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

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

          Tuesday, August 29, 2006, Vol. 7, Issue 171

                          Headlines

A R G E N T I N A

ATRIL SA: Deadline for Verification of Claims Is Set for Oct. 5
BLUE WAY: Verification of Proofs of Claim Is Until October 9
COMERCIALIZADORA: Claims Verification Deadline Is on Nov. 6
ECOBOLSA SA: Verification of Proofs of Claim Is Until October 23
EMPRESA DISTRIBUIDORA: Fined for Alleged Regulatory Violations

NUEVO BANCO: Eskenazi Completes ARS142 Million Capitalization
QUIMICA ESTRELLA: Hiring Fin. Experts to Assess Promissory Notes
TELEFONICA DE ARGENTINA: Shares Up After Capital Reduction News
TRANSMELCO SA: Claims Verification Deadline Is on October 23
TRANSPORTADORA DE GAS: Gains ARS88.8 Mil. in Qtr. Ended June 30

B A H A M A S

WINN-DIXIE: Wants Court Okay on Brookshire Grocery Stipulation
WINN-DIXIE: Wants to Reject Store No. 1059's Lease as of Aug. 31

B A R B A D O S

SECUNDA INT: Holders Tender 100% of Outstanding Senior Notes

B E R M U D A

GALVEX HOLDINGS: Wants Chapter 11 Cases Dismissed or Converted
GLOBAL CROSSING: Unit Offering US$96.1 Mil. to Acquire Fibernet
QUANTA CAPITAL: PricewaterhouseCoopers Resigns as Accountants
REFCO INC: Chap. 7 Trustee Authorized to Wind Down Refco Trading
REFCO INC: Ch. 7 Trustee Wants Court OK on Document Sharing Pact

B O L I V I A

COEUR D'ALENE: Issued Temporary Injunction at Kensington Mine
YPF SA: Parent Firm Threatens to Sue Bolivia

B R A Z I L

CIA SIDERURGICA: Inks Project Contract with Two Chinese Firms
NOVELIS INC: Earns US$90 Million in Year Ended December 2005
VARIG S.A.: ILFC Continues to Harp over Unpaid Aircraft Leases
VOLKSWAGEN AG: May Close One Factory in Brazil if Talks Fail

C A Y M A N   I S L A N D S

ATLAS TRADING: Shareholders Final Meeting Set for Sept. 14
BANK INTERNASIONAL: Profit Declines 11% to IDR352 Billion
BANK RAKYAT: Net Profit Ups by 3.41% to IDR2.008 Trillion
BLACK CALICO: Holds Final Shareholders Meeting on Sept. 18
CABLE & WIRELESS: Final Shareholders Meeting Set for Sept. 19

CASCADIA II: Fitch Rates US$300 Million Variable Notes at BB+
GREAT EASTERN: Holding Final Shareholders Meeting on Sept. 19
HIGHLAND GLOBAL: Holding Final Shareholders Meeting on Sept. 14
HIGHLAND GLOBAL MASTER: Final Shareholders Meeting on Sept. 14
JEFFERIES (MASTER): Last Shareholders Meeting Is on Sept. 29

JEFFERIES REAL: Final Shareholders Meeting Is on Sept. 29
PIONEER 2002: Proofs of Claim Must be Filed by September 13

C H I L E

GLOBAL CROSSING: June 30 Balance Sheet Upside-Down by US$86 Mil.

C O L O M B I A

BBVA COLOMBIA: Issuing COP100 Bil. Bonds on Local Stock Market
ECOPETROL: Awards 51% Stake in Cartagena Plant to Glencore

E C U A D O R

PETROECUADOR: Says Amazon Oil Spill Caused by Sabotage

* ECUADOR: Plans to Extend Maturities of US$1 Billion Debts

G U A T E M A L A

BANCO INDUSTRIAL: Posts GTQ163MM First Half 2006 Net Profits

H O N D U R A S

* HONDURAS: CAFTA Implementation Caused Exports to Surge 33%

J A M A I C A

AIR JAMAICA: Changes Flight Schedule Due to Tropical Storm
DELTA AIR: Launches Web Site for Spanish-Speaking Clients
DYOLL INSURANCE: Can't File Annual Reports on Time
NATIONAL COMMERCIAL: Sells 81B King Street for US$37 Million
NATIONAL WATER: Prepared for Tropical Storm Ernesto

SCOTIABANK: Criticizes Development Bank for Balking on Loan
SCOTIABANK: Jamaican Unit Okays Third Dividend Payment
SCOTIABANK: Posts US$1,685 Mil. Third Quarter 2006 Net Profit

M E X I C O

BALLY TOTAL: Enters Confidentiality Accord with Pardus Capital
COGENTRIX ENERGY: S&P Affirms BB- Corporate Credit Rating
COMVERSE TECH: Subsidiary to Acquire Netonomy(R) for US$19 Mil.
CONSTELLATION BRANDS: Grupo Modelo Venture Gets HSR Clearance
GRUPO TMM: Inks US$200MM Securitization Pact with Deutsche Bank

METROFINANCIERA SA: S&P Affirms BB- Counterparty Credit Rating
PETROLEO BRASILEIRO: Eyes Partnership with Petroleos Mexicanos
SATELITES MEXICANOS: Wants Court Approval to Pay Taxes and Fees
UNITED RENTALS: S&P Affirms BB- Corporate Credit Rating

P U E R T O   R I C O

ADELPHIA: Paying US$600 Mil. in Cash & Stock to Restitution Fund
ADELPHIA COMMS: Sells Lots, Frame Tower & Timber for US$412,731
CONSOLIDATED CONTAINER: Delays Filing of Second Qtr. Financials
COVENTRY HEALTH: Earns US$135.5 Million in Quarter Ended June 30
DEVELOPERS DIVERSIFIED: To Launch US$250 Mil. Sr. Notes Offering

MAX RAVE: BCBG Max Azria Acquires 70% Equity from Guggenheim
RES-CARE INC: S&P Raises Corporate Credit Rating to BB- from B+
SANTANDER BANCORP: Declares Cash Dividend of US$0.16 Per Share

T R I N I D A D   &   T O B A G O

DIGICEL LTD: Appoints Kevin White as CEO for Trinidad & Tobago
MIRANT CORPORATION: Gregorys Want US$42-Million Claims Allowed
MIRANT: Lovett Unit Gets Court Approval on New York DEC Order

V E N E Z U E L A

ARVINMERITOR INC: Forms Slovakian Joint Venture with Pyeong Hwa
PETROLEOS DE VENEZUELA: Aims to Become China's Top Oil Supplier
PETROLEOS DE VENEZUELA: Inks Deals with China National Petroleum

* VENEZUELA: Establishes Assembly Plant for Iranian Veheicles


                         - - - - -   


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


ATRIL SA: Deadline for Verification of Claims Is Set for Oct. 5
---------------------------------------------------------------
Maria Luisa Ledesma, the court-appointed trustee for Atril
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Oct. 5, 2006, Infobae reports.

Under Argentine bankruptcy law, Ms. Ledesma is required to
present the validated claims in court as individual reports.
After which, a court based 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
Atril and its creditors.

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

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

The debtor can be reached at:

          Atril S.A.
          Alsina 1760
          Buenos Aires, Argentina

The trustee can be reached at:

          Maria Luisa Ledesma
          Avenida Cordoba 1351
          Buenos Aires, Argentina


BLUE WAY: Verification of Proofs of Claim Is Until October 9
------------------------------------------------------------
Court-appointed trustee Fernando Greco verifies creditors'
proofs of claim against bankrupt company Blue Way S.A. until
Oct. 9, 2006, La Nacion reports.

Under Argentine bankruptcy law, Mr. Greco is required to present
the validated claims in court as individual reports.  Court No.
10 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 Blue Way and its creditors.

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

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

Blue Way was forced into bankruptcy at the behest of Marianela
Dal Parto, which it owes US$5,663.73.

Clerk No. 19 assists the court in the case.

The debtor can be reached at:

          Blueway S.A.
          Acevedo 648
          Buenos Aires, Argentina

The trustee can be reached at:

          Fernando Greco
          Arenales 2365
          Buenos Aires, Argentina


COMERCIALIZADORA: Claims Verification Deadline Is on Nov. 6
-----------------------------------------------------------
Noemi Zulema Vivares, the court-appointed trustee for
Comercializadora de Multiemprendimientos SA's reorganization
proceeding, will verify creditors' proofs of claim until Nov. 6,
2006, La Nacion reports.

Under Argentine bankruptcy law, Ms. Vivares is required to
present the validated claims in court as individual reports.
Court No. 5 of Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Comercializadora de
Multiemprendimientos and its creditors.

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

Ms. Vivares will also submit general report that contains an
audit of Comercializadora de Multiemprendimientos' accounting
and banking records.  The report submission dates have not been
disclosed.

Creditors will vote on a settlement proposed by Comercializadora
de Multiemprendimientos on Sept. 10, 2007.

Comercializadora de Multiemprendimientos has assets worth
US$7,316,471.74 and liabilities of US$5,108,193.18.  Clerk No. 9
in the company's bankruptcy case assists Court No. 5.

The debtor can be reached at:

          Comercializadora de Multiemprendimientos SA
          Paraguay 435
          Buenos Aires, Argentina

The trustee can be reached at:

          Noemi Zulema Vivares
          Avenida Cordoba 2626
          Buenos Aires, Argentina


ECOBOLSA SA: Verification of Proofs of Claim Is Until October 23
----------------------------------------------------------------
Marta Susana Polistina, the court-appointed trustee for Ecobolsa
SA's bankruptcy proceeding, verifies creditors' proofs of claim
until Oct. 23, 2006, Infobae reports.

Ms. Polistina will present the validated claims in court as
individual reports on Dec. 4, 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 Ecobolsa 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 Ecobolsa's accounting
and banking records will follow on March 5, 2007.

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

The trustee can be reached at:

          Marta Susana Polistina
          Cramer 2175
          Buenos Aires, Argentina


EMPRESA DISTRIBUIDORA: Fined for Alleged Regulatory Violations
--------------------------------------------------------------
Empresa Distribuidora y Comercializadora Norte SA, aka Edenor,
and Empresa Distribuidora Sur SA, aka Edesur, have been fined a
total of more than ARS568,000 by the Ente Nacional Regulador de
la Electricidad for not having respected the regulations for the
distribution of electrical energy.

Edenor was fined for ARS386,380, while Edesur was fined with
ARS181,677.

                        *    *    *

As reported on Aug. 9, 2006, Standard & Poor's assigned raBB
ratings on Empresa Distribuidora y Comercializadora Norte SA's
debts:

   -- Global program of Obligaciones Negociables for
      US$600,000,000;

   -- Bond  Bono Par a Tasa Fija, at fixed rate for
      US$123,700,000;

   -- Bond "Bono Descuento a Tasa Fija," discount bond at fixed
      rate, for US$240,000,000; and

   -- Bond "Bono Par a Tasa Variable," variable rate, for
      US$12,300,000.

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


NUEVO BANCO: Eskenazi Completes ARS142 Million Capitalization
-------------------------------------------------------------
The Eskenazi group completed a capitalization of ARS142 million
in Nuevo Banco de Entre Rios and has disclosed an additional
ARS10 million to be invested in infrastructure and technology.

Since last year, the bank has registered an increase of 70% in
the amount of loans and 30% in the amount of deposits.

As part of Eskenazi's future plans, the group plans to open a
new line of credit for more than ARS250 million.

The Eskenazi group controls the banks of San Juan, Santa Cruz
and Santa Fe as well.

Nuevo Banco de Entre Rios SA, had been under the control of the
government since early 2002, when French banking conglomerate
Credit Agricole SA left Argentina in the middle of the country's
financial crisis.  Nuevo Banco de Santa Fe acquired the bank in
August 2005.


QUIMICA ESTRELLA: Hiring Fin. Experts to Assess Promissory Notes
----------------------------------------------------------------
The directors of Quimica Estrella have decided to hire financial
assesors in order to analyse the situation of the company in
relation to the Promissory Notes emitted in the middle of 2004
by the company and by one of its units -- Corporacion General de
Alimentos SA.

As a result of the first analysis, the holders of these notes
were invited to meetings in order to let them know the financial
situation of the company and propose to them a restructuring in
the terms and conditions agreed for those debts.

The directors believe that this will not affect the normal
operation of the company in relation with the rest of the
creditors, providers and employers.

Quimica Estrella, at the end of August 2004, gave Promissory
Notes in exchange for refinanced financial credits from banks.

                   About Quimica Estrella

Quimica Estrella manufactures and distributes chemical,
medicinal, veterinary, agricultural products, healing items,
dressing table items, food products, and other related items.
Other activities include exporting, importing, purchasing and
selling said products and consigning, commissioning,
representing, mandating, servicing, distributing, and marketing
of these products.

Quimica Estrella incurred ARS5.244 million net loss for the year
ended Mar. 31, 2005, compared with ARS13.089 million net loss
for the year ended Mar. 31, 2004.


TELEFONICA DE ARGENTINA: Shares Up After Capital Reduction News
---------------------------------------------------------------
Dow Jones Newswires reports that the residual shares of
Telefonica de Argentina SA listed in the Buenos Aires Stock
Exchange have posted a 50% gain after the company announced a
capital reduction.  

The Argentine telecom provider called a shareholders' meeting on
September 7 for the cancellation of shares equivalent to as much
as ARS1.74 billion (US$566.9 million), Dow Jones says.

The share cancellation is aimed at improving the company's
capital structure and to give shareholders the chance of
recovering part of their original amount invested.  

The decision has been anticipated a couple of weeks ago, and
includes the payment of ARS0.60 for every share of nominal value
ARS1.00, and the giving of four new shares for each existing
share.  As a result, the company will reduce capital by 60%.

During the past few years, Telefonica de Argentina has slowy
recovered from its financial slump.  The company and the
government have also been able to renegotiate contracts, in
which the company agreed to suspend the demand presented at the
international arbitration court.

At present, Telefonica de Argentina can't pay dividends as it
does not have the necessary amount of legal reserves required by
law in order to distribute benefits among members.  Instead of
paying dividends, the company opted for the capital reduction to
give back part of the investments made by shareholders.

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

                        *    *    *

Moody's Investors Service upgraded on May 27, 2006, the ratings
on Telefonica de Argentina, S.A.'s Corporate Family Rating
(foreign currency) to B2 from B3 with stable outlook; Foreign
currency issuer rating to B2 from B3 with stable outlook; and
Senior Unsecured Rating (foreign currency) to B2 from B3 with
stable outlook.

                        *    *    *

Standard & Poor's Ratings Services affirmed on Aug. 10, 2006,
its 'B' long-term foreign currency corporate credit rating on
the Argentine telecom incumbent Telefonica de Argentina S.A.,
following the company's announcement of a proposal from its
Board of Directors of a capital reduction of ARS1,048 million
(equivalent to approximately US$340 million) to optimize its
capital structure.  This transaction is subject to the approval
of the Argentine Stock Exchange and the Securities Exchange
Commission (Comision Nacional de Valores).  S&P said the outlook
is stable.


TRANSMELCO SA: Claims Verification Deadline Is on October 23
------------------------------------------------------------
Court-appointed trustee Abel Latendorf verifies creditors'
proofs of claim against bankrupt company Transmelco S.A. until
Oct. 23, 2006.

Under Argentine bankruptcy law, Mr. Latendorf is required to
present the validated claims in court as individual reports.
Court No. 14 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 Transmelco and its
creditors.

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

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

Transmelco was plunged into bankruptcy at the request of
Federico Segovia.

Clerk No. 28 assists the court in the case.

The debtor can be reached at:

          Transmelco SA
          Mexico 628
          Buenos Aires, Argentina

The trustee can be reached at:

          Abel Latendorf
          Piedras 153
          Buenos Aires, Argentina


TRANSPORTADORA DE GAS: Gains ARS88.8 Mil. in Qtr. Ended June 30
---------------------------------------------------------------
Transportadora Gas del Sur SA gained ARS88.8 million in the
three months ended June 30, 2006, accumulating a gain of
ARS179.3 million in the semester.

The gain resulted to a 39% increase from the ARS63.8 million
obtained during the same period in 2005.  The result translates
to a benefit of US$0.112 per share.

At June 30, 2006, Transporatadora de Gas del Sur's balance sheet
showed total assets of ARS6,113,660,000 and total liabilities of
ARS2,669,633,000.

                        *    *    *

As reported on April 27, 2006, Fitch made rating changes to
Transportadora de Gas del Sur SA in conjunction with the roll
out of Issuer Default Ratings and Recovery Ratings for Latin
America Corporates:

   Foreign Currency

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

   Local Currency

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

   US$614 million, Senior Unsecured Notes due 2010 and 2013

     -- Previous Rating: 'B-'
     -- New IDR: 'B/RR4'




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


WINN-DIXIE: Wants Court Okay on Brookshire Grocery Stipulation
--------------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates and
Brookshire Grocery Company ask the U.S. Bankruptcy Court for the
Middle District of Florida to approve their stipulation.

Winn-Dixie Stores, Inc., and its debtor-affiliates and
Brookshire Grocery Company are parties to a lease for Store No.
2435.  A July 13, 2006, Court order authorized the Debtors to
reject the Lease.

On July 24, 2006, Brookshire filed proofs of claim against
Winn-Dixie Stores, Inc., and Winn-Dixie Montgomery, Inc., for
rejection damages.  Both claims assert US$456,100.

D.J. Baker, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP,
in New York, relates that the Debtors and Brookshire have
resolved the allowance and treatment of the claims under the
proposed Joint Plan of Reorganization.  The parties agree that:

   (1) the Winn-Dixie Stores Claim will be allowed as a Class 13
       Landlord Claim for US$456,100;

   (2) upon the effective of the Plan incorporating the
       substantive consolidation compromise, the Winn-Dixie
       Montgomery Claim will be deemed disallowed and expunged
       without need for further Court order; and

   (3) if the Plan is not confirmed or the effective date does
       not occur, the two claims will not be disallowed,
       expunged or otherwise prejudiced.

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 to Reject Store No. 1059's Lease as of Aug. 31
----------------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates ask authority
from the United States Bankruptcy Court for the Middle District
of Florida to reject the Store No. 1059 Lease as of Aug. 31,
2006.  The Debtors also ask the Court to set a bar date for
Windward to file any rejection damage claim arising in
connection with the Lease.

Winn-Dixie Stores, Inc., and Windward Partners IV, LP, are
parties to a lease dated July 29, 1994, for the Debtors' Store
No. 1059 located in Taylors, South Carolina.  Pursuant to the
Lease, Winn-Dixie pays Windward US$422,000 in rent each year.

In August 2003, Winn-Dixie subleased the Premises to Pro-Fit
Management, Inc.  Under the Sublease, Pro-Fit is required to pay
Winn-Dixie monthly rent at graduated rates between US$100,000
and US$250,000 a year.

After Winn-Dixie's bankruptcy filing, Pro-Fit failed to pay the
rent so Winn-Dixie terminated the Sublease effective
Aug. 8, 2006.  However, Pro-Fit remains in possession of the
Premises.

According to Cynthia C. Jackson, Esq., at Smith Hulsey & Busey,
in Jacksonville, Florida, the Debtors no longer need the store
and that even when paid by Pro-Fit, the rent is not sufficient
to cover the payments due under the Lease.  Rejection of the
Lease will save the Debtors approximately US$422,000 a year.

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


SECUNDA INT: Holders Tender 100% of Outstanding Senior Notes
------------------------------------------------------------
Secunda International Limited disclosed the results to date of
its cash tender offer and consent solicitation for any and all
of its outstanding US$125,000,000 aggregate principal amount of
Senior Secured Floating Rate Notes due 2012 (CUSIP No.
81370FAB4).

As of 5:00 p.m., New York City Time, on August 25, 2006, which
was the deadline for holders to tender their Notes in order to
receive the Early Tender Payment in connection with the Tender
Offer, tenders and consents had been received from holders of
US$125.0 million in aggregate principal amount of the Notes,
representing 100.0% of the outstanding Notes.

The tender offer is scheduled to expire at 5:00 p.m., New York
City Time, on September 12, 2006, unless extended or earlier
terminated.  Subject to the satisfaction or waiver of the
conditions to consummation of the Tender Offer, the "Settlement
Date" will be promptly after the Expiration Time, and is
expected to be the business day following the Expiration Time.

As previously reported, 100.0% of the Notes were tendered prior
to the initial Consent Time, which was 5:00 p.m., New York City
Time on July 12, 2006.  After receiving the approval of the
Holders of at least a majority of the outstanding principal
amount of Notes, we executed the Supplemental Indenture to
effect the proposed amendments to the Indenture governing the
Notes.  However, the Supplemental Indenture will become
operative only upon our purchase, pursuant to the Tender Offer,
of more than a majority in principal amount of the outstanding
Notes.  The proposed amendments to be effected by the
supplemental indenture, among other things, eliminate
substantially all of the restrictive covenants and certain
events of default in the indenture governing the Notes.  Notes
tendered prior to the Early Tender Time may no longer be
withdrawn and consents delivered prior to the Early Tender Time
may no longer be revoked.

The Tender Offer is subject to the satisfaction of certain
conditions, including the receipt of tenders from holders of a
majority in principal amount of the outstanding Notes, entering
into a new credit facility or another financing vehicle that
provides the Company with sufficient cash to fund the Tender
Offer, the successful pricing of the initial public offering of
the Company's common shares in Canada, and satisfaction of
customary conditions.

The complete terms and conditions of the Tender Offer are
described in the Offer to Purchase and Consent Solicitation
Statement of the Company dated June 27, 2006, and the Offer to
Purchase and Consent Solicitation Statement Supplement of the
Company dated August 14, 2006, copies of which may be obtained
by contacting:

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

                      -- or --
     
                 Banc of America Securities LLC,
                 High Yield Special Products
                 Exclusive Dealer Manager
                 Tel: (212) 847-5836 (collect)
                      (888) 292-0070 (U.S. toll-free)

                 About Secunda International

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

                        *     *     *

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




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


GALVEX HOLDINGS: Wants Chapter 11 Cases Dismissed or Converted
--------------------------------------------------------------
Galvex Holdings Limited asks the U.S. Bankruptcy Court for the
Southern District of New York to dismiss its chapter 11 case or,
in the alternative, convert its case to a chapter 7 liquidation
proceeding.

Lori R. Fife, Esq., at at Weil, Gotshal & Manges, LLP, relates
that Galvex is "hopelessly" insolvent, has no assets remaining
to reorganize or sell, and has no ability to file and confirm a
plan of liquidation or pay any administrative expenses.

As reported in the Troubled Company Reporter on May 30, 2006,
the Court authorized Galvex and its debtor-affiliates to sell
substantially all of their assets to SPCP Group LLC.  The
purchase was effected in exchange for the discharge of the
Debtors' US$192 million debt to SPCP.  SPCP acquired the shares
of Galvex's subsidiaries:

           -- Galvex Estonia;
           -- Galvex Intertrade; and
           -- Galvex Trade.

In accordance with the sale order, the Court further ruled that
the Chapter 11 cases of the three debtor-subsidiaries will be
dismissed effective upon the closing of the sale.

The Official Committee of Unsecured Creditors supports Galvex's
request only to the extent that the Motion seeks conversion of
the Debtor's case to a case under chapter 7 of the Bankruptcy
Code.

                     About Galvex Holdings

Headquartered in New York City, New York, Galvex Holdings
Limited -- http://www.galvex.com/-- and its affiliates operate  
the largest independent galvanizing line in Europe.  The Debtors
have offices in New York, Tallinn, Bermuda, Finland, Ukraine,
Germany and the United Kingdom.  The company and four of its
affiliates filed for chapter 11 protection on Jan. 17, 2006
(Bankr. S.D.N.Y. Lead Case No. 06-10082).  Galvex Capital, LLC,
is represented by David Neier, Esq., at Winston & Strawn LLP,
and Gerard DiConza, Esq., at DiConza Law, P.C.  Galvex Holdings
Ltd. and the other debtor-affiliates are represented by David
Neier, Esq., at Winston & Strawn LLP, and Lori R. Fife, Esq.,
Marcia L. Goldstein, Esq., and Shai Waisman, Esq., at Weil,
Gotshal & Manges, LLP.  John P. McNicholas, Esq., and Thomas R.
Califano, Esq., at DLA Piper Rudnick Gray Cary US LLP, represent
the Official Committee of Unsecured Creditors.  When the Debtors
filed for protection from their creditors, they estimated assets
and debts of more than US$100 million.


GLOBAL CROSSING: Unit Offering US$96.1 Mil. to Acquire Fibernet
---------------------------------------------------------------
Global Crossing disclosed that its subsidiary, GC Acquisitions
UK Limited has made a cash offer to acquire all of the issued
and to-be-issued shares of Fibernet Group Plc, a provider of
specialist telecommunications networks to large enterprises and
other telecommunications and Internet service companies.

The offer values the issued and to-be-issued shares of Fibernet
at approximately US$96.1 million (GBP50.6 million) and has been
unanimously recommended by Fibernet's board of directors.  If
they accept the offer, Fibernet shareholders would receive 78
pence (approximately US$1.48) per share in cash at closing of
the transaction.  Fibernet's directors have irrevocably
undertaken to accept the offer with respect to all of their
direct and beneficial holdings.  In addition, certain
institutions have also agreed to accept the offer, subject to
conditions.  The directors' shares combined with the
institutional shares represent approximately 39% of Fibernet's
outstanding shares.

"This is a great transaction for our company and for Fibernet,"
said John Legere, chief executive officer of Global Crossing.  
"Global Crossing and Fibernet have complementary businesses in
the UK.  The opportunity to combine and grow these businesses is
compelling and exciting for us.  I look forward to a quick and
seamless integration upon closing and to better serving existing
customers and welcoming new customers with the expanded range of
products we will offer."

Global Crossing is executing a strategy focused on its "invest
and grow" segment, namely that part of the business serving
multinational enterprises and service providers with innovative
IP services.  Global Crossing believes that this transaction
will accelerate its development by increasing and diversifying
Global Crossing's customer base of "invest and grow" clients in
the United Kingdom through the addition of Fibernet's marquee
roster of UK corporate enterprise and carrier customers.  
Examples of these new customers include the Bank of England,
Citigroup, IBM and Carphone Warehouse.

Global Crossing and Fibernet have complementary long haul
networks. This complementary network infrastructure will
facilitate the integration, allowing the combined company to
offer Global Crossing's broad array of innovative IP- based
service offerings to Fibernet's current customer base.  It will
also result in the creation of a strong market position from
which to expand this list of enterprise customers.

Charles McGregor, chief executive of Fibernet said, "In an
increasingly competitive market, where the consolidation of two
complementary businesses can deliver a stronger combined
company, I believe that this union will provide an enhanced
position for the interests of stakeholders overall."

"The acquisition of Fibernet will be a terrific example of how
we are building upon Global Crossing's unique value proposition
and growing our business through targeted acquisitions to
accelerate our organic business plan," added Mr. Legere.  "As
the telecommunications industry continues to consolidate, we'll
capitalize on select opportunities to augment our customer base,
extend our reach and capabilities, and grow as the nimble,
flexible IP- based telecommunications leader that is today's
Global Crossing."

The acquisition is expected to close in the fourth quarter of
2006 and is conditioned on acceptance by Fibernet shareholders
and regulatory approvals.  Additional detail on the transaction
will be forthcoming upon completion of the offer following the
procedures established by the City Code on Takeovers and Mergers
in the United Kingdom.

Hawkpoint Partners Limited is acting as sole financial advisor
on the transaction to Global Crossing Limited and GC
Acquisitions UK.

                         About Fibernet

Fibernet provides its services from a national fiber network in
the UK and also from its metropolitan networks in London,
Bristol, Birmingham, Edinburgh, Frankfurt, Glasgow, Leeds,
Manchester and Reading.  The company has more than 100 points of
presence in the UK and an additional 12 in Frankfurt, Germany.
In the financial year ended August 31, 2005, Fibernet reported
revenue of GBP47.9 million and Earnings Before Interest, Taxes,
Depreciation and Amortization of GBP15.9 million, or US$91.0
million and US$31.2 million, respectively, at current exchange
rates.  These financial results were previously reported by
Fibernet in accordance with UK Generally Accepted Accounting
Principles.

                       About Global Crossing

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.


QUANTA CAPITAL: PricewaterhouseCoopers Resigns as Accountants
-------------------------------------------------------------
On Aug. 15, 2006, PricewaterhouseCoopers LLP resigned as the
independent registered public accounting firm of Quanta Capital
Holdings Ltd.

The accounting firm declined to give its reasons for the
termination of its services.

Quanta has hired Raleigh, North Carolina-based Johnson Lambert &
Co. L.L.P. to replace PwC.  

                      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.


REFCO INC: Chap. 7 Trustee Authorized to Wind Down Refco Trading
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
gave Albert Togut, the Chapter 7 trustee for Refco, LLC's
estate, authority to complete a wind-down and dissolution of
Refco Trading Services, LLC's business operations in accordance
with Delaware laws.

As reported in the Troubled Company Reporter on Aug. 4, 2006,
Refco Trading was formed in 2003 when Refco, Inc., acquired
United Kingdom-based MacFutures, a day-trading business engaging
in commodity futures and options.

Refco Trading followed a similar model to MacFutures and became
Refco LLC's proprietary trading subsidiary.  Most Refco Trading
employees traded using accounts funded by Refco LLC, and only a
few workers had any customer accounts.

Like the Refco Trading proprietary accounts, any third-party
customer accounts were settled on a daily basis to the extent
that the business day would rarely, if ever, end with Refco
Trading having any open trade positions, Scott E. Ratner, Esq.,
at Togut, Segal & Segal LLP, in New York, relates.

Before the Petition Date, Refco Trading had over 100 employees
and business operations in Montreal, Canada; Chicago, Illinois;
and Miami, Florida.  Refco Trading hired employees, trained them
using a proprietary training system, and provided an account
with which to trade.  Most of the employees were paid a flat
salary and traded on an account that was settled on a daily
basis.

The traders also received profit percentages of successful
trades as additional remuneration.  Consistent with their
Acquisition Agreement, Man Financial, Inc., has hired most or
all of Refco Trading's former employees.

Refco Trading ceased all trading operations after the Petition
Date.

Refco Trading currently holds approximately US$1,600,000 in
cash.  The company's liabilities are uncertain, but Mr. Togut
believes that there may be intercompany obligations.  Refco
Trading participated in an intercompany cash management system
that paid the company's obligations to outside sources and
repaid the obligations with intercompany receivables.  Mr. Togut
also believes that there may be liabilities to Canadian taxing
authorities.

Specifically, Mr. Togut proposes to direct certain actions as
are necessary and appropriate to Refco Trading's dissolution and
wind-down, including:

   (a) preparation of accounting reports, statements of receipts
       and disbursements and income statements;

   (b) preparation, signing, and filing of any tax returns in
       the United States or Canada;

   (c) appearances before any governmental authority as may be
       necessary to effectuate a legal wind-down;

   (d) adjudication and resolution of any claims asserted
       against Refco Trading and authorization for payment of
       any allowed claims from Refco Trading's assets to the
       extent required by law; and

   (e) performing any other related tasks as may be necessary to
       effectuate a proper and legal wind-down and dissolution.

Mr. Togut also seeks to pay, without further Court order, all
necessary costs and expenses incurred in connection with the
wind-down, provided that any payments will be made from Refco
Trading's assets, and not those of Refco LLC's estate.

Furthermore, Mr. Togut asks Judge Drain for qualified immunity
from personal liability for his actions in furtherance of Refco
Trading's wind-down.

According to Mr. Togut, Refco LLC's ownership interest in Refco
Trading is an asset of its Chapter 7 estate.  To the extent that
Refco Trading is solvent, its remaining assets will inure to
Refco LLC's benefit.  Therefore, Refco Trading's wind-down and
dissolution pursuant to Delaware laws is consistent with Mr.
Togut's duty to "collect and reduce to money the property of the
estate" under Section 704(a)(1) of the Bankruptcy Code.

Considering that the scope of Refco Trading's assets and
liabilities are unknown, Mr. Togut insists that he must wind
down Refco Trading to determine whether there are any residual
assets that will flow to Refco LLC's estate.

                      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: Ch. 7 Trustee Wants Court OK on Document Sharing Pact
----------------------------------------------------------------
Refco, Inc., and its debtor-affiliates and Man Financial Inc.
entered into an acquisition agreement, dated as of November 13,
2005, and related buyer transition services agreement and seller
transition services agreement, in connection with the sale of
Refco, LLC's futures commission merchant business to Man.

The Court's orders authorizing the Debtors to enter into the
Acquisition Agreement and the Transition Services Agreements
establish obligations and procedures relating to Man and Albert
Togut, the Chapter 7 trustee overseeing the liquidation of Refco
LLC's estate, to obtain access to data, information and
documents held by the other party relating to Refco LLC's
business purchased by Man.

Since the closing of the Sale, both the Refco LLC Trustee and
Man have followed the protocol established by the Transition
Services Agreements, and have reached other informal protocols,
to obtain access to data, information and documents held by the
other party, and both parties anticipate that they will continue
to need access for the foreseeable future.

The Transition Services Agreements are due to expire by their
terms on Aug. 22, 2006 -- 270 days after the closing of the Sale
on Nov. 25, 2005.

Mr. Togut and Man have negotiated a more permanent arrangement
for the parties to gain access to data, information and
documents in the possession of the other party after the
expiration of the Transition Services Agreements, and to
formalize the protocols under which the parties have been
operating.

Mr. Togut seeks the Court's authority to enter into a facilities
management agreement with Man.

The salient terms of the Facilities Management Agreement are:

   (a) The Trustee will maintain documents and other information
       relating to Refco LLC's business prior to the Sale
       closing that were not part of the Acquired Assets and are
       in the possession or control of the Trustee, through the
       earlier of:

          (i) the date the Court enters an order or final decree
              closing Refco LLC's case;

         (ii) the date an Other Termination Event occurs; or

        (iii) the date the Court enters an order otherwise
              terminating the parties' obligations under the
              Facilities Management Agreement;

   (b) The Trustee will provide Man access to the Refco Records
       for:

          (i) the purpose of Man responding to any Information
              Request directed to Man;

         (ii) any other purpose reasonably related to Man's
              operation of the business and assets acquired from
              Refco LLC and its affiliates.  The Trustee will
              retrieve and provide to Man electronically copies
              of Refco e-mail upon written request from Man.

   (c) Man will maintain documents and other information
       relating to Refco LLC's business that were part of the
       Acquired Assets and are in the possession or control of
       Man through the Termination Date;

   (d) Man will provide the Trustee access to the Man Records
       for purposes of the Trustee:

          (i) responding to any Information Request directed to
              the Trustee or Refco LLC; or

         (ii) otherwise accessing, reviewing, retrieving or
              photocopying Man Records as the Trustee determines
              is necessary; and

   (e) Man will provide "Information Retrieval Services" to the
       Trustee to enable him to:

          (i) respond to any Information Request directed to the
              Trustee or Refco LLC; or

         (ii) otherwise access, review, retrieve or photocopy
              Records as the Trustee determines is necessary.

Each party will bear its own costs in obtaining access to the
party's Records.  However, Refco LLC will reimburse Man for the
costs arising from Man's employees or independent contractors
performing Information Retrieval Services at the effective
hourly rates of the employees or contractors performing those
services.

Man will reimburse Refco LLC for costs arising from the Chapter
7 Debtor's employees retrieving and providing electronic copies
to Man of Refco E-mail at the effective hourly rates of the
employees performing those services.

Jerry L. Switzer, Esq., at Jenner & Block LLP, in Chicago,
Illinois, explains that the Refco LLC Trustee will require
access to the Records for purposes of responding to Information
Requests served on the Trustee or Refco LLC, and otherwise
administering the Chapter 7 Debtor's estate for the foreseeable
future.

Mr. Switzer notes that Mr. Togut needs Man to perform the
Information Retrieval Services because Refco LLC no longer has
any employees, except to the limited extent that employees of
the Chapter 11 Debtors are allocated on a part time basis to the
Chapter 7 Debtor.

                      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)




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


COEUR D'ALENE: Issued Temporary Injunction at Kensington Mine
-------------------------------------------------------------
Coeur d'Alene Mines Corp. has been notified that a two-judge
motions panel in the U.S. Ninth Circuit Court of Appeals in San
Francisco has issued a temporary injunction against some
construction activities at the Kensington Gold mine site, near
Juneau Alaska, at the request of plaintiffs Southeast Alaska
Conservation Council and the Sierra Club.  The temporary
injunction only affects work in the tailings facility area.

The temporary injunction applies pending Ninth Circuit Court
expedited review of the plaintiffs' appeal of the recent Alaska
Federal District Court decision that dismissed the plaintiffs'
complaint and upheld the U.S. Army Corps of Engineers permit
issued to Coeur for the Kensington tailings facility.  The
temporary injunction does not address the merits of the
plaintiffs' appeal.

Dennis E. Wheeler, Chairman, President and Chief Executive
Officer commented, "While we are disappointed with the temporary
injunction, we continue to believe we will prevail on the
merits.  The project permits have withstood numerous
administrative and legal challenges, and we will continue to
vigorously defend the permits that have been granted and upheld
by the federal district court."

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

                        *    *    *

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


YPF SA: Parent Firm Threatens to Sue Bolivia
--------------------------------------------
YPF SA's parent company, Repsol YPF, told Reuters that it would
file a lawsuit against the government of Bolivia if the latter
continued its unjustified and repeated judicial persecution
against the firm.

Repsol said in a statement, "After the unjustified search of
Andina offices by the Bolivian government on Friday ... Repsol
announces today it will take legal action in defence of its
rights if the systematic persecution of the company by Bolivia'a
public prosecutor continues.  These ... acts force Repsol to
consider taking legal action at all legal levels, national and
international."

Reuters reports that three Bolivian prosecutors and armed police
raided Repsol unit Andina, searching for documents relating to
an illegal natural gas sale contract with Petroleo Brasileiro
aka Petrobras.

Samuel Encinas, a lawyer of Repsol was arrested after the
company refused to provide documentation of its contracts with
Petrobras, the Associated Press relates, citing Attorney General
Jose Centenaro.

Attorney Centenaro told AP, "This seizure was ordered by a
judge."

According to AP, the government alleged that Repsol signed
secret contracts with Petrobras to sell Bolivian natural gas to
Brazil at a price lower than the official rate agreed between
the two nations.

AP underscores that Andres Soliz, the hydrocarbons minister of
Bolivia has estimated that the Bolivian government lost
US$161 million due to the alleged sales.

A Repsol official in Bolivia, who asked not to be named because
the firm had not authorized public comment, told AP that the
raid was irregular and disproportionate.  Meanwhile, the
contract between Repsol was not secret and did no damage to
Bolivia.

"In these conditions we believe it is very difficult to maintain
the necessary dialogue with Bolivian institutions to find a
stable framework which allows us to undertake the strong
investment needed to develop the oil industry," Repsol told Dow
Jones.

                        *    *    *

On June 20, 2005, Moody's Investors Service upgraded the ratings
of Spanish-Argentine oil company Repsol YPF's local subsidiary
YPF S.A. Moody's upgraded YPF's senior unsecured rating to Ba3
from B1 and the unit's domestic currency issuer rating to Baa2
from Baa3.

YPF's foreign currency issuer rating of Caa1 remained unchanged,
as it is constrained by the sovereign ceiling of Argentina.
YPF's Corporate Family Rating (formerly known as the senior
implied rating) is aligned with the foreign currency issuer
rating at Caa1.




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


CIA SIDERURGICA: Inks Project Contract with Two Chinese Firms
-------------------------------------------------------------
Companhia Siderurgica Nacional aka CSN told the Bovespa stock
exchange that it has entered into equipment supply and project
contract with two companies from China, Business News Americas
reports.

BNamericas relates that CSN Cimentos, CSN's cement subsidiary,
has signed the contract with China's Shenyang Heavy Machinery
Group and Chengdu Design Institute for its Minas Gerais clinker
plant.

The project would be installed in Arcos, BNamericas states.

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)'.


NOVELIS INC: Earns US$90 Million in Year Ended December 2005
------------------------------------------------------------
Novelis Inc. filed its Annual Report on Form 10-K, including its
audited financial results for the year ended December 31, 2005.  
The Company also gave its comment on the challenging metal price
environment and disclosed its hedging strategy and special items
affecting its outlook for 2006.

Net sales in 2005 were US$8.4 billion compared with
US$7.8 billion in 2004, an increase of 7.8%.  Rolled product
shipments were 2,873 kilotons, compared with 2,785 kt shipped in
2004, an increase of 3.2%.  Net income was US$90 million
compared with US$55 million in 2004.  Earnings per share were
US$1.21 for the full year 2005 compared with US$0.74 for the
full year 2004.

                    Financial Restatements

Novelis completed an extensive financial restatement and review
process in May, at which time the Company restated its
consolidated and combined financial statements for the first and
second quarters of 2005 and reported its completed financial
results for the third quarter of 2005.  As a result of this
rigorous process, which required extensive reviews related to
the Company's spin-off, the filing of the Company's 2005 annual
report was delayed, and its quarterly reports for the first and
second quarters of 2006 have also been delayed.  Novelis is
working toward filing its 2006 first quarter report in mid-
September, and expects to be current with its financial
reporting with the filing of its third quarter report during the
fourth quarter.

"Our first year as an independent company was both challenging
and rewarding, as we established Novelis as the world's leading
producer of aluminum rolled products," said Brian Sturgell,
President and Chief Executive Officer.  "By several key
financial measures -- revenue, net income, cash flow and debt
reduction -- our operations performed well in 2005 within robust
Asian, North American and Latin American markets and a somewhat
softer European market.

"We entered 2006 with strong operating fundamentals in place,"
added Mr. Sturgell, "and we continue to pursue restructuring
opportunities, along with product portfolio upgrades, throughout
Novelis. In addition, we are making significant progress in
structurally reducing our working capital across all four
operating segments.

"However, the metal price ceilings related to some of our can
sheet sales are having a significant negative impact on our
performance in 2006," Mr. Sturgell continued.  "We continue to
work toward removing the remaining contract price ceilings,
which had been commonplace in the industry but have become
outdated due to structural changes in the market. At the same
time, we are focused on improving the comprehensive hedging
program we put in place for 2006 to help mitigate the impact of
sustained high metal prices, and we are currently addressing the
performance of our internal hedges under these circumstances.  
As a result of these metal-related items, as well as the costs
of our restatement and review process, we expect that 2006 will
be a transitional year.  While we anticipate that 2006 cash
flows will continue to be strong, we expect to incur a net loss
for the year. However, for 2007, we foresee continued strong
cash flows and material debt reductions.  We expect to give 2006
and 2007 earnings and cash flow guidance in late September
2006."

"Looking forward, we will benefit from steps we have taken to
strengthen the organization in a number of key areas," said
Sturgell. "We have improved financial and risk management
resources in place, including a new Chief Financial Officer with
significant public company, hedging and derivatives experience,
as well as a new Controller.  Over the past few months, we have
also appointed two new members to our Board of Directors,
introduced a significant new technology in line with our
strategy to improve our product portfolio, and have put in place
a number of new initiatives to better manage challenges and
opportunities as we continue to build Novelis into a company
dedicated to the high-value conversion of aluminum rolled
products."

            Special Items Affecting Outlook for 2006

Metal timing (or metal price lag) had a positive effect on the
Company's financial results in the first half of 2006.  However,
due to a number of special items, Novelis expects to incur a net
loss for the year ending December 31, 2006.  These special items
that will negatively impact our results include:

   -- the impact and related effects of unfavorable metal
      prices which will primarily impact the second half of the
      year,

   -- foreign currency exchange rates beyond the Company's
      ability to mitigate such exposures,

   -- changes in the fair market value of its derivatives, and

   -- the substantial expenses related to its restatement and
      review process.

              Financial Impact of High Metal Prices

A portion of Novelis' can sheet sales are contractually subject
to metal price ceilings which, unless adjusted, prevent the
Company from passing through the total increase in metal prices
to those customers when the metal prices are above the ceiling.  
In 2005, such sales represented approximately 20 percent of
Novelis' total net sales.  In addition, some contracts result in
a timing difference (or metal price lag) between the metal
prices Novelis pays under its purchase contracts and the metal
prices it charges to customers.  During such periods, the
Company bears the additional cost or benefit of metal price
changes.

Primarily for the second half of 2006, Novelis' hedging strategy
will not fully cover its exposure relative to the metal price
ceilings. This is largely a result of:

   i) the unavailability of affordable call options with strike
      prices that directly coincide with the metal price
      ceilings; and

  ii) receiving less internal hedge benefit from the Company's
      recycling operations than expected due to the fact that
      the spread between the price of used beverage cans and
      the price of primary metal on the London Metal Exchange
      has not increased at the levels the Company projected.

The Company has been successful in eliminating approximately
half of its metal price ceiling exposure beginning in 2007. In
addition, under the direction of the Company's new CFO, Novelis
is currently analyzing how best to further mitigate the
remaining exposure that exists.
    
           Cost of Restatement, Review and Waivers

Through June 30, 2006, Novelis had incurred expenses of
approximately US$30 million related to the restatement and
review process, including professional fees and expenses, credit
waiver and consent fees, and special interest on its US$1.4
billion 7.25% senior unsecured debt securities due 2015.  The
Company will continue to incur expenses of this nature until,
among other things, it is current with its SEC filings and
completes its registered exchange offer for its Senior Notes.
    
                       Debt Repayment

Since the date of the spin-off, we have made significant
progress paying down debt, having reduced total debt by US$348
million in 2005. While unprecedented high metal and energy
prices and metal price ceilings in certain North American
contracts will impact the Company's income and cash flows in
2006, it expects to generate sufficient cash flows to reduce
debt in excess of the amount it is required to pay under its
debt facilities.  The Company previously disclosed its
expectation that it would pay down debt by approximately US$200
million to US$250 million in 2006.  It made progress in the
first half of 2006 by reducing its debt by US$135 million, using
cash provided by operating activities and by making working
capital improvements across the Company.  However, the adverse
factors outlined above, as well as the continued high metal
price environment and steps Novelis may take to mitigate that
exposure, will affect the Company's ability to continue to pay
down debt.  Novelis believes that the total debt
reduction level for 2006 is now likely to be in the range of
US$150 million to US$200 million.
    
                      Notice of Default

Novelis received a notice of default from the trustee for the
bondholders with respect to its US$1.4 billion 7.25% Senior
Notes due 2015 for the failure to file its Form 10-Q for the
second quarter of 2006 on a timely basis.

The notice informed Novelis that it is in default of its
financial reporting obligations and requires that it cure the
default within 60 days.  If the Company does not file the
delayed Form 10-Q by October 23, 2006, the date that marks the
end of the specified cure period, an event of default occurs.  
At that point, the trustee or holders of at least 25 percent in
aggregate principal amount of the Senior Notes may elect to
immediately accelerate the maturity of the Senior Notes (US$1.4
billion principal amount outstanding).

The notice of default from the bondholders also accelerated the
deadline to file the delayed report under the existing waiver to
Novelis' Credit Agreement (dated August 11, 2006).  Under the
terms of the existing waiver, the filing and reporting deadline
for Novelis' Form 10-Q for the second quarter of 2006 was
October 31, 2006. Anticipating the receipt of this notice of
default, the Company proactively sought and recently obtained a
59 calendar day waiver provision from its Credit Agreement
lenders.  Therefore, the Company must file its Form 10-Q for the
second quarter of 2006 by October 22, 2006, in order to avoid a
default under its Credit Agreement.

Novelis intends to file its Form 10-Q for the second quarter of
2006 on or before October 22, 2006, and therefore avoid events
of default under both its Senior Notes and Credit Agreement.  
The Company also stated that, in light of its current belief
that it will file the Form 10-Q for the second quarter of 2006
within the applicable cure period, it would not seek a consent
solicitation from its bondholders to waive the event of default,
as it did previously when it offered in June 2006 to pay US$21
million to the bondholders who agreed to grant such a waiver.

                       About Novelis

Based in Atlanta, Georgia, Novelis Inc. (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America.  The
company operates in 11 countries and has approximately 13,000
employees.  Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.

Novelis South America operates two rolling plants and primary
production facilities in Brazil.  The company's Pindamonhangaba
rolling and recycling facility in Brazil is the largest aluminum
rolling and recycling facility in South America and the only one
capable of producing can body and end stock.  The plant recycles
primarily used beverage cans, and is engaged in tolling recycled
metal for our customers.

                        *    *    *

As reported in the Troubled Company Reporter on May 18, 2006,
Moody's Investors Service placed the ratings of Novelis Inc.,
and its subsidiary, Novelis Corp., under review for possible
downgrade.  In a related rating action, Moody's changed Novelis
Inc's speculative grade liquidity rating to SGL-3 from SGL-2.
Novelis Corporation's Ba2 senior secured bank credit facility
rating was placed on review for possible downgrade.

Novelis Inc.'s Ba3 corporate family rating; Ba2 senior secured
bank credit facility and B1 senior unsecured regular
bond/debenture were placed on review for possible downgrade.


VARIG S.A.: ILFC Continues to Harp over Unpaid Aircraft Leases
--------------------------------------------------------------
International Lease Finance Corporation is currently seeking the
return of 11 leased aircraft from VARIG S.A.

ILFC relates in a regulatory filing with the U.S. Securities and
Exchange Commission that if VARIG returns the aircraft, ILFC
will be required to remarket those aircraft and may incur costs
related to re-leasing those aircraft.

"VARIG is still operating but is not currently meeting all
rental obligations under the leases," Alan H. Lund, ILFC
director, vice chairman, chief financial officer and chief
accounting officer, says.

ILFC has asked the U.S. Bankruptcy Court for the Southern
District of New York to enforce a stipulation it signed with
VARIG to keep the airline current on the leases or return the
aircraft.

ILFC recorded US$13,100,000 in revenues from rentals of flight
equipment for the quarter ended March 31, 2006, from VARIG.

Mr. Lund reports that ILFC took an US$8,800,000 charge in the
first quarter of 2006 related to receivables of restructured
rents from VARIG.  In 2005, ILFC took a US$6,700,000 charge
related to receivables from VARIG.

                        About VARIG

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

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

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


VOLKSWAGEN AG: May Close One Factory in Brazil if Talks Fail
------------------------------------------------------------
Volkswagen AG said last week it may have to close one of its
factories in Brazil if it fails to reach an agreement with labor
unions, Reuters reports.

Volkswagen has five factories in Brazil with approximately
21,000 workers.

Volkswagen is losing money in Brazil as the currency gained 61%
forcing the company to raise prices, which resulted to losses in
export profits.

Reuters says the European automaker's restructuring plan
involves laying off 3,600 people at the Anchieta plant in the
next two years, offering all of them severance packages.

But if the union rejects the plan, Volkswagen said it would
start by laying off 1,800 employees on Nov. 21, without
severance packages, Reuters says.

Eventually, Anchieta would be closed as it would no longer be
eligible for new investments that are needed to keep the plant
up and running.  The plant has 12,000 employees.

"It's imperative that the Anchieta plant receive new investments
in order to produce new models. If not, the reduction of its
workforce will have to be even larger than what we already
announced," Nilton Junior, VW Brazil's executive director for
corporate labor relations, said in a statement.

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 last year, 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.




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


ATLAS TRADING: Shareholders Final Meeting Set for Sept. 14
----------------------------------------------------------
Atlas Trading Limited's final shareholders meeting will be at
10:30 a.m. on Sept. 14, 2006, at the offices of:

        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 liquidator can be reached at:

         Linburgh Martin         
         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


BANK INTERNASIONAL: Profit Declines 11% to IDR352 Billion
---------------------------------------------------------
PT Bank Internasional Indonesia Tbk posts a IDR352 billion net
profit for the half year ended June 30, 2006, an 11% decline
from the net profit recorded in the first half of 2005,
according to the bank's press release.

The lower net profit is attributed to the provisioning
requirements which amounted to IDR290 billions in the second
quarter of 2006, a significant increase when compared to the
provisioning expense of IDR11 billion from a year before.  

The second-quarter net profit of IDR176 billion, on the other
hand, is at par with the previous quarter's net income.

Despite the challenging market environment, Bank Internasional's
core earning growth remains robust as reflected in its net
interest income that grew 24% to IDR1.40 trillion in the second
quarter of 2006 from IDR1.13 trillion last year.  This NII
growth helped improve BII's NIM to 5.33%.   

Bank Internasional President Director Henry Ho said, "We will
continue to remain prudent and focus on our businesses in these
difficult conditions and have undertaken a number of strategic
initiatives to improve our capabilities to be ready to seize the
opportunities that the expected decline in interest rates and
improved economic conditions will present later in the year."

He further added that, "Despite the expected decline of 11% in
our net profit compared to the same period last year we are
optimistic of the potential of the market place and our
industry, notwithstanding the present challenging market
conditions."

Total Loans increased by 21% to IDR23.18 trillion in the second
quarter of 2006 from IDR19.18 trillion last year, which includes
the impact of WOM consolidation and the growth of our Consumer
and SME/Commercial segments by 17% and 27% respectively.

LDR improved to 58.61% from 56.21% last year.  As of June 30,
2006 NPL (gross) remains manageable at 3.86% despite an increase
from 3.05% last year due to the deterioration in the performance
of the consumer segment.  Total assets rose by 10% from IDR43.14
trillion to IDR47.56 trillion as of June 30, 2006, due to a 21%
loan growth and the consolidation impact.

As of June 30, 2006 Bank Internasional's loan segmentation stood
at 38% Consumer, 34% SME/Commercial and 28% Corporate.

Bank Internasional's total deposit from customers rose to
IDR34.39 trillion.  As of June 30, 2006, the composition of
BII's deposit was 60% time deposit and 40% savings and current
accounts.

Bank Internasional's regulatory filing to the Surubaya Stock
Exchange contains the following financial highlights:

              PT Bank Internasional Indonesia Tbk
               Consolidated Financial Highlights
                       (in IDR, millions)

                             As Of                As Of
                         June 30, 2006        June 30, 2005
                       -----------------    -----------------

Total Assets                 47,562,175           43,143,445
Total Liabilities            42,369,388           38,448,064
Total Equity                  4,878,718            4,389,868
Cash                            709,203              156,806
Marketable Securities         4,434,496            3,993,613
Government Bonds             10,398,407           11,496,097
Liabilities Immediately
Payable                        441,255              531,727
Deposits from Customers      34,394,377           31,433,809   
Deposits from Other Banks     1,668,920            1,545,247



                               For the Period Ending
                         June 30, 2006        June 30, 2005
                       -----------------    -----------------

Interest Revenue              3,038,480            1,874,975
Interest Expense              1,640,079              746,833
Net Interest Revenue          1,398,401            1,128,142
Other Operating Revenues        516,420              486,971
Other Operating Expenses      1,502,965            1,107,300
Income from Operations          411,856              507,813
Net Income                      352,251              397,151  

                    About Bank Internasional

PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id--  
engages in general banking services and in other banking
activities based on Syariah principles. The bank's services are
divided into three categories: Personal Services, consisting of
Funding, Credit Card Services, Loan, Reksadana and
Bancassurance; Corporate Services, consisting of Funding, Credit
Card Services, Loan and Investment Banking, and Platinum
Services, consisting of Platinum Access, Syariah Platinum Access
and Platinum MasterCard.

With a total customer deposit base of more than IDR34 trillion
and over IDR47 trillion in assets, Bank Internasional is one of
the largest banks in Indonesia with an international network
that comprises over 230 branches and 700 ATMs across Indonesia,
as well as a banking presence in Mauritius, Mumbai and the
Cayman Islands.

                        *    *    *

The Troubled Company Reporter reported on May 22, 2006 that
Moody's Investors Service raised Bank Internasional Indonesia's
issuer rating to B1 from B2, subordinated debt rating to B1 from
B2, and long-term deposit rating to B2 from B3.  Moody's said
the outlook is stable.

As reported on May 24, 2006, Fitch Ratings affirmed Bank
Internasional's ratings:

    * Long-term Foreign Currency Issuer Default Rating 'BB-';
    * Short-term 'B';
    * Individual 'C/D'; and
    * Support '4'.

Fitch said the outlook is stable.


BANK RAKYAT: Net Profit Ups by 3.41% to IDR2.008 Trillion
---------------------------------------------------------
PT Bank Rakyat Indonesia (Persero) Tbk books a net profit of
IDR2.008 trillion in the first semester of 2006, up by 3.41%
from the figure for the same period last year which was recorded
at IDR1.942 trillion, Antara News reports.

The bank`s director for small-and medium-businesses, Sulaiman
Arif Arianto, has said that the hike in the bank`s net profit
was attributed mostly to a rise in income from interest namely
23.89% from IDR8.238 trilion to IDR10.206 trillion.

Net income from interest in the first semester of this year
reached IDR6.705 trillion or up by 9.61% from IDR6.117 trillion
in the same period last year.

Funds from the third party in the period rose by 20.55% to
IDR107.87 trillion from IDR89.481 trillion.

The bank`s total assets also rose by 19.11% to IDR135.155
trillion from IDR113.474 trillion.

The bank`s capital adequacy ratio was up from 15.64% in the
first semester of 2005 to 19.06 in the first semester this year.

Mr. Sulaiman said that until June the bank`s total credits for
small-and medium-business sector reached IDR72.119 trillion or
87.67% of total BRI`s credits recorded at IDR68.725 trillion.

The bank`s total credits in general rose by 19.70% compared to
total credits in the first semester last year, reaching
IDR68.725 trillion or up by around 8% compared to credits
distributed in December 2005 which reached around IDR75.533
trillion.

Mr. Sulaiman adds that the business segment that gave the
biggest contribution to the growth was micro and retail sectors
contributing IDR3.995 trillion and IDR6.096 trillion
consecutively.

The bank`s lending to deposit ratio in the first semester was
recorded at 76.26%.

"Gross non-performing loans until June were recorded at 5.09% or
better than the gross NPL by June 2005 which was recorded at
5.62%. The net NPL by June 2006 meanwhile is recorded at 2.19%
or improving from 2.31% which was the net NPL by June 2005," he
said.

The bank's financials submitted to the Surubaya Stock Exchange
includes the following financial data:

             PT Bank Rakyat Indonesia (Persero) Tbk

                    Balance Sheet Accounts
                       (in IDR, millions)

                                     As of           As of

                                 June 30, 2006   June 30, 2005  
                                 -------------   -------------
Total assets                      135,154,521     113,473,610
Cash                                2,795,235       2,401,386
Marketable Securities              17,173,412      10,451,519
Loans                              75,602,709      62,544,814
Total liabilities                 121,330,210     101,663,045
Funds from third parties          107,870,051      89,480,639
Borrowings                          1,869,634       1,734,696
Total equity                       13,824,311      11,810,565

             PT Bank Rakyat Indonesia (Persero) Tbk
                    Income Statement Accounts
                       (in IDR, millions)

                                     For the half year ended
                                 June 30, 2006   June 30, 2005  
                                 -------------   -------------
Interest revenues                  10,206,328       8,238,353
Interest expense                    3,501,279       2,120,926
Net interest revenues               6,705,049       6,117,427
Other operating revenues              638,908         705,554
Other operating expenses            3,913,434       3,673,183
Income from operations              2,606,788       2,546,739
Net Income                          2,008,175       1,941,867

                  About Bank Rakyat Indonesia

PT Bank Rakyat Indonesia (Persero) Tbk's -- http://www.bri.co.id
-- clients' services comprise Savings, Credits and Syariah. In
addition, the bank divides its financial and business services
into three groups: Business Services, consisting of bank
guarantees, bank clearance, automatic teller machines and safe
deposit boxes; Financial Services, consisting of bill payments,
CEPEBRI, INKASO, deposit acceptance, online transactions and
transfers, and Other Services, consisting of tax and fine
payments, donations, Western Union and zakat contributions.  
During the year ended December 31, 2005, the bank had one branch
office in Cayman Islands and two representative offices in New
York and Hong Kong, respectively.

                         *     *     *

As reported on May 24, 2006, Fitch Ratings affirmed Bank Rakyat
Indonesia's:

   -- Long-term Foreign Currency Issuer Default Rating 'BB-';  
   -- Short-term 'B';
   -- Individual 'C/D';
   -- Support '4'.

Fitch said the outlook is stable.  


BLACK CALICO: Holds Final Shareholders Meeting on Sept. 18
----------------------------------------------------------
Black Calico Limited's final shareholders meeting will be at
11:00 a.m. on Sept. 18, 2006, at the office of the liquidator.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


CABLE & WIRELESS: Final Shareholders Meeting Set for Sept. 19
-------------------------------------------------------------
Cable & Wireless Cable Systems Limited invites shareholders to
attend the final general meeting at 11:00 a.m. on Sept. 19,
2006, at:

         Chris Johnson Associates Ltd.
         Strathvale House, North Church Street, 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 liquidator can be reached at:

         Russell Smith
         Attn: Shaun Gerard
         P.O. Box 2499GT
         Grand Cayman, Cayman Islands
         Telephone: (345) 946-0820
         Facsimile: (345) 946-0864


CASCADIA II: Fitch Rates US$300 Million Variable Notes at BB+
-------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to Cascadia II
Limited's US$300 million variable-rate notes due 2009.

Fitch's rating reflects its review of EQECAT Inc.'s (EQECAT)
risk analysis and models used to analyze the covered risks, the
loss distributions resulting from EQECAT's analysis, and the
transaction's structural soundness.

Cascadia II is a Cayman Islands-domiciled company formed solely
to issue the variable-rate notes, enter into a counterparty
contract with Factory Mutual Insurance Company (FM Global), and
conduct activities related to the notes' issuance.  FM Global, a
U.S.-domiciled insurer, and its subsidiaries write commercial
property insurance worldwide. Fitch rates FM Global's insurer
financial strength 'AA'.

Under the counterparty contract, Cascadia II will make specified
payments to FM Global if, during the next three years,
earthquakes of various magnitudes occur in the Pacific Northwest
portion of the U.S. or in portions of British Columbia, Canada.  
Proceeds from the notes issue collateralize Cascadia II's
obligations under the counterparty contract.

Fitch's rating considers both the mean magnitude of modeled
earthquakes on base-case estimated loss statistics and 'stress-
tested' estimated loss statistics in relation to Fitch's
catastrophe-linked bond-rating curve. Fitch's analysis of the
transaction's structure included a review of Cascadia II's
organizational documents, contracts between Cascadia II and
various parties, and various legal opinions.


GREAT EASTERN: Holding Final Shareholders Meeting on Sept. 19
-------------------------------------------------------------
Great Eastern Telecommunications Limited will hold a final
meeting of shareholders at 11:00 a.m. on Sept. 19, 2006, at the
company's registered office.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Russell Smith
         Attn: Matthew Smith
         P.O. Box 2499GT
         Grand Cayman, Cayman Islands
         Telephone: (345) 946 0820
         Facsimile: (345) 946 0864


HIGHLAND GLOBAL: Holding Final Shareholders Meeting on Sept. 14
---------------------------------------------------------------
Highland Global SPC's final shareholders meeting will be at
10:00 a.m. on Sept. 14, 2006, at the liquidator's place of
business:

         Q & H Corporate Services, Ltd.
         Third Floor, Harbour Centre
         P.O. Box 1348GT
         Grand Cayman, Cayman Islands, on 14th

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.

Highland Global SPC's shareholders agreed on June 16, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


HIGHLAND GLOBAL MASTER: Final Shareholders Meeting on Sept. 14
--------------------------------------------------------------
Highland Global Master SPC's final shareholders meeting will be
at 10:00 a.m. on Sept. 14, 2006, at the liquidator's place of
business:

         Q & H Corporate Services, Ltd.
         Third Floor, Harbour Centre
         P.O. Box 1348GT
         Grand Cayman, Cayman Islands, on 14th

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.

Highland Global SPC's shareholders agreed on June 16, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


JEFFERIES (MASTER): Last Shareholders Meeting Is on Sept. 29
------------------------------------------------------------
Jefferies Real Asset Master Fund Limited's final shareholders
meeting will be at 3:30 p.m. on Sept. 29, 2006, at the office of
the company's liquidator.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


JEFFERIES REAL: Final Shareholders Meeting Is on Sept. 29
---------------------------------------------------------
Jefferies Real Asset Fund (Cayman) Limited's final shareholders
meeting will be at 3:00 p.m. on Sept. 29, 2006, at the offices
of the company's liquidator.

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


PIONEER 2002: Proofs of Claim Must be Filed by September 13
-----------------------------------------------------------
Pioneer 2002 Limited's creditors are required to submit proofs
of claim by Sept. 12, 2006, to the company's liquidators:

         Cereita Lawrence
         Jamal Young
         P.O. Box 1109, George Town
         Grand Cayman, Cayman Islands.

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.

Parties-in-interest may contact:

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




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


GLOBAL CROSSING: June 30 Balance Sheet Upside-Down by US$86 Mil.
----------------------------------------------------------------
Global Crossing Ltd.'s balance sheet at June 30, 2006, showed
US$1.87 billion in total assets and US$1.95 billion in total
liabilities, resulting in a stockholders' deficit of
US$86 million.  The Company reported a US$173 million
stockholders' deficit on Dec. 31, 2005.

"We have performed for the past seven quarters leading to the
achievement of our major goals, including generating positive
adjusted EBITDA in June," said John Legere, Global Crossing's
CEO.  "After transforming the business and intentionally
reducing revenues to focus on more profitable services such as
IP-based carrier data and enterprise services, we're pleased to
report that consolidated revenue grew sequentially for the first
time in three years.  This growth validates our strategy and
shows that the future looks extremely promising for Global
Crossing."  Management reaffirmed that the company will begin to
generate cash at some point in the second half of the year,
marking significant financial milestones.

Global Crossing's consolidated revenue grew from US$456 million
in the first quarter of 2006 to US$461 million in the second
quarter of 2006.

Consolidated loss applicable to common shareholders was
US$77 million, compared with a loss of US$109 million in the
first quarter of 2006.

Global Crossing also reported customer successes during the
second quarter, including a new contract with the U.S. General
Services Administration, an inter-carrier agreement with
Broadwing to expand their converged Internet Protocol offerings
globally and a new agreement with Banco Santander International
for IP convergence solutions.  Responding to rapid growth in IP
traffic, Global Crossing announced investments in its core
network during the quarter.  IP traffic grew 19 percent
sequentially during the second quarter and 102 percent year over
year.

Adjusted EBITDA improved 62% sequentially and was a loss of
US$17 million in the second quarter of 2006, compared with a
loss of US$45 million in the first quarter of 2006.  Adjusted
EBITDA excluding non-cash stock compensation was a loss of
US$10 million in the second quarter, compared with a loss of
US$33 million in the first quarter of 2006.

As of June 30, 2006, unrestricted cash and cash equivalents
totaled US$456 million.  Restricted cash was US$21 million.  
Excluding net cash impact from second quarter financings
(including the purchase of U.S. treasury securities related to
the offerings and interest received from such offerings), Global
Crossing used US$52 million of cash in the second quarter.

As required by the indenture governing its senior notes, GCUK
offered approximately US$26 million to tender a portion of the
notes at par in the second quarter.  There were no valid tenders
of either the U.S. dollar- or British pounds sterling-
denominated notes.

                      Credit Facility

On May 10, 2006, the company signed a revolving credit facility
with Bank of America in the face amount of US$55 million, with
an initial maximum availability of US$35 million.  Initial
advances under the facility are subject to certain state
regulatory approvals, which are expected by the beginning of the
fourth quarter of 2006, and to customary closing conditions.

On May 30, 2006, Global Crossing closed two concurrent public
offerings, generating US$384 million in gross proceeds.  The
offerings included 12 million common shares for gross proceeds
of US$240 million and US$144 million in senior convertible
notes.  After deducting underwriters' discounts and other direct
fees expected to be paid by the end of 2006, net proceeds from
the public offerings will be approximately US$371 million.  
Approximately US$20 million of the net proceeds was used to
purchase a portfolio of U.S. treasury securities to fund the
first six interest payments on such notes related to the
offerings.

A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?105f

                     About Global Crossing

Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
-- http://www.globalcrossing.com/-- provides telecommunications  
solutions 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 January 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.




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


BBVA COLOMBIA: Issuing COP100 Bil. Bonds on Local Stock Market
--------------------------------------------------------------
BBVA Colombia will issue COP100 billion worth of bonds on the
Colombian stock market, according to local press.

Business News Americas reports that the issuance was set for
Aug. 28, 2006.

BNamericas states that BBVA Colombia could increase the offering
to COP200 billion, depending on investor demand.

BBVA Colombia's issuance of the bond -- which will mature in
five years -- is part of a larger COP400 billion bond program,
BNamericas relates.

                        *    *    *

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


ECOPETROL: Awards 51% Stake in Cartagena Plant to Glencore
----------------------------------------------------------
Ecopetrol, the state-owned oil firm of Colombia, awarded the 51%
stake in the Cartagena refinery to Glencore International, a
Swiss raw materials group, Business News Americas reports.

BNamericas relates that Glencore offered US$631 million for the
stake, beating the US$595 million bid of Petroleos Brasileiro.

According to BNamericas, UK oil major BP's North American unit
and Japanese engineering firm Marubeni pre-qualified but did not
submit offers for the plant.

Ecopetrol officials told BNamericas that the company will retain
49% ownership of the stake and will operate the refinery until
2010.

Ecopetrol and Glencor, as part of an US$800 million EPC project,
will boost the Cartagena plant's capacity to 140,000 barrels a
day from 80,000 barrels a day.

An Ecopetrol official told BNamericas, "They (Ecopetrol and
Glencore) will constitute a joint venture.  Investments will be
covered jointly and in proportion to the stake.  The new entity
will be constituted soon and construction will begin in
December."

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.




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


PETROECUADOR: Says Amazon Oil Spill Caused by Sabotage
------------------------------------------------------
Galo Chiriboga, the head of Petroecuador, told Petrolworld that
an oil spill in the Amazon region of Ecuador last week seems to
be caused by sabotage.

Petrolworld reports that the oil spill has caused damage to the
Cuyabeno National Park.

"We've detected damage in Cuyabeno Park and investigations so
far indicate that this was effectively sabotage," Mr. Chiriboga
told Petrolworld.

Petrolworld notes that Chinese-owned Andes Petroleum reported
earlier an act of sabotage that produced a spill like what
Petroecuador is dealing.

There have been 44 acts of sabotage in 2006, Petrolworld says,
citing Petroecuador.

According to Petrolworld, Petroecuador directors visited the
Amazon region to ask local authorities to complete their
investigation so that those responsible for the damage can be
prosecuted.

Despite efforts to control the situation, some of the oil from
the 500 spilled barrels reached the park's first lake, which is
a wildlife reserve, Petrolworld relates, citing Petroecuador
technicians.

Petroecuador told Petrolworld that this was the extent of the
damage.  Workers were able to recover about 400 barrels.

"This type of criminal act is a custom of the communities that
live close to oil installations - a strategy to demand
compensation for damages to their health and the environment,"
Jaime Crow, the vice president of Petroecuador unit
Petroproduccion, told Petrolworld.

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


* ECUADOR: Plans to Extend Maturities of US$1 Billion Debts
-----------------------------------------------------------
Ecuador, faced with approximately US$1 billion of local dollar-
denominated bonds maturing within a year's time, plans to
lengthen maturities of those debts.

Finance Minister Armando Rodas told Bloomberg News a sudden drop
in demand for the country's debt would leave the government
scrambling to roll over those securities, known as Cetes.

Ecuador defaulted on US$6.5 billion of debts in 1999.

"That's really a risk that our financing is running," minister
Rodas, said in an interview in with Bloomberg.  "What happens if
they don't want to roll it over? So that's something that
worries us."

According to Bloomberg, Ecuador's borrowing costs is one of the
highest among Latin American nations even after restructuring
its debts six years ago.

Bloomberg notes the government's dollar-denominated foreign
bonds yield on average 4.83 percentage points more than U.S.
Treasuries, the biggest yield spread among the eight Latin
American countries in JPMorgan Chase & Co.'s benchmark emerging-
market debt index.

Part of the finance minister's strategy is to pay down one of
the two securities the government issued in that restructuring
-- a 12% bond that matures in 2012 -- because the bond's high
interest rate ties up too much of budgetary funding, Bloomberg
relates.

"We are working on a strategy, a general strategy, in order to
reduce costs and increase maturities," the finance minister
said.  "There are two issues that worry me the most. One is the
high cost of the 2012s -- 12 percent is really high -- and
another thing that worries me is the local short term debt that
needs to be rolled over."

                       *    *    *

Fitch assigned these ratings on Ecuador:

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




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


BANCO INDUSTRIAL: Posts GTQ163MM First Half 2006 Net Profits
------------------------------------------------------------
Guatemala's Banco Industrial SA told banking regulator
Superintendencia de Bancos that its first half unconsolidated
net profits increased 12.2% to GTQ163 million, compared with the
GTQ145 million in the same period of 2005, Business News
Americas reports.

Banco Industrial posted these results in the first half of 2006:

    -- return on equity was 15.8% in the first half of 2006,
       compared with an industry average of 21.5%;

    -- return on assets were 1.6%, compared with a 1.9% industry
       average;

    -- net interest income increased 10% at GTQ285 million;

    -- net fee income grew 28% to GTQ38.4 million;

    -- administrative expenses rose 28% to GTQ245 million;

    -- loan book increased 20% to GTQ8.42 billion;

    -- past-due loan ratio grew 1.1% in the first half of 2006,
       compared with 1.5% at the same time last year;

    -- deposits rose 14% to GTQ13.4 billion;

    -- assets grew 22% to GTQ20.2 billion;

    -- total liabilities increased 18% to GTQ18.2 billion;

    -- equity rose 68% to GTQ2.07 billion;

    -- solvency ratio improved to 10.2% in June 2006 from 7.4%
       in June 2005, and compared with an industry average of
       9.2%; and

    -- the bank's market share by assets was 20.9%, while its
       market share by loans was 17.4%.

BNamericas relates that Banco Industrial purchased in Banco
Occidente in March.  Occident had GTQ4.07 billion in assets and
GTQ3.60 billion in liabilities at the end of June.  

According to BNamericas, the acquisition of Occidente will give
Banco Industrial an asset market share of 25% and a loan market
share of 22%.

Jeanne del Casino, a vice president and senior credit officer at
Moddy's told BNamericas, "Banco Industrial was very big before
[the acquisition of Occidente] and now it is even bigger, has
more diversity and has expanded geographically.  It was an
interesting acquisition for them."

Banco Industrial is still in the process of absorbing Occidente,
BNamericas states.

The Superintendencia de Bancos does not release the consolidated
financial information of banks and financial groups.

                        *    *    *

On March 20, 2006, Moody's Ratings Services affirmed Banco
Industrial S.A.'s 'D' bank financial strength rating.

Moody's also affirmed Industrial's 'Baa2' and Prime-3 long and
short term global local currency deposit ratings, respectively,
and its 'Ba3' and Not Prime long and short term foreign currency
deposit ratings.  All the ratings have stable outlooks.




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


* HONDURAS: CAFTA Implementation Caused Exports to Surge 33%
------------------------------------------------------------
El Heraldo reports that Honduran exports have grown 33% since
the implementation in April of the free trade accord, known as
CAFTA, with the United States.

U.S. Ambassador Charles Ford said in a video conference that the
future of business between the two countries is optimistic.

When CAFTA was introduced, it was believed that the maquila
industry would be successful, however, statistics have revealed
that this is not the case, the same paper relates.

The basic concept behind the maquila industry is that a U.S.
company relocates one or several of its manufacturing plants to
a low-cost country to save on labor and other operating
expenses.  

The paper did not disclose which sector benefited the most from
the absence of tariffs between the two nations.

                        *    *    *

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: Changes Flight Schedule Due to Tropical Storm
----------------------------------------------------------
Air Jamaica has changed its flight schedule since Sunday due to
the approaching tropical storm Ernesto, Radio Jamaica reports.

Air Jamaica told Radio Jamaica that several flights from the
Norman Manley International Airport would leave earlier than
scheduled.

Flights into Kingston on Sunday were cancelled, Radio Jamaica
relates, citing Air Jamaica.

According to Radio Jamaica, all planes leaving the Sangster
International Airport in the morning will operate as scheduled
except the JM081, which would leave earlier.

Radio Jamaica notes that Air Jamaica also allows changes to
reservations without penalty for flights from Saturday to
Sunday, until Sept. 3, to facilitate passengers with affected
schedules.  However, this is only for flights to/from Jamaica.

The management of Sangster International Airport told Radio
Jamaica that it will later on decide if and when it will close
the facility.

                        *    *    *

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.


DELTA AIR: Launches Web Site for Spanish-Speaking Clients
---------------------------------------------------------
Delta Air Lines has launched a Web site for its Spanish-speaking
customers, the Salt Lake Tribune reports.

According to a report released by eMarketer earlier this year,
the number of US Hispanic Internet users is expected to grow
significantly over the next five years, reaching 20.9 million in
2010.

Josh Weiss, Delta's managing director, said, "As Delta continues
to grow internationally, we're placing great emphasis on
enabling our customers to experience our self-service products
in the languages they prefer, and making delta.com more user-
friendly for our diverse audiences.  Delta has expanded its
offering to the Latin American and Caribbean regions to cater to
the needs of the important U.S. Hispanic population, and
delta.com in Spanish will make it easy for our customers who
prefer to do business in Spanish to find everything they need."

Delta Air told the Salt Lake Tribune that through the new Web
site, Spanish speakers in the US can:

        -- can book tickets,
        -- check a flight's status,
        -- choose seats,
        -- redeem frequent-flier miles, and
        -- arrange refunds.

The Salt Lake Tribune relates that starting Oct. 15, clients of
Delta Air will also be able to purchase tickets online for
flights coming from 17 Latin American and Caribbean nations
using local currencies.

To access delta.com in Espanol, Delta's online customers should
log onto delta.com, choose their country in a drop-down menu and
select Spanish as their choice of language, then navigate for
reservations, deals and general check-in.

Later this year, delta.com will also launch in four additional
languages to further enhance the Delta experience for customers
worldwide.  As part of its globalization efforts, Delta will
also introduce Spanish and French-language check-in kiosks in
early 2007 to complement Delta's industry-leading Spanish gate
information screens and gate audio announcements already
available in major US airports.

Delta passengers also can avoid up to US$15 in booking fees when
they purchase their tickets directly at delta.com.  Customers
can take advantage of Delta's Risk-free Cancellation policy that
allows them to cancel certain tickets within 24 hours without
penalty if they find lower fares anywhere else or if their
travel plans change.

An upgrade to the Delta Messenger -- Delta's flight notification
system -- will enable SkyMiles members to sign up for their
flight notifications on delta.com.  This new feature allows
customers to provide Delta with contact information specific to
their needs.  Since the airline launched its Delta Messenger in
2004, it has notified millions of customers of advanced schedule
changes or canceled flights by phone or e-mail.  Delta Messenger
also will notify customers when their flights are delayed and
provide continuous, real-time updates when operational changes
occur, like rebooking options or gate changes.

Providing delta.com in Spanish is one of many self-service
globalization efforts underway to benefit Delta's customers
worldwide.

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


DYOLL INSURANCE: Can't File Annual Reports on Time
--------------------------------------------------
The Dyoll Insurance Company was late in submitting its annual
report to the Jamaica Stock Exchange, Radio Jamaica reports.

According to Radio Jamaica, other late filers of annual reports
include:

        -- Jamaica Public Service Company Limited;
        -- Jamaica Money Market Brokers Limited; and
        -- Montego Bay Freeport Limited.

As published in the Stock Exchange in June, Dyoll apologized for
not submitting its annual report in the time specified under
rule 409.  Dyoll explained that it failed to submit the annual
report because the Audited Financial Statements for Dyoll Group
limited were not submitted until April 2006, thirty days later
than the time specified in the Rules.  Dyoll then requested for
an extension of 120 days from April.

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


NATIONAL COMMERCIAL: Sells 81B King Street for US$37 Million
------------------------------------------------------------
The National Commercial Bank sold at an auction last week the
81B King Street for US$37 million, despite attempts from former
owners Topaz Jewellers to halt the sale, the Jamaica Gleaner
reports.

The report underscores that 81B King Street was sold to a member
of the Tewani family.  A representative of auctioneers D.C.
Tavares Finson had refused to name the buyer, saying, "It's a
sensitive matter."

As reported in the Troubled Company Reporter-Latin America on
Aug. 18, 2006, the National Commercial said that it would
proceed with the auction of its 81B King Street, scheduled for
this month at 171 Belmont Road in St. Andrew.  The National
Commercial had announced the auction in a full-page newspaper
advertisement.  In a move to discourage potential bidders at the
auction, Topaz Jewellers had warned in their own full-page
advertisement in The Gleaner that it would include the winning
bidder in a lawsuit it filed against National Commercial.  Topaz
Jewellers had sued the National Commercial a little over six
months ago.  National Commercial filed a defense in May.  Topaz
Jewellers alleged that the mortgage was void, saying that it was
obtained by "undue influence".  

According to The Gleaner, Topaz' loan was US$55 million.  
However, the amount of the default was unclear.  Topaz is
fighting the National Commercial in court to regain the 81B King
Street.

The 81B King Street was pledged as security for a loan that
Topaz Jewellers obtained from National Commercial.  The property
has a gross floor area of nearly 15,000 square feet on two lots
totaling 5,400 square feet and it is valued up to US$30 million.

Sandra Minott-Phillips, the legal representative of the National
Commercial, told the Gleaner, "They (Topaz) were using the full-
page advertisement in the newspaper to intimidate prospective
purchasers in any a manner.  They can't hope to achieve an
injunction by way of a full-page advertisement in any newspaper.
An injunction is something you get from the court, not from the
offices of the newspaper."

The Gleaner says that Topaz, to obtain injunction from the
Supreme Court to halt the sale, would have to pay to the court
the amount that the National Commercial claims to be due on the
loan.

Attorney Minott-Phillips told The Gleaner, "The purchaser is
entitled to purchase and the bank is entitled to sell, unless
and until the court says it cannot do so."

The case would continue, The Gleaner states, citing Attorney
Minott-Phillips.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2006, Fitch initiated rating coverage on Jamaica's
National Commercial Bank Jamaica, Ltd., by assigning 'B+'
ratings on the bank's long-term foreign currency.  Other ratings
assigned by Fitch include:

   -- Long-term local currency 'B+';
   -- Short-term foreign currency 'B';
   -- Short-term local currency 'B';
   -- Individual 'D';
   -- Support '4'.

Fitch said the ratings have a stable rating outlook.


NATIONAL WATER: Prepared for Tropical Storm Ernesto
---------------------------------------------------
The National Water Commission told the Jamaica Gleaner that it
is prepared for the approaching tropical storm Ernesto.

The Gleaner states that the National Water, however, said that
clients should prepare for disruption because:

    -- several of the 460 water supply systems across the
       island, of necessity, have intakes in riverbeds and are
       susceptible to flood damages and blockages;

    -- wells are often located, of necessity, in low-lying
       plains and are vulnerable to flooding;

    -- most water and wastewater systems are heavily dependent
       on the national power grid for operations;

    -- over 5,000 kilometers of undulating pipeline are
       vulnerable to:

       * land slippage,
       * pipeline dislocation, and
       * breakage;

    -- all water sources are at risk of contamination and muddy
       inflows after heavy rainfall and flooding; and

    -- most water systems are at least partly situated in very
       remote areas that are difficult to access, especially
       after a storm event.

                        *    *    *

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


SCOTIABANK: Criticizes Development Bank for Balking on Loan
-----------------------------------------------------------
William Clarke, the head of the Bank of Nova Scotia aka
Scotiabank, criticized the Development Bank of Jamaica for its
reaction on the US$600 million loan fund Scotiabank has pledged
for small farmers and small hotels, the Jamaica Gleaner reports.

The Gleaner notes that Scotiabank has made US$350 million
available for soft loans at small hoteliers and US$250 million
for farmers.

"We made the announcement of this loan facility a couple months
ago and, unfortunately, it has not been drawn down," The Gleaner
states, citing Mr. Clarke.

According to The Gleaner, Mr. Clarke said that Scotiabank might
be forced to reconsider the offer it made due to conditions the
Development Bank has set.

"They seem to have some requirements for the distribution of the
funds that we will not meet.  We have basically put the
Government on notice that if the DBJ does not take up the funds
we will have to utilize it for other purposes," Mr. Clarke told
The Gleaner.

The conditions set by the Development Bank was "unpalatable",
The Gleaner says, citing Mr. Clarke.

The Gleaner underscores that Mr. Clarke accused the Development
Bank of "playing hardball in its attempts to earn a spread on
the funds".

Mr. Clarke told The Gleaner, "They said they wanted a spread,
I'd rather not say what that spread is.  Suffice it to say we
will not provide a spread.  We absolutely will not provide one!"

The report says that the Development Bank, under the terms of
the hotel loan, would earn no spread.  It would borrow from
Scotiabank at 8% and "onlend" at the same 8%.  The funds for
farmers are provided at 7.625% for "onlending" at 7.875%,
allowing a spread of 0.125%.

The Gleaner relates that as a response, the Development Bank,
which is now headed by acting managing director Wayne
Whittingham, implied that if it were to accept the terms, it
would be a poor business decision.  

According to The Gleaner, the Development Bank described
Scotiabank's terms as "meager".  The spread was insufficient to
cover the small lenders' administrative charges and credit risk.

The Development Bank said in a statement, "Bearing in mind that
the PC Banks are autonomous entities and cannot be forced to
make such an unprofitable business decision, and adding to that
the extremely risky nature of agricultural lending, the
situation has become untenable."

The Development Bank told The Gleaner that financial
institutions like Scotiabank would not accept similar terms and
often request spreads above the 3% margin the Development Bank
allows when it lends through the commercial banks.

Mr. Clarke told The Gleaner that the Development Bank was trying
to shift blame for the loan facility's delay to Scotiabank.  

The Development Bank said it has been talking with Scotiabank
about its concerns, according to The Gleaner.  

The Development Bank told The Gleaner, "As stated in our
numerous letters to BNS (Scotiabank), we continue to commend
them for their initiative to assist the agricultural and tourism
sectors.  However, we must express our disappointment in the
manner in which the DBJ (Development Bank) is being portrayed in
the media by BNS."

"We are not going to withdraw the offer," The Gleaner reports,
citing Mr. Clarke, though he said earlier that Scotiabank might
use the funds for other purposes.

"We made the offer in good faith and I think we just need to
clear the bureaucracy and get the funds out to people.  We
believe that the Prime Minister and the Minister of Finance
should in fact deal with these agencies who have a mind of their
own," Mr. Clarke told The Gleaner.

                        *    *    *

As reported in the Troubled Company Reporter on June 15, 2006,
Moody's Investors Service affirmed the ratings and outlook of
the Bank of Nova Scotia (Scotiabank -- long-term deposits at
Aa3, bank financial strength at B, stable outlook) following the
announcement that the bank reached an agreement to acquire 78%
of Corporacion Interfin, S.A., the parent of Banco Interfin,
S.A.  Scotiabank will merge Interfin with its Costa Rican
subsidiary, Scotiabank de Costa Rica S.A.


SCOTIABANK: Jamaican Unit Okays Third Dividend Payment
------------------------------------------------------
The Jamaican unit of the Bank of Nova Scotia aka Scotiabank has
approved a third interim dividend of 28 per stock unit, Radio
Jamaica reports.

Stockholders on record at Sept. 13, 2006, will receive the
dividend on Oct. 5, Radio Jamaica relates.

Scotiabank said in its report for the third quarter of 2006 that
this brings the year to date dividend per share to 78 cents,
compared to 75 cents for the same period last year.

                        *    *    *

As reported in the Troubled Company Reporter on June 15, 2006,
Moody's Investors Service affirmed the ratings and outlook of
the Bank of Nova Scotia (Scotiabank -- long-term deposits at
Aa3, bank financial strength at B, stable outlook) following the
announcement that the bank reached an agreement to acquire 78%
of Corporacion Interfin, S.A., the parent of Banco Interfin,
S.A.  Scotiabank will merge Interfin with its Costa Rican
subsidiary, Scotiabank de Costa Rica S.A.


SCOTIABANK: Posts US$1,685 Mil. Third Quarter 2006 Net Profit
-------------------------------------------------------------
Scotiabank reported strong earnings in the third quarter of
2006, with net profit of US$1,685 million, an increase of 17.6%
compared with the net profit for the third quarter of 2005.

For the nine-month period ended July 31, 2006, the net profit
was US$4,984 million compared to net profit US$4,289 million for
the same period last year, an increase of US$695 million or
16.20%.  Earnings per share for the quarter was 58 cents,
compared to 49 cents for last year.  The year to date EPS was
US$1.70, while Return on Average Equity annualized was 26.76%.

William E. Clarke, the president and chief executive officer of
Scotiabank, said "Scotiabank continues to demonstrate strong
performance based on a deliberate strategic focus on core
banking.  We make concerted efforts at building stronger
relationships with our customers while leveraging our strengths
-- customer satisfaction, diversification, expense control,
people, risk management, and most importantly solid execution of
strategies as a financial intermediary."

The Board of Directors approved a third interim dividend of 28
cents per stock unit, payable on Oct. 5, 2006, to stockholders
on record at Sept. 13, 2006.  This brings the year to date
dividend per share to 78 cents, compared to 75 cents for the
same period last year.

Total Revenue comprising net interest revenue and other income
was US$19,813 million, an increase of US$1,209 million or 6.5%
from prior year.

Net interest income was US$11,478 million, increasing US$1,152
million compared with last year.  This is as a result of strong
volume growth primarily in our retail portfolio, as net interest
margin continue to trend downwards.

Other revenue, excluding Insurance Premium Income, was US$2,994
million, rising US$489 million compared with last year, driven
mainly by the growth in our retail portfolio.  Insurance Premium
is attributable to ScotiaMINT, the interest sensitive life
insurance policy, marketed by Scotia Jamaica Life Insurance
Company Limited.  SJLIC reported gross premium income of
US$3.1 billion for the nine-month period.

With strong revenue growth and our continued unwavering focus on
managing costs across the group, Scotiabank's productivity ratio
-- non-interest expense as a percentage of total revenue, a key
measure of cost efficiency -- was 52.88%.  If insurance premium
and related actuarial expenses were excluded, to recognize the
significant dissimilarities between the revenue/expense pattern
of the insurance business and the other financial services
offered by the Scotiabank group, the productivity ratio for the
period was 42.78%, which is significantly better than the
international benchmark of 60%.

Non-interest Expenses excluding Change in Policyholders' Reserve
and Loan Loss Provisions, were US$5,863 million, an increase of
US$774 million over last year, which is primarily due to
increases in staff related costs.

Policyholders Reserves for ScotiaMINT's life insurance fund is
directly attributed to the business in force.

Scotiabank's credit quality continues to be outstanding both by
international standards and when compared with our peers
locally.   Non-performing Loans at July 31, 2006, was US$944
million, an improvement of US$70 million when compared to
US$1,014 million a year ago, and US$15 million above the
previous quarter ended April 30, 2006.  The Group's non-
performing loans represent 1.58% of total loans and 0.49% of
total assets compared to 1.82% and 0.59% respectively at the end
of the third quarter of 2005.

The IFRS Loan Loss Provisioning requirements are computed using
a different methodology from the Regulatory requirement.  The
difference in the amount computed under the two methodologies is
reported as Loan Loss Reserve in the equity component of the
Balance Sheet.  The loan loss provision as determined by IFRS is
US$485 million, of which $337 million is specific and US$148
million is general.

The loan loss provision as determined by Regulatory Requirement
is US$1,292 million of which US$701 million is specific and $591
million is general.  The total provision of US$1,292 million
exceeds total non-performing loans by US$348 million, and
provides coverage of 137% of non-performing loans.

Total assets increased year over year by US$22 Billion or 13% to
US$194 Billion as at July 31, 2006.  Performing Loans as at July
31, 2006 were US$58.9 billion, up US$4.1 billion over the
previous year.  Cash Resources increased by US$5.2 billion due
mainly to continued growth in deposits, while Investments and
Repurchase Agreements increased by US$10.4 billion.  Retirement
Benefit Asset represents the net of the present value of pension
obligation and the fair value of the pension plan assets as
determined by independent actuaries.

Deposits were US$117.3 billion, increasing 12% from the previous
year, reflecting continued confidence in Scotiabank.

Scotiabank's capital base continues to be very strong.  Total
shareholders equity rose to US$26.2 billion, about US$905
million more than the previous quarter and US$3.5 billion higher
than last year.

                        *    *    *

As reported in the Troubled Company Reporter on June 15, 2006,
Moody's Investors Service affirmed the ratings and outlook of
the Bank of Nova Scotia (Scotiabank -- long-term deposits at
Aa3, bank financial strength at B, stable outlook) following the
announcement that the bank reached an agreement to acquire 78%
of Corporacion Interfin, S.A., the parent of Banco Interfin,
S.A.  Scotiabank will merge Interfin with its Costa Rican
subsidiary, Scotiabank de Costa Rica S.A.




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


BALLY TOTAL: Enters Confidentiality Accord with Pardus Capital
--------------------------------------------------------------
Bally Total Fitness Holding Corp. has entered into a
confidentiality agreement with Pardus Capital Management, its
largest shareholder, the Associated Press reports.

Pardus Capital told AP that it would receive confidential
information about Bally Total.

AP notes that Pardus Capital said in a filing with the US
Securities and Exchange Commission late last week that Bally
Total will give it certain private information to be used in the
evaluation and negotiation of a possible strategic transaction
with Pardus Capital.

AP underscores that under the agreement, Pardus Capital can:

    -- nominate individuals to Bally's board of directors;
    -- bring business before a stockholders meeting; and
    -- conduct a proxy solicitation in support of director  
       nominees.

Pardus Capital agreed not to buy or sell Bally Total securities
for a "period ending three business days", after Oct. 16, AP
states.

Bally Total Fitness Holding Corp. -- http://www.Ballyfitness.com   
-- is a 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.  

                        *    *    *

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.


COGENTRIX ENERGY: S&P Affirms BB- Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating on electric power producer Cogentrix Energy Inc.

At the same time, Standard & Poor's affirmed it 'BB+' rating and
'1' recovery rating on Cogentrix $700 million bank loan ($247.7
million term loan outstanding as of June 30, 2006) and $50
million revolving credit facility.

Standard & Poor's also affirmed its 'A+' rating on the company's
US$355 million 8.75% senior notes due on 2008 guaranteed by
Goldman Sachs & Co.  The outlook is stable.  The company is a
stand-alone subsidiary of The Goldman Sachs Group Inc.
(A+/Positive/A-1).  The ratings affirmation follows Standard &
Poor's periodic review of the company.

"Ratings stability reflects Cogentrix's solid operational
performance and stable, contractual cash flow stream," said
Standard & Poor's credit analyst Elif Acar.

"However, cash distribution encumbrances from projects, mainly
the Indiantown cogeneration project, may continue to negatively
affect cash flow," said Ms. Acar.

The 'BB-' corporate credit rating on Cogentrix reflects the
company's heavy, though decreasing, debt burden at the parent
level which is structurally subordinated to debt at the
company's operating projects. The rating also reflects
deteriorating distributions from some key subsidiaries.


COMVERSE TECH: Subsidiary to Acquire Netonomy(R) for US$19 Mil.
---------------------------------------------------------------
Comverse, a subsidiary of Comverse Technology, Inc., has signed
a definitive agreement to acquire privately-held Netonomy for
approximately US$19 million in cash.

"This acquisition is in line with our strategic efforts to
continually enhance Comverse's Total Communication Product
Portfolio's ability to generate revenues, strengthen customer
loyalty and improve operational efficiency for communication
service providers," Raz Alon, interim CEO of Comverse
Technology, said.

"Joining Comverse was a natural move," said John Ball, CEO of
Netonomy.  "Service providers need to accelerate the adoption of
direct self-service quicker than ever to lower their cost of
acquisition and service, regardless of market segment.  Web
access to select and change plans and features also improves
customer satisfaction and loyalty, while reducing operational
costs."

                  About Comverse Technology

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.


CONSTELLATION BRANDS: Grupo Modelo Venture Gets HSR Clearance
-------------------------------------------------------------
Grupo Modelo, S.A. de C. V. and Constellation Brands, Inc., have
received notice from the Federal Trade Commission that the Hart-
Scott-Rodino waiting period for review of their proposed joint
venture to import beer brands to the U.S. and Guam is
terminated.  

The FTC notice signals the closing of the review by FTC and
Department of Justice regulators, and lifts all constraints
under the Hart-Scott-Rodino Act to establish the joint venture.  
The companies are proceeding with plans to form the joint
venture, including satisfaction of unrelated regulatory and
licensing requirements.  The joint venture will become
operational effective Jan. 2, 2007.  On July 17, 2006, the
companies announced an agreement to form the joint venture,
which will import and market Grupo Modelo brands in the United
States and Guam through 2016.  The joint venture will conduct
business as Crown Imports LLC.

                    About Grupo Modelo

Founded in 1925, Grupo Modelo is the leader in the production
and marketing of beer in Mexico, with 62.8% of the total
(domestic and export) market share, as of Dec. 31, 2005.  The
company has seven brewing plants in Mexico, with a total annual
installed capacity of 52.0 million hectoliters.  Grupo Modelo
currently brews and distributes 12 brands; Corona Extra, the
number one Mexican beer in the world, Corona Light, Modelo
Especial, Victoria, Pacifico, Negra Modelo among others.  The
company exports five brands with a presence in more than 150
countries, and it is the exclusive importer of Anheuser-Busch
products in Mexico.

                 About Constellation Brands

Based in Fairport, New York, Constellation Brands, Inc.
(NYSE:STZ, ASX:CBR) -- http://www.cbrands.com/-- produces and  
markets beverage alcohol brands with a broad portfolio across
the wine, spirits and imported beer categories.  Well-known
brands in Constellation's portfolio include: Almaden, Arbor
Mist, Vendange, Woodbridge by Robert Mondavi, Hardys, Nobilo,
Kim Crawford, Alice White, Ruffino, Kumala, Robert Mondavi
Private Selection, Rex Goliath, Toasted Head, Blackstone,
Ravenswood, Estancia, Franciscan Oakville Estate, Inniskillin,
Jackson-Triggs, Simi, Robert Mondavi Winery, Stowells,
Blackthorn, Black Velvet, Mr. Boston, Fleischmann's, Paul Masson
Grande Amber Brandy, Chi-Chi's, 99 Schnapps, Ridgemont Reserve
1792, Effen Vodka, Corona Extra, Corona Light, Pacifico, Modelo
Especial, Negra Modelo, St. Pauli Girl, Tsingtao.

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


                          *     *     *

As reported in the Troubled Company Reporter on Aug. 14, 2006,
Moody's Investors Service assigned a (P)Ba2 rating to
Constellation Brands, Inc.'s new shelf and concurrently, a Ba2
rating to Constellation's new $500 million senior unsecured
note, due 2016.  Constellation's existing ratings are not
affected by these actions, and have been affirmed.  The ratings
outlook remains negative.


GRUPO TMM: Inks US$200MM Securitization Pact with Deutsche Bank
---------------------------------------------------------------
Grupo TMM, SA, a Mexican multi-modal transportation and
logistics firm, and some of its subsidiaries have entered into
an agreement for the securitization of US$200 million with
Deutsche Bank AG, London.  The transaction was approved at Grupo
TMM's Shareholders' Meeting on Aug. 18, 2006, and is subject to
customary closing conditions, including but not limited to, no
material adverse changes in market conditions or the financial
situation of the company.

Once the closing conditions are met, Grupo TMM will use the
proceeds from the transaction to refinance existing indebtedness
and for capital investments in future projects.

Deutsche Bank, who acted as structuring agent of this facility,
will provide funding for the transaction.  The Bank of New York
will be the trustee for the certificates issued under this
facility.

Javier Segovia, the president of Grupo TMM, said, "This
transaction not only extends our debt maturity, eliminating any
refinancing risk in 2007, but also gives the company added
financial flexibility and provides us with the resources to
implement our business strategy."

Headquartered in Mexico City, Grupo TMM S.A. (NYSE: TMM)(MEX
VALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin  
American multimodal transportation and logistics company.  
Through its branch offices and network of subsidiary companies,
TMM provides a dynamic combination of ocean and land
transportation services.

                        *    *    *

Standard & Poor's Ratings Services raised its corporate credit
rating on Grupo TMM S.A. to 'B-' from 'CCC.'  The rating was
removed from Creditwatch, where it was placed on Dec. 15, 2004.  
S&P said the outlook is positive.


METROFINANCIERA SA: S&P Affirms BB- Counterparty Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
foreign currency counterparty credit rating on Metrofinanciera
S.A. de C.V. SFOL.  At the same time, the 'B-' subordinated debt
rating on Metrofinanciera's US$100 million noncumulative
subordinated step-up securities (perpetual securities) was also
affirmed.  The outlook is stable.

"The ratings assigned to Metrofinanciera reflect the loan
portfolio concentration in residential construction loans,
aggressive management and a low capital base to support the
inherent risks of a construction-oriented portfolio, aggressive
growth projections, and, recently, coinvestment in land banks
for housing developers," said Standard & Poor's credit analyst
Francisco Suarez.  Nevertheless, the ratings are balanced by the
firm's capacity to maintain a high revenue stream, its capacity
and willingness compared to those of its peers to maintain near-
full coverage of nonperforming assets without significantly
affecting its overall profitability, and a better funding base
compared to those of its peers.

In addition, Metrofinanciera recently made coinvestments in land
banks for housing developers that, although potentially
beneficial for new future business, convey an additional risk
factor. Given the concentration risks derived from an
orientation toward residential construction loans, and the new
strategy of coinvestments in land banks for housing developers,
in our opinion the capital base is low and even though the
issuance of a perpetual bond worth US$100 million provides some
degree of financial flexibility, the benefits of such an
issuance are limited due to the low capital base.  Thus,
additional capital is needed to support the aggressive growth
targets of the administration.

Metrofinanciera maintains a conservative policy as to credit-
loss reserves within the industry.  Although the risk profile of
Metrofinanciera demands a higher level of provisions, and its
revenue streams enable it to keep high coverage, the willingness
to create such reserves distinguishes Metrofinanciera from its
peers.  In that regard, Metrofinanciera maintains twice the
coverage reported by the sector.

The company is one of the Sofoles with a good track record of
access to local and international markets.  As of June 2006, the
firm's dependence on funding by Sociedad Hipotecaria Federal was
confined to mortgages.  Metrofinanciera has to prove that it
will be as successful in obtaining funding for mortgages as it
has been in residential construction loans.

The outlook is stable.  Standard & Poor's expects
Metrofinanciera to be able to sustain adequate profitability and
coverage of NPAs according to the risk profile of its portfolio
and its aggressive business model. If the firm is also able to
improve its coverage of NPAs and the risk profile of its
portfolio, a positive rating action might follow.  In contrast,
ratings might be under pressure if the company increases its
leverage, particularly debt-to-adjusted total equity above
14.0x, or if a significant deterioration in asset quality
indicators and profitability occurs.


PETROLEO BRASILEIRO: Eyes Partnership with Petroleos Mexicanos
--------------------------------------------------------------
Petroleo Brasileiro aka Petrobras, the state-run oil company of
Brazil, is planning to enter into a partnership with Petroleos
Mexicanos, Mexico's oil monopoly, Gazeta Mercantil reports.

Dow Jones Newswires relates that Petrobras is currently a
service provider of Petroleos Mexicanos in two oil blocks on
land.

Claudio Castejon, the executive manager at Petrobras'
international area, told Dow Jones that Petrobras is prepared to
send drilling rigs and investments to Mexico's Gulf waters as
soon as president-elect Felipe Calderon were to change Mexico's
oil legislation and allow foreign firms to enter the market.

Dow Jones notes that Mr. Calderon had said he was interested to
learn from Petrobras about deepwater exploration and production,
in which Petrobras has expertise.

According to the report, Petroleos Mexicanos considers deep-
water exploration as the long-term solution to restoring
reserves and output.  The company's main oil-producing field
Cantarell has begun to deteriorate.

Dow Jones underscores that Petrobras is drilling several wells
on the US side of the Gulf of Mexico.  The firm expects an out
put of 100,000 barrels of oil per day by the end of the decade.

Mr. Castejon said that Petrobras sees synergies between its
operations on the US Gulf of Mexico and operations in water of
Mexico, Gazeta Mercantil states.

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

                        *    *    *

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

                        *    *    *

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

  Foreign Currency:

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

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

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


SATELITES MEXICANOS: Wants Court Approval to Pay Taxes and Fees
---------------------------------------------------------------
Satelites Mexicanos, S.A. de C.V., seeks authority from the U.S.
Bankruptcy Court for the Southern District of New York, to pay
the taxes and regulatory fees as and when they become due in the
ordinary course of its business.

In connection with the normal operations of its business, the
Debtor (i) collects, incurs and remits a variety of taxes, fees
and other charges to various Mexican taxing authorities, and
(ii) pays various regulatory fees, which are essential to the
Debtor's international operations, to both foreign and domestic
regulatory authorities or administrative agencies.

Payment of the prepetition taxes and regulatory fees is critical
to the Debtor's continued, uninterrupted operations.  Non-
payment of the Taxes may cause the Taxing Authorities to take
precipitous action, including conducting audits, filing liens,
seeking to impose criminal liability against the Debtor and its
directors and officers, and revoking licenses and concessions
the Debtor needs to operate its satellites, Luc A. Despins,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York,
explains.  This would disrupt the Debtor's day-to-day operations
and could potentially impose significant costs on the Debtor's
estate, Mr. Despins says.

Mr. Despins relates that the Taxes are not property of the
Debtor's estate under Section 541 of the Bankruptcy Code.  Many
of the Taxes are collected or withheld by the Debtor on behalf
of the applicable Taxing Authority and are held in trust by the
Debtor for the Taxing Authorities' benefit.

                     The Tax Obligations

(A) Employee Salaries

The Debtor employs 187 full-time and 19 part-time employees.  
Other than the chief executive officer, who is employed directly
by the Debtor, all of the Debtor's Employees are employed
through its three non-debtor affiliates.  Under Mexican law, the
Debtor and the Employee Affiliates are jointly liable for
payment of each Employee's wages and benefits.

The Debtor is obligated to pay withholding taxes to the
Secretaria de Hacienda y Credito Publico, Mexican Ministry of
Finance and Public Credit, relating to the salaries of its
employees.

The Debtor's average monthly Withholding Tax obligation to its
Employees aggregates US$241,800.  As of the date of filing for
chapter 11 protection, the Debtor estimates that US$258,000 in
Withholding Tax obligations was accrued but unpaid on account of
its Employees.

(B) Fees to Independent Service Providers

The Debtor is also obligated to pay withholding taxes to the
MFPC on the fees charged by independent contractors, like self-
employed accountants, attorneys and consultants, within the
Mexican territory.  The Debtor's average monthly Withholding Tax
obligation to its Independent Service Providers aggregates
US$9,600.  As of the date of filing for chapter 11 protection,
the Debtor estimates that US$6,226 in Withholding Tax
obligations was accrued but unpaid on account of its Independent
Service Providers.

(C) Social Security

Mexican law requires that each Employee become affiliated to the
Instituto Mexicano del Seguro Social, Mexican Social Security
Institute, Mexico's social security program.  The Debtor is
required to make monthly payments, through the applicable
Employee Affiliate, to IMSS on account of each Employee.

The Debtor's average yearly Social Security obligations
aggregate US$1,100,000.  As of the date of filing for chapter 11
protection, the Debtor estimates that US$74,000 in Social
Security obligations was accrued but unpaid.

In addition, each Employee is required to pay a quota to IMSS.
The Debtor makes quarterly payments to IMSS to cover the
Employees' quota obligation.

The aggregate annual cost to the Debtor of the Social Security
Quota Support benefit is US$176,000.  As of the date of filing
for chapter 11 protection, the Debtor estimates that US$15,000
remains outstanding for its Social Security Quota Support
obligations.

(D) VAT and Other Withholding Taxes

The Debtor is obligated to pay value-added taxes to the MFPC on
the revenues it receives for certain goods and services it
provides as well as on the expenses it pays on certain goods and
services it receives.  The Debtor's average monthly VAT
obligations relating to revenues, as reduced by VAT obligations
relating to expenses considered creditable pursuant to the VAT
Law, aggregate US$27,200.  As of the date of filing for chapter
11 protection, the Debtor estimates that US$36,200 was accrued
but unpaid on account of VAT obligations on revenues.

The Debtor is also obligated to pay Withholding Taxes to the
MFPC on certain royalties paid in connection with the broadcast
segment of its business.  The Debtor's average monthly
Withholding Tax obligations relating to the Royalties aggregate
US$7,400.  As of the date of filing for chapter 11 protection,
the Debtor estimates that US$8,900 in Withholding Tax
obligations was accrued but unpaid on account of Royalties.

                    The Regulatory Fees

(A) Property Concessions

The Debtor's satellite operations are regulated by the Mexican
Government.  The Debtor is required to pay property concessions
to Mexican Regulatory Authorities and Administrative Agencies
every two months in connection with the concession it received
from the Mexican Government that permits it to use its satellite
control centers, and the related land and buildings on which
they are located.

The Debtor's average bi-monthly Property Concession obligations
aggregate US$70,000.  As of the date of filing for chapter 11
protection, the Debtor estimates that US$71,400 in Property
Concession obligations was accrued but unpaid.

(B) Landing Rights

The Debtor is required to obtain landing rights in the countries
where it seeks to operate, and the Regulatory Authorities and
Administrative Agencies in these countries impose charges on the
licenses the Debtor needs for its operations.

The Debtor's Landing Right obligations, which are generally paid
annually towards the end of the year, aggregated US$39,200 for
2005.  The Debtor's Landing Right obligations for 2006 have
increased compared to previous years due to the recent launch of
Satmex 6.

The Debtor estimates that its outstanding Landing Right
obligations for 2006, through and including December 31, 2006,
will total US$97,545.

                 About Satelites Mexicanos

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

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

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

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


UNITED RENTALS: S&P Affirms BB- Corporate Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services removed the ratings on
equipment rental company United Rentals (North America) Inc. and
on its parent, United Rentals Inc. (URI), from CreditWatch with
developing implications.  At the same time, Standard & Poor's
affirmed its ratings on the Greenwich, Connecticut-based
company, including its 'BB-' corporate credit rating.  The
ratings were originally placed on CreditWatch with negative
implications on Aug. 30, 2004.  The outlook is positive.

"The rating and outlook reflect the improved industry
fundamentals in the cyclical equipment rental industry, URI's
strengthening credit metrics, and our expectations that the
company will maintain financial and acquisition discipline,"
according to Standard & Poor's credit analyst John R. Sico.

The removal from CreditWatch recognizes URI's status as a
current filer on its regulatory filings.  Although the ultimate
outcome of the ongoing SEC investigation is uncertain, it is our
view that it is less likely to have a material impact on the
company's credit risk and the rating. A material adverse outcome
from the ongoing SEC review or from shareholder lawsuits is not
incorporated into the rating.




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


ADELPHIA: Paying US$600 Mil. in Cash & Stock to Restitution Fund
----------------------------------------------------------------
In its Form 10-Q filed with the US Securities and Exchange
Commission on Aug. 14, 2006, Adelphia Communications Corp.
disclosed that as a result of the ACOM Debtors' sale of
substantially all of their assets to Time Warner NY Cable, LLC,
and Comcast Corp., ACOM's contribution to the Restitution Fund
will consist of US$600,000,000 in cash and stock, with at least
US$200,000,000 in cash, and 50% of the first US$230,000,000 of
future proceeds, if any, from certain litigation against third
parties who injured ACOM.

The restitution fund is for the benefit of defrauded Adelphia
investors.

ACOM's Chief Financial Officer Vanessa A. Wittman relates that
unless extended on consent of the U.S. Attorney and the
Securities and Exchange Commission, which consent may not be
unreasonably withheld, ACOM must make those payments on or
before the earlier of:

    (i) October 15, 2006;

   (ii) 120 days after confirmation of a stand-alone plan of
        reorganization; or

  (iii) seven days after the first distribution of stock or cash
        to creditors under any plan of reorganization.

ACOM recorded charges of US$425,000,000 and US$175,000,000
during 2004 and 2002, related to the Non-Prosecution Agreement.

Pursuant to letter agreements with Time Warner NY and Comcast,
the U.S. Attorney has agreed, notwithstanding ACOM's failure to
comply with the Non-Prosecution Agreement, that it will not
criminally prosecute any of the joint venture entities or their
subsidiaries purchased from ACOM by Time Warner NY or Comcast
pursuant to the asset purchase agreements dated April 20, 2005,
as amended.

Under those letter agreements, Ms. Wittman says, each of Time
Warner NY and Comcast have agreed that following the closing of
the Sale Transaction, they will cooperate with the relevant
governmental authorities' requests for information about ACOM's
operations, finances and corporate governance between 1997 and
confirmation of the Debtors' plan of reorganization.

The sole and exclusive remedy against Time Warner NY or Comcast
for breach of any obligation in the letter agreements is a civil
action for breach of contract seeking specific performance of
those obligations.  In addition, Time Warner NY and Comcast
entered into letter agreements with the SEC agreeing that upon
and after the closing of the Sale Transaction, Time Warner NY,
Comcast and their affiliates will not be subject to, or have any
obligation under, the final judgment consented to by ACOM in the
SEC Civil Action.

                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)


ADELPHIA COMMS: Sells Lots, Frame Tower & Timber for US$412,731
---------------------------------------------------------------
Pursuant to the Excess Assets Sale Procedures approved by the
U.S. Bankruptcy Court for the Southern District of New York,
Adelphia Communications Corp. and its debtor-affiliates inform
the Court that they will sell these assets for US$412,731:

    1. Asset:            Real Property in Township of Allegany,
                         County of Potter, and Commonwealth of
                         Pennsylvania, with approximately 170
                         acres on tax arcel nos. 020-3-20 and
                         020-3-44-8
       Purchaser:        Michael Menard and Gary Kelsey
       Purchase Price:   US$136,200
       Agent:            Acker & Larsen, P.C.
       Deposit:          US$5,000
       Appraised Value:  No appraisal was conducted

    2. Asset:            Real Property in Township of Allegany,
                         County of Potter, and Commonwealth of
                         Pennsylvania, with approximately 32.5
                         acres on tax parcel nos. 020-3-22A
       Purchaser:        Bradley T. Hutzell
       Purchase Price:   US$142,000
       Agent:            Acker & Larsen, P.C.
       Deposit:          US$5,000
       Appraised Value:  No appraisal was conducted

    3. Asset:            35'x3'x8' frame tower with a 20'x20'
                         fencing enclosure
       Purchaser:        Lake San Marcos Community Association
       Purchase Price:   US$1
       Agent:            (none mentioned)
       Deposit:          none
       Appraised Value:  No appraisal was conducted

    4. Asset:            Real Property at Coudersport,
                         Pennsylvania
       Purchaser:        Cindy S. Welt
       Purchase Price:   US$26,500
       Agent:            Trail's End Realty
       Deposit:          US$1,000
       Appraised Value:  US$26,500

    5. Asset:          Timber and trees on tax parcel 020-3-17A,
                       in Potter County, Pennsylvania
       Purchaser:      Patterson Lumber Co. Inc.
       Purchase Price: US$108,030
       Agent:          Acker & Larsen, P.C.
       Deposit:        US$10,000
       Appraised Value:  No appraisal was conducted

                  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)


CONSOLIDATED CONTAINER: Delays Filing of Second Qtr. Financials
---------------------------------------------------------------
Consolidated Container Company LLC has informed the United
States Securities and Exchange that it will be unable to
finalize and file its Form 10-Q for the quarter ended June 30,
2006, until it completes the evaluation of a settlement.

Consolidated Container is in the process of evaluating the
accounting implications of an expected settlement with a
customer that relates to supply contracts and covers matters
arising prior to July 1, 2006.  

Consolidated says, at this point, it is still unable to
determine if there will be any significant change in results of
operations for the corresponding period in the last fiscal year
that will be reflected by the earnings statements to be included
in the second quarter Form 10-Q.

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

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


COVENTRY HEALTH: Earns US$135.5 Million in Quarter Ended June 30
----------------------------------------------------------------
Coventry Health Care, Inc., reported operating revenues of
US$1.94 billion for the quarter ended June 30, 2006, with net
earnings of US$135.5 million.  Revenues were up 17.7% over the
prior year quarter.

"We continue to be pleased with the results from our diverse
businesses, including Medicare Part D," said Dale B. Wolf, chief
executive officer of Coventry.  "The strong cash flow from our
businesses allows us to make investments to fuel future Company
growth and to provide shareholder value through deployment of
capital."

The Company recorded GAAP cash flows from operations of US$170.8
million or 126% of net income in the quarter, with year-to-date
cash flows from operations of US$661.4 million or 258% of net
income.

As of June 30, 2006, Coventry had total health plan membership
of 2.54 million members.  This represented an increase of 75,000
members over the prior year quarter driven by growth in
commercial membership and a decrease of 8,000 members from the
prior quarter driven primarily by losses in Medicaid membership
resulting from the Missouri eligibility re-certification process
impacting the Company in 2005 and the first half of 2006.

Commercial premium yields showed a favorable price-to-cost
spread in the second quarter.  Reported commercial yields rose
to US$258.43 PMPM (per member per month) in the quarter, an
increase of 5.9% over the prior year quarter.  Reported
commercial medical expense was US$199.43 PMPM in the quarter, an
increase of 2.2% over the prior year quarter.

Health Plan Medical Loss Ratio was 78.6%, a 150 basis point
improvement over the prior year quarter.  Commercial MLR of
77.2% improved 280 basis points, Medicare MLR of 79.5% increased
140 basis points, and Medicaid MLR of 86.0% increased 370 basis
points from the prior year quarter.

Health plan Net Premium Accounts Receivable of US$91.2 million
represent 5.3 days of sales outstanding.  Health plan Days in
Claims Payable for the quarter were 53.8, down 1.4 days from the
prior quarter of 55.2 and down 0.9 days from the prior year
quarter.

Coventry expects Total revenues of US$1.90 billion to US$1.95
billion for the 2006 third quarter with earnings per share on a
diluted basis of US$0.90 to US$0.92.  For the full year 2006,
the Company expects:

     -- Health plan membership growth toward the low end of the
        previously disclosed range of 1.0% to 3.0%;

     -- Risk revenues of US$6.8 billion to US$6.9 billion;

     -- Management services revenues of US$900.0 million to
        US$925 million;

     -- Consolidated revenues of US$7.70 billion to US$7.825
        billion; and

     -- Consolidated medical loss ratio of 79.7% to 80.0%;

A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?105b

                      About Coventry

Based in Bethesda, Maryland, Coventry Health Care, Inc.
(NYSE: CVH) -- http://www.cvty.com/-- is a national managed  
health care company operating health plans, insurance companies,
network rental/managed care and workers' compensation services
companies.  Coventry provides a full range of risk and fee-based
managed care products and services, including HMO, PPO, POS,
Medicare Advantage, Medicare Prescription Drug Plans, Medicaid,
Workers' Compensation services and Network Rental to a broad
cross section of individuals, employer and government-funded
groups, government agencies, and other insurance carriers and
administrators in all 50 states as well as the District of
Columbia and Puerto Rico.

                        *    *    *

On January 27, 2005, Fitch assigned Coventry Health Care's bank
loan debt, senior unsecured debt, and long-term issuer default
ratings at BB with a stable outlook.

In December 2004, Moody's assigned the Company's bank loan debt,
senior unsecured debt and long-term corporate family ratings at
Ba1 with a stable outlook.


DEVELOPERS DIVERSIFIED: To Launch US$250 Mil. Sr. Notes Offering
----------------------------------------------------------------
Developers Diversified Realty Corp. intends to offer, subject to
market and other conditions, US$250 million aggregate principal
amount of convertible senior notes due 2011 through an
offering to qualified institutional buyers in accordance with
Rule 144A under the US Securities Act of 1933, as amended.

The notes will be convertible into cash up to their principal
amount and Developers Diversified common shares in respect of
the remainder, if any, of the conversion value in excess of such
principal amount.  The interest rate, conversion rate and other
terms of the notes will be determined by negotiations between
Developers Diversified and the initial purchasers of the notes.  
Developers Diversified expects to grant to the initial
purchasers an option to purchase up to an additional US$37.5
million aggregate principal amount of notes to cover over-
allotments.

In connection with the offering, Developers Diversified expects
to enter into a convertible note hedge transaction with an
affiliate of an initial purchaser of the notes to substantially
increase the effective conversion premium of the notes.  This
transaction is also intended to reduce the potential dilution
upon future conversion of the notes.  In connection with the
transaction, the counterparty has advised Developers Diversified
that it or its affiliates expect to enter into various
derivative transactions with respect to Developers Diversified
common shares simultaneously with or shortly after the pricing
of the notes.

In addition, following pricing of the notes, the counterparty or
its affiliates may enter into or unwind various derivatives
and/or continue to purchase or sell Developers Diversified
common shares in secondary market transactions, including during
the observation period relating to any conversion of the notes.

Developers Diversified expects to use the net proceeds from the
offering to repurchase approximately US$50 million of its common
shares, for the repayment of outstanding debt under its senior
unsecured credit facility and for other general business
purposes.  Developers Diversified also expects to use a portion
of the net proceeds from the offering to fund the cost of the
convertible note hedge transaction.

                About Developers Diversified

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

                        *    *    *

Developers Diversified Realty Corp's Preferred stock currently
has Fitch Ratings' BB+' rating assigned in March 2003.


MAX RAVE: BCBG Max Azria Acquires 70% Equity from Guggenheim
------------------------------------------------------------
BCBG Max Azria Group, Inc., which currently owns 30% of Max
Rave, LLC, has acquired the remaining 70% equity interest from
Guggenheim Corporate Funding LLC.  Max Rave will be a subsidiary
of BCBG Max Azria Group, Inc.

The completion of this acquisition is an important step in
BCBG's strategy of expanding brands and channels of
distribution.

BCBG has modified and expanded its credit facilities to
facilitate this transaction and provide future working capital
for the combined businesses.

Max Rave currently operates 488 stores in the United States and
Puerto Rico under the names Rave, Rave Girl and G+G.  The
majority of these stores and related selling materials will be
rebranded with the Max Rave name later this year.

                    About BCBG Max Azria

Created in 1989, BCBG Max Azria was named for the Parisian
phrase "bon chic, bon genre", meaning "good style, good
attitude".  BCBG Max Azria Group, Inc. designs, develops,
produces and markets complete collections of women's ready-to-
wear and accessories, and select categories for men, each known
for being at the forefront of creativity, quality and style.  
The Group is one of the worldwide leaders in ready-to-wear,
encompassing a portfolio of 15 brands including BCBG Max Azria,
Max Azria, Max Azria Atelier, BCBGirls, BCBG//Attitude, To The
Max, Herve Leger Paris, Herve Leger Couture, Parallel, Max and
Cleo, Noun, Maxime, Dorothee Bis, Alain Manoukian and Max Rave,
and a retail and wholesale network that includes more than 5,200
points of sale throughout the world.

                        About G+G Retail

Headquartered in New York, New York, G+G Retail Inc. retails
ladies wear and operates 566 stores in the United States and
Puerto Rico under the names Rave, Rave Girl and G+G.  The Debtor
filed for Chapter 11 protection on Jan. 25, 2006 (Bankr.
S.D.N.Y. Case No. 06-10152).  William P. Weintraub, Esq., Laura
Davis Jones, Esq., David M. Bertenthal, Esq., and Curtis A.
Hehn, Esq., at Pachulski, Stang, Ziehl, Young & Jones P.C.
represent the Debtor in its restructuring efforts.  Scott L.
Hazan, Esq.. at Otterbourg, Steindler, Houston & Rosen, P.C.,
represents the Official Committee of Unsecured Creditors.  When
the Debtor filed for protection from its creditors, it estimated
assets of more than US$100 million and debts between US$10
million to US$50 million.


RES-CARE INC: S&P Raises Corporate Credit Rating to BB- from B+
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on
Louisville, Kentucky-based Res-Care Inc.  The corporate credit
rating was raised to 'BB-' from 'B+' and the rating outlook is
stable.  The senior secured debt rating was raised to 'BB' from
'BB-' and the senior unsecured debt rating was raised to 'B+'
from 'B'.

"This ratings action reflects the company's ability to
consistently expand margins despite a flat reimbursement
environment, and the resulting improvement in its financial
profile," said Standard & Poor's credit analyst Alain Pelanne.

The ratings on Res-Care reflect the company's narrow operating
focus and the potential for reimbursement rate pressures from
government and related payors dealing with overburdened budgets.
While the company has managed to reduce insurance and labor
expenses as a percentage of revenues during the past year,
EBITDA margins remain thin and are vulnerable to any negative
swings for key expenses.  These credit factors are partially
mitigated by Res-Care's successful expansion and diversification
of its core operations, its top standing in a unique market --
providing support services to individuals with special needs --
and its strengthening financial and liquidity profile.

Res-Care predominantly provides residential services, training,
education, and support services to populations with special
needs throughout the U.S., Puerto Rico, and Canada, including
people with developmental or other disabilities, and to at-risk
youths and people experiencing barriers to employment.  The
company's market has grown rapidly, as state agencies have
stopped providing services to at-risk populations.  While
reimbursement has been flat over the last few years, the company
has managed to generate growth in revenues through both
acquisitions and program expansion.

Res-Care's financial profile has improved steadily in recent
years. EBITDA growth should continue as the company diversifies
its revenues and gains further efficiencies in labor and
insurance costs.  Total lease-adjusted debt to EBITDA is
expected to be less than 3x going forward.  Despite its
relatively low operating margins, Res-Care has demonstrated an
ability to generate healthy cash flows sufficient to support its
obligations.  Funds from operations to total debt is expected to
be greater than 25%.


SANTANDER BANCORP: Declares Cash Dividend of US$0.16 Per Share
--------------------------------------------------------------
Santander BanCorp declared a cash dividend amounting to US$0.16
per common share.  The dividend shall be payable on October 2,
2006 to shareholders of record as of September 8, 2006.

Cash dividends on common shares are eligible for direct
reinvestment under the Company's Dividend Reinvestment and Cash
Purchase Plan.  For additional information on how to participate
in Santander BanCorp's Dividend Reinvestment and Cash Purchase
Plan, shareholders should contact the transfer agent and
registrar, Mellon Investor Services LLC, at (800) 851-9677.

Santander BanCorp is a publicly held financial holding company
that is traded on the New York Stock Exchange (SBP) and on
Latibex (Madrid Stock Exchange) (XSBP).  About 91% of the
outstanding common stock of Santander BanCorp is owned by Banco
Santander Central Hispano, S.A aka Santander.  The company has
four wholly owned subsidiaries -- Banco Santander Puerto Rico,
Santander Securities Corporation, Santander Financial Services
and Santander Insurance Agency.  

                        *    *   *

As reported in the Troubled Company Reporter on May 30, 2006,
Fitch affirmed the Individual ratings of Santander Bancorp and
Banco Santander Puerto Rico at 'C'.




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


DIGICEL LTD: Appoints Kevin White as CEO for Trinidad & Tobago
--------------------------------------------------------------
Digicel Group appointed Kevin White, CEO of Digicel Eastern
Caribbean, as the new CEO of Digicel Trinidad & Tobago.  
Mr. White will lead the Digicel Trinidad & Tobago operation into
the next stage of its dynamic growth.

Former Digicel Trinidad & Tobago CEO Mr. Stephen Brewer has
resigned as CEO to pursue other business interests.  Consumer
Sales and Retail Director Yvonne Burke also resigned.  Both Mr.
Brewer and Ms. Burke will continue to support the strategic
development of Digicel Trinidad & Tobago by remaining as
consultants to the company.

Digicel launched services in Trinidad & Tobago in April, and
today, Digicel Group CEO Mr. Colm Delves paid tribute to Mr.
Brewer for his significant contribution in successfully
launching and leading Digicel to become a major force in mobile
telecommunications in Trinidad & Tobago.

"Stephen has made a major contribution to Digicel's phenomenal
success to date in Trinidad & Tobago and we wish him every
success in his future business career," said Colm Delves,
Digicel Group CEO.

Kevin White joined Digicel in January 2002 and has been
instrumental in propelling Digicel's growth in the Eastern
Caribbean. He successfully grew Digicel to become a market
leader in St. Lucia, St. Vincent & the Grenadines, Grenada and
Barbados.  In 2005, he assumed responsibility for the rollout
and development of the business into Antigua, St. Kitts and
Nevis, Anguilla and Dominica.

Digicel CEO Mr. Colm Delves added, "We are confident that Kevin
will lead Digicel to become the number one provider of choice in
Trinidad & Tobago.

"He not only has the proven track record, but he holds
invaluable expertise that is necessary to continue our vision of
offering high value cutting-edge telecommunications services to
consumers and businesses throughout Trinidad & Tobago."

Kevin has more than 15 years experience working in Senior
Commercial Management roles in the telecommunications industry
in the UK and Ireland for companies such as Worldcom, Mercury
Communications and Esat Telecom.

To date, Digicel has invested US$304 million (TT$1.9 billion)
into the Trinidad & Tobago economy by building a state-of-the-
art infrastructure to deliver best value and best quality
services to the people of Trinidad & Tobago. The company has
also created high levels of employment with 400 persons directly
employed and another 3,000 in related activities.

In June 2006, Digicel recorded a milestone subscriber base of
2.6 million following successful launches in new markets such as
Trinidad & Tobago and Haiti. Mobile customers across the region
have embraced Digicel's innovative mobile technology and
accessible telecommunications services.

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

                        *    *    *

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

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


MIRANT CORPORATION: Gregorys Want US$42-Million Claims Allowed
--------------------------------------------------------------
Vernon J. Gregory and Sandra Jolene Gregory filed in 2004 four
proofs of claim against Mirant Corp. and its debtor-affiliates
for US$21,000,000 each:

    Debtor                                Claim No.
    ------                                ---------
    Mirant Corporation                      7994
    Mirant Sugar Creek, L.L.C.              7991
    Mirant Sugar Creek Ventures, Inc.       7992
    Mirant Sugar Creek Holdings, Inc.       7993

The Debtors objected to the Gregorys' Claims, but later withdrew
their Objection.

On October 26, 2005, Mirant sought and obtained a Court order
lifting the automatic stay to allow liquidation of the Gregorys'
Claims in a court of appropriate jurisdiction.

For the purpose of voting to accept or reject the Debtors' Plan
and for objecting to the Plan's confirmation, Judge Lynn
temporarily allowed Claim No. 7994 as a general unsecured claim
for US$21,000,000.

Pursuant to the Bankruptcy Court's Order, the Gregorys filed a
civil lawsuit against the four Mirant Debtors in the U.S.
District Court of the Southern District of Indiana.

While preparing service of process, the Gregorys were informed
by Jay Wilson, Mirant's registered agent, that service was not
permitted for Mirant Sugar Creek Ventures and Mirant Sugar Creek
Holdings because the two entities were merged into Mirant
Americas, Inc., and no longer exist.  Mr. Wilson, instead,
advised the Gregorys to amend the complaint against Mirant
Americas.

The Gregorys responded that they do not have a claim against
Mirant Americas, and they cannot simply amend their complaint.

Paul J. Castronovo, Esq., in Hoffman Estates, Illinois, explains
that a motion to amend the Gregorys' civil complaint naming
Mirant Americas as a defendant, in its capacity as a successor-
in-interest to Mirant Sugar Creek Ventures and Mirant Sugar
Creek Holdings, must:

    * be based on a Bankruptcy Court order; and

    * not violate the Plan's discharge injunctions and Section
      524(a)(2) of the Bankruptcy Code.

Mr. Castronovo asserts that the Debtors committed a fraudulent
act by not disclosing the mergers, and breached the Confirmation
Order.  As a result, the Gregorys cannot liquidate their claims
against entities that no longer existed.

The Gregorys ask Judge Lynn to:

    (a) allow Claim No. 7992 against Mirant Sugar Creek Ventures
        and Claim No. 7993 against Mirant Sugar Creek Holdings
        for US$21,000,000 each; and

    (b) direct the Reorganized Debtors' disbursing agent to make
        the distributions.

Mr. Castronovo says the Gregorys have obtained prima facie
status for the validity of their Claims and amount of each
Claim.

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's investments in the Caribbean include
three integrated utilities and assets in Jamaica, Grand Bahama,
Trinidad and Tobago and Curacao.  Mirant owns or leases more
than 18,000 megawatts of electric generating capacity globally.  
Mirant 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
Corporation and its subsidiaries Mirant North America, LLC and
Mirant Americas Generation, LLC.  The Ba2 rating for Mirant Mid-
Atlantic, LLC's secured pass through trust certificates was
affirmed.  The rating outlook is stable for Mirant, MNA, MAG,
and MIRMA.

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

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

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

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

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


MIRANT: Lovett Unit Gets Court Approval on New York DEC Order
-------------------------------------------------------------
Mirant Lovett, LLC, a Mirant Corp. debtor-affiliate, owns
and operates the Lovett Coal Ash Management Facility located in
the town of Stony Point, New York.  Mirant Lovett purchased the
Lovett Coal Ash Facility from Orange and Rockland Utilities,
Inc.

In May 2005, the New York Department of Environmental
Conservation served an administrative Notice of Hearing and
Complaint on Mirant Lovett and Mirant New York, Inc., regarding
the Lovett Coal Ash Facility.

The DEC has the authority to enforce New York's environmental
laws, and has jurisdiction over the operation and closure of
solid waste management facilities.

The DEC Complaint alleged, among other things, that Mirant
Lovett failed to perform certain investigation and remediation
or restoration measures at the Lovett Coal Ash Facility in
compliance with New York's Department of Environmental
Conservation Rules and Regulations.

Based on the allegations in the DEC Complaint, Mirant Lovett
estimated that the cost of compliance with Title 6 Part 360 of
the New York Conservation Rules and Regulations will be more
than US$1,000,000.

Additionally, the DEC may impose certain penalties for violation
of the NYCRR of up to US$7,500 plus US$1,500 per day, for each
violation of any rule or regulation promulgated or order issued.
The DEC Complaint sought a US$100,000 penalty against Mirant
Lovett.

New York and the DEC filed administrative claims against the New
York Debtors, including claims against Mirant Lovett in
connection with the Lovett Coal Ash Facility under Section
503(b) of the Bankruptcy Code.

In late May 2006, Mirant Lovett and the DEC entered into a
preliminary Consent Order resolving the administrative expense
claims asserted against the Lovett Coal Ash Facility.

The Honorable Michael D. Lynn of the approved the Order on
Consent and Compliance Schedule entered into with the Department
of Environmental Conservation dated June 2, 2006.

A full-text copy of the Consent Order between Mirant Lovett and
the New York DEC is available for free at

               http://ResearchArchives.com/t/s?d27

The salient terms of the Consent Order and Compliance Schedule
are:

    (a) Mirant Lovett will pay a US$20,000 penalty to the DEC.  
        upon payment of US$5,000 of the US$20,000, the
        requirement to pay the remaining US$15,000 will be
        suspended if Mirant Lovett meets the terms of the
        Consent Order;

    (b) The Consent Order will not constitute an admission of
        any violation alleged in the DEC Complaint or Consent
        Order;

    (c) Mirant Lovett's compliance with the Consent Order
        releases and satisfies its obligations to the DEC under
        the Complaint and Consent Order.  However, that
        compliance does not satisfy Mirant Lovett's prospective
        obligations to the DEC;

    (d) In accordance with a DEC-approved schedule, Mirant
        Lovett will complete the construction or repair
        requirements of the "Cap Stabilization Plan" in
        accordance with the DEC's reasonable satisfaction; and

    (e) The Compliance Schedule requires Mirant Lovett to, among
        others:

         i. continue to hold US$4,200,000 in an escrow account
            with Deutsche Bank Trust Company; and

        ii. install certain flow meters and submit a revised
            Cap Stabilization Plan.

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's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao.  Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.  Mirant 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.  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
=================


ARVINMERITOR INC: Forms Slovakian Joint Venture with Pyeong Hwa
---------------------------------------------------------------
ArvinMeritor, Inc., disclosed that its Light Vehicle Systems
business group has formed a joint venture with Pyeong Hwa
Automotive for the final assembly of fully integrated door
modules delivered just-in-time and sequenced for Kia Motors
Corporation's new plant in Slovakia.

"Winning such a prestigious contract with Kia Motors is one more
example of how our door module strategy continues to gain global
customer acceptance," said Deborah Henderson, vice president and
general manager of Door Systems for LVS.  "We are honored to
partner with PHA, and together serve Kia from a new Customer
Value Center located in Kysucke Nove Mesto -- just 20 kilometers
from Kia's plant in Teplicka nad Vahom."

ArvinMeritor and PHA also have various license and supply
agreements for door module design and components for Hyundai
Motor Co. in Korea and the United States.

ArvinMeritor began producing components and systems in Central
and Eastern Europe in 1992, with the opening of a door systems
operation in Liberec, Czech Republic.  The company's Slovakia
facility represents the seventh operation to be established in
this region.

The LVS business group posted US$4.8 billion in sales during
fiscal year 2005, and employs 15,000 people at 73 facilities in
23 countries. LVS - a market leader in the product categories it
serves -- supplies integrated systems and modules to the world's
leading passenger car and light truck OEMs.  With advanced
technology and systems design expertise in apertures,
undercarriage, wheel and emissions control, LVS combines high-
quality components into cost-effective, performance-based
solutions for virtually every car and light truck on the road
today.

Headquartered in Troy, Michigan, ArvinMeritor, Inc. --
http://www.arvinmeritor.com/-- is a premier US$8.8 billion
global supplier of a broad range of integrated systems, modules
and components to the motor vehicle industry.  The company
serves light vehicle, commercial truck, trailer and specialty
original equipment manufacturers and certain aftermarkets.
ArvinMeritor employs approximately 29,000 people at more than
120 manufacturing facilities in 25 countries.  It maintains 23
facilities in Venezuela, Brazil and Argentina.  ArvinMeritor
common stock is traded on the New York Stock Exchange under the
ticker symbol ARM.

                        *    *    *

Moody's Investors Service has downgraded on July 25, 2006,
approximately US$10.9 million of ArvinMeritor, Inc.'s remaining
notes that were issued under its 1990 indenture and affirmed
ratings on all of the company's other unsecured notes at Ba3.
The action follows ArvinMeritor depositing approximately US$11.9
million of an investment in a money market fund into an escrow
account for the benefit of note holders.

Moody's Investors Service downgraded these ratings:

   -- 6.625% notes maturing in 2008 (approximately US$4.7
      million remaining) to Ba3 from Ba2; and

   -- 7.125% notes maturing in 2009 (approximately US$6.1
      million remaining) to Ba3 from Ba2.


PETROLEOS DE VENEZUELA: Aims to Become China's Top Oil Supplier
---------------------------------------------------------------
Venezuela, through its state-owned firm Petroleos de Venezuela
SA, aims to become China's top oil supplier, the Wall Street
Journal reports.  

In line with that goal, the Andean nation plans to increase oil
sales to China to 500,000 barrels a day in 2009, the nation's
President Hugo Chavez was quoated in published reports.  

"We're getting to 150,000 barrels of crude a day [in sales to
China], and next year we will double it to 300,000 barrels a
day, and we will reach 500,000 barrels a day in 2009," President
Hugo Chavez said during a telephone interview broadcast on a
state-owned television channel. "With this, Venezuela becomes
one of the top oil suppliers to the Chinese giant."

During his visit last week to China, President Chavez signed
deals for housing, mining, telecommunications and oil with
Chinese companies.

                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.


PETROLEOS DE VENEZUELA: Inks Deals with China National Petroleum
----------------------------------------------------------------
Petroleos de Venezuela SA signed oil deals with China National
Petroleum Corp.  

One of those deals involves sales of oil-drilling rigs, a person
familiar with the plans was quoted by the Wall Street Journal.

The Journal says the transaction will consist of the purchase of
12 Chinese-manufactured oil-drilling rigs, which are expected to
be produced by Baoji Oil Machinery Co., CNPC's largest oil-
equipment maker by capacity.  

"Chinese-made drilling rigs are competitive in terms of
technology and price, although China is still weak in key
control software," the unnamed source told the Journal.

The transaction's value has not been disclosed.  The Journal
estimates that oil rigs can cost less than US$10 million or as
much as US$100 million for the complicated structures used to
reach oil deposits deep beneath the ocean.  

Additionally, the two firms also will set up a joint-venture
factory in Venezuela for the production of more drilling rigs,
the same report added.

The signing was made during President Hugo Chavez's visit to
China last week.  

"We signed a deal with CNPC for a joint venture in the Orinoco
oil belt," President Chavez was quoted by the Journal as saying.  
"We will soon drill a new well with them in the Junin 4 field."

                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: Establishes Assembly Plant for Iranian Veheicles
-------------------------------------------------------------
In line with a letter of intent signed between the heads of
Venezuela and Iran in December 2005, an assembly plant for
economical cars based on Iranian technology will be put up in
Venezuela, El Universal reports.

The program is under the Venezuelan government's foreign policy
that President Chavez agreed upon with third world nations.  

                        *    *    *

Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.


                        ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
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Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
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Mae Hechanova, and Christian Toledo, Editors.

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

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Information contained herein is obtained from sources believed
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