TCRLA_Public/060911.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, September 11, 2006, Vol. 7, Issue 180

                          Headlines

A R G E N T I N A

CEREALES AGROQUEN: Claims Verification Deadline Is on Oct. 16
CISE S.R.L.: Trustee verifies Proofs of Claim Until Oct. 23
C.P.M. SA: Last Day for Verification of Claims Is on Oct. 6
OBRAFI SRL: Claims Verification Deadline Is Set for Nov. 23
PLASTI-TARSA: Deadline for Verification of Claims Is on Oct. 24

PROTOMED S: Enters Bankruptcy Protection on Court Orders
RECOLETA PLAZA: Verification of Proofs of Claim Is Until Oct. 17
SELECCION ELYSEE: Enters Bankruptcy on Court Orders

* ARGENTINA: Mercosur Sides with Uruguay on Roadblock Case

B A H A M A S

COMPLETE RETREATS: Wants to Walk Away from 21 Contracts & Leases
COMPLETE RETREATS: Gets Final OK for Continued Utility Services
PINNACLE ENT: Sands & Traymore Buy Cues Moody's to Hold Ratings
PINNACLE ENTERTAINMENT: Extends Tender Offer to Sept. 13
PINNACLE ENT: Sands & Traymore Buy Cues Fitch to Hold NegWatch

B E R M U D A

ALEA GROUP: Morgan Stanley Owns 7.48% of Company's Common Shares
REFCO INC: Wants Exclusive Plan-Filing Period Extended to Dec. 5
REFCO INC: Wants Removal Period Extended to Dec. 12
GLOBAL CROSSING: Launches VoIP Ready-Access Conferencing Service
INTELSAT CORP: To Enter Into A New Sr. Secured Credit Facility

INTELSAT CORP: Moody's Puts B2 Rating on Sr. Unsecured Term Loan
INTELSAT CORP: S&P Rates US$667 Million Credit Facility at B
WG (BERMUDA): Deadline for Proofs of Claim Filing Is Sept. 15

B R A Z I L

AES CORP: Unit Mulls Hydro Generation Projects for Expansion
BANCO BRADESCO: Joins Dow Jones Sustainability World Index List
BANCO BRADESCO: Unit Inks Financial Services Accord with Panvel
BANCO DO BRASIL: Gets Central Bank's Approval to Increase Shares
COMPANHIA SIDERURGICA: Siemesp Seeks to Restrict Sales to Prada

GERDAU SA: Must Pay BRL245 Million Fine to Cade by Sept. 18
MRS LOGISTICA: Cargo Movement Increases 10.5% in Aug. 2006
TAM SA: Adds Eighth Airbus A320 to Fleet
TAM SA: To Launch Flights to Italy & Increase Service to Paris
VARIG: Brazilian Judge Sued for Stopping Route Redistribution

VARIG S.A.: Port Authority Wants to Collect Flight Fees

C A Y M A N   I S L A N D S

ACE ACADEMY: Shareholders Gather for a Final Meeting on Sept. 21
ANIMI MASTER: Schedules Last Shareholders Meeting on Sept. 21
ANIMI OFFSHORE: Last Shareholders Meeting Is Set for Sept. 21
CCM INT'L: Last Shareholders Meeting Is Scheduled for Sept. 21
CCM MASTER: Final Shareholders Meeting Is Scheduled for Sept. 21

CHILECTRA INTERNACIONAL: Final Shareholders Meeting Is Sept. 21
CHINA FUND: Calls Shareholders for a Final Meeting on Sept. 21
COUNTRY HAVEN: Liquidator Presents Wind Up Accounts on Sept. 21
ENERSIS INTERNACIONAL: Final Shareholders Meeting Is on Sept. 21
FIRST SUMMIT: Sets Final Shareholders Meeting on Sept. 21

METRO INVESTMENTS: Last Shareholders Meeting Is Set for Sept. 21
PERCIPENCE LTD: Last Day to File Proofs of Claim Is on Sept. 22

C H I L E

AES CORP: Unit to Provide Electricity in British Columbia
SHAW GROUP: Unit Secures Engineering Contract from BASF FINA

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Collapse Part of Systematic Crisis
VIVA INT'L: To Execute Acquisition Agreements with River Hawk

E C U A D O R

PETROECUADOR: Posts US$398.69MM Income from Aug. Crude Sale

E L   S A L V A D O R

SBARRO: To Open 100 Restaurants in India With RTC

G U A T E M A L A

BANCO INDUSTRIAL: S&P Says Low Capitalization Constrain Ratings

J A M A I C A

KAISER ALUMINUM: Extends Contract With A.M. Castle & Co.
KAISER ALUMINUM: Posts US$29 Million Net Loss in June 2006
PETROLEO BRASILEIRO: Considers Exploring for Oil in Jamaica
SUGAR COMPANY: Agricultural Society to Support Robert Levy
SUGAR COMPANY: Vincent Morrison to Demand Operational Changes

M E X I C O

DELTA AIR: System Traffic Decreases 3.0% in Aug. 2006
DELTA MILLS: Fails to Make Sept. 1 Interest Payment
FORD MOTOR: S&P Maintains Negative Watch on Low-B Ratings
NORTEL NETWORKS: Launches New Product Offerings to SMEs
NORTEL NETWORKS: Selects Followap to Enhance Real-Time Networks

P A N A M A

GRUPO BANISTMO: Posts US$69.5 Million First Half 2006 Profits

P A R A G U A Y

PERKINELMER: Acquires Avalon Instruments & Raman Spectroscopy

* PARAGUAY: Will Launch Tender of Biodiesel Supply Contract

P E R U

ANIXTER INTERNATIONAL: Fitch Affirms Low B Ratings
CONNACHER OIL: S&P Assigns B+ Long-Term Corporate Credit Rating

P U E R T O   R I C O

FIRST BANCORP: Board Declares US$0.07 Dividend Per Common Share

T R I N I D A D   &   T O B A G O

BRITISH WEST: Trinidad Government Decides on New Business Model
RBTT FINANCIAL: Fitch Upgrades Issuer Rating to BBB- from BB+

U R U G U A Y

* URUGUAY: Gets Mercosur's Partial OK on Dispute with Argentina

V E N E Z U E L A

* VENEZUELA: Discloses Accords on Agriculture Development

* BOOK REVIEW: The Turnaround Manager's Handbook


                          - - - - -  


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


CEREALES AGROQUEN: Claims Verification Deadline Is on Oct. 16
-------------------------------------------------------------
Cesar Stock, the court-appointed trustee for Cereales Agroquen
S.A.'s bankruptcy case, verifies creditors' proofs of claim
until Oct. 16, 2006.

Mr. Stock will present the validated claims in court as
individual reports on Nov. 27, 2006.  A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Cereales Agroquen 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 Cereales Agroquen's
accounting and banking records will follow on Feb. 12, 2007.

The trustee can be reached at:

         Cesar Stock
         Avenida Corrientes 4149
         Buenos Aires, Argentina


CISE S.R.L.: Trustee verifies Proofs of Claim Until Oct. 23
-----------------------------------------------------------
Carlos Yacovino, the court-appointed trustee for CISE S.R.L.'s
bankruptcy case, verifies creditors' proofs of claim until
Oct. 23, 2006.

Under the Argentine Bankruptcy Law, Mr. Yacovino is required to
present the validated claims in court as individual reports.
Court No. 13 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 CISE and its
creditors.

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

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

CISE was forced into bankruptcy at the request of Edgardo
Astivera, whom it owes US$291.

Clerk No. 26 assists the court in the proceeding.

The debtor can be reached at:

         CISE S.R.L.
         General Manuel Rodriguez 2626
         Buenos Aires, Argentina  

The trustee can be reached at:

         Carlos Yacovino
         Jean Juares
         Buenos Aires, Argentina


C.P.M. SA: Last Day for Verification of Claims Is on Oct. 6
-----------------------------------------------------------
Carlos Moreno, the court-appointed trustee for C.P.M. S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim until
Oct. 6, 2006.

Mr. Moreno will present the validated claims in court as
individual reports on Nov. 27, 2006.  A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by C.P.M. 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 C.P.M's accounting
and banking records will follow on Feb. 12, 2007.

The trustee can be reached at:

         Carlos Moreno
         Tucuman 1658
         Buenos Aires, Argentina


OBRAFI SRL: Claims Verification Deadline Is Set for Nov. 23
-----------------------------------------------------------
Gustavo Alejandro Pagliere, the court-appointed trustee for
Obrafi S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Nov. 23, 2006.

Mr. Pagliere will present the validated claims in court as
individual reports on Feb. 15, 2007.  Court No. 9 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 Obrafi 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 Obrafi's accounting
and banking records will follow on Apr. 11, 2007.

Obrafi was forced into bankruptcy at the request of Rodolfo
Frias, whom it owes US$21,335.55.

Clerk No. 17 assists the court in the case.

The debtor can be reached at:

         Obrafi S.R.L.
         Marcelo Torcuato de Alvear 452
         Buenos Aires, Argentina  

The trustee can be reached at:

         Gustavo Alejandro Pagliere
         Tucuman 1424
         Buenos Aires, Argentina


PLASTI-TARSA: Deadline for Verification of Claims Is on Oct. 24
---------------------------------------------------------------
Ricardo Adrogue, the court-appointed trustee for Plasti-Tarsa
S.A.'s bankruptcy case, verifies creditors' proofs of claim
until Oct. 24, 2006.

Mr. Adrogue will present the validated claims in court as
individual reports on Dec. 5, 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 Plasti-Tarsa 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 Plasti-Tarsa's
accounting and banking records will follow on Feb. 20, 2007.

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

The trustee can be reached at:

         Ricardo Adrogue
         Bouchard 468
         Buenos Aires, Argentina


PROTOMED S: Enters Bankruptcy Protection on Court Orders
--------------------------------------------------------
Protomed S. Fe S.R.L. enters bankruptcy protection after a court
in Rosario, Santa Fe, ordered the company's liquidation.  The
order transfers control of the company's assets to a court-
appointed trustee who will supervise the liquidation
proceedings.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims.  An
insolvency court will determine if the verified claims are
admissible, taking into account the trustee's opinion and the
objections and challenges raised by Protomed and its creditors.

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

The trustee will also submit a general report that contains an
audit of Protomed's accounting and banking records.  

The debtor can be reached at:

         Protomed S. Fe S.R.L.
         Paseo 3315, Rosario
         Santa Fe, Argentina


RECOLETA PLAZA: Verification of Proofs of Claim Is Until Oct. 17
----------------------------------------------------------------
Adolfo Jorge Santos, the court-appointed trustee for Recoleta
Plaza S.A.'s bankruptcy proceeding, verifies creditors' proofs
of claim until Oct. 17, 2006.

Under the Argentine Bankruptcy Law, Mr. Santos is required to
present the validated claims in court as individual reports.
Court No. 2 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 Recoleta Plaza and
its creditors.

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

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

Recoleta Plaza was forced into bankruptcy at the behest of Sonia
Miriam Vidal, whom it owes US$8,943.84.

Clerk No. 4 assists the court in the proceeding.

The debtor can be reached at:

         Recoleta Plaza S.A.
         Rodriguez Pena 203
         Buenos Aires, Argentina  

The trustee can be reached at:

         Adolfo Jorge Santos
         Junin 55
         Buenos Aires, Argentina


SELECCION ELYSEE: Enters Bankruptcy on Court Orders
---------------------------------------------------
Seleccion Elysee S.A. enters bankruptcy protection after a court
in Buenoas Aires ordered the company's liquidation.  The order
transfers control of the company's assets to a court-appointed
trustee who will supervise the liquidation proceedings.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims.   An
insolvency court will determine if the verified claims are
admissible, taking into account the trustee's opinion and the
objections and challenges raised by Seleccion Elysee and its
creditors.

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

The trustee will also submit a general report that contains an
audit of Seleccion Elysee's accounting and banking records.  

The debtor can be reached at:

         Seleccion Elysee S.A.
         Moreno 428
         Buenos Aires, Argentina


* ARGENTINA: Mercosur Sides with Uruguay on Roadblock Case
----------------------------------------------------------
The Arbitration Tribunal of Mercosur partially ruled against
Argentina on a complaint filed by Uruguay regarding a blockade
on the bridges linking the two nations, Merco Press reports.

Merco Press relates that the tribunal determined that Argentina
did not take necessary action to ensure free circulation of
goods and services into Uruguay, as contemplated in the block's
charter.

According to Merco Press, Buenos Aires was found liable for not
preventing Argentines, who attempted to prevent the construction
of two pulp mills in river Uruguay, from blocking the bridges.

The report says that Argentines claimed the pulp mills would
pollute both sides of the fluvial border.  Residents of
Gualeguaychu blocked for several months three main routes
connecting with international bridges leading to Uruguay, aiming
to prevent trucks with equipment for the pulp mill from passing
through.  However, the blockade prevented normal traffic.  The
blockade -- which coincided with the summer season when
Argentines go to Uruguayan beaches on the Atlantic -- damaged
Uruguay's tourism.

Merco Press notes that the ruling, however, doesn't "outline a
future due conduct for Argentina in the matter (no more
blockades)".  The decision also did not mean that the tribunal
considered Uruguay's demand for compensations arising from
losses the 72-day protests caused.  The demonstrations allegedly
cost Uruguay about US$400 million.

The tribunal told Merco Press that the Argentine government did
not intend to damage commercial traffic.  Good faith must be
presumed since evidence does not show that Argentina encouraged
the Gualeguaychu residents to hold a protest.

The tribunal's ruling was a victory for Uruguay given the
implicit moral and political force, Merco Press says, citing
Reynaldo Gargano, the Foreign Affairs Minister of the nation.

However, Minister Gargano told Merco Press that he was cautious
as to the next steps regarding compensation demands.

Merco Press underscores that Minister Gargano said, "It's the
president who has to decide where and how to proceed from now
on.  Anyhow we accept the ruling as happened with the previous
one before The Hague which also favored Uruguay, but we will not
adopt a triumphalism attitude."

However, Nora Capello -- a delegate of Argentina -- told Merco
Press that the ruling favored Argentina.  She said, "There was
no condemnation or compensation demand accepted, or a future
obligation in case route blockades are resumed."

According to the report, Ms. Capello said that the Mercosur
tribunal didn't question the Argentine government's strategy,
its reaction to the route cuts or its dissuasive tactics against
protestors.

"What was questioned was the diligence to act, that it the time
taken, which could have been less," Ms. Capello told Merco
Press.

"The ruling never mentions Argentina was neglectful rather on
the contrary it highlights the good intentions in all its
actions," Merco Press says, citing Ms. Capello.

Meanwhile, Luis Marti Mingarro -- the head of the Arbitration
Tribunal Magistrate from Spain -- told Merco Press that the
ruling hopes blockades like that of Argentina will not be
repeated.

"What the people and this Tribunal expect is that in the future
both sides closely monitor these assumptions so as to avoid the
degradation of the situation such as was the case under
consideration," Merco Press relates, citing Judge Mingarro.

Judge Mingaro told Merco Press, "The Tribunal unanimously
considers with great respect the reasons for the protest but
also understands it's not enough to justify that the umbilical
corridors between two neighbours of Mercosur should remain
blocked."

Merco Press emphasizes that Jose Maria Gamio -- the Uruguayan
member in the tribunal -- said that the decision satisfied both
Argentina and Uruguay.  However, he said that the solution to
the conflict must come from the two governments.

"We hope that as soon as possible negotiations are again on
track so that this ruling and the one from the International
Court in The Hague are left behind and we can see a return to
the atmosphere that should have never been lost," Mr. Gamio told
Merco Press.

                        *    *    *

Moody's Investors Service upgraded on Aug. 31, 2006, Brazil's
key ratings in the wake of significant changes in the
government's debt structure that have led to a substantial
reduction in credit vulnerabilities derived from the financial
impact of exchange rate fluctuations and, to a lesser degree,
domestic interest rates on government debt ratios.

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

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     B+      Aug. 1, 2006
   Local Currency
   Long Term Issuer    B       Aug. 1, 2006
   Short Term IDR      B       Dec. 14, 2005
   Long Term IDR       RD      Dec. 14, 2005




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


COMPLETE RETREATS: Wants to Walk Away from 21 Contracts & Leases
----------------------------------------------------------------
Complete Retreats LLC and its debtor-affiliates are parties to
21 executory contracts and unexpired leases for the use and
rental of various properties:

                                Monthly  Effective Termination
Counterparty                      Fees      Date       Date
------                           -------  --------- -----------
Gordon & Joan Edwards            US$20,000   09/06/05   09/31/06
Michael Ryan                         5,400   09/15/05   09/14/06
Desarrollos Turisticos Milenio      20,000   11/07/05   11/15/06
W. Klappenbach & C. Clift            5,000   09/06/05   08/30/06
Willian O'Neil                      31,200   09/14/05   12/31/06
Kenneth E. Moore                    15,000   04/10/06   04/30/08
Michelle Redlich                     8,500   11/30/05   12/31/09
Brian N. Hollinagel                 30,000   04/19/06   04/30/07
Gail Kology                          6,000   09/19/06   11/30/06
Ruth Belleville                      5,200   08/02/05   08/21/06
Fontainebleau Florida Hotel         69,865   05/05/06   04/30/07
L+M Investment Group L.L.C.         15,000   04/23/04   04/30/07
Marlin Ventures USA Inc.            20,000   03/31/06   04/30/07
Bonita Stewart                       4,600   08/20/05   10/31/06
Ted & Lida Urban                     6,500   02/13/06   03/31/07
Charles & June McNeirney            10,609   03/16/04   03/31/07
Thomas H. Hurlburt                   5,062   11/18/02   12/31/06
Richard & Linda Sher                 4,500   07/01/05   07/31/07
Frank Rostron                        7,000   05/31/05   07/31/07
Jeff Dishner                             -   07/29/04          -
Christopher Miller/Richard Treves        -   10/15/05          -

The Debtors have paid security deposits for six of the Contracts
and Leases:

           Agreement             Security Deposit
           ---------             ----------------
           Edwards Agreement          US$20,000
           Hollinagel Agreement          30,000
           L+M Agreement                 12,500
           Marlin Agreement              20,000
           Stewart Agreement              6,750
           McNeirney Agreement           30,000

The Debtors have exited all properties related to the Agreements
as of the Petition Date because those properties were no longer
beneficial to their business or necessary to their
reorganization efforts, Jeffrey K. Daman, Esq., at Dechert LLP,
in Hartford, Connecticut, tells the Court.

Thus, the Debtors ask the U.S. Bankruptcy Court for the District
of Connecticut to:

  (a) grant them authority to reject the 21 Contracts and Leases
      effective as of the Petition Date; and

  (b) require that claims arising from the rejection of an
      Agreement be filed within 30 days from the date the Court
      approves rejection of that Agreement.

According to Mr. Daman, the Dishner Agreement was terminated
prior to the Petition Date and the Debtors have surrendered
possession of the related property around that time.  In an
abundance of caution, the Debtors seek to reject the Dishner
Agreement as of the Petition Date.

The Miller Agreement was unilaterally terminated by the owners,
who took possession of the property and barred the Debtors from
the premises, Mr. Daman adds.  Accordingly, the Debtors were
forced to surrender control of the property.  Thus, the Debtors
seek to reject the Miller Agreement to the extent the contract
has not been terminated in accordance with its terms.  The
Debtors reserve their rights with respect to any violation of
the automatic stay committed by the lessor under the Miller
Agreement.

According to Mr. Daman, the Debtors currently receive limited,
if any, benefits from the Agreements, whereas they would owe
approximately US$2,500,000 if the Agreements are not rejected,
potentially as an administrative claim.

The Debtors do not believe that the Rejected Agreements could be
assigned for any meaningful value or that they provide any other
potential value to their estates.  Thus, rejecting the Rejected
Agreements will clearly benefit the Debtors' estates, as well as
their creditors and other parties-in-interest, Mr. Daman
asserts.

The Debtors propose that all non-debtor parties to the
Agreements should be required to return any amounts remaining
after applying any security deposits, moneys held in escrow, or
any similar funds to any prepetition arrearages or delinquencies
under or related to the Agreements.

The Debtors intend to pay, or have already paid, all non-Debtor
parties to the Agreements amounts due up to the Petition Date,
Mr. Daman says.

Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses.  In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members.  Complete Retreats and its debtor-
affiliates filed for chapter 11 protection on July 23, 2006
(Bankr. D. Conn. Case No. 06-50245).  Nicholas H. Mancuso, Esq.
and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors
in their restructuring efforts.  Michael J. Reilly, Esq., at
Bingham McCutchen LP, in Hartford, Connecticut, serves as
counsel to the Official Committee of Unsecured Creditors.  No
estimated assets have been listed in the Debtors' schedules,
however, the Debtors disclosed US$308,000,000 in total debts.  
(Complete Retreats Bankruptcy News, Issue No. 7; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or  
215/945-7000).


COMPLETE RETREATS: Gets Final OK for Continued Utility Services
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Connecticut
granted, on a final basis, Complete Retreats LLC and its debtor-
affiliates' request enjoining utility companies from
discontinuing their services to the Debtors.

As reported in the Troubled Company Reporter on Aug. 10, 2006,
the Court had given its interim approval on the Debtors' request
for the Court to:

   (i) determine that the Utility Companies have been provided
       with adequate assurance of payment under Bankruptcy Code
       section 366;

  (ii) approve the Debtors' proposed offer of adequate assurance
       and procedures governing the Utility Companies' requests
       for additional or different adequate assurance;

(iii) prohibit the Utility Companies from altering, refusing,
       or discontinuing services on account of prepetition
       amounts outstanding or on account of any perceived or
       alleged inadequacy of the proposed adequate assurance;

  (iv) establish procedures for the Utility Companies to seek to
       opt out of the proposed adequate assurance procedures;

   (v) determine that the Debtors are not required to provide
       any additional adequate assurance;

  (vi) set a final hearing on the proposed adequate assurance
       procedures on Aug. 17, 2006; and

(vii) provide for the return of the unused portions of all
       deposits shortly after the substantial consummation of
       any confirmed plan of reorganization in their cases.

In connection with the operation of their business and
management of their properties, the Debtors obtain electricity,
gas, water, sewer, trash removal, telephone, Internet, cable
television, and other utility services from various utility
companies.

A 14-page list of Utility Companies providing services to the
Debtors is available for free at:

              http://researcharchives.com/t/s?ec4   

                 Proposed Adequate Assurance

The Debtors intend to pay all postpetition obligations owed to
the Utility Companies.  In addition, the Debtors propose to
provide a deposit equal to two weeks of Utility Service to any
Utility Company that requests a deposit in writing.  However, no
deposit will be given to a Utility Company that already holds a
deposit equal to or greater than two weeks of Utility Services
and that is paid in advance for its services.

Upon acceptance of the Deposit, the Utility Company would be
deemed to have stipulated that the Deposit constitutes adequate
assurance of payment under Bankruptcy Code section 366 and would
not be able to make an Additional Adequate Assurance Request.

             Proposed Adequate Assurance Procedures

In light of the severe consequences to the Debtors of any
interruption in services by the Utility Companies, but
recognizing the right of the Utility Companies to evaluate the
Proposed Adequate Assurance on a case-by-case basis, the Debtors
propose that the Court approve and adopt these uniform
procedures:

   a. If a Utility Company does not comply with the Adequate
      Assurance Procedures, it will be forbidden from
      discontinuing, altering, or refusing service.

   b. Any Utility Company requesting a Deposit must make a
      request in writing to:

         (i) the Debtors
             Tanner & Haley Resorts
             285 Riverside Avenue, Suite 310
             Westport, CT 06880
             Attn: Jason I. Bitsky, Esq., and

        (ii) counsel to the Debtors
             Dechert LLP
             30 Rockefeller Plaza
             New York, NY 10112
             Attn: Joel H. Levitin, Esq., and
                   David C. McGrail, Esq.

   c. If the requesting Utility Company satisfies the
      requirements, the Debtors would provide a deposit.

   d. Any Utility Company desiring additional adequate assurance
      of payment must serve its request on the Debtors and the
      Debtors' counsel.

   e. The Debtors have at least two weeks to reach a consensual
      agreement with the Utility Company resolving the
      Additional Adequate Assurance Request.

   f. The Debtors would be permitted to resolve any Additional
      Adequate Assurance Request by mutual agreement with the
      Utility Company and without further Court order.

   g. If the Debtors can't reach a timely consensual resolution
      with the Utility Company, a hearing will be held to
      determine the adequacy of adequate assurance of payment.

   h. Pending resolution of the Determination Hearing, that
      particular Utility Company would be prohibited from
      discontinuing, altering, or refusing service to the
      Debtors.

                   Process for Opting Out

A Chapter 11 debtor was historically able to place the burden on
utility providers to prove that the adequate assurance offered
by the debtor was insufficient.  After recent amendments to
Bankruptcy Code Section 366, the burden has arguably shifted to
debtors to provide adequate assurance that the utility providers
find satisfactory and to seek court review if a utility provider
does not accept the proposed adequate assurance.

Under the new reading of Bankruptcy Code section 366, a Utility
Company could, on the 29th day after the Petition Date, announce
that the proposed adequate assurance is not acceptable, demand
an unreasonably large deposit from the Debtors, and threaten to
terminate Utility Service the next day unless satisfied.

The Debtors believe it is prudent to require Utility Companies
to raise any objections to the Adequate Assurance Procedures, so
that those objections may be heard by the Court within 30 days
of the Petition Date.

The Debtors propose these uniform objection procedures:

   a. Any Utility Company that objects to the Adequate Assurance
      Procedures must to file a timely objection.

   b. Any Procedures Objection must, among others, be made in
      writing and set forth the reason why the Utility Company
      believes it should be exempted from the Adequate Assurance
      Procedures.

   c. The Debtors would be permitted to resolve any Procedures
      Objection by mutual agreement with the Utility Company and
      without further Court order.

   d. If no prompt consensual resolution is reached, the
      Procedures Objection would be heard at the Final Hearing.

   e. All Utility Companies that do not timely file a Procedures
      Objection would be deemed to consent to the Adequate
      Assurance Procedures.

Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses.  In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members.  Complete Retreats and its debtor-
affiliates filed for chapter 11 protection on July 23, 2006
(Bankr. D. Conn. Case No. 06-50245).  Nicholas H. Mancuso, Esq.
and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors
in their restructuring efforts.  Michael J. Reilly, Esq., at
Bingham McCutchen LP, in Hartford, Connecticut, serves as
counsel to the Official Committee of Unsecured Creditors.  No
estimated assets have been listed in the Debtors' schedules,
however, the Debtors disclosed US$308,000,000 in total debts.  
(Complete Retreats Bankruptcy News, Issue No. 7; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or  
215/945-7000).


PINNACLE ENT: Sands & Traymore Buy Cues Moody's to Hold Ratings
---------------------------------------------------------------
Moody's Investors Service affirmed the ratings and positive
outlook of Pinnacle Entertainment, Inc., following the company's
announcement that it signed a definitive agreement under which
Pinnacle agreed to purchase the entities that own The Sands and
Traymore sites in Atlantic City, New Jersey from entities
affiliated with financier Carl Icahn for approximately US$250
million, plus an additional US$20 million for certain tax-
related benefits and real estate.  The transaction is expected
to close by the end of 2006 and is subject to customary
approvals.  Pinnacle has a B2 corporate family rating, B1 senior
secured bank debt rating, and Caa1 senior subordinated debt
rating.

The affirmation considers that the purchase of The Sands
Atlantic City site is consistent with the company's plans to
diversify geographically into major gaming markets, a key factor
with respect to ratings improvement.  At the same time, the
affirmation acknowledges that Pinnacle will likely have to
obtain additional external financing to support the purchase of
The Sands, and that as part of the agreement, Pinnacle required
that the sellers proceed to close the existing hotel-casino.  As
a result, Pinnacle will not be acquiring any immediate cash flow
from the transaction.  The company plans to design and build an
entirely new casino hotel on the site.  Although no specific
development plans are in place at this time, Moody's expects
that Pinnacle will spend upwards of US$1 billion to develop a
new Atlantic City property.

The positive ratings outlook continues to reflect the
improvement in Pinnacle's overall operating results and
liquidity profile.  In addition, it takes into account the two
St. Louis developments that will provide Pinnacle with an
increased level of diversification, the purchase of certain Lake
Charles, LA gaming assets from Harrah's, and the sale of Casino
Magic Biloxi to Harrah's.  Continued revenue and cash flow
growth could have a positive impact in ratings although any
upgrade would need to consider longer-term plans to develop and
finance an Atlantic City casino.

Moody's previous rating action on Pinnacle occurred on
May 22, 2006, with the confirmation of ratings and the
assignment of a positive ratings outlook.

Pinnacle Entertainment, Inc., owns and operates five casino
properties in the United States. In addition, the company is
developing two casinos in St. Louis, Missouri and also signed an
agreement to acquire two additional gaming licenses in
Louisiana, one of which it intends to utilize to build a second
casino resort in Lake Charles, Los Angeles.  Internationally,
Pinnacle operates casinos in Argentina, and since May 2006, a
casino adjoining the Four Seasons Resort Great Exuma at Emerald
Bay in the Bahamas.


PINNACLE ENTERTAINMENT: Extends Tender Offer to Sept. 13
--------------------------------------------------------
Pinnacle Entertainment, Inc., has extended the expiration date
of its offer to purchase any and all of the outstanding 12%
Notes due 2001 (Cusip No. 740822AA9) and 13% Senior Exchange
Notes due 2001 (Cusip No. 740848AF3) issued by President
Casinos, Inc., until 8:00 a.m., New York City time, on
Sept. 13, 2006.  The previously scheduled expiration date was
8:00 a.m., New York City time, on Sept. 7, 2006.  Subject to the
satisfaction of the remaining tender offer conditions, the
Company will accept and purchase any Notes validly tendered on
or prior to the extended expiration date.

The terms and conditions of the tender offer for the Notes are
more particularly described in the Company's Offer to Purchase
dated July 19, 2006.  As of Sept. 6, 2006, approximately US$74.6
million, or about 99.5% of the outstanding original principal
amount of the Notes, has been tendered.  Of this amount, the
Company has already purchased approximately US$74.6 million in
original Notes validly tendered prior to or on Aug. 29, 2006.  
The Company is offering to purchase Notes at a purchase price of
US$809.07 per US$1,000.00 of original principal amount of the
Notes.

HSBC Bank USA, National Association, is the depositary agent in
connection with the Tender Offer.  D.F. King & Co., Inc. is the
information agent for the Tender Offer.  Requests for copies of
the Offer to Purchase and Letter of Transmittal should be
directed to the information agent at (800) 967-7635.

                       About Pinnacle

Headquartered in Las Vegas, Nevada, Pinnacle Entertainment, Inc.
(NYSE: PNK) -- http://www.pnkinc.com/-- owns and operates   
casinos in Nevada, Louisiana, Indiana and Argentina, owns a
hotel in Missouri, receives lease income from two card club
casinos in the Los Angeles metropolitan area, has been licensed
to operate a small casino in the Bahamas, and owns a casino site
and has significant insurance claims related to a hurricane-
damaged casino previously operated in Biloxi, Mississippi.  
Pinnacle opened a major casino resort in Lake Charles, Louisiana
in May 2005 and a new replacement casino in Neuquen, Argentina
in July 2005.

                        *     *     *

As reported in the Troubled Company Reporter on May 24, 2006,
Standard & Poor's Ratings Services revised its CreditWatch
implications on Las Vegas-based casino owner and operator
Pinnacle Entertainment Inc. to positive from negative.

As reported in the Troubled Company Reporter on March 20, 2006,
Moody's Investors Service placed the ratings of Pinnacle
Entertainment, Inc. on review for possible upgrade.  Pinnacle
ratings affected include its B2 corporate family rating, B1
senior secured bank loan rating, and Caa1 senior subordinated
debt rating.

As reported in the Troubled Company Reporter on Mar. 15, 2006,
Fitch Ratings has placed the ratings of Pinnacle Entertainment
on Rating Watch Negative.  The ratings affected include 'B'
issuer default rating; 'BB/RR1' senior secured credit facility
rating; and 'CCC+/RR6' senior subordinated note rating.


PINNACLE ENT: Sands & Traymore Buy Cues Fitch to Hold NegWatch
--------------------------------------------------------------
Pinnacle Entertainment announced on Sept. 5 it was acquiring the
Atlantic City Sands from Atlantic Coast Entertainment Holdings
Inc., which is controlled by Carl Icahn, for roughly US$270
million.  Fitch's ratings for Pinnacle remain on Rating Watch
Negative at this time.

Fitch's ratings on Pinnacle are:

   -- Issuer Default Rating: 'B';
   -- Bank facility 'BB/RR1'; and
   -- Sub notes 'CCC+/RR6'.

On March 13, Fitch had placed PNK on Rating Watch Negative
following its announcement of a merger agreement with Aztar
Corp.  While Pinnacle eventually lost out to Columbia Sussex in
a bidding war for Aztar, Fitch maintained its Negative Rating
Watch.  After Columbia Sussex's successful bid, Pinnacle
maintained that entering the Las Vegas and/or Atlantic City
markets was a strategic priority and Fitch believed there were
enough potential sellers that another acquisition opportunity
was likely in the near term, which could have negative credit
implications. Fitch will review the terms of the transaction,
the potential size of the project, and the impact on its current
ratings prior to resolution of the Rating Watch.

PNK's liquidity was US$856 million as of June 30, which
consisted of US$372 million in cash and US$484 million available
on its credit facility, so the company does not need financing
for the transaction.

Pinnacle currently operates five casinos -- one in southeast
Indiana, one in Reno, Nevada, and three in Louisiana.  In
second-half 2006, Pinnacle will begin room expansions at three
of its existing properties and is in the process of acquiring
the President Casino in St. Louis, Missouri.  PNK will expand in
the St. Louis market with one new casino opening in 2007 and a
second in 2008.  PNK also plans to open a second property in
Lake Charles, Louisiana in 2009.  Thus, the company already has
a very solid and aggressive pipeline of growth that will be
extended if this transaction is completed.  The Atlantic City
market is likely the second most gaming-friendly market from a
regulatory standpoint and Fitch recognizes the long-term value
of entering the AC market and further diversifying the company's
cash flow.

The AC Sands will be shut down within 70 days following the
close of the acquisition, which is expected to occur by the end
of this year.  A project timetable was not announced, but the
swift closure will make the process move more quickly.  A 24- to
36-month construction period after closure would mean a
2009-2010 opening.




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


ALEA GROUP: Morgan Stanley Owns 7.48% of Company's Common Shares
----------------------------------------------------------------
Alea Group Holdings (Bermuda) Ltd. had been informed on
Sept. 6, 2006, of the ownership by Morgan Stanley Securities
Limited of 12,992,318 Alea common shares, representing
approximately 7.48% of the issued common share capital of the
company.

Alea stated that it had been informed by Morgan Stanley
Securities Limited that this ownership in Alea shares was at the
close of business on Sept. 5, 2006.  Alea has 173,710,665 common
shares outstanding and has no treasury shares.

Morgan Stanley Securities Limited is a member of the Morgan
Stanley group of companies.  Those Morgan Stanley group
companies which are direct or indirect holding companies of
Morgan Stanley Securities Limited are, under the terms of Alea's
by-laws, each interested in any shares in which Morgan Stanley
Securities Limited is interested.

                        *    *    *

On Feb. 1, 2006, A.M. Best Co. downgraded the financial strength
rating to B from B++ and the issuer credit rating to "bb" from
"bbb" of the insurance and reinsurance operating subsidiaries of
Alea Group Holdings (Bermuda) Ltd. (collectively referred to as
Alea Group or Alea).

Subsequently, A.M. Best withdrew all ratings and assigned an
NR-4 (Company Request) to the Alea Group companies.

The downgrade followed significant deterioration in the
company's consolidated risk-adjusted capitalization as a result
of worse than anticipated performance in 2005 due to run-off
charges, catastrophe losses and further adverse reserve
development.  A.M. Best believed that the company is likely to
continue to be affected by high expenses related to the
transition of Alea Group into run off and the continuing
possibility of adverse reserve development.


REFCO INC: Wants Exclusive Plan-Filing Period Extended to Dec. 5
----------------------------------------------------------------
Refco Inc., and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to extend, for an
additional 95 days, the periods for them to:

  -- exclusively file a Chapter 11 plan through and including
     Dec. 5, 2006; and

  -- solicit acceptances of that plan until Feb. 3, 2007,

without prejudice to the Debtors' right to seek further
extensions of the Exclusive Periods.

From the outset of their Chapter 11 cases, the Debtors have
worked diligently to stabilize and preserve the value of their
businesses, Sally McDonald Henry, Esq., at Skadden, Arps, Slate,
Meagher & Flom LLP, in New York, tells the Bankruptcy Court.

After the Debtors filed for bankruptcy, Ms. Henry relates, the
Debtors initiated the process to sell their regulated futures
brokerage business.  Despite facing numerous complicated issues,
the Debtors managed in roughly a month to hold a competitive
auction with five active bidders and structure the sale of their
assets in an unprecedented dual-bankruptcy structure, ultimately
resulting in enormous benefit to the estates through a sale of
futures brokerage business to Man Financial Inc.

Ms. Henry notes that through the Man Sale and various other
smaller asset sales, more than US$1,000,000,000 in proceeds has
come into the Refco, Inc. estates for ultimate distribution to
creditors.  The Debtors and Marc Kirschner, the Chapter 11
Trustee of Refco Capital Markets, Ltd.'s estate, continue to
analyze and value their remaining assets to realize value for
the Debtors' creditors and interest holders for distribution
through a plan of reorganization.

Concurrently with managing the orderly sale and wind-down of
their business operations, Ms. Henry states that the Debtors
have been involved in numerous complex and expedited litigations
that have returned significant value to their estates and have
helped to clarify legal positions of various case
constituencies.  The Debtors continue to evaluate other possible
causes of action against various parties that might serve as
additional sources of value to fund a plan.

In addition, the Debtors and their advisors continue to devote
significant time and effort to analyze, among others:

  (i) the complex web of intercompany obligations among the
      Debtors; and

(ii) the quantification and evaluation of claims asserted
      against the Debtors' estates by third-party creditors.

Although the claims analysis process has been ongoing since the
Petition Date, Ms. Henry points out that the claims bar date
recently passed and the last of the timely filed proofs of claim
was added to the claims register as of Aug. 21, 2006.  Thus, the
full-blown claims analysis is only in its early stages, and the
results of that process may fundamentally affect the structure
of any proposed reorganization plan.

In this light, Ms. Henry states that the Debtors have been able
to develop a framework for a consensual resolution of their
cases.  The process is ongoing, and the Debtors' models may
require revision as newly received claims data is used to
confirm or revise the Debtors' underlying liability assumptions.

Furthermore, the Debtors continue to assess potential claims and
causes of action that may provide additional assets to fund a
reorganization plan.

Now that the Debtors' efforts have yielded fruit and the
groundwork for a global resolution of their cases is in place,
the Debtors should be given the opportunity to bring the process
to completion, Ms. Henry tells Judge Drain.

The Debtors maintain that the Exclusive Periods are designed to
afford them the opportunity to negotiate and propose a Plan
without the disruption that might be caused by competing plans.

A hearing on the Debtors' Second Extension Motion will be held
on Sept. 12, 2006, at 10:00 a.m.

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


REFCO INC: Wants Removal Period Extended to Dec. 12
-------------------------------------------------------
Refco Inc., and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to extend, until
Dec. 12, 2006, the period within which they may file notices of
removal with respect to actions, pursuant to Bankruptcy Rule
9006(b).

The Debtors tell the Court that when they filed for bankruptcy,
they were plaintiffs in 37 actions and proceedings in a variety
of state and federal courts throughout the country.

Sally McDonald Henry, Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in New York, relates that neither the Debtors nor
Refco Capital Markets, Ltd., has reviewed all the Actions to
determine whether any of those should be removed under Rule
9027(a)(2) of the Federal Rules of Bankruptcy Procedure because
the Debtors have continued to focus primarily on winding down
their businesses and formulating a global resolution of their
cases.

Ms. Henry asserts that the extension of the Removal Period will
afford the Debtors sufficient opportunity to assess whether the
Actions can and should be removed, hence, protecting their
valuable right to adjudicate lawsuits under Section 1452 of the
Judiciary and Judicial Procedure Code.

Until the Debtors have had a sufficient time to develop a
consensual plan of reorganization in their cases, it would be
premature to allow the Removal Period to lapse, as the plan
formation process may well impact the Debtors' decisions
regarding the removal of the Actions, Ms. Henry insists.

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


GLOBAL CROSSING: Launches VoIP Ready-Access Conferencing Service
----------------------------------------------------------------
Global Crossing disclosed yet another way to encourage
enterprise customers to migrate to a converged IP solution by
combining its Ready- Access audio conferencing service with its
Voice over Internet Protocol or VoIP connection, giving users an
efficient and convenient way to combine the value and ease of an
on-demand audio conferencing service with the cost savings of
VoIP.

VoIP Ready-Access service provides users with a connection to an
on-net private dialing plan that lets them access Global
Crossing's flagship reservationless, on-demand Ready-Access
audio conferencing service. Global Crossing Ready-Access has a
robust set of audio conferencing features and is fully
integrated with Global Crossing Ready-Access Web Meeting and
Global Crossing Live Meeting (provided by Microsoft).  VoIP
Ready-Access uses a converged IP network for both the audio and
Web features.  This lets users share slides and applications, as
well as record meetings, making conferences more efficient and
productive.

"Global Crossing is combining the power of its collaboration
services with the efficiencies of our managed, converged IP
network to help enterprise customers fully integrate audio
conferencing into their VoIP solutions," said Anthony Christie,
Global Crossing's chief marketing officer.  "By providing IP
access to our audio conferencing service, we can significantly
reduce our customers' expenses, and by using our managed
converged IP network, customers can focus attention on managing
their own business."

VoIP Ready-Access Service is a feature of both Global Crossing
VoIP On-Net Plus and VoIP Outbound services.  VoIP On-Net Plus
Service(TM) is a fully integrated voice virtual private network
that helps enterprises decrease toll charges on calls between
company sites without the need for additional equipment at each
location.  The service, which makes it possible for customers to
complete calls to their office locations via Global Crossing's
worldwide VoIP network, also helps customers simplify their
transition to a converged VoIP solution.

The new VoIP Ready Access Audio Conferencing Service allows VoIP
On-Net Plus and VoIP Outbound services customers to use their
private dialing plans and save on toll charges not only when
they make two-way calls, but also when they set up audio
conferences.  The new capability routes calls via Global
Crossing's VoIP network to its hosted, highly scalable and
reliable audio conferencing ports.

Enterprise customers can now dial into Ready-Access audio
conferences from converged connections based on IP VPN, direct
Internet access or public Internet access.  Using these access
methods provides an end-to-end IP connection to Global
Crossing's audio conferencing ports and eliminates toll charges
or termination fees.

Global Crossing continues to provide TDM access to the Ready-
Access audio conferencing service as a feature of its Outbound
Voice Service, and Public Switched Telephone Network or PSTN
access for off-campus locations, using existing toll free or
direct dial access methods.

VoIP Ready-Access combines Global Crossing's industry-leading
enterprise VoIP services portfolio with its expertise in audio
conferencing services to deliver a fully-integrated and managed
audio, video and Web conferencing collaboration solution.  
Global Crossing's fully managed converged IP network provides
voice, data, video and IP services to carrier, enterprise and
government customers with superior quality, reliability,
availability and scalability.

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

At June 30, 2006, Global Crossing Ltd.'s balance sheet showed
US$1.87 billion in total assets and US$1.95 billion in total
liabilities, resulting to a stockholders' deficit of
US$86 million.  The Company reported a US$173 million
stockholders' deficit on Dec. 31, 2005.


INTELSAT CORP: To Enter Into A New Sr. Secured Credit Facility
--------------------------------------------------------------
Intelsat Corp., formerly known as PanAmSat Corp., expects to
enter into a new senior unsecured credit facility, to the extent
necessary to fund its pending change of control offer.  

As previously reported, completion of the acquisition of
Intelsat Holding Corp., formerly known as PanAmSat Holding
Corp., by Intelsat (Bermuda), Ltd., a subsidiary of Intelsat,
Ltd., on July 3, 2006, resulted in a change of control under the
indenture governing Intelsat Corp.'s approximately US$657
million principal amount outstanding 9% senior notes due 2014.
As a result, the holders of these notes have the right to
require Intelsat Corp. to repurchase the notes at a price equal
to 101% of their principal amount, plus accrued and unpaid
interest.

Intelsat Corp. commenced an offer to purchase the 2014 senior
notes on Aug. 2, 2006.  The Change of Control Offer expires on
Sept. 26, 2006.  Intelsat Corp. announced that, to the extent
holders of the 2014 senior notes tender their notes in the
Change of Control Offer and it requires funds to complete the
Change of Control Offer, it expects to enter into a new senior
unsecured credit facility, the proceeds of which will be used to
consummate the Change of Control Offer and to pay related fees
and expenses.

Intelsat Corp., formerly known as PanAmsat Corp. after Intelsat
Bermuda's acquisition of the company on July 2006, is a leading
global provider of video, broadcasting and network distribution
and delivery services.  It transmits 1,991 television channels
worldwide and, as such, is the leading carrier of standard and
high-definition signals.  In total, the Company's in-orbit fleet
is capable of reaching over 98 percent of the world's population
through cable television systems, broadcast affiliates, direct-
to-home operators, Internet service providers and
telecommunications companies.  In addition, PanAmSat supports
satellite-based business networks in the U.S., as well as
specialized communications services in remote areas throughout
the world.  

                         *     *     *

As reported in the Troubled Company Reporter on Aug. 31, 2005,  
Standard & Poor's Ratings Services placed PanAmSat's `BB'
corporate credit rating, the second highest junk level, on
CreditWatch with negative implications.  The action follows the  
announcement of a definitive merger agreement between Intelsat
and PanAmSat Holding Corp., the parent of PanAmSat Corp.


INTELSAT CORP: Moody's Puts B2 Rating on Sr. Unsecured Term Loan
----------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating to Intelsat
Corp.'s (old PanAmSat Corp.) proposed senior unsecured term
loan, the proceeds of which will be used to fund the repurchase
of the existing 9% senior notes at Intelsat Corp., that are
subject to a mandatory change of control offer triggered by the
acquisition of PanAmSat by Intelsat.  If the change of control
offer is fully accepted, Moody's will withdraw the ratings on
the existing 9% senior notes, due 2014.  Moody's views the new
term loan as a dollar for dollar replacement of the existing
notes, with minimal impact on leverage or cash flow.  In
addition, Moody's has affirmed all existing ratings.  The
outlook remains stable.

Moody's has taken these ratings actions:

   Intelsat Corp.

   -- Proposed Sr. Unsecured Term Loan, due 2014: Assigned B2;

   -- 9% senior notes, due 2014: Affirmed B2 (to be withdrawn if
      the change of control offer is fully accepted);

   -- Guaranteed Sr. Secured Revolver, due 2012: Affirmed B1;

   -- Guaranteed Sr. Secured Loan A: Affirmed B1;

   -- Guaranteed Sr. Secured Loan B: Affirmed B1;

   -- 6.375% senior secured notes, due 2008: Affirmed B1;

   -- 6.875% senior secured debentures, due 2028: Affirmed B1;
      and

   -- 9% senior notes, due 2016: Affirmed B2.

   Intelsat Ltd

   -- Corporate family rating: Affirmed B2;
   -- SGL Rating: Affirmed SGL-2;
   -- 5.25% Global notes, due 2008: Affirmed Caa2;
   -- 7.625% Sr. Notes, due 2012: Affirmed Caa2; and
   -- 6.5% Global Notes, due 2013: Affirmed Caa2;
   
   Intelsat (Bermuda) Ltd.:

   -- 9.25% Guaranteed Sr. Notes: Affirmed B2;
   -- Floating Rate Sr. Notes: Affirmed Caa1;
   -- 11.25% Sr. Notes: Affirmed Caa1;

   Intelsat Intermediate Holding Company Ltd.

   -- Sr. Discount Notes, due 2015: Affirmed Caa1;
   
   Intelsat Subsidiary Holding Company Ltd.:

   -- Guaranteed Sr. Secured Revolver, due 2012: Affirmed B1;
   -- Guaranteed Sr. Secured T/L B, due 2013: Affirmed B1;
   -- Sr. Floating Rate Notes, due 2012: Affirmed B2;
   -- 8.25% Sr. Notes, due 2013: Affirmed B2; and
   -- 8.625% Sr. Notes, due 2015: Affirmed B2.

The outlook is stable.

Intelsat, headquartered in Bermuda, is the largest fixed
satellite service operator in the world and is owned by Apollo
Management, Apax Partners, Madison Dearborn, and Permira.

                                                 
INTELSAT CORP: S&P Rates US$667 Million Credit Facility at B
------------------------------------------------------------
Standard & Poor's Rating Services assigned a 'B' rating to
Intelsat Corp.'s US$667 million senior unsecured credit
facility.  Proceeds from the loan will be used to purchase up to
US$657 million of Intelsat Corp.'s (formerly PanAmSat Corp.'s)
9% senior unsecured notes due in 2014 to the extent that they
are put to the company because of a change of control provision
triggered by parent Intelsat Ltd.'s July 2006 purchase of
PanAmSat.

The rating on the new credit facility, which matures in 2014, is
two notches below the corporate credit rating, reflecting the
significant amount of secured debt in the capital structure.  
All other ratings for Intelsat Ltd. and Intelsat Corp. and
related entities are affirmed. Affirmations include the 'BB-'
corporate credit ratings for Intelsat Ltd. and Intelsat Corp.
The outlook for both entities is stable.

Intelsat is the largest global satellite services provider,
ranking ahead of SES Global S.A. in terms of revenue.  
Consolidated debt for Intelsat totaled about US$11.4 billion as
of June 30, 2006, pro forma for the acquisition of PanAmSat.

"The ratings on Intelsat primarily reflect high financial risk
from acquisition-related debt and a demonstrated shareholder-
oriented financial policy," said Standard & Poor's credit
analyst Susan Madison. Although the company has indicated it
will refrain from shareholder distributions for one year
following the PanAmSat transaction, (absent an initial public
offering), the company's historical financial policy suggests
that it may make substantial shareholder distributions over the
medium term.  Other concerns include mature industry growth
prospects, declining demand for point-to-point satellite
applications, and modest risk of satellite failure.

Tempering factors include:

   -- good cash flow predictability from a substantial combined
      US$8.2 billion backlog of future revenue derived from
      long-term contracts (as of June 30, 2006);

   -- limited competition because of high barriers to entry and
      orbital slot scarcity;

   -- the essential nature of satellite services for point-to-
      multipoint applications;

   -- strong EBITDA margins and discretionary cash flow from
      low variable costs; and

   -- fixed-cost and capital expenditure saving opportunities
      from combining Intelsat and PanAmSat.


WG (BERMUDA): Deadline for Proofs of Claim Filing Is Sept. 15
-------------------------------------------------------------
WG (Bermuda) Ltd.'s creditors are given until Sept. 15, 2006, to
prove their claims to Robin J. Mayor, the company's liquidator,
or be excluded from receiving any distribution or payment.

Creditors are required to send by the Sept. 15 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mayor.

A final general meeting will be held at the liquidator's place
of business on Oct. 5, 2006, at 9:30 a.m., or as soon as
possible.

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

WG (Bermuda)'s shareholders agreed on Aug. 24, 2006, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

         Robin J. Mayor
         Messrs. Conyers Dill & Pearman
         Clarendon House, Church Street
         Hamilton, HM DX, Bermuda




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


AES CORP: Unit Mulls Hydro Generation Projects for Expansion
------------------------------------------------------------
Vito Mandilovich -- the general manager of AES Tiete SA, a unit
of AES Corp. -- told Business News Americas that the firm is
considering new small-scale hydro generation projects in
preparation for its first expansion since its 1999
privatization.

"We are already looking at some hydroelectric projects, but
there is nothing decided.  We will expand when our financials
allows us to," BNamericas relates, citing Mr. Mandilovich.

According to BNamericas, AES Tiete is turning away from thermo
and larger hydro projects to concentrate on hydro plants with up
to 30 megawatts capacity.

BNamericas notes that AES Tiete is concerned about fuel supply
for thermo and government-controlled auctions -- where prices
are lesser -- for large-scale hydro.

Mr. Mandilovich told BNamericas, "We have more liberty to sell
the power [from small hydroelectric power plants] to whoever we
want."

BNamericas underscores that Mr. Mandilovich said there are
several small-scale hydro projects available, including those
from Proinfa, the Brazilian federal government's renewable power
incentive program.

The report says that many Proinfa projects are unlikely to be
constructed due to funding and other problems, allowing AES
Tiete to take them up, BNamericas says, citing Mr. Mandilovich.

AES Tiete, according to BNamericas, seeks to expand in the power
market as demand is due to increase about 5% yearly.

However, Mr. Mandilovich told BNamericas that AES Tiete's board
won't decide on expansions until 2007 or after.

For now, AES Tiete will continue to spend on maintenance.  Next
year, the firm will likely match the 2006 budget of BRL50
million, BNamericas relates, citing Juan Castagnino, the
operations and maintenance director of AES Tiete.

BNamericas underscores that most of AES Tiete's budget will be
spent on the completion of its program to upgrade and revamp 32
turbines and improve the long-distance control center.

Mr. Castagnino told BNamericas, "We have to be ready to generate
power whenever the national grid operator requires us to.  Some
of these turbines haven't been opened up in the past 30 years."

BNamericas reports that Mr. Castagnino said AES Tiete's aim is
to decrease operational costs by 15% on average and introduce
real-time control of turbines.

"We don't focus on increasing capacity because the regulatory
structure does not allow us to benefit commercially by selling
this power at a higher price," Mr. Castagnino told BNamericas.

                       About AES Tiete

AES Tiete SA is an electric power generation company in Brazil.  
The company has 2,651 megawatts of installed generation
capacity.  It is comprised of 10 operating hydroelectric plants
along the Tiete, Pardo, and Grande Rivers in the state of Sao
Paulo, Brazil.  The company's generation plants have an
installed capacity of 2,651 megawatts.  Formerly known as
Geracao de Energia Eletrica Tiete, AES Tiete was acquired by AES
Corp. in Oct. 1999.  The company operates contracts to sell
electricity to major electricity distribution companies,
including Electropaulo, which is also controlled by AES and its
consortium partners.  

                      About AES Corp.

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

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

                        *    *    *

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

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

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


BANCO BRADESCO: Joins Dow Jones Sustainability World Index List
---------------------------------------------------------------
Banco Bradesco SA reported that it is now listed on the Dow
Jones Sustainability World Index or DJSI World, according to
Business News Americas.

BNamericas relates that as of Sept. 18, 2006, three Brazilian
firms -- including Banco Bradesco -- will be added to the DJSI
World.  

Firms in the DJSI list have now reached 318, BNamericas reports.

Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco
-- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management.  Bradesco has branches throughout Brazil as
well as one in New York, two in the Bahamas, and four in the
Cayman Islands.  Bradesco offers Internet banking, insurance,
pension plans, annuities, credit card services (including
football-club affinity cards for the soccer-mad population), and
Internet access for customers.  The bank also provides personal
and commercial loans, along with leasing services.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 21, 2006, Fitch Ratings took these rating actions on Banco
Bradesco S.A.:

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

   -- Short-term Foreign Currency rating affirmed at 'B';

   -- Local Currency Issuer Default Rating affirmed at 'BBB-',
      Outlook Stable;

   -- Short-term Local Currency rating affirmed at 'F3';

   -- Individual rating affirmed at 'B/C';

   -- Support rating affirmed at '4';

   -- National Long-term affirmed at 'AA+(bra)', Outlook remains
      Stable; and

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


BANCO BRADESCO: Unit Inks Financial Services Accord with Panvel
---------------------------------------------------------------
Wagner Aguado -- the executive director of Finasa, the consumer
finance unit of Banco Bradesco SA -- told Business News Americas
the firm has signed a financial services agreement with the
Panvel Pharmacy chain in southern Brazil.

According to BNamericas, the accord focuses on a private label
credit card issued through the pharmacy.  It also includes lost
or stolen card insurance and unemployment insurance.

Finasa expects to issue -- through the partnership with Panvel -
- about 50,000 private label cards before the end of 2006.
BNamericas says, citing Mr. Aguado.

Mr. Aguado told BNamericas that Banco Bradesco could add other
services including personal loans and additional insurance
products to the agreement in the future.  The bank also expects
to disclose within the next 60 days four more similar accords
with varying retail partners.

BNamericas relates that Mr. Aguado said, "We've already started
some pilot programs and will probably announce something before
the end of September."

Banco Bradesco also runs financial services accords with various
national and regional retailers, BNamericas says.  The largest
of the agreements was with Casas Bahia.

BNamericas notes that Banco Bradesco disclosed a partnership in
July with Coop -- a Sao Paulo consumer cooperative.  In June,
the company partnered with Gbarbosa, a northeastern retailer.

Banco Bradesco, says BNamericas, is yet waiting for the central
bank's ratification to start operations at the consumer finance
units it founded with Magazine Leader and Lojas Colombo.

In July 2005, Banco Bradesco disclosed a joint venture with
Magazine Leader.  In Aug. 2005, it entered into a partnership
agreement with Lojas Colombo in Aug. 2005, BNamericas states.

Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco
-- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management.  Bradesco has branches throughout Brazil as
well as one in New York, two in the Bahamas, and four in the
Cayman Islands.  Bradesco offers Internet banking, insurance,
pension plans, annuities, credit card services (including
football-club affinity cards for the soccer-mad population), and
Internet access for customers.  The bank also provides personal
and commercial loans, along with leasing services.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 21, 2006, Fitch Ratings took these rating actions on Banco
Bradesco S.A.:

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

   -- Short-term Foreign Currency rating affirmed at 'B';

   -- Local Currency Issuer Default Rating affirmed at 'BBB-',
      Outlook Stable;

   -- Short-term Local Currency rating affirmed at 'F3';

   -- Individual rating affirmed at 'B/C';

   -- Support rating affirmed at '4';

   -- National Long-term affirmed at 'AA+(bra)', Outlook remains
      Stable; and

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


BANCO DO BRASIL: Gets Central Bank's Approval to Increase Shares
----------------------------------------------------------------
Banco do Brasil said in a statement that on Sept. 1 it received
central bank approval on the increase of its shares.

Banco do Brasil shares will be incorporated into common shares
already traded on Bovespa, the Sao Paulo stock exchange,
Business News Americas reports.

                        *    *    *

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


COMPANHIA SIDERURGICA: Siemesp Seeks to Restrict Sales to Prada
---------------------------------------------------------------
Siemesp -- a group of Brazilian steel can markers -- asked the
anti-trust authorities to restrict the metal sales of Companhia
Siderurgica Nacional aka CSN to Metalurgica Prada, according to
a report by Valor Online.

The anti-trust authorities are studying Siemesp's request, Valor
Online notes.

Valor Online relates that Siemesp is worried that CSN is giving
Prada strategic market information like its pricing policy.

CSN said in April that it would consider acquiring Prada by
paying BRL175 million of the latter's debt, Business News
Americas reports.

                  About Metalurgica Prada

Metalurgica Prada is the largest independent steel products
maker in Brazil with a 23% market share.

           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 Corp. 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)'.


GERDAU SA: Must Pay BRL245 Million Fine to Cade by Sept. 18
-----------------------------------------------------------
Gerdau SA is given until Sept. 18, 2006, to pay its BRL245
million fine to Cade, Brazil's local antitrust agency, Business
News Americas reports.

A press official of Cade told BNamericas that Gerdau -- along
with Belgo-Mineira and Barra Mansa -- filed an injunction not to
pay the fines, which were previously due on Sept. 5, as their
request to overturn Cade's decision was denied.

BNamericas relates that Cade had ruled in Sept. 2005 that the
firms had broken anti-trust rules in rebar sales.  They were
each fined 7% of their gross revenues from rebar sales in 1999.

Belgo-Mineira was fined about BRL76 million while Barra Mansa
must pay BRL24 million, BNamericas states.

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.


MRS LOGISTICA: Cargo Movement Increases 10.5% in Aug. 2006
------------------------------------------------------------
MRS Logistica transported about 10.5 megatons of cargo in
Aug. 2006, about 10.5% higher than the 9.5 megatons recorded in
Aug. 2005, according to local daily Gazeta Mercantil.

Gazeta Mercantil relates that MRS Logistica's cargo movement is
also 5% higher than the 10 megatons in July 2006.

Business News Americas states that CVRD and MBR comprise about
60% of MRS's total transport volumes.  In July 2006, MRS
Logistica transported about 6.15 megatons for the two clients.

MRS Logistica, says BNamericas, plans to boost 2006 transport
levels about 5.5% to 114 megatons, from last year's 108
megatons.

BNamericas reports that MRS Logistica is investing about BRL650
million in 2006 to:

     -- buy new locomotives and rolling stock,
     -- repair tracks,
     -- build a new loading platform, and
     -- upgrade technology.

MRS Logistica operates 1,700km of track in Sao Paulo, Minas
Gerais, and Rio de Janeiro.  It primarily transports cargo for
major shareholders.

                        *    *    *

As reported on Nov. 10, 2005, Standard & Poor's Ratings Services
revised the outlook on the BB- long-term foreign currency rating
of MRS Logistica S.A. to positive from stable, following the
revision of the foreign currency outlook of the Federative
Republic of Brazil.


TAM SA: Adds Eighth Airbus A320 to Fleet
----------------------------------------
TAM S.A. adds another Airbus aircraft A320.  It will be the 8th
Airbus A320 incorporated this year into TAM's fleet, bringing
the total to 89 aircraft, of which 67 are Airbus models:

   -- 13 A319,
   -- 44 A320, and
   -- 10 A330 (two of which are subleased but will return to
      the company this year).

TAM expects its fleet to achieve a minimum of 96 airplanes at
the end of 2006.  The aircraft is part of total contracts of 64
Airbus aircraft:

   -- 15 A319,
   -- 43 A320 and
   -- 6 A330

to be delivered until 2010.  The contracts include the option of
additional 20 aircrafts.  TAM's strategical plan foresees an
operational fleet of 127 Airbus aircraft by the end of 2010.

The new A320 aircraft will fly domestic routes as well as routes
throughout South America, following the increase in demand
observed over the past months.

According to ANAC -- Agencia Nacional de Aviacao Civil -- the
Brazilian authority, the domestic market increased 17.3% in the
period from Jan. to July.  During the same period, year-on-year,
TAM increased 31.2%.  Manufactured with high technology, the
Airbus A320 has the capacity to transport up to 174 passengers.  
With this new A320, TAM strengthens its policy of operating a
young aircraft fleet, offering more comfort to the passengers
with a high technology product.

                         About TAM

TAM S.A. -- http://www.tam.com.br/-- operates regular flights   
to 47 destinations throughout Brazil.  It serves 72 different
cities in the domestic market through regional alliances.
Additionally, it maintains code-share agreements with
international airline companies that allow passengers to travel
to a large number of destinations throughout the world. TAM was
the first Brazilian airline company to launch a loyalty program.
Currently, the program has over 3.3 million subscribers and has
awarded more than 3.6 million tickets.

                        *    *    *

Fitch assigned on Aug. 8, 2006, foreign currency and local
currency Issuer Default Ratings of 'BB' to TAM S.A.  Fitch has
also assigned a national scale rating of 'A+' (bra)' to TAM.
Fitch said the Rating Outlook is Stable.


TAM SA: To Launch Flights to Italy & Increase Service to Paris
--------------------------------------------------------------
TAM S.A. has received official authorization from ANAC - Agencia
Nacional de Aviacao Civil -- the Brazilian authority, to begin
operating regular daily flight to Italy and to increase a third
frequency to Paris.  

TAM will announce the new international route operation, as well
as the new frequency to Paris, initial date and time in the
coming months.  All necessary measures to initiate the flights
are already in place.

Milan will be TAM's third destination in Europe.  The company
already flies to Paris and, as of Oct. 28, will start flying to
London. The official decision presented will also increase a
third frequency to Paris, totaling the 21 weekly frequencies
available for a Brazilian company to fly to France's capital.  
TAM plans to operate one of the daily frequencies from Rio de
Janeiro.

The strategy adopted by TAM in the international segment is to
grow selectivity in profitable markets, and is coherent with its
goal to increase revenues in foreign currencies, further
strengthening its capital structure.  According to ANAC, TAM
ended last July with 52.6% market share among the Brazilian
companies that operate in the international market.

Additionally in the international market, TAM started to operate
a night flight between Guarulhos airport, in Sao Paulo and New
York, as of Sept. 1.  The change in the frequency schedule,
which will continue daily, will allow passengers to land in John
Fitzgerald Kennedy or JFK airport early morning, having more
time to benefit from their stay.

The flight JJ 8080 will leave Sao Paulo at 10:45 p.m., landing
in JFK airport at 7:30 a.m. (local time).  The return flight, JJ
8081, will depart from New York at 8:00 p.m. (local time)
arriving in Sao Paulo at 6:45 a.m..

In order to operate this night flight, which will have two
planes flying simultaneously, TAM has received the second from
three Airbus A330 aircraft that were subleased.  To meet the
strong demand from executives and entrepreneurs, the aircraft
has 39 seats in the executive class and additional 171 in the
economy.

Besides the daily frequency to New York, TAM operates three
daily flights to Miami, one departing from Fortaleza with
connections in Belem and Manaus.  Once a week, the flight to
Miami that leaves from Sao Paulo stops in Salvador.  In South
America, TAM has 42 weekly flights to Buenos Aires, Argentina,
and operates once a day to Santiago, Chile.  Through TAM
Mercosur, it operates to six other destinations:

   -- Asuncion and Ciudad del Este (Paraguay),
   -- Montevideo and Punta del Este (Uruguay), and
   -- Santa Cruz de la Sierra and Cochabamba (Bolivia).

The company also has a daily flight to Lima, Peru, through a
code-share operation with Taca.

                         About TAM

TAM S.A. -- http://www.tam.com.br/-- operates regular flights   
to 47 destinations throughout Brazil.  It serves 72 different
cities in the domestic market through regional alliances.
Additionally, it maintains code-share agreements with
international airline companies that allow passengers to travel
to a large number of destinations throughout the world. TAM was
the first Brazilian airline company to launch a loyalty program.
Currently, the program has over 3.3 million subscribers and has
awarded more than 3.6 million tickets.

                        *    *    *

Fitch assigned on Aug. 8, 2006, foreign currency and local
currency Issuer Default Ratings of 'BB' to TAM S.A.  Fitch has
also assigned a national scale rating of 'A+' (bra)' to TAM.
Fitch said the Rating Outlook is Stable.


VARIG: Brazilian Judge Sued for Stopping Route Redistribution
-------------------------------------------------------------
Brazil's Civil Aviation Agency has filed a formal complaint
against Judge Marcia Cunha Silva de Carvalho of the Commercial
Bankruptcy and Reorganization Court in Rio de Janeiro for
stopping the redistribution of VARIG's former routes and slots
to other airline companies, Investnews (Brazil) reports.

ANAC commenced the action before the Brazilian Justice Council,
Investnews says.  ANAC argued that only the federal justice
could suspend the redistribution of routes and slots.

ANAC began redistributing VARIG's international routes and take-
off and landing slots late in Aug. 2006 despite an injunction
entered by the Brazilian Bankruptcy Court, Bloomberg News
relates, citing Brazilian newspaper O Estado de S. Paulo.  ANAC
gave VARIG's routes to TAM, Gol, OceanAir, and BRA.

The Injunction allows ANAC to act only if VARIG fails to resume
service on its 272 routes within 30 days of receiving a new
route permit, Estado said, according to Bloomberg.  VARIG has
not received new permits.

ANAC was fined BRL1,000,000 -- US$467,500 -- by the Brazilian
Bankruptcy Court for violating the injunction, Bloomberg
relates, citing another Brazilian newspaper Folha de S. Paulo.  
Judge Cunha lifted the fine after ANAC agreed to stop the
redistribution.

                         About VARIG

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

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

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


VARIG S.A.: Port Authority Wants to Collect Flight Fees
-------------------------------------------------------
The Port Authority of New York and New Jersey asks the Honorable
Robert D. Drain of the U.S. Bankruptcy Court for the Southern
District of New York to compel VARIG, S.A., and its two foreign
debtor-affiliates to pay postpetition flight fees and other fees
totaling US$207,500 as an administrative expense pursuant to
Sections 105, 503 and 507 of the Bankruptcy Code.

The Port Authority operates four airports in the New York-New
Jersey metropolitan area:

  * John F. Kennedy International Airport,
  * LaGuardia Airport,
  * Newark Liberty International Airport, and
  * Teterboro Airport

VARIG is a party to a Flight Fees Agreement, dated Jan. 1, 2004,
with the Port Authority for flights that take off from the
Kennedy Airport.

VARIG agreed to submit an activity report, setting forth, inter
alia, the number of flights it had taken off at the Kennedy
Airport each month.  VARIG also agreed to pay a flight fee to
the Port Authority.  The activity report is due on the 10th day
of the month following the month the flights occurred.  The
payment of the flight fees is due to the Port Authority 10 days
after the activity report is due.

VARIG submitted its activity report for May, June and July 2006.   
According to the activity report, VARIG owed these flight fees
to the Port Authority:

                Month             Amount Due
                -----             ----------
                May 2006            US$63,752
                June 2006           US$49,614
                July 2006           US$35,359

VARIG also owed these fees to the Port Authority:

       Month       Description                Amount Due
       -----       -----------                ----------
       July 2006   Itinerant aircraft fees      US$58,368
       July 2006   Supplemental Flight Fee         US$250
       May 2006    Monthly parking fee              US$50
       June 2006   Monthly parking fee              US$50
       June 2006   Lost card fee                    US$50
       June 2006   Interterminal vehicle
                     connection service charge       US$6

In an e-mail message dated Aug. 25, 2006, the Port Authority
asked VARIG pay the outstanding amounts.  To date, VARIG has not
paid to the Port Authority any of the flight fees, parking fees,
and charges it incurred at the Kennedy Airport between May and
July 2006.

The Port Authority is entitled to an administrative expense
claim because all the fees and charges accrued postpetition,
Milton H. Pachter, Esq., tells Judge Drain.

The Port Authority has no obligation to continue to allow VARIG
to fly in and out of the Kennedy Airport pending the assumption
or rejection of their Agreement unless VARIG pays for its
obligations, Mr. Milton contends, citing In re NLRB v. Bildisco
and Bildisco, 465 U.S. 513, 531, 104 S. Ct. 1188, 1199 (1984).

                        About VARIG

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

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

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




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


ACE ACADEMY: Shareholders Gather for a Final Meeting on Sept. 21
----------------------------------------------------------------
Ace Academy Limited's shareholders will convene for a final
meeting on Sept. 21, 2006, at:

         Cititrust (Cayman) Limited
         CIBC Financial Centre, George Town
         Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

         Buchanan Limited
         P.O. Box 1170, George Town
         Grand Cayman, Cayman Islands


ANIMI MASTER: Schedules Last Shareholders Meeting on Sept. 21
-------------------------------------------------------------
The Animi Master Structured Products Fund, Ltd.'s final
shareholders meeting will be at 10:30 a.m. on Sept. 21, 2006,
at:

         Ogier, Attorneys
         Queensgate House, South Church Street
         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:

         Ogier
         Attention: Ramanan Navakadadcham
         Queensgate House, South Church Street
         Grand Cayman, Cayman Islands
         Tel: (345) 949 9876
         Fax: (345) 949 1986


ANIMI OFFSHORE: Last Shareholders Meeting Is Set for Sept. 21
-------------------------------------------------------------
The Animi Offshore Structured Products Fund, Ltd.'s final
shareholders meeting will be at 10:45 a.m. on Sept. 21, 2006,
at:

         Ogier, Attorneys
         Queensgate House, South Church Street
         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:

         Ogier
         Attention: Ramanan Navakadadcham
         Queensgate House, South Church Street
         Grand Cayman, Cayman Islands
         Tel: (345) 949 9876
         Fax: (345) 949 1986


CCM INT'L: Last Shareholders Meeting Is Scheduled for Sept. 21
--------------------------------------------------------------
CCM International Small Cap Value Fund, Ltd.'s final
shareholders meeting will be at 10:15 a.m. on Sept. 21, 2006,
at:

         Ogier
         Queensgate House, South Church Street
         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:

         Ogier
         Attention: Ramanan Navakadadcham
         Queensgate House, South Church Street
         Grand Cayman, Cayman Islands
         Tel: (345) 949 9876
         Fax: (345) 949 1986


CCM MASTER: Final Shareholders Meeting Is Scheduled for Sept. 21
----------------------------------------------------------------
CCM Master International Fund, Ltd.'s final shareholders meeting
will be at 10:00 a.m. on Sept. 21, 2006, at:

         Ogier
         Queensgate House, South Church Street
         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:

         Ogier
         Attention: Ramanan Navakadadcham
         Queensgate House, South Church Street
         Grand Cayman, Cayman Islands
         Tel: (345) 949 9876
         Fax: (345) 949 1986


CHILECTRA INTERNACIONAL: Final Shareholders Meeting Is Sept. 21
---------------------------------------------------------------
Chilectra Internacional's shareholders will convene for a final
meeting at 9:00 a.m., on Sept. 21, 2006, at:

         Enersis S.A.
         Avenida Santa Rosa 76
         Santiago de Chile

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

The liquidator can be reached at:

         Maples and Calder, Attorneys-at-law
         P.O. Box 309GT, Ugland House
         South Church Street, George Town
         Grand Cayman, Cayman Islands


CHINA FUND: Calls Shareholders for a Final Meeting on Sept. 21
--------------------------------------------------------------
The China Fund's final shareholders meeting will be at 10:00
a.m. on Sept. 21, 2006, at:

         Deloitte
         Fourth Floor, Citrus Grove
         P.O. Box 1787, 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:

         Stuart Sybersma
         Attention: Joshua Taylor
         Deloitte
         P.O. Box 1787, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949 7500
         Fax: (345) 949 8258


COUNTRY HAVEN: Liquidator Presents Wind Up Accounts on Sept. 21
---------------------------------------------------------------
Country Haven Limited's shareholders will convene for a final
meeting on Sept. 21, 2006, at:

         Cititrust (Cayman) Limited
         CIBC Financial Centre, George Town
         Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

         Buchanan Limited
         P.O. Box 1170, George Town
         Grand Cayman, Cayman Islands


ENERSIS INTERNACIONAL: Final Shareholders Meeting Is on Sept. 21
----------------------------------------------------------------
Enersis Internacional's shareholders will convene for a final
meeting at 9:00 a.m., on Sept. 21, 2006, at:

         Enersis S.A.
         Avenida Santa Rosa 76
         Santiago de Chile

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

The liquidator can be reached at:

         Maples and Calder, Attorneys-at-law
         P.O. Box 309GT, Ugland House
         South Church Street, George Town
         Grand Cayman, Cayman Islands


FIRST SUMMIT: Sets Final Shareholders Meeting on Sept. 21
---------------------------------------------------------
First Summit Investments Limited's shareholders will convene for
a final meeting on Sept. 21, 2006, at:

         Smith Barney Private Trust Company (Cayman) Limited
         CIBC Financial Centre, George Town
         Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

         Buchanan Limited
         P.O. Box 1170, George Town
         Grand Cayman, Cayman Islands


METRO INVESTMENTS: Last Shareholders Meeting Is Set for Sept. 21
----------------------------------------------------------------
Metro Investments Ltd's shareholders will convene for a final
meeting on Sept. 21, 2006, at:

         Smith Barney Private Trust Company (Cayman) Limited
         CIBC Financial Centre, George Town
         Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

         Buchanan Limited
         P.O. Box 1170, George Town
         Grand Cayman, Cayman Islands


PERCIPENCE LTD: Last Day to File Proofs of Claim Is on Sept. 22
---------------------------------------------------------------
Percipence Ltd.'s creditors are required to submit proofs of
claim by Sept. 22, 2006, to the company's liquidator:

         Commerce Corporate Services Limited
         P.O. Box 694GT, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949 8666
         Fax: (345) 949 7904
              (345) 949 0626

Creditors who are not able to comply with the Sept. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Percipence Ltd.'s shareholders agreed on Aug. 4, 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
=========


AES CORP: Unit to Provide Electricity in British Columbia
---------------------------------------------------------
The AES Corp. disclosed that its Canadian subsidiary AESWapiti
Energy Corp. has signed a power purchase agreement with BC Hydro
Corp. for the AESWapiti 184 MW power generation project that is
expected to be built northeast of Tumbler Ridge in northeastern
British Columbia, Canada.  The agreement has a term of thirty
years beginning in 2010.

AESWapiti is developing the new coal and biomass powered plant
and a 35 kilometer 230Kv power transmission line.  The project
also includes development and operation of a thermal coalmine by
Hillsborough Resources Limited.  Hillsborough Resources Limited
will be the exclusive supplier of coal to the project.  The
power plant will be located at Hillsborough's Wapiti thermal
coal property near Tumbler Ridge where it will be fueled by
thermal coal from the Wapiti property and by up to 20% bio-mass
from local forestry waste.  The estimated cost of the power
plant is US$450 million.

The project is now undergoing review through the BC regulatory
review, which includes filing the power purchase agreement with
the British Columbia Utilities Commission for approval.  
AESWapiti has started the Environmental Assessment process and
is holding information meetings regarding the project in a
number of northeastern BC communities. Construction is expected
to begin in late 2007, after the project receives all necessary
approvals from the Utilities Commission and the Environmental
Assessment Office.  Mine development will begin one year prior
to the opening of the power generation facility, expected in
2010.

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

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

                        *    *    *

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

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

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


SHAW GROUP: Unit Secures Engineering Contract from BASF FINA
------------------------------------------------------------
The Shaw Group Inc. disclosed that its Shaw Stone & Webster unit
has been awarded a contract to provide engineering, procurement,
construction, technology and pre-commissioning services for a
new pyrolysis furnace and associated auxiliary facilities at the
BASF FINA Petrochemicals LP or BFLP Naphtha Steam Cracker in
Port Arthur, Texas. The project, which will utilize Shaw Stone &
Webster's state-of-the-art proprietary USC Pyrolysis Furnace
technology, is scheduled for completion in 2008.  The value of
the contract was not disclosed.

Under a separate contract, Shaw also provided a technology
solution to improve the performance within the BFLP gasoline
fractionator unit.  The application of Shaw Stone & Webster's
proprietary RIPPLE TRAY technology affords BFLP the advantages
of high capacity performance with equally high fouling
resistance.

J.M. Bernhard, Jr., Chairman and Chief Executive Officer of
Shaw, said, "Our focus on innovative technologies and solutions
continues to successfully position Shaw in the expanding
chemicals industry. Shaw's proprietary USC(R) Pyrolysis Furnace
and RIPPLE TRAY technologies allow our clients to achieve
premier process performance, thermal efficiency and ultra-low
emissions without compromising reliability and availability.  We
are pleased to continue our partnership with BASF and Total and
to provide unique solutions that meet their needs and
differentiate Shaw in the marketplace."

BFLP is a joint venture of BASF Corp. and Total Petrochemicals
USA, Inc., two of the worlds leading petrochemical companies.
The Port Arthur facility operates one of the largest steam
crackers of its type in the world, turning naphtha and light
hydrocarbons into ethylene, propylene, and other chemical raw
materials.

                      About Shaw Group

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

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




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


BANCO INTERCONTINENTAL: Collapse Part of Systematic Crisis
----------------------------------------------------------
The defense in the Banco Intercontinental aka Baninter fraud
case claimed that the situation that determined the firm's
collapse as well as the closure of two other companies was part
of a systematic crisis that would have affected the rest of the
banking industry of the Dominican Republic, Dominican Today
reports.

Dominican Today relates that Baninter's collapse cost the
taxpayers about US$5 billion.

However, Rafael Camilo -- the banks superintendent of the
Dominican Republic -- rejected the claim, according to Dominican
Today.

Mr. Camilo told Dominican Today, "What happened in those three
banks did not have anything to do with the others.  The proof is
that the others are there.  They all would have gone down.  
There was excess of loans top associates, but not fraud.  The
hole in Baninter was so deep that it would not allow it to
recover."

In Baninter's case there were no loans to associates but there
were loans to build firms, Dominican Today says, citing Mr.
Camilo.

Mr. Camilo told Dominican Today, "The difference is that you
take money from the depositors and begin to found companies
without registering loans.  When you take money for yourself and
found a company that is not the bank's nor anybody's, that is
called fraud. That is not an associate.  It's for that reason
that the lawyers of the defense get mad at me, because I speak
clearly and I have no tail to step on.  We are working with the
bankruptcy of the three banks and have continued file charges
against those we consider the people in charge, Justice will
decide.  Later that situation will be evaluated and we will see
what happens."

Mr. Camilo explained that fraud is the use of the money of the
depositors to purchase firms without a loan being registered,
Dominican Today states.  

Baninter collapsed in 2003 as a result of massive fraud
that drained it of about US$657 million in funds.  As a
consequence, all of its branches were closed.  The bank's
current and savings accounts holders were transferred to the
bank's new owner -- Scotiabank.  The bankruptcy of Baninter was
considered the largest in world history, in relation to the
Dominican Republic's Gross Domestic Product.  It cost Dominican
taxpayers DOP55 billion and resulted to the country's worst
economic crisis.


VIVA INT'L: To Execute Acquisition Agreements with River Hawk
-------------------------------------------------------------
Viva International, Inc., disclosed that its Board has
authorized the execution of the asset purchase agreements with
San Antonio, Texas-based River Hawk Aviation.

The agreements provide for Viva to acquire assets consisting of
aviation parts inventory and a SAAB 340 for approximately US$2.5
million subject to normal due diligence reviews and adjustments.  
The remaining assets of River Hawk including customer lists,
business processes, name, goodwill and other intangibles will be
acquired for up to 3.5 million in restricted common shares of
Viva.

River Hawk has operated as an aviation brokerage entity since
June 24, 2003, and has primarily generated its sales through the
sales and distribution of aviation parts including turbine
engines.  For the year ended Dec. 31, 2005, River Hawk and a
related entity generated gross revenues of US$707,663 and a
gross margin of US$540,511.  For 2006 present gross revenues are
approximately US$1.5 million and are expected to reach US$1.8
million with estimated gross margins of approximately US$1.2
million.

Viva announced that director Calvin Humphrey who has owned and
operated River Hawk as a private entity would be presenting the
River Hawk opportunity and seeking financial commitments at a
private investment banking conference on Sept. 13 in New York
City.

A secondary presentation is scheduled with representatives of
the Cambridge Group, LLC on Sept. 19 and 20.

Robert Scott, CFO and a Director of Viva, commented, "Our Board
unanimously supports the acquisition of the assets and right to
use the name River Hawk. Our preliminary forecasted calculations
for 2007 indicate that River Hawk (as a subsidiary) can generate
US$2.5 to US$2.8 million with very attractive gross margins and
operating profits.  River Hawk can also be expanded above this
threshold with the infusion of modest amounts of capital.  The
attractiveness of River Hawk also helps Viva in our continuing
build out of our Caribbean operations by the complementary
nature of its core business to our airline subsidiaries.  But
perhaps the most valuable part of this transaction is that it
will bring the aviation managerial expertise of Calvin Humphrey
to Viva.  I am optimistic that the River Hawk acquisition and
addition of Humphrey will enable Viva to obtain the financial
support that it needs to build our aviation holding company."

                 About Viva International

Viva International has a number of airline and aviation-related
interests including two developmental-stage carriers being
readied to operate in regional markets from hubs in Puerto Rico
and Santo Domingo, Dominican Republic.

The Company plans to create a network of regionally based
airlines across the Caribbean, eventually to be linked to key
points in the United States, Latin America, South America, and
Europe.

At present, the Company maintains executive offices in Michigan.

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

                    Going Concern Doubt

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




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


PETROECUADOR: Posts US$398.69MM Income from Aug. Crude Sale
-----------------------------------------------------------
The income of Petroecuador, the state-owned oil company of
Ecuador, from the sale of both Oriente and Napo crude in Aug.
was US$398.69 million, Reuters reports.

According to Reuters, the average price paid for the Oriente
crude was US$61.54 while that of the Napo crude was US$56.89.

Petroecuador told Reuters that its crude exports increased 14%
to 214,233 barrels of crude oil per day in Aug. 2006, from
187,859 of crude per day in July 2006.

Reuters notes that Petroecuador exported about 111,975 barrels
per day of crude in Aug. last year.

Petroecuador's exports have increased since May 2006 after the
government of Ecuador seized the oilfields from US firm
Occidental Petroleum, Reuters states.

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




=====================
E L   S A L V A D O R
=====================


SBARRO: To Open 100 Restaurants in India With RTC
-------------------------------------------------
Sbarro, Inc., disclosed a joint venture with India-based RTC to
open 100 restaurants in India.  Sbarro's joint venture with RTC,
Sbarro Restaurants (India) Limited, will develop and operate
India's first Sbarro restaurants in New Delhi by 2007, with 10
units opening every year over the next 10 years.  The majority
of the restaurants will be located within shopping malls in
major metropolitan areas such as New Delhi and Mumbai.  Earlier
this year, Sbarro announced agreements to open more than 75
units in regions across the globe, including Mexico, Egypt,
Romania, Central America and The Bahamas.

"Our joint venture with RTC will result in Sbarro's largest
international expansion to date and allows us to introduce our
authentic Italian food to yet another culture," said Peter
Beaudrault, president and CEO of Sbarro.  "With 250 malls in
development, India presents a huge opportunity for Sbarro and we
look forward to working with RTC to establish our brand in the
Indian marketplace."

Sbarro will be the first restaurant in India to offer pizza by
the slice and a full Italian menu.  Menu items will be tailored
to the religious and ethnic preferences of the Indian culture
and will exclude beef products and meat-based pasta sauces.  
Additionally, Sbarro chefs will create a variety of new
vegetarian dishes to appeal to the largely vegetarian
population.

"Sbarro's adaptable menu, authentic food and strong franchisee
support have allowed the brand to succeed across a variety of
cultures," said Gaurav Jain, director of RTC.  "We are extremely
optimistic of Sbarro's potential and expect the brand to have a
huge presence in India's developing consumer market, especially
malls, high-traffic locations and mass transit facilities."

Sbarro, Inc. headquartered in Melville, New York, is a leading
quick service restaurant chain that serves Italian specialty
foods.  As of April 23, 2006, the company owned and operated 482
and franchised 491 restaurants worldwide under brand names such
as "Sbarro,", "Umberto's," and "Carmela's Pizzeria".  Total
revenues for fiscal 2005 were approximately US$348 million. The
company announced on June 19, 2006, its international expansion
by opening more than 25 restaurants in Guatemala, El Salvador,
Honduras, The Bahamas and Romania.

                        *    *    *

Moody's Investors Service upgraded on July 10, 2006, both the
corporate family and senior unsecured ratings of Sbarro, Inc.,
to Caa1 from Caa2 while at the same time changed the ratings
outlook to positive from negative.




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


BANCO INDUSTRIAL: S&P Says Low Capitalization Constrain Ratings
---------------------------------------------------------------
On April 4, 2005, Standard & Poor's Ratings Services assigned
these ratings to Banco Industrial S.A.:

   -- long-term foreign issuer credit rating: BB-;
   -- long-term local issuer credit rating: BB-;
   -- short-term foreign issuer credit rating: B; and
   -- short-term local issuer credit rating: B.

The ratings assigned to Banco Industrial S.A. are limited by the
bank's low adjusted capitalization levels and concentrations in
its portfolio. The ratings consider the bank's leading market
position in Guatemala that has been enhanced by the acquisition
of a majority stake of Banco de Occidente, in addition to a
financial profile that leverages on adequate profitability
levels and asset quality indicators.

The bank's adjusted capitalization levels are below the average
reported by other Central American banks rated by Standard &
Poor's Ratings Services, and as expected, were negatively
affected by the acquisition of Banco de Occidente.  Standard &
Poor's expects future capital injections to mitigate the impact
and help maintain adjusted capitalization levels adequate for
the rating category.  Banco Industrial's capital base (adjusted
common equity) excluding subordinated debt and goodwill is small
at Guatemalan quetzales (Q.) 868 million (US$116 million at
Q.7.50 to US$1) as of June 2006, and results in an adjusted
equity-to-assets ratio of 4.3%.  Trends in capital growth are
positive, having experienced a compound rate of growth of 20%
for the past five years, as retained earnings and additional
capital injections help to maintain capital accretion.

Derived from its orientation toward commercial loans, the bank's
loan book shows some concentration in terms of economic sector
and individual exposures.  Given the bank's broad stockholder
spectrum, which relates to the country's most important firms,
related parties are present in the bank's loan portfolio.  
Exposures to related parties, currently well below the 30% limit
of the bank's capital imposed by the regulators, have declined
during the past three years. Nevertheless, we believe their
existence adds risks to the overall asset quality profile.

As the largest bank in Guatemala, with a 25% market share, Banco
Industrial benefits from a large, well-diversified, and stable
deposit base, strong brand-name recognition, and the largest
branch network throughout Guatemala.  Concentration in the
Guatemalan banking industry is high, as the seven largest banks
concentrate around 75% of total assets.  The importance of Banco
Industrial to Guatemala's payment system is high, even before
considering the acquisition of Banco de Occidente, as 24% of
total banking transactions in the country were done through its
network, and tax payments account for 34% of the total.  As of
June 2006, Banco Industrial had assets of Q.20,247 million
(US$2.7 billion), of which gross loans accounted for 42% of
total assets.

Banco Industrial is managed prudently and benefits from an
adequate financial profile.  Asset quality is good in terms of
growth and consistently low delinquencies and charge-offs.  
Reported nonperforming assets stood at 1.1% of gross loans as of
June 2006.  Coverage levels of NPAs, currently at 91%, are
expected to be maintained above the 100% mark, in-line with the
average of the banks in the region, and above average compared
to the Guatemalan financial system.  Banco Industrial has
experienced a positive trend, with a 16% compound rate of loan
growth for the past five years.

Banco Industrial's profitability measures are similar to those
of other Central American banks.  The bank's operating
performance has improved in recent years with a ROA of 1.4% as
of Dec. 2005, heading toward 1.6% for 2006, from an average
level of 1.1% in the past five years, benefiting from increased
revenues from fees and commissions, and better efficiencies.  
Nevertheless, the main source of revenues continues to be
interest margin.

Efficiency is converging to levels reported by other Central
American peers rated by Standard & Poor's, even with its branch
expansion.  As of June 2006, operating expenses as a proportion
of total revenues were 61%, from 57% as of Dec. 2005 due to
costs related to the acquisition of Banco de Occidente.  Still,
such levels compare favorably to the 65% reported in 2003 and to
the Guatemalan banking system.  Post-merger integration efforts
and execution risks are not considered significant since the
acquired branch network is small and the portfolio is composed
mostly of corporate loans.  S&P expects efficiency to converge
near recent reported levels in a short timeframe.

The outlook is stable.  In spite of challenges from the
competitive environment and the limited structure of the
Guatemalan economy, we expect Banco Industrial's financial
profile and strong market presence to be maintained.  In
addition, Standard & Poor's expects Banco Industrial to mitigate
the negative impact of goodwill derived from the acquisition of
Banco de Occidente with capital injections enough to maintain
overall capitalization levels for the rating category.  Should
asset quality, profitability, or adjusted capitalization ratios
deteriorate or if any material and unexpected integration issues
arise, ratings could be revised negatively.  Upward rating
movement could be the result of substantially higher adjusted
capitalization levels that are comparable to those of other
banks in the region, reduction in client concentration, or
reduction of related parties exposures.




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


KAISER ALUMINUM: Extends Contract With A.M. Castle & Co.
--------------------------------------------------------
Kaiser Aluminum reported the extension of a contract with A.M.   
Castle & Co. to supply aerospace manufacturer Raytheon Aircraft   
Company with high-quality fabricated aluminum products.   

The agreement extends an earlier contract to 2010 and calls for
an increased supply of high-quality fabricated aluminum sheet
and plate products.

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

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

                     About A.M. Castle

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

                        About Kaiser

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: Posts US$29 Million Net Loss in June 2006
----------------------------------------------------------
Kaiser Aluminum Corp. filed with the U.S. Bankruptcy Court
for the District of Delaware 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
                                                     ===========

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)  


PETROLEO BRASILEIRO: Considers Exploring for Oil in Jamaica
-----------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras, the state-owned oil firm
of Brazil, is considering an exploration for oil off the coast
of Jamaica, the Jamaica Gleaner reports.

Phillip Paulwell -- Jamaica's Minister of Industry, Technology,
Energy and Commerce -- told The Gleaner after visiting Brazil
that the exploration was part of a deepening cooperation between
Brazil and Jamaica in the energy sector.

The Gleaner notes that Minister Paulwell said, "We are looking
at something happening in the next 30 days."

According to The Gleaner, eight -- of the 20 offshore and four
onshore blocks in Jamaica -- are under license.  Each block is
2,500 square kilometers.

The report says that Australia's Finder Exploration cover five
blocks while Canada's Rainville Energy runs three blocks.

Petrobras was examining the remaining blocks, The Gleaner says,
citing Minister Paulwell.

The Gleaner underscores that Petrobras -- under a standard
exploration accord offered to prospectors by the Petroleum Corp.
of Jamaica -- would be able to conduct explorations for oil for
five years.  If the exploration is successful, the firm would be
given 20 years of extraction rights under a profit-sharing
agreement that could see the Petroleum Corp. keep 12.5%.

After the signing of a renewal of a memorandum of understanding,
Petrobras will give technical aid on ethanol and bio-diesel made
from castor oil plants, The Gleaner relates, citing Minister
Paulwell.

Minister Paulwell told The Gleaner, "I think we should be seeing
some experimental crops this time next year, and once that is
successful then we could see the start of processing."

Minister Paulwell said that castor oil was being considered, The
Gleaner states.

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


SUGAR COMPANY: Agricultural Society to Support Robert Levy
----------------------------------------------------------
The Jamaica Agricultural Society or JAS told the Jamaica The
Observer that it will be cooperating fully with Robert Levy
-- the new chairperson of the Sugar Company of Jamaica -- in the
redevelopment of the sugar cane sector.

As reported in the Troubled Company Reporter-Latin America on
Sept. 8, 2006, Roger Clarke -- Jamaica's minister of agriculture
-- appointed Mr. Levy, the leader of the Jamaica Broilers Group,
to take the place of Drick Latibeaudiere -- Bank of Jamaica's
governor -- as the chairperson  of the Sugar Company's board
starting Sept. 1.  The All-Island Jamaica Cane Farmers
Association or AIJCFA approved of the new board chairperson.

Senator Norman Grant, the president of JAS, said in a release,
"The JAS pledges its full cooperation with the new board of
management, the All-Island Jamaica Cane Farmers Association
(AIJCFA), the sugar cane industry and the Ministry of
Agriculture and Lands, to work relentlessly as partners and
stakeholders in an effort to advance a better quality of life
for the cane farmers."

Mr. Grant told The Observer that urgent steps must be taken to
speed up the transformation of the sugar industry, as it is
important to the well being of the cane farmers as well as the
rural life.

"To this extent, the JAS will now seek to be a more active
stakeholder in helping to create a brighter future for our cane
farmers," The Observer reports, citing Mr. Grant.

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.


SUGAR COMPANY: Vincent Morrison to Demand Operational Changes
-------------------------------------------------------------
Vincent Morrison -- the Island Supervisor for the National
Workers Union and one of the seven person appointed to the new
board of the Sugar Company of Jamaica -- told Radio Jamaica that
he will be insisting on operational changes at the firm.

Radio Jamaica relates that Mr. Morrison also said that he will
demand an injection of capital to modernize sugar plants.

Issues that affect sugar workers will also be prioritized in the
Sugar Company's new board, Radio Jamaica says, citing Mr.
Morrison.

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
===========


DELTA AIR: System Traffic Decreases 3.0% in Aug. 2006
-------------------------------------------------------
Delta Air Lines reported that system traffic for Aug. 2006
decreased 3.0% from Aug. 2005 with a capacity decrease of 2.9%
percent.  

Delta's system load factor was 79.9% in Aug. 2006, decreasing
0.1 points from the same period last year.

Domestic traffic in Aug. 2006 decreased 12.1% year over year
while capacity decreased 12.5%.  Domestic load factor in
Aug. 2006 increased 0.3 points to 80.3%, from the same period a
year ago.  International traffic in Aug. 2006 increased 26.2%
year over year on a 27.9% increase in capacity.  International
load factor was 79.0%, decreasing 1.1 points from Aug. 2005.

During Aug. 2006, Delta operated its schedule at a 98.6%
completion rate compared to 97.1% in Aug. 2005.  Delta boarded
9.4 million passengers during the month of Aug. 2006, a decrease
of 11.6% from Aug. 2005.  Detailed traffic and capacity are
attached.

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


DELTA MILLS: Fails to Make Sept. 1 Interest Payment
---------------------------------------------------
Delta Mills, Inc., disclosed that it will not make the
US$1,489,024 interest payment due on Sept. 1, 2006, on the
Company's outstanding 9-5/8% Senior Notes due 2007.

The Indenture relating to the Notes provides a 30-day grace
period before the nonpayment of interest due on the Notes will
constitute an event of default under the Indenture.  Upon any
such event of default, The Bank of New York, the Trustee under
the Indenture, or the holders of at least 25% in principal
amount of the outstanding Notes, would be entitled to declare
all of the Notes to be due and payable immediately.

In addition, under the Indenture, following the thirty-day grace
period, the Trustee could pursue any available remedy to collect
the payment of principal and interest on the Notes or to enforce
the performance of any provision of the Notes or the Indenture.

Under the Indenture, the Company must pay interest on overdue
installments of interest without regard to any grace period at
the rate of 10-5/8% per annum.  Currently US$30,940,750 in
aggregate principal amount of the Notes is outstanding.  At this
time, the Company has not determined whether it will make the
interest payment prior to the expiration of the grace period.

Business conditions in the Company's principal lines of business
remain difficult, which is affecting the Company's liquidity.  
As disclosed in the Company's Quarterly Report on Form 10-Q for
the third quarter of the Company's fiscal year, defense budget
constraints and allocations are a significant factor in
determining the level of future business of the Company's
government business.

The Company has recently been informed by the U.S. Department of
Defense that overall demand at the Department of Defense for the
products of the Company's customers for the balance of the
government's current fiscal year and into the government's next
fiscal year will be considerably less than anticipated, even
below the minimum levels contained in the contracts currently in
place with the Company's customers.  At the same time, funding
within the Department has been tightening up, resulting in less
money being made available for supplies, and inventory levels
are higher than normal.  The Department has responded by
lowering its monthly delivery order quantities.  The Company's
government business customers have informed the Company that the
government is seeking modification of their contracts with the
government with a view towards contracts involving significantly
lower levels of business.  It is too early to tell the full
impact that this development will have on future orders and
whether this reduction in demand will be temporary or longer-
term.

In addition, the Company has entered into a contract to sell its
inactive Pamplico plant and the adjacent real estate totaling
approximately 145 acres for approximately US$2.25 million, but
the closing on that contract has been delayed.  The contract
provided for closing to occur no later than Aug. 28, 2006.  
However, shortly before Aug. 28, 2006, the potential buyer
requested an extension of the closing date.  The Company agreed
to grant a short extension of the outside date for closing, and
the Company and the potential buyer entered into a written
amendment to the contract providing for a new closing date of
Sept. 6, 2006.

In addition to extending the closing date to Sept. 6, 2006, the
contract amendment requires that the US$50,000 earnest money
deposit (to be applied against the purchase price) held in
escrow be released from escrow and paid to the Company.  The
contract amendment also contains a provision in which the
potential buyer acknowledged that it has completed its
environmental due diligence with respect to the property and is
satisfied with the environmental condition of the property.

The potential buyer has now requested an additional extension of
the closing date beyond Sept. 6, 2006, and has indicated that it
would like to extend the closing date for up to 60 additional
days to complete its financing.  The Company has not yet decided
how to respond to buyer's latest request for an extension of the
closing date.  The Company is considering its alternatives while
it evaluates the request by the potential buyer.

The Company currently intends to maintain its current operations
while it pursues its strategic alternatives.  The Company's
Board and management are actively exploring strategic
alternatives including selling or otherwise disposing of all or
substantially all of the Company's business to one or more third
parties through an insolvency proceeding, or initiating an
insolvency proceeding to provide for the orderly liquidation of
the Company, or some combination of these transactions.  The
Company has not yet determined which of these strategic
alternatives may be most advantageous to the Company or its
stakeholders.

The Company is in discussions with a potential acquiror to
purchase the Company's Beattie plant and certain other assets
and assume certain liabilities of the Company.  The Company
believes that, if the acquisition were consummated, the acquiror
would continue to operate the Beattie plant.  The Company
believes that this potential acquiror has more than adequate
financial resources to effectuate any proposed acquisition.  The
transaction currently under discussion would be structured as an
acquisition pursuant to Sections 363 and 365 of the US
Bankruptcy Code.

To implement the transaction, the Company would be required to
file a bankruptcy petition for reorganization under Chapter 11
of the US Bankruptcy Code and to enter into an arrangement
pursuant to which the Company's Delta 3 plant would finish cloth
for the potential acquiror on a contract basis for a temporary
period.   

Each of FTI Consulting, Inc. and Soles, Brower, Smith & Co. is
assisting the Company in evaluating its strategic alternatives,
including the possible transaction currently under discussion.   

The Company is also in communication with an ad hoc committee of
holders of Notes and has entered into confidentiality agreements
with members of the Ad Hoc Committee.  The Ad Hoc Committee has
informed the Company that the committee includes holders that
beneficially own approximately 41% of the outstanding Notes.

In evaluating its strategic alternatives, the Company is also in
close communication with GMAC Commercial Finance LLC, its senior
lender under its Credit Agreement.

GMAC has informally indicated a willingness to work with the
Company in connection with any debtor-in-possession financing
arrangement.  The Company believes that its Credit Agreement is
sufficient to meet its working capital needs while it pursues
its strategic alternatives, provided that the Company's vendors
continue to be supportive of the Company's operations.

The occurrence of an event of default under the Indenture, such
as the non-payment of interest on the Notes for more than 30
days past the due date for that payment, would become a cross-
default under the Company's Credit Agreement unless the Company
receives a waiver of such default.

                     About Delta Mills

Delta Mills, Inc., a wholly owned subsidiary of Delta Woodside
Industries, Inc. (OTCBB:DLWI) -- http://www.deltawoodside.com/
-- produces a broad range of finished apparel fabrics in four
manufacturing plants in South Carolina.  Delta Mills sells and
distributes its fabrics through a marketing office in New York
City, with sales agents also operating from Atlanta, Chicago,
Dallas, Los Angeles, San Francisco and Mexico.

                     Going Concern Doubt

KPMG LLP in Greenville, South Carolina, raised substantial doubt
about Delta Mills, Inc.'s ability to continue as a going concern
after auditing the Company's consolidated financial statements
for the year ended July 2, 2005.  The auditor pointed to the
Company's recurring losses from operations and uncertainties
with regard to its ability to operate within the covenants and
availability established by its revolving credit facility with
GMAC Commercial Finance LLC.


FORD MOTOR: S&P Maintains Negative Watch on Low-B Ratings
---------------------------------------------------------
Standard & Poor's Ratings Services' 'B+' long-term and 'B-2'
short-term ratings on Ford Motor Co., Ford Motor Credit Co.,
and related entities remained on CreditWatch with negative
implications where they were placed Aug. 18.

The 'BB-' long-term and 'B-2' short-term ratings on FCE Bank
PLC, Ford Motor Credit's European bank, also remained on
CreditWatch with negative implications, reflecting its linkage
to the Ford rating.

"Ford's announcement that it has hired a senior executive from
Boeing Co. as the new Ford CEO broadens Ford's senior management
team and so we consider it a modest positive," said Standard &
Poor's credit analyst Robert Schulz.

The Ford CreditWatch reflects Standard & Poor's decision to
review the ratings in light of the sharply lower production
schedule announced for light trucks in the fourth quarter (down
155,000 units, or 28%, versus fourth-quarter production in
2005).  These cuts, along with the very likely significant cost
reductions to be announced later in Sept., reveal the magnitude
of turnaround efforts needed to deal with Ford's deteriorating
product mix, lower market share, and excess production capacity
in North America.  The lower production will have a significant
negative effect on Ford's cash flow in the fourth quarter.

Although Ford's North American automotive operations are cash-
flow negative, Ford's liquidity should still be sufficient
relative to near-term requirements, as the company has a large
liquidity position composed of cash, marketable securities, and
short-term assets in its VEBA trust (which it could use to meet
certain near-term benefits costs, thereby freeing up other cash)
totaled US$23.6 billion at June 30, 2006 (excluding Ford
Credit).

At June 30, Ford's cash position exceeded debt by about
US$6 billion, and Ford expects to end 2006 with a cash balance
of at least US$20 billion (excluding Ford Credit).

As of June 30, 2006, Ford had US$6.3 billion of committed credit
facilities with various banks, most of which are committed
through June 30, 2010.   

Parent-level debt maturities are moderate for the near term
(US$1.3 billion for the 12 months from June 30, 2006), and long-
term debt has an exceptionally high average maturity of about 25
years.   

Even under the new pension legislation, Standard & Poor's does
not believe Ford faces any significant ERISA-mandated pension
fund contributions for the next few years or the need to make
contributions to avoid Pension Benefit Guaranty Corp. variable-
rate premiums.

Standard & Poor's plans to resolve this CreditWatch by the end
of September.  As part of the review, the rating agency will
meet with Ford's management to discuss the company's evolving
plans to address the heightened challenges it faces in North
America.


NORTEL NETWORKS: Launches New Product Offerings to SMEs
-------------------------------------------------------
Nortel Networks is introducing new product offerings and
simplifications to its Small and Medium Businesses or SMB
program that will allow the company to better support its
current SMB resellers, broaden its channel base and evolve SMB
customers to converged networks and IP-based communications as
business needs change.

As part of this strategy, new and existing value-added resellers
or VARs now have access to pre-defined, easy-to-sell SMB voice
and data packages that address the distinctive requirements,
challenges and budgets of smaller businesses.  In addition,
Nortel is introducing a streamlined fast track accreditation
program that will help lower the cost of entry and increase time
to market for both new and existing SMB channel partners to sell
Nortel's Business Communication Manager or BCM 50.

"Nortel's new initiative demonstrates the Company's commitment
to the SMB market as well as to the channel partners serving
those customers," said Ken Presti, strategy analyst, Presti
Research and Consulting, Inc. "Building upon the BCM50, Nortel
has streamlined its training processes and established pre-
defined SMB solutions that can help channel partners deliver the
value of IP convergence for those small and medium customers."

Simplifications to Nortel's SMB strategy will help increase
momentum for its recently announced IPT 1-2-3 initiative to
provide simple, easy to implement options that help enterprises
migrate or upgrade to IP telephony at their own pace and at a
more affordable cost. Nortel is working closely with its value-
added distributors to substantially increase its SMB channel
base and extend its reach into the SMB market by recruiting new
resellers, particularly ones experienced in SMB voice and data
convergence.

"Nortel understands that resellers are the key channel to reach
the SMB market, and those resellers who are able to quickly and
effectively address the growing opportunity for IP telephony
solutions will be the most successful," said Eric Schoch, vice
president, North American Marketing, Channels and Distribution,
Nortel.  "Nortel is providing a simple way for VARs to attack
this opportunity with pre-defined bundled solutions, streamlined
training, improved quote tools and commercial offers."

Nortel is introducing new standard voice and data packages that
include Nortel's award-winning BCM50.  These packages simplify
the sales process for partners with easy-to-position, easy-to-
configure and easy-to-order business communications solutions:

   -- Two IPT packaged solutions

      These IPT packages provide everything a small office needs
      to implement a high quality IP telephony solution for
      eight or 16 users.  These packages -- which include
      products from the new SMB data portfolio, IP trunks,
      stations, voice mail, unified messaging, and IP
      telephones -- are ideal for new installations or for
      upgrading an installed base site to the latest technology.

   -- Three voice-centric packaged solutions

      Sized in configurations for four, eight and 16 users,
      these pre-defined packages contain everything a small
      business needs for an advanced digital communication
      solution, including digital trunks, stations, digital
      phones and voice mail, as well as unified messaging for
      the eight and 16 user packages.

   -- One data-only solution

      This package includes the newly released SMB data products
      -- the Business Ethernet Switch 100, the Business Access
      Point 120 and the Business Secure Router 222, each of
      which is specifically designed for the size, business
      needs and cost considerations of SMB customers.  This
      package can be added to one of the three voice-centric
      packages or sold alone.

These new packages will be supported by Nortel's fast track
accreditation program, which includes pre- and post-sales
training curriculum that will help partners quickly educate new
sales representatives about the Nortel BCM50.

Nortel's BCM50 is designed to give smaller businesses -- with as
few as three staff members -- low-cost, secure, advanced
communication services such as IP telephony and online
multimedia applications that allow employees to collaborate
regardless of location.  For nearly 20 years, Nortel has
provided voice communication solutions to more than 15 million
small and medium business employees in more than 80 countries,
and its industry-leading BCM50 sold more than 22,000 units
globally during its first year of availability.

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.


NORTEL NETWORKS: Selects Followap to Enhance Real-Time Networks
---------------------------------------------------------------
Nortel Networks has selected Followap's Presence technology to
power its IP multimedia subsystem or IMS portfolio to
unprecedented levels of personalization, mobility and security
in communications.

IMS is designed to deliver uninterrupted, seamless
communications regardless of network, making it possible for
interactive services such as instant messaging, VoIP, push-to-
talk and multimedia gaming to follow users in real-time as they
roam across wireless, wireline or cable networks.  Presence
technology is an essential component of IMS that enables
networks to be intuitive, allowing users to specify their
availability and willingness to communicate via the network and
device of their choice.

Presence technology enriches communications by providing real-
time information about the status of subscribers.  This
information can include a range of details from whether a device
is on or off, through to more advanced information about users'
availability such as indicating whether they are driving or in a
meeting. Presence can provide visibility on how best to
communicate with other subscribers whether by text, voice or IM.  
Presence-enabled applications will allow subscribers to enjoy
services such as multi-player gaming, location services and chat
room dating.  For example, gamers will be able to receive real-
time status updates on whether their contacts want to play/chat
and who is available online.

"IMS has enjoyed significant momentum across the industry as
service providers look to this new standard and architecture as
a means of enhancing their ability to become more service-agile
by developing an array of new and innovative combinational
services," said Tom Valovic, director of VOIP Infrastructure at
IDC.  "Leveraging new combinations of capability to advance
mobile IM and presence such as that exemplified by Nortel's
partnership with Followap is the kind of approach that can help
service providers develop the necessary building blocks to
improve communications and drive fixed/mobile convergence."

"Nortel is committed to delivering an open, standards-based IMS
solution, which is essential for service provider success," said
Sita Lowman, business leader, IMS, Nortel.  "Followap's
impressive presence technology for personalized, mobile and
secure multimedia communications together with Nortel's IMS core
technology and SIP application expertise is a powerful
combination for positioning service providers to deliver a more
personalized and enjoyable communications experience to
subscribers, no matter where they are or what device they may be
using."

Followap's Presence Platform (iFollow PSP), incorporating
Followap's Presence Server and Group List Management Server
(XDMS/GLMS), will power presence enabled IMS-based applications,
allowing operators to presence-enable their existing services
and design future services.

Dotan Volach, CEO at Followap said, "Presence is the personal
enablement communication choice of the future and is a key
component needed to seamlessly orchestrate integrated
communications. Followap is pleased to be working with Nortel,
one of the industry's leading providers of carrier VoIP/IMS
technology, to deliver flexible, next-generation mobile
services."

The iFollow PSP collects and broadcasts in real-time
subscribers' availability and willingness to communicate to
other subscribers and services.  Such status information is
displayed and updated immediately through the device's address
book using Followap's XDMS/GLMS.  The iFollow Presence Platform
will be integrated into Nortel's IMS Core solution, which is
responsible for authenticating users and setting up IMS sessions
using Session Initiation Protocol or SIP.  Once a session has
been set up and user availability communicated through the
iFollow PSP, data transfer will be handled by the appropriate
media server or application.

The iFollow Presence Platform is standards-based, supporting
OMA, IETF, 3GPP and OSA/Parlay standards.  Using iFollow PSP,
operators can quickly generate significant incremental revenues
by incorporating meaningful presence information into existing
and new value added services.  IFollow PSP powers fixed-mobile
converged (FMC) networks across mobile and fixed, public and
private, voice and data networks.

                       About Followap

Followap is the leading provider of Presence and Instant
Messaging solutions to the telecommunications industry.  
Pioneering this field, Followap's customer base consists today
of about 20 network operators, most of them tier-one operators,
with a combined user base of over 200 million users.  Followap's
products enable operators to establish advanced, interoperable
presence-enhanced services, whilst also creating the
infrastructure for next-generation networks. Followap supports
and contributes to industry standardization efforts in forums
including OMA, IETF, 3GPP and the GSM Association.

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.




===========
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GRUPO BANISTMO: Posts US$69.5 Million First Half 2006 Profits
-------------------------------------------------------------
Grupo Banistmo's net profits increased 23.7% to US$69.5 million
in the first half of 2006, from the US$56.2 million recorded in
the same period of 2005, Business News Americas reports.

Grupo Banistmo said in a press release that its return on equity
in the first six months of 2006 dropped to 21.9% from 22.3% in
the same period of last year.

BNamericas relates that the general and administrative expenses
of Grupo Banistmo rose 39% to US$115.2 million in the first half
of 2006, compared with the first half of 2005.

Grupo Banistmo's assets, according to BNamericas, increased 41%
to US$9.12 billion during the 12 months ending June 2006,
compared with the same period of 2005.  Meanwhile, the company's
loans grew 50% to US$6.21 billion.

Shareholders' equity increased 28% to US$809 million in June
2006, compared with June 2005, BNamericas states.

                        *    *    *

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




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


PERKINELMER: Acquires Avalon Instruments & Raman Spectroscopy
-------------------------------------------------------------
PerkinElmer, Inc., disclosed the acquisition of Avalon
Instruments Limited, based in Belfast, Northern Ireland.   

The acquisition expands and complements PerkinElmer's Molecular
Spectroscopy product portfolio through adding a family of
innovative bench-top dispersive Raman spectrometers.  The Avalon
Raman platforms support both bulk analysis and microscopic
imaging, enabling scientists and technicians to gain more
information about their samples with excellent reproducibility.
Terms of the deal were not disclosed.

"Customers will now have a single dependable source for high-
throughput IR, NIR and Raman, along with integrated software and
accessories," said Robert F. Friel, president of PerkinElmer
Life and Analytical Sciences.  "The PerkinElmer Raman
instrumentation is designed for intuitive use, minimal operator
intervention, and highly reproducible results to help labs
achieve a high level of throughput and productivity."

Raman spectroscopy identifies and characterizes the composition
of both organic and inorganic materials in a wide range of
applications.  It is a complementary analysis technique to near
infrared spectroscopy and infrared spectroscopy.  Raman provides
labs with the ability to analyze solids, liquids, powders, gels,
slurries and aqueous solutions in bulk or to address variation
in sample distribution with imaging.  The technology is
applicable to a diverse range of end markets, including
pharmaceuticals, forensics and academia.

"We are excited to join PerkinElmer and contribute to their
innovative approach to product development and continuous
improvement, along with becoming part of a global leader in
customer service and support," said Dr. Andrew Dennis, managing
director, Avalon Instruments.

PerkinElmer Inc. (NYSE: PKI) -- http://www.perkinelmer.com/--  
is a global technology leader driving growth and innovation in
Health Sciences and Photonics markets to improve the quality of
life.  PerkinElmer reported revenues of US$1.5 billion in 2005,
has 8,000 employees serving customers in more than 125
countries, and is a component of the S&P 500 Index.  In Latin
America, PerkinElmer has offices in Argentina, Bolivia, Brazil,
Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El
Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama,
Paraguay, Peru, Puerto Rico, Uruguay and Venezuela.

                        *    *    *

PerkinElmer Inc.'s Long Term Subordinated Debt carry Moody's
Investors Service's Ba1 rating.


* PARAGUAY: Will Launch Tender of Biodiesel Supply Contract
-----------------------------------------------------------
Francisco Terashima -- the chief executive officer of Petropar,
the state-run oil firm of Paraguay -- will launch a tender for a
contract to supply up to US$1 million worth of biodiesel and
vegetable oil for biofuels production.

BNamericas relates that Paraguay requires the production of 50
million liters a year (Ml/y) of biodiesel in order to develop
fuels mixed with 5% biodiesel.  However, the nation produces
less than 3Ml/y.

Mr. Terashima told BNamericas that Petropar aims to produce
enough biofuels in the medium term to begin using biodiesel
mixtures nationwide.

According to BNamericas, Mr. Terashima said that the tender
would be launch within the next 10-15 days.

A government statement says that the tender will be Paraguay's
first step forward toward the development of a national biofuels
industry.  

Petropar, the statement says, will unveil the national biodiesel
plan by the end of next week.

                        *    *    *

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




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ANIXTER INTERNATIONAL: Fitch Affirms Low B Ratings
--------------------------------------------------
Fitch Ratings has affirmed these ratings for Anixter
International Inc. and its wholly owned operating subsidiary,
Anixter Inc. aka AI:

   Anixter

      -- Issuer Default Rating: 'BB+';
      -- Senior unsecured debt 'BB-'.

   AI

      -- Issuer Default Rating: 'BB+';
      -- Senior unsecured notes 'BB+'; and
      -- Senior unsecured bank credit facility at 'BB+'.

Fitch's action affects approximately US$700 million of public
debt securities.  The Rating Outlook is Stable.

The ratings and Outlook reflect Anixter's improved operating
performance driven by a combination of a stable end-market
demand environment, market share gains in the company's small
but growing sales of fasteners and C-class components to
original equipment manufacturers or OEMs (approximately 18% of
current sales), and operating leverage enhanced by higher than
anticipated copper prices as well as cost savings from
integrating recent acquisitions.  Also considered are Anixter's
well-diversified product, customer and supplier portfolios, and
the information technology distribution industry's ability to
generate cash from working capital during a downturn. Fitch also
expects that Anixter will continue to be able to generate cash
from operations even at growth rates in the low double-digits.

Rating concerns mainly center on the company's adequate but
reduced liquidity position and Fitch's expectations that Anixter
will continue using free cash flow for a combination of special
dividends and acquisitions, although the company expects the
pace of acquisition activity to slow over the near term as it
shifts focus to integrating recent acquisitions.  Fitch also
considers the thin operating EBIT margins associated with the IT
distributors and Anixter's unhedged exposure to commodity
prices, which would affect operating income negatively if copper
prices were to decline significantly.

Fitch believes that Anixter's EBITDA margins, which have
steadily increased to 7% for the first half of 2006 compared to
5% in 2004, will remain near current levels due to the company's
expectations for revenue growth of 2-3x world-wide gross
domestic product over the next few years and ongoing benefits
from integrating historical acquisitions.  Cost reductions
should be somewhat mitigated by moderating benefits from rising
copper prices, which have contributed meaningfully to Anixter's
margin expansion over the past six quarters due to the company's
cost plus pricing model.  As a result, Anixter's credit
protection measures should be flat to slightly stronger over the
next few years, with EBITDA to interest expense near 11.0x, up
from 10.3x for the latest 12 months ended June 30, 2006, and
total debt adjusted for rent expense to EBITDAR remaining
between 3.0x and 3.5x.

After using approximately US$65 million of cash over the past
six quarters to fund organic revenue growth and working capital,
Fitch expects Anixter will generate up to US$100 million of
annual free cash flow the next few years.  Anixter's cash
conversion cycle, which Fitch estimates fell to just under 90
days for the second quarter ended June 30, 2006 from almost 95
days in the prior year's quarter, is likely to remain near
current levels and should enable Anixter to grow in excess of
10% without using cash from operations.  Fitch believes debt
reduction from record high levels is unlikely given the
company's historical bias of using excess cash for shareholder-
friendly actions. For example, Anixter paid almost US$210
million in special dividends in 2004 and 2005 and repurchased
US$36 million of shares in 2003. Nonetheless, the ratings
incorporate Fitch's expectations that Anixter will use
increasing cash balances over the next few years for additional
special dividends and/or small acquisitions.

Fitch believes Anixter's liquidity was sufficient but limited
consisting of the following as of June 30, 2006:

   -- Approximately US$21 million of cash and cash equivalents;

   -- US$275 million, five-year revolving credit agreement
      maturing June 2009 (US$163 million undrawn and available);

   -- US$40 million Canadian revolving credit facility expiring
      June 2009 (approximately US$6 million undrawn and
      available);

   -- Revolving credit facilities at other foreign subsidiaries
      totaling approximately US$35 million (nominal amounts
      undrawn and available).

   -- US$225 million on-balance-sheet accounts receivable
      securitization program expiring Sept. 2007
      (approximately US$60 million was available as of
      June 30, 2006).

Total debt as of June 30, 2006, was approximately US$700 million
and consisted of:

   -- AI's US$200 million 6% senior unsecured notes due 2015;

   -- Anixter's approximately US$158 million accreted value of
      3.25% zero coupon convertible senior notes due 2033;

   -- The aforementioned US$178 million and US$165 million of
      borrowings under the company's credit facilities and
      accounts receivable securitization program, respectively.

Anixter's zero coupon convertible senior notes are not
guaranteed by AI and, therefore, are structurally subordinated
to AI's debt.

Headquartered in Glenview, Illinois, Anixter International, is
the world's largest distributor of communication products and
electrical and electronic wire and cable, and a leading
distributor of fasteners and other small parts to original
equipment manufacturers. Anixter has physical presence in 45
countries and has over 5,000,000 square feet of warehouse space.  
For its Latin American operations, its has offices in Mexico,
the Dominican Republic, Costa Rica, Puerto Rico, Venezuela,
Colombia, Peru, Brazil, Argentina and Chile.


CONNACHER OIL: S&P Assigns B+ Long-Term Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating to Calgary, Alta.-based Connacher Oil
and Gas Ltd.

At the same time, Standard & Poor's assigned its 'BB-' bank loan
rating with a recovery rating of '1' to Connacher Finance
Corp.'s proposed seven-year US$180 million secured term loan B
facility, and Montana Refining Company, Inc.'s five-year US$15
million secured revolving credit facility.

The '1' recovery rating reflects expectations for a 100%
recovery of principal in a default scenario.  The 'BB-' bank
loan rating is one notch above the corporate credit rating,
because the collateral value supporting the loans have a high
probability of enabling lenders to recover all principal and
accrued interest under a default scenario.  The outlook is
stable.

"The ratings on Connacher are constrained by its aggressive
financial risk profile, which reflects the company's lack of
meaningful cash flow generation until the first phase, Pod I, of
its Great Divide Project achieves full production -- expected in
2008 -- and its relatively high leverage," said Standard &
Poor's credit analyst Jamie Koutsoukis.

"Nevertheless, we believe Connacher will be able to complete
construction of Pod I without any additional debt funding.  The
risk of cost overruns is tempered by the cost performance of
existing steam-assisted gravity-drainage projects, which have
been completed on time and on budget.  Furthermore, the
company's conventional and refinery operations, which are self
funding, should allow Connacher to significantly reduce its
exposure to natural gas fuel prices, heavy oil differentials,
and diluent prices once the project begins operation, which we
assess as a strength to the company's credit profile," Ms.
Koutsoukis added.

Connacher is an oil and natural gas exploration and production
company whose principal asset is its approximate 100% working
interest in almost 80,000 acres of oil sands leases at its Great
Divide oil sands project near Fort McMurray, Alta.

In addition to its oil sands project, Connacher has conventional
operations primarily at Battrum, Sask., and Marten Creek and
Three Hills in Alberta with production of 3,300 to 3,500 barrels
of oil equivalent per day.

The company also operates an 8,400 barrels per day refinery
located in Great Falls, Mont.  Following a turnaround and
debottlenecking of the refinery in April 2006, the throughput
capacity of the refinery has been expanded and up to 9,500 bbl/d
have recently been achieved.  Connacher owns approximately 30%
of and manages Petrolifera Petroleum Limited, which has
interests in Argentina and Peru.

The stable outlook reflects our expectation that Connacher will
be able to complete the development of Pod 1 of its Great Divide
project on schedule without any material cost increases or any
need for additional funding.  Once Connacher achieves full
production at its oil sands project and internally generated
cash flows are sufficient to meet the company's debt and capital
expenditure commitments, there should be a material improvement
in its financial risk profile.

An improvement in the company's existing financial profile would
strengthen the overall credit profile, which should, in turn,
result in a positive rating action.  Conversely, if Connacher
encounters cost overruns as it proceeds with construction and
the project economics deteriorate, a negative rating action
could occur.




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FIRST BANCORP: Board Declares US$0.07 Dividend Per Common Share
-------------------------------------------------------------
First BanCorp's Board of Directors has declared the next payment
of dividends on Common, Series A through E Preferred and Trust
Preferred I & II shares.

Common stockholders of record as of Sept. 15, 2006, will receive
the 45th consecutive quarterly dividend in the amount of US$0.07
per share for the 3rd Quarter of 2006, payable on Sept. 29,
2006.

The estimated dividend amounts, record dates and payment dates
are:

    Series    US$Per/share    Record Date     Payment Date
    ------    ----------    -----------     ------------   
      A       0.1484375    Sept. 28, 2006   Oct. 2, 2006
      B       0.17395833   Sept. 15, 2006   Oct. 2, 2006
      C       0.1541666    Sept. 15, 2006   Oct. 2, 2006
      D       0.15104166   Sept. 15, 2006   Oct. 2, 2006
      E       0.14583333   Sept. 15, 2006   Oct. 2, 2006

Regulatory approvals were obtained as a part of the Company's
agreement with the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corp. and the Office
of the Commissioner of Financial Institutions of the
Commonwealth of Puerto Rico.

Luis Beauchamp, president and chief executive officer, said,
"Our 45th consecutive dividend to common shareholders is
evidence of First BanCorp's continued operational and financial
success, as well as our continued commitments to our
shareholders,"

First BanCorp (NYSE: FBP) is the parent Corp. of FirstBank
Puerto Rico, a state chartered commercial bank with operations
in Puerto Rico, the Virgin Islands and Florida; of FirstBank
Insurance Agency; and of Ponce General Corp..  First
BanCorp, FirstBank Puerto Rico and FirstBank Florida, formerly
UniBank, the thrift subsidiary of Ponce General, all operate
within U.S. banking laws and regulations.

                        *    *    *

As reported in the Troubled Company Reporter on March 22, 2006,
Fitch Ratings affirmed the ratings and Outlook for First Bancorp
and FirstBank Puerto Rico: long-term Issuer Default Rating
'BB'/short-term 'B'.  The Rating Outlook remains Negative.




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


BRITISH WEST: Trinidad Government Decides on New Business Model
---------------------------------------------------------------
Dr. Lenny Saith, the Trinidad & Tobago's public administration
minister and the chairperson of a cabinet sub-committee at
British West Indies Airlines, told the Trinidad & Tobago Express
that the government has decided making a new business model.

The government, after discussing BWIA at great length during the
weekly cabinet session at Whitehall on Sept. 7, has made its
decision, Jarrette Narine -- the nation's Minister of
Agriculture Land and Marine Resources told the press.

Dr. Saith, however, did not give details to The Express about
the new plan and said that the announcement would not come from
the government.

Dr. Saith told The Express, "It would be the airline's board and
management to make those announcements.  I believe they are
meeting with the unions (on Sept. 8)."

The Express asked Dr. Saith if the cabinet's decision would
result in a decrease in the state's 97.3% shareholding in BWIA.

Dr. Saith told The Express, "We will wait until the board
announces what the Cabinet has approved as their business plan."

Several options were presented to the government to turn around
BWIA, The Express says, citing industry sources.  The airline
lost about US$26 million in 2005 and has been incurring US$1
million losses per month since the beginning of 2006.

The Express underscores that the government agreed to inject
about US$250 million to save BWIA, as long as the management
deal with several money-losing components of the airline's more
than 60 years old operations.

According to The Express, strategic options included:

    -- considering discontinuing BWIA's Manchester and Costa
       Rica routes, which already happened; and

    -- re-examining the London and New York services, with a
       view of possible reduction if they are not profitable.

The sources told The Express that the routes, while usually
filled to capacity, have become expensive to maintain.

Citing the sources, The Express relates that a stalemate in
negotiations between the BWIA management and the union
representing the airline workers led to suggestions that if BWIA
could not be viable in its present state, a new commercial
entity would be formed that would concentrate on profitable
routes like as Jamaica and Miami.

The Express notes that strategic plans also include:

    -- considering an improvement of technology at BWIA,
    -- slashing the number of aircraft, and
    -- possibly decreasing staff.

The report states that the BWIA plan involves airline workers
and takes into consideration the upcoming Cricket World Cup and
firm's provision of services for the event.

Meanwhile, the BWIA management is yet to meet with four of the
workers' unions at the Crowne Plaza Hotel, Port of Spain,
according to The Express.  BWIA also planned a press conference
on its new plans.

Curtis John, the president of the Aviation, Communication and
Allied Workers Union, told The Express, "I think they (the
government) will brief the management of BWIA and the management
will inform us on the decision in our meeting (Sept. 8)."

"We had a meeting with the security personnel at BWIA two days
ago and from all the talk at that meeting we feel that BWIA will
continue.  Whether it continues as BWIA West Indies Airways or
as BWIA Caribbean Airways, there will be an airline," The
Express reports, citing Mr. John.

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.


RBTT FINANCIAL: Fitch Upgrades Issuer Rating to BBB- from BB+
-------------------------------------------------------------
Fitch has upgraded the Long-term Issuer Default Rating of RBTT
Financial Holdings Limited to 'BBB-' from 'BB+', upgraded the
Short-Term Issuer rating to 'F3' from 'B', upgraded the
Individual rating to 'C' from 'C/D', and affirmed the Support
rating at '5'. Ratings of RBTT Bank Limited have been affirmed.  
A complete list of ratings follows this release.  The Rating
Outlook is Stable.

The upgrade of RBTT reflects its solid financial performance,
improved asset quality and sound capital position.  Furthermore,
RBTT benefits from a large proportion of group earnings from the
comparatively strong Trinidad and Tobago market, a moderate
level of holding company debt, improved holding company
liquidity, sound group risk management, and strong capacity to
upstream dividends from major operating subsidiaries.

The Long-Term IDR ratings differential between RBTT and RBTT
Bank continues to stem from the far lower probability of
government support in the event of need for the holding company
and the additional risk from regional operations at the holding
company level.  RBTT Bank is viewed as an important part of the
financial system in Trinidad and Tobago. Consequently, Fitch
believes there is a high probability of government support in a
crisis scenario.

Fitch has upgraded these ratings:

   -- Long-Term IDR to 'BBB-' from 'BB+';
   -- Short-Term Issuer Rating to 'F3' from 'B'; and
   -- Individual Rating to 'C' from 'C/D'.

Fitch has affirmed these ratings:

   RBTT Bank Limited

      -- Long-Term IDR at 'BBB';
      -- Short-Term Issuer Rating at 'F3';
      -- Individual Rating at 'C'; and
      -- Support Rating at '2'.

   RBTT Financial Holdings Limited

      -- Support Rating at '5'.

The Rating Outlook is Stable.




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


* URUGUAY: Gets Mercosur's Partial OK on Dispute with Argentina
---------------------------------------------------------------
The Arbitration Tribunal of Mercosur partially ruled in favor of
Uruguay, which filed a complaint against Argentina for
blockading on the bridges linking the two nations, Merco Press
reports.

Merco Press relates that the tribunal determined that Argentina
did not take necessary action to ensure free circulation of
goods and services into Uruguay, as contemplated in the block's
charter.

According to Merco Press, Buenos Aires was found liable for not
preventing Argentines, who attempted to prevent the construction
of two pulp mills in river Uruguay, from blocking the bridges.

The report says that Argentines claimed the pulp mills would
pollute both sides of the fluvial border.  Residents of
Gualeguaychu blocked for several months three main routes
connecting with international bridges leading to Uruguay, aiming
to prevent trucks with equipment for the pulp mill from passing
through.  However, the blockade prevented normal traffic.  The
blockade -- which coincided with the summer season when
Argentines go to Uruguayan beaches on the Atlantic -- damaged
Uruguay's tourism.

Merco Press notes that the ruling, however, doesn't "outline a
future due conduct for Argentina in the matter (no more
blockades)".  The decision also did not mean that the tribunal
considered Uruguay's demand for compensations arising from
losses the 72-day protests caused.  The demonstrations allegedly
cost Uruguay about US$400 million.

The tribunal told Merco Press that the Argentine government did
not intend to damage commercial traffic.  Good faith must be
presumed since evidence does not show that Argentina encouraged
the Gualeguaychu residents to hold a protest.

The tribunal's ruling was a victory for Uruguay given the
implicit moral and political force, Merco Press says, citing
Reynaldo Gargano, the Foreign Affairs Minister of the nation.

However, Minister Gargano told Merco Press that he was cautious
as to the next steps regarding compensation demands.

Merco Press underscores that Minister Gargano said, "It's the
president who has to decide where and how to proceed from now
on.  Anyhow we accept the ruling as happened with the previous
one before The Hague which also favored Uruguay, but we will not
adopt a triumphalism attitude."

However, Nora Capello -- a delegate of Argentina -- told Merco
Press that the ruling favored Argentina.  She said, "There was
no condemnation or compensation demand accepted, or a future
obligation in case route blockades are resumed."

According to the report, Ms. Capello said that the Mercosur
tribunal didn't question the Argentine government's strategy,
its reaction to the route cuts or its dissuasive tactics against
protestors.

"What was questioned was the diligence to act, that it the time
taken, which could have been less," Ms. Capello told Merco
Press.

"The ruling never mentions Argentina was neglectful rather on
the contrary it highlights the good intentions in all its
actions," Merco Press says, citing Ms. Capello.

Meanwhile, Luis Marti Mingarro -- the head of the Arbitration
Tribunal Magistrate from Spain -- told Merco Press that the
ruling hopes blockades like that of Argentina will not be
repeated.

"What the people and this Tribunal expect is that in the future
both sides closely monitor these assumptions so as to avoid the
degradation of the situation such as was the case under
consideration," Merco Press relates, citing Judge Mingarro.

Judge Mingaro told Merco Press, "The Tribunal unanimously
considers with great respect the reasons for the protest but
also understands it's not enough to justify that the umbilical
corridors between two neighbours of Mercosur should remain
blocked."

Merco Press emphasizes that Jose Maria Gamio -- the Uruguayan
member in the tribunal -- said that the decision satisfied both
Argentina and Uruguay.  However, he said that the solution to
the conflict must come from the two governments.

"We hope that as soon as possible negotiations are again on
track so that this ruling and the one from the International
Court in The Hague are left behind and we can see a return to
the atmosphere that should have never been lost," Mr. Gamio told
Merco Press.

                        *    *    *

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


* VENEZUELA: Discloses Accords on Agriculture Development
---------------------------------------------------------
Elias Jaua, Venezuela's minister of agriculture and lands, told
Prensa Latina that the government reached agreements with
Byelorussia and China for the development of agriculture in
Venezuela.

According to Prensa Latina, Venezuela and Byelorussia agreed on
a training program in the fields of:

      -- agricultural health,
      -- pasturage,
      -- animal feeding,
      -- herd management, and
      -- the sending of experts from the European country to
         train cattle producers.

Prensa Latina relates that Byelorussia proposed mixed
enterprises for the production of:

      -- milk-derived products,
      -- cold meats, and
      -- others.
      
Meanwhile Venezuela signed a memorandum of cooperation with
China for the production of rice and obtaining flour and starch,
Prensa Latina states.

                        *    *    *

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


* BOOK REVIEW: The Turnaround Manager's Handbook
------------------------------------------------
Author:     Richard S. Sloma
Publisher:  Beard Books
Paperback:  244 pages
List Price: US$34.95

Order your personal copy at
http://www.amazon.com/exec/obidos/ASIN/1893122409/internetbankru
pt

In the introduction to this book, the author suggests that an
accurate subtitle could be "How to Become a Successful Company
Doctor."  Using everyday medical analogies throughout, he
targets "corporate general practitioners" charged with the
fiscal health of their companies.   

As with many human diseases, early detection of turnaround
situations is critical.  The author describes turnaround
situations as a continuum differentiated by length of time to
disaster: "Cash Crunch," "Cash Shortfall," "Quantity of Profit,"
and "Quality of Profit."   

The book centers on 13 steps to a successful turnaround.  The
steps are presented in a flowchart form that relates one to
another.  Extensive data collection and analysis are required,
including the quantification of 28 symptoms, the use of 48
diagnostic and analytical tools, and up to 31 remedial actions.   
(In case the reader balks at the effort called for, the author
points out that companies that collect and analyze such data on
a regular basis generally don't find themselves in a turnaround
situation to begin with!)

The first step is to determine which of 28 symptoms are plaguing
the company.  The symptoms generally pertain to manufacturing
firms, but can be applied to service or retail companies as
well.  Most of the symptoms should be familiar to the reader,
but the author lays them out systematically, and relates them to
the analytical tools and remedial actions found in subsequent
chapters.   

The first seven involve the inability to make various payments,
from debt service to purchase commitments.  Others include
excessive debt/equity ratio; eroding gross margin; increasing
unit overhead expenses; decreasing product line profitability;
decreasing unit sales; and decreasing customer profitability.

Step 2 employs 48 diagnostic and analytical tools to derive
inferences from the symptom data and to judge the effectiveness
of any proposed remedy.  The author begins by saying "...if the
only tool you have is a hammer, you will view every problem only
as a nail!"  He then proceeds to lay out all 48 tools in his
medical bag, which he sorts into two kinds, macro- and micro-
tools.   

Macro-tools require data from several symptoms or assess and
evaluate more than a single symptom, whereas micro-tools more
general-purpose in function.

The 12 macro-tools run from "The Art of Approximation" to
"Forward-Aged Margin Dollar Content in Order Backlog."   

The 36 micro-tools include "Product Line Gross Margin Percent
Profitability," "Finance/Administration People-Related Expenses
As Percent Of Sales," and "Cumulative Gross US$ by Region."

Next, managers are directed to 31 possible remedial actions,
categorized by the four-stage turnaround continuum described
above.  The first six actions are to be considered at the Cash
Crunch stage, and range from a fire sale of inventory to
factoring accounts receivable.   

The next six deals with reducing people-related expenses
followed by 13 actions aimed at reducing product- and plant-
related expenses.  The subsequent five actions include
eliminating unprofitable products, customers, channels, regions,
and reps.   

Finally, managers are advised on increasing sales and improving
gross margin by cost reduction in various ways.

The remaining steps involve devising the actual turnaround plan,
ensuring management and employee ownership of the plan, and
implementing and monitoring the plan.   

The advice is comprehensive, sensible and encouraging, but
doesn't stoop to clich, or empty motivational babble.  The
author has clearly operated on patients before and his
therapeutics have no doubt restored many a firm's financial
health.


                        ***********


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

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

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

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

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

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


           * * * End of Transmission * * *