TCRLA_Public/060828.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, August 28, 2006, Vol. 7, Issue 170

                          Headlines

A R G E N T I N A

ALTERNATIVA MEDICA: Seeks Court Approval to Restructure Debts
ASOCIACION CIVIL: Claims Verification Deadline Is on Sept. 14
COLORIN SA: Incurs ARS8,435 Mil. Loss for Quarter Ended June 30
EL BOYERO: Verification of Proofs of Claim Is Until Oct. 11
RAPILIM SA: Court Appoints Trustees for Insolvency Proceeding

SEGUMARKET SA: Deadline for Verification of Claims Is on Oct. 6
SENAL ECONOMICA: Trustee Verifies Proofs of Claim Until Sept. 13
TRANSPORTADOR DE GAS: Prepays International Finance Corp.
ZEOX SA: Extends Claims Verification Deadline Until Oct. 2

B A H A M A S

ISLE OF CAPRI: Net Revenues Up 13% in First Quarter Fiscal 2007
NAUTILUS INVESTMENT: Proofs of Claim Filing Is Until Sept. 12
PAN AM: Admin. Claim Holders Can Confirm Claims Until Nov. 30
WINN-DIXIE: Sets Sept. 12 as Special Bar Date for 287 Claimants
WINN-DIXIE: Posts US$14.4 Mil. Net Loss in Period Ended July 26

WINN-DIXIE: Wants Open-Ended Exclusive Solicitation Period

B E L I Z E

* BELIZE: Council Disappointed with Tourism's US$1M Donation

B E R M U D A

FLATIRON RE: Moody's Assigns Low B Ratings on US$420M Sr. Loan
FOSTER WHEELER: Joseph Melone Retires from Board of Directors
REFCO INC: Official Committees Create Joint Subcommittee
REFCO INC: U.S. Trustee Reconstitutes Official Creditors Panel
QUANTA CAPITAL: Says Control Over Fin'l Reporting Ineffective

B O L I V I A

* BOLIVIA: Won't Construct Sucre Airport Due to Lack of Funding

B R A Z I L

AES CORP: Brazilian Unit Posts BRL8.2MM First Half 2006 Profit
BANCO DO BRASIL: Unit Posts BRL70.4MM First Half Net Profits
BANCO NACIONAL: Grants BRL115.7 Mil. Financing to CEG
BANCO NACIONAL: Implements Changes in Modermaq Financing
CENTRAIS ELECTRICAS: Envt'l Laws Hinder Hydroelectric Projects

CIA SIDERURGICA: Report Says Flat Steel Market Share Rises 31%
DIRECTV GROUP: DIRECTV Brasil Completes Merger With Sky Brasil
VARIG: Air Canada Looking to Buy 10% Stake in Airline

* BRAZIL: Intends to Repurchase More Foreign Debts

C A Y M A N   I S L A N D S

ATTICUS ALPHA FUND: Last Day to File Proofs of Claim Is Aug. 30
ATTICUS ALPHA: Creditors Must File Proofs of Claim by Aug. 30
ATTICUS OPPORTUNITY FUND: Filing of Claims Is Until Aug. 30
ATTICUS OPPORTUNITY: Claims Filing Deadline Is Set for Aug. 30
AVENEL LIMITED: Sets Final Shareholders Meeting on Sept. 13

CITADEL INVESTMENT: Last Shareholders Meeting Is Set for Aug. 31
CITIC CAPITAL: Final Shareholders Meeting Is Set for Aug. 31
COLESVILLE LIMITED: Last Shareholders Meeting Is on Sept. 13
DAKOTACARE INSURANCE: Proofs of Claim Filing Is Until Aug. 31
DYNAMIC CREDIT: Liquidator Presents Wind Up Accounts on Aug. 31

FAUNA PLACE: Calls Shareholders for a Final Meeting on Aug. 31
FLAGTOWN LIMITED: Sets Last Shareholders Meeting on Sept. 13
LEEWARD OFFSHORE: Holding Final Shareholders Meeting on Aug. 31
LION1 LDC: Shareholders Convene for a Final Meeting on Sept. 9
PACIFIC VIEW: Invites Shareholders for Final Meeting on Aug. 31

PARAMUS LIMITED: Last Shareholders Meeting Is Set for Sept. 13
PIONEER 2002: Creditors Have Until Sept. 13 to Prove Claims
WATER STREET: Grand Court Set to Hear Petition on Sept. 8

C H I L E

AES GENER: Coal Project Environmental Study Gets Corema Approval

C O L O M B I A

ECOPETROL: Starts Market Analysis for Liquid Fuels Transport

C O S T A   R I C A

HJ HEINZ: Declares Common & Preferred Stock Quarterly Dividends

* COSTA RICA: Okays Gasoline Prices Reduction

C U B A

* CUBA: Inks Food Purchase Accord with Navajo Nation Company
* CUBA: US Offers to Lift Trade Ban If Nation Makes Reforms

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Court Ruling on Jose Malkun Released
FALCONBRIDGE LTD: Dividend 15 Sees Strong Gain on Company
FALCONBRIDGE LTD: Responding to Tax Agency Queries on Sale

E L   S A L V A D O R

BANCO AGRICOLA: Posts US$25.8 Million First Half 2006 Profits
BANCO AMERICANO: Will Assume Banco G&T Continental Name
PAYLESS SHOESOURCE: Earnings Per Share Up 66% in Second Quarter

G U A T E M A L A

* GUATEMALA: Pres. Berger Receives Mining Law Reform Proposal

H O N D U R A S

* HONDURAS: Launching Fuel Purchase & Construction Contract
* HONDURAS: State Firm Awards Upgrade Contract with Telrad

J A M A I C A

AIR JAMAICA: Reaches New Wage Accord with Union

M E X I C O

BALLY TOTAL: James McAnally Resigns from Board of Directors
COMVERSE TECHNOLOGY: Granted Continued Listing By NASDAQ Panel
GLOBAL CROSSING: Mexican Customer Base Grew 64%
GRUPO IUSACELL: Inks Contract as First Client of Openet
NORTEL NETWORKS: Unit Inks New US$1.6M Court Records System Pact

ODYSSEY RE: Declares Dividends for Common & Preferred Stock
SATELITES MEXICANOS: Judge Drain Enters Order Enforcing Stay
SATELITES MEXICANOS: Valor Okayed as Interim Financial Advisors
VOLKWAGEN: Revises Offer to Mexican Workers, Ending Strike

* MEXICO: Receives First Delivery of Liquefied NatGas from Shell

N I C A R A G U A

* NICARAGUA: National Assembly Holds Meeting on Energy Crisis
* NICARAGUA: World Bank Grants US$17M to Boost Private Sector

P A N A M A

BANCO DISA: Cesar Garcia Is Firm's New Liquidator

P A R A G U A Y

* PARAGUAY: Will Launch Broadband Services in Urban Areas
* PARAGUAY: World Bank Grants US$74 Million for Road Maintenance

P E R U

DOE RUN: La Oroya Attains ISO 14001 Environmental Certification

* PERU: Appoints Cesar Gutierrez to Head State Oil Firm
* PERU: Wants to Restate Free Trade Accord with the U.S.

P U E R T O   R I C O

ADELPHIA COMMS: CanPartners Holds Allowed US$22,126,440 Claim
ADELPHIA COMMS: Senior Noteholders Want Exclusivity Terminated
BURGER KING: Names Peter Robinson President of EMEA Operations
KMART: Court Approves Pact Allowing D. Roldan to Pursue PI Suit
KMART CORP: Court Okays Pact Allowing Holmes, et al.'s PI Suit

MUSICLAND HOLDING: Committee Has Until Nov. 3 to File Claim
MUSICLAND HOLDING: Posts US$134,000 Net Loss in July 2006

T R I N I D A D   &   T O B A G O

BRITISH WEST: Management to Meet with Unions on September 1
MIRANT: Asset Recovery Wants Foster Wheeler's Claim Disallowed
MIRANT CORP: Files Adversary Case vs. Three Environmental NGOs

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Unit In Talks to Acquire Ypergas Stake

* VENEZUELA: Central Bank Says Imports Grew 34.2% to US$7.84 Bln

* BOOK REVIEW: The Big Board: A History of the NY Stock Market


                          - - - - -


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


ALTERNATIVA MEDICA: Seeks Court Approval to Restructure Debts
-------------------------------------------------------------
Court No. 4 in Buenos Aires is studying the merits of
Alternativa Medica S.A.'s petition to restructure its debts
after it ceased payments on Aug. 11, 2006.

The petition, once approved by the court, will enable
Alternativa Medica to negotiate a settlement with its creditors
to avoid a straight liquidation.

Clerk No. 8 assists the court in the case.

The debtor can be reached at:

   Alternativa Medica S.A.
   Alsina 943
   Buenos Aires, Argentina


ASOCIACION CIVIL: Claims Verification Deadline Is on Sept. 14
-------------------------------------------------------------
Estudio Contable Martinucci, Ostoich y Raguza, the court-
appointed trustee for Asociacion Civil Club Atletico Colon's
reorganization proceeding, verifies creditors' proofs of claim
until Sept. 14, 2006.

Under Argentine bankruptcy law, Estudio Contable is required to
present the validated claims in court as individual reports.
A court in Santa Fe will determine if the verified claims are
admissible, taking into account the trustee's opinion and the
objections and challenges raised by Asociacion Civil and its
creditors.

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

Estudio Contable will also submit general report that contains
an audit of Asociacion Civil's accounting and banking records.
The report submission dates have not been disclosed.

The debtor can be reached at:

          Asociacion Civil Club Atletico Colon
          Juan Jose Paso 3535, Ciudad de Santa Fe
          Santa Fe, Argentina

The trustee can be reached at:

          Estudio Contable Martinucci, Ostoich y Raguza
          General Lopez 2863, Ciudad de Santa Fe
          Santa Fe, Argentina


COLORIN SA: Incurs ARS8,435 Mil. Loss for Quarter Ended June 30
---------------------------------------------------------------
Colorin SA reported a ARS8,435 million loss for the quarter
ended June 30, 2006, compared with a ARS572 million loss for the
same period last year.

At June 30, 2006, Colorin's balance sheet showed ARS68,805
million in total assets and ARS54,392 million in total
liabilities.


EL BOYERO: Verification of Proofs of Claim Is Until Oct. 11
-----------------------------------------------------------
Court-appointed trustee Osvaldo Weiss verifies creditors' proofs
of claim against bankrupt company El Boyero Gruas y Transportes
S.A. until Oct. 11, 2006.

Under Argentine bankruptcy law, Mr. Weiss 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 El Boyero and its creditors.

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

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

El Boyero was forced into bankruptcy at the behest of Estaras y
S nchez S.A., which it owes US$16,306.

Clerk No. 15 assists the court in the case.

The debtor can be reached at:

          El Boyero Gruas y Transportes S.A.
          Salom 621
          Buenos Aires, Argentina

The trustee can be reached at:

          Osvaldo Weiss
          Avenida Presidente Roque Saenz Pena 651
          Buenos Aires, Argentina


RAPILIM SA: Court Appoints Trustees for Insolvency Proceeding
-------------------------------------------------------------
A court in Rosario, Santa Fe, appointed Gloria Ines Dethier,
Mariela Lilian Rodriguez and Nestor Amut to supervise Rapilim
S.A.'s reorganization proceeding.

As trustee, they will:

   -- verify creditors' proofs of claim; and

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

The court will determine if the verified claims are admissible,
taking into account the trustees' opinions and the challenges
and objections raised by Rapilim and its creditors.

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

The debtor can be reached at:

          Rapilim S.A.
          Tucuman 1059, Rosario
          Santa Fe, Argentina

The trustees can be reached at:

          Gloria Ines Dethier
          Mariela Lilian Rodriguez
          Nestor Amut
          Paraguay 777, Rosario
          Santa Fe, Argentina


SEGUMARKET SA: Deadline for Verification of Claims Is on Oct. 6
---------------------------------------------------------------
Court-appointed trustee Juan Carlos Alcuaz verifies creditors'
proofs of claim against bankrupt company Segumarket S.A. until
Oct. 6, 2006.

Under Argentine bankruptcy law, Mr. Alcuaz 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 Segumarket and its
creditors.

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

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

Segumarket was plunged into bankruptcy at the request of Banca
Nazionale del Lavoro S.A., which it owes approximately
ARS181,481.

Clerk No. 15 assists the court in the case.

The debtor can be reached at:

          Segumarket S.A.
          Larsen 2966
          Buenos Aires, Argentina

The trustee can be reached at:

          Juan Carlos Alcuaz
          Avenida Cordoba 1522
          Buenos Aires, Argentina


SENAL ECONOMICA: Trustee Verifies Proofs of Claim Until Sept. 13
----------------------------------------------------------------
Marcelo Gabriel Dborkin, the court-appointed trustee for Senal
Economica S.A.'s insolvency case, verifies creditors' proofs of
claim until Sept. 13, 2006.

Mr. Dborkin will present the validated claims in court as
individual reports on Nov. 2, 2006.  Court No. 17 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 Senal Economica and its creditors.

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

A general report that contains an audit of Senal Economica's
accounting and banking records will follow on Dec. 15, 2006.

On June 26, 2007, Senal Economica's creditors will vote on a
settlement that the company will lay on the table.

Clerk No. 50 assists the court in the case.

The debtor can be reached at:

          Senal Economica S.A.
          Maipu 267
          Buenos Aires, Argentina

The trustee can be reached at:

          Marcelo Gabriel Dborkin
          Avenida Callao 295
          Buenos Aires, Argentina


TRANSPORTADOR DE GAS: Prepays International Finance Corp.
---------------------------------------------------------
Transportadora de Gas del Norte SA aka TGN has prepaid the
International Finance Corp. aka IFC for debts amounting to
US161.8 million, Lawfuel reports.

As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2006, TGN launched a restructuring offer for US$664
million in debts.  TGN said in a filing with the Buenos Aires
Stock Exchange that the swap offer would end on Aug. 31 at 6:00
p.m.  The IFC agreed to the debt swap.  The restructuring
includes US$161.8 million in certificates backed by IFC.  TGN
said it reached "support accords" for the deal with creditors
holding 47.53% of the outstanding debt.  TGN said, "The support
accords and the IFC's consent together represent 80.02% of our
total outstanding amount."  TGN, in exchange for outstanding
debt, was offering:

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

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

Lawfuel relates that as part of the restructuring, TGN paid IFC:

   -- US$18 million for 100% of the 10.66% Series C Notes and
      Series D Notes of TGN,

   -- US$10 million for 75% of the 9.52% Series A Notes of TGN
      and the portion of the 9.45% Series B Notes of TGN
      beneficially owned by IFC.

According to Lawfuel, the launching of TGN's restructuring offer
gained the support of 81% of its creditors.  It ended the five-
year restructuring negotiation for the lawyers working on the
project.

The report says that Chadbourne & Parke LLP represented IFC in
TGN's restructuring.

Alejandro San Miguel, the partner of Chadbourne, told Lawfuel,
"The restructuring of TGN's financial debt constitutes a very
significant and positive achievement after many years of
negotiation and hard work and signifies the end of the
restructuring of the Argentine corporate sector following the
2002 crisis."

Lawfuel underscores that the structure of the original IFC
transaction complicated the prepayment.  Almost all of US$211
million of Series B Notes were sold to investors through the
issuance of trust certificates by a special purpose trust
established to own a 100% participation in the Series B Notes
held of record by IFC.  The prepayment then required obtaining
the unanimous consent of trust certificate holders -- many of
them held other types of TGN's debt instruments.

                About Chadbourne & Parke LLP

Headquartered in New York City, Chadbourne & Parke LLP --
http://www.chadbourne.com-- is an international law firm
headquartered in New York City.  It provides a full range of
legal services.  The firm has offices in New York, Washington,
D.C., Los Angeles, Houston, Moscow, St. Petersburg, Kyiv,
Almaty, Warsaw (through a Polish partnership), Beijing, and a
multinational partnership, Chadbourne & Parke, in London.

                          About TGN

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

                        *    *    *

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

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

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

   -- Obligaciones Negociables for US$175 million.

The ordinary shares had been included in category 4.


ZEOX SA: Extends Claims Verification Deadline Until Oct. 2
----------------------------------------------------------
A court in Buenos Aires extended the deadline for verification
of proofs of claim against insolvent company Zeox S.A. until
Oct. 2, 2006.  The deadline was previously set on July 19, 2006.
Natalio Kinsbrunner is still the court-appointed trustee that
will supervise the proceeding.

Mr. Kinsbrunner will present the validated claims in court as
individual reports on Nov. 13, 2006.  A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Zeox and its creditors.

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

A general report that contains an audit of Zeox' accounting and
banking records will follow on Dec. 27, 2006.

On June 28, 2007, Zeox' creditors will vote on a settlement that
the company will lay on the table.

The debtor can be reached at:

          Zeox S.A.
          Ramon Freire 2911
          Buenos Aires, Argentina

The trustee can be reached at:

          Natalio Kinsbrunner
          Marcelo T. de Alvear 1671
          Buenos Aires, Argentina




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


ISLE OF CAPRI: Net Revenues Up 13% in First Quarter Fiscal 2007
---------------------------------------------------------------
Isle of Capri Casinos, Inc., reported financial results for the
first quarter ended July 30, 2006.  The Company reported a 13.0%
increase in net revenues from continuing operations to US$274.0
million for the first quarter compared to net revenues from
continuing operations of US$242.5 million for the same quarter
in fiscal 2006.  Net income for the first quarter of fiscal 2007
increased 132% to US$9.2 million or US$0.29 per diluted common
share, compared to US$4.0 million or US$0.13 per diluted common
share for the first quarter of fiscal 2006.  Adjusted EBITDA
from continuing operations for the first quarter of fiscal 2007
increased 24.5% to US$56.9 million compared to Adjusted EBITDA
from continuing operations of US$45.8 million for the same
quarter in fiscal 2006.

For the first quarter of fiscal 2007 and fiscal 2006 the Isle-
Bossier City, Isle-Vicksburg and Colorado Grande-Cripple Creek
are reflected as discontinued operations.  Accordingly, the
operating results for these properties are not included in the
net revenue and Adjusted EBITDA results.

"I am pleased that we have begun fiscal 2007 with a solid
performance showing increases in both net revenues and Adjusted
EBITDA ahead of prior year.  In addition, the completion of the
sale of our Vicksburg and Bossier City properties enhances our
financial flexibility and allows us to focus on development
projects as we move forward," Bernard Goldstein, chairman and
chief executive officer, said.

                  Highlights and Updates

   -- On Aug. 18, 2006, the Harrison County Planning
      Commission approved the Company's master plan for the
      previously announced 50-acre development at west Harrison
      County, Mississippi.  The Company continues to place the
      Pine Hills project on a fast track and will announce more
      Specifics about the project as the details become
      finalized.

   -- On July 31, 2006, the Company finalized the sale of its
      Vicksburg, Mississippi and Bossier City, Louisiana
      properties to Legends Gaming, LLC.  The Company received
      net proceeds before any related income taxes of
      US$239.4 million.  The Company continues to evaluate its
      options for the use of these proceeds.

   -- The Company announced that it is proceeding with the
      development of its slot machine facility, which will
      include 1,500 slot machines, a poker room and four
      restaurants, at Pompano Park Harness Track in Florida.
      As previously announced, the Company anticipates that
      a recent adverse court decision will not impact the
      opening of this facility scheduled for early 2007.  An
      appellate court recently ruled that a trial is necessary
      to determine whether the required number of signatures
      were received to place the constitutional amendment on
      the ballot in November 2004, in order to permit slot
      machines at Pompano Park.  An appeal of this decision and
      a request for rehearing is pending.

   -- Accomplished chef Luke Palladino's signature restaurant,
      Bragozzo, created exclusively for the Isle of Capri, is
      scheduled to open in October at the Isle-Biloxi with a
      second restaurant opening in early 2007 at the Company's
      Pompano Park property in Florida.

"Our results show a strong performance for the quarter, despite
the fact that we have absorbed a significantly higher level of
expenses related to increased insurance premiums, stock
compensation expenses, corporate office relocation expenses, and
lease termination costs.  Going forward, we continue to focus on
elevating our existing properties and pursuing our new growth
opportunities," Tim Hinkley, president and chief operating
officer, said.

Operating results for the first quarter of fiscal 2007 include
several significant costs compared to the first quarter of
fiscal 2006.  These costs include an increase of approximately
US$4.5 million in property insurance expense over the prior year
first quarter that was allocated across all operating
properties.  This increase is expected to continue through
fiscal 2007.  The Company also recorded approximately US$2.0
million of stock compensation expense in the first quarter of
fiscal 2007 related to the adoption of FASB Statement No.
123(revised 2004) "Share-Based Payment" (SFAS 123(R)).  This
stock compensation expense is also expected to continue.  The
Company recorded approximately US$2.1 million of relocation
costs related to moving its corporate headquarters to Saint
Louis, Missouri.  Further office relocation costs will be
recorded in the second fiscal quarter of 2007.  The stock
compensation expense and office relocation costs are reflected
in the Corporate and other expense line item. Additionally, the
Company recorded approximately US$2.2 million in lease
termination costs at the Isle-Our Lucaya in the first quarter of
fiscal 2007.  This charge relates to the Company's planned exit
of the Isle-Our Lucaya operation by June 2007.  No further lease
termination costs are expected to be recorded related to Isle-
Our Lucaya.

In Mississippi, the Company's three continuing operations
contributed 31.2% of net revenues.  Isle-Biloxi's net revenues
were up from the prior year period principally because of the
Company's new and upgraded land-based casino and the
continuation of limited competition in the Biloxi market.
Adjusted EBITDA at the property was also up significantly over
the same quarter in fiscal 2006 due to reduced competition in
the market.  Isle-Natchez experienced increases in both net
revenues and Adjusted EBITDA primarily resulting from the
continuing effects of population shifts into its market area.
Isle-Lula's net revenues increased slightly.  Adjusted EBITDA at
the property increased moderately due to more efficient
management of expenses.

In Louisiana, the Isle-Lake Charles contributed 16.3% of net
revenues.  Isle-Lake Charles experienced an increase in net
revenues and Adjusted EBITDA, compared to the prior year period,
primarily due to the closure of a competitor in the market.

In Missouri, the Company's two properties contributed 14.9% of
net revenues.  Isle-Kansas City's net revenues were down due to
a decreased gaming patron count attributable to the completion
of other expansion projects in the market and increased
marketing intensity by competitors.  Isle-Boonville's net
revenues and Adjusted EBITDA increased due to an increase in
marketing efforts and the opening of the new hotel.

In Iowa, the Company's three casinos contributed 18.4% of net
revenues. Combined, the Company's two Quad-City properties and
the Isle-Marquette showed a decrease in both net revenues and
Adjusted EBITDA due to increased competition in the key feeder
markets.

In Colorado, the Company's two Black Hawk casino operations
contributed 14.5% of net revenues.  The increase in net revenues
was due to the completion of our expansion projects.  Adjusted
EBITDA decreased primarily due to increased operating costs
associated with the expanded facility and marketing expenses
associated with the opening of competitors expansion projects.

New development expenses decreased compared to the first quarter
of fiscal 2006 primarily related to costs incurred relating to
pursuit of the casino license in Singapore during the first
quarter of fiscal 2006, partially offset by increased expenses
related to the pursuit of the casino license in Pittsburgh,
Pennsylvania in the first fiscal quarter of 2007.

The increase in corporate expenses is primarily related to costs
incurred related to the move of the corporate offices to Saint
Louis, Missouri and the stock compensation expense related to
the adoption of SFAS 123(R) on May 1, 2006.

Operating results from the Colorado Grande-Cripple Creek, Isle-
Vicksburg and Isle-Bossier City have been classified as
discontinued operations for both periods.

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

                        *    *    *

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

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


NAUTILUS INVESTMENT: Proofs of Claim Filing Is Until Sept. 12
-------------------------------------------------------------
Nautilus Investment & Trading Company Limited's creditors are
given until Sept. 12, 2006, to prove their claims to John
O'Kelly-Lynch, the company's liquidator, or be excluded from
receiving any distribution or payment.

Creditors are required to send by the Sept. 12 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. O'Kelly-Lynch.

A final general meeting will be held at the liquidator's place
of business on Sept. 25, 2006, at 10:00 a.m.

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

Nautilus Investment's shareholders agreed on Aug. 22, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

         John O'Kelly-Lynch
         Covenant House
         85 Reid Street
         Hamilton HM 12, Bermuda


PAN AM: Admin. Claim Holders Can Confirm Claims Until Nov. 30
-------------------------------------------------------------
On July 6, 2006, Pan Am Corp. and its debtor-affiliates
obtained permission from the U.S. Bankruptcy Court for the
Southern District of New York to make final distribution to
administrative creditors.

Holders of administrative claim will receive pro rata share of
the final distribution minus any tax or other withholdings,
reasonably determined by the Debtors to be legally required.

Claimants who did not receive mailed notices or who received
forwarded mailed notices must provide Wells Fargo Bank N.A.
-- the Debtors' distribution agent -- an updated contact
information until Nov. 30, 2006.

The Distribution Agent can be reached by:

   -- toll-free service and information line 1-877-813-3539
      between 9 a.m. and 5 p.m. EST, Monday to Friday

   -- mail to:

      Pan Am Liquidation Trust
      c/o Wells Fargo Bank N.A.
      P.O. Box 2370
      Minneapolis, MN 55402-0370

Additional information regarding the final distribution can be
accessed at http://www.panamliquidationtrust.com/

Headquartered in New York City, New York, Pan Am Corp. is a
holding company for Pan American World Airways, Pan Am Express
and the Pan Am Shuttle.  The Company's air transportation
included flights to Latin America, Europe, Middle East, Africa,
the Bahamas and domestic locations.

Pan Am and certain of its affiliates filed for chapter 11
protection on Jan. 8, 1991 (Bankr. S.D.N.Y. Case No. 91-10080).
On Feb. 15, 1996, Pan Am Liquidation Trust was formed to handle
distribution to claim holders.  Paul A. Rendich, Esq. serves as
responsible officer and trustee.

The distribution fund is from settlement proceeds with Libya
regarding loss of Flight 103 over Lockerbie, Scotland.


WINN-DIXIE: Sets Sept. 12 as Special Bar Date for 287 Claimants
---------------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates inform the
U.S. Bankruptcy Court for the Middle District of Florida that
they have established Sept. 12, 2006, at 5:00 p.m. (Eastern
Standard Time) as a special bar date for 287 subsequently
identified potential claimants who were not identified in time
to receive notice of the original bar date established in the
Debtors' Chapter 11 cases, including potential claimants whose
claims may arise from the provisions of the Debtors' proposed
plan of reorganization.

On Aug. 18, 2006, copies of notices establishing the special
bar date were mailed to:

    -- 76 subsequently identified potential claimants;
       See http://ResearchArchives.com/t/s?1054

    -- 82 potential claimants under Section 7.9(d) of the Plan;
       See http://ResearchArchives.com/t/s?1055

    -- 129 potential claimants under Section 7.10 of the Plan.
       See http://ResearchArchives.com/t/s?1056

Copies of the notices were also sent to the Office of the U.S.
Trustee, counsel of the Official Committee of Unsecured
Creditors, and counsel to the Debtors' postpetition secured
lender.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 50; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


WINN-DIXIE: Posts US$14.4 Mil. Net Loss in Period Ended July 26
---------------------------------------------------------------

                   Winn-Dixie Stores, Inc., et al.
                Unaudited Consolidated Balance Sheet
                         At July 26, 2006
                          (In Thousands)

                              ASSETS
Current assets:
Cash and cash equivalents                             US$194,364
Marketable securities                                     14,355
Trade and other receivables, net                         146,647
Insurance claims receivable                               36,805
Income tax receivable                                     30,382
Merchandise inventories, net                             471,193
Prepaid expenses and other current assets                 36,481
Assets held for sale                                      37,436
                                                      ----------
Total current assets                                     967,663
                                                      ----------
Property, plant and equipment, net                       493,455
Other assets, net                                         91,278
                                                      ----------
Total assets                                        US$1,552,396
                                                      ==========

                LIABILITIES AND SHAREHOLDERS' DEFICIT

Current liabilities:
Current borrowings under DIP Credit Facility           US$40,265
Current portion of long-term debt                            234
Current obligations under capital leases                   3,639
Accounts payable                                         211,308
Reserve for self-insurance liabilities                    75,790
Accrued wages and salaries                                83,250
Accrued rent                                              45,398
Accrued expenses                                          92,751
Liabilities related to assets held for sale                7,672
                                                      ----------
Total current liabilities                                560,307
                                                      ----------
Reserve for self-insurance liabilities                   151,326
Long-term debt                                               144
Obligations under capital leases                           5,120
Other liabilities                                         23,753
                                                      ----------
Total liabilities not subject to compromise              740,650
                                                      ----------
Liabilities subject to compromise                      1,110,768
                                                      ----------
Total liabilities                                      1,851,418

Shareholders' deficit:
Common stock                                             141,858
Additional paid-in-capital                                35,434
Accumulated deficit                                    (455,705)
Accumulated other comprehensive loss                    (20,609)
                                                      ----------
Total shareholders' deficit                            (299,022)
                                                      ----------
Total liabilities and shareholders' deficit         US$1,552,396
                                                      ==========

                   Winn-Dixie Stores, Inc., et al.
          Unaudited Consolidated Statement of Operations
                   Four Weeks Ended July 26, 2006
                          (In Thousands)

Net sales                                             US$551,288
Cost of sales                                            405,633
                                                      ----------
Gross profit on sales                                    145,655
Other operating and administrative expenses              157,369
Restructuring loss                                            51
                                                      ----------
Operating loss                                          (11,765)
Interest expense, net                                        727
                                                      ----------
Loss before reorganization items and income taxes       (12,492)
Reorganization items, net expense                          1,022
Income tax expense                                             0
                                                      ----------
Net loss from continuing operations                     (13,514)

Discontinued operations:
Loss from discontinued operations                          (250)
Loss on disposal of discontinued operations                (667)
Income tax expense                                             0
                                                      ----------
Net loss from discontinued operations                      (917)
                                                      ----------
Net loss                                             US$(14,431)
                                                      ==========

                   Winn-Dixie Stores, Inc., et al.
          Unaudited Consolidated Statement of Cash Flows
                   Four Weeks Ended July 26, 2006
                          (In Thousands)

Cash flows from operating activities:
Net loss                                             (US$14,431)
Adjustments to reconcile net loss to
   net cash used in operating activities:
Gain on sales of assets, net                               (136)
Reorganization items, net                                  1,022
Depreciation and amortization                              7,509
Stock compensation plans                                     560
Change in operating assets and liabilities:
Trade and other receivables                               12,324
Merchandise inventories                                    9,271
Prepaid expenses and other current assets                  (920)
Accounts payable                                        (28,683)
Reserve for self-insurance liabilities                     1,077
Lease liability on closed facilities                     (2,686)
Income taxes receivable                                       81
Defined benefit plan                                        (84)
Other accrued expenses                                    10,841
                                                      ----------
Net cash used in operating activities
   before reorganization items                           (4,255)
Cash effect of reorganization items                      (1,057)
                                                      ----------
Net cash used in operating activities                    (5,312)

Cash flows from investing activities:
Purchases of property, plant and equipment               (2,933)
Decrease in investments and other assets                   6,207
Proceeds from sales of assets                              3,763
Purchases of marketable securities                         (538)
Sales of marketable securities                               519
Other                                                        (6)
                                                      ----------
Net cash provided by investing activities                  7,012

Cash flows from financing activities:
Gross borrowings on DIP Credit Facility                    1,618
Gross payments on DIP Credit Facility                    (1,353)
Principal payments on capital lease obligations            (129)
Principal payments on long-term debt                        (18)
Other                                                         60
                                                      ----------
Net cash provided by financing activities                    178

Increase in cash and cash equivalents                      1,878
Cash and cash equivalents classified as
   Assets held for sale                                    4,975
Cash and cash equivalents at
   beginning of period                                   187,511
                                                      ----------
Cash and cash equivalents at end of period            US$194,364
                                                      ==========

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos. 05-
03817 through 05-03840).  D.J. Baker, Esq., at Skadden Arps
Slate Meagher & Flom LLP, and Sarah Robinson Borders, Esq., and
Brian C. Walsh, Esq., at King & Spalding LLP, represent the
Debtors in their restructuring efforts.  Paul P. Huffard at The
Blackstone Group, LP, gives financial advisory services to the
Debtors.  Dennis F. Dunne, Esq., at Milbank, Tweed, Hadley &
McCloy, LLP, and John B. Macdonald, Esq., at Akerman Senterfitt
give legal advice to the Official Committee of Unsecured
Creditors.  Houlihan Lokey & Zukin Capital gives financial
advisory services to the Committee.  When the Debtors filed for
protection from their creditors, they listed US$2,235,557,000 in
total assets and US$1,870,785,000 in total debts.  (Winn-Dixie
Bankruptcy News, Issue No. 50; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


WINN-DIXIE: Wants Open-Ended Exclusive Solicitation Period
----------------------------------------------------------
Pursuant to Sections 105(a) and 1121(d) of the Bankruptcy Code,
Winn-Dixie Stores, Inc., and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Middle District of Florida to extend
their exclusive period to solicit acceptance of their plan of
reorganization, dated June 29, 2006, as amended, and
subsequently refiled, for about 60 days, to the earlier of:

   (a) the entry of an order confirming the Plan; or

   (b) Oct. 31, 2006.

The Debtors seek an extension of their exclusive solicitation
period, which currently expires on Aug. 29, 2006, to ensure
that they are able to complete the solicitation process without
the risk of distractions resulting from any party's efforts to
take advantage of the termination of the exclusive solicitation
period.

The Debtors ask the Court to approve the extension, without
prejudice to:

    -- their right to seek further extensions of the exclusive
       solicitation period; or

    -- any party-in-interest's right to seek to reduce the
       exclusive solicitation period for cause.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 50; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).




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


* BELIZE: Council Disappointed with Tourism's US$1M Donation
------------------------------------------------------------
The Belize City Council was not satisfied with the Belize
Tourism Board's US$1 million offer for infrastructural projects,
Love FM reports.

As reported in the Troubled Company Reporter-Latin America on
Aug. 24, 2006, the City Council would receive US$1 million
assistance from the Belize Tourism Board.  As previously
reported, the government officials of Belize held a meeting on
Aug. 9 after it was found out the Belize City Council was in a
fiscal imbalance as an effect of the government's cancellation
of the head tax the council would be collecting.  The Tourism
Board said in a news release that it had discussed the request
from the Council to finance special tourism-related
infrastructural projects in Belize City.  The projects include
beautification competition, Antelope Pond Eco Park, redesign of
downtown Albert and Regent Streets, rehabilitation of Belize
City streets, parks and establishment of a vendor and craft
market at Memorial Park.  The Tourism Board agreed to provide
the City Council up to US$1 million through the close of the
financial year ending March 31, 2007.  This will be done in
accordance with a disbursement schedule to be determined by the
Tourism Board, based on a re-budgeting exercise and revised cash
flow projections.  The financial aid would be on certain
conditions:

    -- that both parties sign a Memorandum of Understanding;

    -- that disbursements are to be based on a payment schedule
       to be ratified by the Board of Directors of the Tourism
       Board; and

    -- that should revenue streams of the Tourism Board be
       adversely affected, contributions to the City Council be
       withheld at the discretion of the Tourism Board.

The financial support will also depend on the condition that the
City Council carry out the projects that have been prioritized,
which include:

    -- craft and vendors market at the Memorial Park,
    -- beautification of downtown Belize City, and
    -- refurbishment of Battlefield Park.

Zenaida Moya, the mayor of Belize City, told Love FM, "Should
revenue streams of the BTB (Belize Tourism Board) be adversely
affected that contributions to the Belize City Council be
withheld at the discretion of the board."

Mayor Moya said that the City Council will execute, in
conjunction with the disbursement schedule, the projects
prioritized by the Tourism Board, Love FM relates.

"There is no mention of any sanitation services, if you were to
just go take that money and pay of which that is why we need the
money, we want to use it to pay for the sanitation services.
Then they can come back and tell us you're misusing the fund,
you're misappropriating the fund and we cannot have that," Mayor
Moya told Love FM.

Mayor Moya assured Love FM that the Belize City Council has been
doing its best to meet their commitments to the sanitation
companies.

Tracy Panton, the Director of Tourism, told Love FM, "I find it
a bit difficult to understand why the conditions would be
unfavorable to the City Council.  These are not conditions that
were not in place when the Belize Tourist Board rendered support
to the previous City Council.  I think the mayor mentioned one
this morning which refers to the, conditions if the resources of
the BTB were adversely affected that it was at the discretion of
the board to withhold any counts with the city council and that
condition bears that for example if there is a hurricane and
Belize City is wiped out for example and we're not collecting
hotel accommodation tax we don't have a source of revenue so we
can't share something that we don't have, so that's in the event
of some major event that we don't have any control over that is
at the board's discretion to do that.  Now that particular
condition was also being placed with the previous city council.
The other concern that I have is that the mayor says that she
objects to the memorandum of understanding because we are
prioritizing the project."

Love FM underscores that Ms. Panton said that the mayor's office
sent a letter to the Tourism Board on Aug. 17, asking for
financial support on six projects.  The Tourism Board considered
the project and said to that three are of priority for the
agency.

"These projects came to us from the City Council and we're
saying, of the six, we don't think the million dollars will
cover the six.  We think the million dollars can cover three and
these are the three we would like you to consider half of that
being unreasonable I am not sure," Love FM says, citing Ms.
Panton.

Ms. Panton denied to Love FM that the issue of payment to the
sanitation firms was included in the discussions.

"The message that we received from the City Council did not
mention any of the letters that we received because we received
maybe a letter a day that the monies were to be used for the
operational expenses of the city council or to pay sanitation
workers.  The letter which the Board considered from the City
Council spoke of six projects, it did not speak of using the
money at all in any of the correspondents to pay sanitation
workers.  So that has not even been tabled by the city Council
to BTB.  Now I understand that there have been discussions with
the Ministry of Finance and the Ministry of Local Government on
the matter," Ms. Panton told Love FM.

                        *    *    *

Moody's Investor Service assigned these ratings to Belize:

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

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2006, Standard & Poor's lowered its long-term foreign
currency sovereign credit rating on Belize to 'CC' from 'CCC-'
while leaving its outlook on the rating at negative.  Standard &
Poor's affirmed its 'CCC+' long-term local currency sovereign
credit rating on Belize and revised its outlook on the rating to
stable from negative.  The 'C' short-term sovereign credit
ratings on the sovereign were affirmed by S&&P.




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


FLATIRON RE: Moody's Assigns Low B Ratings on US$420M Sr. Loan
--------------------------------------------------------------
Moody's Investors Service has assigned Ba1 ratings to the US$380
million senior secured term loan facilities and a Ba2 rating to
the US$40 million revolving credit facility of Bermuda-domiciled
Flatiron Re Ltd.  Moody's has also assigned a Baa2 insurance
financial strength rating to Flatiron Re.  The outlook for the
ratings is stable.

The senior secured credit facilities of Flatiron Re include a
US$256 million term loan which was funded at the commencement of
Flatiron Re in December 2005, a US$124 million delayed draw term
loan which was funded recently, and a US$40 million revolving
credit facility which has yet to be drawn upon.  All facilities
mature in December 2010 and are held by financial institutions
and other institutional lenders.  The facilities are secured by
the capital stock of Flatiron Re, and are non-amortizing, but
allow for voluntary prepayments, and require mandatory
prepayments under certain circumstances.

According to Moody's, Flatiron Re Ltd. is a limited-life,
recently-formed Class 3 Bermuda reinsurer that has entered into
a collateralized quota share reinsurance treaty with its sole
cedant, Arch Reinsurance Ltd., (rated A2 for insurance financial
strength) -- a Bermuda-based reinsurance subsidiary of Arch
Capital Group Ltd. Arch Re will cede -- and Flatiron Re will
assume -- up to 45% of the gross written premiums and losses of
Arch Re's property, marine, and other reinsurance, which
includes all proportional and non-proportional reinsurance
contracts that are issued to non-affiliates of Arch Re.  Arch Re
may also present Flatiron Re with opportunities to participate
in lines of business that lie outside those specifically defined
in the reinsurance agreement, although Flatiron Re has no
obligation to participate in such optional risks.  The parties
may also amend contract provisions based upon business
conditions, as was the case recently when the treaty was amended
to increase the cession percentage to 70% temporarily, so that
Flatiron Re would be able to assume more business in the peak
July and August months.

Current capitalization for Flatiron Re is roughly US$943
million, comprised of the US$256 million term loan, US$124
million delayed draw term loan, US$380 million of common equity,
and US$183 million of ceded premiums.  Flatiron Re has posted
its total paid-in capital as cash and securities into a trust to
collateralize its reinsurance obligations to Arch Re.  Funds in
the trust are expected to be invested in investment-grade
securities with restrictions similar to those specified by
Regulation 114.  Under the terms of the senior secured credit
facilities, Flatiron Re's debt obligations are contractually
subordinated to claims of the cedant.

Moody's stated that Flatiron Re's ratings reflect an analysis of
the structural and contractual features of the Flatiron Re
vehicle, as well as probabilistic analysis to determine both the
probability of loss and expected severity of loss to both
Flatiron Re's debt holders and its sole cedant, Arch Re.

The probabilistic analysis centered around three main elements:
capital structure, exposure to catastrophe losses relative to
pricing levels, and structural features of the deal that relate
to the waterfall of payments to stakeholders and, importantly,
the minimum collateral requirements, which in turn dictate
adjustments to the cession percentage and dividend policy.
Moody's placed particular emphasis on the minimum collateral
requirement, given that the interests of equity holders, debt
holders, and the cedant are partly aligned through that
structural feature.

The Ba1 ratings for the senior secured term loan and senior
secured delayed draw term loan are supported by Flatiron Re's
capitalization level relative to its loss exposure, a balance
sheet that is unencumbered by legacy exposures, Arch Re's
favorable (albeit limited) reinsurance track record, and certain
structural characteristics that are designed to offer protection
to debt holders before and during the wind-down period.  These
fundamental strengths are tempered by Flatiron Re's relatively
high debt leverage profile (50% debt to total capital), inherent
volatility of its catastrophe-exposed reinsurance portfolio
(notwithstanding significant price increases in the market), and
parameter risk in the modeling assumptions that form the basis
of the company's capitalization.

Moody's further noted three elements of the transaction that
affected its assessment.  First, debt holders are exposed to
uncertainty regarding the overall risk composition of Flatiron
Re's portfolio, given that the vehicle may elect to accept
optional risks -- and possibly more difficult to quantify risks
-- from Arch Re.  Second, equity holders have access to premium
financing from Arch Re, which allows them to use borrowed funds
to satisfy minimum collateral requirements and to maintain or
increase the vehicle's risk exposure. Lastly, debt holders are
exposed to uncertainty surrounding the exact amount of
liabilities that are owed to Arch Re when the liabilities are
commuted at the end of the vehicle's life.

The Ba2 rating for the senior secured revolving credit facility
reflects its more junior position in the cash waterfall, as
borne out by the modeling results.  Specifically, prepayments
cannot be made on revolving loans until the two term loans have
been fully repaid.

Flatiron Re's Baa2 insurance financial strength rating reflects
the probability of default and expected loss profiles for
obligations to Arch Re, which are enhanced by the establishment
of a collateral trust for the benefit of its sole cedant.

The ratings contemplate a maximum underwriting period of three
years, assuming that equity holders -- having suffered a
cumulative net loss after 21 months -- will elect to extend the
underwriting period by another year and that debt remains in
place accordingly, for the full tenor of five years.  The
ratings also assume no additional debt above the US$420 million
senior secured credit facilities and that draw-downs on the
revolving credit facility will be accompanied by equal amounts
of equity contributions (or such required contributions must be
defrayed by retained earnings), in accordance with the credit
agreement.

Moody's noted that its expectations at the current rating level
are that Flatiron Re will continue to maintain a financial
leverage profile of no more than 50% debt to total capital.
That said, the ratings going forward will reflect updated
analysis of the cumulative performance of the company, its
future overall risk-adjusted capitalization level, and updated
probabilistic analysis of its reinsurance portfolio at future
points in time.  The current ratings do not anticipate any
potential amendments that may be made to the agreements.  Any
future amendments will be evaluated at that point in time and
Moody's will assess the impact on the ratings, if any.

These ratings have been assigned:

   -- senior secured term loan due December 30, 2010 at Ba1;

   -- senior secured delayed draw term loan due Dec. 30, 2010
      at Ba1;

   -- senior secured revolving credit facility due Dec. 30, 2010
      at Ba2;

   -- insurance financial strength at Baa2.

Flatiron Re Ltd., based in Bermuda, is a licensed Class 3
reinsurer that has entered into a collateralized quota share
reinsurance treaty with its sole cedant, Arch Reinsurance Ltd.,
a member company of Bermuda-based Arch Capital Group Ltd.


FOSTER WHEELER: Joseph Melone Retires from Board of Directors
-------------------------------------------------------------
Foster Wheeler Ltd. disclosed that Joseph J. Melone will retire
from the company's board of directors, effective Dec. 31, 2006.

"I would like to thank Joe for his work on the board of
directors and for his eighteen years' dedicated service to
Foster Wheeler," said Raymond J. Milchovich, chairman, president
and CEO.

Mr. Melone was elected to the board of directors in September
1988 and was appointed deputy chairman in September 2002.  He is
also chairman of the compensation committee and a member of the
audit committee.

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

                        *    *    *

As reported in the Troubled Company Reporter on Aug 7, 2006,
Standard & Poor's Ratings Services assigned its 'BB-' bank loan
rating and '1' recovery rating on Foster Wheeler Ltd.'s proposed
five-year, US$350 million senior secured credit facilities due
2011, reflecting a high expectation of full recovery of
principal (100%) in the event of a payment default.

As reported in the Troubled Company Reporter on May 30, 2006,
Moody's Investors Service upgraded Foster Wheeler's corporate
family rating to B1 from B3 and assigned a Ba3 rating to the
Company's US$250 million senior secured bank revolving credit
facility.  The rating outlook is changed to Positive.


REFCO INC: Official Committees Create Joint Subcommittee
--------------------------------------------------------
In a stipulation approved by the U.S. Bankruptcy Court for the
Southern District of New York, members of the Official Committee
of Unsecured Creditors of Refco Inc., and its debtor-affiliates,
and the Additional Official Committee, along with Marc S.
Kirschner, the Chapter 11 trustee for Refco Capital Markets,
Ltd., agree that:

   (1) The Official Committees will create a joint subcommittee
       composed of the appointed and then serving members of the
       Official Committee and the Additional Official Committee.
       The Joint Subcommittee will represent the interests of
       all unsecured creditors in the Debtors' Chapter 11 cases
       with respect to all issues other than with respect to
       asset allocation, intercompany claim, and Chapter 11 plan
       issues between RCM and the other Debtors.

   (2) The Joint Subcommittee and its members will be subject to
       bylaws of the original nine-member committee, as agreed
       to and accepted by the Original Committee on
       Nov. 14, 2005, including the obligation to maintain
       information confidentiality and deliberations of the
       Joint Subcommittee.  However, those may be disclosed to
       certain professionals retained by each of the Official
       Committees and the Joint Subcommittee.

   (3) Each of the Official Committees and the Joint
       Subcommittee will be deemed to have retained and will be
       permitted to use the services of all professionals
       previously retained by the Original Committee, including
       Milbank, Tweed, Hadley & McCloy LLP, Houlihan, Lokey,
       Howard & Zukin LLC, and Kasowitz Benson Torres & Friedman
       LLP.  However, Milbank will not be retained as counsel by
       the Additional Official Committee without prior written
       consent of both the Official Committees.

       None of the professionals retained by any of the Official
       Committees will act as attorneys or financial advisors
       for any individual member of the Official Committee or
       the Additional Official Committee, or any other creditor
       in any matter relating to the Debtors' cases.  The
       Stipulation will not limit the right of each of the
       Official Committees to seek to retain additional
       professionals pursuant to Section 1103(a) of the
       Bankruptcy Code.

   (4) The Official Committees and the Joint Subcommittee will
       be permitted to use the Original Committee Professionals
       to assist the parties with respect to fact finding and
       analysis on matters in respect of which the Original
       Committee Professionals have performed.

       The RCM Trustee will be permitted access to all financial
       information and analysis prepared by the Original
       Committee Professionals.  The RCM Trustee may, although
       not on the basis of an advisor-client relationship,
       consult with the Original Committee Professionals
       concerning information and analysis and may also request
       that those professionals prepare reports and financial
       models to assist him with respect to fact finding and
       analysis on certain matters.

       None of the Official Committees, the Joint Subcommittee
       or the RCM Trustee may use any of the Original Committee
       Professionals as expert witnesses in litigation adverse
       to any of the other Parties.  However, if both of the
       Official Committees expressly consent, any of the
       Official Committees or the Joint Subcommittee may use the
       Original Committee Professionals as expert witnesses in
       litigation adverse to the RCM Trustee.

The Parties further clarify that that the Stipulation is not
intended to create an advisor-client relationship between the
Original Committee Professionals and the RCM Trustee with
respect to the Original Committee Professionals' factfinding and
analysis.

The Official Committees, the Joint Subcommittee, the Debtors and
the U.S. Trustee will not object to the retention of or seek
disqualification of any of the professionals engaged by any or
all of the Official Committees or the Joint Subcommittee based
on access given by any of the professionals to the RCM Trustee,
or services rendered by any professional to the Official
Committees or the Joint Subcommittee.  The RCM Trustee will not
seek to disqualify any professionals based on his access to
those professionals.

Nothing in the Stipulation will be deemed to limit the right of
any of the Parties, the Debtors, or the U.S. Trustee to oppose
the retention of or to seek disqualification of a professional
for an actual conflict of interest.  The Parties and the
Official Committee members consent to Kasowitz's retention as
general counsel to the Additional Committee, provided that a
proper application for that retention will be made to the
Bankruptcy Court.

                      About Refco Inc.

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

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

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

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

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 39; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


REFCO INC: U.S. Trustee Reconstitutes Official Creditors Panel
--------------------------------------------------------------
Diana G. Adams, the acting United States Trustee for Region 2,
further reconstitutes the Official Committee of Unsecured
Creditors as of Aug. 3, 2006, to enable its members to meet
their fiduciary obligations to their constituents.

The U.S. Trustee appoints additional members to the Creditors
Committee to represent the interests of Refco Capital Markets,
Ltd. account holders asserting claims against the "Other Refco
Debtors" for, among others:

   * wrongful interference with contract and prospective
     economic advantage;

   * common law conversion and law fraud;

   * aiding and abetting fraud and breach of fiduciary duty

   * constructive trust;

   * unjust enrichment;

   * violations of federal and state securities laws and the
     "RICO" Act and other causes and similarly situated
     claimants.

The Additional Committee is composed of:

   1. VR Global Partners, L.P.
      Avora Business Park
      77 Sadovnicheskaya Nab. Building 1
      Moscow, Russia 115035
      Attention: Richard Deitz
      Phone: (011) 709-578-78181

   2. Premier Bank International N.V.
      Abraham Veerstraatt 7-A
      Willemstad, Curazao, Netherlands Antilles
      Attention: Richard Levinson, U.S. Representative
      Phone: (59-99) 461-3967 or 465-7708

   3. Everest Asset Management, Inc.
      1100 North 4th Street, Suite 143
      Fairfield, Iowa 52556
      Attention: Peter Lamoureux, President
      Phone: (641) 472-5500

   4. Fimex International Ltd.
      375 Park Avenue
      New York, New York 10152
      Attention: David Martinez
      Phone: (212) 593-4500

   5. Markwood Investments, Ltd.
      Via Lovanio 19
      Rome, Italy 00198
      Attention: Salvador Frieri
      Phone: (212) 408-5100

                      About Refco Inc.

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

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

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

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

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 37; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


QUANTA CAPITAL: Says Control Over Fin'l Reporting Ineffective
-------------------------------------------------------------
Quanta Capital Holdings Ltd. admits in a regulatory filing with
the U.S. Securities and Exchange Commission that its internal
controls over financial reporting are ineffective.

Quanta identified these problems:

     i) it lacks enough personnel within the company's US
        accounting function with adequate expertise and training
        commensurate with Quanta's financial reporting
        requirements;

    ii) it does not maintain effective controls over the
        accuracy and completeness of certain spreadsheets used
        as part of Quanta's financial reporting process;

   iii) it does not maintain effective controls over the
        completion and reconciliation and analyses for gross and
        ceded premiums, losses, other expenses and the related
        balance sheet accounts for Quanta's US processed
        transactions;

    iv) its management also failed to maintain effective
        disclosure controls or procedures to ensure that
        information was reported and filed with the SEC in a
        timely fashion, though that material weakness was
        remedied as of June 30.

                      About the Company

Headquartered in Hamilton, Bermuda, Quanta Capital Holdings Ltd.
(NASDAQ: QNTA) -- http://www.quantaholdings.com/-- operates its
Lloyd's syndicate in London and its environmental consulting
business through Environmental Strategies Consulting in the
United States.  The Company is in the process of running off its
remaining business lines.  The Company maintains offices in
Bermuda, the United Kingdom, Ireland and the United States.

                        *     *     *

As reported in the Troubled Company Reporter on Aug. 15, 2006,
Quanta Capital Holdings Ltd. continues to work with its lenders
regarding an amendment to its credit facility and an extension
to its waiver period, which expired Aug. 11, 2006.

On June 7, 2006, A.M. Best Co. downgraded the financial strength
ratings to B from B++ and the issuer credit ratings to bb from
bbb for the insurance/reinsurance subsidiaries of Quanta Capital
Holdings Ltd.  These rating actions apply to Quanta Reinsurance
Ltd., its subsidiaries and Quanta Europe Ltd.  A.M. Best also
downgraded Quanta's ICR to b from bb and the securities rating
to ccc from b+ for its US$75 million 10.25% Series A non-
cumulative perpetual preferred shares.  All ratings have been
removed from under review with negative implications and
assigned a negative outlook.

The company disclosed that the A.M. Best rating action triggered
a default under Quanta's credit facility.




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


* BOLIVIA: Won't Construct Sucre Airport Due to Lack of Funding
---------------------------------------------------------------
Juan Ramon Quintana, Bolivia's government minister, told local
paper Correo del Sur that the government has postponed the
construction of a new airport in the Chuquisaca department in
Sucre due to lack of funding.

The Bolivian government does not have necessary financial
resources for the construction of the new airport, Business News
Americas reports, citing Minister Quintana.

Minister Quintana told BNamericas, "We can not spend US$40
million on earth-moving works alone; the government must also
pay for land expropriations in the jurisdiction of this
important project."

According to BNamericas, constructing the airport would need an
estimated US$80 million investment, and expropriations would be
additional to the US$120 million estimated total cost.

A communications official from the municipality of Sucre told
Business News Americas that the community has already started
pressuring the government to meet its responsibilities.

According to BNamericas, Venezuela's President Hugo Chavez
disclosed a US$120 million funding for the airport's
construction last May, through a 35-year loan from Bandes,
Venezuela's state-run development bank.  The loan contract was
slated to be penned during President Chavez's visit to Sucre
this month.

However, the communications official told BNamericas, "That
announcement was never made official, and [Bolivia's] President
[Evo] Morales later denied it, arguing that the funds were not
to come from ChA­vez's government, but from Bandes."

Bandes decided not to lend the amount, BNamericas relates,
citing the official.

The project is not abandoned, and the government would look for
resources from other nations once the final project design is
available, Minister Quintana told BNamericas.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


AES CORP: Brazilian Unit Posts BRL8.2MM First Half 2006 Profit
--------------------------------------------------------------
The first Half 2006 profit of AES Communications Rio de Janeiro
SA, AES Corp.'s unit in Brazil, increased 87% to BRL8.2 million,
compared with the BRL4.4 million in the same period of 2005,
according to the local press.

Business News Americas relates that AES Communications' net
revenues in the first half of 2006 increased 24.2% to BRL27
million, compared with the first half of 2005.

Sergio Pepe, the president of AES Communications, told
BNamericas that the boost reflects increased demand by fixed
line and mobile operators for specialized circuits.

BNamericas states that AES Communications has a network covering
120 points of presence or POPs in Rio de Janeiro.

Over the rest of 2006, AES Communications will deploy another 30
POPs, BNamericas reports.

AES Corp. (NYSE:AES) -- http://www.aes.com/-- is a global
power company.  The Company operates in South America, Europe,
Africa, Asia and the Caribbean countries.  Generating 44,000
megawatts of electricity through 124 power facilities, the
Company delivers electricity through 15 distribution companies.

AES's Latin America business group is comprised of generation
plants and electric utilities in Argentina, Brazil, Chile,
Colombia, Dominican Republic, El Salvador, Panama and Venezuela.
Fuels include biomass, diesel, coal, gas and hydro.  The group
also pursues business development activities in the region.  AES
has been in the region since May 1993, when it acquired the CTSN
power plant in Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on May 25, 2006,
Fitch affirmed The AES Corp.'s Issuer Default Rating at 'B+'.
Fitch also affirmed and withdrew the ratings for the
company's junior convertible debt.  Fitch said the Rating
Outlook for all remaining instruments is Stable.

As reported in the Troubled Company Reporter on March 31, 2006,
Standard & Poor's Ratings Services raised its corporate credit
rating on energy company The AES Corp. to 'BB-' from 'B+'.  S&P
said the outlook is stable.

As reported in the Troubled Company Reporter on Jan. 11, 2006,
Moody's affirmed the ratings of The AES Corp., including
its Ba3 Corporate Family Rating and the B1 rating on its senior
unsecured debt.  Moody's said the rating outlook remains stable.


BANCO DO BRASIL: Unit Posts BRL70.4MM First Half Net Profits
------------------------------------------------------------
Brasilprev, the pension unit of Banco do Brasil, said in a
statement that its net profits increased 1.17% to BRL70.4
million in the first half of 2006, compared with the BRL69.6
million in the first half of 2005.

The increase was due to higher sales of the VGBL pension plan,
Brasilprev told Business News Americas.

Brasilprev posted these results:

    -- net contributions increased 10.2% to BRL1.08 billion in
       the first half of 2006, compared with BRL983 million in
       the same period of 2005;

    -- new VGBL contributions grew 32.4% in the first half to
       BRL414 million, compared with the BRL313 million from the
       same period last year;

    -- sales of the PGBL pension plan increased 12.2% to BRL363
       million;

    -- technical reserves rose 24.1% to BRL10.5 billion; and

    -- total assets increased 24.1% to BRL10.7 billion at the
       end of the first half of 2006, compared with the same
       period of 2005.

BNamericas relates that the VGBL plan was 38% of Brasilprev's
portfolio at the end of June 2006, compared with 32% at the same
time last year.  PGBL's participation remained at 33%.

Brasilperv, according to BNamericas, started courting higher-
income customers during the first half of 2006 through the
launching of Brasilprev Private, which has both VGBL and PGBL as
investment options.

BNamericas underscores that income taxes charged on the VGBL
plans was 10%, while investment funds carry a minimum income tax
of 15%.

Total billing of Brailprev is expected to increase 13% this year
compared with last year, BNamericas states.

                        *    *    *

As reported on Mar. 3, 2006, Standard & Poor's Ratings Services
raised its foreign currency counterparty credit ratings on Banco
do Brasil S.A. to 'BB' from 'BB-'.  The foreign and local
currency ratings of this bank are now equalized at 'BB'.  S&P
said the outlook is stable.


BANCO NACIONAL: Grants BRL115.7 Mil. Financing to CEG
-----------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a BRL115.7 million financing to Gas Distribution
Company of Rio de Janeiro -- CEG.  The resources will be
directed to three projects:

   -- the implementation and saturation of the distribution
      network of piped natural gas in the municipalities of
      Rio de Janeiro, Niteroi, Sao Goncalo and Baixada
      Fluminense;

   -- the infrastructure conversion of manufactured gas into
      natural gas in Rio de Janeiro; and

   -- the replacement and renewal of cast iron network and
      extensions.

The total investment amounts to BRL170 million.  The project
will enable the maximization of the use of existing distribution
networks, due to the increase in client bases.  The
environmental quality in the municipalities will also improve by
the replacement of polluter energetic sources.

In 2006, besides the financing to CEG, BNDES contracted with
Natural Gas Sao Paulo Sul or GNSPS, a BRL44 million financing
and two other financings to distribution enterprises amounting
roughly to BRL970 million.  BNDES has been intensively
supporting the gas distribution sector since 1999 The bank's
involvement is considered to be fundamental in the expansion and
strengthening of the natural gas chain.

With the implementation and saturation project, it is expected
that natural gas sales will increase by 150,000 cubic meters a
day.  The investments will be directed to the construction of
210 kilometers of low and medium pressure network and extensions
for the year 2006.  It is aimed at enlarging the support to
residential, commercial, automotive and industrial markets,
especially, in areas where distribution network already exists.

Market perspectives for the Projeto Saturacao are promising, due
to advancement in the negotiations between CEG and the
industrial sector regarding the supplement agreement.  Moreover,
there is a great demand for gas stations to fill up automobiles
powered by Natural Gas Vehicle and the residential sector aims
at increasing its client basis, at least, for the next three
years.

The conversion of manufactured gas into natural gas, which is
safer and with more calorific power, will reach roughly 91,000
for CEG's clients.  Until April of this year, about 370,000
conversions were performed.  The enterprise will replace the
oldest network, especially, in stretches with cast iron, which
has been built throughout the area encompassed by the network in
the municipality of Rio de Janeiro.  The network renewal
project, which has the main objective of giving gas distribution
system more confidentiality, has already replaced over 56 km of
network, 27,500 extensions and 45,500 valves.  For this reason,
the leakage index dropped to about 80%.

The CEG operation, which will generate 250 indirect jobs during
its implementation phase, is projected to reduce Liquefied
Petroleum Gas and consequently to drop the product import and
costs.

                        *    *    *

As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook.  The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.


BANCO NACIONAL: Implements Changes in Modermaq Financing
--------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
disclosed changes in Modermaq, a financing program in the
acquisition of capital goods.  New rules will enable enterprises
to obtain resources with a fixed rate, which is lower than the
former charge rate, and from now on, accounting includes the
option of contracting financings with variable interest rates.
The new Modermaq will also start the financing of hospital &
medical equipment.

"The scenario of macroeconomic stability and the perception of a
favorable environment to investments contributed to the variable
rate introduction in the program", said the president of BNDES,
Demian Fiocca, during a collective interview.

Regarding the financing of hospital & medical equipment, Pres.
Fiocca estimated that the financing will prompt the domestic
production of goods which are presently imported.

The president of the Brazilian Association of Machinery and
Equipment Industry or Abimaq, Newton de Mello in turn, praised
BNDES' effort in reducing financing costs to the means of
production.  "We are reaching fair interest rates for
investments", affirmed Mr. Mello.

Regarding the cost and profile of the credit, the final
beneficiary can opt for two modalities.  The first, with a fixed
rate that may reach a minimum threshold of 9.5% p.a.,
considering the lowest cost charged by financial agents of 1%
p.a.  Should the borrower decide for a modality with variable
rate, the borrower will be able to reach a minimum cost of 9%
p.a.  The second alternative becomes attractive when the Long-
Term Interest Rate outlines a falling trajectory; however, the
fixed modality will meet the demand of enterprises that opt for
lower risk in parallel oscillations.

                        *    *    *

As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook.  The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.


CENTRAIS ELECTRICAS: Envt'l Laws Hinder Hydroelectric Projects
--------------------------------------------------------------
Centrais Electricas Brasileiras SA, or Eletrobras, said that
Brazil will have problems meeting its electricity needs if
environmental laws stalling the construction of large
hydroelectric dams are not modified, the Associated Press
reports.

Eletrobras President Aloisio Vasconcelos Novais stressed to AP
the necessity for the country to discuss environmental issues in
relation to the dams from which the nation gets 95% of its
power.

Mr. Novais emphasized that absent approval for the construction
of large dams in the amazon meant the country is losing the race
to meet growing demand, AP relates.

"The economy should grow by 3.5% or 4% a year so energy has to
grow from 5% to 6% a year," the company president was quoted by
AP as saying.

According to a report from Valor Economico, President Luiz
Inacio Lula da Silva has set up a task force to resolve
questions surrounding hydroelectric projects in the Amazon --
which have proven almost impossible to approve in recent years.

AP says Brazil's government hopes to auction the rights to build
and operate the 3,300-megawatt Jirau plant and the 3,150-
megawatt Santo Antonio plant on the Madeira River in November or
December.  Environmental agencies have yet to approve the dam
and prosecutors are seeking to halt the project.

Meanwhile, Luiz Pinguelli Rosa, a professor at Rio de Janeiro's
Federal University and a former president of Eletrobras, said
that without the construction of new hydroelectric dams, the
country runs the risk of electricity shortages by 2010, AP
relates.

"To make the hydroelectric plants viable the government has to
make a social pact, talk with the environmentalists and try to
resolve the problem over environmental licensing," Mr. Pinguelli
told AP.

Environmentalists are against dams because they require large
areas of land to be flooded and often damage the health of the
rivers they block.  Scientists say the rotting trees in the
newly formed lakes emit methane, a greenhouse gas.

Mr. Pinguelli underscored the importance for Brazil to continue
to invest in hydroelectric power, especially considering the
uncertain availability of natural gas from Bolivia, AP states.

                        *    *    *

On Feb. 28, 2006, Standard & Poor's assigned these ratings to
Centrais Electricas Brasileiras SA:

     * Long-Term Foreign Issuer Credit, BB; and
     * Long-Term Local Issuer Credit, BB+.


CIA SIDERURGICA: Report Says Flat Steel Market Share Rises 31%
--------------------------------------------------------------
Merril Lynch said in a report that the flat steel market share
of Companhia Siderurgica Nacional aka CSN increased 31% within
Brazil in July.

"CSN's market share in the domestic flat steel market hit a low
of 23% in March-April 2006, compared with an average of 30% in
2005," Merril Lynch reports.

Business News Americas relates the Merrill Lynch said Usiminas
and Arcelor Brasil have been losing share to CSN.

"It is important to remember that Brazilian companies are
currently implementing price increases in the domestic flat
steel market of between 5% and 12%, depending on the product,"
The US investment bank told BNamericas.

Companhia Siderurgica Nacional aka CSN produces, sells, exports
and distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.

                        *    *    *

Standard & Poor's Ratings Services affirmed on Aug. 4, 2006, its
'BB' long-term corporate credit rating on Brazil-based steel
maker Companhia Siderurgica Nacional aka CSN after the
announcement of its association with U.S.-based steel maker
Wheeling-Pittsburgh Corp. in the U.S.  The outlook is stable.

Fitch Ratings viewed the proposed merger of Companhia
Siderurgica Nacional's or CSN North American operations with
those of Wheeling-Pittsburgh Corporation or WPSC to be neutral
to CSN's credit quality.  Fitch's ratings of CSN include:

  -- Foreign currency Issuer Default Rating: 'BB+';
  -- Local currency IDR: 'BBB-';
  -- National scale rating: 'AA (bra)';
  -- Senior unsecured notes 'BB+'; and
  -- Brazilian Real denominated debentures: 'AA (bra)'.


DIRECTV GROUP: DIRECTV Brasil Completes Merger With Sky Brasil
--------------------------------------------------------------
The DIRECTV Group, Inc., disclosed that the merger of Sky Brasil
and DIRECTV Brasil is now complete.  Under the transaction, the
DIRECTV Group has acquired the interests of News Corp. and
Liberty Media in Sky Brasil.

Following the transaction, the DIRECTV Group now owns
approximately 74% of Sky Brasil and Globo Comunicacao e
Participacoes S.A. owns approximately 26%.  The DIRECTV Group
will control day-to-day management of Sky Brasil and Globo will
remain with minority governance rights, consistent with its
position as a strategic partner, and will continue in its role
as the lead supplier of Brazilian programming to the platform.

Together, DIRECTV Brasil and Sky Brasil have approximately 1.3
million subscribers, making up one third of all pay television
subscribers in Brazil.  Following the merger, DIRECTV Brasil
customers will migrate to the Sky Brasil platform.

This merger completes a series of separate transactions
originally agreed upon in October 2004 with News Corporation,
Globo, Grupo Televisa, S.A., and Liberty Media International, to
combine the two DTH platforms of DIRECTV Latin America and Sky
Latin America into a single platform in each of the major
territories served in the region.  As a result, the DIRECTV
Group and its affiliate Sky Mexico (in which the DIRECTV Group
has a 41% interest) now serve approximately 4 million
subscribers in Latin America.

"We're pleased to have finalized this last transaction of
combining Sky Brasil and DIRECTV Brasil," said Bruce Churchill,
president of DIRECTV Latin America.  "Now we can fully focus our
efforts on moving forward, growing the business and providing
the 4 million DIRECTV and Sky subscribers in the region with the
best television experience possible."

                        About DIRECTV

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

                        *    *    *

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


VARIG: Air Canada Looking to Buy 10% Stake in Airline
-----------------------------------------------------
ACE Aviation Holdings, parent of Air Canada, the country's
flagship carrier, is currently in talks to acquire a 10% equity
interest in VARIG S.A., Dow Jones reports, citing Brazilian
newspaper O Estado de S. Paulo.

Air Canada is expected to announce a deal shortly, according to
Dow Jones.

As previously reported, Volo do Brasil acquired the operating
arm of VARIG at an auction in July 2006.  Volo pledged to invest
more than US$500,000,000 to pay VARIG's debt and keep the
airline flying.

O Estado said a draft deal between the parties provides for the
transfer of certain of Air Canada's Boeing 767 fleet and at
least six orders for Embraer E190 planes to VARIG, Dow Jones
relates.  A spokesperson for Volo said Air Canada has no stake
in VARIG at present.

According to Dow Jones, the Brazilian newspaper said Air
Canada's involvement depends on the approval of the sale of
VARIG's operating unit to Volo do Brasil.  Estado said the
National Civil Aviation Agency in Brazil was expected to rule on
the sale on August 25, 2006.  Estado also noted that Air
Canada's acquisition of a stake in VARIG still needs sanction
from ANAC.  Brazilian law prohibits foreign companies from
owning more than 20% equity stake in local airlines.

                        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.


* BRAZIL: Intends to Repurchase More Foreign Debts
--------------------------------------------------
The Brazilian government plans to buyback more of its foreign
bonds in order to lessen the country's vulnerability to currency
declines, Bloomberg News quoted Treasury Secretary Carlos Kawall
as saying.

"It remains part of our strategy," Minister Kawall explained to
Bloomberg.  "We probably wouldn't do another transaction in the
very short term, but we don't rule out transactions aimed at
liability management toward year-end or the beginning of next
year."

Bloomberg says the Brazilian government on August 3 swapped
US$500 million of dollar-denominated bonds maturing between 2020
and 2030, with bonds due in 2037 in exchange.  Minister Kawall
disclosed that the swap is being evaluated before another
transaction will be held.

Brazil has bought back about US$15 billion of foreign debt this
year, Bloomberg states.

                        *    *    *

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


ATTICUS ALPHA FUND: Last Day to File Proofs of Claim Is Aug. 30
---------------------------------------------------------------
Atticus Alpha Fund, Ltd.'s creditors are required to submit
proofs of claim by Aug. 30, 2006, to the company's liquidators:

         Lawrence Edwards
         David A. K. Walker
         PwC Corporate Finance & Recovery (Cayman) Limited
         Strathvale House
         P.O. Box 258, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Atticus Alpha's shareholders agreed on Aug. 1, 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:

         Giorgio G. Subiotto
         c/o Ogier
         Queensgate House, South Church Street
         P.O. Box 1234, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914-1672
         Fax: (345) 949-1986


ATTICUS ALPHA: Creditors Must File Proofs of Claim by Aug. 30
-------------------------------------------------------------
Atticus Alpha, Ltd.'s creditors are required to submit proofs of
claim by Aug. 30, 2006, to the company's liquidators:

         Lawrence Edwards
         David A. K. Walker
         PwC Corporate Finance & Recovery (Cayman) Limited
         Strathvale House
         P.O. Box 258, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Atticus Alpha's shareholders agreed on Aug. 1, 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:

         Giorgio G. Subiotto
         c/o Ogier
         Queensgate House, South Church Street
         P.O. Box 1234, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914-1672
         Fax: (345) 949-1986


ATTICUS OPPORTUNITY FUND: Filing of Claims Is Until Aug. 30
-----------------------------------------------------------
Atticus Opportunity Fund, Ltd.'s creditors are required to
submit proofs of claim by Aug. 30, 2006, to the company's
liquidators:

         Lawrence Edwards
         David A. K. Walker
         PwC Corporate Finance & Recovery (Cayman) Limited
         Strathvale House
         P.O. Box 258, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Atticus Opportunity's shareholders agreed on Aug. 1, 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:

         Giorgio G. Subiotto
         c/o Ogier
         Queensgate House, South Church Street
         P.O. Box 1234, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914-1672
         Fax: (345) 949-1986


ATTICUS OPPORTUNITY: Claims Filing Deadline Is Set for Aug. 30
--------------------------------------------------------------
Atticus Opportunity, Ltd.'s creditors are required to submit
proofs of claim by Aug. 30, 2006, to the company's liquidators:

         Lawrence Edwards
         David A. K. Walker
         PwC Corporate Finance & Recovery (Cayman) Limited
         Strathvale House
         P.O. Box 258, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Aug. 30 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Atticus Opportunity's shareholders agreed on Aug. 1, 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:

         Giorgio G. Subiotto
         c/o Ogier
         Queensgate House, South Church Street
         P.O. Box 1234, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914-1672
         Fax: (345) 949-1986


AVENEL LIMITED: Sets Final Shareholders Meeting on Sept. 13
-----------------------------------------------------------
Avenel Limited's final shareholders meeting will be at 9:00 a.m.
on Sept. 13, 2006, at the company's registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


CITADEL INVESTMENT: Last Shareholders Meeting Is Set for Aug. 31
----------------------------------------------------------------
Citadel Investment Group Employment Company Ltd.'s final
shareholders meeting will be at 10:00 a.m. on Aug. 31, 2006, at:

         Close Brothers (Cayman) Limited
         4th Floor Harbour Place, George Town
         Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         Linburgh Martin
         Attention: Deanna Derrick
         Close Brothers (Cayman) Limited
         Fourth Floor, Harbour Place
         P.O. Box 1034, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949 8455
         Fax: (345) 949 8499


CITIC CAPITAL: Final Shareholders Meeting Is Set for Aug. 31
------------------------------------------------------------
Citic Capital-Parallax Asia Fund, Ltd.'s final shareholders
meeting will be at 10:00 a.m. on Aug. 31, 2006, at:

         Close Brothers (Cayman) Limited
         4th Floor Harbour Place, George Town
         Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


COLESVILLE LIMITED: Last Shareholders Meeting Is on Sept. 13
------------------------------------------------------------
Colesville Limited's final shareholders meeting will be at 9:30
a.m. on Sept. 13, 2006, at the company's registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         Westport Services Ltd
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


DAKOTACARE INSURANCE: Proofs of Claim Filing Is Until Aug. 31
-------------------------------------------------------------
Dakotacare Insurance, Ltd.'s creditors are required to submit
proofs of claim by Aug. 31, 2006, to the company's liquidators:

         Linda Haddleton
         Audrey Dixon
         HSBC Financial Services (Cayman) Limited
         P.O. Box 1109, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-7755
         Fax: (345) 949-7634

Creditors who are not able to comply with the Aug. 31 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Dakotacare Insurance's shareholders agreed on July 31, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


DYNAMIC CREDIT: Liquidator Presents Wind Up Accounts on Aug. 31
---------------------------------------------------------------
Dynamic Credit Opportunities Fund I Offshore, Ltd.'s
shareholders will convene for a final meeting on Aug. 31, 2006,
at:

         dms Corporate Services Ltd.
         Ansbacher House
         2nd Floor, #20 Genesis Close
         P.O. Box 31910 SMB, George Town
         Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

         dms Corporate Services Ltd.
         Attention: Angela Nightingale
         Ansbacher House
         P.O. Box 31910 SMB
         Grand Cayman, Cayman Islands
         Tel: (345) 946 7665
         Fax: (345) 946 7666


FAUNA PLACE: Calls Shareholders for a Final Meeting on Aug. 31
--------------------------------------------------------------
Fauna Place Ltd.'s final shareholders meeting will be at 10:00
a.m. on Aug. 31, 2006, at:

         Close Brothers (Cayman) Limited
         4th Floor Harbour Place, George Town
         Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


FLAGTOWN LIMITED: Sets Last Shareholders Meeting on Sept. 13
------------------------------------------------------------
Flagtown Limited's final shareholders meeting will be at 10:00
a.m. on Sept. 13, 2006, at the company's registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


LEEWARD OFFSHORE: Holding Final Shareholders Meeting on Aug. 31
---------------------------------------------------------------
Leeward Offshore Resource Fund (US)'s final shareholders meeting
will be at 10:00 a.m. on Aug. 31, 2006, at:

         Close Brothers (Cayman) Limited
         4th Floor Harbour Place, George Town
         Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


LION1 LDC: Shareholders Convene for a Final Meeting on Sept. 9
--------------------------------------------------------------
Lion1 LDC's final shareholders meeting will be at 9:00 a.m. on
Sept. 9, 2006, at the company's registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         Walker House, P.O. Box 908
         George Town, Grand Cayman


PACIFIC VIEW: Invites Shareholders for Final Meeting on Aug. 31
---------------------------------------------------------------
Pacific View Offshore Fund, Ltd.'s final shareholders meeting
will be at 10:00 a.m. on Aug. 31, 2006, at:

         Close Brothers (Cayman) Limited
         4th Floor Harbour Place, George Town
         Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


PARAMUS LIMITED: Last Shareholders Meeting Is Set for Sept. 13
--------------------------------------------------------------
Paramus Limited's final shareholders meeting will be at 10:30
a.m. on Sept. 13, 2006, at the company's registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 1111, Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


PIONEER 2002: Creditors Have Until Sept. 13 to Prove Claims
-----------------------------------------------------------
Pioneer 2002 Limited's creditors are required to submit proofs
of claim by Sept. 13, 2006, to the company's liquidators:

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

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

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


WATER STREET: Grand Court Set to Hear Petition on Sept. 8
---------------------------------------------------------
The Grand Court of the Cayman Islands set 10:00 a.m., on
Sept. 8, 2006, to hear the petition for the compulsory winding
up of Water Street Insurance Company Limited's business
operation.  The petition was presented to the Grand Court on
July 25, 2006.

Parties-in-interests who want to attend the hearing must inform
and serve notice of their intention to:

         Cayman Islands Monetary Authority
         P.O. Box 10052 APO
         80E Shedden Road, George Town
         Grand Cayman, Cayman Islands

Inquiries may be addressed to the joint controllers through:

         Chris Rowland
         Deloitte & Touche Cayman Islands
         P.O. Box 1787GT
         4th Floor Citrus Grove, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-7500
         Fax: (345) 949-8258




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


AES GENER: Coal Project Environmental Study Gets Corema Approval
----------------------------------------------------------------
The environmental impact study on the 250-megawatt Nuevas
Ventanas project of AES Gener has received the approval of
Corema, Chile's Region V environmental authority, according to a
report posted in the Web site of Conama -- the national
environmental regulator.

Business News Americas relates that AES Gener submitted the
project's EIS in July 2005.

BNamericas previously reported that Nuevas Ventanas would use
coal and a mixture of coal and petcoke as fuels to provide
energy to Chile's central grid.

According to the report, the project would cost US$317 million.
It is estimated to start operating in 2009.

Nuevas Ventanas is part of AES Gener's effort to branch out
power generation feedstock away from Argentine natural gas,
which has been restricted for the past two years, BNamericas
states.

                       About AES Gener

Gener is the second-largest electricity generation group in
Chile in terms of generating capacity (20% market share) with an
installed capacity of 2,428 MW.  Gener serves both the Central
Interconnected System or SIC and the Northern Interconnected
System or SING through various subsidiaries and related
companies, including affiliate Guacolda and the TermoAndes
subsidiary.  TermoAndes has a generation capacity of 642.8 MW,
which while located in Argentina serves Chile?s SING via
InterAndes transmission line.  Gener also participates in
electricity generation in Colombia through Chivor hydroelectric
plant of 1,000 MW, and a 25% participation in Itabo's facilities
in the Dominican Republic (432.5 MW).  Gener is 91.2% owned by
AES (IDR rated 'B+' by Fitch).

                        *    *    *

On June 16, 2006, Fitch Ratings upgraded the local and foreign
currency Issuer Default Ratings of AES Gener S.A. to 'BB+' from
'BB'.  Fitch also upgraded Gener's senior unsecured debt rating,
which consists of US$400 million senior notes due 2014, to
'BB+'.  Moreover, Fitch revised Gener's Rating Outlook to
Positive from Stable.

On May 24, 2006, Moody's Investors Service upgraded the senior
unsecured debt of AES Gener to Ba1 from Ba3, concluding a review
for possible upgrade.  Moody's said the rating outlook is
stable.




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


ECOPETROL: Starts Market Analysis for Liquid Fuels Transport
------------------------------------------------------------
Ecopetrol, the state-run oil company of Colombia, told Business
News Americas that it has launched a market analysis for the
transport of liquid fuels along river Magdalena to Atlantic
coast ports.

BNamericas reports that Ecopetrol is asking information like
cost estimates and transport capacities from firms to draft the
terms of a future process on contractor selection for the
transport of the liquid fuels.  Companies are given until Sept.
5 to hand in information.

Ecopetrol may have to ship over three million barrels per year,
BNamericas relates.

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

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




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C O S T A   R I C A
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HJ HEINZ: Declares Common & Preferred Stock Quarterly Dividends
---------------------------------------------------------------
The H.J. Heinz Company declared quarterly dividends on both
common and preferred stock.

Common Stock

   -- US$0.35 per share on the company's 25% par value Common
      Stock payable on Oct. 10, 2006 to shareholders of record
      at the close of business on Sept. 22, 2006.

Preferred Stock

   -- US$0.425 per share on the company's Third Cumulative
      Preferred Stock, US$1.70 First Series, payable
      Oct. 1, 2006, to shareholders of record at the close of
      business on Sept. 22, 2006.

Founded in 1869, H. J. Heinz Company markets and produces
branded foods in ketchup, condiments, sauces, meals, soups,
seafood, snacks and infant foods. Key brands include Heinz(R)
Ketchup, sauces, soups, beans, pasta and infant foods, Ore-
Ida(R) French Fries and roasted potatoes, Boston Market(R) and
Smart Ones(R) meals and Plasmon(R) baby food.  Heinz's 50
companies have number-one or number-two brands in 200 countries.
In South America, Heinz operates in Mexico, Costa Rica,
Venezuela and Argentina.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 24, 2006, Moody's Investors Service downgraded the long-
term debt ratings of H.J. Heinz Company and its subsidiaries'
senior unsecured debt to Baa2 from Baa1, preferred stock to Ba1
from Baa3 and retained the negative rating outlook.  The Prime-2
short-term rating of H.J. Heinz Company was affirmed.


* COSTA RICA: Okays Gasoline Prices Reduction
---------------------------------------------
Costa Rica's Autoridad Reguladora de los Servicios Publicos has
ratified a reduction in gasoline prices, Inside Costa Rica
reports.

Inside Costa Rica relates that the approval has yet to be
published in La Gaceta, the official government publication,
before it would be implemented.  Publication will be in the next
five days.

Reductions per liter include:

   -- super gasoline by CRC17, bringing the price down to
      CRC579.5 from CRC597, and

   -- regular gasoline by CRC20, bringing the price to CRC552.9
      from CRC573.

According to Inside Costa Rica, it would be the first price
reduction in 2006 after a series of increases.

Meanwhile, gasoline station owners have requested for a CRC9.2
increase in prices.  The hearing for the request will be on
Sept. 18, Inside Costa Rica states.

                        *    *    *

Costa Rica is rated by Moody's:

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

Fitch assigned these ratings to Costa Rica:

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

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

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




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C U B A
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* CUBA: Inks Food Purchase Accord with Navajo Nation Company
------------------------------------------------------------
Alimport, the state food-purchasing agent of Cuba, has signed an
agreement with the Navajo Agricultural Products Industry to
purchase food products from the Navajo Nation, the Associated
Press reports.

Tsosie Lewis, the general manager of Navajo Agricultural, told
AP that products to be sold to Cuba include:

   -- wheat,
   -- apples,
   -- onions, and
   -- pinto beans.

AP relates that Navajo Agricultural can negotiate the sale of
agricultural products directly from US suppliers on a cash-only
basis that Cuba would pay in advance.

According to the report, the products are cultivated on 68,000
acres of land near Farmington.

Prices of the goods would already be set and other details
worked out before they are exported to Cuba, AP states.

                        *    *    *

Moody's assigned these ratings to Cuba:

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


* CUBA: US Offers to Lift Trade Ban If Nation Makes Reforms
-----------------------------------------------------------
The United States has offered to lift the 44-year-old trade
blockade imposed on Cuba if the latter accepts democratic
reforms, BBC News reports.

According to BBC, correspondents said that the offer is nothing
new, but the timing is significant.  The US has been making the
offer for four years now.

The offer was still open if the Cuban government would start a
"political opening," US Assistant Secretary of State Thomas
Shannon told BBC.

BBC relates that it's been three weeks since Cuba's President
Fidel Castro underwent surgery and temporarily handed his power
for Raul Castro, his younger brother.

The George W. Bush administration would discuss the lifting of
the trade ban in return for some governmental reforms with the
Congress, Mr. Shannon told reporters.  Reforms include:

     -- freeing political prisoners,
     -- protecting human rights,
     -- permitting political parties, and
     -- creating a "pathway towards elections."

Raul Castro told BBC that Cuba was willing to consider improved
relations with the US if the Bush administration would not
interfere in Cuba's internal affairs.  However, he also stated
that Cuba remains vigilant and is prepared to face a possible US
invasion of the island.

BBC underscores that Mr. Shanon said that Raul Castro, the
apparent heir of the presidential seat, would exercise the same
"individual authority" as President Castro.

What would emerge would be a "power-sharing arrangement" among
institutions, Mr. Shannon told BBC.

                        *    *    *

Moody's assigned these ratings to Cuba:

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




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


BANCO INTERCONTINENTAL: Court Ruling on Jose Malkun Released
------------------------------------------------------------
Delio German, a National District Judge in the Dominican
Republic, has ruled against a motion from Jose Lois Malkun
-- the former central bank governor -- seeking to reject a
complaint Ramon Baez Figueroa -- the former head of Banco
Intercontinental aka Baninter -- filed against him, Dominican
Today reports.

As reported in the Troubled Company Reporter-Latin America on
Aug. 25, 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."  Mr. Malkun had filed a
challenge against Mr. Figueroa's allegation before the National
District Prosecutor's Office.

Dominican Today relates that Judge German also instructed the
National District Prosecutor to continue the investigation into
Mr. Figueroa's complaint against the former administration of
Hipolito Mejia, who was accused of violating the Monetary and
Financial Law.

According to Dominican Today, Judge German declared that Lois
Malkun's request was "untimely and devoid of reason.

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: Dividend 15 Sees Strong Gain on Company
---------------------------------------------------------
Falconbridge Ltd., which was one of the core 15 holdings in the
Fund, has shown very strong price appreciation of over 181% from
July 2005 (merger with Noranda) to August 22, 2006.  This has
contributed a total of over US$13.0 million in realized capital
gains in the Dividend 15 Split Corp. portfolio that translates
into an increase of US$1.37 to the net asset value per unit over
this time period.  This gain has helped increase the net asset
value attributable to the Class A share to over US$18.29,
excluding distributions.

The Manager, Quadravest Capital Management Inc., has made a
decision to realize capital gains on this holding and has begun
adding Sun Life Financial Inc. as a replacement security.  Sun
Life has a solid track record of earnings performance coupled
with a steadily increasing dividend payout ratio.

Dividend 15 invests in a high quality portfolio of leading
Canadian dividend- yielding stocks as follows:

   -- Bank of Montreal,
   -- Bank of Nova Scotia,
   -- Canadian Imperial Bank of Commerce,
   -- Royal Bank of Canada,
   -- Toronto- Dominion Bank,
   -- National Bank of Canada,
   -- Manulife Financial Corp.,
   -- BCE Inc.,
   -- Enbridge Inc.,
   -- CI Financial Inc.,
   -- Sun Life Financial Inc.,
   -- TELUS Corporation,
   -- The Thomson Corporation,
   -- TransAlta Corporation,
   -- TransCanada Corporation.

Shares held within the portfolio are expected to range between
4-8% in weight but may vary at any time.

Dividend 15 Split Corp. offers two classes of shares and their
investment objectives are:

   Preferred Shares:

      i. to provide holders of the Preferred Shares with fixed,
         cumulative preferential monthly cash dividends in the
         amount of US$0.04375 per Preferred Share to yield 5.25%
         per annum on the original issue price; and

     ii. on or about December 1, 2009 (termination date), to pay
         the holders of the Preferred Shares the original issue
         price of those shares.

   Class A Shares:

      i. to provide holders of the Class A Shares with regular
         monthly cash dividends initially targeted to be US$0.10
         per Class A Share to yield 8.0% per annum on the
         original issue price; and

     ii. on or about December 1, 2009 (termination date), to pay
         the holders of Class A Shares at least the original
         issue price of those shares.

                     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.


FALCONBRIDGE LTD: Responding to Tax Agency Queries on Sale
----------------------------------------------------------
Falconbridge Limited will respond to the Dominican Republic's
Internal Taxes Agency's request for details on the sale of its
85% shares to Xstrata plc, Dominican Today reports.

As reported in the Troubled Company Reporter-Latin America on
Aug. 25, 2006, the tax department had asked Falconbridge
to register its sale to Xstrata.  However, Falconbridge failed
to register the sale with the tax department.  Falconbridge sold
most of its outstanding stock to Xstrata for US$20 billion,
through the Toronto Exchange.  The Tax Department might fine
Falconbridge for not registering the sale.

Luis Rosado, the communications director of the Dominican unit
of Falconbridge, told Dominican Today that his company will set
its position on the subject, with the arrival of its executives
from Toronto, Canada, where they participated in the closing of
the US$20 billion sale of Falconbridge to Xstrata.

Dominican Today relates would possibly schedule a press
conference to disclose the details of the transaction.

The Tax agency told Dominican Today that it needs information on
the sale to analyze the transaction's tax impact.

Meanwhile, a Falconbridge official told Dominican Today that
taxes for the sale did not have to be paid, as it was made
through the Canadian Stock Market, Dominican Today 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 L   S A L V A D O R
=====================


BANCO AGRICOLA: Posts US$25.8 Million First Half 2006 Profits
-------------------------------------------------------------
Banco Agricola SA told El Salvador's stock exchange that its
consolidated net profits in the first half of 2006 increased 42%
to US$25.8 million, compared with the first half of 2005,
Business News Americas reports.

Banco Agricola posted these results for the first half of 2006:

    -- net interest income rose 16% to US$70.3 million;
    -- operating costs dropped 5% to US$37.9 million;
    -- net loans grew 16% to US$2.09 billion;
    -- deposits increased 13% at US$2.69 billion;
    -- assets rose 4% to US$3.06 billion; and
    -- liabilities grew 3% to US$2.74 billion.

BNamericas relates that Banco Agricola ended the first half of
2006 as the largest bank in El Salvador, having an assets market
of 28%.  The bank has US$22.4 million in investments in US firm
Refco, who filed for bankruptcy protection.  Banco Agricola's
funds in the firm are frozen.

"The more likely scenario is that the bank will have to assume
losses for its investments in Refco.  Even though US$22 million
represents 7% of the bank's equity, Agricola has put aside only
20% of the US$22mn to face the eventual losses, which is quite
the opposite of prudent banking practices," BNamericas states,
citing an international credit risk analyst.

Fitch Ratings assigned these ratings to Banco Agricola SA:

   -- long-term credit issuer default rating: BB;
   -- short-term credit rating: B;
   -- local currency long-term credit rating: BBB;
   -- local currency short-term credit rating: F3;
   -- national long-term credit rating: AA-; and
   -- national short-term credit rating: F1.


BANCO AMERICANO: Will Assume Banco G&T Continental Name
-------------------------------------------------------
Banco G&T Continental -- the major shareholder of Banco
Americano, SA -- will rename the latter Banco G&T Continental,
Business News Americas reports, citing an official from El
Salvador's banking regulator.

The official told BNamericas that Banco G&T has asked permission
from the banking regulator.

Banco G&T acquired 94.76% of Banco Americano on June 28, 2006,
according to BNamericas.  The amount paid for the acquisition
was not disclosed.

The official told BNamericas that 72 investors and individuals
own the remaining 6.24% stake in Banco Americano.

Banco Americano reported US$30.5 million in assets and US$18.7
million in liabilities as of June 30, 2006, BNamericas states.

Fitch Ratings assigned B national long-term credit rating on
Banco Americano.


PAYLESS SHOESOURCE: Earnings Per Share Up 66% in Second Quarter
---------------------------------------------------------------
Payless ShoeSource, Inc., reported that for the second quarter
of fiscal 2006, which ended July 29, 2006, diluted earnings per
share increased to US$0.48 from US$0.29 during the second
quarter of fiscal 2005.  The Company recorded net earnings of
US$32.5 million during the second quarter 2006 compared with
US$19.9 million during the second quarter 2005.

Second quarter and year-to-date results include expenses
relating to the Company's adoption of SFAS 123(R), "Share Based
Payment," effective at the beginning of fiscal 2006.  The
incremental impact of SFAS 123(R) on net earnings for the second
quarter 2006 was approximately US$2 million pre-tax, or
(US$0.02) per diluted share.  For the first six months of fiscal
2006, the incremental impact of SFAS 123(R) was approximately
US$4 million pre-tax, or (US$0.04) per diluted share.  The
Company currently estimates that the incremental impact of SFAS
123(R) on full year results for fiscal 2006 will be
approximately US$8 million pre-tax, or (US$0.08) per diluted
share.

During the first six months of 2006, net earnings were US$68.5
million and diluted earnings per share were US$1.01.  This
compares with net earnings of US$50.1 million and diluted
earnings per share of US$0.74, in the first six months of 2005,
a 36 percent increase in diluted earnings per share year-to-
date.

Same-store sales increased 2.2 percent during the second quarter
2006.  Company sales during the second quarter 2006 totaled
US$706.4 million, a 1.8% increase from US$693.9 million during
the second quarter 2005.  Average unit retail for footwear
increased by 12.3%, and footwear unit sales decreased by 8.3%
relative to the same period last year.

Sales during the first six months of 2006 totaled US$1.40
billion, a 0.9% increase over the first six months of 2005.
During the first six months of 2006, same-store sales increased
1.3%.

Gross margin was 34.5 percent of sales in the second quarter
2006 versus 33.9% in the second quarter 2005.  Merchandise
margin improved 1.5% as a percent of sales, compared to second
quarter 2005, driven primarily by favorable initial mark-on
relative to last year, but partially offset by increases in
markdowns in the quarter.  The improvement in merchandise margin
was also partially offset by increases in occupancy costs
compared to last year.  Gross margin as a percent of sales was
also benefited 0.3% by a gain from insurance recoveries due to
hurricanes.  During the first six months of 2006, gross margin
was 35.7% of sales versus 34.5 percent in the first six months
of 2005.

Selling, general and administrative expenses were 27.5% of sales
in the second quarter 2006 versus 29.0 percent in the second
quarter 2005.  The decrease was driven primarily by the US$7.9
million in management transition costs incurred last year, or
1.1 percent of sales in 2005, and the receipt of Visa
Check/Mastermoney Antitrust settlement proceeds of US$2.3
million, or 0.3 percent of sales in 2006, partially offset by
increased advertising expenses during the second quarter. During
the first six months of 2006, selling, general and
administrative expenses were 28.1 percent of sales versus 28.6%
in the first six months of 2005.

The Company's effective income tax rate was 34.7% during the
second quarter 2006.  For the full fiscal year 2006, the
effective income tax rate is expected to be approximately 35
percent, excluding discrete events.

"We are pleased with our earnings growth in the second quarter,"
said Matthew E. Rubel, Chief Executive Officer and President of
Payless ShoeSource, Inc. "The combination of low single digit
same-store sales growth, gross margin expansion and prudent
expense control demonstrates that these factors working in
concert can drive earnings improvements in the future.  Our new
product, store format and service initiatives are resonating
with our consumer."

The Company is committed to refining its international business
strategy, and is very pleased with its growth and operating
performance in Latin America.  In order to focus on additional
opportunities for expansion in this region, the Company will
exit retail operations in Japan, closing its one test location.
The exit of operations is planned to be substantially completed
by the end of the third quarter of 2006.  Total exit costs are
estimated to be between US$2 and US$3 million, with virtually
all costs incurred in the third quarter of 2006. Results of
Japan retail operations for all periods will be reported as
discontinued operations beginning with the third quarter of
2006.

The Company ended the second quarter 2006 with cash, cash
equivalents and short-term investments of US$443 million, an
increase of US$5 million over the cash, cash equivalents and
short-term investment balance as of the end of fiscal 2005.

Total inventories at the end of the second quarter 2006 were
US$351 million, compared to US$362 million at the end of second
quarter 2005. Inventory per store at the end of the second
quarter decreased by 2.2 percent compared to the same period
last year. The Company's inventory is well positioned, with a
low level of aged merchandise.

                     Capital Expenditures

Cash used for capital expenditures was US$29.8 million during
the second quarter 2006.  During fiscal year 2006, Payless
expects capital expenditures to be approximately US$120 million.

                        Store Count

In the second quarter 2006, the Company opened 10 new stores and
closed 28, for a net decrease of 18 stores.  The Company also
relocated 28 stores.  The store count as of the end of the
second quarter 2006 was 4,584. During fiscal year 2006, the
Company intends to open approximately 70 new stores and close
approximately 70, for no change in store count.  The Company
also intends to relocate approximately 120 stores.

                    Share Repurchase

The Company's capital allocation strategy is designed to fund
both the necessary investments to improve the business and, when
cash reserves are adequate, to use free cash flow to return more
immediate value to shareowners.

During the second quarter of 2006, the Company repurchased US$30
million, or approximately 1.2 million shares of common stock
under its stock repurchase program.  Under the indenture
governing the Company's 8.25% Senior Subordinated Notes, the
Company may repurchase approximately an additional US$36 million
of common stock. This limit will continue to adjust quarterly
based on the Company's net earnings.

                      Fiscal 2006 Outlook

Payless ShoeSource remains committed to its long-standing goal
to achieve low single-digit positive same-store sales on a
consistent basis, through successful execution of its
merchandising strategies. The Company does not provide guidance
for sales, earnings or margins. However, the Company's business
model and strategy is designed to leverage its sales
performance, and the goal is to achieve earnings per share
growth in the mid-teens over time.

Additional financial metrics for fiscal 2006 are expected to
include:

   -- Depreciation and amortization of approximately US$90 to
      US$95 million;

   -- Cash used for capital expenditures are planned at US$120
      million; and

   -- Working capital should be approximately neutral, subject
      to normal seasonal fluctuations.


Headquartered in Topeka, Kansas, Payless ShoeSource, Inc., --
http://www.payless.com/-- is a family footwear specialty
retailer with 4,605 retail stores, as of fiscal yearend January
28, 2006 (fiscal 2005), including 22 stores not open for
operations. The Company's Payless ShoeSource retail stores in
the United States, Canada, the Caribbean, Central America, South
America and Japan sold 182 million pairs of footwear, in fiscal
2005. The Company operates its business in two segments --
Payless Domestic and Payless International. The Payless Domestic
segment includes retail operations in the United States, Guam
and Saipan. The Payless International segment includes retail
operations in Canada; Puerto Rico; the United States Virgin
Islands; Japan; the South American Region, which includes
Ecuador, and the Central American Region, which includes Costa
Rica, Guatemala, El Salvador, the Dominican Republic, Honduras,
Nicaragua, Panama and Trinidad and Tobago.

                         *     *     *

As reported in the Troubled Company Reporter on Jan. 19, 2006,
Moody's Investors Service affirmed the ratings of Payless
ShoeSource, Inc. (corporate family rating of Ba3) and changed
the outlook to stable from negative.  The change in outlook was
prompted by the company's success in executing the restructuring
plan announced in August 2004, which has resulted in improved
operating performance and credit metrics.




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


* GUATEMALA: Pres. Berger Receives Mining Law Reform Proposal
-------------------------------------------------------------
Guatemala's President Oscar Berger has received a proposal to
reform the nation's mining laws, Business News Americas reports.

BNamericas relates that the proposal came from a committee
composed of:

     -- government officials,
     -- representatives of the Catholic church,
     -- environmentalists,
     -- academics, and
     -- mining companies.

Jorge Garcia, the deputy minister of energy and mines, told
BNamericas, "The reform has numerous points -- it is proposing
modification of nearly 80 out of the 97 articles of the law."

According to BNamericas, the proposal that was submitted on
Aug. 21 emphasizes environmental issues and obliges firms to pay
deposits to the government to guarantee funding for mine
closures.

"I think this will provide some sort of guarantee to the
country, to be able to count on funds to finish mitigation and
remediation measures that the companies may not take care of,"
Minister Garcia told BNamericas.

BNamericas notes that the committee also proposed an increase of
royalty payments for base metals like copper, nickel and zinc
that Minister Garcia said would be up to 2%.

In precious metals like gold and platinum, it was proposed that
royalty payments be 3% higher than at present.  Meanwhile,
royalty payments on non-metallic minerals would remain at 1%.

The proposal seeks to have mining firms pay income tax,
BNamericas says, citing Minister Garcia.

"That is exactly where project profits are shared between the
country and the company," Minister Garcia told BNamericas.

BNamericas underscores that the committee also proposed
consultations between the government and the communities near
mining projects, creating a negotiation process before breaking
ground to reach accords on development plans.

The committee hopes President Berger will pass the proposal to
congress for ratification, BNamericas reports.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

Fitch also rated Guatemala's senior unsecured bonds:

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




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


* HONDURAS: Launching Fuel Purchase & Construction Contract
-----------------------------------------------------------
The government of Honduras told Prensa Latina that it will begin
an international contract by the end of August to purchase fuels
and construct a supply station.

Prensa Latina reports that Honduras' President Manuel Zelaya
hired expert Robert Meyeringh to elaborate the foundations of
the contract.

According to Prensa Latina, Mr. Meyeringh, said that the Mexican
Petroleos Mexicanos oil company will participate in the sale.

Prensa Latina notes that the sale process will take up to five
days to elaborate its foundations.  Firms will then be given 15
days to submit offers.

Fuels to be purchased include:

     -- motor gasolines:

        * super gasoline,
        * regular gasoline,
        * diesel;

     -- kerosene;

     -- bunker;

     -- liquefied petroleum gas; and

     -- turbosine for planes.

The report says that the fuel station could be located at Puerto
Castilla, in Caribbean Colon department.  It will be used to
import and satisfy a demand, which is 14 million barrels yearly.

Prensa Latina underscores that the initiative seeks to ease the
problem caused by high fuel prices.

However, Esso, Shell, and Texaco oil firms declined the
invitation to participate, causing delay, Prensa Latina states.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

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


* HONDURAS: State Firm Awards Upgrade Contract with Telrad
----------------------------------------------------------
Hondutel, the state-owned telecommunications firm of Honduras,
has awarded Telrad -- a unit of the Koor Industries group -- to
upgrade the firm's digital telephony systems, Globes Online
reports.

Telrad told Globes Online that it has beaten bids from ECI
Telecom and Alcatel in a US$4 million tender the United Nations
Development Program conducted.

                        *    *    *

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: Reaches New Wage Accord with Union
-----------------------------------------------
Air Jamaica's management has reached a new wage deal with the
National Workers Union or NWU, who represented almost 800
airline employees, Radio Jamaica reports.

Radio Jamaica relates that the wage agreement was created during
a meeting that ended just after 2:00 a.m. on Thursdayl

As reported in the Troubled Company Reporter-Latin America on
Aug. 25, 2006, the NWU gave Air Jamaica's management until
Wednesday evening to come up with a new wage package or face
industrial action.  The union had warned on Tuesday that it
could not guarantee normality of Air Jamaica's operations after
Wednesday.  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.

Granville Valentine, the Deputy Island Supervisor for NWU, told
Radio Jamaica that the new wage agreement was satisfactory.

                        *    *    *

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
===========


BALLY TOTAL: James McAnally Resigns from Board of Directors
-----------------------------------------------------------
Bally Total Fitness Holding Corp. disclosed that James F.
McAnally, M.D. has resigned from the Board of Directors.  Dr.
McAnally has served on the Board of Directors since the Company
first became publicly traded in 1996.  Dr. McAnally's medical
perspective brought insights to the board as society faces the
growing threat of obesity and begins to understand the benefits
of fitness and nutrition. He was instrumental in helping Bally
branch out into new areas and stay current with medical trends.

"I wish the Board and management great success in the challenges
that lie ahead," stated James F. McAnally, M.D.  "I would also
like to express my appreciation to our first chairman, Arthur M.
Goldberg, for the opportunity to serve our shareholders."

"We thank Dr. McAnally for his more than 10 years of leadership
and service to Bally Total Fitness and appreciate his hard work
and dedication to the Company during that time," said Don R.
Kornstein, Interim Chairman, Bally Total Fitness.

Bally Total Fitness Holding Corp.
-- http://www.Ballyfitness.com/-- is the largest and only
nationwide commercial operator of fitness centers, with over 400
facilities located in 29 states, Mexico, Canada, Korea, the
Caribbean, and China under the Bally Total Fitness, Bally Sports
Clubs and Sports Clubs of Canada brands.  Bally offers a unique
platform for distribution of a wide range of products and
services targeted to active, fitness-conscious adult consumers.

                        *    *    *

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Total Fitness Holding Corp., including the 'CCC' corporate
credit rating, on CreditWatch with developing implications,
where they were placed on Dec. 2, 2005.


COMVERSE TECHNOLOGY: Granted Continued Listing By NASDAQ Panel
--------------------------------------------------------------
The NASDAQ Listing Qualifications Panel has granted Comverse
Technology, Inc.'s request for continued listing on the NASDAQ
National Market.  The Panel granted the company's request for
continued listing subject to the requirement that the company
file its Annual Report on Form 10-K for the fiscal year ended
Jan. 31, 2006, and its Quarterly Report on Form 10-Q for the
fiscal quarter ended April 30, 2006, by no later than
Sept. 25, 2006.  The Panel has advised the company that should
it be unable to meet the deadline, it will issue a final
determination to delist the company's shares from The NASDAQ
Stock Market.

Headquartered in Woodbury, New York, Comverse Technology, Inc.
(NASDAQ: CMVT) -- http://www.comverse.com/-- provides software
and systems that enable network-based multimedia enhanced
communication and billing services.  Over 450 communication and
content service providers in more than 120 countries use
Comverse products to generate revenues, strengthen customer
loyalty and improve operational efficiency.  In Latin America,
Comverse has operations in Argentina, Brazil and Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on May 4, 2006,
Standard & Poor's Ratings Services held its ratings on Comverse
Technology Inc. on CreditWatch with negative implications, where
they were placed on March 15, 2006, on the disclosure that the
board of directors at Comverse had created a special committee
to review matters relating to the company's stock option grants
and the likely need to restate prior-period financial results.

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's placed its corporate credit and senior
unsecured debt ratings on Comverse Technology on CreditWatch
with negative implications.  The company has S&P's 'BB-'
corporate credit and senior unsecured debt ratings.


GLOBAL CROSSING: Mexican Customer Base Grew 64%
-----------------------------------------------
Global Crossing disclosed that the number of its enterprise and
carrier customers increased 64% year over year in the second
quarter of 2006 due to the accelerated adoption of its services
in the "invest and grow" segment, which provides IP services to
enterprises via direct and indirect distribution channels.

Global Crossing, which began operations in Mexico in October
2000, has ramped up its service offerings to enterprises in the
local market and as a result, the number of enterprise customers
in Mexico increased by 50 percent in the second quarter of 2006
compared to the previous year. Global Crossing's state-of-the-
art Internet Protocol solutions also have been key to the
company's success in Mexico.  Overall IP traffic more than
doubled in the country during the same time period, outpacing
the company's global IP growth.

"As one of Latin America's most dynamic economies, Mexico is a
strategic market for Global Crossing," said Jose Antonio Rˇos,
international president and CAO of Global Crossing.  "Seeing
this type of growth in our customer base further reinforces our
reputation as an IP solutions provider of choice for both
enterprises and the carriers in all of the markets we serve.  We
look forward to working and growing together with national and
multinational firms as they expand into the Mexican market."

Global Crossing also has seen remarkable Internet growth in
Mexico -- the number of customers with Internet services
increased by 144 percent during the 12-month period ending June
2006.  In addition, the number of enterprise and carrier
customers who use IP and data services delivered over Global
Crossing's private network - services such as Multiprotocol
Label Switching (MPLS)-based IP VPNs and legacy services like
Frame Relay and ATM -- has doubled. As a leading enabler of IP
convergence - that is the combination of voice, video and data
over a single connection and a secure network -- Global Crossing
supports fully interoperable legacy and IP-based services,
offering customers the ability to transition to IP at their own
pace.

"Global Crossing has been a valuable strategic partner," said
Kent Brailovsky, director of the Computer Center for Instituto
Tecnologico Autonomo de Mexico or ITAM.  "They have provided the
flexibility and high-quality solutions that meet the exacting
performance and reliability we require.  As a result, our
productivity has increased, and our global connectivity has been
simplified, enabling us to collaborate with international
research and academic institutions. We look forward to Global
Crossing's continued support as we strengthen our position as
one of the leading universities in Mexico."

"In only six years, Global Crossing has established a
significant foothold among key enterprise and carrier customers
in Mexico, including nine of the 10 major carriers in the
country," added Adrian Gonzalez, managing director of Global
Crossing in Mexico.  "The demand we've seen for Global
Crossing's IP solutions among leading companies in Mexico has
been exceptional, and our global IP platform enables us to
continue to respond to its ever-accelerating demand.  We will
continue to serve our customers with the best solutions,
services and networking in the marketplace."

Global Crossing's Mexican operations are headquartered in Mexico
City, with a terrestrial network connecting Mexico City,
Monterrey, Guadalajara and Mazatlan.  Through its subsea system,
Global Crossing connects facilities in Tijuana and the rest of
its global network, delivering services to 600 cities in 60
countries on six continents. The Federal Telecommunications
Commission or Cofetel granted Global Crossing its
telecommunications license in October 2000, allowing the company
to connect Mexico with the major cities of the world.  In Latin
America and the Caribbean, the company's presence extends to 12
of the region's major cities, seamlessly connecting South
America, Mexico, Central America and the Caribbean to the rest
of its global network.

With its regional network officially completed in 2001, Global
Crossing now serves virtually all of Latin America's major
carriers, as well as many prestigious Latin American companies,
including Odebrecht, Brazil's largest multinational construction
company; Arcor, the world's largest confectionary; Mexicana de
Aviacion and Banco Santander.  Global Crossing continues to make
important investments in its IP network to meet the increasing
demand of customers around the world, including new landing
point in Costa Rica and a recent upgrade of the Mid-Atlantic
Crossing (MAC) to add wavelengths on this undersea link
connecting the company's North and South America networks.

Headquartered in Florham Park, New Jersey, Global Crossing
Ltd. -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, Chile, Mexico, Panama, Peru and Venezuela.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services.  The company filed for chapter 11 protection on
Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188).  When the
Debtors filed for protection from their creditors, they listed
US$25,511,000,000 in total assets and US$15,467,000,000 in total
debts.  Global Crossing emerged from chapter 11 on Dec. 9, 2003.

As of Dec. 31, 2005, Global Crossing's balance sheet reflected a
US$173 million equity deficit compared to US$51 million of
positive equity at Dec. 31, 2004.


GRUPO IUSACELL: Inks Contract as First Client of Openet
-------------------------------------------------------
Apolo Guy, Openet Telecom's sales vice president for the
Americas, told Business News Americas that Grupo Iusacell has
entered a contract with Openet as the latter's first customer.

BNamericas reports that the term operations support system
generally refers to the system or systems that perform:

   -- management,
   -- inventory,
   -- engineering,
   -- planning, and
   -- repair functions for communications service providers and
      their networks.

According to BNamericas, Mr. Guy said that Openet expects to end
the year with another two wireless customers in Latin America.

Openet's revenues for this year is expected to be at least US$1
million, BNamericas says.  Mr. Guy preferred to be conservative
about 2007, aiming for up to four operators.

                       About Openet

Openet Telecom develops software for telecommunications service
providers.  The company's products are used to enable, manage,
and bill for a variety of communications services.  Openet also
offers professional services including consulting,
implementation, performance tuning, network upgrades, and
support.  The company serves such customers as Cingular
Wireless, Credit Suisse First Boston, Orange, Telecom Italia
Mobile, and Verizon Wireless.  The company is backed by
Benchmark Capital, Orange, and SAIC.

                    About Grupo Iusacell

Headquartered in Mexico City, Mexico, Grupo Iusacell, S.A. de
C.V. (BMV: CEL) -- http://www.iusacell.com-- is a wireless
cellular and PCS service provider in Mexico with a national
footprint.  Independent of the negotiations towards the
restructuring of its debt, Grupo Iusacell reinforces its
commitment with customers, employees and suppliers and
guarantees the highest quality standards in its daily operations
offering more and better voice communication and data services
through state-of-the-art technology, including its new 3G
network, throughout all of the regions in which it operate.

As of Dec. 31, 2005, Grupo Iusacell's stockholders' deficit
widened to MXN2,076,000,000 from a deficit of MXN1,187,000,000
at Dec. 31, 2004.

Grupo Iusacell filed for bankruptcy protection on June 18 under
Mexican Law to prevent creditors from disrupting its debt
restructuring talks.  On July 14, 2006, Gramercy Emerging
Markets Fund, Pallmall LLC and Kapali LLC, owed an aggregate
amount of US$55,878,000 filed an Involuntary Chapter 11 Case
against Grupo Iusacell's operating subsidiary, Grupo Iusacell
Celular, S.A. de C.V. (Bankr. S.D.N.Y. Case No. 06-11599).  Alan
M. Field, Esq., at Manatt, Phelps & Phillips, LLP, represents
the petitioners.

Iusacell Celular then filed for bankruptcy protection under
Mexican Law on July 18.


NORTEL NETWORKS: Unit Inks New US$1.6M Court Records System Pact
----------------------------------------------------------------
Nortel Government Solutions will continue development and
operational support of a sophisticated records system for the
Fairfax County, Virginia Circuit Court under a five-year
agreement valued at US$1.6 million.

First implemented in 1996, the Fairfax County Courts Automated
Recording System provides more than 1,400 users each day with
automated access to more than 31 million recorded images and
corresponding indexes dating back to 1742.

CARS was initially designed for the Land Records department, but
later enhanced with the help of Nortel Government Solutions to
include the Judgments, Public Services and Probate Departments.
The system is now used by banks, title examiners, law offices,
mortgage companies and county agencies.

Nortel Government Solutions developed and implemented the
integrated scanning, point-of-sale, verification, storage and
retrieval capabilities that enable CARS to capture images and
index data.  The system has been maintained and enhanced by
Nortel Government Solutions for the past 10 years.

"CARS has been a big success for Fairfax County," Chuck Saffell,
chief executive officer, Nortel Government Solutions, said.
"This new agreement is a testament to our performance in
maintaining and enhancing the system for the past 10 years, and
a vote of confidence in our ability to evolve and improve it
with new technology over the next five years."

               About Nortel Government Solutions

Headquartered in Fairfax, Virginia, Nortel Government Solutions
-- http://www.nortelgov.com-- is a U.S. company wholly-owned by
Nortel(x).  It offers a one-stop shop for solutions designed to
improve workforce productivity, reduce operating costs, and
streamline inter-agency communications.  Nortel Government
Solutions is a network-centric integrator.

                     About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corp.
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.
Nortel does business in more than 150 countries including Mexico
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.


ODYSSEY RE: Declares Dividends for Common & Preferred Stock
-----------------------------------------------------------
Odyssey Re Holdings Corp. declared a quarterly cash dividend of
US$0.03125 per common share, payable on Sept. 29, 2006 to
shareholders of record at the close of business on
Sept. 15, 2006.

In addition, the Board of Directors declared a cash dividend of
US$0.5078125 per share on Odyssey Re's 8.125% non-cumulative
Series A preferred shares and US$0.546875 per share on
OdysseyRe's floating rate non-cumulative Series B preferred
shares.  The dividends will be payable on Oct. 20, 2006 to
Series A and Series B preferred shareholders of record at the
close of business on Sept. 30, 2006.

Odyssey Re Holdings Corp. is an underwriter of property and
casualty treaty and facultative reinsurance, as well as
specialty insurance.  OdysseyRe operates through its
subsidiaries, Odyssey America Reinsurance Corporation, Hudson
Insurance Company, Hudson Specialty Insurance Company,
Clearwater Insurance Company, Newline Underwriting Management
Limited and Newline Insurance Company Limited.  The Company
underwrites through offices in the United States, London, Paris,
Singapore, Toronto and Mexico City.  Odyssey Re Holdings Corp.
is listed on the New York Stock Exchange under the symbol ORH.

                        *    *    *

Odyssey Re Holdings Corp.'s preferred stock rating carries Ba2
from Moody's and BB from Fitch.  The Company's senior unsecured
debt and long-term issuer default ratings also carry BB+ from
Fitch.  Moody's placed its rating on Oct. 12, 2005 with a stable
outlook.  Fitch placed its ratings on March 23, 2006.


SATELITES MEXICANOS: Judge Drain Enters Order Enforcing Stay
------------------------------------------------------------
The Honorable Robert D. Drain, of the U.S. Bankruptcy Court for
the Southern District of New York, upon the request of Satelites
Mexicanos, S.A. de C.V., entered an order enforcing and
restating the automatic stay and ipso facto provisions of the
Bankruptcy Code.

The Debtor is organized and operates in Mexico and has many
creditors and counterparties to contracts that may not be well-
versed in the restrictions of the United States Bankruptcy Code,
Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in
New York, relates.

According to Mr. Despins, various interested parties may attempt
to seize assets located outside of the United States to the
detriment of the Debtor, its estate and creditors, or take other
actions in contravention of the automatic stay under Section 362
of the Bankruptcy Code.

Upon learning of the Debtor's bankruptcy, counterparties to the
Debtor's leases and executory contracts may attempt to terminate
those leases or contracts pursuant to ipso facto provisions
contained therein in contravention of Section 365 of the
Bankruptcy Code, Mr. Despins adds.

Mr. Despins explains that, notwithstanding the fundamental
nature of the automatic stay and ipso facto protections, and the
fact that they arise as a matter of law upon the commencement of
a Chapter 11 case, not all parties are aware of those Bankruptcy
Code provisions.  Nor are all parties cognizant of their
significance and impact.

Furthermore, as the Chapter 11 Plan provides for payment in full
of the claims of all of the Debtor's creditors, other than
holders of Senior Secured Notes and Existing Bonds, the granting
of the Debtor's request will prevent unfair and obstructionist
practices by creditors who are going to receive full payment of
their claims under the Chapter 11 Plan, Mr. Despins maintains.

                 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: Valor Okayed as Interim Financial Advisors
---------------------------------------------------------------
Satelites Mexicanos, S.A. de C.V., obtained authority, from the
U.S. Bankruptcy Court for the Southern District of New York, to
employ Valor Consultores S.A. de C.V., as interim financial
advisors.

Carmen Ochoa Avendano, Esq., general counsel of the Debtor,
tells the Court that the restructuring of the Debtor's
liabilities will require intensive participation of various
advisors.  In this regard, the Debtor has tapped Valor, as its
financial advisors, to work in tandem with UBS Securities LLC
and any other financial advisor it will retain.

Valor provides advisory services to companies in Mexico in the
areas of corporate finance, mergers and acquisitions and
financial restructurings.  Ms. Avendano relates that Valor is
intimately familiar with the Debtor's business and financial
affairs and thus is well qualified to provide financial advisory
services.  Valor, she continues, has been assisting the Debtor
in its restructuring efforts since Sept. 2005, 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.

Ms. Avendano also notes that Valor's Managing Partner, J. Sandor
Valner, who will be primarily responsible for the services
provided to the Debtor, ran Credit Suisse's Mexican operations
before joining Valor.  Mr. Valner has provided financial
advisory services in Mexico for more than 15 years and has led
initial public offerings, debt offerings, acquisitions,
divestitures, and restructurings with an aggregate value of more
than US$15 billion.

Pursuant to the parties' engagement letter, Valor will:

    (a) advise and assist the Debtor in analyzing, structuring,
        negotiating and implementing the financial aspects of
        any restructuring of the Debtor and its affiliates'
        liabilities, including 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 those
        liabilities;

    (b) advise and assist the Debtor with respect to a sale,
        merger, consolidation or liquidation of the Debtor's
        assets, including assisting the Debtor in analyzing,
        structuring, negotiating, and implementing the financial
        aspects of a Sale Transaction; and

    (c) provide other assistance and services.

All services to be provided by Valor will not be duplicative of
the services provided by UBS, Ms. Avendano assures the Court.

Valor will bill the Debtor:

     -- a US$60,000 monthly financial advisory fee;

     -- a US$500,000 Restructuring Transaction Fee, which will
        become due when a Restructuring Transaction becomes
        binding on the creditors affected thereby and payable on
        the date of the closing of the Restructuring
        Transaction; and

     -- a Sales Transaction Fee equal to 0.40% of the
        Transaction Value, payable at the closing of a Sale
        Transaction.

The Debtor will also reimburse Valor for all of its reasonable
and documented expenses, provided that Valor obtains the
Debtor's prior written consent before incurring any single
expense in excess of US$10,000.

Ms. Avendano discloses that as of the date of filing for chapter
11 protection, the Debtor had paid 11 Monthly Advisory Fees
totaling US$660,000 to Valor.  Of this amount, US$330,000, as
well as 50% of any Monthly Advisory Fees paid after the Petition
Date, will be credited against the first to occur of the
Restructuring Transaction Fee or the Sale Transaction Fee.

The Debtor will indemnify Valor and its related parties from any
liabilities and expenses in connection with the engagement,
except to the extent that it will be determined by a court of
competent jurisdiction in a final non-appealable judgment that
those liabilities resulted from the gross negligence or willful
misconduct of the indemnified parties.

Mr. Valner reports that, according to his firm's books and
records, for the year prior to the Petition Date, Valor received
US$660,000 from the Debtor for services performed and expenses
incurred, plus US$99,000 for applicable value-added taxes.

Mr. Valner assures the Court that Valor does not hold or
represent any other entity having an adverse interest in
connection with the Debtor's case.  Valor, he attests, 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).


VOLKWAGEN: Revises Offer to Mexican Workers, Ending Strike
----------------------------------------------------------
A five-day strike at Volkswagen AG's Mexican plant ended after
the European carmaker agreed to an improved wage and benefits
offer for its workers.

About 9,600 unionized workers at the company's assembly plant in
Puebla went on strike August 18 after rejecting a 4% wage
increase and a 0.5% increase in food coupons.  The workers
wanted an 8.5% wage increase.

The two parties reached an agreement last week for a 4% direct
wage increase and a 1.5% in additional benefits in the form of
groceries vouchers.

The Associated Press said work at Volkswagen's plant resumed
late Wednesday.  The plant makes about 1,400 cars daily.

Headquartered in Wolfsburg, Germany, the Volkswagen Group
-- http://www.volkswagen.de/-- is one of the world's leading
automobile manufacturers and the largest carmaker in Europe.
With 47 production plants in eleven European countries and a
further seven countries in the Americas, Asia and Africa,
Volkswagen has more than 343,000 employees producing over 21,500
vehicles or are involved in vehicle-related services on every
working day.

                        *    *    *

Volkswagen has been carrying out measures to cut costs and raise
profits, which could affect up to 30,000 jobs.  The potential
job cuts represent about a third of the carmaker's workforce and
three times higher than initial estimates made by Chief
Executive Bernd Pischetsrieder and Volkswagen brand head,
Wolfgang Bernhard.

In November 2005, Volkswagen maintained its 2005 earnings
guidance amid rumors it may lower targets.  The company predicts
a year-on-year improvement in both operating profit after
special items and profit before tax this year.  Rumors flew that
the company would slash full-year earnings forecast due to
higher restructuring costs.  The company said the impact of its
workforce reduction measures, which will be charged as special
items in the fourth quarter, will be lower than last year's.

The company also admitted there were no significant improvements
in the economic environment in the first nine months of 2005,
and the overall situation in the important automotive markets
remained difficult.  It also expected tougher competition in the
Chinese and U.S. markets, and the rise in fuel prices to
influence consumer confidence.


* MEXICO: Receives First Delivery of Liquefied NatGas from Shell
----------------------------------------------------------------
The Wall Street Journal reports that Mexico received its first
shipment of liquefied natural gas, marking the commissioning
phase of the nation's first LNG regasification plant.

The shipment from Royal Dutch Shell Plc's Bonny liquefaction
plant in Nigeria was sent to the Altamira terminal on Mexico's
northeastern coast.  Shell holds a 50% stake in the terminal,
and Total SA and Mitsui & Co each have 25% shares, the Journal
says.

The same report says that Mexico's power authority, Comision
Federal de Electricidad, is under contract to purchase 5.2
billion cubic meters, or 3.9 million tons, of regasified LNG
annually from Altimira. Commercial deliveries to the power
agency are expected to begin in October.

                        *    *    *

As reported in the Troubled Company Reporter on April 17, 2006,
Standard & Poor's Ratings Services placed an mxBB+ long-term
rating with stable outlook on the state of Mexico.




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


* NICARAGUA: National Assembly Holds Meeting on Energy Crisis
-------------------------------------------------------------
The National Assembly of Nicaragua held a meeting to resolve the
severe domestic energy deficit in the country, Prensa Latina
reports.

Prensa Latina relates that most of the members of the congress
were against President Enrique Bolanos' proposal to cover the
US$9.6 million debt of Union Fenosa, a Spanish electricity
company, which was the primary cause of the deficit.

The report says that the FSLN or Sandinista National Liberation
Front said that the payment is a blunder, as Nicaraguans will
have to "redress later".

The FSLN called to work on alternative energy sources and raise
taxes of oil firms, Prensa Latina states.

                        *    *    *

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


* NICARAGUA: World Bank Grants US$17M to Boost Private Sector
------------------------------------------------------------
The World Bank's Board of Directors approved a US$17 million,
zero-interest credit to Nicaragua to strengthen the institutions
involved in improving the competitiveness of the private sector
(including small and medium sized enterprises) to meet the
opportunities and challenges presented by the DR-CAFTA Free
Trade Agreement.

"With DR-CAFTA in place, it is essential to support the
institutions that will help the private sector grow, modernize
and become more productive as a way to increase investment and
exports," said Jane Armitage, World Bank Director for Central
America. "This project will help contribute to better living
standards by increasing rural productivity, adding value to
agricultural products and diversifying the export base."

The Enhanced Competitiveness for International Market
Integration Project seeks to strengthen the capacity of the
Presidential Commission of Competitiveness to provide technical
leadership and coordinate the efforts of government agencies,
municipalities, the private sector, civil society and donors in
the field of competitiveness.

In particular, the project will support the following
activities:

   -- Improve business climate by removing administrative and
      regulatory obstacles to enable firms to register, pay
      taxes, register assets, export and import goods, and
      obtain permits more rapidly and efficiently.  The
      initiatives will include both Managua and secondary
      cities.

   -- Provide critical services to firms to enable them to
      become more competitive in national and international
      markets.  This component will improve the efficiency of
      selected firms and value chains, improve the performance
      of selected firms through matching grants to help them
      raise quality and obtain certification, and improve
      firms' access to market information, including regional
      and international benchmarking.

   -- Strengthen the financial sector systems and diversify the
      products offered to the private sector.  This component
      will strengthen the ability of the Superintendency of
      Banks and Other Financial Institutions to supervise
      financial institutions and ensure that their practices
      and systems comply with international standards on
      portfolio risk management and reporting.  In addition, it
      will design and implement a comprehensive payments and
      securities clearance and settlement system reform.

   -- Provide capacity building to the CPC in order to
      strengthen the leadership and coordination role of the
      institution in the field of competitiveness.

"Project activities will help the Government to create a better
business climate, and provide incentives to the private sector
to create jobs," said Mike Goldberg, World Bank Senior Private
Sector Development Specialist and Task Manager for the project.
"At the same time, the project will enable Nicaragua to meet the
requirements of regional and international free trade
agreements, while strengthening the financial sector and
maintaining fiscal discipline."

The US$17 million, zero-interest credit from the International
Development Association (IDA) is repayable in 40 years,
including 10 years of grace.

                        *    *    *

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
===========


BANCO DISA: Cesar Garcia Is Firm's New Liquidator
-------------------------------------------------
An official from the banking regulator of Panama told Business
News Americas that the agency has appointed Cesar Garcia to take
the place of Olegario Barrelier as Banco Disa's liquidator.

BNamericas relates that Mr. Barrelier was appointed as
superintendent on Aug. 7 after Panama's President Martin
Torrijos asked Delia Cardenas to step down.  President Torrijo
was widely criticized as Ms. Cardenas was recognized for
promoting better practices, transparency and fighting money
laundering.

BNamericas reports that local authorities had intervened Banco
Disa in November 2001 and had it closed in January 2002.  Five
years after Banco Disa's collapse, depositors are still waiting
for reimbursement.  However, it is yet unclear how much of the
funds have been recovered.

The International Monetary Fund said in a report that the forced
liquidation of Banco Disa was due to the discovery of
undisclosed off-balance liabilities that could not be supported
with existing assets.  Investment losses from Latin American
securities during the 1996-98 period surpassed Banco Disa's
equity.  Banco Disa's assets were 1.2% of Panama's gross
domestic product.

Sources within the industry told BNamericas that legal documents
regarding Banco Disa's collapse are closed to the public, which
is usual in Panama.

Banco Disa's bankruptcy and the never-ending legal wrangling is
an illustration of the lack of transparency in the courts and
banks of Panama, BNamericas relates, citing its sources.




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


* PARAGUAY: Will Launch Broadband Services in Urban Areas
---------------------------------------------------------
Alfredo Moreira -- the assistant manager of Copaco, the state-
owned operator of Paraguay -- told local paper ABC that the firm
will begin offering broadband services in some urban areas in
the nation.

Business News Americas notes that Copaco will initially offer
the service to almost 12,000 users in:

     -- Asuncion,
     -- Ciudad del Este,
     -- Encarnacion, and
     -- Coronel Oviedo.

ABC relates that Mr. Moreira said Copaco is yet waiting for the
government's approval.

According to BNamericas, Copaco had disclosed earlier this month
that it will launch the broadband service by the end of August.

However, Conatel -- the telecoms regulator in Paraguay -- has
not approved the detail of the contracts connection rates, Mr.
Moreira told BNamericas.

                        *    *    *

Moody's assigned these ratings on Paraguay:

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

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

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


* PARAGUAY: World Bank Grants US$74 Million for Road Maintenance
----------------------------------------------------------------
The World Bank's Board of Directors approved a US$74 million
loan to assist the Paraguayan authorities to improve road
infrastructure management and maintenance in Paraguay.

The project will establish a sustainable road management
strategy that provides for the upgrading and maintenance of the
road network through the strategic and transparent use of scarce
resources.  The approach is critical for Paraguay, which relies
almost entirely on roads for transport in domestic and
international goods.  The road network will provide crucial
links to ports in neighboring countries and markets in the
Mercosur region.  With some 55% of the poor, and 75 percent of
the extreme poor, living in rural areas, the improvement of
rural and secondary roads will also address the most intractable
social problems.

"This project will help strengthen Paraguay's competitiveness by
improving a deteriorating road network, and reduce poverty by
increasing access for poor rural communities which have for too
long been isolated from basic services and the opportunity to
bring their goods to market that is essential to economic
growth," said Axel van Trotsenburg, World Bank Country Director
for Paraguay, Chile, Argentina, and Uruguay.  "It will be the
largest loan the Bank has ever made to Paraguay, and reflects
our commitment to provide ongoing support to meet the country's
key development needs."

The objectives of the Road Maintenance Project are to:

   -- develop the institutional capacities of the Ministry of
      Public Works and Communications for strategic planning
      and management of the road network;

   -- arrest the deterioration of Paraguay's priority road
      network, composed of international and regional road
      corridors, and maintaining its level of service as
      perceived by road users; and

   -- improve access for the poorest and most excluded rural
      communities to the primary paved road network in the
      Departments of San Pedro, Caaguazu and Caazapa.

"The project design has been as comprehensive as possible,
trying to introduce an approach that is results-based, with
targets to be monitored and whose attainment will be the
indication of success," said Andres Pizarro, World Bank Task
Manager for the project.  "The project also aims to improve
accountability, through planning and programming based on
objective and quantifiable criteria that can be presented for
public scrutiny, and to promoteparticipation and transparency,
through mechanisms designed to facilitate stakeholders share in
the control and decision making process," Mr. Pizarro added.

With the new loan, the World Bank has committed about US$192
million in support of seven projects in Paraguay.  The 2004-2007
Country Assistance Strategy outlines a program for a total
support of US$325 million, closely aligned with the Government's
development priorities.

The US$74 million fixed-spread loan is payable in 23 years and
includes a five-year grace period.

                        *    *    *

Moody's assigned these ratings on Paraguay:

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

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

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




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


DOE RUN: La Oroya Attains ISO 14001 Environmental Certification
---------------------------------------------------------------
The Doe Run Company disclosed that for the first time in the
facility's history, Doe Run Peru's La Oroya plant has attained
the ISO 14001: 2004 environmental standard, earning a
Certificate of Recognition from the third-party environmental
auditing firm SRI International.  The certification recognizes
the environmental safeguards, procedures and management systems
in place at the company's La Oroya metallurgical complex, one of
the world's only multi-metal processing facilities.

"Since December 2005, we have been working diligently on this
certification process, which represents an internationally
recognized standard for environmental performance and systems,"
explained Jose Mogrovejo, vice president of environmental
affairs at Doe Run Peru.  "We are very proud of what we've been
able to accomplish as a team, and ISO 14001: 2004 certification
is a significant milestone in delivering on our commitments to
our communities, our employees and the environment."

Not only is certification a tangible demonstration of Doe Run
Peru's pledge to improve environmental performance, but
according to Mogrovejo, certification directly resulted from the
company's structured Environmental Management System, which Doe
Run Peru began implementing upon its arrival in 1997 to prevent,
reduce or eliminate the environmental impact of its activities,
products and services.

Doe Run Peru plans to continue with additional environmental
improvements and by December 2006 will have invested more than
US$108 million, exceeding its initial commitment set in 1997.

                  About ISO 14001: 2004

ISO 14001: 2004 is an internationally recognized environmental
management system standard set by the International Standards
Organization, concerning what an organization does to minimize
harmful effects on the environment caused by its activities and
achieving continual improvement of its environmental
performance.  ISO 14001: 2004 outlines several key requirements
in its environmental management system.  The five major elements
are Environmental Policy, Planning, Implementation and
Operations, Checking and Corrective Action, and Management
Review.  Generally, the advantages to be gained through the
implementation of ISO 14001: 2004 include risk reduction, cost
reductions and competitive advantages.  ISO standards are
implemented by more than 540,000 organizations in 160 countries.

               About The Doe Run Resources Corp.

The Doe Run Resources Corp. is one of the world's providers of
premium lead and associated metals and services.  The Company is
the largest integrated lead producer in North America and the
largest primary lead producer in the western world.

Doe Run operates an integrated primary lead operation and a
recycling operation located in Missouri, referred to as Buick
Resource Recycling.

Fabricated Products, Inc., a wholly owned subsidiary of Doe Run,
operates a lead fabrication operation located in Arizona and a
lead oxide business located in Washington.

Doe Run Peru S.R.L., an indirect Peruvian subsidiary, operates a
smelter in La Oroya, Peru, one of the largest polymetallic
processing facilities in the world, producing an extensive
product mix of non-ferrous and precious metals, including
silver, copper, zinc, lead and gold.  Doe Run Peru also has a
copper mining and milling operation in Cobriza, Peru in the
region of Huancavelica, which is approximately 200 miles
southeast of La Oroya in Peru.

           Doe Run Peru Going Concern Doubt

As reported in the Troubled Company reporter-Latin America on
Aug. 10, 2006, Doe Run Peru has significant capital requirements
under environmental commitments and guarantees and substantial
contingencies related to taxes and has significant debt service
obligations under the revolving credit facility, each of which,
if not satisfied, could result in a default under Doe Run Peru's
credit agreement and collectively raise substantial doubt about
Doe Run Peru's ability to continue as a going concern.

Doe Run Peru continues to have substantial cash requirements in
the future, including the maturity of the revolving credit
facility on Sept. 22, 2006, and significant capital requirements
under environmental commitments.  In addition, there are
substantial contingencies related to taxes.

The Doe Run Peru Revolving Credit Facility expires on Sept. 22,
2006, and will require negotiations to extend its terms.  There
can be no assurance that Doe Run Peru will be successful in
extending the existing credit agreement or negotiating a new
agreement, or if it is successful, that the extended or new
credit agreement would be at terms that are favorable to Doe Run
Peru.

Any default under the requirements of the Environmental
Remediation and Management Program could result in a default
under the Doe Run Peru Revolving Credit Facility.  A default
under the requirements of the Doe Run Peru Revolving Credit
Facility results in defaults under the Doe Run Revolving Credit
Facility and the indenture governing the bonds.


* PERU: Appoints Cesar Gutierrez to Head State Oil Firm
--------------------------------------------------------
Juan Valdivia, the mines and energy minister of Peru, told Dow
Jones Newswires that Cesar Gutierrez, an energy consultant, was
appointed as the president of the board of Petroleos del Peru SA
aka Petroperu, the state-run oil firm of Peru.

According to Dow Jones, Mr. Gutierrez would take the place of
Roger Arevalo, who was appointed by former Peruvian President
Alejandro Toledo.

"What we have done is to name persons with professional
abilities, who are honest, and who have experience in the
sector," Minister Valdivia said in a radio interview.

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

                     Rating     Rating Date
                     ------     -----------
   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

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 21, 2006, Fitch Ratings upgraded Peru's country ceiling to
BB+ from BB.  This rating action is in conjunction with Fitch's
upward revision on the Country Ceilings for 40 countries.  The
Country Ceilings are an effective cap on all foreign currency
ratings of entities and transactions originating within each
country.  Fitch first publicly assigned Country Ceilings to
countries with Fitch-rated sovereign issuers in June 2004.


* PERU: Wants to Restate Free Trade Accord with the U.S.
--------------------------------------------------------
Peruvian President Alan Garcia told Bloomberg News that his
government seeks to renegotiate a free-trade agreement signed
with the United States, which is awaiting a vote in the U.S.
Congress.

The government has appointed economist Hernando de Soto at Lima-
based Institute for Liberty and Democracy, as chief negotiator
to "propose an accord for the impoverished majority and not in
its elitist conception," Bloomberg relates.

President Garcia, Bloomberg says, wanted to change the terms of
the agreement.  He stressed during a speech that the accord
should be "for the poor, one that looks within, complying with a
national agenda."

The two countries' free trade agreement received Peru's Congress
approval in June.  The US Congress is expected to vote on the
accord in September.  The agreement, once approved, will
eliminate trade barriers between Peru and US.

Peru's former president counted on the trade accord to help his
country double exports within five years.  Peru's exports, led
by copper, gold and natural gas, could jump by one-third to
US$22 billion this year, Bloomberg states, citing the Foreign
Trade Ministry.

Meanwhile, in a study conducted in cooperation with the Inter-
American Development Bank, figures show that only 2% of Peruvian
companies are ready to trade with US firms, while 100% of
surveyed US firms are ready to trade with Peru.

"It's a challenge.  Things aren't as easy as they seem," Mr. de
Soto was quoted by Bloomberg as saying.  "A lot of work needs to
be done to make a beneficial agreement for Peru a reality."

                        *    *    *

On Aug. 18, 2006, Fitch Ratings upgraded Peru's country ceiling
to BB+ from BB.  This rating action is in conjunction with
Fitch's upward revision on the Country Ceilings for 40
countries.  The Country Ceilings are an effective cap on all
foreign currency ratings of entities and transactions
originating within each country.




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


ADELPHIA COMMS: CanPartners Holds Allowed US$22,126,440 Claim
-------------------------------------------------------------
Adelphia Communications Corp. is a party to a Standard
Industrial Commercial Single-Tenant Lease-Net dated
May 28, 1997, as amended, governing the lease of certain
premises located at 1260 S. Dupont Street in Ontario, California
owned by Meredith Enterprises, Inc., formerly known as West
Coast Realty Investors, Inc.

W. C. Communications, Inc., doing business as West Coast
Communications, filed proofs of claim against the ACOM Debtors
for amounts allegedly owing for certain construction services
performed for the ACOM Debtors, including services performed on
the Premises.

W. C. Communications subsequently assigned the Claims to
CanPartners Investments IV LLC.

By a Court order dated April 7, 2006, CanPartners was allowed a
secured claim for US$81,200,000 plus interest from the date of
the Debtors' bankruptcy filing through the date of payment,
US$22,126,440 of which was allowed on behalf of the Claims.

It is currently contemplated that the Allowed Claim will be paid
in full under the terms of a plan or plans of reorganization for
the ACOM Debtors' estates.

The ACOM Debtors proposed to assume and assign the Lease to
Comcast Corp. but Meredith objected to it, asserting
certain defaults under the Lease.

Given the resolution of the Claims and the proposed assumption
and assignment of the Lease, W. C. Communications, Meredith and
the ACOM Debtors stipulate that:

    1. Upon confirmation of a plan or plans of reorganization
       for ACOM, ACOM will pay CanPartners the US$22,126,440
       Allowed Claim in full;

    2. W. C. Communications will take all actions necessary to
       release the Lien from the Property, and all other parcels
       of real property covered by the Lien;

    3. Upon payment in full of the Allowed Claim, W. C.
       Communications and CanPartners releases and forever
       discharges the Premises and Meredith from all liens and
       actions in connection with the Claims;

    4. In the event the Allowed Claim is not paid in full or in
       the event the Claims are not fully paid and satisfied, W.
       C. Communications and CanPartners each agrees that the
       Lien and any future lien filed to enforce the Claims
       attaches not to the fee interest of Meredith and its
       successors and assigns in the Premises, but rather,
       solely to the leasehold interest of the ACOM Debtors and
       its successors-in-interest under the Lease or to any sale
       proceeds received by the ACOM Debtors from Comcast; and

    5. The Stipulation will constitute adequate assurance of
       prompt cure of Meredith's asserted defaults under the
       Lease relating to the Lien, as required under Section 365
       of the Bankruptcy Code.

Judge Gerber approves the Stipulation.

                About Adelphia Communications

Based in Coudersport, Pa., Adelphia Communications Corp.
(OTC: ADELQ) -- http://www.adelphia.com/ -- is the fifth-
largest cable television company in the country.  Adelphia
serves customers in 30 states and Puerto Rico, and offers analog
and digital video services, high-speed Internet access and other
advanced services over its broadband networks.  The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002.  Those cases
are jointly administered under case number 02-41729.  Willkie
Farr & Gallagher represents the ACOM Debtors.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.  (Adelphia Bankruptcy News, Issue Nos. 145; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


ADELPHIA COMMS: Senior Noteholders Want Exclusivity Terminated
--------------------------------------------------------------
These holders or investment advisors to certain holders of notes
and debentures issued by Adelphia Communications Corp., ask
the Court to terminate the ACOM Debtors' exclusive periods to
allow them to file a competing chapter 11 plan of
reorganization:

   * Aurelius Capital Management, LP;
   * Catalyst Investment Management Co., LLC;
   * Drawbridge Global Macro Advisors, LLC;
   * Drawbridge Special Opportunities Advisors, LLC;
   * Elliott Associates, LP;
   * Farallon Capital Management, LLC;
   * Noonday Asset Management, LP; and
   * Perry Capital, LLC,

Brian S. Rosen, Esq., at Weil, Gotshal & Manges LLP, in New
York, notes that throughout the ACOM Debtors' Chapter 11 cases,
the Court has insisted on:

    (i) neutrality on the part of the ACOM Debtors, who are
        conflicted on intercompany issues; and

   (ii) the resolution of the intercreditor disputes through the
        Motion in Aid Process.

Mr. Rosen relates that the MIA Process, approved by the Court,
was designed to promote an open and valid assessment of the ACOM
Debtors' assets and liabilities, ensure that the merits of
intercreditor issues were considered and determined, and treat
all parties in the ACOM Debtors' Chapter 11 cases fairly and
equitably.  Thus, the Court has rebuked multiple attempts to
undermine a fair and open determinative proceeding.

Mr. Rosen informs the Court that the ACC Senior Noteholders have
relied on the repeated assurances that due process, fairness,
and the ACOM Debtor's neutrality were unyielding principles that
the Court would not compromise.

On April 6, 2006, the Court issued a Plan Procedures Order,
which provides that if the ACOM Debtors propose amendments to a
chapter 11 plan of reorganization that include a proposed
settlement of the Intercreditor Disputes, the amended plan must
be structured to permit creditors to separately accept or reject
a "Settlement Plan" and a "Reserve Plan."

Mr. Rosen asserts that the ACOM Debtors have violated the
Court's Plan Procedures Order by:

    (i) publicly committing to filing a chapter 11 plan that
        mandates the "settlement" negotiated by certain
        constituencies and does not include the holdback plan
        alternative; and

   (ii) signing the amended and restated agreement concerning
        the terms and conditions of a modified chapter 11 plan
        dated July 21, 2006, that prohibits them from complying
        with the Plan Procedures Order.

To ensure that no one else can pursue the "Reserve Plan," the
ACOM Debtors have retained exclusivity and relinquished it only
in favor of the Official Committee of Unsecured Creditors, Mr.
Rosen relates.

It is extremely inappropriate for the ACOM Debtors to join in an
effort to coerce creditors into accepting the "settlement"
negotiated by certain parties and to deny creditors the holdback
plan alternative that the Court previously has ordered the
Debtors to provide, Mr. Rosen argues.

Mr. Rosen contends that since the ACOM Debtors will not adhere
to the Plan Procedures Order and propose the required
alternative, other parties should be given the opportunity to do
so.  He notes that the ACOM Debtors' alternative would provide
for immediate distributions to be made to the Bank Group and
general unsecured creditors except for holders of the ACC
unsecured debt, the Arahova Notes and the FrontierVision HoldCo
Notes, for whom distributions would be delayed, to the extent
necessary, pending a merits-based resolution of the
intercreditor  issues.

               Need for an Alternative Plan

The ACC Senior Noteholders maintain that a two-pronged approach
consistent with the Plan Procedures Order is appropriate and
should be employed to rectify the current imbalance.  The two-
pronged approach will:

    -- eliminate the accrual of interest on the secured debt and
       unsecured subsidiary debt other than the Arahova Notes
       and FrontierVision Holdco Notes;

    -- allow for prompt distributions to all creditor classes
       other than to holders of the ACC unsecured debt, the
       Arahova Notes and the FrontierVision HoldCo Notes; and

    -- allow the MIA Process to reach its rightful conclusion
       expeditiously.

"The Debtors should not object to this balanced approach and, if
the Arahova Noteholders and FrontierVision Holdco Noteholders
are interested in knowing the truth of the MIA Process, they
should not be concerned about presenting the merits of the
Intercreditor Disputes," Mr. Rosen contends.

The ACC Senior Noteholders delivered to the Court their proposed
Term Sheet that provides for the same treatment as the ACOM
Debtors' Amended Term Sheet for all constituencies other than
the Bank Group and holders of the ACC unsecured debt, the
Arahova Notes and the FrontierVision HoldCo Notes.

Mr. Rosen explains that the Amended Term Sheet provides that
litigation over approval of the purported settlement of the
Intercreditor Disputes will delay distributions to all
creditors, while under ACC Noteholders' Term Sheet, all
constituencies other than the Bank Group and holders of the ACC
unsecured debt, the Arahova Notes and the FrontierVision HoldCo
Notes will receive their distributions regardless of whether the
Intercreditor Disputes are litigated now, later or consensually
resolved.

A full-text copy of the ACC Noteholders' Term Sheet is available
for free at http://ResearchArchives.com/t/s?1050

Mr. Rosen asserts that the ACC Senior Noteholders should be
authorized to file and pursue confirmation of a competing plan
because the ACOM Debtors have waived exclusivity, which cannot
be done exclusively for the benefit of selective creditors and
constituencies to the detriment of others.

               About Adelphia Communications

Based in Coudersport, Pa., Adelphia Communications Corp.
(OTC: ADELQ) -- http://www.adelphia.com/ -- is the fifth-
largest cable television company in the country.  Adelphia
serves customers in 30 states and Puerto Rico, and offers analog
and digital video services, high-speed Internet access and other
advanced services over its broadband networks.  The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002.  Those cases
are jointly administered under case number 02-41729.  Willkie
Farr & Gallagher represents the ACOM Debtors.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.  (Adelphia Bankruptcy News, Issue Nos. 146; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


BURGER KING: Names Peter Robinson President of EMEA Operations
--------------------------------------------------------------
Peter Robinson, previously the president of Pillsbury USA and
senior vice president of General Mills Inc., has joined Burger
King Corp. as president of Burger King EMEA, effective
immediately.  Mr. Robinson will be based in the company's EMEA
headquarters in Zug, Switzerland, and will report to Burger King
Corporation CEO John W. Chidsey.  In this role, Robinson will be
responsible for all of Burger King Corporation's business in the
region, including operations, marketing and franchisee
development.  He will be part of the company's executive
leadership team.

Mr. Robinson's career spans more than 30 years in the consumer
foods industry in the United States, Europe, the Middle East and
Africa.

"Peter is results driven and action oriented with exactly the
right mix of multinational experience to lead Burger King in the
region," Mr. Chidsey said.  "During the past two years in EMEA,
we've concentrated on improving operations and marketing and on
new franchisee development. These accomplishments have set the
stage for us to focus intently on improving comparable sales
growth and further accelerating restaurant growth."

Mr. Robinson was appointed president of Pillsbury USA following
the acquisition of Pillsbury by General Mills in 2001 where he
was instrumental in the successful integration of Pillsbury
businesses and employees into the new General Mills.  Before
joining Pillsbury in 1999, Robinson was president of Frito-Lay
International, responsible for Eastern Europe, the Middle East
and Africa.  He has also held leadership positions at Kraft
General Foods.

Mr. Robinson said, "Burger King has made significant strides in
the past few years in Europe and the Middle East, and I'm
confident we can accelerate the momentum. I am pleased to have
the opportunity to work with John and the leadership team at
Burger King at this exciting time in the company's history and
to return to the region."

Mr. Robinson replaces Steve DeSutter, who resigned from his
position as president of Burger King EMEA earlier this month.
Robinson is a native of the United Kingdom.  He holds a degree
in economics from Newcastle University in the United Kingdom.

EMEA is the largest geographic area in the Burger King system
outside the United States with more than 2,100 restaurants in 26
countries and territories, including the United Kingdom,
Germany, Spain and the Netherlands.

                     About Burger King

The Burger King(R) system (NYSE: BKC) -- http://www.bk.com/--  
operates more than 11,100 restaurants in all 50 states and in
more than 65 countries and U.S. territories worldwide.
Approximately 90% of BURGER KING restaurants are owned and
operated by independent franchisees, many of them family-owned
operations that have been in business for decades.

Burger King Corp. operates restaurants in the Latin American,
Caribbean and Mexican Region.  The company's first international
restaurant opened in 1963 in Puerto Rico.  Since 1994, Burger
King has opened more than 300 restaurants in the Latin American
region, producing some of the strongest comparable store sales
growth for the brand around the world.  Burger King(R)
restaurants in Latin America serve approximately 1,600 customers
per day each, making them some of the highest volume restaurants
in the system.

                        *    *    *

As reported in the Troubled Company Reporter on June 23, 2006,
Fitch assigned initial ratings for Burger King Corp., the
world's second largest fast food hamburger restaurant chain.
Fitch assigned the Company its 'B+' Issuer Default Rating.
Fitch also rated the Company's US$150 million revolving credit
facility maturing June 2011; and US$967 million aggregate
remaining term loan A and B outstandings maturing June 2011 and
June 2012, respectively, at 'BB/RR2'.  Fitch said that the
Outlook on all Ratings is Positive.


KMART: Court Approves Pact Allowing D. Roldan to Pursue PI Suit
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
approved a stipulation between Kmart Corp. and Carmen
Dominguez Roldan and her husband Francisco Martinez Arias
lifting the automatic stay and injunction provision under
Kmart's Plan of Reorganization to permit the litigation
captioned Carmen Dominguez v. Kmart, Case No. DKDP01-0313, to
proceed and continue to a final judgment or settlement.

Carmen Roldan and Francisco Arias filed Claim No. 30383 against
the Kmart and its debtor-affiliates for personal injury.  The
Debtors objected to the Claim.  Ms. Roldan and Mr. Arias then
asked the Court to either allow their Claim or lift the
automatic stay to allow them to pursue their Claim.

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: Court Okays Pact Allowing Holmes, et al.'s PI Suit
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
signed an agreed order between Kmart Corp. and its debtor-
affiliates and Eric and Natasha Holmes partially lifting the
automatic stay and injunction provision under the Debtors' Plan
of Reorganization to permit the litigation captioned Holmes, et
al. v Kmart, et al., Case No. 2866, to proceed to final judgment
or settlement.

Eric and Natosha Holmes, as parents and natural guardians of
Tyron Rice, filed Claim No. 27068 against Kmart for severe and
permanent injuries Tyron Rice suffered when he was shot in the
eye by an airgun sold by Kmart on Oct. 30, 2001.  They then
asked the Court to allow them to pursue their Claim in a
separate litigation.

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: Committee Has Until Nov. 3 to File Claim
---------------------------------------------------------------
In a Court-approved stipulation, Musicland Holding Corp. and its
debtor-affiliates, the Official Committee of Unsecured Creditors
and the Secured Trade Creditors stipulate that the Creditors
Committee's time to file any claim against the Secured Trade
Creditors under the DIP Order is further extended until
Nov. 3, 2006.

The Creditors Committee reserves the right to seek the U.S.
Bankruptcy Court for the Southern District of New York's
permission for examination of the Secured Trade Creditors,
provided that the Informal Committee of Secured Trade Vendors'
rights to object to the examination of its members are reserved.

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: Posts US$134,000 Net Loss in July 2006
---------------------------------------------------------

                      Musicland Holding Corp.
                    Consolidated Balance Sheet
                       As of July 31, 2006

ASSETS
Current Assets
   Cash                                            US$50,260,000
   Other                                             18,056,000
                                                   ------------
      Total                                          68,317,000
                                                   ------------
Other assets                                            700,000
                                                   ------------
      TOTAL ASSETS                                 US$69,017,000
                                                   ============

Liabilities & Shareholders' deficit
Current liabilities
   Accounts payable                                 US$1,014,000
   Other accrued liabilities                          7,672,000
                                                   ------------
      Total                                           8,686,000
                                                   ------------
Liabilities subject to compromise                   355,513,000
Shareholders' deficit                              (295,182,000)
                                                   ------------
      TOTAL LIABILITIES &
      SHAREHOLDERS' DEFICIT                        US$69,017,000
                                                   ============


                      Musicland Holding Corp.
               Consolidated Statement of Operations
                 For the Month Ended July 31, 2006

Merchandise revenue                                           -
Non-merchandise revenue                                       -
                                                   ------------
   Net sales                                                  -

Cost of goods sold                                            -
                                                   ------------
   Gross Profit                                               -
                                                   ------------

Store operating expenses
   Payroll                                            US$216,000
   Occupancy                                             21,000
   Other                                                306,000
                                                   ------------
      Store expenses                                    543,000
                                                   ------------
General & administrative                                544,000
                                                   ------------
EBITDA (Loss)                                          (544,000)
                                                   ------------
Chapter 11 & related charges                           (512,000)
                                                   ------------
   Operating income (Loss)                           (1,056,000)
                                                   ------------
Interest income (expense)                               170,000
Other non-operating income (expense)                    752,000
                                                   ------------
   Earnings before Taxes                               (134,000)
                                                   ------------
Income tax                                                    -
                                                   ------------
   Net earnings (Loss)                              (US$134,000)
                                                   ============


                      Musicland Holding Corp.
                Consolidated Statement of Cash Flow
                 For the Month Ended July 31, 2006

Operating activities
   Net earnings (Loss)                              (US$134,000)
   Adjustments to reconcile net earnings (loss)
      to net cash provided by (used in)
      operating activities:
         Loss on utility deposits write off              33,000
         Loss on Logistic's settlement                   50,000
   Changes in operating assets and liabilities:
      Other current assets                           (1,136,000)
      Accounts payable                                 (613,000)
      Other operating liabilities                      (741,000)
      Liabilities subject to compromise                       -
                                                   ------------
   Net cash provided by (used in)
      operating activities                           (2,541,000)
                                                   ------------
Investing activities
   Change in other long term asset/liabilities                -
                                                   ------------
   Net cash provided by (used in)
      investing activities                                    -
                                                   ------------
Financing activities
   Revolver borrowings                                        -
                                                   ------------
Increase/decrease in cash                            (2,541,000)
                                                   ------------
   Cash at beginning of Period                       52,801,000
                                                   ------------
   Cash at end of Period                           US$50,260,000
                                                   ============


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)




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


BRITISH WEST: Management to Meet with Unions on September 1
-----------------------------------------------------------
The management of British West Indies Airlines aka BWIA will
discuss the future of the airline in a meeting with the firm's
four workers' unions on Sept. 1, the Trinidad & Tobago Express
reports.

BWIA will be meeting with unions:

   -- Aviation, Communication and Allied Workers Union or ACAWU,
   -- Trinidad and Tobago Airline Pilots Association,
   -- Superintendents Association, and
   -- Communication, Transport and General Workers Union.

Curtis John, the head of the ACAWU, told The Express, "We have
written to (BWIA management) requesting a meeting.  Negotiations
have been on hold for some time now and the unions and their
members have no clear knowledge on what is happening with the
airline and even with their jobs.  We are willing to meet and
treat with the company in good faith and we are hopeful that
there can be some resolution at the meeting on Sept. 1."

The Express relates that talks for a new collective accord
between BWIA and the union representing the firm's 1,600 workers
reached an impasse two months ago.  The two parties did not
reach an agreement.

Peter Davies, the chief executive officer of BWIA, had written
to the unions to inform them that the airline was waiting for
the government's decision regarding the next procedure for
negotiations, The Express states.

BWIA was founded in 1940, and for more than 60 years has been
serving the Caribbean islands from Trinidad and Tobago, the hub
of the Americas, linking the twin island republic and many other
Caribbean islands with North America, South America, the United
Kingdom and Europe.

The airline has reportedly been losing US$1 million a week due
to poor operational management.  An employee survey revealed
that lack of responsibility by the management is a major issue
in the company.  A number of key employees moved to other
companies caused by a deadlock in the company's negotiation with
its labor union.


MIRANT: Asset Recovery Wants Foster Wheeler's Claim Disallowed
--------------------------------------------------------------
Foster Wheeler Energy Corp. entered into agreements for
purchase and sale of equipment with:

    (1) Mirant Kendall, LLC, on Feb. 26, 2001; and
    (2) Mint Farm Generation, LLC, on June 3, 2002.

Foster Wheeler was contracted to design and provide equipment
and related services in connection with Mirant Kendall's and
Mint Farm's construction projects at the Debtors' power plants.

Foster Wheeler was to receive US$12,132,000 as compensation
under the Kendall Agreement.  As of the Petition Date, Mirant
Kendall had paid Foster Wheeler US$11,716,821 as compensation.
On the other hand, Foster Wheeler was to receive US$14,060,000
as compensation under the Mint Farm Agreement.

                    Incomplete Projects

Michelle C. Campbell, Esq., at White & Case LLP, in Miami,
Florida, relates that Mirant Kendall incurred approximately
US$1,900,000 in damages as a result of Foster Wheeler's delay.

Foster Wheeler did not complete the project at the Mint Farm
facility.  Ms. Campbell notes that Mint Farm has prepaid Foster
Wheeler's goods and services.  Foster Wheeler, therefore, owes
Mint Farm more than US$800,000.

On May 23, 2003, Foster Wheeler filed a complaint seeking a
mechanic's lien in the Superior Court for the Commonwealth of
Massachusetts.  The State Proceeding was automatically stayed
when Mirant Kendall filed for bankruptcy.  Foster Wheeler filed
a notice in the Bankruptcy Court reserving its rights with
respect to the mechanic's lien.

                   Foster Wheeler's Claims

Foster Wheeler filed Claim No. 5225 against Mirant Kendall
alleging a secured claim for US$1,373,115 representing the
remaining amounts owing under the 2001 Agreement.

Foster Wheeler filed Claim No. 5359 against Mint Farm seeking
payment for US$804,883 owing under the 2002 Agreement.

Michelle C. Campbell, Esq., at White & Case LLP, in Miami,
Florida, asserts that after application of the credits Mint Farm
has accrued and the damages that Mirant Kendall suffered due to
Foster Wheeler's delays, no further amounts remain owing to
Foster Wheeler under both Agreements.

As the credits owed to Mint Farm and Mirant Kendall exceed the
amounts of the Claims, to require the Debtors to pay for the
Claims would result in a windfall to Foster Wheeler, Ms.
Campbell points out.

Therefore, MC Asset Recovery, LLC, the Debtors' successor-in-
interest, asks the U.S. Bankruptcy Court for the Northern
District of Texas to disallow or reduce Foster Wheeler's Claims
as appropriate pursuant to the doctrines of setoff and
recoupment.

                        About Mirant

Headquartered in Atlanta, Georgia, Mirant Corp. (NYSE: MIR)
-- http://www.mirant.com/-- is an energy company that produces
and sells electricity in North America, the Caribbean, and the
Philippines.  Mirant owns or leases more than 18,000 megawatts
of electric generating capacity globally.  Mirant Corp. filed
for chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-
46590), and emerged under the terms of a confirmed Second
Amended Plan on Jan. 3, 2006.  Thomas E. Lauria, Esq., at White
& Case LLP, represented the Debtors in their successful
restructuring.  When the Debtors filed for protection from their
creditors, they listed US$20,574,000,000 in assets and
US$11,401,000,000 in debts.  The Debtors emerged from bankruptcy
on Jan. 3, 2006.  (Mirant Bankruptcy News, Issue No. 103;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                        *    *    *

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

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

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

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

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

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


MIRANT CORP: Files Adversary Case vs. Three Environmental NGOs
--------------------------------------------------------------
Mirant Corp., Mirant Mid-Atlantic, LLC, and Mirant Chalk
Point, LLC, received on June 15, 2006, a notice from
Environmental Integrity Project, a non-government organization,
"threatening" to sue the Reorganized Debtors in federal court
due to certain discharged violations.

EIP asserts, on its behalf and on behalf of other private, non-
government and nonprofit organizations, that the Reorganized
Debtors violated the Clear Air Act due to emissions at Mirant
Chalk Point's power units, which "repeatedly violated opacity
limits under federal and state law."  The emissions occurred
between Jan. 2002 and March 2006,

The other NGOs are:

    (1) Chesapeake Climate Action Network
    (2) Patuxent Riverkeeper
    (3) Environment Maryland Research and Policy Center

Ian T. Peck, Esq., at Haynes and Boone, LLP, in Dallas, Texas,
relates that EIP and CCAN participated directly in the Debtors'
cases, including by objecting to the Plan.  Patuxent and EM also
participated in the bankruptcy cases to some degree, Mr. Peck
adds.

To prevent unnecessary litigation, the Reorganized Debtors
responded to each of the NGOs indicating that:

    * the Notice constituted a violation of the Plan, the
      Confirmation Order and Sections 524 and 1141 of the
      Bankruptcy Code; and

    * the failure to withdraw the Notice and the commencement of
      the litigation threatened in the Notice would also
      constitute violations.

But EPI, et al., refused to withdraw the Notice.  The period
of the impending action under the Clean Air Act runs until
Aug. 14, 2006.

Mr. Peck notes that a large bulk of the "Alleged Violations"
occurred prior to the Effective Date.   Hence, those violations
have been discharged under the Plan, Mr. Peck asserts.

Mr. Peck points out that the Confirmation Order includes a
general discharge, which states that on the Effective Date of
the Plan "all Claims against and Equity Interests in the Debtors
and the Debtors-in-Possession [will] be satisfied, discharged
and released in full."

Additionally, the Confirmation Order includes a discharge
provision specifically negotiated for by the EIP and the CCAN,
Mr. Peck says.

The Chesapeake Discharge Provision provides that the rights of
the Chesapeake Bay Foundation, the EIP and the CCAN, if any, to
commence an action as a private attorney general under any
federal, state, or local environmental law or regulation
regarding the Debtors' postpetition acts or omissions are not
affected or impaired by the Plan or the Confirmation Order
except to the extent that any action gives rise to a Claim or
debt subject to discharge under Section 1141 of the Bankruptcy
Code.

Mr. Peck points out that the deadline to file an administrative
claim against the Debtors expired on Jan. 24, 2006.  At no
time did the NGOs file a proof of claim or an administrative
claim, Mr. Peck notes.

Mr. Peck adds that the Confirmation Order included provisions
enjoining holders of claims against and equity interests in the
Debtors from pursuing any actions in existence at the Effective
Date and pursuing actions based on Claims in existence prior to
the Effective Date.

The Confirmation Order, Mr. Peck further notes, includes
language that tracks the General Injunction Provision and
provides that all persons and entities who have been, are, or
may be holders of Claims are permanently enjoined from, among
other things:

    * commencing, conducting or continuing in any manner,
      directly or indirectly, any suit, action or other
      proceeding of any kind; or

    * enforcing, levying, attaching, collecting or otherwise
      recovering by any manner or means, whether directly or
      indirectly, any judgment, award, decree or order.

For these reasons, Mirant, MIRMA, and Mirant Chalk Point ask
Judge Lynn to:

    (a) rule that:

        (1) the discharged violations and any liability of the
            Reorganized Debtors and the other New Mirant
            Entities were discharged by the Plan, the
            Confirmation Order and the Bankruptcy Code;

        (2) the NGOs violated the Plan, the Confirmation Order
            and the Bankruptcy Code by sending the Notice, and
            will violate the Plan, the Confirmation Order and
            the Bankruptcy Code if they commence any action in
            federal district court or otherwise to assert the
            "discharged violations";

        (3) the NGOs are in civil contempt for having violated
            the Confirmation Order by sending the Notice.  As a
            result, the Reorganized Debtors are entitled to
            monetary damages;

        (4) the Notice is deemed invalid as to all alleged
            violations; and

        (5) the NGOs may not bring a cause of action under the
            Clean Air Act with respect to post-Effective Date
            violations until a new notice is issued in
            accordance with Section 7604(a)(1) of the Clean Air
            Act;

    (b) issue a temporary restraining order, and preliminary
        and permanent injunction, enjoining the NGOs from
        commencing or continuing, or encouraging any person or
        entity to initiate or continue, any action based on the
        discharged violations and requiring the NGOs to
        immediately withdraw the Notice; and

    (c) award amounts owed to the Reorganized Debtors based on
        the NGOs' breach of the Plan, including, all attorney's
        fees incurred.

                        About Mirant

Headquartered in Atlanta, Georgia, Mirant Corp. (NYSE: MIR)
-- http://www.mirant.com/-- is an energy company that produces
and sells electricity in North America, the Caribbean, and the
Philippines.  Mirant owns or leases more than 18,000 megawatts
of electric generating capacity globally.  Mirant Corp. filed
for chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-
46590), and emerged under the terms of a confirmed Second
Amended Plan on Jan. 3, 2006.  Thomas E. Lauria, Esq., at White
& Case LLP, represented the Debtors in their successful
restructuring.  When the Debtors filed for protection from their
creditors, they listed US$20,574,000,000 in assets and
US$11,401,000,000 in debts.  The Debtors emerged from bankruptcy
on Jan. 3, 2006.  (Mirant Bankruptcy News, Issue No. 103;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                        *    *    *

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

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

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

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

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

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




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


PETROLEOS DE VENEZUELA: Unit In Talks to Acquire Ypergas Stake
--------------------------------------------------------------
Anibal Rosas -- the president of PDVSA Gas, a unit of state-run
Petroleos de Venezuela told Business News Americas that it is
negotiating with Ypergas, the nation's largest private natural
gas producer, to acquire a 40% stake in the latter.

BNamericas relates that Mr. Rosas said, "I believe that us
having a 40% share is within reason.  We are just starting
talks.  I believe we will have something a little bit more solid
by year's end."

Ypergas is 70% owned by France's Total, 15% owned by Spain's
Repsol YPF, 10.2% owned by Venezuela's Inelectra and 5.3% owned
by Otepi.  According to BNamericas, Ypergas' shares are not
traded.

"Ypergas is interesting.  They are producing nowadays some 180
million cubic feet of gas a day [Mf3/d] and can go to 600Mf3/d.
So we are talking to them about joining up and taking it to
600Mf3/d," BNamericas reports, citing Mr. Rosas.

While Ypergas officials in Caracas refused to comment on the
share acquisition, they had said in May that the government
discussed the issue of an association, BNamericas states.

                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.


* VENEZUELA: Central Bank Says Imports Grew 34.2% to US$7.84 Bln
----------------------------------------------------------------
According to figures released by Venezuela's central bank,
imports grew 34.2% to US$7.84 billion in for the quarter ended
June 30, 2006, El Universal reports.

The central bank attributed the increase to "improving real
economic activity and domestic aggregate demand."

Oil exports were US$16.6 billion, a 43.8% raise attributable to
extraordinary high oil prices.

"On the contrary, non-oil exports fell 10.70%, especially those
from iron ore, steel, chemical, car spare parts  and cement
companies," the central bank said, according to El Universal.

The central bank underscored that international reserves amount
to US$31.84 billion.

                        *    *    *

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


* BOOK REVIEW: The Big Board: A History of the NY Stock Market
-------------------------------------------------------------
Author:     Robert Sobel
Publisher:  Beard Books
Paperback:  412 pages
List Price: US$34.95

Order your personal copy at
http://amazon.com/exec/obidos/ASIN/1893122662/internetbankrupt

First published in 1965, The Big Board was the first history of
the New York stock market.  It's a story of people: their
foibles and strengths, earnestness and avarice, triumphs and
crash-and-burns.  It's full of entertaining anecdotes, cocktail-
party trivia, and tales of love and hate between companies and
investors.

Early investments in North America consisted almost exclusively
of land.  The few securities holders lived in cities, where
informal markets grew, with most trading carried out in the
street and in coffeehouses.  Banking, insurance, and
manufacturing activity increased only after the Revolution.

In 1792, 24 prominent New York businessmen, for who stock- and
bond-trading was only a side business, met under a buttonwood
tree on Wall Street and agreed to trade securities on a common
commission basis.  Five securities were traded: three government
bonds and two bank stocks. Trading was carried out at the
Tontine Coffee-House in a call market, with the president
reading out a list of stocks as brokers traded each in turn.

The first half of the 19th century was heady for security
trading in New York.  In 1817, the Tontine gave way to the New
York Stock and Exchange Board, with a more organized and
regulated system.  Canal mania, which peaked in the late 1820s,
attracted European funds to New York and volume soared to 100
shares a day.  Soon, the railroads competed with canals for
funding.

In the frenzy, reckless investors bought shares in "sheer
fabrications of imaginative and dishonest men," leading an
economist of the day to lament that "every monied Corp. is
'prima facia' injurious to the national wealth, and ought to be
looked upon by those who have no money with jealousy and
suspicion."

Colorful figures of Wall Street included Jay Gould and Jim Fisk,
who in 1869 precipitated one of the worst panics in American
financial history by trying to corner the gold market.  Almost
lynched, the two were hauled into court, where Fisk whined, "A
fellow can't have a little innocent fun without everybody
raising a halloo and going wild."

Then, there was Jay Cooke, who invented the national bond drive
and, practically unaided, financed the Union effort in the Civil
War.  In 1873, however, faulty judgment on railroad investments
led to the failure of Cooke & Co. and a panic on Wall Street.
The NYSE closed for ten days.  A journalist wrote:  "An hour
before its doors were closed, the Bank of England was not more
trusted."

Despite J. P. Morgan's virtual single-handed role in stemming
the Knickerbocker Trust panic of 1907, on his death in 1913,
someone wrote "We verily believe that J. Pierpont Morgan has
done more harm in the world than any man who ever lived in it."

In the 1950s, Charles Merrill was instrumental in changing this
attitude toward Wall Streeters.  His firm, Merrill Lynch,
derisively known in some quarters as "We, the People" and "The
Thundering Herd," brought Wall Street to small investors,
traditionally not worth the effort for brokers.

The Big Board closes with this story.  Asked by a much younger
man what he thought stocks would do next, J.P. Morgan "never
hesitated for a moment.  He transfixed the neophyte with his
sharp glance and replied 'They will fluctuate, young man, they
will fluctuate.'  And so they will."

Robert Sobel died in 1999 at the age of 68.  A professor at
Hofstra University for 43 years, he was a prolific historian of
American business, writing or editing more than 50 books.


                        ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
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Copyright 2006.  All rights reserved.  ISSN 1529-2746.

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           * * * End of Transmission * * *