TCRLA_Public/060808.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, August 8, 2006, Vol. 7, Issue 156

                            Headlines

A R G E N T I N A

ACINDAR INDUSTRIA: Reports Growth in Net Profit for Six Months
AFFARE SA: Verification of Proofs of Claim Is Until Sept. 15
ALV MAN: Claims Verification Deadline Is Set for Nov. 29
BALUARTE SA: Trustee to Present Individual Reports Today
BRANDO HNOS: Trustee Delivers Gen. Report in Court on Aug. 21

EQUIS SA: Trustee Submits Individual Reports in Court on Aug. 11
EUROMAYOR SA: Evaluadora Puts Class B Shares in Category 5
FIDEICOMISOS GALTRUST V: Fitch Arg Rates US$42M Debt at B+(arg)
METROVIAS: Ordinary Shares Placed Under Category 4
SANITARIOS GRAL: Reorganization Proceeding Concluded

TARABORELLI SA: Trustee Submits Gen. Report in Court on Aug. 30
TERRAVIAL SRL: Lucente Named Trustee for Bankruptcy Proceeding
TRANSPORTADORA DE GAS: Launches Restructuring of US$664MM Debt

* ARGENTINA: Selling US$482.2 Million in Bonds to Venezuela

B A H A M A S

COMPLETE RETREATS: Paying US$400K of Potential Lenders' Expenses
COMPLETE RETREATS: Court Fixes November 27 as Claims Bar Date
ISLE OF CAPRI: Completes US$240MM Sale of Properties to Legends
KERZNER INT'L: Private Buy Cues S&P to Hold Watch on BB- Ratings
LAZARD LTD: June 30 Balance Sheet Upside-Down by US$745 Million

WINN-DIXIE STORES: Florida Court Approves Disclosure Statement
WINN-DIXIE: Changes Under Amended Joint Plan of Reorganization

B E L I Z E

* BELIZE: S&P Lowers Foreign Currency Rating to CC from CCC-

B E R M U D A

CE SINGAPORE: Creditors Must File Proofs of Claim by Aug. 16
CIGNA FUND: Deadline for Proofs of Claim Filing Is on Aug. 16
CWS LTD: Creditors Have Until Aug. 16 to File Proofs of Claim
ENDURANCE SPECIALTY: Buys US$235M of Reinsurance from Shackleton
FLAG ATLANTIC: Liquidators Want Out from Liquidation Proceeding

FLAG ATLANTIC HOLDINGS: Liquidators Ask to be Released from Case
FLAG TELECOM: Liquidators Ask Court for Release from Proceeding
MONTPELIER RE: S&P Assigns BB+ Rating on Preferred Stock
OCEAN GRAND CHEMICAL: Court Sets Winding-Up Hearing for Aug. 18
OCEAN GRAND: Supreme Court Set to Hear Petition on Aug. 18

OVERSEAS LEASING: Creditors Must File Proofs of Claim by Aug. 16
REFCO INC: Ch. 7 Trustee Can Reimburse US$749,579 to Refco Group
REFCO INC: Refco Capital Trustee Hires Skadden as Special Atty.

B O L I V I A

PETROLEO BRASILEIRO: Refutes Irregularity Claims on Gas Sales

B R A Z I L

COMPANHIA ENERGETICA: Moody's Ups Corporate Family Rating to B1
COMPANHIA SIDERURGICA: S&P Affirms BB Long-Term Credit Rating
SADIA SA: Second Quarter Results Reflect Market Difficulties

C A Y M A N   I S L A N D S

KKE INVESTMENT: Will Hold Final Shareholders Meeting on Aug. 24
OKS HOLDING: Final Shareholders Meeting Is Scheduled for Aug. 24
QUANTUM INT: Shareholders Gather for a Final Meeting on Aug. 24
RAMMS LIMITED: Final Shareholders Meeting Scheduled on Aug. 24
SAKAE HOLDINGS: Liquidator Presents Wind-Up Account on Aug. 24

SCOTTISH RE: Names Clifford Wagner as CEO in North America Units
SCOTTISH RE: Paul Golden Named Member of Board of Directors
SHACKLETON RE: S&P Rates US$125MM Variable-Rate Term Loan at BB
VALLE LTD: Shareholders Convene for a Final Meeting on Aug. 24
VAMS CORP: Liquidator Presents Wind Up Accounts on Aug. 24

VELMAR ENTERPRISES: Final Shareholders Meeting Is on Aug. 24
WHIN HOLDING: Final Shareholders Meeting Is Set for Aug. 24
WISTERIA FUNDING: Last Shareholders Meeting Is Set for Aug. 24

C O L O M B I A

BANCO DEL CAFE: Auction Price Could Double, Ratings Agency Says
BANCOLOMBIA: Launches Mobile Banking Service with Comcel & Ola
ECOPETROL: Union Went on Strike Over Sale of Firm's 20% Stake

C O S T A   R I C A

* COSTA RICA: IMF Says Economy Has Been Strong in Past 18 Months
* COSTA RICA: Implements Free Trade Accord with Barbados

D O M I N I C A N   R E P U B L I C

PHELPS DODGE: Failed Merger Cues S&P to Hold Ratings on NegWatch
TAG-IT PACIFIC: Obtains Acceptance of Compliance Plan from Amex

* DOMINICAN REPUBLIC: Beverage Sales Down 40%, Distributors Say
* DOMINICAN REPUBLIC: Seizes 2,871 Boxes of Counterfeit Cigars

E C U A D O R

BANCO DEL PICHINCHA: Posts US$25.0MM Earnings in First Half 2006
PETROECUADOR: Awards Six Crude Supply Lots to Foreign Firms
PETROECUADOR: Oriente Crude Price Increases to US$65.47

* ECUADOR: Trade Surplus for First Six Months Reaches US$865MM

G U A T E M A L A

* GUATEMALA: Will Sue US for Unfairness in Free Trade Agreement

H A I T I

* HAITI: UN Head Wants to Extend Mission in Nation by One Year
* HAITI: World Bank Grants US$6 Million to the Power Sector

H O N D U R A S

* HONDURAS: Hondutel to Provide 150,000 Telephone Connections

J A M A I C A

KAISER ALUMINUM: Court Approves US$78M Accord with CNA Insurers
SUGAR COMPANY: Alan Rickards Wants Entire Firm's Board to Resign

M E X I C O

ALASKA AIR: Earns US$55.5 Million in Second Quarter of 2006
COTT CORP: Forms Two Business Units Under New Structure
DIRECTV INC: Adds Azteca America to Corpus Cristi Lineup
DOMINO'S PIZZA: Equity Deficit Widens to US$609 Mil. at June 18
FLEXTRONICS INT: Reports US$4.1BB Net Sales for 1st Quarter 2006

NORTEL NETWORKS: Declares Dividends for Class A Pref. Shares
NORTEL NETWORKS: Second Quarter Revenues Up 5% to US$2.74 Bil.

P E R U

PERKINELMER INC: Acquires Macri Tech. & NTD Labs for US$57MM

* PERU: Will Receive JPY1 Mil. Aid From Japan to Expand Port

P U E R T O   R I C O

ADELPHIA: Fee Panel Seeks Protective Order v. Boies Schiller
CENTENNIAL COMM: Approves Payments of Bonuses to Exec. Officers
DEVELOPERS DIVERSIFIED: Earns US$64.9 Million in Second Quarter
DORAL FINANCIAL: Pays Monthly Cash Dividend on Preferred Stocks
MUSICLAND HOLDING: Wants to Walk Away from 30 Contracts & Leases

T R I N I D A D   &   T O B A G O

MIRANT CORP: Sale May Affect PowerGen Expansion Plans
BRITISH WEST: Resumes Flight Despite Bomb Threat
BRITISH WEST: Union Head Alleges Management Used Up Firm's Money
BRITISH WEST: Union to Protest Outside Airline Executives' Homes

U R U G U A Y

CHARLES RIVER: Amends Credit Agreement with Lenders & JPMorgan

V E N E Z U E L A

PETROLEOS DE VENEZUELA: PetroVietnam Considers Stake in Orinoco
PETROLEOS DE VENEZUELA: Selling US$3.5B in Bonds in Local Market

* VENEZUELA: Inks Oil Accords with Vietnam
* VENEZUELA: To Drill First Wells in Orinoco Belt This Week


                          - - - - -


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


ACINDAR INDUSTRIA: Reports Growth in Net Profit for Six Months
--------------------------------------------------------------
Acindar Industria Argentina de Aceros SA reported results for
the first six months of 2006.

Acindar saw net profit increased almost 30% due in part to the
sale of three plants in January, Reuters reports, citing the
company's filing with the Buenos Aires Stock Exchange.

The company registered ARS377.9 million in earnings, an increase
of ARS291.5 million a year earlier.  First six months net sales
grew 13.7% to ARS1.37 billion.  Domestic sales rose 27.6% in
tons.

Acindar's average costs increased 14.6% in the first half, due
to higher labor costs and more expensive electricity and natural
gas.

To expand production capacity to meet growing demand, the
company said it would launch a US$100-million investment plan in
mid-2007. Investments in the first six months of this year
totaled US$31.1 million.

Acindar reported a 222.8 million-peso profit in the first
quarter, which, if unchanged, would mean that its second-quarter
net stood at ARS155.1 million, Reuters says.

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

                        *    *    *

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

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

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


AFFARE SA: Verification of Proofs of Claim Is Until Sept. 15
------------------------------------------------------------
Jorge Guillermo Podesta, the court-appointed trustee for Affare
S.A.'s bankruptcy proceeding, will verify creditors' proofs of
claim until Sept. 15, 2006.

Mr. Podesta will present the validated claims in court as
individual reports on Oct. 30, 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 Affare 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 Affare's accounting
and banking records will follow on Dec. 12, 2006.

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

The trustee can be reached at:

          Jorge Guillermo Podesta
          Reconquista 336
          Buenos Aires, Argentina


ALV MAN: Claims Verification Deadline Is Set for Nov. 29
--------------------------------------------------------
Ricardo Daniel Petra, the court-appointed trustee for Alv Man
S.A.'s bankruptcy case, will verify creditors' proofs of claim
until Nov. 29, 2006.

Mr. Petra will present the validated claims in court as
individual reports on Feb. 14, 2007.  A court in Mendoza will
determine if the verified claims are admissible, taking into
account the trustee's opinion and the objections and challenges
raised by Alv Man 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 Alv Man's accounting
and banking records will follow on April 3, 2007.

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

The debtor can be reached at:

         Alv Man S.A.
         Agustin Alvarez 26
         Mendoza, Argentina

The trustee can be reached at:

         Ricardo Daniel Petra
         Avenida Colon 430, Ciudad de Mendoza
         Mendoza, Argentina


BALUARTE SA: Trustee to Present Individual Reports Today
--------------------------------------------------------
Mabel Herrera, the court-appointed trustee for Baluarte S.A.'s
bankruptcy proceeding, will present individual reports in court
today.

The individual reports are based on creditors' claims that were
verified until June 12, 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 Baluarte S.A. 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 Baluarte's accounting
and banking records will follow on Sept. 20, 2006.

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

The trustee can be reached at:

         Mabel Herrera
         Rodriguez Pena 694
         Buenos Aires, Argentina


BRANDO HNOS: Trustee Delivers Gen. Report in Court on Aug. 21
-------------------------------------------------------------
Mirta Ana Calfun de Bendersky, the court-appointed trustee for
Brando hermanos S.A.'s reorganization proceeding, will deliver
in court a general report that contains an audit of the
company's accounting and banking records on Aug. 21, 2006.

Ms. de Bendersky verified creditors' proofs of claim against
Brando Hermanos until May 31, 2006.  She presented individual
reports in court based on the verified claims on July 3, 2006.

On Dec. 6, 2006, Brando Hermanos' creditors will vote on a
settlement plan that the company will lay on the table.

Court No. 24 in Buenos Aires approved Brando Hermanos' petition
to reorganize its business after it defaulted on its
obligations.

Clerk No. 47 assists the court in the proceeding.

The debtor can be reached at:

         Brando Hermanos S.A.
         Mario Bravo 58
         Buenos Aires, Argentina

Ms. Isabel Ana Ramirez, the trustee, can be reached at:

         Mirta Ana Calfun de Bendersky
         Humahuaca 4165
         Buenos Aires, Argentina


EQUIS SA: Trustee Submits Individual Reports in Court on Aug. 11
----------------------------------------------------------------
Claudina Beatriz Badino, the court-appointed trustee for Equis
S.A.'s insolvency case, will present individual reports in court
on Aug. 11, 2006.

The individual reports are based on creditors' claims that were
verified until June 28, 2006.   A court in Mendoza will
determine if the verified claims are admissible, taking into
account the trustee's opinion and the objections and challenges
raised by Equis 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 Equis' accounting and
banking records will follow on Oct. 9, 2006.

On April 12, 2007, Equis' creditors will vote on a settlement
plan that the company will lay on the table.

The debtor can be reached at:

         Equis S.A.
         9 de Julio 1769
         Ciudad de Mendoza
         Mendoza, Argentina

The trustee can be reached at:

         Claudina Beatriz Badino
         Perito Moreno 1077
         Godoy Cruz
         Mendoza, Argentina


EUROMAYOR SA: Evaluadora Puts Class B Shares in Category 5
----------------------------------------------------------
Euromayor SA de Inversiones' ordinary class B shares have been
included in category 5 by the Evaluadora Latinoamericana.  At
the same time, these debts are rated E:

     -- Serie II dollars class for US$3,078,183,
     -- Serie II pesos class for US$4,421,817.

The rating action was based on Euromayor's financial status at
Apr. 30, 2006.

A category 5 status means debt issues that don't meet the
requirements of information necessary for making a rate.


FIDEICOMISOS GALTRUST V: Fitch Arg Rates US$42M Debt at B+(arg)
---------------------------------------------------------------
Fideicomiso Financiero Galtrust V's debts are assigned these
ratings by Fitch Argentina Calificadora de Riesgo SA:

     -- TD for VN US$42,000,000 (*), Rate: B+(arg)
     -- CP for VN US$15,573,377 (*), Rate: CC(arg)


METROVIAS: Ordinary Shares Placed Under Category 4
--------------------------------------------------
The Comision Nacional Valores placed on Aug. 1, 2006, the
ordinary shares of Metrovias, the tube and train concession for
the city of Buenos Aires, in category 4.

A category 4 status meant low quality shares which stems from:

   i) average share trading and the issuer's low capacity to
      generate funds;

  ii) below average share trading and the issuer has a regular
      capacity to generate funds; or

iii) below average share trading and the issuer has a low
      capacity to generate funds.

Metrovias is in charge of trains and metro transport in Buenos
Aires, Argentina.  It holds the concession until Dec. 2017, in
order to exploit the tube sytems of Buenos Aires and the Urquiza
line -- train line of public passengers.  The main shareholder
of the company is Compania Latinoamericana de Infraestructura &
Servicios S.A., the holding infrastructure company of the Roggio
Group which, through Benito RoggioTransporte SA, holds 75% of
the shares; the remaining 25% is trading, since October 2005, at
the Buenos Aires stock market.


SANITARIOS GRAL: Reorganization Proceeding Concluded
----------------------------------------------------
Sanitarios Gral. Mosconi S.A.'s reorganization proceeding has
ended.  Data published by Infobae on its Web site indicated that
the process was concluded after a court in Zarate-Campana,
Buenos Aires, approved the debt agreement signed between the
company and its creditors.


TARABORELLI SA: Trustee Submits Gen. Report in Court on Aug. 30
---------------------------------------------------------------
Roberto Dolinko, the court-appointed trustee for Taraborelli
S.A.'s bankruptcy case, will deliver in court a general report
that contains an audit of the company's accounting and banking
records on Aug. 30, 2006.

Mr. Dolinko verified creditors' proofs of claim against
Taraborelli until May 16, 2006.  He presented individual reports
in court based on the verified claims on July 12, 2006.

The trustee can be reached at:

        Roberto Dolinko
        Tucuman 1657
        Buenos Aires, Argentina


TERRAVIAL SRL: Lucente Named Trustee for Bankruptcy Proceeding
--------------------------------------------------------------
A court in Santa Fe appointed Guillermo Fernando Lucente to
supervise the bankruptcy proceeding of Terravial S.R.L.  Under
bankruptcy protection, control of the company's assets is
transferred to Mr. Lucente.

As trustee, Mr. Lucente will:

   -- verify creditors' proofs of claim,

   -- present individual and general reports in court after the
      claims are verified, and

   -- administer Terravial's assets under court supervision and
      take part in their disposal to the extent established by
      law.

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

The debtor can be reached at:

         Terravial S.R.L.
         Suipacha 870, Rosario
         Santa Fe, Argentina

The trustee can be reached at:

         Guillermo Fernando Lucente
         E. Zeballos 1898 Rosario,
         Santa Fe, Argentina


TRANSPORTADORA DE GAS: Launches Restructuring of US$664MM Debt
--------------------------------------------------------------
Transportadora de Gas del Norte aka TGN launched late last week
a restructuring offer for US$664 million in debts, Dow Jones
Newswires reports.

TGN said in a filing with the Buenos Aires Stock Exchange that
the swap offer would end on Aug. 31 at 6:00 p.m.

The International Finance Corp. aka IFC has agreed to the debt
swap, Dow Jones relates.  The restructuring includes US$161.80
million in certificates backed by IFC.

TGN told Dow Jones it has reached "support accords" for the deal
with creditors holding 47.53% of the outstanding debt.  TGN
said, "The support accords and the IFC's consent together
represent 80.02% of our total outstanding amount."

The report underscores that TGN, in exchange for outstanding
debt, is offering:

   -- Series A notes that would mature in 2012, with initial
      interest of 6.00% and twice-yearly capital payments, and

   -- Series B notes with 7.00% initial interest and one payment
      upon expiration in 2012.

The Argentine government converted rates from dollars to
devalued pesos during the nation's 2002 economic crisis,
resulting to TGN and other companies' lower income and large,
foreign-denominated obligations, Dow Jones states.

Transportadora de Gas del Norte S.A. holds the exclusive
concession for the transport and operation of the gas pipes in
the north and center regions of Argentina for 35 years (until
Dec. 28, 2027) to be extended for 10 more years.  The society
that controls TGN is Gasinvest SA, with a participation of
70.04%, Totalfinaelf (27.2%), Compania General de Combustibles
(27.2%), Organizacion Techint (27.2%) and Petroliam Nasional
Berhad (18.4%).  Also, CMS Gas Argentina Company has a 29.96%
stake in the company.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
June 27, 2006, Fitch Argentina assigned D ratings on
Transportadora de Gas del Norte S.A.'s three debts:

   -- the program of Obligaciones Negociables of up to US$300
      million;

   -- program of Obligaciones Negociables of up to US$320
      million; and

   -- Obligaciones Negociables for US$175 million.

The ordinary shares had been included in category 4.


* ARGENTINA: Selling US$482.2 Million in Bonds to Venezuela
-----------------------------------------------------------
The Argentine Government said it would directly sell Venezuela
bonds maturing in 2012 with a face value of US$482.2 million, El
Universal reports.

The US dollar-denominated debts will be sold to Venezuela at
market price, the Argentine Government said in an official
bulletin, as quoted by Reuters.

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

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




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


COMPLETE RETREATS: Paying US$400K of Potential Lenders' Expenses
----------------------------------------------------------------
Complete Retreats LLC and its debtor-affiliates obtained
authority from the U.S. Bankruptcy Court for the District of
Connecticut to advance up to US$400,000 to cover due diligence
and related expenses of potential postpetition lenders.

As reported in the Troubled Company Reporter on July 27, 2006,
the Debtors are seeking up to US$85,000,000 in postpetition
financing, and have recently received non-binding term sheets
from potential postpetition lenders and intend to negotiate with
two of them, if possible, to obtain the best available terms.

As a condition to pursuing a financing arrangement with the
Debtors, Holly Felder Etlin, the Debtors' chief restructuring
officer, said that every potential lender has required that
the Debtors advance funds to pay their expenses incurred in
gathering and reviewing information to enable them to finalize a
financing proposal.  Unless and until the funds are advanced,
potential lenders will not begin their due diligence in earnest.

Ms. Etlin told the Court that the maximum amount the Debtors
would be required to pay is reasonable and relatively small when
compared to both the amount of the likely postpetition facility
itself and the amount that they expect to save in interest,
costs, and fees by negotiating a postpetition facility on the
most favorable terms.

Moreover, parties-in-interest will be afforded an opportunity to
object to the specific terms and conditions contained in any
postpetition credit agreement.

The Debtors have secured a short-term US$10,000,000 postpetition
revolving line of credit with The Patriot Group, LLC, to give
them some time to secure a longer-term DIP financing
arrangement.

                  About Complete Retreats

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

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

Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245
through 06-50306).  Nicholas H. Mancuso, Esq., Jeffrey K. Daman,
Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A.
Stieglitz Jr., Esq., at Dechert LLP, are representing the
Debtors in their restructuring efforts.  Xroads Solutions Group,
LLC, is the Debtors financial and restructuring advisor.  When
the Debtors filed for chapter 11 protection, they listed total
debts of USUS$308,000,000.  (Complete Retreats Bankruptcy News,
Issue No. 3; Bankruptcy Creditors' Service, Inc., 215/945-7000).


COMPLETE RETREATS: Court Fixes November 27 as Claims Bar Date
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Connecticut set
Nov. 27, 2007, as the deadline for all creditors, except
governmental units, owed money by Complete Retreats LLC and its
debtor-affiliates on account of claims arising prior to the
bankruptcy filing, to file their proofs of claim.

Creditors must file their written proofs of claim on or before
the Claims Bar Date, and those forms must be delivered to:

          United States Bankruptcy Court
          District of Connecticut, Bridgeport Division
          915 Lafayette Blvd.
          Bridgeport, Connecticut 06604

                  About Complete Retreats

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

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

Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245
through 06-50306).  Nicholas H. Mancuso, Esq., Jeffrey K. Daman,
Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A.
Stieglitz Jr., Esq., at Dechert LLP, are representing the
Debtors in their restructuring efforts.  Xroads Solutions Group,
LLC, is the Debtors financial and restructuring advisor.  When
the Debtors filed for chapter 11 protection, they listed total
debts of USUS$308,000,000.  (Complete Retreats Bankruptcy News,
Issue No. 2; Bankruptcy Creditors' Service, Inc., 215/945-7000).


ISLE OF CAPRI: Completes US$240MM Sale of Properties to Legends
---------------------------------------------------------------
Isle of Capri Casinos, Inc., completed the sale of its
Vicksburg, Miss. and Bossier City, La. properties to Legends
Gaming, LLC, for US$240 million cash subject to closing
adjustments.

Based in Biloxi, Miss., Isle of Capri Casinos, Inc. (Nasdaq:
ISLE) -- http://www.islecorp.com/-- a developer and owner of
gaming and entertainment facilities, operates 16 casinos in 14
locations.  The Company owns and operates riverboat and dockside
casinos in Biloxi, Vicksburg, Lula and Natchez, Miss.; Bossier
City and Lake Charles (two riverboats), La.; Bettendorf,
Davenport and Marquette, Iowa; and Kansas City and Boonville,
Mo.  The Company also owns a 57% interest in and operates land-
based casinos in Black Hawk (two casinos) and Cripple Creek,
Colorado.  Isle of Capri's international gaming interests
include a casino that it operates in Freeport, Grand Bahama, and
a 2/3 ownership interest in casinos in Dudley, Walsal and
Wolverhampton, England.  The company also owns and operates
Pompano Park Harness Racing Track in Pompano Beach, Fla.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 16, 2006,
Moody's Investors Service confirmed Isle of Capri, Inc.'s
Corporate family rating at Ba3; US$400 million senior secured
revolver due 2010 at Ba2; US$300 million senior secured term
loan due 2011 at Ba2; US$500 million 7% senior subordinated debt
due 2014 at B2; and US$200 million 9% senior subordinated debt
due 2012 at B2.  Moody's assigned a negative ratings outlook.

As reported in the Troubled Company Reporter on Dec. 26, 2005,
Standard & Poor's Ratings Services affirmed its ratings on Isle
of Capri Casinos Inc., including its 'BB-' corporate credit
rating.  At the same time, all ratings were removed from
CreditWatch with negative implications where they were placed on
Sept. 1, 2005.  S&P said the outlook is negative.


KERZNER INT'L: Private Buy Cues S&P to Hold Watch on BB- Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
Kerzner International Ltd., including its 'BB-' corporate credit
rating, remain on CreditWatch with negative implications where
they were placed on March 20, 2006, following Kerzner's
announcement that the company would be acquired by a private
investor group led by the company's Chairman, Sol Kerzner, and
its Chief Executive Officer, Butch Kerzner.

The aggregate transaction value, including the assumption of
roughly US$695 million of debt outstanding as of March 31, 2006,
is about US$3.8 billion.  Closing of the transaction is subject
to, among other things, receiving the required regulatory
approvals, a shareholder vote, and the receipt of financing.

According to Schedule 13E-3 that was filed with the SEC on
July 11, 2006, the total amount of funds required to complete
the proposed merger and the related transactions, including
payment of fees and expenses, is expected to be approximately
US$4.0 billion.  The transaction, and additional debt associated
with outlined capital spending projects, is expected to be
funded through a combination of US$2.9 billion of commercial
mortgage backed securities, US$575 million of bank debt, and
US$1.5 billion of sponsor equity.  If the transaction, which is
expected to close in the third quarter of 2006, is completed as
expected, all public bonds will be repaid in full and we will
withdraw our ratings on these notes.  In addition, under these
circumstances, Standard & Poor's would no longer maintain a
public corporate credit rating on Kerzner, but the additional
indebtedness would clearly result in a decline in credit quality
from the existing level.  If the transaction does not close as
expected, Standard & Poor's will resolve its CreditWatch listing
after re-evaluating management's strategic and financial
policies.


LAZARD LTD: June 30 Balance Sheet Upside-Down by US$745 Million
---------------------------------------------------------------
Lazard Ltd. reported its financial results for the first six
months and second quarter ended June 30, 2006.

At June 30, 2006, the Company's balance sheet showed US$2.1
billion in total assets and US$2.8 billion in total liabilities
resulting in US$745 million stockholders' deficit.

For the second quarter of 2006, pro forma net income, assuming
full exchange of outstanding exchangeable interests, increased
97% to US$62.9 million from US$32 million for the second quarter
of 2005.  Financial Advisory revenue increased 24% compared to
the second quarter of 2005 and increased 18% compared to the
first quarter of 2006.  Asset Management revenue increased 19%
compared to the second quarter of 2005.  Operating revenue for
the second quarter of 2006 increased 24% to US$410.8 million
compared to US$330.1 million for the second quarter of 2005.

Operating income increased 49% to US$84.7 million for the second
quarter of 2006, including a gain of approximately US$5.3
million from the termination of our joint venture relationship
in Italy, compared to pro forma US$57 million for the second
quarter of 2005.  Net income before exchange of outstanding
exchangeable interests increased 97% to US$23.5 million for the
second quarter of 2006 compared to pro forma income from
continuing operations of US$12.0 million for the second quarter
of 2005.

Pro forma net income, assuming full exchange of outstanding
exchangeable interests, increased 82% to US$115.4 million for
the first six months of 2006 from US$63.3 million for the first
six months of 2005.  For the first six months of 2006, operating
revenue increased 28% to US$762 million compared to US$595.7
million for the first six months of 2005, resulting from growth
in both Financial Advisory and Asset Management businesses.

For the first six months of 2006 compared to the first six
months of 2005, Financial Advisory revenue increased 31% and
Asset Management revenue increased 15%.  Operating income
increased 72% to US$162.8 million for the first six months of
2006, including a gain of approximately US$5.3 million from the
termination of our joint venture relationship in Italy, compared
to pro forma US$94.5 million for the comparable 2005 period.
Net income before exchange of outstanding exchangeable interests
increased 82% to US$43.2 million compared to pro forma income
from continuing operations of US$23.7 million for the first six
months of 2005.

"Lazard's strong results reflect our leadership position in
Financial Advisory, as we continue to advise on some of the most
complex and important transactions" said Bruce Wasserstein,
Chairman and Chief Executive Officer of Lazard Ltd.  "Our
results also show the steady progress of our Asset Management
business, as we continue to win new mandates with expanded
product offerings.  We are focused on creating value for our
shareholders.  Our approach is to apply intellectual rigor and
creativity to all parts of our business."

"We are pleased to report another strong quarter and record
financial performance year-to-date," noted Steven J. Golub,
Lazard's Vice Chairman.  "Lazard's success is a result of
continued demand for world-class, independent advice, our
retention and attraction of top talent, momentum in our Asset
Management business and our continued focus on cost containment.
We believe we continue to be positioned for long-term growth."

The Company's quarterly revenue and profits can fluctuate
materially depending on the number, size and timing of completed
transactions on which it advised, as well as seasonality and
other factors.  Accordingly, the revenue and profits in any
particular quarter may not be indicative of future results.  As
such, Lazard management believes that annual results are the
most meaningful.

   (a) Operating revenue excludes interest expense relating to
       financing activities and revenue relating to the
       consolidation of LAM General Partnerships, each of which
       are included in net revenue.

   (b) Operating income is after interest expense and before
       income taxes and minority interests.

Headquartered in Hamilton, Bermuda, Lazard Ltd. --
http://www.lazard.com/-- one of the world's preeminent
financial advisory and asset management firms, operates
from 29 cities across 16 countries in North America, Europe,
Asia, Australia and South America.  With origins dating back to
1848, the firm provides services including mergers and
acquisitions advice, asset management, and restructuring advice
to corporations, partnerships, institutions, governments, and
individuals.


WINN-DIXIE STORES: Florida Court Approves Disclosure Statement
--------------------------------------------------------------
On Aug. 4, 2006, the U.S. Bankruptcy Court for the Middle
District of Florida approved the Disclosure Statement of Winn-
Dixie Stores, Inc., filed, on Aug. 2, 2006, together with the
Company's proposed Plan of Reorganization.  The Court also
authorized Winn-Dixie to begin soliciting approval from its
creditors for the Plan of Reorganization.  With these
developments, Winn-Dixie remains on schedule to emerge from
Chapter 11 protection as soon as late October.

Winn-Dixie expects to emerge from its reorganization with
sufficient financing and liquidity to make significant
investments in its current store base, to develop new stores,
and to take other actions to position the business to compete
effectively in its markets over the next several years.  The
company also expects to emerge with only a minimal amount of
long-term debt on its balance sheet.

"Court approval of the Disclosure Statement and authorization to
begin the solicitation of creditor approval of our Plan of
Reorganization are two important steps on our path to emergence
from bankruptcy," Winn-Dixie President and Chief Executive
Officer Peter Lynch said.  "Our momentum continues to build in
our business. Our associates are energized and excited about the
progress we have made in our turnaround, and our customers are
responding favorably to our continued focus on providing
outstanding service and products."

At a hearing Friday in Jacksonville, the Honorable Jerry A. Funk
ruled that Winn-Dixie's Disclosure Statement was adequate for
the purposes of soliciting creditor approval for the Plan of
Reorganization.  A confirmation hearing for the Court to
consider approval of the Plan of Reorganization has been
scheduled for Oct. 13, 2006.  Later this month Winn-Dixie will
begin mailing notice of the proposed confirmation hearing and
begin the process of soliciting approvals for the Plan of
Reorganization from qualified claim holders.  The official
committee of unsecured creditors in Winn-Dixie's Chapter 11
proceedings has provided a letter to the company, to be mailed
to creditors with the Disclosure Statement, recommending that
creditors vote in favor of the Plan of Reorganization.  Assuming
the requisite approvals are received and the Court confirms the
Plan under the company's current timetable, Winn-Dixie will
emerge from Chapter 11 protection in late October or early
November 2006.

"The Plan of Reorganization and Disclosure Statement represent
the culmination of a concerted effort by a large number of
people to get Winn-Dixie out of Chapter 11 and maximize its
value to creditors," H. Jay Skelton, Chairman of the Winn-Dixie
Board of Directors, said.  "The creditors committee has provided
assistance in brokering the compromise of the 'substantive
consolidation' dispute that is included in the Plan and, without
which, our Chapter 11 case could be mired in expensive
litigation for many years.  We also appreciate that the
creditors committee has lent its support to our emergence from
Chapter 11 by recommending to creditors a vote in favor of the
Plan."

As reported in the Troubled Company Reporter on Aug. 3, 2006,
Winn-Dixie has received a commitment for up to US$725 million in
exit financing from Wachovia Bank.  The exit financing, which
will replace the company's current debtor-in-possession credit
facility on the effective date of a Plan of Reorganization, will
increase Winn-Dixie's cash availability substantially.  The
Court approved the commitment letter for the exit financing on
July 27.

If the company's Plan of Reorganization is confirmed, current
holders of Winn-Dixie's equity will not receive any
distributions following emergence and their equity interests
will be cancelled once the Plan of Reorganization becomes
effective.

            Terms of the Revised Disclosure Statement

In their second proposed Disclosure Statement, the Debtors have
added information regarding:

   -- holders or potential holders of unsecured claims
      concerning claim classifications;

   -- holders of executory contracts and unexpired leases
      concerning contingent voting;

   -- their financial performance while under bankruptcy
      protection;

   -- the reconstitution of the Official Committee of Unsecured
      Creditors and its service post-effective date of the Plan;

   -- possible restrictions on transfer of new securities; and

   -- treatment of common stock reserve.

According to Cynthia C. Jackson, Esq., at Smith Hulsey & Busey,
in Jacksonville, Florida, the Debtors have made the revisions as
a result of additional negotiations with the Creditors Committee
and to address objections and informal comments received from
parties-in-interest.

As previously reported, the estimated range of reorganization
value of the reorganized Debtors for the purposes of the Plan is
estimated to be about US$625,000,000 to US$890,000,000 as of the
assumed emergence date of Sept. 30, 2006.

Ms. Jackson clarifies that the estimated range of reorganization
value excludes any value for tax attributes that may or may not
be available in the future.

The Debtors have not made any changes to their pro forma
financial projections, Ms. Jackson notes.

              Classification of Unsecured Claims

According to the Revised Disclosure Statement, the Plan provides
for five Classes of Unsecured Claims, namely Noteholder Claims
in Class 12, Landlord Claims in Class 13, Vendor/Supplier Claims
in Class 14, Retirement Plan Claims in Class 15, and Other
Unsecured Claims in Class 16.

Unsecured Claimants entitled to vote on the Plan will receive a
ballot that identifies the Class in which the Debtors believes
the claim belongs.  Claimants who disagree with the
classification are directed to follow instructions printed on
the ballot on how to file a motion for determination of plan
class with the Court.

Holders of claims that are contingent, unliquidated, disputed,
or late, will receive a Notice of Non-Voting Status and
Temporary Allowance Procedures as well as a Claim Reduction
Form, which identifies the type of Unsecured Claim the holder
will have if the claim is allowed.  The Claim Reduction Form
also contains instructions on how to file a motion for
determination of plan class.

If no responses are filed, the unsecured claims will be treated
for all purposes as the type of claim identified on the ballot
or Class Reduction Form.

                     Contingent Voting

For parties to executory contracts or unexpired leases that have
not yet been assumed or rejected, but if rejected would
potentially give rise to a rejection damage claims, the Court
has approved a procedure under which the parties will be
permitted to cast a contingent vote.

Contingent votes will only be counted if a motion to reject a
contract or lease is filed before the hearing date to consider
confirmation of the Plan.

Under the Court-approved procedure, Claim Holders must:

  (a) file with the Bankruptcy Court a request for the temporary
      allowance of their rejection damage claims for voting
      purposes,

  (b) contemporaneously request a ballot in the amount of the
      possible rejection damage claims; or

  (c) properly complete and return the ballot before the Voting
      Deadline.

If a Claim Holder receives a ballot with respect to a
prepetition claim owing under a contract or lease, the
prepetition claim amount will be aggregated with the rejection
damage claim.  Consequently, the claim holder will be counted as
one vote for purposes of numerosity.

The Debtors reserve their right to object to the asserted
rejection damage claim amount and to ask the Court at the
Confirmation Hearing to reduce the claim amount temporarily
allowed for voting purposes.

                   About Winn-Dixie Stores

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


WINN-DIXIE: Changes Under Amended Joint Plan of Reorganization
--------------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates presented
their revised Joint Plan of Reorganization and its accompanying
Disclosure Statement to the U.S. Bankruptcy Court for the Middle
District of Florida on Aug. 2, 2006.  Under the amended plan,
the Debtors change the estimated allowed amounts for certain
classes of claims:

                                        Estimated Allowed Claims
                                        ------------------------
Class      Claims                      Original         Amended
-----      ------                      --------         -------
n/a       Administrative Claims      US$76,600,000    6,500,000

n/a       Priority Tax Claims           14,900,000    6,000,000

    8        Thrivent/Lutherans             395,864      375,000
             Leasehold Mortgage Claim      (6/30/06)   (7/31/06)

   10        Secured Tax Claims          31,300,000   25,500,000

   20        Non-Compensatory            10,000,000   11,000,000
             Damages Claims

The Debtors will have additional obligations arising on the
Effective Date, as a consequence of the implementation of the
Plan, which obligations include, without limitation,

   -- the potential success fees earned by advisors to the
      Debtors and the Creditors Committee -- estimated to be
      US$11,500,000;

   -- fees and expenses payable to the exit lender in connection
      with the closing of the Exit Facility  -- estimated to be
      US$6,500,000; and

   -- the costs of acquiring a D&O tail insurance policy,
      estimated to be US$10,000,000.

No application seeking payment of an Administrative Claim need
be filed with respect to Cure owing under an executory contract
or unexpired lease if the amount of Cure is fixed or proposed to
be fixed by order of the Bankruptcy Court pursuant to a motion
to assume and fix the amount of Cure filed by the Debtors and a
timely objection asserting an increased amount of Cure filed by
the non-Debtor party to the subject contract or lease.

The Debtors indicate that Class 3 Workers Compensation Claims
will continue to be paid in ordinary course.

The estimated allowed claims for Class 11 Other Secured Claims
are pending determination through the claims process.  The
Debtors have not identified any claim under Class 11 as of
Aug. 2, 2006.

On the initial Distribution Date, each holder of an Allowed
Noteholder Claim will receive in full satisfaction the claim,
62.69 shares of New Common Stock for each US$1,000 of Allowed
Claim.

The revised Plan defines a Small Claim under Class 17 as a claim
arising before the Debtors filed for bankruptcy against any of
the Debtors that is not a secured claim and that asserts an
amount greater than US$100 but lesser than US$3,000.

Class 19 Subordinated Claims are characterized as unliquidated.
The Debtors dispute the validity of all Subordinated Claims.
Subordinated Claims include the claims of plaintiffs in several
putative class action lawsuits filed in February to April 2004
against Winn-Dixie and certain present and former executive
officers alleging claims under the federal securities laws or
Employee Retirement Income Security Act relating to the
company's 401(K) Plan.

The Plan provides that each holder of an Allowed Secured Tax
Claim will receive the amount of the Allowed Claim over a period
of six years from the Effective Date, with interest at the rate
of 6% per annum, in equal quarterly payments.

The Amended Plan provides that, if the holder of an Allowed
Secured Claim makes a written offer to obtain alternative
payment terms, which may include an offer to discount the amount
of the Allowed Claim, and if the Reorganized Debtors accept the
offer, the Reorganized Debtors will make a lump sum payment
equal to the discounted amount no later than 15 days after the
date of acceptance.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people.  The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on
Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred
Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through
05-03840).  D.J. Baker, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Sarah Robinson Borders, Esq., and Brian C. Walsh,
Esq., at King & Spalding LLP, represent the Debtors in their
restructuring efforts.  Paul P. Huffard at The Blackstone Group,
LP, gives financial advisory services to the Debtors.  Dennis F.
Dunne, Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John
B. Macdonald, Esq., at Akerman Senterfitt give legal advice to
the Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 47; Bankruptcy Creditors' Service, Inc., 215/945-
7000).




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


* BELIZE: S&P Lowers Foreign Currency Rating to CC from CCC-
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term foreign
currency sovereign credit rating on Belize to 'CC' from 'CCC-'
while leaving its outlook on the rating at negative.  Standard &
Poor's affirmed its 'CCC+' long-term local currency sovereign
credit rating on Belize and revised its outlook on the rating to
stable from negative.  The 'C' short-term sovereign credit
ratings on the sovereign were affirmed.

According to Standard & Poor's credit analyst Richard Francis,
the rating actions follow the government's Aug. 2, 2006
announcement of its intention to restructure its foreign-
currency-denominated bonds and commercial bank loans.   The
government does not intend to restructure its local currency
denominated debt, much of which is held by public sector
institutions.  Thus, the outlook on the local currency rating
was moved to stable.

"When the government determines and embarks on its exchange
offer, Standard & Poor's will lower the foreign currency rating
to selective default," Mr. Francis said.  "Issue ratings will be
lowered to 'D' for affected issues, which are expected to
include most, if not all, of the sovereign's outstanding
foreign-currency-denominated obligations other than multilateral
or bilateral debt," he added.

Over the next month or two, the government will consult with its
creditors as to the possible forms that an exchange offer may
take. The government expects to settle on an exchange offer by
the end of September and to remain current on its debt service.
Mr. Francis explained that a post-default rating will be
announced once the terms of the restructuring are clear and
Standard & Poor's can evaluate the forward-looking debt burden,
as well as likely market access.  This post-default rating will
be assigned to the debt that is issued at the conclusion of the
exchange offer.

"Belize's debt dynamics will improve following the
restructuring, as will its creditworthiness," noted Mr. Francis.
"This, in turn, could enable the government to return to a
healthier fiscal position that is more conducive to attracting
investment and facilitating higher sustainable economic growth,"
he concluded.




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


CE SINGAPORE: Creditors Must File Proofs of Claim by Aug. 16
------------------------------------------------------------
CE Singapore Ltd.'s creditors are given until Aug. 16, 2006, to
prove their claims to Robin J. Mayor, the company's liquidator,
or be excluded from receiving any distribution or payment.

Creditors are required to send by the Aug. 16 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mayor.

A final general meeting will be held at the liquidator's place
of business on Sept. 6, 2006, at 9:30 a.m., or as soon as
possible.

CE Singapore's shareholders will determine during the meeting,
through a resolution, the manner in which the books, accounts
and documents of the company and of the liquidator will be
disposed.

CE Singapore's shareholders agreed on Aug. 1, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

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


CIGNA FUND: Deadline for Proofs of Claim Filing Is on Aug. 16
-------------------------------------------------------------
Cigna Fund Managers Limited's creditors are given until
Aug. 16, 2006, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.

Creditors are required to send by the Aug. 16 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mayor.

A final general meeting will be held at the liquidator's place
of business on Sept. 6, 2006, at 9:30 a.m., or as soon as
possible.

Cigna Fund's shareholders will determine during the meeting,
through a resolution, the manner in which the books, accounts
and documents of the company and of the liquidator will be
disposed.

Cigna Fund's shareholders agreed on July 28, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

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


CWS LTD: Creditors Have Until Aug. 16 to File Proofs of Claim
-------------------------------------------------------------
CWS Ltd.'s creditors are given until Aug. 16, 2006, to prove
their claims to Robin J. Mayor, the company's liquidator, or be
excluded from receiving any distribution or payment.

Creditors are required to send by the Aug. 16 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mayor.

A final general meeting will be held at the liquidator's place
of business on Sept. 6, 2006, at 9:30 a.m., or as soon as
possible.

CWS Ltd.'s shareholders will determine during the meeting,
through a resolution, the manner in which the books, accounts
and documents of the company and of the liquidator will be
disposed.

CWS Ltd.'s shareholders agreed on July 28, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

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


ENDURANCE SPECIALTY: Buys US$235M of Reinsurance from Shackleton
----------------------------------------------------------------
Endurance Specialty Holdings Ltd.'s subsidiary, Endurance
Specialty Insurance Ltd., acquired US$235 million of multi-year,
collateralized catastrophe reinsurance from Shackleton Re
Limited, a Cayman Islands reinsurance company.  This new
reinsurance is designed to enhance Endurance's ability to manage
risk related to large natural catastrophes in the United States.

The reinsurance consists of three separate coverages.  The first
coverage is US$125 million of reinsurance for earthquake risk in
California over the next 18 months.  The second coverage
consists of US$60 million of protection for hurricanes in the
U.S. Northeast, Gulf Coast and certain inland states over the
next two years.  The final coverage provides US$50 million of
reinsurance for losses over the next two years resulting from
hurricanes or California earthquakes following occurrence of a
major hurricane or California earthquake during the same year.

"These transactions provide Endurance with significant
catastrophe reinsurance protection while continuing to optimize
the use of our capital," Kenneth J. LeStrange, President,
Chairman and Chief Executive Officer of Endurance, commented.
"The US$235 million of new protection provided by this multi-
year collateralized reinsurance, when combined with our existing
capital, reinsurance and retrocessional protection, provides us
with significant capital strength to provide for our clients and
to continue to build our business."

On Aug. 1, 2006, Shackleton Re financed the reinsurance coverage
through the issuance of a US$125 million risk-linked catastrophe
bond pursuant to Rule 144A under the Securities Act of 1933 and
the entrance into a US$110 million multi-year risk-linked credit
facility.  Goldman, Sachs & Co. acted as the initial purchaser
for the catastrophe bond and as sole lead arranger, sole
bookrunner, and administrative agent for the credit facility.

                 About Endurance Specialty

Based in Pembroke, Bermuda, Endurance Specialty Holdings Ltd.
(NYSE: ENH) -- http://www.endurance.bm/-- is a provider of
property and casualty insurance and reinsurance.  Through its
operating subsidiaries, Endurance currently writes property per
risk treaty reinsurance, property catastrophe reinsurance,
casualty treaty reinsurance, property individual risks, casualty
individual risks, and other specialty lines.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 31, 2006,
Standard & Poor's Ratings Services assigned its preliminary
'BBB' senior debt, 'BBB-' subordinated debt, 'BB+' junior
subordinated, and 'BB+' preferred stock ratings to Endurance
Specialty Holdings Ltd.'s (BBB/Positive/--) recently filed
universal shelf.  The new shelf has an undesignated notional
amount in accordance with the new SEC rules effective
Dec. 1, 2005.


FLAG ATLANTIC: Liquidators Want Out from Liquidation Proceeding
---------------------------------------------------------------
Michael W. Morrison, Chris Laverty and Richard Heis, the
provisional liquidators for Flag Atlantic Limited's winding-up
proceeding have asked the Supreme Court of Bermuda to be
released from the company's case under the Companies Act 1981.

Flag Atlantic's creditors and shareholders are given up to
twenty-one days after the approval of the release to raise their
objections to the court.

On April 12, 2002, FLAG Telecom Holdings Limited filed for
Chapter 11 protection in the U.S. Bankruptcy Court for the
Southern District of New York.

On April 19, 2002, Flag Telecom and its Bermudan subsidiaries,
Flag Atlantic Limited and Flag Atlantic Holdings Limited, filed
for ancillary petitions pursuant to Section 161 of the Companies
Act 1981 of Bermuda to:

   -- wind-up the companies;
   -- to enforce stay against creditors; and
   -- for the appointment of Joint Provisional Liquidators.

The Debtors were represented by:

         Conor D. Reilly, Esq.
         Janet M. Weiss, Esq.
         M. Natasha Labovitz, Esq.
         Craig A. Bruens, Esq.
         Paul H. Guillotte, Esq.
         Sarah K. Larcombe, Esq.
         Joseph Furst, Esq.
         Gibson, Dunn & Crutcher LLP
         200 Park Avenue
         New York, NY 10166
         Tel: (212) 351-4000
         Fax: (212) 351-4035

The liquidators can be reached at:

          Richard Heis
          Chris Laverty
          KPMG
          8 Salisbury Square
          London
          EC4Y 8BB
          Tel: (020) 7311 1000
          Fax: (020) 7311 3311


FLAG ATLANTIC HOLDINGS: Liquidators Ask to be Released from Case
----------------------------------------------------------------
Michael W. Morrison, Chris Laverty and Richard Heis, the
provisional liquidators for Flag Atlantic Holdings Limited's
winding-up proceeding have asked the Supreme Court of Bermuda to
be released from the company's case under the Companies Act
1981.

Flag Atlantic's creditors and shareholders are given up to
twenty-one days after the approval of the relaese to raise their
objections to the court.

On April 12, 2002, FLAG Telecom Holdings Limited filed for
Chapter 11 protection in the U.S. Bankruptcy Court for the
Southern District of New York.

On April 19, 2002, Flag Telecom and its Bermudan subsidiaries,
Flag Atlantic Limited and Flag Atlantic Holdings Limited, filed
for ancillary petitions pursuant to Section 161 of the Companies
Act 1981 of Bermuda to:

   -- wind-up the companies;
   -- to enforce stay against creditors; and
   -- for the appointment of Joint Provisional Liquidators.

The Debtors were represented by:

         Conor D. Reilly, Esq.
         Janet M. Weiss, Esq.
         M. Natasha Labovitz, Esq.
         Craig A. Bruens, Esq.
         Paul H. Guillotte, Esq.
         Sarah K. Larcombe, Esq.
         Joseph Furst, Esq.
         Gibson, Dunn & Crutcher LLP
         200 Park Avenue
         New York, NY 10166
         Tel: (212) 351-4000
         Fax: (212) 351-4035

The liquidators can be reached at:

          Richard Heis
          Chris Laverty
          KPMG
          8 Salisbury Square
          London
          EC4Y 8BB
          Tel: (020) 7311 1000
          Fax: (020) 7311 3311


FLAG TELECOM: Liquidators Ask Court for Release from Proceeding
---------------------------------------------------------------
Michael W. Morrison, Chris Laverty and Richard Heis, the
provisional liquidators for Flag Telecom Holdings Limited's
winding-up proceeding have asked the Supreme Court of Bermuda to
be released from the company's case under the Companies Act
1981.

Flag Telecom's creditors and shareholders are given up to
twenty-one days after the approval of the release to raise their
objections to the court.

On April 12, 2002, FLAG Telecom Holdings Limited filed for
Chapter 11 protection in the U.S. Bankruptcy Court for the
Southern District of New York.

On April 19, 2002, Flag Telecom and its Bermudan subsidiaries,
Flag Atlantic Limited and Flag Atlantic Holdings Limited, filed
for ancillary petitions pursuant to Section 161 of the Companies
Act 1981 of Bermuda to:

   -- wind-up the companies;
   -- to enforce stay against creditors; and
   -- for the appointment of Joint Provisional Liquidators.

The Debtors were represented by:

         Conor D. Reilly, Esq.
         Janet M. Weiss, Esq.
         M. Natasha Labovitz, Esq.
         Craig A. Bruens, Esq.
         Paul H. Guillotte, Esq.
         Sarah K. Larcombe, Esq.
         Joseph Furst, Esq.
         Gibson, Dunn & Crutcher LLP
         200 Park Avenue
         New York, NY 10166
         Tel: (212) 351-4000
         Fax: (212) 351-4035

The liquidators can be reached at:

          Richard Heis
          Chris Laverty
          KPMG
          8 Salisbury Square
          London
          EC4Y 8BB
          Tel: (020) 7311 1000
          Fax: (020) 7311 3311


MONTPELIER RE: S&P Assigns BB+ Rating on Preferred Stock
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
'BBB' senior debt, 'BBB-' subordinated debt, and 'BB+' preferred
stock ratings to Bermuda-based Montpelier Re Holdings Ltd.'s
recently filed universal shelf.

At the same time, Standard & Poor's affirmed its 'BBB'
counterparty credit rating on MRH and its 'A-' financial
strength and counterparty credit rating MRH's operating
subsidiary, Montpelier Reinsurance Ltd. The outlook remains
negative.

The recent unlimited shelf registration is in accordance with
the new SEC rules and replaces MRH's previous US$1 billion shelf
registration filed in 2005.  Standard & Poor's does not expect
any potential issuances under the new shelf to lead to material
changes in the group's financial leverage in the near term.

"The ratings on the group reflect its strong market position and
scale within the property catastrophe reinsurance market," Said
Standard & Poor's credit analyst Laline Carvalho.  "In addition,
we expect that Montpelier will be successful in its efforts to
reduce the volatility inherent in its product mix while
generating an appropriate level of profitability through
improved risk-management and -modeling capabilities."

If Montpelier's risk-management and risk-modeling capabilities
are not successful in effectively rebalancing its operational
profile or if adverse Katrina loss reserve development or
another major catastrophic event highlight material enterprise
risk management or operational deficiencies, Standard & Poor's
will lower the ratings.  Alternatively, if Montpelier meets
Standard & Poor's expectations and is able to demonstrate strong
enterprise risk management and operational capabilities, we will
consider revising the outlook to stable.  Any revision to a
stable outlook will be contingent on Montpelier demonstrating a
track record of success over a sustained period of time.


OCEAN GRAND CHEMICAL: Court Sets Winding-Up Hearing for Aug. 18
---------------------------------------------------------------
The Supreme Court of Bermuda set 9:30 a.m., on Aug. 18, 2006, to
hear the petition for the winding up of Ocean Grand Chemical
Holdings Limited's business operation.  The petition was
submitted to the Supreme Court on July 24, 2006.

On July 25, 2006, the Supreme Court appointed Lai Kar Yan, also
known as Lai Kar Yan, Derek and Joseph Kin Ching Lo, both of
Deloitte Touche Tohmatsu as provisional liquidators.

Parties-in-interests who want to attend the hearing must inform
and serve notice not later than 4:00 p.m. on Aug. 17, 2006, to
the petitioner's counsel:

       Conyers Dill & Pearman
       Clarendon House
       2 Church Street
       Hamilton, HM 11, Bermuda

The liquidators can be reached at:

       Lai Kar Yan
       Joseph Kin Ching Lo
       Deloitte Touche Tohmatsu
       35th Floor, One Pacific Place
       88 Queensway, Hong Kong


OCEAN GRAND: Supreme Court Set to Hear Petition on Aug. 18
----------------------------------------------------------
The Supreme Court of Bermuda set 9:30 a.m., on Aug. 18, 2006, to
hear the petition for the winding up of Ocean Grand Holdings
Limited's business operation.  The petition was presented to the
Supreme Court on July 24, 2006.

On July 25, 2006, the Supreme Court appointed Lai Kar Yan, also
known as Lai Kar Yan, Derek and Joseph Kin Ching Lo, both of
Deloitte Touche Tohmatsu as provisional liquidators.

Parties-in-interests who want to attend the hearing must inform
and serve notice not later than 4:00 p.m. on Aug. 17, 2006, to
the petitioner's counsel:

       Conyers Dill & Pearman
       Clarendon House
       2 Church Street
       Hamilton, HM 11, Bermuda

The liquidators can be reached at:

       Lai Kar Yan
       Joseph Kin Ching Lo
       Deloitte Touche Tohmatsu
       35th Floor, One Pacific Place
       88 Queensway, Hong Kong


OVERSEAS LEASING: Creditors Must File Proofs of Claim by Aug. 16
----------------------------------------------------------------
Overseas Leasing Four FSC, Ltd.'s creditors are given until
Aug. 16, 2006, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.

Creditors are required to send by the Aug. 16 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mayor.

A final general meeting will be held at the liquidator's place
of business on Sept. 6, 2006, at 9:30 a.m., or as soon as
possible.

Overseas Leasing's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed.

Overseas Leasing's shareholders agreed on July 28, 2006, to
place the company in voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

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


REFCO INC: Ch. 7 Trustee Can Reimburse US$749,579 to Refco Group
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of new York
authorizes Albert Togut, the Chapter 7 Trustee appointed to
oversee the liquidation of Refco, LLC's estate, to reimburse
US$747,579 to Refco Group Ltd., LLC, for payments made to
holders of mechanic's lien claims.

As reported in the Troubled Company Reporter on July 7, 2006,
Mr. Togut, West Loop Associates LLC and the Contractors, Alps
Construction, Inc., KCE Ltd. and Griswold, Heckel & Kelly
Associates, Inc., reached a comprehensive settlement to resolve
West Loop's request, the Mechanic's Liens and the Claims.

In a Court-approved stipulation each of the Contractors agreed
to:

   (i) reduce by 5% the outstanding principal amount of each of
       its Claim  pertaining to the Properties;

  (ii) waive all attorney's fees and accrual of any interest to
       which each Contractor may be entitled;

(iii) take the necessary steps to discharge and release the
       Mechanic's Liens so that the threatened default against
       West Loop may be averted;

  (iv) release Refco LLC from any further claims relating to the
       Contracts, the Mechanic's Liens, and their Claims;

   (v) withdraw their Claims against Refco LLC; and

  (vi) file no additional proofs of claim against Refco LLC.

Refco Group will pay the Contractors US$747,579 in the aggregate
in full satisfaction of the Mechanic's Liens, the Claims, and
any other amounts due in connection with the Contracts.

                 West Loop's Motion to Compel

West Loop had asked the Court to compel Refco Group to comply
with its postpetition lease obligations.

Refco Group leases seven floors of an 18-story office building
owned by West Loop in the central business district of Chicago,
Illinois.  Refco, LLC, occupied some or all of the leased
premises.

Refco Group continues to occupy the Premises pursuant to a March
2006 Stipulated Order among Debtors, West Loop and Man
Financial, Inc.  The Stipulated Order contemplates rejection of
the Lease effective August 15, 2006.

Sidney P. Levinson, Esq., at Hennigan, Bennett & Dorman LLP, in
Los Angeles, California, contends that until the effective
rejection date, RGL is required "to timely perform all
obligations under the Lease to the extent required by Section
365(d)(3) of the Bankruptcy Code.  Among those obligations, Mr.
Levinson said, is a Lease covenant to either discharge or bond
any mechanic's liens filed against the Property as a result of
work performed or alleged to have been performed on the
Premises.

Mr. Levinson noted that Refco LLC has entered into a series of
agreements with Alps Construction, Inc., KCE Ltd. and Griswold,
Heckel & Kelly Associates, Inc., for the construction work to be
performed at the leased Premises.  The Contractors have sought
relief from the bankruptcy stay to commence a foreclosure action
in Illinois against RGL, Refco LLC, and West Loop.

The Contractors assert that Refco LLC or RGL failed to pay for
the work, leaving a balance in excess of US$700,000, including
amounts owed for work that was not completed until nearly one
month after RGL's bankruptcy filing.  The Contractors have filed
mechanic's liens of more than US$700,000 against the Property.

Although the Bankruptcy Court denied the Contractors' request,
the ruling did not fully resolve the problems West Loop faced.

Mr. Levinson relates that by letter dated April 19, 2006, West
Loop's mortgage lender, Greenwich Capital Financial Products,
Inc., issued a notice of default to West Loop based on the
existence of the Mechanic's Liens.  The notice of default
provides that, unless the Mechanic's Liens are discharged or
bonded, West Loop will be held in default under its purchase
money loan agreement dated Oct. 7, 2005.

Unless the Court compels RGL to discharge or bond the Mechanic's
Liens, West Loop and, by consequence, RGL's estate will suffer
substantial damages that could and should otherwise be avoided
if RGL complies with its lease obligations, Mr. Levinson told
Judge Drain.

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


REFCO INC: Refco Capital Trustee Hires Skadden as Special Atty.
---------------------------------------------------------------
The Honorable Robert Drain of the United States Bankruptcy Court
for the Southern District of New York permits Marc Kirschner,
the Refco Capital Markets, Ltd.'s Trustee, to employ Skadden,
Arps, Slate, Meagher & Flom LLP, as his special counsel for
limited purposes under an engagement letter, pursuant to Section
327(e) of the Bankruptcy Code and Rule 2014 of the Federal Rules
of Bankruptcy Procedure.

If Skadden seeks a waiver to represent one or more of the other
Chapter 11 Debtors on any matter in which Skadden would be
adverse to RCM, and the RCM Trustee chooses not to grant the
requested waiver, then:

   (i) Skadden may withdraw from further RCM representation and
       may represent one or more of the Other Chapter 11 Debtors
       on any matter; and

  (ii) neither RCM nor the RCM Trustee will assert that
       Skadden's prior representation of RCM should disqualify
       it from representing one or more of the Other Chapter 11
       Debtors in any manner.

Consistent with the Engagement Letter, Skadden may not represent
RCM, but will represent one or more of the Other Chapter 11
Debtors, with respect to claims arising out of or related to
intercompany transactions or allocation issues.

Skadden may be compensated in accordance with the Engagement
Letter, subject to applicable requirements for payment of fees
and disbursements under the Court's orders.

As reported in the Troubled Company Reporter on July 5, 2006,
Mr. Kirschner, wants Skadden to continue providing some, but not
all, of those services to RCM, including:

   (a) continuing advice with respect to the litigation matters
       that were stayed pursuant to the Court's Nov. 28, 2005,
       order and the Refco Securities Lawsuit;

   (b) claims resolution where the claim has been asserted
       against one or more Other Refco Companies as well as RCM
       -- other than claims by other Chapter 11 Debtors against
       RCM;

   (c) matters involving ACM Advanced Currency Markets S.A., and
       RCM's ownership interest in ACM;

   (d) matters involving consolidated tax returns filed or to be
       filed by the Chapter 11 Debtors;

   (e) recoveries against third parties arising under "cross
       margin" agreements, whether or not involving the Other
       Chapter 11 Debtors;

   (f) pending litigation between Cargill, Incorporated and the
       Chapter 11 Debtors;

   (g) in consultation with Bingham McCutchen LLP, the Trustee's
       general bankruptcy counsel, the prospective settlement
       between the Refco Companies and BAWAG P.S.K. Bank fur
       Arbeit und Wirtschaft und Osterreichische Postsparkasse
       Aktiengesellschaft and its affiliates;

   (h) any matters remaining in the preference action -- or
       enforcement of the settlement -- against the SPhinX
       Funds;

   (i) continuing advice with respect to the pending
       investigations by the United States Department of Justice
       and the Securities and Exchange Commission; and

   (j) motions, applications, answers, orders, reports and
       papers necessary to the administration of the RCM estate
       other than in connection with matters with respect to
       which RCM wishes to take a position different than the
       position taken by the Other Chapter 11 Debtors.

Among other things, Skadden will not be rendering services to
RCM with respect to:

   (a) whether and on what terms RCM or its creditors
       participate in a Chapter 11 plan with the Other Chapter
       11 Debtors;

   (b) claims between RCM and the Other Chapter 11 Debtors
       arising out of intercompany transactions; and

   (c) advice with respect to "corporate actions" that may be
       necessary or desirable relating to various securities
       held by RCM.

With respect to intercreditor and intercompany issues in the
Chapter 11 cases, Skadden will:

    -- not, without a waiver from RCM, represent the Other
       Chapter 11 Debtors in litigation against RCM;

    -- continue to provide information and analysis to the
       Chapter 11 Debtors regarding intercompany claims;

    -- continue to represent the Other Chapter 11 Debtors in
       formulating a plan of reorganization; and

    -- continue to investigate intercompany claims as provided
       in the Engagement Letter.

Skadden and the Debtors have previously agreed that the firm's
bundled rate structure will apply to these cases.  Skadden's
hourly rates under the bundled rate structure range from:

       US$585 to US$830 for partners;
       US$560 to US$640 for counsel;
       US$295 to US$540 for associates; and
        US$90 to US$230 for legal assistants and support staff.

Skadden will allocate its fees and disbursements among the
various Chapter 11 Debtors, including RCM, to charge each estate
appropriately for the services provided on behalf of the estate.
Skadden, RCM and the Other Refco Debtors have agreed that:

     * 2/3 of the fees and expenses Skadden incurred in
       connection with the "stockbroker" litigation culminating
       in the order appointing the RCM Trustee will be allocated
       to RCM and 1/3 to the Other Refco Debtors; and

     * Skadden's other fees incurred appropriately on behalf of
       all the Refco Companies will be allocated 40% to RCM and
       60% to the Other Refco Debtors.

J. Gregory Milmoe, a member of Skadden, assures the Court that
the firm does not have any connection with the Debtors, their
affiliates, their creditors, any other party-in-interest, their
attorneys and accountants, and the United States Trustee or any
person employed in the Office of the United States Trustee.
Moreover, Skadden is a disinterested person as defined under
Section 101(14) of the Bankruptcy Code and does not represent
any interest that is adverse to the estates of the Chapter 11
Debtors, including RCM.

                      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).




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


PETROLEO BRASILEIRO: Refutes Irregularity Claims on Gas Sales
-------------------------------------------------------------
Petoleo Brasileiro S.A. aka Petrobras declares that the
denunciations regarding former company executives being involved
in supposed irregularities in an agreement for Bolivian gas
sales to Brazil are unfounded.  Petrobras clarifies that both in
Brazil and abroad, the company carries its activities out in
strict compliance with the legal norms in effect in each country
where it has operations, in agreement with its transparency and
social responsibility policy.

As previously reported, the Bolivian government conducted
investigations against Petrobras and Repsol YPF for alleged gas
meter tampering.  Bolivian authorities claimed that
irregularities were detected after a surprise inspection at the
Maragarita gas field administered by Repsol-YPF, and at the San
Antonio gas field that Petrobras operates.

The gas meters Petrobras uses are among the most modern
available and are closely monitored by Yacimientos Petroliferos
Fiscales Bolivianos, Bolivia's very own state oil company, Dow
Jones Newswires quoted Petrobras head Jose Sergio Gabrielli as
saying.

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

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's and its foreign currency long-term debt is
rated BB- by Fitch.

                        *    *    *

As reported in the Troubled Company Reporter on April 26, 2006,
in conjunction with the roll out of Issuer Default Ratings and
Recovery Ratings for Latin America Corporates, Fitch Ratings has
taken rating actions on Petroleo de Brasileiro SA.  These
ratings were affected:

  Foreign Currency:

    -- Previous Rating: 'BB-'
    -- New RR: 'BB', Rating Outlook Positive

  US$2.5 billion, Senior Unsecured Notes due 2008, 2013, 2014
  and 2018:

    -- Previous Rating: 'BB-'
    -- New IDR: 'BB+'




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


COMPANHIA ENERGETICA: Moody's Ups Corporate Family Rating to B1
---------------------------------------------------------------
Moody's Investors Service upgraded the global local currency
corporate family rating of Companhia Energetica de Sao Paulo's
aka CESP to B1 from B2, and the foreign currency rating of the
company's Medium Term Notes Program and rated debts issued under
the MTN Program to B2 from B3.  Simultaneously, Moody's assigned
a B2 foreign currency rating to the company's new USD 220
million senior unsecured notes due 2013 issued under the MTN
Program, which amount was increased to US$975 million from
US$800 million to accommodate the new issuance.  The ratings
remain under review for possible further upgrade.

These ratings are affected:

   -- Global Local Currency Corporate Family Rating: to
      B1 from B2;

   -- US$800 million Senior Unsecured Medium-Term Notes
      Program: B2; and

   -- US$300 million 10% Senior Unsecured Notes due 2011 issued
      under the MTN program: B2.

This rating is assigned:

   -- US$220 million 9.25% Senior Unsecured Notes due 2013
      issued under the MTN program: B2.

The upgrade reflects the improved stand-alone credit risk
profile (Baseline Credit Assessment) of CESP as a result of a
significant reduction of its refinancing risk following the
conclusion of the BRL3 billion capital increase and the issuance
of new debt, namely a BRL650 million 4-year receivables
securitization fund and USD 220 million of 7-year unsecured
notes under the extended MTN Program.  Moody's expects that the
proceeds from the capital increase and new loans will be used to
reduce and re-profile the company's indebtedness.  As part of
its ongoing capital restructuring program, the company also
plans the issuance of some BRL2 billion of long-term local
currency debentures that would further contribute to improve
CESP's debt maturity profile.

CESP's ratings remain under review for possible upgrade.
Following the conclusion of CESP's capital restructuring
program, Moody's review of its ratings will focus on its ability
to generate sufficient internal cash flow to meet financial
obligations over the foreseeable future among other
considerations.

The B2 foreign currency rating assigned to the company's US$975
million unsubordinated unsecured MTN Program reflects the B1
global local currency corporate family rating of CESP and the
structural subordination of the notes issued under the MTN
Program to the existing secured debt of CESP, estimated at about
25% of the company's total adjusted debt as of March 31, 2006.
A significant reduction of the amount of secured debt following
the ongoing capital restructuring program could result in the
elimination of the notching of the MTN Program relative to
CESP's corporate family rating.  The B2 foreign currency rating
of the MTN Program is not constrained by Brazil's Ba2 sovereign
ceiling.

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 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.

Headquartered in Sao Paulo, Brazil, 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 March 31, 2006.


COMPANHIA SIDERURGICA: S&P Affirms BB Long-Term Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' long-term
corporate credit rating on Brazil-based steel maker Companhia
Siderurgica Nacional aka CSN after the announcement of its
association with U.S.-based steel maker Wheeling-Pittsburgh
Corp. in the U.S.  The outlook is stable.

CSN and WPSC jointly announced an association under which CSN
will become the ultimate shareholder of 49.5% of a new entity
(the new WPSC) that will hold WPSC's operations in Ohio, West
Virginia, and Pennsylvania, as well as CSN's finishing
facilities in Terre Haute, Ind.  CSN will also contribute US$225
million in cash to the new WPSC, out of which US$150 million
will be invested in the new company's hot strip mill and
galvanizing capacity and the remainder used to improve
liquidity.  CSN's cash contribution will be provided in the form
of a financing, convertible into the new entity's shares within
a three-year period (at CSN's discretion and subject to the
approval by the United Steelworkers), raising its shareholding
to 64%. The agreement also sets a long-term slab supply contract
between the new WPSC and CSN, aimed at providing the new company
with additional working capital flexibility and improving its
cost position.  The arrangement is subject to approval by WPSC's
shareholders and the expiration of the "right-to-bid" period
with United Steelworkers.

Implications to CSN's credit quality, if the deal is
successfully concluded as announced, are an improvement of CSN's
operations in the U.S., by:

   -- leveraging up its market position and providing it with
      more operating integration (eliminating tolling costs
      currently incurred by CSN LLC);

   -- establishment of a more robust distribution platform in
      the U.S. and Canada (as it secures exclusive distribution
      rights for CSN flat rolled steel products in those
      countries); and

   -- securing of demand for the expanding slab production
      capacity to be originated in Brazil.

Nevertheless, the new WPSC is expected to absorb only part of
the increasing slab capacity that CSN is expected to put in
place with its new slab mill (even assuming a total expanded hot
strip mill capacity of 4.0 million short tons per year at the
new WPSC).  Therefore, Standard & Poor's continues to factor the
company's aggressive capital expenditure program and the
associated execution and market risks as a pivotal rating
factor.

"We acknowledge that CSN's cash disbursement of US$225 million
to the new WPSC does not have any impact on CSN's liquidity,
considering its strong cash at hand (of US$1.7 billion as of
March 2006), and we do not factor in our analysis further cash
contributions to the new WPSC in the foreseeable future.  That
assumes, however, that the new WPSC is able to achieve its
projected performance recovery from current weak levels, and
investment plans remain unchanged," said Standard & Poor's
credit analyst Reginaldo Takara.

The stable outlook reflects Standard & Poor's expectation that
CSN will preserve strong liquidity thanks to its robust cash
generation and despite its significant capital expenditures
program and dividend distribution.  The outlook also assumes
that CSN will be able to maintain sound operating results
through the steel cycle thanks to its favorable cost position
and access to steel export markets.

While CSN's expansion projects add risks to the company's
business and financial profiles during the implementation phase
(which now includes the integration challenges for the WPSC and
CSN LLC in the U.S.), Standard & Poor's believes there is still
room for CSN to manage these projects without jeopardizing its
credit ratios significantly. Nevertheless, given incremental
risks associated with the company's capital expenditure plans
and the fact that Standard & Poor's does not incorporate capital
structure improvements in its analysis, it sees limited upward
potential for the ratings in the medium term.  The rating agency
believes commitments with the WPSC association, if concluded as
announced, will not damage CSN's liquidity in the future.
Nevertheless, further capital contributions to the association
or other acquisitions that could potentially hurt the company's
liquidity or significantly add financial leverage can lead to a
negative revision of the ratings or a negative outlook.


SADIA SA: Second Quarter Results Reflect Market Difficulties
------------------------------------------------------------
"As expected, all the market difficulties shown in the first
quarter were intensified in the 2Q06, such as the restriction on
poultry consumption due to the avian influenza that hit Europe,
Asia and some African countries, and the Russian ban on imports
of Brazilian pork.  2Q06 was one the most difficult ones in the
past years," Sadia S.A.'s Chief Executive Officer Gilberto
Tomazoni said.

Export prices reached historical lows and resulted in 30% lower
revenues as compared to the 2Q05, even though volumes had a
reduction, of 11.4%.  The efforts to increase sales in the
domestic market led to a 22% increase in volumes sold, but
revenues had a lower growth of 4.9%, pressured by excess supply
and price deterioration.  The advantages obtained with the
reduction of grain prices did not neutralize the impact of
export reduction, the valuation of the real and the worsening of
the product portfolio sold in the domestic market. As a
consequence, the 20.6% gross margin obtained is lower than the
27% average of last five years (3Q01 - 2Q06).

Even though volumes directed towards the domestic market were
larger than expected, there was a decrease in the distribution
expenses.  Due to low operating performance, the company
presented in the second quarter, net income as a percentage of
net revenues of 1.1%.  The 37% increase in net debt is a result
of lesser operating cash generation and maintenance of the level
of investments.

"We are building on new units in the state of Mato Grosso and
adapting the existing ones to bake and grill products to be
exported already in the second semester. This will improve our
competitive advantage and will reduce risk in an eventual Avian
Influenza outbreak in Brazil.  We believe that in the second
semester the international demand and prices ought to improve
due to lower levels of inventories and the return to normal
levels of poultry consumption.  Moreover, it is expected that
Egypt will begin importing poultry meat, Iraq will resume its
purchases, the demand in Europe will start to pick up, besides
the fact that there was a new Avian Influenza outbreak in
Thailand, an important competitor to Brazilian exports, and that
Russia will resume its pork imports from Brazil.  We are
confident in price and markets recovery and will continue
learning with the challenges, always focusing in results and
committed to providing products of the highest quality. We thank
all our collaborators and shareholders for the support given to
the administration in one of the toughest periods of our
history," Mr. Tomazoni continued.

Sadia is still facing an unfavorable environment, with
reductions on world poultry consumption, due to avian influenza,
and reductions on pork exports, due to import bans imposed by
Russia - the main buyer of this segment. However, the
performance of the beef and processed products segment
diminished the impact on total sales.

Sadia's total sales volumes in 2Q06 amounted to 467,500 tons,
which represents a slight increase of 2.8% as compared to the
same period of last year, when volumes reached 454,700 tons.  As
a consequence of the price reduction in the domestic and foreign
markets, in all segments, total gross operating revenues were
13.0% below as compared to the 2Q05, and amounted BRL1.8
billion.  Led by domestic market performance, processed products
volumes registered a 9.4% increase in 2Q06, from 175,300 tons in
2Q05 to 191,700 tons.  Gross operating revenues increased 3.7%
in the quarter, reaching BRL913.9 million.  Domestic market
represents 90% of the volumes sold in this segment.

The beef segment, which the company resumed its activities last
year, continued as the main highlight in both domestic and
foreign markets. Beef volumes increased 143.5% in the quarter
amounting to 12,100 tons, generating BRL66.2 million in gross
revenues.  The participation of the beef segment in Sadia's
gross revenues increased 3.7% in 2Q06, as compared to 1.5% in
the same period of last year.

In the poultry segment, volumes sold had a slight increase of
1.8% in the quarter, reaching 238,200 tons, as compared to
234,100 tons in 2Q05.  Gross operating revenues in this segment
amounted to BRL632.6 million, a 24.1% decrease.  Even though
avian influenza has harmed exports during the first three months
of the year, the most severe impact was felt in the second
quarter.  However, the market has started to recover and there
are positive perspectives for the second semester.

In the pork segment, volumes sold amounted to 25,400 tons -- a
37.1% reduction.  Gross operating revenues had a 53.1% decrease,
adding up to BRL107.1 million.  The suspension of shipments to
Russia resulted in a loss of participation of this segment in
the Company's consolidated gross operating revenues, as of the
second quarter of last year, it accounted for 11.2%, whereas in
the second quarter of 2006 it represented 6.0%.  In the domestic
market, volumes sold had a 10.3% increase in the quarter, but
revenues fell 5.5% as due to the market excess supply.

                       Domestic Market

In the second quarter, volumes sold in the domestic market grew
in all segments Sadia is present.  Total volumes amounted to
235,600 tons, a 22.1% increase as compared to the same period of
last year.  Gross operating revenues surpassed once more the
BRL1.0 billion mark, showing a 4.9% increase.  The directing of
products towards the domestic market that would have otherwise
been exported pressured the prices of other products.

Processed products volumes were 11.8% above in the quarter and
added up to 173,200 tons, leading to 6.4% greater revenues of
BRL826.7 million. This segment represents 80% of domestic market
revenues.  Even though average prices of this segment have also
fallen, they had the least decrease.  Average prices had a 4.8%
decrease in the quarter, and 4.0% in the semester.  The poultry
segment was also a highlight, with a 73.0% growth in volumes,
reaching 50,700 tons.  With excess supply in the domestic
market, due to the reshifting of exports, average prices of
poultry had a 34.8% decrease and revenues had a 12.7% increase,
adding up to BRL108.9 million, representing 10.6% of domestic
market gross revenues.

In the pork segment, volumes sold grew 10.3% in the quarter,
adding up to 9,400 tons.  However, the segment revenues fell
5.5% to BRL36.2 million, as a result of domestic excess supply,
that led to a 14.3% decrease in prices.

In the beef segment, volumes grew 1,145% in the quarter,
reaching 2,300 tons, as compared to 182 tons sold in the second
quarter of last year. Revenues had also an impressive
development, despite average prices having fallen 40% in the
quarter -- the largest retraction in all segments.  Gross
operating revenues of beef amounted to BRL8.7 million, with a
649.2% growth.  The participation of this segment in the
company's domestic market revenues grew from 0.12% in the second
quarter of 2005 to 0.85% in the second quarter of 2006.  The
participation of this segment in the company's domestic market
volumes grew from 0.09% in the second quarter of 2005 to almost
1% in the second quarter of 2006.

                      External Market

The 10% appreciation of the real as compared to the 2Q05 and the
reduction of poultry and pork exports, due to the avian
influenza and the embargos, respectively, resulted in a 11.4%
decrease in volumes in the quarter, which amounted to 261,700
tons.  Operating revenues had a 29.4% decrease in the period,
amounting to BRL750.9 million.

Volumes in the poultry segment added up to 187,600 tons, 8.4%
inferior as compared to 2Q05.  Gross revenues registered a 29.0%
decrease, amounting to BRL523.6 million.  Avian influenza
continued to harm Brazilian poultry exports, segment in which
Sadia is the market leader.

Pork exports were 49.8% below in volumes and 62.7% in revenues,
which amounted to BRL70.9 million.  Volumes sold added up to
15,900 tons. Even though Sadia has a unit in one of the main
pork producing states -- Rio Grande do Sul, which was cleared to
export to Russia -- sales in this segment fell as Russia is
responsible for the majority of the Brazilian pork exports.

Despite the embargos that were imposed on Brazilian beef, which
has the smallest participation in the company's revenues -- was
the only one that saw an increase and its prices were the ones
that least suffered in the quarter.  As Sadia slaughters its
beef in the state of Mato Grosso, free of foot and mouth
disease, the performance of this segment was considered as a
highlight.  Volumes sold amounted to 9,800 tons, 105.5% above as
compared to 2Q05.  Revenues had an 89.7% growth, reaching
BRL57.5 million.  The participation of this segment in volumes
exported increased from 1.8% to 4.2%, while in revenues the
participation increased from 2.9% to 7.7%.

In the processed products segment, revenues amounted to BRL87.2
million in the quarter, a reduction of 16.4% as compared to
2Q05.  Volumes sold fell 8.8%, reaching 18,500 tons.

Sadia is in complete compliance with the National Plan for the
Prevention of Avian Influenza and the Control and Prevention of
the Newcastle Disease as it has readapted its farms in order to
avoid the risk of contamination of its commercial flock with
wild birds.

The Plan follows the International Animal Health Organization
recommendations for zoning.  All measures are aimed to assure
international markets that Brazil maintains sanitary barriers
between states and permit them to petition OIE to consider them
as autonomous regions.  Therefore, these measures should avoid
generalized suspensions on exports in the event of outbreaks of
local sanitary crisis.

                      Operating Results

Net revenues in the 2Q06 amounted to BRL1.5 billion, 14.7% below
compared to the same period of last year.  This performance is
due mainly to the restriction of the international poultry trade
due to avian influenza, of the ban of pork imports by Russia and
the appreciation of the real.

Exports had a decrease in its dollar average prices, and also
suffered from the average devaluation of the closing prices of
the dollar to real exchange rate of 10% from the 2Q06 to the
2Q05 that together led to a negative impact in the composition
of export revenues and reflected in a decrease of its
participation on the Company's total net operating revenues,
from 59% to 49% in the 2Q06. In the semester, net revenues
reached BRL 3,042.8 million, 11.6% below the first semester of
2005.

Costs per ton sold had an 11% decrease as compared to 2Q05 and a
4% decrease as compared to 1Q06, mainly due to the reduction in
grain prices.  The difficulty in generating revenues in higher
levels did not allow the dilution of fixed costs and led to a
retraction of 5.9% in the gross margin, which decreased from
26.5% in 2Q05 to 20.6% in 2Q06.

Operating expenses -- sales expense, general, administrative and
others -- of BRL313.9 million in 2Q06, were 7% below that of
2Q05, but the as a percentage of net revenues, it reached a
ratio of 20.4%, higher than the 18.7% achieved in the 2Q05.
Sales expenses, that answers for 92.8% of all expenses, also had
a 7% decrease as compared to 2Q05 as compared to 2Q06.
Pressured by the decrease of net revenues, the sales expenses
over net revenues ratio reached 19.0% as compared to the 17.5%
in 2Q05.

General and administrative expenses over net revenues were
stable in 1%.  Earnings before Interest and Taxes showed a loss
in margins of 7.6%, which reached 0.2%

Earnings before Interest, Tax, Depreciation and Amortization
registered BRL68.1 million and its margin was 4.4%, inferior to
the 10.7% shown in 2Q05.

                      Financial Results

Net financial results were negative in BRL 56.5 million in 2Q06,
as compared to a net revenue of BRL104 million in 1Q06, due to a
higher level of indebtedness and lower cash generation.  At the
end of 2Q06, Sadia's net debt amounted to BRL1,021.2 million,
37% greater than the one at the end of 1Q06.  Net debt to equity
increased and ended the quarter at 45.2% as compared to 33.3% of
the end of 1Q06.

                       Equity Pick Up

The positive result on equity pick up of BRL 46.6 million in
2Q06 resulted from the exchange rate variation on the equity
amount of Sadia's subsidiaries abroad.

                         Net Income

Net income reached BRL17.6 million in 2Q06, an 87.8% decrease as
compared to the results achieved in the same period of last
year. In the semester, net income amounted to BRL84.5 million.
This performance is below the Management expectations.

                        Investments

The BRL273 million investments disbursed in 2Q06 are in
accordance with growth plans established.  In the semester, the
company disbursed BRL489 million.  Sadia kept its investment
program in new units and modernization of the existing ones,
with the belief that the sanitary crisis is momentary and will
not change the domestic and international demand in the future.
Of the total amount invested in the quarter

   -- BRL100.6 million (36.8%) were directed towards the
      processed products segment,

   -- BRL95.1 million (34.8%) towards the poultry segment,

   -- BRL 20.5 million (7.5%) towards pork,

   -- BRL1.9 million (0.8%) towards beef and

   -- the remaining BRL 55 million (20.1%) mainly towards
      logistics.

                        Perspectives

For the second semester we expect a recovery in the
international demand, mainly due to the return to normal levels
of poultry consumption.  Sadia also expects the lift of the ban
on of Brazilian pork imports by Russia and the recovery of
demand in Europe.  The opening of new markets, such as Egypt and
the lift the ban imposed by Iraq should also contribute.

                      Capital Markets

Sao Paulo Stock Exchange

Sadia's preferred shares price had a 26.4% increase in the last
12 months, as compared to a 46.2% positive variation of the
Ibovespa in the same period.  Sadia's preferred shares are part
of the theoretical portfolio of the Sao Paulo Stock Exchange
Index.  The Ibovespa lists 56 shares and for a four month period
(may-august) of 2006, the relative weight of Sadia has increased
to 1.237%.

Sadia's preferred shares kept its distribution amongst the
several investor categories of Bovespa.  The main highlight
worth mentioning is the rise in foreign investor participation,
which helped to increase the stock liquidity.

New York Stock Exchange

In the last 12 months, Sadia's level II ADRs, presented a 35.3%
increase.  The daily average financial volume of Sadia's ADRs in
NYSE, during the 2Q06, was US$2.0386 million, against US$474,100
in the 2Q05.  The volume of shares traded in the period
represented 20.6% of the total volume negotiated of Sadia's
preferred shares.

Latibex

Sadia preferred shares are listed since November 15, 2004, in
Latibex, a market that trades shares from Latin American
companies in Madrid Stock Exchange.  During 2Q06, the daily
average traded volume was EUR239,600, a 754% increase as
compared to the volume registered in the 2Q05 that was
EUR28,500.  In the last 12 months, share prices had a 29%
increase.

                         Highlights

Animal Production Award -- GV Consult

Sadia was elected as the best in the category of animal
production that analyzed 25 subsectors according to criteria of
economic representativeness, sustainability and social
responsibility.

Customer Service Benchmark

Sadia was first placed among the perishable food companies in
the research conducted by the Logistics Study Center of the
COPPEAD Administration Institute, from the Federal University of
Rio de Janeiro.

The Great Ideas of Marketing 2006

For its marketing strategy and effectiveness with consumers,
Sadia was the winner in the Consumption Products -- Food
Category.

Top of Mind Rio Grande do Sul state

Sadia was elected as one of the five most important brands in
the Rio Grande do Sul state, in the annual award that analyzes
100 product categories.

10 Largest Exporters in the Federal District

Sadia was the leader among the ten largest exporting companies
in the Federal District.


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

                        *    *    *

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

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




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


KKE INVESTMENT: Will Hold Final Shareholders Meeting on Aug. 24
---------------------------------------------------------------
KKE Investment Limited's shareholders will convene for a final
meeting on Aug. 24, 2006, at:

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

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

The liquidator can be reached at:

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


OKS HOLDING: Final Shareholders Meeting Is Scheduled for Aug. 24
----------------------------------------------------------------
OKS Holding Corp.'s shareholders will convene for a final
meeting on Aug. 24, 2006, at:

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

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

The liquidator can be reached at:

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


QUANTUM INT: Shareholders Gather for a Final Meeting on Aug. 24
---------------------------------------------------------------
Quantum International Limited's shareholders will convene for a
final meeting on Aug. 24, 2006, at:

         Cititrust (Cayman) Limited
         CIBC Financial Centre, George Town
         Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

         Buchanan Limited
         Attn: Francine Jennings
         P.O. Box 1170, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-0355
         Fax: (345) 949-0360


RAMMS LIMITED: Final Shareholders Meeting Scheduled on Aug. 24
--------------------------------------------------------------
Ramms Limited's shareholders will convene for a final meeting on
Aug. 24, 2006, at:

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

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

The liquidator can be reached at:

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


SAKAE HOLDINGS: Liquidator Presents Wind-Up Account on Aug. 24
--------------------------------------------------------------
Sakae Holdings Co., Ltd.'s shareholders will convene for a final
meeting on Aug. 24, 2006, at:

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

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

The liquidator can be reached at:

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


SCOTTISH RE: Names Clifford Wagner as CEO in North America Units
----------------------------------------------------------------
Scottish Re Group Limited appointed Clifford R. Wagner as Chief
Executive Officer of the Company's North American business.  Mr.
Wagner has been with Scottish Re since 2000 and has served as
the company's Executive Vice President and Chief Actuary.

"We are pleased to have an individual with Cliff's thorough
knowledge of the Company and broad experience in the life
reinsurance industry assume leadership for our North American
operation," said Paul Goldean, President and Chief Executive
Officer of Scottish Re Group Limited.

Mr. Wagner has more than 20 years insurance experience and prior
to Scottish Re, worked for TransAmerica Reinsurance Company,
Time Insurance and the Hartford Insurance Group. Mr. Wagner
holds a B.S. degree in actuarial mathematics from the University
of Wisconsin, Madison.  He is a Fellow of the Society of
Actuaries, a Member of the American Academy of Actuaries and
also has earned Chartered Life Underwriter, Chartered Financial
Consultant and Fellow Life Management Institute designations.

Mr. Wagner succeeds Seth Vance who served as Chief Executive
Officer - North America since his appointment in April 2004.
Mr. Vance recently resigned in lieu of reassignment within the
company.

Mr. Goldean remarked, "Together with other important
achievements, Seth was instrumental in leading the ING
integration and combining the best of both organizations to set
new standards of excellence in our industry. We wish him success
in his future endeavors."

                      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: Paul Golden Named Member of Board of Directors
-----------------------------------------------------------
Scottish Re Group Limited disclosed that Paul Goldean, Chief
Executive Officer, has been named a member of the Board.  The
appointment is effective immediately.

                     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.


SHACKLETON RE: S&P Rates US$125MM Variable-Rate Term Loan at BB
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'BB' senior secured debt rating to Shackleton Re Ltd.'s proposed
US$125 million principal-at-risk variable-rate and US$60 million
Tranche B term loan.

Standard & Poor's also said that it assigned its 'BB+' senior
secured debt rating to Shackleton's proposed US$50 million
Tranche C term loan.

Shackleton is a special-purpose Cayman Islands exempted company
licensed as a restricted Class B insurer in the Cayman Islands.
"The ratings are based on the modeled probability of
attachment," said Standard & Poor's credit analyst Gary
Martucci.  "Risk Management Solutions Inc.'s RiskLink Interim
Model was used to determine the probability of attachment of
each tranche."

The reinsurance agreement, which is effectively supported by the
proceeds from the issuance of the notes and the loans, will
provide Endurance Specialty Insurance Ltd. (A-/Positive/--) with
a source of index-based catastrophe coverage for hurricane and
earthquake events in the covered area.  For a hurricane event,
the covered area is the East and gulf coast, along with the
adjacent inland states.  For an earthquake event, the covered
area is California.  Endurance and Shackleton will enter into a
reinsurance agreement that will establish the index-based
coverage.

Shackleton will invest the proceeds in high-quality permitted
investments within collateral accounts.  There will be a
separate collateral account for the notes and each loan tranche.
Shackleton has entered into an agreement that swaps the total
return of each collateral account with Goldman Sachs
International, which has been guaranteed Goldman Sachs Group
Inc. (A+/Positive/A-1), in exchange for quarterly LIBOR-based
payments minus a spread.  The premium received by Shackleton
pursuant to the reinsurance agreement--combined with the
payments received under the swap--will be used to make the
scheduled interest payments to the lenders.  If there is a
covered event, assets will be sold from the related collateral
account with the proceeds being distributed to Endurance.
Principal on the notes and the loans will be paid at maturity
unless a covered event occurs.

Endurance will pay Shackleton an additional premium under the
reinsurance agreement that is intended to give Shackleton
proceeds to cover its up-front and ongoing expenses in
connection with this loan facility.


VALLE LTD: Shareholders Convene for a Final Meeting on Aug. 24
--------------------------------------------------------------
Valle Ltd.'s shareholders will convene for a final meeting on
Aug. 24, 2006, at:

         Cititrust (Cayman) Limited
         CIBC Financial Centre, George Town
         Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

         Buchanan Limited
         Attn: Francine Jennings
         P.O. Box 1170, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-0355
         Fax: (345) 949-0360


VAMS CORP: Liquidator Presents Wind Up Accounts on Aug. 24
----------------------------------------------------------
Vams Corp. Ltd.'s shareholders will convene for a final meeting
on Aug. 24, 2006, at:

         Smith Barney Private Trust Company (Cayman) Limited
         CIBC Financial Centre, George Town
         Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

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


VELMAR ENTERPRISES: Final Shareholders Meeting Is on Aug. 24
------------------------------------------------------------
Velmar Enterprises Ltd.'s shareholders will convene for a final
meeting on Aug. 24, 2006, at:

         Smith Barney Private Trust Company (Cayman) Limited
         CIBC Financial Centre, George Town
         Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

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


WHIN HOLDING: Final Shareholders Meeting Is Set for Aug. 24
-----------------------------------------------------------
Whin Holding Inc.'s shareholders will convene for a final
meeting on Aug. 24, 2006, at:

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

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

The liquidator can be reached at:

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


WISTERIA FUNDING: Last Shareholders Meeting Is Set for Aug. 24
--------------------------------------------------------------
Wisteria Funding Co. Ltd.'s shareholders will convene for a
final meeting on Aug. 24, 2006, at:

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

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

The liquidator can be reached at:

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




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


BANCO DEL CAFE: Auction Price Could Double, Ratings Agency Says
---------------------------------------------------------------
Helena de la Torre -- the assistant director of Duff and
Phelphs, a local ratings agency -- told Business News Americas
that the auction price of Banco del Cafe aka Bancafe could
double to as much as 3.2 times of its book value.

Strong interest from foreign banks could raise Bancafe's price,
BNamericas reports, citing Ms. de la Torre.

As reported in the Troubled Company Reporter-Latin America on
June 27, 2006, the Colombian government posted on its Web site
that Fogafin, the deposit insurance fund in Colombia, would
auction 99.9% of Bancafe's stake on Oct. 2.  The government had
disclosed in May the auction of Bancafe's stake in a public
offering.  Bancafe's privatization had two phases:

    -- Fogafin first launched on July 15 the sale process for
       the bank's workers, cooperatives, and pension funds for a
       minimum price of COP1.090 trillion, as stated in the law;
       and

    -- The bank would then be offered to private firms and
       investors for a minimum price of COP1.1 trillion.

The government was hoping to get a higher price than COP1.1
trillion, Andres Florez, the head of Fogafin, told BNamericas
when the bank was initially put up for sales.

According to BNamericas, Ms. de la Torre said that Bancafe's
main strength rather than its 6.1% market share is its large
branch network, which would give the winning bidder immediate
access all over Colombia.

Bancafe, the seventh largest bank in Colombia, has 236 branches
and 431 Automated Teller Machines.  It also has offices in the
United States and Panama.

BNamericas underscores that the minimum price for Bancafe seems
to be at the lower end compared to other transactions in the
Colombian financial market.

The last bank privatizations showed that buyers are willing to
pay above the minimum price set for liquidated banks, Ms. de la
Torre told BNamericas.

As reported in the Troubled Company Reporter-Latin America on
July 26, 2006, sources familiar with the deal said Bancafe was
expecting up to five bids from other banks.  Citigroup is
conducting the sale process and has invited interested banks to
present their bids.  The banks will not be bidding for the
offshore operation.  Banco Agromercantil is among those
interested in participating.  The sources said that other
interested entities are Canada's Scotiabank and UK banking group
HSBC.  The banks have finished due diligence at Bancafe and are
preparing to submit bids for the company in the next coming
weeks.

However, an HSBC spokesperson had said it would not present a
bid for Bancafe, BNamericas says.

According to BNamericas, Davivienda and Colpatria have disclosed
their interest in bidding for Bancafe.  Meanwhile, the local
unit of Spanish giant Grupo Santander paid the data room fee to
look at Bancafe's books.

The report underscores that one of Davivienda's strengths is its
joint venture with the International Finance Corporation aka
IFC, the private sector arm of the World Bank, which holds a
4.14% stake in the bank.

An IFC source told BNamericas, "IFC is committed to Davivienda's
long-term development and is willing to support the bank's
expansion plans."

Luis Juango Fitero, the chief executive officer of BBVA
Colombia, told BNamericas that although the company might bid
for Bancafe as its merger with Granahorrar would conclude in
October.

BNamericas emphasizes that General Electric is also interested
in joining the bidding for Bancafe.

A General Electric spokesperson told BNamericas, "GE is very
interested -- especially through its consumer finance business
-- in growing and investing in Latin America's finance sector,
so we are permanently studying and evaluating any opportunity
that arises."

BNamericas reports that Bancafe's strengths include a strong
corporate loan portfolio and a tax exemption regime.

Bancafe, according to BNamericas, pays an income tax rate lower
than the 38% Colombian banks pay by law and does not pay a tax
imposed on financial transactions, due to a tax stability
accord.

However, it is unlikely that Bancafe can hold on to that
exemption after being privatized, BNamericas states, citing
analysts.

Bancafe was formed by the merging of Bancafe assets and part of
Granahorrar, a local mortgage bank, in March 2005.  To save them
from bankruptcy when the country was hit by a financial crisis
in the late 90s, the government had taken control of the banks.


BANCOLOMBIA: Launches Mobile Banking Service with Comcel & Ola
--------------------------------------------------------------
Bancolombia has launched a mobile banking service with mobile
operators Comcel and Ola, according to a report by local paper
La Republica.

Business News Americas relates that the service is called Banca
Movil.  It enables customers to make:

     -- payments,
     -- bank transfers, and
     -- requests for information, among others.

Bancolombia executives told BNamericas that Banca Movil won't be
charged.  The company, however, will consider charging in the
future.

Almost 80% of all transactions are done through alternative
channels like the Internet, telephone and Automated Teller
Machines, BNamericas says, citing Bancolombia.

Jorge Londono Saldarriaga, the head of Bancolombia, told La
Republica, "We expect to reach places where we currently do not
have offices or ATMs.  We expect to take advantage of mobile
telephony penetration in the country."

Movistar Colombia, which is owned by Spain's Telefonica, is
expected to join the service in the short term, BNamericas
states.

                        *    *    *

The Troubled Company Reporter-Latin America reported on
April 28, 2006, that Moody's Investors Service upgraded
Bancolombia's bank financial strength ratings to D+ from D with
a stable outlook.

Moody's added that the action concludes the review for possible
upgrade that was announced on October 13, 2005.  Moreover,
Bancolombia's Ba3/Not Prime long- and short-term foreign
currency deposit ratings were affirmed.  Moody's said the
outlook on all ratings is stable.

                        *    *    *

On Dec. 22, 2005, Fitch affirmed the ratings assigned on
Bancolombia, as:

  -- Long-term/short-term foreign currency at 'BB/B';
  -- Long-term/short-term local currency at 'BBB-/F3';
  -- Individual at 'C';
  -- Support at '3'.


ECOPETROL: Union Went on Strike Over Sale of Firm's 20% Stake
-------------------------------------------------------------
Televised news broadcasts say that workers who were against the
sale of 20% of Ecopetrol SA, the state-owned oil company in
Colombia, held demonstrations late last week.

As reported in the Troubled Company Reporter-Latin America on
July 31, 2006, the mines and energy ministry said that the
government approved the planned sale of a 20% stake of
Ecopetrol.  According to the ministry, private sector
participation would help ensure Ecopetrol's financial and
administrative independence needed to carry out investments on
exploration and production as well as to upgrade oil
infrastructure.  President Alvaro Uribe said that Colombia would
boast a larger and stronger company and that new oil discoveries
require funds to be injected into Ecopetrol.  He said that a
regulation must be drafted outlining how the process would take
place.  However, oil workers union rejected the plan,
threatening to hold demonstrations.  Jorge Gamboa, the president
of the union, said that autonomy could be achieved by reforming
the budget statute and Ecopetrol would be allowed to take on
debt and more resources.

According to CNN en Espanol, the protest, which was participated
by about 3,000 workers, will affect Ecopetrol's two refineries.

Business News Americas relates that it was the second protest
held since the government disclosed in July the planned sale.
Two weeks ago, some workers blocked the main access to
Ecopetrol's headquarters in Bogota.

CNN underscores that under a contingency plan, Ecopetrol's
management would do the work abandoned by employees involved in
the strike.

Meanwhile, other news outlets say that the military was guarding
oil facilities that are frequent targets of rebel attacks.

Ecopetrol's public affairs office did not give BNamericas any
comment.

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

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




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


* COSTA RICA: IMF Says Economy Has Been Strong in Past 18 Months
----------------------------------------------------------------
"Over the past 18 months, Costa Rica's economic performance has
been strong.  Despite the oil price shock, growth has been
higher than expected, supported by sound economic policies,
strong external demand, and favorable conditions in
international capital markets.  Spending restraint and improved
revenue collections have contributed to the lowest public sector
deficit in a decade.  Inflation, however, has remained in the
double digits, although it has come down somewhat from the peak
in 2005," said Dominique Desruelle, Division Chief in the
Western Hemisphere Department, who led an International Monetary
Fund staff mission in Costa Rica.

The near-term outlook remains favorable.  For 2006, real gross
domestic product is expected to rise by 6 percent, while
inflation is likely to remain at 12%.  Although the external
current account deficit is projected to increase slightly, this
is expected to be financed by continued strong inflows of
foreign direct investment.  To be sure, the outlook is not
without risks as a cooling of the U.S. economy or a further
increase in oil prices could adversely impact economic activity.

Looking ahead, Costa Rica's main challenge is to increase
economic growth in a sustainable and balanced way.  Higher
economic growth, combined with a significant reduction in
inflation, would improve the living standards of all citizens
and reduce poverty.  The mission agreed with the authorities
that a multi-pronged approach was necessary to accomplish these
goals.

At the center of this strategy is the initiative to pass a
comprehensive fiscal reform, with a focus on the income tax and
the value-added tax.  The mission recommended a package of
sufficient size to ensure medium-term fiscal sustainability,
provide resources for the recapitalization of the central bank,
and allow for an increase in spending on infrastructure,
education, and other social needs.  The mission agreed with the
authorities' proposal to develop a multiyear budget framework,
which would allow the government to present to the public a
clear medium-term economic and fiscal strategy and, hence,
enhance budget transparency.  The mission concurred with the
authorities that an increase in the level of infrastructure
investments is needed, as long as efficient and transparent
mechanisms are used and these investments do not increase fiscal
risks.

The mission strongly supported the governments' commitment to
seeking ratification and implementation of the Central America-
Dominican Republic-United States Free Trade Agreement (CAFTA-
DR), and encouraged the authorities to further strengthen the
financial system including by improving regulation and
supervision of offshore banks.

To improve the effectiveness of monetary policy and prepare for
the eventual adoption of inflation targeting, the mission
supported the authorities' plans to recapitalize the central
bank and move toward a more flexible exchange rate system.
Supported by prudent fiscal policy, these steps should help
entrench the gradual decline of inflation to the low single
digits envisaged by the authorities.

Mr. Desruelle said that the IMF will maintain a close policy
dialogue with the authorities as they develop and implement
their reform agenda.  In the coming weeks, the mission will
prepare a report to the IMF's Executive Board, as a basis for a
Board discussion tentatively scheduled for end October.

                        *    *    *

Costa Rica is rated by Moody's:

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

Fitch assigned these ratings to Costa Rica:

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

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

      -- Foreign Currency LT Debt BB,
      -- Local Currency LT Debt   BB+,
      -- Foreign Currency ST Debt B, and
      -- Local Currency ST Debt   B.


* COSTA RICA: Implements Free Trade Accord with Barbados
--------------------------------------------------------
Costa Rica implemented a free trade agreement with Barbados last
week, Hardbeat News reports.

Hardbeat relates that the agreement removes trade barriers and
facilitates the exchange of goods and services between the two
nations.

According to Hardbeat, Barbados is the third Caribbean nation to
sign the accord.  About 12 of the 15 members of the Caribbean
Community or CARICOM have already entered the agreement with
Costa Rica.

The accord also provides for the application of anti-dumping
measures and for the enhancement of sanitary measures, Hardbeat
states.

                        *    *    *

Costa Rica is rated by Moody's:

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

Fitch assigned these ratings to Costa Rica:

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

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

      -- Foreign Currency LT Debt BB,
      -- Local Currency LT Debt   BB+,
      -- Foreign Currency ST Debt B, and
      -- Local Currency ST Debt   B.




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


PHELPS DODGE: Failed Merger Cues S&P to Hold Ratings on NegWatch
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'BBB' corporate
credit and its other ratings for Phelps Dodge Corp. remain on
CreditWatch with negative implications following Phelps
unsuccessful attempt for a three-way merger with Inco Ltd. (BBB-
/Watch Pos/--) and Falconbridge Ltd. (BBB-/Watch Pos/A-3).

"Since Phelps remains in a bidding war with Teck Cominco Ltd.
(BBB/Watch Neg/--) for Inco, the ratings will remain on
CreditWatch to reflect the potential for any increase in Phelps'
cash offer," said Standard & Poor's credit analyst Thomas
Watters.

As the current offers stand, Teck Cominco's recently revised
hostile offer for Inco, consisting of CDN$40 per share in cash
(CDN$9.2 billion) per Inco share, could be viewed more favorably
by Inco's shareholders than Phelps' last offer, which consists
of a CDN$20.25 per share cash component (CDN$4.7 billion).  As
part of Phelps' offer for Inco, Phelps will undertake a US$5
billion share-repurchase program to be completed within a year
of closing.

"Depending on the final structure of a combined Phelps/Inco
merger, we could notch the Phelps senior unsecured bond rating
below the ultimate corporate credit rating, reflecting
structural subordination of these bonds at the parent company
relative to obligations at the Inco subsidiaries," Mr. Watters
said.  "If Phelps were to succeed in its attempts to acquire
Inco given its current offer, we would likely affirm the Phelps
'BBB' rating, and we could raise Inco's corporate credit rating
to 'BBB', most likely with a stable outlook."

At the current Phelps' bid, pro forma total gross debt
(unadjusted for operating leases and debt like liabilities) for
the Phelps/Inco merger would approximate US$9.6 billion.  After
accounting for US$1.5 billion of combined operating leases,
unfunded pensions, other post-employment benefits and asset-
retirement obligations, the combined entity's fully adjusted
debt would approximate US$11.1 billion.

Standard & Poor's will continue to monitor the proposed merger,
as further, more aggressive bids are quite possible.

Phelps Dodge has operations in Chile, Peru, Colombia, Venezuela
and Ecuador, among others.


TAG-IT PACIFIC: Obtains Acceptance of Compliance Plan from Amex
---------------------------------------------------------------
Tag-It Pacific, Inc., received notification from the American
Stock Exchange or Amex that the company's Plan to regain
compliance with the minimum equity listing requirements has been
accepted and the company has been granted an extension until
Nov. 16, 2007, to achieve the minimum listing levels.

On May 16, 2006, Tag-It Pacific had received notice that it was
not in compliance with certain of the continued listing
standards as set forth in the Amex Company Guide.  Specifically,
the Amex letter cited the failure to comply with Section
1003(a)(i) and Section 1003(a)(ii) of the Company Guide, which
effectively required that the company maintain shareholders'
equity of at least US$4,000,000.

Following the notice from Amex, Tag-It Pacific was afforded the
opportunity to submit a "plan of compliance" to Amex outlining
in detail how the company expected to achieve the minimum equity
requirements and to regain compliance.  On Aug. 3, 2006, Amex
notified the company that it had accepted its plan and granted
the Company an extension until Nov. 16, 2007, to regain
compliance with the continued listing standards.  During this
period the Company will be subject to periodic review by the
Amex Staff and failure to make progress consistent with the plan
or to regain compliance with continued listing standards by the
end of the extension period could result in being delisted from
the American Stock Exchange.

"We are very pleased with the AMEX approval of this Plan,"
stated Stephen Forte, Chief Executive Officer of Tag-It Pacific.
"This acceptance and extension of time to comply affords the
Company the opportunity to continue its turnaround efforts and
to remain focused on the business operations and growth.  The
Plan is reflective of the confidence of management that the
business turnaround is underway and will prove successful."

Additionally, Tag-It Pacific announced that it has also met the
governance requirements of the Amex Company Guidelines requiring
that the board consist of a majority of independent directors
and that the audit committee be comprised of at least three
independent directors. The company's compliance with these
provisions occurred with the recent appointment of William
Sweedler to the company's Board of Directors and its Audit
Committee, and the resignation of Kevin Bermeister from the
Board.  Mr. Sweedler's appointment was previously announced and
he brings over 19 years of experience in the branded apparel,
home, and licensing industry to the company's Board.

                    About Tag-It Pacific

Tag-It Pacific, Inc., distributes apparel items to fashion
manufacturers United States, Asia, Mexico, the Dominican
Republic, and Central and South America.  Also it offers formed
wire metal zippers for the jeans and sportswear industries.

                     Going Concern Doubt

Singer Lewak Greenbaum & Goldstein, LLP, in Los Angeles,
California, raised substantial doubt about Tag-It Pacific,
Inc.'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 incurred
net loss of US$29,537,709 and accumulated deficit of
US$50,434,042 at December 31, 2005.


* DOMINICAN REPUBLIC: Beverage Sales Down 40%, Distributors Say
---------------------------------------------------------------
The alcoholic beverage restriction has led to a 40% drop in
sales since July 25, the DR1 Newsletter reports, citing owners
of entertainment centers like bars, nightclubs and restaurants.

DR1 relates that the businessmen aired out in a public letter to
President Leonel Fernandez their concern over the negative
impact the measure is having on their profits.

According to DR1, the sale of alcoholic beverages has been
limited to until midnight on Sundays through Thursdays, and
until 2:00 a.m. on Fridays and Saturdays.

The entrepreneurs said in the letter that bars, discotheques and
restaurants owners could be forced to fire about 100,000 workers
in the short term, and could reduce government tax income, DR1
says.

A group from the National Association of Hotels and Restaurants
is holding talks on the measures with Franklin Almeyda, the
interior and police minister, as there have been problems with
the methods the police use in enforcing the measure, especially
in the eastern part of 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.


* DOMINICAN REPUBLIC: Seizes 2,871 Boxes of Counterfeit Cigars
--------------------------------------------------------------
The Dominican Republic's National Tobacco Institute, Attorney
General's Department, and state security institutions have
confiscated about 2,871 boxes of counterfeit cigars, the DR1
Newsletter reports.

DR1 relates that there were about 40,000 cigars on sale in
different tourist centers in the Dominican Republic as well as
in other stores.

The report underscores that the cigars were seized in:

    -- shopping centers,
    -- stores,
    -- beaches, and
    -- tourist plazas in:

       * Santo Domingo,
       * Bayahibe,
       * Higuey, and
       * Bavaro.

According to DR1, brands that were counterfeited include:

     -- Romeo y Julieta,
     -- Cohiba,
     -- Montecristo,
     -- Davidoff,
     -- Partagas,
     -- Gloria Cubana,
     -- Macanudo,
     -- Punch,
     -- Troya,
     -- Thomson, and others.

                        *    *    *

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
=============


BANCO DEL PICHINCHA: Posts US$25.0MM Earnings in First Half 2006
----------------------------------------------------------------
Figures from Superban, the banking regulator in Ecuador, show
that Banco del Pichincha's earnings in the first half of 2006
increased 26.2% to US$25.0 million, compared with the US$19.8
million recorded in the same period in 2005, Business News
Americas reports.

Pichincha posted these results in the first half of 2006:

    -- Return on Equity was at 21.5% in the first half of 2006,
       compared to an industry average of 31.4%;

    -- Return on Assets was 1.99%, compared to a 2.8% industry
       average;

    -- net interest income increased 29% to US$72.9 million;

    -- net financial margin grew 84% to US$97.7 million;

    -- operating expenses rose 21% to US$89.3 million;

    -- loan portfolio grew 31% to US$1.46 billion at the end of
       June 2006, compared to June 2005;

    -- commercial loans, which accounted for 53% of the loan
       book, increased 10% to US$780 million;

    -- consumer loans rose 81% to US$386 million;

    -- mortgage credits grew 49% to US$254 million;

    -- loans to microenterprises increased to US$102 million;

    -- past-due loan ratio rose to 3.8% at the end of June 2006,
       from June 2005's 4.9%;

    -- assets increased 31% to US$2.65 billion in the first half
       of 2006, compared with the same period in 2005;

    -- liabilities grew 32% to US$2.38 billion;

    -- deposits rose 28% to US$2.09 billion;

    -- bank equity was US$236 million at the end of June, about
       21% higher compared with the amount recorded in the same
       month of last year; and

    -- 24% asset market share boosted Pichincha to first place
       in the local financial system.

Jorge Chiriboga, the finance control vice president of
Pichincha, told BNamericas, "Our results and growth in products
and services are in line with our expectations.  We were seeking
to grow in consumer, mortgage and microenterprise loans, which
is what actually happened."

Pichincha expects to increase loans to US$1.7 billion in 2006,
about 30% higher compared with the one recorded in 2005, and so
far, Pichincha is on track to attain that goal, BNamericas
states, citing Mr. Chiriboga.

Banco del Pichincha was founded in 1906 and has 222 branches in
about 80 towns and cities and 416 ATMs.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 16, 2005,
Fitch Ratings affirmed the long-term foreign currency and
support ratings assigned to Banco del Pichincha and Subsidiaries
at 'B-' and '5', respectively.  At the same time, Fitch assigned
a short-term rating of 'B' to the bank.


PETROECUADOR: Awards Six Crude Supply Lots to Foreign Firms
-----------------------------------------------------------
A source from Petroecuador, the state-owned oil company of
Petroecuador, told Business News Americas that the firm has
awarded six crude supply lots to Taurus Petroleum -- a US oil
refiner -- and Japanese companies Mitsubishi International and
Mitsubishi Corp.

Mitsubishi International, Mitsubishi Corp. and Taurus Petroleum
each won two of the supply lots, which will start on Aug. 12,
BNamericas states, citing the source.

Dow Jones states that the Attorney General's office and the
Controller of the State supervised the auction.

Ivan Rodriguez, the energy minister of Ecuador, told Dow Jones
Newswires that Petroecuador received late last week 24 bids in a
tender for 72,000 barrels per day of Napo crude, to be divided
into six lots of 12,000 b/d for eight months.

Out of the 24 bids, about 11 were identified as valid,
Petroecuador told Dow Jones.

Dow Jones underscores that the winning firms will pay a combined
US$27.8 million through March 2007 for the crude.

As reported in the Troubled Company Reporter-Latin America on
July 31, 2006, a source from Petroecuador said that the company
decided to return the 17 offers it received for the tender of
six 12,000 barrel-a-day crude supply lots, as the number of bids
fell short of the company's expectations.  As reported earlier,
about 50 firms were pre-qualified to participate in the bidding.
These include state companies from nations that signed strategic
alliances or bilateral cooperation accords in the hydrocarbons
sector with Ecuador.

According to Dow Jones, the oil being sold comes from:

     -- Block 15,
     -- Eden-Yuturi, and
     -- Limoncocha.

Petroecuador, says Dow Jones, tried to tender the crude on
July 21, and decided to halt the process as its Department of
International Trade had said that there was not enough time for
foreign state-run firms to participate.  These firms had
submitted bids:

     -- Glencore International AG,
     -- Mitsubishi Corp., and
     -- a unit of Royal Dutch Shell.

Dow Jones underscores that Petroecuador workers and some
legislators had accused government officials of favoring PMI
Trading -- a subsidiary of Mexican state-owned oil company
Petroleos Mexicanos aka Pemex -- as the firm has sold Ecuadorean
crude to third parties in the past.

The government told Dow Jones that it wants to cut out
intermediaries to get the best prices.

Dow Jones notes that analysts of the energy sector were
concerned that officials would postpone the tender and be forced
to sell the crude on the spot market if the energy ministry
failed to get satisfactory offers.

The crude from the fields was first offered to Venezuela in
exchange of refined products from the latter.  However,
Venezuela's President Hugo Chavez had altered terms of the
original proposals.  Petroecuador then decided to auction the
crude and invite qualified companies to bid.

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


PETROECUADOR: Oriente Crude Price Increases to US$65.47
-------------------------------------------------------
Petroecuador, the state-run oil company of Ecuador, told Dow
Jones Newswires that the average price of its Oriente crude oil
for export increased 27% to US$65.47 per barrel on Aug. 1.

The average price of the crude in August 2005 was at US$51.66
per barrel, Dow Jones relates, citing Petroecuador.  On
July 25, 2006, the average price was at US$65.38 per barrel.

As reported in the Troubled Company Reporter-Latin America on
July 25, 2006, Petroecuador said that the average price of its
Oriente crude oil for export decreased to US$65.71 per barrel on
July 18 from US$65.90 per barrel on July 11.  The crude price
was 43% higher than the US$46 per barrel in July last year.

Petroecuador exports 156,000 barrels of crude per day.  The
barrels of crude are mainly shipped to the United States.

Crude oil is Ecuador's main export, which netted US$5.397
billion last year.  The oil sector is accountable for about 15%
of the country's gross domestic product, and a third of
government revenue.

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


* ECUADOR: Trade Surplus for First Six Months Reaches US$865MM
--------------------------------------------------------------
Ecuador's Central Bank stated that the country's trade surplus
from January to June reached US$865 million, compared with the
US$158 million figure of last year, Dow Jones Newswires reports.

According to the Central Bank, exports upped 31.5% to US$6.177
billion for the first six months compared with last year's
US$4.695 billion in the same period.  Meanwhile, imports also
rose 17% to US$5.312 billion from US$4.537 in 2005, Dow Jones
relates.

The Central Bank's statistics bulletin adds that oil exports
amounted to US$3.850 billion equivalent to 60% of the total and
non-petroleum products accounted for the 38% to reach US$2.327
billion, Dow Jones says.

Exports that top the list include:

   -- crude oil at US$3.542 billion,
   -- bananas at US$650 million,
   -- shrimp at US$273 million,
   -- natural flowers at US$214 million, and
   -- cocoa at US$54 million.

Dow Jones relates that oil Products account for 20% or US$1.068
billion of the total imports.  The remaining 80% consists of
non-oil goods that include:

   -- raw materials at US$4.244 billion,
   -- capital goods at US$1.412 billion, and
   -- consumer goods at US$1.199 billion.

For the month of June, statistics show that:

   -- trade surplus reached US$89.6 million compared with last
      year's US$34.8 million,

   -- exports upped 11% to US$977.5 million, higher than last
      years' US$877.6 million, and

   -- imports grew 5% to US$887.9 million compared with the
      US$842.8 million in 2005.

                        *    *    *

Fitch assigned these ratings on Ecuador:

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




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


* GUATEMALA: Will Sue US for Unfairness in Free Trade Agreement
---------------------------------------------------------------
Costa Rica will sue the United States for unfair implementation
of the Free Trade Agreement, Inside Costa Rica reports.

"United States is dumping on us, selling us things and demanding
we purchase what they want, but it does not accept our goods,"
Inside Costa Rica quoted Oscar Berger Perdomo, the president of
Guatemala, as saying.

As reported in the Troubled Company Reporter-Latin America on
July 5, 2006, Susan Schwab, the US trade representative, said
that President Perdomo approved the implementation of the
Central American Free Trade Agreement-Dominican Republic or
CAFTA-DR agreement for Guatemala as of July 1, 2006.

President Perdomo told Inside Costa Rica that in the chicken
trade, in particular, US producers sell chicken's legs, wings
and parts at prices below their cost of production.

However, no Guatemalan firm has passed the US health inspections
aimed at protecting farmers, who also receive state subsidies to
produce and export, Inside Costa Rica says.

President Perdomo told Inside Costa Rica that his government
will condemn US at the World Trade Organization for illegal
practices.

The Guatemalan leader rejected increasing chicken import taxes,
as requested by Guatemalan businessmen, Inside Cost Rica states.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

Fitch also rated Guatemala's senior unsecured bonds:

Maturity Date          Amount        Rate       Ratings
-------------          ------        ----       -------
Aug. 3, 2007        US$150,000,000     8.5%         BB+
Nov. 8, 2011        US$325,000,000    10.25%        BB+
Aug. 1, 2013        US$300,000,000     9.25%        BB+
Oct. 6, 2034        US$330,000,000     8.125%       BB+




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


* HAITI: UN Head Wants to Extend Mission in Nation by One Year
--------------------------------------------------------------
"I will ask UN member states to prolong the MINUSTAH mission by
12 months... (because) we have accomplished a lot but there is
still much more to be done," Dominican Today reports, citing
Kofi Annan, the secretary-general of the United Nations, at a
joint press conference with Haiti's President Rene Preval.

MINUSTAH is a stabilization mission the UN is conducting in
Haiti, to aid the country in its recovery.

The UN organized 7,000 stabilization mission staff for Haiti's
elections.  An unnamed official in Haiti, however, said that
security problems remain, especially those on gun and drug
smuggling, Dominican Today relates.

The Haitian parliament had complained that MINUSTAH did little
to control armed gangs in the capital and other big cities,
making President Preval request for special troops and police,
press reports state.

                        *    *    *

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.


* HAITI: World Bank Grants US$6 Million to the Power Sector
-----------------------------------------------------------
The World Bank approved a US$6 million grant to help reduce
electricity losses and strengthen the financial and operational
performance of Electricite d'Haiti or EDH, the public
electricity utility.  This pilot project will lay the foundation
for improving electricity services and enhancing revenue
collection in urban centers.

"Haitian communities deserve a more reliable electricity supply
with better client service," said Caroline Anstey, World Bank
Country Director for the Caribbean.  "This pilot project will
contribute to improving the commercial system and customer
service and increasing revenue collection for EDH."

The pilot Electricity Loss Reduction Project will implement
three components over a three-year period:

   -- Improve the quality and reliability of services and
      increase revenue collection of EDH;

   -- Improve EDH management systems and practices towards a
      more customer oriented approach; and

   -- Enhance the participatory approach, project management,
      monitoring and impact evaluation, with a view to future
      scaling up.

"Electricity services reach only a small fraction of the Haitian
population, and are of poor quality and often unreliable," said
Clemencia Torres de Mastle, World Bank Senior Regulatory
Economist and Task Team Leader for the project.  "Less than 10
percent of the Haitian population has access to electricity and
those who have access received on average 10 hours of
electricity a day in the last two years, with very large
disparities among the areas covered."

The Bank's grant financing is an integral part of a multi-donor
coordinated strategy of support to the energy sector.

The Bank's activities in Haiti are outlined in a Transitional
Support Strategy or TSS prepared in 2004 and endorsed by its
Board in January 2005.  The TSS presents the Bank's two-year
program aimed at delivering hope to the population and restore
credibility in public institutions by helping the Interim
Government provide basic services, create jobs, and launch
reforms that promote longer-term economic governance and
institutional development.  The Bank is committed to a long-term
engagement in Haiti.

This project was made possible by an International Development
Association-funded grant of US$6.0 million and a contribution of
Electricite d'Haiti in the amount of US$1.47 million.

                        *    *    *

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: Hondutel to Provide 150,000 Telephone Connections
-------------------------------------------------------------
Hondutel, the state-run telecommunications operator in Honduras,
plans to provide 150,000 new telephone connections, Business
Latin America reports.

According to Business Latin, about 30,000 of those connections
will be wireless.

The report underscores that Hondutel is in search of a partner
to enter the mobile market.

As reported in the Troubled Company Reporter-Latin America on
Jan. 11, 2006, a number of analysts had said that Hondutel would
have to find a strategic partner in order to survive the
competition in the Internet and mobile telephony segments.
Hondutel now faces an uncertain future after its monopoly of the
international long distance market ended on Dec. 25, 2005, as
stipulated in the 1995 telecommunications law, opening up the
market to greater competition.  The company had cut
international calling rates by US$0.13 in early December to
US$0.71, in expectation of the pending competition and was
expected to make further rate cuts during 2006 as competitors
arrive with IP technologies.  International long distance
telephony had accounted for 60% of Hondutel's revenues or some
US$50 million a year.

                        *    *    *

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
=============


KAISER ALUMINUM: Court Approves US$78M Accord with CNA Insurers
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
Kaiser Aluminum Corporation and its debtor-affiliates'
settlement agreement with:

    -- Continental Casualty Company;

    -- Columbia Casualty Company;

    -- Transcontinental Insurance Company; and

    -- Continental Insurance Company and the formerly related
       Harbor Insurance Company.

              Terms of the Settlement Agreement

As reported in the Troubled Company Reporter on June 28, 2006,
the CNA Related Companies agree to make a US$77,750,000
settlement payment.  The CNA Related Companies will deliver
US$7,775,000 not later than June 1 each year from 2007 to 2016.

Payment will be made to U.S. Bank National Association, as
settlement account agent, unless a Trigger Date has occurred, in
which case, payment will be made to the Funding Vehicle Trust.

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

     * the order approving the Settlement Agreement becomes a
       Final Order; and

     * the occurrence of the Plan Effective Date.

Other terms of the Settlement Agreement are:

   (a) The CNA Related Companies, their parents, affiliates and
       employees will receive all the benefits of being
       designated as a Settling Insurance Company in the Plan,
       including the benefits of the Personal Injury Channeling
       Injunctions;

   (b) The KACC Parties will release all their claims under the
       Subject Policies and certain other rights under the Other
       CNA Parties Policies;

   (c) Effective on the Trigger Date, the KACC Parties will have
       no insurance coverage from any of the CNA Parties under
       the Subject Policies or the Other CNA Parties Policies
       with respect to any past, present or future tort claims;

   (d) If any claim is brought against any of the CNA Related
       Companies that is subject to a PI Channeling Injunction,
       the Funding Vehicle Trust will establish that the claim
       is enjoined as to the CNA Parties; and

   (e) The CNA Parties will not seek from any entity other than
       its reinsurers or retrocessionaires:

       * reimbursement of any payments that they are obligated
         to make under the Settlement Agreement; or

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

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

                    About Kaiser Aluminum

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


SUGAR COMPANY: Alan Rickards Wants Entire Firm's Board to Resign
----------------------------------------------------------------
Alan Rickards, the chairperson of the All Island Jamaica Cane
Farmers' Association, has demanded that the entire board of the
Sugar Company of Jamaica immediately hand in their resignation,
Radio Jamaica reports.

As reported in the Troubled Company Reporter-Latin America on
Aug. 7, 2006, Roger Clarke, the agriculture minister of Jamaica,
said that Dr. Richard Harrison -- the director-general in the
ministry of agriculture -- would take the place of Livingston
Morrison, who would be leaving his post as the head of the Sugar
Company at the end of September.  Dr. Harrison would lead the
Sugar Company for three months.  Minister Clarke also said that
Derrick Latibeaudiere -- the chairperson of the Sugar Company
-- would also be leaving the firm.

Radio Jamaica states that the rest of the board would remain
until Minister Clarke can form a new team.

However, Mr. Rickards was adamant, saying that the rest of
current Sugar Company board should resign, Radio Jamaica
relates.

If Sugar Company was a private firm, the board would have been
fired long ago, Mr. Rickards told Radio Jamaica.

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
===========


ALASKA AIR: Earns US$55.5 Million in Second Quarter of 2006
-----------------------------------------------------------
Alaska Air Group Inc. reported second quarter net income of
US$55.5 million, compared to US$17.4 million in the second
quarter of 2005.

"We are extremely pleased with this quarter's earnings, which
were the result of a combination of revenue gains and cost
improvements," Bill Ayer, the Company's chairman and chief
executive officer said.  "It's gratifying to see everyone's hard
work pay off, and I would like to thank and congratulate our
employees on an outstanding quarter."

Alaska Air Group had cash and short-term investments at
June 30, 2006, of approximately US$1.1 billion compared to
US$983 million at Dec. 31, 2005.  The Company's debt-to-capital
ratio, assuming aircraft operating leases are capitalized at
seven times annualized rent, was 69 percent as of June 30, 2006,
compared to 73 percent as of Dec. 31, 2005.

According to the Company, the decrease from Dec. 31, 2005 is
primarily due to the conversion to equity of its senior
convertible notes in April 2006, partially offset by the
US$23.6 million net loss for the six months, coupled with an
increase in the company's outstanding debt resulting from new
aircraft-secured debt arrangements in the first six months of
2006.

Based in Seattle, Washington, Alaska Air Group, Inc., is a
holding company with two principal subsidiaries, Alaska
Airlines, Inc. and Horizon Air Industries, Inc.  Alaska operates
an all-jet fleet with an average passenger trip length of 1,009
miles. Alaska principally serves destinations in the state of
Alaska and North/South service between cities in the Western
United States, Canada and Mexico.  Horizon operates jet and
turboprop aircraft with average passenger trip of 382 miles.
Horizon serves 40 cities in seven states and six cities in
Canada.

                        *    *    *

As reported in the Troubled Company Reporter on May 4, 2006,
Standard & Poor's Rating Services revised its outlook on Alaska
Air Group Inc. to stable from negative.  The ratings on Alaska
Air Group and its major operating subsidiary, Alaska Airlines
Inc., including the 'BB-' corporate credit rating on both
entities, were affirmed.


COTT CORP: Forms Two Business Units Under New Structure
-------------------------------------------------------
Cott Corp. reported changes to its senior management structure,
roles and responsibilities, as well as the addition of two new
executives to its senior management team.

Under its new structure, two business units, North America and
International, are created to focus on customer management,
channel development, sales, and marketing.

Leading the North American business unit as president will be
John Dennehy, currently Senior Vice President of Sales and
Marketing for North America.  Mr. Dennehy has more than 25 years
of experience in the North American beverage industry and was
one of of the Company's first U.S. employees when he joined the
Company in 1991 and played a key role in the Company's recent
North American realignment.

Wynn Willard was hired as president for the International
business unit.  Mr. Willard has extensive senior leadership
experience with major international consumer packaged goods
companies including Cadbury Schweppes, Nabisco and Hershey
Foods.  He has been president of Planters Company, chief
executive officer of Nabisco Ltd. and most recently, chief
executive officer of New World Pasta Company.

Clyde Preslar remains as chief financial officer.  Mr. Preslar
joined the Company in August of last year after spending nine
years as chief financial officer of Lance Inc., a U.S.
manufacturer of branded and retailer brand snack foods.

As a result of the changes, three senior executives will be
leaving the Company.  The executives are, Mark Benadiba,
executive vice president of North American Operations; Colin
Walker, senior vice president of Corporate Resources; and Andrew
Murfin, Managing Director of the U.K. and Europe.

"These three men are highly respected professionals and they
should be commended for their significant contributions to
Cott," Brent Willis, Cott's president and chief executive
officer, said.  "We want to thank them for their commitment and
dedication to the Company."

The Company further disclosed that the senior management changes
are effective Aug. 1, 2006.

Headquartered in Toronto, Ontario, Canada, Cott Corporation
(NYSE:COT; TSX:BCB) -- http://www.cott.com/-- is a non-
alcoholic beverage company and a retailer brand beverage
supplier.  The Company commercializes its business in over 60
countries worldwide, with its principal markets being the United
States, Canada, the United Kingdom and Mexico.  Cott markets or
supplies over 200 retailer and licensed brands, and Company-
owned brands including Cott, Royal Crown, Vintage, Vess and So
Clear.  Its products include carbonated soft drinks, sparkling
and flavoured mineral waters, energy drinks, juices, juice
drinks and smoothies, ready-to-drink teas, and other non-
carbonated beverages.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 3, 2006,
Moody's Investors Service downgraded Cott Beverages, Inc.'s
Senior Subordinated Regular Bond/Debenture rating to B1 from Ba3
and Cott Corp.'s Corporate Family Rating, to Ba3 from Ba2.  The
ratings outlook is stable, Moody's said.

As reported in the Troubled Company Reporter on Jan. 31, 2006,
Standard & Poor's Ratings Services lowered its ratings on Cott
Corp. by one notch, including its corporate credit rating, to
'BB-' from 'BB'.  S&P said the outlook is negative.


DIRECTV INC: Adds Azteca America to Corpus Cristi Lineup
--------------------------------------------------------
DIRECTV, Inc., added KYDF-64, Azteca America, to the Corpus
Christi local broadcast channel lineup.  DIRECTV is the only
multichannel service provider to deliver Azteca America
throughout the entire Corpus Christi designated market area.
With the launch of Corpus Christi, DIRECTV now offers Azteca
America in 20 markets, representing 66 percent of U.S. Hispanic
TV households.

DIRECTV customers in this DMA who subscribe to the local channel
package can now see a variety of Azteca America's Spanish-
language entertainment programming, including:

   -- world wide soccer highlight coverage,
   -- "Ventaneando" with Patti Chapoy,
   -- newscasts from Mexico,
   -- highly popular novelas and
   -- professional Mexican League Soccer matches.

TV Azteca, the second-largest producer of Spanish-language
programming in the world, provides KYDF-64 with the full array
of TV Azteca's hard-hitting, highly popular novelas in weekday
primetime, including two brand new novellas, "Amor sin
Condiciones" and "Amores Cruzados."  The brand new season of "La
Academia" began on July 6.

DIRECTV also offers customers in the Corpus Christi DMA access
to another Spanish-language station, KORO/Univision Channel 28.

                    About Azteca America

Azteca America -- http://www.aztecaamerica.com-- a wholly owned
subsidiary of TV Azteca S.A. de C.V., one of the two largest
producers of Spanish-language television content in the world.
Azteca America currently has presence in 51 Hispanic markets,
including: Los Angeles, New York, Miami, Houston, Chicago,
Dallas, San Antonio, San Francisco-Oakland-San Jose, Phoenix,
Brownsville-McAllen, Sacramento-Stockton-Modesto, Albuquerque,
San Diego, Fresno-Visalia, El Paso, Denver, Orlando,
Philadelphia, Tampa, Washington DC, Austin, Las Vegas,
Boston, Atlanta, Tucson, Corpus Christi, West Palm Beach-Ft.
Pierce, Seattle, Hartford, Bakersfield, Portland, Salt Lake
City, Monterey-Salinas, Laredo, Naples-Ft. Myers, Colorado
Springs, Odessa, Palm Springs, Santa Barbara, Lubbock, Amarillo,
Yakima, Wichita, Oklahoma City, Reno, Boise, Omaha, Victoria,
Chattanooga, Twin Falls and Charleston.

                       About TV Azteca

TV Azteca is one of the two largest producers of Spanish-
language television programming in the world, operating two
national television networks in Mexico -- Azteca 13 and Azteca 7
-- through more than 300 owned and operated stations across the
country.  TV Azteca affiliates include Azteca America Network, a
new broadcast television network focused on the rapidly growing
US Hispanic market, and Todito, an Internet portal for North
American Spanish speakers.

                        *    *    *

Moody's Investor Services rated TV Azteca's senior unsecured
debt at B1 since Apr. 17, 2003.


                       About DIRECTV

The DIRECTV Group, Inc., formerly Hughes Electronics
Corporation, headquartered in El Segundo, California, is a
world-leading provider of multi-channel television
entertainment, and broadband satellite networks and services.
The DIRECTV Group, Inc. with sales in 2004 of approximately
US$11.4 billion is 34% owned by Fox Entertainment Group, Inc.,
which is owned by News Corporation.  DIRECTV is currently
available in Latin American countries: Argentina, Brazil, Chile,
Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras,
Mexico, Nicaragua, Panama, Puerto Rico, Trinidad & Tobago,
Uruguay, Venezuela and several Caribbean island nations.

                        *    *    *

Standard & Poor's Rating Services placed a BB credit rating on
DIRECTV Group'S long-term foreign and local currency ratings
effective Aug. 9, 2004.  S&P said the outlook is stable.


DOMINO'S PIZZA: Equity Deficit Widens to US$609 Mil. at June 18
---------------------------------------------------------------
Domino's Pizza, Inc., disclosed results for the second quarter
ended June 18, 2006.

Revenues were down 5.5% for the second quarter compared to the
prior year period, due primarily to lower domestic distribution
revenues.  Distribution revenues decreased 9.7% because of lower
food prices, primarily cheese, and lower volumes due to a
decrease in domestic franchise same store sales.  The average
cheese block price per pound was US$1.17 in the second quarter
of 2006, down 22.5% from US$1.51 in the second quarter of 2005.
Revenues from international operations increased 6.3% on strong
retail sales growth.

Net income was up 6.0% for the second quarter compared to the
prior year period, driven primarily by strong performance in our
international business, lower cheese prices and a tax benefit of
approximately US$2.9 million recognized as a result of the sale
of our Company owned operations in France and the Netherlands.
Net income was negatively pressured by a 4.9% decrease in
domestic same store sales growth, increased interest expense and
lower distribution volumes related to lower domestic same store
sales.

The decrease in domestic same store sales was due primarily to
stronger promotion performance and related higher same store
sales comparisons in the prior year.  The 5.7% increase in
international same store sales marks the 50th consecutive
quarter of positive international same store sales growth.
Global retail sales increases were driven primarily by increases
in international same store sales and worldwide store counts.

David A. Brandon, Domino's Chairman and Chief Executive Officer,
said: "Our sales comparisons in the first half of 2006 were a
significant challenge.  We were lapping extraordinary prior-year
sales performance while operating in a much weaker consumer-
spending environment.  We are not happy with our sales
performance during the first half of this year and we are
working hard to address this situation.  However, it is valid to
note that this rather lackluster sales environment demonstrates
the resiliency of our business model.  Despite difficulties in
growing our top line during this timeframe, our bottom line
continued to grow, and we continued to generate strong cash
flows.  This steady and reliable cash flow enables us to
consistently deliver for our shareholders by utilizing a capital
structure that appropriately leverages the Company; paying an
industry-leading dividend; and making opportunistic share
repurchases."

Mr. Brandon continued, "The ultimate test of any business model
is how it performs in both good times and tough times. I am
proud of our bottom-line performance during the first half of
the year in the face of a difficult market environment and I
have a great deal of confidence our franchisees and team members
will work together to re-establish our sales momentum in the
second half of the year."

       Company Sells France and Netherlands Operations

On May 1, 2006, Domino's Pizza signed a stock purchase agreement
to sell its company-owned operations in France and the
Netherlands to our master franchise group in Australia and New
Zealand.  The sale closed subsequent to the second fiscal
quarter ended June 18, 2006.

During the second quarter, Domino's Pizza recognized a tax
benefit of approximately US$2.9 million relating to the sale of
these operations.  The Company will account for the remainder of
the transaction during the third fiscal quarter ending
Sept. 10, 2006, and does not expect the transaction to have a
material impact on its financial condition or results of
operations.

                         Liquidity

As of June 18, 2006, Domino's Pizza had:

   -- US$788.8 million in total debt,
   -- US$23.7 million of cash and cash equivalents, and
   -- borrowings of US$93.7 million available under its
      US$125.0 million revolving credit facility (net of letters
      of credit issued of US$31.3 million.)

Domino's Pizza repaid more than US$45 million of debt year-to-
date, including US$10 million in the second quarter.  The
Company also borrowed US$100 million in the first quarter,
which, along with cash from operations, was used to repurchase
and retire US$145 million of common stock from its largest
shareholder.

Domino's Pizza's average borrowing rate for the second quarter
of 2006 was 6.4%.  The Company is not required to make the next
scheduled senior credit facility principal payment of US$1.3
million until June 30, 2007.  The Company is not required to
make principal payments on its senior subordinated notes until
2011.

The Company incurred US$9.4 million in capital expenditures
during the first two quarters of 2006.  Domino's Pizza incurred
US$15.2 million in capital expenditures during the first two
quarters of 2005 attributable to increased spending related to
the renovation of the Company's headquarters.

                       About Domino's

Founded in 1960, Domino's Pizza Inc. -- http://www.dominos.com/
-- through its primarily franchised system, operates a network
of 8,190 franchised and Company-owned stores in the United
States and more than 50 countries.  The company has more than
500 stores in Mexico.  The Domino's Pizza(R) brand, named a
Megabrand by Advertising Age magazine, had global retail sales
of nearly US$5.0 billion in 2005, comprised of US$3.3 billion
domestically and US$1.7 billion internationally.  Domino's Pizza
was named "Chain of the Year" by Pizza Today magazine, the
leading publication of the pizza industry and is the "Official
Pizza of NASCAR(R)."  Domino's is listed on the NYSE under the
symbol "DPZ."

As of June 18, 2006, Domino's Pizza's equity deficit widened to
US$609,112,000 from a US$510,985,000 deficit at Jan. 1, 2006.


FLEXTRONICS INT: Reports US$4.1BB Net Sales for 1st Quarter 2006
----------------------------------------------------------------
For the first quarter ended June 30, 2006, Flextronics
International Ltd. reported net sales from continuing operations
of US$4.1 billion, which represents an increase of US$236
million, or 6%, over the first quarter ended June 30, 2005.

"There has been a reacceleration of significant growth in our
core EMS business, which includes design, vertically-integrated
manufacturing services, components and logistics," Mike
McNamara, Flextronics' chief executive officer said.  "Fiscal
2006 was a very strong year in terms of incremental business
wins from both new and existing customers.  As a result, we
exceeded revenue and earnings expectations in the June quarter
and have increased our revenue growth rate expectations for
fiscal 2007 to approximately 25%."

Excluding intangibles amortization, restructuring and other
charges which includes stock based compensation, net income for
the first quarter ended June 30, 2006 increased 4% to US$104
million, compared to US$100 million, in the year ago quarter.

After-tax amortization, restructuring and other charges which
includes stock based compensation amounted to US$19 million in
the current quarter compared to US$41 million in the year ago
quarter.  GAAP net income amounted to US$85 million, in the
first quarter ended June 30, 2006, compared to US$59 million, in
the year ago quarter.

Headquartered in Singapore, Flextronics International Ltd.
-- http://www.flextronics.com/-- provides electronics
manufacturing services through a network of facilities in over
30 countries worldwide.  Its global locations include operations
in Brazil and Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on Nov 16, 2004,
Moody's Investors Service assigned a Ba2 rating to Flextronics
International Ltd.'s new US$500 million 6.25% senior
subordinated notes, due 2014.  At the same time, the company was
assigned a liquidity rating of SGL-1, reflecting Flextronics'
significant on-hand liquidity, unfettered access to the sizeable
US$1.1 billion revolver and the expectation for generating
moderately positive free cash flow (pre-Nortel payments) over
the next twelve months.

As reported in the Troubled Company Reporter on Nov. 12, 2004,
Standard & Poor's Ratings Services assigned its 'BB-' rating to
Flextronics' private offering of US$500 million, senior
subordinated notes due 2014.  The notes were offered under Rule
144A, with registration rights.  Proceeds of the offering will
be used to repay outstanding debt under its revolving credit
facilities and for general corporate purposes.  The company's
'BB+/Stable/--' corporate credit rating was affirmed.


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/-- delivers 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 Corp., Nortel Networks Corp., 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 USUS$2
billion senior note issue; downgraded the USUS$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.


NORTEL NETWORKS: Second Quarter Revenues Up 5% to US$2.74 Bil.
--------------------------------------------------------------
Nortel Networks Corp. disclosed that it and its principal
operating subsidiary Nortel Networks Limited or NNL have
reported their unaudited financial results for the second
quarter of 2006 prepared in accordance with accounting
principles generally accepted in the United States.

                  Second Quarter 2006 Results

Revenues were US$2.74 billion for the second quarter of 2006
compared to US$2.62 billion for the second quarter of 2005 and
US$2.38 billion for the first quarter of 2006.  The Company
reported net earnings in the second quarter of 2006 of US$366
million, or US$0.08 per common share on a diluted basis,
compared to a net loss of US$33 million, or (US$0.01) per common
share on a diluted basis, in the second quarter of 2005 and a
net loss of US$167 million, or (US$0.04) per common share on a
diluted basis, in the first quarter of 2006.

Net earnings in the second quarter of 2006 included a
shareholder litigation recovery of US$510 million reflecting a
mark-to-market adjustment of the share portion of the global
class action settlement, special charges of US$45 million for
restructuring and a loss of US$10 million on the sale of assets.
Net loss in the second quarter of 2005 included special charges
of US$92 million related to restructuring activities and US$11
million of costs related to the sale of businesses and assets.
Net loss in the first quarter of 2006 included a benefit of
US$35 million in gains on the sale of businesses and assets and
a shareholder litigation expense of US$19 million reflecting a
mark-to-market adjustment.

"Our second quarter performance underscores both the challenges
and good progress we are making with Nortel's transformation.
On the plus side we saw strong order growth of 22% and increased
sales momentum but gross margin was up only modestly and not at
the 40% target we have set for ourselves," said Mike Zafirovski,
president and chief executive officer, Nortel.  "We remain
intensely focused on delivering improved financial performance
and there's solid traction on significant business
transformation initiatives including the go-to-market supporting
our Enterprise business, the development of our Services
business, our strategic alliance with Microsoft, and across the
board cost management programs.  Together, these efforts are
enabling us to deliver greater customer value and substantially
enhance Nortel's competitiveness."

          Breakdown of Second Quarter 2006 Revenues

Mobility and Converged Core Networks revenues were US$1.59
billion, an increase of 7 percent compared with the year-ago
quarter and an increase of 12 percent sequentially.  Enterprise
Solutions and Packet Networks revenues were US$1.07 billion, a
decrease of 1% compared with the year-ago quarter and an
increase of 23% sequentially. Deferred revenues decreased
sequentially by US$14 million and backlog increased by
approximately US$194 million.

                         Gross margin

Gross margin was 39 percent of revenue in the second quarter of
2006, primarily impacted by geographic and product mix, and
competitive pricing pressures.  This compares to gross margin of
43 percent for the second quarter of 2005 and 38 percent for the
first quarter of 2006. Compared to the second quarter of 2005,
gross margin was impacted primarily by pricing pressures and
unfavourable product mix, which was partially offset by higher
sales volumes.

               Selling, General and Administrative

SG&A expenses were US$596 million in the second quarter of 2006,
reflecting incremental costs related to our acquisition of PEC
and the LG-Nortel joint venture and unfavorable foreign exchange
impacts, offset by cost containment initiatives.  This compares
to SG&A expenses of US$588 million for the second quarter of
2005, and US$595 million for the first quarter of 2006.

                  Research and Development

R&D expenses were US$489 million in the second quarter of 2006,
reflecting increased investment in targeted product areas, the
consolidation of the LG-Nortel joint venture and unfavorable
foreign exchange impacts, offset by the favorable impact of the
savings associated with its 2004 restructuring program.  This
compares to US$488 million for the second quarter of 2005 and
US$478 million for the first quarter of 2006.

                       Special Charges

Special charges in the second quarter of 2006 of US$45 million
included US$43 million for the restructuring program announced
June 27, 2006.

                Other income (expense) - net

Other income (expense) - net was net income of US$51 million for
the second quarter of 2006, which primarily related to
investment income of US$29 million and foreign exchange gains of
US$16 million.

                           Cash

Cash balance at the end of the second quarter of 2006 was
US$1.90 billion, down from US$2.70 billion at the end of the
first quarter of 2006.  This decrease in cash was primarily
driven by an outflow of US$580 million (US$575 million plus
accrued interest of US$5 million) deposited into escrow on
June 1, 2006, under the global class action settlement (pending
satisfactory completion of all conditions) and US$150 million
for the repayment at maturity of the outstanding aggregate
principal amount of the 7.40% Notes due June 15, 2006, and a
cash outflow from operations of US$108 million, partially offset
by cash proceeds of US$70 million related to the Flextronics
transfer.

On July 5, 2006, Nortel announced the closing of the offering of
US$2 billion aggregate principal amount of senior notes and that
it has used US$1.3 billion of the proceeds to prepay the US$1.3
billion one-year credit facility that it entered into in
February 2006.

                   First Half 2006 Results

For the first half of 2006, revenues were US$5.13 billion
compared to US$5.01 billion for the same period in 2005. The
Company reported net earnings for the first half of 2006 of
US$199 million, or US$0.05 per common share on a diluted basis,
compared to a net loss of US$137 million, or (US$0.03) per
common share on a diluted basis, for the same period in 2005.

Net earnings in the first half of 2006 included a shareholder
litigation recovery of US$491 million reflecting a mark-to-
market adjustment of the share portion of the global class
action settlement, special charges of US$50 million related to
restructuring activities and a benefit of US$25million related
to the sale of businesses and assets.  The first half 2005
results included special charges of US$106 million related to
restructuring activities and US$33 million of costs related to
the sale of businesses and assets.

                          Outlook

Commenting on the Company's financial expectations, Peter
Currie, executive vice president and chief financial officer,
Nortel, said, "For the full year 2006, we continue to expect
strong revenue momentum for the rest of 2006, resulting in high
single digit growth for the full year 2006 compared to 2005,
gross margin to be around 40% as a percentage of revenue and
operating expenses to be flat to up slightly from 2005, with
foreign exchange and growth related expenses offsetting
productivity and efficiencies.  For the third quarter of 2006,
we expect revenue growth in excess of 10 percent compared to the
third quarter of 2005 and gross margin and operating expenses to
be in-line with our full year guidance."

                  Recent Business Highlights

New Strategic Relationships

Nortel and Microsoft announced a strategic alliance to
accelerate the transformation of business communications towards
a shared vision for unified communications.  The agreement
engages the companies at the technology, marketing and business
levels and includes joint product development, solutions and
systems integration, and go-to-market initiatives.

Liberty Global, the world's leading international cable
operator, has signed a 3-year global purchase agreement with
Nortel for cable VoIP and optical solutions and services.  With
this agreement, Nortel is now an approved vendor across Liberty
Global's cable subsidiaries that serve 15 million customers in
18 countries around the world.

Nortel Government Solutions has teamed up with NextiraOne
Federal to work together to propose joint solutions for the U.S.
Army Infrastructure Modernization program or IMOD.  NextiraOne
Federal, an authorized Nortel reseller, was awarded one of 10
Indefinite Delivery/Indefinite Quantity contracts to provide
converged voice and data solutions for bases worldwide under the
U.S. Army IMOD program.  In addition, Fortress Technologies and
Nortel Government Solutions have formed a strategic relationship
to provide government agencies worldwide with a joint solution
for secure wireless voice, video and data networking.

                       Revenue Momentum

Nortel's enterprise customer momentum has resulted in new
customers such as:

   -- Hong Kong Exchanges and Clearing Ltd., one of Asia's
      largest international stock exchanges,

   -- China's University of Petroleum to improve communications
      and ensure easy online access to advanced learning
      resources for 40,000 students,

   -- Israel's Migdal Insurance and Financial Holdings Ltd.,

   -- Macquarie University in Australia for a network security
      solution from Nortel, and

   -- Langham Hotel Hong Kong for IP phone systems.

The Bahamas Telecommunications Company Ltd., the primary telecom
operator in the Bahamas will deploy network enhancements to
extend the availability of next-generation, voice, data and
multimedia services with Nortel GSM/GPRS wireless technology.
The GSM/GPRS solution from Nortel will enable BTC to achieve
operational efficiencies through reduced network complexity and
operating expenses as well as the availability to introduce new
services quickly.

Nortel's Global Services will provide full lifecycle services
for the Rolls-Royce telephone network under a seven-year
management services agreement.  Rolls-Royce will transform its
entire telephone network into a single, advance network
providing VoIP services based on Nortel solutions including the
Nortel Communication Server 1000 and Nortel CallPilot for
unified voice, fax and e-mail accessible from any location, and
Nortel mobility services.  Nortel Global Services will also
provide network design, integration, management and maintenance
services to Suddenlink Communications, one of the 10 largest
cable operators in the United States.  Suddenlink will provide
VoIP-based telephony services based on Nortel PacketCable-
qualified Communications Server 2000-Compact as the exclusive
softswitch on their Suddenlink backbone.

Recent momentum in Nortel's Government Solutions business
includes selection by the U.S. Department of Homeland Security
for program management, acquisition and administrative services
to the U.S. Citizenship and immigration Service, and a contract
for systems engineering and software development for ground
systems with the U.S. National Oceanic and Atmospheric
Administration.

Russia's alternative telecommunications service provider Pride
has launched 'triple play' voice, video and multimedia services
with a newly deployed Metro Ethernet network from Nortel. The
solution is based on Nortel's Metro Ethernet portfolio and
enables Pride to make available services such as IPTV with video
on demand; VoIP; and high-speed Internet access.

                Leading Next-Generation Solutions

Nortel has been selected to supply Verizon Wireless with one of
the industry's most advanced CDMA 1xEV-DO Revision A technology
beginning in the third quarter of 2006.  This upgrade will
provide data speeds significantly faster than current
capabilities and meet customer demand for more high-bandwidth,
real-time wireless services such as VoIP, video telephony and
advanced multimedia applications.

KTF, one of South Korea's leading cellular providers, has
launched a next-generation ultra high speed 3.5G wireless
network in Seoul and cities across South Korea using wireless
broadband technology from LG-Nortel.  The network supports
advanced handset capabilities including high-definition video,
video chatting, messaging and remote monitoring.

                     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 USUS$2
billion senior note issue; downgraded the USUS$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 USUS$2 billion notes.  The outlook is stable.




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


PERKINELMER INC: Acquires Macri Tech. & NTD Labs for US$57MM
------------------------------------------------------------
PerkinElmer, Inc., completed its acquisition of J.N. Macri
Technologies, LLC, and NTD Laboratories, Inc.  The purchase
price for both transactions was approximately US$56.65 million.

"This acquisition represents the next step in our initiative to
build a comprehensive screening and diagnostics capability in
maternal health," Gregory L. Summe, chairman and chief executive
officer of PerkinElmer, Inc. said.  "It provides a leading
position in free Beta hCG measurement in the U.S. and will be an
integral part of expanding our maternal health portfolio
globally."

"This acquisition provides an opportunity to strengthen our
position with clinicians and our existing laboratory partners as
a result of NTD's strong and established relationships with
maternal health care providers," Robert F. Friel, president,
PerkinElmer Life and Analytical Sciences said.  "We expect this
agreement will accelerate PerkinElmer's own maternal health
research and development initiatives, by giving us the ability
to better understand first-hand the needs of the clinical
community.  Our future plans include the introduction of the
free Beta hCG biomarker, which is used throughout Europe, on
PerkinElmer's proprietary platforms, further extending our
maternal health solutions."

Dr. James Macri, president, NTD Laboratories said.  "We expect
the combination of NTD's expertise in providing first-trimester
prenatal screening services with PerkinElmer's market-leading
application expertise and strong distribution channels will
accelerate wider access to this important technology to
clinicians and patients."

                About J.N. Macri Technologies

J.N. Macri holds and licenses global patents related to free
beta Human Chorionic Gonadotropin, a peptide hormone produced in
the early stage of pregnancy that is widely recognized as a
critical biomarker for first-trimester prenatal risk assessment.

                   About NTD Laboratories

NTD Laboratories, Inc. offers laboratory developed and validated
testing under the brand name UltraScreen, of which free Beta hCG
is a vital component.  NTD Labs generated US$15 million of
revenue in its last fiscal year ending June 2006.

PerkinElmer Inc. (NYSE: PKI) -- http://www.perkinelmer.com/--  
is a global technology leader driving growth and innovation in
Health Sciences and Photonics markets to improve the quality of
life.  PerkinElmer reported revenues of US$1.5 billion in 2005,
has 8,000 employees serving customers in more than 125
countries, and is a component of the S&P 500 Index.  In Latin
America, PerkinElmer has offices in Argentina, Bolivia, Brazil,
Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El
Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama,
Paraguay, Peru, Puerto Rico, Uruguay and Venezuela.

                        *    *    *

PerkinElmer Inc.'s Long Term Subordinated Debt carry Moody's
Investors Service's Ba1 rating.


* PERU: Will Receive JPY1 Mil. Aid From Japan to Expand Port
------------------------------------------------------------
Peru will receive a JPY1,022 million grant aid from Japan for
the expansion of a port in Talara, Jiji Press reports.

The port is used as a base for squid fishing.

Jiji Press relates that Japan had promised a JPY298 million
financing for the project in April.

The aid will help strengthen relations between Japan and Peru,
the latter's government said in a statement.

                        *    *    *

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: Fee Panel Seeks Protective Order v. Boies Schiller
------------------------------------------------------------
The Fee Committee asks the U.S. Bankruptcy Court for the
Southern District of New York for a protective order precluding
Boies Schiller & Flexner, LLP, from propounding discovery
demands on it and its agents including, but not limited to,
requesting documents, taking depositions and issuing subpoenas,
and any further discovery.

The Fee Committee is not a party to the contested matter
relative to Boies Schiller's final fee application in the
chapter 11 cases of Adelphia Communications Corporation and its
debtor-affiliates, Ronald R. Sussman, Esq., at Kronish Lieb
Weiner & Hellman LLP, in New York, argues.  No actual dispute
currently exists between Boies Schiller and the Fee Committee
regarding the final fee application.

Mr. Sussman relates that the Fee Committee, with the assistance
of its professionals, has issued audit reports providing its
analysis and supporting documentation of all fee applications
filed by Boies Schiller, including the Final Fee Application.
As of July 14, 2006, the Fee Committee has not objected to the
Final Fee Application and is awaiting a response from Boies
Schiller as to various issues raised in the final audit report
dated June 22, 2006.

Consistent with its charge as an officer of the Court performing
a core judicial function by Court Order, the Fee Committee has
reviewed the Final Fee Application and, pending the outcome of
the investigation, will advise and make recommendations to the
Court relative to the Final Fee Application, Mr. Sussman informs
the Court.

Mr. Sussman asserts that the Fee Committee, its members and
agents are afforded the maximum immunity permitted by law in the
performance of their judicial functions.

Mr. Sussman explains that the Fee Committee performs
adjudicatory function by reviewing the fee applications of
retained professionals and evaluating the reasonableness of
those fees.  The Fee Committee's assessment, once approved by
the Court, determines the rights of the retained professional
with respect to that compensation.  Accordingly, as a court
officer carrying out an adjudicatory function, the Fee Committee
is entitled to absolute judicial immunity and, therefore, should
be immune from present and future discovery requests.

Mr. Sussman asserts that the Fee Committee also deserves to be
shielded from discovery with respect to its official actions
pursuant to the quasi-judicial immunity afforded certain court
officers.  As an officer of the Court, the Fee Committee is,
like an examiner, a disinterested, non-adversarial party, and a
fiduciary to the Court.

                  U.S. Trustee Deposition

In a Court-approved stipulation, the U.S. Trustee for the
Southern District of New York and Boies Schiller & Flexner, LLP,
extends the U.S. Trustee's deadline to file her objection to
Boies Schiller's notice of deposition of the U.S. Trustee to the
earlier of:

    (a) August 16, 2006, or

    (b) ten days after resolution of the Fee Committee's
        discovery immunity request.

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


CENTENNIAL COMM: Approves Payments of Bonuses to Exec. Officers
---------------------------------------------------------------
Centennial Communications Corp. approved on Aug. 1, 2006, the
payments of bonuses for the company's fiscal year ended
May 31, 2006, to its executive officers, including the executive
officers that are likely to be listed as "Named Executive
Officers" in the Company's proxy statement for its 2006 annual
meeting of stockholders.

Bonus compensation for executive officers, including the Named
Executive Officers, is determined by reference to a formula that
ties a target bonus objective to the achievement of certain pre-
defined financial benchmarks.  The financial benchmarks
established by the Compensation Committee were revenue and
adjusted operating income, but vary slightly with respect to
certain executive officers that perform services directly for
one of the Company's individual business units. Under this
formula, the company's executive officers' actual bonus amounts
could be greater or less than the target bonus based on the
company's actual financial performance.  In addition, an
executive officers' individual bonus award may be adjusted up or
down by up to 15% based on the achievement of certain personal
objectives.  The maximum bonus for any executive officer is 250%
of target.

The table sets the approved bonuses for fiscal 2006 for the
Named Executive Officers:

Name                   Position                     Bonus

Michael J. Small       Chief Executive Officer      US$424,141

Phillip H. Mayberry    Pres. -- U.S. Wireless
                                Operations          US$352,706

Thomas J. Fitzpatrick  Executive VP, CFO            US$212,071

Tony L. Wolk           Sr. Vice President,
                       General Counsel              US$97,553

Carlos Blanco          Pres. -- Puerto Rico
                                Operations          US$91,749

Centennial Communications will provide additional information
with regard to compensation of its Named Executive Officers in
the proxy statement for its 2006 annual meeting of stockholders.

             About Centennial Communications

Based in Wall, N.J., Centennial Communications, (NASDAQ: CYCL)
-- http://www.centennialwireless.com/-- is a leading provider
of regional wireless and integrated communications services
in the United States and the Caribbean with approximately
1.3 million wireless subscribers and 326,400 access lines and
equivalents.  The U.S. business owns and operates wireless
networks in the Midwest and Southeast covering parts of six
states.  Centennial's Caribbean business owns and operates
wireless networks in Puerto Rico, the Dominican Republic and the
U.S. Virgin Islands and provides facilities-based integrated
voice, data and Internet solutions.  Welsh, Carson, Anderson &
Stowe and an affiliate of the Blackstone Group are controlling
shareholders of Centennial.

At February 28, 2006, Centennial Communications' balance sheet
showed a US$1,072,190,000 stockholders' deficit, compared to a
US$518,432,000 deficit at May 31, 2005.

                        *    *    *

Fitch has assigned these ratings on June 28, 2006, for
Centennial Communications Corp. and its subsidiaries:

   Centennial Communications Corp.

      -- Issuer default rating: B-; and
      -- Senior unsecured notes: CCC/RR6.

   Centennial Cellular Operating Co.

      -- Issuer default rating: B-;
      -- Senior secured credit facility: BB-/RR1;
      -- Senior unsecured notes: B+/RR2; and
      -- Senior subordinated notes: CCC+/RR5.


DEVELOPERS DIVERSIFIED: Earns US$64.9 Million in Second Quarter
---------------------------------------------------------------
Developers Diversified Realty Corp. reported operating results
for the second quarter ended June 30, 2006.

   -- core portfolio leased percentage increased 40 basis points
      over the prior year to 96%;

   -- executed leases during the second quarter totaled
      approximately 1.75 million square feet, including 116 new
      leases and 178 renewals;

   -- base rents increased 21% on new leases, 10.8% on renewals
      and 12.9% on a blended basis;

   -- same store net operating income for the quarter increased
      3.3% over the prior year.

Scott Wolstein, Developers Diversified's Chairman and Chief
Executive Officer stated, "I'm pleased to report this quarter's
results, which reflect approximately US$33 million in merchant
building gains from sales to Macquarie DDR Trust, as well as
solid portfolio fundamentals.  Based on meetings with retailers
at the International Council of Shopping Centers convention in
May, we expect demand for space to remain robust for the 2007
and 2008 seasons.  From a balance sheet perspective, we were
upgraded to Baa2 by Moody's during the quarter, which supported
the pricing and operating improvements we made to our unsecured
credit facilities in June."

                      Financial Results

Funds From Operations, a widely accepted measure of a Real
Estate Investment Trust performance, available to common
shareholders was US$109.8 million, as compared to US$92.5
million for the three months ended June 30, 2006, and 2005,
respectively, an increase of 18.7%.  Net income available to
common shareholders was US$64.9 million for the three months
ended June 30, 2006, as compared to US$54.2 million for the
prior comparable period.  The increase in net income and FFO for
the three months ended June 30, 2006, is primarily related to an
increase in gain on sale of real estate assets through the
Company's merchant building program as compared to 2005.

FFO available to common shareholders was US$196.0 million, as
compared to US$191.6 million for the six months ended June 30,
2006 and 2005, respectively, an increase of 2.3%.  Net income
available to common shareholders was US$100.9 million for the
six months ended June 30, 2006, as compared to US$145.9 million
for the prior comparable period.  The decrease in net income for
the six months ended June 30, 2006, is primarily related to a
decrease in gain on sale of real estate assets as compared to
2005.

                           Leasing

Leasing activity continues to be strong throughout the
portfolio.  During the second quarter of 2006, Developers
Diversified executed 116 new leases aggregating 967,351 square
feet and 178 renewals aggregating 765,326 square feet.  Rental
rates on new leases increased by 21.0% and rental rates on
renewals increased by 10.8%.  On a blended basis, rental rates
for new leases and renewals increased by 12.9%.  At June 30,
2006, the average annualized base rent per occupied square foot,
including those properties owned through joint ventures, was
US$11.64, as compared to US$11.27 at June 30, 2005.

At June 30, 2006, the portfolio, including those properties
owned through joint ventures, was 96.2% leased.  Excluding the
impact of the properties acquired from Mervyns, the core
portfolio was 96.0% leased, as compared to 95.6% at
June 30, 2005.  These percentages include tenants for, which
signed leases have been executed and occupancy has not occurred.
Based on tenants in place and responsible for paying rent as of
June 30, 2006, the portfolio was 95.2% occupied.  Excluding the
impact of the properties acquired from Mervyns, the core
portfolio was 95.0% occupied, as compared to 95.0% at
June 30, 2005.

              Strategic Real Estate Transactions

MDT Joint Ventures

During the second quarter of 2006, Developers Diversified sold
seven properties, aggregating 0.8 million owned square feet, to
the MDT Preferred Joint Venture, a newly formed joint venture
with Macquarie DDR Trust, for approximately US$122.7 million and
recognized gains totaling approximately US$38.5 million of which
US$32.5 million represented merchant building gains from
recently developed shopping centers.

Under the terms of the new MDT Preferred Joint Venture, MDT
receives a 9% return on its preferred equity investment of
approximately US$12.2 million and then receives a 10% return on
its common equity investment of approximately US$20.8 million
before DDR receives a 10% return on its common equity
investment.  DDR is then entitled to a 20% promoted interest in
any cash flow achieved above a 10% leveraged IRR on all common
equity.

Developers Diversified remains responsible for all day-to-day
operations of the properties and receives ongoing fees for
property management, leasing and construction management, in
addition to a promoted interest, along with other periodic fees
such as financing fees.

In addition, in July 2006, Developers Diversified sold two
additional expansion areas in McDonough, Georgia and Coons
Rapids, Minnesota, to the MDT Joint Venture for approximately
US$10.1 million.  These expansion areas are adjacent to shopping
centers currently owned by the MDT Joint Venture.  The Company
anticipates recording merchant building gains of approximately
US$3 million in the third quarter relating to these sales.

Coventry II Joint Venture

In May 2006, the Coventry II Joint Ventures acquired three
assets located in Cincinnati, Ohio; Benton Harbor, Michigan and
Dallas, Texas, at an aggregate cost of approximately US$225
million.  Developers Diversified is responsible for all day-to-
day operations of the properties and receives its share of
ongoing fees for property management, certain leasing,
construction management, and construction oversight, in addition
to a promoted interest in the three properties acquired.

Service Merchandise Joint Venture

In June 2006, the Company exercised its purchase and sale rights
under the Service Merchandise Joint Venture agreement, and
agreed to purchase its partners' approximate 75% interest in the
remaining 52 assets owned by the Joint Venture.  Developers
Diversified expects to complete this acquisition in August 2006
at an expected gross purchase price of approximately US$138
million relating to its partners' approximately 75% interest,
based on a total valuation of approximately US$185 million for
all remaining aspects.  Following this acquisition, the Company
expects to sell the assets to the Coventry II Joint Venture and
anticipates recording a gain of approximately US$5 million of
which US$3 million will be included in FFO.

                         Acquisitions

In April 2006, Developers Diversified acquired its partner's 50%
ownership interest in the Deer Valley Towne Center located in
Phoenix, Arizona, for approximately US$15.6 million in addition
to assuming the partner's proportionate share of the US$17.3
million of existing mortgage debt (or US$8.65 million).  The
total shopping center was valued at approximately US$48.2
million.  Following the date of acquisition, this previously
unconsolidated joint venture is consolidated into the Company's
consolidated financial statements.

                          Expansions

During the six month period ended June 30, 2006, the Company
completed three expansions and redevelopment projects located in
Ocala, Florida; Rome, New York and Mooresville, North Carolina
at an aggregate cost of US$15.9 million.  The Company is
currently expanding/redeveloping nine shopping centers located
in Gadsden, Alabama; Lakeland, Florida; Stockbridge, Georgia;
Ottumwa, Iowa; Gaylord, Michigan; Olean, New York; Bayamon,
Puerto Rico; Ft. Union, Utah and Brookfield, Wisconsin at a
projected aggregate cost of approximately US$57.2 million.  The
Company anticipates commencing construction on five additional
expansion and redevelopment projects at shopping centers located
in Birmingham, Alabama; Crystal River, Florida; Hamilton, New
Jersey; Amherst, New York and Stow, Ohio.

Five of Developers Diversified's joint ventures are currently
expanding/redeveloping their shopping centers located in
Phoenix, Arizona; Lancaster, California; Benton Harbor,
Michigan; Kansas City, Missouri and Cincinnati, Ohio at a
projected incremental cost of approximately US$82.8 million.
Two of the Company's joint ventures anticipate commencing
expansion/redevelopment projects at their shopping centers
located in Deer Park, Illinois and Kirkland, Washington.

   Development (Wholly Owned and Consolidated Joint Ventures)

As of June 30, 2006, Developers Diversified has substantially
completed the construction of the Freehold, New Jersey shopping
center, which has an aggregate cost of US$25.4 million.

Developers Diversified currently has nine shopping center
projects under construction.  These projects are located in
Miami, Florida; Nampa, Idaho; McHenry, Illinois; Chesterfield,
Michigan; Seabrook, New Hampshire; Horseheads, New York; Apex,
North Carolina (Beaver Creek Crossings - Phase I, which is being
developed through a joint venture with First Carolina
Properties); Pittsburgh, Pennsylvania and San Antonio, Texas,
(which is being developed through a joint venture with David
Berndt Interests).  These projects are scheduled for completion
during 2006 through 2007 at a projected aggregate cost of
approximately US$517 million and will create an additional 4.7
million square feet of gross leasable retail space.  At June 30,
2006, approximately US$257.2 million of costs were incurred in
relation to these development projects.

Developers Diversified anticipates commencing construction in
2006 on two additional shopping centers located in Homestead,
Florida and McKinney, Texas.  These projects have an estimated
aggregate cost of US$59.3 million and will create an additional
0.5 million square feet of gross leasable retail space.

                Development (Joint Ventures)

Four of Developers Diversified's joint ventures currently have
shopping center projects under construction.  These projects
have an aggregate projected cost of approximately US$210.5
million.  These projects are located in Merriam, Kansas; Apex,
North Carolina (Beaver Creek Crossings - South, adjacent to a
wholly owned development project); Allen, Texas and San Antonio,
Texas. The projects located in Merriam, Kansas; Allen, Texas and
San Antonio, Texas, are being developed through the Coventry II
program.  The majority of the project located in San Antonio,
Texas was substantially completed during 2005.  The remaining
three projects are scheduled for completion during 2007 and
2008.  At June 30, 2006, approximately US$72.4 million of costs
were incurred in relation to these development projects.

                          Financing

In June 2006, the Company amended and restated its senior
unsecured credit facility to expand the facility from US$1
billion to US$1.2 billion and add an accordion feature to
increase the facility, at Developers Diversified's option, up to
US$1.4 billion.  The Company reduced interest rate pricing to
LIBOR plus 60 basis points, based on the Company's current
corporate credit ratings (Baa2 stable from Moody's and BBB
stable from Standard and Poors) and extended the maturity to
June 2010.

Developers Diversified also amended its US$60 million unsecured
credit facility with National City Bank to reflect consistent
terms, pricing and maturity as in the US$1.2 billion senior
unsecured credit facility.  In addition, its US$400 million
secured term loan was amended to add an accordion feature to
increase the loan, at the Company's option, up to US$500 million
and make similar covenant modifications.

Developers Diversified Realty Corp. (NYSE: DDR) --
http://www.ddr.com/-- currently owns and manages approximately
500 retail operating and development properties in 44 states,
plus Puerto Rico, comprising approximately 114 million square
feet of real estate.  Developers Diversified Realty is a self-
administered and self-managed real estate investment trust
(REIT) operating as a fully integrated real estate company which
acquires, develops, leases and manages shopping centers.

                        *    *    *

Developers Diversified Realty Corp's Preferred stock has Fitch
Ratings' BB+' rating.  Fitch said the Rating Outlook is Stable.


DORAL FINANCIAL: Pays Monthly Cash Dividend on Preferred Stocks
---------------------------------------------------------------
Doral Financial Corp. paid on July 31,2006, the regular monthly
cash dividend on these preferred stocks:

   -- 7% Noncumulative Monthly Income Preferred Stock,
      Series A, in the amount of US$0.2917 per share

   -- 8.35% Noncumulative Monthly Income Preferred Stock,
      Series B in the amount of US$0.173958 per share and

   -- 7.25% Noncumulative Monthly Income Preferred Stock,
      Series C in the amount of US$0.151042 per share.

The dividends on each of the series were paid to the holders of
record on the close of business on July 27, 2006, in the case of
the Series A Preferred Stock, and the close of business on
July 15, 2006, in the case of the Series B and Series C
Preferred Stock.

                    About Doral Financial

Doral Financial Corporation -- http://www.doralfinancial.com/
-- a financial holding company, is the largest residential
mortgage lender in Puerto Rico, and the parent company of Doral
Bank, a Puerto Rico based commercial bank, Doral Securities, a
Puerto Rico based investment banking and institutional brokerage
firm, Doral Insurance Agency, Inc. and Doral Bank FSB, a federal
savings bank based in New York City.

                        *    *    *

As reported in the Troubled Company Reporter on June 13, 2006,
Standard & Poor's Ratings Services lowered its long-term ratings
on Doral Financial Corp. (NYSE: DRL), including the company's
long-term counterparty rating, to 'B+' from 'BB-'.  At the same
time, Doral's outlook remains on CreditWatch with negative
implications.


MUSICLAND HOLDING: Wants to Walk Away from 30 Contracts & Leases
----------------------------------------------------------------
Musicland Holding Corp. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Southern District of New York's
authority to reject 16 executory contracts and 14 unexpired
leases pursuant to the Court-approved Expedited Rejection
Procedures.

The Leases to be rejected are:
                                                  Proposed
       Shopping Center/Mall                    Rejection Date
       --------------------                    --------------
       58 The Crossings                             7/31/006
       614 Silver Bridge Plaza                      7/31/006
       Albemarle Plaza                              7/31/006
       Auburn Plaza                                 7/31/006
       Germantown Shopping Ctr 19-A                 7/31/006
       Grand Vue Plaza                              7/31/006
       Jackson Park Shopping Ctr                    7/31/006
       Lincoln Plaza                                7/31/006
       MT Pleasant S/C                              7/31/006
       Pinecrest Plaza S/C                          7/31/006
       Shallotte Crossing                           7/31/006
       Sky View Plaza                               7/31/006
       The Plaza                                    7/31/006
       Vincennes Plaza                              7/31/006

The Contracts to be rejected are:

                                                       Rejection
    Counter Party                Description              Date
    -------------                -----------           ---------
    ADP, INC.                    Service Agreement       7/18/06
    MCI WorldCom Comm. Inc.      Service Agreement       7/18/06
    MCI WorldCom Comm. Inc.      Service Agreement       7/18/06
    AT&T Corporation             Service Agreement       7/21/06
    Eventis Telecom, Inc.        Service Agreement       7/21/06
    Attachmate Corporation       License Agreement       7/31/06
    Chicagosoft                  License Agreement       7/31/06
    Computer Associates Int'l    License Agreement       7/31/06
    Compuware Corporation        License Agreement       7/31/06
    First National Technology    Service Agreement       7/31/06
    GEAC AP                      AP Agreement            7/31/06
    GEAC Payroll                 Payroll Agreement       7/31/06
    Innovation Data Processing   License Agreement       7/31/06
    OMI International, Inc.      License Agreement       7/31/06
    Sterling Software            License Agreement       7/31/06
    Verispace, LLC               Service Agreement       7/31/06

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 15; Bankruptcy Creditors' Service, Inc., 215/945-7000)




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


MIRANT CORP: Sale May Affect PowerGen Expansion Plans
-----------------------------------------------------
Mirant Corp. announced last month the sale of its Caribbean
businesses. Among which, is a 39% stake in Power Generation
Company of Trinidad and Tobago.

The South Trinidad Chamber of Industry and Commerce is concerned
that with Mirant's departure, PowerGen's expansion and
development plans could be seriously hampered, the Trinidad
Guardian relates.

PowerGen had planned a 208 MW expansion of its generating
capacity with a US$39-million investment, according to a
statement from the chamber's Chief Executive Officer, Dr.
Thackwray Driver, the Guardian says.

Local demand for electricity would increase by an average of
4.5% a year for the period 2006 to 2025, due to planned
industrial expansion, the Guardian states.

Dr. Driver further said in his statement, that calls being made
on the government to repurchase its 49% stake in PowerGen and
reincorporate it into T&TEC are "questionable."

"The unbundling of power generation from transmission and
distribution has long been acknowledged as best practice as
unbundling promotes greater economic efficiency across all
sectors by making each individual entity its own profit centre,"
Dr. Driver was quoted by the Guardian as saying.

In a previous report, the chamber emphasized the importance of
ensuring the participation of the private sector in bidding for
Mirant's Caribbean businesses.

Aside from PowerGen, Mirant also owns interests:

   -- an 80% interest in Jamaica Public Service Company Limited;
   -- a 55% interest in Grand Bahama Power Company; and
   -- a 25.5% stake in Curacao Utilities Company.

                       About PowerGen

The Power Generation Company of Trinidad and Tobago was
established on December 23, 1994, and is a joint venture company
created out of the partial divestment of T&TEC.  PowerGen was
formed to buy the generation assets of Trinidad and Tobago
Electricity Commission.  T&TEC however has retained majority
shareholding in PowerGen.

PowerGen operates three major power generation plants at Point
Lisas, Port of Spain and Penal.  The largest plant is located at
Point Lisas.

                        About Mirant

Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao.  Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.  Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on January 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring.  When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts.


BRITISH WEST: Resumes Flight Despite Bomb Threat
------------------------------------------------
British West Indies Airways aka BWIA resumed its flight despite
receiving a phone call warning the airline that a bomb was
planted on an aircraft, Newsday reports.

According to Newsday, an anonymous caller had informed BWIA
officials on Wednesday afternoon that an explosive device had
been left on a plane.

The Boeing 737, says Newsday, was on the way to Toronto from
Trinidad.

BWIA officials confirmed to Newsday that security precautions
and guidelines have been undertaken.

BWIA's policy was in keeping with international safety security
standards, Newsday relates, citing Dionne Ligore, the airline's
corporate communications manager.

"Security officials conducted necessary checks on the plane and
the end resulted in the plane's departure," Ms. Ligore told
Newsday.

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

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


BRITISH WEST: Union Head Alleges Management Used Up Firm's Money
----------------------------------------------------------------
Curtis John, the head of the Allied Communication and Aviation
Workers Union or ACAWU, told Newsday that the top executives of
British West Indies Airlines aka BWIA paid in excess of US$135
every night to stay at top hotels and spent over US$1,200 of the
firm's money on dinners in foreign nations.

According to Newsday, Mr. Curtis said that he had several times
asked for an independent investigation on the financial affairs
of BWIA.  The request, however, was not granted.

BWIA's management had altered the work rules without informing
ACAWU, though this was a major concern of the union, Mr. Curtis
told Newsday.

Newsday relates that Mr. John said the management had
implemented a new rule stating that workers were to inform the
human resource department at least four hours in advance if they
were to apply for sick leave.

On the issue of a standstill on the salary negotiations, Mr.
John told Newsday, "I will use every strategy necessary to get
BWIA back to the negotiating table."

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

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


BRITISH WEST: Union to Protest Outside Airline Executives' Homes
----------------------------------------------------------------
Allied Communication and Aviation Workers Union or ACAWU has
threatened to hold demonstrations outside the houses of the
executives of British West Indies Airlines aka BWIA, Newsday
reports.

In a meeting at the Center of Excellence in Macoya, Curtis John
-- the head of ACAWU -- had reminded workers that they should
not surrender to the pressure of the BWIA management, Newsday
relates.

According to Newsday, Mr. John said that he received information
that BWIA might stop its London route -- which represented 40%
of the airline's revenue -- as well as flights into Barbados and
Antigua.

A reliable source had said that the staff was training Service
Air workers to replace them, Newsday says, citing Mr. John.  The
Traffic Department might be contracted to a private firm.

Mr. John told Newsday that he believed that as soon as the
August vacation is over, there could be a new BWIA comprising:

    -- maintenance,
    -- pilots, and
    -- flight attendants.

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

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




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


CHARLES RIVER: Amends Credit Agreement with Lenders & JPMorgan
--------------------------------------------------------------
Charles River Laboratories International, Inc., amended and
restated its existing credit agreement with certain financial
institutions and JPMorgan Chase Bank, as administrative agent.

The amended credit agreement provides for a US$156 million term
loan facility, a US$200 million revolving facility, a CDN$57.8
million term loan facility and a CDN$12 million revolving
facility for a Canadian subsidiary of the Company, and a GBP6
million revolving facility for a U.K. subsidiary of the Company.

The US$156 million term loan facility matures in 20 quarterly
installments with the last installment due June 30, 2011.  The
US$200 million revolving facility matures on July 31, 2011 and
requires no scheduled payment.  The US$200 million revolving
facility may be increased by US$100 million.  The Canadian term
loan is repayable in full by June 30, 2011.  The Canadian and UK
revolving facilities mature on July 31, 2011.

In addition to the scheduled repayments, the Company is required
to prepay the term loans with the following amounts:

   -- 50% of the net cash proceeds from certain asset sales and
      casualty and condemnation events;

   -- 100% of any net cash proceeds in connection with permitted
      receivables financings; and

   -- 50% of the net cash proceeds from certain incurrences of
      debt, unless the leverage ratio is 2:1 or less.

Charles River Laboratories International, Inc. (NYSE: CRL),
sells pathogen-free, fertilized chicken eggs to poultry vaccine
makers.  It also offers contract staffing, preclinical drug
candidate testing, and other drug development services.  It also
markets research models -- rats and mice bred for preclinical
experiments, including transgenic "knock out" mice -- to the
pharmaceutical and biotech industries.  It sells its products in
more than 50 countries including Argentina, Brazil, Peru, Puerto
Rico and Uruguay to drug and biotech companies, hospitals, and
government entities.

                        *    *    *

As reported in the Troubled Company Reporter on March 1, 2006,
Moody's Investors Service assigned Ba1 ratings to new credit
facilities of subsidiaries of Charles River Laboratories
International, Inc., which are guaranteed by Charles River.
Moody's also affirmed Charles River's Ba1 Corporate Family
Rating, the Ba1 rating on its existing credit facilities, and
the Speculative Grade Liquidity Rating of SGL-1.  The rating
outlook for the company is stable.

As reported in the Troubled Company Reporter on June 21, 2006
Standard & Poor's Ratings Services assigned its 'BB-' senior
unsecured debt rating to Charles River Laboratories
International Inc.'s US$300 million 2.25% convertible senior
notes due 2013.  The corporate credit rating is 'BB+' and the
rating outlook is positive.




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


PETROLEOS DE VENEZUELA: PetroVietnam Considers Stake in Orinoco
---------------------------------------------------------------
Following the signing of accords between Vietnam and Venezuela,
the respective countries state-oil firms Petrovietnam and
Petroleos de Venezuela, initialed a cooperation agreement and a
letter of intent to assess investment opportunities in oil and
gas projects, El Universal reports, citing a communique from
Petroleos de Venezuela.

Petroleos de Venezuela chief executive officer and Energy and
Petroleum minister Rafael Ramirez, together with Petrovietnam
President Pran Ngoc Canh, signed an agreement undertaking to
exchange information, staff and experts to identify areas of
common interest along the hydrocarbon production chain, El
Universal relates.

Among the terms of the agreement, is the syncrude production at
Venezuela's Orinoco oil belt for refining in Vietnam.

Other salient terms of the accord include:

   -- assessment of prospection and production opportunities in
      oilfields in Venezuela and Vietnam,

   -- construction of refining and storage premises and oil
      terminals in Vietnam,

   -- availability of gas as a source of energy in both
      countries, and

   -- marketing of crude oil and byproducts in the Asia-Pacific
      region.

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.

                        *    *    *

Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.

On July 31, Moody's Investors Service withdrew its B1 global
local currency rating and B1 foreign currency issuer rating of
Petroleos de Venezuela due to the lack of adequate financial and
operating information to maintain stand alone ratings on the
company, which has not been current with financial filings since
the company-wide strike of 2002-2003.  Petroleos de Venezuela
has no directly issued public debt outstanding and it redeemed
in April 2006 and de-registered in May 2006 the last public debt
of its PDVSA Finance subsidiary conduit.

Moody's has no indication that Petroleos de Venezuela intends to
provide audited financial statements either on a public or
private basis.


PETROLEOS DE VENEZUELA: Selling US$3.5B in Bonds in Local Market
----------------------------------------------------------------
Petroleos de Venezuela SA plans to sell US$3.5 billion of
dollar- denominated bonds in the local market to help finance
investments, Bloomberg News reports.

Investors will be able to buy the bonds using the country's
bolivars.  Eudomari Carruyo, Petroloes de Venezuela's financial
director, in a statement, disclosed no sale date and bond
maturities.  The company is coordinating the sale with
Venezuela's central bank and Finance Ministry.

According to Boris Segura, at Standish Mellos Asset Management,
the company's first local market sale will provide the central
bank a way to control inflation and stem the supply of money
circulating in the market.

"It's a very obscure way of helping the central bank to soak up
excess liquidity," Mr. Segura said in a telephone interview with
Bloomberg. "The growth of money supply has been excessive.
There should be better ways to absorb liquidity, and it is
difficult to say whether this will work or not."

Bloomberg says Venezuela's money supply, as measured by the M1
monetary aggregate, has surged 26% since March 10, fueled by an
increase in government spending.  President Hugo Chavez boosted
spending 66% in the first four months of the year, tapping into
rising oil tax revenue as prices climbed to record highs.

The state-oil firm will use the funds to help finance a US$70-
billion program aimed at doubling oil output to 5.8 million
barrels by 2012.

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.

                        *    *    *

Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.

On July 31, Moody's Investors Service withdrew its B1 global
local currency rating and B1 foreign currency issuer rating of
Petroleos de Venezuela due to the lack of adequate financial and
operating information to maintain stand alone ratings on the
company, which has not been current with financial filings since
the company-wide strike of 2002-2003.  Petroleos de Venezuela
has no directly issued public debt outstanding and it redeemed
in April 2006 and de-registered in May 2006 the last public debt
of its PDVSA Finance subsidiary conduit.

Moody's has no indication that Petroleos de Venezuela intends to
provide audited financial statements either on a public or
private basis.


* VENEZUELA: Inks Oil Accords with Vietnam
------------------------------------------
Venezuelan President Hugo Chavez signed last week two
cooperation agreements with Vietnamese authorities for cultural
exchange and oil technology, El Universal reports.

"Today (Monday) we have signed these documents to help each
other, so that Vietnam is independent to drill and refine oil,"
President Chavez was quoted by EFE as saying.

                        *    *    *

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


* VENEZUELA: To Drill First Wells in Orinoco Belt This Week
-----------------------------------------------------------
President Hugo Chavez said that the Venezuelan government will
start drilling oil wells in the Orinoco belt's Ayacucho block
this week to confirm the presence of reserves in the area,
Reuters reports.

According to Reuters, the government hopes to find an
approximate volume of 235 billion barrels of oil in the Orinoco
wells to confirm the world's largest oil reserve, which is part
of a program called the Magna Reserva.

"On Thursday were are going to the Orinoco Belt; we are going to
start drilling the first wells ... as part of the Magna
Reserva," Reuters said citing Pres. Chavez during his weekly
Sunday television broadcast.  "We are certifying ... the world's
largest oil reserve."

Pres. Chavez did not disclose the companies that will be
participating in this drilling project, although according to
Reuters, the state-owned Petroleos de Venezuela has already
collaborated with state energy companies from:

   -- India,
   -- China,
   -- Brazil, and
   -- Argentina

to confirm reserves in the blocks.

Reuters says that Venezuela aims at increasing its massive oil
production that will advance the Orinoco crude production, which
according to official figures show an estimate of 3.3 million
barrels per day but market observers claim a lesser output of
2.6 million bpd.

                        *    *    *

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



                        ***********


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

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

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

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

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

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


              * * * End of Transmission * * *