TCRLA_Public/060821.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, August 21, 2006, Vol. 7, Issue 165

                          Headlines

A R G E N T I N A

ALGARROBAL CHAQUENO: Verification of Claims Is Until Oct. 31
BANCO ODDONE: Verification of Proofs of Claim Is Until Sept. 26
DEMSIS SA: Trustee Verifies Proofs of Claim Until Oct. 25
DISTRIJUEGOS S.R.L.: Verification of Claims Is Until Oct. 6
ENRIQUE HERRERA: Claims Verification Deadline Is Set for Oct. 13

FAST WOOD: Trustee Verifies Proofs of Claim Until Sept. 15
GRAN SEMINO: Deadline for Claims Verification Is Set for Nov. 3
NOROS S.R.L.: Perez Pla Named as Trustee for Bankruptcy Case
TROMEN SA: Claims Verification Deadline Moved to Oct. 6

B A H A M A S

COMPLETE RETREATS: Wants XRoads Case Management as Claims Agent
COMPLETE RETREATS: Court Denies Intagio's Reservations Request
WINN-DIXIE: Files Final Joint Plan & Disclosure Statement
WINN-DIXIE: Panel Taps Spencer Stuart as Executive Hiring Expert

B E R M U D A

360AMERICAS HOLDINGS: Liquidator Asks Release from Proceeding
360AMERICAS NETWORK: Liquidator Asks to be Released from Case
GLOBENET COMMS: Liquidator Wants Out from Liquidation Proceeding
INTELSAT LTD: KPMG Replaces Deloitte as Independent Accountant
PXRE GROUP: Fin. Concerns Prompt Fitch to Continue Ratings Watch

B O L I V I A

YPF SA: Bolivian Unit's Hedge Contract with Petrobras Ended

* BOLIVIA: Will Draft Joint Venture Contract with Jindal Steel

B R A Z I L

BANCO BRADESCO: Fitch Ups Foreign Curr. Issuer Rating to BB+
BANCO DO BRASIL: Fitch Affirms Foreign Currency Rating at B
BANCO DO ESTADO: Fitch Raises Foreign Curr. Issuer Rating to BB+
BANCO ITAU BBA: Fitch Affirms Short-Term Currency Rating at B
BANCO ITAU: Fitch Upgrades Foreign Curr. Rating to BB+ from BB

BANCO ITAU HOLDING: Fitch Affirms Foreign Currency Rating at B
BANCO PACTUAL: Fitch Puts BB Foreign Curr. Rating on WatchPos
BANCO SAFRA: Fitch Upgrades Foreign Curr. Rating to BB+ from BB
BANCO VOTORANTIM: Fitch Ups Foreign Curr. Rating to BB+ from BB
BLOUNT INT: Equity Deficit Narrows to US$122.81 Mil. at June 30

COMPANHIA PETROLIFERA: Fitch Ups Foreign Currency Rating to BB+
COMPANHIA SIDERURGICA: Fitch Ups Curr. Rating to BBB- from BB+
DURA AUTOMOTIVE: Hires Miller Buckfire as Restructuring Advisor
GOL LINHAS: Fitch Ups Foreign Currency Default Rating to BB+
NOSSA CAIXA: Mulls Over Two Options for Unit Concession

PACTUAL OVERSEAS: Fitch Puts BB Foreign Curr. Rating on WatchPos
PETROLEO BRASILEIRO: Ends Hedge Pact With Empresa Petrolera
PETROLEO BRASILEIRO: Inks Dry Dock Pact with Two Companies
RIPASA SA: Fitch Ups Foreign Currency Issuer Rating to BB+
SANTANDER BRASIL: Fitch Ups Foreign Curr. Issuer Rating to BB+

SANTANDER MERIDIONAL: Fitch Upgrades Foreign Curr. Rating to BB+
TELE NORTE: Fitch Raises Foreign Currency Issuer Rating to BB+
TELEMAR NORTE: Fitch Raises Foreign Curr. Issuer Rating to BB+
UNIAO DE BANCOS: Fitch Ups Foreign Curr. Rating to BB+ from BB

* BRAZIL: IDB Okays US$9-Mil. Fund for 2 Equity Investment Funds
* BRAZIL: Fitch Upgrades Country Ceiling to BB+ from BB

C A Y M A N   I S L A N D S

A & H MFG: Final Shareholders Meeting Is Set for Sept. 7
BLACK CALICO: Last Day to File Proofs of Claim Is on Sept. 11
CAMOMILLE GLOBAL: Holding Final Shareholders Meeting on Sept. 7
CQS (MASTER): Schedules Last Shareholders Meeting on Sept. 7
CQS (FEEDER): Shareholders Gather for a Final Meeting on Sept. 7

DAWNING GLOBAL: Last Shareholders Meeting Is Set for Sept. 7
GARNET PROPERTIES: Final Shareholders Meeting Is Set for Sept. 7
HAMMERMAN OPPORTUNITY: Proofs of Claim Must be Filed by Sept. 15
HANABI LIMITED: Calls Shareholders for Final Meeting on Sept. 7
HECTOR FUNDING: Final Shareholders Meeting Scheduled for Sept. 7

JACKSON CREEK: Shareholders Gather for a Last Meeting on Sept. 7
PIONEER 2002: Creditors Must File Proofs of Claim by Sept. 13
RET HOLDINGS: Invites Shareholders for Final Meeting on Sept. 7
RUBICON AUSTRALIA MASTER: Final Shareholders Meeting Is Sept. 7
RUBICON AUSTRALIA OFFSHORE: Last Shareholders Meeting Is Sept. 7

C H I L E

CONSTELLATION BRANDS: New Notes Cue Fitch to Affirm Ratings
CONSTELLATION BRANDS: Moody's Rates US$500 Mil. Sr. Notes at Ba2

C O L O M B I A

BANCO DE BOGOTA: Pays for Right to Peruse Banco del Cafe's Books
BANCO DEL CAFE: Eight Banks Pay for Rights to Examine Books
BANCOLOMBIA: Pays for Right to Look at Banco del Cafe's Books

* COLOMBIA: Fitch Raises Country Ceiling to BB+ from BB

C O S T A   R I C A

* COSTA RICA: Fitch Upgrades Country Ceiling to BB+ from BB
* COSTA RICA: State Firm Says Gasoline Use Drops 6.8% in July

C U B A

* CUBA: Vietnam Wants to Intensify Relations with Nation

D O M I N I C A N   R E P U B L I C

BANCO NACIONAL: Former Executives Found Guilty of Fraud
FALCONBRIDGE LTD: Changes Board of Directors After Xstrata's Buy
TRICOM SA: Delays Filing 2005 Annual Report with US SEC
TRICOM SA: Director Manuel Arturo Pellerano Convicted of Fraud

* DOMINICAN REPUBLIC: S&P Affirms B Sovereign Credit Ratings

E C U A D O R

* ECUADOR: Regulator Says Power Sector Needs US$3.33 Billion

E L   S A L V A D O R

AES EL SALVADOR: Fitch Ups Foreign Curr. Rating to BBB- from BB+
BANCO SALVADORENO: Fitch Maintains Positive Watch on BB Rating
BANCO SALVADORENO: Bancosal Wants Full Ownership of Company
SCOTIABANK EL SALVADOR: Fitch Ups Issuer Rating to BBB- from BB+

* EL SALVADOR: Fitch Upgrades Country Ceiling to BBB- from BB+

G U A T E M A L A

DELTA AIR: Will Launch Nonstop Flight to Guatemala

J A M A I C A

DIGICEL LTD: Heather Shields Leaves Firm for Scotiabank Jamaica
DYOLL INSURANCE: Farmers Receive J$204MM After Firm's Collapse
DYOLL INSURANCE: Two Policyholders Get Reinsurance Proceeds
KAISER ALUMINUM: Parties' Reply to Agrium's Move to Pursue Claim
NATIONAL WATER: Implements Restrictions to Some Areas

SUGAR COMPANY: Enterprise Team Will Renew Divestment Offer

* JAMAICA: Will Ink Economic Accord with Venezuela

M E X I C O

CABLEMAS SA: Second Quarter 2006 Net Revenues Up 30.8%
FORD MOTOR: Plans to Expand & Accelerate Restructuring Plan
SATELITES MEXICANOS: Disclosure Statement Hearing on Sept. 6
SATELITES MEXICANOS: Satellite 6 to Operate in US
SATELITES MEXICANOS: Wants Court Nod on Solicitation Procedures

UNITED RENTALS: Earns US$56 Million in Quarter Ended June 30
VITRO SA: Improves Network Communications Using Avaya Telephony

P A N A M A

CHIQUITA BRANDS: Names Jim Gallagher as VP of Corporate Sales
CHIQUITA BRANDS: Reports US$23MM Second Quarter 2006 Net Income

* PANAMA: Gov't Analyzes Terms of Proposed IDB Loan for US$40MM

P E R U

TELEFONICA DEL PERU: Fitch Ups Issuer Default Rating to BB+

* PERU: Fitch Upgrades Country Ceiling to BB+ from BB

P U E R T O   R I C O

ADELPHIA COMMS: Balance Sheet Upside-Down by US$8.4B at June 30
ADELPHIA COMMS: Plans IPO on 33-1/3% of Class A Common Stock
OCA INC: Hires Postlethwaite & Netterville as Accountants
OCA INC: Equity Panel Hires Imperial Capital as Fin'l Advisor

* PUERTO RICO: Moody's Revises Outlook on Banking Sys. to Neg.

T R I N I D A D   &   T O B A G O

MIRANT: Asset Recovery Agrees to Keep BofA's Info Confidential

U R U G U A Y

BANCO ITAU (URUGUAY): Fitch Raises Foreign Curr. Rating to BB-
HIPOTECARIO DEL URUGUAY: Moves US$25M Securitization to November
HSBC BANK URUGUAY: Fitch Ups Foreign Curr. Rating to BB from BB-

* URUGUAY: Fitch Raises Country Ceiling to BB from BB-

V E N E Z U E L A

CITGO PETROLEUM: Assets in US Attracts Lukoil
ELECTRICIDAD DE CARACAS: Invests VEB1.48B for Public Lighting
NOSSA CAIXA: Posts BRL290 Million First Half Net Profits
PETROLEOS DE VENEZUELA: El Salvador Mayors Push for Fuel Accord
PETROLEOS DE VENEZUELA: Has 14 New Projects Under Petrocaribe

* VENEZUELA: Will Ink Economic Accord with Jamaica

* AlixPartners Employees & Hellman Firm to Gain Majority Stake
* BOOK REVIEW: Debtors and Creditors in America


                          - - - - -


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


ALGARROBAL CHAQUENO: Verification of Claims Is Until Oct. 31
------------------------------------------------------------
Rebeca Feigenbaum, the court-appointed trustee for Algarrobal
Chaqueno S.A.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Oct. 31, 2006.

Ms. Feigenbaum will present the validated claims in court as
individual reports on Dec. 15, 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 Algarrobal Chaqueno 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 Algarrobal Chaqueno's
accounting and banking records will follow on March 9, 2007.

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

The trustee can be reached at:

           Rebeca Feigenbaum
           Avenida Cordoba 1367
           Buenos Aires, Argentina


BANCO ODDONE: Verification of Proofs of Claim Is Until Sept. 26
---------------------------------------------------------------
Estudio Tisocco y Asociados, the court-appointed trustee for
Banco Oddone S.A.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Sept. 26, 2006.

Under Argentine bankruptcy law, Estudio Tisocco is required to
present the validated claims in court as individual reports.  
Court No. 11 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 Banco Oddone and its
creditors.

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

Estudio Tisocco will also submit a general report that contains
an audit of Banco Oddone's accounting and banking records.  The
report submission dates have not been disclosed.

Corte Suprema de Justicia de la Nacion confirmed Court No. 11's
bankruptcy order on Banco Oddone.

Clerk No. 22 assists the court in the proceeding.

The debtor can be reached at:

           Banco Oddone S.A.
           Corrientes 456
           Buenos Aires, Argentina

The trustee can be reached at:

           Estudio Tisocco y Asociados
           Viamonte 1570
           Buenos Aires, Argentina


DEMSIS SA: Trustee Verifies Proofs of Claim Until Oct. 25
---------------------------------------------------------
Court-appointed trustee Aldo Emilio Cambiasso verifies
creditors' proofs of claim against bankrupt company Demsis S.A.
until Oct. 25, 2006.

Under Argentine bankruptcy law, Mr. Cambiasso is required to
present the validated claims in court as individual reports.  
Court No. 2 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 Demsis and its
creditors.

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

Mr. Cambiasso will also submit a general report that contains an
audit of Demsis' accounting and banking records.  The report
submission dates have not been disclosed.

Court No. 2 declared Demsis bankrupt at the behest of Paula
Casero, whom it owes US$15,295.75.

Clerk No. 4 assists the court in the proceeding.

The debtor can be reached at:

           Demsis S.A.
           Esmeralda 740
           Buenos Aires, Argentina

The trustee can be reached at:

           Aldo Emilio Cambiasso
           Cerrito 1070
           Buenos Aires, Argentina


DISTRIJUEGOS S.R.L.: Verification of Claims Is Until Oct. 6
-----------------------------------------------------------
Court-appointed trustee Antonio Florencio Canada verifies
creditors' proofs of claim against bankrupt company Distrijuegos
S.R.L. until Oct. 6, 2006.

Mr. Canada will present the validated claims in court as
individual reports on Nov. 20, 2006.  A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Distrijuegos 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 Distrijuego's
accounting and banking records will follow on Feb. 19, 2007.

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

The trustee can be reached at:

           Antonio Florencio Canada
           Dr. Luis Belaustegui 4531
           Buenos Aires, Argentina


ENRIQUE HERRERA: Claims Verification Deadline Is Set for Oct. 13
----------------------------------------------------------------
Court-appointed trustee Omar Vazquez will verify creditors'
proofs of claim against bankrupt company Enrique Herrera S.R.L.
until Oct. 13, 2006.

Mr. Vazquez will present the validated claims in court as
individual reports on Nov. 24, 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 Enrique Herrera 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 Enrique Herrera's
accounting and banking records will follow on Feb. 9, 2007.

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

The trustee can be reached at:

           Omar Vazquez
           Bartolome Mitre 1970
           Buenos Aires, Argentina


FAST WOOD: Trustee Verifies Proofs of Claim Until Sept. 15
----------------------------------------------------------
Gustavo Alejandro Pagliere, the court-appointed trustee for Fast
Wood S.A.'s bankruptcy case, verifies creditors' proofs of claim
until Sept. 15, 2006.

Mr. Pagliere will present the validated claims in court as
individual reports on Nov. 2, 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 Fast Wood 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 Fast Wood's
accounting and banking records will follow on Dec. 21, 2006.

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

The trustee can be reached at:

           Gustavo Alejandro Pagliere
           Tucuman 1424
           Buenos Aires, Argentina


GRAN SEMINO: Deadline for Claims Verification Is Set for Nov. 3
---------------------------------------------------------------
Court-appointed trustee Estudio Roggiano y Asociados verifies
creditors' proofs of claim against Gran Semino S.A. until
Nov. 3, 2006.  

Gran Semino's creditors did not accept the settlement plan that
the company presented on Aug. 19, 2003, prompting Court No. 9 in
Buenos Aires to declare the company bankrupt.

Under Argentine bankruptcy law, Estudio Roggiano is required to
present the validated claims in court as individual reports.  
Court No. 9 will determine if the verified claims are
admissible, taking into account the trustee's opinion and the
objections and challenges raised by Gran Semino and its
creditors.

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

Estudio Roggiano will also submit a general report that contains
an audit of gran Semino's accounting and banking records.  The
report submission dates have not been disclosed.

Clerk No. 17 assists the court in the proceeding.

The debtor can be reached at:

           Gran Semino S.A.
           Pueyrredon 1205
           Buenos Aires, Argentina

The trustee can be reached at:

           Estudio Roggiano y Asociados
           Corrientes 2817
           Buenos Aires, Argentina


NOROS S.R.L.: Perez Pla Named as Trustee for Bankruptcy Case
------------------------------------------------------------
A court in Rosario, Santa Fe, appointed Patricia B. Perez Pla to
supervise the bankruptcy proceeding of Noros S.R.L.  Under
bankruptcy protection, control of the company's assets is
transferred to Ms. Perez Pla.

As trustee, Ms. Perez Pla will:

   -- verify creditors' proofs of claim;

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

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

The debtor can be reached at:

           Noros S.R.L.
           Cochabamba 4723 Rosario
           Santa Fe, Argentina

The trustee can be reached at:

           Patricia B. Perez Pla
           Moreno 2361, Rosario
           Santa Fe, Argentina


TROMEN SA: Claims Verification Deadline Moved to Oct. 6
-------------------------------------------------------
A court in Buenos Aires moved the deadline for the verification
of creditors' proofs of claim against Tromen S.A. to
Oct. 6, 2006.  The verification phase was previously set to end
on Aug. 16, 2006.  Adalberto Abel Corbelleri, the court
appointed trustee for the company's insolvency case, continues
to supervise the proceeding.

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

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

Mr. Corbelleri will also submit a general report that contains
an audit of Tromen's accounting and banking records.  The report
submission date has not been disclosed.

On Feb. 5, 2007, Tromen's creditors will vote on a settlement
plan that the company will lay on the table.

The debtor can be reached at:

           Tromen S.A.
           San Martin 66
           Buenos Aires, Argentina

The trustee can be reached at:

           Adalberto Abel Corbelleri
           Carabobo 237
           Buenos Aires, Argentina  




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


COMPLETE RETREATS: Wants XRoads Case Management as Claims Agent
---------------------------------------------------------------
Complete Retreats LLC and its debtor-affiliates ask permission
from the U.S. Bankruptcy Court for the District of Connecticut
to hire XRoads Case Management Services, LLC, as their claims
and noticing agent.

The Debtors inform the Court that they have more than 5,000
creditors and other potential parties-in-interest.  The Debtors
believe that the Office of the Clerk of the Court is not
equipped to:

   (i) distribute notices;

  (ii) process all proofs of claim filed in the Chapter 11
       cases; and

(iii) assist in the balloting process.

As the Debtors' claims and noticing agent, XCM will:

   (a) assist the Debtors and their counsel in the preparation
       of
       the Debtors' schedules of assets and liabilities and
       statements of financial affairs;

   (b) assist the Debtors and their counsel in the preparation
       of the initial reporting package for the United States
       Trustee;

   (c) assist the Debtors and their counsel in preparation of
       the Debtors' monthly operating reports;

   (d) design, maintain, and administer the Debtors' claims
       database;

   (e) provide designated users with access to the claims
       database to track claims activity, to view claims-related
       documents in PDF format, and to create reports;

   (f) send out acknowledgement cards to creditors confirming
       receipt of their proofs of claim; and

   (g) provide copy and notice service consistent with the
       applicable local rules and as asked by the Debtors or the
       Court, including acting as the official claims agent in
       lieu of the Court in:

       (1) serving notice to parties-in-interest;

       (2) maintaining all proofs of claim and proofs of
           interest filed and received in the bankruptcy cases;

       (3) docketing the claims;

       (4) maintaining and transmitting to the clerk of the
           Court the official claims registers;

       (5) maintaining current mailing lists of all entities
           that have filed claims and notices of appearance it
           receives;

       (6) providing public access for examination of the claims
           at CMS' premises during regular business hours and
           without charge; and

       (7) recording assignments of claims to third parties and
           recording all transfers received by CMS pursuant to
           Rule 3001(e) of the Federal Rules of Bankruptcy
           Procedure.

On the Debtors' behalf, James Mitchell tells the Court that XCM
was chosen because of its experience, the competitiveness of its
fees, and its prepetition involvement with the Debtors.  XCM has
provided necessary assistance to the Debtors in preparing for
their bankruptcy filings.

The Debtors will pay XCM these hourly rates for its consulting
services:

   Professional                            Hourly Rate
   ------------                            -----------
   Director or Managing Director         US$225 to US$325
   Consultant or Sr. Consultant          US$125 to US$225

   Type of Service                         Hourly Rate
   ---------------                         -----------
   Accounting and Document Management    US$125 to US$195
   Programming and Technical Support     US$125 to US$195
   Clerical -- data entry                 US$40 to US$65

John Vander Hooven, a managing director at XRoads Case
Management Services, LLC, assures the Court that the firm
neither holds nor represents any interest adverse to the
Debtors' estates on matters for which it is to be retained and
employed.  XCM has had no prior connection with the Debtors,
however, XCM's employees may, in the ordinary course of their
personal affairs, have relationships with certain creditors of
the Debtors, Mr. Hooven adds.

XCM is a "disinterested person", as referenced in Section 327(a)
of the Bankruptcy Code and as defined in Sections 101(14) and
1107(b) of the Bankruptcy Code, Mr. Hooven maintains.

                  About Complete Retreats

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

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

Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245
through 06-50306).  Nicholas H. Mancuso, Esq., Jeffrey K. Daman,
Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A.
Stieglitz Jr., Esq., at Dechert LLP, are representing the
Debtors in their restructuring efforts.  Xroads Solutions Group,
LLC, is the Debtors financial and restructuring advisor.  When
the Debtors filed for chapter 11 protection, they listed total
debts of US$308,000,000.  (Complete Retreats  
Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service,  
Inc., http://bankrupt.com/newsstand/or 215/945-7000).  


COMPLETE RETREATS: Court Denies Intagio's Reservations Request
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Connecticut denied
Intagio Corporation's request to:

   (a) direct Complete Retreats LLC and its debtor-affiliates to
       honor all THR Credit Reservations made, or to be made,
       under the 2005 Contract and any of the Prior Contracts;
       and

   (b) exempt the THR Credit Reservations, if necessary, from
       the provisions of the Reservations Order to the extent
       any of them apply to the THR Credit Reservations.

The Court found that Intagio failed to comply with the contested
matter procedure guidelines effective Oct. 3, 2005.

The Troubled Company Reporter on Aug. 8, 2006 stated that in
October 2005, Debtor Preferred Retreats LLC dba Tanner & Haley
Destination Clubs, and Intagio entered into a Media Purchase
Agreement, whereby Intagio agreed to place an advertising
campaign on behalf of Preferred Retreats.

In return, Preferred Retreats agreed to provide Intagio:

   -- a US$647,045 cash payment for advertising; and

   -- credits, totaling US$327,975, redeemable for occupancy
      rights at all THR Private Retreats, THR Distinctive
      Retreats, THR Distinctive Retreats II and THR Legendary
      Retreats properties.

Intagio and Preferred Retreats were also parties to prior
agreements of a similar nature, Louis J. Testa, Esq., at
Neubert, Pepe & Monteith, P.C., in New Haven, Connecticut, said.

Prior to the Debtors' bankruptcy filing, Intagio booked certain
reservations on behalf of its clients and resold some of the THR
Credits to third parties under the 2005 Contract and the Prior
Contracts, Mr. Testa disclosed.

As of July 23, 2006, these THR Credit Reservations were
outstanding:

   (1) Reservations already booked through Intagio's travel
       department, on behalf of Intagio's clients;

   (2) THR Credits resold by Intagio to third parties for which
       reservations have been, or may be made, by the parties;
       and

   (3) THR Credits owned by Intagio but not yet sold to third
       parties or redeemed for Client Reservations.

On July 27, 2006, the Court authorized the Debtors to honor
existing reservations, accept new reservations and provide
services to members under certain terms and conditions.

Subsequent to July 23, 2006, Intagio received formal
notification from the Debtors that they will not honor the THR
Credit Reservations.

Mr. Testa noted that Intagio is particularly concerned with a
client reservation made by Michael Cunningham in February 2006
for the Debtors' location at Palm Beach County, in Florida, for
occupancy commencing on Aug. 16, 2006, and ending on
Aug. 21, 2006.

The remaining Client Reservations will commence on Oct. 2,
Oct. 19 and Dec. 8, 2006, Mr. Testa added.

If the Debtors fail to honor the Client Reservations and the
Third Party Reservations, Intagio will be required and compelled
to reimburse at least US$456,282 to the reservation holders in
cash or business credits, Mr. Testa informed the Honorable Alan
H.W. Shiff.

It is unlikely that Intagio will recover the amount of the
Reservation Obligations in the bankruptcy cases, Mr. Testa said.
Unlike Intagio, however, the Debtors will not suffer significant
hardship or irreparable injury by being compelled to honor the
THR Credit Reservations pending confirmation of a plan of
reorganization, Mr. Testa continued.

According to Mr. Testa, a review of the Reservations Motion and
Reservations Order appears to indicate that the relief requested
is limited to reservations made by members only, and not third
party creditors like Intagio.  Nor does the order appear to
apply to the holders of Client Reservations and Third Party
Reservations.

The Reservations Order allows the Debtors to provide
preferential treatment for a group of unsecured creditors,
namely members, to the detriment of other unsecured creditors,
like Intagio, and differentiate their treatment with respect to
honoring of reservations, Mr. Testa asserted.

Moreover, Intagio was not placed upon prior notice of the
Reservations Motion in order to protect its interests with
respect to the THR Credit Reservations.

"[Thus,] the balance of the equities weighs in favor of
Intagio," Mr. Testa maintained.

Mr. Cunningham will need to be informed as soon as practically
possible prior to Aug. 16, 2006, of the need to make alternate
vacation plans, if necessary, Mr. Testa told the Court.  In
addition, the holders of the remaining Client Reservations will
need as much time as possible to make alternative plans, if
necessary.

                  About Complete Retreats

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

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

Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245
through 06-50306).  Nicholas H. Mancuso, Esq., Jeffrey K. Daman,
Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A.
Stieglitz Jr., Esq., at Dechert LLP, are representing the
Debtors in their restructuring efforts.  Xroads Solutions Group,
LLC, is the Debtors financial and restructuring advisor.  When
the Debtors filed for chapter 11 protection, they listed total
debts of US$308,000,000.  (Complete Retreats  
Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service,  
Inc., http://bankrupt.com/newsstand/or 215/945-7000).  


WINN-DIXIE: Files Final Joint Plan & Disclosure Statement
---------------------------------------------------------
Winn-Dixie Stores, Inc., and its 23 debtor-affiliates submitted
to the U.S. Bankruptcy Court for the Middle District of Florida
their final Joint Plan of Reorganization and its accompanying
Disclosure Statement on Aug. 9, 2006.

Judge Funk authorized the Debtors to make additional changes
to the Disclosure Statement explaining their amended Plan of
Reorganization before the commencement of the solicitation
process.

Judge Funk ruled that the Disclosure Statement accompanying the
amended Plan of Reorganization contains adequate information
within the meaning of Section 1125(a) of the Bankruptcy Code.

A full-text copy of the Debtors' final Joint Plan and
Disclosure Statement is available for free at
http://ResearchArchives.com/t/s?fe3

In view of the deemed rejection by holders of claims in Classes
18 to 21, the Debtors will seek confirmation of the Plan
pursuant to the "cramdown" provisions of the Bankruptcy Code.

Holders of claims in Classes 7 to 17 are entitled to vote on the
Plan.  Holders of claims Classes 1 to 6, which claims will be
paid in full pursuant to the Plan, are deemed to have accepted
the Plan.

The Debtors further reserve the right to seek confirmation of
the Plan in the event that holders of claims in Classes 7 to 17
vote to reject the Plan.

According to D.J. Baker, Esq., at Skadden, Arps, Slate, Meagher
& Flom LLP, in New York, Section 1129(b) of the Bankruptcy Code
provides that a plan can be confirmed even if it is not accepted
by all impaired classes, as long as at least one impaired class
of claims has accepted it.

The Court may confirm a plan at the request of the Debtors if
the plan "does not discriminate unfairly" and is "fair and
equitable" as to each impaired class that has not accepted the
Plan, Mr. Baker adds.

However, if the requisite acceptances are not received or the
Plan is not confirmed and consummated, according to Mr. Baker,
the theoretical alternatives include:

   (a) formulation of an alternative plan or plans of
       reorganization; or

   (b) liquidation of the Debtors under Chapter 7 or Chapter 11
       of the Bankruptcy Code.

The Debtors believe that confirmation and consummation of the
Plan is preferable to all other alternatives because the Plan
enables claimants to realize the greatest possible value under
the circumstances.

Thus, the Debtors urge all holders of claims in Classes 7 to 17
to vote to accept the Plan, and to complete and return their
ballots so that they will be received on or before 4:00 p.m.
(Eastern Time) on Sept. 25, 2006.

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. 48; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


WINN-DIXIE: Panel Taps Spencer Stuart as Executive Hiring Expert
----------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in Winn-
Dixie Stores, Inc., and its debtor-affiliates' bankruptcy cases
seeks authority from the U.S. Bankruptcy Court for the Middle
District of Florida to retain Spencer Stuart as director
retention consultant effective as of July 10, 2006.

Pursuant to the Debtors' Joint Plan of Reorganization, the
Creditors Committee will select seven individuals to serve on
the board of directors of reorganized Winn-Dixie Stores.

The Creditors Committee is seeking the assistance of Spencer
Stuart in conducting an efficient and expedient search for new
directors.

Spencer Stuart has nearly 50 years of experience in the
executive search field and is one of the leading executive
search firms in the United States.  Spencer Stuart also has
extensive experience in assisting companies in selecting board
candidates.

Spencer Stuart will:

   (1) meet with the Creditors Committee to develop background
       information on the significant issues and creditor
       expectations before approaching and meeting with
       candidates;

   (2) work with the Creditors Committee to develop detailed
       position specifications;

   (3) construct a search strategy for the positions to define
       and prioritize potential candidate locations, position
       levels and other elements of the search focus to ensure a
       comprehensive search assignment;

   (4) conduct an intensive search utilizing its retail networks
       and knowledge of the marketplace to yield qualified
       individuals for the Creditors Committee to compare and
       evaluate;

   (5) thoroughly interview qualified candidates to obtain a
       realistic understanding of their experience,
       accomplishments, capabilities, and potential, as well as
       prepare and present a comprehensive resume for review of
       each candidate recommended for interview;

   (6) present the best qualified and interested individuals for
       selection interviews;

   (7) assist as necessary in developing and negotiating the
       final compensation package and other terms of employment
       for the directors;

   (8) conduct reference checks of successful candidates;

   (9) conduct periodic progress reviews with the Creditors
       Committee to discuss individuals contacted, candidate
       interest, recruiting issues, and any other matters
       related to the search; and

  (10) perform other search-related services as may be required
       by the Creditors Committee.

Spencer Stuart will be retained until the completion of the
assignment unless terminated beforehand in accordance with the
provisions of the engagement letter dated July 10, 2006.

The Debtors have agreed that they will be solely responsible for
the payment of all fees and expenses incurred by Spencer Stuart.

Spencer Stuart's retainer fee will be up to US$525,000, which
will be billed in three equal installments for up to seven board
member placements at US$75,000 per each placement.  Installments
are to be paid by the Debtors on Aug. 15, 2006; Sept. 15, 2006;
and Oct. 16, 2006.

If the Court will not approve the application prior to an
Installment Date, Spencer Stuart will be paid as soon as
practicable upon order of the Court.

In addition to its retainer fee, Spencer Stuart also charges
monthly for search-related expenses at 10% of each installment.
Spencer Stuart will also be reimbursed for direct, out-of-pocket
expenses.

Thomas J. Snyder, a consultant at Spencer Stuart, assures the
Court that his firm is disinterested as defined by Section
101(14) of the Bankruptcy Code.  Mr. Snyder says his firm holds
no adverse interest to the Debtors.

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. 48; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).




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


360AMERICAS HOLDINGS: Liquidator Asks Release from Proceeding
-------------------------------------------------------------
Mark W.R. Smith, the provisional liquidator for 360americas
Holdings Ltd.'s liquidation proceeding has asked the Supreme
Court of Bermuda to be released from the company's case and for
the company to be dissolved without any further action being
taken in the liquidation under the Companies Act 1981.

360americas' creditors and shareholders are given up to
twenty-one days after the approval of the release to raise their
objections to the court.  They may also request for a summary of
receipts and payments in respect of the provisional liquidation
at:

           Mark W.R. Smith
           Deloitte & Touch
           Corner House
           Church & Parliament Streets
           Hamilton , HM FX, Bermuda
           Fax: 441 292 0961

360americas Holdings Ltd., incorporated in Bermuda, is 100%
owned by 360Networks Inc.  The company implemented an undersea
and terrestrial network to connect the United States, Brazil,
Venezuela and Bermuda.

360networks, Inc., based in Vancouver, British Columbia,
-- http://www.360.net/-- is a leading independent provider of   
fiber optic communications network products and services
worldwide.  The Company and its 22 debtor-affiliates filed for
chapter 11 protection on June 28, 2001 (Bankr. S.D.N.Y. Case No.
01-13721), obtained confirmation of a plan on October 1, 2002,
and emerged from chapter 11 on November 12, 2002. Alan J.
Lipkin, Esq., and Shelley C. Chapman, Esq., at Willkie Farr &
Gallagher, represent the Company before the Bankruptcy Court.  
When the Debtors filed for protection from its creditors, they
listed US$6,326,000,000 in assets and US$3,597,000,000 in
liabilities.


360AMERICAS NETWORK: Liquidator Asks to be Released from Case
-------------------------------------------------------------
Mark W.R. Smith, the provisional liquidator for 360americas
Network (Bermuda)'s liquidation proceeding has asked the Supreme
Court of Bermuda to be released from the company's case and for
the company to be dissolved without any further action being
taken in the liquidation under the Companies Act 1981.

360americas' creditors and shareholders are given up to
twenty-one days after the approval of the release to raise their
objections to the court.  They may also request for a summary of
receipts and payments in respect of the provisional liquidation
at:

           Mark W.R. Smith
           Deloitte & Touch
           Corner House
           Church & Parliament Streets
           Hamilton, HM FX, Bermuda
           Fax: 441 292 0961

360americas Network (Bermuda) Ltd., incorporated in Bermuda, is
a wholly-owned subsidiary of by 360Networks Inc.  

360networks, Inc., based in Vancouver, British Columbia,
-- http://www.360.net/-- is a leading independent provider of   
fiber optic communications network products and services
worldwide.  The Company and its 22 debtor-affiliates filed for
chapter 11 protection on June 28, 2001 (Bankr. S.D.N.Y. Case No.
01-13721), obtained confirmation of a plan on October 1, 2002,
and emerged from chapter 11 on November 12, 2002. Alan J.
Lipkin, Esq., and Shelley C. Chapman, Esq., at Willkie Farr &
Gallagher, represent the Company before the Bankruptcy Court.  
When the Debtors filed for protection from its creditors, they
listed US$6,326,000,000 in assets and US$3,597,000,000 in
liabilities.


GLOBENET COMMS: Liquidator Wants Out from Liquidation Proceeding
----------------------------------------------------------------
Mark W.R. Smith, the provisional liquidator for Globenet
Communications Group Limited's liquidation proceeding has asked
the Supreme Court of Bermuda to be released from the company's
case and for the company to be dissolved without any further
action being taken in the liquidation under the Companies Act
1981.

Globenet Communications' creditors and shareholders are given up
to twenty-one days after the approval of the release to raise
their objections to the court.  They may also request for a
summary of receipts and payments in respect of the provisional
liquidation at:

           Mark W.R. Smith
           Deloitte & Touch
           Corner House
           Church & Parliament Streets
           Hamilton, HM FX, Bermuda
           Fax: 441 292 0961

GlobeNet Communications Group Limited of Bermuda was acquired by
360networks in 2000 for US$1 billion.  GlobeNet built the
28,400-km Atlantica-1 (renamed 360americas), a submarine fibre
optic network between North and South America.

360networks, Inc., based in Vancouver, British Columbia,
-- http://www.360.net/-- is a leading independent provider of   
fiber optic communications network products and services
worldwide.  The Company and its 22 debtor-affiliates filed for
chapter 11 protection on June 28, 2001 (Bankr. S.D.N.Y. Case No.
01-13721), obtained confirmation of a plan on October 1, 2002,
and emerged from chapter 11 on November 12, 2002. Alan J.
Lipkin, Esq., and Shelley C. Chapman, Esq., at Willkie Farr &
Gallagher, represent the Company before the Bankruptcy Court.  
When the Debtors filed for protection from its creditors, they
listed US$6,326,000,000 in assets and US$3,597,000,000 in
liabilities.


INTELSAT LTD: KPMG Replaces Deloitte as Independent Accountant
--------------------------------------------------------------
The Audit Committee of the Board of Directors of Intelsat, Ltd.,
disclosed that KPMG LLP will replace Deloitte & Touche LLP, as
the independent registered public accounting firm for Intelsat
Holding Corp. and Intelsat Corp., for the year ending
Dec. 31, 2006.  Deloitte was notified of the decision on
Aug. 3, 2006.

The Company disclosed that, Deloitte's reports on the
consolidated financial statements of Intelsat Holding
Corporation and Intelsat Corp. as of and for the years ended
Dec. 31, 2005, and 2004 did not contain any adverse opinion or
disclaimer of opinion and were not qualified or modified as to
uncertainty, audit scope, or accounting principles.

The Company further said that during the fiscal years ended
Dec. 31, 2005, and 2004 and through Aug. 3, 2006, there were
no disagreements with Deloitte on any matter of accounting
principles or practices, financial statement disclosure, or
auditing scope or procedure.

Intelsat, Ltd. - http://www.intelsat.com/-- offers telephony,  
corporate network, video and Internet solutions around the globe
via capacity on 25 geosynchronous satellites in prime orbital
locations.  Customers in approximately 200 countries rely on
Intelsat's global satellite, teleport and fiber network for
high-quality connections, global reach and reliability.  In
Bermuda, the company operates through Intelsat (Bermuda) Ltd.

                        *    *    *

As reported in the Troubled Company Reporter on June 19, 2006,
Fitch upgraded the Issuer Default Rating for Intelsat to 'B'
from 'B-' pro forma for its pending acquisition of PanAmSat. The
ratings were also removed from Rating Watch Negative, where they
had originally been placed on Aug. 30, 2005.  Fitch said the
Rating Outlook is Stable.

As reported in the Troubled Company Reporter on June 13, 2006,
Moody's Investors Service affirmed the B2 corporate family
rating of Intelsat, Ltd., and downgraded the corporate family
rating of PanAmSat Corp. to B2, given the greater clarity
regarding the final capital structure and the near-term
completion of the PanAmSat acquisition by Intelsat.


PXRE GROUP: Fin. Concerns Prompt Fitch to Continue Ratings Watch
----------------------------------------------------------------
Fitch Ratings disclosed that the ratings of PXRE Group Ltd.
remain on Rating Watch Negative.  Fitch's comment follows the
reinsurer's second quarter earnings announcement.

Fitch's ratings remain on Rating Watch Negative due to these
factors:

   -- Continued uncertainty related to PXRE's future viability
      and business direction as the company continues to explore
      strategic alternatives and negotiate commutations.  Fitch
      believes such actions often signal a distressed situation
      and potential run-off.  Additionally, the company is in
      the process of replacing its current advisor, Lazard Ltd.,
      with a new firm due to Lazard's expiring engagement and
      staffing changes.

   -- Concerns regarding the company's ability to continue to
      operate profitably given its increased expenses, reduced
      premium base, and the potential for inadequately set
      reserves.  Roughly 82% of PXRE's in-force business as of
      Jan. 1, 2006, has either been non-renewed or cancelled.
      PXRE expects nearly all remaining business will expire
      by Jan. 1, 2007.

   -- Senior management changes previously announced, which
      include the resignation of the company's Chief Operating
      Officer effective July 17, 2006.

   -- Shareholder lawsuits previously announced, with their
      ultimate financial impact unknown.

   -- Fitch's belief that PXRE has limited financial
      flexibility going forward.

Positively, through the second quarter of 2006, PXRE did not
experience material adverse loss reserve development related to
its 2005 hurricane losses, and its catastrophe risk continues to
be reduced since a large amount of its premium base has non-
renewed or cancelled.  Fitch expects this will continue to be
the trend.  Additionally, Fitch noted that capital has increased
slightly since year-end Dec. 31, 2005. Shareholders' equity was
US$504.5 million at June 30, 2006, versus US$465.3 million at
year-end.  Surplus at the two primary insurance subsidiaries was
also stable.

Fitch originally placed the ratings on Rating Watch Negative on
Feb. 17, 2006, following PXRE's announcement that the company
had increased its pre-tax net loss estimates for hurricanes
Katrina, Rita, and Wilma by US$281 million to US$311 million and
decided to explore strategic alternatives.  Fitch concurrently
downgraded the Insurer Financial Strength rating on PXRE's lead
operating subsidiaries, PXRE Reinsurance Ltd. and PXRE
Reinsurance Company, to 'BB+' from 'BBB+'.

These ratings remain on Rating Watch Negative:

   PXRE Group Ltd.

      -- Issuer Default Rating: 'BB'.

   PXRE Capital Trust I

      -- US$100 million trust preferred securities 8.85% due
         Feb. 1, 2027: 'B+'.

   PXRE Reinsurance Company and PXRE Reinsurance Ltd.

      -- Insurer financial strength 'BB+'.




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


YPF SA: Bolivian Unit's Hedge Contract with Petrobras Ended
-----------------------------------------------------------
Petroleo Brasileiro has ended its natural gas price volatility
reduction agreement or PVRA with Petrolera Andina, Repsol YPF's
unit in Bolivia, Business News Americas reports.

Petroleo Brasileiro said in a statement that PVRA was initially
designed to reduce the company's exposure to possible excessive
variations in the prices paid for Bolivian natural gas purchased
through the Gas Supply Agreement.

According to the statement, the agreement was terminated in
light of changes made to Bolivian regulations and because the
accord was construed differently by both firms.

Petroleo Brasileiro is entitled to a US$41.3 million
reimbursement, while US$76.7 million corresponding to the
remaining PVRA credit will be identified as a loss in the third
quarter of 2006, BNamericas relates.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
June 9, 2006, Moody's Investors Service upgraded YPF Sociedad
Anonima's rating under the revised foreign currency ceilings:

   -- Foreign Currency Corporate Family Rating: to B2 from B3;
       Outlook remains Negative.

These five ratings are affirmed:

   -- Issuer Rating (domestic currency): Baa2/NEG;

   -- Senior Unsecured Rating (foreign currency): Ba2/NEG;

   -- Senior Unsecured Rating MTN (foreign currency): Ba2/NEG;

   -- Senior Secured Shelf Rating (foreign currency):
      (P)Ba2/NEG; and

   -- Senior Unsecured Shelf Rating (foreign
      currency):(P)Ba2/NEG.


* BOLIVIA: Will Draft Joint Venture Contract with Jindal Steel
--------------------------------------------------------------
The government of Bolivia has signed an accord with India's
Jindal Steel & Power to draft a joint venture contract in 30
days for the operation of the El Mutun iron ore deposit and
steel complex, ABI, Bolivia's state news service, reports.

El Mutun is in Bolivia's Santa Cruz department.  It is one of
the world's largest iron ore deposits, having 40Bt of reserves
over 60 sq km and an average content of 50% iron.

Business News Americas relates that under the agreement, the
government and Jindal will each receive US$200 million yearly in
revenues from the 40-year venture.

According to ABI, the joint venture will allow Bolivia to add
value to its mineral exports for the first time.  ABI described
the signing as a transcendental step that ends rumors on the
failure of the two parties' negotiations.

BNamericas says that Jindal won the project on June 1.  The
company presented its technical plan to develop El Mutun to the
finance ministry.  Jindal is expected to invest US$2.3 billion
in the project within eight years.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO BRADESCO: Fitch Ups Foreign Curr. Issuer Rating to BB+
------------------------------------------------------------
Fitch Ratings has taken these rating actions on Banco Bradesco
S.A.:

   -- Foreign Currency Issuer Default Rating upgraded to
      'BB+' from 'BB', Outlook remains Stable;

   -- Short-term Foreign Currency rating affirmed at 'B';

   -- Local Currency Issuer Default Rating affirmed at 'BBB-',
      Outlook Stable;

   -- Short-term Local Currency rating affirmed at 'F3';

   -- Individual rating affirmed at 'B/C';

   -- Support rating affirmed at '4';

   -- National Long-term affirmed at 'AA+(bra)', Outlook remains
      Stable; and

   -- National Short-term affirmed at 'F1+(bra)'.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


BANCO DO BRASIL: Fitch Affirms Foreign Currency Rating at B
------------------------------------------------------------
Fitch Ratings has taken these rating actions on Banco do Brasil
S.A.:

   -- Foreign Currency Issuer Default Rating upgraded to
      'BB+' from 'BB', Outlook remains Stable;

   -- Short-term Foreign Currency rating affirmed at 'B';

   -- Local Currency Issuer Default Rating affirmed at 'BBB-',
      Outlook Stable;

   -- Short-term Local Currency rating affirmed at 'F3';

   -- Individual rating affirmed at 'C/D';

   -- Support rating affirmed at '4';

   -- National Long-term affirmed at 'AA(bra)', Outlook remains
      Stable; and

   -- National Short-term affirmed at 'F1+(bra)'.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


BANCO DO ESTADO: Fitch Raises Foreign Curr. Issuer Rating to BB+
----------------------------------------------------------------
Fitch Ratings has taken these rating actions on Banco do Estado
de Sao Paulo S.A. aka Banespa:

   -- Foreign Currency Issuer Default Rating upgraded to
      'BB+' from 'BB', Outlook remains Stable;

   -- Short-term Foreign Currency rating affirmed at 'B';

   -- Local Currency Issuer Default Rating affirmed at 'BBB-',
      Outlook Stable;

   -- Short-term Local Currency rating affirmed at 'F3';

   -- Individual rating affirmed at 'C';

   -- Support rating affirmed at '3';

   -- National Long-term affirmed at 'AA+(bra)', Outlook remains
      Stable; and

   -- National Short-term affirmed at 'F1+(bra)'.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


BANCO ITAU BBA: Fitch Affirms Short-Term Currency Rating at B
-------------------------------------------------------------
Fitch Ratings has taken these rating actions on Banco Itau BBA
S.A.:

   -- Foreign Currency Issuer Default Rating upgraded to
      'BB+' from 'BB', Outlook remains Stable;

   -- Short-term Foreign Currency rating affirmed at 'B';

   -- Local Currency Issuer Default Rating affirmed at 'BBB-',
      Outlook Stable;

   -- Short-term Local Currency rating affirmed at 'F3';

   -- Individual rating affirmed at 'B/C';

   -- Support rating affirmed at '4';

   -- National Long-term affirmed at 'AA+(bra)', Outlook remains
      Stable; and

   -- National Short-term affirmed at 'F1+(bra)'.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


BANCO ITAU: Fitch Upgrades Foreign Curr. Rating to BB+ from BB
--------------------------------------------------------------
Fitch Ratings has taken these rating actions on Banco Itau S.A.:

   -- Foreign Currency Issuer Default Rating upgraded to
      'BB+' from 'BB', Outlook remains Stable;

   -- Short-term Foreign Currency rating affirmed at 'B';

   -- Local Currency Issuer Default Rating affirmed at 'BBB-',
      Outlook Stable;

   -- Short-term Local Currency rating affirmed at 'F3';

   -- Individual rating affirmed at 'B/C';

   -- Support rating affirmed at '4';

   -- National Long-term affirmed at 'AA+(bra)', Outlook remains
      Stable; and

   -- National Short-term affirmed at 'F1+(bra)'.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


BANCO ITAU HOLDING: Fitch Affirms Foreign Currency Rating at B
--------------------------------------------------------------
Fitch Ratings has taken these rating actions on Banco Itau
Holding Financiera S.A.:

   -- Foreign Currency Issuer Default Rating upgraded to
      'BB+' from 'BB', Outlook remains Stable;

   -- Short-term Foreign Currency rating affirmed at 'B';

   -- Local Currency Issuer Default Rating affirmed at 'BBB-',
      Outlook Stable;

   -- Short-term Local Currency rating affirmed at 'F3';

   -- Individual rating affirmed at 'B/C';

   -- Support rating affirmed at '4';

   -- National Long-term affirmed at 'AA+(bra)', Outlook remains
      Stable; and

   -- National Short-term affirmed at 'F1+(bra)'.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


BANCO PACTUAL: Fitch Puts BB Foreign Curr. Rating on WatchPos
-------------------------------------------------------------
Fitch Ratings has placed Banco Pactual S.A.'s 'BB' foreign
currency issuer default rating on Rating Watch Positive, pending
acquisition by UBS A.G.  Due to the constraint by the country
ceiling previously, it was not put on Watch Positive when the
local currency issuer default rating was first placed on Watch
Positive on May 10, 2006.

Fitch has also taken these rating actions on the bank:

   -- Short-term Foreign and Local Currency ratings affirmed
      at 'B';

   -- local currency issuer default rating 'BB' remain on Watch
      Positive;

   -- Support '5' remain on Watch Positive;

   -- Individual rating affirmed at 'C/D'; and

   -- National Long-term 'A+(bra) and National Short-term
      'F1(bra)' remain on Watch Positive.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


BANCO SAFRA: Fitch Upgrades Foreign Curr. Rating to BB+ from BB
---------------------------------------------------------------
Fitch Ratings has taken these rating actions on Banco Safra
S.A.:

   -- foreign currency issuer default rating upgraded to 'BB+'
      from 'BB', Outlook remains Stable;

   -- Short-term foreign currency rating affirmed at 'B';

   -- Local Currency issuer default rating affirmed at 'BB+',
      Outlook remains Stable

   -- Short-term local currency rating affirmed at 'B';

   -- Individual rating affirmed at 'C';

   -- Support affirmed at '4';

   -- National Long-term rating affirmed at 'AA(bra)',
      Outlook remains Stable; and

   -- National Short-term rating affirmed at 'F1+(bra)'.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


BANCO VOTORANTIM: Fitch Ups Foreign Curr. Rating to BB+ from BB
---------------------------------------------------------------
Fitch Ratings has taken these rating actions on Banco Votorantim
S.A.:

   -- foreign currency issuer default rating upgraded to 'BB+'
      from 'BB', Outlook remains Stable;

   -- Short-term foreign currency rating affirmed at 'B';

   -- Local Currency issuer default rating affirmed at 'BBB-',
      Outlook remains Stable;

   -- Short-term local currency rating affirmed at 'F3';

   -- Individual rating affirmed at 'C/D';

   -- Support affirmed at '3';

   -- National Long-term rating affirmed at 'AA+(bra)',
      Outlook remains Stable; and

   -- National Short-term rating affirmed at 'F1+(bra)'.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


BLOUNT INT: Equity Deficit Narrows to US$122.81 Mil. at June 30
---------------------------------------------------------------
Blount International, Inc., disclosed financial results for the
second quarter ended June 30, 2006.  Sales from continuing
operations for the quarter were US$165.1 million compared to
US$177.6 million in last year's second quarter.  Operating
income from continuing operations was US$24.0 million compared
to US$29.0 million in the second quarter of 2005.

Sales and operating income from continuing operations exclude
the results of the Lawnmower segment, which is now classified as
a discontinued operation.  Income from continuing operations in
this year's second quarter was US$10.3 million, compared to
US$15.7 million in the comparable period last year.  The results
of the second quarter as compared to last year's were adversely
impacted by foreign currency exchange rates and an increase in
the Company's effective book income tax rate from 18.3% in 2005
to 34.7% in 2006.  Lower shipments of timber harvesting
equipment affected the financial results as compared to last
year's second quarter.  This year's second quarter net income
was positively impacted by US$1.0 million from an insurance
claim.

Commenting on the second quarter, James S. Osterman, Chairman
and Chief Executive Officer, stated: "Our sales performance for
the second quarter was mixed.  Our largest business, the Outdoor
Products segment, continued to post sales in line with the
record levels achieved in 2005, but sales of the Industrial and
Power Equipment segment were impacted by softer market
conditions as compared to last year's second quarter.  Although
logging activity in North America remained stable, logging
contractors postponed equipment purchases, in part due to their
rising operating costs.

Looking ahead to the second half of 2006, we are anticipating
similar market conditions to those experienced in the first
half.  Sales of the Outdoor Products segment should continue to
be equal to or slightly higher than last year's second half
sales.  Sales for the Industrial and Power Equipment segment are
expected to be below last year's for the remainder of 2006 given
the current North American market conditions.  We expect the
softness in North America will be somewhat offset by continued
expansion into international markets through our agreements with
Caterpillar.  In the second quarter, we purchased the technology
for the design and manufacture of a line of harvester heads for
the international markets to broaden cutting capability on our
timber harvesting equipment.  For the full year, we expect sales
from continuing operations to range between US$670 million and
US$690 million.

Operating income from continuing operations is estimated to
range between US$97 million and US$101 million.  The operating
income range includes a non-recurring second half expense of
approximately US$3.7 million in conjunction with the redesign of
the Company's pension plans to reduce future costs.  The
operating income range also includes US$3.0 million in stock-
based compensation expense."

                      Segment Results

The Outdoor Products segment reported second quarter sales of
US$114.7 million compared to US$114.1 million in last year's
second quarter.  Sales order backlog increased to US$75.7
million in the second quarter from US$70.3 million in this
year's first quarter and compares to US$82.6 million in last
year's second quarter.  Geographically, sales were strongest in
the domestic markets, with year-over-year sales growth of 7%
achieved in the second quarter.  Sales to original equipment
manufacturers increased 5% from last year's second quarter.  
Segment contribution to operating income was US$23.1 million in
this year's second quarter compared to US$26.8 million in last
year's second quarter.  The year-over-year decrease in segment
contribution to operating income includes a US$2.4 million
negative impact from movement in foreign currency exchange
rates.

The Industrial and Power Equipment segment's second quarter
sales were US$50.6 million, up slightly from the first quarter
of this year, but below last year's second quarter amount of
US$63.7 million.  Segment contribution to operating income was
US$4.7 million compared to US$6.4 million in last year's second
quarter.  A decline in shipments of timber-harvesting equipment
was the primary reason for both the sales and contribution
declines from last year's second quarter.  Sales of Caterpillar
branded product increased 25% from this year's first quarter but
were below last year's second quarter, consistent with the sales
trends of Blount branded products.  The weaker demand and
associated orders for our timber-harvesting equipment within
North America reflect customers' concerns about the near term
outlook for logging activity and higher operating costs.  
Backlog for this segment as of June 30 was US$37.0 million
compared to US$38.0 million in this year's first quarter and
US$74.4 million in last year's second quarter.

                   Discontinued Operations

On July 27, 2006, the Company completed the sale of certain
assets and liabilities of its Lawnmower segment to Husqvarna.  
The sale resulted in preliminary gross proceeds of US$33.9
million, which the Company utilized to reduce long term debt to
US$374 million as of July 27, 2006.  As a result of this sale,
the Lawnmower segment has been reclassified as a discontinued
operation for all periods presented.

In the second quarter, net loss from discontinued operations was
US$0.9 million compared to net income of US$1.4 million last
year.  This year's net loss includes US$1.5 million of after-tax
expense for employee termination costs.  In the third quarter of
this year, the Company estimates that it will record net income
from discontinued operations to reflect the gain on the sale of
assets and operating activity for the period of ownership.

                    Pension Plan Revisions

The Company has announced a pension plan redesign for existing
employees effective Jan. 1, 2007.  Upon implementation, the
redesign will freeze benefits earned under the Company's defined
benefit plan and increase contributions paid to the Company's
401(k) defined contribution plan.  This redesign will result in
an estimated reduction to the Company's pension expense between
US$16 million and US$23 million over the next five years.  In
the second half of 2006, the Company will record a non-recurring
expense of approximately US$3.7 million in conjunction with the
redesign.

A full-text copy of the Quarterly Report in Form 10-Q filed with
the US Securities and Exchange Commission is available for free
at http://ResearchArchives.com/t/s?fdb

Blount International, Inc. (NYSE:BLT) -- http://www.blount.com/
-- is a diversified international company operating in three
principal business segments:  Outdoor Products, Industrial and
Power Equipment and Lawnmower.  Blount sells its products in
more than 100 countries around the world.  Blount has one of its
manufacturing locations in Curitiba, Brazil.

As of June 30, 2006, Blount International's equity deficit
narrowed to US$122.81 million from a US$145.18 million deficit
at Dec. 31, 2005.


COMPANHIA PETROLIFERA: Fitch Ups Foreign Currency Rating to BB+
---------------------------------------------------------------
Fitch Ratings has upgraded Companhia Petrolifera Marlim's
foreign currency issuer default rating to 'BB+' with a stable
outlook from 'BB-' with a positive outlook.  Fitch has also
upgraded the company's secured medium-term notes to 'BB+' from
'BB-'.

Fitch Ratings has upgraded the foreign currency issuer default
ratings of selected Latin American corporates.  These rating
actions follow Fitch's upward revision of certain country
ceilings.

Fitch has recently updated the methodology for assigning country
ceilings as part of Fitch's regular and on-going review of its
criteria and methodology.  As a result of the review of the
country ceiling methodology, the country ceilings on 40
countries out of a total of 99 have been revised upwards.  The
upward revision to Country Ceilings since they were first
assigned more than two years ago reflects greater liberalization
of capital and exchange controls in many 'emerging market'
economies, such as Russia and Brazil, the strengthening of
monetary and exchange rate regimes and the deepening integration
of emerging markets in the global economy.

Country ceiling ratings reflect Fitch's judgment regarding the
risk of exchange controls being imposed by the sovereign
authorities that would prevent or materially impede the private
sector's ability to convert local currency into foreign currency
and transfer to nonresident creditors -- transfer and
convertibility or T&C risk. Given the close correlation between
sovereign credit and T&C risks, ratings at the country ceiling
may exhibit a greater degree of volatility than would normally
be associated with ratings at that level.


COMPANHIA SIDERURGICA: Fitch Ups Curr. Rating to BBB- from BB+
--------------------------------------------------------------
Fitch Ratings has upgraded Companhia Siderurgica Nacional aka
CSN's foreign currency issuer default rating to 'BBB-'from
'BB+'.  Its senior unsecured notes and perpetual bond ratings
were also upgraded to 'BBB-' from 'BB+'.

Fitch Ratings has upgraded the foreign currency issuer default
ratings of selected Latin American corporates.  These rating
actions follow Fitch's upward revision of certain country
ceilings.

Fitch has recently updated the methodology for assigning country
ceilings as part of Fitch's regular and on-going review of its
criteria and methodology.  As a result of the review of the
country ceiling methodology, the country ceilings on 40
countries out of a total of 99 have been revised upwards.  The
upward revision to Country Ceilings since they were first
assigned more than two years ago reflects greater liberalization
of capital and exchange controls in many 'emerging market'
economies, such as Russia and Brazil, the strengthening of
monetary and exchange rate regimes and the deepening integration
of emerging markets in the global economy.

Country ceiling ratings reflect Fitch's judgment regarding the
risk of exchange controls being imposed by the sovereign
authorities that would prevent or materially impede the private
sector's ability to convert local currency into foreign currency
and transfer to nonresident creditors -- transfer and
convertibility or T&C risk.  Given the close correlation between
sovereign credit and T&C risks, ratings at the country ceiling
may exhibit a greater degree of volatility than would normally
be associated with ratings at that level.


DURA AUTOMOTIVE: Hires Miller Buckfire as Restructuring Advisor
---------------------------------------------------------------
DURA Automotive Systems Inc. has turned to Miller Buckfire & Co.
for help on its financial debt restructuring, Reuters reports.

Company spokesman Robert Mead told Reuters that Miller Buckfire
was hired last week to evaluate DURA's capital structure.  Mr.
Mead said that while it was too early to speculate on how the
restructuring will be implemented, the Company intends to
maintain sufficient liquidity to operate its business during the
process.

DURA had incurred a US$131.3 million net loss on US$573.3
million of net revenues for the three months ended July 2, 2006.  
In conjunction with the release of its second quarter financial
results, Larry Denton, Chairman and Chief Executive Officer of
DURA announced that the Company intends to reduce its labor
force by 510 employees by year end.  The planned job cuts is in
addition to DURA's 50 cubed restructuring plan, which is focused
on structuring the Company's operations.

Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries including Brazil.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 1, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'.  The
rating outlook is negative.


GOL LINHAS: Fitch Ups Foreign Currency Default Rating to BB+
------------------------------------------------------------
Fitch Ratings has upgraded GOL Linhas Aereas Inteligentes S.A's
foreign currency issuer default rating to 'BB+' from 'BB'.  Its
perpetual bond ratings were also upgraded to 'BB+' from 'BB'.

Fitch Ratings has upgraded the foreign currency issuer default
ratings of selected Latin American corporates.  These rating
actions follow Fitch's upward revision of certain country
ceilings.

Fitch has recently updated the methodology for assigning country
ceilings as part of Fitch's regular and on-going review of its
criteria and methodology.  As a result of the review of the
country ceiling methodology, the country ceilings on 40
countries out of a total of 99 have been revised upwards.  The
upward revision to Country Ceilings since they were first
assigned more than two years ago reflects greater liberalization
of capital and exchange controls in many 'emerging market'
economies, such as Russia and Brazil, the strengthening of
monetary and exchange rate regimes and the deepening integration
of emerging markets in the global economy.

Country ceiling ratings reflect Fitch's judgment regarding the
risk of exchange controls being imposed by the sovereign
authorities that would prevent or materially impede the private
sector's ability to convert local currency into foreign currency
and transfer to nonresident creditors -- transfer and
convertibility or T&C risk. Given the close correlation between
sovereign credit and T&C risks, ratings at the country ceiling
may exhibit a greater degree of volatility than would normally
be associated with ratings at that level.


NOSSA CAIXA: Mulls Over Two Options for Unit Concession
-------------------------------------------------------
Rubens Sardenberg, the CFO of Banco Nossa Caixa SA, told
Business News Americas that the bank is considering two
different choices for its savings bonds unit's concession.

BNamericas relates that Nossa Caixa cancelled an auction for a
controlling stake in the savings bonds unit in May.

Mr. Sardenberg told BNamericas, "We can either redo the process,
saving the approval stage from [insurance regulator] Susep until
the very end, or we can enter a partnership without an auction."

The report says that Nossa Caixa scheduled an auction in June
for a 51% stake in its savings bonds unit.  The minimum price
was set at BRL23.9 million.  After the auction, an offering of
up to 6% would have been made to the bank's shareholders, with
the price per share depending on the size of the winning bid for
the 51% stake.  However, Susep determined that out of the three
bidders, Icatu Hartford met minimum capital requirements while
Brazilian units of Spain's insurer Mapfre and US insurer MetLife
did not meet the conditions.

Mr. Sardenberg told BNamericas that if there would be another
Nossa Caixa auction, the winner will be required to gain
approval from Susep.  However, Nossa Caixa would first screen
potential bidders.  The bank had originally did it the other way
around to avoid any objections to the process.

BNamericas underscores that Mr. Sardenberg said that in the case
of a partnership with an insurer, Nossa Caixa would select the
firm based on the requirements it would set.

No date had been set for a final decision, as Nossa Caixa
prefers to wait for the outcome of the upcoming state and
federal elections on Oct. 1, BNamericas states, citing Mr.
Sardenberg.

                        *    *    *

On Oct. 19, 2005, Moody's Investors Service upgraded Banco Nossa
Caixa S.A.'s long-term foreign currency deposit rating to B1
from B2 with a positive outlook.

At the same time, the ratings agency upgraded Banco Nossa
Caixa's long-term foreign currency debt rating to Ba1 with a
stable outlook.

The action followed Moody's upgrade of Brazil's foreign currency
ceiling for deposits to B1, from B2, and the foreign currency
country ceiling for bonds and notes to Ba3, from B1. Moody's
said the country ceilings have a positive outlook.


PACTUAL OVERSEAS: Fitch Puts BB Foreign Curr. Rating on WatchPos
----------------------------------------------------------------
Fitch Ratings has placed Pactual Overseas Corp.'s 'BB' foreign
currency issuer default rating on Rating Watch Positive, pending
acquisition by UBS A.G.  Due to the constraint by the country
ceiling previously, it was not put on Watch Positive when the
local currency issuer default rating was first placed on Watch
Positive on May 10, 2006.

Fitch has also taken these rating actions on the bank:

   -- Short-term foreign and local currency ratings affirmed
      at 'B'; and

   -- Local currency issuer default rating 'BB' and
      Support '4' remain on Watch Positive.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


PETROLEO BRASILEIRO: Ends Hedge Pact With Empresa Petrolera
-----------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras has terminated the hedge
agreement, the so-called Natural Gas Price Volatility Reduction
Agreement or PVRA, it signed in October 2002 with Empresa
Petrolera Andina.  The purpose of the agreement was to reduce
the company's exposure to possible excessive variations in the
prices paid for Bolivian natural gas purchased through the Gas
Supply Agreement or GSA.

Agreement termination was decided after changes were made to
Bolivian regulations.  Petrobras had been evaluating the
possible economic and legal impacts these changes had on the
PVRA.  Petrobras and Andina construed the agreement differently
and decided to terminate it. Petrobras now is entitled to a
restitution of US$41.3 million.

Pursuant to the Brazilian accounting principles, the remaining
PVRA credit, which is US$76.7 million, will be identified as a
loss in the third quarter 2006.

                  About Petroleo Brasileiro

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+'


PETROLEO BRASILEIRO: Inks Dry Dock Pact with Two Companies
----------------------------------------------------------
Petroleo Brasileiro S.A., aka Petrobras, with Rio Bravo
Investimentos, and Estaleiro Rio Grande signed on Aug. 17, 2006,
an agreement for the deployment of the dry dock -- a project
that will be used to build and repair semi-submersible oil
production platforms.  The infrastructure construction work will
generate 350 new jobs, and it is expected that 4,000 work posts
will be created for new platform construction after the dry dock
is ready, which is projected to be in two years.

Accompanied by Petrobras' Service area director, Renato Duque,
Brazil's President, Luis Inacio Lula da Silva, visited the dry
dock job site and inspected the construction work of the P-53
platform's modules, in the city of Rio Grande.

Aimed for use in the Marlim Leste field, which is in the Campos
Basin, the P-53 will be able to produce 180,000 barrels of oil
and 6,000,000 cubic meters of gas a day.  Its construction will
generate 4,000 direct jobs.

Estaleiro Rio Grande won the bid for BRL222,890.  For Brazil and
Petrobras, having a dry dock available is a strategic issue, as
the country doesn't have facilities of the sort available to it
at a size that allows for major semi-submersible platform
maintenance and repairs.  For this reason, these services have
been carried out abroad, leading the company to incur
significant cost increases and preventing it from creating jobs
and income in the internal market.

In addition to the dock, which will measure 130m x 140m and have
a draft of 13.8 meters, the infrastructure will also include a
wharf, steel processing workshops, and support areas.  The dry
dock construction work will begin in late October and is
expected to be concluded in two years.  The project will be
deployed in the city of Rio Grande.

It is projected that four large semi-submersible or mono-column
floating platform hulls will be built in a 12-year period.  The
P-55 and the P-56 platforms, intended for the Roncador and
Marlim Sul fields, both in the Campos Basin, are among the
projects that may be undertaken at the shipyard.

Petrobras will not operate the project, the infrastructure for
which will be made available to companies that win future
platform bids.

                  About Petroleo Brasileiro

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+'


RIPASA SA: Fitch Ups Foreign Currency Issuer Rating to BB+
----------------------------------------------------------
Fitch Ratings has upgraded Ripasa S.A. Celulose e Papel's
foreign currency issuer default rating to 'BB+' from 'BB'.  

Fitch Ratings has upgraded the foreign currency issuer default
ratings of selected Latin American corporates.  These rating
actions follow Fitch's upward revision of certain country
ceilings.

Fitch has recently updated the methodology for assigning country
ceilings as part of Fitch's regular and on-going review of its
criteria and methodology.  As a result of the review of the
country ceiling methodology, the country ceilings on 40
countries out of a total of 99 have been revised upwards.  The
upward revision to Country Ceilings since they were first
assigned more than two years ago reflects greater liberalization
of capital and exchange controls in many 'emerging market'
economies, such as Russia and Brazil, the strengthening of
monetary and exchange rate regimes and the deepening integration
of emerging markets in the global economy.

Country ceiling ratings reflect Fitch's judgment regarding the
risk of exchange controls being imposed by the sovereign
authorities that would prevent or materially impede the private
sector's ability to convert local currency into foreign currency
and transfer to nonresident creditors -- transfer and
convertibility or T&C risk. Given the close correlation between
sovereign credit and T&C risks, ratings at the country ceiling
may exhibit a greater degree of volatility than would normally
be associated with ratings at that level.


SANTANDER BRASIL: Fitch Ups Foreign Curr. Issuer Rating to BB+
--------------------------------------------------------------
Fitch Ratings has taken these rating actions on Banco Santander
Brasil S.A.:

   -- Foreign Currency Issuer Default Rating upgraded to
      'BB+' from 'BB', Outlook remains Stable;

   -- Short-term Foreign Currency rating affirmed at 'B';

   -- Local Currency Issuer Default Rating affirmed at 'BBB-',
      Outlook Stable;

   -- Short-term Local Currency rating affirmed at 'F3';

   -- Individual rating affirmed at 'C/D';

   -- Support rating affirmed at '3';

   -- National Long-term affirmed at 'AA+(bra)', Outlook remains
      Stable; and

   -- National Short-term affirmed at 'F1+(bra)'.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


SANTANDER MERIDIONAL: Fitch Upgrades Foreign Curr. Rating to BB+
----------------------------------------------------------------
Fitch Ratings has taken these rating actions on Banco Santander
Meridional S.A.:

   -- Foreign Currency Issuer Default Rating upgraded to
      'BB+' from 'BB', Outlook remains Stable;

   -- Short-term Foreign Currency rating affirmed at 'B';

   -- Local Currency Issuer Default Rating affirmed at 'BBB-',
      Outlook Stable;

   -- Short-term Local Currency rating affirmed at 'F3';

   -- Individual rating affirmed at 'D';

   -- Support rating affirmed at '4';

   -- National Long-term affirmed at 'AA+(bra)', Outlook remains
      Stable; and

   -- National Short-term affirmed at 'F1+(bra)'.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


TELE NORTE: Fitch Raises Foreign Currency Issuer Rating to BB+
--------------------------------------------------------------
Fitch Ratings has upgraded Tele Norte Leste Participacoes S.A.'s
foreign currency issuer default rating to 'BB+' from 'BB'.  

Fitch Ratings has upgraded the foreign currency issuer default
ratings of selected Latin American corporates.  These rating
actions follow Fitch's upward revision of certain country
ceilings.

Fitch has recently updated the methodology for assigning country
ceilings as part of Fitch's regular and on-going review of its
criteria and methodology.  As a result of the review of the
country ceiling methodology, the country ceilings on 40
countries out of a total of 99 have been revised upwards.  The
upward revision to Country Ceilings since they were first
assigned more than two years ago reflects greater liberalization
of capital and exchange controls in many 'emerging market'
economies, such as Russia and Brazil, the strengthening of
monetary and exchange rate regimes and the deepening integration
of emerging markets in the global economy.

Country ceiling ratings reflect Fitch's judgment regarding the
risk of exchange controls being imposed by the sovereign
authorities that would prevent or materially impede the private
sector's ability to convert local currency into foreign currency
and transfer to nonresident creditors -- transfer and
convertibility or T&C risk. Given the close correlation between
sovereign credit and T&C risks, ratings at the country ceiling
may exhibit a greater degree of volatility than would normally
be associated with ratings at that level.


TELEMAR NORTE: Fitch Raises Foreign Curr. Issuer Rating to BB+
--------------------------------------------------------------
Fitch Ratings has upgraded Telemar Norte Leste S.A.'s foreign
currency issuer default rating to 'BB+' from 'BB'.  

Fitch Ratings has upgraded the foreign currency issuer default
ratings of selected Latin American corporates.  These rating
actions follow Fitch's upward revision of certain country
ceilings.

Fitch has recently updated the methodology for assigning country
ceilings as part of Fitch's regular and on-going review of its
criteria and methodology.  As a result of the review of the
country ceiling methodology, the country ceilings on 40
countries out of a total of 99 have been revised upwards.  The
upward revision to Country Ceilings since they were first
assigned more than two years ago reflects greater liberalization
of capital and exchange controls in many 'emerging market'
economies, such as Russia and Brazil, the strengthening of
monetary and exchange rate regimes and the deepening integration
of emerging markets in the global economy.

Country ceiling ratings reflect Fitch's judgment regarding the
risk of exchange controls being imposed by the sovereign
authorities that would prevent or materially impede the private
sector's ability to convert local currency into foreign currency
and transfer to nonresident creditors -- transfer and
convertibility or T&C risk. Given the close correlation between
sovereign credit and T&C risks, ratings at the country ceiling
may exhibit a greater degree of volatility than would normally
be associated with ratings at that level.


UNIAO DE BANCOS: Fitch Ups Foreign Curr. Rating to BB+ from BB
--------------------------------------------------------------
Fitch Ratings has taken these rating actions on Unibanco-Uniao
de Bancos Brasileiros S.A.:

   -- foreign currency issuer default rating upgraded to 'BB+'
      from 'BB', Outlook remains Stable;

   -- Short-term foreign currency rating affirmed at 'B';

   -- Local Currency issuer default rating affirmed at 'BB+',
      Outlook remains Stable;

   -- Short-term local currency rating affirmed at 'B';

   -- Individual rating affirmed at 'C';

   -- Support affirmed at '4';

   -- National Long-term rating affirmed at 'AA(bra)',
      Outlook remains Stable; and

   -- National Short-term rating affirmed at 'F1+(bra)'.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


* BRAZIL: IDB Okays US$9-Mil. Fund for 2 Equity Investment Funds
----------------------------------------------------------------
The Inter-American Development Bank's Multilateral Investment
Fund or MIF approved a financing for two equity investment funds
in Brazil for a total of US$9 million and technical assistance
grants to support development of the Brazilian venture capital
industry.

"These operations will foster further development of the venture
capital industries in Brazil, providing examples of how the
financing of small companies in the early and medium stages
through venture capital produces an impact on the growth and
organization of these companies," said MIF Team Leader Susana
Garcia-Robles.

                 FIPAC Investment Growth Fund

A MIF investment of US$5 million will support the capitalization
of FIPAC, an investment growth fund for Brazilian technology-
based small and medium-sized companies.  A technical assistance
grant of US$100,000 will help monitor the investment by
performing three evaluations during the life of this fund,
identifying best practice cases and training junior staff.

The BRL60 million to BRL80 million (US$26.6 to 35.5 million)
fund will provide equity and convertible debt financing,
financial and technical advisory services, and value-added
governance to 10-15 companies with potential to consolidate and
exit via strategic sales or the Bovespa Mais, a new initiative
launched by the Sao Paulo Stock Exchange market at the beginning
of 2006.

The fund portfolio will have up to 70% invested in the
technology and pharmaceutical sectors, with a 30% dedicated to
other sectors, to improve diversification.

The fund will be managed by Decisao Gestao de Fundos Ltda., an
independent asset management firm exclusively dedicated to
venture capital/private equity funds, established in 2001.

               Stratus VC III Investment Fund

A MIF investment of US$4 million and technical cooperation for
US$100,000 will allow the Stratus VCIII fund -- managed by
Stratus Investimentos Ltda, an independent investment and
advisory firm established in 1998 -- to be a local vehicle for
small and medium-sized Brazilian companies in the biomass,
biotechnology, biodiversity and environmental technologies
sectors.

This fund will provide equity and convertible debt financing,
along with financial and technical advisory services, to between
6 and 8 companies that currently have no access to long term
financing and to improve their operating standards.  Most of the
capital is expected to be invested in companies that already
have a proven concept and management, as well as positive cash
flow.  Companies in earlier stages are expected to account for
10 to 20% of the portfolio.

The Multilateral Investment Fund is an autonomous fund,
administered by the IDB that provides grants, investments and
loans to promote private sector growth, labor force training and
small enterprise modernization in Latin America and the
Caribbean.

Financing for these operations comes from MIF's Small Enterprise
Investment Fund and the Small Enterprise Development Facility.

                        *    *    *

Fitch Ratings assigned these ratings on Brazil:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BB+      Aug. 17, 2006
   Long Term IDR      BB-      Dec. 14, 2005
   Short Term IDR     B        Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating     BB-      Dec. 14, 2005


* BRAZIL: Fitch Upgrades Country Ceiling to BB+ from BB
-------------------------------------------------------
Fitch Ratings upgraded Brazil's country ceiling to BB+ from BB.  
This rating action is in conjunction with Fitch's upward
revision on the Country Ceilings for 40 countries.  The Country
Ceilings are an effective cap on all foreign currency ratings of
entities and transactions originating within each country.  
Fitch first publicly assigned Country Ceilings to countries with
Fitch-rated sovereign issuers in June 2004.

Country Ceilings capture the risk of exchange controls being
imposed that would prevent or materially impede the private
sector's ability to convert local into foreign currency and
transfer to non-resident creditors -- transfer and
convertibility or T&C risk.  Country Ceilings are not ratings
but rather a key analytical input and constraint on the foreign
currency ratings of entities and transactions originating in the
sovereign's jurisdiction.  Increased integration of national
economies into global production, trade and financial networks
has reduced T&C risk, as evidenced by the experience of
sovereign crises over the last decade.  However, T&C and country
risk more generally remain strongly correlated with sovereign
risk and hence Country Ceilings are "notched" from the foreign
currency rating of the sovereign.  The ratings of transactions
and non-sovereign entities that are above the sovereign and
capped at the Country Ceiling may consequently exhibit more
volatility at a given rating level than would normally be
expected.

The methodology for assigning Country Ceilings was recently
updated as part of Fitch's regular and on-going review of its
criteria and methodologies.  As a result of the review of the
Country Ceiling methodology, the Country Ceilings on 40
countries have been revised upwards (out of a total of 99).  The
average "notch" uplift has been increased by around 50 basis
points (or half of one "notch" on the rating scale) to a little
over one notch above the sovereign foreign currency issuer
rating.  The upward revision to Country Ceilings since they were
first assigned more than two years ago reflects greater
liberalization of capital and exchange controls in many
"emerging market" economies, such as Russia and Brazil, the
strengthening of monetary and exchange rate regimes and the
deepening integration of emerging markets in the global economy.

Corporations, financial institutions and structured transactions
can only be rated above the sovereign foreign currency issuer
rating and up to the Country Ceiling if their stand-alone credit
quality is judged to be sufficiently strong to withstand a
sovereign debt crisis.




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


A & H MFG: Final Shareholders Meeting Is Set for Sept. 7
--------------------------------------------------------
A & H Mfg. Co., Inc.'s shareholders will convene for a final
meeting on Sept. 7, 2006, at:

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

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

The liquidators can be reached at:

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


BLACK CALICO: Last Day to File Proofs of Claim Is on Sept. 11
-------------------------------------------------------------
Black Calico, Ltd.'s creditors are required to submit proofs of
claim by Sept. 11, 2006, to the company's liquidator:

           Maricorp Services Ltd.
           31 The Strand, 46 Canal Point Road
           P.O. Box 2075, George Town
           Grand Cayman, Cayman Islands

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

Black Calico's shareholders agreed on July 11, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

           J. Andrew Murray
           Maricorp Services Ltd.
           31 The Strand, 46 Canal Point Road
           P.O. Box 2075, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949 9710


CAMOMILLE GLOBAL: Holding Final Shareholders Meeting on Sept. 7
---------------------------------------------------------------
Camomille Global Opportunities Master Fund's shareholders will
convene for a final meeting on Sept. 7, 2006, at:

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

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

The liquidators can be reached at:

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


CQS (MASTER): Schedules Last Shareholders Meeting on Sept. 7
------------------------------------------------------------
CQS Equity Opportunities Master Fund Limited's shareholders will
convene for a final meeting on Sept. 7, 2006, at:

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

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

The liquidators can be reached at:

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


CQS (FEEDER): Shareholders Gather for a Final Meeting on Sept. 7
----------------------------------------------------------------
CQS Equity Opportunities Feeder Fund Limited's shareholders will
convene for a final meeting on Sept. 7, 2006, at:

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

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

The liquidators can be reached at:

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


DAWNING GLOBAL: Last Shareholders Meeting Is Set for Sept. 7
------------------------------------------------------------
Dawning Global Asset Funding I Limited's shareholders will
convene for a final meeting on Sept. 7, 2006, at:

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

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

The liquidators can be reached at:

           Emile Small
           Andrew Millar
           Maples Finance Limited
           P.O. Box 1093GT
           Grand Cayman, Cayman Islands


GARNET PROPERTIES: Final Shareholders Meeting Is Set for Sept. 7
----------------------------------------------------------------
Garnet Properties Corp.'s shareholders will convene for a final
meeting on Sept. 7, 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 liquidators can be reached at:

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


HAMMERMAN OPPORTUNITY: Proofs of Claim Must be Filed by Sept. 15
----------------------------------------------------------------
Hammerman Opportunity Fund, Ltd.'s creditors are required to
submit proofs of claim by Sept. 15, 2006, to the company's
liquidators:

           Kenneth M. Krys
           Joanna Chong
           RSM Cayman Islands
           P.O. Box 1370, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949-7100
           Fax: (345) 949-7120

Creditors who are not able to comply with the Sept. 15 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Hammerman Opportunity's shareholders agreed on July 4, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


HANABI LIMITED: Calls Shareholders for Final Meeting on Sept. 7
---------------------------------------------------------------
Hanabi Limited's shareholders will convene for a final meeting
on Sept. 7, 2006, at:

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

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

The liquidators can be reached at:

           Helen Allen
           Emile Small
           Maples Finance Limited
           P.O. Box 1093GT
           Grand Cayman, Cayman Islands


HECTOR FUNDING: Final Shareholders Meeting Scheduled for Sept. 7
----------------------------------------------------------------
Hector Funding II Limited's shareholders will convene for a
final meeting on Sept. 7, 2006, at:

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

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

The liquidators can be reached at:

           Helen Allen
           Emile Small
           Maples Finance Limited
           P.O. Box 1093GT
           Grand Cayman, Cayman Islands


JACKSON CREEK: Shareholders Gather for a Last Meeting on Sept. 7
----------------------------------------------------------------
Jackson Creek CDO, Ltd.'s shareholders will convene for a final
meeting on Sept. 7, 2006, at:

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

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

The liquidators can be reached at:

           Richard Gordon
           Phillip Hinds
           Maples Finance Limited
           P.O. Box 1093GT
           Grand Cayman, Cayman Islands


PIONEER 2002: Creditors Must File Proofs of Claim by Sept. 13
-------------------------------------------------------------
Pioneer 2002 Limited's creditors are required to submit proofs
of claim by Sept. 13, 2006, to the company's liquidators:

           Cereita Lawrence
           Jamal Young
           P.O. Box 1109, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949-7755
           Fax: (345) 949-7634

Creditors who are not able to comply with the Sept. 13 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Pioneer 2002's shareholders agreed on July 26, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


RET HOLDINGS: Invites Shareholders for Final Meeting on Sept. 7
---------------------------------------------------------------
Ret Holdings, Inc.'s shareholders will convene for a final
meeting on Sept. 7, 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 liquidators can be reached at:

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


RUBICON AUSTRALIA MASTER: Final Shareholders Meeting Is Sept. 7
---------------------------------------------------------------
Rubicon Australia Master Fund Limited's final shareholders
meeting will be at 11:00 a.m. on Sept. 7, 2006, at the company's
registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

           David A.K. Walker
           Lawrence Edwards
           Attn:  Richard Mottershead
           P.O. Box 258, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 914-8656
           Fax: (345) 949-4590


RUBICON AUSTRALIA OFFSHORE: Last Shareholders Meeting Is Sept. 7
----------------------------------------------------------------
Rubicon Australia Offshore Fund Limited's final shareholders
meeting will be at 11:00 a.m. on Sept. 7, 2006, at the company's
registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

           David A.K. Walker
           Lawrence Edwards
           Attn:  Richard Mottershead
           P.O. Box 258, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 914-8656
           Fax: (345) 949-4590




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


CONSTELLATION BRANDS: New Notes Cue Fitch to Affirm Ratings
-----------------------------------------------------------
Constellation Brands, Inc., (NYSE:STZ) sold US$700 million of
new 10-year senior notes (new notes) on Aug. 10, 2006.  The
7.250% new notes were priced at a spread of 245 basis points
over treasury to yield 7.389%.  The net proceeds are expected to
be used to repay bank debt.  Upon this new notes issuance, Fitch
has affirmed the existing ratings of STZ as:

    -- Issuer Default Rating (IDR) 'BB';
    -- Bank credit facilities 'BB';
    -- Senior unsecured notes 'BB';
    -- Senior subordinated notes 'BB-'.

The new notes lack typical high yield covenants such as debt
incurrence and restricted payment tests.  From Fitch's
perspective, the new notes reduce refinancing risk during the
next 10 years and enhance STZ's already adequate financial
flexibility.  Although the terms of the new notes are not as
restrictive as its existing senior notes, Fitch's 'BB' rating
for the new notes reflects STZ's improving credit profile.

STZ's contract as an importer for Grupo Modelo S.A. de C.V's
beers, including Corona, for the western U.S. was up for renewal
at the end of 2006.  On July 17, 2006, STZ announced a joint
venture with Grupo Modelo to be consummated on or after
Jan. 2, 2007, according to which Grupo Modelo's Mexican beer
portfolio will be imported and sold by the joint venture in the
entire U.S., including D.C. and Guam.  The joint venture may
also sell Tsingtao and St. Pauli Girl brands.  Fitch believes
that the removal of uncertainty regarding renewal of its
original contract comprising the western U.S. with Grupo Modelo
is credit positive, as is the expanded coverage to the entire
U.S. through the joint venture.

STZ's ratings reflect its leading market position and broad
portfolio of wine, beer and spirits in diversified global
markets.  STZ has pursued a strategy of growth through
acquisitions financed primarily with debt.  Recent acquisitions
include BRL Hardy Ltd. for US$1.4 billion in 2003, Robert
Mondavi Corp. for US$1.355 billion in 2004, and Vincor
International Inc. for US$1.4 billion in June 2006.  The company
has an excellent track record of integrating acquisitions.  It
has applied cash flow to support capital expenditures and debt
paydown.  STZ has generated significant free cash flow in each
of the past three years.  Operating EBITDA for the last 12
months, as of May 31, 2006, and pro forma for the Vincor
acquisition, was over US$900 million.

Pro forma for the Vincor acquisition, repayment of recently
matured senior notes, and new notes issuance, STZ's leverage
defined as total debt-to-operating EBITDA was 4.6 times, while
interest coverage was 3.2x, for the LTM ended May 31, 2006.  It
should be noted that STZ has five-year interest rate swap
agreements on US$1.2 billion of its floating-rate bank debt that
fixes LIBOR at an average rate of 4.1% through fiscal 2010.  STZ
maintains adequate liquidity through a US$500 million revolver,
which is expected to have no outstanding balance upon
application of net proceeds from the new notes issuance.

One of Constellation Brands wine and grape processing facilities
is located in Casablanca, Chile.


CONSTELLATION BRANDS: Moody's Rates US$500 Mil. Sr. Notes at Ba2
----------------------------------------------------------------
Moody's Investors Service assigned a (P)Ba2 rating to
Constellation Brands, Inc.'s new shelf and concurrently, a Ba2
rating to Constellation's new US$500 million senior unsecured
note, due 2016.  Constellation's existing ratings are not
affected by these actions, and have been affirmed.  The ratings
outlook remains negative.

The notes will be fully and unconditionally guaranteed by the
subsidiaries that are guarantors under Constellation Brands
senior bank credit facility.  Proceeds from the debt issuance
are to be used to reduce a corresponding amount of borrowings
under the revolver and permanent reduction in term loans.

Moody's assessment of Constellation's liquidity remains
unchanged given that free cash flow is expected to be pressured
throughout the next twelve months thus offsetting the benefits
of the refinancing.

Moody's previous rating action on Constellation was the
June 15, 2006, rating affirmation and assignment of bank
facility ratings following the Vincor acquisition.

Constellation's ratings remain constrained by its aggressive
acquisition strategy, which gives rise to considerable
integration and event risk and high pro forma financial
leverage.

Offsetting these risks are Constellation's scale and market
diversification, its broad portfolio of brands covering the
wine, spirits and imported beer categories at all price points,
franchise strength and growth potential, and solid profitability
and efficiency.  The ratings also consider the company's
demonstrated ability to quickly integrate acquisitions, repay
debt and restore credit metrics.

Leverage improvement following the most recent acquisition will
be further delayed due to the company's recently announced
restructuring program, which will reduce cash flow due to one
time cash charges of approximately US$40 million and increased
capital spending of approximately US$25 million.  These projects
are expected to reduce net operating expenses by approximately
US$5 million in fiscal 2008 and by more than US$15 million
annually beginning in fiscal 2009.

Despite the shortfall in expected free cash flow to debt levels,
the ratings affirmation reflects Moody's belief that such
tightening should be temporary given the longer term benefit of
the announced restructuring plan.  The negative ratings outlook
continues to reflect Moody's concern about Constellation's
aggressive acquisition strategy, integration risk, and the
resulting pressures on its financial and business profile.

Any further deviation from current financial or strategic
expectations could result in a downgrade of the ratings.  Upward
rating movement -- absent an exogenous event -- is unlikely at
this time. Stabilization of the outlook could result over time
from evidence that the company has successfully integrated
Vincor, sufficiently paid down debt and is committed to
sustained levels of improved credit metrics.

Ratings assigned:

Shelf ratings:

   * Senior unsecured at (P)Ba2

   * Subordinated at (P)Ba3

   * Preferred stock at (P)B1

   * Ba2 for the US$500 million senior unsecured debt issuance
     due 2016

Ratings affirmed:

   * US$3.5 billion secured bank credit facilities consisting of
     a US$1.2 billion Term Loan A due June 2011, a US$1.8
     billion Term Loan B due June 2013, and a US$500 million
     revolving credit facility due June 2011

   * US$3.5 billion senior secured bank facilities; Ba2

   * US$200 million 8% senior unsecured notes, due 2008, Ba2

   * GBP80 million 8.5% senior unsecured notes, due 2009, Ba2

   * GBP75 million 8.5% senior unsecured notes, due 2009, Ba2

   * US$250 million 8.125% senior subordinated notes, due 2012,
     Ba3

   * Ba2 Corporate Family Rating

   * The SGL-2 Speculative Grade Liquidity rating

Headquartered in Fairport, New York, Constellation Brands, Inc.,
is a leading international producer and marketer of beverage
alcohol brands with a broad portfolio across the wine, spirits,
and imported beer categories.  For the fiscal year ended
Feb. 28, 2006, consolidated net revenue was approximately US$4.6
billion.  Vincor International Inc. is one of the world's top
ten wine companies with revenue for the twelve months ended
Dec. 31, 2005, exceeding CDN$724 million.

One of Constellation Brands wine and grape processing facilities
is located in Casablanca, Chile.




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


BANCO DE BOGOTA: Pays for Right to Peruse Banco del Cafe's Books
----------------------------------------------------------------
Banco de Bogota, along with seven other banks, have paid the
COP50 million data room fee to look at the books of Banco del
Cafe aka Bancafe, according to a report by Portafolio.

The other interested firms include:

      -- Bancolombia,
      -- Colpatria,
      -- Davivienda,
      -- GNB Sudameris,
      -- Citigroup,
      -- Grupo Santander, and
      -- General Electric.

According to rumors, Spain's BBVA and Canada's Scotiabank are
potential bidders.

As reported in the Troubled Company Reporter-Latin America on
June 27, 2006, the Colombian government posted on its Web site
that Fogafin 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.

Private firms and investors will be invited to make their bids
on Oct. 12, Business News Americas relates.

                        *    *    *

As reported by Troubled Company Reporter on March 13, 2006,
Moody's Investors Service assigned a 'Ba3' long-term foreign
currency deposit rating on Banco de Bogota and changed the
outlook to stable from negative.  Moody's also assigned a 'D+'
bank financial strength rating on the company, while the outlook
remained stable.


BANCO DEL CAFE: Eight Banks Pay for Rights to Examine Books
-----------------------------------------------------------
About eight foreign and local banks have paid the COP50 million
data room fee to look at the books of Banco del Cafe aka
Bancafe, according to a report by Portafolio.

The eight interested firms include:

      -- Bancolombia,
      -- Banco de Bogota,
      -- Colpatria,
      -- Davivienda,
      -- GNB Sudameris,
      -- Citigroup,
      -- Grupo Santander, and
      -- General Electric.

Rumors say that Spain's BBVA and Canada's Scotiabank are
potential bidders.

As reported in the Troubled Company Reporter-Latin America on
June 27, 2006, the Colombian government posted on its Web site
that Fogafin 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.

Private firms and investors will be invited to make their bids
on Oct. 12, Business News Americas relates.

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: Pays for Right to Look at Banco del Cafe's Books
-------------------------------------------------------------
Bancolombia, along with seven other banks, have paid the COP50
million data room fee to look at the books of Banco del Cafe aka
Bancafe, according to a report by Portafolio.

The other interested firms include:

      -- Banco de Bogota,
      -- Colpatria,
      -- Davivienda,
      -- GNB Sudameris,
      -- Citigroup,
      -- Grupo Santander, and
      -- General Electric.

Rumors say that Spain's BBVA and Canada's Scotiabank are
potential bidders.

As reported in the Troubled Company Reporter-Latin America on
June 27, 2006, the Colombian government posted on its Web site
that Fogafin 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.

Private firms and investors will be invited to make their bids
on Oct. 12, Business News Americas relates.

                        *    *    *

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'.


* COLOMBIA: Fitch Raises Country Ceiling to BB+ from BB
-------------------------------------------------------
Fitch Ratings upgraded Colomnbia's country ceiling to BB+ from
BB.  This action follows Fitch's upward revision on the Country
Ceilings for 40 countries.  The Country Ceilings are an
effective cap on all foreign currency ratings of entities and
transactions originating within each country.  Fitch first
publicly assigned Country Ceilings to countries with Fitch-rated
sovereign issuers in June 2004.

Country Ceilings capture the risk of exchange controls being
imposed that would prevent or materially impede the private
sector's ability to convert local into foreign currency and
transfer to non-resident creditors -- transfer and
convertibility or T&C risk.  Country Ceilings are not ratings
but rather a key analytical input and constraint on the foreign
currency ratings of entities and transactions originating in the
sovereign's jurisdiction.  Increased integration of national
economies into global production, trade and financial networks
has reduced T&C risk, as evidenced by the experience of
sovereign crises over the last decade.  However, T&C and country
risk more generally remain strongly correlated with sovereign
risk and hence Country Ceilings are "notched" from the foreign
currency rating of the sovereign.  The ratings of transactions
and non-sovereign entities that are above the sovereign and
capped at the Country Ceiling may consequently exhibit more
volatility at a given rating level than would normally be
expected.

The methodology for assigning Country Ceilings was recently
updated as part of Fitch's regular and on-going review of its
criteria and methodologies.  As a result of the review of the
Country Ceiling methodology, the Country Ceilings on 40
countries have been revised upwards (out of a total of 99).  The
average "notch" uplift has been increased by around 50 basis
points (or half of one "notch" on the rating scale) to a little
over one notch above the sovereign foreign currency issuer
rating.  The upward revision to Country Ceilings since they were
first assigned more than two years ago reflects greater
liberalization of capital and exchange controls in many
"emerging market" economies, such as Russia and Brazil, the
strengthening of monetary and exchange rate regimes and the
deepening integration of emerging markets in the global economy.

Corporations, financial institutions and structured transactions
can only be rated above the sovereign foreign currency issuer
rating and up to the Country Ceiling if their stand-alone credit
quality is judged to be sufficiently strong to withstand a
sovereign debt crisis.




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


* COSTA RICA: Fitch Upgrades Country Ceiling to BB+ from BB
-----------------------------------------------------------
Fitch Ratings upgraded Costa Rica's country ceiling to BB+ from
BB.  This action follows Fitch's upward revision on the Country
Ceilings for 40 countries.  The Country Ceilings are an
effective cap on all foreign currency ratings of entities and
transactions originating within each country.  Fitch first
publicly assigned Country Ceilings to countries with Fitch-rated
sovereign issuers in June 2004.

Country Ceilings capture the risk of exchange controls being
imposed that would prevent or materially impede the private
sector's ability to convert local into foreign currency and
transfer to non-resident creditors -- transfer and
convertibility or T&C risk.  Country Ceilings are not ratings
but rather a key analytical input and constraint on the foreign
currency ratings of entities and transactions originating in the
sovereign's jurisdiction.  Increased integration of national
economies into global production, trade and financial networks
has reduced T&C risk, as evidenced by the experience of
sovereign crises over the last decade.  However, T&C and country
risk more generally remain strongly correlated with sovereign
risk and hence Country Ceilings are "notched" from the foreign
currency rating of the sovereign.  The ratings of transactions
and non-sovereign entities that are above the sovereign and
capped at the Country Ceiling may consequently exhibit more
volatility at a given rating level than would normally be
expected.

The methodology for assigning Country Ceilings was recently
updated as part of Fitch's regular and on-going review of its
criteria and methodologies.  As a result of the review of the
Country Ceiling methodology, the Country Ceilings on 40
countries have been revised upwards (out of a total of 99).  The
average "notch" uplift has been increased by around 50 basis
points (or half of one "notch" on the rating scale) to a little
over one notch above the sovereign foreign currency issuer
rating.  The upward revision to Country Ceilings since they were
first assigned more than two years ago reflects greater
liberalization of capital and exchange controls in many
"emerging market" economies, such as Russia and Brazil, the
strengthening of monetary and exchange rate regimes and the
deepening integration of emerging markets in the global economy.

Corporations, financial institutions and structured transactions
can only be rated above the sovereign foreign currency issuer
rating and up to the Country Ceiling if their stand-alone credit
quality is judged to be sufficiently strong to withstand a
sovereign debt crisis.


* COSTA RICA: State Firm Says Gasoline Use Drops 6.8% in July
-------------------------------------------------------------
Recope, the state refining firm of Costa Rica, told Business
News Americas that gasoline use in the country decreased 6.8% to
411,719 barrels in July 2006, compared with the same month in
2005.

Recope said in a statement that in the June 2006 period, regular
gasoline sales dropped 0.76% to 283,300 barrels.  The use of
supreme decreased 17.9% to 128,419 barrels.  Diesel use
increased 0.55% to 444,186 barrels.

Jose Leon Desanti Montero, the head of Recope, told BNamericas
that the decrease in gasoline use was due to an education
campaign the firm launched in July, which was aimed at promoting
rational use of fuel.

Costa Rica's general hydrocarbons demand decreased 5.01% to 1.25
million barrels in July 2006, compared with July 2005,
BNamericas relates.

                        *    *    *

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.




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


* CUBA: Vietnam Wants to Intensify Relations with Nation
--------------------------------------------------------
Nguyen Tan Dzung, Vietnam's Prime Minister, told Cuban news
agency ACN that he would like to increase cooperation with Cuba.

ACN relates that the Prime Minister Dzung met with Cuban
officials in Hanoi, Vietnam, to exchange experiences on
budgetary, tax and treasury matters.  Cuban officials who met
with the Vietnamese leader include:

         -- Finance Minister Georgina Barreiro,
         -- Deputy Minister Alejandro Gil, and
         -- Deputy Minister Jose Eloy Llaguno.

Prime Minister Dzung told ACN that due to the strong political
ties and friendship between Cuba and Vietnam, the latter hopes
to expand and diversify cooperation and collaboration links in
more areas to foster the development of both countries.

Cuba provides consulting services to Vietnam in the building of
six important highway projects.  Cuban engineers, in particular,
are assisting the construction of the national Ho Chi Minh
Highway, ACN reports.  

                        *    *    *

Moody's assigned these ratings to Cuba:

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




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


BANCO NACIONAL: Former Executives Found Guilty of Fraud
-------------------------------------------------------
The National District court in the Dominican Republic found
guilty Manuel Pellerano Pena and Juan Mendoza Gomez -- former
executives of Banco Nacional de Credito aka Bancredito.  The two
were convicted of falsifying documents and manipulating data to
mislead investigators.

According to the Associated Press, Messrs. Pena and Gomez were
sentenced with three years of imprisonment by the National
District Penal Chamber judges:

    -- Antonio Sanchez Mejia,
    -- Esmirna Mendez, and
    -- Ileana Perez.

AP notes that the court also ordered the former Bancredito
executives to each pay about US$30,000.  

The officials were given nine days to file an appeal on the
court's decision, Joham Gonzales, the court clerk, told AP.

Clave Digital underscores that clients of Bancredito filed the
charges against Messrs. Pena and Gomez.  

Dominican Today states that members of the Corruption Prevention
Department represented the prosecution.

The two former Bancredito executives had refused to make
statements before the court.  Their representatives, however,
had asked the court to acquit their clients, saying that the
allegations has not been proven because of sufficient evidence,
Dominican Today relates.

The report emphasizes that the government could add criminal
charges to civil lawsuits, under the Dominican law.  

Another lawsuit against Messrs. Pena and Gomez is pending.  It
was filed by the Dominican Republic's Central Bank.

Bancredito is a subsidiary of BanInter which collapsed in 2003
as a result of massive fraud that drained it of about US$657
million.  As a consequence, all of its branches were closed.
The bank's current and savings accounts holders were transferred
to the bank's new owner -- Scotiabank.  The bankruptcy of
Baninter was considered the largest in world history, in
relation to the Dominican Republic's Gross Domestic Product.  It
cost Dominican taxpayers DOP55 billion and resulted to the
country's worst economic crisis.


FALCONBRIDGE LTD: Changes Board of Directors After Xstrata's Buy
----------------------------------------------------------------
Falconbridge Limited disclosed that following Xstrata plc's
acquisition of its 257,700,100 common shares, giving Xstrata
ownership of 92.1% of the Common Shares on a fully diluted
basis, each of the members of the board of directors has
resigned at Xstrata's request, with the exception of James
Wallace who has agreed to remain as a member of the interim
Falconbridge Board.  

Xstrata nominees Benny Levene, Thras Moraitis, William Ainley,
Douglas Knight and James Wallace have replaced the board.  Mr
William Ainley will serve as chair of the Board.

Falconbridge also disclosed the departure of Mr. Derek Pannell,
former Chief Executive Officer of Falconbridge Limited and Mr.
Steve Douglas, former Chief Financial Officer.

The New York Stock Exchange has notified Falconbridge that the
trading of Common Shares on the New York Stock Exchange will be
suspended prior to the commencement of trading on Aug. 18, 2006.

                        About Xstrata

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

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

                     About Falconbridge

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

                        *    *    *

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


TRICOM SA: Delays Filing 2005 Annual Report with US SEC
-------------------------------------------------------
Tricom SA said it won't be able to timely file its annual report
for the year ended Dec. 31, 2005, on Form 20-F with the United
States Securities and Exchange Commission.  The company said it
needs more time to accurately prepare the necessary data.

As previously disclosed, Tricom is working with Sotomayor &
Associates, LLP -- its auditor -- to determine whether an
amendment to the previously submitted 2002 Form 20-F should be
filed.  This has delayed the filing of Tricom's required SEC
reports for subsequent periods, including:

   -- Form 20-F for the year ended Dec. 31, 2003,
   -- From 20-F for the year ended Dec. 31, 2004, and
   -- will also delay filing of Form 20-F for the year ended
      Dec. 31, 2005.

The 2005 annual report, semi-annual report, transition report on
Form 10-K, Form 20-F, Form 11-K, Form N-SAR or Form N-CSR, or a
portion of the report, will be filed on or before the 15th day
after the prescribed due date; or the quarterly report or
transition report on Form 10-Q, or portion of it, will be filed
on or before the 15th day after the prescribed due date.

Tricom, S.A. -- http://www.tricom.net/-- is a full service
communications services provider in the Dominican Republic.  The
Company offer local, long distance, mobile, cable television and
broadband data transmission and Internet services.  Through
Tricom USA, the Company is one of the few Latin American based
long distance carriers that is licensed by the U.S. Federal
Communications Commission to own and operate switching
facilities in the United States.  Through its subsidiary, TCN
Dominicana, S.A., the Company is the largest cable television
operator in the Dominican Republic based on its number of
subscribers and homes passed.   The Company's securities are
traded in the United States.

                        *    *    *

Moody's Investors Service assigned a Ca issuer and senior
unsecured ratings to Tricom SA.  Moody's said the outlook is
stable.


TRICOM SA: Director Manuel Arturo Pellerano Convicted of Fraud
--------------------------------------------------------------
Manuel Arturo Pellerano, a member of Tricom SA's board of
directors and a beneficial holder of a majority of the voting
power of the company's shares, was found guilty of fraud before
the Dominican Republic's Criminal Court on Aug. 10, 2006.

It was found that Mr. Pellerano violated the Dominican Criminal
Code and Monetary and Financial Law by forgery, alteration,
manipulation and concealment of banking books and records and
financial statements.  According to Tricom SA's management, the
crime was made at related financial services entities of Tricom
SA and not at the company.  

The three-judge panel of the court of first instance sentenced
Mr. Pellerano and a co-defendant to three years imprisonment and
fined them DOP1 million.  

The court was expected to issue its judgment and the basis of
its ruling on Aug. 17, 2006.  

Local press says Mr. Pellerano is expected to file an appeal on
the decision of the court.  

In a filing with the US Securities and Exchange Commission,
Tricom said that the conviction does not terminate Mr.
Pellerano's position in the company's board of directors.  
Tricom SA's management understands that Mr. Pellerano is
reviewing his options regarding his continuing service on the
board.

The criminal proceedings against Mr. Pellerano were part of a
series of related proceedings that previously included Tricom
SA, some subsidiaries and other related parties as defendants.  
As previously disclosed, the Criminal Court dismissed on
March 7, 2006, the complaints pending against Tricom SA, its
subsidiaries, its Chief Executive Officer and another of its
directors.

Tricom, S.A. -- http://www.tricom.net/-- is a full service
communications services provider in the Dominican Republic.  The
Company offer local, long distance, mobile, cable television and
broadband data transmission and Internet services.  Through
Tricom USA, the Company is one of the few Latin American based
long distance carriers that is licensed by the U.S. Federal
Communications Commission to own and operate switching
facilities in the United States.  Through its subsidiary, TCN
Dominicana, S.A., the Company is the largest cable television
operator in the Dominican Republic based on its number of
subscribers and homes passed.   The Company's securities are
traded in the United States.

                        *    *    *

Moody's Investors Service assigned a Ca issuer and senior
unsecured ratings to Tricom SA.  Moody's said the outlook is
stable.


* DOMINICAN REPUBLIC: S&P Affirms B Sovereign Credit Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' long- and
short-term sovereign credit ratings on the Dominican Republic.  
The outlook on the long-term ratings was revised to positive
from stable.

According to Standard & Poor's credit analyst Richard Francis,
the positive outlook on the Dominican Republic's ratings
reflects improved fiscal and external indicators, the result of
the fiscal adjustment now underway and a sharp rise in
international reserves and current account receipts or CAR over
the past year.

The Dominican Republic's general government deficit is expected
to decline to 2.6% in 2006 from 3.3% in 2005 and over 7% in both
2003 and 2004.  Due to the fiscal adjustment and the
strengthening of the Dominican peso, general government debt to
GDP is expected to fall to 39% in 2006, far below the 'B'
median's 48%.  Net external debt to CAR will fall to 28% in 2006
from 48% in 2003, and gross international reserves are expected
to rise to over US$2 billion in 2006 from just US$800 million in
2004.

"There has been marked improvements in the country's external
indicators, propelled by a pick-up in CAR, foreign direct
investment, and a reversal of capital outflows," Mr. Francis
said.  "Despite the improvements, the ratings on the Dominican
Republic are constrained by poor governance and weak government
institutions.  Passage and implementation of important
institutional reform that improve the government's policy
framework and institutional capacity would be key to a ratings
upgrade," he added.

Mr. Francis explained that a number of bills will be debated in
Congress this year.  If passed, they could be implemented during
2007.

"The positive outlook balances improved economic prospects and
moderate government debt levels with weak institutions and the
large quasi-fiscal deficits of the central bank that constrain
monetary policy," noted Mr. Francis.  "Further improvements in
governance, along with sustained economic growth and further
fiscal measures to contain fiscal deficits, could lead to
improved creditworthiness.  On the other hand, further political
problems or policy reversals could lead to negative rating
actions," he concluded."




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


* ECUADOR: Regulator Says Power Sector Needs US$3.33 Billion
------------------------------------------------------------
Conelec, the electricity regulator in Ecuador, told Business
News Americas that the nation's power sector needs about US$3.33
billion through 2015 to be used in generation, distribution and
transmission.

Conelec said in a document outlining the 2006-15 national
electrification plan that power sector needs:

    -- US$1.55 billion for generation,
    -- US$1.50 billion for distribution, and
    -- US$287 million for transmission.

BNamericas relates that Conelec will disclose the plan on
Sept. 4 in Guayaquil.

The plan, says BNamericas, will tackle:

      -- energy efficiency and conservation,
      -- energy loss control and reduction, rates, and
      -- legislative and regulatory changes.

According to BNamericas, electricity consumption billed in the
10-year period is expected to increase 6.6% per year to
19,220GWh in 2015 from 10,790GWh in 2006:

     -- 34.7% residential users,
     -- 32.7% industry,
     -- 20.8% commercial, and
     -- 11.8% public lighting and others.

                        *    *    *

Fitch assigned these ratings on Ecuador:

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




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


AES EL SALVADOR: Fitch Ups Foreign Curr. Rating to BBB- from BB+
----------------------------------------------------------------
Fitch Ratings has upgraded AES El Salvador's foreign currency
issuer default rating to 'BBB-' from 'BB+'.

Fitch has upgraded the foreign currency issuer default ratings
of selected Latin American corporates.  These rating actions
follow Fitch's upward revision of certain country ceilings.

Fitch has recently updated the methodology for assigning country
ceilings as part of Fitch's regular and on-going review of its
criteria and methodology.  As a result of the review of the
country ceiling methodology, the country ceilings on 40
countries out of a total of 99 have been revised upwards.  The
upward revision to Country Ceilings since they were first
assigned more than two years ago reflects greater liberalization
of capital and exchange controls in many 'emerging market'
economies, such as Russia and Brazil, the strengthening of
monetary and exchange rate regimes and the deepening integration
of emerging markets in the global economy.

Country ceiling ratings reflect Fitch's judgment regarding the
risk of exchange controls being imposed by the sovereign
authorities that would prevent or materially impede the private
sector's ability to convert local currency into foreign currency
and transfer to nonresident creditors -- transfer and
convertibility or T&C risk. Given the close correlation between
sovereign credit and T&C risks, ratings at the country ceiling
may exhibit a greater degree of volatility than would normally
be associated with ratings at that level.


BANCO SALVADORENO: Fitch Maintains Positive Watch on BB Rating
--------------------------------------------------------------
Fitch Ratings has taken these rating actions on Banco
Salvadoreno:

   -- Foreign currency issuer default rating 'BB' remains on
      Rating Watch Positive;

   -- Individual rating affirmed at 'D';

   -- National Long-term  rating affirmed at 'AA-(slv)', Outlook
      remains Positive; and

   -- National Short-term rating affirmed at 'F1+(slv)'.

Fitch has also placed the support and short term rating of '3'
and 'B' on Rating Watch Positive, pending the acquisition by
HSBC.  As the Support and Short-term ratings were previously
constrained by the Country Ceiling, they could not be placed on
Rating Watch Positive when the FC IDR was put on Watch Positive
in July 2006.  

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


BANCO SALVADORENO: Bancosal Wants Full Ownership of Company
-----------------------------------------------------------
Inversiones Financieras Bancosal aka IFB told El Salvador's
stock exchange that on Aug. 14, it made an offer to purchase the
rest of Banco Salvadoreno (Bancosal), Business News Americas
reports.

BNamericas relates that IFB, which holds 93.61% of Salvadoreno,
wants to buy the remaining 502,000 shares of the latter for
US$17.1 million, or US$34 per share.  The share offer expires on
Sept. 22.

According to BNamericas, shares of Bancosal have traded at
US$31.13 this month, with a US$26.00 average price this year.

Meanwhile, IFB's assets as of March 31 totaled US$1.89 billion.  
Its subsidiaries Salvadoreno, Internacional de Seguros and
Factoraje Salvadoreno, represented 98%, 2% and 1% of its assets
respectively, BNamericas states.

                        *    *    *

Fitch Ratings placed a BB long-term issuer default rating on
rating and an A+(SLV) national long-term rating.  Fitch said the
outlook is stable.


SCOTIABANK EL SALVADOR: Fitch Ups Issuer Rating to BBB- from BB+
----------------------------------------------------------------
Fitch Ratings has taken these rating actions on Scotiabank El
Salvador:

   -- foreign currency issuer default rating upgraded to
      BBB- from BB+;

   -- short-term rating upgraded to F2 from B;
  
   -- support upgraded to '2' from '3';

   -- individual rating affirmed at D;

   -- national long-term rating affirmed at 'AAA(slv)'; and

   -- national short-term rating affirmed at 'F1+(slv)'.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


* EL SALVADOR: Fitch Upgrades Country Ceiling to BBB- from BB+
--------------------------------------------------------------
Fitch Ratings upgraded El Salvador's country ceiling to BBB-
from BB+.  This rating action is in conjunction with Fitch's
upward revision on the Country Ceilings for 40 countries.  The
Country Ceilings are an effective cap on all foreign currency
ratings of entities and transactions originating within each
country.  Fitch first publicly assigned Country Ceilings to
countries with Fitch-rated sovereign issuers in June 2004.

Country Ceilings capture the risk of exchange controls being
imposed that would prevent or materially impede the private
sector's ability to convert local into foreign currency and
transfer to non-resident creditors -- transfer and
convertibility or T&C risk.  Country Ceilings are not ratings
but rather a key analytical input and constraint on the foreign
currency ratings of entities and transactions originating in the
sovereign's jurisdiction.  Increased integration of national
economies into global production, trade and financial networks
has reduced T&C risk, as evidenced by the experience of
sovereign crises over the last decade.  However, T&C and country
risk more generally remain strongly correlated with sovereign
risk and hence Country Ceilings are "notched" from the foreign
currency rating of the sovereign.  The ratings of transactions
and non-sovereign entities that are above the sovereign and
capped at the Country Ceiling may consequently exhibit more
volatility at a given rating level than would normally be
expected.

The methodology for assigning Country Ceilings was recently
updated as part of Fitch's regular and on-going review of its
criteria and methodologies.  As a result of the review of the
Country Ceiling methodology, the Country Ceilings on 40
countries have been revised upwards (out of a total of 99).  The
average "notch" uplift has been increased by around 50 basis
points (or half of one "notch" on the rating scale) to a little
over one notch above the sovereign foreign currency issuer
rating.  The upward revision to Country Ceilings since they were
first assigned more than two years ago reflects greater
liberalization of capital and exchange controls in many
"emerging market" economies, such as Russia and Brazil, the
strengthening of monetary and exchange rate regimes and the
deepening integration of emerging markets in the global economy.

Corporations, financial institutions and structured transactions
can only be rated above the sovereign foreign currency issuer
rating and up to the Country Ceiling if their stand-alone credit
quality is judged to be sufficiently strong to withstand a
sovereign debt crisis.




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


DELTA AIR: Will Launch Nonstop Flight to Guatemala
--------------------------------------------------
Delta Air Lines Inc. will launch a nonstop flight to Guatemala.  

Delta Air is planning to add 16 new routes from its West Coast
gateway at Los Angeles International Airport to accommodate
soaring demand in one of the largest travel markets for Hispanic
customers.  The expansion will include new nonstop flights to
nine Mexican destinations, two Central American destinations and
corresponding connecting service to five destinations in the
United States where many Hispanic customers prefer to travel.

The expansion includes new service to the destinations from Los
Angeles:

   -- Guatemala: Guatemala City;

   -- Mexico:

      * La Paz,
      * Acapulco,
      * Loreto,
      * Mazatlan,
      * Culiacan,
      * Manzanillo,
      * Zacatecas,
      * Hermosillo, and
      * Torreon;

   -- Costa Rica: Liberia; and

   -- United States:

      * Las Vegas,
      * San Francisco,
      * Sacramento,
      * Oakland, and
      * San Jose.

Glen Hauenstein, Delta's executive vice president of Network and
Revenue Management, said, "Los Angeles is at the heart of
Hispanic culture in the United States and we are pleased to
expand our service to meet the needs of our customers in this
growing West Coast market.  With new service both southbound and
northbound from Los Angeles, our customers will find it much
easier to travel between the top destinations in Mexico, Central
America and most any point in the United States."

Antonio R. Villaraigosa, Los Angeles Mayor, said, "This is
welcome news for both business and leisure travelers to our
city.  We appreciate Delta Air Lines making such a strong
commitment and investment to Los Angeles International Airport
and the City of Los Angeles.  This is a dynamic and growing
market and we are happy that Delta made Los Angeles its
destination of choice to expand service."

Complementing its growth in Southern California, Delta also will
continue to expand services between Mexico and other US hubs and
gateways, where Delta has already added a dozen new routes this
year.  Delta plans to begin new nonstop service between Atlanta
and Leon/Guanajuato, Mexico, effective Dec. 1; to add a second
daily round-trip flight between New York-JFK and Mexico City,
effective Dec. 15; and to add new nonstop flights connecting
Salt Lake City and Orlando with Mexico City as soon as December,
both of which are subject to foreign government approval.

Delta has filed for DOT approvals to offer customers nonstop
service:

    -- between Salt Lake City and Guadalajara; and
    -- between Los Angeles and Los Mochis and Puerto Vallarta,
       Mexico, all of which also are subject to foreign
       government approvals.

Mr. Hauenstein said, "During 2006 Delta has become the fastest
growing US airline to Mexico and next year we will be pleased to
offer customers service to nearly 20 Mexican destinations -
three times as many as we offered just two years ago."

Based on current airline schedules, the new flights are expected
to position Delta as the second-largest US carrier in the
Mexican market by March 2007 in terms of destinations served.

From Los Angeles, Delta offers 42 daily flights to 17 nonstop
destinations, including long-haul domestic flights to:

     -- Atlanta,
     -- New York-JFK,
     -- Boston,
     -- Fort Lauderdale,
     -- Orlando,
     -- Tampa,
     -- Hartford,
     -- Columbus,
     -- Ohio,
     -- Cincinnati, and
     -- Raleigh-Durham;

international flights to:

     -- Guadalajara,
     -- Cancun, and
     -- Ixtapa-Zihuatanejo; and

Hawaii service to:

     -- Honolulu, and
     -- Maui.

With the planned expansion, Delta will to offer 63 daily flights
to 33 destinations from Los Angeles by March 2007.

Delta's new service from Los Angeles will be operated using a
mix of Boeing 737-800 aircraft and 50- and 70-seat Bombardier
regional jets operated by Delta Connection carrier Atlantic
Southeast Airlines.

Headquartered in Atlanta, Georgia, Delta Air Lines --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 502 destinations
in 88 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners.  Delta Air
offers customers more weekly flights between the United States
and destinations across Europe, India and Israel than any other
global airline, including service on 11 new transatlantic routes
launched since March.  Delta Air also is a major carrier to
Mexico, South and Central America and the Caribbean, with nearly
40 new routes announced in the last year.  The Company and
18 affiliates filed for chapter 11 protection on Sept. 14, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-17923).  Marshall S. Huebner,
Esq., at Davis Polk & Wardwell, represents the Debtors in their
restructuring efforts.  Timothy R. Coleman at The Blackstone
Group L.P. provides the Debtors with financial advice.  Daniel
H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump
Strauss Hauer & Feld LLP, provide the Official Committee of
Unsecured Creditors with legal advice.  John McKenna, Jr., at
Houlihan Lokey Howard & Zukin Capital and James S. Feltman at
Mesirow Financial Consulting, LLC, serve as the Committee's
financial advisors.  As of June 30, 2005, the company's balance
sheet showed US$21.5 billion in assets and US$28.5 billion in
liabilities.




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


DIGICEL LTD: Heather Shields Leaves Firm for Scotiabank Jamaica
---------------------------------------------------------------
Heather Shields, Digicel Ltd's marketing head, will be leaving
the company to be Scotiabank Jamaica's new vice president of
marketing, effective Sept. 18, the Jamaica Observer reports.

Ms. Shields told The Observer, "I am looking forward to joining
Scotiabank and experiencing a new industry.  Digicel is still on
an upward trajectory and it was a great learning experience for
me."

The Observer relates Ms. Shields started working in Digicel in
2003 as a marketing executive under Harry Smith.  

Ms. Shields told Caribbean Business Report, "Finally as a
corporate community we are appreciating the Jamaican consumer.  
Marketing has become a lot more essential in the way we do
business in Jamaica."

"She was a big asset to Digicel and it will be difficult to
replace her.  I guess you can say that there is some comfort in
knowing her talent and abilities will still be available to the
marketing community in Jamaica," Mr. Smith told The Observer
about Ms. Shields.

Digicel will start looking for a new marketing head, preferably
a Jamaican with the necessary qualifications and experience
residing or working at home or abroad, Mr. Smith told The
Observer.  

Digicel Limited is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien.  The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in 13 countries of the Caribbean
including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada,
Barbados, Cayman, and Curacao among others.  Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.

                        *    *    *

On July 12, 2006, Moody's Investors Service assigned a B3 senior
unsecured rating to the US$150 million add-on Notes offering of
Digicel Limited and affirmed Digicel's existing B3 senior
unsecured and B1 Corporate Family Ratings.  The outlook has been
changed to stable from positive.

Fitch Ratings assigned on July 14, 2006, a 'B' rating to Digicel
Limited's proposed add-on offering of US$150 million 9.25%
senior notes due 2012.  These notes are an extension of the
US$300 million notes issued in July 2005.  In addition, Fitch
also affirms Digicel's foreign currency Issuer Default Rating
and the existing US$300 million senior notes due 2012 at 'B'.
Fitch said the Rating Outlook is Stable.


DYOLL INSURANCE: Farmers Receive J$204MM After Firm's Collapse
--------------------------------------------------------------
Coffee farmers received a total of J$204 million from the
Supreme Court of Jamaica, after the collapse of Dyoll Insurance
Company, the farmer's insurer, the Jamaica Observer reports.

According to The Observer, payments to the farmers, however,
were delayed after liquidator John Lee of PriceWaterhouseCoopers
was granted leave for appeal.

Meanwhile, the farmers whose crops were damaged by Hurrican Iven
in September 2004 received on Aug. 11 J$100 million interim
payment from Jamaica's agriculture ministry, The Observer
relates.

Robert Clarke, the agriculture minister, told The Observer,
"This interim payment will go a far way in assisting coffee
farmers."

The Observer notes that Minister Clarke said the Jamaican
government was doing its best to help the farmers, as there was
already a scarcity of resources.

The cheques Minister Clarke handed to the farmers include:

   -- one J$15 million cheque to the Coffee Industry Board, and
   -- two others totaling J$85 million to the trustees of the
      Coffee Industry Insurance Fund.

Minister Clarke told The Observer that the individual claims are
being reconciled and the funds will be distributed in three
weeks.

The Observer underscores that about 6,000 coffee farmers will
benefit from the funds the Coffee Industry Board will
administer.  The farmers had waited for almost 24 months for the
funds.

The Coffee Industry Board was collaborating with stakeholders in
the industry to determine benefits to farmers, The Observer
says, citing Graham Dunkley, the organization's director-
general.

However, Minister Clarke told The Observer that full payments
would have to wait for court proceedings.

The Financial Services Commission of Jamaica took over control
of Dyoll Insurance in Mar. 7, 2005, in order to establish the
true position of the Company, address the matter of settlement
to its claimants and ensure that its policies will remain in
force after a high level of insurance claims were levelled on
the company as a result of the hurricane Ivan.  Kenneth Tomlison
was appointed temporary manager.  Jamaica's Supreme Court
ordered for the distribution of a US$653 million fund held by
the FSC in accordance with the Insurance Act 2001, section
59, which says that the prescribed deposit, on the winding up of
an insurance company, should be applied first to settle the
claims of local policyholders.


DYOLL INSURANCE: Two Policyholders Get Reinsurance Proceeds
-----------------------------------------------------------
The Supreme Court of Jamaica has approved payment of reinsurance
proceeds for the claims of two policyholders of the Dyoll
Insurance Company, Cayman Net News reports.

According to Cayman Net, the two policyholders claimed that
Dyoll Insurance acted as a front and so reinsurance proceeds
should go directly to them, instead of in the "general pool of
creditors to be distributed accordingly."

The report says that the ruling carves out almost US$6 million
in claims from the general pool of creditors, decreasing up to
15% the amount that creditors will receive.

Ken Krys, the joint liquidator of Dyoll Insurance, told Cayman
Net that he believes this is a wrong decision and has been
advised by attorneys to make an appeal.

Cayman Net relates that Mr. Krys said, "Normally, a policyholder
pays a premium to an insurance company and that company goes out
and buys reinsurance from another company so they are not fully
responsible in case of a big loss.  In this case, the two
policyholders are claiming that the reinsurance proceeds should
go directly to them and not be part of the general pool for
creditors."

The law was not interpreted correctly, as the ruling was based
on a US case that had dealt with the issue of a matter of
statue, and not on common law, Cayman Net explains, citing Mr.
Krys.

Mr. Krys told Cayman Net, "The second issue is the Court did not
look at all the evidence that we provided.  They ignored oral
evidence and quite a bit of documentary evidence."

Cayman Net notes that if the ruling is maintained the interim
payments to the remaining creditors in the pool will reduce to
45% to 25 to 30 cents on the dollar from an estimated 35.

The report underscores that only one interim payment of 12 cents
has been paid to Dyoll Insurance creditors.

Dyoll Insurance joint liquidators, according to Cayman Net, have
been dealing with issues of jurisdiction with the Jamaican
Financial Services Commission, on whether prescribed deposits in
Jamaica will be brought together and be distributed to all the
company's creditors.

The liquidators told Cayman Net that they reviewed the financial
settlement with the Jamaican Financial Services Commission last
week.  Cayman Net, however, was unable to get the final
decision.

The Financial Services Commission of Jamaica took over control
of Dyoll Insurance in Mar. 7, 2005, in order to establish the
true position of the Company, address the matter of settlement
to its claimants and ensure that its policies will remain in
force after a high level of insurance claims were levelled on
the company as a result of the hurricane Ivan.  Kenneth Tomlison
was appointed temporary manager.  Jamaica's Supreme Court
ordered for the distribution of a US$653 million fund held by
the FSC in accordance with the Insurance Act 2001, section
59, which says that the prescribed deposit, on the winding up of
an insurance company, should be applied first to settle the
claims of local policyholders.


KAISER ALUMINUM: Parties' Reply to Agrium's Move to Pursue Claim
----------------------------------------------------------------
Century Indemnity Company, ACE Property & Casualty Company,
Industrial Indemnity Company, Industrial Underwriters Insurance
Company, Pacific Employers Insurance Company, and Central
National Insurance Company of Omaha describe the motion filed by
the Agrium Companies as an "echo of the unsuccessful attempts"
by Daniel Freeman and the Estate of Savannah Olson to assert
untimely claims.

As reported in the Troubled Company Reporter on Aug. 8, 2006,
Agrium, Inc., and Agrium U.S., Inc., asked the U.S. Bankruptcy
Court for the District of Delaware to:

   (a) declare that the automatic stay does not apply;

   (b) interpret Kaiser Aluminum & Chemical Corp.'s Plan to
       determine the appropriate treatment of their claim; and

   (c) modify the discharge injunction to permit them to
       liquidate their claims against the estate, or the
       Reorganized Debtors, and pursue their claims against any
       available insurance.

Daniel Freeman and Lance Olson, as the Estate of Savannah Olson,
filed civil actions against Kaiser, the Agrium Companies, among
others, seeking recovery on numerous claims relating to
environmental contamination of ground water and soil.  The cases
were pending before the U.S. District Court for the Central
District of Illinois, Springfield Division.

If permitted by the Court to pursue any insurance coverage
available, the Agrium Companies will violate the ACE Parties'
rights under their Court-approved settlement with Kaiser
Aluminum Corp., Thomas G. Whalen, Jr., Esq., at Stevens & Lee
P.C., in Wilmington, Delaware, asserts.

Thus, the ACE Parties seek express acknowledgment that the
Agrium Companies seek no insurance coverage from them or the
Subject Policies on account of the alleged contribution claims.

Failing that, the ACE Parties ask the Court for an affirmative
ruling that the Agrium Companies have no right to insurance
coverage against them, and that any attempt to assert
contribution claims remains permanently restrained and enjoined.

The ACE Parties reserve their right to demand that Kaiser's
Funding Vehicle Trust enforce the Personal Injury Channeling
Injunction pursuant to the Settlement Agreement if the:

   (a) alleged Agrium Companies contribution claims are deemed
       to be Channeled PI claims; or

   (b) Agrium Companies seek to enforce any claims against any
       of the ACE Parties or the Subject Policies that are
       otherwise enjoined by the PI Channeling Injunction.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corp. -- 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. 103; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 609/392-0900)


NATIONAL WATER: Implements Restrictions to Some Areas
-----------------------------------------------------
"As low rainfall in the Hermitage watershed area continues to
affect the water supply to several communities across the
Corporate Area, the National Water Commission has been forced to
implement water restrictions to areas in and around Stony Hill
and other areas served by the Seaview Water Treatment Plant as
well," the National Water said in a statement.

The Jamaica Observer reports that some of Kingston's water
storage facilities "fell lower" on Thursday.  The National Water
had to implement more "lock-offs".

Starting Aug. 18, clients will either have no piped water or
have low water pressure, depending on their elevation and
location on the system, the National Water told The Gleaner.

Customers the Constant Spring Treatment Plant serves will
continue to experience restrictions between 10:00 a.m. and 8:00
p.m. to 4:00 a.m. daily, The Gleaner states, citing the National
Water.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 7, 2006,
the National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses.  For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion.  The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.


SUGAR COMPANY: Enterprise Team Will Renew Divestment Offer
----------------------------------------------------------
The Sugar Enterprise Team, which manages the proposed divestment
of the Sugar Company of Jamaica's assets, will revamp its
divestment offer due to private investors' unsatisfactory
response, the Jamaica Gleaner reports.

Roger Clarke, Jamaica's agriculture and lands minister, told The
Gleaner, "I don't think we got enough in terms of people who are
interested in participating as we would have expected much more.  
When we looked at the list we really would have liked some more
and we were pinning our hopes on many enquiries coming out of
Brazil (but) since then we have had two (enquiries) coming out
of there."

The Gleaner relates that Minister Clarke said he would be asking
an additional US$35 million from the Ministry of Finance to
allow the Sugar Enterprise to renew the offer.

"They want to do a more thorough evaluation of the things that
we have because there has to be some sort of costing as to what
you have on the ground and some more advertising," Minister
Clarke told The Gleaner.

According to The Gleaner, Minister Clarke said that the
divestment campaign of the Sugar Enterprise very much lacked
publicity.

The report notes that the Sugar Enterprise launched the
divestment offer in May.  The 10 entities that have expressed
interest in the offer are from:

     -- United States,
     -- Canada,
     -- India, and
     -- Brazil.

However, most of the interested entities did not present pre-
qualification documents by the June 2006 deadline, The Gleaner
underscores.  The government will be forced to move the deadline
for the submission of pre-qualification requirements.

Minister Clarke explained to The Gleaner, "We are going to be
extending it for a little longer.  It might set back the process
but one of the things that we're trying to do as we speak is to
have a plan B (in the event that none of the investors
qualify)."

The minister told The Gleaner that there was yet no decision
made regarding the new deadline.

The delay would frustrate the entities that have already
presented bidding documents, Allan Rickards -- the chairperson
of the All-Island Jamaica Cane Farmers Association, which is one
of the interested parties -- complained to The Gleaner.

Mr. Rickards is demanding that the process be sped up to prevent
losing any of the investors, The Gleaner states.

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.


* JAMAICA: Will Ink Economic Accord with Venezuela
--------------------------------------------------
Jamaica is expected to sign economic, social, tourism, and
energy exchange agreements with Venezuela, Prensa Latina
reports.

Prensa Latina relates that Venezuela's President Hugo Chavez is
fulfilling a working visit to Jamaica, after arriving from Cuba.

President Chavez told Prensa Latina that he has plans to sign
accords for Petrocaribe, economic, social and tourism exchange.

Prensa Latina notes that diplomatic sources had said President
Chavez would meet with Portia Simpson-Miller -- the Jamaican
Prime Minister -- on Monday.

"I will be in Cuba for few hours and then, on Monday, I will be
back in Jamaica on the prime minister s invitation, to continue
making progress in Caribbean integration," President Chavez had
told Prensa Latina.

                        *    *    *

On May 26, 2006, Moody's Investors Service upgraded Jamaica's
rating under a revised foreign currency ceiling:

   -- Long-term foreign currency rating: Ba3 from B1 with
      stable outlook.




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


CABLEMAS SA: Second Quarter 2006 Net Revenues Up 30.8%
------------------------------------------------------
Cablemas, S.A. de C.V., disclosed results for the three- and
six-month periods ending June 30, 2006.

Cablemas CEO Carlos M. Alvarez Figueroa commented, "With
increases in net revenue, operating profit and adjusted EBITDA,
Cablemas continues to post strong results."

"This quarter we again increased market penetration, with YoY
subscriber-increases of 20.3% and 64.7% in cable television and
in high-speed Internet, respectively. In addition, our recently
established joint venture with Axtel expanded the number of IP
telephony lines by 54% QoQ to 15,316.  In July, we achieved
another milestone in our strategy of rolling out new services
when we received thirteen fixed local telephony concessions in
Mexico.  These will allow us to offer triple play services
independently, rather than through a third-party carrier."

                    Second Quarter 2006

                        Net Revenues

Net revenues increased 30.8%, or MXN131.5 million, during 2Q06
to MXN559.1 million.

   -- Cable Television: The 21.2%, or MXN76.2 million, growth in
      cable television revenues was principally due to a 20.3%
      YoY increase in the number of subscribers to 657,144, with
      a penetration rate of 35%.
        
      Average monthly cable television revenues per subscriber
      rose 0.8% to MXN228.7.  This was primarily the result of
      increased revenue relating to the World Cup soccer
      tournament.  Average monthly net churn rates for cable
      television fell to 2.2% for 2Q06 from 2.4% in 2Q05.

   -- High Speed Internet: The 44.6%, or MXN25.7 million, rise
      in high-speed Internet revenues resulted mainly from a
      64.7% increase in the number of subscribers to 143,828,
      with a penetration rate of 10%.  This was partially offset
      by a 14.9% decline in high-speed Internet ARPU to
      MXN199.6, as lower price/ lower-speed Internet (128 Kbps)
      increased at a faster rate than higher-speed Internet (512
      Kbps) subscribers.
      
      Average monthly net churn rates for high-speed internet
      rose to 4.1% for 2Q06 from 3.4% in 2Q05.

   -- IP Telephony: IP telephony revenues for 2Q06 from the IP
      telephony joint venture with Axtel S.A. de C.V. introduced
      in 3Q05, were MXN22.9 million, or 4.1% of total revenue.  
      At June 30, 2006, there were 15,316 IP telephony lines in
      service, up from 9,936 IP telephony lines at March 31,
      2006.

                      Operating Profit

Operating profit for 2Q06 increased 65.5%, or MXN49.5 million,
to MXN125.0 million, driven by a 34.9% increase in gross profit,
partially offset by an increase of 18.7% in SG&A.  Operating
margin rose to 22.4% from 17.7% in 2Q05.

                      Cost of Services

Cost of Services for 2Q06 increased 26.4%, or MXN55.4 million.  
As a percentage of revenues, however, cost of services fell 160
basis points to 47.4%, from 49.0% in 2Q05.  The increase in cost
of services was primarily due to:

   -- A MXN21.0 million, rise in programming costs, principally
      related to increases in cable television subscribers and
      certain additional programming costs incurred in
      connection with the 2006 World Cup soccer tournament.

   -- A MXN15.1 million increase in IP telephony costs related
      to the start up of this service in November 2005.

   -- A MXN5.1 million increase in technician salaries and
      maintenance expenses, principally related to an increase
      in the number of technicians employed (1026 technicians
      as of June 30, 2006, as compared to 853 technicians as of
      June 30, 2005), as well as severance packages paid during
      2Q06.

          Selling, General and Administrative Expenses

Selling, General and Administrative Expenses (including
depreciation and amortization) increased MXN26.7 million, or
18.7% YoY to MXN169.0 million.  As a percentage of sales,
however, SG&A declined 310 basis points to 30.2%, from 33.3% in
2Q05.  The increase in SG&A principally reflected:

   -- A 38.1%, or MXN16.0 million, increase in selling expenses
      to MXN57.9 million, principally related to the 204 person
      increase in the size of our sales force (1,006
      salespersons as of June 30, 2006, as compared to 803
      salespersons as of June 30, 2005).

   -- A 10.9%, or MXN9.8 million, increase in administrative
      expenses to MXN100.2 million.  As a percentage of
      revenues, however, administrative expenses declined to
      17.9% in 2Q06 from 21.1% in 2Q05, reflecting economies of
      scales.  Administrative expenses in absolute values
      increased principally due to:
     
      -- An increase in office expenses of MXN7.9 million,
         principally due to higher corporate office rent;

      -- server rental expenses;

      -- software maintenance expenses; and  

      -- employee training expenses.

   -- An increase of MXN2.2 million in telecommunications and
      travel expenses, related to an increase in phone bills
      and travel expenses and principally resulting from  
      internal audit field network operations, operational
      controls and inventory management.

   -- Amortization and Depreciation rose 8.8%, or MXN0.9
      million, to MXN11.0 million for 2Q06 principally due to
      an increase in office equipment assets.  As a percentage
      of revenues, amortization and depreciation fell 40 basis
      points to 2.0% from 2.4% in 2Q05.

                       Adjusted EBITDA

Adjusted EBITDA for 2Q06 increased 35.2%, or MXN54.8 million, to
MXN210.5 million, principally reflecting the improvement in
operating income as discussed above. Similarly, the adjusted
EBITDA margin increased 124 bps to 37.7%.

   -- Depreciation and amortization increased 6.7%, or MXN5.4
      million, to MXN85.5 million, principally due to the 17.8%
      net growth in the company's fixed assets (network and
      other assets).

   -- Special Items included:

         i) MXN 14.7 million for IPO expenses and

        ii) MXN12.6 million of accelerated depreciation in 2Q06,
            associated with the costs of cleanup, removal and
            rehabilitation of the portion of the network
            affected by Hurricane Wilma.  Cablemas is still
            finalizing its review of the final monetary damage
            and possible lost revenues resulting from Hurricane
            Wilma and may submit additional claims to its
            insurers in the future.

   -- During 2Q06, Cablemas reported other expenses, net of
      MXN1.1 million compared with an income of MXN2.5 million
      in 2Q05.

   -- During 2Q06, the company recorded a MXN11.7 million
      provision for income taxes and asset taxes, compared with
      MXN10.4 million in 2Q05.

   -- Employee profit sharing declined 35.6% to MXN1.6 million,
      from MXN2.5 million for 2Q05.

              Comprehensive Financial Results

Comprehensive financial results, net resulted in a net expense
of MXN46.4 million for the three months ended June 30, 2006,
which is MXN17.8 million, or 62.1%, greater than the net expense
of MXN28.6 million for the corresponding period in 2005.  The
higher net expense primarily reflected an increase in interest
paid due to the 76.8% rise in outstanding debt from MXN1,128.0
as of June 30, 2005 to MXN1,994.5 million as of June 30, 2006,
which was partially offset by a gain in swap instruments.

                         Net Income

For 2Q06, Cablemas' net income decreased MXN17.6 million, to
MXN14.0 million, compared to MXN31.6 million in 2Q05. The
decline in net income mainly reflects higher interest expenses,
loss from associated companies and one-time special items.
   
                      First Half 2006

                        Net Revenues

Net revenues increased 29.3%, or MXN245.3 million, during 1H06
to MXN1,083.6 million.

   -- Cable Television: The 20.9%, or MXN147.8 million, growth
      in cable television revenues was driven by a 20.3%
      increase in the number of subscribers, despite a 0.8%
      decline in cable television ARPU to MXN226.9.  This
      decline in ARPU was primarily the result of a 35.7%
      increase in Minibasic subscribers, who pay lower monthly
      fees, while Basic subscribers increased only 16.7%.  
      Average monthly net churn rates for cable television
      fell slightly to 2.3% in 1H06 from 2.6% in 1H05.

   -- High-Speed Internet: The 47.1%, or MXN51.5 million, rise
      in high-speed Internet revenues resulted from a 64.7%
      increase in the number of subscribers, partially offset
      by a 13.8% decrease in high-speed Internet ARPU to
      MXN207.9.  The decrease in ARPU was mainly the result of
      a change in subscribers mix towards lower speed internet
      packages.
      
      Average monthly net churn rates for high speed Internet
      rose slightly to 3.5%, from 3.3% for 1H05.

   -- IP Telephony: IP telephony revenues totaled MXN39.5
      million, or 3.6% of total annual revenue.  IP telephony
      ARPU for 1H06 was MXN489.3.  This does not include
      migration fees paid to Cablemas by Axtel for new
      subscribers, which, if included, would rise to MXN710.2.

                      Operating Profit

Operating profit for 1H06 increased 44.6%, or MXN76.1 million,
to MXN246.9 million, principally as a result of a 31.3%, or
MXN135.03 million, increase in gross profit.  This more than
offset the 22.6% increase in SG&A.

                     Cost of Services

Cost of Services for 1H06 increased 27.1%, or MXN110.3 million,
to MXN516.7 million. As a percentage of service revenues,
however, cost of services declined to 47.7% from 48.5% in 1H05.
The increase in absolute value resulted from:

   -- A 20.5% increase in programming costs derived from the
      20.3% growth in cable television subscribers;

   -- A MXN25.4 million increase in IP telephony costs;

   -- A MXN23.1 million increase in maintenance and salaries
      and fees mainly due to the increase in technician
      employees to 1,026 from 853 in June 2005; and

   -- A MXN20.8 million increase in depreciation due to a
      MXN421 million net increase in fixed assets (network and
      other assets) during the period.

         Selling, General and Administrative Expenses

Selling, General and Administrative Expenses (including
depreciation and amortization) increased 22.6%, or MXN58.9
million, to MXN320.1 million, during 1H06.  As a percentage of
service revenues, however, it declined to 29.5% from 31.1% in
1H05.  The absolute increase principally reflected:

   -- A 43.5%, or MXN32.6 million, increase in selling expenses
      to MXN107.7 million for 1H06 principally due to the
      increased number of sales personnel in Cablemas' cable
      television and high-speed internet sales and call centers.
      The number of sales employees increased from 802 at the
      end of 1H05 to 1,006 at the end of 1H06.

   -- A 13.6%, or MXN22.4 million, increase in administrative
      expenses to MXN187.0 million for 1H06 principally due to
      a MXN14.7 million increase in office expenses, relating
      to software maintenance, training and rent and an increase
      of MXN4.6 million in telephone and travel expenses.  As a
      percentage of service revenues, however, administrative
      expenses fell 230 basis points to 17.3%, from 19.6% in
      1H05.

   -- A 18.1%, or MXN4.0 million, increase in amortization and
      depreciation to MXN25.4 million during 1H06 reflecting an
      increase in office equipment assets by Ps 28.7 million.

                   Adjusted EBITDA & Margin

Adjusted EBITDA for 1H06 increased 31.5%, or MXN100.8 million,
to MXN421.3 million, primarily as a result of the improvement in
operating income as discussed above. Similarly, the adjusted
EBITDA margin increased 65 basis points to 38.9%.

   -- Depreciation and amortization increased 16.5%, or MXN24.7         
      million, to MXN174.4 million, principally due to the 17.8%
      net growth in the company's fixed assets (network and
      other assets).

   -- Special Items included MXN25.3 million of accelerated
      depreciation in 1H06 associated with the costs of cleanup,
      removal and rehabilitation of the network affected by
      Hurricane Wilma and MXN14.6 million in connection with the
      IPO expenses.

   -- Other expenses, net increased by MXN7.3 million to MXN8.3
      million, reflecting the net effect of the sale and
      purchase of certain assets.

   -- Employee profit sharing declined 3.8% to MXN2.5 million,
      from MXN2.6 million for 1H05.

   -- In 1H05 Cablemas reported a MXN27.7 million gain from
      associated companies compared with a loss of MXN2.6
      million in 1H06 from the associated companies
      (principally PCTV).

                 Comprehensive Financial Results

Comprehensive financial results, net, for 1H06 increased 99.5%,
or MXN43.4 million, to an expense of MXN87.0 million from an
expense of MXN43.6 million in 1H05.  This primarily reflected a
MXN64.6 million increase in interest expense resulting from the
higher level of outstanding debt.  This was partially offset by
a MXN5.5 million gain from interest rate swaps and a MXN15.7
million increase in interest income.

                         Net Income

Net income for 1H06 fell 37.7%, or MXN38.5 million, to MXN63.5
million, down from MXN102.3 million in 1H05. The 44.6% increase
in operating profit to MXN249.9 million was offset by higher
one-time charges, borrowing costs, and deferred taxes.

                           CAPEX

Capital expenditures for 1H06 rose 61%, or MXN239.8 million, to
MXN632.7 million from MXN392.9 million in 1H05.  This increase
in capital expenditures principally relates to investments
incurred to expand and upgrade Cablemas' network.

As of June 30, 2006, Cablemas had a network of 12,145 km, of
which 79% was bi-directional and 87% was operating at or greater
than 550 MHz.  As of June 30, 2005 Cablemas had a network of
11,275 km, of which 70% was bi-directional and 83% was operating
at or greater than 550 MHz.

                       Debt Structure

Consolidated gross debt as of June 30, 2006 totaled MXN1,994.5
million, all of which was long-term. Consolidated gross debt
increased YoY by 76.8%, from MXN1,128.0 million as of
June 30, 2005.

Net debt, which is calculated as total debt minus cash and cash
equivalents, increased YoY by 44.0% to MXN1,562.2 million, from
1,084.7 million as of June 30, 2005.  As of June 30, 2006,
Cablemas had a cash balance of MXN432.3 million.

Cash flow from operations during the first half of the year
decreased 26.0%, or MXN54.6 million, to MXN202.6 million due to
a decrease in financial instruments (MXN 125.6 million).

Net borrowings in 1H06 decreased MXN8.4 million to MXN136.3
million. Capex for 1H06 increased MXN270.2 million, to MXN634.1
million, principally related to the upgrade and expansion of
Cablemas' network.

Cablemas S.A. de C.V. -- http://www.cablemas.com-- is the     
second-largest cable television operator in Mexico based on the
number of subscribers and homes passed.  As of June 30, 2005,
the company's network served over 546,000 cable subscribers and
in excess of 87,000 high-speed Internet subscribers, with more
than 1,647,000 homes passed.  It is the concessionaire with the
broadest coverage in Mexico, operating in 46 cities throughout
the country's oil, maquiladora and tourist regions.

                        *    *    *

As reported by the Troubled Company Reporter on Dec. 30, 2005,
Moody's Investors Service assigned a B1 corporate family rating
to Cablemas.  The outlook is stable.  This rating action is in
accordance with the B1 ratings Moody's assigned to Cablemas'
US$175 million of senior unsecured notes, with a stable outlook,
on November 4th, 2005.  The proceeds of the issue were used to
refinance debt and for capital expenditures.

On April 24, 2006, Fitch assigned these ratings to Cablemas:

   -- long-term issuer default rating:  BB-; and
   -- local currency long-term issuer default rating: BB-  


FORD MOTOR: Plans to Expand & Accelerate Restructuring Plan
-----------------------------------------------------------
Ford Motor Co. plans to expand and accelerate the implementation
of its restructuring program named Way Forward, The Wall Street
Journal reports, citing people familiar with the Company's
plans.

The Company is planning to close more factories, cut more
management jobs by another 10% to 30% and reduce benefits as it
reels from a US$254 million net loss for the second quarter of
2006.  The original plan called for termination of 30,000
employees and shutting down of 14 plants by 2012.

As reported in the Troubled Company Reporter on Aug. 4, 2006,
the Company hired Kenneth H.M. Leet as a strategic advisor to
Bill Ford, the Company's chairman and chief executive officer.  
The Company is trying to achieve its profitability and market
share goals using a two-pronged approach: (a) cut costs; and (b)
increase revenue.  To increase its market share, the Company
plans to introduce more products by investing up to US$1 billion
in several of the company's Michigan facilities.

Amendments to the restructuring plan will be deliberated by the
Company's board of directors on Sept. 14, 2006.  Formal
announcements will come a week after that.

                      About Ford Motor

Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- manufactures and distributes automobiles  
in 200 markets across six continents.  Ford Motor has two
assembly plants and an engine plant in Mexico.  With more than
324,000 employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury and Volvo.  Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corp.

                        *    *    *

As reported in the Troubled Company Reporter on July 31, 2006,
Dominion Bond Rating Service lowered on July 21, 2006, Ford
Motor Company's long-term debt rating to B from BB, and lowered
its short-term debt rating to R-3 middle from R-3 high.

DBRS also lowered Ford Motor Credit Company's long-term debt
rating to BB(low) from BB, and confirmed Ford Credit's short-
term debt rating at R-3(high).

DBRS maintained a negative outlook for Ford Motor Company and
Ford Credit.

As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and
senior unsecured ratings of Ford Motor Company to B2 from Ba3
and the senior unsecured rating of Ford Motor Credit Company to
Ba3 from Ba2.  The Speculative Grade Liquidity rating of Ford
has been confirmed at SGL-1, indicating very good liquidity over
the coming 12 month period.  The outlook for the ratings is
negative.

As reported in the Troubled Company Reporter on June 12, 2006,
Fitch downgraded long-term ratings for both Ford Motor Company
and Ford Motor Credit Company with a Negative Rating Outlook,
and assigned these Recovery Ratings:

  Ford:

    -- Issuer Default Rating to 'B+' from 'BB'
    -- Senior unsecured to 'BB-/RR3' from 'BB'

  FMCC:

    -- Issuer Default Rating to 'B+' from 'BB'

Fitch also affirms FMCC's senior unsecured debt at 'BB/RR2'.

As reported in the Troubled Company Reporter on July 3, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Ford Motor Co. and related units to 'B+' from 'BB-'
and affirmed its 'B-2' short-term rating.  The ratings were
removed from CreditWatch, where they were placed on
May 25, 2006, with negative implications.  The outlook is
negative.


SATELITES MEXICANOS: Disclosure Statement Hearing on Sept. 6
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
will convene a hearing on Sept. 6, 2006, to consider approval of
the Disclosure Statement explaining the Plan of Reorganization
filed by Satelites Mexicanos, S.A. de C.V.

Objections, if any, to the Disclosure Statement must be filed by
Aug. 31, 2006.

Section 1125 of the Bankruptcy Code requires a plan proponent to
provide holders of impaired claims with "adequate information"
that would enable a hypothetical investor typical of the holders
of claims or interests in the case, to make an informed judgment
about the plan.

The Debtor's Disclosure Statement clearly meets the requirements
of Section 1125, Luc A. Despins, Esq., at Milbank, Tweed, Hadley
& McCloy LLP, in New York, contends.

Mr. Despins points out that the Disclosure Statement contains
information, including, but not limited to:

   (a) the Chapter 11 Plan;

   (b) the operation of the Debtor's business;

   (c) historical financial information and future projections;

   (d) a valuation of the Debtor's assets;

   (e) accounting and valuation methodology;

   (f) a liquidation analysis;

   (g) the sources of information provided;

   (h) claims against the Debtor's estate;

   (i) the Debtor's indebtedness;

   (j) significant events that preceded the Debtor's Chapter 11
       case;

   (k) significant events that are anticipated to occur during
       the Chapter 11 case;

   (1) the capital and debt structure of the reorganized Debtor;

   (m) the administration of the Debtor's estates following
       confirmation of the Chapter 11 Plan;

   (n) risk factors attendant to the Chapter 11 Plan;

   (o) tax consequences of the Chapter 11 Plan; and

   (p) appropriate disclaimers.

In addition, Mr. Despins says, the Disclosure Statement provides
an overview of key Bankruptcy Code concepts, including
allowance, impairment, and classification, as well as the
requirements for confirmation, and an analysis of alternatives
to the Chapter 11 Plan.  The Disclosure Statement concludes with
a recommendation by the Debtor that creditors should vote to
accept the Plan.

                About Satelites Mexicanos

Satelites Mexicanos, S.A. de C.V., provides fixed satellite
services in Mexico.  Satmex provides transponder capacity via
its satellites to customers for distribution of network and
cable television programming, direct-to-home television service,
on-site transmission of live news reports, sporting events and
other video feeds.  Satmex also provides satellite transmission
capacity to telecommunications service providers for public
telephone networks in Mexico and elsewhere and to corporate
customers for their private business networks with data, voice
and video applications.  Satmex also provides the government of
the United Mexican States with approximately 7% of its satellite
capacity for national security and public purposes without
charge, under the terms of the Orbital Concessions.

The Debtor filed for chapter 11 petition on August 11, 2006
(Bankr. S.D.N.Y. Case No. 06-11868).  Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings.  Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice
in the Debtor's Mexican Bankrutpcy proceedings.  UBS Securities
LLC and Valor Consultores, S.A. de C.V., give financial advice
to the Debtor.  Steven Scheinman, Esq., Michael S. Stamer, Esq.,
and Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld
LLP give legal advice to the Ad Hoc Existing Bondholders'
Committee.  Dennis Jenkins, Esq., and George W. Shuster, Jr.,
Esq., at Wilmer Cutler Pickering Hale and Dorr LLP give legal
advice to Ad Hoc Senior Secured Noteholders' Committee.  As of
July 24, 2006, the Debtor has US$905,953,928 in total assets and
US$743,473,721 in total liabilities.

On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the Company (Bankr. S.D.N.Y. Case No. 05-13862).
On June 29, 2005, Satmex filed a voluntary petition for a
Mexican reorganization, known as a Concurso Mercantil, which was
assigned to the Second Federal District Court for Civil Matters
for the Federal District in Mexico City.

On Aug. 4, 2005, Satmex filed a petition, pursuant to Section
304 of the Bankruptcy Code to commence a case ancillary to the
Concurso Proceeding and a motion for injunctive relief seeking,
among other things, to enjoin actions against Satmex or its
assets (Bankr. S.D.N.Y. Case No. 05-16103).  (Satmex Bankruptcy
News, Issue No. 2; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


SATELITES MEXICANOS: Satellite 6 to Operate in US
-------------------------------------------------
Satelites Mexicanos SA aka Satmex said in a statement that it
has been granted authorization from FCC, the telecoms regulator
in the United States, to operate its Satmex 6 satellite in the
country.

Business News Americas relates that Satmex 6 could now be used
to provide fixed services by satellite and direct home content
over the C and Ku bands.

According to the report, Satmex 6 was launched on May 27,
covering the North and South America.  Its launch was considered
as crucial to Satmex's financial restructuring process.

Bankruptcy negotiations between Satmex and its creditors began
late last year.  Both reached an agreement through the Mexican
courts on July 31, 2006.  At present, a US court in New York --
who has the final say on the bankruptcy procedure -- is
analyzing the agreement, which would allow Satmex to reduce its
US$800 million debt by US$300 million, including US$100 million
in interest.  Under the agreement, creditors will hold 80% of
Satmex while the Mexican government will own 20%.  The
government is planning to sell off the share, BNamericas
reports.

                About Satelites Mexicanos

Satelites Mexicanos, S.A. de C.V., provides fixed satellite
services in Mexico.  Satmex provides transponder capacity via
its satellites to customers for distribution of network and
cable television programming, direct-to-home television service,
on-site transmission of live news reports, sporting events and
other video feeds.  Satmex also provides satellite transmission
capacity to telecommunications service providers for public
telephone networks in Mexico and elsewhere and to corporate
customers for their private business networks with data, voice
and video applications.  Satmex also provides the government of
the United Mexican States with approximately 7% of its satellite
capacity for national security and public purposes without
charge, under the terms of the Orbital Concessions.

The Debtor filed for chapter 11 petition on August 11, 2006
(Bankr. S.D.N.Y. Case No. 06-11868).  Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings.  Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice
in the Debtor's Mexican Bankrutpcy proceedings.  UBS Securities
LLC and Valor Consultores, S.A. de C.V., give financial advice
to the Debtor.  Steven Scheinman, Esq., Michael S. Stamer, Esq.,
and Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld
LLP give legal advice to the Ad Hoc Existing Bondholders'
Committee.  Dennis Jenkins, Esq., and George W. Shuster, Jr.,
Esq., at Wilmer Cutler Pickering Hale and Dorr LLP give legal
advice to Ad Hoc Senior Secured Noteholders' Committee.  As of
July 24, 2006, the Debtor has US$905,953,928 in total assets and
US$743,473,721 in total liabilities.

On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the Company (Bankr. S.D.N.Y. Case No. 05-13862).
On June 29, 2005, Satmex filed a voluntary petition for a
Mexican reorganization, known as a Concurso Mercantil, which was
assigned to the Second Federal District Court for Civil Matters
for the Federal District in Mexico City.

On Aug. 4, 2005, Satmex filed a petition, pursuant to Section
304 of the Bankruptcy Code to commence a case ancillary to the
Concurso Proceeding and a motion for injunctive relief seeking,
among other things, to enjoin actions against Satmex or its
assets (Bankr. S.D.N.Y. Case No. 05-16103).  (Satmex Bankruptcy
News, Issue No. 1; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


SATELITES MEXICANOS: Wants Court Nod on Solicitation Procedures
---------------------------------------------------------------
Satelites Mexicanos, S.A. de C.V., asks the U.S. Bankruptcy
Court for the Southern District of New York to approve the set
of uniform noticing, balloting, voting and tabulation procedures
to be used in connection with asking creditors to vote to accept
its Chapter 11 Plan of Reorganization.

The Debtor delivered the Plan and accompanying Disclosure
Statement along with its Chapter 11 petition.  A hearing to
consider the adequacy of the Disclosure Statement has been
scheduled for Sept. 6, 2006.

The Debtor anticipates commencing solicitation on or before the
third business day after the entry of an order approving the
Disclosure Statement.  Based on this schedule, the Debtor asks
Judge Drain to a date that is 25 days after the Solicitation
Date as the deadline for creditors to cast votes.

The Debtor also asks the Court to establish the date of the
entry of the Disclosure Statement Order as the record date for
purposes of determining creditors entitled to vote on the Plan.

The Debtor proposes to distribute to each holder of an allowed
claim or interest entitled to vote on the Plan, a solicitation
package containing copies of:

   (i) the notice of the hearing to confirm the Plan;

  (ii) the Disclosure Statement, the Plan and Disclosure
       Statement Order;

(iii) a notice in Spanish containing:

       -- a summary of the treatment of claims under the Plan
          and the discharge, release, and exculpation
          provisions;

       -- the Confirmation Hearing date, objection deadline; and

       -- basic ballot instructions as well as a Spanish-
          speaking contact for any questions; and

  (iv) a ballot.

Holders of allowed claims and interests in these classes are
impaired and entitled to vote on the Plan:

          Class         Description
          -----         -----------
            2           Senior Secured Note Claims
            4           Existing Bond Claims
            6A, 6B      Existing Preferred Stock Interests
            7A, 7B      Existing Common Stock Interests

The Debtor has prepared customized Ballots based on Official
Form No. 14.  The Ballots have been modified to address the
particular aspects of the Debtor's Chapter 11 case and include
certain additional information that the Debtor believes is
relevant and appropriate for each voting class.

Each Ballot must be properly executed, completed and delivered
to Kurtzman Carson Consultants, Inc., Debtor's notice and
balloting agent.

To conserve estate resources, the Debtor proposes to send to
holders of unimpaired claims in Class 1 (Priority Non-Tax
Claims), Class 3 (Other Secured Claims) and Class 5 (General
Unsecured Claims) a Notice of Non-Voting Status -- Unimpaired
Classes.  The Notice of Non-Voting Status identifies the classes
that are presumed to accept the Plan and sets forth the manner
in which a copy of the Plan and Disclosure Statement may be
obtained.

For purposes of voting in connection with the Plan, the Debtor
proposes that Class 2 claims be allowed for US$233,388,000 in
the aggregate and Class 4 claims be allowed for US$320,000,000
in the aggregate.  The Debtor also proposes that each interest
in Classes 6A and 6B and Classes 7A and 7B be temporarily
allowed for voting purposes.

The Debtor asks the Court not to count these Ballots:

   (1) Any Ballot received after the Voting Deadline unless
       the Debtor will have granted an extension of the Voting
       Deadline with respect to the Ballot;

   (2) Any Ballot that is illegible in any material respect or
       contains insufficient information to permit the
       identification of the claimant or the amount of its
       claim;

   (3) Any Ballot cast by a person or entity that does not hold
       a claim in a class that is entitled to vote to accept or
       reject the Chapter 11 Plan;

   (4) Any unsigned Ballot;

   (5) Any Ballot transmitted to Kurtzman that does not set
       forth an original signature; and

   (6) Any properly executed, timely received Ballot that
       partially rejects and partially accepts the Plan, or does
       not indicate an acceptance or rejection of the Plan.

The Debtor, however, may instruct Kurtzman to, in its
discretion, contact voters to cure any defects in the Ballots.

Whenever a creditor or interest holder casts more than one
Ballot voting the same claim or interest before the Voting
Deadline, the last Ballot received will be counted.  Vote
splitting is not allowed.

The Debtor will also direct Kurtzman to deliver Solicitation
Packages to:

   (a) each holder of record of its Debt Securities as of the
       Record Date; and

   (b) to each bank or brokerage firm identified by Kurtzman as
       an entity through which Beneficial Holders hold the Debt
       Securities.

All Nominees through which Beneficial Holders hold the Debt
Securities will be required either:

   (i) to send prevalidated Beneficial Holder Ballots to the
       Beneficial Holders for which they serve, for direct
       return to Kurtzman; or

  (ii) to receive and summarize on a Master Ballot all
       Beneficial Holder Ballots cast by the Beneficial Holders
       for which they serve and then return the Master Ballot to
       Kurtzman.

The Debtor will assume that:

   -- each Prevalidated Ballot is for a single account; and

   -- each vote is a separate vote and not duplicative of any
      other vote cast by other customers of that Nominee, unless
      specific evidence exists indicating that one vote is for
      the identical account number and amount of another vote.

To the extent that conflicting votes or duplicative votes are
submitted on a Master Ballot, the Debtor will direct Kurtzman to
attempt to reconcile the votes prior to the Voting Deadline.

The Court will convene a hearing to consider the Debtor's
request on Sept. 6, 2006, at 10:00 a.m.  Objections, if any,
must be filed by Aug. 31, 2006.

                 About Satelites Mexicanos

Satelites Mexicanos, S.A. de C.V., provides fixed satellite
services in Mexico.  Satmex provides transponder capacity via
its satellites to customers for distribution of network and
cable television programming, direct-to-home television service,
on-site transmission of live news reports, sporting events and
other video feeds.  Satmex also provides satellite transmission
capacity to telecommunications service providers for public
telephone networks in Mexico and elsewhere and to corporate
customers for their private business networks with data, voice
and video applications.  Satmex also provides the government of
the United Mexican States with approximately 7% of its satellite
capacity for national security and public purposes without
charge, under the terms of the Orbital Concessions.

The Debtor filed for chapter 11 petition on August 11, 2006
(Bankr. S.D.N.Y. Case No. 06-11868).  Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings.  Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice
in the Debtor's Mexican Bankrutpcy proceedings.  UBS Securities
LLC and Valor Consultores, S.A. de C.V., give financial advice
to the Debtor.  Steven Scheinman, Esq., Michael S. Stamer, Esq.,
and Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld
LLP give legal advice to the Ad Hoc Existing Bondholders'
Committee.  Dennis Jenkins, Esq., and George W. Shuster, Jr.,
Esq., at Wilmer Cutler Pickering Hale and Dorr LLP give legal
advice to Ad Hoc Senior Secured Noteholders' Committee.  As of
July 24, 2006, the Debtor has US$905,953,928 in total assets and
US$743,473,721 in total liabilities.

On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the Company (Bankr. S.D.N.Y. Case No. 05-13862).
On June 29, 2005, Satmex filed a voluntary petition for a
Mexican reorganization, known as a Concurso Mercantil, which was
assigned to the Second Federal District Court for Civil Matters
for the Federal District in Mexico City.

On Aug. 4, 2005, Satmex filed a petition, pursuant to Section
304 of the Bankruptcy Code to commence a case ancillary to the
Concurso Proceeding and a motion for injunctive relief seeking,
among other things, to enjoin actions against Satmex or its
assets (Bankr. S.D.N.Y. Case No. 05-16103).  (Satmex Bankruptcy
News, Issue No. 2; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


UNITED RENTALS: Earns US$56 Million in Quarter Ended June 30
------------------------------------------------------------
United Rentals Inc. reported net income of US$56 million from
total revenues of US$995 million for the three months ended
June 30, 2006.

At June 30, 2006, the Company's balance sheet showed total
stockholders' equity of US$1,402 million from total assets of
US$5,530 million and total liabilities of US$4,128 million.

A full-text copy of the Company's financial report for the three
months ended June 30, 2006, is available for free at:

               http://researcharchives.com/t/s?fd8

Headquartered in Greenwich, Connecticut, United Rentals, Inc.
-- http://unitedrentals.com/-- is an equipment rental company,  
with an integrated network of more than 750 rental locations in
48 states, 10 Canadian provinces and Mexico.  United Rentals is
a member of the Standard & Poor's MidCap 400 Index and the
Russell 2000 Index(R).

                        *    *    *

As reported in the Troubled Company Reporter on June 8, 2006,
Fitch affirmed the ratings of United Rentals, Inc. and its
principal operating subsidiary, United Rentals (North America),
Inc., and removed them from Rating Watch Negative where they
were placed on July 14, 2005.  Approximately US$2.9 billion of
debt is affected by the action.  The rating outlook for URI and
URNA was Stable.

Fitch's affirmed United Rentals Inc.'s Issuer Default Rating and
United Rentals (North America) Inc.'s Issuer Default and Senior
Unsecured Debt ratings at 'BB-'.


VITRO SA: Improves Network Communications Using Avaya Telephony
---------------------------------------------------------------
Vitro S.A. de C.V. has improved the communication capabilities
of its offices throughout Mexico using an IP telephony solution
from Avaya.  The system from Avaya gives the company and its
employees increased responsiveness to customers and control over
communications.

The new Avaya IP solution uses Intelligent Communications to
enable employees at all Vitro locations throughout Mexico to
call each other by just dialing a four-digit extension.  Unified
Communications allows users to receive voice messages in their
e-mail inbox, and a unified telephone directory for all the
Vitro's companies lets employees access contact information
directly from their IP phone.

Vitro executives who travel frequently can now enjoy the
benefits of Avaya IP Softphone, which turns their laptops into
an extension of their office phone.  Users can make and receive
calls on their laptop, as if they were in the office.  In
addition, the IP solution has greatly improved network
administration by making the setup, management and removal of
extensions and voice mail throughout the network, fast and easy.  
These "adds, moves and changes," which previously could take
days, can now be done in minutes.

"The Avaya solution has given employees control over their
communications which has made us more accessible to our
customers and each other, and more productive, due to extension
phone portability inside Vitro in any network port, and outside
facilities through the Softphone," said Luis Molina, Planning &
Operations Infrastructure Technology manager for Vitro.  "We are
also seeing tangible business benefits through more efficient
management of our technology through our communications
systems."

Among the challenges Vitro faced prior to implementing the Avaya
solution were high communications costs due to a lack of
centralized management of different switches from multiple
vendors, outdated equipment, and separate networks for voice and
data, all of which resulted in high network support and
maintenance costs.  The company needed to find a solution that
would standardize communications in all its branch offices
throughout Mexico and help improve the productivity of
employees.

"One of the main costs that we eliminated was double
infrastructure costs, one for data and the other for voice.  
With the Avaya IP telephony solution we just require one,
getting rid of extra costs," said Luis Molina.  "We standardized
the system across the organization making support easier."

Vitro's Technology Committee, a group responsible for selecting
the best technology based on the company's needs, evaluated
solutions from different vendors and conducted detailed tests on
various systems. After careful analysis, the committee decided
on an Avaya IP Telephony solution that included more than 3,000
Avaya 4610 and 4620 IP phones.

The phones run on an Avaya S8710 Media Server, which processes
multimedia applications such as call distribution, On-demand fax
and programs for automatic response to e-mail; and a G700 Media
Gateway that acts as a network access point and a SIP Server to
start, edit or terminate sessions for users of applications such
as:

   -- mail,
   -- voice,
   -- video, and
   -- instant messaging.

The new Avaya IP solution which uses Intelligent Communications
has enabled Vitro to implement technology for the future, and
the possibility to integrate technology for institutional
applications as SAP with communications applications.

Enrique Villegas, Marketing Manager for Avaya Mexico, adds,
"Vitro is at the forefront of using communications for
competitive advantage. 7,000 employees are using 3,000 IP phones
and Intelligent Communications solutions to get closer to their
customers and business partners, to be aware of their specific
needs and provide them with a timely, appropriate response. With
Avaya solution, now Vitro is a state-of-the-art communications
with the biggest telephony network in the country."

                        About Avaya

Avaya Inc. designs, builds and manages communications networks
for more than one million businesses worldwide, including over
90 percent of the FORTUNE 500.  

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

                        *    *    *

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

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

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




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CHIQUITA BRANDS: Names Jim Gallagher as VP of Corporate Sales
-------------------------------------------------------------
Chiquita Brands International Inc. promoted Jim Gallagher to
vice president of corporate sales and customer development.  
Mr. Gallagher served most recently as vice president of sales
and customer development at Fresh Express, which Chiquita
acquired in June 2005.

"As we transform Chiquita into a consumer-centric leader of
healthy, fresh foods, it's critical that we sustain premium
pricing and better capture the value that we bring to our
customers," said Fernando Aguirre, chairman and chief executive
officer.  "During his tenure at Fresh Express, Jim has
successfully validated the company's value to its North American
customers, and we hope to leverage this ability more effectively
throughout Chiquita to better emphasize our advantages to
customers versus competition."

"One of Jim's first tasks will be to combine and realign our
sales teams in North America to approach Chiquita and Fresh
Express customers in an integrated manner," Mr. Aguirre said.  
"We are confident that through this sales integration, we can
accelerate our profitable growth, strengthen customer
relationships and expand distribution channels."

Mr. Gallagher has more than 30 years of sales and marketing
experience. Prior to joining Fresh Express in 1999, he served in
various senior roles for leading food and consumer products
companies, including Willow Foods, Kraft Foods, Wilson Sporting
Goods, Dr Pepper and Procter & Gamble. Gallagher graduated magna
cum laude from Dartmouth College with a bachelor of arts degree
in economics.
  
                   About Chiquita Brands

Chiquita Brands International is a Cincinnati, Ohio-based
producer and distributor of bananas and other produce, under a
variety of subsidiary brand names, collectively known as
Chiquita.  Chiquita is the successor to the United Fruit Company
and is the leading distributor of bananas in the United States.
The company also owns a German produce distribution company,
Atlanta AG, which it acquired in 2003.  It markets, produces and
distributes fresh fruits, processed fruits and vegetable
products.

The company owns approximately 90,000 acres (36,400 hectares)
and lease about 50,000 acres (20,000 hectares) of improved land,
primarily in Panama, Costa Rica, Colombia, Guatemala and
Honduras.

On June 15, 2006, Standard & Poor's Ratings Services affirmed
its ratings on Cincinnati, Ohio-based Chiquita Brands
International Inc., including the 'B+' corporate credit rating.
S&P said the rating outlook is negative.


CHIQUITA BRANDS: Reports US$23MM Second Quarter 2006 Net Income
---------------------------------------------------------------
Chiquita Brands International, Inc., reported second quarter
2006 net income of US$23 million, or US$0.54 per diluted share.
The company reported net income of US$64 million, or US$1.36 per
diluted share, in the year-ago quarter.

"The new banana import regime has presented us with challenges
in Europe this year, particularly when compared to the pricing
we achieved in that market in 2005," said Fernando Aguirre,
chairman and chief executive officer.  "However, we continue to
sustain our premium versus the competition as we attempt to pass
through higher tariffs and industry-related cost increases."

Mr. Aguirre continued, "In North America, banana pricing showed
meaningful improvement year-over-year, and we continued our
expansion into higher-margin convenience outlets.  Finally, we
are very pleased with the growth, innovation and profit
improvements at Fresh Express, which has proven that it is a
perfect fit with Chiquita's overall vision to become a consumer-
driven leader in healthy fresh foods."

              Quarterly Financial Highlights

   -- Net sales were US$1.2 billion, up 21% from US$1.0 billion
      in the second quarter 2005.  The increase resulted
      primarily from the acquisition of Fresh Express and higher
      banana pricing in North America, partly offset by lower
      banana pricing in Europe and lower banana volume in both
      Europe and North America.

   -- Operating income was US$45 million, compared to US$75
      million in the year-ago period.  Regulatory changes in
      the European banana market, which have resulted in lower
      local pricing and increased tariffs, as well as higher
      fuel and other industry costs more than offset higher
      North American banana pricing and profit improvements in
      retail value-added salads.

   -- Operating cash flow was US$71 million, compared to US$123
      million in the year-ago period.

   -- Total debt was US$992 million at June 30, 2006, compared
      with US$997 million at Dec. 31, 2005, and cash was US$92
      million at June 30, 2006, compared with US$89 million at
      year-end 2005.

                  Quarterly Segment Results

Bananas

In the company's Banana segment, which includes the sourcing,
transportation, marketing and distribution of bananas, net sales
were US$512 million, down 10 percent from US$571 million, and
operating income was US$26 million, compared with US$73 million.

Banana operating income was adversely affected by:

   -- US$38 million from lower European local banana pricing,
      attributable in part to increased banana volumes that
      have entered the market, encouraged by regulatory changes
      that expanded the duty preference for African and
      Caribbean suppliers and eliminated quota limitations for
      Latin American fruit.

   -- US$18 million of net incremental costs associated with
      higher banana import tariffs in the European Union.  This
      consisted of approximately US$31 million of incremental
      tariff costs, reflecting the duty increase to euro 176
      from euro 75 per metric ton effective Jan. 1, 2006, offset
      by approximately US$13 million of expenses incurred in the
      second quarter of 2005 to purchase banana import licenses,
      which are no longer required.

   -- US$11 million of industry cost increases for fuel, fruit
      and ship charters.

   -- US$8 million of higher sourcing, logistics and other costs
      for replacement fruit due to banana volume shortfalls
      caused by Hurricane Stan and Tropical Storm Gamma, which
      occurred in the fourth quarter 2005.

These adverse items were offset in part by:

   -- US$13 million benefit from the impact of European
      currency.

   -- US$10 million from higher pricing in North America.

   -- US$7 million of net cost savings in the Banana segment.

Fresh Select

In the company's Fresh Select segment, which includes the
sourcing, marketing and distribution of whole fresh fruits and
vegetables other than bananas, net sales were US$385 million,
down 6 percent from US$408 million. Operating income was US$3
million, compared to US$4 million in the 2005 second quarter.  
Year-over-year improvements in the company's European Fresh
Select operations were more than offset by lower pricing as well
as currency-related declines at the company's Chilean
operations.

Fresh Cut

Substantially all of the 2006 revenue and operating income in
the company's Fresh Cut segment, which includes packaged salads
and fresh-cut fruit, can be attributed to the acquisition of
Fresh Express. Second quarter 2006 net sales were US$314
million, up from US$21 million in 2005, and operating income was
US$17 million, compared to an operating loss ofUS$3 million in
2005.  Second quarter 2005 results include Fresh Express'
operating results only from the June 28, 2005, acquisition date.

On a pro forma basis as if the company had completed its
acquisition of Fresh Express on March 31, 2005, there was a
US$12 million improvement in Fresh Cut segment operating income
compared to the second quarter 2005.  The improvement in pro
forma results was driven by a 10 percent increase in volume and
a 6 percent increase in net revenue per case in retail value-
added salads, continuing improvements in foodservice and fresh-
cut fruit operations, and the achievement of acquisition
synergies and other cost savings, partially offset by higher
industry costs.  The pro forma segment results for the second
quarter of 2005 may not be indicative of what the actual results
would have been had the acquisition been completed on the date
assumed or the results that may be achieved in the future.

                    About Chiquita Brands

Chiquita Brands International is a Cincinnati, Ohio-based
producer and distributor of bananas and other produce, under a
variety of subsidiary brand names, collectively known as
Chiquita.  Chiquita is the successor to the United Fruit Company
and is the leading distributor of bananas in the United States.
The company also owns a German produce distribution company,
Atlanta AG, which it acquired in 2003.  It markets, produces and
distributes fresh fruits, processed fruits and vegetable
products.

The company owns approximately 90,000 acres (36,400 hectares)
and lease about 50,000 acres (20,000 hectares) of improved land,
primarily in Panama, Costa Rica, Colombia, Guatemala and
Honduras.

On June 15, 2006, Standard & Poor's Ratings Services affirmed
its ratings on Cincinnati, Ohio-based Chiquita Brands
International Inc., including the 'B+' corporate credit rating.
S&P said the rating outlook is negative.


* PANAMA: Gov't Analyzes Terms of Proposed IDB Loan for US$40MM
---------------------------------------------------------------
The government of Panama will decide this month whether to go
ahead with a US$40 million loan for a rural electrification
program it plans to implement, Business News Americas reports,
citing a program official from the rural electrification office
or OER.

The official told BNamericas that the government is particularly
analyzing the terms of a US$30 million loan from the Inter-
American Development Bank aka IDB.

BNamericas relates that the official said that if the government
accepts the terms of the loan, the funding package would be
handed over to IDB's board for review and possible approval.

According to a bank program document, the program aims to expand
rural power coverage, and help improve OER's project development
and execution capacity.

About 73.8% of funds be spent on extending existing networks,
some 12.5% would go to works in independent systems and, about
7.5% would be used in institutional strengthening, BNamericas
states.

                        *    *    *

Fitch Ratings assigned these ratings on Panama:

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




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TELEFONICA DEL PERU: Fitch Ups Issuer Default Rating to BB+
-----------------------------------------------------------
Fitch Ratings has upgraded Telefonica del Peru, S.A.A. aka TDP's
foreign currency issuer default rating to 'BB+' from 'BB'.  

Fitch Ratings has upgraded the foreign currency issuer default
ratings of selected Latin American corporates.  These rating
actions follow Fitch's upward revision of certain country
ceilings.

Fitch has recently updated the methodology for assigning country
ceilings as part of Fitch's regular and on-going review of its
criteria and methodology.  As a result of the review of the
country ceiling methodology, the country ceilings on 40
countries out of a total of 99 have been revised upwards.  The
upward revision to Country Ceilings since they were first
assigned more than two years ago reflects greater liberalization
of capital and exchange controls in many 'emerging market'
economies, such as Russia and Brazil, the strengthening of
monetary and exchange rate regimes and the deepening integration
of emerging markets in the global economy.

Country ceiling ratings reflect Fitch's judgment regarding the
risk of exchange controls being imposed by the sovereign
authorities that would prevent or materially impede the private
sector's ability to convert local currency into foreign currency
and transfer to nonresident creditors -- transfer and
convertibility or T&C risk. Given the close correlation between
sovereign credit and T&C risks, ratings at the country ceiling
may exhibit a greater degree of volatility than would normally
be associated with ratings at that level.


* PERU: Fitch Upgrades Country Ceiling to BB+ from BB
-----------------------------------------------------
Fitch Ratings upgraded Peru's country ceiling to BB+ from BB.  
This rating action is in conjunction with Fitch's upward
revision on the Country Ceilings for 40 countries.  The Country
Ceilings are an effective cap on all foreign currency ratings of
entities and transactions originating within each country.  
Fitch first publicly assigned Country Ceilings to countries with
Fitch-rated sovereign issuers in June 2004.

Country Ceilings capture the risk of exchange controls being
imposed that would prevent or materially impede the private
sector's ability to convert local into foreign currency and
transfer to non-resident creditors -- transfer and
convertibility or T&C risk.  Country Ceilings are not ratings
but rather a key analytical input and constraint on the foreign
currency ratings of entities and transactions originating in the
sovereign's jurisdiction.  Increased integration of national
economies into global production, trade and financial networks
has reduced T&C risk, as evidenced by the experience of
sovereign crises over the last decade.  However, T&C and country
risk more generally remain strongly correlated with sovereign
risk and hence Country Ceilings are "notched" from the foreign
currency rating of the sovereign.  The ratings of transactions
and non-sovereign entities that are above the sovereign and
capped at the Country Ceiling may consequently exhibit more
volatility at a given rating level than would normally be
expected.

The methodology for assigning Country Ceilings was recently
updated as part of Fitch's regular and on-going review of its
criteria and methodologies.  As a result of the review of the
Country Ceiling methodology, the Country Ceilings on 40
countries have been revised upwards (out of a total of 99).  The
average "notch" uplift has been increased by around 50 basis
points (or half of one "notch" on the rating scale) to a little
over one notch above the sovereign foreign currency issuer
rating.  The upward revision to Country Ceilings since they were
first assigned more than two years ago reflects greater
liberalization of capital and exchange controls in many
"emerging market" economies, such as Russia and Brazil, the
strengthening of monetary and exchange rate regimes and the
deepening integration of emerging markets in the global economy.

Corporations, financial institutions and structured transactions
can only be rated above the sovereign foreign currency issuer
rating and up to the Country Ceiling if their stand-alone credit
quality is judged to be sufficiently strong to withstand a
sovereign debt crisis.




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ADELPHIA COMMS: Balance Sheet Upside-Down by US$8.4B at June 30
---------------------------------------------------------------
Adelphia Communications Corp. incurred a US$11.29 million net
loss for the second quarter ending June 30, 2006, the Company
disclosed on a Form 10-Q filing delivered to the US Securities
and Exchange Commission on Aug. 14, 2006.

          Current and Future Sources of Liquidity

Since ACOM and its debtor-affiliates filed for bankruptcy, they
utilized cash provided by operating activities and borrowings
under their debtor-in-financing facilities to fund capital
expenditures and other liquidity requirements.

On March 17, 2006, the Loan Parties entered into the US$1.3
billion Third Extended DIP Facility, which superseded and
replaced in its entirety the Second Extended DIP Facility.  The
Third Extended DIP Facility was approved by the Bankruptcy Court
on March 16, 2006, and closed on March 17, 2006.  In connection
with the completion of the Sale Transaction, on the Effective
Date, the Debtors terminated the Third Extended DIP Facility.  
In connection with the termination of the Third Extended DIP
Facility, they repaid all loans outstanding under the Third
Extended DIP Facility and all accrued and unpaid interest
thereon, with such payments totaling approximately US$986
million.  In addition, in connection with the termination of the
Third Extended DIP Facility we paid all accrued and unpaid fees
of the lenders and agent banks under the Third Extended DIP
Facility.  In connection with these payments, effective as of
the Effective Date, the collateral agent under the Third
Extended DIP Facility released any and all liens and security
interests on the assets that collateralized the obligations
under the Third Extended DIP Facility.  As a result of the
termination of the Third Extended DIP Facility, on the Effective
Date, the Debtors collateralized letters of credit issued under
the Third Extended DIP Facility with cash of US$88 million.

The Debtors also expect to pay around US$1.8 billion of claims
in the third quarter of 2006 in accordance with the Plan for the
Century TCI and Parnassos Debtors, of which approximately
US$1.6 billion relates to prepetition debt obligations.  The
Debtors paid US$1.2 billion of such prepetition debt obligations
on the Effective Date.  The remaining proceeds from the Sale
Transaction will be used to fund their future liquidity
requirements which consist primarily of prepetition liabilities
that are subject to compromise, fees and other items directly
related to the Chapter 11 filings and costs associated with
certain corporate functions that will continue either in part or
in whole for some period of time following the Sale Transaction.  
They do not have any additional sources of liquidity.

At June 30, 2006, the Debtors have US$18.42 billion of
prepetition liabilities that are subject to compromise.  They
currently cannot predict the amount of cash that will be
required to settle prepetition liabilities subject to
compromise, as the rights and claims of their various creditors
will be determined by a plan of reorganization that is
ultimately subject to confirmation by the Bankruptcy Court.  
Proceeds from the Sale Transaction are not sufficient to provide
a full payout of all outstanding claims in the Chapter 11 Cases.

A full-text copy of Adelphia Communications Corporation's
quarterly report for the period ended June 30, 2006, is
available for free at http://ResearchArchives.com/t/s?fcd

             Adelphia Communications Corporation, et al.
           Unaudited Condensed Consolidated Balance Sheet
                          At June 30, 2006
                       (Dollars in thousands)

                               ASSETS

Cash and cash equivalents                           US$734,447
Restricted cash                                          3,893
Accounts receivable, less allowance
    for doubtful accounts                              108,094
Receivable for securities                                7,167
Other current assets                                    89,222
                                                    -----------
Total current assets                                US$942,823

Noncurrent assets:
Restricted cash                                       US$2,751
Property and equipment, net                          4,223,605
Intangible assets, net                               7,479,647
Other non-current assets, net                          126,741
                                                    -----------
Total assets                                     US$12,775,567
                                                    ===========
                LIABILITIES AND STOCKHOLDERS' DEFICIT

Accounts payable                                    US$115,871
Subscriber advance payments and deposits                34,020
Accrued liabilities                                    543,672
Deferred revenue                                        19,115
Parent and subsidiary debt                             959,427
                                                    -----------
Total current liabilities                         US$1,672,105

Non-current liabilities:
    Other liabilities                                US$32,119
    Deferred revenue                                    56,149
    Deferred income taxes                              904,135
                                                    -----------
Total non-current liabilities                          992,403

Liabilities subject to compromise                   18,423,946
                                                    -----------
Total liabilities                                US$21,088,454

Commitments and contingencies

Minority's interest                                     60,201

Stockholders' deficit:
    Series preferred stock                                 397
    Class A Common Stock                                 2,297
    Convertible Class B Common Stock                       251
    Additional paid-in capital                      12,024,695
    Accumulated other comprehensive loss, net           (2,851)
    Accumulated deficit                            (20,369,940)
    Treasury stock                                     (27,937)
                                                    -----------
Total stockholders' deficit                         (8,373,088)
                                                    -----------
Total liabilities and stockholders' deficit      US$12,775,567
                                                    ===========

             Adelphia Communications Corporation, et al.
      Unaudited Condensed Consolidated Statement of Operations
                  Three Months Ended June 30, 2006
                       (Dollars in thousands)

Revenue                                           US$1,198,279

Costs and expenses:
    Direct operating and programming                   704,560
    Selling, general and administrative                 90,164
    Investigation, re-audit and
       sale transaction costs                            9,626
    Depreciation                                       191,780
    Amortization                                        33,231
    Provision for uncollectible
       amounts due from the Rigas Family
       and Rigas Family Entities                            -
    Loss (gain) on disposition of
       long-lived assets                                  (394)
                                                    -----------
Total costs and expenses                             1,028,967
                                                    -----------
Operating income                                       169,312
                                                    -----------

Other income (expense), net:
    Interest expense, net                              (219,642)
    Other income (expense), net                         (34,436)
                                                    -----------
Total other income (expense), net                     (254,078)
                                                    -----------
Income (loss) before reorganization
    income (expenses), income taxes,
    share of income (losses) of equity
    affiliates and minority's interest                 (84,766)

Reorganization income (expenses), net                   84,623
                                                    -----------
Income (loss) before income taxes,
    share of income (losses) of equity
    affiliates and minority's interest                    (143)
Income tax expense                                     (21,418)
Share of income (losses) of equity
    affiliates, net                                         92
Minority's interest in loss of
    subsidiary                                          10,173
                                                    -----------
Net income (loss)                                   (US$11,296)
                                                    ===========

             Adelphia Communications Corporation, et al.
      Unaudited Condensed Consolidated Statement of Cash Flows
                 Six Months Ended June 30, 2006
                       (Dollars in thousands)

Cash flows from operating activities:
    Net income (loss)                               (US$182,912)
    Adjustments to reconcile net income (loss)
    to net cash provided by operating activities:
       Depreciation                                     379,907
       Amortization                                      66,531
       Provision for uncollectible amounts due from
          the Rigas Family and Other Rigas Entities           0
       Gain on disposition of long-lived assets          (1,358)
       Settlement with the Rigas Family and Rigas
       Family Entities, net                                   0
       Impairment of receivable for securities            2,862
       Amortization/write-off of deferred
          financing costs                                 1,520
       Provision for settlements                         44,915
       Other noncash charges, net                         1,424
       Reorganization (income) expenses due to
          bankruptcy, net                               (62,639)
       Deferred income tax expense                       70,600
       Share of losses of equity affiliates, net            818
       Minority's interest in loss of subsidiary        (11,106)
       Change in operating assets and liabilities         9,205
                                                    -----------
Net cash provided by operating activities
    before payment of reorganization expenses           319,767

Reorganization expenses paid during
    the period                                          (58,680)
                                                    -----------
Net cash provided by operating activities               261,087
                                                    -----------
Investing activities:
    Capital expenditures for property &
       equipment                                       (284,621)
    Proceeds from the sale of long-lived assets
       and investments                                    1,586
    Acquisition of minority interests                         0
    Change in restricted cash                           281,532
    Other                                                (4,605)
                                                    -----------
Net cash used in investing activities                    (6,108)
                                                    -----------
Financing activities:
    Proceeds from debt                                1,023,000
    Repayments of debt                                 (932,471)
    Payments of deferred financing costs                   (900)
                                                    -----------
Net cash provided by financing activities                89,629
                                                    -----------
Increase (decrease) in cash & cash equivalents          344,608
                                                    -----------
Cash & cash equivalents at beginning of period          389,839
                                                    -----------
Cash & cash equivalents at end of period             US$734,447
                                                    ===========

               About Adelphia Communications

Based in Coudersport, Pa., Adelphia Communications Corp.
(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 administered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.  (Adelphia Bankruptcy News, Issue Nos. 143 & 144;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


ADELPHIA COMMS: Plans IPO on 33-1/3% of Class A Common Stock
------------------------------------------------------------
In a regulatory filing with the US Securities and Exchange
Commission, Adelphia Communications Corp. discloses that
effective July 31, 2006, it entered into a Registration Rights
and Sale Agreement with Time Warner Cable, Inc., pursuant to
which the ACOM will consummate a fully underwritten initial
public offering of at least 33-1/3% of the Class A Common Stock
issued by Time Warner in ACOM's sale transactions with Time
Warner NY Cable LLC and Comcast Corp. within three months
of Time Warner preparing the necessary registration statement
and having it declared effective.

Pursuant to the Registration Rights Agreement, Time Warner is
required to file and have a registration statement covering
these shares declared effective as promptly as possible and in
any event no later than Jan. 31, 2007, subject to certain
exceptions.

ACOM's obligation to consummate the public offering terminates
if it consummates a plan of reorganization as a result of which:

    (i) 75% of the TWC Class A Common Stock that it received in
        the Sale Transaction, excluding TWC Class A Common Stock
        held in escrow pursuant to the Sale Transaction, is
        distributed to creditors and listed on The New York
        Stock Exchange or The Nasdaq National Market within two
        weeks; or

   (ii) 90% of the TWC Class A Common Stock that it received
        in the Sale Transaction, excluding TWC Class A Common
        Stock held in escrow pursuant to the Sale Transaction,
        is distributed to creditors regardless of listing
        status.

After the initial public offering, ACOM will have the right to a
demand registration and a final registration if the exemption
from registration pursuant to Section 1145 of the Bankruptcy
Code is not available for a distribution of the remaining TWC
Class A Common Stock to its creditors and stakeholders under a
Chapter 11 plan of reorganization.

Also pursuant to the Registration Rights Agreement:

    -- Time Warner has the right to elect, in its sole
       discretion, to not rely on Section 1145 of the Bankruptcy
       Code and conduct a final registration for the
       distribution of the remaining TWC Class A Common Stock to
       its creditors and stakeholders; and

    -- ACOM's ability to distribute the TWC Class A Common Stock
       may be subject to lock-up periods following public
       offerings of TWC Class A Common Stock.

A full-text copy of the Registration Rights and Sale Agreement
is available for free at http://ResearchArchives.com/t/s?fcc

               About Adelphia Communications

Based in Coudersport, Pa., Adelphia Communications Corp.
(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 administered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.  (Adelphia Bankruptcy News, Issue No. 145; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000)


OCA INC: Hires Postlethwaite & Netterville as Accountants
---------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Louisiana
gave OCA, Inc., and its debtor-affiliates permission to retain
Postlethwaite & Netterville, as its accountants.

Postlethwaite & Netterville will:

   a) prepare cash flow forecasts as needed;

   b) assist the Debtors in closing their books each month;

   c) assist the Debtors with issuance of the monthly financial
      statements;

   d) review the completed financial statements with the  
      Debtors' management;

   e) conduct general ledger account reconciliations (excluding
      bank reconciliation);

   f) prepare schedules for yearly financial audits;

   g) assist in the preparation of audited financial statements;

   h) provide any other advice and assistance as may be
      requested from time to time by the Debtors; and

   i) assist in reviewing records and analyzing data in
      connection with the litigation which is pending and
      anticipated in connection with enforcing the Debtors'
      rights;

Postlethwaite & Netterville holds an unsecured claim of
US$44,759 and has waived that claim.

Albert J. Richard, III, a Postlethwaite & Netterville director,
discloses that the firm's professionals bill:

          Designation                Hourly Rate
          -----------                -----------
          Director/Partner          US$170 - US$220
          Associate                 US$130 - US$170
          Manager                   US$120 - US$140
          Senior Accountant          US$90 - US$120
          Staff                      US$70 - US$95

Mr. Richard assures the Court that his firm does not represent
any interest adverse to the Debtor or its estate.

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

The Debtor and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No.
06-10179).  Three debtor-affiliates also filed for bankruptcy
protection on June 1, 2006 (Bankr. E.D. La. Case No. 06-10503).
William H. Patrick, III, Esq., at Heller Draper Hayden Patrick &
Horn, LLC, represents the Debtors.  Patrick S. Garrity, Esq.,
and William E. Steffes, Esq., at Steffes Vingiello & McKenzie
LLC represent the Official Committee of Unsecured Creditors.  
Carmen H. Lonstein, Esq., at Bell Boyd & Lloyd LLC and Robin B.
Cheatham, Esq., at Adams and Reese LLP represent the Official
Committee of Equity Security Holders.  When the Debtors filed
for protection from their creditors, they listed US$545,220,000
in total assets and US$196,337,000 in total debts.


OCA INC: Equity Panel Hires Imperial Capital as Fin'l Advisor
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Louisiana
allowed the Official Committee of Equity Security Holders
appointed in OCA, Inc., and its debtor-affiliates' chapter 11
cases, to employ Imperial Capital, LLC, as its financial
advisor.

Imperial Capital is expected to:

   a) analyze the Debtors' business, operations, properties,
      financial condition, competition, forecast, prospects and
      management;

   b) perform financial valuations of the Debtors' ongoing
      operations;

   c) assist the Equity Committee in developing, evaluating,
      structuring and negotiating the terms and conditions of
      any plan of reorganization, including the value of
      securities, if any, that may be issued to the equity
      holders under a plan of reorganization;

   d) analyze potential divestitures by the Debtor; and

   e) provide other financial advisory services with respect to
      the Debtors' financial issues as may from time to time be
      agreed upon between the Equity Committee and the firm.

Tim O'Connor, an Imperial Capital member, discloses the firm's
professionals bill:

          Designation                Hourly Rate
          -----------                -----------
          Managing Directors            US$800
          Sr. Vice Presidents           US$600
          Vice Presidents               US$550
          Associates                    US$450
          Analysts                      US$350

Mr. Connor adds that the firm will receive a transaction fee
greater than:

    i) US$300,000 or

   ii) 1.0% of the new money contributed by the members of the
       Committee or their affiliates pursuant to the
       restructuring, payable in cash.

Mr. Connor assures the Court that his firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

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

The Debtor and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No.
06-10179).  Three debtor-affiliates also filed for bankruptcy
protection on June 1, 2006 (Bankr. E.D. La. Case No. 06-10503).
William H. Patrick, III, Esq., at Heller Draper Hayden Patrick &
Horn, LLC, represents the Debtors.  Patrick S. Garrity, Esq.,
and William E. Steffes, Esq., at Steffes Vingiello & McKenzie
LLC represent the Official Committee of Unsecured Creditors.  
Carmen H. Lonstein, Esq., at Bell Boyd & Lloyd LLC and Robin B.
Cheatham, Esq., at Adams and Reese LLP represent the Official
Committee of Equity Security Holders.  When the Debtors filed
for protection from their creditors, they listed US$545,220,000
in total assets and US$196,337,000 in total debts.


* PUERTO RICO: Moody's Revises Outlook on Banking Sys. to Neg.
--------------------------------------------------------------
In its annual report on the Puerto Rican banking system, Moody's
Investors Service says that the outlook for the sector is
"stable to negative and will continue to be defined by the
banks' abilities to manage through the difficult operating
environment."

"More specifically," says Vice President Allen Tischler, the
report's author, "of the five rated Puerto Rican banking
companies, our outlook is stable for three (Popular and the two
Spanish-owned banks, BBVA Puerto Rico and Banco Santander Puerto
Rico) and negative for two (Doral and Firstbank)."  He explains,
"ratings of the first three institutions have not changed since
the industry's challenges began to unfold because we believe
their franchise strengths remain intact."

The past year has been difficult for all Puerto Rican banks.  
Problems with internal accounting issues at several local
institutions ultimately led to financial accounting
restatements, notable managerial changes, and heightened
regulatory scrutiny at several banking entities, two of which
are rated by Moody's -- Doral Financial and FirstBank Puerto
Rico.

"The significance of these accounting issues was recognized by
Moody's," Mr. Tischler states, "in the rating actions we took on
the companies with the most noteworthy challenges (Doral and
FirstBank), which were both subjected to significant
downgrades."

"In addition to these internally generated conditions," the
analyst notes, "the local economy has undergone a budgetary
crisis and considerable political indecision at the commonwealth
government level -- a situation that has challenged both private
and public sector employment."  "Fortunately, most of the rated
banks have minimal direct exposure to government debt," Mr.
Tischler adds.

The analyst believes that loan demand may keep softening as the
impact of the local government budget crisis continues to be
felt and as borrowing costs increase because of the upward re-
pricing of loans -- both from the rise in interest rates and
from more widespread use of risk-based pricing at local banks.  
"Moreover," Mr. Tischler says, "a general economic slowdown may
have a long-term effect on asset quality," adding that local
banks have already reported a significant softening of demand
for some loan categories -- in particular, those for auto loans.

Nonperforming statistics for the rated banks remain inferior to
the US mainland peers' averages.  At the bank level, the four
(Doral's bank subsidiary is not rated) reported the measure of
NPAs to tangible common equity plus loan loss reserves to have
moved from 10.6% to 16.2% at December 31, 2005.  This can be
compared with the average for similarly sized mainland banks of
about half those levels or less.

"We want to point out that our current ratings assume a
weakening of asset quality in the Puerto Rican banking system,"
the analyst says.  Mr. Tischler concludes, "negative rating
pressure related to asset quality deterioration would only
emerge in the event that asset quality deteriorated beyond our
current expectations."




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


MIRANT: Asset Recovery Agrees to Keep BofA's Info Confidential
--------------------------------------------------------------
MC Asset Recovery, LLC -- a successor-in-interest to Mirant
Corp., and its debtor-affiliates -- on one hand, and Bank of
America and Banc of America Securities, LLC, on the other hand,
have reached an agreement to protect the confidentiality and use
of the Banks' information.

"Confidential Information" means any type or classification of
documents, electronic or digital records, information, or
materials produced in response to MCAR discovery requests to
Bank of America that is designated as "Confidential."

Among other things, the parties agree that:

    (a) MCAR must notify Toby L. Gerber of Fulbright & Jaworski
        L.L.P., Bank of America's counsel, of any intended
        disclosure and a specific description of the
        Confidential Information to be provided in any MCAR
        Action in which the Banks are not parties, or are not
        parties at the time of the intended disclosure; and

    (b) If the Bank of America timely objects, the Confidential
        Information will be filed under seal, otherwise the
        opportunity to object is deemed waived.

As reported in the Troubled Company Reporter on May 30, 2006,
prior to confirmation of the Debtors' plan of reorganization
filed by, the Debtors undertook an investigation of potential
causes of action against, among others, Bank of America.

Mirant's investigation included potential claims against Bank of
America either through affirmative acts or omissions for
avoidance, breach of fiduciary duty, aiding and abetting breach
of fiduciary duty, negligence, breach of professional duties,
and breach of statutory duties.

The Avoidance Action is based on a Credit Agreement dated as of
May 22, 2000, entered into by Mirant's predecessor-in-interest,
Southern Energy, Inc., with Bank of America, as agent.  Under
the Credit Agreement, Bank of America has a commitment, as an
initial lender, totaling US$550,000,000 -- the 2000 Dividend
Facility.

On May 26, 2000, Mirant transferred US$450,000,000 of the
US$538,000,000 initial borrowing to The Southern Company from
the 2000 Dividend Facility.  On Oct. 2, 2000, Mirant repaid
US$450,000,000 to Bank of America from the proceeds of Mirant's
initial public offering.

On July 13, 2005, Bank of America entered into a Stipulated
Tolling Agreement with Mirant that tolled the statute of
limitations while Mirant continued its investigation of
potential claims against Bank of America.

The Original Stipulation was set to expire on Jan. 13, 2006,
but Bank of America and MC Asset Recovery, LLC, entered into an
Amended Stipulation extending the toll to July 13, 2006.

In connection with the investigation, MCAR asks the Court to
direct Bank of America, N.A., and Banc of America Securities
LLC, to produce for inspection and copying, certain documents
not later than May 22, 2006, at the offices of Forshey &
Prostok, L.L.P.

Mr. Prostok asserts that MCAR's request for examination of Bank
of America is within the scope of Rule 2004 of the Federal Rules
of Bankruptcy Procedure and Local Bankruptcy Rule 2004.

Headquartered in Atlanta, Georgia, Mirant Corp. (NYSE: MIR) --
http://www.mirant.com/-- is an energy company that produces and  
sells electricity in North America, the Caribbean, and the
Philippines.  Mirant owns or leases more than 18,000 megawatts
of electric generating capacity globally.  Mirant Corporation
filed for chapter 11 protection on July 14, 2003 (Bankr. N.D.
Tex. 03-46590), and emerged under the terms of a confirmed
Second Amended Plan on Jan. 3, 2006.  Thomas E. Lauria, Esq., at
White & Case LLP, represented the Debtors in their successful
restructuring.  When the Debtors filed for protection from their
creditors, they listed US$20,574,000,000 in assets and
US$11,401,000,000 in debts.  The Debtors emerged from bankruptcy
on Jan. 3, 2006.  (Mirant Bankruptcy News, Issue No. 103;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                        *    *    *

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

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

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

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

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

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




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


BANCO ITAU (URUGUAY): Fitch Raises Foreign Curr. Rating to BB-
--------------------------------------------------------------
Fitch Ratings has taken these rating actions on Banco Itau BBA
Uruguay Branch:

   -- foreign currency issuer default rating upgraded to 'BB-'
      from 'B+', Outlook remains Positive;

   -- Local Currency issuer default rating affirmed at 'BB-',
      Outlook remains Positive;

   -- Support affirmed at '4'; and

   -- National Long-term rating affirmed at 'AA(ury)',
      Outlook remains Stable.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


HIPOTECARIO DEL URUGUAY: Moves US$25M Securitization to November
----------------------------------------------------------------
Banco Hipotecario del Uruguay aka BHU has postponed a US$25
million securitization until November due to legal requirements,
according to a report by El Pais.

El Pais relates that the securitization was initially set for
August.

BHU will "securitize" 5% of its commercial loan book with the
assistance of law firm KPMG, French bankCredit Agricole's
Uruguayan unit, Business News Americas reports.

BNamericas notes that the securities will be offered to
institutional and retail investors.  Proceeds from the
transaction would be spent on boosting the liquidity of BHU and
reopening credit lines.

Walter Morodo, the director of BHU, told Pais that the company
will securitize another US$25 million next year.

                        *    *    *

Standard & Poor's Ratings Services assigned Baa2 rating on Banco
Hipotecario del Uruguay's local currency long-term bank deposits
on May 2, 2005.  On April 30, 2004, the bank was assigned an E
bank financial strength rating and an NP on its short-term bank
deposits.


HSBC BANK URUGUAY: Fitch Ups Foreign Curr. Rating to BB from BB-
----------------------------------------------------------------
Fitch Ratings has taken these rating actions on HSBC Bank
Uruguay:

   -- foreign currency issuer default rating upgraded to 'BB'
      from 'BB-', Outlook remains Positive;

   -- Local Currency issuer default rating affirmed at 'BB+',
      Outlook remains Stable;

   -- Support affirmed at '3'; and

   -- National Long-term rating affirmed at 'AAA(ury)',
      Outlook remains Stable.

Fitch Ratings has upgraded the foreign currency Issuer Default
ratings, Short-term and the Support ratings for banks worldwide.  
The rating actions follow the upgrades of Country Ceiling
ratings for various countries.  In the overwhelming majority of
cases the main reason behind the rating upgrades is the
ownership of the bank by a strong parent, although for a small
number of banks the upgrades are due to their own intrinsic
financial strength as is indicated by their Individual ratings.


* URUGUAY: Fitch Raises Country Ceiling to BB from BB-
------------------------------------------------------
Fitch Ratings upgraded Uruguay's country ceiling to BB from BB-.  
This rating action is in conjunction with Fitch's upward
revision on the Country Ceilings for 40 countries.  The Country
Ceilings are an effective cap on all foreign currency ratings of
entities and transactions originating within each country.  
Fitch first publicly assigned Country Ceilings to countries with
Fitch-rated sovereign issuers in June 2004.

Country Ceilings capture the risk of exchange controls being
imposed that would prevent or materially impede the private
sector's ability to convert local into foreign currency and
transfer to non-resident creditors -- transfer and
convertibility or T&C risk.  Country Ceilings are not ratings
but rather a key analytical input and constraint on the foreign
currency ratings of entities and transactions originating in the
sovereign's jurisdiction.  Increased integration of national
economies into global production, trade and financial networks
has reduced T&C risk, as evidenced by the experience of
sovereign crises over the last decade.  However, T&C and country
risk more generally remain strongly correlated with sovereign
risk and hence Country Ceilings are "notched" from the foreign
currency rating of the sovereign.  The ratings of transactions
and non-sovereign entities that are above the sovereign and
capped at the Country Ceiling may consequently exhibit more
volatility at a given rating level than would normally be
expected.

The methodology for assigning Country Ceilings was recently
updated as part of Fitch's regular and on-going review of its
criteria and methodologies.  As a result of the review of the
Country Ceiling methodology, the Country Ceilings on 40
countries have been revised upwards (out of a total of 99).  The
average "notch" uplift has been increased by around 50 basis
points (or half of one "notch" on the rating scale) to a little
over one notch above the sovereign foreign currency issuer
rating.  The upward revision to Country Ceilings since they were
first assigned more than two years ago reflects greater
liberalization of capital and exchange controls in many
"emerging market" economies, such as Russia and Brazil, the
strengthening of monetary and exchange rate regimes and the
deepening integration of emerging markets in the global economy.

Corporations, financial institutions and structured transactions
can only be rated above the sovereign foreign currency issuer
rating and up to the Country Ceiling if their stand-alone credit
quality is judged to be sufficiently strong to withstand a
sovereign debt crisis.




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


CITGO PETROLEUM: Assets in US Attracts Lukoil
---------------------------------------------
A top executive of OAO Lukoil, an oil producer in Russia, told
Reuters that the company would be interested in Citgo Petroleum
Corp.'s assets in the United States.

Lukoil is seeking to increase its presence in the US refining
market, Reuters reports, citing Vadim Gluzman, Lukoil's head in
the US.

Mr. Gluzman told Reuters that the firm is interested in buying
US refining assets, as it plans to ship crude from Russia's
Timan-Pechora region to the US east coast.

Lukoil has almost 2,000 retail gas stations in the US.  It could
increase the stations to as much as 3,000, mainly in the US
Northeast where it already has a strong presence, Reuters
relates, citing Mr. Gluzman.

                      About Lukoil

Headquartered in Moscow, Russia, OAO Lukoil, is the country's
largest vertically integrated oil & gas company in terms of
reserves, and one of the largest oil & gas companies in the
world.  In the first nine months of 2005, the group produced
1.92 million barrels of oil equivalent (boe) per day and in 2004
had refinery throughput of 44 million tons.  Total SPE reserves
in 2004 were just over 20 billion boe.  The group's 2005 nine-
month revenues were US$40.6 billion.

                  About Citgo Petroleum

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

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

                        *    *    *

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


ELECTRICIDAD DE CARACAS: Invests VEB1.48B for Public Lighting
-------------------------------------------------------------
Electricidad de Caracas told Business News Americas that it has
spent about VEB1.48 billion on the improvement of public
lighting in eastern Caracas in the area of Baruta.

Electricidad de Caracas previously agreed to match Baruta's
spending on electricity with public works. BNamericas reports.

Electricidad de Caracas is a vertically integrated utility in
Venezuela, operating in electricity distribution, transmission,
and generation in the capital city of Caracas and its
metropolitan area.  It is the largest private electric utility
in the country and is owned by US-based AES Corp.
(B+/Positive/--).  EDC reported net profits of US$20.6 million
from January to March, versus net losses of US$26.9 the same
period in 2005.

                        *    *    *

On Feb 9, 2006, Standard & Poor's Ratings Services affirmed its
'B' long-term corporate credit rating on C.A. La Electricidad de
Caracas aka EDC and its 'B' rating on Electricidad de Caracas
Finance B.V.'s US$260 million senior unsecured notes.  S&P said
the outlook is stable.

On Feb. 3, 2006, S&P raised the long-term local and foreign
currency sovereign credit ratings on the Bolivarian Republic of
Venezuela to 'BB-' from 'B+'.  The decision to raise the ratings
on Venezuela was supported by the continued sharp improvements
in Venezuela's external indicators, which are attributable to a
large current account surplus, a high level of international
reserves, and lower external debt in addition to buoyant
economic growth and the potential buyback of external debt.


NOSSA CAIXA: Posts BRL290 Million First Half Net Profits
--------------------------------------------------------
Banco Nossa Caixa SA's net profits in the first half of 2006
decreased 23.6% to BRL290 million, compared with the BRL380
million recorded in the same period of 2005, Business News
Americas reports.

BNamericas relates that Nossa Caixa's Return on Equity was 24.9%
in the first half of 2006.  In the first half of 2005, it was
36.4%, and in the second half of 2005 it was 36.7%.

Rubens Sardenberg -- Nossa Caixa's CFO -- told BNamericas that
in the first half of 2005, the bank benefited from the BRL10
million in extraordinary gains from stock offers and cost
controls.

The report says that Nossa Caixa's net profits in the second
quarter of 2006 decreased 60.4% to BRL115 million, compared with
the BRL291 million in the same quarter of 2005.

Mr. Sardenberg told BNamericas that market volatility and a
sharp increase in loan-loss provisions weakened Nossa Caixa's
second quarter earnings.  According to him, ups and downs on the
Sao Paulo stock market Bovespa in May caused the bank to lose
BRL15 million from investments as the bank's fixed-rate bonds
were hit hard.

BNamericas notes that the market has calmed down.  Mr.
Sardenberg said he expects Nossa Caixa to see gains from
investments in the third quarter of this year.

BNamericas underscores that loan-loss provisions increased 46%
to BRL736 million in the second quarter of 2006.  Non-performing
loan ratio rose to 8.6% in the second quarter of 2006 from 6.7%
in the second quarter of 2005 and 7.6% in the first quarter of
2005.

According to the report, Nossa Caixa calculates non-performing
loan ratio from loans overdue over 60 days.  

BNamericas says that the loan book increased 21.4% to BRL6.8
billion at the end of June 2006, from the same time in 2005.  
Nossa Caixa's efficiency ratio was 52.7% in the first half of
2006.  In the same period of last year, efficiency ration was
41.9%.  In the second half of 2005, the ratio was 54%.

Nossa Caixa's total assets in the first half of 2006 increased
7.6% to BRL37.4 billion, compared with the same period of 2005,
BNamericas states.

                        *    *    *

On Oct. 19, 2005, Moody's Investors Service upgraded Banco Nossa
Caixa S.A.'s long-term foreign currency deposit rating to B1
from B2 with a positive outlook.

At the same time, the ratings agency upgraded Banco Nossa
Caixa's long-term foreign currency debt rating to Ba1 with a
stable outlook.

The action followed Moody's upgrade of Brazil's foreign currency
ceiling for deposits to B1, from B2, and the foreign currency
country ceiling for bonds and notes to Ba3, from B1. Moody's
said the country ceilings have a positive outlook.


PETROLEOS DE VENEZUELA: El Salvador Mayors Push for Fuel Accord
---------------------------------------------------------------
El Salvador mayors under the National Liberation Farabundo Marti
Front or FMLN are aiming to implement a fuel agreement with
Venezuela, Prensa Latina reports.

Prensa Latina relates that the mayors are still on the move to
import Venezuelan fuel at competitive prices and benefit
Salvadoran citizens.

The plan is to implement the project as soon as possible, Prensa
Latina says, citing Carlos Ruiz, the mayor of Soyapango and
president of the Inter Municipal Association Energia para El
Salvador.

According to Prensa Latina, Mr. Ruiz the implementation of the
accord could be at the end of the year.  Guarantees from
commercializing firms and distributors "are still on steps".

Mr. Ruiz told Prensa Latina that the joint venture will import,
store, sell and distribute fuel in the local market.

The report underscores that three months after entering an
agreement with Petrocaribe -- a unit of Venezuela's state oil
firm Petroleos de Venezuela -- the FMLN began procedures before
the Salvadoran Direction of Mining and Hydrocarbons of the
Ministry of Economy.

Prensa Latina notes that Petrocaribe should supply almost
198,000 barrels of crude oil and by-products daily, which would
be paid with goods.  El Salvador would have two years of grace,
and financing 40% of the oil bill, if the barrel is over US$40,
at an interest rate of 1%.

Mr. Ruiz told Prensa Latina that the results of the accord will
be soon seen.  However, the Salvadoran government has doubts on
the agreement.

The site where the Venezuelan fuel would be stored is yet to be
determined, Prensa Latina states.

                        *    *    *

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


PETROLEOS DE VENEZUELA: Has 14 New Projects Under Petrocaribe
-------------------------------------------------------------
One year from launching the Petrocaribe program, Petroleos de
Venezuela S.A. already has 14 infrastructure projects through
its affiliate PDV Caribe, together with the signatory States, in
an area historically controlled by energy multinationals.

Alejandro Granado, PDVSA Refinery Vice President and PDV Caribe
President, considered this period as "very effective since we
reached a region where users do not have their own
infrastructure and we are about to change that."

In this respect, PDVSA and PDV Caribe are taking actions to
build storing tanks and installations for hydrocarbons, such as:

   -- diesel,
   -- gasoline,
   -- aerial fuel (Jet A1), and
   -- liquefied petroleum gas (LPG)

in six countries:

   -- Belize,
   -- Dominica,
   -- Saint Vincent and the Grenadines,
   -- San Cristobal and Nieves,
   -- Antigua and Barbuda, and
   -- Grenada.  

In the refinery area, PDVSA and PDV Caribe are assessing the
building of a small refinery in Belize and another one in
Dominica.

Likewise, Cienfuegos Refinery Reactivation in Cuba is under
basic engineering stage, and it will be operating during the
second six-month period of 2007.  This refinery will process
65,000 barrels per day.  At the same time, Kingston refinery
expansion in Jamaica is under basic engineering stage since
March 2006.  The plant is expected to begin operations in 2009,
in order to increase processing from 35 to 50 TBD.

                   Benefits to Households

In order to facilitate domestic gas supply to the population, we
will have LPG cylinder filling plants in Saint Vincent and the
Grenadines, San Cristobal and Nieves, Antigua and Barbuda, and
Grenada.  This aims to prevent units to return to Venezuela for
refueling since they could be refilled in said countries.

As to energy, PDVSA and PDV Caribe supplied 10 megawatt-hours to
Antigua and Barbuda as of February 2006; and plan to build a
plant to generate 4 MWh in San Cristobal and Nieves.

                        Natural Market

"Why make the Caribbean people pay intermediation costs if 90%
of hydrocarbons consumed in the region come from Venezuela and
they can have access to this market?" Alejandro Granado asked.

"The Caribbean was neglected and transformed into a Premium
market, a nice way to say an exploited market, very expensive.  
They are charged astronomical prices, up to 10 dollars over
market invoice price.  We are trying to make this stop," Mr.
Granado added.  He also said that the country with the greatest
reserves within the hemisphere not directly supplying its
neighbors is not justified, "this is unexplainable."

To date, San Cristobal y Nieves, Belize, Cuba, Dominica,
Nicaragua, and El Salvador have established joint ventures with
PDV Caribe; while Cuba, Grenada, Antigua and Barbuda, Jamaica,
Saint Vincent and the Grenadines, and the Dominican Republic
have signed hydrocarbons supply agreements.

Petrocaribe aims to coordinate and draw up the members' energy
policies, including oil and its derivatives, electricity,
electricity efficient use, technological cooperation, training,
infrastructure development, as well as alternate sources of use,
like wind and solar energy, among others.

Most signatory States are energy consumers who do not have state
control over hydrocarbons, a reality that Petrocaribe is
changing little by little by strengthening and egalitarian
development throughout the 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.

Moody's has withdrawn its ratings on the company because of the
absence of relevant financial information.


* VENEZUELA: Will Ink Economic Accord with Jamaica
--------------------------------------------------
Venezuela is expected to sign economic, social, tourism, and
energy exchange agreements with Jamaica, Prensa Latina reports.

Prensa Latina relates that Venezuela's President Hugo Chavez is
fulfilling a working visit to Jamaica, after arriving from Cuba.

President Chavez told Prensa Latina that he has plans to sign
accords for Petrocaribe, economic, social and tourism exchange.

Prensa Latina notes that diplomatic sources had said President
Chavez would meet with Portia Simpson-Miller -- the Jamaican
Prime Minister -- on Monday.

"I will be in Cuba for few hours and then, on Monday, I will be
back in Jamaica on the prime minister s invitation, to continue
making progress in Caribbean integration," President Chavez had
told Prensa Latina.

                        *    *    *

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


* AlixPartners Employees & Hellman Firm to Gain Majority Stake
--------------------------------------------------------------
AlixPartners LLC has agreed to a recapitalization of the firm by
which affiliates of Hellman & Friedman LLC will make a
significant investment in AlixPartners.

AlixPartners' 78 managing directors, along with the remainder of
its more than 500 employees, also will gain a considerable
equity stake in the enterprise.  Together, they will hold a
majority interest in the private firm.  Michael Grindfors, 50,
will continue as CEO of the firm.

The transaction puts the total enterprise value of the firm in
excess of US$800 million.  Other terms of the transaction were
not disclosed.  Jay Alix, 50, who founded the firm in 1981, said
he is transferring a substantial portion of his interest but
will remain with the firm as co-chairman and will be its largest
individual shareholder.  The other co-chairman will be Philip
Hammarskjold of Hellman & Friedman LLC.

"This recapitalization accomplishes three things," said Jay
Alix.  "It fulfills my long-held objective of an orderly
succession from an entrepreneurial firm to a self-perpetuating
institution.  It gives our employees, who have worked very hard
to build our firm, a significant equity ownership and an
important stake in our future.  And, it gives us an incredibly
valuable currency - equity in the form of stock - to attract and
retain the best talent in our industry."

"Long ago we institutionalized our 'magic.'  What makes us
unique among professional services firms is that we have always
been a firm with more than just one or two 'stars,'" said
Grindfors.  "Not only are we credited with inventing the term
'turnaround,' but we also are widely recognized as a pioneer in
the industry, creating innovations such as our turnaround-team
model, our share-the-risk 'success-fee' model and taking our
hands-on approach into performance improvement for financially
sound companies.  Our success has been based on creating real
value for our clients over the last 25 years, and we are
committed to continuing that tradition."

AlixPartners has enjoyed 25 years of uninterrupted revenue
growth.  In the last ten years, the firm has grown from two
offices in the U.S. to 12 offices in North America, Europe and
Asia, with affiliations in South America and Australia, and it
has achieved organic average annual growth of more than 30
percent during that time.  More than half of its revenue today
comes from providing services to healthy companies seeking
performance improvement, IT transformation and financial
advisory services.

"We are thrilled at the opportunity to support Michael Grindfors
and the managing directors and employees at AlixPartners in this
recapitalization transaction," said Mr. Hammarskjold.  "We have
been active investors in the professional services industry for
many years, and our experience and diligence indicate that by
almost any measure, AlixPartners sets the standard for
outstanding performance and brand recognition in the global
consulting industry.

"AlixPartners' commitment to getting results for its clients
will continue to drive the firm's growth, particularly in
today's uncertain economic environment," Mr. Hammarskjold
continued.  "By providing the managing directors and employees
of the firm with a greater economic stake in its future success,
we believe this recapitalization will serve as a catalyst to
help the firm grow and support its clients worldwide."

AlixPartners' present or past clients include General Motors
Corp. (U.S.), BP PLC (U.K.), Toys "R" Us Inc. (U.S.), Henkel
KgaA (Germany), Karstadt Quelle AG (Germany) and Bruno Magli Spa
(Italy), as well as some of the largest restructurings of all
time, including WorldCom Inc., Kmart Corp., Enron Corp., Refco
LLC and Calpine Corp.

Under terms of the agreement, each of AlixPartners' managing
directors will be given the opportunity to roll over some of the
value of his or her existing interests in the firm into new
equity in the recapitalized organization.  In addition,
employees other than managing directors will participate in a
"phantom equity" program.  Alix said the recapitalization was
expected to close within the next 90 days.

                   About Hellman & Friedman

Hellman & Friedman LLC is a leading private equity investment
firm with offices in San Francisco, New York and London.  The
Firm focuses on investing in superior business franchises and as
a value-added partner to management in select industries
including financial services, professional services, asset
management, software and information, media and energy.  Since
its founding in 1984, the Firm has raised and, through its
affiliated funds, managed over $8 billion of committed capital.
Recent investments include: Activant Solutions Inc., Artisan
Partners Limited Partnership, DoubleClick, Inc., GeoVera
Insurance Group Holdings, Ltd., LPL Holdings, Inc., Mondrian
Investment Partners, Ltd., The Nasdaq Stock Market, Inc. (NDAQ),
Texas Genco LLC, Vertafore, Inc. and VNU N.V.

                     About AlixPartners

AlixPartners LLC -- http://www.alixpartners.com/-- is a global
performance improvement, corporate turnaround and financial
advisory services firm.  The AlixPartners' "one-stop-shop" suite
of services range from financial restructuring and operational
performance improvement across all major corporate disciplines
(manufacturing, supply chain, IT, sales & marketing, working
capital, etc.), to financial advisory services (including
financial reporting, corporate governance and investigations) to
technology-enabled restructuring and claims management.


* BOOK REVIEW: Debtors and Creditors in America
-----------------------------------------------
Author:     Peter J. Coleman
Publisher:  Beard Books
Softcover:  303 pages
List Price: US$34.95

Order your personal copy at
http://amazon.com/exec/obidos/ASIN/189312214x/internetbankrupt


Suppose that, three hundred or so years ago, you were in urgent
need of a pig.  But you couldn't afford the pig, so you
purchased it on credit. (Yes, there was credit in the woodsy
days of this country; it wasn't strictly a cash and barter
economy.)  Sometime later, the pig having served the purpose for
which it was intended and hence being no longer recoverable, and
you not being the winner of the lottery you'd relied upon to pay
your debt, the creditor seeks satisfaction.

He could proceed against you in a couple of different ways, but
either way, assuming you still hadn't won the lottery, you went
to jail.  And there you rotted, unless you had the means to buy
your way out, in which case you wouldn't be there in the first
place.  In a notorious perversion of logic, a debtor, like any
other prisoner, was expected to feed and clothe himself while
incarcerated.  A pauper's grave -- the so-called potter's field
-- awaited the debtor who died in prison.

It could have been worse: Under ancient Roman law, creditors
were entitled to chunks of your actual body and -- sorry, Will
Shakespeare -- there was no penalty for hacking off a
disproportionate slice.

What changed this nefarious system?  Not sentiment (at least not
primarily), but hard economic facts.  For one thing, it was an
ineffective arrangement.  The creditor derived malicious
satisfaction from watching his debtor fade away in prison, but
they didn't satisfy the debt.  For another thing, the colonies
suffered a chronic people shortage.  They needed laborers and
militiamen.  Society couldn't afford to lose the prisoner's
labor, or his ability to shoulder a musket and defend against
Indian attacks.  Nor could society afford to support the
innocent wife and children "perishing with hunger & cold"
(here's where sentiments entered into the equation).

The system began to be modified in various ways.  For some
categories of debtors, commonly single men who owed little, some
colonies substituted indentured service for imprisonment.  
Another modification, applicable to petty debts, provided a
release from prison and immunity from rearrest if the debtors
swore he was impoverished -- presumably a more effective
deterrent centuries ago when there was true shame associated
with being a deadbeat.  A third modification put clothing,
furniture, eating utensils, and tools beyond the reach of
agreement.

None of this was of any help to the larger defaulters, the
businessmen, and it was for their benefit (economic necessity,
again) that colonial bankruptcy laws began to evolve.
Interestingly, the colonies preferred voluntary proceedings,
giving the right of action to the insolvent, in contrast to
English bankruptcy practice, which sided with the creditor.
Development of bankruptcy relief was by no means smooth as
predictably many stern and rockbound colonists took a moral
stance against it.  Complicating matters was the requirement
that, until the Revolution, a debtor relief law, like any
colonial legislation, had to be approved by the Crown, in this
case the Board of Trade.

The author provides a painstaking region-by-region analysis of
the development of bankruptcy law, and sums up all the history
in the concluding chapter.


                         ***********


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 US$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 US$25 each.  For
subscription information, contact Christopher Beard at 240/629-
3300.


           * * * End of Transmission * * *