TCRLA_Public/060904.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, September 4, 2006, Vol. 7, Issue 175

                          Headlines

A R G E N T I N A

CONSULTORA PARA: Trustee Verifies Proofs of Claim Until Nov. 2
CONSTRUCTORA SOLER: Last Day for Claims Verification Is Oct. 12
ESTRUCTURAS CACERES: Claims Verification Deadline Is on Oct. 18
GELIMAN SA: Asks for Court Approval to Restructure Debts
JUPEMAR SA: Deadline for Verification of Claims Is on Oct. 16

LA NUEVA: Seeks for Court Approval to Reorganize Business
TAPICUER SA: Verification of Proofs of Claim Is Until Oct. 2
TRANSPORTADORA DE GAS: Fitch Puts B- Long-Term Issuer Rating

* ARGENTINA: Envt'l Groups Balk at Uruguay's Mills to Finland

B E L I Z E

* BELIZE: Fails to Meet Financial Obligations with Three Firms
* BELIZE: Gov't Pleased with International Monetary Fund Report

B E R M U D A

REFCO: Chap. 7 Trustee Objects to West Loop's US$10.6 Mil. Claim
REFCO INC: Chapter 7 Trustee Says Goodman's Claim Has No Merit

B O L I V I A

COEUR D'ALENE: Expects Mine Construction Proposal in September
PETROLEO BRASILEIRO: Could Restart Negotiations with Bolivia
YPF SA: Pres. Morales Says Gov't Hands Off on Andina Case Probe

B R A Z I L

BANCO ABN: Moody's Ups Foreign Currency Deposit Rating to Ba3
BANCO BRADESCO: Moody's Raises Currency Deposit Rating to Ba3
BANCO CITIBANK: Moody's Ups Currency Deposit Rating to Ba3
BANCO CRUZEIRO: Moody's Raises Currency Deposit Rating to Ba3
BANCO DO BRASIL: Moody's Raises Currency Deposit Rating to Ba3

BANCO DO ESTADO: Moody's Ups Currency Deposit Rating to Ba3
BANCO INDUSTRIAL: Moody's Ups Currency Deposit Rating to Ba3
BANCO INVESTIMENTO: Moody's Ups Currency Deposit Rating to Ba3
BANCO ITAU (CI): Moody's Ups Currency Deposit Rating to Ba3
BANCO ITAU: Moody's Ups Foreign Currency Deposit Rating to Ba3

BANCO NACIONAL: Loans BRL900MM to Modernize Usiminas & Cosipa
BANCO NOSSA: Moody's Ups Foreign Currency Deposit Rating to Ba3
CAIXA ECONOMICA: Moody's Ups Foreign Curr. Deposit Rating to Ba3
COMPANHIA DE BEBIDAS: Moody's Raises Foreign Curr. Rating to Ba1
COMPANHIA SIDERURGICA: Esmark Comments on Merger Talks & Issues

HSBC BANK: Moody's Ups Foreign Currency Deposit Rating to Ba3
NOVELIS INC: Furthers Restructuring to Improve European Business
PETROLEO BRASILEIRO: Will Reduce Aviation Fuel Price by 4.9%
SANEAMENTO BASICO: Implements 6.71% Water Rates Increase
UNIAO DE BANCOS: Moody's Raises Currency Deposit Rating to Ba3

USIMINAS: Gets BRL900-Mil. Loan for Technical Modernization

* CITY OF CURITIBA: Moody's Upgrades Foreign Curr. Rating to Ba1
* BRAZIL: Improved External Credit Cues Moody's to Raise Ratings
* BRAZIL: Threatens Closure of Google Operations in Country

C A Y M A N   I S L A N D S

BALL BRAZIL: Sets Final Shareholders Meeting on Sept. 28
CORALIE LIMITED: Schedules Last Shareholders Meeting on Sept. 28
GLOBAL (MASTER): Schedules Last Shareholders Meeting on Sep. 28
GLOBAL PRECISION: Sets Final Shareholders Meeting on Sept. 28
NEWBRIDGE LIMITED: Holding Last Shareholders Meeting on Sept. 28

RETAIL EQUITY: Final Shareholders Meeting Is Set for Sept. 29
RETAIL HOLDINGS: Last Shareholders Meeting Is Set for Sept. 29
RETAIL INVESTMENTS: Final Shareholders Meeting Is on Sept. 29
SARUM LIMITED: Calls Shareholders for Final Meeting on Sept. 28
SHACKLETON RE: Moody's Assigns Low B Ratings on Notes & Loans

C H I L E

INVERLINK: Head Denies IT Firm's Intellectual Property Breach

C O L O M B I A

COLOMBIA TELECOM: Telefonica Increasing Stake in Firm to 52%
MILLICOM INTERNATIONAL: Wins Ola Auction with US$125 Mil. Bid

C O S T A   R I C A

DENNY'S CORP: Reports Same-Store Sales for the Month of August

* COSTA RICA: Uses Bulldog RoadBOSS Services in Cargo Security

C U B A

* CUBA: Navajo Agricultural to Sell Food Products to Nation

D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: President Seeks to Resolve Energy Crisis

G U A T E M A L A

* GUATEMALA: Farmers Against Mining by Multinational Companies

H O N D U R A S

* HONDURAS: SME's Balk at Multiple Free Trade Talks

J A M A I C A

AIR JAMAICA: Increasing St. Lucia & Barbados Flights on Jan. 11
SUGAR COMPANY: Gov't Launching Purchase Talks with Foreign Firms

M E X I C O

AXTEL SA: Improved Credit Metrics Cues Moody's to Raise Ratings
FORD MOTOR: May Sell Aston Martin Sports Car Unit to Raise Fund
FORD MOTOR: Mulls Doubling Russian Car Sales in 2006
GRUPO POSADAS: S&P Affirms BB- Long-Term Corporate Credit Rating
PORTRAIT CORP: Files Chapter 11 Petition in New York

PORTRAIT CORP: Case Summary & 29 Largest Unsecured Creditors
RADIOSHACK CORP: Lays Off 400 Workers to Reduce Costs
VALASSIS COMMS: S&P Holds Negative Watch on Ratings

N I C A R A G U A

* NICARAGUA: Economist Says Transaction Costs Highest in CenAm
* NICARAGUA: Seeks to Boost Coffee Export

P A R A G U A Y

PARMALAT USA: Enrico Bondi, et al., Want Injunction Imposed
PARMALAT USA: Administrator Sues BofA Corp. et al. for Collusion

P E R U

* PERU: Fitch Upgrades Foreign Currency Issuer Rating to BB+
* PERU: Mexico Interested in Buying Nation's Liquefied NatGas

P U E R T O   R I C O

ADELPHIA COMMS: Ronald Cooper Resigns as President & COO
ADELPHIA COMMS: Boies Schiller Can't Examine Fee Committee
DRESSER INC: Makes US$25 Million Voluntary Debt Prepayment
R&G FINANCIAL: Hires Andres I. Perez as Chief Financial Officer

T R I N I D A D   &   T O B A G O

DIGICEL LTD: Won't Pursue Acquisition of Stake on Colombia Movil
MIRANT: Class 3 Claim Holders to Appeal PEPCO Settlement Order
MIRANT CORP: Repurchases 43M Common Stock at US$28.50 Per Share
ROYAL CARIBBEAN: Offers EUR430 Million to Purchase Pullmantur
ROYAL CARIBBEAN: Moody's Revises Rating Outlook to Stable

U R U G U A Y

* URUGUAY: Activists Threaten to Block Gas Supply from Bolivia
* URUGUAY: Argentine Groups Complain on Pulp Mill to Finland

V E N E Z U E L A

DIRECTV: Offering Prepaid Subscriptions in Venezuela on Sept. 1
PETROLEOS DE VENEZUELA: 12 Companies Want Stake in DeltaCaribe
PETROLEOS DE VENEZUELA: Doubling Oil Supply to US Households
PETROLEOS DE VENEZUELA: Starting Natural Gas Project in 4 Fields

* VENEZUELA: CAN Trade Bloc Says Country Is Still Important
* VENEZUELA: In Talks with Iran to Create US$200-Million Fund

* BOOK REVIEW: OIL & HONOR: The Texaco Pennzoil Wars


                          - - - - -   


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


CONSULTORA PARA: Trustee Verifies Proofs of Claim Until Nov. 2
--------------------------------------------------------------
Court-appointed trustee Ricardo Jorge Randrup verifies
creditors' proofs of claim against bankrupt company Consultora
Para La Empresa de Propiedad Privada Participada S.A. until
Nov. 2, 2006.

Mr. Randrup will present the validated claims in court as
individual reports on Dec. 15, 2006.  A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Consultora Para 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 Consultora Para's
accounting and banking records will follow on March 1, 2007.

Consultora Para's creditors did not approve the settlement plan
that the company presented during the last days of its
insolvency, prompting the court to convert it into a bankruptcy
proceeding.

The trustee can be reached at:

         Ricardo Jorge Randrup
         Avenida Cordoba 1351
         Buenos Aires, Argentina


CONSTRUCTORA SOLER: Last Day for Claims Verification Is Oct. 12
---------------------------------------------------------------
Adriana del Carmen Gallo, the court-appointed trustee for
Constructora Soler S.A.'s bankruptcy proceeding, verifies
creditors' proofs of claim until Oct. 12, 2006.

Ms. del Carmen Gallo will present the validated claims in court
as individual reports on Nov. 23, 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 Constructora Soler 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 Constructora Soler's
accounting and banking records will follow on Feb. 6, 2007.

The trustee can be reached at:

         Adriana del Carmen Gallo
         Pte. Roque Saenz Pena 651
         Buenos Aires, Argentina


ESTRUCTURAS CACERES: Claims Verification Deadline Is on Oct. 18
---------------------------------------------------------------
Silvia Pirraglia, the court-appointed trustee for Estructuras
Caceres S.A.'s bankruptcy proceeding, verifies creditors' proofs
of claim until Oct. 18, 2006.

Under Argentine bankruptcy law, Ms. Pirraglia 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 Estructuras Caceres
and its creditors.

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

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

Court No. 5 decreed Estructuras Caceres' bankruptcy as an
extension of G. Caceres S.A.'s bankruptcy proceeding.

Clerk No. 10 assists the court in the case.

The debtor can be reached at:

         Estructuras Caceres S.A.
         Pola 2431
         Buenos Aires, Argentina

The trustee can be reached at:

         Silvia Pirraglia
         Alvarez Thomas 2820
         Buenos Aires, Argentina


GELIMAN SA: Asks for Court Approval to Restructure Debts
--------------------------------------------------------
Court No. 5 in Buenos Aires is studying the merits of Geliman
S.A.'s petition to restructure its debts after a cessation of
payments on Aug. 23, 2006.

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

Clerk No. 10 assists the court in the case.

The debtor can be reached at:

         Geliman S.A.
         Chile 1155
         Buenos Aires, Argentina


JUPEMAR SA: Deadline for Verification of Claims Is on Oct. 16
-------------------------------------------------------------
Norberto Bonesi, the court-appointed trustee for Jupemar S.A.'s
bankruptcy case, verifies creditors' proofs of claim until
Oct. 16, 2006.

Mr. Bonesi will present the validated claims in court as
individual reports on Nov. 27, 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 Jupemar 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 Jupemar's accounting
and banking records will follow on Feb. 12, 2007.

The trustee can be reached at:

         Norberto Bonesi
         Avenida Juan B. Justo 5096
         Buenos Aires, Argentina


LA NUEVA: Seeks for Court Approval to Reorganize Business
---------------------------------------------------------
Court No. 24 in Buenos Aires is studying the merits of La Nueva
Juramento S.R.L.'s petition to reorganize its business after
defaulting on its obligations.

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

Clerk No. 48 assists the court in the proceeding.

The debtor can be reached at:

         La Nueva Juramento S.R.L.
         25 de Mayo 758
         Buenos Aires, Argentina


TAPICUER SA: Verification of Proofs of Claim Is Until Oct. 2
------------------------------------------------------------
Laura A. Fiscina, the court-appointed trustee for Tapicuer
S.A.'s reorganization proceeding, verifies creditors' proofs of
claim until Oct. 2, 2006.

Ms. Fiscina will present the validated claims in court as
individual reports on Nov. 15, 2006.  A court in Lomas de
Zamora, Buenos Aires will determine if the verified claims are
admissible, taking into account the trustee's opinion and the
objections and challenges raised by Tapicuer 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 Tapicuer's accounting
and banking records will follow on Feb. 1, 2007.

On July 4, 2007, Tapicuer's creditors will vote on a settlement
plan that the company will lay on the table.

The trustee can be reached at:

         Laura A. Fiscina
         Serrano 447, Banfield
         Buenos Aires, Argentina


TRANSPORTADORA DE GAS: Fitch Puts B- Long-Term Issuer Rating
------------------------------------------------------------
Fitch Ratings has assigned a 'B-' long-term foreign and local
currency Issuer Default Rating to Transportadora de Gas del
Norte S.A. aka TGN. Fitch has also assigned an Argentine
national scale rating of 'BBB-(arg)' to TGN.  The ratings apply
to approximately US$454 million of new notes to be issued by TGN
under its recently announced exchange offer. The new notes have
also been assigned a recovery rating of 'RR4'.  The Rating
Outlook for all ratings is Stable.

The assigned ratings are subject to the successful completion of
the exchange offer.  Concurrently, Fitch has withdrawn the
foreign and local currency IDRs and the national scale ratings
of 'D' and 'D(arg)', respectively.  However, the foreign
currency and national scale ratings of TGN's existing debt will
remain unchanged at 'D' and 'D(arg)', respectively, until these
obligations are paid off.

The exchange offer should result in a more manageable debt
leverage, although higher debt service, i.e. amortization of
tranche A will likely produce very tight cash flow debt service
coverage ratio, calculated at approximately 1.0x.  The company's
leverage ratio as measured by total debt-to EBITDA is expected
to decline to 4.6x from 7.8x as of June 30, 2006.  Interest
coverage ratio as measured by EBITDA-to-interest expenses is
expected to improve to 3.0x from 1.2x as of June 30, 2006.  
Expected annual debt service payments of approximately US$60
million should be covered by free cash flow and/or partially
refinanced in the local markets.  Credit metrics are expected to
remain stable going forward.

Under terms of the exchange, TGN will make a cash payment of
approximately US$52 million, exchange its outstanding debt for
two tranches of new debt, tranches A and B, and issue US$87
million of C shares in consideration of the capitalization of
US$68 million of debt. Tranche A has a face value of US$250
million, amortizes over eight years, and carries an interest
rate of 6%.  Tranche B has a face value of US$204 million, a
bullet maturity, and carries an interest rate of 7%.  Both
tranches mature on Dec. 31, 2012.  In addition, the new notes
will pay accrued interest and principal retroactive to
Dec. 31, 2004.

TGN's assigned ratings also reflect the expectation that the
company's core business continues performing at its current
pace.  In addition, the ratings incorporate the company's
capital expenditures needs, the sector's underinvestment, and
exposure to government interference.

TGN is one of the two largest transporters of natural gas in
Argentina, delivering approximately 41% of the country's total
gas consumption and 54% of Argentine total gas exports.  TGN has
an exclusive license to operate the northern Argentina gas
pipeline system for a term of 35 years, which term may be
extended for an additional 10-year period upon the satisfaction
of certain conditions.  The northern Argentine gas pipeline
system connects major gas fields in northern and central-western
Argentina with distributors of gas and large consumers in those
areas and with consumers in the greater Buenos Aires area, the
principal population center of Argentina.  The gas
transportation industry is heavily regulated in Argentina.


* ARGENTINA: Envt'l Groups Balk at Uruguay's Mills to Finland
-------------------------------------------------------------
Argentine environmental groups brought presented their
complaints on the construction of Uruguay's two pulp mills to
Finland, Helsingin Sanomat reports.

Jorge Daniel Taillant and Oscar Bargas -- representatives of the
environmental groups CEDHA and Asemblea Ciudadana Ambiental de
Gualeguaychu -- told reporters what they see as mistakes made by
Metsa Botnia -- one of the builders of the pulp mill on the
river Uruguay, which forms the border between Argentina and
Uruguay.

Mr. Taillant, the head of CEDHA, told Helsingin Sanomat that he
wanted to tell the citizens of Finland that those living on the
banks of the river Uruguay are particularly worried about the
combined size of the Botnia plant as well as on the construction
of another mill by Spain's Ence.
      
"Botnia's activities do not correspond to our view of what
sustainable development is.  The company studied the impact that
the mill would have only in Uruguay, but forgot about Argentina.  
It was a great strategic mistake," Mr. Taillant told the press.

Helsingin Sanomat relates that Mr. Taillant criticized Botnia
for not having a social building permit -- the approval of the
people -- in the area.
      
Mr. Taillant told Helsingin Sanomat, "The factories are opposed
by local people, not just activists."

According to Helsingin Sanomat, Mr. Bargas is bringing a
petition with the signatures of 40,000 residents of
Gualeguaychu, calling for the cancellation of the project.  He
said, "I would like the Finnish government to call Botnia and
say that the company is hurting Finland's reputation."

The report says that Mr. Bargas stated, "In Finland you probably
couldn't build a kiosk if residents in the area were against
it."

Messrs. Taillant and Bargas plan to meet with representatives of
Finland's Ministry of Trade and Industry, Metsa-Botnia, various
organizations, and Paula Lehtomaki -- the Minister of Foreign
Trade and Development, Helsingin Sanomat notes.  

Helsingin Sanomat underscores that Metsa-Botnia invited Messrs.
Taillant and Bargas to visit pulp mills operating in Finland.  
However, the two declined.
      
Mr. Taillant, saying that he did not want to be impolite, told
Helsingin Sanomat, "It would be illogical to visit factories
that are smaller, and which operate under tougher regulations
than the plant that is being built in Fray Bentos."

Annikki Rintala, Metsa-Botnia's environmental manager, told
Helsingin Sanomat, "We respect the people of the factory area,
and we know that they have fears and concerns.  However, we are
not getting our message through in Gualeguaychu.  We would like
to tell the residents in the area that they have nothing to
worry about."

"However, we have grown accustomed to them, and we are ready to
respond and to listen," Ms. Rinatla, speaking of the
allegations, told Helsingin Sanomat.  "The opposition is not
about a lack of information, as they claim, but rather a state
of will."

Standard & Poor's rates on the global scale four companies in
Argentina that have completed their debt restructuring in the
2005-2006 period. The outlooks on those ratings, which are in
the 'CCC' to 'B-' categories, are stable.  In addition, on the
Argentine domestic scale Standard & Poor's rates two companies
as 'D' because they have not yet completed restructuring their
defaulted debt.




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


* BELIZE: Fails to Meet Financial Obligations with Three Firms
--------------------------------------------------------------
The Belize City Council failed to meet its financial obligations
to the Belize Waste Control, S.E.L. and B.M.L., who are
responsible for sanitation, Channel 5 Belize reports.

Laura Esquivel, the City Councilor of the Belize City Council,
told Channel 5 Belize, "Belize Waste Control has a contract with
the City Council to pick up residential and commercial garbage.
That is all that they are responsible for.  The S.E.L. and
B.M.L. are responsible for the sweeping of the streets, cutting
of the grass, the cleaning out of existing drains and that sort
of thing, so they are very different."

According to the report, the firms have stopped city cleanup and
garbage collection.  However, the council said it has finally
reached a compromise with the firms.

Channel 5 Belize relates that Ms. Esquivel confirmed that the
Council has come up with a long-term solution.

Ms. Esquivel told Channel 5 Belize, "The Council so far has had
meetings with all three contractors.  So far we have reached an
amicable way forward with Belize Waste Control and as of last
Friday, they should have been back on the streets picking up
residential and commercial garbage.  This will continue with
that.  Regarding S.E.L. and B.M.L., we recently had meetings
with them on Monday.  And what has been put forward is that we
have presented them with a figure of what the council is
prepared to pay, what we can pay, what we are able to pay and
they have been tasked now with putting forward proposals to the
City Council as to what services they will provide to the
council and to the residents of the city for that amount of
money.  In a way that will be beneficial to the residents of the
city.  So we hope to have the whole issue wrapped up by the end
of this week."

Citing Ms. Esquivel, Channel 5 Belize states, "We would go back
to a resolution and pass a new resolution in our council for the
new stipulations of all of these contracts.  All of these will
be writing so in essence we are looking at probably new
contracts if that is what to come up with."

"We really apologize to residents of the city.  We have been
doing our best to pay the contractors what is in the contract,
but it really was unsustainable.  And unfortunately it had to
come to something like this for these contractors to come to the
table and negotiate and talk to us," Ms. Esquivel told Channel 5
Belize.

                        *    *    *

Moody's Investor Service assigned these ratings to Belize:

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

                        *    *    *

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


* BELIZE: Gov't Pleased with International Monetary Fund Report
---------------------------------------------------------------
Belize is pleased with the positive report made by the
International Monetary Fund aka IMF regarding the nation's
economic rescue mission efforts, Channel 5 Belize reports.

Channel 5 Belize notes that the IMF held a series of meetings
with the Prime Minister Said Musa, the members of the Public
Finance Committee, the opposition and representatives of the
private sector before releasing the preliminary summary of its
findings.

Prime Minister Musa told Channel 5 Belize, "The statement coming
from the fund recognizes and in fact commends the government for
the measures we've taken over the past two years in reversing
the fiscal situation.  Turning around the deficit from close to
9% to now a three point one deficit, which is a remarkable
turnaround, as well as we've been able to convert to even a
fiscal primary surplus.  For many years we haven't had this.  
What it shows is that the fund recognizes that our homegrown
program that involved revenue measures as well as tight
expenditure programs at the great sacrifice to the Belizean
people is paying off.  And now that statement in itself will
help us when we negotiate with the creditors.  Because they
recognize that Belize has and is doing its part now.  Now we are
asking the creditors to do their part."

Prime Minister Musa said that the next meeting with the nation's
"external creditors" would take place in this week or the next,
Channel 5 Belize relates.

                        *    *    *

Moody's Investor Service assigned these ratings to Belize:

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

                        *    *    *

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




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


REFCO: Chap. 7 Trustee Objects to West Loop's US$10.6 Mil. Claim
----------------------------------------------------------------
Albert Togut, the Chapter 7 trustee overseeing the liquidation
of Refco, LLC's estate, asks the United States Bankruptcy Court
for the Southern District of New York to disallow and expunge
Claim No. 269 filed by West Loop Associates, Inc., for
US$10,618,777.

Mr. Togut contends that the Claim arises from a commercial
office lease to which Refco LLC was never a party.  The West
Loop Claim lacks any legal or factual basis for Refco LLC's
estate to be liable to West Loop.

Mr. Togut explains that Refco Group Ltd., LLC and West Loop's
predecessor-in-interest, 550 Jackson Associates Limited
Liability Company, were parties to the lease dated as of
April 24, 2001, for certain office space located at 550 West
Jackson Boulevard in Chicago, Illinois.  RGL rejected the Lease,
effective Aug. 15, 2006.

Refco LLC, Mr. Togut says, is merely a tenant under the RGL
Lease.

Refco Inc., and its debtor-affiliates sought extension of their
deadline to make lease dispositions, West Loop objected and,
among other things, represented to the Court that Refco LLC was
an "additional lessee" on the RGL Lease because (i) second floor
expansion rights were exercised pursuant to a writing executed
by Refco LLC in April 2004; and (ii) Refco LLC entered into
agreements with contractors to improve the space it was
occupying.

However, Mr. Togut tells Judge Drain that the Expansion Letter
was erroneously printed on Refco LLC letterhead.  Moreover, West
Loop expressly acknowledged in a third amendment to the RGL
Lease that RGL -- and not Refco LLC -- previously exercised its
right to take additional space on the second floor.

In support of its claim, West Loop:

    -- contends that Refco LLC "assumed" RGL's obligations under
       the RGL Lease;

    -- alleges that it incurred costs as a result of
       contractors' filing mechanics liens against the Premises
       and that Refco LLC is liable for the mechanics liens
       under the Bankruptcy Code; and

    -- makes an unsubstantiated and generalized allegation that
       Refco LLC has committed some sort of fraud.

Mr. Togut points out that the RGL Lease clearly provides that
RGL affiliates were permitted to occupy the Premises without
incurring any direct liability under the Lease.  Moreover, RGL,
as tenant, is liable for costs incurred by the Landlord as a
result of mechanic liens but that liability does not extend to
RGL's affiliates.

Mr. Togut also notes that West Loop's mechanics lien claims have
been resolved consensually.  The Refco LLC Trustee was able to
broker an agreement with RGL and West Loop wherein RGL paid
almost US$750,000 to the holders of the mechanics liens to
satisfy their claims and have the liens against the Premises
removed.  The Trustee agreed to reimburse RGL's estate for the
payments made.  West Loop received a release from liability from
the contractors on account of those mechanics lien claims, Mr.
Togut says.

West Loop's allegation that Refco LLC committed fraud is a naked
allegation, Mr. Togut tells the Court.  Mr. Togut says he is
unaware of the basis for West Loop's contention as it is a non-
specific allegation without any evidence.

Under Illinois law, as elsewhere, fraud must be pled with
particularity and contain specific factual allegations, Mr.
Togut reminds the Court, citing Board of Education v. A,
C and S, Inc., et al., 131 Ill.2d 428, 137 Ill. Dec. 635, 546
N.E.2d 580 (Ill. Sup. Ct. 1989).

Mr. Togut also asserts that West Loop's general averment of
fraud does not satisfy the pleading requirements of Rule 9(b) of
the Federal Rules of Civil Procedure and, therefore, must be
rejected.

                       About Refco Inc.

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

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

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

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

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


REFCO INC: Chapter 7 Trustee Says Goodman's Claim Has No Merit
--------------------------------------------------------------
Before Refco Inc., and its debtor-affiliates filed for
bankruptcy, Richard Goodman filed a complaint against Refco,
LLC, and Refco Group, Ltd., LLC, in the U.S. District Court for
the Eastern District of Michigan.  The Complaint sought to
recover from the Chapter 7 Debtor US$40,000,100:

   -- US$35,000,000 for punitive damages that Mr. Goodman
      allegedly incurred as a result of his participation in a
      failed "Ponzi" scheme orchestrated by Charles Mady; and

   -- US$5,100,000 for compensatory damages.

Under the Complaint, Mr. Goodman asserted claims against Refco
LLC for:

   * negligence, fraud, conspiracy, and aiding and abetting;

   * fraud, aiding and abetting under the Commodity Exchange
     Act;

   * violations of the Racketeer Influenced and Corrupt
     Organizations Act;

   * liability on certain accounts; and

   * vicarious liability.

Vincent E. Lazar, Esq., at Jenner & Block LLP, in New York,
relates that those claims -- collectively known as Claim No. 160
-- all share the same purported factual predicate: that the
Debtor was complicit in a fraud perpetrated by Mr. Mady, and it
somehow breached a duty of care allegedly owed to Mr. Goodman.

Mr. Lazar asserts that Claim No. 160 is without merit.  He tells
Judge Drain that Mr. Goodman was not a customer of Refco LLC or
Lind-Waldock & Company.  Instead, Mr. Goodman voluntarily
invested millions of dollars with his friend and business
partner, Mr. Mady, who misrepresented himself to Mr. Goodman and
others as a commodity pool operator. In reality, Mr. Mady was
never registered as a commodity pool operator, and instead
commingled the money from Mr. Goodman and other investors in Mr.
Mady's personal accounts at Lind-Waldock, and provided Mr.
Goodman and the other investors with false information regarding
the status of their investments.

After the scheme was exposed, Mr. Lazar continues, the Commodity
Futures Trading Commission brought an action against Mr. Mady,
charging him under the CEA with fraud, misappropriation, failure
to register as a commodity pool operator, and improperly
commingling funds.  Mr. Mady has since been indicted.

Against this backdrop, Albert Togut, the Court-appointed trustee
overseeing Refco, LLC's liquidation, asks Judge Drain disallow
and expunge, in its entirety, Mr. Goodman's Claim No. 160
because the Debtor was not in any way responsible for, or
complicit in, the Ponzi scheme.

Mr. Togut asserts that any alleged claims that Mr. Goodman may
have as a result of his investment losses lies against Mr. Mady,
and not against Refco LLC.

To the extent Mr. Goodman contests the Objection, Mr. Togut asks
the Court to establish a briefing, and, if necessary, a
discovery schedule at a later date.

                       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)




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


COEUR D'ALENE: Expects Mine Construction Proposal in September
--------------------------------------------------------------
Leon Hardy, the vice president of Coeur D'Alene Mines Corp.'s
Argentina operations, told Business News Americas that the
company expects to receive this month a proposal to construct a
processing plant at the Martha mine in Argentina.

BNamericas relates that Mr. Hardy said on the sidelines of the
Argentina Mining 2006 Congress in Mendoza that the plant would
have a processing capacity of up to 150 tons per day and would
require an investment of up to US$8 million.

According to BNamericas, the plant would lessen costs.  It would
also increase the life of the Martha mine, which Coeur D'Alene
expects to stretch from three years left of reserves through
exploration.

Mr. Hardy told BNamericas that the project has environmental
approvals.  

Construction of the plant would take 12 months.  It would start
operating in 2008, BNamericas reports, citing Mr. Hardy.

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

                        *    *    *

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


PETROLEO BRASILEIRO: Could Restart Negotiations with Bolivia
------------------------------------------------------------
The Bolivian unit of Brazilian state-run Petroleos Brasileiro SA
aka Petrobras could restart negotiations with the Bolivian
government after Jorge Alvarado resigned as the head of
Yacimientos Petroliferos y Fiscales Bolivianos aka YPFB, the
nation's state oil firm, Dow Jones Newswires reports.

As reported in the Troubled Company Reporter-Latin America on
Sept. 1, 2006, Mr. Alvarado resigned as the president of YPFB,
saying that he wanted 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.  Juan Carlos Ortiz, YPFB's vice president
of contract administration and supervision, will be the new YPFB
president.

Valor relates that Jose Fernando de Freitas, the president of
Petrobras, is "moderately optimistic" about restarting talks
with Bolivia.

According to Dow Jones, Mr. Alvarado was known for his frequent
verbal attacks against foreign oil companies.

However, Mr. Freitas told Dow Jones he is still worried, as
there is little time left to forge a new agreement with Bolivia,
which nationalized its hydrocarbons sector on May 1.

Dow Jones notes that Mr. Freitas said, "If we are really going
to start a period of negotiations for a deal that would be good
for both parts, we only have a very short time period; the
deadline is Oct. 28."

Under the nationalization decree, President Evo Morales had
demanded that all production, refineries and distribution in
Bolivia be surrendered to YPFB, Dow Jones says.  However,
Petrobras, who has been active in all of those areas, demanded a
compensation for asset losses.

Any investments in new production in Bolivia are economically
non-viable due to an increase in taxes and royalties to 82% at
the biggest gas fields, Mr. Freitas told Dow Jones.

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.


YPF SA: Pres. Morales Says Gov't Hands Off on Andina Case Probe
---------------------------------------------------------------
The Associated Press reports that Bolivian President Evo Morales
said that investigations into alleged illegal natural gas sales
by Andina, the Bolivian subsidiary of Repsol YPF, would be
conducted "with respect to legal procedures" and without any
interference from his administration.

As widely reported, Bolivian authorities in Santa Cruz raided
the offices of Andina seeking documentation related to a 2002
contract between it and Brazilian state-run energy company
Petroleo Brasileiro SA.  The authorities are accusing Andina of
selling Bolivian natural gas to Brazil at prices lower than the
official rate.  Andres Soliz, the hydrocarbons minister of
Bolivia estimated that the Bolivian government lost US$161
million due to the alleged sales.

"If (the investigators) find any irregularities, it is their job
to punish those acts, because here there are rules that have to
be respected," Pres. Morales was quoted by AP as saying.

Repsol said in reports that the contract was known to the proper
authorities.

Both sides threatened to bring the dispute in international
courts.  

In May this year, Bolivian authorities also accused Andina of
smuggling oil from the country.  The government later dropped
the case.

Meanwhile, the Bolivian president said that he doesn't want to
damage his country's close ties with Spain and that he supports
"further dialogue, so we can remain good partners," AP relates.

                        *    *    *

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

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

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.




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


BANCO ABN: Moody's Ups Foreign Currency Deposit Rating to Ba3
-------------------------------------------------------------
Moody's Investors Service upgraded Banco ABN AMRO Real S.A.'s
long-term foreign currency deposits to Ba3, from B1.  The rating
outlook is stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


BANCO BRADESCO: Moody's Raises Currency Deposit Rating to Ba3
-------------------------------------------------------------
Moody's Investors Service upgraded these ratings of Banco
Bradesco S.A.:

   -- long-term foreign currency deposits to Ba3 from B1; and

   -- long- and short-term global local currency deposit
      ratings to A1/Prime fom A3/Prime-2.

The ratings outlook is stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.  In a related move, Moody's upgraded the long-and short-
term local currency bank deposit ratings of Banco do Brasil
S.A., Caixa Economica Federal, Banco Bradesco S.A., Banco Itau
S.A. and Uniao de Bancos Brasileiros S.A.  The outlook on the
ratings is stable.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


BANCO CITIBANK: Moody's Ups Currency Deposit Rating to Ba3
----------------------------------------------------------
Moody's Investors Service upgraded Banco Citibank S.A.'s foreign
currency deposits to Ba3 from Ba1.  The rating outlook is
stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.  In a related move, Moody's upgraded the long-and short-
term local currency bank deposit ratings of Banco do Brasil
S.A., Caixa Economica Federal, Banco Bradesco S.A., Banco Itau
S.A. and Uniao de Bancos Brasileiros S.A.  The outlook on the
ratings is stable.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


BANCO CRUZEIRO: Moody's Raises Currency Deposit Rating to Ba3
-------------------------------------------------------------
Moody's Investors Service upgraded Banco Cruzeiro do Sul S.A.'s
long-term foreign currency deposits to Ba3 from Ba1.  The rating
outlook is stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.  In a related move, Moody's upgraded the long-and short-
term local currency bank deposit ratings of Banco do Brasil
S.A., Caixa Economica Federal, Banco Bradesco S.A., Banco Itau
S.A. and Uniao de Bancos Brasileiros S.A.  The outlook on the
ratings is stable.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


BANCO DO BRASIL: Moody's Raises Currency Deposit Rating to Ba3
--------------------------------------------------------------
Moody's Investors Service upgraded these ratings of Banco do
Brasil S.A.:

   -- long-term foreign currency deposits to Ba3 from Ba1;

   -- long- and short-term global local currency deposit ratings
      to A1/Prime-1 from A3/Prime-2; and

   -- foreign currency bond ratings to Baa3 from Ba1.

The ratings outlook is stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.  In a related move, Moody's upgraded the long-and short-
term local currency bank deposit ratings of Banco do Brasil
S.A., Caixa Economica Federal, Banco Bradesco S.A., Banco Itau
S.A. and Uniao de Bancos Brasileiros S.A.  The outlook on the
ratings is stable.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


BANCO DO ESTADO: Moody's Ups Currency Deposit Rating to Ba3
-----------------------------------------------------------
Moody's Investors Service upgraded Banco do Estado Sao Paulo
S.A.'s long-term foreign currency deposits to Ba3 from Ba1.  The
rating outlook is stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.  In a related move, Moody's upgraded the long-and short-
term local currency bank deposit ratings of Banco do Brasil
S.A., Caixa Economica Federal, Banco Bradesco S.A., Banco Itau
S.A. and Uniao de Bancos Brasileiros S.A.  The outlook on the
ratings is stable.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


BANCO INDUSTRIAL: Moody's Ups Currency Deposit Rating to Ba3
------------------------------------------------------------
Moody's Investors Service upgraded Banco Industrial e Comercial
S.A. aka BICBANCO's long-term foreign currency deposits to Ba3
from Ba1.  The rating outlook is stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.  In a related move, Moody's upgraded the long-and short-
term local currency bank deposit ratings of Banco do Brasil
S.A., Caixa Economica Federal, Banco Bradesco S.A., Banco Itau
S.A. and Uniao de Bancos Brasileiros S.A.  The outlook on the
ratings is stable.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


BANCO INVESTIMENTO: Moody's Ups Currency Deposit Rating to Ba3
--------------------------------------------------------------
Moody's Investors Service upgraded Banco Investimento do Brasil
S.A.'s long-term foreign currency deposits to Ba3 from Ba1.  The
ratings outlook is stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.  In a related move, Moody's upgraded the long-and short-
term local currency bank deposit ratings of Banco do Brasil
S.A., Caixa Economica Federal, Banco Bradesco S.A., Banco Itau
S.A. and Uniao de Bancos Brasileiros S.A.  The outlook on the
ratings is stable.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


BANCO ITAU (CI): Moody's Ups Currency Deposit Rating to Ba3
-----------------------------------------------------------
Moody's Investors Service upgraded these ratings of Banco Itau
S.A. Cayman Islands:

   -- long-term foreign currency deposits to Ba3 from Ba1; and
   -- long-term foreign currency deposit bonds to Baa3 from B1.
      
The ratings outlook is stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.  In a related move, Moody's upgraded the long-and short-
term local currency bank deposit ratings of Banco do Brasil
S.A., Caixa Economica Federal, Banco Bradesco S.A., Banco Itau
S.A. and Uniao de Bancos Brasileiros S.A.  The outlook on the
ratings is stable.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


BANCO ITAU: Moody's Ups Foreign Currency Deposit Rating to Ba3
--------------------------------------------------------------
Moody's Investors Service upgraded these ratings of Banco Itau
S.A.:

   -- long-term foreign currency deposits to Ba3 from Ba1; and

   -- long-and short-term global local currency deposit ratings
      to A1/Prime-1 from A3/Prime-2.

The ratings outlook is stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.  In a related move, Moody's upgraded the long-and short-
term local currency bank deposit ratings of Banco do Brasil
S.A., Caixa Economica Federal, Banco Bradesco S.A., Banco Itau
S.A. and Uniao de Bancos Brasileiros S.A.  The outlook on the
ratings is stable.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


BANCO NACIONAL: Loans BRL900MM to Modernize Usiminas & Cosipa
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a financing to Usiminas group, in an amount of up to
BRL900 million, in the Credit Limit modality.  The operation is
directed to support investments in technological modernization
and environmental protection in the two corporation's
siderurgical plants -- Usiminas, in Ipatinga, and Cosipa, in
Cubatao.

The Group's most recent cycle of investments, in siderurgical
sector, was carried out in 2001, with the inauguration of a new
continuous casting and a one more converter in Cosipa unit,
thereby enabling an increase in its production capacity, which
jumped from 2.7 million to 4.5 million tons of liquid steel p.a.

Thus, Usiminas group increased its production capacity to
roughly 10 million tons/year.  Last year, the production reached
the total volume of 8.7 million tons, thereby becoming the Latin
America's largest manufacturer of flat steel.

Usiminas manufactures and trades hot and cold rolled flat steel,
plates and coated steel, specially directed to sectors of
capital goods and consumption goods of white goods, besides the
automotive industry.  As to Cosipa, it manufactures and trades
plates, thick plates, hot and cold rolled, and customized
plates, thereby meeting the automotive, naval, agricultural,
electronics, machine and equipment sector, besides manufacturing
small-and large-diameter pipes.

To enable new investments in siderurgical plants, BNDES
financing will be divided into two subcredits: BRL500 million to
Cosipa and BRL400 million to Usiminas.

Usiminas is a public corporation, with shares traded on Stock
Exchanges of Sao Paulo and Madrid, on over-the-counter market of
New York and also on American Depositary Receipts or ADRs,
representative certificates of shares and other securities
traded in the United States of America.

The Group's main shareholders are:

   -- Nippon Usiminas Co. Ltd. (19.4%),
   -- Caixa dos Empregados da Usiminas (13.2%),
   -- Camargo Correa (7.6%),
   -- Votorantim (7.6%),
   -- Bradesco (2.6%),
   -- Sudameris (1.9%), which comprise the controlling block,
   -- Cia. Vale do Rio Doce (23%) and
   -- Banco do Brasil Employees Pension Fund aka Previ (14.9%).

The group is comprised by the following enterprises:

   -- Usinas Siderurgicas de Minas Gerais S.A.,
   -- Companhia Siderurgica Paulista aka Cosipa,
   -- Usiminas Mecanica,
   -- Usiparts,
   -- MSR Logistica,
   -- Fasal,
   -- Usifast Logistica Industrial,
   -- Rio Negro,
   -- Usiparts,
   -- Siderar,
   -- Dufer,
   -- Unigal and
   -- Fundacao Sao Francisco Xavier.

                       About Usiminas

Headquartered in Minas Gerais, Brazil, Usiminas is among the
world's 20 largest steel manufacturing complexes, with a
production capacity of approximately 10 million tons of steel.
Usiminas System companies produces galvanized and non-coated
flat steel products for the automotive, small and large diameter
pipe, civil construction, hydro-electronic, rerolling,
agriculture, and road machinery industries. Brazil consumes 80%
of its products and the company's largest export markets are the
U.S. and Latin America.

                        *    *    *

Standard & Poor's Ratings Services affirmed on June 7, 2006, its
'BB+' long-term corporate credit rating on Brazil-based steel
maker Usinas Siderurgicas de Minas Gerais S.A. -- Usiminas.  At
the same time, Standard & Poor's assigned its 'BB+' senior
unsecured debt rating to the forthcoming US$200 million Global
MTNs due June 2016 to be issued by Cosipa Commercial Ltd.  The
outlook on the corporate credit rating is stable.

                        *    *    *

Moody's Investors Service assigned on June 7, 2006, a Ba2
foreign currency rating to the proposed senior unsecured bonds
to be issued by Cosipa Commercial Ltd., a subsidiary of
Companhia Siderurgica Paulista -- Cosipa based on the Cayman
Islands, in the amount of approximately US$200 million with
bullet maturity in 2016, under the US$500 million Medium Term
Notes Program of Usinas Siderurgicas de Minas Gerais S.A. --
Usiminas and Cosipa.  The rating outlook is stable.


BANCO NOSSA: Moody's Ups Foreign Currency Deposit Rating to Ba3
---------------------------------------------------------------
Moody's Investors Service upgraded Banco Nossa Caixa S.A.'s
long-term foreign currency deposits to Ba3 from Ba1.  The
ratings outlook is stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.  In a related move, Moody's upgraded the long-and short-
term local currency bank deposit ratings of Banco do Brasil
S.A., Caixa Economica Federal, Banco Bradesco S.A., Banco Itau
S.A. and Uniao de Bancos Brasileiros S.A.  The outlook on the
ratings is stable.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


CAIXA ECONOMICA: Moody's Ups Foreign Curr. Deposit Rating to Ba3
----------------------------------------------------------------
Moody's Investors Service upgraded these ratings of Caixa
Economica Federal:

   -- long-term foreign currency deposits to Ba3 from Ba1; and

   -- long- and short-term global local currency deposit ratings
      to A1/Prime-1 from A3/Prime-2.

The ratings outlook is stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.  In a related move, Moody's upgraded the long-and short-
term local currency bank deposit ratings of Banco do Brasil
S.A., Caixa Economica Federal, Banco Bradesco S.A., Banco Itau
S.A. and Uniao de Bancos Brasileiros S.A.  The outlook on the
ratings is stable.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


COMPANHIA DE BEBIDAS: Moody's Raises Foreign Curr. Rating to Ba1
----------------------------------------------------------------
Moody's Investors Service has upgraded to Ba1 from Ba2 the
foreign currency issuer rating of Companhia de Bebidas das
Americas aka AmBev to reflect the upgrade of Brazil's foreign
currency country ceiling to Ba1 from Ba2.  AmBev's global local
currency issuer rating of Baa3 and the foreign currency rating
of Baa3 for its debt issues remain on review for possible
upgrade.

AmBev, based in Sao Paulo, Brazil, is the largest brewer in
Latin America and the fifth largest brewer in the world.


COMPANHIA SIDERURGICA: Esmark Comments on Merger Talks & Issues
---------------------------------------------------------------
Esmark Incorporated, a steel services company supported by
global investor Franklin Mutual Advisers, LLC, and lead bank JP
Morgan Chase N.A., released a statement from its President and
Chief Financial Officer, Craig T. Bouchard, regarding recent
statements in the media by executives from Wheeling-Pittsburgh
Corporation, Companhia Siderurgica Nacional and representatives
of the United Steelworkers:

"We have followed with great interest the comments made by
executives from Wheeling-Pitt, CSN and representatives of the
United Steelworkers in recent days.  We are pleased that the
United Steelworkers have announced their strong support for the
proposed Esmark transaction and their plans to defend the rights
of the United Steelworkers from Wheeling-Pitt management and its
proposed merger with CSN.

"We were troubled -- as we imagine many of Wheeling-Pitt's
shareholders were -- to learn in the August 29 edition of the
Pittsburgh Tribune-Review that Mr. Bradley has developed a 'Plan
B' for reorganizing Wheeling-Pitt in the event his proposed
merger with CSN fails to materialize.  Yet Mr. Bradley refuses
to divulge any details of his 'Plan B' to Wheeling-Pitt
shareholders, employees, retirees or the Ohio Valley community.

"We were also interested to learn additional information
regarding Mr. Bradley's Plan A -- the proposed merger with CSN.  
CSN purchased its Heartland facility in Terre Haute, Indiana in
2001 out of bankruptcy for US$50 million, plus the assumption of
US$19.8 million in debt.  In the August 29 edition of the
Steubenville Herald-Star, CSN admitted that its Heartland
facility continued to suffer losses.  This is the key asset in
Mr. Bradley's Plan A that CSN is contributing for its initial
49.5% stake in the new company.  The shareholders, employees and
other stakeholders have a right to know the extent of the losses
suffered at Heartland, the true value of this facility and other
key performance metrics.

"In contrast to the Heartland facility, Esmark is a well-run and
profitable company. Our company is on track to record pre-tax
income of over US$32 million in 2006.  By an independent
analysis, the replacement value of Esmark's property, plant and
equipment has been estimated to be well over US$400 million.

"We continue to believe that the proposed combination of
Wheeling-Pitt and Esmark provides superior value to the
shareholders, employees and other stakeholders of Wheeling-Pitt.  
For this and other reasons, we have nominated a slate of
directors to be elected at the upcoming annual meeting of
shareholders on November 17."

Esmark, together with the other participants, filed a revised
preliminary proxy statement with the SEC on August 24, 2006,
relating to the solicitation of proxies for the election of a
slate of director nominees at the 2006 annual meeting of
shareholders of Wheeling-Pitt. Esmark's revised preliminary
proxy statement contains information on the participants in
Esmark's solicitation and their interests in Wheeling-Pitt.  
Esmark and the other participants intend to file a definitive
proxy statement and accompanying proxy card with the SEC. Esmark
urges Wheeling-Pitt shareholders to read the definitive proxy
statement in its entirety when it becomes available because it
will contain important information.

The participants will provide copies of the definitive proxy
statement without charge upon request made to Esmark's proxy
solicitor, Innisfree M&A Incorporated, at its toll-free number
(888) 750-5834.

The participants in this proxy solicitation are anticipated to
be:

   -- Esmark,
   -- the Bouchard Group, L.L.C.,
   -- Franklin Mutual Advisers, LLC and
   -- certain of its directors and officers:
   
         -- James P. Bouchard,
         -- Craig T. Bouchard,
         -- Albert G. Adkins,
         -- Clark Burrus,
         -- C. Frederick Fetterolf,
         -- James V. Koch,
         -- George Munoz,
         -- Joseph Peduzzi, and
         -- James A. Todd.

                         About Esmark

Headquartered in Chicago and founded by the Bouchard Group,
Esmark is a steel services family of companies.  The mission of
Esmark is to establish the benchmark standards for strategic
consolidation, operating efficiency and management excellence in
the steel sector.

                 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)'.


HSBC BANK: Moody's Ups Foreign Currency Deposit Rating to Ba3
-------------------------------------------------------------
Moody's Investors Service upgraded HSBC Bank Brasil S.A. aka
Banco Multiplo's long-term foreign currency deposits to Ba3 from
Ba1.  The ratings outlook is stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.  In a related move, Moody's upgraded the long-and short-
term local currency bank deposit ratings of Banco do Brasil
S.A., Caixa Economica Federal, Banco Bradesco S.A., Banco Itau
S.A. and Uniao de Bancos Brasileiros S.A.  The outlook on the
ratings is stable.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


NOVELIS INC: Furthers Restructuring to Improve European Business
----------------------------------------------------------------
Novelis Inc. disclosed additional steps in its ongoing
initiative to improve its business in Europe, including a review
of strategic alternatives for its Foil and Technical Products
business unit.

Novelis also announced the proposed restructuring of its
European central management and administration activities in
Zurich to reduce overhead costs and streamline support
functions. In addition, the Company is proposing to exit the
Neuhausen Technology Center in Switzerland.  The Company would
expect to incur US$6 million of costs associated with the
proposed restructuring of the management and administration
activities and exiting the R & D center. Expected savings from
these actions approximate US$10 million per year.

The Company stated that all the elements of the proposed
restructuring would be conducted in full compliance with work
rules and labor laws pertinent to the regions in which the
facilities are located.

"The initiatives we are announcing today support Novelis'
corporate strategy of enhancing our high-end product portfolio
and improving our cost position," stated William T. Monahan,
Chairman and Interim Chief Executive Officer.  "While our Foil
and Technical Products unit in Europe is a strong business, we
have decided to explore all strategic alternatives, including
divestment of the business."

The Foil and Technical Products business comprises six plants --
one in France, three in Germany, one in Luxembourg, and one in
the United Kingdom -- that produce aluminum foil used primarily
in packaging and industrial markets.  Together these plants
employ 2,100 people.

Arnaud de Weert, President of Novelis Europe, stated, "The
proposed steps to simplify our central management and
administration in Europe involve reducing overhead and shifting
some of these activities into our market- oriented business
units and plants.  These facilities will become the focal point
of the Company's business activities and will allow us to move
even closer to the customer.  This, in turn, will enable us to
make our European footprint more efficient and more
competitive."

Novelis' proposed administrative reorganization includes
significantly streamlining the central team that leads overall
strategy, coordination and compliance from Novelis Europe's
corporate office in Zurich and transferring support functions --
including Research and Technology, Continuous Improvement and
most Human Resources and Planning and Purchasing activities --
into the respective business units. These proposed actions will
facilitate a more efficient regional system and an even greater
focus on customers.

As part of this effort and to promote closer involvement of the
operations in the development of new product innovations,
Novelis is proposing to exit the Neuhausen technology lab and
concentrate key resources in technology market centers of
excellence in Europe and in the Novelis Global Technology Center
located in Kingston, Ontario, Canada.

Novelis began to restructure its European operations in 2005.
That year the Company closed two facilities -- one in Flemalle,
Belgium, and one in Falkirk, Scotland.  To date in 2006 it has
sold a rolling mill in Annecy, France, closed its Borgofranco
casting alloys site in Italy, and reorganized its Ohle and
Ludenscheid foil operations in Germany.

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: Will Reduce Aviation Fuel Price by 4.9%
------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras, Brazil's state-owned oil
company, will lower the price of aviation fuel sold in Brazil by
4.9% on Sept. 1, the Estado newswire reports.

According to Estado, Brazilian airlines, which have been
burdened by large fuel bills, have been relieved on the price
decreased.

Estado relates that Petrobras' aviation fuel prices vary twice
per month, depending on movements in international oil markets.  

Petrobras' aviation fuel prices will have risen 21.2% this year
even after the September reduction due to increasing oil prices,
Estado states.

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

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

                        *    *    *

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.


SANEAMENTO BASICO: Implements 6.71% Water Rates Increase
--------------------------------------------------------
State water utility Companhia de Saneamento Basico do Estado de
Sao Paulo aka Sabesp said in a filing with the Comissao de
Valores Mobiliarios, Brazil's securities regulator, that it
increased water rates by 6.71% on Aug. 31, Business News
Americas reports.

According to BNamericas, Sabesp' yearly rates are based on the
IPCA price index.  Between July 2005 and July 2006, the price
index increased 4.03%.

BNamericas relates that Sabesp increased its tariffs 9% in 2005.  
IPCA rate was 6.57%.  Due to the hike, Sabesp clients had to pay
BRL11.19 per month for use of water up to 10 cu m.  Meanwhile,
the rate increase this year would result to a BRL11.94 charge on
clients.

About 55% of Sabesp's customers use below 10 cu m per month.

Sabesp's net profits dropped 48% to BRL176 million in the second
quarter of 2006, compared with the same period of 2005.  Net
revenues rose 6.7% to BRL1.31 billion.  The company's gross
profits grew 1.6% to BRL647 million while operating profits
dropped 41% to BRL293 million, BNamericas states.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
June 23, 2006, Standard & Poor's Ratings Services has raised its
Brazilian national-scale corporate credit rating on Companhia de
Saneamento Basico do Estado de Sao Paulo aka SABESP to 'brA+'
from 'brA'.  At the same time, it affirmed the company's global-
scale ratings at 'BB-'.  The outlook is stable.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 3, 2005,
Standard & Poor's Ratings Services assigned a 'BB-/Stable/--'
corporate credit rating to Companhia de Saneamento Basico do
Estado de Sao Paulo aka Sabesp.


UNIAO DE BANCOS: Moody's Raises Currency Deposit Rating to Ba3
--------------------------------------------------------------
Moody's Investors Service upgraded these ratings of Uniao de
Bancos Brasileiros S.A. aka Unibanco:

   -- long-term foreign currency deposits to Ba3 from Ba1; and

   -- long- and short-term global local currency deposit ratings
      to A1/Prime-1 from A3/Prime-2.

The ratings outlook is stable.

Moody's upgraded the long-term foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian
banks.  In a related move, Moody's upgraded the long-and short-
term local currency bank deposit ratings of Banco do Brasil
S.A., Caixa Economica Federal, Banco Bradesco S.A., Banco Itau
S.A. and Uniao de Bancos Brasileiros S.A.  The outlook on the
ratings is stable.

These rating actions are the direct result of Moody's upgrade of
Brazil's country ceiling for foreign currency bonds and notes to
Ba2, from Ba3, as well as Brazil's country ceiling for foreign
currency bank deposits to Ba3, from B1, and the local currency
bank deposit ceiling to A1, from A3.


USIMINAS: Gets BRL900-Mil. Loan for Technical Modernization
-----------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a financing to Usiminas group, in an amount of up to
BRL900 million, in the Credit Limit modality.  The operation is
directed to support investments in technological modernization
and environmental protection in the two corporation's
siderurgical plants -- Usiminas, in Ipatinga, and Cosipa, in
Cubatao.

The Group's most recent cycle of investments, in siderurgical
sector, was carried out in 2001, with the inauguration of a new
continuous casting and a one more converter in Cosipa unit,
thereby enabling an increase in its production capacity, which
jumped from 2.7 million to 4.5 million tons of liquid steel p.a.

Thus, Usiminas group increased its production capacity to
roughly 10 million tons/year.  Last year, the production reached
the total volume of 8.7 million tons, thereby becoming the Latin
America's largest manufacturer of flat steel.

Usiminas manufactures and trades hot and cold rolled flat steel,
plates and coated steel, specially directed to sectors of
capital goods and consumption goods of white goods, besides the
automotive industry.  As to Cosipa, it manufactures and trades
plates, thick plates, hot and cold rolled, and customized
plates, thereby meeting the automotive, naval, agricultural,
electronics, machine and equipment sector, besides manufacturing
small-and large-diameter pipes.

To enable new investments in siderurgical plants, BNDES
financing will be divided into two subcredits: BRL500 million to
Cosipa and BRL400 million to Usiminas.

Usiminas is a public corporation, with shares traded on Stock
Exchanges of Sao Paulo and Madrid, on over-the-counter market of
New York and also on American Depositary Receipts or ADRs,
representative certificates of shares and other securities
traded in the United States of America.

The Group's main shareholders are:

   -- Nippon Usiminas Co. Ltd. (19.4%),
   -- Caixa dos Empregados da Usiminas (13.2%),
   -- Camargo Correa (7.6%),
   -- Votorantim (7.6%),
   -- Bradesco (2.6%),
   -- Sudameris (1.9%), which comprise the controlling block,
   -- Cia. Vale do Rio Doce (23%) and
   -- Banco do Brasil Employees Pension Fund aka Previ (14.9%).

The group is comprised by the following enterprises:

   -- Usinas Siderurgicas de Minas Gerais S.A.,
   -- Companhia Siderurgica Paulista aka Cosipa,
   -- Usiminas Mecanica,
   -- Usiparts,
   -- MSR Logistica,
   -- Fasal,
   -- Usifast Logistica Industrial,
   -- Rio Negro,
   -- Usiparts,
   -- Siderar,
   -- Dufer,
   -- Unigal and
   -- Fundacao Sao Francisco Xavier.

                       About Usiminas

Headquartered in Minas Gerais, Brazil, Usiminas is among the
world's 20 largest steel manufacturing complexes, with a
production capacity of approximately 10 million tons of steel.
Usiminas System companies produces galvanized and non-coated
flat steel products for the automotive, small and large diameter
pipe, civil construction, hydro-electronic, rerolling,
agriculture, and road machinery industries. Brazil consumes 80%
of its products and the company's largest export markets are the
U.S. and Latin America.

                        *    *    *

Standard & Poor's Ratings Services affirmed on June 7, 2006, its
'BB+' long-term corporate credit rating on Brazil-based steel
maker Usinas Siderurgicas de Minas Gerais S.A. -- Usiminas.  At
the same time, Standard & Poor's assigned its 'BB+' senior
unsecured debt rating to the forthcoming US$200 million Global
MTNs due June 2016 to be issued by Cosipa Commercial Ltd.  The
outlook on the corporate credit rating is stable.

                        *    *    *

Moody's Investors Service assigned on June 7, 2006, a Ba2
foreign currency rating to the proposed senior unsecured bonds
to be issued by Cosipa Commercial Ltd., a subsidiary of
Companhia Siderurgica Paulista -- Cosipa based on the Cayman
Islands, in the amount of approximately US$200 million with
bullet maturity in 2016, under the US$500 million Medium Term
Notes Program of Usinas Siderurgicas de Minas Gerais S.A. --
Usiminas and Cosipa.  The rating outlook is stable.

                        *    *    *

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.


* CITY OF CURITIBA: Moody's Upgrades Foreign Curr. Rating to Ba1
----------------------------------------------------------------
Moody's Investors Service has raised the City of Curitiba's
foreign currency rating to Ba1 from Ba2 to reflect the change of
Brazil's foreign currency country ceiling to Ba1 from Ba2.  The
rating has a stable outlook.  Curitiba's local currency rating
of Ba1 and national scale rating of Aa1.br remain unchanged,
with stable outlooks.


* BRAZIL: Improved External Credit Cues Moody's to Raise Ratings
----------------------------------------------------------------
Moody's Investors Service has upgraded Brazil's key ratings in
the wake of significant changes in the government's debt
structure that have led to a substantial reduction in credit
vulnerabilities derived from the financial impact of exchange
rate fluctuations and, to a lesser degree, domestic interest
rates on government debt ratios.

The foreign currency country ceiling was upgraded to Ba1 from
Ba2 while the government's foreign- and local-currency bond
ratings were changed to Ba2 from Ba3.  The country ceiling is
based on the government bond ratings and Moody's assessment of a
moderate risk of a payments moratorium in the case of a
government default.

In addition, the country ceiling for foreign currency bank
deposits was upgraded to Ba3 from B1 and the A3 local currency
deposit ceiling and the A3 local currency guideline -- the
highest possible rating that could be assigned to obligors and
obligations denominated in local currency within the country --
were upgraded to A1.  All of Brazil's ratings have a stable
outlook.

"Even though a strong commitment on the part of the authorities
to a 4.25% of GDP primary surplus target has been effective in
supporting stable government debt ratios," said Moody's Vice
President Mauro Leos, "the government continues to face
significant medium-term fiscal challenges derived from the
presence of a relatively rigid spending structure.

"While government finances may continue to benefit from
additional reductions in domestic interest rates, an improved
credit standing will require political consensus in order to
implement actions that address the presence of an increasing
trend in primary spending," said Mr. Leos.  "We view this as
inconsistent with the government's declared intention to assure
fiscal sustainability over time."

The upgrades incorporate Moody's perception of the government's
increasing ability to manage adverse economic conditions. Mr.
Leos said that "the presence of a diversified export structure
should allow Brazil to weather dips in commodity prices or a
deceleration in world economic growth with more ease."

A significant reduction in the country's external
vulnerabilities as demonstrated by the nominal reduction
reported in the stock of external debt and the sustained
improvement registered in Brazil's external debt ratios,
represents an important support factor of the rating as well.
"The potential adverse impact on international financial
conditions will be somewhat mitigated by Brazil's limited
external financing needs in the coming years as reflected in the
Brazilian Treasury's 2007-08 external borrowing plan," said Mr.
Leos.


* BRAZIL: Threatens Closure of Google Operations in Country
-----------------------------------------------------------
The Financial Times report that Brazilian federal prosecutors in
Brazil are threatening to shut down Google's local operations if
the company won't provide the government with information to
help solve child pornography.

Brazil's Public Attorney's office filed a suit demanding Google
to provide information about some of the users of its Orkut
social networking site, the FT relates.  

The authorities alleged that Google has refused to respond to
more than 30 requests that have been lodged for information to
help track down users of Orkut, the FT states.  

Meanwhile, Google denied not providing the Brazilian authorities
with information.  However, Google emphasized it would give full
cooperation under the terms of the US legal process, the FT
says.  Google underscored that Orkut data are stored in its
servers in the US.  As such, information requests could only be
accommodated under Google's US operations.

Google, the FT says, has a policy to keep data about its users
in the US from disclosure to foreign governments.

Orkut is a social networking site.  FT says 65% of the site's 20
million registered users are from Brazi.

                        *    *    *

Fitch Ratings assigned these ratings on Brazil:

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




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


BALL BRAZIL: Sets Final Shareholders Meeting on Sept. 28
--------------------------------------------------------
Ball Brazil Holdings Limited's final shareholders meeting will
be at 10:00 a.m. on Sept. 28, 2006, at:

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

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


CORALIE LIMITED: Schedules Last Shareholders Meeting on Sept. 28
----------------------------------------------------------------
Coralie Limited's final shareholders meeting will be at 12:00
p.m. on Sept. 28, 2006, at:

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

These agendas 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


GLOBAL (MASTER): Schedules Last Shareholders Meeting on Sep. 28
---------------------------------------------------------------
Global Precision Master Fund, Ltd.'s final shareholders meeting
will be at 10:00 a.m. on Sept. 28, 2006, at:

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

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


GLOBAL PRECISION: Sets Final Shareholders Meeting on Sept. 28
-------------------------------------------------------------
Global Precision Fund, Ltd.'s final shareholders meeting will be
at 10:00 a.m. on Sept. 28, 2006, at:

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

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


NEWBRIDGE LIMITED: Holding Last Shareholders Meeting on Sept. 28
----------------------------------------------------------------
Newbridge Limited's final shareholders meeting will be at 2:00
p.m. on Sept. 28, 2006, at:

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

These agendas 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 Employee Benefit Services Limited
         Whiteley Chambers, Don Street
         St. Helier, Jersey, Channel Islands


RETAIL EQUITY: Final Shareholders Meeting Is Set for Sept. 29
-------------------------------------------------------------
Retail Equity Limited's final shareholders meeting will be at
11:30 a.m. on Sept. 29, 2006, at the company's registered
office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: 9345) 949-7920


RETAIL HOLDINGS: Last Shareholders Meeting Is Set for Sept. 29
--------------------------------------------------------------
Retail Holdings Limited's final shareholders meeting will be at
1:00 p.m. on Sept. 29, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: 9345) 949-7920


RETAIL INVESTMENTS: Final Shareholders Meeting Is on Sept. 29
-------------------------------------------------------------
Retail Investments Limited's final shareholders meeting will be
at 1:30 p.m. on Sept. 29, 2006, at the company's registered
office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

         Westport Services Ltd.
         Attention: Bonnie Willkom
         P.O. Box 111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: 9345) 949-7920


SARUM LIMITED: Calls Shareholders for Final Meeting on Sept. 28
---------------------------------------------------------------
Sarum Limited's final shareholders meeting will be at 1:00 p.m.
on Sept. 28, 2006, at:

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

These agendas 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


SHACKLETON RE: Moody's Assigns Low B Ratings on Notes & Loans
-------------------------------------------------------------
Moody's Investors Service has assigned ratings to the following
Notes and Loans issued by Shackleton Re Limited, a special
purpose Cayman Islands exempted company for the benefit of
Endurance Specialty Insurance Ltd.:

   -- Ba3 to the U.S. US$125,000,000 Principal-at-Risk Variable
      Rate Notes due February 7, 2008;

   -- Ba3 for up to US$60,000,000 in Tranche B Loans; and

   -- Ba2 for up to US$50,000,000 in Tranche C Loans.

Investors in the Notes and Loans effectively provide reinsurance
coverage to Endurance Specialty Insurance Ltd. from certain
hurricanes in the North Atlantic and earthquakes in California.

Moody's ratings address the ultimate cash receipt of all
required interest and principal payments as provided by the
governing documents, and is based on the expected loss posed to
holders of Notes and Loans relative to the promise of receiving
the present value of such payments.  The rating is based on
Moody's analysis of the probability of occurrence of qualifying
events, their timing and the severity of losses experienced by
investors should those events occur during the risk period.  
Moody's review of the transaction has included extensive review
of the technical basis, methodology and historical data used to
develop the probabilistic risk model used by RMS for the
analysis of potential losses and sensitivity analysis of
critical parameters of the model.

This review, together with a detailed analysis of the
transaction's legal structure and the financial strength of the
various parties to the transaction, provided Moody's with
sufficient comfort that the resulting ratings adequately
captures the risk to investors in these securities.




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


INVERLINK: Head Denies IT Firm's Intellectual Property Breach
-------------------------------------------------------------
Local press says that Eduardo Monasterio, the former president
of bankrupt company Inverlink, has countered the allegations of
TIMM -- a Chilean-Mexican information technology firm -- on
local systems integrator Sonda over a breach of "intellectual
property".

Business News Americas relates that Mr. Monasterio sent a sworn
statement to the civil court claiming that the technology Sonda
used in Transantiago -- Santiago's integrated transport system
-- belongs to SAWS, Inverlink's former unit.

According to BNamericas, TIMM filed a lawsuit against Sonda for
using what Roberto Sone -- its current owner -- claims is TIMM's
intellectual property.  

The report says that Mr. Sone bases his allegations on the fact
that TIMM informed Sonda and one of the banks participating in
the Transantiago project about their information technology
solutions for the project, which includes:

      -- ticket collectors,
      -- GPS systems,
      -- publicity screens,
      -- cameras,
      -- sensors, and
      -- software.

However, Mr. Monasterio refuted that the intellectual property
belongs to SAWS and not to TIMM.

Mr. Monasterio told BNamericas that in 2003 SAWS was at the
point of implementing financial administration technology it
developed for the public transport system of Concepcion, Chile.  

However, a fraud involving Corfo -- Chile's economic development
agency -- stopped the implementation of the technology,
BNamericas says, citing Mr. Monasterio.

BNamericas notes that SAWS worked with Mr. Sone for the
Concepcion project.

Meanwhile, TIMM also sued the Chilean unit of Japanese hardware
firm NEC Corp. for US$390 million, BNamericas states.  Mr. Sone
alleged that NEC participated in the illegal process by using
classified information as TIMM's local representative.

Inverlink went bankrupt in 2003, along with a scandal on Pamela
Andrada -- the secretary of Carlos Massad, the former Central
Bank president.  Ms. Andrada was found out to be handing over
confidential information from Massad's computer to Mr.
Monasterio at Inverlink.  When investors removed their money
from Inverlink when the scandal ended, the firm was linked to
the vanishing of US$145 million in Corfo funds.  Javier Moya,
the former head of Corfo, allegedly removed the funds to keep
Inverlink afloat, BNamericas reports.




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


COLOMBIA TELECOM: Telefonica Increasing Stake in Firm to 52%
------------------------------------------------------------
Local press says that Spain's Telefonica is increasing its share
in Colombia Telecomunicaciones to 52.03% from the 50% plus one
share it acquired for US$670 million in April, after a merger
with Telefonica Empresas Colombia fka Telefonica Data.

Business News Americas previously reported that the merger with
Telefonica Empresas was part of the initial requirements in the
original acquisition of Colombia Telecom.   

The Colombian state now holds 47.97% of Colombia Telecom,
BNamericas notes.

According to BNamericas, current Telefonica shareholders will
receive 1.68 shares of Colombia Telecom for each current share.

Reports state that the move will be finalized in the first week
of November.

The acquisition agreement between Colombia Telecom and
Telefonica also requires the latter to continue providing
services to all the municipalities where Colombia Telecom
operates, BNamericas underscores.

                        *    *    *

Telefonica SA acquired a majority stake in Colombia Telecom from
the government in April.  The Colombian government said that
it's better to be the owner of a minority stake of a thriving
business than a majority holder of a dying one, in defense to
criticisms from various sectors.  The purchase included the
assumption of COP7.58 trillion debt, which included a US$3.26
billion pension liability and other debts totaling US$449
million.


MILLICOM INTERNATIONAL: Wins Ola Auction with US$125 Mil. Bid
-------------------------------------------------------------
Millicom International Cellular said in a statement that it has
acquired 50% and one share of Colombia's mobile firm Colombia
Movil aka Ola from Empresa de Telefono de Bogota and Empresas
Publicas de Medellin, the municipally owned telcos, for US$125
million.

As reported in the Troubled Company Reporter-Latin America on
Aug. 31, 2006, Millicom was vying with Digicel and Entel PCS to
be a strategic partner of Ola.  Entel PCS, however, backed out
of the bidding.  The sale process -- initially scheduled for
Aug. 3 -- was moved on Aug. 31.

According to the statement, Millicom expects to invest US$200
million of new equity in Ola -- including the initial equity
contribution -- within the next three years.  

The statement says, "Millicom's investment will be fully funded
by way of new debt in another wholly owned Millicom Latin
American subsidiary, so Millicom will not be drawing down its
current corporate cash reserves for this investment."

Marc Beuls, the president and Chief Executive Officer of
Millicom said in the statement, said in the statement, "The
purchase of Ola doubles Millicom's population under license in
our highly successful Latin American region."

Millicom International Cellular S.A. -- http://www.millicom.com/  
-- is a global telecommunications investor with cellular
operations in Asia, Latin America and Africa.  It currently has
cellular operations and licenses in 16 countries.  The Group's
cellular operations have a combined population under license of
approximately 391 million people.

The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras.  The population under
license in Central America at December 2005 is 26.4 million.
The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay.  The population under license in South
America at December 2005 is 15.2 million.

                        *    *    *

Millicom International's 10% senior notes due 2013 carry Moody's
B3 rating and Standard & Poor's B- rating.

                        *    *    *

Standard & Poor's Ratings Services affirmed on July 4, 2006, its
'B+' long-term corporate credit and 'B-' senior unsecured debt
ratings on Millicom International Cellular S.A.  The ratings
were removed from CreditWatch with developing implications,
where they had been placed on Jan. 20, 2006, on the initiation
of a strategic review that could have led to a transaction such
as the sale of all or part of the company.  The outlook is
stable.




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


DENNY'S CORP: Reports Same-Store Sales for the Month of August
--------------------------------------------------------------
Denny's Corp. reported same-store sales for its company-owned
Denny's restaurants during the four-week month ended
Aug. 23, 2006 compared with the related period in fiscal year
2005.

Sales:                   August 2006     QTD 2006    YTD 2006
----------------------  -------------  ----------- -----------
Same-Store Sales             4.1%         3.5%       2.5%
  Guest Check Average         3.6%         3.9%       5.4%
  Guest Counts                0.5%        (0.3%)     (2.8%)


Restaurant Counts:                      8/23/06     12/28/05
-----------------------             -------------  -----------
  Company-Owned                             540          543
  Franchised and Licensed                 1,025        1,035
                                     -------------  -----------
                                          1,565        1,578


Headquartered in Spartanburg, South Carolina, Denny's Corp.
-- http://www.dennys.com/-- is America's largest full-service
family restaurant chain, consisting of 543 company-owned units
and 1,035 franchised and licensed units, with operations in the
United States, Canada, Costa Rica, Guam, Mexico, New Zealand and
Puerto Rico.

At June 28, 2006, Denny's Corp.'s balance sheet showed a
US$257,947,000 stockholders' deficit compared with
US$266,547,000 deficit at Dec. 28, 2005.


* COSTA RICA: Uses Bulldog RoadBOSS Services in Cargo Security
--------------------------------------------------------------
The government of Costa Rica has approved and patented the
RoadBOSS(TM) GTS system of Bulldog Technologies Inc. for use in
monitoring and enforcement in the nation's mandatory and
legislated Tecnologia de Informacion Para el Control Aduanero or
TICA customs program.

The TICA Commission recently inaugurated its Security Control
Center where all affected shipments are tracked and monitored
for security and tariff compliance.  The RoadBOSS(TM) GTS, if
purchased, would be attached to incoming containers and
redistributed land shipments of cargo traveling throughout the
Costa Rican territory.

The RoadBOSS(TM) GTS is a patented electronic cargo-container
security device that attaches to the locking rods spanning the
doors of each container or truck trailer.  Powered by a military
specification energy cell, the unit uses Satellite GPS, Cellular
and Internet technology to report the status of its container to
PC-based customer tracking centers.  

Using Bulldog-supplied software, the customer employs adjustable
parameters to locate, track, manage and recover both valuable
cargo and the container units themselves.  Primary uses are loss
prevention, asset management, financial tracking and asset
recovery. Overriding capabilities include confirmation of
security status of container and contents.

Sam Raich, Bulldog Channel Manager for Latin America said, "We
believe that Central and South American governments and industry
are concerned about issues of security and of proper tracking of
cargo for customs purposes.  The Costa Rican government is
instituting what we believe could be a universal control
mechanism for cargo security and financial tracking in the
region.  This is an important achievement for Bulldog which
could lead to potential orders in this new territory in Latin
America."

Paul G. Harrington, President and Chief Executive Officer,
stated, "With this legislation, we believe that the government
of Costa Rica has taken a significant step in the process of
securing containerized cargo shipments traveling across its
borders and through its territory.  We are extremely pleased
that Bulldog's technology was able to meet the high standards
set forth by the certification process.  As a certified supplier
for global tracking seals to the Costa Rican government, we look
forward to working closely with agencies in that country to
fulfill the immediate need for what we believe to be a world
class technology solution."

               About Bulldog Technologies

Bulldog Technologies -- http:www.bulldog-tech.com -- designs,
develops, and manufactures its patented and FCC-certified
wireless Online Security Solutions or BOSS(TM) for supply-chain
and other security and asset protection business applications.  
With an estimated US$6 billion in reported cargo theft annually,
Bulldog's BOSS(TM) products are designed to increase supply
chain operational efficiency, security, and reduce and deter
overall losses.  The company also has the ability to offer
substantial assistance to corporations, governments and law
enforcement agencies in maintaining the integrity and
traceability of cargo and containers as they enter or exit
sovereign territory, are processed and re-distributed to final
destinations.

                        *    *    *

Costa Rica is rated by Moody's:

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

Fitch assigned these ratings to Costa Rica:

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

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

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




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


* CUBA: Navajo Agricultural to Sell Food Products to Nation
-----------------------------------------------------------
Tsosie Lewis, the general manager of Navajo Agricultural
Products Industries, signed a letter of intent to sell food
products to Cuba, Indian Country Today reports.

Indian Country relates that Navajo Agricultural was a member of
the first trade delegation to Cuba since President Fidel Castro
temporarily relegated his power to his brother.

Mr. Lewis told Indian Country, "We are honored that our products
will help feed the Cuban people."

Indian Country underscores that during the New Mexico
Agriculture Trade Mission to Cuba in August, Navajo Agricultural
signed a letter of intent with Alimport -- Cuba's state food
purchasing agency -- to sell:

     -- yellow corn,
     -- wheat,
     -- apples,
     -- onions,
     -- pinto beans, and
     -- other farm products.

Once the new agreement between Cuba and Navajo Agricultural is
finalized, the cash-only trade agreement could bring millions of
dollars to the Navajo Nation, due to exceptions to the US trade
ban on Cuba.

                        *    *    *

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


* DOMINICAN REPUBLIC: President Seeks to Resolve Energy Crisis
--------------------------------------------------------------
The Dominican Republic's President Leonel Fernandez told the DR1
Newsletter that he would be meeting with all sectors involved
with the national energy system to study the energy crisis and
seek a joint and definite solution.

According to Listin Diario, a meeting will be held next week as
a follow up on decisions adopted previously.  

DR1 relates that Elena Viyella de Paliza, the president of the
National Business Council, encouraged the Dominican government
to apply the General Electricity Law before talking about an
electricity sector reform.

Ms. de Paliza told Listin Diario that the main obstacles to
competitiveness of firms in the country are:

      -- blackouts, and
      -- high cost of power.

DR1 notes that Ms. de Paliza said that measures to decrease
clients who do not pay for power used needs to be taken, and
that the irregularity is the main cause of the power problems.

The government, says DR1, has been lenient at demanding that the
power distribution firms increase collections, and instead has
resorted to increasingly higher subsidies to make up for those
who do not pay.

The government, aiming to make up for the deficit, has allowed
power rate hikes that are penalizing the productive sector to a
point where many firms have been forced to close down, DR1
states.  

The nation needs an adequate private energy industry, as it
can't survive without state financial intervention, Dominican
Today emphasizes, citing Francisco Mendez, the energy
superintendent of the Dominican Republic.

Mr. Mendez told Dominican Today, "Without the government's
subsidy, the country would be under a total blackout."

Dominican Today underscores that Mr. Mendez questioned the
process by which the energy sector was capitalized during the
latter part of the 1990's.

"The energy offer has increased but at enormous sacrifices
exerted on public finances," Mr. Mendez told Dominican Today.

                        *    *    *

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.




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


* GUATEMALA: Farmers Against Mining by Multinational Companies
--------------------------------------------------------------
Several Santa Eulalia farmers in northwest Guatemala gathered in
front of the Congress office in Guatemala City as a protest
against the exploitation of mining resources by multinational
firms, Prensa Latina reports.

According to Prensa Latina, the farmers traveled to Guatemala
City to present the results of an Aug. 29 referendum, indicating
that inhabitants of Santa Eulalia, as well as those in five
other northwestern municipalities of Huehuetenango, rejected the
foreign mining operations.

Daniel Mateo, the coordinator of the farmers group, said that
Guatemala should use its resources to benefit residents and
should not grant privileges to companies that take all the
profits, use up the reserve and bring more poverty to the
country, Prensa Latina relates.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

                        *    *    *

Fitch also rated Guatemala's senior unsecured bonds:

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




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


* HONDURAS: SME's Balk at Multiple Free Trade Talks
---------------------------------------------------
Christopher Heffernan, at Honduras This Week, writes that the
Honduran government seeks to widen its trade relations by
negotiating trade accords with several countries around the
world.  

The government believes that treaties with other countries would
bring benefits to the country.  

"We're thinking of closing Taiwan by mid-October; Colombia's
going to take a bit longer, probably by the end of the year.  
With Canada we have some consultations that are still pending
from the private sector, but basically what I think is going to
be closest here is Taiwan," Elizabeth Azcona, Minister of
Industry and Commerce, was quoted by Mr. Heffernan as saying.

When asked by Mr. Heffernan why the government is rushing to ink
more trade deals, the commerce minister underscored that having
multiple trade accords will be good for the country.  Trade
deals eliminate tariffs and other taxes.  As such, Ms. Azcona
said Hondurans can buy cheaper foreign imports.

The commerce minister stressed that since Honduras signed a
trade agreement with the United States in April, the so-called
CAFTA, the couontry's exports rose 33%.   

However, not all from the business sector think that the country
is ready for the increased competition that a free market would
bring.

Mario Bustillo, the executive director of the Tegucigalpa
Chamber of Commerce and Industry, told Mr. Heffernan that many
local businesses are still dealing with the implications of
CAFTA.  

The chamber's director doesn't think the nation is ready for
more free trade pacts.  He asserted that the government has no
clear negotiating strategy, Mr. Heffernan says.

To this, the Minister Azcona replied that, "consultation
continues with the private sector," and that the government
takes seriously, "any recommendations, suggestions, or concerns
of private enterprises," Mr. Heffernan relates.

While the government is intent on strengthening sectors with
growth potentials, small and medium businesses are worried that
they'll go down in the process.

"There is a lot of growth in big business...a large company has
no problem because they have always been exporting, and they
have structures in place.  It is the small and medium enterprise
that still lacks experience, does not know what to do, and does
not know how to comply with the regulations of the FDA (U.S.
Food and Drug Administration), or other customs regulations,"
Mr. Bustillo explained to Mr. Heffernan.   "I believe that, so
far, there is...a lack of investment in order to improve the
small and medium enterprises."

The Minister responded that small businesses are getting help
and attention from the government.  She cited as an example the
government's efforts to commercialize organically grown coffee.  
The minister also encourages small producers add value to their
products by tailoring them to niche markets, Mr Heffernan
relates.  

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

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




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


AIR JAMAICA: Increasing St. Lucia & Barbados Flights on Jan. 11
---------------------------------------------------------------
Air Jamaica told the Caribbean Net News that its St. Lucia and
Barbados flights will be increased on Jan. 11, 2007.

Air Jamaica will increase its non-stop schedule from John F.
Kennedy International Airport or JFK to Hewanorra International
Airport in St Lucia from three to four weekly flights, the
Caribbean Net relates, citing George Demercado, air Jamaica's
senior executive.

Mr. Demercado told the Caribbean Net that Air Jamaica will add
northbound and southbound flights for St. Lucia on Wednesday.  
The flights are currently scheduled for:

      -- Sunday,
      -- Monday, and
      -- Thursday.

According to the report, the Caribbean Net states that the
service continues to Barbados.

Mr. Demercado told the Caribbean Net, "The St Lucia/Barbados
service has performed very well since we resumed service to St.
Lucia in February.  We have a very special relationship with the
Eastern Caribbean and are happy to see it grow strategically
over the past six months."

The Caribbean Net notes that Mr. Demercado said he regretted
that Air Jamaica could not operate the new schedule earlier due
to a traditionally soft fall season and unavailability of
aircraft during the Christmas peak.

However, Air Jamaica's hub flights between Jamaica and Barbados
and St. Lucia will move from Kingston to the Montego Bay hub on
Sundays, Mondays and Thursdays, offering seamless connections to
and from its US gateways, effective Sept. 11, 2006, The
Caribbean Net says, citing Mr. Demercado.  

The Sunday southbound flight from Jamaica to Barbados and St.
Lucia will leave Jamaica from Kingston.  Connections from
Montego Bay to Kingston and onto the Eastern Caribbean will be
possible on Sundays, Mr. Demercado told the Caribbean Net.

                        *    *    *

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


SUGAR COMPANY: Gov't Launching Purchase Talks with Foreign Firms
----------------------------------------------------------------
The government of Jamaica will start negotiations with
international investors regarding the purchase of the five
assets of the Sugar Company of Jamaica, Radio Jamaica reports.

According to Radio Jamaica, the investors will be arriving in
Jamaica this month.

Allan Rickards, the chairperson of the All-Island Jamaica Cane
Farmers Association, told Radio Jamaica that despite the
uncertainty on the sale of the assets of the Sugar Company,
foreign firms still show strong interest in the assets.

Radio Jamaica notes that the Farmers Association and a Brazilian
sugar-producing firm disclosed in 2005 their interest in buying
the operations of the factories.  The announcement was followed
by the Jamaican government's decision to close two of the
factories.

Sugar workers are yet to hear whether there would be job layoffs
before the sale of the factories.  Roger Clarke, the agriculture
minister, has set a meeting with the trade union, Radio Jamaica
relates.  

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
===========


AXTEL SA: Improved Credit Metrics Cues Moody's to Raise Ratings
---------------------------------------------------------------
Moody's Investors Service has upgraded Axtel, S.A. de C.V.'s
corporate family rating to Ba3 from B1 to reflect Axtel's
improved credit metrics as a result of strong revenues and
EBITDA growth.  The same change to Ba3 from B1 was made to the
senior unsecured rating for the Mexican corporate.  Moody's also
changed the outlook to positive from stable reflecting the
expectation of improving credit metrics as a consequence of
revenues growth and disciplined cost management.

This issue was affected by Moody's upgrade:

   -- US$162.5 million of 11% Senior Unsecured Notes due 2013.

Supporting Axtel's ratings upgrade is stronger than expected
revenues and EBITDA growth arising from favorable geographic
expansion strategy and efficient cost management in a
challenging operating environment that is characterized by
falling tariffs as a consequence of tough competition from the
dominant telephone carrier and the effects of wireless
substitution.  Axtel's business plan execution, focused on using
fixed wireless access to capture corporate and high-end
residential subscribers, has been based on a careful although
rapid network expansion in new cities as well as in currently-
served cities across Mexico.  Results have included solid growth
of lines in service, which has more then offset anticipated
reductions in ARPU, and stable churn at an acceptable level of
about 1% per month.  The rating upgrade also reflects Axtel's
cost savings from better network management and from efficiency
improvements aroused from larger number of lines in service.  
Leverage and coverage credit metrics have improved since a
portion of excess cash has been used to reduce debt as evidenced
by the US$87.5 million notes redemption last February of the
original US$250 million unsecured notes. For the twelve months
ended June 30, 2006, EBITDA reached approximately US$215
million, which is above the company's original 2006 guidance,
helping Adjusted Debt to EBITDA to reach 1.6 times and Adjusted
EBITDA to interest expenses to get to 4.2 times. Net debt
position is even stronger although Moodys' believes that the
majority of current liquidity will most probably be used for
acquisitions instead of debt reduction.

The change in outlook to positive reflects Moody's expectation
that Axtel will post double-digit growth rates in the next years
and thus reduce operating leverage from a larger subscriber base
despite a tougher competitive environment arising from the
entrance of cable TV companies in the telecom service business.  
Subscriber base growth should occur from expansion of network
into 4 to 6 new cities in 2007 as well as double-digit growth in
existing covered cities.  The Agency believes that the
combination of both larger subscriber base and continued
disciplined cost management should help future earnings and free
cash flow generation, with the consequent improvement of Axtel's
credit metrics. Future capital expenditures, which now represent
a drain in cash, are adequately supported by the company's
current capital structure.  The change in the outlook took into
consideration Axtel's management's commitment to a total
debt/EBITDA ratio of no higher than 2.5 times even in the case
of business acquisitions.

Axtel's ratings are restrained, however, by its low market
share, non-integrated business model, low free cash flow
generation as well as the lack of a clear plan to offer video in
a timely fashion.

Upward rating pressures would arise if Axtel posts a minimum
level of free cash flow equivalent to about 6% FCF/total debt
ratio without jeopardizing growth or margins.  Should credit
metrics be impacted by an acquisition that overly increases
leverage, should subscriber base grow below Moody's expectations
or should blended average revenue per user drop more than the
expected annual decline of 10% with an impact on profit margins,
it would place downward pressure on the rating.

Axtel, with headquarters in the city of Monterrey, Mexico, is a
competitive local telephone company providing bundled products
including voice, data and Internet services.


FORD MOTOR: May Sell Aston Martin Sports Car Unit to Raise Fund
---------------------------------------------------------------
Ford Motor Company has begun the process of exploring strategic
options for Aston Martin sports-car unit, with particular
emphasis on a potential sale of all or a portion of the unit.

"As part of our ongoing strategic review, we have determined
that Aston Martin may be an attractive opportunity to raise
capital and generate value," said Chairman and Chief Executive
Officer Bill Ford.  "Aston Martin Lagonda has flourished under
Ford ownership, which is why we believe it is prudent to
consider a sale of all or part of this prized brand.  Since
Aston Martin's dealer network, product architecture and size are
distinctly different from other Ford brands, it is the most
logical and capital-smart divestiture choice.  The objective of
any sale would be to position Aston Martin within a structure
and resource base sufficient to allow it to reach its full
potential, while enabling Ford to efficiently raise capital for
its other brands."

Mr. Ford added, "Regarding our other Premier Automotive Group
brands, we've made no decisions, as our review of strategic
alternatives continues.  However, we continue to be encouraged
by Jaguar's progress and by the strength and consumer appeal of
the Jaguar, Land Rover and Volvo product lineups."

The company said there can be no assurance that the decision to
explore strategic options for Aston Martin will result in any
transaction, which would be subject to Board approval.

                     About Ford Motor

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

                        *    *    *

As reported in the Troubled Company Reporter on 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.


FORD MOTOR: Mulls Doubling Russian Car Sales in 2006
----------------------------------------------------
Ford Motor Co. is planning to nearly double its Russian sales
from 60,654 vehicles to 120,000 cars this year, RIA Novosti
says.

Ford President Henrik Nenzen is optimistic that the company
would improve its position in the Russian car market, the
Russian news agency relates.  Mr. Nenzen noted that Ford has
doubled its first-half sales to 48,840 cars and expected the
trend to continue for the whole year.  

Ford entered the Russian market in July 2002 when it opened its
Vsevolozhsk site, with a US$150 million investment.  The company
is planning a US$250-million upgrade of the Vsevolozhsk site,
increasing the site's annual production to 30,000 Ford Mondeos,
20,000 Ford Mavericks and 100,000 Ford Focus models.

                     About Ford Motor

Headquartered in Dearborn, Michigan, Ford Motor Company
(NYSE: F) -- http://www.ford.com/-- manufactures and  
distributes automobiles in 200 markets across six continents
including Mexico.  With more than 324,000 employees worldwide,
the company's core and affiliated automotive brands include
Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury
and Volvo.  Its automotive-related services include Ford Motor
Credit Company and The Hertz 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, FordMotor 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 POSADAS: S&P Affirms BB- Long-Term Corporate Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
corporate credit rating on Grupo Posadas S.A. de C.V.  At the
same time, it revised the outlook to positive from stable.
Standard & Poor's also affirmed the 'BB-' senior unsecured debt
rating.

"The outlook revision acknowledges the consistent operating
performance, a manageable debt maturity schedule, and the
expected stability of its cash flow, which will support improved
coverage measures," said Standard & Poor's credit analyst
Fabiola Ortiz. Offsetting these positive credit factors are the
company's somewhat high financial leverage, the cyclicality of
the hotel industry, and geographic concentration within Mexico.

As of June 2006, Posadas operated 92 hotels with a total of
17,478 rooms.  The company's operations are concentrated in
Mexico, where it runs 78 hotels (84% of total rooms).  It also
operates 10 hotels in Brazil, three in the U.S., and one in
Argentina. Approximately 20% of Posadas' rooms are located in
the coastal hotels, and the remaining 80% in interior-city
hotels.

During the past 12 months, the company opened five new hotels in
Mexico.  Four of them were under leased agreements and one under
management contract, which is in line with Posadas' strategy to
gradually change its business mix, minimizing capital
requirements.  As of June 2006, in terms of number of hotels,
Posadas has 42% under management contracts, 35% owned, and 23%
under leased contracts.

During second-quarter 2006, the revenue per available room or
RevPAR in coastal hotels increased by 18% compared with the same
period of last year due to the strong results in the FA Grand
Los Cabos property, which increased its RevPAR by 39% during the
quarter The number of available rooms in coastal destinations
was 28% below those in second-quarter 2005, because of the
closing of the FA Grand Aqua, which is still the only hotel out
of five properties affected by hurricane Wilma (October 2005)
that has not been reopened.  It is expected to be reopened
during 2007.

The positive outlook reflects our expectation that Posadas will
maintain strong operating performance and continued growth under
management and lease agreements.  The ratings on Posadas would
likely be raised if the company continues to strengthen its
financial profile and improve its total debt-to-EBITDAR ratio
(adjusted for operating leases) to 3.3x on a sustainable basis.  
The rating could be pressured downward if the company's
financial profile deteriorates considerably and if it has
acquisitions outside its core business.


PORTRAIT CORP: Files Chapter 11 Petition in New York
----------------------------------------------------
Portrait Corp. of America Inc., filed a Chapter 11 bankruptcy
petition with Southern District of New York in White Plains
after reaching an agreement with some of its bondholders,
Charlotte Business Journal reports.

The bondholders started to negotiate with Portrait Corp. on
steps to avoid liquidation.  Those bondholders would become the
Company's equity holders if Judge Adlai S. Hardin Jr. approved a
proposed restructuring plan.  According to Business Journal, the
Company expects to eliminate 75% of its debt and US$30 million
in annual interest payments.  

Portrait Corp. has experienced financial problems for some time,
including default on some notes and unpaid bills to vendors.  It
lost US$34.4 million in 2005 and US$29.7 million in 2004.

Portrait Corp. Chief Executive David Alexander, in an interview
with Business Journal, said: "After several months of productive
dialogue between our major creditors and our equity holders, we
have achieved an agreement that will make PCA a much stronger
company."  Mr. Alexander added: "We enter restructuring in a
unique position in that our key lenders are already on board
with our plan."

In June, Portrait Corp. reported it has hired separate
restructuring teams to advise it and the holders of about US$165
million of its bond debt.

Portrait Corporation of America, Inc., provides professional
portrait photography products and services to children, adults
and families in North America.  The Company operates portrait
studios within Wal-Mart stores and Supercenters in the United
States, Canada, Mexico, Germany and the United Kingdom.  The
Company also operates a modular traveling business providing
portrait photography services in additional retail locations and
to church congregations and other institutions.

                    Going Concern Doubt

Eisner LLP raised substantial doubt about Portrait Corp. of
America, Inc.'s ability to continue as a going concern after
auditing the Company's consolidated financial statements for the
year ended Jan. 29, 2006.  The auditor pointed to the Company's
substantial net loss, negative working capital, stockholders'
deficiency, default of certain obligations, which were due on
June 15, 2006, and insufficient liquidity to meet those
obligations.


PORTRAIT CORP: Case Summary & 29 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Portrait Corporation of America, Inc.
        fka PCA International, Inc.
        815 Matthews-Mint Hill Road
        Matthews, NC 28105

Bankruptcy Case No.: 06-22541

Debtor-affiliates filing separate chapter 11 petitions:

      Entity                                     Case No.
      ------                                     --------
      American Studios, Inc.                     06-22542
      Hometown Threads LLC                       06-22543
      PCA Photo Corporation of Canada, Inc.      06-22544
      PCA Finance Corp.                          06-22545
      PCA LLC                                    06-22546
      PCA National LLC                           06-22547
      PCA National of Texas LP                   06-22548
      Photo Corporation of America, Inc.         06-22549

Type of Business: The Debtors' core business is in retail
                  portrait photography.  Their automated film
                  laboratory processes more than 130 million
                  portraits annually for more than seven million
                  customers.

                  The Debtors are the exclusive portrait
                  providers for Wal-Mart stores, and operate
                  studios in more than 3,000 Wal-Mart store
                  locations in the United States, Canada,
                  Germany, United Kingdom and Mexico.  See
                  http://pcaintl.com/

Chapter 11 Petition Date: August 31, 2006

Court: Southern District of New York (White Plains)

Judge: Adlai S. Hardin Jr.

Debtors' Counsel: John H. Bae, Esq.
                  Cadwalader Wickersham & Taft LLP
                  One World Financial Center
                  New York, NY 10281
                  Tel: (212) 504-6013
                  Fax: (212) 504-6666
                  http://www.cadwalader.com/

Counsel for
Debtors' Outside
Directors:        Kirkland & Ellis LLP
                  Citigroup Center
                  153 East 53rd Street
                  New York, NY 10022-4611
                  Tel: (212) 446-4800
                  Fax: (212) 446-4900
                  http://www.kirkland.com/

Debtors'
Restructuring
Accountants:      Mesirow Financial Consulting, LLC
                  350 North Clark Street
                  Chicago, IL 60610
                  Tel: (312) 595-6000
                  Fax: (312) 595-4246
                  https://www.mesirowfinancial.com/

Debtors'
Financial
Advisor and
Investment
Banker:           Berenson & Company LLC
                  667 Madison Avenue
                  New York, NY 10021
                  Tel: (212) 935-7676
                  Fax: (212) 935-1499
                  http://www.berensonco.com/

Debtors' Claims,
Noticing and
Balloting Agent:  Bankruptcy Services LLC
                  757 Third Avenue 3rd Floor
                  New York, NY 10017
                  Tel: (646) 282-2500
                  Fax: (646) 282-2501
                  http://www.bsillc.com

Debtors' financial condition as of July 30, 2006:

      Total Assets: US$153,205,000

      Total Debts:  US$372,124,000

Debtors' Consolidated List of its 29 Largest Unsecured
Creditors:

  Entity                        Nature of Claim     Claim Amount
  ------                        ---------------     ------------
The Bank of New York Trust      Indenture Trustee US$165,000,000
Company, N.A.
Corporate Trust - Default
Administration Group
101 Barclay Street - 8W
New York, NY 10286
c/o Stuart Kratter
Tel: (212) 815-5466
Fax: (212) 815-5131

Goldman Sachs & Co.             Noteholder         US$42,475,000
85 Broad Street
New York, NY 10004
c/o Matt Brenner
Tel: (212) 902-8184

Whippoorwill Associates, Inc.   Trade              US$22,782,655
Assignee of AgfaPhoto USA Corp.
11 Martine Avenue, 11th Floor
White Plains, NY 10004
c/o Steven Gendal
Tel: (914) 683-1002

Wal-Mart Stores, Inc.           Rent/Royalty        US$5,078,952
702 Southwest 8th Street
Bentonville, AR 72716
c/o Michael Li
Tel: (479) 204-6574

Callisto Corporation            Trade                 US$681,291
182 West Central Street
Suite 101
Natick, MA 01760
c/o Mike Barta
Tel: (508) 655-3311
Fax: (508) 650-4626

PBM Graphics, Inc.              Trade                 US$429,871
3700 Miami Boulevard
Durham, NC 27703
c/o Gary Pegram
Tel: (919) 595-7611
Fax: (919) 595-7929

Travelers Indemnity Company     Trade                 US$413,664
P.O. Box 91287
Chicago, IL 60693-1287
c/o Brian Tanasi
Tel: (860) 277-7932

Walsworth Publishing co.        Trade                 US$388,041
P.O. Box 412034
Kansas City, MO 64141-2034
c/o Rich Bond
Tel: (866) 369-2646
Fax: (660) 376-3269

Eisner LLP                      Trade                 US$355,000
750 Third Avenue
New York NY 10017-2703
c/o Nicholas Tsafos
Tel: (212) 891-4128

National Print Group Inc.       Trade                 US$334,427
P.O. Box 116424
Atlanta, GA 30368-6424
c/o Phillip L. Harris
Tel: (423) 648-8803
Fax: (800) 624-0408

Photo Control Corp.             Trade                 US$280,483
4800 Quebec Avenue
Minneapolis, MN 55428
c/o Doug Waldoch
Tel: (763) 537-3601
Fax: (763) 537-2852

Global Crossing Telecom.        Trade                 US$225,724

Strategic Flooring Services     Trade                 US$168,656

Datamail Inc.                   Trade                 US$156,073

Carolina Envelope               Trade                 US$137,645

Sony Electronics/B&P            Trade                 US$136,600

Dell Corporation                Trade                 US$117,412

Reliance Deductible Recovery    Trade                 US$114,098

Lee Wayne Corp.                 Trade                 US$110,243

Denny Manufacturing Co., Inc.   Trade                 US$107,986

Robinson, Bradshaw & Hinson PA  Trade                 US$107,311

Dell Financial Services Inc.    Trade                  US$92,493

IBM Corporation                 Trade                  US$89,715

C.L. Rabb, Inc.                 Trade                  US$89,189

VAResources, Inc.               Trade                  US$88,810

Sunbelt                         Trade                  US$83,369

Granite                         Trade                  US$82,854

J L & S Woodworking Inc.        Trade                  US$82,132

Amglo Kemlite                   Trade                  US$73,403


RADIOSHACK CORP: Lays Off 400 Workers to Reduce Costs
-----------------------------------------------------
RadioShack Corp. recently laid off around 400 workers via
electronic messages, The Boston Globe reports.  

Due to certain negative trends in its business, the Company
disclosed early this year a turnaround program with these goals:

   -- increase the average unit volume of RadioShack company-
      operated store base;

   -- rationalize cost structure; and

   -- grow profitable square footage in its store portfolio.

The Company's turnaround program has two fundamental work
streams:

   -- eliminating assets and activities which earn poor returns,
      distract from efforts to improve core RadioShack stores,
      or offer limited growth prospects going forward; and

   -- investing in assets and activities which have the opposite
      characteristics of those that it will eliminating.

The Company is replacing slower-moving merchandise with new,
faster-moving merchandise.  During the fourth quarter of 2005
and the first quarter of 2006, the Company identified
underperforming inventory for replacement and are liquidating
these items.  It is using the space freed up through this
liquidation for other merchandise.

The Company is also concentrating its efforts and investments on
improving top-performing stores.  To do so, as of July 31, 2006,
it has identified and closed approximately 480 of RadioShack
company-owned stores, based on criteria such as weak financial
performance, poor real estate, subpar brand representation, and
high likelihood to transfer sales to other RadioShack stores.  
The Company's decision to close these stores was made on a
store-by-store basis, and there is no geographic concentration
of closings for these stores.

In addition, the Company will close two distribution centers in
Charleston, South Carolina, and Southaven, Mississippi, and has
closed or sold five service centers.  The Company is reviewing
overhead expenses to identify potential sources of cost
reduction and to focus its resources.

                       About RadioShack

Fort Worth, Texas-based RadioShack Corporation --
http://www.RadioShackCorporation.com/-- is a consumer  
electronics specialty retailers and a growing provider of retail
support services.  The company operates a network of sales
channels, including: more than 6,000 company and dealer stores;
more than 100 RadioShack locations in Mexico and Canada; and
nearly 800 wireless kiosks.  

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 25, 2006,
Fitch Ratings downgraded these ratings for RadioShack
Corporation:

   -- Issuer Default Rating to 'BB+' from 'BBB'
   -- Bank credit facility to 'BB+' from 'BBB'
   -- Senior unsecured notes to 'BB+' from 'BBB'
   -- Commercial paper to 'B' from 'F2'

Fitch said the Rating Outlook is Stable.


VALASSIS COMMS: S&P Holds Negative Watch on Ratings
---------------------------------------------------
Standard & Poor's Ratings Services said its ratings on Livonia,
Mich.-headquartered marketing services provider Valassis
Communications Inc., including its 'BB' corporate credit rating,
remain on CreditWatch with negative implications where they were
placed on June 26, 2006.

The CreditWatch update follows the company's announcement
yesterday it has sued ADVO Inc. in Delaware Chancery Court to
rescind its US$1.3 billion merger agreement with ADVO, alleging
fraud and material adverse changes in ADVO's business.  "While
the complaint filed with the court is not yet publicly
available, the CreditWatch listing reflects the uncertainties
surrounding the resolution of the complaint at a time when
Valassis' existing business operations have been challenged,"
said Standard & Poor's credit analyst Emile Courtney.

In resolving the CreditWatch listing, Standard & Poor's will
evaluate the financial impact related to the resolution of the
suit and assess prospects for Valassis' businesses, which have
been under pressure. In addition, if the merger agreement were
rescinded, Valassis' long-term financial policy priorities would
factor meaningfully into our analysis.




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


* NICARAGUA: Economist Says Transaction Costs Highest in CenAm
--------------------------------------------------------------
Economist Edmundo Jarquin told Prensa Latina that domestic costs
of transactions in Nicaragua are among the highest in Central
Americas.

Mr. Jarquin is a former official of the Inter-American
Development Bank for ten years and a presidential candidate of
the Sandinista Renovador Movement.

According to Prensa Latina, Mr. Jarquin called on officials to
lessen the domestic debt, as it is a hindrance on Nicaragua's
economy.  He said that it affects the expansion of Nicaraguan
economy and therefore the nation's development.

Mr. Jarquin told Prensa Latina that Nicaragua's trade with the
world might be increased through the implementation of a subsidy
on the interest rate of productive funding.

Nicaragua's investment, in line with the scope of the Gross
Domestic Product, must be increased to almost 30%, Prensa Latina
relates, citing Mr. Jarquin.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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


* NICARAGUA: Seeks to Boost Coffee Export
-----------------------------------------
Sources from the coffee sector of Nicaragua told Prensa Latina
that businessmen and farming experts from several nations will
meet with their Nicaraguan counterparts in the VI International
Coffee Forum Ramacafe 2006 in October to come up with ways to
further boost export and quality of coffee.

Coffee is the number export product of Nicaragua.

Between January and June 2006, coffee sales increased by 23%.

According to Prensa Latina, representatives of the firm Green
Mountain Roasters -- the second largest coffee company in the
United States -- and specialists of the Directive Meeting of the
Fair Trade in Germany will be joining the meeting.

Experts said the forum will have the theme "The perfect equation
of coffee: collaboration, quality and chain of sustainable
supply, indispensable elements in this market", Prensa Latina
reports.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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




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


PARMALAT USA: Enrico Bondi, et al., Want Injunction Imposed
-----------------------------------------------------------
Dr. Enrico Bondi, in his capacity as Extraordinary Administrator
of the Foreign Debtors; the Foreign Debtors; and Reorganized
Parmalat inform the U.S. District Court for the Southern
District of New York that they will take an appeal from the
District Court order permitting plaintiffs in the securities
fraud action to name Reorganized Parmalat as defendant.

The Appellants will ask the U.S. Court of Appeals for the Second
Circuit to review the District Court's order, dated July 26,
2006, insofar as the order:

   -- modified or dissolved the injunctive relief that had been
      granted pursuant to Section 304 of the Bankruptcy Code; or

   -- denied injunctive relief pursuant to Section 304.

In July 2006, the District Court allowed class plaintiffs of the
"Parmalat Securities Litigation" to file a third amended
complaint, which includes [the new] Parmalat SpA among the
defendants.  Said class action is pending in the District Court.  

Other defendants in the class action are Deloitte & Touche
(and, as an individual, Mr. James Copeland), Grant Thornton,
Citigroup (including Buconero, Vialattea, Eureka
Securitization), Bank of America, Credit Suisse, Banca Nazionale
del Lavoro, Banca Intesa, Morgan Stanley, the law offices of
Pavia Ansaldo and of Zini Associates, and number of individuals.

The defendants were allowed to conduct discovery with respect to
the class certification until Sept. 21, 2006.

A full-text copy of the District Court Order is available for
free at http://researcharchives.com/t/s?f6c

                          About Parmalat

Headquartered in Wallington, New Jersey, Parmalat USA
Corporation -- http://www.parmalatusa.com/-- generates more  
than 7 billion euros in annual revenue.  The Parmalat Group's
40-some brand product line includes milk, yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices and employs over 36,000
workers in 139 plants located in 31 countries on six continents
including Brazil and Paraguay.  The Company filed for chapter 11
protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-
11139).  Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at
Weil Gotshal & Manges LLP, represent the Debtors.  When the U.S.
Debtors filed for bankruptcy protection, they reported more than
US$200 million in assets and debts.  The U.S. Debtors emerged
from bankruptcy on April 13, 2005.  (Parmalat Bankruptcy News,
Issue No. 76; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


PARMALAT USA: Administrator Sues BofA Corp. et al. for Collusion
----------------------------------------------------------------
G. Peter Pappas, administrator of Parmalat USA Corp.'s Plan of
Liquidation, filed in April 2006 a lawsuit before the U.S.
District Court for the Southern District of New York against:

   * Bank of America Corporation;
   * Bank of America, N.A.;
   * Bank of America National Trust & Savings Association;
   * Banc of America Securities LLC;
   * Banc of America Securities Limited;
   * BankAmerica International Limited;
   * Grant Thornton International;
   * Grant Thornton, LLP;
   * Italaudit SpA, In Liquidizacione;
   * Deloitte & Touche USA, LLP;
   * Deloitte & Touche, LLP;
   * Deloitte & Touche, SpA;
   * Deloitte Touche Tohmatsu;
   * Credit Suisse;
   * Credit Suisse International;
   * Credit Suisse Securities (Europe) Limited; and
   * Banca Nazionale del Lavoro, SpA

Mr. Pappas delivered to the District Court an amended complaint
in July 2006.  A full-text copy of the 340-page Amended
Complaint is available at no charge at:

               http://researcharchives.com/t/s?10c5

Mr. Pappas asserts claims against the banks and auditors for
helping Parmalat insiders artificially inflate the company and
its subsidiaries' financial health.  According to Mr. Pappas,
the conspiracy allowed the insiders to hide substantial
operating losses for over a decade, misstate Parmalat's debt by
nearly US$10 billion, and misstate total net assets by US$16.4
billion.

Mr. Pappas tells Judge Kaplan that Parmalat USA was a victim of
the fraudulent scheme.  From 1999 through 2003, Parmalat USA
accumulated substantial and material debt -- eventually reaching
in excess of US$20,000,000 at the time of Parmalat USA's
bankruptcy filing -- to certain banks.  But for the false
portrayal of Parmalat as a thriving, financially sound company,
which each of the Defendants aided and abetted, Mr. Pappas says,
Parmalat USA would not have or could not have incurred tens of
millions of dollars of debt which it could not repay on its own
and which drove it deeper into insolvency.

The Plan Administrator seeks unspecified damages on account of
his claims for aiding and abetting, breach of fiduciary duty,
and civil conspiracy.

According to Mr. Pappas, Bank of America structured transactions
that allowed for the manipulation and falsification of
Parmalat's financial statements, and sold more than US$1 billion
of Parmalat's private placements to U.S. investors based on what
Bank of America knew were materially false and misleading
statements about Parmalat.  To sell the Parmalat securities in
the U.S., Bank of America representatives arranged "road show"
meetings with major U.S. institutional investors during which
Bank of America representatives, together with culpable Parmalat
insiders, distributed false and misleading information about
Parmalat that was reviewed and approved by Bank of America.  
Bank of America also helped disguise loans as equity, thereby
concealing Parmalat's disastrous financial condition.

Mr. Pappas notes that, as Parmalat's culpable insiders have
testified, far from providing mere banking services, Bank of
America conceived, proposed, and carried out numerous deceptive
transactions in concert with the insiders that generated
enormous commissions, concealed Parmalat's mounting debt and
which caused Parmalat's financial statements to be misstated.

The Parmalat insiders could not have concealed the fraud absent
the active participation of the Grant Thornton entities, Mr.
Pappas asserts.  Among others, Mr. Pappas relates that Grant
Thornton had direct knowledge of the role of the offshore
entities used to allow Parmalat to conceal the ever-growing debt
generated from its fraudulent sales.

In 1999, under Italian law, Parmalat was forced to retain
Deloitte & Touche as new auditor. However, Grant Thornton
continued to manage and conceal the true financial status of
offshore entities when Deloitte took over.

Mr. Pappas says that Deloitte certified the financial statements
of Parmalat USA that materially overstated assets from 2000
through 2002, and failed to report, despite knowledge to the
contrary, that Parmalat USA was not a going concern.  Deloitte
also knew that Parmalat USA's ability to continue as a going
concern depended upon the ongoing financial support of Parmalat
SpA and, therefore, Deloitte was required by generally accepted
auditing standards to inquire into the financial condition of
Parmalat SpA.  According to Mr. Pappas, the Deloitte entities
negligently, recklessly, or fraudulently combined to prepare the
component parts that were then consolidated into Parmalat SpA's
certified financial statements to perpetuate the fraud.

The Credit Suisse Defendants, Mr. Pappas continues, joined the
conspiracy by helping to hide Parmalat's growing debt.  The
Credit Suisse Entities acted as an underwriter for Parmalat
securities and directly participated in a complex financial
transaction with Parmalat -- through Parmalat Brasil -- which
was designed to artificially inflate Parmalat's assets, while
appearing to provide Parmalat with financing through the
issuance of bonds by Parmalat Brasil.

Banca Nazionale del Lavoro participated in the factoring scheme
whereby Parmalat's culpable insiders used previously paid
invoices to raise additional capital.

                      About Parmalat

Headquartered in Wallington, New Jersey, Parmalat USA
Corporation -- http://www.parmalatusa.com/-- generates more  
than 7 billion euros in annual revenue.  The Parmalat Group's
40-some brand product line includes milk, yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices and employs over 36,000
workers in 139 plants located in 31 countries on six continents
including Brazil and Paraguay.  The Company filed for chapter 11
protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-
11139).  Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at
Weil Gotshal & Manges LLP, represent the Debtors.  When the U.S.
Debtors filed for bankruptcy protection, they reported more than
US$200 million in assets and debts.  The U.S. Debtors emerged
from bankruptcy on April 13, 2005.  (Parmalat Bankruptcy News,
Issue No. 76; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)




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


* PERU: Fitch Upgrades Foreign Currency Issuer Rating to BB+
------------------------------------------------------------
Fitch has taken these rating actions on Peru:

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

   -- Upgraded the local currency IDR to 'BBB-' from 'BB+',
      Stable Outlook;

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

   -- Country ceiling upgraded to 'BBB-' from 'BB+'; and

   -- Collateralized Brady Bonds upgraded to 'BBB-' from 'BB+'.

"Peru has benefited markedly from favorable trends in the global
economy that have underpinned rapidly growing exports, notably
of metals and such non-traditional exports as textiles and agro-
industrial goods, as well as strong output growth of around 6%
per year," said Theresa Paiz Fredel, Director of Latin American
Sovereign Ratings at Fitch Ratings.  As a result, key sovereign
financial ratios have been improving, evidenced by 2006
forecasts for net external debt to current external receipts of
41% (close to the 'BB' median), general government debt to GDP
of 35% (below the 'BB' median of 41.7%), and external financing
needs to official reserves of a comparatively low 4.8%.

"While the commodity export bonanza has underpinned rising tax
revenues in Peru," said Paiz Fredel, "modest spending restraint
through the first half of 2006 has kept fiscal deficits low and
may even yield a government surplus this year."  Furthermore,
the smooth political transition that took place in July supports
the upgrade, with President Alan Garcia's inaugural speech and
cabinet appointments pointing toward a continuity of the
macroeconomic policies that have served Peru so well in recent
years.

Fiscal restraint, liability management operations, and sizable
balance of payments surpluses since 2001 have allowed net
repayments of public external debt and official foreign exchange
reserves to rise to record levels.  As a result, the public
sector's NXD to CXR ratio has been declining rapidly and is
expected to reach around 27.1% by the end of 2006, a material
improvement from Fitch's forecast of 35.9% at the time the
Rating Outlook was revised to Positive from Stable in November
2005.  Although this ratio remains well above the 12.8%
forecasted median for Fitch-rated 'BB' sovereigns, it is
steadily converging toward the median.  Furthermore, the
government's external debt burden has been partially mitigated
by its astute debt re-profiling operations, which have reduced
the public sector's financing requirement to no more than 3% of
GDP over the medium term, assuming the non-financial public
sector deficit is maintained at the targeted 1% of GDP.

Official reserve accumulation, combined with the reduction of
debt service, has boosted Peru's external liquidity ratio to
207% this year. While this compares favorably to a median of
156% for 'BB' rated sovereigns, when adjusting the liquidity
ratio to include resident foreign currency bank deposits in the
denominator, the liquidity ratio falls to around 92%,
highlighting the risks associated with Peru's high, albeit
declining, dollarization.

Peru remains vulnerable to a global economic downturn and a
consequent commodity price correction.  Metals prices -
specifically, for copper, gold, molybdenum and zinc, which
figure heavily in Peru's exports - have experienced a
spectacular rise since mid-2003.  While a downward price
correction for metals can be expected in the coming years,
global supply and demand fundamentals appear sufficiently robust
to alleviate concern about a sudden commodity price shock in the
near term.

Given the underlying structural weaknesses of Peru's economy
(e.g. a narrow economy and export base, sub-par social
development indicators), the transition to investment grade will
likely take some time to achieve.  While Fitch expects the trend
in export and economic diversification to continue, the
diversification and financial cushion achieved thus far are not
yet consistent with an investment grade rating.  Further
reductions in net external debt, particularly net public
external debt, and a broadening of exports and sources of
economic growth, would bode well for sovereign creditworthiness,
as would further evidence that political shocks will not derail
current economic policies and prudent fiscal policy in
particular.


* PERU: Mexico Interested in Buying Nation's Liquefied NatGas
-------------------------------------------------------------
Luis Ernesto Derbez, the Mexican Foreign Relations Minister,
told local press that Mexico is still interested in importing
liquefied natural gas or LNG from Peru.

Dow Jones Newswires relates that after a meeting with Peru's
foreign affairs minister, Minister Derbez said that Mexico will
need to import about half of its needed gas for the next 10
years.

According to Dow Jones, Peru LNG -- a private-sector consortium
-- has begun work on a gas liquefaction plant on Peru's Pacific
coast at Pampa Melchorita.

Minister Derbez told Dow Jones, "The idea is that we can end
negotiations with the government of Peru in the short term, and
by that I mean within the three months that remain for the
government of President Fox, so we can define what will be the
imports and what volumes we are talking about.  The concrete
date of the imports will be between 2010 and 2011 in terms of
the construction needs of the (Mexican) plants."

Settling the bidding process for any contracts will likely take
about a year, with three to four more years for construction,
Dow Jones notes, citing Minister Derbez.

However, any deal will have to be reached with Repsol YPF SA, a
Spanish-Argentine oil and energy firm, as the latter will be the
initial sole "offtaker" of Peru's LNG, Dow Jones says.

Dow Jones underscores that the LNG plant in Peru will have the
initial capacity of four million metric tons per year or 625
million cubic feet per day.

The reports emphasizes that Peru LNG signed in 2005 an accord
with Repsol YPF, allowing the latter to take a 20% stake in the
project and be the sole offtaker of the gas over a period of 18
years.

Mexico could spend US$25 billion on Peru's LNG over a period of
25 years, news agency Andina notes, citing Antonio Villegas, the
Mexican Ambassador.

Carlos Del Solar, general manager of Hunt Oil in Peru, told Dow
Jones that it is possible that a 25-year contract could
represent US$25 billion, but it will depend on many factors,
including the price and the terms of the contract itself.  
According to Mr. Del Solar, Peru LNG is on track with its plant
construction.

"The plant will be finished at the end of 2009 and will enter
into operation in 2010," Mr. Del Solar told Dow Jones.

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     BB      Nov. 18, 2004
   Long Term IDR       BB      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating      BB+     Dec. 14, 2005




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


ADELPHIA COMMS: Ronald Cooper Resigns as President & COO
--------------------------------------------------------
In a regulatory filing with the Securities and Exchange
Commission, Adelphia Communications Corporation discloses that
on Aug. 17, 2006, Ronald Cooper, ACOM's president and chief
operating officer, resigned for "Good Reason," as defined in his
Employment Agreement with ACOM.

ACOM waived the requirement under the Employment Agreement that
Mr. Cooper should provide a 30 days' notice of termination for
Good Reason because substantially all of the cable operations
that he had previously overseen had been sold.  Immediate
resignation conferred a financial benefit on ACOM, Brad M.
Sonnenberg, ACOM's executive vice president, general counsel and
secretary, says.

As a result of the termination for Good Reason, Mr. Cooper is
entitled to receive:

     * a lump sum payment of US$5,100,000 -- an amount equal to
       three times his base salary and target bonus -- no later
       than Sept. 16, 2006; and

     * a continued health coverage at employee rates at his sole
       cost for 18 months, until Feb. 17, 2008.

             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: Boies Schiller Can't Examine Fee Committee
----------------------------------------------------------
The Honorable Robert D. Gerber of the U.S. Bankruptcy Court for
the Southern District of New York grants the request of the Fee
Committee of Adelphia Communications Corp. and its debtor-
affiliates for a protective order precluding Boies, Schiller &
Flexner, LLP, from further pursuit of the Discovery Requests,
insofar as the Fee Committee seeks protection from the discovery
requests now.

However, Judge Gerber denies the Fee Committee's request to
preclude Boies Schiller from ever pursuing the Discovery
Requests.

The Court also denies the Fee Committee's request for a
protective order precluding Boies Schiller from pursuing further
discovery requests of the Fee Committee and its agents, without
prejudice to any rights to relief on more particularized
grounds, including work product, attorney mental impressions, or
attorney-client privilege.

            No Absolute Immunity from Discovery

Judge Gerber agrees with Boies Schiller's contention that no
case has ever been held that a fee committee has "discovery
immunity," and notes that the Fee Committee has cited none in
its request.  "Nevertheless, the issue warrants further
analysis," he says.

Judge Gerber further notes that the Court appointed the Fee
Committee as an "officer[] of the Court," and "provided the
maximum immunity permitted by law from civil actions. . . ."  He
contends that the two clauses should be considered separately,
although they are related.

Judge Gerber emphasizes that the Fee Committee is provided the
maximum immunity permitted by law from civil actions, and not
from discovery requests.  "That has a clear meaning in the free-
standing sense, and particularly since the clause applies not
just to the Fee Committee but also to its members, it has a
clear meaning in context as well," he explains.

The Fee Committee's designation as an "officer of the Court"
requires consideration of what "officer of the Court" means, in
the context of the appointment of a fee committee, Judge Gerber
states.  It is not defined by statute or any expressly stated
definition or cross-reference, and is used in a variety of ways
in everyday legal life, he continues.

While Judge Gerber does not agree with Boies Schiller's
contention that the Fee Committee is no more of an "officer of
the Court" than a lawyer is, he agrees with Boies Schiller that
the Fee Committee is not a judicial officer, or close to one,
either.  The Fee Committee plainly performs its function with
the authority of the Court but does not make judicial or quasi-
judicial determinations, he notes.

Accordingly, Judge Gerber finds that the Court-approved Fee
Committee Protocol does not grant the Fee Committee immunity
from discovery, and neither the designation of the Fee Committee
as an "officer of the Court," nor its inherent nature, makes it
wholly immune from otherwise proper discovery requests.

         Discovery Available from Parties and Nonparties

Judge Gerber notes that the Fee Committee argues that it is "not
a party" to the contested matter relating to Boies Schiller's
final fee application, and implies, though it does not expressly
state, that it provides a second basis for a protective order.

According to Judge Gerber, assuming that the Fee Committee's
contention has in fact been made, he cannot agree with it.  "At
least in the federal courts, discovery is available from parties
and nonparties alike."

          Protective Order from Discover Requests
                Granted "Now" but Not "Ever"

According to Judge Gerber, even though fee committees are not
immune from discovery, care must be taken to protect their
legitimate rights to the protection of work product, attorney
mental impressions, and the attorney-client privilege.  He
states that courts should be wary of efforts to use discovery
from fee committees as a tactical measure.

Judge Gerber notes that in many cases, much of the work of any
fee committee may have most, if not all, of the trappings of
work product.  Consistent with any work product analysis, Judge
Gerber says he believes that courts should direct discovery of
fee committees only as a last resort, to ensure that the
discovery is really necessary, both:

    -- temporally to await the filing of an objection that makes
       the desired discovery necessary or appropriate; and

    -- substantively to see if the relevant information can be
       obtained from other sources.

"While I am saying 'not now' with respect to the Discovery
Requests that [Boies Schiller] has propounded to the Fee
Committee and against which the Fee Committee has moved, I am
not saying 'never'," Judge Gerber states.

            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)


DRESSER INC: Makes US$25 Million Voluntary Debt Prepayment
----------------------------------------------------------
Dresser, Inc., has made an optional prepayment of US$25 million
on its senior secured term loan, reducing the balance of the
loan to US$70 million.

The payment brings the total of voluntary prepayments to US$75
million thus far in 2006.  The company noted its operations
continue to generate positive cash flow and its backlog and
bookings remain strong.

                       About Dresser

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

                        *    *    *

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

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


R&G FINANCIAL: Hires Andres I. Perez as Chief Financial Officer
---------------------------------------------------------------
R&G Financial Corporation entered into an employment agreement
with Andres I. Perez where, effective Oct. 1, 2006.  Mr. Perez
will serve as executive vice president until Nov. 1, 2006, after
which he will assume the additional title of chief financial
officer.

Vicente Gregorio, presently an executive vice president and
chief financial officer, will relinquish his chief financial
officer role on Oct. 31, 2006, but will continue as executive
vice president, assisting in the transition as requested by
management and the board of directors, until Dec. 31, 2006.

Mr. Perez has served as a Partner of KPMG LLP since 1998, most
recently as Audit Partner in the South Florida Business Unit and
industry sector leader of the Financial Services Practice, from
which he worked in Miami and Puerto Rico.  Previously, Mr. Perez
served in various positions, including as a Senior Manager in
KPMG LLP's U.S. Capital Markets Group in London, England and its
Professional Practice Department in New York, New York.  The
Company noted that KPMG is one of the Company's consultants in
its restatement process, and that Mr. Perez has had a very
active involvement working with the Company on its restatement
project.  Mr. Perez is a Certified Public Accountant who is
licensed in Puerto Rico and Florida and he received a Bachelor
of Business Administration with distinction from Babson College.  
He is a member of the Puerto Rico College of Certified Public
Accountants and the American Institute of Certified Public
Accountants.

          Restatement of Financial Statements

The Company disclosed that it is in the process of preparing
restated consolidated financial statements for the years ended
Dec. 31, 2002, through 2004 and anticipates finishing its work
in the middle of the fourth quarter of 2006.  The Company also
will be concurrently working on its Annual Report on Form 10-K
for the year ended December 31, 2005.  The Company expects that
if it fails to file its 2005 10-K, in satisfaction of the filing
requirements of the New York Stock Exchange, its Common Stock
will be de-listed by the Exchange.  The Company intends to
request an extension of the reports' filing dates.

The Company also disclosed that it currently believes that the
aggregate reductions required to its stockholders' equity are
between US$168 million and US$183 million after taxes, of which
US$95 million relates to the adjustments for residual retained
interests.

         Lifting of Memorandum of Understanding

The Company further disclosed that it had been informed by the
Federal Deposit Insurance Corporation that, based upon improved
controls and procedures implemented by Premier Bank, the
Memorandum of Understanding, dated Dec. 16, 2004, entered into
between Premier Bank and the FDIC with respect to alleged
violations of the Bank Secrecy Act, had been terminated.

            About R&G Financial Corporation

Headquartered in Hato Rey, Puerto Rico, R&G Financial
Corporation (NYSE: RGF) -- http://www.rgonline.com/-- is a  
diversified financial holding company with operations in Puerto
Rico and the United States, providing banking, mortgage banking,
investments, consumer finance and insurance through its wholly
owned subsidiaries, R-G Premier Bank, R-G Crown Bank, R&G
Mortgage Corporation, Puerto Rico's second largest mortgage
banker, R-G Investments Corporation, the Company's Puerto Rico
broker-dealer, and R-G Insurance Corporation, its Puerto Rico
insurance agency.  At June 30, 2006, the Company operated 37
bank branches in Puerto Rico, 35 bank branches in the Orlando,
Tampa/St. Petersburg and Jacksonville, Florida and Augusta,
Georgia markets, and 49 mortgage offices in Puerto Rico,
including 37 facilities located within R-G Premier Bank's
banking branches.

                        *    *    *

As reported by the Troubled Company Reporter on March 22, 2006,
Fitch Ratings keeps R&G Financial Corporation's BB Preferred
Stock rating on Negative Watch.




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


DIGICEL LTD: Won't Pursue Acquisition of Stake on Colombia Movil
----------------------------------------------------------------
Digicel Ltd. has chosen not to pursue its bid for a 50.1% stake
in Colombia Movil, the company said in a statement.  

Digicel will continue to follow an aggressive growth strategy,
which includes acquisitions and bids for new licenses throughout
the Pan Caribbean region.

Currently, Digicel has operations in 20 Pan Caribbean Markets,
total number of subscribers reaches 2.6 million and total
population coverage is about 15 million.

Digicel's recent acquisitions include Cingular Wireless'
Caribbean and Bermuda operations on June 2005 and Bouygues
Telecom Caraibe on March 2006.

The company has recently launched services in Trinidad & Tobago
on April 2006 and Haiti on May 2006, with US$150 million raised
through corporate bond offer to support rapid expansion and meet
surging customer demand in both markets on July 2006.

Digicel has been invited by the government of Guyana to
establish a GSM network there and advised by the government of
Suriname of eligibility for a full cellular license following a
successful application process on August 2006.  The company
looks forward to entering these respective South American
markets in the near future.

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

                        *    *    *

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

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


MIRANT: Class 3 Claim Holders to Appeal PEPCO Settlement Order
--------------------------------------------------------------
Certain holders of Class 3 Claims against Mirant Corporation and
its debtor-affiliates notify the U.S. Bankruptcy Court for the
Northern District of Texas that they will take an appeal from
Judge Lynn's Memorandum Opinion and Order dated Aug. 9, 2006,
approving a settlement agreement with Potomac Electric Power
Company and Southern Maryland Electric Cooperative, Inc., to the
U.S. District Court for the Northern District of Texas.

The Class 3 Claim Holders are investment funds managed or co-
managed by:

     (1) Basso Capital Management, L.P.
     (2) Cadence Master, Ltd.
     (3) Caspian Capital Advisors
     (4) D.E. Shaw Laminar Portfolios, L.L.C.
     (5) Highland Capital Management, L.P.
     (6) Highland Floating Rate Fund
     (7) Highland Floating Rate Advantage
     (8) ING Capital LLC
     (9) ING Middenbank Curacao N.V.
    (10) Ivy MA Holdings Cayman 8, Ltd.
    (11) King Street Capital Management, L.L.C.
    (12) Longacre Fund Management, LLC
    (13) Luxor Capital Group
    (14) Man Mac Gemstock 9B, Ltd.
    (15) Pirate Capital LLC
    (16) Quadrangle Master Funding LTD
    (17) Resurgence Asset Management, L.L.C.
    (18) Longacre Fund Management, LLC

As reported in the Troubled Company Reporter on Aug. 16, 2006,
the Court approved the settlement agreements among the
Reorganized Debtors, Potomac Electric and Southern Maryland and
overruled the objection filed by the Class 3 Claim Holders.

In a 30-page Memorandum Opinion, Judge Lynn said he finds the
US$520,000,000 settlement amount to be reasonable given:

    * the potential magnitude of claim underlying the Back-to-
      Back Agreement;

    * the uncertainties that could arise from further litigation
      over rejection of the BTB or the Asset Purchase and Sale
      Agreement; and

    * the facial appeal of the additional claims asserted by
      PEPCO.

It is not true that PEPCO's treatment is better, the Court
added.  If PEPCO were to receive treatment as provided in the
Plan, Mirant would:

    -- have distributed to it 22,297,600 of common shares; and

    -- be entitled to a share in litigation proceeds pursuant to
       Plan.

Under the Settlement, however, PEPCO will receive no
distributions pursuant to Plan, the Court notes.  As of
July 19, 2006, Mirant's stock is trading at US$26.64 per share.  
Hence, Judge Lynn said, far fewer shares, less than 20,000,000,
are necessary to satisfy PEPCO's US$450,000,000 claim under the
Settlement.

                       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's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao.  Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.  Mirant 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. 104; 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 CORP: Repurchases 43M Common Stock at US$28.50 Per Share
---------------------------------------------------------------
Mirant Corporation reported the final results of its modified
"Dutch auction" tender offer to purchase up to 43,000,000 shares
of the company's common stock, which expired at 5:00 p.m., New
York City time, on Aug. 21, 2006.

Mirant has accepted for payment an aggregate of 43,000,000
shares of its common stock at a purchase price of US$28.50 per
share.  These shares represent approximately 14% of the shares
outstanding as of June 30, 2006.  Mirant has been informed by
Mellon Investor Services, the depositary for the tender offer,
that the final proration factor for the tender offer is
approximately 85.6%.

Based on the final count by the depositary (and excluding any
conditional tenders that were not accepted due to the specified
condition not being satisfied), 50,218,254 shares were properly
tendered and not withdrawn at or below a price of US$28.50 per
share.

Payment for the shares accepted for purchase, and return of all
shares tendered and delivered and not accepted for purchase,
will be carried out promptly by the depositary.  As a result of
the completion of the tender offer, Mirant has 257,068,663
shares of common stock outstanding (basic).

Any questions with regard to the tender offer may be directed to
Innisfree M&A Incorporated, the Information Agent for the Offer,
at 1-877-750-5836, or J.P. Morgan Securities Inc., the Dealer
Manager for the Offer, at 1-877-371-5947.

                        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.


ROYAL CARIBBEAN: Offers EUR430 Million to Purchase Pullmantur
-------------------------------------------------------------
In a move to further expand its European and Latin American
operations, Royal Caribbean Cruises Ltd. disclosed its agreement
to purchase Pullmantur S.A., a Madrid-based cruise and tour
operator.  Royal Caribbean expects the acquisition to be
completed by the fourth quarter of 2006, subject to regulatory
approvals.

Royal Caribbean has signed an agreement with the shareholders of
Pullmantur to buy all of the capital stock of the company for
EUR430 million, plus Pullmantur's net debt of approximately
EUR270 million. Royal Caribbean has obtained a committed bridge
facility to support the purchase.  As part of the transaction,
Pullmantur will be withdrawing from all Cuba-related activities
prior to closing.

Pullmantur, formed in 1971, is the largest cruise operator in
Spain.  It has two primary business interests: cruises and tour
operations.  Its cruise division consists of five ships
operating in Europe and Latin America.  Its tour operations
sells travel packages to Spanish guests -- including hotel and
flights -- primarily to Caribbean resorts, and sells travel
packages to Europe aimed at Latin American customers.  
Pullmantur also has a small air business that operates three
aircraft in support of its cruise and tour.  Pullmantur has
offices in Spain and Portugal, with approximately 2,600
employees, and will be Royal Caribbean's first wholly-owned
European brand.

"Pullmantur offers a terrific strategic opportunity for Royal
Caribbean to further grow our presence in the European and Latin
American markets in a major and tangible way," said Richard D.
Fain, chairman and chief executive officer of Royal Caribbean
Cruises Ltd.  "We have made significant inroads into these
regions through our Royal Caribbean International and Celebrity
Cruises brands, and this combination will allow us to accelerate
our growth in these markets.  Pullmantur will remain an
independent brand under the Royal Caribbean umbrella, keeping
its distinctive and successful customer experience."

"Our partnership with Royal Caribbean is a bold strategic move
that will enable us to further grow our highly successful
brand," said Alfonso Lopez Perez, general manager of Pullmantur.
"This is an excellent opportunity to align ourselves with one of
the world's largest and most successful companies in the travel
industry. We are very familiar with Royal Caribbean, and I know
our two organizations will both benefit from the combination."

Royal Caribbean expects this acquisition to be neutral to
marginally accretive to 2007 earnings per share and accretive
thereafter.

Regarding 2006 earnings, the company continues to expect full
year Net Yields to increase in the range of 3% to 4% as compared
to 2005, and earnings to be in the range of US$2.90 to US$3.00
per share, excluding any impact from Pullmantur.  Additionally,
the company now expects earnings for the third quarter of 2006
to be in the range of US$1.55 to US$1.60 per share, based on
slightly stronger yield expectations of an increase of
approximately 3% over the third quarter of 2005. The exact
impact of Pullmantur on the company's fourth quarter earnings
depends on the timing of the closing and finalization of
acquisition adjustments.  Since the fourth quarter is
traditionally Pullmantur's weakest quarter, any impact is likely
to be negative.

                          Net Yields

Net Yields represent Gross Yields less commissions,
transportation and other expenses and onboard and other expenses
per APCD. We utilize Net Yields to manage our business on a day-
to-day basis and believe that it is the most relevant measure of
our pricing performance because it reflects the cruise revenues
earned by us net of our most significant variable costs.  The
company has not provided a quantitative reconciliation of
projected Gross Yields to projected Net Yields due to the
significant uncertainty in projecting the costs deducted to
arrive at this measure.  Accordingly, Royal Caribbean does not
believe that reconciling information for such projected figures
would be meaningful.

Royal Caribbean Cruises Ltd. is a global cruise vacation company
that operates Royal Caribbean International and Celebrity
Cruises, with a combined total of 29 ships in service and five
under construction.  The company also offers unique land-tour
vacations in Alaska, Canada and Europe through its cruise-tour
division.

                        *    *    *

Moody's Investors Service has assigned on June 7, 2006, a Ba1
rating on Royal Caribbean's US$700 million senior unsecured
notes issuance and affirmed all existing long-term ratings.


ROYAL CARIBBEAN: Moody's Revises Rating Outlook to Stable
---------------------------------------------------------
Moody's Investors Service has changed the rating outlook of
Royal Caribbean Cruises, Ltd., to stable from positive.  RCL's
existing ratings have been affirmed.

This action follows RCL's announcement it reached an agreement
to acquire Pullmantur S.A, a leading private Spanish cruise
operator for total consideration of 700 million euro
(approximately US$0.9 billion) that includes assumption of
Pullmantur debt.  The acquisition provides RCL a market-leading
brand in Spain's cruising market, a growing presence in the
European market and can serve as a platform for penetrating
other Spanish-speaking cruise markets outside of Europe.  To
fund the acquisition RCL has put in place a committed bridge
loan facility that is expected to be ultimately replaced with a
longer term debt financing.  The transaction is expected to
close in the fourth quarter of 2006.

The outlook change to stable from positive reflects the impact
of the debt financed acquisition, moderating operating
environment, and a large committed capital spending program over
the next several years.  When combined, these factors diminish
the probability that RCL can attain credit metrics reflective of
a higher rating.

Moody's last rating action occurred on June 7, 2006, when
Moody's assigned a Ba1 rating to RCL's newly issued senior
unsecured bonds.

Royal Caribbean Cruises, Ltd., headquartered in Miami, Florida,
operates a cruise line under the brand names, Royal Caribbean
International and Celebrity Cruises.  For the twelve-month
period ended June 2006, RCL had revenues of US$5.0 billion.  
Pullmantur, formed in 1971, is the largest cruise operator in
Spain and has two primary business interests, cruises and tour
operations.




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


* URUGUAY: Activists Threaten to Block Gas Supply from Bolivia  
--------------------------------------------------------------
Reports say that protesters of the construction of two pulp
mills in the river Uruguay will demand a blockade of future sale
of Bolivian gas to Uruguay.

Prensa Latina reports that the Environmental Peoples Assembly of
Gualeguaychu -- a city in Argentine Entre Rios Province,
bordering the Uruguayan city of Fray Bentos where the
controversial plants are being built -- will ask Argentina's
President Nestor Kirchner for the blockade.

Environmentalists Pedro Pavon and Alejandro Gahan told the Telam
news agency that they reached the agreement on Tuesday during a
meeting of the Entre Rios Assembly.

Mr. Pavon said that the environmentalists agreed to ask the
Argentine government not to grant any land for Uruguay to
transport gas from Bolivia until the pulp mill conflict is
resolved, Prensa Latina reports.

                        *    *    *

Fitch Ratings assigned these ratings on Uruguay:

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


* URUGUAY: Argentine Groups Complain on Pulp Mill to Finland
------------------------------------------------------------
Argentine environmental groups brought presented their
complaints on the construction of Uruguay's two pulp mills to
Finland, Helsingin Sanomat reports.

Jorge Daniel Taillant and Oscar Bargas -- representatives of the
environmental groups CEDHA and Asemblea Ciudadana Ambiental de
Gualeguaychu -- told reporters on what they see as mistakes made
by Mesa Botnia -- one of the builders of the pulp mill on the
river Uruguay, which forms the border between Argentina and
Uruguay.

Mr. Taillant, the head of CEDHA, told Helsingin Sanomat that he
wanted to tell the citizens of Finland that those living on the
banks of the river Uruguay are particularly worried about the
combined size of the Botnia plant as well as on the construction
of another mill by Spain's Ence.
      
"Botnia's activities do not correspond to our view of what
sustainable development is.  The company studied the impact that
the mill would have only in Uruguay, but forgot about Argentina.  
It was a great strategic mistake," Mr. Taillant told the press.

Helsingin Sanomat relates that Mr. Taillant criticized Botnia
for not having a social building permit -- the approval of the
people -- in the area.
      
Mr. Taillant told Helsingin Sanomat, "The factories are opposed
by local people, not just activists."

According to Helsingin Sanomat, Mr. Bargas is bringing a
petition with the signatures of 40,000 residents of
Gualeguaychu, calling for the cancellation of the project.  He
said, "I would like the Finnish government to call Botnia and
say that the company is hurting Finland's reputation."

The report says that Mr. Bargas stated, "In Finland you probably
couldn't build a kiosk if residents in the area were against
it."

Messrs. Taillant and Bargas plan to meet with representatives of
Finland's Ministry of Trade and Industry, Metsa-Botnia, various
organizations, and Paula Lehtomaki -- the Minister of Foreign
Trade and Development, Helsingin Sanomat notes.  

Helsingin Sanomat underscores that Metsa-Botnia invited Messrs.
Taillant and Bargas to visit pulp mills operating in Finland.  
However, the two declined.
      
Mr. Taillant, saying that he did not want to be impolite, told
Helsingin Sanomat, "It would be illogical to visit factories
that are smaller, and which operate under tougher regulations
than the plant that is being built in Fray Bentos."

Annikki Rintala, Metsa-Botnia's environmental manager, told
Helsingin Sanomat, "We respect the people of the factory area,
and we know that they have fears and concerns.  However, we are
not getting our message through in Gualeguaychu.  We would like
to tell the residents in the area that they have nothing to
worry about."

"However, we have grown accustomed to them, and we are ready to
respond and to listen," Ms. Rinatla, speaking of the
allegations, told Helsingin Sanomat.  "The opposition is not
about a lack of information, as they claim, but rather a state
of will."

                        *    *    *

Fitch Ratings assigned these ratings on Uruguay:

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




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


DIRECTV: Offering Prepaid Subscriptions in Venezuela on Sept. 1
---------------------------------------------------------------
The Directv Group Inc. will launch prepaid subscriptions in
Venezuela beginning Sept. 1, 2006, according to a report by
local paer El Carabobeno.

Business News Americas relates that clients, to use the new
service, will have to purchase a prepaid kit that includes:

     -- de-scrambler,
     -- satellite dish, and
     -- installation accessories.

The service, says BNamericas, will be activated with prepaid
phone cards from Movistar, Telefonica's mobile unit, after the
prepaid kit is purchased.

El Carabobeno notes that Directv will introduce the prepaid
service to consumers that don't want to use credit cards or bank
accounts to make payments.

According to El Carabobeno, Directv expects the service to reach
other Latin American nations.

Venezuelan clients can select from two plans, which offer up to
31 local and foreign channels, BNamericas reports.

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

                        *    *    *

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


PETROLEOS DE VENEZUELA: 12 Companies Want Stake in DeltaCaribe
--------------------------------------------------------------
Twelve foreign companies apply for licenses to prospect for non-
associated gas in the 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: Doubling Oil Supply to US Households
------------------------------------------------------------
"We will make it.  We will double the heating oil program from
October and particularly in November, December, January and
February," President Hugo Chavez was quoted by Efe news agency
as saying.

Petroleos de Venezuela SA's manufacturing arm in the US "has
been instructed to enhance the cooperation tool," the Venezuela
head told reporters in Beijing.

El Universal says Citgo has sold about 40 million gallons of
discounted heating oil to approximately 181,000 homes and
hundred underprivileged dwellings in eastern United States,
including the states of Massachusetts, New York, Maine, Rhode
Island, Vermont, Connecticut, Delaware and the area of
Philadelphia.

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: Starting Natural Gas Project in 4 Fields
----------------------------------------------------------------
Anibal Rosas, the president of PDVSA Gas, a unit of Venezuelan
state-run Petroleos de Venezuela SA, told El Universal that the
company aims to begin natural gas exploration and production in
at least four fields in Zulia.

The four fields that PDVSA Gas will work on are:

        -- La Paz,
        -- Mara,
        -- El Mojan, and
        -- Los Lanudos.

Business News Americas relates that the first three properties
on the shore of lake Maracabio produced medium to light crude
oil through the 1950s.  However, they were later abandoned.

Mr. Rosas told BNamericas, "The western coast of the lake will
be reborn for gas."

According to BNamericas, Mr. Rosas said the Los Lanudos in La
Guajira near Colombia has free gas areas with a good state.

BNamericas notes that the Venezuelan government will also hold
an auction of licenses for new offshore gas areas, including
three in Nueva Esparta and one in Delta Amacuro.

About 14 firms have bought data package on the areas for
US$30,000, BNamericas reports.

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: CAN Trade Bloc Says Country Is Still Important
-----------------------------------------------------------
"Venezuela's incorporation into Mercosur is significant as it
reinforces this bloc.  It is somewhat an additional step, where
a major country joins a process after leaving CAN.  This must be
understood, not as weakening, but as a breakthrough towards the
South-American Community," Alfredo Fuente, secretary-general of
the Andean Community of Nations or CAN, told the Bolivian daily
El Correo del Sur.

"Venezuela is still important for CAN; the General Secretariat
and member nations make continued efforts to keep unchanged
trade links and brotherhood."

The trade bloc officer chose to view Venezuela's withdrawal from
CAN and incorporation into the Common Market of the South in a
regional context from a different standpoint, that is, as the
building of the South-American Community, El Universal says.

                        *    *    *

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


* VENEZUELA: In Talks with Iran to Create US$200-Million Fund
-------------------------------------------------------------
The governments of Venezuela and Iran are holding talks on the
establishment of a binational fund, El Universal reports, citing
finance vice minister Eudomar Tovar.

The fund, according to ABN news agency, would initially start at
US$200 million and be incremented in the future.

"The National Government is also holding talks with other
countries, and we are willing to execute agreements with every
nation interested in social projects," El Universal quoted the
vice minister as saying.

                        *    *    *

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


* BOOK REVIEW: OIL & HONOR: The Texaco Pennzoil Wars
----------------------------------------------------
Author:     Thomas Petzinger, Jr.
Publisher:  Beard Books
Paperback:  495 Pages
List Price: US$34.95

Order your personal copy at
http://amazon.com/exec/obidos/ASIN/1893122077/internetbankrupt


This is a fun read.  Fun enough to take the beach, although at
500 pages it's a bit hefty to hold up while you lounge in the
sandy towel.  It's got all the elements of great entertainment:
a trainload of money, courtroom melodrama, and a host of
extremely odd characters, including a couple of Texas state
court judges who could make California's Judge Ito look like
Justice Brandeis.  You might even throw in a biblical analogy --
many pundits did -- although for my money Pennzoil chair J. Hugh
Liedtke was a little too wily and a lot too flush to be David-
with-a-slingshot.

Everyone knows the story.  In 1984 Texaco bought Getty Oil for
US$9.98 billion, days after the Getty board had made a handshake
deal with Pennzoil to sell three-sevenths of its assets for a 10
percent lower price per share.  Did Texaco tortuously interfere
with Pennzoil's oral contract, or was Getty free (and in fact
duty-bound) to accept Texaco's higher offer?  I'll leave you
there on the edge of your seat.

Yes, the plot is familiar, but as they say, God is in the
details, and the Pulitzer Prize-winning author, a professional
journalist who covered the trial for the Wall Street Journal,
gives us details aplenty.  He's sieved the most intriguing and
significant facts from a daunting amount of evidence: 50,000
pages of affidavits, hours of video testimony, and 250
interviews.

You'll collect your favorite factoids as you go along.  Mine
have to do with the succession of judges, the first of who had a
close relationship with Pennzoil attorney Joe Jamail, while the
second hadn't read the trial record when he took over the gavel
and made his ignorance of the governing New York law seem almost
a point of pride.

The flamboyant Jamail (who collected US$400 million fee for his
work, of which US$50 million reportedly has been given to
charities) was known previously, the author tells us, for such
feats as convincing a jury that the City of Houston was
negligent for planting a tree that his client ran into while
drunk.  Here, he won the verdict for his client, in part, by
exploiting that shopworn cliche of trial practice -- the local
good old boys versus the big city pinstripes.  Is an oral
agreement in principle a binding contract?  Metaphorically
shrugging, Mr. Jamail told the jury, "Sure looks like a deal to
me."  It worked like a charm.

Engrossing as the deal, trial, and verdict are, the author
offers more.  His first 150 pages provide useful background on
the respective oil empires, and chronicles Getty's history in
detail.

But don't take my word that this book is worth the money.  Read
what the white-shoe critics had to say when this book first came
out in 1987.  "A riveting drama," said the New York Times Book
Review.  "Pure excitement... More fun than flying on corporate
jet," per the Dallas Times Herald, with presumably more
experience in flying on corporate jets than I can claim.  "A
real-life script fit for TV's Dallas... Harold Robbins and
Robert Ludlum let loose in the world of Texas good old boys and
New York takeover specialists," opined the Washington times.

So maybe you'll drop this one into your carry-on bag after all.


                         ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella
Mae Hechanova, and Christian Toledo, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each.  For
subscription information, contact Christopher Beard at 240/629-
3300.


           * * * End of Transmission * * *