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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

          Friday, September 1, 2006, Vol. 7, Issue 174

                          Headlines

A R G E N T I N A

BANCO PATAGONIA: Places ARS31.4 Mil. Financial Securitization
BUENOS AIRES SUR: Claims Verification Deadline Is on Oct. 31
CHACO IMPORTADORA: Claims Verification Deadline Is on Sept. 29
COMPANIA QUIMICA: Last Day for Claims Verification Is on Sept. 4
DISTRIVAL SA: Verification of Proofs of Claim Is Until Oct. 26

EDIFICIO LAPRIDA: Trustee Verifies Claims Until Oct. 24
FIDEICOMISOS EDIFICIO: Moody's LatAm Puts Junk Ratings on Debts
FRIOSUR SRL: Claims Verification Deadline Is Set for Sept. 18
FUREX SA: Deadline for Verification of Claims Is Set for Nov. 6

B A H A M A S

REFCO INC: Chapter 11 Trustee's Settlement Agreement Draws Fire
REFCO INC: RCM Trustee Wants All RCM Pact Objections Overruled
SYNERGY GROUP: Case Summary & 20 Largest Unsecured Creditors

B A R B A D O S

ANDREW CORP: Comsearch Offers Relocation Services to FCC
ANDREW CORP: Repurchases 2.4 Mil. Shares at US$9.10 Per Share

B O L I V I A

YPF SA: Bolivian Gov't to Sue Repsol in International Courts

* BOLIVIA: Jorge Alvarado Resigns as Head of State's Oil Firm
* BOLIVIA: Price Spat with Petrobras Causing Delays in Pipeline

B R A Z I L

BANCO NACIONAL: Extends Card Credit Limit to BRL250,000
BANCO NACIONAL: Grants BRL1.89 Mil. to Cooperativa Cachacaboa
BRASKEM SA: Appoints New Investors Relations Team
COMPANHIA PARANAENSE: Petrobras to Run Power Plant for 3 Months
COMPANHIA SIDERURGICA: Merger with Wheeling May Not Succeed

ITRON INC: S&P Rates US$345MM Convertible Notes at B
NOVELIS INC: Appoints John Watson as Independent Director
PETROLEO BRASILEIRO: Operating Copel's Power Plant for 3 Months
PETROLEO BRASILEIRO: Spat with Bolivia Holds Gas Pipeline Study

C A Y M A N   I S L A N D S

BAGATELLE LIMITED: Last Shareholders Meeting Is Set for Sept. 25
CORALIE LIMITED: Final Shareholders Meeting Is Set for Sept. 25
DOLMEN LIMITED: Holding Final Shareholders Meeting on Sept. 26
GRANGE LIMITED: Schedules Final Shareholders Meeting on Sept. 25
LEPTON LIMITED: Holding Last Shareholders Meeting on Sept. 26

TELEOLOGIC LIMITED: Final Shareholders Meeting Is on Sept. 26
VICTORIA HOLDINGS: Sets Final Shareholders Meeting on Sept. 26

C H I L E

SHAW GROUP: IIS to Improve Transactional Business Processes

C O L O M B I A

BAVARIA SA: S&P Withdraws BB+ Corporate Credit Rating
BBVA COLOMBIA: Sells COP89 Bil. of Five-Year Inflation Bonds

C O S T A   R I C A

BANCO INTERNACIONAL: S&P Affirms BB/B Counterparty Credit Rating

C U B A

* CUBA: Testing Wind as Electricity Source in Turiguano Island

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE LTD: Inks Option & Joint Venture Accord with Benton
VIVA INT'L: Restructuring Plans Facilitate Expansion & Financing

* DOMINICAN REPUBLIC: Appropriates US$30 Mil. to Boost Tourism

E C U A D O R

PETROECUADOR: Calling for Bids on Marginal Fields in September

G U A T E M A L A

* GUATEMALA: Gets US$100-Mil. Loan to Boost Broad-Based Growth

H A I T I

DIGICEL LTD: Partners with UniTransfer to Provide Better Access

H O N D U R A S

* HONDURAS: Economic Growth Challenged by Interest Groups

J A M A I C A

DIGICEL LTD: Launches Emergency Text Messaging to Combat Crime
KAISER ALUMINUM: Extends Contract to Supply Aluminum to Raytheon
SUGAR COMPANY: Gov't Won't Complete Divestment This Year

M E X I C O

BANCO MERCANTIL: Expects 30% Annual Performing Loan Growth
CONSOLIDATED CONTAINER: Inks US$10M Settlement with Dean Foods
FORD MOTOR: Eyes Sale of Luxury Auto Brands to Investment Group
GRUPO IUSACELL: Debt Restructuring Program Close to Completion
GRUPO MEXICO: Ferromex Seeks Antitrust Agency's Review on Merger

GRUPO MEXICO: Unit Approves Two-For-One Stock Split
MERIDIAN AUTO: Court OKs Pact With GECC to Repossess Equipment
ORTHOFIX INT: Moody's Lowers Family Corp. Rating to Ba3 from Ba2
ORTHOFIX HOLDINGS: S&P Rates US$45 Mil. Credit Facility at BB-
SATELITES MEXICANOS: Wants Court Approval on Compensation System

VALASSIS COMMS: Files Action to Rescind Merger Pact with ADVO

P A N A M A

* PANAMA: Waterway Expansion Invites More Job Applications

P A R A G U A Y

* PARAGUAY: Struggles with Water Shortage

P U E R T O   R I C O

ADELPHIA COMMS: Hearing on Plan-Related Motions on Sept. 11 & 12
ADELPHIA COMMS: Asks Court to Okay Scientific-Atlanta Settlement
ORIENTAL FIN: Declares US$0.14 Per Share Quarterly Cash Dividend

T R I N I D A D   &   T O B A G O

MIRANT CORP: Justice Dickerson Rules on Bowline Tax Liability
MIRANT: US$3MM Claim Scrapped as Court Okays Mitsui Settlement

V E N E Z U E L A

CITGO PETROLEUM: Muscatine Clients to Shift to Conoco
PETROLEOS DE VENEZUELA: 12 Companies Want Stake in DeltaCaribe
PETROLEOS DE VENEZUELA: Reports Strong Jan-July Fin. Results

* VENEZUELA: Inks 28 Accords with China Valued at US$11 Billion
* VENEZUELA: Statoil Restarts Prospecting After One Year


                         - - - - -


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


BANCO PATAGONIA: Places ARS31.4 Mil. Financial Securitization
-------------------------------------------------------------
Banco Patagonia SA said in a press release that it has placed a
new ARS31.4 million financial securitization at a 10.49% hurdle
rate.

Banco Patagonia told Business News Americas that investor demand
for the Ribeiro XI financial securitization amounted ARS53.3
million.

Ruben Iparraguirre, the financial director of Banco Patagonia,
said in June that the bank expected to increase securitizations
25% this year to ARS800 million pesos, compared with 2005,
BNamericas reports.

Banco Patagonia specializes in public offerings of
securitizations.  It became Argentina's fifth largest locally
owned private bank through its purchase of Lloyds TSB Argentina
in late 2004.  The bank operates through 139 branches and has
202 ATM machines.

                        *    *    *

Moody's Rating Services assigned these ratings on Banco
Patagonia:

    -- long-term domestic bank deposits at Ba3,
    -- short-term domestic bank deposits at NP,
    -- long-term foreign bank deposits at Caa1,
    -- short-term foreign bank deposits at NP,
    -- bank financial strength at E+, and
    -- the outlook is positive.


BUENOS AIRES SUR: Claims Verification Deadline Is on Oct. 31
------------------------------------------------------------
Maria Cenatiempo, the court-appointed trustee for Buenos Aires
Sur S.R.L.'s bankruptcy proceeding, verifies creditors' proofs
of claim until Oct. 31, 2006.

Under Argentine bankruptcy law, Ms. Cenatiempo is required to
present the validated claims in court as individual reports,
after which Court No. 3 in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion and the objections and challenges raised by
Buenos Aires Sur and its creditors.

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

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

Buenos Aires Sur was forced into bankruptcy at the request of
Hector Franco, whom it owes US$11,823.33.

Clerk No. 6 assists the court in the proceeding.

The debtor can be reached at:

              Buenos Aires Sur S.R.L.
              Villarino 2359
              Buenos Aires, Argentina

The trustee can be reached at:

              Maria Cenatiempo
              Avenida de Mayo 1365
              Buenos Aires, Argentina


CHACO IMPORTADORA: Claims Verification Deadline Is on Sept. 29
--------------------------------------------------------------
Luis Maria Bogado, the court-appointed trustee for Chaco
Importadora S.A.I.C.A.'s reorganization proceeding, verifies
creditors' proofs of claim until Sept. 29, 2006.

Under Argentine bankruptcy law, Mr. Bogado is required to
present the validated claims in court as individual reports. A
court in Chaco will determine if the verified claims are
admissible, taking into account the trustee's opinion and the
objections and challenges raised by Chaco Importadora and its
creditors.

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

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

Under insolvency protection, Chaco Importadora will negotiate a
settlement plan to its creditors in order o avoid a straight
liquidation.

The debtor can be reached at:

              Chaco Importadora S.A.C.I.A.
              Ruta Numero 95 y Avenida Lautaro, Villa Angela
              Chaco, Argentina

The trustee can be reached at:

              Luis Maria Bogado
              Belgrano 454, Villa Angela
              Chaco, Argentina


COMPANIA QUIMICA: Last Day for Claims Verification Is on Sept. 4
----------------------------------------------------------------
Felisa Tumilasci, the court-appointed trustee for Compania
Quimica Industrial Lixaye S.R.L.'s insolvency case, verifies
creditors' proofs of claim until Sept. 4, 2006.

Ms. Tumilasci will present the validated claims in court as
individual reports on Oct. 17, 2006.  A court in Moron, Buenos
Aires, will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Compania Quimica 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 Compania Quimica's
accounting and banking records will follow on Nov. 28, 2006.

On May 15, 2007, Compania Quimica's creditors will vote on a
settlement plan that the company will lay on the table.

The trustee can be reached at:


              Felisa Tumilasci
              Tucuman 1071, Moron
              Buenos Aires, Argentina


DISTRIVAL SA: Verification of Proofs of Claim Is Until Oct. 26
--------------------------------------------------------------
Pablo Amante, the court-appointed trustee for Distrival S.A.'s
bankruptcy case, verifies creditors' proofs of claim until
Oct. 26, 2006.

Mr. Amante will present the validated claims in court as
individual reports on Dec. 7, 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 Distrival 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 Distrival's
accounting and banking records will follow on Feb. 22, 2007.

The debtor can be reached at:

              Distrival S.A.
              Yerbal 2161
              Buenos Aires, Argentina

The trustee can be reached at:

              Pablo Amante
              Lavalle 1537
              Buenos Aires, Argentina


EDIFICIO LAPRIDA: Trustee Verifies Claims Until Oct. 24
-------------------------------------------------------
Ernesto Horacio Garcia, the court-appointed trustee for Edificio
Laprida S.A.'s bankruptcy proceeding, verifies creditors' proofs
of claim until Oct. 31, 2006.

Under Argentine bankruptcy law, Mr. Garcia is required to
present the validated claims in court as individual reports.
Court No. 5 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 Edificio Laprida and
its creditors.

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

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

Edificio Laprida was forced into bankruptcy at the behest of
Manuel Campa, whom it owes US$36,480.

Clerk No. 9 assists the court in the proceeding.

The debtor can be reached at:

              Edificio Laprida S.A.
              Laprida 2150
              Buenos Aires, Argentina

The trustee can be reached at:

              Ernesto Horatio Garcia
              Sarmiento 1587
              Buenos Aires, Argentina


FIDEICOMISOS EDIFICIO: Moody's LatAm Puts Junk Ratings on Debts
---------------------------------------------------------------
Moody's Latin America rated Fideicomisos Financieros Edificio La
Nacion's debts:

   -- Certificados de Participacion Subordinados Clase 2, C
   -- Titulos de Deuda Clase 1 in pesos, CCC+
   -- T¡tulos de Deuda Clase 2 in dollars, CCC+


FRIOSUR SRL: Claims Verification Deadline Is Set for Sept. 18
-------------------------------------------------------------
Ana Maria Bessone, the court-appointed trustee for Friosur
S.R.L.'s bankruptcy case, verifies creditors' proofs of claim
until Sept. 18, 2006.

Ms. Bessone will present the validated claims in court as
individual reports on Oct. 31, 2006.  A court in San Carlos de
Bariloche, Rio Negro, will determine if the verified claims are
admissible, taking into account the trustee's opinion and the
objections and challenges raised by Friosur 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 Friosur's accounting
and banking records will follow on Dec. 12, 2006.

The trustee can be reached at:

              Ana Maria Bessone
              Mitre 265 san Carlos de Bariloche
              Rio Negro, Argentina


FUREX SA: Deadline for Verification of Claims Is Set for Nov. 6
---------------------------------------------------------------
Salomon Simon Wilhelm, the court-appointed trustee for Furex
S.A.'s insolvency case, verifies creditors' proofs of claim
until Nov. 6, 2006.

Mr. Wilhelm will present the validated claims in court as
individual reports on Dec. 18, 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 Furex 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 Furex' accounting and
banking records will follow on March 1, 2007.

On Aug. 13, 2007, Furex' creditors will vote on a settlement
plan that the company will lay on the table.

The trustee can be reached at:

              Salomon Simon Wilhelm
              Lavalle 1290
              Buenos Aires, Argentina




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


REFCO INC: Chapter 11 Trustee's Settlement Agreement Draws Fire
---------------------------------------------------------------
Refco Inc., and its debtor-affiliates and several parties-in-
interest ask the U.S. Bankruptcy Court for the Southern District
of New York to deny the settlement agreement entered into by
Marc Kirschner, the Chapter 11 trustee overseeing Refco Capital
Markets, Ltd.'s estate, with various securities customers and
unsecured creditors of RCM, on the main ground that it thwarts
the global resolution of the Debtors' Chapter 11 cases.

The objecting parties include:

   * Diana G. Adams, Acting United States Trustee for Region 2;

   * Albert Togut, Chapter 7 trustee for Refco, LLC;

   * Official Committee of Unsecured Creditors of Refco, Inc.;

   * FXCM Capital Markets, L.L.C. and FXCM Trading, L.L.C.;

   * JPMorgan Chase Bank, N.A.;

   * Bank of America, N.A., as administrative agent for Refco's
     prepetition secured lenders;

   * Wells Fargo Bank, National Association, as indenture
     trustee under an Indenture dated as of August 5, 2004;

   * the Ad Hoc Refco F/X Customer Committee;

   * Beckenham Trading Company, Inc.;

   * Emerging Strategies Fund, L.P., and Debick Partners LLC;

   * Josefina Franco Siller; and

   * Bencorp Casa de Bolsa, C.A.

             RCM Trustee's Settlement Agreement

AS reported in the Troubled Company Reporter on July 13, 2006,
the Chapter 11 trustee asked the Court to approve a settlement
agreement with certain securities customers and foreign exchange
and metals customers of RCM.

The Settlement Agreement resolves "litigation and creditor
disputes at the RCM level that might otherwise have resulted in
the freefall conversion of RCM's Chapter 11 case to a case under
Subchapter III of Chapter 7," according to Mark W. Deveno, Esq.,
at Bingham McCutchen LLP, in New York.

The Settlement Agreement achieves three primary goals:

   (a) Resolve a dispute regarding allocation of assets of the
       RCM estate and establish an agreed mechanism among the
       Settling Parties, whether as part of a global plan of
       reorganization for the Debtors or, if that plan is
       infeasible, as part of either a stand-alone plan
       applicable to RCM or a Chapter 7 distribution process;

   (b) Defer attempts to convert the RCM Chapter 11 case to a
       case in Chapter 7, and, if efforts to consummate the
       settlement in the RCM Chapter 11 case fail, cause the
       parties to convert to Chapter 7 on a more-efficient,
       significantly pre-planned basis; and

   (c) Implement a request for a continued stay of costly and
       time-consuming estate property litigation and to dismiss
       litigation in the event that the settlement becomes fully
       effective.

                         Objections

J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in New York, asserts that the RCM Settlement and the
proposed treatment of Rogers Raw Materials Fund, L.P., and
Rogers International Raw Materials Fund, L.P., unfairly penalize
the Refco, Inc. parties and other non-securities customer
creditors of RCM.  He adds that the RCM Settlement unfairly
arrogates to RCM's "Estate Property" whose ownership is in
dispute.

Mr. Milmoe contends that the RCM Settlement is a sub rosa plan
whose plan-related provisions do not comply with Section 1129 of
the Bankruptcy Code and, hence, cannot be approved.

Furthermore, Mr. Milmoe argues that the RCM Settlement, in
effect, confers on certain RCM creditors the benefits of having
the case converted to a case under subchapter III of Chapter 7
without an order ever being entered formally converting the RCM
case.  The result is to deprive litigants of the right to
appellate review of an order granting RCM's proposed conversion
by substituting an order approving a settlement agreement
pursuant to Rule 9019, for which the appellate standard and
issues on appeal would differ.

Mr. Milmoe also avers that the RCM Settlement does not meet the
standards required for approval under Rule 9019 of the Federal
Rules of Civil Procedure, which require that the Court be
advised "of all facts necessary for an intelligent and objective
opinion of the probabilities of ultimate success should the
claim be litigated."  Further, the court should form an educated
estimate of the complexity, expense, and likely duration of that
litigation, the possible difficulties of collecting on any
judgment which might be obtained, and all other factors relevant
to a full and fair assessment of the wisdom of the proposed
compromise.

"Rather than resolve outstanding claims and eliminate or reduce
pending or future litigation, the Settlement would simply shift
the burden to defend in many cases from one defendant to
another," Mr. Milmoe tells Judge Drain.

Moreover, because the assets exclusively reserved for
distribution to holders of "allowed Securities Customer Claims"
is not diminished even if the pool of claimants is reduced, the
RCM Settlement could promote litigation among those creditors
who would seek to reduce the number of competing Securities
Customer Claim holders to increase their individual recoveries,
Mr. Milmoe maintains.

The Debtors insist that the RCM Settlement does not advance the
goal of resolving issues and reducing litigation on a global
basis among the estates.  Therefore, the Debtors ask the Court
not to reach merits of the RCM Settlement at this time and to
continue its consideration of the Settlement at a later date to
afford the parties more time to reach a global resolution of the
Debtors' cases.

The U.S. Trustee, on the other hand, complains that the inter-
claimant RCM Settlement contains incidental provisions allowing
fees and expenses of counsel to the "Moving Customer Group" and
the "Joinder Parties" in the RCM estate under substantial
contribution provisions of Section 503(b)(3)(D).

Considering that the RCM Settlement contains a "virtually
automatic allowance of fees," the MCG/Joinders' attorney fees at
issue totals US$4,363,024, Andrew D. Velez-Rivera, the U.S.
Trustee's Trial Attorney, notes.

Even though it appears that the MCG and the Joinder Parties
counsel have submitted their time details to the RCM Trustee,
neither his request nor the RCM Settlement makes any provisions
for the Court's or any other party-in-interest's review of time
details, expense reports or other supporting materials, Mr.
Velez-Rivera asserts.  The counsel's attempts to obtain
expedient allowance of the MCG's and the Joinder Parties'
substantial contribution claims should not be countenanced.

Concomitantly, Mr. Velez-Rivera says, even though Rule 9019(a)
of the Federal Rules of Bankruptcy Procedure excuses litigants
from putting on their case, Sections 330(a) and 503(b) contain
none of the evidence-avoidance privileges of Rule 9019(a).
Therefore, the U.S. Trustee asks the Court not to facilitate an
end-run around those sections.

Furthermore, FXCM argues that the RCM Settlement contains a
conglomeration of numerous matters that reaches so far beyond a
"settlement and compromise" between the parties that it is
almost impossible to decipher and fully understand its impact
and binding effect on the creditors of the RCM estate and, more
importantly, on the creditors and parties-in-interest of the
other related Debtor estates.

FXCM insists that the RCM Settlement cannot and should not be
approved as a stand-alone settlement for RCM without addressing,
at a minimum, the disposition of a significant inter-company
claim that exists and is owed by RCM to and in favor of Refco
FX Associates, L.L.C.

According to its records, RCM owes a net amount to FXA equal to
US$83,379,040.  FXCM believes that the FX Receivable's
substantial majority originated with amounts belonging to nearly
15,000 FXA retail customers, including FXCM.  In addition, FXCM
states that those funds were improperly transferred from FXA to
RCM.

Craig P. Rieders, Esq., at Genovese Joblove & Battista, P.A., in
Miami, Florida, relates that if the RCM Trustee insists on
pushing forward with the RCM Settlement as a stand-alone
settlement, the inescapable reality of the RCM Settlement
Agreement is that it:

   (i) violates the disclosure requirements of Section 1125 and
       the confirmation provisions and protections of Section
       1129;

  (ii) disenfranchises numerous creditors who are not party to
       the RCM Settlement, including FXCM and the FXA creditors,
       and deprives them of their constitutional due process
       rights; and

(iii) attempts to modify the statutory provisions of Subchapter
       III of Chapter 7 of the Bankruptcy Code, a task that is
       not within the power of the RCM Trustee or the Court, but
       rather is the sole province of Congress.

JPMorgan holds a security interest in RCM assets in its
possession and is "oversecured."  JPMorgan opposes the RCM
Settlement to the extent that it may impact the bank as a
secured creditor.

Without waiving any of its rights or remedies in respect of
collateral to secure its claim, JPMorgan notes that if its
secured claim is allowed, a principal amount of US$79,500,000
with Court-approved interest, fees and charges will be reserved
or paid to JPMorgan from proceeds of a SPhinX Settlement under
the RCM Settlement.

In the event that the ruling is reversed and the proceeds become
unavailable or insufficient to satisfy its allowed secured
claim, JPMorgan asserts that the RCM Settlement should not be
construed in a manner that limits or impairs the bank's right as
an oversecured creditor to adequate protection for its security
interest.  It should also not impair JPMorgan's right to be paid
in full whether from JPMorgan's collateral or otherwise.

The FXA Customer Committee denounces the RCM Settlement on the
ground that it circumvents or alters the rights or interests of
its members in the financial assets contained in certain
accounts or otherwise held by RCM.  Specifically, the FXA
Customer Committee proposes that any order allowing the RCM
Trustee to enter into or consummate the RCM Settlement should
explicitly prohibit the use, transfer, conversion, dissipation,
hypothecation, liquidation, or any other disposition of the
property in which FXA and its members have a right, title or
interest.

Other parties insist that the RCM Settlement should not be
approved because it is not "fair and equitable" to those
creditors whose property was improperly obtained by RCM, and
which the RCM Trustee intends to use to fund the Settlement.

          Shareholders, et al., Block RCM Settlement

The Ad Hoc Committee of Equity Security Holders of Refco, Inc.,
complains that Refco Capital Markets, Ltd.'s settlement
agreement with certain of its securities customers and general
unsecured creditors improperly:

   (i) dictates terms of any future plan or liquidation
       proceeding;

  (ii) determines RCM and its customers' ownership of property;

(iii) prohibits RCM from compromising intercompany disputes;
       and

  (iv) binds other debtors and parties-in-interest to a
       valuation of RCM's property performed by an appraiser
       chosen by RCM Trustee Marc S. Kirschner.

John A. Lee, Esq., at Andrews Kurth LLP, in New York, tells the
Bankruptcy Court that the RCM Settlement Agreement is a sub rosa
Chapter 11 plan of reorganization or a Chapter 7 plan of
distribution.  A plan cannot be confirmed under Rule 9019 of the
Federal Rules of Bankruptcy Procedure, and the plan embedded
within the RCM Settlement does not appear confirmable.

Mr. Lee notes that the RCM Settlement violates numerous
standards applicable to plan confirmation, including
solicitation and disclosure rules.  In light of facts revealed
in connection with an emergency request filed by RCM Members
recently removed from the Official Committee of Unsecured
Creditors, it appears questionable whether any negotiations
between RCM and the other estates could have been conducted in
good faith and at arm's-length.

The Ad Hoc Equity Committee insists that the Court should
closely scrutinize any aspects of the RCM Settlement that go
beyond purely intra-RCM creditor affairs.

Rule 7001(2) requires the filing of an adversary proceeding "to
determine the validity, priority, or extent of a lien or other
in interest in property."  The RCM Settlement purports to bind
all other parties-in-interest, including other debtors and their
creditors and interest holders, to a determination that certain
property belongs to RCM or its customers, Mr. Lee states.

Moreover, the RCM Settlement requires that any claims asserted
against RCM "be filed and proven in strict accordance with the
Bankruptcy Code and Bankruptcy Rules."  Thus, Mr. Lee says, the
RCM Settlement would prevent RCM from resolving intercompany
claims consensually, without amending the Settlement, which
would require approval by the RCM Trustee and a supermajority of
the parties to the Settlement.

Mr. Lee asserts that the RCM Settlement would give the parties a
disproportionate veto power over potential compromises of
intercompany claims.  In doing so, the Settlement would override
Section 1129 of the Bankruptcy Code, which would require only
two-thirds in amount of all voting RCM creditors to confirm a
consensual plan embodying a compromise on intercompany claims.

Accordingly, the Ad Hoc Equity Committee asks Judge Drain to
deny the RCM Settlement and direct the RCM Trustee to conduct
good faith, arm's-length negotiations with all parties over
terms of a consensual global plan.

The Ad Hoc Equity Committee consists of JMB Capital Partners,
LP; Lonestar Capital Management, LLC; Mason Capital Management;
Smith Management LLC; and Triage Management LLC.

Stilton International Holdings Limited supports the Ad Hoc
Equity Committee's position.

Living Water Fund L.P., ABBA Funds, L.P., and RJ Trading, LLC --
plaintiffs in an adversary proceeding against RCM, FIMAT
Alternative Strategies, Inc., and FIMAT USA, Inc. -- also ask
Judge Drain to deny the RCM Settlement to the extent that it
allows the seizure and use of proceeds aggregating US$1,809,972
for actions related to certain EURO Option Contracts
transactions.

Mark A. Frankel, Esq., at Backenroth, Frankel & Krinsky, LLP, in
New York, asserts that the Proceeds are property of Living Water
and ABBA, and that RCM has no right in the Proceeds for payment
of administrative and priority claims against the RCM estate.

Until it is determined in the Adversary Complaint that the
Proceeds are property of the RCM estate, there is no legal basis
for "taking" and using the Proceeds, Mr. Frankel maintains.

                      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. 38 & 39; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


REFCO INC: RCM Trustee Wants All RCM Pact Objections Overruled
--------------------------------------------------------------
Marc Kirschner, the Chapter 11 trustee overseeing Refco Capital
Markets, Ltd.'s estate, asks the Hon. Robert Drain of the U.S.
Bankruptcy Court for the Southern District of New York to
overrule all the Objections and approve, in their entirety, the
RCM Settlement and a settlement joinder by Rogers Raw Materials
Fund, L.P. and Rogers International Raw Materials Fund, L.P.

Some objecting parties sought assurance that the Settlement
preserves their right to seek characterization of their claims
as "Securities Customer Claims."  The RCM Trustee relates that
the requested assurance will be addressed through an amendment
to the Settlement or reflected in a revised proposed order
approving the Settlement.

The RCM Trustee also assures the Court that nothing in the
proposed order, as revised, approving the RCM Settlement would
modify an April 26, 2006, Stipulation with the SPhinX Entities,
which stipulation contains an unfortunate provision that makes
its finality depend on exhaustion of appeals.  Although the
proceeds of the SPhinX recovery fall within the Settlement's
"Assets in Place," the revised order will clarify that the RCM
Trustee's right to distribute proceeds will have to abide
conclusion of an appellate process on the SPhinX Stipulation.

The RCM Trustee believes that neither the RCM Settlement nor the
Revised Order would result in the allowance of substantial
contribution claim amounts -- the subject of the U.S. Trustee's
and Beckenham Trading Company, Inc.'s objections.

Notwithstanding the RCM Trustee's support for allowance of the
amounts as reasonable, the U.S. Trustee and other parties-in-
interest would reserve the right to object to the reasonableness
of the claim amounts asserted, which point would be confirmed in
the Revised Order.

With respect to JPMorgan Chase Bank, N.A.'s objection, the RCM
Trustee confirms that the Settlement neither allows nor
compromises JPMorgan's secured claim against RCM in any way.
The Revised Order would confirm that JPMorgan's rights will not
be affected by the Settlement approval in the event that the
SphinX Settlement is reversed or the proceeds of the SPhinX
Settlement are otherwise unavailable or insufficient.

Mr. Kirschner also contends that neither of these objectors
claims a direct right against RCM:

     * FXCM Capital Markets, L.L.C., and its affiliate are
       contract parties with Debtor Refco F/X Associates, LLC;
       and

     * The Ad Hoc Refco F/X Customer Committee purports to
       represent FXA creditors.

Mr. Kirschner explains that these objectors' interests depend on
(i) FXA's claims against RCM being allowed; (ii) FXA
establishing a net unsecured claim against RCM; and then (iii)
the incorrect proposition that FXA's claim would be prejudiced
by the Settlement.

These objecting parties also have no legitimate economic stake
in the outcome of the Settlement:

   * the Ad Hoc Committee of Equity Security Holders;

   * the Ad Hoc Committee of Senior Subordinated Noteholders,
     which represents holders of notes issued by Refco Finance
     Inc., and Refco Group Ltd., LLC;

   * Wells Fargo Bank, NA, as indenture trustee for the
     Noteholders;

   * Albert Togut, the Chapter 7 Trustee overseeing Refco,
     LLC's estate;

   * Bank of America, N.A., as agent to a group of lenders that
     has lent to RGL; and

   * the Official Committee of Unsecured Creditors.

Tina L. Brozman, Esq., at Bingham McCutchen LLP, in New York,
relates that a small core of objections -- from a tiny minority
of discrete RCM constituents and certain other Debtors,
represented by Skadden, Arps, Slate, Meagher & Flom LLP, that
have asserted that they are RCM creditors -- have merits.

With regard to customer claims to asset ownership, the RCM
Trustee is seeking to settle disputes raised by Josefina Franco
Siller and Winchester Preservation LLC, and is prepared to
reserve the rights of Bencorp Casa de Bolsa, C.A., and Living
Water for the time being.

The RCM Trustee maintains that the Settlement does not
constitute a sub rosa plan.  Ms. Brozman points out that when a
settlement agreement or sale of assets preserves the rights of
other parties-in-interest to participate in a plan development
and voting process, it will not constitute a "sub rosa" plan.

In addition, Ms. Brozman argues, objections relating to the best
interests of creditors test are "premature," since there is no
way of prognosticating, in advance of promulgation of a global
plan, whether a particular creditor will accept the plan under
Section 1129(a)(7)(A)(i) of the Bankruptcy Code.

The RCM ascertains that if the Settlement is implemented in a
plan, then RCM's constituents will receive from the Assets in
Place a substantially better return than they would obtain in a
stockbroker liquidation.

Moreover, the RCM Trustee asserts that approval of the RCM
Settlement will appropriately treat the Rogers Funds Claims,
which are among the largest claims in the Debtors' cases
totaling around US$382,000,000.  The RCM Trustee says:

   (i) Rogers Funds was unlikely to prevail in its constructive
       trust claims;

  (ii) Rogers Funds was unlikely to prevail in claims brought
       against other Debtors;

(iii) Rogers Funds was highly likely to establish substantial
       allowed claims at RCM;

  (iv) the Rogers Funds Claims were likely to be characterized
       as "securities customer" claims; and

   (v) it was possible, but unlikely, that the Rogers Funds
       Claims would be characterized as FX/Unsecured Claims.

               Rogers Funds, et al., Support Accord

Rogers Funds want all the Objections overruled -- and the
Settlements approved -- on the grounds that:

   (a) the Objecting Parties mischaracterize the scope and
       objective of the Rogers Settlement Joinder and ignore
       its importance as a "core condition" of the RCM
       Settlement;

   (b) Rule 9019 of the Federal Rules of Bankruptcy Procedure
       does not require a full adjudication of the Rogers
       Funds' Claims at RCM before the Settlement Joinder can be
       approved; and

   (c) Refco LLC has grossly mischaracterized the facts and law
       related to the "Rogers Funds Action."

Guy S. Neal, Esq., at Sidley Austin LLP, in New York, points out
that no party with a recognized claim against RCM has objected
to the Rogers Settlement Joinder.  More significantly, the
super-majority of holders of both the Securities Customers
Claims and the FX/Unsecured Claims support the Rogers Settlement
Joinder and made it a condition precedent to going forward with
the RCM Settlement.

Certain foreign exchange customers of RCM and Leuthold Funds,
Inc., and Leuthold Industrial Metals Fund, L.P., which hold in
the aggregate approximately US$400,000,000 in claims against
RCM, want the Settlements approved on the basis that:

   -- the Creditors Committee's allegation that it was excluded
      from participating in negotiations surrounding the RCM
      Settlement is baseless;

   -- the objecting parties fail to demonstrate why the
      "customer property" allocation under the RCM Settlement is
      unreasonable;

   -- the Creditors Committee incorrectly analyzes both the risk
      of material "migration" of Securities Customer claims and
      the legal effect of migration if RCM's case was a
      stockbroker liquidation proceeding; and

   -- the Refco LLC/Rogers Funds risk is minimal and may benefit
      the FX/Unsecured Creditors.

Securities customers holding approximately US$1,700,000,000 in
customer claims, and Abadi & Co. Securities, Ltd., also call for
approval of the RCM Settlement and Rogers Settlement Joinder.

                      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)


SYNERGY GROUP: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Synergy Group, S.E.
        108 Uruguay Street
        San Juan, PR 00927
        Tel: (787) 758-7111

Bankruptcy Case No.: 06-03066

Chapter 11 Petition Date: August 30, 2006

Court: District of Puerto Rico (Old San Juan)

Debtor's Counsel: Carlos Rodriguez Quesada, Esq.
                  P.O. Box 9023115
                  San Juan, PR 00902-3115
                  Tel: (787) 724-2867
                  Fax: (787) 724-2463

Estimated Assets: US$500,000 to US$1 Million

Estimated Debts:  US$1 Million to US$10 Million

Debtor's 20 Largest Unsecured Creditors:

  Entity                          Nature of Claim   Claim Amount
  ------                          ---------------   ------------
Eurobank                                            US$1,000,000
P.O. Box 191009
San Juan, PR 00919-1009

Puerto Rico Wire                 Business Expense     US$238,151
Urb. Industrial Corujo
Carr. 866 Km 1.7 Lote 8
Bayamon, PR 08961

Esco Puerto Rico                 Business Expense     US$179,150
P.O. Box 4040
Carolina, PR 00984-4040

Westernbank                      Business Expense     US$175,469
P.O. Box 1180
Mayaguez, PR 00681-1180

West India Machinery & Supply Co. Business Expense    US$110,780
P.O. Box 364308
San Juan, PR 00936-4308

Transporte Quinones               Business Expense    US$107,663

Quality Contractors and           Business Expense    US$105,601
Cleaning Services

Avanti Kitchen                    Business Expense     US$97,841

Westernbank World Plaza           Rent Expense         US$81,977

Power Mech                        Business Expense     US$77,796

General Electric Capital          Car Lease            US$71,935
Corporation of Puerto Rico

American Equipment                Business Expense     US$69,777

YL Construction                   Business Expense     US$65,000

Airmaster Windows & Doors         Business Expense     US$60,084

GE Capital Corp. of Puerto Rico   Hipoteca Contract    US$55,570

General Electric del Caribe, Inc. Business Expense     US$50,269

HQJ Plumbing Supplies, Inc.       Business Expense     US$49,524

American Agencies                 Business Expense     US$47,498

R&F Asphalt Unlimited, Inc.       Business Expense     US$47,062

Internal Revenue Service          IRS 940-EZ's         US$46,687




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


ANDREW CORP: Comsearch Offers Relocation Services to FCC
--------------------------------------------------------
Comsearch, an Andrew Corp. subsidiary, has introduced a turnkey
set of services that will assist winners in the Federal
Communications Commission's advanced wireless spectrum auctions
with deploying new services in a timely and cost-effective
manner.

Comsearch's incumbent relocation solutions are tailored to
address the FCC's requirements for those acquiring 1.7 GHz and
2.1 GHz spectrum, specifically the need to address interference
with existing federal government and commercial systems in those
radio bands. Comsearch uses its iQ.clearXG software to identify
channels that can be shared without causing interference to 1.7
GHz and 2.1 GHz incumbents. In instances where spectrum sharing
is not an option, Comsearch will facilitate relocating an
incumbent to a different band through negotiation and project
management.

"Comsearch provides a one-stop relocation solution covering all
stages of the deployment process," said Chris Hardy, vice
president and general manager, Comsearch.  "Comsearch is
uniquely qualified--by virtue of our extensive experience in the
PCS bands, our proprietary software and databases, and our vast
program management resources--to offer the most cost-effective
and time-saving incumbent relocation solutions."

Sharing spectrum between AWS systems and incumbent fixed and
mobile systems in the 1.7 GHz and 2.1 GHz bands, and immediate
relocation of potentially impacted incumbent systems, will be
critical to deployment of new advanced services.  Comsearch's
turnkey offerings for AWS providers, which combine specialized
services, highly accurate databases, and program management
skills, include:

   -- Spectrum sharing studies;
   -- Incumbent negotiation and contract execution;
   -- Relocation program management;
   -- Coordination with federal government and commercial
      incumbents;
   -- System assessment and review;
   -- Frequency clearing for drive testing;
   -- Site audits and radio frequency measurements.

"No one is more qualified in spectrum management and the AWS
process than the people of Comsearch," Mr. Hardy said.  "For
more than 29 years, we have addressed the specific challenges of
identifying, analyzing, and resolving radio frequency
interference for an evolving wireless industry. We look forward
to supporting auction winners, as we have done in the past, to
meet their unique deployment requirements."

                        About Andrew

Headquartered in Westchester, Illinois, Andrew Corporation
(NASDAQ: ANDW) -- http://www.andrew.com/-- designs,
manufactures and delivers innovative and essential equipment and
solutions for the global communications infrastructure market.
The company serves operators and original equipment
manufacturers from facilities in 35 countries including, among
others, these Latin American countries: Argentina, Bahamas,
Belize, Barbados and Bermuda.  Andrew is an S&P 500 company
Founded in 1937.

                        *    *    *

As reported in yesterday's Troubled Company Reporter, Standard &
Poor's Ratings Services revised its CreditWatch implications on
Andrew Corp. to negative from developing.  The 'BB' corporate
credit rating and other ratings on the company were placed on
CreditWatch developing on Aug. 7, 2006.


ANDREW CORP: Repurchases 2.4 Mil. Shares at US$9.10 Per Share
-------------------------------------------------------------
Andrew Corp. has repurchased 2.4 million shares of common stock
at an average price of US$9.10 per share, including commissions
and fees, during the last three weeks.  Total shares repurchased
under the company's previously authorized share repurchase
program represent approximately 1.5% of the 159.7 million shares
outstanding at June 30, 2006.  Following the recent open market
transactions during the company's fiscal fourth quarter, the
company has 7.4 million shares remaining available for
repurchase under its share repurchase program.

"We believe the share repurchase program demonstrates our
confidence in the long-term growth and margin expansion
opportunities of the company," said Ralph Faison, president and
chief executive officer of Andrew Corporation.  "We believe the
strength and value of Andrew is not accurately reflected by the
market and that share repurchases are an effective use of
capital to build long-term shareholder value."

The timing and amount of any future share repurchases will be at
the company's discretion, subject to market conditions and other
factors, and may be suspended or discontinued at any time.

                        About Andrew

Headquartered in Westchester, Illinois, Andrew Corporation
(NASDAQ: ANDW) -- http://www.andrew.com/-- designs,
manufactures and delivers innovative and essential equipment and
solutions for the global communications infrastructure market.
The company serves operators and original equipment
manufacturers from facilities in 35 countries including, among
others, these Latin American countries: Argentina, Bahamas,
Belize, Barbados and Bermuda.  Andrew is an S&P 500 company
Founded in 1937.

                        *    *    *

As reported in yesterday's Troubled Company Reporter, Standard &
Poor's Ratings Services revised its CreditWatch implications on
Andrew Corp. to negative from developing.  The 'BB' corporate
credit rating and other ratings on the company were placed on
CreditWatch developing on Aug. 7, 2006.




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


YPF SA: Bolivian Gov't to Sue Repsol in International Courts
------------------------------------------------------------
Bolivian officials told El Pais that the government has
threatened to file charges against Repsol -- YPF SA's parent
firm, in the international courts for robbing the nation.

As reported in the Troubled Company Reporter-Latin America on
Aug. 29, 2006, Repsol YPF said that it would file a lawsuit
against the government of Bolivia if the latter continued its
unjustified and repeated judicial persecution against the firm.
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, said Attorney General Jose Centenaro.  According to
him, a judge ordered the seizure.

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.
Andres Soliz, the hydrocarbons minister of Bolivia estimated
that the Bolivian government lost US$161 million due to the
alleged sales.  A Repsol official in Bolivia said that the raid
was irregular and disproportionate.  Meanwhile, the contract
between Repsol was not secret and did no damage to Bolivia.
Repsol said, "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."

                        *    *    *

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

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

Moody's affirmed these five ratings:

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

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

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

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

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


* BOLIVIA: Jorge Alvarado Resigns as Head of State's Oil Firm
-------------------------------------------------------------
The hydrocarbons ministry of Bolivia said in a statement that
Jorge Alvarado, the president of state-run oil firm Yacimientos
Petroleros Fiscales Bolivianos aka YPFB, has filed his
resignation on Tuesday.

According to the statement, Mr. Alvarado said in his resignation
letter that he left the YPFB to avoid continued damage to the
idea of change in Bolivia.

As previously reported, Mr. Alvarado's management was put in
question after audit revealed irregularities in YPFB's oil
export contract with Iberoamerica, a local trading firm.
President Evo Morales however, refused to replace the head
without evidence.

Business News Americas relates that Mr. Alvarado will be
replaced by Juan Carlos Ortiz, YPFB's vice president of contract
administration and supervision.  Mr. Ortiz used to work for
Superintendencia de Hidrocarburos, Baltic Control Ecuador and
the Bolivian subsidiary of Brazil's Petroleo Brasileiro.

Guillermo Aruquipa, according to the statement, became the new
deputy minister of exploration and production.  Santiago Berrios
is the new superintendent of hydrocarbons.

A presidential spokesperson said that President Evo Morales
decided to replace the former officials to advance Bolivia's
nationalization process, BNamericas reports.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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


* BOLIVIA: Price Spat with Petrobras Causing Delays in Pipeline
---------------------------------------------------------------
The construction of the so-called US$20 billion Southern Gas
Pipeline that will run from Caracas to Buenos Aires is put on
hold as a result of a gas price dispute between Brazil and
Bolivia.

A feasibility study of the 6,215-mile pipeline that was
scheduled for delivery this month won't be ready for at least a
year, Ildo Sauer, gas unit chief of Petrobras was quoted by
Bloomberg as saying.

The pipeline is integral to Venezuelan President Hugo Chavez's
plan to cut South America's dependence on the United States.

The two countries are not in agreement over the price of gas
that Brazil should pay Bolivia.  The Andean nation demands
doubling the price of the gas it supplies to Brazil, while the
latter insists on following their old agreement.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO NACIONAL: Extends Card Credit Limit to BRL250,000
-------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
Card had its financing limit extended from BRL100,000 to
BRL250,000, enabling more business opportunities to micro, small
and medium enterprises.

"BNDES Card is the simplest and cheapest BNDES's credit access
product. It is quite accessible to small entrepreneur for the
assembling, maintenance and repair of his/her business", said
BNDES Pres. Demian Fiocca, who was celebrating the Card result
that, in a little bit less than 2 years of existence, it already
relies on a total credit amount of over BRL1.6 billion and
roughly 86,000 issued cards.  According to him, "the Card is
another alternative which helps create a competitiveness
pressure, concerning the interest rate reduction in Brazil".

Besides extending the limit, BNDES Card will start financing the
acquisition of inputs by the textile and apparel sectors.  The
director of the Financial and Indirect Operation areas of BNDES,
Mauricio Borges Lemos, also informed that BNDES analyzes the
possibility of extending BNDES Card for the sector of autonomous
truck drivers, enabling the purchase of tire, accessories and
equipment.  "Concerning the autonomous truck driver, the
entrepreneur is an individual entity, i.e., the person is
his/her own enterprise", explained Pres. Fiocca, referring to
the possibility of exception to the BNDES Card which, currently,
finances legal entities only.

The Card limit extension to BRL250,000 will leverage business,
increasing the range of borrowing enterprises and investments.
Also, the new limit will accredit a higher number of suppliers,
with equipment of higher unit value.

BNDES Cards are currently issued by Banco do Brasil, Bradesco
and Caixa Economica Federal.  Unibanco is in final process of
accreditation, to operate in the program.

                        *    *    *

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



BANCO NACIONAL: Grants BRL1.89 Mil. to Cooperativa Cachacaboa
-------------------------------------------------------------
The directors of Social Inclusion and Capital Market Areas of
BNDES, Elvio Gaspar and Eduardo Rath Fingerl, respectively,
signed on Aug. 28, 2006, a BRL1.89 million agreement with
Cooperativa Cachacaboa.  The contract is aimed at expanding the
production and improving the quality of the sugar cane rum
produced by cooperative producers in the Aracuai region in Minas
Gerais.

Located at Vale do Jequitinhonha, one of Brazil's poorest areas,
Aracuai has roughly 36,000 inhabitants, who rely directly on
sugar cane rum producers' alembics.  The average family income
amounts only to BRL347 per month.  The municipality of Aracuai
is located near Salinas, known as the Brazilian capital of
Cachaca.

The total investment in Cooperativa Cachacaboa will amount to
BRL2.03 million.  From BNDES' total financing, BRL1.5 million
will be non-endorsable.  The remaining BRL390,000 will be
financed in facilitated conditions, based on the Long-Term
Interest Rate, which is currently 7.5% p.a., plus 1% of fee to
BNDES, totaling to 8.5% p.a.

With the BNDES financing released in the ambit of Program for
Collective Productive Investments or Proinco, it will be used
for the installation of equipment for chemistry analysis,
homogenization and standardization of quality, through the
acidity correction and copper content.  Moreover, the project
forecasts the construction of structures for beverage storage
and bottling, which will be released in domestic market with the
"Coracao do Vale" trademark.

Cooperativa Cachacaboa is comprised of 28 associates and is open
to the adhesion of other region's producers.  Before the
formation of the association, producers had to sell the sugar
cane rum to intermediaries, for only BRL0.90 a liter.  With the
cooperative creation, they will start receiving BRL1.50 per
liter.

The associates' goal, within three years, is to jump from the
current 400,000 liters/year to 1.2 million liters/year, by
always reserving for aging a significant part of the cachaca
production, with the objective of valorizing the product and
enabling exports.

The project is expected to generate 192 direct and indirect jobs
-- twelve in the cooperative, 120 in sugar cane farming and
cachaca production, and about 60 indirect jobs in the productive
chain.

                        *    *    *

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


BRASKEM SA: Appoints New Investors Relations Team
--------------------------------------------------
Braskem S.A. has appointed Luiz Henrique Valverde as its new
Investor Relations Director.

Mr. Valverde is a chemical engineer and has been working in the
petrochemical industry for the past 21 years and in Investors
Relations for six years.  Mr. Valverde was one of Braskem's
Investors Relations managers since its creation in August 2002.

Mr. Valverde replaced Jose Marcos Treiger, who has been
Braskem's Investors Relations director for almost four years.

Luciana Ferreira was also appointed as Braskem's Investors
Relations manager.  Ms. Luciana has been working at Braskem
since 2005 and her experience in Investors Relations dates back
to 2000, having worked for two big Brazilian public held firms
in the steel and airline industries.

Braskem reaffirms its long-term commitment with the capital
markets, with the reliability, transparence and impartiality
that have always been characteristic in its relationship with
investors.

Braskem -- http://www.braskem.com.br/-- is a thermoplastic
resins producer in Latin American, and is among the three
largest Brazilian-owned private industrial companies.  The
company operates 13 manufacturing plants located throughout
Brazil, and has an annual production capacity of 5.8 million
tons of resins and other petrochemical products.

                        *    *    *

Fitch Ratings upgraded these ratings of Braskem S.A. on
July 1, 2006:

   -- Foreign Currency IDR: To BB+ Rating with Stable Outlook,
      from BB Rating with Positive Outlook;

   -- US$525 million Sr. Unsecured notes due 2008, 2014: To BB+,
      from BB;

   -- US$350 million Perpetual Bonds: To BB+, from BB;

   -- National Long-term Rating: To 'AA(bra)' from 'AA-(bra)';
      and

   -- BRL600 million 12th and 13th Debenture Issuances due 2009
      and 2010: To 'AA(bra)' from 'AA-(bra)'.

These rating actions followed Fitch's upgrade of the long-term
foreign and local currency IDRs of the Federative Republic of
Brazil to BB, from BB- on June 29, 2006.


COMPANHIA PARANAENSE: Petrobras to Run Power Plant for 3 Months
---------------------------------------------------------------
Companhia Paranaense de Energia aka Copel plans to entrust
operations of its 380-megawatt gas-fired Araucaria power plant
to Petroleo Brasileiro SA aka Petrobras for three months,
according to a report by Gazeta Mercantil.

Copel has an 80% stake in the Araucaria plant while Petrobras
holds 20%.

A Copel spokesperson told Business News Americas, "The talks are
ongoing and there is no schedule for them to end."

Copel would reduce its risk from take-or-pay contracts for the
plant by handing over operations to Petrobras, BNamericas says.
Meanwhile, Petrobras would have the rights to the revenue from
power sales and could pay Copel a monthly fee.

BNamericas relates that the transaction would allow Araucaria to
fulfill the national grid operator ONS' request to boost power
supply in the southern region, as a drought has dried up
reservoirs of hydroelectric power plants and decreased power
production, forcing the region to import most of its power needs
from other regions through the national grid.

ONS wants Araucaria to start operating in early September,
BNamericas reports.

                       About Petrobras

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.

                         About Copel

Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Paran and has a generating capacity of nearly 4,600 MW,
primarily from hydroelectric plants.  COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services.  The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitly postponed.  In response, COPEL is
re-evaluating its corporate structure.  The government of Parana
controls about 59% of COPEL.

                        *    *    *

Copel's BRL100,000,000 debentures due March 1, 2007, is rated
Ba3 by Moody's.


COMPANHIA SIDERURGICA: Merger with Wheeling May Not Succeed
-----------------------------------------------------------
"There are no guarantees that this operation will be completed
successfully", Business News Americas reports, citing Companhia
Siderurgica Nacional aka CSN, which was speaking about the
proposed merger of its North American assets with those of
Wheeling-Pittsburgh.

BNamericas relates that CSN told the Bovespa stock exchange that
the merger relies on variables that it has no control over.

According to the US media, Marco Lutz, an executive of CSN, met
with Wheeling-Pittsburgh and the United Steelworkers' Union on
Aug. 28 to discuss the firm's plans in North America.

As previously reported by BNamericas, the union said it will do
everything to block the deal, claiming that it violates the
right to bid provisions of the labor contract that allows the
union to set up an alternate transaction if the firm is
presented with a takeover bid.

Under the agreement with Wheeling, CSN will hold 49.5% before
debt conversion of a new holding firm comprising North American
subsidiary CSN LLC, with Wheeling's operations in Ohio, West
Virginia and Pennsylvania.  CSN will also put in US$225 million
in cash to the new firm, BNamericas states.

                 About Wheeling-Pittsburgh

Wheeling-Pittsburgh operates solely in the United States,
producing hot rolled, cold rolled, galvanized, pre-painted and
tin mill sheet products.

           About Companhia Siderurgica Nacional

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)'.


ITRON INC: S&P Rates US$345MM Convertible Notes at B
----------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' rating to
Itron Inc.'s US$345 million convertible senior subordinated
notes due Aug. 1, 2026.  At the same time, Standard & Poor's
affirmed all of its other ratings, including its 'BB-' corporate
credit rating, on the meter data technology provider.  The notes
are rated two notches below the corporate credit rating and are
pari passu in terms of payment with the company's existing
subordinated notes, which are also rated 'B'. Itron intends to
use the proceeds for future acquisitions and/or general
corporate purposes.

"The ratings on Itron reflect the company's aggressive financial
risk profile, as well as its moderate size," said Standard &
Poor's credit analyst James Siahaan.  The risk factors are
tempered to some extent by Itron's leading market positions in
meter-data collection and electricity-metering sales; by
expectations that the company will generate some free cash flow;
and by the favorable growth characteristics of the automatic
meter-reading market.

Itron Inc., -- http://www.itron.com/-- is a technology provider
and critical source of knowledge to the global energy and water
industries.  Nearly 3,000 utilities worldwide rely on Itron
technology to provide the knowledge they require to optimize the
delivery and use of energy and water.  Itron creates value for
its clients by providing industry-leading solutions for
electricity metering; meter data collection; energy information
management; demand response; load forecasting, analysis and
consulting services; distribution system design and
optimization; web-based workforce automation; and enterprise and
residential energy management.  Effective April 2006, Itron has
acquired Brazil's ELO Tecnologia.  Itron Tecnologia has offices
and a manufacturing assembly facility in Campinas and offices in
Santiago.


NOVELIS INC: Appoints John Watson as Independent Director
---------------------------------------------------------
Novelis Inc. said in a statement that it has appointed John
Watson as its new independent director.

As reported in the Troubled Company Reporter-Latin America on
Aug. 31, 2006, Novelis' Board of Directors decided to replace
the Company's President and Chief Executive Officer, Brian W.
Sturgell.  Effective immediately, William T. Monahan, Chairman
of Novelis' Board of Directors and the retired Chairman and
Chief Executive Officer of Imation Corp., would serve as Interim
CEO until Mr. Sturgell's successor has been selected and is in
place.  The Board started an external search for a successor to
Mr. Sturgell.

The appointment of Mr. Watson takes effect immediately, and is
valid until Novelis' 2006 annual meeting in October, when
elections will be held, Business News Americas reports.

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.  Novelis Corp.'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.


PETROLEO BRASILEIRO: Operating Copel's Power Plant for 3 Months
---------------------------------------------------------------
Gazeta Mercantil states that Companhia Paranaense de Energia aka
Copel will leave operations of the 380-megawatt gas-fired
Araucaria power plant to Petroleo Brasileiro SA for three
months.

Copel has an 80% stake in the Araucaria plant while Petrobras
holds 20%.

Gazeta Mercantil underscores that Copel plans to entrust
operations of the plant to Petrobras.

A Copel spokesperson told Business News Americas, "The talks are
ongoing and there is no schedule for them to end."

Copel would reduce its risk from take-or-pay contracts for the
plant by handing over operations to Petrobras, BNamericas says.
Meanwhile, Petrobras would have the rights to the revenue from
power sales and could pay Copel a monthly fee.

BNamericas relates that the transaction would allow Araucaria to
fulfill the national grid operator ONS' request to boost power
supply in the southern region, as a drought has dried up
reservoirs of hydroelectric power plants and decreased power
production, forcing the region to import most of its power needs
from other regions through the national grid.

ONS wants Araucaria to start operating in early September,
BNamericas reports.

Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Paran and has a generating capacity of nearly 4,600 MW,
primarily from hydroelectric plants.  COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services.  The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitly postponed.  In response, COPEL is
re-evaluating its corporate structure.  The government of Parana
controls about 59% of COPEL.

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

                        *    *    *

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

                        *    *    *

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

  Foreign Currency:

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

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

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


PETROLEO BRASILEIRO: Spat with Bolivia Holds Gas Pipeline Study
---------------------------------------------------------------
The construction of the so-called US$20 billion Southern Gas
Pipeline that will run from Caracas to Buenos Aires is put on
hold as a result of a gas price dispute between Brazil and
Bolivia.

A feasibility study of the 6,215 mile pipeline that was
scheduled for delivery this month won't be ready for at least a
year, Ildo Sauer, gas unit chief of Petrobras was quoted by
Bloomberg as saying.

The pipeline is integral to Venezuelan President Hugo Chavez's
plan to cut South America's dependence on the United States.

The two countries are not in agreement over the price of gas
that Brazil should pay Bolivia.  The Andean nation demands
doubling the price of the gas it supplies to Brazil, while the
latter insists on following their old agreement.

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.

                        *    *    *

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.




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


BAGATELLE LIMITED: Last Shareholders Meeting Is Set for Sept. 25
----------------------------------------------------------------
Bagatelle Limited's final shareholders meeting will be at 12:00
p.m. on Sept. 25, 2006, at:

              Whiteley Chambers, Don Street
              St. Helier, Jersey
              Channel 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:

              Ogier Corporate Services (UK) Limited
              Equitable House, 47 King William Street
              London, EC4R 9JD


CORALIE LIMITED: Final Shareholders Meeting Is Set for Sept. 25
---------------------------------------------------------------
Coralie Limited's final shareholders meeting will be at 1:00
p.m. on Sept. 25, 2006, at:

              Whiteley Chambers, Don Street
              St. Helier, Jersey
              Channel 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:

              Ogier Corporate Services (UK) Limited
              Equitable House, 47 King William Street
              London, EC4R 9JD


DOLMEN LIMITED: Holding Final Shareholders Meeting on Sept. 26
--------------------------------------------------------------
Dolmen Limited's final shareholders meeting will be at 12:00
p.m. on Sept. 26, 2006, at:

              Whiteley Chambers, Don Street
              St. Helier, Jersey
              Channel 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:

              Ogier Corporate Services (UK) Limited
              Equitable House, 47 King William Street
              London, EC4R 9JD


GRANGE LIMITED: Schedules Final Shareholders Meeting on Sept. 25
----------------------------------------------------------------
Grange Limited's final shareholders meeting will be at 12:00
p.m. on Sept. 25, 2006, at:

              Whiteley Chambers, Don Street
              St. Helier, Jersey
              Channel 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:

              Ogier Corporate Services (UK) Limited
              Equitable House, 47 King William Street
              London, EC4R 9JD


LEPTON LIMITED: Holding Last Shareholders Meeting on Sept. 26
-------------------------------------------------------------
Lepton Limited's final shareholders meeting will be at 1:00 p.m.
on Sept. 26, 2006, at:

              Whiteley Chambers, Don Street
              St. Helier, Jersey
              Channel 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:

              Ogier Corporate Services (UK) Limited
              Equitable House, 47 King William Street
              London, EC4R 9JD


TELEOLOGIC LIMITED: Final Shareholders Meeting Is on Sept. 26
-------------------------------------------------------------
Teleologic Limited's final shareholders meeting will be at 2:00
p.m. on Sept. 26, 2006, at:

              Whiteley Chambers, Don Street
              St. Helier, Jersey
              Channel 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:

              Ogier Corporate Services (UK) Limited
              Equitable House, 47 King William Street
              London, EC4R 9JD


VICTORIA HOLDINGS: Sets Final Shareholders Meeting on Sept. 26
--------------------------------------------------------------
Victoria Holdings Ltd's final shareholders meeting will be at
10:00 a.m. on Sept. 26, 2006, at:

              VLH Accounting Services
              7 Selkirk Plaza, 80 West Bay Road
              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:

              Victoria Hollingworth-Havlin
              VLH Accounting Services
              7 Selkirk Plaza, 80 West Bay Road
              P.O. Box 1215, George Town
              Grand Cayman, Cayman Islands
              Tel: (345) 946 7175
              Fax: (345) 946 7174




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


SHAW GROUP: IIS to Improve Transactional Business Processes
-----------------------------------------------------------
Image Integration Systems aka IIS, disclosed that its DocuSphere
software suite will provide an integrated workflow and document
management solution to improve transactional business processes
at The Shaw Group.

The Shaw Group will implement the DocuSphere software throughout
the Accounting Department for all of The Shaw Group's 170
locations worldwide.  The software is expected to improve key
transactional business processes, especially Accounts Payable
(A/P) and billing.

The IIS solution for The Shaw Group includes DocuSphere
Workflow, DocuSphere Auto Voucher, DocuSphere Electronic Report
Management and DocuSphere for Documentum, which provides an
interface to The Shaw Group's existing Documentum document
repository from EMC.  The DocuSphere JDE Integration module will
be implemented to provide seamless interaction with The Shaw
Group's current ERP system, Oracle JD Edwards World.

"The Shaw Group selected Image Integration Systems because IIS
has an impressive track record of improving the transactional
processes of companies in the construction industry," said James
Sabin, Vice President & Director of Business Systems, The Shaw
Group.  "We expect IIS DocuSphere software to enhance accounting
processes throughout the company, which will help us improve
productivity and accuracy, strengthen our document tracking
abilities, and ultimately create significant value and cost
savings compared to the current processes."

The initial planning and business process redesign work for the
solution is currently underway. The solution is expected to go
live early in 2007.

IIS will work with Trinity Technologies, a leader in
configuring, customizing and implementing the Documentum content
management system, to integrate the IIS DocuSphere solution with
The Shaw Group's existing Documentum document management
software and repository.

"Image Integration Systems is excited to be working with The
Shaw Group to enhance and strengthen its Accounting system,"
said Bradley White, President of Image Integration Systems.
"The Shaw Group is highly regarded, and ranks as one of the
largest construction companies in the United States. IIS is
pleased to help the company improve its process efficiencies and
effectiveness, resulting in improved relations with both
customers and vendors."

                      About Shaw Group

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

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




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


BAVARIA SA: S&P Withdraws BB+ Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'BB+' corporate
credit and senior unsecured debt ratings on Bavaria S.A. at the
company's request.

"The rating action also follows Bavaria's successful early
redemption of US$500 million bonds due 2010, via the company's
call option," said Standard & Poor's credit analyst Luis Manuel
Martinez.

Bavaria is the second largest brewer in South America with
leading market positions in Colombia, Peru, Ecuador, and Panama,
where its key brands are Aguila, Cristal, Pilsener, and Atlas,
respectively. In October 2005, SABMiller PLC (BBB+/Stable/--)
completed the acquisition of a controlling interest in Bavaria.


BBVA COLOMBIA: Sells COP89 Bil. of Five-Year Inflation Bonds
------------------------------------------------------------
BBVA Colombia, the Colombian unit of Spain's Banco Bilbao
Vizcaya Argentaria, said in a statement that it sold COP89
billion of five-year inflation-linked bonds.

As reported in the Troubled Company Reporter-Latin America on
Aug. 29, 2006, local press said that BBVA Colombia would issue
COP100 billion worth of bonds on the Colombian stock market on
Aug. 28, 2006.  BBVA Colombia could increase the offering to
COP200 billion, depending on investor demand.  BBVA Colombia's
issuance of the bond -- which would mature in five years -- is
part of a larger COP400 billion bond program.

However, the bank sold less than COP100 billion, MarketWatch
relates. The bonds will pay a coupon of the inflation rate plus
5.2%.  The interest rate is the maximum rate BBVA Colombia was
ready to pay.

The bonds have been given a AA+ by local currency rating by Duff
& Phelps de Colombia, BBVA Colombia told MarketWatch.

                        *    *    *

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.




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


BANCO INTERNACIONAL: S&P Affirms BB/B Counterparty Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB/B'
counterparty credit rating on Banco Internacional de Costa Rica
S.A. aka BICSA.  The outlook was revised to stable from
negative.

"The outlook revision to stable from negative reflects better
efficiency, from 70% in 2005 to 63% at June 2006, surging from
less expenses and provisions and a net interest income
attributable to a 21% loan growth after several stagnant years,"
said Standard & Poor's credit analyst Laurence Wattraint.  A
concentration in credit exposure, deposit base, and capital in
Costa Rica (BB/stable/B); a decreasing capitalization level; and
lower-than-peers profitability limit the ratings.  The ratings
are balanced by the slimmer organizational structure, the
refocusing in trade finance, its core business, and better
results.

The bank has important exposures to Central America, mainly
Costa Rica, with total exposure to this country of 47% in the
loan portfolio and 60% in deposits at June 2006.  Additionally,
BICSA's shareholding structure is highly related to Costa Rica
since its major shareholders are the two largest state-owned
commercial banks of this country. Exposure to Central American
small and nondiversified economies poses different challenges to
the bank.  For instance, as a lender of trade finance, economic
problems in any country in the region could have a significant
effect on the bank's performance.  The historic level of
adjusted common equity has decreased to 13% at June 2006 from
18.5% in 2002. In our opinion, BICSA could require higher
capital levels due to the concentration of its balance sheet and
its expansion plans. The decrease in BICSA's loan portfolio
margins has caused ROAA to fall to 1.15% at June 2006 from 1.51%
five years ago.  Additionally, lower provisions for loan losses
as compared to previous years have influenced this profitability
level.

Better results during the first half could be observed, with net
operating income of US$3.6 million in June 2006 versus US$2.6
million a year before.  Pressures on profitability arising from
the reorganization of the bank have been completely absorbed, so
we expect BICSA to improve its efficiency levels as the
portfolio grows.

The stable outlook indicates that results are expected to
continue on the current upward trend and the loan portfolio will
grow with discipline.  To improve the ratings, BICSA needs a
more global activity within the region, reducing geographic
concentration and consistently increasing its profitability.
The ratings could be lowered if the bank's financial performance
deteriorates or if there is any deviation or delay from a
recovery trend in the bank, especially because BICSA is
challenged by stronger competition in its core business, trade
finance from global commercial banking.




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


* CUBA: Testing Wind as Electricity Source in Turiguano Island
--------------------------------------------------------------
Cuba, as part of its revolutionary national energy program, is
testing wind as electricity source in the Aeolian Demonstrative
Park in Turiguano Island, Prensa Latina reports.

According to Granma daily, two towers about 11,083 feet above
sea level, are supplying 2,248 people with electricity the north
winds produced.

The program will offset increasing oil prices and exhaustion of
world oil reserves, and raise awareness of the renewable
alternative energy source, which is the wind, Prensa Latina
relates, citing Engineer Adonis Perez Lorenzo, who in charge of
the two turbine engines.

Luis Manuel Batista Tamayo, a meteorologist, told Prensa Latina
that year-round wind speed in Turiguano Island ranges from 16.4
to 26.25 feet/second.  It would allow nonstop use.

According to a research, several places are able to generate
about 420 megawatts per hour of electricity -- about one-fifth
of the electricity consumption in Cuba.  Among these places are:

       -- Isle of Youth,
       -- westernmost Pinar del Rio Province, and
       -- northeast Cuba, from Holguin to Villa Clara Province.

                        *    *    *

Moody's assigned these ratings to Cuba:

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




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


FALCONBRIDGE LTD: Inks Option & Joint Venture Accord with Benton
----------------------------------------------------------------
Falconbridge Limited has entered into an option and joint
venture agreement with Benton Resources Corp.

Falconbridge Limited is a subsidiary of the Xstrata group,
whereby Xstrata has the exclusive right and option at its
election to earn up to a 70% interest in the Goodchild Lake Ni-
Cu-PGM Project by spending US$25,000,000 or completing a
feasibility study, which ever comes first.

The specific terms of the agreement are as follows:

    a) to maintain the right and option and earn a 50% interest
       Xstrata must complete aggregate exploration expenditures
       of US$3,000,000 by Aug. 1, 2009, and make payments to
       Benton totaling US$335,000 over the term of the earn-in:

      * an initial US$50,000 cash payment on signing of the
        agreement;

      * an additional US$60,000 cash payment and spend
        US$750,000 on exploration by Aug. 1, 2007;

      * an additional US$75,000 cash payment and spend an
        aggregate of at least US$1,750,000 on exploration by
        Aug. 1, 2008; and

      * an additional US$150,000 cash payment and spend an
        aggregate of US$3,000,000 on exploration by Aug. 1,
        2009;

   b) to earn a further 10% interest to bring its interest to
      60%, Xstrata must spend a further US$2,000,000 on
      exploration by Aug. 1, 2011;

   c) to earn a further 10% to bring its total interest up to
      70%, Xstrata must spend a further US$20,000,000 on
      exploration or complete a feasibility study, which ever
      comes first, by Aug. 1, 2014;

   d) provided Xstrata earns a minimum of a 50% interest,
      Xstrata and Benton will form a joint venture (JV) based on
      the respective interests of the parties at the stage that
      Xstrata ceases to increase its interest; and

   e) After the JV is formed, if either party dilutes to a 10%
      interest, such interest shall automatically be converted
      to a 3% Net Smelter Royalty (NSR) of which 1.5% can be
      purchased for US$1.5 million by the other party.

The Goodchild Lake Project is located approximately 15km north
of Marathon, Ontario and is host to several nickel showings with
grab samples assaying up to 5.67% nickel -- collected by Benton
personnel -- and 6.72% nickel (Xstrata personnel).  The large
ultramafic intrusion measures approximately 5x8km and has
numerous untested airborne electromagnetic anomalies.  Benton
will keep their shareholders updated on developments at the
property as exploration moves forward.

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

                        *    *    *

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


VIVA INT'L: Restructuring Plans Facilitate Expansion & Financing
----------------------------------------------------------------
Viva International, Inc., plans to restructure the Company to
facilitate its expansion and financing efforts as an aviation
holding company.

                     CEO Appointment

Rodolfo "Rudy" Dominguez accepted the appointment as Chief
Executive Officer of the Company and veteran aviation executive
Calvin Humphrey has joined the Company's Board of Directors.

              River Hawk Acquisition Talks

Additionally, the Company is in negotiations to acquire the
assets and the business operations of River Hawk Aviation, Inc.,
a privately held company owned by Mr. Humphrey.  This agreement
will enable the Company to further develop a domestic corporate
entity specializing in the acquisition of aircraft and the sale
of aviation parts.  Furthermore, management believes that the
activities of River Hawk can be expanded to create opportunities
to support and develop the interests of the Company's
subsidiaries in the Caribbean.  It is anticipated that Calvin
Humphrey will have an expanded role in the Company after the
completion of the acquisition of River Hawk.

          Cambridge Partners Consulting Deal

The Company has also entered into a Consulting Agreement with
Cambridge Partners, LLC that contemplates assisting management
with certain applications of Viva International, Inc. and Viva
Air Dominicana, S.A. (its 49% owned subsidiary) for separate
listings on the Frankfurt Stock Exchange.  In addition, the
Company has entered into negotiations with individual owners of
Company stock that will provide up to twenty million shares to
fund the Consulting Agreement.  Under the Consulting Agreement,
registered broker dealers will help effect private sales that
the Company expects to generate up to US$5 million in proceeds
if all 20,000,000 shares are sold.  The Company anticipates
entering into loan agreements for up to 80% of the proceeds.

The Company release emphasized that as a condition of its
Consulting Agreement with Cambridge it will study the
feasibility of a future distribution of the assets of its
Eastern Caribbean Airlines, Inc., subsidiary, which distribution
will be effected for the benefit of its then existing
shareholders.

"The pursuit of River Hawk combined with the Cambridge
Consulting Agreement brings my vision for this Company into the
acceleration mode," Company CEO Rodolfo "Rudy" Dominguez stated.
"From the financing side, the Company still has a number of
projects that the investment banker network is reviewing and on
which we are seeking funding commitments.  Further, the addition
of the Cambridge Consulting Agreement gives us a broader base of
financing from which we expect to be able to draw.  The
availability of Cal Humphrey in an expanded capacity as well as
the ability of our organization to attract additional quality
management and fulfill the expansion of our Board of Directors
makes this an exciting time for our shareholders and followers."

                 About Viva International

Based in Traverse City, Viva International, Inc. (OTCBB: VIVI)
-- http://www.flyviva.com/-- is a publicly traded aviation
holding company in the business of developing and/or acquiring
aviation related entities with beneficial air service
certificates and economic rights.  Viva International has a
number of airline and aviation-related interests including two
development stage carriers being readied to operate in regional
markets from hubs in Puerto Rico and Santo Domingo, Dominican
Republic.

At June 30, 2006, the Company's balance sheet showed a
stockholders' deficit of US$4,167,988, compared to a deficit of
US$4,116,893 at March 31, 2006.

                   Going Concern Doubt

As reported in the Troubled Company Reporter on May 26, 2005,
Kempisty & Company CPAs, P.C., raised substantial doubt about
Viva International Inc.'s ability to continue as a going concern
after it audited the Company's financial statements for the
fiscal year ended Dec. 31, 2004.  The auditors cite Viva's
US$14.9 million net loss for the period from April 18, 1995, to
December 31, 2004, and zero operating revenue for the two-year
period ended Dec. 31, 2004.


* DOMINICAN REPUBLIC: Appropriates US$30 Mil. to Boost Tourism
--------------------------------------------------------------
The Dominican Republic government has reserved US$30 million to
improve the country's tourism.  A major percentage of the budget
is especially set aside for the upgrade of its beaches,
Travelmole reports.

According to Travelmole, the country's Popular Long Beach is
being lengthened by one mile and other beaches are reportedly
enjoying new amenities.

"The increase in quality beachfront in Puerto Plata has allowed
us to re-zone, thereby maximizing its use for tourism," Minister
of Tourism Felix Jimenez told Travelmole.

A construction of a new dock that will house restaurants, bars
and other facilities that tourists will enjoy and a new
amphitheater are two of the outlined projects for the country's
tourism program.

                        *    *    *

The Troubled Company Reporter-Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:

   -- Long-term foreign currency Issuer Default Rating
      to B from B-;

   -- Country ceiling upgraded to B+ from B-;

   -- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;

   -- Foreign currency Brady bonds due 2009 to B/RR4
      from B-/RR4;

   -- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;

   -- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;

   -- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and

   -- Foreign currency collateralized Brady bonds due 2024
      to B+/RR3 from B/RR3.

Fitch also affirmed these ratings:

   -- Long-term local currency Issuer Default Rating: B; and
   -- Short-term Issuer Default Rating: B.

Additionally, Fitch assigned a debt and Recovery Rating to this
issue:

   -- Foreign currency bonds due 2027: B/RR4.

Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.




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


PETROECUADOR: Calling for Bids on Marginal Fields in September
--------------------------------------------------------------
Ecuador's energy ministry said in a statement that state-run oil
firm Petroecuador will call for bids on nine marginal fields in
the Amazon on Sept. 14 to 16.

As reported in the Troubled Company Reporter-Latin America on
Aug. 23, 2006, Petroecuador was planning a tender of Armadillo,
Chanangue, Eno-Ron, Frontera-Tapi-Tetete, Ocano-Pena Blanca,
Pacay, Pucuna, Puma, and Singue.  Petroecuador plans to turn the
fields over to private entities due to lack of capital and
development facilities.

The fields' proved reserves total 120 million barrels (Mb).
Business News Americas relates that initial investment for
development is expected to amount to US$300 million.

Fields with the largest proved reserves are:

     -- Frontera-Tapi-Tetete with 45.9Mb,
     -- Pucuna with 24.3Mb, and
     -- Puma with 14.2Mb.

BNamericas notes that the ministry hopes the contracts will
boost the fields' total production by over 400% to 30,000
barrels a day (b/d).

Frontera-Tapi-Tetete field produces 4,338b/d and Pucuna produces
1,619b/d.  The other fields are not yet producing.

Crude at the fields ranges from API grade 18-34.  Frontera-Tapi-
Tetete, Chanangue and Pucuna had the highest grade.

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.




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


* GUATEMALA: Gets US$100-Mil. Loan to Boost Broad-Based Growth
--------------------------------------------------------------
The World Bank approved a US$100 million quick-disbursing
budgetary support loan which recognizes Guatemala's efforts to
promote higher, more inclusive growth through improvements in
the business climate, strengthened trade integration and more
secure property rights in urban and rural areas.  Other measures
supported include increased social spending and improvements in
public financial management and procurement.  The loan is the
second in a series of three loans identified in the World Bank's
Country Assistance Strategy for Guatemala.

"With a multi-ethnic population of about 13 million and a gross
national per-capita income of about US$2,350, Guatemala is the
largest economy in Central America; however, poverty and
inequality are high and social indicators are low relative to
the country's average income," said Jane Armitage, World Bank
Director for Central America. "Strengthening the environment for
economic growth, trade and investment, particularly in basic
social and infrastructure services, are key to ensuring
sustainable poverty reduction."

Specifically, the Second Development Policy Loan will help in:

   -- Meeting fiscal and financing needs.  This loan helps meet
      the Government's objective of providing financing on more
      favorable terms and diversifying financing sources for
      its 2007 budget;

   -- Improving the outlook for economic growth. The loan
      supports a broad agenda of measures anchored around
      Guatemala's efforts to deepen its trade and regional
      integration agenda, including its participation in
      DR-CAFTA.  The agenda includes key actions of the
      complementary agenda of policy and institutional reforms
      to ensure that Guatemala can fully benefit from the
      opportunities of trade and greater integration into the
      world economy;

   -- Increasing Social Spending.  The loan supports increased
      allocation of budgetary resources for key social spending
      needs identified in the Peace Accords, including
      education, health and access to justice.

   -- Increasing the efficiency and transparency of public
      sector management.  The loan supports public sector
      modernization efforts aimed at improving the efficiency
      of public expenditures, strengthening governance and
      fighting corruption with a specific focus on government
      procurement and financial management.  Efforts in these
      areas are also expected to foster an environment more
      conducive to investment and growth.

The loan supports the government's development plan "Vamos
Guatemala", which seeks to promote social solidarity, reduce
poverty and inequality and promote economic integration;
accelerate growth to above the 4% observed in the 1990s and
ensure the environmental and social sustainability of economic
development.

"The Berger Administration has placed high priority on
reigniting inclusive growth as a key pillar of its 'Vamos
Guatemala!' plan to achieve the economic and, especially,
poverty reduction and social goals, identified in the 1996 Peace
Accords," said Neeta Sirur, World Bank Country Manager in
Guatemala.  "The Guatemalan economy is showing strong signs of
recovery in the two or so years since implementation of the
development plan began, so the Bank is delighted to be able to
support the plan with this new financing."

"The structure of Guatemala's economy has shifted substantially
since the 1980s, moving from a principally agriculture (coffee-
dominated) base, to a much more diversified economy, with
increased emphasis on commerce, tourism and financial services,"
said David Gould, World Bank Lead Economist for Central America
and Co-Task Manager of the loan.  "We hope that this new program
will assist the government in continuingto improve the
investment climate, ultimately strengthening the economy as a
whole."

This US$100 million Development Policy Loan has a reimbursement
period of 20 years, including two-year grace period.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

Fitch also rated Guatemala's senior unsecured bonds:

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




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


DIGICEL LTD: Partners with UniTransfer to Provide Better Access
---------------------------------------------------------------
Digicel Group, the fastest growing mobile telecommunications
provider in the Pan Caribbean region, announced a strategic
partnership with UniTransfer, one of the largest transfer
agencies in Haiti.

This alliance provides the Haitian Diaspora community in North
America with the capability of purchasing mobile handsets and
call credit for friends, family and associates based in Haiti.

Digicel has made the process extremely simple and efficient for
customers in need of call credit or a mobile phone.  The offer
includes a choice of six cutting edge handsets, including the
Nokia 6020 and the Sony Ericsson z300.  Once a Digicel customer
is notified of a purchase made on their behalf the selected
handset becomes available within an hour at any UniTransfer or
UniBank branch in Haiti.  If call credit is purchased on behalf
of a customer it is immediately sent to the friend or family
member's mobile account.

"Digicel has a strong track record of entering new markets where
communications needs are underserved and completely transforms
the market.  We are replicating this success in Haiti by
allowing more people to harness the benefits of our services,"
said Mr. Colm Delves, CEO of Digicel Group.  "Our partnership
with UniTransfer strengthens our overall commitment to raise the
level of mobile penetration in Haiti and drive the development
of communications technology throughout the region."

This new service is available to more than 450,000 customers in
330 UniTransfer agencies across the United States and Canada.

With a population of 8.5 million and a combined fixed and
cellular penetration of 5.7 percent, Haiti represents a
significant opportunity for growth for Digicel.  Since its
launch in Haiti on May 3, 2006, Digicel has quickly gained
market share as mobile customers have embraced the company's
innovative mobile technology and accessible telecommunication
services.

Digicel has invested US$1.2 billion in the Pan Caribbean region
over the past five years and operates in 20 markets.  The
company recently raised US$150 million in capital through an
international corporate bond offering to further support the
demand in Haiti, as well as, newly launched Trinidad & Tobago.

                     About UniTransfer

Founded in 1999, UniTransfer is one of the largest houses of
transfer in Haiti and a subsidiary company of UniBank, one of
Haiti's largest trade banks.  UniTransfer has established itself
as a one stop service provider for money transfers, remote
payments for acquisitions of all types of goods and services,
delivery of documents and transmission of messages providing a
unique link between the Haitian community at home and in North
America.

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.




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


* HONDURAS: Economic Growth Challenged by Interest Groups
---------------------------------------------------------
Representatives from the Inter-American Development Bank and
Honduran Congress discussed the 2007-2010 program which include
a US$400 million investment in the country, local paper La
Tribuna says.

According to the same report, one of the objectives of the
program is equitable economic growth in order to create job
opportunities.  However, IADB says the fiscal sustainability,
which has been considerably improved since 2002, is now
challenged by increased pressure from interest groups trying to
increase the salaries in the public sector.

                        *    *    *

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


DIGICEL LTD: Launches Emergency Text Messaging to Combat Crime
--------------------------------------------------------------
Digicel Ltd. disclosed that its new emergency text messaging
service, launched in partnership with the Jamaica Constabulary
Force or JCF, is helping to combat crime in Jamaica and quickly
becoming a viable option for people seeking immediate emergency
assistance from the police.  The initial phase of service roll-
out began in June 2006, and it has quickly gained momentum with
3,000 emergency text messages already received by the JCF.

Digicel's Emergency Text Messaging Service enables the public to
text real-time messages to the JCF police control center using
the short code 119.  Text messages cost only JMD1.00
(approximately US$0.01).

According to the JCF Police Commissioner Lucius Thomas, "The 119
emergency text messaging service has already proven itself a
viable option for members of the public to share information
with the police and seek immediate help.  We commend Digicel for
having the foresight and technology innovation to help curb
crime and violence island-wide. We hope it will encourage other
organizations to take equal responsibility for fighting crime."

Users on each of Jamaica's three mobile networks can access the
service, further ensuring that all residents can seek help in
the event of an emergency.  The new service also allows people
with speech and hearing impairments to immediately contact the
police in emergency situations.

"We are using the latest technology in order to overcome
barriers for some of the more vulnerable people in our society,"
said Mr. Harry Smith, Digicel Jamaica Commercial Director.

"At Digicel we challenge ourselves to be innovative in every
aspect of our business and we continually explore innovative
ways in which the benefits of communications technology can be
shared as widely as possible," Mr. Smith added.

Digicel Jamaica represents the company's largest and longest
standing operation to date following its launch in April 2001.
Breaking a decade-old monopoly, Digicel acquired 100,000
subscribers in its first 100 days of operation.  In just five
years, mobile penetration rates in Jamaica have increased
dramatically, rising from four to 75%.

Digicel now operates in 20 Caribbean markets and has 2.6 million
subscribers.  With a total investment in the region valued at
US$1.2 billion, the company employs more than 2,000 people.

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.


KAISER ALUMINUM: Extends Contract to Supply Aluminum to Raytheon
----------------------------------------------------------------
Kaiser Aluminum disclosed the extension of a contract with A.M.
Castle & Co. to supply aerospace manufacturer Raytheon Aircraft
Company with high-quality fabricated aluminum products.  The
agreement extends an earlier contract to 2010 and calls for an
increased supply of high-quality fabricated aluminum sheet and
plate products.

"We're pleased to extend our collaboration with A.M. Castle &
Co. and to further support the production of Raytheon Aircraft
Company," said Jack A. Hockema, chairman, president and CEO,
Kaiser Aluminum.

Kaiser Aluminum's sheet and plate products will be utilized in
the production of products for aircraft such as the Hawker
400XP, the Hawker 4000 super-midsize business jet, the
Beechcraft Premier IA entry-level business jet, the Beechcraft
King Air Series, and the T-6 trainer aircraft.

A.M. Castle & Co. is a specialty metals and plastics
distribution company serving the North American market,
principally within the producer durable equipment sector.

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


SUGAR COMPANY: Gov't Won't Complete Divestment This Year
--------------------------------------------------------
Radio Jamaica reports that "key players" in Jamaica's sugar
sector said the government won't be able to complete the
divestment of the Sugar Company of Jamaica's assets in 2006.

According to Radio Jamaica, PJ Patterson, the former Prime
Minister of the nation, disclosed in 2005 that the government
planned to sell some sugar factories and close the others.

Cane farmers told Radio Jamaica that the administration of
Portia Simpson Miller, with four months left in the year, will
be pressured to complete the process of selling the factories.

Based on recent developments, that divestment process could
start in 2007, Radio Jamaica relates, citing Allan Rickards, the
chairperson of the All-Island Jamaica Cane Farmers Association.

Radio Jamaica notes that Roger Clarke, Jamaica's minister of
agriculture, will be meeting trade union representatives to
discuss what would happen to thousands of sugar workers, who
have been restive for several months due to the uncertainty of
their jobs and the absence of a timetable for the privatization
of the factories.

Minister Clarke will be presenting a comprehensive update during
the meeting, Radio Jamaica states.

Sugar Company of Jamaica registered a net loss of almost US$1.1
billion for the financial year ended Sept. 30, 2005, 80% higher
than the US$600 million reported in the previous financial year.
Sugar Company blamed its financial deterioration to the
reduction in sugar cane production.




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


BANCO MERCANTIL: Expects 30% Annual Performing Loan Growth
----------------------------------------------------------
Press reports say that Banco Mercantil del Norte aka Banorte
expects annual performing loan growth of up to 30% in 2006.

According to the reports, Banorte predicted a 20% growth in
performing loan at the start of this year.

Business News Americas relates that statistics from regulator
CNBV indicate that Banorte's performing loans at the end of 2005
amounted to MXN106 billion.

Banorte, says Mexican daily El Informador, increased its loan
growth estimates due to strong demand from individual and
corporate customers.

This year Banorte expects up to 40% growth in retail lending and
a 25% boost in corporate loans, El Informador reports.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 2, 2006, Fitch upgraded the individual and Issuer Default
Ratings of Mexico's Grupo Financiero Banorte and Banco Mercantil
del Norte as:

Grupo Financiero Banorte (GFNorte) and Banco Mercantil del Norte
(Banorte):

   -- Foreign & local currency IDR to 'BBB' from 'BBB-';
   -- Short-term local currency to 'F2' from 'F3'; and
   -- Individual to 'C' from 'C/D'.

The Ratings Outlook is Stable.

At the same time, Banorte's national-scale long-term rating was
upgraded to 'AA+(mex)' from 'AA(mex)', while subordinated
debentures BANORTE 02D were upgraded to 'AA(mex)' from 'AA-
(mex)'.

These ratings were affirmed:

   GFNorte

      -- Short-term foreign currency IDR 'F3'; and
      -- Support '5'.

   Banorte

      -- Short-term foreign currency IDR 'F3';
      -- Short-term national-scale rating 'F1+(mex)'; and
      -- Support '3'.


CONSOLIDATED CONTAINER: Inks US$10M Settlement with Dean Foods
--------------------------------------------------------------
Consolidated Container Holdings, LLC, Consolidated Container
Company, LLC, Consolidated Container Company, LP, and Dean Foods
Company have entered into a Settlement Agreement.

The Settlement Agreement was reached after the Company's
management initiated an internal review of its records relating
to bottle and resin supply agreements with Dean Foods and
initiated discussions with Dean Foods regarding possible
breaches under the agreements.

Under the terms of the Settlement Agreement, the Company has
agreed to pay US$10 million to Dean Foods:

   -- US$4 million on a date to be determined between
      Sept. 30, 2006, and Dec. 31, 2006;

   -- US$3 million on or before Aug. 22, 2007; and

   -- US$3 million on or before Aug. 22, 2008.

Pursuant to the terms of the Settlement Agreement, Dean Foods
has agreed to waive any and all claims against the Company or
its affiliates related to all supply agreements between them and
relating to the period of time prior to July 1, 2006.

           Restatement of Financial Statements

The Company's Audit Committee concluded that the Company's
financial statements for the years ended Dec. 31, 2005, 2004 and
2003 should no longer be relied upon, along with the related
reports from its independent registered public accountants,
because of errors in such financial statements.  The Company
anticipates that the restatement of its financial statements
will result in a reduction of earnings for the respective
periods in an aggregate amount ranging from approximately US$24
million to US$27 million, cumulative.

                 Credit Facility Default

The Company has notified the agent under its senior credit
facility that defaults exist and that the Company has withheld
execution of the amendment to its facility that had been
approved by its bank lenders.  The Company intends to seek a
waiver of such defaults and will attempt to promptly finalize
the amendment.  Although the Company believes it will have
adequate liquidity through the quarter ending Sept. 30, 2006,
until such waiver has been granted, it may not incur any
additional borrowings under its revolver.

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

                        *    *    *

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


FORD MOTOR: Eyes Sale of Luxury Auto Brands to Investment Group
---------------------------------------------------------------
Ford Motor Co. is in talks to sell its Jaguar and Land Rover
brands led by its former CEO Jacques Nasser, Reuters reports
citing Bloomberg News as its source.

According to Bloomberg, the discussions are with JPMorgan Chase
& Co.'s One Equity Partners LLC, where Mr. Nasser is senior
partner for mergers and acquisition.

The talks, which don't involve Volvo, could result in a joint
venture rather than an outright acquisition, the report states.

In October 2001, Mr. Nasser was ousted as Ford's president and
CEO shortly after the company reported a US$692 million third
quarter loss on top of a loss the previous quarter, Reuters
relates.

As reported in TCR-Europe on Aug. 22, Ford disclosed plans to
close more factories, cut more management jobs by another 10% to
30% and reduce benefits as it reels from a US$254 million net
loss for the second quarter of 2006.  The original plan called
for termination of 30,000 employees and shutting down of 14
plants by 2012.

                      About Ford Motor

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

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of
Ford Motor Company Under Review with Negative Implications
following announcement that Ford will sharply reduce its North
American vehicle production in 2006.  DBRS lowered on
July 21, 2006, Ford Motor Company's long-term debt rating to B
from BB, and lowered its short-term debt rating to R-3 middle
from R-3 high.  DBRS also lowered Ford Motor Credit Company's
long-term debt rating to BB(low) from BB, and confirmed Ford
Credit's short-term debt rating at R-3(high).

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

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

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


GRUPO IUSACELL: Debt Restructuring Program Close to Completion
--------------------------------------------------------------
Grupo Iusacell SA de CV said in a statement that it is close to
completing a US$350 million debt restructuring program
negotiated under Mexican bankruptcy laws.

Business News Americas reports that Grupo Iusacell has entered
an agreement -- Convenio Concursal -- with creditors
representing 90% of the firm's total debt.

According to the report, Grupo Iusacell is waiting for the
consent of the conciliator local bankruptcy-monitoring agency
Ifecom appointed to submit the agreement for approval by a
Mexican judge.

BNamericas notes that once the judge ratifies the agreement,
Grupo Iusacell's restructuring process will be complete.

The agreement, says BNamericas, is based on a previously
disclosed restructuring agreement that will allow Grupo Iusacell
to exchange US$350 million in 14.25% notes due 2006 for US$175
million of new notes due 2013, bearing interest of 10% per
annum.  The agreement also includes the cancellation of any
default interest due and payable under the 2006 notes.  Grupo
Iusacell owes its creditors a total of MXN5.93 billion, mostly
in the form of bonds issued in the United States.

BNamericas underscores that Grupo Iusacell is also negotiating
an exchange offer for notes and loans worth US$416 million,
consisting of:

      -- bank loans worth US$190 million and US$76 million, and
      -- senior notes worth US$150 million.

Grupo Iusacell's investor relations office said that the debt
requires separate negotiation.  It is taking longer than the
US$350 million exchange, BNamericas relates.

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

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

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

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


GRUPO MEXICO: Ferromex Seeks Antitrust Agency's Review on Merger
----------------------------------------------------------------
Local press says that Ferromex -- which is 74% owned by IFT, a
subsidiary of Grupo Mexico SA de CV -- has asked Comision
Federal de Competencia or CFC, the antitrust authority in
Mexico, to reconsider its decision to reject the company's
merger with Ferrosur.

As reported in the Troubled Company Reporter-Latin America on
Aug. 1, 2006, Grupo Mexico said that the ruling made by the CFC
against the merger could be upturned on appeal.  As reported
earlier, CFC rejected Grupo Mexico's merger request after Kansa
City Southern pointed out that the move would hurt competition.
CFC ruled that the merger would give Grupo Mexico dominance in
Mexican regions like Mexico City as well as in the Veracruz
port.  Grupo Mexico insisted that the merger is necessary for
Ferromex, which it had acquired from Carlos Slim, to compete in
the rail sector as Kansas City Southern enjoys advantages of a
seamless network between the US and Mexico.  Octavio Ornelas,
the executive vice president for Grupo Mexico's railway
division, said, "We believe that they didn't fully analyze the
arguments that we put forward.  We really believe that we have a
very strong case there."  Grupo Mexico was given until Aug. 28
to submit an appeal while regulators had 60 days to respond, Mr.
Ornelas said in a conference call with analysts.

Octavio Ornelas, Ferrosur's director general told Business News
Americas that Ferromex has provided new information to CFC and
made arguments that were not fully answered by the antitrust
authority when it made its decision in June.

BNamericas relates that Mr. Ornelas said the case for the merger
is now more solid from the company's point of view.

Mr. Ornelas told BNamericas, "We're using all of the options
that the CFC grants us. Obviously we're going to try and sit
down with the CFC staff to explain in detail everything in the
document."

The new information Ferromex provided to CFC includes the claim
that the merger would boost competition in the freight transport
industry, banmericas states, citing Mr. Ornelas.

Mr. Ornelas told El Financiero, "We're trying to call the CFC's
attention to the reasons that we think make this merger pro
competition for the Mexican transport market."

CFC will have two months to study the information, BNamericas
reports.

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

                        *    *    *

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

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


GRUPO MEXICO: Unit Approves Two-For-One Stock Split
---------------------------------------------------
Grupo Mexico SA de CV's mining unit, Southern Copper Corp., told
Dow Jones Newswires on Wednesday that its board of directors
have ratified a "two-for-one stock split".

The split will boost the number of shares outstanding to 294.5
million from 147.2 million, Southern Copper said in a press
release.

Shareholders at the close on Sept. 15 will receive one new share
for each share held.  The new shares will be available on
Oct. 2, Dow Jones reports.

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

                        *    *    *

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

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


MERIDIAN AUTO: Court OKs Pact With GECC to Repossess Equipment
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
a stipulation between Meridian Automotive Systems, Inc., and its
debtor-affiliates and General Electric Capital Corporation.

The parties agree that:

   (a) The automatic stay is terminated with regards to GECC,
       the Debtors and the Leased Equipment to permit GECC to
       exercise all of its rights and remedies under state law
       and the Equipment Lease Documents;

   (b) The Debtors release all of their rights in the Leased
       Equipment and Equipment Schedule No. 005 to the Parties'
       Master Lease Agreement.  The Parties agree that the
       Schedule is rejected;

   (c) GECC waives and releases the Debtors from all
       obligations, liabilities and claims concerning the Leased
       Equipment except for certain damages claims;

   (d) GECC may store the Leased Equipment on the Debtors'
       premises where it is currently kept, at the corporation's
       sole risk of loss and damage except those resulting from
       the Debtors':

       -- abuse, relocation, dismantling or modification of the
          Leased Equipment; or

       -- gross negligence subsequent to January 12, 2006.

       GECC may store the Leased Equipment without the
       Obligation to pay any rent or other storage charges to
       the Debtors until February 2007.  However, if the Debtors
       sell the Subject Premises, GECC will remove the Leased
       Equipment at its sole cost and expense upon 30 days'
       notice prior to the closing of the Premises' sale;

   (e) GECC will have the right to enter the Subject Premises
       during normal business hours, upon 48 hours' notice via
       electronic mail to Matthew K. Paroly to:

       -- show the Leased Equipment to prospective purchasers;
       -- appraise or repair the Leased Equipment; or
       -- remove the Leased Equipment.

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens.  When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 37; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


ORTHOFIX INT: Moody's Lowers Family Corp. Rating to Ba3 from Ba2
----------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Orthofix International N.V. to Ba3 from Ba2.  The outlook
remains stable.

Moody's also assigned a Ba3 rating to the proposed US$375
million senior secured credit facilities of Orthofix Holdings
Inc. (U.S.), a subsidiary of Orthofix International N.V.

These rating actions follow the August 7, 2006 announcement that
Orthofix announced that it signed a definitive agreement to
acquire Blackstone Medical Inc. for a total transaction value of
US$345 million, including fees and expenses.  Moody's
anticipates the transaction will be financed with a proposed
US$330 million term loan and US$15 million cash.  Moody's
expects the company will have no borrowings under its proposed
US$45 million senior secured revolving credit facility.
Blackstone, with its headquarters in Springfield, Massachusetts,
is a privately owned U.S. company that designs, develops and
markets spinal implants and instruments used in spinal surgery.
For the 12 months ended June 30, 2006, Blackstone generated over
US$70 million in revenue.

The downgrade primarily reflects a significant increase in the
company's debt leverage, as measured primarily by its cash flow
coverage of debt and EBIT coverage of interest expense, because
the transaction is predominantly financed with the issuance of
debt.  At the same time, Moody's believes that the company's
credit profile will be negatively affected by Blackstone's
negative operating cash flow.

These ratings were assigned to Orthofix Holdings Inc. (U.S.), a
subsidiary of Orthofix International N.V, in conjunction with
the proposed Blackstone acquisition:

   -- US$45 million Senior Secured Revolver, due 2012:
      rated Ba3; and

   -- US$330 million Senior Secured Term Loan B, due 2013:
      rated Ba3.

Moody's downgraded the Corporate Family Rating of Orthofix
International N.V. to Ba3, from Ba2.

Moody's will also withdraw the following ratings assigned to
Colgate Medical, Ltd., a subsidiary of Orthofix International,
Inc., as all debt has been paid:

   -- Colgate Medical, Ltd. Ba2 US$110 million five-year
      term loan; and

   -- Colgate Medical, Ltd. Ba2 US$15 million five-year
      revolver.

Founded in Verona, Italy, but registered in Curacao, in the
Dutch Antilles, Orthofix operates primary manufacturing
facilities in the United States, Mexico, and Italy, as well as
sales and marketing subsidiaries in France, Germany,
Switzerland, the United Kingdom, Belgium, and elsewhere. At the
end of 2004, Orthofix strengthened its U.S. presence as well as
its position in the American market with the acquisition of
California-based BREG Inc.


ORTHOFIX HOLDINGS: S&P Rates US$45 Mil. Credit Facility at BB-
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its secured loan and
recovery ratings to Orthofix Holdings Inc.'s proposed US$45
million revolving credit facility maturing in 2012 and US$330
million term loan B maturing in 2013.  The loan was rated 'BB-'
(at the same level as the 'BB-' corporate credit rating on
parent company Orthofix International N.V.) with a recovery
rating of '2', indicating the expectation for substantial (80%-
100%) recovery of principal in the event of a payment default.

The company intends to use the debt proceeds from the term loan
and approximately US$15 million of on-hand cash to purchase
Blackstone Medical Inc. for US$333 million and fund related fees
and expenses.  The acquisition should improve Orthofix's product
offerings in the high-growth spine market.

The 'BB-' corporate credit rating on Orthofix International N.V.
was affirmed and removed from CreditWatch, where its was placed
with negative implications Aug. 7, 2006, due to concerns about
the company's post-acquisition debt leverage.  The rating
outlook is stable.

"The 'BB-' rating is based on Orthofix's operation in highly
competitive markets, potential integration difficulties,
significant debt leverage, and the recent shortfall of operating
cash flow in 2006," said Standard & Poor's credit analyst Jesse
Juliano.  "These factors are partially offset by the company's
diverse revenue stream, solid niche positions, and history of
aggressively reducing debt leverage."

Huntersville, N.C.-based Orthofix is a leading provider of
minimally invasive medical devices predominantly serving the
spine (44% of pro forma revenue), reconstruction (31% of pro
forma revenue), and trauma markets (16% of pro forma revenue).
The company has leading positions and patent protection in the
bone growth stimulation market -- Orthofix's largest product
segment. The company also has specialty fixation, vascular
therapy, bracing, biologics, cold therapy, and pain management
products.  Orthofix operates primary manufacturing facilities in
the United States, Mexico, and Italy, as well as sales and
marketing subsidiaries in France, Germany, Switzerland, the
United Kingdom, Belgium, and elsewhere. At the end of 2004,
Orthofix strengthened its U.S. presence as well as its position
in the American market with the acquisition of California-based
BREG Inc.


SATELITES MEXICANOS: Wants Court Approval on Compensation System
----------------------------------------------------------------
Satelites Mexicanos, S.A. de C.V., asks the Honorable Robert D.
Drain of the U.S. Bankruptcy Court for the Southern District of
New York, to establish uniform procedures for the payment and
reimbursement of various court-approved professionals' fees and
expenses on a monthly basis.

The Debtor's request is pursuant to Sections 105(a) and 331 of
the Bankruptcy Code and Rule 2014 of the Federal Rules of
Bankruptcy Procedure.

In conformity with the standing General Order of the Bankruptcy
Court for the Southern District of New York establishing
procedures for monthly compensation and reimbursement of
expenses of professionals, the Debtor proposes that:

    (a) Each Professional seeking compensation will serve a
        monthly statement, on or before the 20th day of each
        month following the month for which payment is sought,
        on:

        -- the Debtor and its counsel, Milbank, Tweed, Hadley &
           McCloy LLP;

        -- Wilmer Cutler Pickering Hale and Dorr LLP, counsel
           for the Ad Hoc Senior Secured Noteholders' Committee;

        -- Akin Gump Strauss Hauer & Feld LLP, counsel for the
           Ad Hoc Existing Bondholders' Committee;

        -- Weil, Gotshal & Manges LLP, counsel for the Loral
           entities; and

        -- the Office of the United States Trustee.

    (b) The Monthly Statement does not need to be filed with the
        Court and a copy does not have to be delivered to the
        presiding bankruptcy judge's chambers.

    (c) Monthly Statements must contain a list of the
        individuals who provided services during the statement
        period, their billing rates, the aggregate hours spent,
        a reasonably detailed breakdown of the disbursements
        incurred, and contemporaneously maintained time entries.

    (d) The parties receiving Monthly Statements -- the Notice
        Parties -- will have 15 days to review a statement.  If
        a Party objects to the payment or reimbursement, it
        must, by no later than 35 days after the end of the
        month for which compensation is sought, serve a written
        notice of objection explaining the nature of the
        objection, upon:

        -- the Professional whose statement is objected to; and
        -- the Notice Parties.

    (e) At the expiration of the 35-day period, and in the
        absence of objections, the Debtor will promptly pay 80%
        of the fees and 100% of the expenses in each Monthly
        Statement.

    (f) If the Debtor receives an objection to a fee statement,
        it will withhold payment on that objected portion of the
        fee statement and promptly pay the remainder of the fees
        and disbursements.

    (g) If the parties to an objection are able to resolve their
        dispute, then the Debtor will promptly pay that portion
        of the fee statement, which is no longer subject to an
        objection.

    (h) All unresolved objections will be preserved and
        presented to the Court at the next interim or final fee
        application hearing.

    (i) An objection will not prejudice the objecting party's
        right to object to any fee application made to the Court
        in accordance with the Bankruptcy Code on any ground.

    (j) Every 90 days, but no less frequently than every 120
        days, each of the Professionals will serve and file an
        application for interim or final Court approval and
        allowance of the fees and reimbursement of expenses
        requested.  In the event a plan of reorganization
        becomes effective before the expiration of the 90-day
        period, the period may be shortened on notice by the
        Debtor to the Professionals.

    (k) Any Professional who fails to file an application
        seeking approval of fees and expenses previously paid
        when due:

        * will be ineligible to receive further monthly payments
          of fees until further Court order; and

        * may be required to disgorge any fees paid since the
          retention or the last fee application, whichever is
          later.

    (l) The pendency of an application or a Court order that
        payment of fees or reimbursement of expenses was
        improper as to a particular statement will not
        disqualify a Professional from the future payment of
        fees or reimbursement of expenses.

    (m) Neither the payment of, nor the failure to pay, monthly
        compensation and reimbursement will have any effect on
        the Court's interim or final allowance of compensation
        and reimbursement of any Professional.

    (n) The attorneys for any statutory committee appointed in
        the Debtor's case may collect and submit statements of
        expenses, with supporting vouchers, from members of the
        committee that the attorney represents.  However, the
        reimbursement requests must comply with the Court's
        Administrative Orders dated June 24, 1991, and
        April 21, 1995.

The Debtor further proposes that:

    -- Professionals seek, in their first interim fee request,
       payment of fees for work performed and reimbursement
       for expenses incurred during the period beginning on the
       date of the Professional's retention and ending on
       Sept. 20, 2006; and

    -- the first 90-day fee application period conclude on
       Nov. 20, 2006, provided that if a Plan becomes effective
       prior to that date, each professional retained in the
       case will have the time to file a final application for
       compensation and reimbursement of expenses.

The Debtor points out that the proposed procedures will enable
it to closely monitor the costs of administration, forecast
level cash flows, and implement efficient cash management
procedures.  Moreover, the procedures will allow the Court and
key parties-in-interest to ensure the reasonableness and
necessity of the compensation and reimbursement sought.

               About Satelites Mexicanos

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

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

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

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


VALASSIS COMMS: Files Action to Rescind Merger Pact with ADVO
-------------------------------------------------------------
Valassis Communications, Inc., sued ADVO, Inc., in the Delaware
Chancery Court to rescind its US$1.3 billion merger agreement
with ADVO based on fraud and material adverse changes, alleging
that ADVO management materially misrepresented the financial
health of the company and failed to reveal internal control
deficiencies.

According to the complaint, ADVO intentionally provided Valassis
with "materially false financial information" and "withheld
material information" at a time when the operating income was
materially off forecast.  The complaint also alleges that ADVO
executives knew of, but did not disclose, significant internal
control deficiencies associated with ADVO's enterprise- wide
order-to-cash system.

"We believe that taking this action is in the best interest of
our shareholders," said Alan F. Schultz, Valassis Chairman,
President and CEO.  "ADVO left us with no choice.  The pertinent
information we received was erroneous, projections were grossly
inaccurate and we believe we were the victims of fraud."

              ADVO Responds to Valassis' Claim

"ADVO learned today that Valassis has filed a lawsuit seeking to
rescind its agreement to acquire our company for US$37 per
share. ADVO rejects Valassis' claim that it has any basis to
back out of the deal.

While ADVO has not yet had time to fully review the lawsuit
filed by Valassis, ADVO believes it is baseless and without
merit.  ADVO can only surmise that Valassis' action is merely a
smokescreen to hide the fact that Valassis is suffering from an
extreme case of buyer's remorse.

ADVO remains committed to the transactions contemplated by the
binding merger agreement, and will take action to enforce that
agreement and vigorously defend itself against Valassis'
claims."

                       About ADVO Inc.

Headquartered in Windsor, Connecticut, ADVO, Inc., a direct mail
media company, engages in soliciting and processing printed
advertising from retailers, manufacturers, and service companies
in the United States and Canada.  It offers direct mail
marketing products and services, such as shared mail, which
provides the addresses of the households receiving the mail
packages; and sorts, processes, and transports the advertising
material for ultimate delivery primarily through the United
States Postal Service.

                        About Valassis

Headquartered in Livonia, Michigan, Valassis Communications Inc.
-- http://www.valassis.com/-- offers a wide range of marketing
services to consumer packaged goods manufacturers, retailers,
technology companies and other customers with operations in the
United States, Europe, Mexico and Canada.

                        *    *    *

Standard & Poor's Ratings Services lowered on July 9, 2006, its
corporate credit and senior unsecured ratings on Valassis
Communications Inc. to 'BB' from 'BB+' and left the ratings on
CreditWatch with negative implications.




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


* PANAMA: Waterway Expansion Invites More Job Applications
----------------------------------------------------------
The Panama Canal Authority or ACP told Xinhua News Agency that
the number of job applications they received increased to 5,200
per month since April 24, when President Martin Torrijos
disclosed the Canal widening project.

Xinhua notes that ACP currently received over 62,000
applications.

Most of the applicants are electricians, drivers, welders and
cablemen, Xinhua relates, citing Ana Maria de Chiquilani, the
ACP's human resources director.  Ms. de Chiquilani also said
civil engineers, technicians and computer specialists of various
grades have also handed in their applications.

According to Xinhua, more than 32,200 of the applicants meet the
job specifications.  The canal project, at present, mostly needs
temporary:

       -- workers,
       -- welders,
       -- riggers,
       -- mechanics,
       -- cablemen, and
       -- assemblers.

Ms. de Chiquilani told Xinhua that ACP will select and recruit
staff in line with the organizations' needs and the progress of
the waterway expansion project.

Xinhua underscores that Panama will hold a public referendum in
October on a US$5.25-billion plan to expand the canal to
accommodate new, super-large cargo ships.

About 13,000 ships pass the 77-km canal annually, which is 5% of
the global maritime market, Xinhua reports.

                        *    *    *

Fitch Ratings assigned these ratings on Panama:

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




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


* PARAGUAY: Struggles with Water Shortage
-----------------------------------------
Almost half of the population of Paraguay is faced with lack of
water, irrespective of the abundant water resources in the
country, Prensa Latina states, citing a United Nations
Development Program report.

The UN report indicated that about 2.5 million urban and rural
residents don not have access to water, Prensa Latina relates.

Prensa Latina notes that about 40,000 indigenous people in the
Chaco -- where the Guarani water-bearing zone, one of the
largest reservoirs in the world, is located -- suffer a shortage
in water.

According to Prensa Latina, the situation worsened due to the
last few months of drought.

Investments for drinking water has to be increased, Julio
Fenandez, the United Nations Development Program coordinator in
Paraguay, told Prensa Latina.

                        *    *    *

Moody's assigned these ratings on Paraguay:

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

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

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




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


ADELPHIA COMMS: Hearing on Plan-Related Motions on Sept. 11 & 12
----------------------------------------------------------------
Nine banks ask the U.S. Bankruptcy Court for the Southern
District of New York to schedule a hearing on the Plan-Related
motions for Sept. 12, 2006, and a pre-trial conference with
respect to each of the Plan-Related Motions:

    * Wachovia Bank National Association, in its capacity as the
      UCA Administrative Agent;

    * Bank of America, N.A., in its capacity as the Century
      Cable Administrative Agent;

    * Bank of Montreal, in its capacity as the Olympus
      Administrative Agent;

    * PNC Bank, National Association;

    * Societe Generale, S.A.;

    * Merrill Lynch Capital Corp.;

    * Barclays Bank PLC;

    * Credit Suisse, Cayman Branch; and

    * CIBC, Inc.

The Plan-Related Motions include the Debtors and the Official
Committee of Unsecured Creditors' Disclosure Statement Approval
Motion, the ACC Senior Noteholders' Unseal Motion, the ACC
Senior Noteholders' Exclusivity Motion, and the Banks'
Exclusivity Motion.

The Ad Hoc Committee of Non-Agent Secured Lenders concurs with
the Administrative Agents' request for a Scheduling Order, and
believes that the scheduling of all Plan-Related Motions on a
single hearing date is appropriate and necessary to provide the
divergent constituencies with a level playing field, and to
ensure judicial economy.

The Court authorized the Banks to file their Scheduling Motion
under seal.  The Motion contains several quotes from the
transcript of a sealed status conference conducted by the Court
on July 6, 2006, to discuss the Monitor's process and the filing
of the Monitor's Report.

Calyon New York Branch and Toronto Dominion (Texas), LLC, also
ask Judge Gerber to continue the September 6 Hearing to consider
approval of the Second Disclosure Statement Supplement, and the
motion to establish noticing procedures and objection deadlines,
to a date no earlier than September 12, 2006.

Andrew Brozman, Esq., at Clifford Chance US, LLP, in New York,
relates that Calyon and Toronto Dominion are direct creditors of
the structurally senior operating companies -- the Obligor
Debtors.

Mr. Brozman notes that the Debtors and the Official Committee of
Unsecured Creditors have admitted that there are sufficient
proceeds of the Time Warner/Comcast transaction to pay all
allowed claims against the Obligor Debtors in full, leaving a
substantial sum over for the benefit of the structurally
subordinated debtors.

However, Mr. Brozman says, the Creditors' Committee "has
thoroughly disregarded" the interests of Calyon and Toronto
Dominion in its rush to impose its agenda.

The haste with which the Creditors' Committee seeks to press its
plan is not beneficial, Mr. Brozman asserts.

The only basis proffered by the Creditors' Committee, Mr.
Brozman notes, is the cost of the continuing right of the
lenders to receive interest payments and the cost of continued
Chapter 11 administration.  But, Mr. Brozman points out, it's no
secret that the Chapter 11 costs have been aggregating and the
interest on the bank debt has been earned.

"Whether the creditors of the Obligor Debtors in the exercise of
self-determination choose to propound their own plans or to
convert the cases of those debtors to chapter 7, one thing is
certain -- the result will be faster, less expensive and
infinitely better received.  To permit any of these creditors to
choose what is best for their estates, the Disclosure Hearing
must be re-set to accommodate the [termination motions] and
other prospective motions, including those to covert the cases
or to make them subject of a proper court order confirming the
already forsaken exclusive rights," Mr. Brozman says.

Judge Gerber sets the hearing on these motions for September 11
and 12, 2006 at 9:45 a.m. (prevailing New York time):

    (1) Debtors and Creditors' Committee's Joint Motion for an
        Order:

           (I) Approving Proposed Second Supplement to
               Disclosure Statement;

          (II) Fixing a Record Date;

         (III) Approving Forms of Ballots;

          (IV) Establishing Voting Deadlines;

           (V) Establishing Objection Procedures in Respect of
               Confirmation of Fifth Amended Joint Plan of
               Reorganization of Adelphia Communications
               Corporation and Certain of its Affiliated Debtors
               Under Chapter 11 of the Bankruptcy Code; and

          (VI) Granting Related Relief;

    (2) ACC Senior Noteholders' Motion to Unseal Record on Plan
        Issues and Adjudicate Intercompany Claims;

    (3) ACC Senior Noteholders' Motion to Terminate Exclusivity
        Pursuant to Section 1121(d) of the Bankruptcy Code; and

    (4) Banks' Joint Motion for Order Terminating Exclusivity
        or, Alternatively, Converting Certain Cases to Chapter 7
        and Granting Related Relief.

Objections, if any, to the Disclosure Statement Motion must be
filed no later than 12:00 noon (prevailing New York time) on
August 30, 2006.

Objections, if any, to the Banks' Motion must be filed no later
than 5:00 p.m. (prevailing New York time) on September 8, 2006.

              About Adelphia Communications

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

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly 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: Asks Court to Okay Scientific-Atlanta Settlement
----------------------------------------------------------------
Adelphia Communications Corp. and its debtor-affiliates ask the
U.S. Bankruptcy Court for the Southern District of New York to
approve their settlement with Scientific-Atlanta, Inc.

Scientific-Atlanta had done and continued to do substantial
amounts of business with the Debtors, and provided equipment and
services for use in the Debtors' operations, including digital
converter boxes used by the Debtors' cable subscribers to access
programming.

Scientific-Atlanta has asserted claims against certain of the
Debtors in their bankruptcy cases for goods and services
provided prepetition.  Specifically, Scientific-Atlanta filed
four proofs of claim:

    -- Claim 5511 against ACOM for US$88,127,774;

    -- Claim 5512 against ACOM for US$604,437;

    -- Claim 5513 against Adelphia Company of Western
       Connecticut for US$588,366; and

    -- Claim 5514 against Tele-Media Company of Hopewell-Prince
       George for US$358,813.

The Debtors have asserted various potential objections to
allowance of the Scientific-Atlanta Claims including:

    (1) objection to the allowance of certain of the Scientific-
        Atlanta Claims against Debtors other than ACOM;

    (2) objection to the amounts claimed by Scientific-Atlanta
        to the extent those amounts are not supported by the
        Debtors' books and records; and

    (3) objection to the Scientific-Atlanta Claims to the extent
        that Scientific-Atlanta purports to have a secured claim
        for some or all of the amounts claimed.

In addition, the Debtors have asserted that they have potential
affirmative claims against Scientific-Atlanta arising under the
Bankruptcy Code and applicable state and common law.

Specifically, the Debtors' Affirmative Claims include alleged
claims for:

    (1) aiding and abetting breaches of fiduciary duty by
        certain members of ACOM's former management in
        connection with certain transactions between ACOM and
        Scientific-Atlanta during 2000 and 2001 pursuant to
        which ACOM paid purported price increases to Scientific-
        Atlanta, and Scientific-Atlanta paid an equivalent
        amount to ACOM for purported "spot telecasting" and
        other marketing support services;

    (2) avoidance and recovery of actually or constructively
        fraudulent transfers made by ACOM on account of the
        purported price increases pursuant to Sections 544, 548
        and 550 of the Bankruptcy Code, and applicable state
        law;

    (3) avoidance and recovery of preferential transfers
        pursuant to Sections 547 and 550 of the Bankruptcy Code;

    (4) avoidance of purported liens asserted by Scientific-
        Atlanta against property of the Debtors' estates
        pursuant to Sections 544 and 550 of the Bankruptcy Code;

    (5) disallowance of the Scientific-Atlanta Claims pursuant
        to Section 502(D) of the Bankruptcy Code; and

    (6) equitable subordination of the Scientific-Atlanta Claims
        pursuant to Sections 105 and 510(c) of the Bankruptcy
        Code.

Following numerous discussions and negotiations with Scientific-
Atlanta over the course of several months in an effort to
resolve the Scientific-Atlanta Claims and the Debtors'
Affirmative Claims without litigation, the Debtors and
Scientific-Atlanta have agreed to a resolution of their claims.

Notwithstanding their settlement with Scientific-Atlanta, the
Debtors have commenced litigation against other unrelated
parties on claims that are factually and legally similar to the
claims resolved by the Settlement Agreement.

The Settlement Agreement involves two essential components:

    (1) the exchange of a mutual release as between the Debtors
        and S-A with respect to the S-A Claims and the Debtors'
        Affirmative Claims; and

    (2) a monetary recovery by the Debtors' estates.

Since the ACOM Debtors are currently pursuing claims against
other unrelated parties that are legally and factually similar
to the Debtors' Affirmative Claims against Scientific-Atlanta,
the specific terms of the Settlement are not publicly disclosed.

The ACOM Debtors ask the Court for permission to file the
Settlement Agreement under seal.  According to the ACOM Debtors,
disclosure of the terms of Settlement may be disadvantageous and
harmful to their position in the Pending Litigation.

The ACOM Debtors say they have discussed the Settlement
Agreement with counsel for the Official Committee of Unsecured
Creditors, and will provide counsel for the official committees
with a copy of the Settlement Agreement once a sealing order has
been obtained.

              About Adelphia Communications

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

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly 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)


ORIENTAL FIN: Declares US$0.14 Per Share Quarterly Cash Dividend
----------------------------------------------------------------
Oriental Financial Group Inc. declared a regular quarterly cash
dividend of US$0.14 per common share for the third quarter
ending September 30, 2006, payable on October 16, 2006, to
holders of record on September 29, 2006, with an ex-dividend
date of September 27, 2006.

Oriental Financial Group Inc. (NYSE: OFG) --
http://www.OrientalOnline.com/-- is a diversified financial
holding company operating under U.S. and Puerto Rico banking
laws and regulations.  Oriental provides comprehensive financial
services to its clients throughout Puerto Rico and offers third
party pension plan administration through its wholly owned
subsidiary, Caribbean Pension Consultants, Inc.  The Group's
core businesses include a full range of mortgage, commercial and
consumer banking services offered through 24 financial centers
in Puerto Rico, as well as financial planning, trust, insurance,
investment brokerage and investment banking services.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 13, 2006,
Standard & Poor's Ratings Services assigned its 'BB+' long-term
counterparty credit rating to Oriental Financial Group.  S&P
also assigned its 'BBB-' counterparty rating to Oriental's
principal operating subsidiary, Oriental Bank & Trust.  S&P said
the outlook for both entities is negative.




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


MIRANT CORP: Justice Dickerson Rules on Bowline Tax Liability
-------------------------------------------------------------
Justice Thomas Dickerson of the Supreme Court of the State of
New York ruled on Aug. 11, 2006, that the taxing authorities in
the town of Haverstraw, New York -- Rockland county, Haverstraw-
Stony Point Central School District, Haverstraw village and West
Haverstraw village -- owe Mirant Bowline, LLC, a Mirant Corp.
debtor-affiliate US$190,500,000 in tax refunds, The Journal News
reports.

The Haverstraw units will pay back Mirant approximately
US$27,500,000, while the school district will pay
US$163,000,000, Akiko Matsuda of the Journal News says.

As previously reported, the Debtors complained that the
Haverstraw tax units over-assessed the values of Mirant
Bowline's real property taxes for 1995 to 2003.  Certain taxing
authorities in Stony Point, New York, also made similar
erroneous assessments for Mirant Lovett, LLC, for the tax years
2000 to 2003, according to Mirant.

Ms. Matsuda writes that Justice Dickerson, in his ruling,
reduced:

    * the 2001 Bowline assessment from US$959,000,000 to
      US$280,000,000; and

    * the 1995 Bowline assessment from US$669,000,000 to
      US$481,000,000.

In June 2006, the New York Taxing Authorities and Mirant entered
into a proposed settlement agreement to resolve their dispute.
All of the taxing authorities, other than the town of Stony
Point, approved the settlement.

According to Judge Lynn, Justice Dickerson will be issuing a
separate decision with respect to Stony Point's assessments of
Mirant Lovett's taxes by October 21, 2006.

                        About Mirant

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

                        *    *    *

As reported in the Troubled Company Reporter on July 17, 2006,
Moody's Investors Service downgraded the ratings of Mirant
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: US$3MM Claim Scrapped as Court Okays Mitsui Settlement
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
approved a settlement agreement between Mitsui & Co. (U.S.A.),
Inc., and Mirant Corp. and its affiliated companies, including
Mirant Americas, Inc., Mirant Bowline, L.L.C., and Mirant
Wyandotte, L.L.C.

The Settlement Agreement resolves the parties' dispute over
alleged breach of contract by the Mirant Debtors under two
prepetition supply agreements -- the Bowline Agreement and the
Wyandotte Agreement.  In addition, pursuant to the Agreements,
Mitsui provided the Mirant Debtors with certain letters of
credit.

Michelle C. Campbell, Esq., at White & Case LLP, in Miami,
Florida, relates that the dispute arose when the Mirant Debtors:

    * canceled their projects under the Bowline Agreement and
      the Wyandotte Agreement; and

    * elected not to take delivery of Mitsui's equipment,
      material and services provided under the Agreements.

The undelivered equipment, material and services total to
US$1,900,000.

As a result, Mitsui filed Claim No. 0000003094 for US$3,000,000
against the Mirant Debtors.

Recently, the parties began discussing:

    -- Mitsui's potential supply of goods and services to the
       Reorganized Debtors in the event they recommence
       construction at the Bowline Facility; and

    -- the possible need for Mitsui's services in support of the
       potential sale by the Reorganized Debtors to a third
       party of the equipment provided by Mitsui under the
       Bowline Agreement and Wyandotte Agreement.

Because of the parties' intention to re-establish their
professional relationship, Mitsui and the Reorganized Debtors
agree to resolve all issues relating to the Mitsui Claim and the
Undelivered Scope through the Settlement Agreement.

The principal terms of the Settlement Agreement are:

    (a) New Mirant will release all claims under any of the
        Letters of Credit.  New Mirant will also return the
        Letters of Credit, in the full undrawn amounts, to the
        entity issuing the Letters of Credit.  In the event that
        the Letters of Credit are lost or missing, or New Mirant
        does not return the Letters of Credit within two days of
        the effective date of the Settlement Agreement, the
        Reorganized Debtors must provide a certification in the
        Settlement Agreement;

    (b) Mitsui will withdraw the Mitsui Claim once the Letters
        of Credit are returned or the Certification has been
        provided;

    (c) New Mirant will have no further payment obligations
        under either the Bowline Agreement or Wyandotte
        Agreement;

    (d) Mitsui will have no further obligation to deliver
        materials, supplies or services, or perform under a
        warranty or any other obligations, under either of the
        Bowline Agreement or the Wyandotte Agreement;

    (e) New Mirant will grant Mitsui and Ishikawajima-Harima
        Heavy Industries Co., Ltd., a general release, while
        Mitsui will grant Mirant a general release.  IHI is
        Mitsui's subcontractor in connection with the Bowline
        Agreement and Wyandotte Agreement.  While not a party to
        the Settlement Agreement, IHI did agree and consent to
        the Settlement Agreement;

    (f) Mirant will provide Mitsui prior written notice of the
        recommencement of any of its construction at the Bowline
        Facility or the sale of any equipment previously
        Supplied by Mitsui to Mirant under the Bowline Agreement
        or Wyandotte Agreement; and

    (g} The parties will negotiate in good faith to reach a new
        commercial agreement describing the work or services to
        be provided by Mitsui to Mirant.

A full-text copy of the Mitsui Settlement Agreement is available
for free at http://researcharchives.com/t/s?d79

                        About Mirant

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

                        *    *    *

As reported in the Troubled Company Reporter on July 17, 2006,
Moody's Investors Service downgraded the ratings of Mirant
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.




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


CITGO PETROLEUM: Muscatine Clients to Shift to Conoco
-----------------------------------------------------
Citgo Petroleum Corp.'s clients in Muscatine, Iowa, will have to
shift to a new brand like Conoco, as the former is pulling out
of the Midwest region, the Muscatine Journal reports.

Muscatine underscores that Citgo disclosed that it will pull out
of the Midwest in a realignment effort to increase presence on
the East and West Coast markets.

According to the report, Citgo's decision forces 40 Iowa gas
stations to change fuel suppliers.

Christine Zimmerman, the manager of Muscatine Citgo Fast Break,
told the Muscatine Journal that the station has changed its name
to Muscatine Conoco Fast Break and will now use Conoco brand
fuel.

Fast Break is the sole station in Muscatine that sells Citgo
fuel.  It is owned by Burlington-based Reif Oil.

The Muscatine Journal relates that the change has no impact on
store management.  However, Ms. Zimmerman is worried about
clients using Citgo charge cards.

Ms. Zimmerman told the Muscatine Journal, "Right now, my biggest
concern is trying to get the word out to the public."

On Sept. 6, clients will no longer be able to use their Citgo
cards, the Muscatine Journal says, citing Ms. Zimmerman.
However, customers will be able to use Phillips 66 cards once
the change occurs, as Phillips 66, Conoco and 76 are owned by
ConocoPhillips, which allows use of any of the three cards.

Citgo's plan to depart from the Midwest wasn't a big secret, the
Muscatine Journal notes, citing Clifford Reif, the general
manager of Reif Oil Company.

Mr. Reif told the Muscatine Journal, "Everyone in the industry
knew it was coming.  We've known it for years."

Mr. Reif said Citgo's withdrawal has had no significant impact
on the business, the Muscatine Journal states.

Headquartered in Houston, Texas, CITGO Petroleum Corporation
-- http://www.citgo.com/-- is owned by PDV America, an
indirect, wholly owned subsidiary of Petroleos de Venezuela
S.A., the state-owned oil company of Venezuela.

PDVSA is Venezuela's state oil company in charge of the
development of the petroleum, petrochemical and coal industry,
as well as planning, coordinating, supervising and controlling
the operational activities of its divisions, both in Venezuela
and abroad.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 16, 2006,
Standard and Poor's Ratings Services assigned a 'BB' rating on
CITGO Petroleum Corp.


PETROLEOS DE VENEZUELA: 12 Companies Want Stake in DeltaCaribe
--------------------------------------------------------------
Twelve foreign companies apply for licenses to prospect for non-
associated gas in DeltaCaribe Project, Efe reported, citing
Petroleos de Venezuela.

According to El Universal, the foreign corporations purchased
from the Ministry of Energy and Petroleum a kit containing
technical data on the four offshore blocs on tender for
US$350,000.

The project needs an investment of US$16 billion until 2012, El
Universal says.  DeltaCaribe is estimated to produce daily 11.5
billon cubic feet of gas.

Petroleos de Venezuela will hold a 75% stake in Blanquilla A
bloc and a sharing of 35 percent covering other two blocs in
Blanquilla and bloc Punta Pescador, the Caracas daily says.

Among those who have shown interests are:

          -- Dutch Shell;
          -- Brazilian Petroleo Brasileiro SA;
          -- Teikoku and Mitsubishi, of Japan;
          -- French Total;
          -- Italian Eni;
          -- Indian ONGC;
          -- Spanish Repsol YPF;
          -- Norwegian Statoil; and
          -- Vinccler Oil of Canada.

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: Reports Strong Jan-July Fin. Results
------------------------------------------------------------
For the first 7 months of 2006, Petroleos de Venezuela S.A.'s
financial results for the national sector show a net profit of
US$6.2 billion, according to preliminary figures.  This sum is
much higher than the net profit obtained for the whole year
ending 31 December 2005. It should be pointed out that the
financial results for 2005 are currently undergoing the final
revision stages by the external auditors, and will presently be
submitted to the Shareholders Assembly for approval, before
their publication.

                          Cash Flow

During the first seven months of 2006 cash flow was positive by
US$1.2 billion, the result of having obtained US$32.2 billion in
cash income and made outlays for US$31 billion.  From this last
sum, it should be pointed out that US$19.1 billion of the
payments went to the nation, which includes US$9.6 billion for
royalty; US$3.8 billion for ISLR (Taxes); US$3.6 billion to the
FONDEN/FONDESPA; and US$2.1 billion for social progress.  A
dividend payment of US$1.3 billion has been foreseen, once the
corresponding Shareholders Assembly takes place and approves the
results for 2005.  It is important to underline that the
company's financial position has enabled it to meet all of its
obligations to the Treasury, as well as to its suppliers and
contractors.  No difficulties that could prevent PDVSA from
continuing to honor its financial obligations during the rest of
2006.

The New PDVSA has been restructuring the profile of its external
debt, buying back debt issued under terms that were burdensome
and inconvenient for the Nation, substituting it progressively
by debt under improved terms, with the aim of levering the 2006-
2012 Sowing the Oil Plan.  It is important to highlight that the
company maintains an ample indebtedness capacity, since July 31,
the debt to equity ratio was 6%, while the ratio at December 31,
2001, was 23.9%.  The average for the world oil industry runs to
about 30%.

The 2006-2012 Sowing the Oil Plan incorporates social
development, which is a commitment for PDVSA that will be
achieved without compromising the company's financial and
operational health.  This alignment enables the efficient,
sovereign and revolutionary use of resources for the development
of its main shareholder -- the Venezuelan people.

                     Coordination Meetings

There is total alignment between the New PDVSA's administration
and operations with its supervisory organization, the Ministry
of Energy and Petroleum, as well as a close collaboration with
the Finance Ministry, the National Treasury Office, the National
Budget Office, SENIAT, and the Central Bank of Venezuela, with
the aim of planning and harmonizing the Executive's policies and
guidelines in fiscal and financial matters.

In order to achieve this aim, PDVSA holds weekly meetings with
these official entities for the purpose of planning and
coordinating the contributions and payments to be made to the
Nation in terms of fiscal obligations and other commitments.
This type of coordination did not exist in the old PDVSA, since
its figures were cloaked in confidentiality and hermetically
handled.

Among the issues discussed at these coordination meetings are,
among others, those pertaining to Income Tax declarations and
payments, royalties, and other contributions to the Nation.

Petroleos de Venezuela has been complying with the policies set
by the President of the Bolivarian Republic of Venezuela, Hugo
Chavez Frias, and the terms of Article 302 of the Constitution
currently in force, as well as those of Article 5 of the Organic
Law on Hydrocarbons, as regards PDVSA's new role in the just
generation and distribution of the oil wealth, with the aim of
contributing to the country's integral development.

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: Inks 28 Accords with China Valued at US$11 Billion
---------------------------------------------------------------
Venezuelan President Hugo Chavez initialled 28 accords with
China valued at US$11 billion, Bloomberg News reports.  The
signing included oil and transportation pacts.

The agreements provided for a:

   -- US$2 billion Chinese investment in Venezuela's
      hydrocarbons sector, and

   -- US$9 billion to help Venezuela build a railroad.

The Venezuelan president said during his visit that his country
aims to become China's top oil supplier in the years to come.
The South American nation currently delivers about 100,000
barrels of oil per day to China.

"China is one of the world's largest oil consumers, while
Venezuela is one of the world's largest producers," President
Chavez was quoted by Bloomberg as saying.  "Because of that, our
countries complement each other."

Venezuela has not been silent about its goal to lessen
dependence on the United States.  The current adminitration,
according to some reports, sees Asia as an alternative market
for the US.

Meanwhile, James Brock, a Beijing-based independent energy
adviser for major foreign oil companies, said that China wants
to tell the US that it has influence in South America and that
it supports Venezuela's efforts to move away from the US,
Bloomberg relates.

Despite the Venezuelan president's projection of increased oil
shipment, the nation has to overcome factors like distance and
the type of crude it exports.  Venezuela exports heavy crude and
China has no capacity within the next 5 to 10 years to process
or refine the crude.
Also, the distance to China will lessen Venezuela's oil
revenues.

                        *    *    *

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


* VENEZUELA: Statoil Restarts Prospecting After One Year
--------------------------------------------------------
Statoil ASA said in a statement that it has resumed oil
prospecting in Venezuela after a year of hiatus for safety
reasons.

The Norwegian firm operates bloc 4 in Delta's platform,
including drilling of well Cocuina-2X, according to El
Universal.

"We will use our works in these waters as a means to share our
experience in offshore operations and promote transfer of
expertise," Efe quoted corporate press head Thore E. Kristiansen
as saying in a press statement.  "We are optimistic and expect
that some findings will be the basis for development of a new
deposit."

                      About Statoil

Statoil ASA has operations in over 30 countries around the
world.  Its activities include marketing, distribution,
exploration, development and production of oil and gas.

                        *    *    *

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

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

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            * * * End of Transmission * * *