revenue Code.

     The Debtors believe that, as of the Petition Date, no funds
     have been withheld and not yet transferred.

(B) Reimbursement of Expenses

     The Debtors reimburse employees for various expenses
     incurred, including business travel and entertainment
     expenses, cellular phone use, moving expenses, and, in some
     cases, home Internet access costs.  The Debtors believe
     that as of the Petition Date, the amount of expenses
     accrued but not yet reimbursed should not exceed US$40,000.

(C) Paid Vacation

     The Debtors provide vacation pay to all eligible employees.
     As of July 23, 2006, many employees have not taken all of
     their accrued vacation days.  The Debtors' employees have
     accrued an aggregate of approximately US$335,000 on account
     of unused vacation days.

(D) Severance Policy

     The Debtors maintain a severance policy pursuant to which
     all regular full-time salaried employees who meet certain
     eligibility requirements are entitled to severance payments
     upon involuntary termination.

     The Debtors are not currently making any payments under the
     Severance Policy to former employees terminated
     prepetition.  The Debtors intend to make severance payments
     in the ordinary course of their business, in accordance
     with the Severance Policy, to any eligible employees who
     are terminated postpetition.

(E) Medical, Dental, Vision, and Life Insurance

     The Debtors provide all employees with the option of
     participating in a comprehensive medical, dental, vision,
     and life insurance program through United Health Care and
     Vision Service Plan.

     The premiums due to United and VSP are paid, in part, by
     the Debtors in connection with payroll, and, in part, by
     participating employees.  The Debtors believe that no
     premiums are owed to United or VSP as of the Petition Date.

(F) Flexible Spending Plan

     The Debtors offer a flexible spending plan that allows
     participating employees to have withheld, on a pre-tax
     basis, up to US$200 per month for reimbursement of eligible
     medical care expenses.  Eight employees participate in the
     flexible spending plan.

     The Debtors estimate that the amount of claims under the
     flexible spending plan that has accrued prior to the
     Debtors' bankruptcy filing, but that has not yet been
     reimbursed should not exceed US$10,000.

(G) CIGNA insurance

     The Debtors offer short-term disability insurance, long-
     term disability insurance and accidental death and
     dismemberment insurance to 23 employees through CIGNA.

     Premiums to CIGNA totaling approximately US$5,800 per month
     are paid by the participating employees through wage and
     salary deductions.  The Debtors believe that no premiums
     are owed to CIGNA as of July 23, 2006.

(H) Workers' Compensation

     The Debtors maintain an insurance policy through Specialty
     Risk Service in connection with the operation of their
     business, pursuant to which they provide workers'
     compensation coverage to all of their employees.  No
     premiums are outstanding as of July 23, 2006.

(I) Other Benefits

     The Debtors provide eligible employees with certain
     other benefits that may have accrued prior to the Debtors'
     bankruptcy filing, but have not yet been paid by the
     Debtors.  The benefits include paid time off for jury duty
     and bereavement periods.

Nicholas H. Mancuso, Esq., at Dechert LLP, in Hartford,
Connecticut, argues that discontinuation of the Debtors
obligations and employee benefits will:

    (1) severely disrupt the Debtors' relationships with their
        employees;

    (2) irreparably impair employee morale at the very time when
        their dedication, confidence, and cooperation are most
        critical; and

    (3) seriously jeopardize the Debtors' ability to operate.

                    U.S. Trustee Objects

The United States Trustee asserts that the granting of a
priority claim for contributions to employee benefit plans for
services rendered within 180 days should be subject to the
limits set forth in Section 507(a)(5) of the Bankruptcy Code.

The U.S. Trustee says that prior to the entry of the proposed
order, proposed counsel to the Debtors should provide it and the
Court, for in camera review, a list containing the names of
employees, their titles, and the proposed wages and benefits to
be paid.

The U.S. Trustee asks the Court to grant the Debtors interim
relief to allow review of the matter by a creditors' committee
with the understanding that employees who are paid pursuant to
the interim order will not be subject to disgorgement.

                        *    *    *

The Court grants the Debtors' request in its entirety.

The Honorable Alan H.W. Shiff directs the Debtors to file with
the Court a list, certified by an officer of the Debtors, of
each employee:

    (a) whose prepetition salary or wage claim has been or will
        be paid, including the amount of each salary or wage
        claim; and

    (b) who has been or will be reimbursed for business expenses
        incurred on the Debtors' behalf, including the amount
        and a brief description of the expenses.

Judge Shiff further directs the Debtors to send a copy of the
court filing to the Office of the United States Trustee, and two
courtesy copies to chambers.

                   About Complete Retreats

Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses.  In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members.  Complete Retreats and its debtor-
affiliates filed for chapter 11 protection on July 23, 2006
(Bankr. D. Conn. Case No. 06-50245).  Nicholas H. Mancuso, Esq.
and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors
in their restructuring efforts.  No estimated assets have been
listed in the Debtors' schedules, however, the Debtors disclosed
US$308,000,000 in total debts.  (Complete Retreats Bankruptcy
News, Issue No. 2; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


PINNACLE ENT: Second Quarter Revenues Up 51% to US$228.8 Mil.
-------------------------------------------------------------
Pinnacle Entertainment, Inc., reported an increase in revenues
for the second quarter and six months ended June 30, 2006.    
Revenues for the second quarter rose 51.0% to US$228.8 million
from US$151.5 million a year earlier, and adjusted EBITDA
increased by 80.2% to US$54.5 million from US$30.2 million for
the prior-year period, as operating results benefited from a
full quarter of operations at L'Auberge du Lac, which opened in
late May 2005, and continued strong results at Boomtown New
Orleans.  These results do not include business interruption
insurance proceeds that the Company expects to receive due to
lost profits from last year's hurricanes.

On a GAAP basis, the company reported net income of US$46.0
million, or US$0.93 per share, versus the prior-year net loss of
US$4.2 million, or US$0.10 per share.  Both quarters include
pre-opening and development costs and income from discontinued
operations.  Additionally, the 2006 second quarter included net
proceeds of approximately US$44.8 million related to the
Company's terminated merger agreement with Aztar Corporation, as
well as US$1.2 million of pre-tax, non-cash charges related to
stock option compensation.

"We're pleased with our results for the second quarter, which
were driven by continued strong results at Boomtown New Orleans
and solid business levels at L'Auberge du Lac in Lake Charles,
Louisiana," said Daniel R. Lee, Pinnacle's Chairman and Chief
Executive Officer.  "Since its opening in May 2005, L'Auberge
has quickly become one of the leading casinos in the South.  We
intend to begin construction of a 250-guestroom expansion of
L'Auberge du Lac in the third quarter and to begin construction
in 2007 of a second casino hotel, named 'Sugarcane Bay,'
adjacent to L'Auberge du Lac."
    
                        Six-Month Results

Revenues for the six months ended June 30, 2006 increased 73.4%
to US$463.0 million from US$267.0 million for the 2005 period.  
Adjusted EBITDA rose 124% to US$114.0 million from US$50.8
million in the prior-year six-month period.  The adjusted EBITDA
margin increased to 24.6% in the period, compared to 19.0% for
the first half of 2005.

On a GAAP basis, net income for the first half of 2006 was
US$59.5 million, or US$1.22 per diluted share, compared to a net
loss of US$6.4 million, or US$0.16 per diluted share, for the
six months ended June 30, 2005.  The recent period's GAAP income
includes merger termination proceeds, gain on sale of assets and
non-cash charges related to stock option compensation.  Both
periods contained pre-opening and development costs.

"We remain focused on profitable expansion, as well as improving
operations at our existing properties," Mr. Lee continued.  "In
addition to opening our new Bahamian casino and continued
construction on our casino developments in St. Louis, we agreed
during the second quarter to acquire additional gaming assets in
Louisiana.  Our recently announced plans to build Sugarcane Bay
as a US$350 million sister property to L'Auberge in Lake Charles
will extend our development pipeline beyond the completion of
our St. Louis projects.  We expect to open our new casinos in
downtown St. Louis, St. Louis County and Lake Charles in the
second half of 2007, 2008 and 2009, respectively."

                    Recent Developments

   -- In May 2006, Pinnacle opened The Casino at Emerald Bay,
      located on the picturesque island of Great Exuma in the
      Bahamas.  The Casino at Emerald Bay adjoins the Four
      Seasons Resort Great Exuma and is the first and only
      casino on the island.  It includes 65 slot machines and
      eight table games, including blackjack, craps and
      roulette.

   -- In May 2006, Pinnacle signed a definitive agreement under
      which it will acquire certain Lake Charles, Louisiana
      gaming assets of Harrah's Entertainment, Inc., including
      two casino boats and related gaming licenses.  
      Additionally, Harrah's will acquire Pinnacle's Casino
      Magic Biloxi site and certain related assets (which were
      reflected as held for sale as of June 30), and receive
      an additional payment of approximately US$25 million
      from Pinnacle.  Each company will retain its insurance
      claims related to extensive damage resulting from last
      year's hurricanes.  The definitive agreement is subject
      to receipt of all required regulatory approvals, and
      unless waived by us, the passage of a local-option
      referendum in Lake Charles.  Given Pinnacle's agreement
      to sell the Biloxi site, the operating results for
      Casino Magic Biloxi have been reclassified as
      discontinued operations for all periods.

   -- In June 2006, Pinnacle announced its plans to build
      Sugarcane Bay, a new US$350 million casino resort to be
      built adjacent to L'Auberge du Lac in Lake Charles, LA.
      Sugarcane Bay will evoke the laid-back island feeling of
      the Caribbean, combined with gracious Southern
      hospitality in an environment of comfortable luxury.  
      It will feature approximately 1,500 slot machines, a
      state-of-the-art poker room, table games, 400 guestrooms,
      various dining and retail shopping amenities, a tropical
      pool area and an island spa.  Construction of Sugarcane
      Bay is expected to begin in 2007 with a planned opening
      in 2009, subject to final approval from the Louisiana
      Gaming Control Board.  The Louisiana law provides for a
      fixed number of casino riverboat licenses, and Pinnacle's
      new casino is planned to utilize one of the gaming
      licenses associated with the pending Harrah's
      transaction.

   -- In April and July 2006, the company completed the sale of
      its two card clubs in southern California, receiving
      aggregate cash proceeds of approximately US$40 million.
      As previously noted, the card clubs have been classified
      as held for sale, with the operating results, including
      the asset sale gains, reflected in discontinued
      operations.

   -- In July 2006, Pinnacle completed the sale of
      approximately 28 acres of land in Reno to Cabela's
      Retail, Inc.  Cabela's intends to build a large retail
      store featuring outdoor sporting goods on the site,
      adjacent to the Company's Boomtown Reno hotel and
      casino facility.

   -- At Pinnacle's construction site in downtown St. Louis,
      the casino's concrete basin is complete and barge
      construction is well underway. The north section of the
      garage and hotel tower is complete through the third
      level, and concrete forms are being installed for the
      fourth level.  In June, the Company announced a new
      nightclub, parking and site improvements, retail stores
      and other program adjustments to the city project.
      These changes, together with increases in the cost of
      construction materials, are reflected in the revised
      budget of approximately US$430 million.  As noted, the
      project is scheduled to open in the second half of 2007,
      subject to licensing by the Missouri Gaming Commission.

   -- At River City, Pinnacle's US$375 million casino project
      in south St. Louis County, site preparation has
      continued.  Plans for a new access road have been
      submitted to the appropriate government authorities for
      approval. As noted, the project is scheduled to open in
      2008, subject to licensing by the Missouri Gaming
      Commission, and will include a casino with approximately
      3,000 slot machines and 60 table games, a 100-room hotel,
      full-service spa, restaurants, a boutique bowling alley,
      a multiplex movie theatre, an indoor ice rink, a public
      park with athletic fields and a hatch-shell music and
      entertainment venue.  

   -- In July 2006, Pinnacle launched a tender offer for all
      the outstanding 13% senior exchange notes and 12% notes
      of President Casinos, Inc.  If fully subscribed, and
      combined with a concurrent offer for general unsecured
      claims, Pinnacle would pay approximately US$62.6 million
      to acquire substantially all of the debt of this entity.  
      The holders of more than 82% of the principal amount of
      the bonds have agreed to tender and not withdraw from
      Pinnacle's offer.  The tender offer provides for an
      early tender process once those holders have tendered
      their bonds.  Pinnacle has agreed to acquire President
      Riverboat Casino-Missouri Inc., a subsidiary of President
      Casinos, Inc., for approximately US$31.5 million subject
      to a working capital adjustment and bankruptcy court
      approval.  As of May 31, 2006, the parent company's
      riverboat casino subsidiary had cash balances of
      approximately US$29 million and post-petition liabilities
      of approximately US$6 million.  Under the business
      purchase agreement, the excess cash is to be removed from
      the subsidiary before its purchase by Pinnacle.  This cash
      and the proceeds from the sale to Pinnacle are expected to
      be distributed pursuant to a bankruptcy-court
      reorganization plan.  The holders of the bonds, which,
      after the tender offer, should include Pinnacle with at
      least a super-majority position, are expected to receive
      a large portion of the distribution to creditors in the
      final plan of reorganization.  The completion of the
      acquisition of the operating entity is subject to
      licensing by the Missouri Gaming Commission, as well as
      the implementation of a bankruptcy-court reorganization
      plan.

   -- Pinnacle recently unveiled a website related to its
      proposed casino project in Philadelphia, PA.  Artists'
      renderings and an overview of the proposal, which would
      initially include a 3,000-slot casino, a multiplex movie
      theater, and multiple dining and entertainment options,
      Pinnacle is one of five companies vying for two licenses
      expected to be issued in Philadelphia.

   -- Pinnacle had proposed two casino projects in Chile, one
      in Antofagasta and the other in Rancagua.  On July 13,
      the Chilean government announced that it had chosen a
      competing proposal for the sole license in Antofagasta.  
      The competing proposal proposed a greater investment in
      the market than Pinnacle believed was warranted.  The
      government's decision vis-a-vis Rancagua is expected
      later this year.

                     Property Highlights

Boomtown New Orleans

Boomtown New Orleans continues to benefit from the sizable
rebuilding effort in the area and the closure of casinos along
the Mississippi Gulf Coast following Hurricane Katrina.  For the
second quarter of 2006, revenues at Boomtown New Orleans grew by
82.0% to US$52.0 million versus US$28.6 million in last year's
period.  Adjusted EBITDA rose by 167% to US$21.7 million from
US$8.1 million a year ago. Pinnacle expects operating results to
moderate as competing casino facilities continue to reopen along
the Mississippi Gulf Coast. The addition of 140 slot machines
from a casino expansion at Boomtown New Orleans in late June now
provides additional capacity during peak operating periods.  
Boomtown New Orleans currently offers approximately
1,700 slot machines and 40 table games.


L'Auberge du Lac

In the 2006 second quarter, revenues and adjusted EBITDA at
L'Auberge were US$77.6 million and US$17.7 million,
respectively. Revenues and adjusted EBITDA for the prior-year
period were US$29.4 million and US$7.9 million, respectively,
reflecting the property's opening in late May 2005 and only a
partial quarter of operations.

Belterra Casino Resort

Revenues at Belterra Casino Resort were US$42.9 million versus
US$42.6 million in the 2005 second quarter.  Adjusted EBITDA of
US$10.3 million in the recent quarter declined slightly compared
to US$10.7 million in the prior-year period.

Boomtown Bossier City

Boomtown Bossier City continues to perform well. Revenues for
the 2006 second quarter were US$23.9 million compared to US$23.5
million last year, while adjusted EBITDA grew to US$6.1 million
from US$4.9 million in the prior-year period.

Boomtown Reno

Revenues were approximately flat at US$22.5 million in the 2006
second quarter versus US$22.7 million last year. Adjusted EBITDA
was approximately US$2.2 million versus US$2.8 million in the
prior year.
    
International

The International segment now includes the financial results for
The Casino at Emerald Bay, Pinnacle's casino in the Bahamas that
opened in May 2006, and Casino Magic Argentina, which currently
consists of several relatively small casino operations.  
Revenues for the 2006 second quarter rose 40.9% to US$6.6
million from US$4.7 million in last year's quarter, due
primarily to the July 2005 opening of a larger replacement
casino in the city of Neuquen, Argentina and the May 2006
opening of The Casino at Emerald Bay.  Adjusted EBITDA rose to
US$2.2 million compared to US$2.1 million in the 2005 period.

                         Other Items

Biloxi Insurance Matters

On April 11, the Company filed a US$346.5 million insurance
claim for its losses associated with Hurricane Katrina at Casino
Magic Biloxi. Such claim includes approximately US$259 million
for property damage, US$80 million for business interruption
(inclusive of approximately US$37 million for lost profits) and
approximately US$7.6 million for emergency, mitigation and
demolition expenses.  To date, Pinnacle has received a total of
US$50 million in advances towards resolution of its insurance
claim.  The company anticipates receiving additional insurance
proceeds from time to time until ultimate resolution of the
claim.  The company anticipates that resolution of its insurance
claim may be protracted and will require significant negotiation
and potentially litigation.  Certain carriers have reserved
their rights to assert, and one carrier has asserted, that the
damage was subject to lower flood coverage limits.  Our
insurance provided for US$400 million of coverage per occurrence
for a weather catastrophe occurrence and at least US$100 million
of coverage on an annual basis for a flood occurrence.

As of June 30, 2006, the company recorded insurance receivables
of US$57.8 million for impairment charges for the book value of
various assets at the Biloxi facility and US$23.8 million for
certain costs covered by insurance.  The Company has insurance
coverage for interruption of income at the property, but under
GAAP will not book such income until the insurance claims are
resolved.  Net of the US$50 million received through June 30,
the cumulative insurance receivable on the books at quarter end
was US$31.6 million.  Until the claim is resolved, and excluding
any additional advances, the Company anticipates the insurance
receivables will increase as it incurs continuing insured
expenses.  The company's ultimate insurance claim and recovery
amounts are based on replacement costs rather than book value
and are unrelated to, computed differently from, and likely to
be substantially larger than the impairment charges recorded.

The company's insurance policies permit a "replacement facility"
to be built anywhere in the U.S. Management has designated the
south St. Louis County site as a replacement facility given its
recent decision to sell the Casino Magic Biloxi site.  
Management believes that each of the facilities in St. Louis
(where in each case construction has begun) would qualify as a
replacement facility under the terms of its insurance policies.  
The company's insurers have conditionally agreed to permit the
south St. Louis County site to serve as the replacement
location. Recently, certain insurers added additional conditions
to such approval that could materially reduce Pinnacle's
recovery with respect to the claim.  The company does not
believe these conditions are consistent with the terms of the
insurance policies and is disputing the insurers' conditions.  
The company intends to enforce its rights under the policies.  
Although the south St. Louis County project is expected to cost
more than it would have to repair/rebuild Casino Magic Biloxi,
recovery under the policies is nevertheless limited to the
lesser of what would have been the cost to repair/rebuild Casino
Magic Biloxi or the actual cost incurred in constructing the
south St. Louis County site.

New Orleans Insurance Matters

In the 2006 second quarter, the company filed insurance claims
of approximately US$11 million for its business interruption and
property losses associated with Hurricane Katrina at Boomtown
New Orleans.  A deductible of approximately US$5 million would
likely apply against this claim amount.

Corporate Expenses

Corporate costs for the second quarter of 2006 were US$6.3
million, excluding the corporate portion of the non-cash stock-
based compensation charge of US$1.0 million, compared to US$6.2
million in the prior-year period.

Pre-opening and Development Costs

During the quarter, the company incurred pre-opening and
development costs of US$7.0 million, including US$4.9 million
for its St. Louis projects.  The 2005 quarter included US$17.4
million of such costs, primarily related to L'Auberge du Lac and
St. Louis.

Discontinued Operations

The Company completed the sale of the Crystal Park Casino card
club in April and our leasehold interest and related receivables
in the Hollywood Park Casino card club in July.  The sale of the
Crystal Park Casino resulted in a pre-tax book gain of
approximately US$10.7 million, which is reflected in
discontinued operations for the 2006 second quarter.  The sale
of the Hollywood Park Casino assets resulted in a pre-tax book
gain of approximately US$17 million, which will be reflected in
discontinued operations in the 2006 third quarter. Also included
in discontinued operations are the results of Casino Magic
Biloxi as the company has decided to sell the Casino Magic
Biloxi site.
    
Merger Termination Proceeds

On March 13, 2006, Pinnacle entered into an agreement to acquire
Aztar Corporation for US$38 per share, subject to approval by
Aztar's shareholders.  Under the agreement, Aztar's board was
permitted to evaluate and recommend to its shareholders any
unsolicited, superior proposals from qualified entities in
accordance with its fiduciary duties.  Pinnacle had the right to
match any such proposals.  If Pinnacle chose to not match a
superior proposal, Aztar could terminate its merger agreement
with Pinnacle by paying a merger termination fee.
    
During April and May, Aztar received several proposals that its
board deemed to be superior to Pinnacle's.  Pinnacle matched or
exceeded several of these proposals.  Ultimately, Pinnacle chose
not to match a proposal to acquire Aztar for US$54 per share.
Aztar's board then terminated its merger agreement with Pinnacle
and made a merger termination payment of US$78 million.

Pinnacle utilized the services of several investment banking and
legal firms in pursuing its acquisition of Aztar. In payment for
such services, and in particular for the commitment of more than
US$3.5 billion of capital that would have been needed to
consummate the transaction, these firms were paid significant
fees, some of which involved percentages of our break-up fees,
subject to a cap.  Net of such fees and expenses, the merger
termination fee received by Pinnacle was approximately US$44.8
million.

Liquidity

In light of the company's significant construction and
development projects, the Company currently has a very liquid
financial position. The company had approximately US$378 million
in cash, cash equivalents and restricted cash at June 30, 2006.  
Of the company's US$750 million bank credit facility,
approximately US$484 million remains unutilized and available as
of June 30, 2006.  The company also expects significant funds to
be received from its insurance claims during future periods.  
These resources, plus possible additional borrowings, are
expected to be used to fund the company's various new projects,
several expansions at existing facilities, as well as potential
additional growth initiatives that the company may choose to
pursue.

As of June 30, 2006, the company achieved a 2:1 ratio of EBITDA
to interest as defined in the company's debt indentures, thereby
significantly increasing the Company's overall financial
flexibility.
      
                   Community Contribution

Pinnacle pays significant taxes in the communities in which it
operates.  During the first six months of 2006, Pinnacle paid or
accrued US$114.2 million in gaming taxes, US$8.4 million in
payroll taxes, US$5.8 million in property taxes, and US$2.8
million in sales taxes.  Setting aside income taxes, Pinnacle
paid or accrued US$131.2 million for taxes to state and local
authorities in the first six months of 2006.

                  Pinnacle Entertainment, Inc.
             Consolidated Statements of Operations
        (in thousands, except per share data, unaudited)


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

Gaming        US$194,679  US$127,926    US$400,043   US$227,661
Food and
beverage         11,793       8,780        22,433       14,914
Truck stop
and service
station           8,187        6,878       14,015       11,858
Hotel and
recreational
vehicle park      7,937        4,351       14,598        6,776
Other
operating
income            6,234        3,608       11,881        5,827
                 228,830      151,543      462,970      267,036

Expenses and
Other Costs:

Gaming           108,561       74,310      222,265      132,693
Food and
beverage         11,046        8,231       21,374       13,957
Truck stop
and service
station           7,776        6,437       13,221       11,124
Hotel and
recreational
vehicle park      3,464        2,082        7,009        3,264
General and
administrative   42,237       27,513       83,049       50,925
Depreciation and
amortization     16,963       11,852       33,369       22,010
Other operating
expenses          2,448        2,737        4,638        4,277
Pre-opening and
Development
costs             6,984       17,367       11,040       23,967
                 199,479      150,529      395,965      262,217

Operating
income           29,351        1,014       67,005        4,819
Interest
income            3,463          742        5,968        1,938
Interest expense,
net of
capitalized
interest      (13,550)     (10,137)     (27,685)     (20,623)

Merger
termination
proceeds, net
of related
expenses       44,821            0       44,821            0

Loss on early
extinguishment
of debt             0           28            0       (1,419)

Income (loss)
From continuing
Operations
before income
taxes          64,085       (8,353)       90,109     (15,285)

Income tax
(expense)
benefit       (25,389)       2,271       (35,988)      4,728

Income (loss)
from
continuing
operations     38,696       (6,082)       54,121     (10,557)

Income from
discontinued
operations,
net of taxes    7,311        1,904         5,360       4,148

Net income
(loss)       US$46,007    (US$4,178)     US$59,481  (US$6,409)


Income (loss)
Per common
share - basic
    
Income (loss)
from
continuing
operations    US$0.81      (US$0.15)       US$1.15   (US$0.26)

Income from
discontinued
operations,
net of
taxes         US$0.15       US$0.05        US$0.11    US$0.10

Net income
(loss) per
common share
- basic      US$0.96       (US$0.10)       US$1.26   (US$0.16)


Income (loss)
Per common
share -
diluted

Income (loss)
From
Continuing
operations   US$0.78       (US$0.15)       US$1.11    (US$0.26)

Income from
discontinued
operations,
net of
taxes        US$0.15        US$0.05        US$0.11     US$0.10

Net income
(loss) per
common
share -
diluted      US$0.93       (US$0.10)       US$1.22    (US$0.16)


Number of
shares
- basic      47,968          40,534         47,181      40,518

Number of
shares
- diluted    49,607          40,534         48,798      40,518



                    Pinnacle Entertainment, Inc.
                Condensed Consolidated Balance Sheets
                     (in thousands, unaudited)


                               June 30,      December 31,
                                 2006           2005

Assets

Cash, cash equivalents
and restricted cash         US$377,595       US$156,470

Other assets                    239,202          198,089
Property and equipment, net     880,751          890,318
Total assets               US$1,497,548     US$1,244,877

Liabilities and
Stockholders' Equity

Liabilities                  US$188,183       US$159,390
Notes payable                   637,484        657,673
Total liabilities               825,667        817,063

Stockholders' equity            671,881        427,814
Total liabilities and
stockholders' equity      US$1,497,548   US$1,244,877


                       About Pinnacle

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

                        *    *    *

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

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

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




===============
B A R B A D O S
===============


SECUNDA INT: Commences Cash Tender Offer of Floating Rate Notes
---------------------------------------------------------------
Secunda International Limited has commenced a cash tender offer
for up to US$3,800,000 aggregate principal amount of its
outstanding US$125,000,000 aggregate principal amount of Senior
Secured Floating Rate Notes due 2012 (CUSIP No. 81370FAB4).

Under the requirements of the Indenture governing the Notes, the
company is making an offer, on a pro rata basis, to registered
holders of the Notes to purchase Notes in an aggregate principal
amount of up to US$3,800,000 at a purchase price in cash equal
to 100% of the principal amount thereof plus accrued and unpaid
interest, if any, to the date of purchase.  Under the terms of
the Indenture, if Notes aggregating more than US$3,800,000 in
principal amount are validly tendered in the Annual Reduction
Offer, then each Holder whose Notes are accepted for purchase
has the right to require the Company to purchase such Holder's
pro rata share of such amount.

The Annual Reduction Offer is scheduled to expire at 5:00 p.m.,
New York City time, on Aug. 29, 2006, unless extended or earlier
terminated.  Subject to the satisfaction or waiver of the
conditions to consummation of the Annual Reduction Offer and
pursuant to the requirements of the Indenture, the Settlement
Date for the Annual Reduction Offer is expected to be three
business days following the Expiration Time.  Holders of the
Notes who tender (and do not validly withdraw) their Notes prior
to the Expiration Time will be entitled to receive, per US$1,000
principal amount of the Notes, 100% of the principal amount
thereof on the Settlement Date.  In addition, Holders who
validly tender and do not validly withdraw Notes will be paid
accrued and unpaid interest, if any, from the last interest
payment date up to, but not including, the Settlement Date for
the Notes accepted for purchase.  Notes may be tendered only in
integral multiples of US$1,000 in aggregate principal amount, or
the entire amount of any Holder's Notes if not an integral
multiple of US$1,000.

The complete terms and conditions of the Annual Reduction Offer
are described in the Offer to Purchase of the Company dated
Aug. 1, 2006, copies of which may be obtained by contacting the
information agent for the offer:

             D.F. King and Co., Inc.
             Tel: (212) 269-5550 (collect)
                  (800) 758-5378 (U.S. toll-free)

Secunda International currently has an outstanding offer to
Holders of the Notes to purchase for cash, any and all of the
Notes, on the terms and subject to the conditions set forth in
the Offer to Purchase and Consent Solicitation Statement dated
June 27, 2006, including (without limitation) the Financing
Condition and the Supplemental Indenture Condition described
therein.  As of 5:00 p.m., New York City time, on July 12, 2006,
the company received tenders and consents representing 100% of
the outstanding aggregate principal amount of the Notes. Under
the terms of the Tender Offer Statement, the Tender Offer was
originally scheduled to expire at 5:00 p.m., New York City time,
on July 28, 2006.  However, expiration time for the Tender Offer
is extended to 5:00 p.m., New York City time, on Aug. 11, 2006,
unless extended by the company in its sole discretion.  

If Secunda International completes the Tender Offer and
repurchase 100% of the aggregate outstanding amount of the Notes
pursuant to the Tender Offer, the Annual Reduction Offer will be
of no force and effect.

                 About Secunda International

Headquartered in Nova Scotia, Secunda International Limited
-- http://www.secunda.com/-- is a wholly owned Canadian vessel   
owner/ operator with locations in the UK and Barbados.  Secunda
is the leading supplier of marine support services to oil and
gas companies in one of the world's harshest marine environments
-- off the East Coast of Canada.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 30, 2006, Standard & Poor's Ratings Services held its 'B-'
long-term corporate credit and senior secured debt ratings on
offshore support vessel provider Secunda International Inc. on
CreditWatch with positive implications, where they were placed
Sept. 29, 2005.




===========
B E L I Z E
===========


* BELIZE: Opposition Party Says Nation in Serious Debt Crisis
-------------------------------------------------------------
The United Democratic Party or UDP, an opposition party in
Belize, held a press conference on Tuesday at Radisson, saying
that the nation is in serious debt crisis, The Reporter states.

According to The Reporter, the UDP spoke on issues that include:

    -- recently implemented General Sales Tax,

    -- the Senate Select Committee findings on Social Security,
       education, and

    -- government financial woes.

Dean Barrow, the head of the UDP, told the media that the
government is on the brink of a "selective sovereign default"
that could have devastating effects on Belize socially and
economically.

The Reporter quoted Mr. Barrow saying that according to the
government's review, the country's debt is almost US$2 billion.  

Mr. Barrow told The Reporter that he expects the government to
soon disclose a debt "reprofiling" exercise in which the
People's United Party, the ruling party in the country, would be
admitting that the government cannot repay its national debt.

The General Sales Tax needs fixing and promised that his party
would continue studying the impact it is having on consumers,
Gaspar Vega, the First Deputy Leader of UDP, told The Reporter.

                        *    *    *

Moody's Investor Service assigned these ratings to Belize:

        -- CC LT Foreign Bank Depst Caa3
        -- CC LT Foreign Curr Debt  Caa3
        -- CC ST Foreign Bank Depst NP
        -- CC ST Foreign Curr Debt  NP
        -- LC Curr Issuer Rating    Caa3
        -- FC Curr Issuer Rating    Caa3
        -- Foreign Currency LT Debt Caa3
        -- Local Currency LT Debt   Caa3




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


FOSTER WHEELER: Names David Parham Executive VP of Global Sales
---------------------------------------------------------------
Foster Wheeler Ltd. appointed David J. Parham as executive vice
president of Global Sales and Marketing or GSM for Foster
Wheeler's Global Power Group.

"Dave brings a wealth of operational, commercial, sales and
marketing experience to this role," said Raymond J. Milchovich,
chairman, president and chief executive officer, Foster Wheeler
Ltd. and acting chief executive officer of the Global Power
Group.  "Dave will lead the implementation of the Global Power
Group's market-focused strategic planning process, with the
objective of further enhancing our relative competitive position
in the key growth regions and across our core product lines, and
ensuring that the various Foster Wheeler products and services
are best matched to a changing market."

Mr. Parham has been with Foster Wheeler for 26 years.  During
his career, he has been responsible for sales and commercial
functions and has also had responsibility for operating units.  
His sales responsibilities have included many years in
international sales, most recently as executive vice president
commercial operations for Foster Wheeler North America.  Mr.
Parham has also held sales and operational roles with Foster
Wheeler Energy China and was formerly president and chief
executive officer of Foster Wheeler Energy Corp.

Mr. Parham is a mechanical engineer and holds a Bachelors Degree
from State University of NY at Maritime College.

                   About Foster Wheeler

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

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

                        *    *    *

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

                        *    *    *

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


REFCO INC: US Trustee Reconstitutes Official Creditors Committee
----------------------------------------------------------------
Diana G. Adams, the acting United States Trustee for Region 2,
reconstitutes the Official Committee of Unsecured Creditors as
of July 21, 2006.

The Creditors Committee is now composed of:

   1. Wells Fargo National Association, as Indenture Trustee
      6th Street, Marquette Ave., MAC N9303-120
      Minneapolis, Minnesota 55479
      Attn: Julie J. Becker, Vice President
      Phone: (612) 316-4772

   2. D.E. Shaw & Co., LP
      120 West 45th Street
      New York 10035
      Attn: Marc Sole
      Phone: (212) 478-0179

   3. Esopus Creek Advisors
      500 Fifth Avenue, Suite 2620
      New York 10110
      Attn: Joseph Criscione
      Phone: (212) 302-7214

                      About Refco Inc.

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

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

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

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

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


REFCO: Chapter 11 Trustee Hires Capstone as Financial Advisor
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorizes Marc S. Kirschner, the Chapter 11 trustee overseeing
Refco Capital Markets, Ltd.'s estate, to employ Capstone
Advisory Group, LLC, as his financial advisor with respect to
inter-creditor and inter-Debtor issues, including intercompany
claims, where the RCM Trustee determines that RCM's interests
may conflict with those of the other Chapter 11 Debtors.

Capstone's scope of services will be limited to performing
confirmatory due diligence and analysis of compilations of
information produced by Goldin Associates LLC, and APS Service
LLC, with respect to claims arising out of transactions between:

   (i) RCM and one or more of the Other Chapter 11 Debtors and
       non-debtor affiliates or subsidiaries of Refco, Inc.; or

  (ii) two or more of the Other Chapter 11 Debtors and Refco's
       non-debtor affiliates.

Capstone will not provide any services to the RCM Trustee unless
and until the analysis of the Intercompany Claims has progressed
to the point where it can be furnished to Capstone by Goldin or
APS on the RCM Trustee's instruction.

At that time, however, Capstone will be permitted to perform its
confirmatory due diligence and advise the RCM Trustee with
respect to reviewing, analyzing, and inquiring of Goldin or APS
about their work product and back up materials and processes.

Capstone may be compensated in accordance with the Engagement
Letter, subject to applicable requirements for payment of fees
and disbursements under the Bankruptcy Code, the Bankruptcy
Rules, guidelines promulgated by the United States Trustee, the
rules and other Court orders.

As reported in the Troubled Company Reporter on July 7, 2006,
Mr. Kirschner told the Court that there are significant
intercreditor and other issues, including intercompany claims,
which are unique to RCM and with respect to which RCM's
interests are, or may be, in direct conflict with the interests
of the other Chapter 11 Debtors' estates and stakeholders.

Capstone will:

   a.  assist the Trustee with analysis of RCM's books and
       records relating to intercompany transactions,
       intercompany accounting and related accounts of
       RCM;

   b.  advise the Trustee regarding any proposed transactions
       affecting the RCM estate or the resolution of the RCM
       case;

   c.  advise the Trustee regarding negotiations with
       stakeholders;

   d.  assist the Trustee and his counsel in negotiating and
       effecting a comprehensive resolution of the RCM
       bankruptcy;

   e.  perform other necessary financial advisory services for
       the Trustee in connection with the Chapter 11 case; and

   f.  provide valuation work and expert testimony as
       determined by the Trustee to be necessary.

Capstone will be paid based on the actual hours worked charged
at its standard hourly rates and reimbursed for its out-of-
pocket expenses.  The firm's current rates are:

     Position                Hourly Rate
     --------                -----------
     Executive Director    US$530 - US$575
     Staff                 US$250 - US$450
     Support Staff          US$75 - US$175

Capstone professionals who will have primary responsibility for
representing the Trustee are:

     Professional          Position at Capstone
     ------------          --------------------
     David Galfus          Member and Executive Director
     Robert Manzo          Executive Director
     Jack Surdoval         Managing Director

Other Capstone professionals may assist in the representation as
needed.

Mr. Galfus attests that Capstone (i) is not a creditor, an
equity security holder or an insider of RCM, or any other
Chapter 11 Debtor; (ii) is not and was not within two years
before the Petition Date, a director, officer or employee of RCM
or any other Chapter 11 Debtor; and (iii) does not hold or
represent any interest that is materially adverse to the
interest of the RCM estate or of any class of creditors or
equity security holders.

Capstone's professionals have played significant roles in many
of the largest and most complex cases under the Bankruptcy Code,
including the chapter 11 cases of Adelphia Communications
Corporation, Ames Department Stores, Inc., Enron Corp., Federal
Mogul, Inc., Mirant Energy, Inc., Owens Corning, Inc., Vencor,
Inc., and W.R. Grace.

                      About Refco Inc.

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

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

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

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

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-
7000).


SCOTTISH RE: Holding 2nd Quarter Earnings Conference Call Tom.
--------------------------------------------------------------
Scottish Re Group Limited will release earnings for the second
quarter ended June 30, 2006, on August 3, 2006 after 4:00 PM New
York time.

The company set an earnings conference call with the management
on Friday, August 4, 2006.

A replay of the call will be available beginning at 12:30 p.m.
on Aug. 4, 2006, and running through Aug. 18, 2006.  The dial-in
number for the replay is 800-642-1687 or 706-645-9291 and the
conference ID is 2906522.

An on-demand replay of the call will be available on the Web at
http://www.scottishre.com/

                     About Scottish Re

Scottish Re Group Limited -- http://www.scottishre.com/-- is a  
global life reinsurance specialist.  Scottish Re has operating
companies in Bermuda, Charlotte, North Carolina, Dublin,
Ireland, Grand Cayman, and Windsor, England.  At March 31, 2006,
the reinsurer's balance sheet showed US$12.2 billion assets and
US$10.8 billion in liabilities.  

                        *    *    *

Following Scottish Re Group Limited's profit warning, Moody's
Investors Service downgraded on July 31,2006, to Ba2 from Baa2
the senior unsecured debt rating of Scottish Re; the rating
agency also downgraded to Baa2 from A3 the insurance financial
strength ratings of the company's core insurance subsidiaries,
Scottish Annuity & Life Insurance Company (Cayman) Ltd. and
Scottish Re (U.S.), Inc. All debt and IFS ratings of Scottish Re
remain on negative outlook.

A.M. Best Co. also downgraded on July 31, 2006, the financial
strength rating to B++ from A- and the issuer credit ratings to
"bbb+" from "a-" of the primary operating insurance subsidiaries
of Scottish Re Group Limited (Scottish Re) (Cayman Islands).  
A.M. Best has also downgraded the ICR of Scottish Re to "bb+"
from "bbb-".  All FSR and debt ratings have been placed under
review with negative implications.


SCOTTISH RE: Expects to Report US$130 Mil. Second Quarter Loss
--------------------------------------------------------------
Scottish Re Group Limited expects to report a net operating loss
available to ordinary shareholders of approximately US$130
million for the second quarter ended June 30, 2006.

The company said the loss for the quarter is principally related
to a valuation allowance on deferred tax assets of approximately
US$112 million combined with the following factors:

     -- Reduction in estimated premium accruals

     -- Increased retrocession costs

     -- Write-down of deferred acquisition costs due to higher
        than expected lapse rates on certain fixed annuity
        treaties

     -- Severance and retirement costs and other non-recurring
        operating expenses.

Scottish Re expects earnings for its third and fourth fiscal
quarters to be lower than the company's previously announced
guidance. The reduction in earnings guidance is due to lower
than expected new business volumes, higher than anticipated
retrocession costs and income tax expense due to the inability
to recognize future deferred tax benefits.

On July 28, 2006, the Board of Directors suspended the ordinary
share dividend.

Scottish Re will release after 4:00 p.m. today earnings for the
second quarter ended June 30, 2006.

                     About Scottish Re

Scottish Re Group Limited -- http://www.scottishre.com/-- is a  
global life reinsurance specialist.  Scottish Re has operating
companies in Bermuda, Charlotte, North Carolina, Dublin,
Ireland, Grand Cayman, and Windsor, England.  At March 31, 2006,
the reinsurer's balance sheet showed US$12.2 billion assets and
US$10.8 billion in liabilities.  

                        *    *    *

Following Scottish Re Group Limited's loss warning, Moody's
Investors Service downgraded on July 31, 2006, to Ba2 from Baa2
the senior unsecured debt rating of Scottish Re; the rating
agency also downgraded to Baa2 from A3 the insurance financial
strength ratings of the company's core insurance subsidiaries,
Scottish Annuity & Life Insurance Company (Cayman) Ltd. and
Scottish Re (U.S.), Inc. All debt and IFS ratings of Scottish Re
remain on negative outlook.

A.M. Best Co. also downgraded on July 31, 2006, the financial
strength rating to B++ from A- and the issuer credit ratings to
"bbb+" from "a-" of the primary operating insurance subsidiaries
of Scottish Re Group Limited (Scottish Re) (Cayman Islands).  
A.M. Best has also downgraded the ICR of Scottish Re to "bb+"
from "bbb-".  All FSR and debt ratings have been placed under
review with negative implications.


SCOTTISH RE: Fitch Downgrades & Places Ratings on NegWatch
----------------------------------------------------------
Fitch Ratings has downgraded Scottish Re's ratings as follows:

   Scottish Re Group Ltd.

      -- Issuer default rating: to 'BBB-' from 'BBB'.

   Operating subsidiaries:

      -- Insurer financial strength: to 'BBB+' from 'A-'

All ratings remain on Rating Watch Negative.

The ratings action reflects Fitch's heightened concern over the
increased stress placed on financial flexibility of the holding
company following Scottish Re's announcement that it expects to
report a loss for the three months ending June 30, 2006.  This
loss follows disappointing results in the first quarter of 2006
relative to management's plans.  Performance over the past
several years has been characterized as moderate compared to
Fitch's rating expectations, and has reflected the challenges
associated with rapid growth and successive acquisitions.

The rating action also reflects certain unfavorable liquidity
trends, including the need during the second quarter to raise
outside funding to inject additional capital into the U.S.
subsidiary after state regulators indicted a portion of the
capital benefits from a Regulation XXX life securitization made
in 2005, via special purpose entity Orkney Re, needed to be
reversed.  The company is also facing higher strain on its
business than anticipated.  Scottish Re may need to fund a cash
put option related to US$115 million of senior convertible notes
later this year, but the company has indicated that it has more
than adequate availability between internal cash resources and
its existing credit facilities to fund this payment without an
effect on its operations.

The announced writedown of the deferred tax asset by US$112
million, and the impact on new business production of subsequent
rating downgrades, are expected to further pressure the
company's earnings performance going forward.  Fitch believes
that the company has adequate liquidity over the near term and
its capital position, as measured by risk adjusted capital is
within ratings expectations.

Progress on strategic initiatives undertaken will be reflected
as they materialize and execution of plans with regard to
potential capital sources would help to alleviate ratings
pressure.

Scottish Re is an insurance holding company with operations
primarily focused on global life and annuity reinsurance.  Total
gross face amount of reinsurance in force was US$1.02 trillion
at Dec. 31, 2005.  Operations are conducted in subsidiaries
located in Bermuda, Charlotte, North Carolina, Dublin Ireland,
Grand Cayman and Windsor, England.

These ratings remain on Rating Watch Negative:

   Scottish Annuity & Life Insurance Company (Cayman) Limited

      -- IFS downgraded to 'BBB+' from 'A-'.

   Scottish Re (U.S.) Inc.

      -- IFS downgraded to 'BBB+' from 'A-'.

   Scottish Re Limited

      -- IFS downgraded to 'BBB+' from 'A-'.

   Scottish Re Group Limited

      -- IDR downgraded to 'BBB-' from 'BBB';

      -- 4.5% US$115 million senior convertible notes
         downgraded to 'BB+' from 'BBB-';

      -- 5.875% US$142 million hybrid capital units downgraded
         to 'BB' from 'BB+';

      -- 7.25% US$125 million non-cumulative perpetual
         preferred stock downgraded to 'BB' from 'BB+'.


SCOTTISH RE: Responds to Agencies' Rating Actions on July 31
------------------------------------------------------------
Scottish Re Group Limited responds to ratings actions taken by
A.M. Best Co., Fitch Ratings, Moody's Investor Service, and
Standard & Poor's Rating Services.

"While we are disappointed by the ratings actions taken by the
agencies on July 31, 2006, we would like to reassure our
clients, investors and creditors that we do not face any near-
term liquidity or solvency issues.  All of our regulated
entities are capitalized well in excess of their minimum
required levels.  Given our currently available liquidity, we
are confident in our ability to meet our obligations with
regards to the US$115 million outstanding 4.5% convertible notes
that are puttable to us at par on December 6, 2006.  It should
also be noted that we are not in violation of any of the
covenants associated with our outstanding debt and convertible
securities or back-up liquidity lines.  We have made a concerted
effort during the past 36 months to negotiate new business
without ratings triggers and have negotiated such terms out of
older treaties.  Any treaties with rating triggers represent a
de minimus amount of our in-force business.  We will provide
additional details regarding each of these items during our
earnings call scheduled for August 4, 2006, at 8.30am EDT."

                     About Scottish Re

Scottish Re Group Limited -- http://www.scottishre.com/-- is a  
global life reinsurance specialist.  Scottish Re has operating
companies in Bermuda, Charlotte, North Carolina, Dublin,
Ireland, Grand Cayman, and Windsor, England.  At March 31, 2006,
the reinsurer's balance sheet showed US$12.2 billion assets and
US$10.8 billion in liabilities

                        *    *    *

Following Scottish Re Group Limited's profit warning, Moody's
Investors Service downgraded on July 31,2006, to Ba2 from Baa2
the senior unsecured debt rating of Scottish Re; the rating
agency also downgraded to Baa2 from A3 the insurance financial
strength ratings of the company's core insurance subsidiaries,
Scottish Annuity & Life Insurance Company (Cayman) Ltd. and
Scottish Re (U.S.), Inc. All debt and IFS ratings of Scottish Re
remain on negative outlook.

A.M. Best Co. also downgraded on July 31, 2006, the financial
strength rating to B++ from A- and the issuer credit ratings to
"bbb+" from "a-" of the primary operating insurance subsidiaries
of Scottish Re Group Limited (Scottish Re) (Cayman Islands).  
A.M. Best has also downgraded the ICR of Scottish Re to "bb+"
from "bbb-".  All FSR and debt ratings have been placed under
review with negative implications.




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


* BOLIVIA: Comibol Says Cerro Rico Has Large Silver Reserves
------------------------------------------------------------
Corporacion Minera de Bolivia aka Comibol, Bolivia's state-run
mining company, and Franklin Mining are pleased to disclosed
that the Cerro Rico Mine holds more than 33 million ounces of
silver.  San Pedro, the fourth vein, has reserves projected to
be over 11 million ounces of silver.

According to the Comibol prospective reserve reports, San Pedro
is believed to contain approximately:

   -- 11,937,569 tons of ore,
   -- 208,320 kilos of silver and
   -- 62,496 metric tons of zinc,

roughly 7,346,196 ounces of silver and 137,741,184 pounds of
zinc.

This partnership encompasses the four veins of the famous Cerro
Rico de Potosi Mine (San Miguel, San Pedro, Mesapata and Alkco
Barreno).  The Cerro Rico (located southeast of the city of
Potosi, Bolivia), under Comibol's ownership, is considered the
world's largest silver deposit and one of the most popular
tourist attractions in Bolivia.

                About Franklin Mining, Inc.

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

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


AES TIETE: Moody's Upgrades Foreign Currency Rating to B1
---------------------------------------------------------
Moody's Investors Service upgraded the foreign currency rating
for the senior secured certificates due 2016 issued by Tiete
Certificates Grantor Trust to B1 from B3.  The rating outlook is
stable.  This rating action concludes the review that was
initiated on January 17, 2006.

Considering that dividend distributions from AES Tiete S.A. are
the primary source of funds to repay the certificates, the
rating action reflects Moody's view that AES Tiete will continue
to report sustainable improvements in financial performance over
the coming years, supported by its 30-year concession agreement,
the low production cost of its power generation plants, and
fully contracted revenues.  Moreover, the action incorporates
the improved credit quality of Eletropaulo Metropolitana
Eletricidade de Sao Paulo S.A. as the only energy off-taker of
AES Tiete.

Since January 2006, AES Tiete's revenues have been solely
derived from a bilateral contract with Eletropaulo that has a
final maturity in 2015.  The favorable price under the
electricity supply agreement with Eletropaulo and the low
production costs for AES Tiete's hydroelectric power plants have
resulted in EBITDA margins in the high 70% range on a
sustainable basis.  Since investment needs for plant maintenance
have been modest, AES Tiete has recorded strong free cash flow.  
A large portion of AES Tiete's cash flow generation has been
retained at the company due to limits on dividend distributions,
resulting in an accumulated cash position of about BRL850
million as of March 31, 2006.

Moody's believes that AES Tiete will continue generating strong
cash flow in the foreseeable future and expects dividend
coverage to stay above 1.8x as measured by the amount of
dividends available in USD to service principal and interest
obligations of the certificates. However, AES Tiete could be
prohibited from paying upstream dividends if it fails to meet
earnings tests.  This condition could result from currency
accounting effects even if the company has strong underlying
operating results.  Although the bulk of AES Tiete's total
adjusted debt and energy sales price are adjusted by the IGPM
inflation index, there could be a timing mismatch between
interest obligations and the company's annual energy price
adjustments.  Furthermore, the rating of the certificates
considers the devaluation risk that results from the currency
mismatch between the dividend flow from AES Tiete in Brazilian
Real and payments due on the certificates in US Dollars.

Under the provisions of the concession contract, AES Tiete is
obligated to expand its generating capacity by about 400 MW
within the State of Sao Paulo by December 2007.  Due to the lack
of available licenses for the construction of hydropower plants
in the state and insufficient gas supply for a thermal power
plant, AES Tiete has not been able to comply with the concession
requirement.  A decision by the Government of the State of Sao
Paulo regarding the resolution of this matter is pending. In any
event, the rating incorporates Moody's expectation that the new
plant will be financed by long-term debt with a repayment
schedule that will be compatible with AES Tiete's projected cash
flows.

The stable outlook considers Moody's expectation that AES Tiete
will have relatively predictable and sustainable cash flows of
over the next several years.

AES Tiete S.A. is a ten-dam hydroelectric generating company
located in the State of Sao Paulo, Brazil.  The company has been
granted the right to operate the dams pursuant to a 30-year
concession agreement.  For the twelve months ended March 31,
2006, AES Tiete reported net revenues of BRL1,299 million
(approximately US$560 million) and net earnings of BRL626
million (about US$270 million).


BANCO ABN AMRO: Moody's Reviews B1 Rating for Possible Upgrade
--------------------------------------------------------------
Moody's Investors Service placed Banco ABN AMRO Real S.A.'s B1
long-term foreign currency deposits under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO BARCLAYS: Moody's Reviews B1 Rating for Likely Upgrade
------------------------------------------------------------
Moody's Investors Service placed Banco Barclays S.A.'s B1
long-term foreign currency deposits under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO BMG: Moody's Reviews B1 Rating for Possible Upgrade
---------------------------------------------------------
Moody's Investors Service placed Banco BMG S.A.'s B1 long-term
foreign currency deposit rating under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO BONSUCESSO: Moody's Reviews B1 Rating & May Upgrade
---------------------------------------------------------
Moody's Investors Service placed Banco Bonsucesso S.A.'s B1
long-term foreign currency deposit rating under review for
possible upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO BRADESCO: Moody's Reviews B1 Rating for Possible Upgrade
---------------------------------------------------------------
Moody's Investors Service placed Banco Bradesco S.A.'s B1
long-term foreign currency deposits under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO CITIBANK: Moody's May Upgrade B1 Rating After Review
----------------------------------------------------------
Moody's Investors Service placed Banco Citibank S.A.'s B1
long-term foreign currency deposits under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO CRUZEIRO: Moody's Reviewing B1 Rating & May Upgrade
---------------------------------------------------------
Moody's Investors Service placed Banco Cruzeiro do Sul S.A.'s B1
long-term foreign currency deposit rating under review for
possible upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO DO BRASIL: Moody's Reviews B1 Rating for Likely Upgrade
-------------------------------------------------------------
Moody's Investors Service placed Banco do Brasil S.A.'s B1
long-term foreign currency deposits under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO DO ESTADO: Moody's Reviews B1 Rating & May Upgrade
--------------------------------------------------------
Moody's Investors Service placed Banco do Estado de Sao Paulo
S.A.'s B1 long-term foreign currency deposits under review for
possible upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO GMAC: Moody's Reviews B1 Rating for Possible Upgrade
----------------------------------------------------------
Moody's Investors Service placed Banco GMAC S.A.'s B1 long-term
foreign currency deposit rating under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO INDUSTRIAL: Moody's Reviews B1 Rating for Likely Upgrade
--------------------------------------------------------------
Moody's Investors Service placed Banco Industrial e Comercial
S.A. aka BICBANCO's B1 long-term foreign currency deposit rating
under review for possible upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO ITAU: Moody's May Upgrade B1 Rating After Review
------------------------------------------------------
Moody's Investors Service placed Banco Itau S.A.'s B1 long-term
foreign currency deposits under review for possible upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO ITAU (CI): Moody's Reviews B1 Rating for Likely Upgrade
-------------------------------------------------------------
Moody's Investors Service placed Banco Itau S.A. Cayman Islands'
B1 long-term foreign currency deposits under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO NACIONAL: Moody's May Upgrade B1 Rating After Review
----------------------------------------------------------
Moody's Investors Service placed Banco Nacional de
Desenvolvimento Economico e Social S.A. aka BNDES' B1 long-term
foreign currency deposit rating under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO NOSSA: Moody's Reviews B1 Rating for Possible Upgrade
-----------------------------------------------------------
Moody's Investors Service placed Banco Nossa Caixa S.A.'s B1
long-term foreign currency deposits under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO PANAMERICANO: Moody's Places B1 Rating Under Review
---------------------------------------------------------
Moody's Investors Service placed Banco Panamericano S.A.'s B1
long-term foreign currency deposits under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO SAFRA: Moody's Reviews B1 Rating for Possible Upgrade
-----------------------------------------------------------
Moody's Investors Service placed Banco Safra S.A.'s B1 long-term
foreign currency deposits under review for possible upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO SANTANDER: Moody's Reviews B1 Rating for Likely Upgrade
-------------------------------------------------------------
Moody's Investors Service placed Banco Santander Brasil S.A.'s
B1 long-term foreign currency deposits under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO SCHAHIN: Moody's Places B1 Rating Under Review
----------------------------------------------------
Moody's Investors Service placed Banco Schahin S.A.'s B1
long-term foreign currency deposits under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO SUDAMERIS: Moody's Reviews B1 Rating for Possible Upgrade
---------------------------------------------------------------
Moody's Investors Service placed Banco Sudameris Brasil S.A.'s
B1 long-term foreign currency deposits under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO SUMITOMO: Moody's May Upgrade B1 Rating After Review
----------------------------------------------------------
Moody's Investors Service placed Banco Sumitomo Mitsui
Brasileiro S.A.'s B1 long-term foreign currency deposits under
review for possible upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BANCO VOTORANTIM: Moody's Reviews Low B Ratings & May Upgrade
-------------------------------------------------------------
Moody's Investors Service placed these ratings of Banco
Votorantim S.A. under review for possible upgrade:

   -- Ba2 long-term foreign currency debt;
   -- B1 long-term foreign currency deposits; and
   -- Ba2 long-term foreign currency bond rating

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


BES INVESTIMENTO: Moody's Reviews B1 Rating for Likely Upgrade
--------------------------------------------------------------
Moody's Investors Service placed BES Investimento do Brasil
S.A.'s B1 long-term foreign currency deposit rating under review
for possible upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


CAIXA ECONOMICA: Moody's Reviews B1 Rating for Possible Upgrade
---------------------------------------------------------------
Moody's Investors Service placed Caixa Economica Federal's B1
long-term foreign currency deposits under review for possible
upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


COMPANHIA DE BEBIDAS: Moody's Reviews Ba2 Rating & May Upgrade
--------------------------------------------------------------
Moody's Investors Service has placed the Ba2 foreign currency
issuer rating of Companhia de Bebidas das Americas aka AmBev
under review for a possible upgrade to reflect the placing of
Brazil's key ratings under review for possible upgrade.  Ambev's
global local currency issuer rating of Baa3 and the foreign
currency rating of Baa3 for its debt issues remain unchanged
with a stable outlook.

AmBev, based in Sao Paulo, Brazil, is the largest brewer in
Latin America and the fifth largest brewer in the world.


COMPANHIA ENERGETICA: Gov't Says It Will Not Privatize Firm
-----------------------------------------------------------
Companhia Energetica de Sao Paulo said in a statement to Bolsa
de Valores do Estado de Sao Paulo or Bovespa -- the Sao Paulo
stock exchange -- that the state government does not expect to
privatize the company in 2007.

Business News Americas relates that the Sao Paulo state has not
taken steps to privatize Companhia Energetica.

As previously reported by the local press, the state government
had drafted a plan to put Companhia Energetica's generation
assets for sale after the restructuring of its BRL10-billion
debt.

Meanwhile, Companhia Energetica offers up new and existing
shares on the Sao Paulo stock market, BNamericas states.  Morgan
Stanley and UBS are managing the transaction.

Press reports should not influence investors' decision whether
to buy the shares on offer or not, Companhia Energetica told
BNamericas.

Reports say that Companhia Energetica had raised US$1.4 billion
in voting and non-voting-right shares.  The issue is part of a
plan to raise BRL5.5 billion to restructure debt.

The shares, according to reports, were sold at BRL14.5 per
1,000.

Companhia's shares were listed at level 1 -- the second highest
corporate governance level -- in Bovespa, BNamericas states.

Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao
Paulo is Brazil's and Latin America's third-largest electricity
generator, with 7,456 megawatts of installed capacity and 3,916
megawatts of assured energy.  It is a state-owned company whose
primary shareholder is the government of the state of Sao Paulo,
with 74% of the voting common shares.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
July 4, 2006, Standard & Poor's Ratings Services raised its
corporate credit rating on Companhia Energetica de Sao Paulo and
the ratings on several of CESP's debt issues to CCC+ from CCC.  
At the same time, Standard & Poor's raised its Brazil national
scale ratings on CESP and several of the company's issues to
'brCCC+' from 'brCCC'.  S&P revised the outlook to positive from
stable in both scales.


COMPANHIA ENERGETICA: Moody's Reviews Ratings & May Upgrade
-----------------------------------------------------------
Moody's Investors Service has placed the ratings of Companhia
Energetica de Sao Paulo aka CESP on review for possible upgrade.

Ratings affected are:

   -- Global Local Currency Corporate Family Rating: B2;

   -- US$800 million unsubordinated unsecured Medium-Term
      Notes Program: B3; and

   -- US$300 million 10% Senior Unsecured Notes due 2011 issued
      under the MTN program: B3.

With over 73% of its voting shares directly and indirectly owned
by the Government of the State of Sao Paulo, CESP is a
government-related issuer in accordance with Moody's rating
methodology entitled "The Application of Joint Default Analysis
to Government-Related Issuers". Moody's methodology for GRIs
systematically incorporates into the rating the company's stand-
alone credit risk profile or Baseline Credit Assessment or BCA
as well as the likelihood that a government would provide
extraordinary support to that company's debt obligations.  The
ratings of CESP result from the application of a joint-default
analysis of the company's BCA, the Ba2 rating of the State of
Sao Paulo, and Moody's view of dependence (the likelihood that
both entities would default at the same time), and the
probability of extraordinary support from the controlling
shareholder.  The BCA of a GRI is expressed on a 1-21 scale or
as a range within the 1-21 scale, according to the issuer's
preference, where 1 represents the equivalent risk of a Aaa, 2 a
Aa1, 3 a Aa2 and so forth. CESP's ratings incorporate a BCA that
is currently in the 17-19 range.

The rating action is prompted by the recent successful capital
increase of about BRL3 billion and the issuance of some US$650
million in a 4-year receivables securitization fund, as part of
a capital restructuring program.  In addition, CESP intends to
offer notes in the international capital markets under its
existing medium-term notes program, and plans to issue some BRL2
billion in 10-year local currency debentures during the third
quarter of 2006.  Proceeds from the capital increase and new
borrowings are expected to be used to repay and re-profile debt,
resulting in a reduction of CESP's leverage and refinancing
risk.  Also the debt restructuring should help alleviate some of
the current tight head room under interest coverage covenants of
the MTN program.

Moody's review of CESP's BCA and ratings will focus on the
company's refinancing risk following the capital restructuring
and its ability to generate sufficient internal cash flow to
meet financial obligations.

Headquartered in Sao Paulo, Brazil, CESP -- Companhia Energetica
de Sao Paulo is the country's second largest power generator,
majority owned by the State of Sao Paulo.  CESP operates 6
hydroelectric plants with total installed capacity of 7,456 MW
and reported net revenues of BRL1,888 million (approximately
US$814 million) in the last twelve months through Mar. 31, 2006.


HSBC BRASIL: Moody's Reviews B1 Rating for Possible Upgrade
-----------------------------------------------------------
Moody's Investors Service placed HSBC Bank Brasil S.A.-Banco
Multiplo's B1 long-term foreign currency deposits under review
for possible upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


MRS LOGISTICA: Won't Tap Stock Markets to Raise Investment Funds
----------------------------------------------------------------
MRS Logistica will not turn to stock markets to raise money to
be used in its investment plans, Business News Americas reports,
citing Gazeta Mercantil.

Julio Fontana, the president of MRS Logistica, told BNamericas,
that the firm has drafted its five-year US$1 billion plan to
invest in rolling stock and modernization to tracks and
technology.

BNamericas notes that MRS Logistica is investing BRL650 million
in upgrades and rolling stock purchases in 2006.

MRS Logistica has the capital guaranteed, BNamericas relates,
citing Mr. Fontana.

"We have sufficient capital and our shareholders decided against
opening up more capital," Mr. Fontana told BNamericas.

MRS Logistica operates 1,700km of track in Sao Paulo, Minas
Gerais, and Rio de Janeiro.  It primarily transports cargo for
major shareholders.

                        *    *    *

As reported on Nov. 10, 2005, Standard & Poor's Ratings Services
revised the outlook on the BB- long-term foreign currency rating
of MRS Logistica S.A. to positive from stable, following the
revision of the foreign currency outlook of the Federative
Republic of Brazil.


PETROLEO BRASILEIRO: Moody's Reviews Ba2 Rating & May Upgrade
-------------------------------------------------------------
Moody's Investors Service placed the Ba2 Corporate Family Rating
of Petroleo Brasileiro S.A. aka Petrobras under review for
possible upgrade in conjunction with its announced review of
Brazil's Ba2 foreign currency country ceiling.  The CFR is
constrained by the foreign currency country ceiling.  The rating
review will not affect Petrobras's A2 global local currency
rating and the Baa2 rating for its various foreign currency debt
issues, which pierce the country ceiling.

Petrobras is an integrated petroleum company headquartered in
Rio de Janeiro, Brazil.


TRANSAX INT'L: Medlink Commences Contract With Cabesp
-----------------------------------------------------
Transax International Limited disclosed that its wholly owned
subsidiary, MedLink, has launched its previously announced
contract with Caixa Beneficente dos Funcionarios do Banespa, or
Cabesp, in Brazil.

Cabesp is among Brazil's 50 largest healthcare companies. It has
110,000 users in the state of Sao Paulo and operates through a
network of 13,000 medical providers, including doctors' offices,
hospitals, clinics and labs.  The Cabesp provider network covers
medical consultations, exams, clinical therapy, surgery, home
care services, in-patient procedures, as well as mental health
and dental assistance. Cabesp, formed in 1968, provides most of
its healthcare services in the state of Sao Paulo, Brazil's main
economic area.

MedLink's implementation team will monitor Cabesp's providers,
including the provider's physical and operational environment.
Additionally, it will provide training along with help-desk
support. During the launch phase, the business rules for all
lives covered under Cabesp's health plans will be tested and
commissioned.  Cabesp's installed base will consist of
approximately:

   -- 896 Point-Of-Sales or POS,
   -- 904 Interactive Voice Response or IVR and
   -- 11 PC NET solutions.

Stephen Walters, President & CEO of Transax, commented, "We are
pleased to have worked together with Cabesp over the past three
months to prepare for the launch.  Given our existing exposure
throughout Brazil, 47% of the Cabesp provider base overlaps with
our existing installed provider base and would require minimal
upgrades to come online. During the first phase of our rollout,
we expect to have 350 Cabesp providers connected by the end of
January 2007 -- generating some 30,000 transactions per month.  
Within one year, we anticipate connecting 1,443 providers,
generating 70,000 transactions per month." Mr. Walters
continued, "From a financial perspective, we expect to record
revenues immediately and this is expected to continue to
increase throughout the remainder of the year and well into
2007."

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

                     Going Concern Doubt

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


UNIAO DE BANCOS: Moody's Reviews B1 Rating for Likely Upgrade
-------------------------------------------------------------
Moody's Investors Service placed Uniao de Bancos Brasileiros
S.A. -Unibanco's B1 long-term foreign currency deposits under
review for possible upgrade.

Moody's Investors Service placed on review for possible upgrade
the long-term foreign currency deposit ratings of certain
Brazilian banks.

These rating actions are the direct result of Moody's having
placed on review for possible upgrade Brazil's Ba3 country
ceiling for foreign currency bonds and notes, as well as
Brazil's B1 country ceiling for foreign currency bank deposits.

Moody's noted that the ratings review does not affect the
foreign currency bond ratings of Brazilian banks, except those
of Banco Votorantim, because of the particular mix of rating
factors including the issuer's global local currency rating, the
foreign currency government bond rating, the country ceiling for
bonds, and the debt's eligibility to pierce that ceiling.  
Moody's also noted that these actions do not affect the
financial strength ratings of the rated Brazilian banks.


* CITY OF CURITIBA: Moody's Reviews Ba2 Rating & May Upgrade
------------------------------------------------------------
Moody's Investors Service placed the City of Curitiba's Ba2
foreign currency rating under review for a possible upgrade to
reflect the placing of Brazil's foreign currency country ceiling
under review for possible upgrade.  Curitiba's local currency
rating of Ba1 and national scale rating of Aa1.br remain
unchanged with a stable outlook.


* BRAZIL: Moody's Reviews Low B Ratings for Possible Upgrade
------------------------------------------------------------
Moody's Investors Service placed Brazil's key ratings on review
for possible upgrade in light of reduced credit vulnerabilities
thanks in large part to a continued reduction in external debt
ratios and an improved government debt structure.

The ratings under review include the Ba2 foreign currency
country ceiling for bonds and notes, as well as the government's
Ba3 foreign- and local-currency bond ratings.  Also under review
will be the B1 country ceiling for foreign currency bank
deposits.

Moody's noted that the review will assess Brazil's ability to
preserve trends that, to date, have led to a significant
reduction in external vulnerability indicators and have
supported relatively stable government debt ratios.

"The review will focus on Brazil's capacity to manage economic
conditions that could arise in the future as a result of a less
benign international economic environment, including the
presence of higher world interest rates," said Moody's Vice
President Mauro Leos.  "It will be particularly important to
have a better understanding of the potential impact of scenarios
that incorporate a deceleration in world economic growth and
lower commodity prices on Brazil's future export performance."

As regards the fiscal outlook, Mr. Leos indicated that during
the review process special attention will be given to medium-
term challenges that the government faces as a result of a rigid
spending structure which has led to a persistent increase in
primary spending, a condition that appears to be inconsistent
with the government's intention to assure fiscal sustainability
over time.

"We will also evaluate the increasing role that non-resident
investors play in the domestic capital market in order to
determine the possible impact of potential portfolio flow
volatility," Mr. Leos said.

The A3 local currency deposit ceiling as well as the A3 local
currency guideline -- the highest possible rating that could be
assigned to obligors and obligations denominated in local
currency within the country -- are not affected by this review.




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


AAD BALANCED: Final Shareholders Meeting Is Set for Aug. 15
-----------------------------------------------------------
AAD Balanced Company (1) Limited's final shareholders meeting
will be at 10:00 a.m. on Aug. 15, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          Scott Aitken
          Connan Hill
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


ANTHRACITE (FRM): Final Shareholders Meeting Is on Aug. 21
----------------------------------------------------------
Anthracite Balanced Company (FRM) Limited's final shareholders
meeting will be at 10:00 a.m. on Aug. 21, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          Scott Aitken
          Connan Hill
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


ANTHRACITE (JR-32): Last Shareholders Meeting Is Set for Aug. 21
----------------------------------------------------------------
Anthracite Balanced Company (JR-32) Limited's final shareholders
meeting will be at 10:00 a.m. on Aug. 21, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          Scott Aitken
          Connan Hill
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


ANTHRACITE (R-1): Last Shareholders Meeting Will be on Aug. 21
--------------------------------------------------------------
Anthracite Balanced Company (R-1) Limited's final shareholders
meeting will be at 10:00 a.m. on Aug. 21, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          Scott Aitken
          Connan Hill
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


ANTHRACITE (R-3): Final Shareholders Meeting Is on Aug. 21
----------------------------------------------------------
Anthracite Balanced Company (R-3) Limited's final shareholders
meeting will be at 10:00 a.m. on Aug. 21, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          Scott Aitken
          Connan Hill
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


BRUNSWICK (ONE): Filing of Proofs of Claim Is Until Aug. 24
-----------------------------------------------------------
Brunswick Partners One Limited's creditors are required to
submit proofs of claim by Aug. 24, 2006, to the company's
liquidators:

          Edward Allanby
          c/o Maples and Calder, Attorneys-at-Law
          P.O. Box 309GT, Ugland House
          South Church Street, George Town
          Grand Cayman, Cayman Islands

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

Brunswick Partner's shareholders agreed on July 6, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


BRUNSWICK (SEVEN): Proofs of Claim Filing Is Until Aug. 24
----------------------------------------------------------
Brunswick Partners Seven Limited's creditors are required to
submit proofs of claim by Aug. 24, 2006, to the company's
liquidators:

          Edward Allanby
          c/o Maples and Calder, Attorneys-at-Law
          P.O. Box 309GT, Ugland House
          South Church Street, George Town
          Grand Cayman, Cayman Islands

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

Brunswick Partner's shareholders agreed on July 6, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


EURUS CAPITAL: Creditors Must File Proofs of Claim by Aug. 24
-------------------------------------------------------------
Eurus Capital Limited's creditors are required to submit proofs
of claim by Aug. 24, 2006, to the company's liquidators:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited
          P.O. Box 908, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914-6305

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

Eurus Capital's shareholders agreed on July 13, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


GLENDALE INVESTMENTS: Proofs of Claim Must be Filed by Aug. 24
--------------------------------------------------------------
Glendale Investments Limited's creditors are required to submit
proofs of claim by Aug. 24, 2006, to the company's liquidators:

          Buchanan Limited
          P.O. Box 1170, George Town
          Grand Cayman, Cayman Islands

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

Glendale Investments' shareholders agreed on July 14, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Timothy Haddleton
          P.O. Box 1170, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-0355
          Fax: (345) 949-0360


GOOOS AIRCRAFT: Last Day to File Proofs of Claim Is on Aug. 24
--------------------------------------------------------------
Gooos Aircraft Leasing Limited's creditors are required to
submit proofs of claim by Aug. 24, 2006, to the company's
liquidators:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited
          P.O. Box 908, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914-6305

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

Gooos Aircraft's shareholders agreed on July 13, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


GRAPHITE INVESTMENTS: Last Shareholders Meeting Is on Aug. 21
-------------------------------------------------------------
Graphite Investments (Cayman) Limited's final shareholders
meeting will be at 10:00 a.m. on Aug. 21, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          Scott Aitken
          Connan Hill
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


PACIFIC VIEW: Deadline for Proofs of Claim Filing Is on Aug. 24
---------------------------------------------------------------
Pacific View Offshore Fund, Ltd.'s creditors are required to
submit proofs of claim by Aug. 24, 2006, to the company's
liquidators:

          Linburgh Martin
          John Sutlic
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands

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

Pacific View's shareholders agreed on April 30, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

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


SUNFISH INVESTMENTS: Proofs of Claim Must be Filed by Aug. 24
-------------------------------------------------------------
Sunfish Investments Limited's creditors are required to submit
proofs of claim by Aug. 24, 2006, to the company's liquidators:

          Buchanan Limited
          P.O. Box 1170, George Town
          Grand Cayman, Cayman Islands

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

Sunfish Investments' shareholders agreed on July 14, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Timothy Haddleton
          P.O. Box 1170, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-0355
          Fax: (345) 949-0360


TANZANITE FINANCE: Final Shareholders Meeting Is Set for Aug. 21
----------------------------------------------------------------
Tanzanite Finance IV Limited's final shareholders meeting will
be at 10:00 a.m. on Aug. 21, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          Scott Aitken
          Connan Hill
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7755
          Fax: (345) 949-7634


VERTEX CHINA: Last Day to File Proofs of Claim Is on Aug. 24
------------------------------------------------------------
Vertex China Investment Management Limited's creditors are
required to submit proofs of claim by Aug. 24, 2006, to the
company's liquidators:

          Lai Kar Yan (Derek)
          Darach E. Haughey
          35th Floor, One Pacific Place
          88 Queensway, Hong Kong
          Tel: (852) 2852 6495
          Fax: (852) 2850 8362

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

Vertex China's shareholders agreed on June 9, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.




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


COEUR D'ALENE: Net Income Reaches US$32.6MM in Second Quarter
-------------------------------------------------------------
Coeur d'Alene Mines Corp. reported all-time record quarterly net
income of US$32.6 million, or US$0.11 per diluted share, for the
second quarter of 2006, compared to a net loss of US$1.7
million, or US$0.01 per diluted share, for the year-ago period.  
Cash provided by operations was an all-time quarterly record of
US$32.0 million, compared to US$9.1 million of cash used by
operations in the year-ago quarter.

Results for the second quarter of 2006 include the favorable
impact of the company's strategic sale of 100% of the shares of
Coeur Silver Valley, specifically a one-time pre-tax gain of
US$11.2 million.  The quarter also includes pre-tax income of
US$1.4 million from CSV operations at the Galena mine.  
Excluding the one-time gain and the income from Galena, the
company's net income in the second quarter of 2006 was still a
record US$20.1 million, or US$0.07 per diluted share.

For the first six months of 2006, the company reported record
net income of US$47.0 million, or US$0.16 per diluted share,
compared to a net loss of US$2.8 million, or US$0.01 per share,
for the same period of 2005.  Excluding the one- time gain
mentioned above and US$2.0 million of pretax income from
discontinued operations, the company's net income for the first
six months of 2006 was still a record US$33.9 million, or
US$0.12 per diluted share.

Metal sales from continuing operations in the second quarter of
2006 increased 61 percent to US$54.0 million from US$33.5
million in the year-ago quarter.  Metal sales from continuing
operations for the first six months of 2006 increased 50 percent
to US$98.9 million from US$65.7 million in the year-ago period.

In commenting on the company's performance relative to the year-
ago quarter, Dennis E. Wheeler, Chairman, President and Chief
Executive Officer, said, "The company's operating performance
improved sharply due to improvement in nearly all of our key
business indicators. Specifically, the company reported higher
silver production, lower per-ounce cash production costs for
silver, and sharply higher realized prices for silver and gold."

Mr. Wheeler added, "During the quarter, we completed the
profitable sale of our interest in Coeur Silver Valley as part
of our strategy to focus our growth on lower cost, longer-life
mines.  That transaction generated US$15 million in cash for the
company.  At the same time, by eliminating the highest-cost mine
in our system, where silver cash production costs were recently
running above US$10 per ounce, the transaction contributed to a
significant reduction in the company's overall per-ounce silver
cash production cost.  We are pleased that we not only met our
strategic objective with this sale but that we also reported an
increase in silver production from continuing operations due
largely to strong performance at Cerro Bayo combined with the
ounces generated by our Australian interests."

Mr. Wheeler said, "Gold and silver prices have remained at the
kind of robust levels that enable the company to generate
healthy income and cash flow.  Our bullish view of the precious
metals markets remains unchanged.  Growth in silver demand
appears to be particularly robust in the industrial sector, and
we expect healthy price levels to continue.  At the same time,
we are counting on strong operating performance by our mines in
the second half of the year and expect to see silver production
at noticeably higher levels than in the first half, with the
Cerro Bayo and Rochester mines, in particular, setting the
pace."

              Highlights by Individual Property

Rochester (Nevada)

Silver cash cost per ounce declined by 66 percent, relative to
the year-ago quarter, due to a 27 percent increase in gold
production.  Silver production was down modestly due to the
short-term impact of heavy rains that affected silver in the
solution flow.

Cerro Bayo (Chile)

Silver production was 53% above the level of the first quarter
of 2006 as grades returned to more typical levels as planned.  
At US$1.82, silver cash cost per ounce in the second quarter of
2006 was the lowest in the Coeur system and was significantly
below that reported for the first quarter of 2006 due largely to
higher silver production.  Silver production was 14 percent
above that of a year ago due to an increase in tons milled.  
Gold production declined relative to the year-ago period due to
lower grades.  Lower gold production resulted in a reduced by-
product credit, which caused silver cash cost per ounce to
increase relative to the year-ago quarter.

Martha (Argentina)

Silver and gold production were above the levels of the year-ago
quarter -- and sharply above the levels of the first quarter of
2006 -- primarily because the operation encountered grades for
both metals that were much higher than forecast in the mine
plan.
       
Silver cash cost per ounce increased relative to the year-ago
period due to higher royalties resulting from higher market
prices.

Endeavor (Australia)

Silver production was above the level of the second quarter of
2005 because year-ago results reflected only one month of
production data following Coeur's acquisition of this interest
in June of 2005.  Production rates at Endeavor have not yet
returned to expected quarterly levels as the mine continues to
recover from a rock fall that occurred in October 2005.  Coeur
currently expects production levels to return to normal levels
during the fourth quarter of 2006.
       
Cash production cost in the second quarter of 2006 was above the
level of a year ago due to higher smelting and refining charges
associated with the increased market value of silver deductions
charged pursuant to the smelting and refining contracts.

Broken Hill (Australia)

Silver production was 528,041 ounces, with a cash cost per ounce
of US$3.27.  Cash production cost per ounce was above the level
of the preceding quarter due to higher refining and smelting
charges associated with the increased market value of silver
deductions charged pursuant to the smelting and refining
contracts.  (Year-ago comparisons for Broken Hill are not
meaningful because the mineral interest was acquired in the
third quarter of 2005.)  In addition, at Broken Hill, proven and
probable silver mineral reserve ounces increased 20 percent to
18.0 million contained ounces as of June 2006 from 15.0 million
contained ounces at year-end 2005.

        Balance Sheet and Capital Investment Highlights

The company had US$393.3 million in cash and short-term
investments as of June 30, 2006.  Capital investment during the
second quarter of 2006 totaled US$25.7 million, most of which
was spent on the Kensington (Alaska) gold project.

   -- At Kensington, capital investment totaled US$20.9
      million during the quarter as the company continued
      with an aggressive construction schedule.  The company is
      aiming to complete the project and start producing gold
      near the end of 2007.  Recent activity has focused on
      construction of the mill building and completion of major
      earthworks.  Kensington is expected to produce 100,000
      ounces of gold annually.

   -- At San Bartolome, capital investment totaled US$1.5
      million during the quarter.  The company is aiming to
      complete construction activities near the end of 2007.   
      During the second quarter, the construction activities
      continued to focus on rough-cut grading of the plant site
      and construction of roads.  Coeur has been pleased by the
      recent cooperative and productive actions of the
      Government of Bolivia.  In particular, the company
      recently completed renegotiation of a contract with the
      Bolivian State Mining Company Comibol concerning timing
      of lease payments; entered into an agreement with Comibol
      that calls for joint exploration of certain Comibol
      silver properties in Potosi; and received a letter of
      assurance from the Minister of Mines regarding the
      government's support for the San Bartolome project.  
      Based on such developments, Coeur is proceeding with
      engineering and procurement activities.  San Bartolome
      is expected to produce 8 million ounces of silver
      annually.

                         Exploration

During the second quarter, the company acquired two new
exploration properties in the Santa Cruz province near the
company's Martha mine via option-to-purchase agreements with
private Argentinean interests. The largest is the Costa
property, at 98,500 acres, which lies about 90 miles north-
northwest of Martha.  The second property, called El Aguila, is
located in the eastern part of the province approximately 90
miles north of the town of San Julian.  The company has
commenced exploration activities at both properties.

In the second quarter, the exploration program focused primarily
on existing properties, with an emphasis on reserve
development/delineation drilling and discovery of new
mineralization at Cerro Bayo, Martha, and Kensington.  
Approximate drilling totals were 62,000 feet at Cerro Bayo,
17,000 feet at Martha, and 23,000 feet at Kensington.


          Coeur D'alene Mines Corporation And Subsidiaries
             Consolidated Statements Of Operations And
                   Comprehensive Income (LOSS)
                          (Unaudited)

                    Three Months              Six Months
                   Ended June 30,            Ended June 30,
                  2006         2005         2006      2005

Revenues            (In thousands except per share data)

Sales of metal  US$54,041   US$33,504    US$98,895  US$65,739

Costs and
Expenses
Production
costs
applicable
to sales         21,587       18,811      41,687      36,153

Depreciation
and
depletion         6,989        4,372      13,307       8,521

Administrative
and
general           4,528        5,156       9,618      10,705

Exploration        1,934        2,896       3,901       5,605

Pre-development       --        3,718         --        6,086

Litigation
settlements         469           --        469        1,600


Total cost and
Expenses         35,507       34,953       68,982       68,670

Other Income
And Expense

Interest and other
income           4,794        1,335        7,314        3,284

Interest expense,
Net of
Capitalized
Interest          (367)        (562)        (888)      (1,132)

Total other
income
and expense      4,427          773        6,426        2,152


Income (loss)
From continuing
operations
before income
taxes           22,961         (676)      36,339         (781)

Income tax
benefit
(provision)     (2,829)         147       (2,481)        (532)


Income (loss)
from
continuing
operations     20,132          (529)      33,858        (1,313)

Income (loss)
from
discontinued
operations,
net of income
taxes           1,357         (1,172)      1,968        (1,533)

Gain on sale of
Net assets of
discontinued
operations     11,159           --        11,159           --

Net Income
(Loss)          32,648        (1,701)      46,985       (2,846)

Other
comprehensive
income (loss)   1,736           121        1,740          120

Comprehensive
Income
(Loss)       US$34,384   US$(1,580)     US$48,725   US$(2,726)

Basic And Diluted
Income (Loss)
Per Share

Basic income
(loss)
per share:

Income (loss)
from
continuing
operations    US$0.07     US$(0.00)      US$0.13    US$(0.00)

Income (loss)
from
discontinued
operations      0.05         (0.01)         0.05       (0.01)

Net income
(loss)       US$0.12      US$(0.01)      US$0.18    US$(0.01)

Diluted
income
(loss)
per share:

Income (loss)
from
continuing
operations   US$0.07      US$(0.00)       US$0.12   US$(0.00)

Income (loss)
from
discontinued
operations     0.04          (0.01)          0.04      (0.01)

Net income
(loss)      US$0.11       US$(0.01)       US$0.16   US$(0.01)

Weighted
average
number of
shares
of common
stock

Basic       277,474        240,028        265,049    240,007
Diluted     302,188        240,028        289,832    240,007


Coeur d'Alene Mines Corp. -- http://www.coeur.com/-- is   
the world's largest primary silver producer, as well as a
significant, low-cost producer of gold.  The Company has mining
interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia
and Australia.

                        *    *    *

Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poors' B- rating.




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


* COLOMBIA: Postpones Airport Concession Bidding Twice
------------------------------------------------------
The deadline for the submission of bids for the concession to
operate the airports in San Andres and Providencia has been
called off for the second time, Business News Americas reports,
citing Martin Gonzalez -- the spokesperson of the Aerocivil,
Colombia's civil aviation authority.

Mr. Gonzalez told BNamericas that the new date for the
submission is yet to be decided.

"The deadline for the closure of the bidding process had been
moved [from July 28] to August 3 and meetings are currently
being held to decide the new date for the conclusion of the
process," Mr. Gonzalez was quoted by BNamericas as saying.

According to BNamericas, the call for tenders has occurred
almost at the same time with the bidding process for the El
Dorado airport.  Because of this, the deadline for the
submission of bids for the San Andres and Providencia concession
was pushed back.

Mr. Gonzalez told BNamericas, "There was a request [to push back
the deadline] from the majority of the bidding companies,
because three of these companies are taking part in the bidding
process for El Dorado and they were finding it hard to provide
all of the documentation in time."

The report underscores that six groups have bought bidding
documents for the concession:

      -- Corporacion America,
      -- Odinsa,
      -- Valores y Construcciones,
      -- Ramon Pereira Visbal,
      -- Stratis, and
      -- Estudios Tecnicos Universal.

BNamericas relates that the winner in the bidding was expected
to start running the airports before the end of the year.  The
concession contract would last for 20 years and outlines COP45
billion in investments for the first few years of activities.

The San Andres and Providencia airports will be run under one
concessionaire to make sure that decisions on operation and
investment would not violate the contract, BNamericas states.

                        *    *    *

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 U B A
=======


* CUBA: Launches Generator Complex in Holguin
---------------------------------------------
Cuba's President Fidel Castro has inaugurated a generator
complex in Holguin as part of its energy saving program, Radio
Havana Cuba reports.

Radio Havana relates that as oil price increased over US$74 in
New York and experts predict the inevitable exhaustion of
reserves, Cuba has undertaken a program called "Energy
Revolution" -- which includes the construction of the Holguin
generator complex -- to try out more rational policies of
electricity generation and consumption.

The Holguin generator complex consists the largest battery of
small, synchronized generators that uses diesel fuel, which is
less expensive than petroleum.  It is a link in a system that
includes similar enclaves in more than 100 of Cuba's 169
municipalities.  The system aims to lessen fuel consumption for
the generation of vital energy.

Radio Havana underscores that Cuba's obsolete thermoelectric
plants that have kept the national energy system going needed to
be replaced.  In five months, construction of the energy
producing system concluded, costing about US$50 million.

According to the report, the construction of the system that
concluded in record time contrasted sharply with that of
traditional thermoelectric plants requiring up to six years of
work before they can generate 800 megawatts.

As part of the "Energy Revolution" program, the government has
also been selling cheap energy saving electrical appliances that
would replace oil, inefficient energy-sapping refrigerators,
Radio Havana says.  More than 10 million appliances have been
sold and tens of thousands of families have been able to stop
using kerosene and alcohol for fuel.

Kerosene and alcohol are both more expensive than electricity
and are more harmful to health.

The government, says Radio Havana, is also saving two-thirds of
the country's oil expenditures, which used to cost millions of
dollars each year.

Meanwhile, studies are being conducted on wind energy and
ethanol as alternatives in producing energy, Radio Havana
states.

                        *    *    *

Moody's assigned these ratings to Cuba:

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




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


* DOMINICAN REPUBLIC: Prepares Bill for Free Trade Pact with US
---------------------------------------------------------------
The government of the Dominican Republic is preparing a bill for
the implementation of the DR-CAFTA, a free trade agreement with
the United States, Guarocuya Felix, the director of the National
Planning Office, told the DR1 Newsletter.

Hoy relates that the bill was created to solve the conflicts
that have caused a delay in the implementation of the DR-CAFTA.

The bill would be presented to the congress when the new
legislative session begins on Aug. 16, DR1 reports, citing Mr.
Felix.

According to DR1, the bill will be submitted after the talks
with the US Trade Representative Office have concluded.  The
discussions would revolve around:

   -- pending documentation for the updating of:

      * the 65-00 Copyright Law,
      * 20-00 Industrial Property Law,
      * Law 173 (1966) on Foreign Dealerships,
      * Law on Bribery (new), and
      * Procurement Law (new);  
    
   -- the passing of resolutions on:

      * environment;
      * labor;
      * customs:

        a) digital products,
        b) rules of origin,
        c) temporary internment, and
        d) expedite dispatching of merchandise; and

      * agriculture:

         a) import licenses,
         b) sanitary and phyto-sanitary inspection systems,
         c) agriculture safeguards, and
         d) quotas; and

   -- decrees regarding:

      * general safeguards,
      * numeric portability (mobile phones); and

   -- creating of an institution at the PUCMM university for
      resolution of conflicts on domain names.  

The International Monetary Fund is visiting the Dominican
Republic to evaluate the implementation of institutional reforms
stated in the accord it signed with the country, 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: Regulator to Ink Renewal Contract with Peruvian Firm
---------------------------------------------------------------
Conatel, the telecoms regulator in Ecuador, will sign this week
a contract with Peru's Latin Pacific Capital to assist in
renegotiating existing mobile telephony contracts with operators
Porta and Movistar Ecuador, La Hora reports.

According to Business News Americas, Conatel expects the
attorney general to grant this week its approval on the
US$680,000 contract.

The comptroller was expected to approve the contract on Aug. 2,
BNamericas relates.

Once the contract gets the necessary approvals, Latin Pacific
will have 25 working days to present the price Porta and
Movistar should pay on the renewal of their concession
contracts, BNamericas 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


* ECUADOR: Pacifictel Inks Partnership Agreement with Alegro PCS
----------------------------------------------------------------
Pacifictel, the state fixed line operator of Ecuador, has
entered into a partnership with Alegro PCS to start selling
fixed line telephony lines in October, La Hora reports.

According to Business News Americas, Pacifictel and Alegro
agreed to both sell fixed lines with the telephone included at
US$270 with a US$0.1 per minute tariff.

The lines the two firms will sell can be obtained in all
provinces where Pacifictel and Alegro operate, BNamericas
relates.

                        *    *    *

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: Oil Bill Could Reach US$1.1 Billion This Year
------------------------------------------------------------
Julio Villagran, the head of El Salvador's oil products
distributors association, told Business News Americas that the
nation's oil bill could reach as much as US$1.1 billion this
year due to higher prices.

BNamericas relates that Mr. Villagran said that El Salvador's
oil bill was US$320 million in 1999.

Currently, El Salvador consumes 114 million liters of gasoline
and diesel per month, BNamericas reports, citing Mr. Villagran.

Higher prices have meant lower sales at the pump and that
service stations' convenience stores are more profitable than
fuel sales, Mr. Villagran told BNamericas.

                        *    *    *

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


* EL SALVADOR: State Firm Selling Bidding Rules for El Chaparral
----------------------------------------------------------------
Comision Ejecutiva Hidroelectrica del Rio Lempa aka CEL, the
state-run power firm of El Salvador, said in a statement that it
will sell bidding rules for the 65.3-megawatt El Chaparral
hydroelectric project from Aug. 7 to Aug. 18.

Business News Americas reports that rules will cost US$1,000.

That the site for the project, which would cost US$90 million,
would be the lower area of the Torola river basin in the San
Miguel department.  The project would include a substation and
access roads.

Nicolas Salume, the head of CEL, had told BNamericas that
entities interested in the project include:

     -- France's Alstom,
     -- Mexican group Ideal, and
     -- German firms Voigt and Siemens.

BNamericas underscores that the submission of offers for the
project would end on Nov. 7.

The report says that El Chaparral could start operations in
2010.  It is one of the four hydroelectric projects CEL is
developing.

The Central American Bank for Economic Integration will help
fund the project, 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




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


* HAITI: UN Says Country Has Foundations for Recovery
-----------------------------------------------------
Kofi Annan, the Secretary-General of the United Nations, said in
his latest report on the organization's mission to Haiti that
the country is ready for peaceful development after the
successful elections earlier this year and the subsequent
formation of a broad-based government with ambitious but
balanced policy goals.

Howver, Mr. Annan warned that challenges faced by Haiti remain
so vast, especially in tackling crime and insecurity, that
international donors must be willing to increase aid for Haitian
authorities.

Mr. Annan noted in his report to MINUSTAH, the Security Council
on the UN Stabilization Mission in Haiti, that the country is
poised for a fresh start.

He said, "A new page in the history of Haiti has been turned.  
Today, the people of Haiti have a unique opportunity to break
the cycle of violence and poverty and move towards a future of
stable and peaceful development."

Mr. Annan praised Haiti's President Rene Preval for reaching out
to all political and social forces in the country for
reconciliation and dialogue.  

However, Mr. Annan said he was concerned about the security
situation across Haiti, particularly in the capital Port-au-
Prince, where the number of kidnappings by armed groups has
started rising again after declining at the beginning of 2006.

Illegal drug and arms trafficking remains a major problem, and
has led some civil society groups to criticize the Haitian
government and MINUSTAH for their perceived inadequate response.  
To address this, Mr. Annan calls for strengthening the MINUSTAH
police with SWAT-qualified personnel and equipment, as part of
its formed police units, as well as with expert advisers in
counter-kidnapping and anti-gang operations, as part of its
police contingent, to better support the Haitian National
Police.

Mr. Annan cautioned against inflated expectations, saying, "It
is important to recognize that there are limitations (to
MINUSTAH's mandate).  While the Mission intends to maximize its
crime prevention role, it will not be able to respond to
criminality in an exhaustive manner.  Neither will the MINUSTAH
security presence at border crossings and selected ports and
crossroads be sufficient to fully deter illicit activities,
including the trans-shipment of drugs and weapons."

Mr. Annan called for international help, particularly from
regional partners like the Organization of American States and
the Caribbean Community.

                        *    *    *

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: Will Conduct Petroleum Bidding in September
-------------------------------------------------------
The Honduran government will entertain bids from foreign
petroleum companies in September.  In relation to this, the
government has created a commission that would handle the
process.  Among the panel members are Cardinal Oscar Andres
Rodriguez and journalist Rossana Guevara, local paper El Heraldo
reports.  

The government intends to acquire 15.7 million barrels of fuel
with an estimated value of US$100 million.  

Among those, which have shown interest in the bidding, are
Petroleos de Venezuela SA, Carribbean Petroleum Chemical and two
companies from the United States and England.

President Manuel Zelaya previously said that his country will
buy oil from among those which offers the best deal.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

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




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


SUGAR COMPANY: Jamaica Labour Party Wants Firm's Board Sacked
-------------------------------------------------------------
The Jamaica Labour Party wants the board of the Sugar Company of
Jamaica removed immediately, Anthony Johnson -- the party's
spokesperson on agriculture -- said in a statement in the wake
of the disappointing 2005/2006 sugar crop and the resulting loss
of US$200 million in revenues.

According to Radio Jamaica, the Jamaica Cane Products Sales
Limited said the production target for 2006 was not reached.  
Karl James, the general manager of the company, had said that
the average production was 30,000 tones lesser than what was
projected.

Radio Jamaica reports that the labor party warned that if a new
board is not appointed soon the local sugar industry will be in
crisis.

However, Roger Clarke -- the minister of agriculture -- rejected
Mr. Johnson's demand for the immediate removal of the Sugar
Company's board, Radio Jamaica relates.

Mr. Johnson is seeking political mileage from his statement,
Minister Clarke told the RJR News.

Sugar Company of Jamaica registered a net loss of almost US$1.1
billion for the financial year ended Sept. 30, 2005, 80% higher
than the US$600 million reported in the previous financial year.
Sugar Company blamed its financial deterioration to the
reduction in sugar cane production.




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


ALERIS INT'L: Closes Buy on Corus' Downstream Aluminum Business
---------------------------------------------------------------
Aleris International, Inc., has completed the purchase of the
downstream aluminum business of Corus Group plc.  The
acquisition includes Corus's aluminum rolling and extrusion
businesses but does not include Corus's primary aluminum
smelters.

Steve Demetriou, Chairman and CEO of Aleris International said,
"We are extremely pleased to have completed this acquisition
which continues the transformation of our company. We are
delighted to welcome 4,600 new employees to Aleris.  The
acquisition provides Aleris with a world-class technology
platform and a portfolio of high value-added products that
significantly diversifies our current offerings. Today, we are a
global company with significant assets in Europe and a foothold
in the high-growth China economy.  We expect to continue
Aleris's track record of growth and profitability and are very
excited about the future."

                  About Aleris International

Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris
International, Inc. -- http://www.aleris.com/-- is a major
North American manufacturer of rolled aluminum products and is a
global leader in aluminum recycling and the production of
specification alloys.  The company is also a leading
manufacturer of value-added zinc products that include zinc
oxide, zinc dust and zinc metal.  The Company operates 42
production facilities in the United States, Brazil, Germany,
Mexico and Wales, and employs approximately 4,200 employees.

                        *    *    *

Moody's Investors Service affirmed on July 10, 2006, Aleris
International, Inc.'s B1 corporate family rating.  In a related
rating action, Moody's assigned a Ba3 rating to the company's
proposed 7-year senior secured guaranteed term loans aggregating
US$650 million, which Aleris is issuing to partially finance its
EUR691 million acquisition of certain aluminum assets from Corus
Group plc and refinance its existing debt.

Moody's affirmed these ratings:

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

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

Moody's assigned this rating:

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


ALERIS INT'L: Completes Tender Offer on 10-3/8% & 9% Sr. Notes
--------------------------------------------------------------
Aleris International, Inc., has completed its tender offer to
purchase for cash any and all of its outstanding 10-3/8% Senior
Secured Notes Due 2010 (CUSIP No. 449681AC9) and 9% Senior Notes
Due 2014 (CUSIP No. 014477AA1).  The tender offer expired at
5:00 p.m., New York City time, on July 31, 2006.  Through the
expiration of the tender offer, US$200,830,000 principal amount,
or 96.17%, of the outstanding principal amount of the 10-3/8%
Notes and US$124,910,000 principal amount, or 99.93%, of the
outstanding principal amount of the 9% Notes, and the consents
related thereto, have been validly tendered.  Aleris has
accepted for purchase all of the Notes validly tendered prior to
the expiration of the tender offer and the related consents.

On July 14, 2006, the requisite consents were received to
eliminate or make less restrictive substantially all of the
restrictive covenants and events of default and certain related
provisions contained in the indentures governing the Notes.  As
a result of obtaining the requisite consents, Aleris executed
and delivered supplemental indentures setting forth the
amendments to the indentures governing the Notes.  The
supplemental indentures provide that the amendments to the
indentures have become operative as a result of Aleris having
accepted for purchase pursuant to the tender offer the validly
tendered Notes.

Each holder who tendered the 10-3/8% Notes and related consents
on or before the consent date will receive US$1,100.78 per
US$1,000 principal amount of the 10-3/8% Notes, which includes a
US$20 consent payment, and each holder who tendered the 10-3/8%
Notes and related consents after the consent date but on or
before the expiration date will receive US$1,080.78 per US$1,000
principal amount of the 10-3/8% Notes.

Each holder who tendered the 9% Notes and related consents on or
before the consent date will receive US$1,134.96 per US$1,000
principal amount of the 9% Notes, which includes a US$20 consent
payment, and each holder who tendered the 9% Notes and related
consents after the consent date but on or before the expiration
date will receive US$1,114.96 per US$1,000 principal amount of
the 9% Notes.  Holders of the Notes tendered and accepted for
payment pursuant to the Offer also will be paid accrued and
unpaid interest on their Notes to, but not including, the
applicable payment date.

In addition, Aleris also today announced that it is depositing
funds with JPMorgan Chase Bank, N.A., as trustee under the
indenture for the 10-3/8% Notes to effect a covenant defeasance,
which terminated its obligations with respect to substantially
all of the remaining restrictive covenants on the 10-3/8% Notes,
and is depositing funds with LaSalle Bank National Association,
as trustee under the indenture for the 9% Notes to effect a
legal defeasance, which resulted in Aleris being discharged from
its obligations under the 9% Notes and the indenture governing
the 9% Notes.

Deutsche Bank Securities Inc. acted as dealer manager for the
tender offer and as the solicitation agent for the consent
solicitation and Mackenzie Partners, Inc. was the depositary and
information agent.

                  About Aleris International

Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris
International, Inc. -- http://www.aleris.com/-- is a major
North American manufacturer of rolled aluminum products and is a
global leader in aluminum recycling and the production of
specification alloys.  The company is also a leading
manufacturer of value-added zinc products that include zinc
oxide, zinc dust and zinc metal.  The Company operates 42
production facilities in the United States, Brazil, Germany,
Mexico and Wales, and employs approximately 4,200 employees.

                        *    *    *

Moody's Investors Service affirmed on July 10, 2006, Aleris
International, Inc.'s B1 corporate family rating.  In a related
rating action, Moody's assigned a Ba3 rating to the company's
proposed 7-year senior secured guaranteed term loans aggregating
US$650 million, which Aleris is issuing to partially finance its
EUR691 million acquisition of certain aluminum assets from Corus
Group plc and refinance its existing debt.

Moody's affirmed these ratings:

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

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

Moody's assigned this rating:

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


DRESSER INC: Moody's Lowers Corp. Family Rating to B1 from Ba3
--------------------------------------------------------------
Moody's Investors Service downgraded Dresser, Inc.'s Corporate
Family Rating to B1 from Ba3.  The rating outlook is negative.  
The downgrade of the company's ratings reflects:

   (1) continued high financial leverage for the Ba3 rating,
       despite recent debt reduction efforts, and financial  
       performance, that while improving, remains below
       Moody's expectations, particularly given current
       up-cycle conditions;

   (2) continuing delays with respect to the filing of its
       financial statements; and

   (3) a weak internal control environment.

This concludes the review of Dresser's ratings that commenced on
March 28, 2006.

The negative outlook reflects:

   (1) the challenges the company faces to remediate its
       material weaknesses over internal controls; and

   (2) that the amount of time to complete the restatements
       could be considerable.

The inability to continue receiving support from its lender
group could result in a ratings downgrade, as the company would
face significant liquidity pressures.

Should the delay in completing the financial statements become
extended materially beyond September 2006 and if Moody's
determines that it lacks sufficient financial information to
appropriately monitor the company's credit, the ratings could be
withdrawn.

The outlook could stabilize if Dresser:

   -- is able to file its restated financial statements with
      the SEC in the near-term and becomes current on its
      quarterly financial statement filings;

   -- is able to make material progress in resolving its
      material weaknesses; and

   -- continues to exhibit positive trends with respect to its
      financial performance.

However, the rating and outlook would be subject to a full
review of the audited financial statements.

Moody's recognizes that Dresser has been successful recently in
reducing debt through asset sales and cash flow and that the
company's financial performance has been improving.  
Nevertheless, the company's leverage has continued to remain
high for a Ba3 rating and its financial performance has remained
below Moody's expectations, with EBITDA margins, while
improving, well below the average for its Ba3 rated peers.  
Moody's estimates Dresser's debt/EBITDA (as adjusted for leases
and unfunded pension obligations) to be materially above the
average for its Ba3 rated peers.  Moody's believes that despite
the expectation that domestic and international demand for
energy related goods and services will remain strong over the
near term, we do not anticipate that Dresser will be able to
reduce its leverage sufficiently over the near term to achieve a
level of indebtedness that is in a range appropriate for a Ba3
rating given the cyclicality and intense competition inherent in
the sector.

Moody's believes that ongoing financial statement filing delays
have created significant management distractions.  In March of
this year, the company announced its inability to file its 2005
Annual Report on Form 10-K by the March 31, 2006 requirement.  
And in May, the company announced that it would need to restate
its financial statements for fiscal year 2004, as well as the
2004 and 2005 quarterly financial statements, representing the
third time that the company has had to restate its financial
results over the past three years.  The filing delay mainly
stemmed from the need for additional accounting efforts
associated with certain foreign joint ventures and the November
2005 sale of two of its businesses.  The latest restatement is,
in part, the result of errors associated with the company's
businesses that were sold last November, including hedge
accounting documentation and income tax treatment on inter-
company inventory transfers. In addition, the restatements are
due to accounting errors related to the company's continuing
operations, including the timing of certain revenue and expense
items.  It remains unclear at this time if the company will need
to restate its financial statements for periods prior to 2004.

As a result of the filing delay, Dresser was in violation of its
financial reporting covenants under its senior unsecured term
loan and senior subordinated notes.  However, the company has
received extensions for its financial statement delivery
requirements from its lenders (September 30, 2006 for its 2005
10-K and its 2006 quarterlies per the senior secured credit
facility and senior unsecured term loan waivers, and December
31, 2006 for its 2005 10-K and March 31, 2007 for its 2006
quarterlies per the senior subordinated note waiver).  If
Dresser is unable to file by these deadlines and is unable to
obtain additional waivers, the secured lenders will have the
option to accelerate payment, which would put significant
liquidity pressure on the company.  The company would have 30
days to cure a notice of default from the unsecured lenders
before they could accelerate the obligations.  Moody's notes
that Dresser has continued to receive support from its lender
group over the past two years.

Dresser has reported six material weaknesses, two of which
relate to its on/off valves business, which was sold in November
2005.  These weaknesses are the root cause for the company's
filing delays and restatements.  While Moody's notes that the
financial impact of the restatements appears to be modest, the
nature and pervasiveness of the internal control issues reported
are very serious because they relate to company-level controls
and indicate a weak control environment. Dresser is making
efforts to address the material weaknesses; however, the company
still has substantial work to do in addressing company-level
controls and the control environment, which will continue to
remain a significant distraction for management.  While Moody's
believes that management has sufficient information to run the
business, they do not appear to have an integrated system that
would enable tighter control of the business.  Moody's notes
that these weaknesses would be much more problematic if
management was facing with a more challenging market
environment.  Moody's does not expect the company's material
weaknesses to be fully remediated until at least 2007.  Until
the material weaknesses are fully resolved, some uncertainty
remains regarding the company's financial reporting,
particularly given the company's substantial international
exposure.

Moody's downgrade these ratings of Dresser:

   -- Corporate Family Rating: to B1 from Ba3;

   -- Senior secured Tranche C term loan maturing 2009: to B1
      from Ba3;

   -- Senior unsecured term loan maturing 2010: to B2 from B1;
      and

   -- Senior subordinated notes maturing 2011: to B3 from B2.

Dresser, Inc. is headquartered in Addison, Texas.


GENERAL MOTORS: Revising Second Qtr. Financials Due to GMAC Sale
---------------------------------------------------------------
General Motors Corp. is revising its previously reported results
for the second quarter of 2006 because of a change in the
estimated tax provision relating to an expected loss on the
pending sale of 51% interest in GMAC.  Its previously reported
adjusted earnings are not affected by this change.

GM and GMAC are working with the purchasers of 51% of GMAC
equity to try to avoid any delay in closing the GMAC transaction
because of a recent moratorium by federal regulators on approval
of certain bank transactions.

On July 26, 2006, GM reported a net loss of US$3.2 billion, and
adjusted earnings, excluding special items, of US$1.2 billion, a
significant improvement from the year-ago adjusted loss of
US$231 million.

GM's reported net loss for the quarter has been increased by
US$200 million, to US$3.4 billion.  The increase in the reported
net loss is attributable to the estimated tax provision related
to the loss from the announced sale of 51% of GM's interest in
GMAC to a consortium of investors.  The previously estimated
after-tax charge of US$490 million has been increased to US$690
million as the tax provision from the GMAC transaction was
adjusted to reflect differences in book value and tax basis at
several GMAC subsidiaries.

The tax increase does not result in a current cash expense to
either GM or GMAC.  General Motors may adjust the estimated loss
on sale from the GMAC transaction each quarter until closing due
to potential changes in the other comprehensive income
adjustment, such as mark-to-market valuation, as well as other
factors.

                      FDIC Moratorium

Separately, on July 28, 2006, the Federal Deposit Insurance
Corporation disclosed a six-month moratorium on the acceptance
of, or final decisions on, notices filed under the Change in
Bank Control Act with regard to industrial loan companies.  In
connection with the GMAC transaction, the consortium and its
members have submitted such notices with respect to GMAC's ILC,
GMAC Automotive Bank.  GM and GMAC are currently evaluating the
effect of the FDIC's action on these pending notices, but it
appears that the timing of any approval of the notices is likely
to be affected by the moratorium.  Since FDIC approval of the
Change in Bank Control Act notices with regard to GMAC
Automotive Bank is a condition to closing the GMAC Transaction,
GM and GMAC are now working with the consortium to consider ways
to try to avoid delaying the targeted closing date until 2007.

                  About General Motors Corp.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries and its vehicles are sold in 200 countries including
Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on April 7, 2006
Moody's Investors Service reviews for possible downgrade General
Motors Acceptance Corporation's Ba1 long-term rating and
Residential Capital Corporation's Baa3 long-term and Prime-3
short-term ratings will continue.

As reported in the Troubled Company Reporter on April 5, 2006,
Standard & Poor's Ratings Services held its ratings on General
Motors Acceptance Corp. ('BB/B-1') and on GMAC's subsidiary,
Residential Capital Corp. ('BBB-/A-3'), on CreditWatch with
developing implications.


KERR-MCGEE: Hart-Scott-Rodino Waiting Period Expired on July 31
---------------------------------------------------------------
Kerr-McGee Corp. disclosed that the waiting period under the
United States' Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended, relating to the proposed merger of Kerr-McGee
with a wholly-owned subsidiary of Anadarko Petroleum Corp.
expired at 11:59 p.m. EDT, on July 31, 2006.

The proposed merger was announced on June 23, 2006, and remains
subject to approval by holders of a majority of Kerr-McGee's
outstanding common stock and the satisfaction or waiver of
customary closing conditions set in the merger agreement.  Under
the terms of the merger agreement, Kerr-McGee stockholders will
receive US$70.50 per share in cash for each share of common
stock.

Headquartered in Oklahoma City, Kerr-McGee Corp. --
http://www.kerr-mcgee.com/-- is an oil and natural gas    
exploration and production company focused in the U.S. onshore,
deepwater Gulf of Mexico, as well as in Africa, Asia, and Latin
America.

                        *    *    *

Moody's Investors Service upgraded on May 2, 2006, Kerr-McGee
Corp.'s long-term debt ratings to Ba2 from Ba3. The upgrade
reflected improved operating performance and reduced financial
risk following repayment of US$4.25 billion in term loans
borrowed in 2005.

Standard & Poor's Ratings Services affirmed on May 10, 2006, its
'BB+' corporate credit rating on Kerr-McGee Corp. and revised
its outlook on the company to stable from negative.

Fitch Ratings placed on June 26, 2006, these ratings of Kerr-
McGee Corp. on Rating Watch Positive following the company's
announcement that it has agreed to be acquired by Anadarko
Petroleum Corporation:

  -- Long-term Issuer Default Rating 'BB';
  -- Senior unsecured credit facility 'BB'; and
  -- Senior unsecured notes 'BB'.


NORTEL NETWORKS: Declares Dividends for Class A Pref. Shares
------------------------------------------------------------
The board of directors of Nortel Networks Limited declared a
dividend for the months of August and September on each of the
outstanding Cumulative Redeemable Class A Preferred Shares
Series 5 and the outstanding Non-cumulative Redeemable Class A
Preferred Shares Series 7.

The dividend amount for each series is calculated in accordance
with the terms and conditions applicable to each respective
series, as set out in the company's articles.  The annual
dividend rate for each series floats in relation to changes in
the average of the prime rate of Royal Bank of Canada and The
Toronto-Dominion Bank during the preceding month and is adjusted
upwards or downwards on a monthly basis by an adjustment factor
which is based on the weighted average daily trading price of
each of the series for the preceding month, respectively.  The
maximum monthly adjustment for changes in the weighted average
daily trading price of each of the series will be plus or minus
4.0% of Prime.  The annual floating dividend rate applicable for
a month will in no event be less than 50% of Prime or greater
than Prime.

The dividend on each series in respect of the month of August is
payable on Sept. 12, 2006, to shareholders of record of such
series at the close of business on Aug. 31, 2006.  The dividend
on each series in respect of the month of September is payable
on Oct. 12, 2006, to shareholders of record of such series at
the close of business on Sept. 29, 2006.

                     About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized   
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.  
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries including Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on July 10, 2006,
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  All trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.

As reported in the Troubled Company Reporter on June 20, 2006,
Moody's Investors Service affirmed the B3 corporate family
rating of Nortel; assigned a B3 rating to the proposed US$2
billion senior note issue; downgraded the US$200 million 6.875%
Senior Notes due 2023 and revised the outlook to stable from
negative.

Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and
assigned its 'B-' senior unsecured debt rating to the company's
proposed US$2 billion notes.  The outlook is stable.


WILLIAMS SCOTSMAN: Earns US$11.6 Mil. in Second Quarter of 2006
---------------------------------------------------------------
Williams Scotsman International, Inc., reported its financial
results for the second quarter of 2006.  Revenues for the second
quarter were US$159.1 million, an 18% increase from US$135.0
million in the comparable period of 2005.  Gross profit was
US$67.9 million, a 30% increase as compared to US$52.2 million
for the prior year quarter.  EBITDA for the current quarter was
US$55.1 million, which was also up 30% from US$42.2 million in
the comparable period of 2005.

The Company reported net income for the quarter ended
June 30, 2006, of US$11.6 million compared with a net loss for
the quarter ended June 30, 2005, of US$2.7 million.

During the second quarter of 2005, the Company recorded a loss
on the early extinguishment of debt of US$5.2 million resulting
from the write-off of deferred financing costs as a result of
entering into an amended and restated credit facility in June
2005.  Net income for the three months ended June 30, 2005,
excluding this item was US$0.5 million.

"Williams Scotsman continues to produce strong financial  
results," Gerry Holthaus, chairman, president and chief
executive officer, commented.

"We experienced a 16.4% improvement in leasing revenue, which
was driven by increased utilization to 82% in the second quarter
of 2006 as compared to 81% in the second quarter of 2005, an
increase in our average rental rates from US$259 to US$287, and
an increase in our average units on rent of 3,900 units for the
quarter as compared to the prior year quarter.

"Our total fleet size is over 100,000 units at the end of the
second quarter, which is an important milestone for our company.
Leasing gross margins were 57.1% during the quarter as compared
to 54.7% in the second quarter of 2005.

"Sales of new units and rental equipment increased by 27% as
compared to the prior year quarter as a result of strong unit
sales in the southeast, central southwest and Canadian regions
of the Company.

"Delivery and installation and other revenue again showed
positive results, consistent with the growth we experienced in
our lease and sale business.  We look forward to continuing to
execute against our plan for the remainder of 2006 which will
result in an excellent base for continued growth for Williams
Scotsman."

                     Six Months Results

Revenues for the six months ended June 30, 2006, were
US$324.1 million, a 24% increase from US$261.1 million in the
comparable period of 2005.  Gross profit was US$133.3 million, a
31% increase as compared to US$102.0 million for the prior year
period.  EBITDA was US$108.0 million for the six months ended
June 30, 2006, which was up 32% from US$81.6 million in the
comparable period of 2005.

The Company reported net income for the six months ended June
30, 2006, of US$22.0 million as compared to net loss of US$3.5
million for the six months ended June 30, 2005.  During the six
months ended June 30, 2005, the Company recorded a loss on early
extinguishment of debt of US$5.2 million.  Net loss for the six
months ended June 30, 2005, excluding this item was US$300,000.

Headquartered in Baltimore, Maryland, Williams Scotsman
International, Inc. (NASDAQ:WLSC) the parent company of Williams
Scotsman, Inc., provides mobile and modular space solutions for
the construction, education, commercial, healthcare and
government markets.  The company serves over 25,000 customers,
operating a fleet of over 100,000 modular space and storage
units that are leased through a network of 86 locations
throughout North America.  Williams Scotsman provides delivery,
installation, and other services, and sells new and used mobile
office products.  Williams Scotsman also manages large modular
building projects from concept to completion. Williams Scotsman
has operations in the United States, Canada, Mexico, and Spain.

                        *    *    *

As reported in the Troubled Company Reporter on April 18, 2006,
Standard & Poor's Ratings Services assigned its 'B+' rating to
Williams Scotsman Inc.'s US$100 million 8.5% senior notes due
2015.  At the same time, ratings on the company's outstanding
US$350 million 8.5% senior notes due 2015 were raised to 'B+'
from 'B'.  Standard & Poor's affirmed its 'BB-' corporate credit
rating on Williams Scotsman and 'BB' ('1' recovery rating)
rating on its US$650 million secured credit facility.

As reported in the Troubled Company Reporter on Sept. 9, 2005,
Moody's Investors Service assigned a (P)B3 rating to Williams
Scotsman's US$325 million senior unsecured note offering.  The
outlook is stable.




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


* PERU: IMF Completes Final Reviews on Stand-by Arrangement
-----------------------------------------------------------
The Executive Board of the International Monetary Fund completed
the fourth and fifth reviews of Peru's economic performance
under a 26-month Stand-By Arrangement, in an amount equivalent
to SDR287.279 million (about US$423.6 million), approved on
June 9, 2004.  The completion of the final reviews makes
available for purchase the full amount of the arrangement.  The
Peruvian authorities have been treating the arrangement as
precautionary and indicated that they will not make any drawings
before the arrangement expires on August 16, 2006.

In completing the reviews, the Board granted a waiver of
applicability of the June 30, 2006, quantitative performance
criterion on the borrowing requirement of the combined public
sector, for which data were not available yet.  Staff
anticipates that this quantitative performance criterion will be
met with a margin.

                        *    *    *

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


* PERU: US Senate Committee Approves Free Trade Pact with Nation
----------------------------------------------------------------
Peru's free trade accord with the United States has received
approval from the latter's senate finance committee, the
Washington File reports.

According to the Washington File, the committee members voted
12-7 for the Peru FTA bill.  Two Democrats voted for the
agreement and one Republican voting against it.  The House Ways
and Means Committee voted 23-13 for the bill on July 20.  

The Democrats in the congress told the Washington File that the
Peru FTA labor provisions are too weak.  

The Washington File states that in a 10-10 vote at an earlier
finance committee session, senate Democrats did not get the
winning vote for an amendment that would have incorporated
International Labor Organization standards into the accord.  
Senator Chuck Grassley, the Republican chairman of the finance
committee, was against the amendment, insisting that it was
unnecessary because the FTA already requires Peru to implement
labor laws that reflect ILO workers' rights standards.

The Finance Committee adopted an amendment that forces Peru to
fully allow the US beef to enter its markets and which would
require the US government to assure that Peru has met its
obligations before the FTA could take effect, the Washington
File says.  

Peru has missed two agreed deadlines set for March and May to
open its markets, the Washington File says.  

                        *    *    *

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: Highfields & Tudor in Settlement Talks
------------------------------------------------------
Highfields Capital Management LP and Tudor Investment Corp. have
broken with the ad hoc committee of holders of ACC Senior Notes
and are talking to other creditors about a settlement, The Wall
Street Journal reports, citing people familiar with the talks.

The ACC Committee previously indicated that its members are
opposed to the settlement plan of Adelphia Communications
Corporation and its debtor-affiliates.  The ACC Committee also
support the Hold Back Plan.

In their Modified Fourth Amended Joint Plan of Reorganization
dated April 28, 2006, the ACOM Debtors proposed two mutually
exclusive options:

    (1) a "holdback plan" option that provided for continued
        litigation of the Inter-Creditor Dispute following the
        Effective Date, and

    (2) a "settlement plan" option that provided for resolution
        of the Inter-Creditor Dispute through several Potential
        Settlements.

Peter Grant at the Journal relates that the talks could still
break down and court approval of the settlement is uncertain.

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


ADELPHIA COMMS: Time Warner to File for IPO of Cable TV Unit
------------------------------------------------------------
Bloomberg News reports that Time Warner, Inc., plans to file for
an initial public offering of its cable-television unit after
the sale of substantially all of the assets of Adelphia
Communications Corp. and its debtor-affiliates is consummated.

"An IPO will probably take place within three months following
registration," Mark Harrad, Time Warner Cable NY, LLC's
spokesman, told Bloomberg in an interview.  "If, however, the
creditors agree on a plan of reorganization anytime before then,
we could become a public company without holding an IPO."

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




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


MIRANT CORP: Inks San Francisco Power Contract With Pacific Gas
---------------------------------------------------------------
Mirant Corp. signed two contracts with Pacific Gas and
Electric Company to provide electricity from its natural gas-
fired Pittsburg and Contra Costa power plants located near San
Francisco, California.

PG&E has contracted for 2,000 megawatts of capacity for varying
terms ranging from one year up to about four years beginning in
2007.  The longer-term transaction will be submitted to the
California Public Utilities Commission for its review and
approval.  Mirant intends to withdraw immediately the notice of
intent to shut down Pittsburg Unit 7 and Contra Costa Unit 6
that it had submitted to the CPUC and the California Independent
System Operator on May 4, 2006.

With continuing strong growth in electric demand and the
possibility of additional heat waves, these contracts provide an
important reliable electric supply for California consumers.

"We are pleased that we were able to reach an agreement with
PG&E that will allow us to keep Pittsburg 7 and Contra Costa 6
available to provide much needed and reliable power to the
people of California," said Robert M. Edgell, Mirant's executive
vice president and head of its United States business.

                       About PG&E Co.

Headquartered in San Francisco, California, Pacific Gas and
Electric Company -- http://www.pge.com/-- a wholly owned
subsidiary of PG&E Corporation (NYSE:PCG), is one of the largest
combination natural gas and electric utilities in the United
States.  The Company filed for Chapter 11 protection on
April 6, 2001 (Bankr. N.D. Calif. Case No. 01-30923).  James L.
Lopes, Esq., William J. Lafferty, Esq., and Jeffrey L. Schaffer,
Esq., at Howard, Rice, Nemerovski, Canady, Falk & Rabkin
represent the Debtors in their restructuring efforts.  On
June 30, 2001, the Company listed US$23,216,000,000 in assets
and US$22,152,000,000 in debts.  Pacific Gas and Electric
emerged from chapter 11 protection on April 12, 2004, paying all
creditors 100 cents-on-the-dollar plus post-petition interest.

                     About Mirant Corp.

Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that  
produces and sells electricity in North America, the Caribbean,
and the Philippines.  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 Jan. 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.

                        *    *    *

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: ENCE Awaits Resolution of Env't Impact Conflict
----------------------------------------------------------
A source from the Grupo Empresarial ENCE SA, one of the builders
of Uruguay's pulp mills, told Dow Jones Newswires that the
company is waiting for the governments of Argentina and Uruguay
to resolve the conflict.

Dow Jones reports that ENCE completed initial groundwork at the
mill site in June.  However, it has postponed further
construction works.

As reported in the Troubled Company Reporter-Latin America on
Aug. 1, 2006, Jorge Taiana, the foreign minister of Argentina,
said that Argentine officials planned to start a new suit
against Uruguay this week.  The International Court of Justice
had rejected Argentina's petition to suspend Uruguay's
construction of two pulp mills along their river border.  
Argentina filed the suit asserting that Uruguay did not provide
sufficient time for a thorough environmental impact study on the
pulp mills.  Uruguay argued that studies were conducted and that
the mills will use modern pollution control system.  Argentina
insisted Uruguay violated their 1975 River Treaty, which
requires mutual agreement for any project that has an effect on
the river.  Uruguay said it kept Argentina informed about plans
for the mills, and its neighbor raised no objection until
Gualeguaychu officials began to complain last year.  However,
the International Court said that the construction posed no
"imminent threat" to Argentina's environment.  The court would
consider a permanent ruling after both countries submit further
arguments, Court President Rosalyn Higgins said.  According to
the judge, Argentina had simply failed to present sufficient
evidence to justify the suspension of construction.  However,
the international court said that Argentina could make future
petitions with the court on merit.  Minister Taiana met with
activists in Gualeguaychu, Argentina, where protesters blocked
bridge access into Uruguay from December until just before
Argentina filed a complaint with the World Court in May.  
Minister Taiana told protesters that the government still finds
Uruguay's pulp mills unsafe.  The minister said that the
Argentine government would try to discourage international
lenders from financing the pulp mill projects of Uruguay.

ENCE officials had told La Nacion on Saturday that works on the
pulp mill has stopped.

However, the source from ENCE told Dow Jones that the firm still
has a strategic interest in the Uruguayan project.

The ENCE pulp mill represents US$660 million in investment and
was scheduled to start operations in 2008, Dow Jones 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
=================


PETROLEOS DE VENEZUELA: Unit Inks MOU with Andrade Gutierrez
------------------------------------------------------------
Petroleos de Venezuela, the Venezuelan state oil company, told
Business News Americas that PDV Marina, its sea transport unit,
entered into a memorandum of understanding with Andrade
Gutierrez, a Brazilian construction firm, for technical
assistance to build a shipyard.

BNamericas relates that Asdrubal Chavez, the president of PDV
Marina and parent firm Petroleos de Venezuela's executive
director for trade and supply, signed the MOU with Pedro Antonio
Dias, Andrade Gutierrez's industrial business director.

According to BNamericas, the shipyard to be constructed would be
the first of its kind in Venezuela, having the capacity to
build, maintain and repair large-tonnage vessels and offshore
platforms.

The project, says BNamericas, is included in Petroleos de
Venezuela's strategy to transport more of its own products and
boost offshore explorations and productions in the coming years.

The report underscores that PDV Marina aims to increase the
transport of all the company's exports to 45% from 12% and the
Venezuelan government could use 42 new oil vessels for that
purpose.

"PDVSA is taking another step to export its crude and products
at attractive costs towards such important markets as Asia while
minimizing our dependence on international hydrocarbons
transports, whose prices fluctuate constantly," President Hugo
Chavez told BNamericas.

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

                        *    *    *

On Jan. 23, 2006, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'.  The rating of PDVSA's export receivable future
flow securitization, PDVSA Finance Ltd, was also upgraded to
'BB+' from 'BB'.  In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating.  Fitch said the Rating Outlook
is Stable.  Both rating actions followed Fitch's November 2005
upgrade of Venezuela's sovereign rating.


* VENEZUELA: Bandes Uruguay Begins Operations
---------------------------------------------
Banco de Desarrollo Economico y Social de Venezuela, or Bandes,
has started operations in Uruguay after it purchased Cooperativa
Nacional de Ahorro Credito.  The new bank is named Bandes
Uruguay, El Universal reports.

"We are about to open our doors. There are some minor
requirements yet to be filled, but we are waiting for an
authorization from the Central Bank of Uruguay soon," Bandes
president Edgar Hernandez Behrens was quoted by Efe as saying in
a news conference.

According to Mr. Behrens, Bandes has lent US$47.2 million in
loans to its Uruguayan unit for payment to Cofac savers, Efe
reports.  

The new branch, Mr. Behrens said, will offer priority attention
to micro-businesses, cooperatives and sectors deprived of access
to the financial system, Efe relates.

El Universal says that Bandes has contributed US$10 million in
assets to the new bank.  It also plans to contribute US$10
million for capitalization.  By the end of this year, Bandes is
to earmark another US$15 million to pay for a portion of
deposits of Cofac savers.

                        *    *    *

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


* VENEZUELA: Threatens to Cease Oil Shipping to US
--------------------------------------------------
Rafael Ramirez, the energy minister of Venezuela, told Agence
France-Presse that his country would stop exporting oil to the
United States if Washington continues its hostile policies
toward Caracas.

Minister Ramirez told Islamic Republic News Agency, "Our policy
is transparent.  If the US wants to carry out hostile policies
against us, we stop oil exports to this country.  We cannot
steadily export oil to the US and be steadily subject to its
hostility.  Some actions should be taken against this
situation."

                        *    *    *

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


* 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)     452.10     
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, and
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
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