TCRLA_Public/060905.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

          Tuesday, September 5, 2006, Vol. 7, Issue 176

                          Headlines

A R G E N T I N A

AGRITECH INVERSORA: Shareholders OK Capital Increase to ARS9MM
BANCO MACRO: Will Create US$400 Mil. Corporate Bond Program
BANINVER SA: Verification of Proofs of Claim Is Until Oct. 6
COMPANIA DE ALIMENTOS: Evaluadora Puts D Rating on US$120M Debt
COSTAS DEL PLATA: Claims Verification Deadline Is on Sept. 28

DALAFER SA: Last Day for Verification of Claims Is Until Oct. 3
LABORATORIO RISU: Trustee Verifies Claims Until Nov. 11
MASTELLONE HERMANOS: Will Commence Debt Buy Back of 11.75% Notes
MEDIOS Y COMUNICACIONES: Claims Verification Is Until Nov. 17
MEGAVINIL SA: Asks for Court Approval to Reorganize Business

PESQUERA GALFRIO: Asks for Court Approval to Restructure Debts
SOCIOS SA: Claims Verification Deadline Is Set for Sept. 29
TRANSENER SA: Fitch Arg Puts D Ratings on Classes A & 3
TRANSPORTADORA DE GAS: Closes US$664 Million Debt Restructuring
TRANSPORTADORA DE GAS: Fitch Assigns B- Issuer Default Rating

EUROMAYOR SA: Fitch Arg Places C Ratings on Three Note Series

B A H A M A S

KERZNER INTERNATIONAL: Completes Going-Private Transaction

B E R M U D A

REFCO INC: Debtors & Trustee Hire UHY Advisors as Tax Experts
REFCO INC: Committee Hires Wildman Harrold as Illinois Counsel

B E L I Z E

* BELIZE: Coming Up with New Accords with Sanitation Firms

B O L I V I A

PETROLEO BRASILEIRO: Bolivia Demands Firm to Pay Gas Tax
YPF SA: Bolivia Demands Parent Firm to Pay Gas Production Tax

* BOLIVIA: Morales Says Gov't Hands Off on Andina Case Probe

B R A Z I L

BANCO BARCLAYS: Moody's Raises Currency Deposit Rating to Ba3
BANCO BMG: Moody's Ups Currency Deposit Rating to Ba3 from B1
BANCO BONSUCESSO: Moody's Ups Currency Deposit Rating to Ba3
BANCO GMAC: Moody's Ups Foreign Currency Deposit Rating to Ba3
BANCO INDUSTRIAL: Moody's Rates US$100 Million Sr. Notes at Ba3

BANCO NACIONAL: Moody's Upgrades Currency Deposit Rating to Ba3
BANCO NACIONAL: Grants BRL9.6 Mln Financing to Coamo Cooperative
BANCO NACIONAL: Okays BRL42.8-Mil. Loan to Set Up Caramuru Plant
BANCO ITAU: Incorporates Shares of Bankboston & Libero Trading
BANCO ITAU: Insurance Division Appoints New President

BANCO PINE: Fitch Assigns B+ on Issuer Default Ratings
BANCO RURAL: Posts BRL3.33 Million First Half 2006 Earnings
COMPANHIA SIDERURGICA: Gets All of Corus Shares in Lusosider
DURA AUTOMOTIVE: Closing Statford Plant & Laying Off 280 Workers
PETROLEO BRASILEIRO: Acquires 50% Stake in Pasadena Ferry

PETROLEO BRASILEIRO: Denies Wrongdoing in Contract with GDK
PETROLEO BRASILEIRO: Moody's Ups Corporate Family Rating to Ba1
USINAS SIDERURGICAS: Deciding on Foreign Partner for New Plant

C A Y M A N   I S L A N D S

CITIGROUP ALTERNATIVE: Proofs of Claim Must be Filed by Sept. 21
DC SCALA: Last Day to File Proofs of Claim Is on Sept. 21
LIBERTYVIEW HEALTH: Last Day to File Proofs of Claim Is Sept. 21
J.P. MORGAN: Creditors Must Submit Proofs of Claim by Sept. 21
JWM PARTNERS: Liquidator Presents Wind up Accounts on Sept. 29

PEAKINVEST CORPORATE: Last Shareholders Meeting Is on Sept. 29
PEAKINVEST FUNDING: Sets Final Shareholders Meeting for Sept. 29
PEAKINVEST HOLDINGS: Final Shareholders Meeting Is on Sept. 29
PEAKINVEST PLANNING: Sets Last Shareholders Meeting for Sept. 29
S.E.C.T.O.R. STRATEGY: Proofs of Claim Must be Filed by Sept. 21

TRISUN OFFSHORE: Last Day to File Proofs of Claim Is on Sept. 30

C H I L E

GERDAU SA: Chilean Unit Creates Program to Back Scrap Recyclers

C O L O M B I A

BANCO DEL ISTMO: Issuing COP5.08 Bil. Shares to Boost Capital
MILLICOM INTERNATIONAL: Expects Big Growth in Colombian Market

C O S T A   R I C A

* COSTA RICA: Gasoline Prices Lower as International Prices Drop

C U B A

* CUBA: Will Ink Industrial Cooperation Accords with Iran

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE LTD: Xstrata Appoints Claude Ferron as COO

* DOMINICAN REPUBLIC: Fuel Prices Drop for 4th Consecutive Week
* DOMINICAN REPUBLIC: Spanish Gov't Okays Debt Restructuring

E C U A D O R

GRAHAM PACKAGING: Has US$507,294 Partners' Deficit as of June 30

G U A T E M A L A

* GUATEMALA: Cruise Ship Terminal to be Built in Santo Tomas

H O N D U R A S

* HONDURAS: Will Decrease Fuel Imports by HNL40 Mil. Next Year

J A M A I C A

KAISER ALUMINUM: Court Approves US$32M Deal with TIG Insurance
KAISER ALUMINUM: Court Signs Amended Order on CNA Insurers Pact
KAISER ALUMINUM: Files June 2006 Files Monthly Operating Report
SUGAR COMPANY: Agriculture Min. Roger Clarke Promises No Layoffs

M E X I C O

AXTEL SA: Moody's Lifts Rating on US$162.5 Mil. Sr. Notes to Ba3
KANSAS CITY SOUTHERN: S&P Affirms B Corporate Credit Rating
MERIDIAN AUTOMOTIVE: Posts US$10.5 Million Net Loss in June 2006
NEWPARK RESOURCES: Shutting Down Newpark Envt'l Operations
NORTEL NETWORKS: Inks UMTS Business Sale Pact With Alcatel

PORTRAIT CORP: Sees 75% Debt Cut Upon Chapter 11 Emergence

P A R A G U A Y

* PARAGUAY: State Bank to Issue PGY156 Billion in Bonds

P E R U

IIRSA NORTE: Fitch Upgrades Series 2006-1 Rating to BB+ from BB

* PERU: Trade Minister Visits US to Continue Free Trade Talks

P U E R T O   R I C O

ADELPHIA COMMS: Files July 2006 Monthly Operating Report

S T.  V I N C E N T  &  T H E  G R E N A D I N E S

TRI-CONTINENTAL EXCHANGE: Court Recognizes Foreign Liquidation

T R I N I D A D   &   T O B A G O

BRITISH WEST: Postpones Meeting with Airline Workers' Unions
BRITISH WEST: Will Close Down by Year-End, Says Workers' Union

U R U G U A Y

* URUGUAY: In Bilateral Trade Talks with US, China & India

V E N E Z U E L A

FERTINITRO FINANCE: Fitch Affirms B- Rating & Removes from Watch


                          - - - - -


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


AGRITECH INVERSORA: Shareholders OK Capital Increase to ARS9MM
--------------------------------------------------------------
Agritech Inversora S.A.'s shareholders approved to raise capital
from ARS4,142,968.71 to ARS9 million.  The company will issue
485,703,129 of ordinary shares, of ARS0.01 of nominal value
each.  The new titles holders will be entitled to vote and
receive dividends.

The directors will have to fix the prime of emission, which will
have a minimum of ARS0.01 pesos per title and a maximum of
ARS0.13.

Agritech Inversora S.A. markets irrigation machines and products
for the farming industry in Argentina.  The Company also grows
crops and invests in farming businesses.

On June 25, 2004, Evaluadora Latinoamericana S.A. Calificadora
de Riesgo maintained its 'D' rating on ARS4.5 million of
corporate bonds issued by Agritech Inversora S.A., according to
Argentina's securities regulator, the Comision Nacional de
Valores.

The rating, which was given based on the Company's financial
status as of March 31, 2004, affected bonds described as
"Primera Serie de obligaciones negociables."  The bonds will
mature on Oct. 5, 2007.


BANCO MACRO: Will Create US$400 Mil. Corporate Bond Program
-----------------------------------------------------------
Banco Macro Bansud SA said in a local stock exchange filing that
it has ratified the creation of a US$400 million corporate bond
program, Business News Americas reports.

Banco Macro told BNamericas that the bonds will be issued in
many tranches and could be issued in US dollars or other
currencies.

Banco Macro previously said that the bonds could have short,
medium or long-term maturities and would be sold at a local
stock exchange and/or abroad, BNamericas relates.

                        *    *    *

On Dec. 13, 2005, Moody's Investors Service affirmed the credit
ratings of Banco Macro:

    -- Bank Financial Strength Rating: E -- Positive Outlook
    -- Long- Term Global Local Currency Deposits: Ba3
    -- Short -Term Global Local Currency Deposits: Not Prime
    -- National Scale Rating for Local Currency Deposits: Aa2.ar
    -- Long -Term Foreign Currency Deposits: Caa1
    -- Short -Term Foreign Currency Deposits: Not Prime
    -- National Scale Rating for Foreign Currency Deposits:
       Ba1.ar.


BANINVER SA: Verification of Proofs of Claim Is Until Oct. 6
------------------------------------------------------------
Rosa Isabel Santos, the court-appointed trustee for Baninver
S.A.'s reorganization proceeding, verifies creditors' proofs of
claim until Oct. 6, 2006.

Ms. Santos will present the validated claims in court as
individual reports on Nov. 20, 2006.  Court No. 11 in Buenos
Aires will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Baninver 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 Baninver's accounting
and banking records will follow on Feb. 5, 2007.

On July 2, 2007, Baninver's creditors will vote on a settlement
plan that the company will lay on the table.

Clerk No. 22 assists the court in the case.

The trustee can be reached at:

         Rosa Isabel Santos
         Avenida Corrientes 6031
         Buenos Aires, Argentina


COMPANIA DE ALIMENTOS: Evaluadora Puts D Rating on US$120M Debt
---------------------------------------------------------------
Evaluadora Latinoamericana assigned a D rating on Compania de
Alimentos Fargo S.A.'s US$120,000,000 debt, due July 24, 2008.
The rating action was based on the company's financial status at
June 30, 2006.


COSTAS DEL PLATA: Claims Verification Deadline Is on Sept. 28
-------------------------------------------------------------
Nelida Grunblatt de Novile, the court-appointed trustee for
Costas del Plata S.A.'s reorganization proceeding, verifies
creditors' proofs of claim until Sept. 28, 2006.

Ms. de Noville will present the validated claims in court as
individual reports on Nov. 10, 2006.  Court No. 17 in Buenos
Aires will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Costas del Plata 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 Costas del Plata's
accounting and banking records will follow on Dec. 26, 2006.

On June 28, 2007, Costas del Plata's creditors will vote on a
settlement plan that the company will lay on the table.

Clerk No. 33 assists the court in the case.

The trustee can be reached at:

         Nelida Grunblatt de Novile
         Felipe Vallese 1195
         Buenos Aires, Argentina


DALAFER SA: Last Day for Verification of Claims Is Until Oct. 3
---------------------------------------------------------------
Jorge Hugo Basile, the court-appointed trustee for Dalafer
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Oct. 3, 2006.

Mr. Basile will present the validated claims in court as
individual reports on Oct. 3, 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 Dalafer 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 Dalafer's accounting
and banking records will follow on Dec. 28, 2006.

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

The trustee can be reached at:

         Jorge Hugo Basile
         J. E. Uriburu 782
         Buenos Aires, Argentina


LABORATORIO RISU: Trustee Verifies Claims Until Nov. 11
-------------------------------------------------------
Bernardino Margolis, the court-appointed trustee for Laboratorio
Risu S.A.'s insolvency case, verifies creditors' proofs of claim
until Nov. 11, 2006.

Under Argentine bankruptcy law, Mr. Margolis is required to
present the validated claims in court as individual reports.
Court No. 15 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 Laboratorio Risu and
its creditors.

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

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

On July 3, 2007, Laboratorio Risu's creditors will vote on a
settlement plan that the company will lay on the table.

Clerk No. 29 assists the court in the case.

The debtor can be reached at:

         Laboratorio Risu S.A.
         Parana 567
         Buenos Aires, Argentina

The trustee can be reached at:

         Bernardino Margolis
         Parana 426
         Buenos Aires, Argentina



MASTELLONE HERMANOS: Will Commence Debt Buy Back of 11.75% Notes
----------------------------------------------------------------
Mastellone Hermanos S.A. announced a debt buy-back program for
its 11.75% Obligaciones Negociables issued on March 1998 and
will become due on April 1, 2008.  From the US$225,000,000
originally issued, only US$51,000 remains in circulation.

The repurchase will be done in accordance with the contract at
the time when the emission of the Obligaciones Negociables took
place, agreed between Mastellone, the Bank of New York and Banco
Rio de la Plata.

Mastellone informed said that the repurchase will start on
Sept. 29, 2006.

The repurchase will done at:

         The Bank of New York
         101 Barclay Street 21 W
         New York, NY 10286
         USA
         Tel: +1 212 815-5206
         Fax: +1 212 815-5802/03

               -- and --

         Banco Rio de la Plata S.A.
         Bartolome Mitre 480
         1036 Ciudad de Buenos Aires
         Argentina
         Tel: 011 4341-1013
         Fax: 011 4 341-2827

The total amount to be paid for the total rescue of the
Obligaciones Negociables will be US$1 for every US$1 of capital,
plus an annual interest rate of 11.75% since the last date of
the payment of interests in cash.

                        *    *    *

As previously reported on Aug. 25, 2006, Mastellone Hermanos
S.A.'s Obligaciones Negociables for US$7,091,000, from
originally US$225 million, is rated raD by Standard and Poor's.
The rating action was based on the company's financial status at
June 30, 2006.


MEDIOS Y COMUNICACIONES: Claims Verification Is Until Nov. 17
-------------------------------------------------------------
Gabriel Vulej, the court-appointed trustee for Medios y
Comunicaciones S.A.'s bankruptcy case, verifies creditors'
proofs of claim until Nov. 17, 2006.

Under Argentine bankruptcy law, Mr. Vulej is required to present
the validated claims in court as individual reports.  Court No.
24 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 Medios y Comunicaciones and
its creditors.

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

Mr. Vulej will also submit a general report that contains an
audit of Medios y Comunicaciones' accounting and banking
records.   The report submission dates have not been disclosed.

Medios y Communicaciones was forced into bankruptcy at the
request of Veronica Ferreyra Ceresetto, whom it owes
US$25,706.47.

Clerk No. 48 assists the court in the proceeding.

The debtor can be reached at:

         Medios y Comunicaciones S.A.
         Tucuman 1455
         Buenos Aires, Argentina

The trustee can be reached at:

         Gabriel Vulej
         Tucuman 1484
         Buenos Aires, Argentina


MEGAVINIL SA: Asks for Court Approval to Reorganize Business
------------------------------------------------------------
Court No. 3 in Buenos Aires is studying the merits of Megavinil
s.A.'s petition to reorganize its business after it stopped
paying its debts on Aug. 23, 2006.

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

Clerk No. 5 assists the court in the proceeding.

The debtor can be reached at:

         Megavinil S.A.
         Medrano 1645
         Buenos Aires, Argentina


PESQUERA GALFRIO: Asks for Court Approval to Restructure Debts
--------------------------------------------------------------
Court No. 14 in Buenos Aires is studying the merits of Pesquera
Galfrio S.A.'s petition to restructure its debt after it stopped
paying its debts since Dec. 2005.

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

Clerk No. 27 assists the court in the case.

The debtor can be reached at:

         Pesquera Galfrio S.A.
         Avenida Julio A. Roca 610
         Buenos Aires, Argentina


SOCIOS SA: Claims Verification Deadline Is Set for Sept. 29
-----------------------------------------------------------
Miguel Angel Loustau, the court-appointed trustee for Socios
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Sept. 29, 2006.

Mr. Loustau will present the validated claims in court as
individual reports on Nov. 13.  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 Socios 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 Socios's accounting
and banking records will follow on Dec. 26, 2006.

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

The trustee can be reached at:

         Miguel Angel Loustau
         Viamonte 993
         Buenos Aires, Argentina


TRANSENER SA: Fitch Arg Puts D Ratings on Classes A & 3
-------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. rated Transener
S.A.'s debts at:

   -- Obligaciones Negociables Class 3 for US$1,300,000, D

   -- Obligaciones Negociables Class 6, at same price, with
      public offer of up to US$100,000,000, BBB

   -- Obligaciones Negociables Class 7, with discount, public
      offer, for up to US$245,000,000, BBB-

   -- Obligaciones Negociables Class A for US$822,000, D

   -- Obligaciones Negociables Class B for US$3,100,000, amount
      in circulation: US$1,395,000, BBB-

The rating action was based on the company's financial status at
June 30, 2006.


TRANSPORTADORA DE GAS: Closes US$664 Million Debt Restructuring
---------------------------------------------------------------
Transportdora de Gas del Norte completed its US$664 million debt
restructuring on Aug. 31, 2006, and obtained a 99.94% acceptance
rate, Dow Jones Newswire reports.  The restructuring was
launched on Aug. 3, 2006.

"In view of this, TGN is disposed to complete the swap privately
with consenting creditors," the company told Dow Jones during a
brief filing with the Buenos Aires Stock Exchange.

TGN did not disclose an update on its debt profile after the
completed restructuring, but the company assured that it will be
carried out as previously declared.

As previously reported in the Troubled Company Reporter-Latin
America reported on Aug. 8, 2006, the International Finance
Corp. or IFC has agreed to the debt swap, authorizing US$161.80
million backed certificates to be included in the restructuring.
It has also reached "support accords" for the deal with
creditors holding 47.53% of the outstanding debt.

"The support accords and the IFC's consent together represent
80.02% of our total outstanding amount," TGN told Dow Jones.

As reported, TGN, in exchange for outstanding debt, is offering:

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

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

According to Dow Jones, the need to restructure primarily
resulted from the Argentine 2002 economic crisis, when the
government was prompted to exchange rates from dollars to
devalued pesos.  The move greatly affected TGN and other
companies, which were consequently burdened with lower income in
pesos and large foreign-denominated obligations.

Transporatdora de Gas del Sur aka TGS, TGN's counterpart, was
also forced to restructure its debt amounting to US$1.02 billion
last year, Dow Jones relates.  The company got a 99.76% rate
acceptance from its financial creditors.

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

                        *    *    *

Fitch Ratings assigned on Aug. 31, 2006, 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.


TRANSPORTADORA DE GAS: Fitch Assigns B- Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings assigned a 'B-' long-term foreign and local
currency Issuer Default Rating to Transportadora de Gas del
Norte S.A.

Fitch 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.


EUROMAYOR SA: Fitch Arg Places C Ratings on Three Note Series
-------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. assigned C ratings
on Euromayor S.A. de Inversiones' three notes:

   -- Obligaciones Negociables Serie I peso-class for
      US$6,799,800

   -- Obligaciones Negociables Serie I dollar-class for
      US$3,073,200

   -- Obligaciones Negociables dollar-class for US$3,078,183

The rating action was based on the company's financial status at
June 30, 2006.




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


KERZNER INTERNATIONAL: Completes Going-Private Transaction
----------------------------------------------------------
Kerzner International Limited, through its subsidiaries a
leading international developer and operator of destination
resorts, casinos and luxury hotels, completed the going-private
transaction approved on Aug. 28, 2006, at an extraordinary
general meeting of the Company's shareholders.  As a result of
the transaction, each issued and outstanding ordinary share of
the Company was cancelled and converted automatically into the
right to receive US$81.00 in cash, without interest.

The transaction was led by the Company's Chairman, Sol Kerzner,
and its Chief Executive Officer, Butch Kerzner, and an investor
group including Istithmar PJSC, Whitehall Street Global Real
Estate Limited Partnership 2005, Colony Capital LLC, Providence
Equity Partners, Inc., and The Related Companies, L.P.

Shareholders of the Company who have stock certificates in their
possession will receive instructions by mail from The Bank of
New York, the paying agent, concerning how and where to forward
their certificates for payment.

In connection with the transaction, the Company and its wholly
owned subsidiary, Kerzner International North America, Inc.,
tendered to purchase and solicited consents relating to all of
their outstanding 6 3/4% Senior Subordinated Notes due 2015, and
received tenders and consents with respect to approximately
98.7% of the aggregate outstanding principal amount of their
notes.  The Company and KINA have accepted for payment all of
the tenders and consents received.

Kerzner International Limited -- http://www.kerzner.com--  
through its subsidiaries, is a leading international developer
and operator of destination resorts, casinos and luxury hotels.
The company's flagship brand is Atlantis, which includes
Atlantis, Paradise Island, a 2,317-room, ocean-themed
destination resort located on Paradise Island, The Bahamas -- a
unique property featuring three interconnected hotel towers
built around a seven-acre lagoon and a 34-acre marine
environment that includes the world's largest open-air marine
habitat.  The resort is also home to the largest casino in the
Caribbean.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2006, Standard & Poor's Ratings Services said that its
ratings on Kerzner International Ltd., including its 'BB-'
corporate credit rating, remain on CreditWatch with negative
implications where they were placed on March 20, 2006, following
Kerzner's announcement that the company would be acquired by a
private investor group led by the company's Chairman, Sol
Kerzner, and its Chief Executive Officer, Butch Kerzner.




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


REFCO INC: Debtors & Trustee Hire UHY Advisors as Tax Experts
-------------------------------------------------------------
Refco, Inc., its debtor-affiliates and Marc S. Kirschner, the
court-appointed trustee for Refco Capital Markets, Ltd.,
obtained authority from the U.S. Bankruptcy Court for the
Southern District of New York to formally employ UHY Advisors
NY, Inc., and its affiliated entities as their tax advisors,
nunc pro tunc to Feb. 3, 2006.

As reported in the Troubled Company Reporter on Aug. 8, 2006,
the Debtors and the RCM Trustee believe that UHY, being the 14th
largest accounting firm of tax and business consultants in the
United States with an extensive network of affiliated firms
internationally, possesses expertise and knowledge to provide
services.

According to the Debtors, UHY will perform these necessary
services:

   (a) preparation, review and filing of federal, state and
       local tax returns and any amended returns, corresponding
       schedules, related documents, including any extensions of
       time to file tax returns as well as complex technical
       analysis of various issues and formulation of
       recommendations to the Debtors and the RCM Trustee;

   (b) attendance and assistance with meetings and examinations
       with Internal Revenue Service, international or state and
       local tax authorities, the executive management team at
       Refco, Inc., the Chapter 11 and Chapter 7 trustees for
       RCM and Refco, LLC;

   (c) advice and assistance regarding transaction taxes, state
       and local sales and use taxes, and audits;

   (d) assembly and compilation of information necessary to
       prepare tax returns;

   (e) accounting, auditing and bookkeeping services;

   (f) review and assistance with any international tax-related
       issues and documents;

   (g) tax consulting and strategy services relating to several
       complex transactions;

   (h) consulting services relating to treatment of transactions
       for financial reporting purposes in accordance with GAAP;

   (i) assistance with organizing and cataloging the Debtors'
       books and records; and

   (j) performance of other tax-related services and accounting
       and audit-related services that are mutually agreed on by
       the Debtors, the Trustee and UHY.

The Debtors assure the Bankruptcy Court that UHY's services will
not result in unnecessary duplication of efforts in their
bankruptcy cases.

In accordance with an order authorizing the Debtors to employ
and compensate professionals used in ordinary course, payments
are subject to Court approval if they exceed US$50,000 in any
month, or exceed an aggregate of US$500,000 in the Debtors'
cases.

The Debtors' payments to UHY have not exceeded these caps as of
July 14, 2006.

Under an engagement letter with the Debtors and the RCM Trustee,
UHY agreed to fix its professional fee at US$400,000, along with
a US$50,000 retainer, for services relating to preparation of
certain partnership and Corp. tax returns.  Specific services
that are encompassed in the fixed fee are:

     Fee        Service
     ---        -------
   US$150,000   New Refco Group Ltd. LLC Partnership Returns for
                short year Jan. 1, 2005, to Aug. 10, 2005;
                and

   US$250,000   Refco Inc. Corporate Tax Returns for tax year
                starting Aug. 11, 2005, to June 30, 2006.

The fixed fee does not include any accounting, bookkeeping or
other support services necessary to prepare the returns.

For other services, UHY's standard hourly rates range from
US$150 for first year staff to US$550 for managing directors.
It is UHY's policy to adjust rates periodically to reflect
economic and other conditions.

Consistent with its policy with respect to its other clients,
UHY will bill for other charges and disbursements incurred,
including costs for long distance telephone usage, photocopying,
travel, messengers, computer usage and postage.

As of July 20, 2006, UHY has received US$200,000 from the
Debtors.  UHY will then apply to the Court for allowance of
compensation for professional services rendered and
reimbursement of expenses incurred in the Debtors' cases.
However, services subject to the fixed fee arrangement will be
subject to the jurisdiction and approval of the Court and the
U.S. Trustee under Section 328(a) of the Bankruptcy Code.

Michael Greenwald, managing director of UHY, attests that the
firm:

   (i) does not have any connection with the Debtors or any
       other party-in-interest;

  (ii) is a "disinterested person," as that term is defined in
       Section 101(14); and

(iii) does not hold or represent any interest adverse to the
       Debtors' estates.

                      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: Committee Hires Wildman Harrold as Illinois Counsel
--------------------------------------------------------------
The Official Committee of Unsecured Creditors of Refco Inc., and
its debtor-affiliates obtained authority from the U.S.
Bankruptcy Court for the Southern District of New York to retain
Wildman Harrold Allen & Dixon, LLP, as its Illinois counsel for
the Motion to Compel, nunc pro tunc to July 14, 2006.

                     Motion to Compel

The Committee served in Dec. 2005 a subpoena for Rule 2004
examination on Tone Grant, along with a Court-approved schedule
of documents to be produced.  To cure a defect in service, the
Creditors Committee again served the Subpoena on Mr. Grant in
Jan. 2006.

Mr. Grant is the former president and chief executive officer of
Refco Inc.'s predecessor and owns 50% of Refco Group Holdings,
Inc., which is the center of alleged fraudulent conduct
involving concealment of an uncollectible receivable
precipitating the Debtors' bankruptcy.

Notwithstanding his integral involvement with Refco and RGHI,
Mr. Grant refuses to comply fully with the Subpoena served on
him by the Creditors Committee.

Subsequently, the Committee asked the Bankruptcy Court to compel
Mr. Grant's compliance with the Subpoena, which was issued from
the Northern District of Illinois that requires designation of
local counsel in a specific circumstance.

                 Wildman Harrold Retention

The Creditors Committee believes that Wildman Harrold has
extensive experience and knowledge in the field of creditors'
rights and bankruptcy law, and that the firm is well qualified
to represent the Committee.

Specifically, Wildman Harrold will:

   (a) serve as designated local counsel for the Committee in
       the Illinois Northern District, as required by Northern
       District of Illinois Local Bankruptcy Rule 2090-4;

   (b) receive service of notices, pleadings, and other
       documents related to the Motion to Compel, and promptly
       notify the Committee of their receipt and contents;

   (c) appear, in emergencies, on the Committee's behalf in the
       Illinois Northern District in proceedings related to the
       Motion to Compel; and

   (d) advise the Committee with respect to all aspects of state
       and federal law in Illinois relevant to the Motion to
       Compel.

Wildman Harrold's current hourly rates range from US$335 to
US$565 for partners, US$200 to US$380 for associates, and US$150
to US$190 for paralegals, subject to periodic firm-wide
adjustments in ordinary course of Wildman's business.  The
Illinois counsel also intends to apply to the Bankruptcy Court
for payment of compensation and reimbursement of expenses.

John A. Roberts, a partner at Wildman Harrold, attests that the
firm does not represent any other entity having an adverse
interest in connection with the Debtors' Chapter 11 cases.

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


* BELIZE: Coming Up with New Accords with Sanitation Firms
----------------------------------------------------------
The Belize City Council are trying to come up with new proposals
with sanitation firms to resolve the conflict between the two
parties regarding the Council's failure to meet payments to the
companies, Love FM reports.

As reported in the Troubled Company Reporter-Latin America on
Sept. 4, 2006, the 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.  The firms have stopped city
cleanup and garbage collection.

Belize City Mayor Zenaida Moya told Love FM, "We had a meeting
with the different sanitation companies during this week and we
discussed ways to be able to pay them in a sustainable manner
and then be able to continue the works in terms of ensuring
proper upkeep of the city.  And I must say that was a very good
meeting and we asked both parties to submit proposals where by
we can work within what we can currently pay out as a council.
And what they will be able to give us in terms of services for
that amount, they have submitted their proposals.  We are to
have further meetings just to review that matter that definitely
will be done by Sunday morning and then we will present that to
them for them to approve or not then the council will also be
submitting in terms of the proposals that they had submitted and
then we will be able to decide on that so that is the situation
we are at right now, negotiations and all and proposals."

Mayor Moya said that the agreements are expected to be finalized
this week.  It would be determined what the firms would be doing
for the residents of Belize City and what the Council will be
accepting to do on behalf of the residents, Love FM 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 O L I V I A
=============


PETROLEO BRASILEIRO: Bolivia Demands Firm to Pay Gas Tax
--------------------------------------------------------
The government of Bolivia demanded that Petroleo Brasileiro SA
aka Petrobras, the state-run oil company of Brazil, pay a gas
production tax or be forced to stop its operations in the
nation, Dow Jones Newswires reports.

Dow Jones relates that Bolivia's President Evo Morales increased
that production tax on the nation's two largest natural gas
fields to 82% from 50% as part of the nationalization decree
disclosed on May 1.

According to Dow Jones, Petrobras -- along with France's Total
SA and Spain's Repsol YPF -- had until Friday to pay a combined
US$30 million.

The US$30 million represents the first of five payments the
firms will need to pay by Oct. 2, when the last payment is due.
The second payment will be on Sept. 11, Dow Jones reports.

Meanwhile, Repsol sources in Spain told Spanish news agency
Europa Press that the firm wasn't officially notified about the
payment.

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 Brazil.

                        *    *    *

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: Bolivia Demands Parent Firm to Pay Gas Production Tax
-------------------------------------------------------------
The government of Bolivia has demanded that Repsol, the parent
company of YPF SA, pay a gas production tax or be forced to halt
its operations in the nation, according to a report by El Pais.

Dow Jones Newswires relates that Bolivia's President Evo Morales
increased that production tax on the nation's two largest
natural gas fields to 82% from 50% as part of the
nationalization decree disclosed on May 1.

According to Dow Jones, Repsol -- along with France's Total SA
and Brazil's Petroleo Brasilero -- had until Friday to pay a
combined US$30 million.

The US$30 million represents the first of five payments the
firms will need to pay by Oct. 2, when the last payment is due.
The second payment will be on Sept. 11, Dow Jones reports.

Repsol sources in Spain told Spanish news agency Europa Press
that the firm wasn't officially notified about the payment.

                        *    *    *

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

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

Moody's affirmed these five ratings:

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

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

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

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

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


* BOLIVIA: 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 proper authorities knew about
the contract.

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.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO BARCLAYS: Moody's Raises Currency Deposit Rating to Ba3
-------------------------------------------------------------
Moody's Investors Service upgraded Banco Barclays 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.  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 BMG: Moody's Ups Currency Deposit Rating to Ba3 from B1
-------------------------------------------------------------
Moody's Investors Service upgraded Banco BMG 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.  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 BONSUCESSO: Moody's Ups Currency Deposit Rating to Ba3
------------------------------------------------------------
Moody's Investors Service upgraded Banco Bonsucesso 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.  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 GMAC: Moody's Ups Foreign Currency Deposit Rating to Ba3
--------------------------------------------------------------
Moody's Investors Service upgraded Banco GMAC 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 INDUSTRIAL: Moody's Rates US$100 Million Sr. Notes at Ba3
---------------------------------------------------------------
Moody's Investors Service assigned a Ba3 long-term foreign
currency rating to Banco Industrial e Comercial S.A. aka
BICBANCO's US$100,000,000 senior unsecured notes, with final
maturity in 2009.  The outlook on the rating is stable.

Moody's stated that the Ba3 rating incorporates BICBANCO's
fundamental credit quality, which is reflected by its Ba3 global
local-currency deposit rating and which includes all relevant
country risks.  At this rating level, BICBANCO's foreign
currency bond rating is unconstrained by Brazil's country
ceiling.

BICBANCO is headquartered in Sao Paulo, Brazil with
BRL6.6billion (US$3 billion) in total assets and BRL552million
(US$260million) in equity as of June 2006.


BANCO NACIONAL: Moody's Upgrades Currency Deposit Rating to Ba3
---------------------------------------------------------------
Moody's Investors Service upgraded Banco Nacional de
Desenvolvimento Economico e Social S.A. aka BNDES' 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 NACIONAL: Grants BRL9.6 Mln Financing to Coamo Cooperative
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a financing of BRL9.6 million to Coamo Agroindustrial
Cooperativa, in the ambit of the Cooperative Development Program
for the Addition of Value to Farming Production or Prodecoop.
Total investment will be BRL13.8 million, and Coamo will invest
about BRL4.2 million from its own resources.

The operation is used to expand the storage of agricultural
products and increase the unloading and processing capacity of
cereals in seven municipalities of the State of Parana, in
addition to modernizing the high-pressure boiler that produces
energy in Campo Mourao plant, also in the State of Parana.

In recent years, Coamo became the leading production cooperative
in Latin America, with net revenue of BRL billion in 2005 and
exports of US$356 million.  It almost has 20,000 members, of
which 64% are micro or small producers.  They are supplied with
basic inputs, agricultural machinery and implements, in addition
to agronomic, technical and social assistance, offered by a team
of 170 experts.

Coamo's nominal storage capacity is 3.3 million tons.  After the
project financed by BNDES the storage capacity of grains will be
increased by about 34,500 tons, while the storage of inputs will
be expanded by 8,400 tons.

The project is especially relevant, because the receiving and
processing of grains also improves Coamo's logistics.  By
maintaining the storage next to producers, the cooperative
reduces transportation costs and avoids the increase in expenses
from leasing outsourced silos, making its products more
competitive both in the domestic and foreign markets.

In order to increase improvement in production, Coamo develops
its own technology, maintaining an experimental farm using an
area of 200 hectares, to hold researches on chemical products,
machinery and new techniques to produce soy, wheat, cotton,
coffee and triticale (wheat and rye).  In addition, its experts
operate in partnership with public and private institutions,
such as the Brazilian Company of Farming Research or Embrapa,
the Central Cooperative of Technological and Economic
Development or Coodetec and several universities.

One of the main characteristics of Coamo is the diversity in its
operating areas.  In order to improve the quality of
plantations, for instance, the cooperative produces 60,000
tons/year of soy, wheat and oat seeds.

Coama has 93 units for receiving and shipping agricultural
products and inputs, located in 53 municipalities of the States
of Parana, Santa Catarina and Mato Grosso do Sul.  It also has
two soy crushing plants in the State of Parana, in the
Municipalities of Campo Mourao and Paranagua, each with a
processing capacity of 2,000 tons/day.

In Campo Mourao, Coamo also maintains:

   -- a soy oil refinery, with potential to produce
      350 tons/day;

   -- a hydrogenated margarine and fat plant, which may produce
     up to 120 tons/day;

   -- a cotton spinning mill, certificated by ISO 9000 for
      20 tons/day; and

   -- a wheat mill, with potential to produce 30 tons/day of
      flour.

In addition, the cooperative outsources the operation of two
more soy crushing plants, with total capacity of 1,380 tons/day;
a soy oil refinery, which processes 60 tons/day; and a wheat
mill, which produces 80 tons/day of flour.

                        *    *    *

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


BANCO NACIONAL: Okays BRL42.8-Mil. Loan to Set Up Caramuru Plant
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a BRL42.8 million financing to Caramuru Alimentos.  The
resources will be used for the construction of an industrial
unit for the production of biodiesel, using soil oil as its main
input.

Caramuru's factory will have a production-installed capacity of
100,000 tons of biodiesel p.a. and will be constructed at the
side of Caramuru's soil processing facilities, in Sao Simao.

"The enterprise, which already produces soy oil, will also now
construct a biodiesel plant, using soy grain as its raw
material", explained Pres. Lula, who highlighted the generation
of jobs from this initiative.

Investments supported by BNDES meet the Federal Government's
target of spurring the biodiesel production.  The program aims
at diversifying the Brazilian energy matrix, generating job and
income and reducing diesel imports, currently about 5% out of
the total consumed in Brazil, which amounts 40 billion liters
p.a.

Caramuru's project is in accordance with the government's
program with a contribution to supply the growing demand for
biodiesel in the domestic market by 2008 as one of its main
objective.  When this becomes effective, Caramaru is obliged in
adding 2% of biodiesel in all traded diesel in Brazil.
Caramuru's unit will respond to roughly 8% of the domestic
demand forecast for 2008, which amounts to 840 million liters of
biodiesel.

Currently, BNDES has, in its portfolio, six biodiesel investment
projects amounting to BRL256 million, equivalent to a 580
million-liter production capacity.  Besides Caramuru, other two
operations have already been approved:

   -- BSBIOS with a BRL28.7 million investment for a 100
      million-liter production capacity, and

   -- Bertin, with a BRL14.6 million financing for a 115
      million-liter production capacity.

Caramuru obtained the Social Eligibility, the first phase for
the acquisition of Selo Combustível Social or Social Fuel Seal,
from the Ministry of Agrarian Development and set conditions for
industrial manufacturers of biodiesel to obtain reduction in the
aliquot of federal taxes.  To receive incentive, the
manufacturer shall acquire minimum volumes of raw material from
family farmers, besides setting agreement with income and term
specification and guaranteeing technical assistance and
qualification.

Caramuru will obtain the MDA Seal if it acquires at least 10% of
raw material for biodiesel production from family farmers, an
initiative that will generate roughly 300 indirect jobs.
Caramuru's unit shall generate about 50 direct jobs.

The supplement of vegetal oil for Caramuru's unit will come from
its processing facility in Sao Simao.  One ton of vegetal oil is
necessary for each ton of biodiesel to be produced.  The
production capacity utilization will take place gradually, by
beginning with 50% of the installed capacity in 2007 and
stabilizing in 90% in 2011.

Caramuru Alimentos Ltda., controlled by Caramuru Group,
operates, especially, in the crushing of soy and sunflower and
in the refining of oil and other derivates.  Besides the unit in
Sao Simao, the company has facilities in Itumbiara, Apucarana,
Petrolina and Fortaleza.  The Group has approximately 2,131
employees, of whom 1,710 work in Caramuru Alimentos.

                        *    *    *

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 ITAU: Incorporates Shares of Bankboston & Libero Trading
--------------------------------------------------------------
Banco Itau Holding Financiera S.A. disclosed the decisions made
during its extraordinary shareholder meeting on Aug. 25, 2006.
The company has decided on the following:

   a) the approval of the incorporation of the total shares
      representing the capital stock of the corporations,
      BankBoston Banco Multiplo S.A. (to be denominated Banco
      ItauBank S.A.) and Libero Trading International Ltd.,
      converting them into its wholly owned subsidiaries; this
      incorporation of shares shall be effective from
      September 1, provided that all the conditions in the
      Agreement signed on May 1, 2006, have been complied with;

   b) the consequent increase in capital stock from
      BRL8,300,000,000.00 to BRL12,881,120,000.00, through the
      issue of 68,518,094 new preferred book entry shares,
      subscribed in the name of the stockholders of BankBoston
      Banco Multiplo S.A. and Libero Trading International Ltd.;

   c) the alteration to the wording in the caption sentence to
      Article 3 of the corporate bylaws to register the new
      value of the capital stock and its division into shares;
      and

   d) the establishment of two vacant seats on the Board of
      Directors.

On Aug. 22, 2006, the Central Bank of Brazil authorized Banco
Itau Holding Financeira S.A.'s acquisition of BankBoston in
Brazil from the Bank of America Corporation.  The acquisition
was officially concluded during the Extraordinary General
Meeting of Itau's stockholders on Aug. 25.

"The Central Bank's authorization crowns two years of
negotiations. With this acquisition, Itau not only assures its
leadership among private sector institutions in asset management
but also in custody services and in the large corporate and high
income private individual markets", said Roberto Setubal, Itau's
Chief Executive Officer.

Itau will maintain BankBoston's branch network as well as the
service team, assuring customers continuity in the quality and
efficiency with which BankBoston provides specialized services
to the high-income private individual segment.  "BankBoston's
customers will continue to be served by the same branches and
the same teams.  Following the integration with the Itau
Personnalite network, they will also enjoy the full advantages
offered by Itau," Mr. Setubal adds.

Itau is also awaiting authorization from the regulatory
authorities in Chile and Uruguay for confirmation of the
acquisition of BankBoston's operations in these two countries.

Following the acquisition of these three operations, BAC will
take a shareholding stake of approximately 7.4% in Itau's total
capital stock, thereby maintaining a presence in the region
through a significant equity investment as well as indicating a
member to Itau's Board of Directors.

                      About BankBoston

BankBoston is one of the 10 largest banks in Argentina in terms
of assets, deposits and loans and it ranks among the top five
private banks.  It operates through 89 branches and has assets
of US$2.5 billion.

                     About Banco Itau

Banco Itau currently has 51 thousand employees serving more than
16 million clients, through its network of 2,391 branches and 22
thousand ATMs.

                        *    *    *

As reported in the Troubled Company Reporter on March 9, 2006,
Standard & Poor's Ratings Services assigned a 'BB' currency
credit rating on Banco Itau S.A.

                        *    *    *

Fitch affirmed on Aug. 28, 2006, the ratings of the Itau Group
of banks and the National Long- and Short-term ratings of
BankBoston Banco Multiplo S.A. and its subsidiary, BankBoston
Leasing S.A. -- Arrendamento Mercantil (BankBoston Leasing).
This followed the conclusion of the agreement between Banco Itau
Holding Financeira with Bank of America Corp. to acquire BAC's
Brazilian operations (spearheaded by BKB) and its Latin American
subsidiaries.  Central Bank of Brazil approved the BKB
transaction on Aug. 22, 2006, and the acquisition of the local
subsidiaries of BAC is contingent on approval by the Chilean and
Uruguayan regulatory authorities.

The affected ratings of Banco Itau were:

   Banco Itau Holding Financiera

      -- Foreign currency IDR affirmed at 'BB+', Stable Outlook

      -- Short-term foreign currency rating affirmed at 'B'

      -- Local currency IDR affirmed at 'BBB-' (BBB minus),
         Stable Outlook

      -- Short-term local currency rating affirmed at 'F3'

      -- Individual rating affirmed at 'B/C'

      -- National Long-term rating affirmed at 'AA+(bra)',
         Stable Outlook

      -- National Short-term rating affirmed at 'F1+(bra)'

      -- Support rating affirmed at '4'


BANCO ITAU: Insurance Division Appoints New President
-----------------------------------------------------
Itau Seguros, the insurance division of Banco Itau Holding
Financeira SA, has appointed Osvaldo do Nascimento as its new
head, according to a report by local financial daily Gazeta
Mercantil.

Mr. Nascimento will take the place of Luiz de Campos Salles, who
left Itau Seguros in April, according to Gazeta.

According to the report, Ruy Moraes Abreu had served as interim
head of Itau Seguros.  He has become the head of Itau XL Seguros
Corporativos -- a joint venture with Bermudan insurance group XL
Capital.

Mr. Nascimento is also the president of national private pension
association Anapp.

Banco Itau currently has 51 thousand employees serving more than
16 million clients, through its network of 2,391 branches and 22
thousand ATMs.

                        *    *    *

As reported in the Troubled Company Reporter on March 9, 2006,
Standard & Poor's Ratings Services assigned a 'BB' currency
credit rating on Banco Itau S.A.


BANCO PINE: Fitch Assigns B+ on Issuer Default Ratings
------------------------------------------------------
Fitch Ratings assigned these ratings to Banco Pine S.A.:

   -- Long-term foreign and local currency Issuer Default
      Rating: 'B+';

   -- Short-term foreign and local currency rating: 'B'; and

   -- Individual Rating 'D'.

At the same time, Fitch affirms the bank's other ratings as:

   -- National long-term: 'BBB(bra)';
   -- National short-term: 'F3(bra)';
   -- Support '5'.

The Rating Outlook for the IDRs and National long-term rating is
Stable.

The ratings consider Pine's track record of satisfactory
profitability, adequate liquidity and capitalization ratios --
despite a history of large dividend distributions -- and a
reasonably diversified loan portfolio, given its lower
dependence on consignment lending compared with its local peers.
The ratings also reflect the success of the bank's shareholder
reorganization and strategy of activity diversification, while
maintaining risks under control.  On the other hand, the ratings
reflect Pine's lower reserve coverage compared with its peers
and the asset and liability concentrations typical of a small
niche bank which make it is more susceptible than the larger
banks to economic fluctuations.

With the effects of the November 2004 liquidity crisis virtually
remedied, Pine was able to increase its deposits at end-2005.
This was in addition to successfully tapping other sources of
funding through the loan assignment agreement with Banco
Bradesco S.A., international issues, receivables-backed funding
and assignments to other banks, enabling better management of
its assets and liabilities.  Similar to other Brazilian banks,
Pine has been increasing its loans to compensate for a fall in
margins due to a decline in domestic interest rates. However,
the bank continues to have a low, though improving, volume of
reserve coverage and loan concentrations that could compromise
the quality of its assets.  Partially mitigating this concern,
the bank maintains the policy of securitizing problem loans to a
company linked to the group.

The Stable Outlook reflects Fitch's expectation that Pine will
maintain its capitalization and liquidity ratios as well as the
maintenance of the higher coverage levels evident in recent
results over the medium term.  Conversely, continued cost
pressures and/or deterioration in asset quality ratios could
negatively affect the bank's ratings.

Pine, a small multiple bank, was the 44th largest Brazilian bank
in assets in March 2006, focusing its activities on lending to
medium-sized companies secured by receivables and consignment
lending to civil servants.  Headquartered in Sao Paulo, Pine was
established in 1997 by brothers Noberto and Nelson Pinheiro
after the sale of their participations in Banco BMC S.A. in 1996
for succession reasons.  In the first half of 2005, Noberto
Pinheiro acquired Nelson Pinheiro's holdings, becoming the
bank's majority shareholder.


BANCO RURAL: Posts BRL3.33 Million First Half 2006 Earnings
-----------------------------------------------------------
Banco Rural SA recorded BRL3.33 million profits in the first
half of 2006, local financial daily Valor Economico reports.

According to Valor Economico, it is Banco Rural's first profit
since the end of 2004.

Business News Americas relates that Banco Rural reported net
losses of almost BRL130 million in the first half of 2005.
Before the end of 2005, the bank incurred a loss of BRL322
million.

Banco Rural's earnings in the first half of 2006 was due to an
aggressive restructuring plan launched at the end of August
2005, BNamericas notes.  Under the plan, over 90 branches were
shut down and about 1,300 workers were dismissed.  Banco Rural
also sold its airplanes.

BNamericas underscores that Banco Rural's operating revenue in
the first half of 2006 remained at BRL3.79 million, although
considerably better than the BRL173-million loss in the first
half of 2005.

Valor Economico emphasizes that the non-operating revenue of
Banco Rural benefited from the sale of the airplanes.  The
revenue totaled BRL6.14 million in the first half of 2006,
allowing the company to report a net profit.

Banco Rural's lending, says BNamericas, fell 54% to BRL1.30
billion at the end of June 2006, compared with BRL2.82 billion
at the end of June 2005.  Deposits decreased 50.2% to BRL411
million.

Valor Economico states that with the restructuring plan
complete, Banco Rural now expects to return to the bond market
to raise funds for middle market, payroll and retirement loans.

Banco Rural first felt pressure after the failure of Banco
Santos led to a liquidity crisis in 2004.  While still
recovering from the loss from the latter's affair, Banco Rural
was involved in a big government bribery scandal in 2005.  After
lengthy congressional probes, independent federal prosecutors
filed charges of fraud, money laundering and falsifying
information in May against Katia Rabello -- Banco Rural's
president -- and several of the bank's directors, according to
BNamericas.

                        *    *    *

As reported by Troubled Company Reporter on Feb. 20, 2006,
Moody's Investors Service has withdrawn all of its ratings for
Banco Rural S.A. for business reasons.  Moody's stressed this
action does not reflect a change in Banco Rural's
creditworthiness.

The bank has no rated foreign currency debt outstanding.

Banco Rural had total assets of US$1.9 billion as of June 2005.

These ratings were withdrawn:

   * Bank Financial Strength Rating: E+, negative outlook

   * Long and Short Term Foreign Currency Deposit Ratings:
        B2/Not Prime, negative outlook

   * Long and Short Term Local Currency Deposit Ratings:
        B2/Not Prime, negative outlook

   * Long and Short Term National Scale Deposit Ratings:
        Ba1.br/BR-4


COMPANHIA SIDERURGICA: Gets All of Corus Shares in Lusosider
------------------------------------------------------------
Companhia Siderurgica Nacional disclosed that Corus Staal B.V, a
subsidiary of Corus Group Plc transferred on Aug. 31, 2006, all
of its shares in Lusosider Projectos Siderurugicos S.A. to CSN
Steel Corp.

The transaction was completed after compliance with various
conditions established in the Share Purchase Agreement.
Outright control of Lusosider Projectos was acquired for
EUR25,000,000.00.  The transaction reinforces the company's
commitment to its globalization strategy, expanding its
operations abroad through the acquisition of finishing lines
close to the major steel consuming markets.

           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)'.


DURA AUTOMOTIVE: Closing Statford Plant & Laying Off 280 Workers
----------------------------------------------------------------
Dura Automotive Systems Inc. is closing its brake cable plant in
Stratford, Ontario, Canada, by 2007, terminating around 280
hourly and salaried employees.

The Company disclosed early this year their "50-cubed"
operational restructuring plan designed to enhance performance
optimization, worldwide efficiency and improve financial
results.  The restructuring plan is expected to impact over 50%
of its worldwide operations either through product movement or
facility closures.

The Company expects to complete this action by year end 2007.
Cash expenditures for the restructuring plan are expected to be
approximately US$100 million, which includes capital
expenditures between US$25 and US$35 million.  Restructuring
cash expenses will relate primarily to employee severance,
facility closure and product move costs.  The restructuring plan
will be financed with cash on hand and availability under the
Company's existing revolving credit facility.

The Company's management believes that the Company's current
available liquidity will provide the funds necessary to execute
this restructuring plan along with its ongoing operating cash
requirements.  Should the Company's current liquidity not be
adequate to fund the restructuring plan and ongoing cash
requirements for operations, the Company may be required to
modify its restructuring plan, says Keith R. Marchiando, the
Company's Chief Financial Officer.

Major ongoing and completed restructuring actions are:

   -- in May 2006, the Company disclosed that it would close its
      Brantford, Ontario Canada, manufacturing facility by June
      2007.  The 66,000 square foot plant makes a variety of
      automotive column shift assemblies.  The facility closing
      will impact approximately 120 jobs and the Company will
      transfer Brantford production to other DURA facilities to
      improve overall capacity utilization.  Severance related
      charges of US$1.9 million have been recorded in 2006; all
      of which was recorded in the second quarter of 2006.

   -- in June 2006, the Company disclosed the proposed closing
      of its manufacturing facility in Llanelli, United Kingdom.
      The 118,000 square-foot plant makes automotive cable
      control systems and currently employs approximately 270
      people.  The Company is currently in the consultation
      process with Llanelli's AMICUS trade union concerning the
      proposed closing, and therefore have not determined if the
      plant will in fact be closed.  Other restructuring charges
      of US$0.2 million have been recorded in the second quarter
      of 2006.

   -- the Company incurred year-to-date 2006 severance related
      charges of US$0.2 million for one of its Spanish
      facilities, recorded during the second quarter of 2006.

   -- the Company has notified in July 2006 at its LaGrange,
      Indiana plant that it is closing the facility.  The plant,
      which currently employs approximately 270 people,
      manufactures a variety of window systems for the
      recreation vehicle, mass transit and heavy truck markets.
      Production of the window systems will be transferred to
      other production facilities.  The Company is currently in
      negotiations with the respective union concerning
      severance and have not yet determined the charge.

   -- the Company incurred year-to-date Lawrenceburg facility
      production movement costs of US$0.5 million, of which
      US$0.3 million was incurred in the second quarter of 2006;

   -- in 2004, the Company disclosed a plan to exit its
      Brookfield, Missouri, facility and combine the business
      with other operations.  This action is complete and
      resulted in year-to-date 2006 total charges of US$0.1
      million, which was recorded during the second quarter of
      2006.  In 2005, the Company incurred charges of US$0.9
      million.

   -- during the fourth quarter of 2005, the Company began the
      streamlining of a North American plant that will be
      completed in 2007.  Certain employee severance related
      charges totaling US$1.4 million were incurred, of which
      US$1.3 million was recorded in the fourth quarter of 2005.
      Additional severance related charges of US$0.1 million
      were recorded in the second quarter of 2006.

   -- during the third quarter of 2005, the Company disclosed a
      plan to streamline an Einbeck, Germany, manufacturing
      operation.  This action is substantially completed and
      resulted in no severance cost in 2006.

   -- during the second quarter of 2005, the Company disclosed a
      plan to streamline a Plettenberg, Germany, manufacturing
      operation during 2005 and 2006.  In the third quarter of
      2005, the Company received approval for this action from
      the appropriate Workers' Council and Union.  Full
      identification of the actual employees has been
      substantially completed.  Total severance costs of US$4.4
      million are expected upon final identifications of all
      applicable employees.  Approximately US$3.6 million has
      already been recorded, including US$0.4 million for the
      six months ended July 2, 2006.

   -- during the first quarter of 2005, the Company reported a
      plan to centralize its enterprise resource planning
      systems and centralize many of its functional operations
      to better align with current business levels.  These
      actions are ongoing domestically as the Company continues
      to migrate its operations.  The Company is unable to
      estimate future severance costs as applicable employees
      have not been identified.  Approximately US$1.3 million of
      severance related charges were incurred in 2005.  No
      additional costs have been incurred for the six months
      ended July 2, 2006.  The Company has not formalized the
      total impact to its international operations, since
      meaningful migration and centralization will not begin
      until late 2006.  The Company does expect that upwards of
      200 individuals could be impacted.  The Company has not
      yet specifically identified which individuals or group of
      individuals will be impacted, or in which international
      locations they reside.  Therefore, the Company is not able
      to estimate the termination liability impact at this time.
      The Company does not expect, however, that the
      international termination costs for this action will
      exceed the related estimate for our U.S. operations.

On July 27, 2006, the Company also disclosed plans to reduce its
indirect workforce by 510 individuals in addition to the
previously announced "50-cubed" operational restructuring plan.
The rationale for this workforce reduction is to more
appropriately align our indirect workforce with current sales
volumes.  The Company anticipates having this goal accomplished
by the end of 2006.

Headquarted in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries.  DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers.  It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries including Brazil.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 1, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'.  The
rating outlook is negative.


PETROLEO BRASILEIRO: Acquires 50% Stake in Pasadena Ferry
---------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras concluded on
Sept. 1, 2006, through its Petrobras America Inc. subsidiary,
the acquisition of 50% of the Pasadena refinery in the United
States.  The purchase was made from the Astra Oil Company, which
belongs to Belgian group Compagnie Nationale a Portefeuille S.A.
The investment totaled approximately US$360 million.

The refinery's current 100,000 barrel-a-day processing capacity
will be stepped-up.  To achieve this goal, Petrobras and Astra
are undertaking studies to double production and adapt the
refinery to process the heavy oil produced in the Campos Basin
and convert it into high-quality byproducts suitable for the
American environmental norms.

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.


PETROLEO BRASILEIRO: Denies Wrongdoing in Contract with GDK
-----------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras denied in a statement any
wrongdoing in its contract with local engineering company GDK in
the construction of the P-34 vessel.

Business News Americas relates that Petrobras hired GDK to
construct the P-34 FPSO for US$88 million in 2005 to produce oil
in the Jubarte field.

The federal audit court wants the two firms to prove that they
did not fabricate the contract values to construct the offshore
production unit by increasing them.

The report says that Petrobras will obey TCU's determination to
withhold about US$5.3 million and pay GDK when the contractor
has proven services were concluded.

Petrobras said in a statement that it will make an appeal to the
ruling of the federal audit court to charge the four managers of
Petrobras BRL10,000 each.

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.


PETROLEO BRASILEIRO: Moody's Ups Corporate Family Rating to Ba1
---------------------------------------------------------------
Moody's Investors Service upgraded the foreign currency
Corporate Family Rating of Petroleo Brasileiro S.A. aka
Petrobras to Ba1 from Ba2 in conjunction with its recent upgrade
of Brazil's foreign currency country ceiling to Ba1 from Ba2.
The CFR is constrained by the foreign currency country ceiling.
The rating upgrade does not affect Petrobras's A2 global local
currency rating or the Baa2 rating for its various foreign
currency debt issues, which pierce the country ceiling.

Petrobras is an integrated petroleum company headquartered in
Rio de Janeiro, Brazil.


USINAS SIDERURGICAS: Deciding on Foreign Partner for New Plant
--------------------------------------------------------------
A press official of Usinas Siderurgicas de Minas Gerais S.A. aka
Usiminas told Business News Americas that the company will
decide on a foreign partner for its new steel plant in the
southeastern region of Brazil by the end of 2007.

The southeast part of Brazil includes:

      -- Sao Paulo,
      -- Rio de Janeiro,
      -- Minas Gerais, and
      -- Espirito Santo.

The official told BNamericas that Usiminas is yet to determine
the specific location for the plant.

According to BNamericas, Usiminas would have a 51% stake in the
project.

The report says that the new plant will have a capacity of five
megatons per year.

The official said that the plant is due to target exports,
although it could supply steel to Cosipa, BNamericas states.

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.




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


CITIGROUP ALTERNATIVE: Proofs of Claim Must be Filed by Sept. 21
----------------------------------------------------------------
Citigroup Alternative Investments Libra Strategies International
Ltd.'s creditors are required to submit proofs of claim by
Sept. 21, 2006, to the company's liquidators:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914-6305

Creditors who are not able to comply with the Sept. 21 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Citigroup Alternative's shareholders decided on Aug. 8, 2006,
for the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


DC SCALA: Last Day to File Proofs of Claim Is on Sept. 21
---------------------------------------------------------
DC Scala Three Cayman's creditors are required to submit proofs
of claim by Sept. 21, 2006, to the company's liquidators:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914-6305

Creditors who are not able to comply with the Sept. 21 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

DC Scala's shareholders decided on Aug. 8, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


LIBERTYVIEW HEALTH: Last Day to File Proofs of Claim Is Sept. 21
----------------------------------------------------------------
Libertyview Health Sciences Fund, Ltd.'s creditors are required
to submit proofs of claim by Sept. 21, 2006, to the company's
liquidators:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914-6305

Creditors who are not able to comply with the Sept. 21 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Libertyview Health's shareholders decided on July 18, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


J.P. MORGAN: Creditors Must Submit Proofs of Claim by Sept. 21
--------------------------------------------------------------
J.P. Morgan New Century Fund, Ltd.'s creditors are required to
submit proofs of claim by Sept. 21, 2006, to the company's
liquidators:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914-6305

Creditors who are not able to comply with the Sept. 21 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

J.P. Morgan's shareholders decided on July 27, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


JWM PARTNERS: Liquidator Presents Wind up Accounts on Sept. 29
--------------------------------------------------------------
JWM Partners Cayman Ltd.'s final shareholders meeting will be at
10:00 a.m. on Sept. 29, 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: Deanna Derrick
         Close Brothers (Cayman) Limited
         Fourth Floor, Harbour Place
         P.O. Box 1034, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949 8455
         Fax: (345) 949 8499


PEAKINVEST CORPORATE: Last Shareholders Meeting Is on Sept. 29
--------------------------------------------------------------
Peakinvest Corporate Limited's final shareholders meeting will
be at 9:30 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 1111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


PEAKINVEST FUNDING: Sets Final Shareholders Meeting for Sept. 29
----------------------------------------------------------------
Peakinvest Funding Limited's final shareholders meeting will be
at 10:00 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 1111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


PEAKINVEST HOLDINGS: Final Shareholders Meeting Is on Sept. 29
--------------------------------------------------------------
Peakinvest Holdings Limited's final shareholders meeting will be
at 9:00 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 1111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


PEAKINVEST PLANNING: Sets Last Shareholders Meeting for Sept. 29
----------------------------------------------------------------
Peakinvest Planning Limited's final shareholders meeting will be
at 10:30 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 1111
         Grand Cayman, Cayman Islands
         Tel: (345) 949-5122
         Fax: (345) 949-7920


S.E.C.T.O.R. STRATEGY: Proofs of Claim Must be Filed by Sept. 21
----------------------------------------------------------------
The S.E.C.T.O.R. Strategy Fund International Ltd.'s creditors
are required to submit proofs of claim by Sept. 21, 2006, to the
company's liquidators:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914-6305

Creditors who are not able to comply with the Sept. 21 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

The S.E.C.T.O.R. Strategy's shareholders decided on
July 31, 2006, for the company's voluntary liquidation under
Section 135 of the Companies Law (2004 Revision) of the Cayman
Islands.


TRISUN OFFSHORE: Last Day to File Proofs of Claim Is on Sept. 30
----------------------------------------------------------------
Trisun Offshore Fund, Ltd.'s creditors are required to submit
proofs of claim by Sept. 30, 2006, to the company's liquidators:

         Kenneth M. Krys
         Joanna Chong
         RSM Cayman Islands
         P.O. Box 1370, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-7100
         Fax: (345) 949-7120

Creditors who are not able to comply with the Sept. 29 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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




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


GERDAU SA: Chilean Unit Creates Program to Back Scrap Recyclers
---------------------------------------------------------------
Gerdau Aza, a unit of Brazil's Gerdau SA in Chile, is creating a
program to support the formalization of almost 150,000 scrap
recyclers in the nation, Business News Americas reports.

According to BNamericas, the program is a response to the small-
scale entrepreneurs who want to formalize their work and escape
their present insecure situation.

Hermann von Mahlenbrock, the chief executive officer of Gerdau
Aza, told Diario Financiero, "Our goal is that they become
businesspeople who pay their taxes... and second that they have
transportation."

BNamericas notes that the scrap recyclers operate without a
billing system.

Mr. von Mahlenbrock told BNamericas that that this month the
small-scale entrepreneurs are delivering 38,000 tons of scrap to
Gerdau Aza.

However, Gerdau Aza will need more, as it recently received
authorization of its environmental impact statement to increase
capacity to 520,000 tons per year, BNamericas says.

Gerdau Aza processes almost 500,000 tons of scrap per year,
representing 70% of Chile's scrap demand.  The firm has two
production plants in the industrial areas of Santiago: Renca,
and Colina.

                        About Gerdau SA

Headquartered in Porto Alegre, Brazil, Gerdau S.A. --
http://www.gerdau.com.br-- produces and distributes crude steel
and related long rolled products, drawn products, and long
specialty products.  In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.

Gerdau's four majority-owned Brazilian operating subsidiaries
are:

   -- Acominas,
   -- Gerdau Acos Longos S.A.,
   -- Gerdau Acos Especiais S.A. and
   -- Gerdau Comercial de Acos S.A.;

Gerdau SA's US$600 million 8-7/8% perpetual bond is rated Ba1 by
Moody's, BB+ by S&P, and BB- by Fitch.

                        *    *    *

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.




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


BANCO DEL ISTMO: Issuing COP5.08 Bil. Shares to Boost Capital
-------------------------------------------------------------
Banistmo Colombia, the unit of Primer Banco del Istmo SA aka
Banistmo in Colombia, said in a filing with Superfinanciera --
the local financial regulator -- that it will issue COP5.08
billion new shares to carry out a COP25.4 billion capital
increase, Business News Americas reports.

Banistmo Colombia told BNamericas that the news shares would be
priced at COP5 each, to increase the bank's capital to COP154
billion.

Banistmo Colombia said it will offer the new shares to existing
shareholders 15 working days after Superfinanciera authorizes
the issue, BNamericas relates.

                        *    *    *

Troubled Company Reporter-Latin America reported on Nov. 9,
2005, Moody's Investors Service affirmed the D+ financial
strength rating and Ba1 foreign currency deposit rating of
Primer Banco del Istmo, S.A. aka Banistmo.  The affirmation
follows the announcement that Banistmo's shareholder, Grupo
Banistmo, S.A., has agreed to purchase between 51% and 60% of
Inversiones Financieras Bancosal S.A., the owner of Banco
Salvadoreno, El Salvador's third largest bank.

These ratings were also affirmed:

   * Long term foreign currency deposit rating: Ba1, with stable
     outlook

   * Short term foreign currency deposit rating: Not Prime


MILLICOM INTERNATIONAL: Expects Big Growth in Colombian Market
--------------------------------------------------------------
Millicom International Cellular SA told MarketWatch that it had
high expectations for growth in Colombia.

As reported in the Troubled Company Reporter-Latin America on
Sept. 4, 2006, Millicom 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$125million, beating Digicel Ltd.

Colombia has three major operators, which is less than most
other Latin American markets, MarketWatch relates, citing Marc
Beuls, the chief executive officer of Millicom.

Mr. Beuls told MarketWatch, "I believe Colombia has excellent
growth potential since it has a high GDP per capita."

The higher gross domestic product per capita indicates that
mobile penetration in Colombia -- estimated to be in the low
fifties -- is also greater than in Millicom's other Latin
American markets where penetration is about ten percentage
points lower, MarketWatch reports, citing Mr. Beuls.

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


* COSTA RICA: Gasoline Prices Lower as International Prices Drop
----------------------------------------------------------------
The Autoridad Reguladora de los Servicios Publicos declared that
gasoline products are experiencing a dip in prices as the
international price for petroleum is taking the plunge, A.M.
Costa Rica reports.

According to A.M. Costa Rica, prices on these fuel products are
being cut:

   -- regular gasoline: down 33 colons per liter; new price is
      520 colons or US$1 per liter; and

   -- super: down 32 colons per liter; new price is 548 colons
      or US$1.06 per liter.

A.M Costa Rica said that aviation gasoline is also expected to
experience price decline.

Price-fixing authority Refinadora Costarricense de Petroleo
asked for the price cut on the fuel products.  It has already
sent a reduction stipulation to official newspaper La Gaceta and
said that new prices become effective once published by the
paper, A.M. Costa Rica relates.

                        *    *    *

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: Will Ink Industrial Cooperation Accords with Iran
---------------------------------------------------------
Cuba will enter into a number of industrial agreements with Iran
in the few coming months, Bahrain News Agency reports.

Minister Vera told Bahrain News that Cuba is eager to hold
cooperation with Iran.

According to the report, Yadira Garcia Vera, the Cuban Minister
of Industry, told Ahmed Idrisyan -- the Iranian ambassador to
Cuba -- in a meeting that there were great opportunities of
cooperation between the two nations in the industrial field.

Cuba and Iran reviewed during the meeting the means of further
increasing economic cooperation, especially those related to
electricity and oil, Bahrain News states.

                        *    *    *

Moody's assigned these ratings to Cuba:

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




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


FALCONBRIDGE LTD: Xstrata Appoints Claude Ferron as COO
-------------------------------------------------------
Xstrata Copper declares a new senior management appointment
following its assumption on full management control of
Falconbridge Limited on Aug. 21, 2006.

Claude Ferron, formerly President of Canadian Copper and
Recycling for Falconbridge, has been appointed as Chief
Operating Officer for the newly established division Xstrata
Copper Canada, reporting to Xstrata Copper's Chief Executive,
Charlie Sartain.  Mr. Ferron is based in Toronto, and is
responsible for Xstrata Copper's operations in Canada. These
comprise the Kidd Creek mining and metallurgical operations in
Ontario, the Horne smelter and the Canadian Copper Refinery
business in Montreal, and the copper recycling business (Noranda
Recycling).  Mr. Ferron will also be appointed as a member of
the Xstrata Copper Executive Committee.

Charlie Sartain, Chief Executive Xstrata Copper, commented, "I
am delighted that Claude has joined Xstrata Copper in a senior
management position. He brings a wealth of experience and
knowledge of the former Falconbridge operations in Canada and
their respective markets and we look forward to the significant
contribution that he will make to the expanded Xstrata Copper.

"The acquisition of Falconbridge has positioned Xstrata Copper
as the third largest producer of copper in the world, with
managed production of over one million tonnes of copper per
annum, and mining operations in five countries.  It is an
exciting time for Xstrata Copper and we look forward to
integrating the former Falconbridge copper assets with our
existing global businesses as soon as possible."

                        About Xstrata

Xstrata plc -- http://www.xstrata.com/-- is a major global
diversified mining group, listed on the London and Swiss stock
exchanges.  The Group is and has approximately 24,000 employees
worldwide, including contractors.

Xstrata does business in six major international commodities
markets: copper, coking coal, thermal coal, ferrochrome,
vanadium and zinc, with additional exposures to gold, lead and
silver.  The Group's operations and projects span four
continents and nine countries: Australia, South Africa, Spain,
Germany, Argentina, Peru, Colombia, the U.K. and Canada.

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

                        *    *    *

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


* DOMINICAN REPUBLIC: Fuel Prices Drop for 4th Consecutive Week
---------------------------------------------------------------
Dominican Republic's Industry and Commerce Ministry told El
Nacional that fuel prices are likely to drop for the fourth
consecutive time, between the price range of 6 pesos and 90
centavos per gallon.

According to the Dominican Today, these fuel products are
expected to experience price drops:

   -- premium gasoline: to 133.30 from 142.30;

   -- regular: to 121.30 from 125.20;

   -- diesel: to 102.30 from 104.10;

   -- subsidized liquefied petroleum gas per gallon: to 47.28
      from 48.18; and

   -- non-subsidized cooking gas per gallon: to 69.15 from
      70.05.

The Industry and Commerce Ministry told Dominican Today that
these price reductions followed the international market's
trend, which initiated a 3% drop in prices in the last week.
Another factor is the weakening of Hurricane Ernesto, which
presented fears of causing damages to refineries in the U.S.
east coast.  It may also be the result of the decreased tension
between Israel and Lebanon.

                        *    *    *

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.


* DOMINICAN REPUBLIC: Spanish Gov't Okays Debt Restructuring
------------------------------------------------------------
The Spanish government authorized the restructuring of US$1.28
million dollars, part of the maturities of Dominican Republic's
2005 debt from the Spaniard Fund for Development Assistance, the
Dominican Today reports.

Spain's council of Ministries decided in the restructuring to
oversee better payment conditions on the debt.

                        *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

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

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

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




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


GRAHAM PACKAGING: Has US$507,294 Partners' Deficit as of June 30
----------------------------------------------------------------
Graham Packaging Co. Inc. incurred a US$15,266,000 net loss
on US$653,282,000 of revenues for the second quarter ending
June 30, 2006, the Company disclosed in a Form 10-Q report filed
with the US Securities and Exchange Commission.

As of June 30, 2006, the Company's balance sheet showed
US$2,531,574 in assets and a US$507,294 partners' deficit.

In the six months ended June 30, 2006, the Company funded,
through its operating activities, US$88.9 million of investing
activities and US$76.9 million of financing activities.
Included in the Company's operating activities was a decrease in
inventories of US$47.9 million from Dec. 31, 2005, to
June 30, 2006, primarily due to a seasonal drop in finished
goods inventories and a decrease in raw material reserves that
were established at the end of 2005 to mitigate the effects on
the supply of raw materials caused by the hurricanes in the
United States in the latter part of 2005.

A full-text copy of the regulatory filing is available for free
at http://ResearchArchives.com/t/s?10ea

                    About Graham Packaging

Headquartered in York, Pennsylvania, Graham Packaging Co. Inc.
-- http://www.grahampackaging.com/-- designs, manufactures and
sells technology-based, customized blow-molded plastic
containers for the branded food and beverage, household,
personal care/specialty, and automotive lubricants product
categories.  The Company currently operates 88 plants worldwide.
In Latin America, the company has operations in Argentina,
Brazil, Ecuador, Mexico and Venezuela.  The Blackstone Group of
New York is the majority owner of Graham Packaging.

                        *    *    *

As reported in the Troubled Company Reporter on Apr 11, 2006,
Standard & Poor's Ratings Services assigned its 'B' bank loan
rating to Graham Packaging Co.'s proposed incremental US$150
million first-lien term loan B due 2011, based on preliminary
terms and conditions.  At the same time, Standard & Poor's
affirmed its ratings, including its 'B' corporate credit rating,
on the plastic packaging producer.  The outlook remains
positive.




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


* GUATEMALA: Cruise Ship Terminal to be Built in Santo Tomas
------------------------------------------------------------
The government of Guatemala said in its press release that
President Oscar Berger has signed an accord that allows the use
of state land in Santo Tomas de Castilla for the construction of
a US$20 million cruise ship terminal.

Business News Americas relates that Carnaval Cruise Line and
Puerto Izabal will fund the project, which will let Guatemala
take part in the world's fastest growing tourist industry.

According to BNamericas, the terminal's two quays will become
part of Guatemala's new Puerto Izabal.  The new terminal will be
used to service cruise ships exclusively, freeing up space for
cargo operations.

Once the project is completed, Puerto Izabal will have the
capacity to handle 200 cruise ships between November and March,
bringing in about 500,000 tourists, BNamericas reports.  The
terminal is expected to generate about US$50 million in
revenues.

                        *    *    *

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: Will Decrease Fuel Imports by HNL40 Mil. Next Year
--------------------------------------------------------------
Honduras' presidential Web site posted that the government will
reduce fuel imports by HNL40 million through next year.

According to the Web site, the decrease would be due to the
biodesel pilot program that the government launched late last
week.

Moises Starkman, the presidential special projects advisor, told
Business News Americas that the pilot project will entail the
use of biodiesel in 320 buses that run in Tegucigalpa -- 15% of
the city's bus fleet -- and about 620 buses with the addition of
cities San Pedro Sula and La Ceiba.

BNamericas relates that Hondupalma and El Progreso, which are
African palm cooperatives, will initially supply the oil for the
biodiesel mix, followed by Corporacion Dinant.

Mr. Starkman told BNamericas that African palm oil will make up
5% of the fuel mix through October, and raise to 10% by the end
of 2006.  It will increase to 20% in 2007.

The project, says BNamericas, will utilize 7.3 million gallons
of biodiesel through next year.

Biodiesel's initial price will be the same as current diesel,
which is at HNL56.45 per gallon.

                        *    *    *

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


KAISER ALUMINUM: Court Approves US$32M Deal with TIG Insurance
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware:

   (i) approved Kaiser Aluminum & Chemical Corp.'s
       settlement agreement with TIG Insurance Company;

  (ii) authorized the sale of certain TIG-issued insurance
       policies back to TIG free and clear or liens, claims,
       encumbrances or other interests; and

(iii) enjoined all claims against TIG relating to the policies.

Judge Fitzgerald notes that TIG will not be deemed successors to
Kaiser Aluminum & Chemical Corp. or its estates nor will it
assume any liabilities of KACC.

Judge Fitzgerald also says that all obligations of KACC under
the settlement agreement will be deemed administrative expenses
of the company's bankruptcy estates under Sections 503(b) and
507(a)(1) of the Bankruptcy Code.

As reported in the Troubled Company Reporter on July 18, 2006,
under the Settlement Agreement, TIG will make a US$32,200,000
settlement payment before July 15 of each year at these amounts:

   (a) US$2,415,000 from 2006 to 2008;
   (b) US$3,220,000 from 2009 to 2012; and
   (c) US$4,025,000 from 2013 to 2015.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corp. -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company, along with its Jamaican subsidiaries
-- Alpart Jamaica Inc. and Kaiser Jamaica Corp. -- filed for
chapter 11 protection on Feb. 12, 2002 (Bankr. Del. Case No. 02-
10429), and has sold off a number of its commodity businesses
during course of its cases.  Corinne Ball, Esq., at Jones Day,
represents the Debtors in their restructuring efforts. Lazard
Freres & Co. serves as the Debtors' financial advisor.  Lisa G.
Beckerman, Esq., H. Rey Stroube, III, Esq., and Henry J. Kaim,
Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, and William P.
Bowden, Esq., at Ashby & Geddes represent the Debtors' Official
Committee of Unsecured Creditors.  The Debtors' Chapter 11 Plan
became effective on July 6, 2006.  On June 30, 2004, the Debtors
listed US$1.619 billion in assets and US$3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 104; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 609/392-0900)


KAISER ALUMINUM: Court Signs Amended Order on CNA Insurers Pact
---------------------------------------------------------------
Judge Fitzgerald signs an amended order that supersedes in its
entirety the Bankruptcy Court order dated July 21, 2006,
approving the settlement agreement between Kaiser Aluminum Corp.
and the CNA Related Companies.

As reported in the Troubled Company Reporter on Aug. 7, 2006,
the Court approved the Debtors' settlement agreement with:

    -- Continental Casualty Company;

    -- Columbia Casualty Company;

    -- Transcontinental Insurance Company; and

    -- Continental Insurance Company and the formerly related
       Harbor Insurance Company.

In the amended order, Judge Fitzgerald removes the provision
that approves amendments to other settlement agreements between
KAC and certain underwriters; members at Lloyd's, London;
certain London Market Companies; the AIG Parties; and the ACE
Related Companies, in connection with the CNA Parties' ability
to appeal the U.S. District Court for the District of Delaware's
May 11, 2006, order affirming the Confirmation Order.

The amended order, however, provides, "The failure specifically
to include any particular provision of the Settlement Agreement
in this [order] shall not diminish or impair the effectiveness
of such provision, it being the intent of the Court that the
Settlement Agreement be authorized and approved in its
entirety."

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corp. -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company, along with its Jamaican subsidiaries
-- Alpart Jamaica Inc. and Kaiser Jamaica Corp. -- filed for
chapter 11 protection on Feb. 12, 2002 (Bankr. Del. Case No. 02-
10429), and has sold off a number of its commodity businesses
during course of its cases.  Corinne Ball, Esq., at Jones Day,
represents the Debtors in their restructuring efforts. Lazard
Freres & Co. serves as the Debtors' financial advisor.  Lisa G.
Beckerman, Esq., H. Rey Stroube, III, Esq., and Henry J. Kaim,
Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, and William P.
Bowden, Esq., at Ashby & Geddes represent the Debtors' Official
Committee of Unsecured Creditors.  The Debtors' Chapter 11 Plan
became effective on July 6, 2006.  On June 30, 2004, the Debtors
listed US$1.619 billion in assets and US$3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 104; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 609/392-0900)


KAISER ALUMINUM: Files June 2006 Files Monthly Operating Report
---------------------------------------------------------------
Kaiser Aluminum Corp. filed with the Court an illegible
copy of its balance sheet as of June 30, 2006.  Kaiser reported
approximately US$1.57 billion in total assets, including:

   Cash                                           US$36,648,000
   Trade Receivables                                113,610,000
   Inventories                                      123,112,000
   Investments in and advances to subsidiaries       26,672,000
   Intercompany receivables/payables, net            (4,133,000)

Kaiser reported at least US$4.67 billion in liabilities,
including:

   Accounts payable                                US$56,712,000
   Accrued interest                                    1,168,000
   Accrued salaries, wages & related expenses         36,910,000
   Accrued post retirement benefit - current                   -
   Other accrued liabilities                          60,585,000
   Payable to affiliates                              33,013,000
   Long-term debt - current position                   1,127,000
   Long-term liabilities                              17,516,000
   Accrued post-retirement benefit obligation                  -
   Long-term debt                                      1,212,000
   Liabilities subject to compromise               4,461,520,000

A copy of the document Kaiser delivered to the Clerk is
available at no charge at http://researcharchives.com/t/s?10fe


            Kaiser Aluminum Corp. -- All Debtors
                Unaudited Statement of Operations
                For the Month Ended June 30, 2006
                        (In Thousands)

Net Sales                                             US$114,362
Costs and expenses:
   Cost of products sold                                 131,678
   Depreciation & amortization                             1,829
   Selling, administrative, R&D and general                5,284
   Other operating charges (benefits), net                 5,655
                                                     -----------
Total costs and expenses                                 144,446

Operating income (loss)                                 (30,084)

Other income (expense):
   Interest expenses, net                                    (3)
   Reorganization items                                  (2,789)
   Other - net                                              (56)
                                                     -----------
Income (loss) before income taxes and                   (32,932)
   minority interest
(Provision) benefit for income taxes                       3,826
Minority interests                                             -
Equity in income (loss) of subsidiaries                       31
                                                     -----------
Net income (loss)                                    (US$29,075)


            Kaiser Aluminum Corp. -- All Debtors
     Schedule of Consolidated Cash Receipts and Disbursements
                For the Month Ended June 30, 2006
                        (In Thousands)

Receipts:
   Trade Receivables
      KACC and certain other entities' receivables     US$89,305
      KAII Receivables                                    51,954
                                                     -----------
   Total Trade Receivables                               141,259

   Asbestos Insurance Recoveries                               -
   COBRA Receipts                                            523
   Proceeds from Hedging Settlements                       2,569
                                                     -----------
Total Receipts                                           144,351

Disbursements:
   Inventory/raw materials                                87,695
   Capital expenditures                                    4,522
   Maintenance, materials, etc.                            4,312
   Freight                                                 6,596
   Utilities/energy                                        3,907
   Hourly payroll                                          8,454
   Salaried payroll                                        3,516
   Hedging activities                                        319
   Pension contributions                                     126
   VEBA Advances                                           2,253
   Medical - current employees                             2,723
   Annual insurance premiums                                   -
   Workers' compensation                                     656
   Corporate general and administrative                    5,261
   JV Fundings-primary, net of reimbursements                  -
   Other Disbursements                                     6,313
                                                     -----------
Total Operating and G&A Disbursements                    136,653

Reorganization items                                       2,229
                                                     -----------
Total Disbursements                                      138,882
                                                     -----------
Net Cash Flow                                              5,469

Beginning Bank Cash Balances                              33,989
                                                     -----------
Ending Bank Cash Balances                                 39,458
                                                     -----------
Reconciling Items                                        (2,810)
                                                     -----------
Ending Book Cash Balances                              US$36,648

                   About Kaiser Aluminum

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corp. -- http://www.kaiseraluminum.com/-- is a leading producer
of fabricated aluminum products for aerospace and high-strength,
general engineering, automotive, and custom industrial
applications.  The Company, along with its Jamaican subsidiaries
-- Alpart Jamaica Inc. and Kaiser Jamaica Corp. -- filed
for chapter 11 protection on Feb. 12, 2002 (Bankr. Del. Case No.
02-10429), and has sold off a number of its commodity businesses
during course of its cases.  Corinne Ball, Esq., at Jones Day,
represents the Debtors in their restructuring efforts. Lazard
Freres & Co. serves as the Debtors' financial advisor.  Lisa G.
Beckerman, Esq., H. Rey Stroube, III, Esq., and Henry J. Kaim,
Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, and William P.
Bowden, Esq., at Ashby & Geddes represent the Debtors' Official
Committee of Unsecured Creditors.  The Debtors' Chapter 11 Plan
became effective on July 6, 2006.  On June 30, 2004, the Debtors
listed US$1.619 billion in assets and US$3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 104; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 609/392-0900)


SUGAR COMPANY: Agriculture Min. Roger Clarke Promises No Layoffs
----------------------------------------------------------------
Roger Clarke, Jamaica's agriculture minister, promised during a
meeting with union officials and sugar worker representatives
that that no worker of the Sugar Company of Jamaica would be
laid off at this time, Radio Jamaica reports.

Radio Jamaica relates that there are over 5,000 workers employed
to factories belonging to the Sugar Company.

According to Radio Jamaica, Minister Clarke called a meeting on
Thursday last week to calm down workers who were anxious about
their jobs due to the uncertainty on the divestment of the Sugar
Company's assets.

During the meeting, Minister Clarke said that the current
workforce of the Sugar Company will remain for the next sugar
crop, RJR News says, citing Clifton Grant, the First Vice-
President of the University and Allied Workers Union.

Minister Clarke allegedly said that he is in the process of
selecting new directors for the Sugar Company, as the current
board expired on Thursday, Radio Jamaica states.

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




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


AXTEL SA: Moody's Lifts Rating on US$162.5 Mil. Sr. Notes to Ba3
----------------------------------------------------------------
Moody's Investors Service 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.

The following 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 Feb. 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 1.6x and Adjusted
EBITDA to interest expenses to get to 4.2x. 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 per 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 per 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.


KANSAS CITY SOUTHERN: S&P Affirms B Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings,
including the 'B' corporate credit rating, on Kansas City
Southern and removed the ratings from CreditWatch.  Ratings were
initially placed on CreditWatch on April 4, 2006, and lowered to
current levels on April 10, 2006.  The outlook is negative.  The
rating affirmation follows a review of the company's current
liquidity position and operating prospects.

"The ratings reflect Kansas City Southern's constrained
liquidity, highly leveraged capital structure, and challenges
associated with the integration of Kansas City Southern de
Mexico S.A. de C.V., the Mexican railroad it acquired in April
2005, offset by the favorable characteristics of the U.S.
freight railroad industry and the company's strategically
located rail network," said Standard & Poor's credit analyst
Lisa Jenkins.  "We expect that favorable industry conditions
will enable Kansas City Southern to strengthen its currently
extended financial profile and improve its liquidity position
over the near to intermediate term."

Kansas City Southern is a Class 1 U.S. freight railroad.  It is
significantly smaller and less diversified than its peers, but
operates a very strategically located rail network. With its
north-south orientation, Kansas City Southern is well positioned
to take advantage of NAFTA trade opportunities.  KCSM serves the
three largest cities in Mexico, representing a majority of the
Mexican population and GDP. Its rail lines connect with the
principal border gateway and largest freight exchange point
between the U.S. and Mexico at Nuevo Laredo/Laredo and serves
three of the four principal seaports in Mexico.  Kansas City
Southern's rail lines run through 10 states in the southern and
midwestern U.S. and interconnect with many of the larger, Class
1 North American railroads.

Kansas City Southern had previously maintained a 49% voting
interest in KCSM.  Now that it owns 100% of the company, Kansas
City Southern is more fully integrating its operations with
those of KCSM and is expected to achieve marketing and cost
synergies over time.  Although Kansas City Southern now
influences the management of day-to-day operations at KCSM, the
two companies have retained separate legal identities and are
continuing to finance their operations separately.

With the exception of the automotive sector, most end markets
served by the two companies have favorable outlooks at present.
This should translate into improved revenues and earnings over
the near-to-intermediate term.

Ratings assume that Kansas City Southern will improve its
liquidity position over the near to intermediate term and
refinance upcoming debt maturities.  Failure to do so could lead
to a downgrade. If the company improves its liquidity position
and sustains improved credit protection measures, the outlook
could be revised to stable or positive, depending upon the
magnitude of the improvement.


MERIDIAN AUTOMOTIVE: Posts US$10.5 Million Net Loss in June 2006
----------------------------------------------------------------

             Meridian Automotive Systems - Composites
                 Operations, Inc. and Subsidiaries
               Unaudited Consolidated Balance Sheet
                       As of June 30, 2006
                          (In Thousands)

CURRENT ASSETS:
    Cash                                                      -
    Accounts receivable, net                          US$80,690
    Intercompany receivable                              15,218
    Inventories                                          64,279
    Tooling costs in excess of billings and others       31,650
                                                     ----------
       TOTAL CURRENT ASSETS                             191,837
                                                     ----------
    Property, plant and equipment, net                  219,088
    Intangible assets                                    15,246
    Investment in subsidiaries                           23,863
    Other assets                                         11,622
                                                     ----------
       TOTAL ASSETS                                  US$461,656

CURRENT LIABILITIES NOT SUBJECT TO COMPROMISE:
    Current portion of long term debt                US$326,975
    Accounts payable                                     51,202
    Accrued expenses                                     43,440
    Tooling billings in excess of costs                   6,012
                                                     ----------
       TOTAL CURRENT LIABILITIES                        427,629
                                                     ----------

    Liabilities subject to compromise                   487,725

    Non-Current Liabilities Not Subject to Compromise:
       Other long-term liabilities                        8,975
       Accumulated post-retirement benefit obligation    23,838
                                                     ----------
       TOTAL LIABILITIES                                948,167
       SHAREHOLDERS' EQUITY                            (486,511)
                                                     ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY           US$461,656


              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
                 Unaudited Statement of Operations
                        June 1 to 30, 2006
                          (In Thousands)

Net sales                                             US$72,404
Cost of sales                                            66,616
                                                     ----------
Gross profit                                              5,788

Selling, general and administrative expenses              2,612
Restructuring charges                                     2,792
                                                     ----------
Operating income (loss)                                     384

Interest expense, net                                     8,463
Other (expense) income                                       25
Chapter 11 and related reorganization items               2,444
                                                     ----------
Loss before provision for income taxes                  (10,498)
(Benefit) Provision for income taxes                         (5)
                                                     ----------
NET LOSS                                             (US$10,493)


              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
                 Unaudited Statement of Cash Flows
                        June 1 to 30, 2006
                          (In Thousands)

OPERATING ACTIVITIES:
    Net loss                                         (US$10,493)
    Adjustments required to reconcile net loss to net
     cash provided by (used in) operating activities:
       Depreciation, amortization, and impairment         4,564
       Change in working capital and other operating
        items                                            11,129
                                                     ----------
     Net cash provided by (used for) operating
      activities before reorganization items              5,200
                                                     ----------
     Operating cash flows from reorganization items:
        Chapter 11 and related reorganization items       2,444
        Payments on Chapter 11 and related reorg items   (2,269)
                                                     ----------
     Net cash provided by Chapter 11 and related
      reorg items                                           175

     Net cash provided by (used for) operating
      activities                                          5,375

INVESTING ACTIVITIES:
    Additions to property and equipment                  (1,998)
    Proceeds from sale or property and equipment             23
                                                     ----------
    Net cash used for investing activities               (1,975)
                                                     ----------

FINANCING ACTIVITIES:
    Proceeds from prepetition borrowings                      -
    Repayments of prepetition borrowings                      -
    Proceeds from DIP credit facility                    32,600
    Repayments of DIP credit facility                   (36,000)
    Repayments on prepetition long-term debt                  -
    Deferred financing costs capitalized                      -
                                                     ----------
Net cash (used for) provided by financing activities     (3,400)
                                                     ----------
Net increase (decrease) in cash                               -
                                                     ----------
Cash and Cash Equivalents, beginning of period                -

Cash and Cash Equivalents, end of period                      -

                   About Meridian Automotive

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


NEWPARK RESOURCES: Shutting Down Newpark Envt'l Operations
----------------------------------------------------------
Newpark Resources, Inc., plans to shut down the operations of
Newpark Environmental Water Solutions, LLC, and dispose of or
redeploy all of the assets used in connection with its
operations.

Paul Howes, president and chief executive officer, commented,
"Based on our ongoing assessment of our portfolio of assets, we
have determined that the technology behind NEWS is not currently
commercially viable.  As a result, we are not willing to commit
further resources to this venture.  Based on the losses incurred
by NEWS to date and the prospect that the business will continue
to incur substantial losses combined with the fact that NEWS is
not part of our strategic direction going forward, we have
decided to exit this business."

In connection with the shut down of the NEWS operations, the
Company expects to record a non-cash pre-tax impairment charge
of approximately US$20 million in the third quarter of 2006
against the assets attributable to the water treatment business,
relating to the write-down of investments in property, plant and
equipment of approximately US$18 million and advances and other
capitalized costs associated with certain agreements of
approximately US$2 million.

In addition, the Company expects to incur pre-tax cash charges
for severance and other exit costs in the range of US$4 million
to US$4.5 million.

The Company expects to begin facilities shut down mid Sept.
and start the site closure process as soon as all existing
projects have been completed.  The Company is beginning the
process of exploring possible sale of existing equipment and
facilities.

            About Newpark Environmental Water Solutions

Newpark Environmental Water Solutions, LLC, was formed in early
2005 to commercialize in the United States and Canada a
proprietary and patented water treatment technology owned by a
Mexican company. This new technology uses principles of
sonochemistry to remove dissolved solids from wastewater.

                 About Newpark Resources, Inc.

Newpark Resources, Inc., (NYSE: NR) -- http://www.newpark.com/
-- is a worldwide provider of drilling fluids,environmental
waste treatment solutions, and temporary worksites and access
roads for oilfield and other commercial markets in the United
States Gulf Coast, west Texas, the United States Mid-continent,
the United States Rocky Mountains, Canada, Mexico, and areas of
Europe and North Africa.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 15, 2006
Standard & Poor's Ratings Services assigned its 'BB-' rating and
'1' recovery rating to oil field services company Newpark
Resources Inc.'s (B+/Watch Neg/--) planned US$150 million senior
secured term loan.  The 'BB-' rating was also placed on
CreditWatch with negative implications.  All the ratings on the
company are on CreditWatch.

As reported in the Troubled Company Reporter on Aug. 14, 2006
Moody's Investors Service assigned a B2 rating to Newpark
Resources, Inc.'s new US$150 million five-year senior secured
term loan facility.  At the same time, Moody's affirmed
Newpark's B1 Corporate Family Rating and B3 senior subordinated
note rating.  The rating outlook remains negative pending the
filing of its financial statements for the last five fiscal
years, as well as for the fiscal quarters within 2004 and 2005.


NORTEL NETWORKS: Inks UMTS Business Sale Pact With Alcatel
----------------------------------------------------------
Nortel Networks has signed a non-binding Memorandum of
Understanding for the sale of its UMTS access business to
Alcatel for US$320 million, a move that will enable the company
to simplify its business and strategically focus its investments
for leadership in key markets while ensuring its customers' UMTS
access requirements will continue to be met.

As part of its business strategy, Nortel is executing on plans
to increase investment in key areas, partner in others, and
divest where there is no path for it to lead or realize
attractive returns.

"Nortel is sharpening its focus on the markets in which we
intend to lead.  Our UMTS access business lacks the scale and
momentum needed to become profitable," said Mike Zafirovski,
president and chief executive officer, Nortel.

There are three core elements of Nortel's strategic focus:

   -- next-generation mobility,
   -- enterprise transformation, and
   -- services and applications.

Much like its partnership with Microsoft announced in July, this
is another key step in changing the trajectory of Nortel's
business.

"With next-generation mobility, we see an opportunity to change
the game by applying our networking expertise and technology
innovation to significantly alter the economic paradigm of
mobility solutions in the future," said Mr. Zafirovski.

"We are absolutely committed to mobility and plan to lead the 4G
evolution and play a key role in the mass market adoption of
mobile video and multimedia services," said Richard Lowe,
president, Mobility and Converged Core Networks, Nortel.  "With
a strong position in GSM and CDMA, an established service
provider customer base, and technology leadership in key areas
like OFDM-MIMO, we have a solid foundation for success going
forward."

As part of its ongoing mobility business, Nortel will continue
to develop and support solutions for the evolution of GSM access
and core, GSM-R, GPRS and EDGE technologies as well as CDMA
access and core and UMTS core.

The proposed sale includes Nortel's UMTS access product
portfolio made up of the Radio Network Controller and Node B
products and OAM solutions, related services and associated
assets.  It is anticipated that the significant majority of
employees of Nortel's UMTS access business will transfer to
Alcatel.  Completion of the transaction is subject to, among
other things, the negotiation and execution of a definitive
agreement between Nortel and Alcatel, completion of
consultations with work councils and other employee
representatives, and customary closing conditions including
regulatory approvals.  The parties are targeting completion of
the transaction in the fourth quarter of 2006.

"This deal is good for our UMTS access customers. They will
benefit from Alcatel's resulting scale in this market. We will
work closely with Alcatel to make the hand-over as smooth as
possible for our customers, with whom we plan to have strong,
on-going relationships," said Mr. Lowe.

"The expertise of Nortel's UMTS team is well-known, and I am
confident that our combined forces will pave the way for further
success in the wireless market," said Marc Rouanne, president of
Alcatel's mobile communications activities.  "We are committed
to support and evolve our extended customer base."

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

                        *    *    *

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

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

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

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


PORTRAIT CORP: Sees 75% Debt Cut Upon Chapter 11 Emergence
----------------------------------------------------------
Portrait Corp. of America, Inc., reached a voluntary,
consensual agreement with its key lenders to file a pre-
negotiated Chapter 11 restructuring plan, on Aug. 31, 2006, in
order to keep the company operationally strong and viable.  The
plan will simplify the company's capital structure, and upon
court approval of the Chapter 11 plan, certain bondholders will
become equity holders.

The company anticipates that due to the positive nature of the
consensual agreement that the Chapter 11 process will not be a
lengthy process but one measured in months.  This process
creates an orderly court protected process and, upon
confirmation of the plan will eliminate over 75% of the
company's debt, strengthening PCA's competitive position.

"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," R. David Alexander,
Chairman and CEO, said.

"We enter restructuring in a unique position in that our key
lenders are already on board with our plan.  Operationally we
are focused on producing strong fall results and with the
elimination of over US$30 million in annual interest we will now
have the resources to truly compete.  I want our customers to
know that they can trust us to deliver the quality product
they're accustomed to and they will continue to be able to count
on us for even more choices and new products.  We appreciate the
support we have received from all parties concerned,
particularly our own associates.  We believe that this
restructuring provides a very bright future for our company."

Islam Zughayer from Berenson & Company is PCA's financial
advisor, and John Bae from Cadwalader, Wickersham & Taft LLP is
PCA's legal advisor.

                     Going Concern Doubt

As reported in the Troubled Company Reporter on June 28, 2006,
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.

                     About Portrait Corp.

Based in Matthews, North Carolina, Portrait Corp. of
America, Inc. - http://pcaintl.com/-- 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.

Portrait Corp. and eight subsidiaries filed for chapter 11
protection on Aug. 31, 2006 (Bankr. S.D.N.Y. Case No. 06-22541).
John H. Bae, Esq., Cadwalader Wickersham & Taft LLP represent
the Debtors' in their restructuring efforts.  Lawyers from
Kirkland & Ellis LLP represent the Debtors' outside directors.
Mesirow Financial Consulting, LLC, is the Debtors' restructuring
accountants.  Berenson & Company LLC gives financial advice to
the Debtors.




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


* PARAGUAY: State Bank to Issue PGY156 Billion in Bonds
-------------------------------------------------------
Local press reports that AFD, the state bank of Paraguay, will
issue PGY156 billion in bonds.

Business News Americas relates that the issue is part of a
larger, PGY823-billion bond program to be carried out by the
Paraguayan government to fund its 2007 budget, with the rest to
be issued in government bonds.

However, there is yet no date for the issue, BNamericas says.

According to the report, AFD is also negotiating a US$30 million
loan from the Inter-American Development Bank.  The negotiation,
however, was stalled in the Paraguayan congress due to a lack of
political agreement.

AFD is a wholesale bank formed through a merger of three state
financial institutions:

      -- Fondo de Desarrollo Campesino,
      -- Fondo de Desarrollo Industrial, and
      -- central bank's Unidad Tecnica Ejecutora de Proyectos.

                        *    *    *

Moody's assigned these ratings on Paraguay:

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

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

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




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


IIRSA NORTE: Fitch Upgrades Series 2006-1 Rating to BB+ from BB
---------------------------------------------------------------
Fitch Ratings upgrades IIRSA Norte Finance Limited, a Peruvian
securitization of government payment obligations in connection
with a toll road concession.  The upgrade follows as a result of
the upgrade to the local currency Issuer Default Rating of Peru
to 'BBB-' from 'BB+' and the foreign currency IDR to 'BB+' from
'BB' on Aug. 31, 2006.

Fitch upgraded IIRSA Norte Finance Limited Series 2006-1 to
'BB+' from 'BB'.

Upon completion, the road is not expected to generate sufficient
revenues to cover its construction costs.  In lieu of strong
toll revenue, the government of Peru or GOP compensates the
concessionaire for construction progress with annual payments in
U.S. dollars (Certificados de Reconocimiento de Pago Annual de
Obras or CRPAOs) prorated to the advance of works.  This
transaction is a securitization of the CRPAOs.  CRPAOs delivered
from the GOP to the concessionaire are sold to the issuer.  Once
generated, CRPAOs are not subject to any condition or
performance obligation relating to the concession agreement.
Noteholders are not exposed to construction risk.

Cash flow to maintain timely debt service on the transaction
will depend on the GOP's continued payment on CRPAOs.  While
CRPAOs are backed by the full faith and credit of the GOP, on a
stand-alone basis, CRPAOs do not receive the same rating as
Fitch-rated dollar-denominated sovereign obligations.  The
rating of the notes reflects the strength of the underlying
CRPAO payments and the enhanced recovery in the event of default
derived from the PG (partial guarantee) provided by the Inter-
American Development Bank.


* PERU: Trade Minister Visits US to Continue Free Trade Talks
-------------------------------------------------------------
Mercedes Araoz, the foreign trade minister of Peru, said that
she traveled to the United States on Sept. 2 to continue talks
with the US representatives in support of approving the Free
Trade Agreement, Dominican Today reports.

Minister Araoz told Dominican Today that she will meet with
Susan Schwab -- the US Commercial representative -- and Carlos
Gutierrez, the US Foreign Trade secretary.

According to Dominican Today, the minister said that her trip
also involves the preparation of a Peruvian team in US.

The delegation will handle daily work for the fulfillment of the
Free trade Agreement between Peru and US, Dominican Today
relates.

                        *    *    *

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: Files July 2006 Monthly Operating Report
--------------------------------------------------------

             Adelphia Communications Corp., et al.
                Unaudited Consolidated Balance Sheet
                        As of July 31, 2006
                       (Dollars in thousands)

                               ASSETS

Cash and cash equivalents                          US$10,182,299
Restricted cash                                           91,045
TWC Class A Common Stock                               4,750,147
Proceeds from Sale Transaction held in escrow            698,302
Receivable for securities                                  5,228
Property and equipment, net                                7,016
Other assets                                             244,733
                                                     -----------
Total Assets                                       US$15,978,770

                LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable                                       US$52,406
Payable to non-filing entities                             1,443
Payable to creditors of the JV Debtors                   588,864
Income and other taxes payable                           614,169
Other accrued liabilities                                532,247
Liabilities subject to compromise                     16,592,466
                                                     -----------
Total liabilities                                  US$18,381,595

Stockholders' equity:
    Series preferred stock                                  397
    Class A and Class B common stock                      2,548
    Additional paid-in capital                        9,516,510
    Accumulated other comprehensive income                   60
    Accumulated deficit                             (11,894,403)
    Treasury stock, at cost                             (27,937)
                                                     -----------
Total stockholders' equity                           (2,402,825)
                                                     -----------
Total liabilities and stockholders' equity        US$15,978,770


             Adelphia Communications Corp., et al.
           Unaudited Consolidated Statement of Operations
                      Month Ended July 31, 2006
                       (Dollars in thousands)

Revenue                                               US$395,667
Cost and expenses:
    Direct operating and programming                     242,129
    Selling, general and administrative                   23,936
    Investigation, re-audit and sale transaction co        2,294
    Depreciation and amortization                         73,021
    Impairment of long-lived assets                       11,394
    Provision for uncollectible amounts from Rigase            -
    Gains on dispositions of long-lived assets             (339)
                                                     -----------
Operating income (loss)                                US$43,232

Other income (expense):
    Interest expense                                    (60,681)
    Other income (expense) - net                               -
                                                     -----------
       Total other expense - net                        (60,681)
                                                     -----------
Loss from continuing operations before
    reorganization expenses                             (17,449)

Reorganization expenses due to bankruptcy                (9,536)
                                                     -----------
Loss from continuing operations before income taxes     (26,985)

Income tax expense                                      (12,000)
Share of losses of equity affiliates - net               (1,083)
Minority's interest in subsidiary losses - net             1,664
Preliminary gain on Sale Transaction, net              5,906,884
                                                     -----------
Net loss                                            US$5,868,480


             Adelphia Communications Corp., et al.
           Unaudited Consolidated Statement of Cash Flows
                      Month Ended July 31, 2006
                       (Dollars in thousands)

Cash flows from operating activities:
    Net loss                                        US$5,868,480
    Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:
       Depreciation and amortization                      73,021
       Impairment of long-lived assets                    11,394
       Provision for uncollectible amounts from Rig          839
       Gains on disposition of long-lived assets           (339)
       Amortization of debt issuance costs                   226
       Impairment of cost & available for sale investments     -
       Provision for loss contingencies                        -
       Reorganization expenses due to bankruptcy           9,536
       Deferred tax expense (benefit)                     12,000
       Share in losses of equity affiliates - net          1,083
       Minority interest in losses of subsidiaries       (1,664)
       Preliminary gain on Sale Transaction, net      5,906,884)
       Other noncash gains                                     -
       Depreciation, amortization and other non-cash
          items from discontinued operations                   -
       Change in operating assets & liabilities         (53,191)
                                                     -----------
Net cash provided by operating activities before
payment of reorganization expenses                     US$14,501

Reorganization expenses paid during the period          (10,861)
                                                     -----------
Net cash provided by (used in) operating activities        3,640

Cash flows from investing activities:
    Expenditures for property, plant and equipment      (29,567)
    Changes in restricted cash                          (83,800)
    Proceeds from Sale Transaction                    11,761,818
    Proceeds from sale of investments                          -
    Other                                                (1,148)
                                                     -----------
Net cash used in investing activities                 11,647,303

Cash flows from financing activities:
    Proceeds from debt                                    35,000
    Repayments of debt                               (2,235,366)
    Payment of debt issuance costs                             -
                                                     -----------
Net cash provided by financing activities            (2,200,366)

Change in cash and cash equivalents cash               9,450,577

Cash, beginning of period                                731,722
                                                     -----------
Cash, end of period                                US$10,182,299

                About Adelphia Communications

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

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.  (Adelphia Bankruptcy News, Issue Nos. 147; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)




==================================================
S T.  V I N C E N T  &  T H E  G R E N A D I N E S
==================================================


TRI-CONTINENTAL EXCHANGE: Court Recognizes Foreign Liquidation
--------------------------------------------------------------
United States Bankruptcy Judge Christopher M. Klein entered an
order under chapter 15 of the United States Bankruptcy Code on
Aug. 29, 2006, recognizing certain "winding-up" proceedings
concerning Tri-Continental Exchange Ltd., Combined Services
Ltd., and Alternative Market Exchange Ltd. that are currently
pending before the Eastern Caribbean Supreme Court in Saint
Vincent and the Grenadines.

Malcolm Butterfield, of KPMG Financial Advisory Services Ltd. in
Bermuda, Simon Whicker of KPMG Cayman Islands, and Brian Glasgow
of KPMG Saint Vincent and the Grenadines have been appointed
joint liquidators of these companies by the Eastern Caribbean
Supreme Court.

Attorneys Forrest Lammiman, Jonathan Bank, and Aaron Smith of
Lord, Bissell & Brook LLP represent the joint liquidators of
Tri-Continental and its affiliates in their chapter 15
proceeding before the United States Bankruptcy Court for the
Eastern District of California.

The Bankruptcy Court agreed with the arguments that Lord,
Bissell & Brook presented and ruled that the winding-up
proceedings in Saint Vincent and the Grenadines concerning Tri-
Continental and its affiliates are "foreign main proceedings."
In an issue of first impression before courts in the United
States, the Bankruptcy Court ruled that a company's "center of
main interest," under appropriate circumstances, is the
company's "principal place of business."

Court filings allege that the winding-up proceedings in Saint
Vincent and the Grenadines, which are similar to bankruptcy
liquidations in the United States, are the result of an
international scheme by Tri-Continental Exchange and its
affiliates to defraud thousands of insurance policyholders, many
of whom were in the United States, by issuing fraudulent
insurance policies to these policyholders.  The filings allege
that the Tri-Continental companies wrongfully collected over
US$45 million in premiums from these policyholders.

The United States Attorney earlier filed a criminal complaint
against Matthew Schachter who, while using the alias "Robert L.
Brown," purportedly orchestrated the fraudulent insurance scheme
involving Tri-Continental and its affiliates.  Although Mr.
Schachter subsequently died in prison before his trial, court
filings indicate that the United States Attorney's investigation
of Tri-Continental and its related entities is ongoing.

Tri-Continental Exchange Ltd. and its affiliates, Combined
Services Ltd. and Alternative Market Exchange Ltd., sold auto
insurance policies and underwrote related insurance products.
Malcolm Butterfield at KPMG Financial Advisory Services Ltd. in
Bermuda, Simon Whicker at KPMG Cayman Islands, and Brian Glasgow
of KPMG St. Vincent and the Grenadines serve as joint
provisional liquidators of these companies.  The joint
liquidators filed a Chapter 15 petition on July 20, 2006 (Bankr.
E.D. Calif. Case Nos. 06-22652 (Tri-Continental), 06-22655
(Combined Services) and 06-22657 (Alternative Market)).  Forrest
B. Lammiman, Esq., at Lord Bissell & Brook LLP, represents the
joint liquidators in the United States.




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


BRITISH WEST: Postpones Meeting with Airline Workers' Unions
------------------------------------------------------------
British West Indies Airlines aka BWIA postponed a meeting with
four workers' unions without any explanation, The Trinidad &
Tobago Express reports.

The four unions are:

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

As reported in the Troubled Company Reporter-Latin America on
Aug. 28, 2006, the management of BWIA scheduled a meeting with
the unions on Sept. 1, 2006, to discuss the future of the
airline.

The Express states that BWIA workers will have to wait another
week to know their fate.

Curtis John, the head of ACAWU, told the Express that he
received a letter from BWIA on Sept. 1, 2006, that said the
meeting would be postponed due to "unforeseen circumstances".

BWIA would release early this week the new date and venue for
the meeting, The Express says, citing Dionne Liguore, the
airline's corporate communications manager.

Radio Jamaica states that BWIA is expected to hold the meeting
with the unions on Sept. 7, 2006.

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

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


BRITISH WEST: Will Close Down by Year-End, Says Workers' Union
--------------------------------------------------------------
A trade union representing the personnel of British West Indies
Airlines aka BWIA told Radio Jamaica that the airline will shut
down by the end of the year.

According to Radio Jamaica, the union said BWIA will be re-
launched as a new company under the name "Caribbean Airlines."

The airline's new name has already been registered, Curtis John,
the head of the Aviation Communication and Allied Workers or
ACAWU, told Radio Jamaica.

Radio Jamaica relates that Mr. John said BWIA is undertaking a
number of projects including training of a new air service firms
to take over some of the functions of BWIA employees.

The union told Radio Jamaica that BWIA's fleet would be
decreased by three aircraft.

The decrease of the number of the aircraft would affect several
routes, including the profitable London route, Radio Jamaica
states, citing the union.

However, Dionne Ligoure -- the corporate communications manager
of BWIA -- denied the closure of the airline, saying she has no
information on the matter.

Newsday notes that on Sept. 1 BWIA dismissed claims from ACAWU
that the delay of a meeting between the BWIA management and the
unions meant that the airline would be shut down and workers
would be laid off.

Mr. John admitted to Newsday that he was uncertain what to make
of the postponement and claimed there were rumors that this was
a prelude to a shutdown of BWIA and the launch of a new airline.

"BWIA will have to prove me wrong," Mr. John told Newsday.

Newsday underscores that Mr. John said that the past
restructuring exercises at BWIA occurred the same way.

The unions have no idea what were the restructuring plans for
BWIA or if the government plans to divest its shareholding in
the airline, Newsday relates, citing Mr. John.

Mr. John told Newsday that the last meeting between BWIA and the
unions, which took place in June, was inconclusive.

BWIA officials described the news on the airline's closure as
unsubstantiated rumors, Newsday states.

The BWIA officials told Newsday that the purpose of the
postponed meeting with the unions was to discuss the company's
future.  According to them, the meeting was designed to be an
information-sharing exercise.

There was no truth to reports of alleged mechanical problems
with BWIA's A340 Airbus planes, as the airline's aircrafts
undergo weekly maintenance, Newsday reports, citing the
airline's officials.

The A340s are working well and BWIA's safety record remains
unaffected by any of the challenges it is facing, the airline's
officials told Newsday.

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

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




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


* URUGUAY: In Bilateral Trade Talks with US, China & India
----------------------------------------------------------
Danilo Astori, the finance minister of Uruguay, told Dow Jones
Newswires that his nation is discussing with the United States,
China and India about possible bilateral trade deals.

Meanwhile, Minister Astori expressed doubt about Uruguay's role
in the Mercosur trade bloc, Dow Jones says.

Minister Astori told Dow Jones that discussions with non-
Mercosur nations could not yet be called "negotiations".  They
are exploratory talks, the minister said.

"We are exploring (possibilities) not only with the US, but also
with other countries," Dow Jones states, citing Minister Astori.

Talks with the US were launched on May 4, Minister Astori told
Dow Jones.

Dow Jones relates that the minister said Uruguay is already
close to reaching a deal with India on investment protection and
to avoid double taxation.

According to Dow Jones, Minister Astori said that Uruguay's
talks on bilateral accords with nations not included in the
trade bloc were compatible with the nation's Mercosur
membership.

Dow Jones underscores that a Mercosur resolution prohibits
member nations from negotiating one-on-one deals outside the
bloc.

However, Minister Astori told Dow Jones that during last
Friday's meeting it became clear that Mercosur had problems,
even in the elementary aspects as trade, as the nations often
have put contradictory economic policies into practice.

Dow Jones notes that Minister Astori demanded greater
flexibility within Mercosur to fix economic irregularities.

Minister Astori told Dow Jones, "Uruguay understands that
flexibility should include the possibility for smaller economies
to negotiate bilateral agreements outside Mercosur."

The minister warned that if the smaller nations would be allowed
to have agreements with non-members of Mercosur, the bloc's
unity would be at risk, Dow Jones emphasizes.

However, Minister Astori assured Dow Jones that Uruguay has no
plans of leaving Mercosur.

Mercosur could allow a certain kind of flexibility, Felisa
Miceli -- Argentina's finance minister -- told Dow Jones,
without stating exactly how far that flexibility could go.
Minister

"The limit is, if it puts the setup of Mercosur at risk," Dow
Jones says, citing Minister Miceli.

Guido Mantega, Brazil's finance minister, told the press that
smaller Mercosur member do have difficulties within the bloc.
However, the minister said that any bilateral accord with
nations outside Mercosur that Uruguay may enter must not
endanger the bloc's common foreign tariff or other common
Mercosur rules.

"We don't know what kind of agreement (Uruguay) would have (with
others).  We need to examine this accord once it's outlined, to
see whether it poses a threat to Mercosur or not," Minister
Mantega told Dow Jones.

                        *    *    *

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


FERTINITRO FINANCE: Fitch Affirms B- Rating & Removes from Watch
----------------------------------------------------------------
Fitch Ratings affirmed and removed from Rating Watch Negative
FertiNitro Finance Inc.'s 'B-' rated US$250 million 8.29%
secured bonds due 2020.

The Negative Rating Watch addressed Fitch's concerns that a
change in Venezuela's petrochemicals law would force FertiNitro
to redirect portions of its fertilizer output from the world
export markets to the Venezuelan market with sales subject to
pricing dictated by the government.

According to the offtake agreement between Petroquimica de
Venezuela, S.A. (Pequiven) and FertiNitro, Pequiven is obligated
to re-sell, on a gradually decreased percentage, its 50% share
of the plant's production outside Venezuela at market prices.

Fitch believes that the most recent amendment to the
petrochemicals law (published in July) is not likely to cause
project revenues to decrease substantially during the remainder
of 2006 and in 2007.  Nevertheless, significant uncertainty
remains regarding additional modifications to and adverse
interpretations of the fiscal, legal and regulatory framework
that could potentially impair production and export revenue.

Fitch will continue to monitor legislative and regulatory
developments in Venezuela and take rating action as appropriate.

In May, the plant completed a 180-day Second Reliability Test,
which had been deferred from 2003 with lender consent.  The test
is designed to demonstrate and ensure that the project has the
ability to operate as initially represented to bondholders.
Upon completion of the report of the independent engineer, the
financial model will be re-run to indicate whether the project's
debt sustaining capacity is in fact consistent with a minimum
debt service coverage ratio of 2.25x and a life-to-loan coverage
ratio of 3.00x.

Through July, the project achieved the highest utilization rates
since completion, with urea production reaching 101% of the
Offering Circular target and ammonia 98%.  FertiNitro's debt
service margins are expected to average 1.71x in 2006.

In 2005, collections on sales rose 4.7% on stronger ammonia and
urea prices.  Higher prices in the global markets offset the
reduced shipments that resulted from scheduled shutdowns of the
urea and ammonia trains in the summer.

Higher operating costs combined with the extinction of tax
credits and loss carry-forwards, which resulted in tax payments
of US$21.5 million, decreased cash available for debt service in
2005 to US$116 million from US$146 million in 2004.

Of note, ample accumulated cash balances enabled FertiNitro to
pay US$36.9 million of deferred bank loan principal in April
2005, ahead of schedule, in addition to the programmed semi-
annual amortization payment of US$21.7 million.  A cumulative
net draw of US$8.3 million from the restricted cash account
enabled FertiNitro to meet total debt service payments of
US$129.9 million in 2005.

FertiNitro ranks as one of the world's largest nitrogen-based
fertilizer plants, with nameplate daily production capacity of
3,600 Metric Tons of ammonia and 4,400 Metric Tons of urea.  It
is owned 35% by a Koch Industries, Inc., subsidiary, 35% by
Pequiven, a state-owned petrochemicals company, 20% by a
Snamprogetti S.p.A. subsidiary, and 10% by a Cerveceria Polar,
C.A. subsidiary.


                        ***********



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

Troubled Company Reporter - Latin America is a daily newsletter
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Copyright 2006.  All rights reserved.  ISSN 1529-2746.

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