TCRLA_Public/060825.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

          Friday, August 25, 2006, Vol. 7, Issue 169

                          Headlines

A R G E N T I N A

ACXIOM CORP: Moody's Rates US$800 Mil. Sr. Secured Credit at Ba2
BALL CORP: Earns US$132.7 Million in 2006 Second Quarter
BANNE SA: Deadline for Verification of Claims Is Set for Oct. 31
DAYCOM SRL: Trustee Verifies Proofs of Claim Until Oct. 27
FIDEICOMISOS FAID: Evaluadora Rates US$30,000 Certificates at C

FIDEICOMISOS FIDEIAGRO: Evaluadora Puts C Rating on US$20K Debt
MASTELLONE HERMANOS: S&P Rates US$7.091-Million Notes at raD
ORBLAZ SA: Asks for Court Approval to Reorganize Business
PLASTI TARSA: Claims Verification Deadline Is Set for Oct. 24
SALDIAS 2000: Verification of Proofs of Claim Is Until Oct. 24

SIDECO AMERICANA: Fitch Arg Ups US$13.5-M Notes Rating to B(arg)
SOCIEDAD COMERCIAL: Balance Sheet Upside Down by ARS733,842 Mil.
SOCIEDAD COMERCIAL: Selling Ertach to Telmex for US$22.5 Million
TRANSENER: Fitch Raises Notes' Rating to B from BB

B A H A M A S

COMPLETE RETREATS: R. Glanville Balks at Compensation Procedure
COMPLETE RETREATS: U.S. Trustee Says Professional Fees Can Wait
COMPLETE RETREATS: Case Summary & 50 Largest Unsecured Creditors
PINNACLE ENT: Extends Tender Offer Deadline to Aug. 30

B E R M U D A

ANNUITY & LIFE: Incurs US$649,959 Second Quarter 2006 Net Loss
SCOTTISH RE: Declares Cash Dividend of US$0.4531 Per Share
SCOTTISH RE: European Insurers Eye Company, Analysts Say

B R A Z I L

AMERICAN AXLE: Declares Cash Dividend of US$0.15 Per Share
BANCO NACIONAL: Moody's Reviews Ba1 Senior Unsecured Debt Rating
PETROLEO BRASILEIRO: Inaugurates GasLocal With White Martins
TRANSAX INT'L: Golden Cross Increases Medlink's Rollout
VARIG S.A.: Domestic Market Share Slips to 3.54% in July

VARIG S.A.: Resuming Flights to Venezuela Today

* BRAZIL: Inks Livestock Management Accord with Paraguay

C A Y M A N   I S L A N D S

AJIA-RPMH (ABSOLUTE): Proofs of Claim Must be Filed by Sept. 12
AJIA-RPMH (MASTER): Last Day to File Proofs of Claim Is Sept. 12
ARGENTINE INVESTMENT: Proofs of Claim Must be Filed by Sept. 12
CABLE & WIRELESS: Proofs of Claim Filing Is Until Sept. 12
CASCADIA II: S&P Puts BB+ Rating on US$300 Mil. Variable Notes

CHILECTRA INTERNACIONAL: Proofs of Claim Filing Ends Sept. 12
ENERSIS INTERNACIONAL: Claims Filing Deadline Is on Sept. 12
EQUITY LCI: Invites Shareholders for a Final Meeting on Sept. 15
EQUITY MIA: Shareholders Convene for a Final Meeting on Sept. 15
GENERATION FUND: Last Day to File Proofs of Claim Is on Sept. 12

GREAT EASTERN: Filing of Proofs of Claim Is Until Sept. 12
HERBALIFE LTD: Completes US$165 Million 9-1/2% Notes Redemption
INVESTCORP (ISLAMIC): Final Shareholders Meeting Is on Sept. 15
INVESTCORP (INVESTING): Last Shareholders Meeting Is on Sept. 15
LEATHER HOLDINGS: Last Shareholders Meeting Is on Sept. 15

MINIMAX EQUITY: Last Shareholders Meeting Is Set for Sept. 15
MINIMAX FUNDING: Sets Final Shareholders Meeting on Sept. 15
MINIMAX IIP: Schedules Final Shareholders Meeting on Sept. 15
MOMENTUM FUND: Creditors Must File Proofs of Claim by Sept. 12
SPECIALTY EQUITY: Final Shareholders Meeting Is on Sept. 15

SPECIALTY IIP: Calls Shareholders for Final Meeting on Sept. 15

C H I L E

SHAW GROUP: Appoints Michael Mancuso to Board of Directors

C O L O M B I A

BBVA COLOMBIA: Posts COP159 Bil. Profits in January-July Period
BRIGHTPOINT INC: Unit to Supply Wireless Devices to Newegg

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Court to Decide on Lois Malkun's Case
BANCO INTERCONTINENTAL: Lawyers Criticize Banks Superintendent
FALCONBRIDGE LTD: Fails to Register Sale to Dominican Tax Dept.

E C U A D O R

PETROECUADOR: Unit Will Drill Five Wells on Block 15
PETROECUADOR: Will Get 3.6MM Barrels of Diesel from Projector

E L   S A L V A D O R

CORPORACION UBC: Calls Off Acquisition Deal

G U A T E M A L A

BANCO DEL CAFE: Posts GTQ108 Mil. Profits in First Half of 2006

H O N D U R A S

* HONDURAS: Revises 500 Mining Concessions Due to Deficiencies

J A M A I C A

AIR JAMAICA: Union Workers Threaten Strike

M E X I C O

ALERIS INTERNATIONAL: Earns US$55.4 Mil in Quarter Ended June 30
CONSOLIDATED CONTAINER: Unit Remains Main Supplier of Dean Dairy
CONSOLIDATED CONTAINER: S&P Places B- Rating on Negative Watch
FORD MOTOR: Opening Alliance Talks with Renault-Nissan's CEO
GRUPO MEXICO: Brings In New Workers to Increase Copper Output

GRUPO MEXICO: Selling Railroad Unit's Shares to the Public
NORTEL NETWORKS: Supplies Bouygues with Internet & Voice Network
SATELITES MEXICANOS: Hires UBS Securities as Financial Advisors
SATELITES MEXICANOS: Section 341 Meeting Scheduled for Sept. 27

N I C A R A G U A

SPECTRUM BRANDS: Fitch Junks Issuer Default Rating

* NICARAGUA: State Firm Posts NIO27.7 Mil. First Half Earnings

P A N A M A

CHIQUITA BRANDS: Must Modify Purchasing Contracts by Aug. 31

P A R A G U A Y

* PARAGUAY: Inks Livestock Management Accord with Brazil

P U E R T O   R I C O

DRESSER INC: Gets Requisite Consents on Sr. Unsecured Term Loan
KMART CORP: Roberts Estate Wants Plan Injunction Modified
KMART CORP: Seeks Summary Judgment on Eagle's US$329,452 Claim
MUSICLAND HOLDING: Court Approves Supplemental Incentive Plan
MUSICLAND HOLDING: Will Pay US$26M to Secured Trade Debt Holders

PILGRIM'S PRIDE: Moody's Affirms Low B Ratings With Neg. Outlook

T R I N I D A D   &   T O B A G O

NATIONAL WATER: Delays Submission of Tariff Review

U R U G U A Y

* URUGUAY: Invites Firms to Submit Bids for Wind Generation Pact
* URUGUAY: Plans to Repay All Debts to IMF by March 2010

V E N E Z U E L A

FERRO CORP: Sells Specialty Plastics Business for US$133 Million
HARVEST NATURAL: Inks Mou With CVP to Add Fields in Petrodelta
PETROLEOS DE VENEZUELA: Inks Petrodelta Venture with Harvest


                          - - - - -


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


ACXIOM CORP: Moody's Rates US$800 Mil. Sr. Secured Credit at Ba2
----------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to Acxiom
Corp.'s US$800 million senior secured credit facilities (US$600
million term loan and US$200 million revolver), while affirming
its corporate family rating of Ba2.  The outlook is stable.  The
company expects to use proceeds from the proposed offering for a
recently authorized share repurchase program as well as to repay
amounts drawn on its revolving credit facility and for general
corporate purposes.

Acxiom's Ba2 corporate family rating is constrained by its
relatively high client concentration (the top 15 clients
represented approximately 50% of fiscal 2006 revenue), modest
size (measured by revenue and assets) relative to larger
information technology services peers, and challenges to address
an increasing public sentiment for consumer privacy.  In
addition, the rating reflects the company's ample free cash flow
and modest financial leverage, which in isolation suggest a
rating within the Baa category.  Information technology
outsourcing services sector rating factors include competitive
position, cash flow, financial leverage, returns, and liquidity.

Acxiom's Ba2 credit rating could experience upward pressure if
free cash flow to debt exceeds 15%, organic revenues and
operating profits continue to grow, if the company is able to
grow its asset and revenue levels to that of similarly rated
companies, and the company is able to reduce the level of
secured debt and obtain an unsecured bank facility.

Downward rating pressure could come from increased share
repurchase or acquisition activity such that there is a
leveraging event that results in free cash flow to debt less
than 5%, if operating margins vary significantly from forecasted
results, or if the company is unable to grow its asset and
revenue levels to that of similarly rated companies.

Headquartered in Little Rock, Arkansas, Acxiom Corp. is a
customer data integration and content software and information
technology outsourcing services provider.  Acxiom has been
increasingly active across all of Latin America for the past two
years, servicing both US-based international firms marketing to
Latin America and local and multi-national companies marketing
within specific countries.


BALL CORP: Earns US$132.7 Million in 2006 Second Quarter
--------------------------------------------------------
Ball Corp. reported second quarter earnings of US$132.7 million
on sales of US$1.84 billion, compared to US$79 million
on sales of US$1.55 billion in the second quarter of 2005.

For the first six months of 2006, Ball's earnings were
US$177.3 million on sales of US$3.21 billion, compared to
US$137.6 million on sales of US$2.88 billion in 2005.

The 2006 second quarter includes a US$74.1 million gain for
insurance recovery from a fire that occurred April 1 at a
beverage can manufacturing plant in Germany.  The 2005 second
quarter and first half results include an after-tax charge of
US$5.9 million, or five cents per diluted share, related to the
closing of a food can manufacturing plant in Quebec.

"Though the insurance accounting gain skews our second quarter
results, when you put that aside we still had a solid quarter,"
said R. David Hoover, chairman, president and chief executive
officer.  "Sales and earnings in the quarter were up in our
packaging segments.  Integration of the two businesses acquired
at the end of the first quarter is underway.  Beverage can
volumes were strong in North America and Europe/Asia.  We are
proceeding to replace the production capacity lost to the fire
and we plan to have the replacement capacity operating in the
second quarter of 2007.  Overall we are positive about the
outlook as we move into the second half of 2006."

                Metal Beverage Packaging

Earnings in the quarter for the metal beverage packaging,
Americas, segment were US$67.4 million on sales of US$740.6
million.  A year ago second quarter earnings in the segment were
US$67.4 million on sales of US$664.5 million.  For the first six
months, earnings were US$121.9 on sales of US$1.33 billion,
compared to US$129.2 million on sales of US$1.21 billion in
2005.

                  Metal Beverage Packaging

Second quarter earnings in the metal beverage packaging,
Europe/Asia, segment were US$142.5 million including US$74.1
million of earnings due to the insurance accounting gain in 2006
on sales of US$433.8 million, compared to US$58.2 million on
sales of US$394.3 million in 2005.  For the first six months
segment earnings were US$171.1 million, including the US$74.1
insurance accounting gain, on sales of US$734.7 million,
compared to US$88.5 million on sales of US$692.3 million in the
first half of 2005.

          Metal Food & Household Products Packaging

Earnings for the second quarter in the metal food and household
products packaging, Americas, segment were US$12.8 million on
sales of US$314.2 million, compared to a US$6 million loss that
includes an US$8.8 million business consolidation charge on
sales of US$179.1 million in the second quarter of 2005.
Through two quarters segment earnings were US$14.6 million on
sales of US$503.5 million, compared to US$7 million, which
includes an US$8.8 million business consolidation charge on
sales of US$363.3 in the first half of 2005.

                     Plastic Packaging

Second quarter earnings in the plastic packaging, Americas,
segment were US$7.4 million on sales of US$178.5 million,
compared to US$4.7 million on sales of US$133.4 million in the
second quarter of 2005.  For the first six months earnings in
the segment were US$9.2 million on sales of US$300.9 million,
compared to US$8.2 million on sales of US$249.2 million in the
first half of 2005.  The second quarter and first six months of
2006 also included increased costs of US$1.2 million related to
purchase accounting adjustments to step up the value of acquired
finished goods inventory to fair market value.

                Aerospace and Technologies

Earnings were US$8.3 million on sales of US$175.4 million in the
aerospace and technologies segment in the second quarter of
2006, compared to US$14.9 million on sales of US$180.7 million
in the second quarter of 2005.  For the first half of 2006,
earnings were US$17.8 million on sales of US$335.3 million,
compared to US$23.8 million on sales of US$362.7 million in the
first six months of 2005.

                          Outlook

"We are generally pleased with our second quarter results," Mr.
Hoover said.  "We ended the first quarter with a number of
uncertainties arising out of our April 1 fire, the new beverage
container redemption system in Germany, the threat of a possible
disruption at a major aluminum supplier and the integration of
two businesses acquired within days of each other.

"As a result we are more confident about the outlook for 2006
than we were at the end of the first quarter and see a stronger
second half of the year.  Still, we realize there is a lot of
work to do.  We have to rebuild the lost capacity in Europe;
aggressively pursue the synergies and benefits we anticipate
from our acquisitions; complete the capital spending projects we
have underway and begin to realize the cost savings associated
with them; work through the delays in awarding and funding of
projects that are affecting our aerospace and technologies
segment; and continue to push cost recovery initiatives
throughout our reporting segments."

A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?1040

Headquartered in Broomfield, Colorado, Ball Corp. --
http://www.ball.com/-- is a supplier of high-quality metal and
plastic packaging products and owns Ball Aerospace &
Technologies Corp., which develops sensors, spacecraft, systems
and components for government and commercial customers.  Ball
reported 2005 sales of US$5.7 billion and the company employs
13,100 people worldwide including Argentina.

                        *    *    *

Moody's Investors Service assigned ratings to Ball Corp's
US$500 million senior secured term loan D, rated Ba1, and
US$450 million senior unsecured notes due 2016-2018, rated Ba2.
It also affirmed existing ratings, which include Ba1 Ratings on
US$1.475 billion senior secured credit facilities and US$550
million senior unsecured notes due Dec. 12, 2012.  The ratings
outlook is stable.

Fitch affirmed Ball Corp.'s 'BB' issuer default rating, 'BB+'
senior secured credit facilities, and 'BB' senior unsecured
notes.

Standard & Poor's Ratings Services also affirmed its 'BB+'
corporate credit rating on Ball Corp.

All ratings were placed in March 2006.


BANNE SA: Deadline for Verification of Claims Is Set for Oct. 31
----------------------------------------------------------------
Marcelo Horacio Liberman, the court-appointed trustee for Banne
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Oct. 31, 2006.

Under Argentine bankruptcy law, Mr. Liberman is required to
present the validated claims in court as individual reports.
After which, Court No. 6 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
Banne and its creditors.

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

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

Banne was forced into bankruptcy at the request of Viviana Sosa,
whom it owes US$3,808.46.

Clerk No. 11 assists the court in the case.

The debtor can be reached at:

          Banne S.A.
          Avenida Santa Fe 1721
          Buenos Aires, Argentina

The trustee can be reached at:

          Marcelo Horatio Liberman
          Pinzon 1555
          Buenos Aires, Argentina


DAYCOM SRL: Trustee Verifies Proofs of Claim Until Oct. 27
----------------------------------------------------------
Mirta Andrada, the court-appointed trustee for Daycom S.R.L.'s
bankruptcy case, verifies creditors' proofs of claim until
Oct. 27, 2006.

Under Argentine bankruptcy law, Ms. Andrada is required to
present the validated claims in court as individual reports.
Court No. 3 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 Daycom and its
creditors.

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

Ms. Andrada will also submit a general report that contains an
audit of Daycom's accounting and banking records.  The report
submission dates have not been disclosed.

Daycom was plunged into bankruptcy at the request of Obra Social
de los Empleados de Comercio y Actividades Civiles, which it
owes US$4,054.33.

Clerk No. 5 assists the court in the case.

The debtor can be reached at:

          Daycom S.R.L.
          Tucuman 432
          Buenos Aires, Argentina

The trustee can be reached at:

          Mirta Andrada
          Malabia 187
          Buenos Aires, Argentina


FIDEICOMISOS FAID: Evaluadora Rates US$30,000 Certificates at C
---------------------------------------------------------------
Evaluadora Latinoamericana S.A rates Fideicomisos Financieros
FAID 2007's Certificados de Participacion for US$30,000 at C.
The certificates will become due on Feb. 28, 2008.


FIDEICOMISOS FIDEIAGRO: Evaluadora Puts C Rating on US$20K Debt
---------------------------------------------------------------
Fideicomisos Financiero Fideiagro 2009's debts are rated by
Evaluadora Latinoamericana S.A.:

   -- Certificados de Participacion for US$20,000, due
      Mar. 1, 2010, C;

   -- Valores de Deuda Fiduciaria Clase A for US$770,000, due
      Mar. 1, 2010, A; and

   -- Valores de Deuda Fiduciaria Clase B for US$3,210,000, due
      Mar. 1, 2010, BBB.


MASTELLONE HERMANOS: S&P Rates US$7.091-Million Notes at raD
------------------------------------------------------------
Mastellone Hermanos S.A.'s Obligaciones Negociables for
US$7,091,000, from originally US$225 million, is rated raD by
Standard and Poor's.  The rating action was based on the
company's financial status at June 30, 2006.


ORBLAZ SA: Asks for Court Approval to Reorganize Business
---------------------------------------------------------
Court No. 12 in Buenos Aires is studying the merits of Orblaz
S.A.'s petition to reorganize its business after it stopped
paying its debts on Aug. 14, 2006.

The petition, once approved by the court, will allow Orblaz to
negotiate a settlement with its creditors in order to avoid a
straight liquidation.

Clerk No. 23 assists the court in the proceeding.

The debtor can be reached at:

          Orblaz S.A.
          Chile 1831
          Buenos Aires, Argentina


PLASTI TARSA: Claims Verification Deadline Is Set for Oct. 24
-------------------------------------------------------------
Ricardo Adrogue, the court-appointed trustee for Plasti Tarsa
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Oct. 24, 2006.

Under Argentine bankruptcy law, Mr. Adrogue 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 Plasti Tarsa and its
creditors.

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

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

Plasti Tarsa was forced into bankruptcy at the behest of Obra
Social del Personal de la Industria del Plastico, which it owes
US$11,087.41

Clerk No. 21 assists the court in the case.

The debtor can be reached at:

          Plasti Tarsa S.A.
          Maipu 350
          Buenos Aires, Argentina

The trustee can be reached at:

          Ricardo Adrogue
          Bouchard 468
          Buenos Aires, Argentina


SALDIAS 2000: Verification of Proofs of Claim Is Until Oct. 24
--------------------------------------------------------------
Court-appointed trustee Susana Gonzalez Cabrerizo verifies
creditors' proofs of claim against bankrupt company Saldias 2000
S.A. until Oct. 24, 2006.

Under Argentine bankruptcy law, Ms. Cabrerizo is required to
present the validated claims in court as individual reports.
Court No. 8 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 Saldias 2000 and its
creditors.

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

Ms. Cabrerizo will also submit a general report that contains an
audit of Saldias 2000's accounting and banking records.  The
report submission dates have not been disclosed.

Saldias 2000 was forced into bankruptcy at the behest of A.
Debernardis y Asociados S.A., which it owes US$262,312.59.

Clerk No. 16 assists the court in the case.

The debtor can be reached at:

          Saldias 2000 S.A.
          San Martin 491
          Buenos Aires, Argentina

The trustee can be reached at:

          Susana Gonzalez Cabrerizo
          Guayaquil 236
          Buenos Aires, Argentina


SIDECO AMERICANA: Fitch Arg Ups US$13.5-M Notes Rating to B(arg)
----------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo SA upgraded the rating of
Sideco Americana SA's Obligaciones Negociables for US$13.5
million from B (arg) to B+ (arg).

The rate was increased after the improvement registered in the
operations of the main companies that belong to the group.
Despite this, Fitch has made clear that the funds coming from
business of predictable and stable income are not able to cover
100% of the group's commitments in the long term.  Fitch also
detects a high level of debt in the company despite the
restructuring proceedings and the repurchase done last year.

Also, as the group doesnt' have its own activity, funding
depends on money coming from other societies and from the buy
and sell of assets, something which brings uncertainty to the
company.

Sideco Americana S.A. is dedicated to the generation and
direction of business related to construction and
infrastructure, mainly in Brazil (55% of the revenues registered
in 2005) and Argentina (40%).  Socma Americana SA, run by the
Macri Family, while the Corporacion Financiera Internacional
holds a 4.36% stake, controls 95.25% of the shares.


SOCIEDAD COMERCIAL: Balance Sheet Upside Down by ARS733,842 Mil.
----------------------------------------------------------------
Sociedad Comercial del Plata SA reported ARS207,557,000 loss for
the semester ended June 30, 2006, compared with ARS166,129,000
loss for the same period in 2005.

This result is affected in part by the suspension of the debt
agreement between Compania General de Combustibles and Sociedad
Comercia.  The suspension came as a result of a complaint
alleging fraud in the company's restructuring.  The increase on
the capital was also suspended as well as any change to be made
on its capital.

If the agreeement or acuerdo preventivo de acreedores is not
reached, Sociedad Comercial could be facing liquidation, which
means interested parties can bid for the company's shares.

However, if the formal restructuring will be affirmed by the
National Commercial Court of Appeal, the company's shareholders'
equity would turn positive to ARS73.9 million.

At June 30, 2006, Sociedad Comercial's balance sheet showed
ARS733,842 million equity deficit compared with ARS100,013
million of positive shareholders equity at Dec. 31, 2005.

             About Socied Comercial del Plata

Sociedad Comercial del Plata S.A.'s principal activities are
carried out through three business segments: petroleum and by-
products, entertainment, and other activities.  The petroleum
and by-products segment includes the production of petroleum,
natural gas, liquefied petroleum gas and gasoline, the
exploration and production of hydrocarbons, the operation of 26
service stations under the brand name PUMA, the processing of
crude petroleum and the distribution of fuel, lubricants,
turpentine, solvents, grease, asphalt, oil and other special
products, the manufacture of macroparaffin used in the
production of candles, matches, floor waxes and shines, carton
packaging, tires and lubricant oil and the transportation of
natural gas.  The entertainment segment includes the operation
of a theme park, a railway station for the theme park and a
casino.  Other activities include the development of single and
multi-family housing, hotels, restaurants, educational
establishments, among others.


SOCIEDAD COMERCIAL: Selling Ertach to Telmex for US$22.5 Million
----------------------------------------------------------------
In a letter to the Buenos Aires Stock Exchange, Sociedad
Comerical del Plata said it is selling its shares at Ertach to
Telefonos de Mexico SA for US$22.5 million.

Ertach supplies wireless communication systems and has more than
6,000 clients.

The sale is expected to close within four months.  The
transaction will have to be approved by the judge handling
Sociedad Comercial's debt restructuring.  If an agreement is
reached, the sale of Ertach will give Sociedad Comercial a
consolidated gain of ARS44 million.

                        About Telmex

Telmex -- http://www.telmex.com.mx-- is Mexico's incumbent
telco with control of about 95% of the country's fixed line
infrastructure.  The company and its subsidiaries offer a wide
range of advanced telecommunications, data and video services,
Internet access as well as integrated telecom solutions for
corporate customers.

              About Socied Comercial del Plata

Sociedad Comercial del Plata S.A.'s principal activities are
carried out through three business segments: petroleum and by-
products, entertainment, and other activities.  The petroleum
and by-products segment includes the production of petroleum,
natural gas, liquefied petroleum gas and gasoline, the
exploration and production of hydrocarbons, the operation of 26
service stations under the brand name PUMA, the processing of
crude petroleum and the distribution of fuel, lubricants,
turpentine, solvents, grease, asphalt, oil and other special
products, the manufacture of macroparaffin used in the
production of candles, matches, floor waxes and shines, carton
packaging, tires and lubricant oil and the transportation of
natural gas.  The entertainment segment includes the operation
of a theme park, a railway station for the theme park and a
casino.  Other activities include the development of single and
multi-family housing, hotels, restaurants, educational
establishments, among others.

At June 30, 2006, Sociedad Comercial's balance sheet showed
ARS733,842 million equity deficit compared with ARS100,013
million of positive shareholders equity at Dec. 31, 2005.


TRANSENER: Fitch Raises Notes' Rating to B from BB
--------------------------------------------------
The rating of the Obligaciones Negociables issued by Transener
have been increased from B to BB by Fitch.  Also, the rate of BB
has been given to the titles ON Clase B and the ON Clase 2; the
ONs Clase A were given the rate of D and the program of ON for
US$525 million has been retired.

The increase on the rate shows the positive impact that the
economic flexibility has had on the company.  This could also
produce an increase in the amounts of funds that the cpmpany
might get.

Transener still suffers from the imbalance of earning in pesos
while paying debts in dollars.

Trasnsener agreed with the government for a 31% adjustment on
its rates, an amount that gives the company an important
increase on the generation of funds from its most stable income.

By September 2005, the EBITDA of Transener was reduced by 35%.




=============
B A H A M A S
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COMPLETE RETREATS: R. Glanville Balks at Compensation Procedure
---------------------------------------------------------------
Robert Glanville raises his objection to Complete Retreats LLC
and its debtor-affiliates' request for interim procedures for
compensating and reimbursing professionals approved by the U.S.
Bankruptcy Court for the District of Connecticut.

In their request, the Debtors specifically proposed that:

   (a) By the 20th day of each month, after the month for which
       compensation is sought, each Professional will serve a
       monthly statement to:

       * the Debtors,
       * the counsel for the Debtors,
       * the counsel for the Debtors' postpetition DIP lenders,
       * the counsel for the Creditors Committee; and
       * the Office of the United States Trustee.

       The first Monthly Statement will be due on
       Sept. 20, 2006, for the period covering the Debtors'
       bankruptcy filing through and including Aug. 31, 2006;

   (b) Any party that objects to a Monthly Statement is required
       to serve on the Affected Professional and the Notice
       Parties, within 20 days after the service of the Monthly
       Statement, a written statement that:

         -- describes the precise nature and basis of the
            Objection; and

         -- specifies the amount of objectionable fees or
            expenses at issue;

   (c) If an Objection is served, the Objecting Party and the
       Affected Professional are required to make a good-faith
       attempt to resolve the Objection on a consensual basis.
       All Objections that are not resolved by the parties will
       be preserved and presented to the Court at the next
       interim or final fee application hearing;

   (d) If no Objection to a Monthly Statement has been served
       prior to the relevant Objection Deadline, the Affected
       Professional will serve on the Debtors and their counsel
       a certification that there has been no Objection to its
       Monthly Statement, and the Debtors are authorized to pay
       80% of the sought fees and 100% of the sought expenses.

       If an Objection is timely served, the Affected
       Professional will serve on the Debtors and their counsel
       a certification indicating that there has been an
       Objection and stating the total fees and expenses in the
       Monthly Statement not subject to the Objection.  The
       Debtors are then authorized to pay the Affected
       Professional an amount equal to 80% of the fees and 100%
       of the expenses not subject to the Objection;

   (e) From Jul. 23, 2006 through Oct. 31, 2006, and at four-
       month intervals afterwards, each Professional will file
       with the Court, within 30 days of the end of the Interim
       Fee Period, an interim fee application for interim Court
       approval and allowance of 100% of the compensation and
       expense reimbursement sought in the Monthly Statements
       served during the Interim Fee Period;

   (f) If an Objection to all or part of the Interim Fee
       Application is timely and properly filed within 30 days
       from the filing of the Interim Fee Application, the
       Objection will be considered at the Interim Fee Hearing;

   (g) If no Objection to the Interim Fee Application is timely
       and properly filed by the applicable Fee Objection
       Deadline, the Professional will file with the Court and
       serve on the Debtors and their counsel a certification
       that there have been no Objections to its Interim Fee
       Application;

   (h) The Court will convene an Interim Fee Hearing on pending
       Interim Fee Applications, once every four months.  The
       Debtors will provide notice of all Interim Fee Hearings
       to the Notice Parties; and

   (i) A pending objection to a Monthly Statement or an Interim
       Fee Application will not disqualify a Professional from
       the future payment of compensation or reimbursement of
       expenses that are requested in accordance with the
       Compensation Procedures.

Mr. Glanville complains that the proposed Compensation
Procedures do not require the Court-approved professionals to
file Monthly Fee Statements with the Court or serve them on
parties-in-interest.  Thus, the fees and expenses incurred by
retained professionals will not be publicly disclosed until the
first formal fee applications, which under the proposed
Compensation Procedures will not be filed until Nov. 30, 2006.

The first Monthly Statements, for the period from the Petition
Date through Aug. 31, 2006, will be served on Sept. 20, 2006.

"In many chapter 11 cases, this time lapse might be
inconsequential, but that is not true [in the Debtors' case],"
Thomas D. Goldberg, Esq., at Day, Berry & Howard LLP, in
Stamford, Connecticut, argues.  "According to the Debtors' own
filings, many of the decisions regarding the reorganization of
the Debtors and the financing of the reorganization must be made
within the coming weeks.  Thus, information regarding the
estates' administrative obligations should be available to
creditors on a current basis."

Accordingly, Mr. Glanville asks the Court to require the Debtors
to file the Monthly Statements with the Court and be made
available on the electronic docket, in addition to being served
on the Debtors, the counsel for the Debtors, the counsel for the
Official Committee of Unsecured Creditors and the Office of the
U.S. Trustee.

Mr. Goldberg asserts that the disclosure is necessary because it
will promote transparency, and thus will give the members of
Complete Retreats destination clubs more confidence in the
ongoing reorganization process.  The disclosure will also permit
club members and other creditors to understand the ongoing costs
of administering the estate.

Furthermore, the Debtors' ability to reorganize may be
determined long before the first formal fee applications are
filed in Nov. 2006, Mr. Goldberg notes.  One looming issue is
whether members will pay annual dues installments in late Sept.
2006.  That may depend in turn on whether the members have
confidence in the Debtors' ability to reorganize and whether the
Debtors are frankly disclosing ongoing costs, including
professional fees, Mr. Goldberg says.

Requiring the professionals to file Monthly Statements will not
impose an undue burden on the professionals of the estate, Mr.
Goldberg contends.

The applicable professionals are very experienced in filing fee
applications, and can formulate the work descriptions in the
Monthly Statements without disclosing privileged or other
confidential information, Mr. Goldberg asserts.  Finally, to the
extent there is a concern that a particular work description may
jeopardize privilege or confidentiality, the entry can simply be
redacted, Mr. Goldberg adds.

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


COMPLETE RETREATS: U.S. Trustee Says Professional Fees Can Wait
---------------------------------------------------------------
Diana G. Adams, the Acting United States Trustee for Region 2,
raises her objection to Complete Retreats LLC and its debtor-
affiliates' request for interim procedures for compensating and
reimbursing professionals approved by the U.S. Bankruptcy Court
for the District of Connecticut.

In their request, the Debtors specifically proposed that:

   (a) By the 20th day of each month, after the month for which
       compensation is sought, each Professional will serve a
       monthly statement to:

       * the Debtors,
       * the counsel for the Debtors,
       * the counsel for the Debtors' postpetition DIP lenders,
       * the counsel for the Creditors Committee; and
       * the Office of the United States Trustee.

       The first Monthly Statement will be due on
       Sept. 20, 2006, for the period covering the Debtors'
       bankruptcy filing through and including Aug. 31, 2006;

   (b) Any party that objects to a Monthly Statement is required
       to serve on the Affected Professional and the Notice
       Parties, within 20 days after the service of the Monthly
       Statement, a written statement that:

         -- describes the precise nature and basis of the
            Objection; and

         -- specifies the amount of objectionable fees or
            expenses at issue;

   (c) If an Objection is served, the Objecting Party and the
       Affected Professional are required to make a good-faith
       attempt to resolve the Objection on a consensual basis.
       All Objections that are not resolved by the parties will
       be preserved and presented to the Court at the next
       interim or final fee application hearing;

   (d) If no Objection to a Monthly Statement has been served
       prior to the relevant Objection Deadline, the Affected
       Professional will serve on the Debtors and their counsel
       a certification that there has been no Objection to its
       Monthly Statement, and the Debtors are authorized to pay
       80% of the sought fees and 100% of the sought expenses.

       If an Objection is timely served, the Affected
       Professional will serve on the Debtors and their counsel
       a certification indicating that there has been an
       Objection and stating the total fees and expenses in the
       Monthly Statement not subject to the Objection.  The
       Debtors are then authorized to pay the Affected
       Professional an amount equal to 80% of the fees and 100%
       of the expenses not subject to the Objection;

   (e) From July 23, 2006 through Oct. 31, 2006, and at four-
       month intervals afterwards, each Professional will file
       with the Court, within 30 days of the end of the Interim
       Fee Period, an interim fee application for interim Court
       approval and allowance of 100% of the compensation and
       expense reimbursement sought in the Monthly Statements
       served during the Interim Fee Period;

   (f) If an Objection to all or part of the Interim Fee
       Application is timely and properly filed within 30 days
       from the filing of the Interim Fee Application, the
       Objection will be considered at the Interim Fee Hearing;

   (g) If no Objection to the Interim Fee Application is timely
       and properly filed by the applicable Fee Objection
       Deadline, the Professional will file with the Court and
       serve on the Debtors and their counsel a certification
       that there have been no Objections to its Interim Fee
       Application;

   (h) The Court will convene an Interim Fee Hearing on pending
       Interim Fee Applications, once every four months.  The
       Debtors will provide notice of all Interim Fee Hearings
       to the Notice Parties; and

   (i) A pending objection to a Monthly Statement or an Interim
       Fee Application will not disqualify a Professional from
       the future payment of compensation or reimbursement of
       expenses that are requested in accordance with the
       Compensation Procedures.

The United States Trustee points out that the Debtors have not
yet filed their Schedules of Assets and Liabilities and
Statements of Financial Affairs.  In addition, the Debtors'
Meetings of Creditors have not been held.  "Even when begun, the
Meetings of Creditors cannot be closed until after the Debtors
have filed their respective schedules and statements of
financial affairs," the U.S. Trustee says.

The U.S. Trustee contends that the compensation of professionals
should wait until the filing of the Debtors' Schedules and
Statements.  Without those Schedules and Statements, it is not
possible to fully and accurately evaluate the Debtors' ability
to fund professional fees without risk to the bankruptcy
estates.

Moreover, the U.S. Trustee asserts that it would be premature
for the Court to enter an order concerning interim compensation
procedures since it has not yet entered orders allowing the
employment and retention of professionals for the Debtors and
the Official Committee of Unsecured Creditors.

The Interim Compensation Motion proposes that professionals will
be paid regularly without the need to file a fee application
before payment, with formal fee applications being made every
120 days.  The U.S. Trustee suggests that to the extent the
Court will consider granting the Motion and in the interests of
a full disclosure of accruing fees, if a professional does not
file a fee application within 30 days of the end of each 120-day
cycle, that professional should forfeit the opportunity to
receive any further regular payments until the time its fee
applications are made and brought fully up-to-date.

Accordingly, the U.S. Trustee asks the Court to schedule a
hearing on the Debtors' request so that the issues it has
presented may be considered.

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


COMPLETE RETREATS: Case Summary & 50 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Complete Retreats, LLC
        fdba Tanner & Haley Resorts
        fdba Tanner & Haley Worldwide Resorts
        fdba Tanner & Haley Worldwide
        fdba Tanner & Haley Destination Clubs
        fdba A & K Destinations
        fdba Abercrombie & Kent Destinations
        fdba Abercrombie & Kent Destination Clubs
        285 Riverside Avenue, Suite 310
        Westport, CT 06880
        Tel: (203) 291-5500

Bankruptcy Case No.: 06-50245

Debtor-affiliates filing separate chapter 11 petitions on
Aug. 18, 2006:

      Entity                                     Case No.
      ------                                     --------
      DR Abaco, LLC                              06-50343

Debtor-affiliates filing separate chapter 11 petitions on
July 23, 2006:

   Entity                                             Case No.
   ------                                             --------
   Preferred Retreats, LLC                            06-50246
   LR Management Company, LLC                         06-50247
   New Retreats Holding Co., LLC                      06-50248
   T&H Villas, LLC                                    06-50249
   Town Clubs, LLC                                    06-50250
   Preferred Aviation, LLC                            06-50251
   Preferred Retreats Travel Company, LLC             06-50252
   Preferred Retreats Design Group, LLC               06-50253
   Private Retreats, LLC                              06-50254
   European Retreats, LLC                             06-50255
   Distinctive Retreats, LLC                          06-50256
   DR MGM I, LLC                                      06-50257
   DR MGM II, LLC                                     06-50258
   DR MGM III, LLC                                    06-50259
   DR MGM IV, LLC                                     06-50260
   Private Retreats Steamboat, LLC                    06-50261
   Private Retreats Steamboat II, LLC                 06-50262
   Private Retreats Telluride I, LLC                  06-50263
   Private Retreats Kamalani, LLC                     06-50264
   Private Retreats Tortuga, LLC                      06-50265
   Private Retreats Whitewing, LLC                    06-50266
   Private Retreats Belfair, LLC                      06-50267
   Private Retreats Cabin 4, LLC                      06-50268
   Private Retreats Cabin 8, LLC                      06-50269
   Private Retreats Colinas, LLC                      06-50270
   Private Retreats Yacht Club Tortola, LLC           06-50271
   Private Retreats Yacht Club Mediterranean, LLC     06-50272
   Private Retreats Teton I, LLC                      06-50273
   Private Retreats Snake River I, LLC                06-50274
   Private Retreats Snake River II, LLC               06-50275
   Private Retreats Stowe II, LLC                     06-50276
   Private Retreats Stowe III, LLC                    06-50277
   Private Retreats Preserve Way, LLC                 06-50278
   Private Retreats Highpoint, LLC                    06-50279
   Private Retreats Tortola, LLC                      06-50280
   Private Retreats Pinecone 305, LLC                 06-50281
   Private Retreats Deer Valley I, LLC                06-50282
   Private Retreats Tahoe I, LLC                      06-50283
   Private Retreats Tahoe II, LLC                     06-50284
   Private Retreats Tahoe III, LLC                    06-50285
   Private Retreats Belize, LLC                       06-50286
   Private Retreats Hospitality, LLC                  06-50287
   Private Retreats Powell II, LLC                    06-50288
   Private Retreats Powell III, LLC                   06-50289
   PR Esperanza II, LLC                               06-50290
   PR Esperanza III, LLC                              06-50291
   Olde Cypress I PR, LLC                             06-50292
   Olde Cypress II PR, LLC                            06-50293
   PR Vegas III, LLC                                  06-50294
   A&K Destinations, LLC                              06-50295
   A&K Luxury Automobiles, LLC                        06-50296
   Bermuda Cliffs, LLC                                06-50297
   Private Retreats II, LLC                           06-50298
   Private Retreats Nevis, LLC                        06-50299
   Distinctive Retreats II, LLC                       06-50300
   Legendary Retreats, LLC                            06-50301
   Private Retreats Casa Dorada, LLC                  06-50302
   Private Retreats Summit, LLC                       06-50303
   P180, LLC                                          06-50304
   DR Cerezas, LLC                                    06-50305
   Preferred Brokerage, LLC                           06-50306

Type of Business: Founded in 1998, the Debtors operate five-star
                  hospitality and real estate management
                  businesses and are pioneers and market leaders
                  of the destination club industry.  The Debtors
                  operate under the trade name Tanner & Haley
                  Resorts.  See http://www.akdestinations.com/
                  and http://www.tannerandhaley.com/

                  In addition to their mainline destination club
                  business, the Debtors also operate an air
                  travel program for destination club members, a
                  villa business, luxury car rental services,
                  wine sales services, fine art sales program,
                  and other amenity programs for members.
                  See http://www.tannerandhaleyjets.com/and
                  http://www.tannerandhaleyvillas.com/

Chapter 11 Petition Date: July 23, 2006

Court: District of Connecticut (Bridgeport)

Judge: Alan H.W. Shiff

Debtors' Counsel: Nicholas H. Mancuso, Esq.
                  Jeffrey K. Daman, Esq.
                  Dechert LLP
                  90 State House Square
                  Hartford, Connecticut 06103
                  Tel: (860) 524-3950
                  Fax: (860) 524-3930

                       -- and --

                  Joel H. Levitin, Esq.
                  David C. McGrail, Esq.
                  Richard A. Stieglitz Jr., Esq.
                  Dechert LLP
                  30 Rockefeller Plaza
                  New York City 10112
                  Tel: (212) 698-3500
                  Fax: (212) 698-3599

Debtors' Financial
and Restructuring
Advisor:          XRoads Solutions Group, LLC
                  1821 East Dyer Road, Suite 225
                  Santa Ana, California 92705
                  Tel: (949) 567-1600
                  Fax: (949) 567-1655
                  http://www.xroadsllc.com/

Estimated Assets:  Unknown

Total Debts:  US$308,000,000

Debtors' Consolidated List of their 50 Largest Unsecured
Creditors:

  Entity                         Nature of Claim    Claim Amount
  ------                         ---------------    ------------
Janine Schlierf                   Litigation Claim       Unknown
59 Bob Hill Road
Ridgefield, CT 06877
c/o Koskoff, Koskoff & Bieder
350 Fairfield Avenue
Bridgeport, CT 06604
Tel: (203) 336-4421
Fax: (203) 368-3244

Gregory Wendt                    Membership Deposit US$1,300,000
1 Market Street
Stuart Tower 1800
San Francisco, CA 94105-1409
Tel: (415) 393-7161

Scott Walchek                    Membership Deposit US$1,300,000
295 Barrington Lane
Alamo, CA 94507
Tel: (925) 297-1212

Wil Vanloh                       Membership Deposit US$1,300,000
3208 Locke Lane
Houston, TX 77019

Ignacio Torras                   Membership Deposit US$1,300,000
777 Post Oak Boulevard
Suite 650
Houston, TX 77056
Tel: (713) 963-0066

Nick Thakore                     Membership Deposit US$1,300,000
11 Cranmore Road
Wellesley, MA 02481

Greg Newman                      Membership Deposit US$1,300,000
389 South Avenue
Alamo, CA 94507
Tel: (925) 820-1218

Peter Lowe                       Membership Deposit US$1,300,000
1370 South Ocean Boulevard
Manalasan, FL 33462

Len J. Lauer                     Membership Deposit US$1,300,000
2927 Verona Road
Mission Hills, KS 66208

Stephen Kaplan                   Membership Deposit US$1,300,000
434 Marguerita
Santa Monica, CA 90402

Mark Houghton-Berry              Membership Deposit US$1,300,000
Corner Green, South Drive
Virginia Water
Surrey GU 25 4JS

John Harvey                      Membership Deposit US$1,300,000
6805 Avondale
Oklahoma City, OK 73116
Tel: (405) 848-3560

Alan Fox                         Membership Deposit US$1,300,000
12411 Ventura Boulevard
Studio City, CA 91604
Tel: (818) 519-6666

Boyd Fellows                     Membership Deposit US$1,300,000
32 Shady Lane
Ross, CA 94957
Tel: (415) 456-4900

Richard Cornelius                Membership Deposit US$1,300,000
8 Camargo Pines Lane
Cincinnati, OH 45243
Tel: (513) 984-9440

Chris Stevens                    Membership Deposit   US$750,000
1816 Tribute Road
Sacramento, CA 95815
Tel: (916) 643-1444

Piper Rudnick Gray Cary          Legal Services       US$671,651
Douglas A. Rappaport, Esq.
1251 Avenue of the Americas
New York City, NY 10020
Tel: (212) 835-6000
Fax: (212) 835-6001

Intagio                          Media Services       US$655,974
Roger Juntilla, Esq.
Steven Lewicky, Esq.
22 Fourth Street, Suite 1120
San Francisco, CA 94103
Tel: (415) 247-9500
Fax: (415) 284-5366

Abercrombie & Kent               Sales & Marketing    US$532,462
1520 Kensington Road             Services
Oak Brook, IL 60523
Tel: (800) 323-7308
Fax: (630) 954-3324

Double AA Builders               Trade Debt           US$503,883
Geoffrey E. Schwan, Esq.
Holden Brodman, Esq.
6040 East Thomas Road
Scottsdale, AZ 85251

Vickie Sanders                   Membership Deposit   US$479,500
319 8th Avenue West
Kirkland, WA 98033
Tel: (425) 889-8218

Patricia Sullivan                Membership Deposit   US$477,250
5445 Harbortown Circle
Prospect, KY 50059
Tel: (502) 228-5059

Guy Bond                         Membership Deposit   US$475,000
2929 Allen Parkway, Suite 1530
Houston, TX 77019
Tel: (713) 526-4848

Carl Bufka                       Membership Deposit   US$475,000
8735 Lapalama Lane
Naples, FL 34108
Tel: (239) 594-9129

Chad Carpenter                   Membership Deposit   US$475,000
42366 North 111th Place
Scottsdale, AZ 85262
Tel: (480) 488-0301

Fred Gould                       Membership Deposit   US$475,000
60 Cutter Mill Road
Great Neck, NY 11021
Tel: (516) 773-2747

William Green                    Membership Deposit   US$475,000
14 Bluewater Hill
Westport, CT 06880
Tel: (203) 222-7890

Richard Korpan                   Membership Deposit   US$475,000
31483 Morning Star
Evergreen, CO 80439
Tel: (303) 679-1708

Randy Heady                      Membership Deposit   US$474,805
5320 Spring Valley Road
Suite 220
Dallas, TX 75254
Tel: (972) 661-1606

Tom Fallon                       Membership Deposit   US$474,415
95 Patricia Drive
Atherton, CA 94027
Tel: (650) 839-1050

Joseph Cusimano                  Membership Deposit   US$472,644
800 North Michigan Avenue
Apartment 4601
Chicago, IL 60611
Tel: (312) 867-0271

Jess Mogul                       Membership Deposit   US$470,839
347 West 87th Street, Suite 1
New York City, NY 10024
Tel: (212) 875-9793

James Gray                       Membership Deposit   US$460,000
3420 Oyster Bay Court
Cincinnati, OH 45244
Tel: (513) 561-7943

Steve Sadek                      Membership Deposit   US$460,000
7855 North Pehasant Lane
River Hills, WI 53217
Tel: (414) 540-9510

Raymond Dee                      Membership Deposit   US$452,895
938 Spanish Moss Trail
Naples, FL 34108
Tel: (239) 591-0161

Michael George                   Membership Deposit   US$450,925
108 Quail Lane
Wayne, PA 19087
Tel: (610) 688-8145

Dennis Kavelman                  Membership Deposit   US$450,473
557 Hemingway Place
Waterloo, N2TI24
Tel: (519) 885-8223

Bruce T. Bishop                  Membership Deposit   US$450,450
1405 South Veaux Loop
Norfolk, VA 23509
Tel: (757) 628-5573

Paul Dietz                       Membership Deposit   US$450,000
1025 East Maple, Suite 200
Birmingham, MI 48009
Tel: (248) 644-9163

John Georgius                    Membership Deposit   US$450,000
466 Fenton Place
Charlotte, NC 28207-1918
Tel: (704) 333-9547

William Graham                   Membership Deposit   US$450,000
4435 University Boulevard
Dallas, TX 75205
Tel: (340) 776-2287

George Greenwald                 Membership Deposit   US$450,000
9504 East Rising Sun Drive
Scottsdale, AZ 85262
Tel: (970) 954-6379

Scott Rechler                    Membership Deposit   US$450,000
2255 Broadhollow Road
Melville, NJ 11747
Tel: (631) 622-6622

James Verdorn                    Membership Deposit   US$450,000
9203 Victoria Drive
Eden Prairie, MN 55347
Tel: (952) 906-0497

Tom White                        Membership Deposit   US$450,000
2801 Van Dam Street
Lincoln, NE 68502
Tel: (402) 421-1604

David Whiting                    Membership Deposit   US$450,000
P.O. Box 1108
Tustin, CA 92781-1108
Tel: (949) 499-4678

Jim Gilbert                      Membership Deposit   US$448,635
9 Alden Road
Wellesley, MA 02481
Tel: (781) 237-6502

Keith Schumann                   Membership Deposit   US$448,635
101 Laurel Keep
Williamsburg, VA 23185
Tel: (757) 220-8743

Arthur Epker                     Membership Deposit   US$448,375
31 Candleberry Lane
Weston, MA 02493
Tel: (617) 526-8992

Brad Daugherty                   Membership Deposit   US$447,903
1239 Cane Creek Road
Fletcher, NC 28732
Tel: (828) 277-7526


PINNACLE ENT: Extends Tender Offer Deadline to Aug. 30
------------------------------------------------------
Pinnacle Entertainment, Inc., extended the expiration date of
its offer to purchase any and all of the outstanding 12% Notes
due 2001 (Cusip No. 740822AA9) and 13% Senior Exchange Notes due
2001 (Cusip No. 740848AF3) issued by President Casinos, Inc.,
until 8:00 a.m., New York City time, on Aug. 30, 2006.  The
previously-scheduled expiration date was 8:00 a.m., New York
City time, on Aug. 23, 2006.  Subject to the satisfaction of the
remaining tender offer conditions, the company will accept and
purchase any Notes validly tendered on or prior to the extended
expiration date.

The terms and conditions of the tender offer for the Notes are
more particularly described in the company's Offer to Purchase
dated July 19, 2006.  As of Aug. 22, 2006, approximately US$74.2
million, or about 98.9% of the outstanding original principal
amount of the Notes, has been tendered.  Of this amount, the
company has already purchased US$74.1 million in original Notes
validly tendered prior to or on Aug. 15, 2006.  The company is
offering to purchase Notes at a purchase price of US$809.07 per
US$1,000.00 of original principal amount of the Notes.

HSBC Bank USA, National Association, is the depositary agent in
connection with the Tender Offer.  D.F. King & Co., Inc. is the
information agent for the Tender Offer.  Requests for copies of
the Offer to Purchase and Letter of Transmittal should be
directed to the information agent at (800) 967-7635.

                   About President Casinos

Headquartered in St. Louis, Missouri, President Casinos Inc.
-- http://www.presidentcasino.com/-- currently owns and
operates a dockside gaming casino in St. Louis, Missouri through
its wholly owned subsidiary, President Missouri.  The Debtor
filed for chapter 11 protection on June 20, 2002 (Bankr. S.D.
Miss. Case No. 02-53055).  On July 11, 2002, substantially all
of Debtor's other operating subsidiaries filed for chapter 11
protection in the same Court.  The Honorable Judge Edward Gaines
ordered the transfer of President Casino's chapter 11 cases from
Mississippi to Missouri.  The case was reopened on Nov. 5, 2002
(Bankr. E.D. Mo. Case No. 02-53005).  Brian Wade Hockett, Esq.,
at Hockett Thompson Coburn LLP, represents the Debtors in their
restructuring efforts.  David A. Warfield, Esq., at Blackwell
Sanders Peper Martin LLP, represents the Official Committee of
Unsecured Creditors.  The Company's balance sheet at Nov. 30,
2005 showed assets totaling US$66,292,000 and debts totaling
US$75,531,000.

                       About Pinnacle

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

                        *    *    *

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

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

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




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


ANNUITY & LIFE: Incurs US$649,959 Second Quarter 2006 Net Loss
--------------------------------------------------------------
Annuity and Life Re (Holdings), Ltd., reported financial results
for the three months ended June 30, 2006.

The reinsurer reported a net loss of US$(649,959) or US$(0.03)
per fully diluted share as compared to a net loss of
US$(539,968) or US$(0.02) per fully diluted share for the three
months ended June 30, 2005, and a net loss of US$(1,005,511) or
US$(0.04) per fully diluted share for the six months ended
June 30, 2006, compared with a net loss of US$(1,308,631) or
US$(0.05) per fully diluted share for the six months ended
June 30, 2005.  Total Stockholder's Equity at June 30, 2006, is
US$44,560,969.

Net realized investment losses for the three months ended
June 30, 2006, were US$(697,189), as compared with net realized
investment losses of US$(1,058,052) for the three months ended
June 30, 2005.

Gross unrealized losses on the company's investments were
US$(484,484) as of June 30, 2006, as compared with gross
unrealized gains of US$673,675 at June 30, 2005.  The company's
investment portfolio currently maintains an average credit
quality of AA.  Cash used by operations for the six months ended
June 30, 2006, was US$4,993,547 as compared to cash used by
operations of US$41,566,790 for the six months ended
June 30, 2005.

Annuity and Life Reassurance, Ltd., and Transamerica entered
into an Agreement to novate the company's reinsurance contracts
with F&G and Scottish Re to Transamerica effective
Dec. 31, 2004.  The company is currently in a dispute with
Transamerica concerning both the F&G and Scottish Re aspects of
the novation.

With respect to F&G, Transamerica contends that there should be
adjustments to the policy benefit reserves transferred to
Transamerica.  On March 30, 2005, the company received a demand
letter from Transamerica stating that US$7,000,000 was owed to
Transamerica as an adjustment to the F&G policy benefit
reserves.  On June 14, 2005, the company received an additional
letter from Transamerica revising its original demand to
US$6,000,000.  The company and Transamerica were unable to
resolve the issues through negotiations and the matter is now in
arbitration.

In addition, Transamerica for the first time asserted claims
relating to the Scottish Re contracts when it submitted its
initial position statement to the arbitration panel on
July 20, 2006.  Specifically, Transamerica now alleges that it
is entitled to damages of approximately US$45 million in
connection with the Scottish Re novation.  Transamerica also
asserts that it is entitled to rescind the novations of both the
Scottish Re and F&G books.

Additionally, Transamerica has requested that the arbitration
panel award interim relief in the form of a trust fund, to be
established by Annuity and Life Reassurance, Ltd., in the amount
of US$51 million. This amount is the total damages claimed by
Transamerica in connection with both the F&G and Scottish Re
books.  Transamerica contends that the amount should be held in
trust to secure payment of an ultimate award in the arbitration.
Importantly, Annuity and Life Reassurance, Ltd., the company
that is party to the arbitration, has total assets of less than
US$36 million at June 30, 2006.

On July 27, 2006, the arbitration panel held its organizational
meeting.  At that meeting, the panel scheduled the arbitration
hearing to take place during the week of April 16, 2007.  The
panel is expected to address the interim relief request in late
September or October.

The company believes Transamerica's position with respect to
both the F&G and Scottish Re books is without merit.  The
company is working with counsel in presenting its position to
the arbitration panel.  The company cannot predict the outcome
of the arbitration proceedings or the impact the arbitration may
have on its financial position.

The company has also learned that Scottish Re has made
adjustments to its billing methodology for 2004 and 2005.  These
adjustments indicate that the Company may have received
overpayments of premiums and / or may not have been billed for
claims for which it is responsible. Scottish Re estimates the
adjustments to be approximately US$9 million, most of which
would be related to the period prior to the novation.  The
company has not been provided any data or back-up in order to
validate the adjustment and no additional liability has been
established at this time.  The company cannot predict the timing
or magnitude of any required adjustments related to the Scottish
Re treaty, nor the impact these adjustments may have on its
financial position.

Annuity and Life Re (Holdings), Ltd. provides annuity and life
reinsurance to insurers through its wholly owned subsidiaries,
Annuity and Life Reassurance, Ltd. and Annuity and Life
Reassurance America, Inc.

Annuity and Life Re (Holdings), Ltd. -- http://www.alre.bm/or
http://www.annuityandlifere.com/-- provides annuity and life
reinsurance to insurers through its wholly owned subsidiaries,
Annuity and Life Reassurance, Ltd., and Annuity and Life
Reassurance America, Inc.

                      Going Concern Doubt

Chartered Accountants of Hamilton, Bermuda, raised substantial
doubt about Annuity and Life Re (Holdings), Ltd.'s ability to
continue as a going concern after it audited the company's
annual report for 2004.  The auditor pointed to the company's
significant losses from operations and experience of liquidity
demands.


SCOTTISH RE: Declares Cash Dividend of US$0.4531 Per Share
----------------------------------------------------------
Scottish Re Group Limited declared a cash dividend of US$0.4531
per Perpetual Preferred Share outstanding to be paid on
Oct. 15, 2006, to Perpetual Preferred Share shareholders of
record as of the close of business on Oct. 2, 2006.

                     About Scottish Re

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

                        *    *    *

On Aug. 21, 2006, Standard & Poor's Ratings Services lowered its
counterparty credit rating on Scottish Re Group Ltd. to 'B+'
from 'BB+'.

For the same reason, Moody's Investor Service downgraded
Scottish Re's senior unsecured debt rating to Ba3 from Ba2 due
to liquidity issues.

A.M. Best Co. has downgraded on Aug. 22, 2006, the financial
strength rating to B+ from B++ and the issuer credit ratings to
"bbb-" from "bbb+" of the primary operating insurance
subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman
Islands).  A.M. Best has also downgraded the ICR of Scottish Re
to "bb-" from "bb+".  AM Best put all ratings under review with
negative implications.


SCOTTISH RE: European Insurers Eye Company, Analysts Say
--------------------------------------------------------
Industry analysts and observers noted that leading European
reinsurers Munich Re, Hanover Re and Swiss Re will be interested
in acquiring Scottish Re, Reuters reports.

The ailing Bermudan reinsurer admitted at the possibility of
selling the company or finding an investor to boost liquidty
after a big second-quarter loss.

According to Reuters, Scottish RE would offer the European
insurers a potentially attractive franchise in the United States
life reinsurance market.

Analysts quoted by Reuters said Munich Re and Hannover Re,
despite being major global players, are underweight in the US.

The three companies confirmed in reports that they are willing
to consider acquisitions to bolster their presence in markets
where their presence is weak.

However, Scottish Re's financial situation may discourage bids
from these companies, analysts suggested to Reuters.

"The sticking point for all these companies would be Scottish
Re's financial situation.  There's likely to be a chasm between
the strategic attractiveness of a deal and what the firms would
be willing to pay for that," William Hawkins, insurance analyst
at Keefe, Bruyette and Woods in London, was quoted by Reuters as
saying.

Scottish Re's investment banking advisors, Goldman Sachs and
Bear Stearns, are in the process of preparing a prospectus for
potential bidders, Reuters says, citing market sources.

                     About Scottish Re

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

On Aug. 21, 2006, Standard & Poor's Ratings Services lowered its
counterparty credit rating on Scottish Re Group Ltd. to 'B+'
from 'BB+'.

For the same reason, Moody's Investor Service downgraded
Scottish Re's senior unsecured debt rating to Ba3 from Ba2 due
to liquidity issues.

A.M. Best Co. has downgraded on Aug. 22, 2006, the financial
strength rating to B+ from B++ and the issuer credit ratings to
"bbb-" from "bbb+" of the primary operating insurance
subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman
Islands).  A.M. Best has also downgraded the ICR of Scottish Re
to "bb-" from "bb+".  AM Best put all ratings under review with
negative implications.




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


AMERICAN AXLE: Declares Cash Dividend of US$0.15 Per Share
----------------------------------------------------------
American Axle & Manufacturing Holdings, Inc., declared a cash
dividend of US$0.15 per share payable on Sept. 28, 2006, to
stockholders of record on all of the company's issued and
outstanding common stock as of Sept. 7, 2006.

American Axle & Manufacturing, Inc., headquartered in Detroit,
MI, is a world leader in the manufacture, design, engineering
and validation of driveline systems and related components and
modules, chassis systems, and metal formed products for light
truck, SUVs and passenger cars.  The company has manufacturing
locations in the U.S.A., Mexico, the United Kingdom and Brazil.
The company reported revenues of US$3.4 billion in 2005 and has
approximately 10,900 employees.

                        *    *    *

Standard & Poor's Ratings Services assigned on June 9, 2006, its
'BB' rating to American Axle & Manufacturing Inc.'s US$200
million senior unsecured term loan maturing in April 2010.

At the same time, the 'BB' corporate credit ratings on the
auto supplier and on its parent company, American Axle &
Manufacturing Holdings Inc., were affirmed.  The outlook is
negative.  Total consolidated debt at March 31, 2006, was about
US$575 million.

                        *    *    *

Fitch Ratings has assigned on June 9, 2006, an indicative rating
of 'BB' to the senior unsecured term loan announced by American
Axle & Manufacturing Holdings, Inc., subject to review of the
final amount and terms of the new agreement.  The company's
current ratings are:

   -- Issuer Default Rating (IDR) 'BB';
   -- Senior unsecured 'BB'.

                        *    *    *

Moody's Investors Service affirmed on June 16, 2006, the Ba3
Corporate Family rating of American Axle & Manufacturing
Holdings, Inc. and assigned a Ba3 rating to a new term loan for
American Axle & Manufacturing, Inc.  At the same time, the
rating agency raised American Axle's Speculative Grade Liquidity
rating to SGL-2 from SGL-3.


BANCO NACIONAL: Moody's Reviews Ba1 Senior Unsecured Debt Rating
----------------------------------------------------------------
Moody's Investors Service has placed on review Banco Nacional de
Desenvolvimento Economico e Social aka BNDES' Ba1 foreign
currency rating on its senior unsecured debt.

This follows Moody's released update to its methodology for
rating government related non-bank financial institutions as
well as for rating government entities owned or sponsored by the
government of Japan.  In place of a government's bond rating,
Moody's will now use the newly introduced Local Currency Deposit
Ceiling as a measure of the ability of a national government to
rescue government-owned financial institutions. The change in
methodology may result in rating upgrades for 26 government
related non-bank financial institutions.

The use of the Local Currency Deposit Ceiling as a proxy for a
government's ability to support a troubled financial institution
reflects the important role played by these institutions.
According to Moody's Chief Credit Officer for Financial
Institutions, David Fanger, "experience has shown that a
government or monetary authority may extend support to
government-owned (or chartered) financial institutions in order
to prevent systemic disruptions.  This can occur even after the
government has defaulted on its own obligations."  In
particular, he notes, "governments are motivated to do this
because a failure by a major government-owned (or chartered)
financial institution could negatively affect investor
confidence and spill over into the commercial banking system."

As part of the revised methodology, Moody's also announced that
it will use Japan's Local Currency Deposit Ceiling (Aaa) in
place of the Japan Government Bond rating (A2) as the rating of
the support provider when assessing the credit risk of all
Japanese government related entities.

Three non-financial entities sponsored by the Japanese
government have been placed on review as a result of the revised
methodology.


PETROLEO BRASILEIRO: Inaugurates GasLocal With White Martins
------------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras and White Martins
inaugurated the Gemini Consortium's operations on Aug. 21, 2006.
GasLocal, a company created with the participation of both
corporations, will transport and market liquefied natural gas
produced at the White Martins Paulinia plant, in the state of
Sao Paulo.  The plant will be capable of liquefying 380,000
cubic meters of natural gas per day using cryogenic technology,
which turns gas into liquid.  Total investments in the operation
reached US$50 million.

The Consortium's activities will allow liquefied natural gas to
be provided to areas not yet served by gas pipelines and
distribution networks, such as to consumers in the interior of
the state of Sao Paulo, Northern Parana, Southern Minas Gerais,
and Goias in the Federal District.  Petrobras delivers the
natural gas to be liquefied at the White Martins plant.  After
the industrialization process, the product is transported and
marketed by GasLocal, the Consortium leader, by truck.

The company has already signed several agreements, including
with piped natural gas distribution concessionaires Gasmig,
Goiasgas, and Cebgas.  This LNG supply will allow these
concessionaires to commence operations in the state of Goias and
in the Federal District.  The total volume that has already been
contracted represents about 80% of the plant's production
capacity and is expected to generate 160 direct jobs.

The consortium's initiative reproduces a mode of transportation
that is already widely used to transport natural gas in other
countries such as Japan, Spain, Portugal, and the United States.

During the inauguration ceremony, Petrobras' president, Jose
Sergio Gabrielli de Azevedo, highlighted the symbolic importance
of the first LNG plat in Paulínia which, in addition to setting
a new product into motion in Brazil, will also bring
alternatives to the gas pipelines, facilitating the access to
and the creation of new markets.  "This is a strategic project
for Brazil because it will allow access to a clean and efficient
source of energy, allowing more flexibility to the natural gas
supply."

According to White Martins' president, Domingos Bulus, the
Gemini Consortium going online represents a new modality that
will be used to insert natural gas in the Brazilian energy
matrix and to take the product to the interior of the country,
creating new development possibilities in these regions.  "LNG
is a new product in Brazil, and specialists consider it an
alternative to reduce the country's dependence on foreign
supplies. White Martins invests and believes in this new source
of energy," said Mr. Bulus.

LNG production consists of compressing and cooling natural gas
to below -160°C, reducing its volume 600-fold.  The product is
then transferred and stored as a liquid.  The process begins
when the gas is received through a gas pipeline.  It is then
turned into liquid state, put on tanker trucks capable of
transporting 49,000 cubic meters of LNG each, and shipped to the
customers located up to 1,000 km away from the production plant.

GasLocal also invested in building storage tanks located
strategically at sites where the trucks will arrive.  After
delivered to the customer, the liquefied natural gas will be
regasified to be supplied to local natural gas distributors and
other consumers.

White Martins and Petrobras, via GasLocal, hope to offer the
Brazilian market a new option, generating economy to the
consumer, delivering performance advantages and, furthermore,
benefiting the environment.

                  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+'


TRANSAX INT'L: Golden Cross Increases Medlink's Rollout
-------------------------------------------------------
Transax International Limited disclosed that Golden Cross
Insurance, its second largest client, has authorized the
additional rollout of Medlink's solutions and services.

Under terms of the arrangement, Transax will install
approximately up to 1,000 additional Point of Sale solutions to
over 500 providers throughout Brazil.  Currently, Golden Cross
has over 4,300 Medlink installations, 1,700 of which are POS
terminals.  Golden Cross' provider base includes 1,193
hospitals, 3,959 clinics, 956 labs, 7,222 doctor's offices and
approximately 700 dentists.

Currently, the company executes approximately 300,000
transactions per month for Golden Cross.  The company
anticipates transaction volume will increase by 170,000 per
month, with the majority, or 130,000 monthly transactions, to be
recognized by the end of 2006.  Upon full rollout, Transax will
process over 470,000 transactions on a monthly basis. The
Company anticipates estimated additional net revenue of $105,000
per month (US$1.25 million per year) when fully implemented.

Stephen Walters, President & CEO of Transax, commented, "Golden
Cross has been our first client in Brazil since its early joint
venture with Cigna Insurance of the USA.  Utilizing Medlink's
solutions, Golden Cross has recognized and validated the costs
savings and benefits we offer." Mr. Walters continued, "With
little additional costs, we will be able to achieve the
aggressive rollout planned.  Furthermore, the increase in
transaction volume will support our goal of processing 1 million
transactions per month by the end of 2006."

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

                     Going Concern Doubt

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


VARIG S.A.: Domestic Market Share Slips to 3.54% in July
---------------------------------------------------------
VARIG, S.A.'s domestic market share slid to 3.54% in July 2006,
after it suspended routes, Reuters reports citing data from
Brazil's National Civil Aviation Authority.

               Domestic Market Share
               ---------------------
   Company     July 2006   July 2005
   -------     ---------   ---------
   TAM           51.22%      41.77%
   Gol           36.00%      24.71%
   BRA            4.38%       6.37%
   VARIG          3.54%      24.79%

A decade back, VARIG controlled nearly 50% of the local market,
Reuters notes.

Additionally, VARIG's hold of the international routes slipped
to 29.96% in July 2006, Reuters says.

               International Market
               ---------------------
   Company     July 2006   July 2005
   -------     ---------   ---------
   TAM           52.64%      20.73%
   VARIG         29.96%      74.84%
   Gol           10.92%       2.00%

VARIG is currently flying 12 planes and a portion of its
original routes, The Associated Press reports.  VARIG currently
operates flights in seven Brazilian cities -- Sao Paulo, Rio de
Janeiro, Porto Alegre, Fortaleza, Salvador, Recife and Manaus --
and in Frankfurt, Germany; Buenos Aires, Argentina; Miami and
New York, in the U.S.

VARIG plans to expand its fleet to 45 planes by the end of the
year and up to 75 aircraft by 2008.

VARIG announced late in July that it would lay off 5,500
employees -- about 60% of its workforce in Brazil -- as part of
its judicial recovery plan.  The airline said it would gradually
rehire the dismissed workers once it resumes growth.

                         About VARIG

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

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

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts.


VARIG S.A.: Resuming Flights to Venezuela Today
-----------------------------------------------
VARIG S.A. will resume flights to Venezuela beginning
Aug. 25, 2006, according to Bloomberg News citing El Universal,
a Venezuelan newspaper.

VARIG cancelled several domestic and international flights as
its bankruptcy proceedings continued to drag and it lacked
funding to pay fuel and airport fees.

VARIG will operate six weekly flights between Caracas,
Venezuela, and Manaus and Sao Paolo, Brazil, El Universal said,
according to Bloomberg.  VARIG will also offer discounted fares
for round-trip flights between Caracas and Sao Paolo.

                         About VARIG

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

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

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts. (VARIG Bankruptcy News, Issue No. 30; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


* BRAZIL: Inks Livestock Management Accord with Paraguay
--------------------------------------------------------
The Brazilian state of Mato Grosso do Sul has signed an accord
with Paraguay to implement measures on the improvement of the
sanitary management of livestock, the Agencia Estado newswire
reports.

Dow Jones Newswires relates that the agreement calls for:

    -- mapping of properties and registration of herds,
    -- identification of frontier cattle,
    -- joint action to control animal transit, and
    -- creation of a joint data base.

Agencia Estado notes that the deal allows for the establishment
of Brazilian meatpackers in Paraguay, which will permit Brazil
to purchase fresh beef cuts from Paraguay instead of buying live
cattle.

The Brazilian agriculture ministry had told Dow Jones on Friday
that it would maintain a ban on three cities in Mato Grosso do
Sul state due to latest lab results showing the presence of
foot-and-mouth antigens on 55 properties, even though there were
no new cases of the contagious livestock disease.  The cities
are:

    -- Eldorado,
    -- Japora, and
    -- Mundo Novo.

                        *    *    *

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




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


AJIA-RPMH (ABSOLUTE): Proofs of Claim Must be Filed by Sept. 12
---------------------------------------------------------------
AJIA-RPMH Asia Absolute Return Fund Limited's creditors are
required to submit proofs of claim by Sept. 12, 2006, to the
company's liquidators:

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

Creditors who are not able to comply with the Sept. 12 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

         Richard Mottershead
         P.O. Box 258, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914 8656
         Fax: (345) 949 4590


AJIA-RPMH (MASTER): Last Day to File Proofs of Claim Is Sept. 12
----------------------------------------------------------------
AJIA-RPMH Asia Master Fund Limited's creditors are required to
submit proofs of claim by Sept. 12, 2006, to the company's
liquidators:

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

Creditors who are not able to comply with the Sept. 12 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

         Richard Mottershead
         P.O. Box 258, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914 8656
         Fax: (345) 949 4590


ARGENTINE INVESTMENT: Proofs of Claim Must be Filed by Sept. 12
---------------------------------------------------------------
The Argentine Investment Company's creditors are required to
submit proofs of claim by Sept. 12, 2006, to the company's
liquidators:

         David A.K. Walker
         Lawrence Edwards
         PWC Corporate, Finance & Recovery (Cayman) Limited
         PricewaterhouseCoopers
         Strathvale House, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Sept. 12 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Argentine Investment's shareholders agreed on July 25, 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:

         Cathlin Rossiter
         P.O. Box 258, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914 8663
         Fax: (345) 949 4590


CABLE & WIRELESS: Proofs of Claim Filing Is Until Sept. 12
----------------------------------------------------------
Cable & Wireless Cable Systems Limited's creditors are required
to submit proofs of claim by Sept. 12, 2006, to the company's
liquidators:

         Christopher D. Johnson
         Russell Smith
         Chris Johnson Associates Ltd.
         Strathvale House, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Sept. 12 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Cable & Wireless' shareholders agreed on July 7, 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:

         Shaun Gerard
         P.O. Box 2499, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 946 0820
         Fax: (345) 946 0864


CASCADIA II: S&P Puts BB+ Rating on US$300 Mil. Variable Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' senior
debt rating to the US$300 million principal at risk variable
rate notes issued by Cascadia II Ltd.

"The rating is based primarily on the probability of attachment
related to the modeled peril, earthquakes in Pacific Northwest,
and the ratings of the various parties to the transaction,"
explained Standard & Poor's credit analyst Gary Martucci.

Cascadia II is a Cayman Islands exempted company whose ordinary
shares are held in a charitable trust.  Cascadia II's business
will consist solely of the issuance of the notes and the
execution and performance of the counterparty contract with
Factory Mutual Insurance Co. (FMIC; BBBpi/--/--) and the bank
deposit agreement with Wells Fargo Bank, N.A. (Wells Fargo;
AA+/Stable/A-1+) and related agreements and activities.

Cascadia II has entered into a counterparty contract with FMIC.
This contract requires FMIC to make quarterly payments of 4.10%
(annualized) of the outstanding principal amount of the notes to
Cascadia II.  In return, the contract provides FMIC with a
source of multi-year reinsurance capacity linked to earthquake
exposure for the covered area.

The proceeds from the sale of the notes will be deposited into
an account at Wells Fargo.  Interest on the deposit will be
credited quarterly at a rate of three month US$ LIBOR less 10
basis points.  The payments received by Cascadia II under the
counterparty contract, combined with the payments received under
the bank deposit will be used to make the scheduled interest
payments to the noteholders.

The notes will provide the FMIC with a source of multiyear
parametric cover, analogous to reinsurance, for one or more
earthquakes in the Pacific Northwest.  Under the terms of the
counterparty contract, a portion of FMIC's earthquake exposure
is transferred to the noteholders.  If there is an earthquake,
the calculation agent, EQECAT Inc. will obtain the event
parameters (primarily the depth, magnitude, and epicenter of the
earthquake) from the National Earthquake Information Center and
determine if there was a payout event.

EQECAT Inc.'s, proprietary model was used to determine the
probability of attachment of the notes.  The first-year
probability of attachment for the notes is 99 bps, and the
three-year probability of attachment is 294 bps.

FMIC will pay Cascadia's up-front and ongoing expenses in
connection with this note issuance.  Aon Capital Markets is the
underwriter for the transaction.


CHILECTRA INTERNACIONAL: Proofs of Claim Filing Ends Sept. 12
-------------------------------------------------------------
Chilectra Internacional's creditors are required to submit
proofs of claim by Sept. 12, 2006, to the company's liquidators:

         Maples and Calder, Attorneys-at-law
         P.O. Box 309GT, Ugland House
         South Church Street, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Sept. 12 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Chilectra Internacional's shareholders agreed on July 27, 2006,
for the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


ENERSIS INTERNACIONAL: Claims Filing Deadline Is on Sept. 12
------------------------------------------------------------
Enersis Internacional's creditors are required to submit proofs
of claim by Sept. 12, 2006, to the company's liquidators:

         Maples and Calder, Attorneys-at-law
         P.O. Box 309GT, Ugland House
         South Church Street, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Sept. 12 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Enersis Internacional's shareholders agreed on July 27, 2006,
for the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


EQUITY LCI: Invites Shareholders for a Final Meeting on Sept. 15
----------------------------------------------------------------
Equity LCI Limited's final shareholders meeting will be at 9:00
a.m. on Sept. 15, 2006, at the company's registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Bonnie Willkom
         P.O. Box 111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


EQUITY MIA: Shareholders Convene for a Final Meeting on Sept. 15
----------------------------------------------------------------
Equity MIA Limited's final shareholders meeting will be at 10:30
a.m. on Sept. 15, 2006, at the company's registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Bonnie Willkom
         P.O. Box 111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


GENERATION FUND: Last Day to File Proofs of Claim Is on Sept. 12
----------------------------------------------------------------
Generation Fund Limited's creditors are required to submit
proofs of claim by Sept. 12, 2006, to the company's liquidator:

         David A.K. Walker
         Lawrence Edwards
         PWC Corporate, Finance & Recovery (Cayman) Limited
         PricewaterhouseCoopers
         Strathvale House, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Sept. 12 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Generation Fund's shareholders agreed on July 20, 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:

         Miguel Brown
         P.O. Box 258, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914 8665
         Fax: (345) 949 4590


GREAT EASTERN: Filing of Proofs of Claim Is Until Sept. 12
----------------------------------------------------------
Great Eastern Telecommunications Limited's creditors are
required to submit proofs of claim by Sept. 12, 2006, to the
company's liquidators:

         Christopher D. Johnson
         Russell Smith
         Chris Johnson Associates Ltd.
         Strathvale House, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Sept. 12 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Great Eastern's shareholders agreed on Aug. 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:

         Matthew Smith
         P.O. Box 2499, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 946 0820
         Fax: (345) 946 0864


HERBALIFE LTD: Completes US$165 Million 9-1/2% Notes Redemption
---------------------------------------------------------------
Herbalife Ltd. completed its election to redeem its outstanding
US$165.0 million aggregate principal amount of 9-1/2% Notes due
2011.  The company used the proceeds from its new US$200.0
million term loan to fund the redemption at the mandatory price
of approximately US$110.07 per US$100.00 aggregate principal
amount of Notes and to pay closing costs.

Herbalife advised the Bank of New York, the trustee, of its
election to redeem the Notes in connection with the refinancing
of its former senior secured credit facility.  The company also
had announced that it expects to incur an after-tax one-time
charge of approximately US$14.0 million related the refinancing,
representing the call premium on the Notes and the write-off of
unamortized deferred financing costs.

As reported in the Troubled Company Reporter-Latin America on
July 25, 2006, Herbalife completed the refinancing of its
US$225.0 million senior secured credit facility.  The company's
new debt structure is comprised of a US$300.0 million senior
secured credit facility, consisting of a US$200.0 million,
seven-year term loan and a US$100.0 million, six-year revolving
credit facility.

"This recapitalization is just another step towards
strengthening our overall capital structure, by improving our
flexibility to repay debt and reducing our annual interest
expense," said Rich Goudis, the Company's chief financial
officer.  The company expects to realize the accretive benefit
of this recapitalization beginning in the fourth quarter of
2006.

                       About Herbalife

Herbalife (NYSE:HLF) -- http://ir.herbalife.com/-- is a global
network marketing company that sells weight-management,
nutritional supplements and personal care products intended to
support a healthy lifestyle.  Herbalife products are sold in 62
countries through a network of more than one million independent
distributors.  The company supports the Herbalife Family
Foundation and its Casa Herbalife program to bring good
nutrition to children.

                         *     *     *

As reported in the Troubled Company Reporter on July 4, 2006,
Moody's Investors Service rated the proposed bank loan of
Herbalife International, Inc. at Ba1 and upgraded the corporate
family rating to Ba1.  Herbalife will use proceeds from the new
debt to repay the existing term loan and to redeem the
$165 million issue of 9.5% senior subordinated notes.

At the same time, Standard & Poor's Ratings Services raised its
ratings on Herbalife International Inc., including its corporate
credit rating to 'BB+' from 'BB'.  Standard & Poor's also raised
its ratings on Herbalife's parent, Herbalife Ltd., including the
corporate credit rating to 'BB+' from 'BB'.  The outlook is
stable.


INVESTCORP (ISLAMIC): Final Shareholders Meeting Is on Sept. 15
---------------------------------------------------------------
Investcorp Minimax Islamic Financing Limited's final
shareholders meeting will be at 11:00 a.m. on Sept. 15, 2006, at
the company's registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Bonnie Willkom
         P.O. Box 111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


INVESTCORP (INVESTING): Last Shareholders Meeting Is on Sept. 15
----------------------------------------------------------------
Investcorp Minimax Investing Limited's final shareholders
meeting will be at 11:30 a.m. on Sept. 15, 2006, at the
company's registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Bonnie Willkom
         P.O. Box 111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


LEATHER HOLDINGS: Last Shareholders Meeting Is on Sept. 15
----------------------------------------------------------
Leather Holdings Limited's final shareholders meeting will be at
10:30 a.m. on Sept. 15, 2006, at the company's registered
office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Bonnie Willkom
         P.O. Box 111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


MINIMAX EQUITY: Last Shareholders Meeting Is Set for Sept. 15
-------------------------------------------------------------
Minimax Equity Limited's final shareholders meeting will be at
9:30 a.m. on Sept. 15, 2006, at the company's registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Bonnie Willkom
         P.O. Box 111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


MINIMAX FUNDING: Sets Final Shareholders Meeting on Sept. 15
------------------------------------------------------------
Minimax Funding Limited's final shareholders meeting will be at
9:00 a.m. on Sept. 15, 2006, at the company's registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Bonnie Willkom
         P.O. Box 111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


MINIMAX IIP: Schedules Final Shareholders Meeting on Sept. 15
-------------------------------------------------------------
Minimax IIP Limited's final shareholders meeting will be at
10:00 a.m. on Sept. 15, 2006, at the company's registered
office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Bonnie Willkom
         P.O. Box 111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


MOMENTUM FUND: Creditors Must File Proofs of Claim by Sept. 12
--------------------------------------------------------------
Momentum Fund Limited's creditors are required to submit proofs
of claim by Sept. 12, 2006, to the company's liquidator:

         David A.K. Walker
         Lawrence Edwards
         PWC Corporate, Finance & Recovery (Cayman) Limited
         PricewaterhouseCoopers
         Strathvale House, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Sept. 12 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Momentum Fund's shareholders agreed on July 20, 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:

         Miguel Brown
         P.O. Box 258, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914 8665
         Fax: (345) 949 4590


SPECIALTY EQUITY: Final Shareholders Meeting Is on Sept. 15
-----------------------------------------------------------
Specialty Equity Limited's final shareholders meeting will be at
10:00 a.m. on Sept. 15, 2006, at the company's registered
office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Bonnie Willkom
         P.O. Box 111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


SPECIALTY IIP: Calls Shareholders for Final Meeting on Sept. 15
---------------------------------------------------------------
Specialty IIP Limited's final shareholders meeting will be at
9:30 a.m. on Sept. 15, 2006, at the company's registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Bonnie Willkom
         P.O. Box 111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920




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


SHAW GROUP: Appoints Michael Mancuso to Board of Directors
----------------------------------------------------------
The Shaw Group Inc. named Michael J. Mancuso to the company's
Board of Directors.  Mr. Mancuso is an aerospace, engineering,
and manufacturing industry veteran with over forty years of
corporate management experience particularly in the areas of
financial controls, accounting, and reporting for large complex
contracts, programs, and organizations both domestic and
international.  With the addition of Mr. Mancuso, Shaw's Board
of Directors now has nine members.  He will serve on the board's
audit committee.

Mr. Mancuso recently retired from General Dynamics, a leading
supplier of high-level defense systems to the United States and
its allies, where he served as Senior Vice President and Chief
Financial Officer. In this role, he was responsible for
corporate-wide financial management, consolidation and
reporting, information systems and real estate.  Mr. Mancuso
also had operations management responsibility for the company's
Resources group in aggregates and coal.  He was named Chief
Financial Officer of the company in 1994 and was elected Senior
Vice President by General Dynamics' board of directors in March
1997.

Prior to his employment at General Dynamics, Mr. Mancuso held
several senior financial positions with United Technologies
Corp. including Vice President and Controller for UTC's Pratt
and Whitney Commercial Engine business unit.  Mr. Mancuso began
his career with General Electric, where he served over twenty
years in various financial management positions.

J.M. Bernhard, Jr., Chairman and Chief Executive Officer of
Shaw, said, "Mr. Mancuso has a remarkable track record in
corporate financial and operations management with organizations
that are similar to Shaw in terms of the complexity of products
and services, rapid growth and global reach.  He will bring a
unique perspective to Shaw's governing body that will complement
our already impressive group of board members. We welcome
Michael to Shaw and look forward to working with him as we
continue to meet the strategic objectives of our clients while
maximizing return to our valued shareholders."

Mr. Mancuso also serves on the board of directors for SPX Corp.,
a publicly-held industrial manufacturer headquartered in
Charlotte, North Carolina, and Agere Systems, Inc., a publicly-
held global leader in semiconductors for storage, wireless data,
and public and enterprise networks. He is a native of
Philadelphia, Pennsylvania and holds a Bachelor of Science
degree in business from Villanova University and a Master of
Business Administration degree from Eastern University.

                      About Shaw Group

The Shaw Group Inc. -- http://www.shawgrp.com/-- is a leading
global provider of technology, engineering, procurement,
construction, maintenance, fabrication, manufacturing,
consulting, remediation, and facilities management services for
government and private sector clients in the energy, chemical,
environmental, infrastructure and emergency response markets.
Headquartered in Baton Rouge, Louisiana, with over US$3 billion
in annual revenues, Shaw employs approximately 20,000 people at
its offices and operations in Venezuela, Chile, North America,
Europe, the Middle East and the Asia-Pacific region.

On July 27, 2005, Shaw Group was assigned a BB rating by
Standard & Poor's.




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


BBVA COLOMBIA: Posts COP159 Bil. Profits in January-July Period
---------------------------------------------------------------
BBVA Colombia's profits increased 72.8% to COP159 billion from
January to July, compared with the same period in 2005, Business
News Americas reports.

BBVA Colombia said in a statement that its net operating margin
increased 87.8% to COP210 billion.

BNamericas relates that the loan portfolio of BBVA Colombia grew
70% to COP7.99 trillion during the 12 months ending July while
its past-due loan portfolio was 2.98% of total loans.  Its
assets increased 55.4% to COP12.5 trillion and its liabilities
increased 54.5% to COP11.3 trillion.

BBVA Colombia was the largest private mortgage lender in
Colombia in October 2005.  It had a market share of around 21%,
after winning the auction for Granahorrar with a COP970 billion
bid, BNamericas states.

                        *    *    *

As reported in the Troubled Company Reporter on March 13, 2006,
Moody's Investors Service assigned a 'Ba3' long-term foreign
currency deposit rating on BBVA Colombia.  Moody's changed the
outlook to stable from negative.


BRIGHTPOINT INC: Unit to Supply Wireless Devices to Newegg
----------------------------------------------------------
Brightpoint, Inc., disclosed that its subsidiary, Brightpoint
North America L.P., has entered into an agreement with Newegg,
Inc. to supply the company with wireless devices and full lineup
of accessories in the United States.

                       About Newegg

Newegg.com is an online e-commerce company that has created a
powerful channel for manufacturers of computer hardware and
software, consumer electronics and communications products to
reach the do-it-yourselfers, gamers, students, small to medium-
sized businesses, IT professionals, resellers and consumers that
desire a comprehensive digital lifestyle.

                     About Brightpoint

Headquartered in Plainfield, Indiana, Brightpoint, Inc. --
http://www.brightpoint.com/-- engages in the distribution of
wireless devices and accessories, as well as provision of
customized logistic services to the wireless industry.  The
Company primarily operates in Australia, Colombia, Finland,
Germany, India, New Zealand, Norway, the Philippines, the Slovak
Republic, Sweden, United Arab Emirates and the United States.
The Company's customers include mobile operators, mobile virtual
network operators, resellers, retailers and wireless equipment
manufacturers.  Brightpoint was incorporated in 1989 under the
name Wholesale Cellular USA, Inc. and changed its name to
Brightpoint Inc. in 1995.

                        *    *    *

On April 12, 2006, Standard & Poor's placed Brightpoint's
long-term local and foreign issuer credit ratings at BB- with a
stable outlook.




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


BANCO INTERCONTINENTAL: Court to Decide on Lois Malkun's Case
-------------------------------------------------------------
The National District Court of the Dominican Republic will be
making a decision on the case filed against Jose Lois Malkun,
the former governor of the country's central bank, by Ramon Baez
Figueroa, the former head of Banco Intercontinental aka
Baninter, Dominican Today reports.

As reported in the Troubled Company Reporter-Latin America on
Aug. 14, 2006, Mr. Figueroa insisted that Mr. Malkun must
undergo a fraud trial for using the government's funds to pay
deposits and other commitments without adhering to the central
bank's liquidation process.  Mr. Figueroa had said, "We ratified
the terms of our complaint and presented to the office of the
Prosecutor the information and evidence that guarantee our
accusations against the previous authorities of the central
bank."

Atty. Juarez Castillo, who represented Mr. Figueroa, confirmed
that all terms of the complaint were ratified, based on the
accusations against Mr. Malkun, who destroyed Baninter's chances
of meeting its commitments and caused the quasi-fiscal deficit.
According to Mr. Figueroa, about 76% of Baninter's depositors
had sums below DOP500,000 and the Dominican government could
have guaranteed those reimbursements with DOP6.5 billion, in
compliance with the Monetary Law.  Mr. Figueroa said, "But they
did not do it thusly, but that in addition paid to the 24% of
the depositors, who were those which had over 500,000 pesos,
including the shareholders and members of the council of
directors of the bank.  Then Mr. Malkun I believe that it wasn't
correct what he did, being the main monetary authority of the
country."

Dominican Today notes that Mr. Malkun had filed a challenge
against Mr. Figueroa's allegation before the National District
Prosecutor's Office.  Attorneys Jorge Luis Polanco and Keryma
Marra represented Mr. Malkun.

Dominican Today relates that Mr. Malkun was waiting in front of
the chambers of Judge Delio German on Wednesday morning.
Meanwhile, Mr. Figueroa and his lawyers -- Attorneys Juarez and
Vinicio Castillo -- waited for the court decision outside.

"It's worth that the files are submitted which the previous
authorities had.  That is good and healthful for the country.
That clears many incognitos.  Those trials are good.  It seems
to me that it's worth the trouble," Mr. Malkun told reporters,
referring to a statement by banks superintendent Rafael Camilo,
regarding the charges against the authorities who handled
Baninter's bankruptcy process.

Baninter collapsed in 2003 as a result of massive fraud
that drained it of about US$657 million in funds.  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.


BANCO INTERCONTINENTAL: Lawyers Criticize Banks Superintendent
--------------------------------------------------------------
Legal representatives of Ramon Baez Figueroa, the former
president of Banco Intercontinental aka Baninter, criticized
banks superintendent Rafael Camilo for proposing to file a
lawsuit against previous monetary and financial officials after
the Baninter case is closed, Dominican Today reports.

Mr. Figueroa is represented by:

       -- Marino Vinicio Castillo,
       -- Juarez Castillo, and
       -- Juan Antonio Columna.

The lawyers told Dominican Today that it is not possible to
propose the filing of charges against Jose Lois Malkun -- the
former central bank governor -- and other previous authorities,
after the Baninter case, with the incumbent officials already
admitting that the law was broken.

"It's an irresponsibility to propose, if the evidence of a
violation of the penal law are clear, if all proof is at hand,
the file ready; that that is done later," Dominican Today
states, citing the lawyers.

Baninter collapsed in 2003 as a result of massive fraud
that drained it of about US$657 million in funds.  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: Fails to Register Sale to Dominican Tax Dept.
---------------------------------------------------------------
Falconbridge Limited has not registered its sale to Xstrata plc
with the Dominican Republic's Tax Department, the DR1 Newsletter
reports.

DR1 relates that the Tax Department asked Falconbridge Limited
on July 19, 2006, to register the sale.

Falconbridge Limited sold most of its outstanding stock to
Xstrata for US$20 billion, through the Toronto Exchange, DR1
notes.  The sale includes 85% of Falconbridge Dominicana.

The Tax Department may fine Falconbridge for not registering the
sale, DR1 states.

                       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 United Kingdom and
Canada.

                     About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL) (NYSE:FAL) -- http://www.falconbridge.com/-- is a
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 has sales offices in Beijing, China, and Tokyo,
Japan, as well as a recycling plant in Penang, Malaysia.

                        *    *    *

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




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


PETROECUADOR: Unit Will Drill Five Wells on Block 15
----------------------------------------------------
Petroproduccion -- unit of Ecuadorian state oil firm
Petroecuador -- will drill five wells on the Limoncocha and Eden
Yuturi fields of Block 15, Business News Americas reports,
citing Block 15 documents obtained from Petroecuador.

As reported in the Troubled Company Reporter-Latin America on
Aug. 18, 2006, Petroecuador ratified the US$221-million budget
for block 15.  The US$221 million budget applies to the period
from May to the end of 2006.  The budget includes US$149 million
for operating costs and US$72 million for production.
Petroproduccion would run the block for the meantime and be
responsible for the budget.

Documents from Petroecuador say that Petroproduccion will
contract two drilling rigs by October.

BNamericas relates that as of Aug. 15, Block 15 produces about
100,113 barrels of crude daily (b/d).  When Petroecuador
expropriated the block from US firm Occidental in May,
production was 100,000b/d.

According to the report, Block 15's overall proved reserves are
estimated at 522 million barrels.  The area features 117
producing wells along with 15 reinjection wells.

Carlos Blum, the chief executive officer of Block 15's temporary
administration unit, told La Hora that about 480,000 barrels of
fluids are extracted daily -- 380,000 of which are water.

Petroecuador, according to published reports, is faced with
cash-problems.  The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.


PETROECUADOR: Will Get 3.6MM Barrels of Diesel from Projector
-------------------------------------------------------------
Petroecuador, the state-owned oil company of Ecuador, said in a
statement that it has awarded to Projector -- a UK trading firm
-- a contract to supply the former about 3.6 million barrels of
diesel.

As reported in the Troubled Company Reporter-Latin America on
Aug. 15, 2006, Petroecuador called for bids for a diesel supply
contract.  Petroecuador was seeking for a company to supply
Ecuador about 600,000 barrels of diesel to satisfy national
demand through the rest of 2006.  The diesel would be supplied
to the to the Esmeraldas and La Libertad ports every Tuesday in
September in four shipments of 220,000 barrels each.
Petroecuador would have imported about 8.86 million barrels of
diesel by the end of 2006.  About 47 firms were qualified to
present bids.  The company expected to receive the offers
through Aug. 22.

Business News Americas relates that of the 48 firms invited to
bid, five firms have submitted their offers:

     -- Trafigura Beheer,
     -- Masefield America,
     -- Glencore International,
     -- Arkham, and
     -- the trading firm of Anglo-Dutch oil firm Shell.

According to the statement, Projector will start delivering the
barrels of diesel from Sept. 3-5.

A spokesperson of Petroecuador told Business News Americas that
the barrels of diesel Projector will be delivering to
Petroecuador should satisfy Ecuador's demand for the next four
months.

The spokesperson said that the average national diesel demand is
at 800,000 barrels per month, which is uncharacteristically
high, BNamericas reports.

Petroecuador, according to published reports, is faced with
cash-problems.  The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.




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


CORPORACION UBC: Calls Off Acquisition Deal
-------------------------------------------
Corporacion UBC Internacional SA told the El Salvadorian Stock
Exchange that it has cancelled a deal to acquire La Constancia
-- a Honduran mortgage lender -- and insurer Compania
Aseguradora Hondurena, Business News Americas reports.

BNamericas relates that Corporacion UBC disclosed in January
this year that it would be making a deal to purchase the two
firms.

Banco del Pais -- a Honduran firm -- has acquired La Constancia,
BNamericas states.  It is in the process of taking in the
latter's operations.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 10, 2006, Standard and Poor's Ratings Services assigned
these ratings to Corporacion UBC Internacional S.A. y
Subsidiarias:

   -- long-term foreign issuer credit rating: BB-,
   -- long-term local issuer credit rating: BB-,
   -- short-term foreign issuer credit rating: B, and
   -- short-term local issuer credit rating: B.




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


BANCO DEL CAFE: Posts GTQ108 Mil. Profits in First Half of 2006
---------------------------------------------------------------
Superintendencia de Bancos de Guatemala, the financial system
regulator in Guatemala, told Business News Americas that profits
of Banco del Cafe aka Bancafe increased 68% to GTQ108 million in
the first half of 2006, compared with the GTQ64.6 million in
first half of 2005.

Bancafe posted these results for the first half of 2006:

   -- return on equity was 38.5% in the first half of 2006,
      above an industry average of 21.5%;

   -- return on assets was 2.9% in the first half of 2006
      compared to a 1.9% industry average;

   -- net interest income increased 19% to GTQ254 million;

   -- net fee revenues grew 14% to GTQ48.8 million;

   -- loans rose 69% to GTQ4.72 billion at the end of June 2006
      compared to June 2005;

   -- past-due loan ratio was 1.7% compared to an industry
      average of 2.5%;

   -- deposits fell 2% to GTQ2.47 billion;

   -- assets decreased 0.8% to GTQ7.54 billion at the end of
      June 2006, compared with June 2005;

   -- total liabilities dropped 3% to GTQ6.98 billion, of which
      equity increased 29% to GTQ562 million; and

   -- the bank ranked fourth in the local banking system with
      market shares of 7.8% and 9.7% by assets and loans
      respectively.

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.




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


* HONDURAS: Revises 500 Mining Concessions Due to Deficiencies
--------------------------------------------------------------
Mayra Mejia, the natural resources and environment minister of
Honduras, told Prensa Latina that over 500 mining concessions
are being revised due to deficiencies in many of them.

Most concessions have deficiencies like weak social implication.
Many of them are putting environmental preservation at risk,
Prensa Latina relates, citing Minister Mejia.

According to Prensa Latina, Central American nations, aiming to
promote investments, offer the US and Canadian mining firms
concessions for 15 to 30 years, with up to 2% tax over full
operation.

Minister Mejia explained to Prensa Latina, "The State has signed
contracts which are not in line with international standards or
have many flaws, so they have to be revised so that we can have
more environmental-friendly accords without affecting the health
of the residents in mining areas."

An investigation is being conducted as part of the steps leading
to the implementation of a bill Honduras' President Manuel
Zelaya proposed to regulate exploration and mining, Prensa
Latina reports.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

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




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


AIR JAMAICA: Union Workers Threaten Strike
------------------------------------------
The National Workers Union gave Air Jamaica's management until
Wednesday evening to come up with a new wage package or face
industrial action, Radio Jamaica reports.

Radio Jamaica relates that the union had warned on Tuesday that
it could not guarantee normality of Air Jamaica's operations
after Wednesday.

As reported in the Troubled Company Reporter-Latin America on
Aug. 16, 2006, Air Jamaica did not reach a new wage deal with
the union.  Workers of Air Jamaica had cancelled plans to hold
demonstrations against the airline when a meeting on a wage deal
was set.  The union members balked at the airline's reduced wage
offer.  Air Jamaica had initially offered its workers a 25% wage
increase over a two-year contract.  However, when talks resumed,
Air Jamaica reduced the offer to 20%, and later to 15%.  Due to
the ultimatum set by the union, the airline's management
hurriedly set a meeting with the union officials.  Air Jamaica's
management reportedly took back its decision to decrease the
wage offer to the airline's ground staff.

Granville Valentine, the Deputy Island Supervisor for the union,
was set to meet with the Air Jamaica management on Wednesday,
Radio Jamaica reports.

                        *    *    *

On July 21, 2006, Standard & Poor's Rating Services assigned B
long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, is based on the government's
unconditional guarantee of both principal and interest payments.




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


ALERIS INTERNATIONAL: Earns US$55.4 Mil in Quarter Ended June 30
----------------------------------------------------------------
Aleris International, Inc. reported record results for the
second quarter of 2006 and the six months ended June 30, 2006.

Operating income increased to a quarterly record of US$102.6
million for the second quarter of 2006 from last year's US$30.8
million, an increase of US$71.8 million, or 233%.

Second quarter net income was a record US$55.4 million, at an
estimated tax rate of 36.9%, compared with reported net income
of US$18.9 million in the second quarter of 2005, based on an
estimated tax rate of 9.8%.

Aleris reported second quarter 2006 revenues of US$1.01 billion.
For the second quarter of 2005, Aleris reported revenues of
US$603.6 million.

Merger-related synergies from the Commonwealth acquisition and
company wide productivity initiatives aggregated US$15 million
for the quarter while synergies related to the 2005 acquisitions
totaled approximately US$11 million, exceeding the Company's
expectations.

The Company is raising its estimate of merger-related synergies
from the Commonwealth acquisition and company wide productivity
initiatives to be realized within 18 to 24 months of the merger
to US$65 million from US$50 million.

On Aug. 1, 2006 Aleris closed the acquisition of the downstream
aluminum business of Corus Group plc for a purchase price of
approximately US$887 million.  Simultaneously, the Company
entered into new credit agreements, the proceeds from which were
used to fund the acquisition and refinance substantially all of
the Company's existing indebtedness.  The Company expects to
incur charges in the third quarter of approximately US$53.5
million related to the refinancing.

Steven J. Demetriou, Chairman and Chief Executive Officer of
Aleris, said, "We are extremely pleased with the record results
we achieved for the second quarter of 2006 with operating income
increasing more than 200% from the prior-year period.  The
results not only exceeded our expectations but also reaffirmed
the strength of our businesses.  Our rolled products business
benefited from acquisitions, strengthened margins from improved
scrap spreads, the favorable FIFO impact of the rising London
Metal Exchange on a year- over-year basis and continued
productivity improvements.  Aluminum recycling increased the
momentum begun over the last several quarters, while zinc
continued to generate record earnings.  We are particularly
pleased with the impact of the acquisitions we made in 2005
which are contributing substantially to our increased
profitability."

                          Outlook

Mr. Demetriou said, "We are particularly pleased to have
completed the Corus acquisition, which should strengthen our
product portfolio, expand our global capabilities and contribute
significantly to our future profitability.  We welcome all 4,600
former Corus employees onto the Aleris team and look forward to
building a world-class global aluminum company.  In addition, we
remain focused on achieving maximum benefit from the original
Commonwealth merger and are again raising our estimated synergy
target to US$65 million from US$50 million to be achieved within
18 to 24 months of the original merger."

A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?103c

                        About Aleris

Headquartered in Beachwood, Ohio, a suburb of Cleveland, Aleris
International, Inc. -- http://www.aleris.com/-- manufactures
aluminum rolled products and extrusions, aluminum recycling and
specification alloy production.  The Company is also a recycler
of zinc and a leading U.S. manufacturer of zinc metal and value-
added zinc products that include zinc oxide and zinc dust.  The
Company operates 50 production facilities in North America,
Europe, Brazil, Mexico and Asia, and employs approximately 8,600
employees.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 11, 2006,
Standard & Poor's Ratings Services placed its 'BB-' corporate
credit and other ratings on Aleris on CreditWatch with negative
implications.

As reported in the Troubled Company Reporter on Aug. 10, 2006,
Moody's Investors Service placed Aleris' ratings under review
for possible downgrade.  The review was prompted by the
Company's announcement of a merger agreement with Texas Pacific
Group.

Ratings placed under review possible downgrade include the B1
Corporate Family Rating and the Ba3 Senior Secured Bank Credit
Facility rating.


CONSOLIDATED CONTAINER: Unit Remains Main Supplier of Dean Dairy
----------------------------------------------------------------
Consolidated Container Company LLC's wholly-owned subsidiary,
Consolidated Container Company LP, entered into a Purchase
Agreement with Dean Dairy Holdings, LLC, and Suiza Dairy Group,
LLC.

The terms of the Purchase Agreement are effective from
July 1, 2006, through Dec. 31, 2011.  The Purchase Agreement
replaces two previous purchase agreements that expired on
July 2, 2006.  Under the terms of the Purchase Agreement, CCC
will remain Dean's primary outside supplier of plastic
containers while gaining the opportunity to enhance its current
supply position with Dean.

Headquartered in Atlanta, Georgia, Consolidated Container
Company LLC -- http://www.cccllc.com/-- which was created in
1999, develops, manufactures and markets rigid plastic
containers for many of the largest branded consumer products and
beverage companies in the world.  CCC has long-term customer
relationships with many blue-chip companies including Dean
Foods, DS Waters of America, The Kroger Company, Nestle Waters
North America, National Dairy Holdings, The Procter & Gamble
Company, Coca-Cola North America, Quaker Oats, Scotts and
Colgate-Palmolive.  CCC serves its customers with a wide range
of manufacturing capabilities and services through a nationwide
network of 61 strategically located manufacturing facilities and
a research, development and engineering center.  Additionally,
the company has 4 international manufacturing facilities in
Canada, Mexico and Puerto Rico.

Consolidated Container Company LLC's March 31, 2006, balance
sheet showed US$685.4 million in total assets and US$769.9
million in total liabilities, resulting in a US$84.5 million
equity deficit.


CONSOLIDATED CONTAINER: S&P Places B- Rating on Negative Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on
Atlanta, Ga.-based Consolidated Container Co. LLC, including its
'B-' corporate credit rating, on CreditWatch with negative
implications.  This followed the company's announcement that it
will delay filing its 10-Q for the three months ended June 30,
2006, as it is in the process of evaluating the accounting
implications of an expected settlement with a customer that
relates to supply contracts and matters arising prior to July 1,
2006.  The company intends to file its 10-Q as soon as
practicable after completing its evaluation.

"Until the company files its 10-Q, we expect the company to take
necessary and timely steps to preserve access to its revolving
credit facility and maintain sufficient liquidity," said
Standard & Poor's credit analyst Liley Mehta.  "In resolving our
CreditWatch listing, we will assess the results of the
accounting evaluation to determine whether any potential
material restatements have an impact on the ratings."

With annual revenues of about US$865 million, Consolidated
Container is a domestic producer of rigid plastic containers for
dairy products, water, juice, and other beverages; food,
household, and agricultural chemicals; and motor oil.


FORD MOTOR: Opening Alliance Talks with Renault-Nissan's CEO
------------------------------------------------------------
Ford Motor Co.'s Chief Executive Officer William Clay Ford Jr.,
was in talks with Carlos Ghosn, the Chief Executive Officer of
Nissan-Renault, published reports say.  Renault-Nissan is a
collaboration between Nissan Motor Co., Ltd., and Renault S.A.

The talk is one of the many efforts Ford is undertaking to
improve its profitability and regain its market share.  Ford
incurred a US$254 million net loss for the second quarter of
2006.  In July 2006, reports came in that Ford was overtaken by
Toyota as the automaker with the 2nd biggest market share in the
world.  Toyota has 13%.  Ford came in third with 12.4%.  General
Motors still has the top spot though sales have been slipping.

The most recent effort was to offer credit to people with low
credit reports to get rid of excess auto inventory.  Any
potential bad debts in the future will be seen as a marketing
expense.

Recent restructuring efforts include:

   -- closing more factories;
   -- cutting more management jobs by another 10% to 30%; and
   -- reducing benefits

Renault-Nissan was first in talks with GM in July as one of GM's
shareholders aggressively pushed the idea for an alliance.  GM
and Renault-Nissan is on its first month of evaluating the
proposed three-way deal.

Mr. Ford told BusinessWeek that Ford is not a stranger to
alliances.  Ford is currently on operational alliance with
Peugeot, GM and Mazda.  Mr. Ford, however, clarified that there
are no formal discussions about anything yet with other auto
companies.  But the proposed GM-Renault-Nissan alliance had
everybody thinking that they should all be talking about it.

                       About Ford Motor

Headquartered in Dearborn, Michigan, Ford Motor Company
-- http://www.ford.com/-- manufactures and distributes
automobiles in 200 markets across six continents.  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 Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of
Ford Motor Company Under Review with Negative Implications
following announcement that Ford will sharply reduce its North
American vehicle production in 2006.  DBRS 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 alsolowered 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).

Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Company and Ford Motor Credit Company to 'B' from 'B+'.
Fitch also lowered the Ford's senior unsecured rating to
'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured
rating to 'BB- /RR2' from 'BB/RR2'.  The Rating Outlook remains
Negative.

Standard & Poor's Ratings Services also placed its 'B+' long-
term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor
Credit Co., and related entities on CreditWatch with negative
implications.

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.


GRUPO MEXICO: Brings In New Workers to Increase Copper Output
-------------------------------------------------------------
Copper output at Grupo Mexico SA de CV would increase as new
employees were trained, Reuters reports, citing Juan Rebolledo
-- the head of international affairs at the company.

Reuters states that Grupo Mexico had dismissed all its 2,000 La
Caridad employees in July after the Mexican labor ministry
ratified the cancellation of the collective contract as a
measure to break the four-month strike.

Mr. Rebolledo told Reuters that many workers were being rehired
while others were arriving from other parts of Mexico.

As reported in the Troubled Company Reporter-Latin America on
Aug. 24, 2006, Mr. Rebolledo said that Grupo Mexico completed
70% of rehiring and replacing workers after the blockade was
lifted on July 27.  Grupo Mexico SA would restart its La Caridad
copper mine and cathode plant in October.

"In a question of weeks, in five to six weeks, we will be
touching reasonable levels of production," Mr. Rebolledo told
Reuters, adding that the La Caridad mine would reach full output
after October.

A top executive from Grupo Mexico told Reuters on Wednesday that
the company is producing small quantities of copper from its La
Caridad mine as it emerges from a long strike, with full output
to resume in the fourth quarter of 2006.  Grupo Mexico's
production last year was at 122,317 tons of copper in
concentrate.

The mine equipment had not been seriously damaged during the
strike, Reuters notes, citing Mr. Rebolledo.  The damage through
rust was minimal to tanks and pad containing acid used in the
SX-EW copper extraction process.

As reported in the Troubled Company Reporter-Latin America on
July 11, 2006, Grupo Mexico and the Mexican government have been
in conflict with the union.  La Caridad mine workers had walked
off their jobs on March 24, 2006, in support of Napoleon Gomez
Urrutia, whose leadership in the union was snubbed by both the
government and Grupo Mexico due to allegations of embezzling
about US$55 million in funds paid into a trust by Grupo Mexico
in relation to the 1990 privatization of La Caridad and Cananea.

According to Reuters, many miners had supported Mr. Urrutia as
he brought good pay rises for several consecutive years.  He has
not been reinstated.  The union members had threatened more
protests on Wednesday unless the government accepts Mr.
Urrutia's union leadership within two weeks.

Grupo Mexico said last week that new projects in Peru and
northern Mexico would increase the company's copper production
by around 470,000 tons, or 60%, in four years' time.  The Los
Chancas project in Peru and El Arco in Baja California, would
also add to the production, Reuters states.

Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--  
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.

                        *    *    *

Fitch Ratings assigned these ratings to Grupo Mexico SA de C.V.:

     -- foreign currency long-term debt, BB; and
     -- local currency long-term debt, BB.


GRUPO MEXICO: Selling Railroad Unit's Shares to the Public
----------------------------------------------------------
Grupo Mexico SA de CV told Bloomberg News that it wants to sell
shares of its railroad unit to the public.

"The company has the size and it has the growth," chief
financial officer Eduardo Gonzalez said in an interview with
Bloomberg.  "Timing is hard to say right now.  It's certainly
not going to be years."

Mr. Gonzalez explained to Thomas Black at Bloomberg that the
proposed sale is part of the copper producer's strategy to
expand in other sectors through investments in rail, ports,
shipping and warehousing.

Mr. Gonzalez noted that Mexico's transportation industry has
tremendous opportunities for growth, including serving as a
gateway for Asia to sell goods to the United States, Bloomberg
relates.

Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--  
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.

                        *    *    *

Fitch Ratings assigned these ratings to Grupo Mexico SA de C.V.:

     -- foreign currency long-term debt, BB; and
     -- local currency long-term debt, BB.


NORTEL NETWORKS: Supplies Bouygues with Internet & Voice Network
----------------------------------------------------------------
Nortel Networks Corp. disclosed that Bouygues Telecom
selected Nortel as one of its suppliers for its national high-
speed mobile Internet and voice network.

The Company disclosed that the advanced UMTS network, based on
its HSDPA technology, is being designed to provide customers in
France with services such as high-quality live TV, high
definition video on demand, MP3 streaming and multi-user mobile
gaming when it goes live in early 2007.

The Company also disclosed that the new 5-year contract
stipulates that it is Responsible for rolling out the network in
4 out of 6 of the Bouygues' operational regions in France;
including the Western, South Western, Northeastern and
Mediterranean regions.

"We have strong ties with Bouygues Telecom, having supplied
their network from their first GSM implementation through to our
EDGE solutions, and now we will help them take the important
next step to 3.5G," Michel Clement, the Company's president of
Southern Europe, said.  "Nortel's HSDPA technology allows mobile
operators to provide new real-time services that increase the
end-user's experience and helps build customer loyalty."

The Company is currently a key supplier of the Bouygues' EDGE
and GPRS networks.  The current infrastructure provides the
Bouygues with the appropriate foundation for the new network
upgrade.

The Company achieved the industry's first HSDPA mobile call in
Jan. 2005.  It completed the first live test calls using a
commercial handset solution for HSDPA in March 2005.  In June
2005, the Company became the first wireless network supplier to
complete the TL9000 registration standard for Quality Management
System Requirements and Measurements across its HSDPA, UMTS and
GSM wireless infrastructure solutions.

In addition to Bouygues Telecom, the Company has worked with a
number of wireless operators on HSDPA deployments, including
Orange France, Vodafone Spain in Barcelona, during 3GSM World
Congress in Feb. 2006, EDGE Wireless in the US, SKT and KTF in
Korea, Partner Communications in Israel, and Mobilkom Austria.

Headquartered in Ontario, Canada, Nortel Networks Corp.
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries including Mexico in Latin America.

                        *    *    *

As reported in the Troubled Company Reporter on July 10, 2006,
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corp., Nortel Networks Corp.,
and Nortel Networks Limited at B (low) along with the preferred
share ratings of Nortel Networks Limited at Pfd-5 (low).  All
trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.

As reported in the Troubled Company Reporter on June 20, 2006,
Moody's Investors Service affirmed the B3 corporate family
rating of Nortel; assigned a B3 rating to the proposed US$2
billion senior note issue; downgraded the US$200 million 6.875%
Senior Notes due 2023 and revised the outlook to stable from
negative.

Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
US$2 billion notes.  The outlook is stable.


SATELITES MEXICANOS: Hires UBS Securities as Financial Advisors
---------------------------------------------------------------
The Honorable Robert D. Drain, of the U.S. Bankruptcy Court for
the Southern District of New York, authorized Satelites
Mexicanos, S.A. de C.V., to employ, on an interim basis, UBS
Securities, LLC, as its financial advisors, nunc pro tunc to
Aug. 11, 2006.

UBS is intimately familiar with the Debtor's business and
financial affairs and thus is well qualified to provide
financial advisory services to the Debtor, Carmen Ochoa
Avendano, Esq., the Debtor's general counsel, says.  UBS, Ms.
Avendano relates, has been assisting the Debtor in its
restructuring efforts since May 17, 2002, and has gained
valuable knowledge of the Debtor, its business operations,
capital structure, strategic and financial needs, and the
negotiations with various creditor constituencies leading to the
filing of the Chapter 11 case.

As financial advisors, UBS will:

    (a) advise and assist the Debtor in analyzing, structuring
        and negotiating the financial aspects of a restructuring
        of its Senior Secured Floating Rate Notes due 2004 or
        10.125% Senior Secured Notes due 2004, including,
        without limitation, any exchange, conversion, repurchase
        or repayment of any liabilities, or any modification,
        amendment, deferral, restructuring, recapitalization,
        rescheduling, moratorium, or adjustment of the terms or
        conditions of any liabilities;

    (b) provide the Debtor with financial and market-related
        advice and assistance with respect to a sale, merger or
        consolidation as may be appropriate and mutually agreed
        upon by the Debtor and UBS, which may include assisting
        the Debtor in analyzing, structuring, and negotiating
        the financial aspects of a Sale Transaction; and

    (c) provide other assistance and services as mutually agreed
        upon by the Debtor and UBS.

A Sale Transaction does not include:

     -- a transaction with Loral Space & Communications, Inc.,
        or Principia S.A. de C.V. and their affiliates;

     -- the sale of one satellite, unless UBS was specifically
        directed by the Debtor to effect a satellite sale;

     -- the sale, transfer or other disposition of any
        obligations of Servicios Corporativos Satelitales, S.A.
        de C.V.;

     -- the exchange of the Debtor's existing debt for new
        securities; and

     -- the transfer or other disposition of the capital stock
        or assets pursuant to a lien or related agreement
        existing as of Nov. 15, 2005.

UBS will bill the Debtor:

    (1) a US$150,000 monthly cash advisory fee;

    (2) a US$1,250,000 Restructuring Transaction Fee when a
        Restructuring Transaction becomes binding on the
        creditors affected thereby and payable on the date of
        the closing of the Restructuring Transaction; and

    (3) a Sale Transaction Fee equal to 0.60% of the Transaction
        Value, payable at the closing of the Sale Transaction;

The Debtor will also reimburse UBS for all of its reasonable and
documented expenses, including reasonable and documented fees,
disbursements and other charges of its legal counsel, if any,
provided that legal fees do not exceed US$100,000 without the
Debtor's consent.

As of its filing for chapter 11 protection, the Debtor had paid
10 Monthly Advisory Fees totaling US$1,500,000 to UBS.  Of this
amount, US$750,000, as well as 50% of any Monthly Advisory Fees
paid after its filing for chapter 11 protection, will be
credited against the first to occur of the Restructuring
Transaction Fee or the Sale Transaction Fee.

The Debtor will also indemnify UBS and certain related parties
under certain circumstances, provided that the loss or damage
for which UBS or the related party is seeking indemnification is
not finally determined to have resulted from UBS' or that
related person's gross negligence or willful misconduct.

The Debtor or UBS may terminate the Engagement Letter at any
time upon 15 days' prior written notice to the other party.
Upon termination, UBS will be entitled to any fees earned prior
to the termination date and payable pursuant to the Engagement
Letter.

However, if UBS elects to terminate its services, it will not be
entitled to the Monthly Advisory Fee for the last month of its
engagement.  If the Monthly Advisory Fee for the month has
already been paid, then UBS will refund the fee.

If, at any time on or prior to the expiration of six months
after the termination of the Engagement Letter, the Debtor
consummates a Restructuring Transaction or Sale Transaction or
enters into an agreement, or files or agrees to a plan, which
subsequently results in a Restructuring Transaction or Sale
Transaction, UBS will be entitled to payment of the
Restructuring Transaction Fee or the Sale Transaction Fee, as
applicable, unless UBS was the party that elected to terminate
the Engagement Letter.

Termination of the Engagement Letter by either party will not
affect certain of the Debtor's obligations to UBS, including,
without limitation, its expense reimbursement, indemnification
and exculpation obligations under the Engagement Letter with
respect to activities occurring prior to the effective date of
termination.

Ms. Avendano discloses that, during the one-year period
preceding its filing for chapter 11 protection, the Debtor paid
UBS US$1,882,500 for services rendered and US$139,133 for
expenses incurred.

Steven D. Smith, a managing director of UBS Securities LLC,
assures the Court that his firm does not hold or represent any
other entity having an adverse interest in connection with the
Debtor's case.  Mr. Smith relates that UBS' trading desk holds
for its own account, as part of a legacy investment of a
predecessor entity, a US$500 principal amount interest in a
Satmex Existing Bond, which represents a partial interest in
that bond.  Nevertheless, Mr. Smith says, UBS is a
"disinterested person," as defined in Section 101(14) of the
Bankruptcy Code as modified by Section 1107(b).

                 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 Aug. 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: Section 341 Meeting Scheduled for Sept. 27
---------------------------------------------------------------
Diana G. Adams, the Acting United States Trustee for Region 2,
will convene a meeting of Satelites Mexicanos, S.A. de C.V.'s
creditors on Sept. 27, 2006, at 2:00 p.m., at 80 Broad St., 2nd
Floor, U.S. Trustee's 341 Meeting Room.

All creditors are invited, but not required, to attend.  This
Meeting of Creditors offers the opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.

                 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 Aug. 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. 3; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).




=================
N I C A R A G U A
=================


SPECTRUM BRANDS: Fitch Junks Issuer Default Rating
--------------------------------------------------
Fitch Ratings has initiated rating coverage of Spectrum Brands,
Inc. as:

   -- Issuer Default Rating: 'CCC';
   -- Senior secured bank facility 'B/RR1'; and
   -- Senior subordinated debentures 'CCC-/RR5'.

The Rating Outlook is Stable.  Approximately US$2.3 billion of
debt is covered by these actions.

The rating reflects SPC's high leverage with FFO adjusted
leverage of 8.06x as well as debt/EBITDA of 7.68x for the last
12 months ending July 2, 2006.  Much of SPC's US$2.3 billion in
total debt was the result of seven acquisitions completed since
the fiscal year ended Sept. 30, 2003, with the bulk occurring in
2005.  The acquisitions served to lessen the company's reliance
on essentially one product - the Rayovac battery.  However, poor
performance in batteries combined with high levels of
acquisition-related debt has hampered free cash flow which
declined from US$163.5 million at the FYE Sept. 30, 2005, to
US$22 million at the LTM ending July 2, 2006.  There has also
been a declining trend in interest coverages since the 2005
acquisitions. EBITDA/interest has fallen steadily from 3.09x at
FYE03 to 1.75x at LTM July 2, 2006.  The company's high leverage
provided little flexibility for a myriad of issues over the past
two years -- competitive actions in grooming, a structural
change in the European battery market, retailer inventory
adjustments in batteries and lawn & garden during 2005 and 2006
in North America and escalating commodity costs which served to
more than offset restructuring savings and price increases.

SPC is a leading provider of private label batteries in its
Europe/Rest of World segment.  Batteries represent 70% of this
segment and about half is private label.  Private label is
growing rapidly, however margins are significantly less robust
than SPC's branded batteries and continues to be under pressure.
The Europe/ROW segment represented 29% of revenues and 30% of
operating income (before corporate overhead and restructuring
and related charges) for the nine months ending July 3, 2005
with a nine month operating margin of 14.6%.  For the comparable
period in 2006, revenues have declined 17% with operating
profits down 43%.  Part of the revenue decline was the company
walking away from US$30 million in low-margined revenues.  SPC
intends to remain a private-label participant.  Given that the
pressure is expected to continue while the company works on
lowering its operating costs, profits from this key region is
expected to be a drag on the consolidated performance in the
near term.  Additionally, while the company has hedged it zinc
exposure through the first half of FYE07, the reset in light of
expected tightness in the zinc market and other energy related
costs will contribute to margin pressure as well.  The current
trajectory in the near term appears negative without actions to
provide additional financial flexibility.

SPC's management has historically been able to achieve cost
savings ahead of schedule.  The company is in the process of
three separate actions:

   -- acquisition integration,
   -- flattening the North American organization, and
   -- reorganizing its European operation.

These are expected to lead to cost savings of US$150 million by
2008.  The company reports that it is on track with all
initiatives.  The ability to execute on cost savings and the
company's leading brands are also encompassed in the ratings.
The company has had to amend their financial covenants twice in
the past year to address declining operations.  Thus, a concern
is that continued declines in Europe which will take several
quarters to address, potential competitive actions by
participants who have substantially more resources, as well as
increased commodity costs still exist and could continue to
pressure margins and complying with covenants.  SPC reports that
it should comply with its covenants into the foreseeable future
but the ratios appear to be relatively tight.  SPC's ability to
continue working well with its bank group is necessary.

The Rating Outlook is Stable as the company has announced their
discomfort with the present levels of leverage given
underperformance against forecast and has hired Goldman Sachs to
evaluate potential asset sales.  The company's intent is to
review its line of business with a plan to begin executing asset
sales by next spring.  Lines of businesses to be sold, cash flow
lost and amount of debt reduction is unknown at present.  The
goal to de-leverage is viewed positively in light of recent
performance trends.  Incorporated into the Stable Outlook is the
expectation that the company will be able to receive waivers, if
needed, from its debt-holders.

The Recovery Ratings and notching in the debt structure reflect
Fitch's recovery expectations under a scenario in which
distressed enterprise value is allocated to the various debt
classes.  The recovery ratings for the bank facility ('RR1',
reflecting 91%-100% recovery) benefit from a substantial
enterprise value which more than covers maximum outstanding.
There is also covenants and conditions precedent to each loan
which provides protection and precludes sizeable amounts of debt
without sizeable increases in cash flow.  The senior
subordinated debentures ('RR5', reflecting expected recovery of
10%-30%) reflect the expectation of below average recovery
prospects in a distressed case.

Virtually all of SPC's revenue growth from US$573 million in
FYE02 to the US$2.359 billion in FYE05 was derived from
acquisitions.  Revenues in the nine months ending July 2, 2006
also increased 13% to US$1.943 billion benefiting from late
FYE05 acquisitions.  It is to be noted however that if sales
were adjusted to assume that all acquisitions during 2005 were
treated as if they had been completed on the first day of fiscal
2005 (pro forma), net sales for the nine months would have
declined 6%.  On an as reported basis, FYE05's gross margin
declined 480bps to 37.9% due to mix (320bps) and purchase
accounting inventory value charges (160bps) that increased costs
of goods sold.  A normalized EBITDA margin with the 160bps added
back would be 14%. However, poor performance in batteries and
escalating commodity costs during the nine months ending July 2,
2006 reduced the EBITDA margin to 11.5% -- 250bps below prior
year.  Thus while leverage (debt/EBITDA) is down slightly to
7.7x from 7.9x at the end of the fiscal year, LTM July 2, 2006,
EBITDA/interest has continued to weaken as the current fiscal
year bears the full brunt of the debt and interest rate
increases as the financial covenants were amended in December
and May.

SPC is a global branded consumer products company with
operations in seven product categories:

   -- consumer batteries;
   -- lawn and garden;
   -- pet supplies;
   -- electric shaving and grooming;
   -- household insect control;
   -- electric personal care products, and
   -- portable lighting.

Currently, batteries represent just 33% of global revenues from
90% in 2002 (41% derived internationally).


* NICARAGUA: State Firm Posts NIO27.7 Mil. First Half Earnings
--------------------------------------------------------------
Iniser, the state-owned insurance firm of Nicaragua, told Siboif
-- the nation's financial and insurance watchdog -- that its
earnings in the first half of 2006 has increased 263% to NIO27.7
million, compared with the NIO7.64 million in the same period
last year, Business News Americas reports.

BNamericas relates that Iniser attributed the increase to strong
investment gains and a better underwriting result.

Iniser posted these results for the first half of 2006:

         -- net premiums rose 3% to NIO290 million;
         -- earned premiums increased 0.8% to NIO241 million;
         -- net claims grew 8% to NIO110 million;
         -- underwriting result increased 27% to NIO15.1
            million;
         -- operating costs rose 1.4% to NIO97.7 million;
         -- net investment gains grew 333% to NIO19.7 million;
         -- financial investment net profits increased 4,131% to
            NIO14.0 million;
         -- investment portfolio rose 18% to NIO516 million;
         -- reserves grew 9% to NIO581 million; and
         -- 38% market share in terms of net premiums.

Iniser lost its insurance monopoly in October 1996.  It is
currently competing with four insurance firms.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

                     Rating     Rating Date
                     ------     -----------
   Long Term          Caa1     June 30, 2003
   Senior Unsecured
   Debt                B3      June 30, 2003




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


CHIQUITA BRANDS: Must Modify Purchasing Contracts by Aug. 31
------------------------------------------------------------
Bocas del Toro banana growers have given Chiquita Brands
International Inc. until Aug. 31 to modify purchasing contracts
for bananas, Fresh Plaza reports.

As reported in the Troubled Company Reporter-Latin America on
Aug. 18, 2006, Chiquita Brands decreased its banana purchases to
growers by another 30%, saying it was due to saturation of the
European market.  Chiquita Brands had reduced purchases three
times in less than a month.  The first reduction of purchases
was also blamed on saturation in the European market.  The
company's decision had caused losses to independent banana
growers in Panama.  Authorities said that growers lost about
US$400,000, or some 110,000 crates of banana.  The unions
requested executive intervention to avoid further losses.

Banana workers unions had threatened to hold demonstrations if
Chiquita Brands would free the contract of exclusivity and allow
the sale of bananas to other traders.  Banana growers were also
suing Chiquita Brands for monopoly.

Virgilio Aizpurua, a representative of Chiquita Brands said that
the company closed two plantations in Bocas del Toro due to
market saturation problems.  Purchases of banana growers in
Panama were cancelled.  Local press said that a clause in a
contract between Chiquita and the independent growers states
that the latter are obliged to deliver exclusively to Chiquita,
for US$1.5 per box.  Chiquita Brands' decision to further
decrease purchases was much criticized.  Independent banana
growers in Panama were left with no funds.  Banana worker unions
threatened to barricade at Chiquita Brands if company officials
would still not free the growers from the exclusive contract.

Reynaldo Rivera, minister of labor and employment development,
told Fresh Plaza that the contracts with Chiquita Brands have
put growers in a unstable situation as serious problems might
occur if further suspensions will follow.

Meanwhile, the government of Panama is keeping watch on Chiquita
Brands, according to Fresh Plaza.  Minister Rivera fears that
Chiquita Brands would decide to leave Bocas del Toro.

Fresh Plaza notes that Coosemupar has not yet been affected by
the suspension of banana purchases.  The government has invested
much in the cooperative to prevent it from bankruptcy.

Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 60 countries including Panama.  It also distributes and
markets fresh-cut fruit and other branded, value-added fruit
products.

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.




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


* PARAGUAY: Inks Livestock Management Accord with Brazil
--------------------------------------------------------
Paraguay has signed an accord with the Brazilian state of Mato
Grosso do Sul to implement measures on the improvement of the
sanitary management of livestock, the Agencia Estado newswire
reports.

Dow Jones Newswires relates that the agreement calls for:

    -- mapping of properties and registration of herds,
    -- identification of frontier cattle,
    -- joint action to control animal transit, and
    -- creation of a joint data base.

Agencia Estado notes that the deal allows for the establishment
of Brazilian meatpackers in Paraguay, which will permit Brazil
to purchase fresh beef cuts from Paraguay instead of buying live
cattle.

The Brazilian agriculture ministry had told Dow Jones on Friday
that it would maintain a ban on three cities in Mato Grosso do
Sul state due to latest lab results showing the presence of
foot-and-mouth antigens on 55 properties, even though there were
no new cases of the contagious livestock disease.  The cities
are:

    -- Eldorado,
    -- Japora, and
    -- Mundo Novo.

                        *    *    *

Fitch Ratings assigned these ratings on Panama:

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




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


DRESSER INC: Gets Requisite Consents on Sr. Unsecured Term Loan
---------------------------------------------------------------
Dresser, Inc., had received the requisite consents under its
senior unsecured term loan to extend the deadlines for providing
financial statements to dates consistent with the deadlines
required by the indenture governing the company's 9-3/8% senior
subordinated notes.

The deadline for providing the company's audited financial
statements for the fiscal year ended Dec. 31, 2005, has been
extended from Sept. 30, 2006, to Dec. 31, 2006, and for
providing its 2006 quarterly financial statements from
Sept. 30, 2006, to March 31, 2007.

As reported by the Troubled Company Reporter-Latin America on
Aug. 24, 2006, Dresser is extending the date on which consents are
due for its amendment process under its senior secured credit
facility to 5:00 p.m. on Sept. 8, 2006, New York City time, unless
further  extended or terminated by the company.

                        About Dresser

Based in Addison, Texas, Dresser, Inc. --
http://www.dresser.com/-- designs, manufactures and markets
equipment and services sold primarily to customers in the flow
control, measurement systems, and compression and power systems
segments of the energy industry.  The Company has a
comprehensive global presence, with over 8,500 employees and a
sales presence in over 100 countries worldwide including Mexico
and Puerto Rico.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 3, 2006,
Moody's Investors Service downgraded Dresser, Inc.'s ratings.
Moody's said the rating outlook is negative.

Dresser's Corporate Family Rating was downgraded to B1 from Ba3.
The rating for the Company's Senior Secured Tranche C Term Loan
maturing 2009 was downgraded to B1 from Ba3.  Moody's also
downgraded the rating for the Company's Senior Unsecured Term
Loan maturing 2010 to B2 from B1.  The Company's Senior
Subordinated Notes maturing 2011 was downgraded to B3 from B2.


KMART CORP: Roberts Estate Wants Plan Injunction Modified
---------------------------------------------------------
The Estate of Tony Roberts asks the U.S. Bankruptcy Court for
the Northern District of Illinois to modify the injunction
provision of Kmart Corp. and its debtor-affiliates' confirmed
Plan of Reorganization to permit the Estate to liquidate its
administrative claim against Kmart Corp. before the Court of
Common Pleas for the Fourteenth Judicial Circuit in Colleton
County, South Carolina.

The Roberts' Estate Claim arises from an automobile accident in
October 2002, allegedly caused by Thomas Sullivan -- a Kmart
employee -- that resulted to Mr. Roberts' death.

In October 2004, the Roberts Estate filed a complaint against
Kmart Corp. in the Court of Common Pleas for the Fourteenth
Judicial Circuit.

After obtaining leave to file a claim, the Roberts Estate
participated in the alternative dispute resolution procedures
required by the Court, submitting its completed questionnaire to
Kmart.  Kmart responded to the Questionnaire asserting that it
was reserving less than US$50,000 and that it would make no
offer on the Claim.  Kmart further stated that it is rejecting
the amount demanded in the Questionnaire because of the Roberts
Estate's failure to provide evidence.

Jeremy C. Kleinman, Esq., at Frank/Gecker LLP, in Chicago,
Illinois, relates that during the year following the submission
of the Questionnaire, the Roberts Estate has participated in the
ADR Procedures in good faith.  However, the Estate has been
unable to conduct discovery in the matter.

"The parties have reached an impasse and the Claim cannot be
resolved through the ADR Procedures," Mr. Kleinman tells the
Court.

Mr. Kleinman maintains that cause exists to modify the Plan
Injunction for the reasons that:

    * the Roberts Estate has satisfied the ADR Procedures in
      good faith;

    * Kmart is not entitled to impose additional procedural
      restrictions to prevent the Roberts Estate from
      liquidating its Claim;

    * the ADR Procedures do not permit Kmart to impede the
      litigation of a wrongful death claim on the basis that
      Kmart does not believe it has any liability;

    * the Roberts Estate has suffered, and continues to suffer,
      as a result of the delay in the liquidation of the Claim
      imposed by the Plan Injunction; and

    * Kmart will not be prejudiced by granting the relief
      requested.

                      About Kmart Corp.

Headquartered in Troy, Michigan, Kmart Corp. nka KMART
Holding Corp. -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam.  The Company filed for chapter
11 protection on Jan. 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on
May 6, 2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden,
Arps, Slate, Meagher & Flom, LLP, represented the retailer in
its restructuring efforts.  The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection.  Kmart bought Sears, Roebuck &
Co., for US$11 billion to create the third-largest U.S.
retailer, behind Wal-Mart and Target, and generate US$55 billion
in annual revenues.  The waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act expired on Jan. 27, without
complaint by the Department of Justice.  (Kmart Bankruptcy News,
Issue No. 115; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or 215/945-7000)


KMART CORP: Seeks Summary Judgment on Eagle's US$329,452 Claim
------------------------------------------------------------
Kmart Corp. asks the U.S. Bankruptcy Court for the Northern
District of Illinois for a summary judgment disallowing:

    (i) Eagle Janitorial Services Inc.'s claim for services
        performed in California; and

   (ii) any claim for interest, other charges, or not otherwise
        supported with documentation.

On July 29, 2002, Eagle Janitorial filed Claim No. 36815
asserting US$329,452 for janitorial services provided to Kmart
stores located in four states.

The Claim is based on 201 invoices, of which 193 are for
services provided to Kmart stores in California.  The invoices
show charges totaling US$214,075, which is US$115,377 less than
the face amount of Claim No. 36815.

Of the Total Invoice Amount, US$201,860 is for services rendered
to Kmart stores in California.

Kmart objected to Eagle's claim asserting that the claim lacked
sufficient documentation.  Kmart's books and records also show
no debt owed to Eagle.

George R. Mesires, Esq., at Barack Ferrazzano Kirschbaum
Perlman & Nagelberg LLP, in Chicago, Illinois, asserts that the
California Invoices are barred by the California statute of
limitations.  Hence, no interest or other charges, including
attorneys' fees, should be allowed for the invoices.

In addition, Mr. Mesires explains that Kmart is entitled to
summary judgment because:

    * Eagle cannot dispute what appears on its own Pre-1998
      Invoices that the services for which it now makes a claim
      were performed outside of the four-year statute of
      limitations period;

    * all Eagle has shown to support its claim are its invoices
      and has not produced evidence showing Kmart's actual
      request or receipt of the services described in the
      invoices; and

    * the difference between the claim amount and the invoice
      amount, which is US$115,377 -- purportedly for interest --
      is not explained on either Eagle's Proof of Claim or in
      its response to Kmart's Objection to the Claim.

Eagle's Claim for interest and other charges is likewise invalid
because the Claim fails to include an itemized statement of
interest charges, Mr. Mesires asserts.

Mr. Mesires tells the Court that if summary judgment is granted,
Eagle will have a remaining claim of US$12,214 -- a Class 7
claim under the Debtors' confirmed Plan of Reorganization
entitled to a cash distribution of US$763.

Although Kmart believes that the entire Claim is without merit
because there is no evidence that Eagle actually performed the
services, given the small amount that would remain if summary
judgment is granted, Kmart would simply allow the remaining
claim rather than litigate further over it, Mr. Mesires
explains.

Kmart also asks the Court to stay discovery relating to the
California Invoices and the Claim.

Since a vast majority of Eagle's Claim is barred by the
applicable statute of limitations, discovery relating to the
Claim is, therefore, barred as a matter of law, Mr. Mesires
adds.

                      Eagle Talks Back

Victor J. Yoo, Esq., at Tax Lawyers Consulting Group, APC, in
Los Angeles, California, asserts that Eagle's entire claim is
valid from a limitation of action standpoint.

Mr. Yoo explains that California's limitation of action statutes
and applicable California case law provide that Eagle's entire
Claim is subject to a four-year statute of limitation that
begins to run on the last date of service or payment by Kmart of
the account.

Eagle's last date of service, which is Aug. 30, 1998, is within
four years of the filing of its initial Proof of Claim in 2002,
Mr. Yoo points out.

With respect to Eagle's claim for the Interest Amount, Mr. Yoo
says omitting from the Proof of Claim the precise manner in
which interest on the principal was calculated is de minimis,
which omission can be corrected by the filing of an amended
proof of claim.

Furthermore, Mr. Yoo notes that Eagle is unable to state what
Kmart's records might show because Kmart has refused to respond
to Eagle's discovery requests.  Mr. Yoo argues that the non-
existence of documents in Kmart's books and records is far from
conclusive that Kmart is not liable for Eagle's Claim.

                     About Kmart Corp.

Headquartered in Troy, Michigan, Kmart Corp. nka KMART
Holding Corp. -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam.  The Company filed for chapter
11 protection on Jan. 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on May 6,
2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps,
Slate, Meagher & Flom, LLP, represented the retailer in its
restructuring efforts.  The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection.  Kmart bought Sears, Roebuck &
Co., for US$11 billion to create the third-largest U.S.
retailer, behind Wal-Mart and Target, and generate US$55 billion
in annual revenues.  The waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act expired on Jan. 27, without
complaint by the Department of Justice.  (Kmart Bankruptcy News,
Issue No. 115; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or 215/945-7000)


MUSICLAND HOLDING: Court Approves Supplemental Incentive Plan
-------------------------------------------------------------
The Honorable Stuart M. Bernstein of the U.S. Bankruptcy Court
for the Southern District of New York permits Musicland Holding
Corp. and its debtor-affiliates to make payments under the
Incentive Plan from the Incentive Pools, aggregating US$816,200,
in accordance with their stated policies.

Judge Bernstein rules that the SIP Payments will be paid out of
the US$26,000,000 in proceeds of the Secured Trade Creditor
Collateral, to be distributed to the Collateral Agent for the
Secured Trade Creditors.

Judge Bernstein further rules that the Secured Trade Agent and
the Secured Trade Creditors, or their successors-in-interest or
assigns, will not be entitled to a Secured Trade Credit
Replacement Lien or a Secured Trade Credit 507(b) Claim, or an
administrative priority claim, against the Debtors for the SIP
Payment.

As reported in the Troubled Company Reporter on March 3, 2006,
James H.M. Sprayregen, Esq., at Kirkland & Ellis LLP, told the
Court that as part of the Debtor's initiatives to stabilize and
rationalize their operations, and to maintain morale among
employees, they sought to implement a Modified Corporate MIP
that, if approved, would pay participating employees 25% of
their fiscal year 2006 target bonuses.

The Debtors have calibrated the Modified Corporate MIP to reward
participants for their contribution to the Debtors' operations
and additional responsibilities postpetition.

The Debtors also sought to implement a supplemental incentive
program to further incentivize those employees who will be
working over the next several months to design and present a
feasible business plan for a stand-alone Chapter 11 plan of
reorganization.

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 16; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


MUSICLAND HOLDING: Will Pay US$26M to Secured Trade Debt Holders
----------------------------------------------------------------
Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the
Southern District of New York authorizes Musicland Holding Corp.
and its debtor-affiliates to immediately repay up to
US$26,000,000 of the principal amount due and outstanding to the
Collateral Agent to be distributed to the holders of the Secured
Trade Debt.

If a Secured Trade Debt holder receives any portion of the
Interim Distribution and if a court of competent jurisdiction
finds that that the Secured Holder did not hold an allowed
secured claim, Judge Bernstein directs the Secured Holder to
reimburse the other Secured Holders an amount equal to the
Interim Distribution.

Nothing in the Order will be deemed to waive or otherwise impair
any rights the Official Committee of Unsecured Creditors may
have under Section 4.6.3 of the Final DIP Order, or the
Committee's appeal of the Final DIP Order, or any claims or
causes of action the Committee may have.

As reported in the Troubled Company Reporter on Aug. 4, 2006,
Jonathan P. Friedland, Esq., at Kirkland & Ellis LLP, in New
York, said that allowing the Debtors to make the proposed
principal repayment falls within Section 105(a) of the
Bankruptcy Code.

The holders of the Secured Trade Debt will receive the vast
majority of the distributions in the Debtors' Chapter 11 cases,
Mr. Friedland notes.  After distributing the US$26,000,000, the
Debtors will retain enough money to fully pay any claims that
the Court may determine to stand ahead of the claims of the
holders of the Secured Trade Debt, including all accrued and to-
be accrued administrative and other priority expenses.

In addition, Mr. Friedland continues, repaying some of the
Secured Trade Debt would benefit the holders in that their
acceptable investment risk level would likely allow them to earn
more than the investment return the funds earn while the Debtors
invest only in low risk bank deposits acceptable to the U. S.
Trustee.

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 16; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


PILGRIM'S PRIDE: Moody's Affirms Low B Ratings With Neg. Outlook
----------------------------------------------------------------
Moody's Investors Service today affirmed the Ba2 senior
unsecured, Ba3 senior subordinated, and Ba2 corporate family
ratings for Pilgrim's Pride Corp., but changed the outlook to
negative from stable. This rating action follows the company's
announcement that it has made an offer to acquire Gold Kist,
Inc. for approximately US$1 billion in cash plus the assumption
of US$144 million in Gold Kist Debt.

The change in the outlook to negative reflects the possibility
that Pilgrim's Pride's capital structure and financial profile
could change materially should it succeed in its bid to acquire
Gold Kist.  While it remains highly uncertain whether any
transaction will be consummated, and if it were what the
ultimate post-transaction capital structure would be, the
transaction could result in a significant increase in Pilgrim's
Pride's debt and leverage.

PPC has maintained a conservative capital structure with modest
debt and plentiful cash -- largely reflective of an investment
grade credit. However the company's narrow product mix, highly
volatile earnings stream, and history of periodic debt-financed
acquisitions constrain the rating.  Using financial data
including the lagging 12-months ended July 2006, the factors
underlying Moody's Rating Methodology for Global Natural Product
Processors indicate a rating of Baa3, two notches higher than
the company's actual Ba2 rating.  In Moody's view, PPC's high
degree of earnings volatility, the recent severe earnings
pressure in the overall poultry industry, the likelihood that
financial metrics from its existing business could weaken
further in the near term, the risk of leveraged acquisitions --
such as the recent offer to acquire Gold Kist -- justify a
rating lower than the rating methodology might otherwise
indicate.

Headquartered in Pittsburg, Texas, Pilgrim's Pride Corp.
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the
United States, Mexico and in Puerto Rico.  Pilgrim's Pride
employs approximately 40,000 people and has major operations in
Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North
Carolina, Pennsylvania, Tennessee, Virginia, West Virginia,
Mexico and Puerto Rico, with other facilities in Arizona,
Florida, Iowa, Mississippi and Utah.




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


NATIONAL WATER: Delays Submission of Tariff Review
--------------------------------------------------
The National Water Commission has delayed the submission of its
tariff review -- which the Commission had said would be in the
middle of August -- to the Office of Utilities Regulation, the
Jamaica Gleaner reports.

According to The Gleaner, clients of the National Water may have
to wait another two months to air out their complaints about the
commission's quality of service.

David Geddes, the director of consumer and public affairs at the
Office of Utilities told The Gleaner that initial consultations
with clients initially scheduled to start on Monday had to be
moved.

"We had anticipated that we would have received it earlier, but
I have to stress that they (NWC) are not late in submitting it.
They could really submit it in September if they so desire or
even October," Mr. Geddes told The Gleaner.

Input from clients will help to point out efficiencies and
inefficiencies in the system that could affect the National
Water's revenue, The Gleaner relates, citing Mr. Geddes.

Mr. Geddes told The Gleaner, "If the NWC is not meeting the
guaranteed standard, then consumers must make a claim against
the company.  Then they will be compensated by way of a payment
of four times the service charge."

The National Water charges consumers US$256.26 for its services.
Meanwhile, the guaranteed standards that the National Water
should comply with include:

     -- connection to supply within 10 days after a customer
        signs the contract;

     -- delivery of bills within 48 hours after first
        connection;

     -- acknowledgement of client complaints within five days
        and reply within 30 days; and

     -- providing for a maximum of two months between each meter
        reading and between bill issues.

Exceptional circumstances where guaranteed standards may not
apply are:

     -- bad weather or natural disaster,

     -- system conditions like major breakdown on treatment
        plants or pumping stations,


     -- drought,

     -- civil unrest,

     -- strike, and

     -- malicious destruction of property.

Several communities across the "Corporate Ares" have been
affected by lower water supply in the past few weeks.  The
National Water had admitted that dams are at their lowest and
warned schools to prepare for water "lock offs", The Gleaner
states.

                        *    *    *

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.




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


* URUGUAY: Invites Firms to Submit Bids for Wind Generation Pact
----------------------------------------------------------------
UTE, the state-owned power company of Uruguay, said in a
statement that its has called for bids for a contract to deploy
a wind project.

According to the statement, the wind project would have a
capacity of up to 10.5 megawatts.

The rules for the auction are available for US$250.  The company
will open bids on Oct. 12, UTE said.

                        *    *    *

Fitch Ratings assigned these ratings on Uruguay:

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


* URUGUAY: Plans to Repay All Debts to IMF by March 2010
--------------------------------------------------------
Uruguay intends to cancel all debts owed to the International
Monetary Fund aka IMF by March 2010, Merco Press reports.

Merco Press relates that though there is no official repayment
timetable, the administration of President Tabare Vazquez aims
to have debts paid.

As reported in the Troubled Company Reporter-Latin America on
Aug. 01, 2006, Uruguayan authorities decided to advance
obligations to the IMF falling due through Aug. 8, 2007,
amounting to SDR619.9 million, as part of a cash management
operation.  The prepayment will nearly halve Uruguay's
outstanding obligations to the IMF.  All obligations due in 2006
were advanced in a similar operation four months ago.  IMF
Managing Director Rodrigo de Rato, welcomed the announcement and
praised the Uruguayan authorities for their economic management.
Total drawings by Uruguay under the current Stand-By Arrangement
amounted to SDR 766.3 million.  Following this early repayment,
Uruguay's outstanding loans with the Fund amount to about
SDR726.7 million, or about US$1.1 billion.

Uruguayan Finance Minister Danilo Astori said in a press
conference at the end of the fifth review under the three-year
US$1.13 billion-stand by agreement with the IMF that advancing
payments to the IMF is a valid instrument as long as they are
convenient for Uruguay and will continue to be used.

Minister Astori told Merco Press, "If the operation is
advantageous for Uruguay, we will proceed."

According to Merco Press, the IMF credit cancellation
represented savings of US$15 million yearly, which must be added
to another US$40 million from the advanced repayment of loans
from the Inter American Development Bank as well as the World
Bank.

Marco Pinon, the head of the IMF mission visiting Montevideo for
the fifth review, told Merco Press that IMF was satisfied with
the evolution of the economic program and approved the targets
for 2006 and 2007.

                        *    *    *

Fitch Ratings assigned these ratings on Uruguay:

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




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


FERRO CORP: Sells Specialty Plastics Business for US$133 Million
----------------------------------------------------------------
Ferro Corp. entered in an asset purchase agreement with
Olympic Plastics, Inc., a wholly owned subsidiary of Wind Point
Partners.

Under the Agreement Ferro has agreed to sell, and Olympic has
agreed to buy, substantially all of the assets of Ferro's
specialty plastics business, which develops and produces
customized thermoplastic compounds and alloys, plastic
colorants, gelcoats, and thermoset pastes that are marketed to
manufacturers in a broad range of markets.  In exchange for the
Business, Olympic will pay approximately US$133 million in cash
and will assume certain liabilities of the Business.  Further,
Olympic will enter into transition services agreements with
Ferro with respect to certain Business locations.

The sale is scheduled to close in the third quarter of 2006.

Ferro plans to use the sale proceeds to reduce outstanding debt.

"We are focused on transforming Ferro into a high-performance
company, both operationally and financially," said CEO James F.
Kirsch. "Our new management is moving aggressively to drive
profitability and to position our operations for accelerated
growth in new geographic and customer end markets.

"We continue to evaluate our business for divestment
opportunities with the goals of reducing debt and leveraging
technology and production synergies across a narrower set of
related, core businesses that have strong growth
characteristics."

The sale of Specialty Plastics is consistent with Ferro's
strategy to drive performance improvement and position the
Company for long-term growth.  The Company has been moving
aggressively to strengthen its financial results through
portfolio management, operational restructurings, business
streamlining and management realignment, as well as productivity
and pricing initiatives.  It recently announced that it is
embarking on a restructuring of the European operations of its
Inorganic Specialties businesses.  The restructuring is expected
to generate annualized savings of US$40 million to US$50 million
by the end of 2009.

A full-text copy of the Asset Purchase Agreement is available
for free at http://ResearchArchives.com/t/s?104c

Headquartered in Cleveland, Ohio, Ferro Corp. (NYSE:FOE)
-- http://www.ferro.com/-- produces performance materials for
manufacturers, including coatings and performance chemicals.
The Company has operations in 20 countries and has approximately
6,800 employees globally.  In Latin America, the company has
operations in Argentina, Brazil, Mexico and Venezuela.

                        *    *    *

As reported in the Troubled Company Reporter on April 3, 2006,
Standard & Poor's Ratings Services lowered its ratings on Ferro
Corp., including its corporate credit rating to 'B+' from 'BB'.
All ratings remain on CreditWatch with negative implications,
where they were placed Nov. 18, 2005.


HARVEST NATURAL: Inks Mou With CVP to Add Fields in Petrodelta
--------------------------------------------------------------
Harvest Natural Resources, Inc., disclosed that its 80 percent
owned affiliate, Harvest Vinccler, C.A. or HVCA, signed a
Memorandum of Understanding with Corporacion Venezolana del
Petroleo S.A. or CVP for the addition of three fields to Empresa
Mixta Petrodelta, S.A.  The three fields are Isleno, Temblador
and El Salto.

The MOU amends the Memorandum of Understanding signed by HVCA
and CVP on March 31, 2006, to form a mixed company, since
designated as Empresa Mixta Petrodelta, S.A.  Petrodelta will be
a joint venture mixed company in which a Harvest Natural
Resources affiliate will own 40 percent of the shares (32
percent net to Harvest Natural Resources) and CVP will own the
remaining 60 percent.  In addition to the Isleno, Temblador and
El Salto fields, Petrodelta will operate and develop the three
South Monagas Unit or SMU fields to be contributed to Petrodelta
by HVCA.  All of the fields will be developed under a 20-year
grant from the Venezuelan government.

MOU and the award of the additional fields is subject to:

   1) completion of definitive agreements,

   2) approval by the boards of directors of the entities which
      control HVCA,

   3) approval by the shareholders of Harvest Natural Resources,
      Inc., and

   4) approval by the Venezuelan Ministry of Energy and
      Petroleum and the Venezuelan National Assembly.

Harvest President and Chief Executive Officer, James A.
Edmiston, said, "The addition of the Isleno, Temblador and El
Salto fields combined with the SMU fields will give Petrodelta a
portfolio of both cash flow and growth assets.  The fields
provide Petrodelta with significant oil development
opportunities upon which to apply the same technologies which
have resulted in substantially improved recovery from SMU, but
on a much broader scale."

Upon formation of Petrodelta, proved reserves as of April 1 for
the mixed company will be 211 million barrels of oil equivalent,
or 45 million Boe net to Harvest.  The discovered unrisked
resource potential of the fields is approximately 705 million
Boe, or 150 million Boe net to Harvest.  The proved reserves net
to Harvest and the unrisked resource potential have been
evaluated by the independent engineering firm of Ryder Scott
Company L.P.

Mr. Edmiston added, "The plan being jointly developed by HVCA
and CVP projects rapid growth for the Petrodelta fields during
the next five years with production from proved reserves
increasing at a compound annual growth rate in excess of 20
percent to approximately 75,000 barrels of oil equivalent per
day by 2011, or 16,000 Boe per day net to Harvest.  Further, the
target production rate from the unrisked resource potential is
in excess of 130,000 Boe per day, or 27,000 per day net to
Harvest.  The development costs of the net undeveloped resources
in these fields are projected to be very competitive in the
US$3.50 per Boe range.  We expect Petrodelta to both fund the
development program and pay dividends to its shareholders with
its internally generated cash flow."

Since 1992, HVCA has operated SMU and has delivered 113 million
barrels of oil and 64 billion cubic feet of gas to Petroleos de
Venezuela S.A.  The fields currently produce 19,000 barrels of
oil per day and 40 million cubic feet of gas per day. HVCA
operated SMU pursuant to an operating service agreement under
which HVCA delivered oil to PDVSA for a service fee capped at
two-thirds of the market value of the oil delivered.  As a
service arrangement, there was no royalty obligation. The
operating service agreement was scheduled to end July 2012.

Under the mixed company fiscal arrangement, Petrodelta will sell
oil to PDVSA at market prices and receive US$1.54 per thousand
cubic feet for the natural gas.  Since the one-third royalty
volume will be taken in-kind by Venezuela, this fiscal
arrangement has the effect of reducing reported reserves and
production but the market based crude pricing will increase
realized prices per barrel.  The income tax rate for Petrodelta
will be 50 percent.

Proved reserves for SMU in the mixed company as evaluated by
Ryder Scott Company L.P. as of April 1, 2006 are 27 million Boe
net to Harvest which is 60 percent of the 45 million Boe net to
Harvest for its share of all the properties in the mixed
company.  SMU proved reserves are 128 million Boe on a gross
basis.

The Isleno, Temblador and El Salto fields are located in the
same geographic area as SMU and have the same geology and
productive formations as the three SMU fields developed and
operated by HVCA since 1992.  Like SMU prior to Harvest's entry
in 1992, there has been minimal development activity in the
three newly awarded fields during the last 20 years.

The Isleno area contains two oil fields discovered in 1953. Two-
dimensional seismic is available over a portion of the Isleno
Fields. The fields have three discovered oil bearing structures
with an estimated unrisked resource potential of 10 million Boe
net to Harvest, or 50 million Boe on a gross basis.  Seven oil
appraisal wells have been drilled in Isleno that have confirmed
the presence of commercial oil deposits.  The fields are located
approximately five kilometers south of existing infrastructure
in the SMU Uracoa field.  The Petrodelta business plan under
discussion with CVP projects full development of the Isleno
fields over the next three years.

The Temblador Field was discovered in 1936 and developed in the
1940s and the 1950s.  Temblador has produced 118 million barrels
of oil and 66 billion cubic feet of natural gas from 155 wells
since 1936.  Three-dimensional (3-D) seismic is available over
all of the Temblador Field.  Proved reserves for the Temblador
Field are 4 million Boe net to Harvest, or 14 million Boe on a
gross basis. The estimated unrisked resource potential of the
field is 32 million Boe net to Harvest, or 150 million Boe on a
gross basis. The field is currently producing approximately
1,000 Bopd from ten wells.

The El Salto Field was discovered in 1936. A total of 31
appraisal wells have been drilled identifying nine productive
structures and six productive formations.  The field has
produced less than 1 million barrels of oil and is currently
dormant.  3-D seismic data is available over one-third of the El
Salto Field.  Under the business plan being developed with CVP,
Petrodelta would acquire additional 3-D seismic over El Salto
during the first stage of field evaluation. Proved reserves for
El Salto are 14 million Boe net to Harvest, or 68 million Boe on
a gross basis.  The estimated unrisked resource potential is 80
million Boe net to Harvest, or 377 million Boe gross, based on
existing discoveries.  In addition, El Salto has substantial
exploration upside from several fault blocks that have been
identified on seismic but have not yet been confirmed through
drilling.

Mr. Edmiston said, "Moving from a services agreement to a mixed
company represents a change in both our economic and operating
environment. We believe the change will create a more durable
arrangement with Venezuela. Signing the MOU represents important
progress on our path to conversion to a mixed company."

              About Harvest Natural Resources

Harvest Natural Resources, Inc. -- http://www.harvestnr.com/--  
is an international oil and gas company that seeks and develops
large resources in countries that others may perceive to be
challenging. Its producing operations are conducted principally
through the company's 80% owned Venezuelan subsidiary, Harvest
Vinccler, C.A., which operates the South Monagas Unit in
Venezuela.

                        *    *    *

Harvest Natural Resources carries these ratings from Moody's
Investor Service since Sept. 17, 2004:

     -- Issuer Rating, Caa1
     -- Long-Term Corp. Family Rating, B3
     -- Senior Unsecured Debt, B3


PETROLEOS DE VENEZUELA: Inks Petrodelta Venture with Harvest
------------------------------------------------------------
Venezuelan Petroleum Corp., a subsidiary of Petroleos de
Venezuela SA, and Harvest Natural Resources have reached an
agreement to turn the Monagas Sur operational agreement into the
joint venture Petrodelta, Reuters reports.

Under the joint venture, Isleno, Temblador and El Salto oil
fields will become part of the area covered by the new accord.
The two Corp.s will have equal stakes in the joint venture, El
Universal says.

The fields' proven reserves amounted to 211 million barrels of
oil, El Universal says.  The exploration will be governed by a
20-year concession.

The government expects a 20% increase to 75,000 barrels per day
in Monagas Sur's output by 2011.

                About Harvest Natural Resources

Harvest Natural Resources, Inc. -- http://www.harvestnr.com/
-- is an international oil and gas company that seeks and
develops large resources in countries that others may perceive
to be challenging. Its producing operations are conducted
principally through the company's 80% owned Venezuelan
subsidiary, Harvest Vinccler, C.A., which operates the South
Monagas Unit in Venezuela.

                About Petroleos de Venezuela

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.


                        ***********


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

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

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