TCRLA_Public/060915.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

          Friday, September 15, 2006, Vol. 7, Issue 184

                          Headlines

A R G E N T I N A

ACXIOM CORP: Discloses Preliminary Results of Dutch Auction
HURLING CRED: Trustee Verifies Proofs of Claim Until Nov. 20
INTERNET FULL: Claims Verification Deadline Is Set for Nov. 13
MEDIC SALUD: Last Day for Verification of Claims Is on Nov. 6
METALURGICA MIELKE: Reorganization Proceeding Concluded

PETRUZIO HERMANOS: Trustee Delivers Individual Reports Today
RADIO SARASANTO: Individual Reports Due in Court on Sept. 18

* ARGENTINA: Looks Into Soya as New Source of Fuel

B A H A M A S

WINN-DIXIE: Florida Tax Collectors Want Tax Motion Dismissed
WINN-DIXIE: Fairfield Partners Want Montgomery's Motion Denied

B E R M U D A

ARCH CAPITAL: Appoints Jeffrey Goldstein as Board Director
FOSTER WHEELER: Units Win CFB Boiler Contract in The Netherlands
FOSTER WHEELER: Unit Secures Delayed Coker Contract from BP Oil
MAGNOLIA INSURANCE: Proofs of Claim Filing Is Until Sept. 27
SOLVEST LTD: Moody's Reviews Ratings for Possible Downgrade

B O L I V I A

* BOLIVIA: State Oil Firm Begins Ownership Rights Execution

B R A Z I L

BANCO NACIONAL: Grants BRL26.1MM Financing to Corol Cooperativa
BANCO VOTORANTIM: S&P Rates US$200MM Sr. Unsecured Notes at BB
DRESSER-RAND: S&P Upgrades Corp. Credit Rating to BB- from B+
GERDAU SA: Moody's Reviews Ba2 Global Curr. Rating & May Upgrade

* BRAZIL: Inks 9 Deals with India During IBSA Summit

C A Y M A N   I S L A N D S

AFM CO: Invites Shareholders for a Final Meeting on Sept. 22
CITIGROUP ALTERNATIVE: Last shareholders Meeting Is on Sept. 22
DC SCALA: Calls Shareholders for a Final Meeting on Sept. 22
JP MORGAN: Liquidator Presents Wind Up Accounts on Sept. 22
LIBERTYVIEW HEALTH: Final Shareholders Meeting Is on Sept. 22

LUKOIL AMERICAS: Final Shareholders Meeting Is Set for Sept. 22
MERRILL LYNCH (FUND): Sets Last Shareholders Meeting on Sept. 22
MERRILL LYNCH (LTD): Sets Final Shareholders Meeting on Sept. 22
PARMALAT: Cayman Appellate Court OKs Ernst & Young's Employment
S.E.C.T.O.R. STRATEGY: Final Shareholders Meeting Is on Sept. 22

TAMARIN II: Shareholders Convene for a Final Meeting on Sept. 22

* Cayman Islands Mark 8,000th Hedge Fund

C H I L E

IMMERSION CORP: Balance Sheet Upside-Down by US$20MM at June 30

C O L O M B I A

BBVA COLOMBIA: Posts COP182 Bil. Jan. to Aug. 2006 Profits
OLEODUCTO CENTRAL: S&P Says Rating Shows Risk of Payment Source

C O S T A   R I C A

DIRECTV: Inks Audience Measurement Monitoring Pact with TNS

D O M I N I C A N   R E P U B L I C

TRICOM SA: Switches to Per-Second Billing

E L   S A L V A D O R

SBARRO INC: Posts US$1.25 Mil. Net Loss in Quarter Ended July 16

G U A T E M A L A

DELTA AIR: Will Expand Flights to Guatemala City

* GUATEMALA: Will Allow Direct Flights with Other Nations

H O N D U R A S

* HONDURAS: Will Allow Direct Flights with Other Nations

J A M A I C A

DIGICEL LTD: Expands in the Pacific Through Telecom Samoa Buy
DIGICEL LTD: Rise in Subscription to Bring US$1B Yearly Revenues

M E X I C O

BALLY TOTAL: Approves Indemnification Agreement with Directors
BALLY: Promotes Tia Willows to VP Fitness, Nutrition & Retail
BALLY TOTAL: Shares Drop 17.5% After Posting Second Quarter Loss
BERRY PLASTICS: Discloses Pricing Terms on 10.75% Notes Offer
BURGER KING: Marks 15 Years in Mexico, Opening of 300th Store

FORD MOTOR: UAW Agrees to Voluntary, System-Wide Buyouts
GRUPO MEXICO: Aims 800,000 Tons Annual Copper Output by 2009
HIPOTECARIA SU: Moody's de Mexico Rates Class B Certs. at Ba2
KRISPY KREME: Sees US$110 Mil. of Revenues in Second Fiscal Qtr.
VALASSIS COMMS: ADVO Stockholders Approve Merger Agreement

VALASSIS: Responds to Notice on Start of Court Proceedings
VITRO SA: Shares Issuance to Bring in MXN550 Million of Capital

N I C A R A G U A

DELTA AIR: Launching New Nonstop Service in Nicaragua on Dec. 16

* NICARAGUA: Will Allow Direct Flights with Other Nations

P A N A M A

CHIQUITA BRANDS: Sitraibana Union to Hold Protest on Sept. 17

P E R U

PRIDE INTERNATIONAL: S&P Affirms BB Corporate Credit Rating

P U E R T O   R I C O

DORAL FINANCIAL: Appoints Three New Executive Vice Presidents
MUSICLAND HOLDING: Taps Walker Truesdell as Wind Down Officer
MUSICLAND HOLDING: Landlords Balk at Assume & Assign Leases Plea

T R I N I D A D   &   T O B A G O

BRITISH WEST: Paying Debt & Voluntary Separation with Gov't Fund
BRITISH WEST: Jack Warner Blames Government for Shutdown

U R U G U A Y

ABN AMRO: Moody's Reviews Ratings for Possible Upgrade
BANKBOSTON NA: Moody's Places Ratings on Review & May Upgrade
BANCO DE LA REPUBLICA: Moody's Reviews Ratings & May Upgrade
BANCO HIPOTECARIO: Moody's Reviews Ratings for Possible Upgrade
BANCO SANTANDER: Moody's Reviews Ratings for Possible Upgrade

CREDIT URUGUAY: Moody's Places Ratings on Review & May Upgrade
LLOYDS TSB: Moody's Places Ratings on Review for Likely Upgrade
PARMALAT: Court Adjourns Permanent Injunction Hearing to Oct. 17
PARMALAT: Agrees with Liquidators to Continue TRO to Dec. 15

V E N E Z U E L A

PETROLEO BRASILEIRO: Increasing Fuel Alcohol Sales to Venezuela
PETROLEOS DE VENEZUELA: In Talks with Total, Eni on Compensation

* VENEZUELA: Congress Okays 50% Income Tax on Orinoco Projects
* VENEZUELA: Promises to Improve Power Services in Country
* VENEZUELA: Trade with United States Up 10.7% in July
* ALIXPARTNERS LLP: S&P Assigns BB- Corporate Credit Rating
* TowerGroup Says Financial Institutions See Growth in LatAm


                          - - - - -


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


ACXIOM CORP: Discloses Preliminary Results of Dutch Auction
-----------------------------------------------------------
Acxiom Corp. disclosed preliminary results of its modified
"Dutch Auction" self-tender offer, which expired at 5:00 p.m. on
Sept. 12, 2006.

Based on the preliminary count by the depositary for the tender
offer, an aggregate of 24,911,233 shares of Acxiom common stock
were properly tendered and not withdrawn at or below a price of
US$27.00 per share, including 8,537,481 shares that were
tendered through notice of guaranteed delivery.  Based on these
preliminary results the company expects to purchase 11,111,111
shares in the tender offer, subject to proration, at US$25.75
per share.  Pursuant to the terms of the tender offer, Acxiom
offered to purchase shares of its common stock at a price not
less than US$25 and not greater than US$27 per share.

Acxiom has been informed by Computershare Trust Company, N.A.,
the depositary for the tender offer, that the preliminary
proration factor for the shares tendered at US$25.75 and below
is approximately 97 percent.  The exact proration factor is
subject to delivery of the shares that were tendered through
notice of guaranteed delivery.

The results disclosed are preliminary and subject to
verification by the depositary of the proper delivery of the
shares validly tendered and not withdrawn.  Final results will
be announced following the completion of the verification
process.  Acxiom expects payment for the shares accepted for
purchase and the return of all shares tendered and not accepted
for purchase to occur within one week.

The repurchase of the shares will be funded with proceeds from a
new US$800 million credit facility on or about Sept. 15, 2006.

ValueAct Capital has advised Acxiom that neither ValueAct
Capital nor any of its affiliates tendered any of its shares of
Acxiom into the modified Dutch Auction.

The dealer managers for the self-tender offer are J.P. Morgan
Securities Inc. and Stephens Inc.  The information agent is
Innisfree M&A Incorporated, and the depositary is Computershare
Trust Company, N.A. Any questions about the self-tender offer
may be directed to the information agent at 1-877-750-9457, or
the dealer managers, J.P. Morgan Securities Inc. at 1-877-371-
5947 or Stephens Inc. at 1-800-643-9691.

                     About Acxiom Corp.

Based in Little Rock, Arkansas, Acxiom Corp. (Nasdaq: ACXM)
-- http://www.acxiom.com/-- integrates data, services and
technology to create and deliver customer and information
management solutions for many of the largest, most respected
companies in the world.  The core components of Acxiom's
innovative solutions are Customer Data Integration technology,
data, database services, IT outsourcing, consulting and
analytics, and privacy leadership.  Founded in 1969, Acxiom has
locations throughout the United States, Europe, Australia and
China.  Acxiom has a team of specialists with sales and business
development associates based in the largest Latin American
markets: Brasil, Argentina and Mexico.


HURLING CRED: Trustee Verifies Proofs of Claim Until Nov. 20
------------------------------------------------------------
Martha Magdalena Comba, the court-appointed trustee for Hurling
Cred S.A.'s bankruptcy case, verifies creditors' proofs of claim
until Nov. 20, 2006.

Under Argentine bankruptcy law, Ms. Comba is required to present
the validated claims in court as individual reports.  Court No.
7 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 Hurling Cred and its
creditors.

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

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

Hurling Cred was forced into bankruptcy at the behest of Farid
Hapes, whom it owes US$20,400.

Clerk No. 13 will assist the court in the proceeding.

The debtor can be reached at:

         Hurling Cred S.A.
         Cabildo 2230
         Buenos Aires, Argentina

The trustee can be reached at:

         Martha Magdalena Comba
         H. Yrigoyen 1349
         Buenos Aires, Argentina


INTERNET FULL: Claims Verification Deadline Is Set for Nov. 13
--------------------------------------------------------------
Irma Aguilera, the court-appointed trustee for Internet Full
S.A.'s bankruptcy case, verifies creditors' proofs of claim
until Nov. 13, 2006.

Under Argentine bankruptcy law, Ms. Aguilera is required to
present the validated claims in court as individual reports.
Court No. 4 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 Internet Full and
its creditors.

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

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

Internet Full was plunged into bankruptcy at the request of Hugo
Barbic, whom it owes US$31,047.20

Clerk No. 7 will assist the court in the proceeding.

The debtor can be reached at:

         Internet Full S.A.
         Esmeralda 517
         Buenos Aires, Argentina

The trustee can be reached at:

         Irma Aguilera
         Saenz Pena 1690
         Buenos Aires, Argentina


MEDIC SALUD: Last Day for Verification of Claims Is on Nov. 6
-------------------------------------------------------------
Gustavo Fiszman, the court-appointed trustee for Medic Salud
S.A.'s reorganization proceeding, verifies creditors' proofs of
claim until Nov. 6, 2006.

Under argentine bankruptcy law, Mr. Fiszman is required to
present the validated claims in court as individual reports.
Court No. 19 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 Medic Salud and its
creditors.

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

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

Medic Salud will negotiate a settlement plan with its creditors
in order to avoid a straight liquidation.

Clerk No. 37 will assist the court in the proceeding.

The debtor can be reached at:

         Medic Salud S.A.
         Santa Fe 1845
         Buenos Aires, Argentina

The trustee can be reached at:

         Gustavo Fiszman
         Acevedo 237
         Buenos Aires, Argentina


METALURGICA MIELKE: Reorganization Proceeding Concluded
-------------------------------------------------------
Metalurgica Mielke S.A.C.I. y F.'s reorganization proceeding has
ended.  Data published by Infobae on its Web site indicated that
the process was concluded after a court in Buenos Aires approved
the debt agreement signed between the company and its creditors.


PETRUZIO HERMANOS: Trustee Delivers Individual Reports Today
------------------------------------------------------------
Maria Ezequiela Festugato, the court-appointed trustee for
Petruzio Hermanos S.A.'s bankruptcy case, will submit individual
reports in court today.

These reports are based on creditors' proofs of claim that were
verified until July 20, 2006.  Court No. 11 in Buenos Aires will
determine if the verified claims are admissible, taking into
account Ms. Festugato's opinion and the objections and
challenges raised by Petruzio Hermanos and its creditors.

A general report that contains an audit of Petruzio Hermanos'
accounting and banking records will follow on Oct. 30, 2006.

As reported in the Troubled Company Reporter-Latin America on
June 1, 2006, Petruzio Hermanos was forced into bankruptcy at
the behest of Obra Social de Empleados de Comercio, which it
owes US$7,153.

Clerk No. 22 assists the court on the case.

The debtor can be reached at:

         Petruzio Hermanos S.A.
         Avenida Eva Peron 7246
         Buenos Aires, Argentina

The trustee can be reached at:

         Maria Festugato
         Lavalle 1607
         Buenos Aires, Argentina


RADIO SARASANTO: Individual Reports Due in Court on Sept. 18
------------------------------------------------------------
Hector Eduardo Palma, the court-appointed trustee for Radio
Sarasanto S.R.L.'s bankruptcy proceeding, will submit individual
reports in court on Sept. 18, 2006.

These reports are based on creditors' proofs of claim that were
verified on July 21, 2006.  Court No. 24 in Buenos Aires will
determine if the verified claims are admissible, taking into
account Mr. Palma's opinion and the objections and challenges
raised by Radio Sarasanto and its creditors.

A general report that contains an audit of Radio Sarasanto's
accouning and banking records will follow on Oct. 31, 2006.

As reported in the Troubled Company Reporter-Latin America on
June 12, 2006, Radio Sarasanto was forced into bankruptcy at the
request of Daniela Rojas, whom it owes US$41,118.39.

Clerk No. 49 assists the court in this case.

The debtor can be reached at:

         Radio Sarasanto S.R.L.
         Pasaje Nanduti 1456
         Buenos Aires, Argentina

The trustee can be reached at:

         Hector Palma
         Rodriguez Pena 694
         Buenos Aires, Argentina


* ARGENTINA: Looks Into Soya as New Source of Fuel
--------------------------------------------------
Jude Webber, writing for The Financial Times, says that soya
could be the next cheap and renewable substitute for oil in
Argentina and other parts of the world.

According to the same article, soya growers in Argentina are
building factories that could turn soya into biodiesel, a move
that could change the energy industry in the country.

Soya production in Argentina has reportedly reached 40 million
tons in the last season as a result of the introduction of
genetically-modified crops.  Argentina is considered to be the
largest producer of soya.

According to the FT, almost half of Argentina's exports are
derived from farming and 20% are direct exports of raw
materials.  Biofuels -- which sell for around 70% more than
plain oil -- represent a way of adding value to abundant output
from Argentina's primary sector.

"We're building three [biofuels] plants. We dismantled our
previous one as it couldn't expand any more," Jorge Kaloustian,
whose company Oil Fox is one of Argentina's biofuels pioneers,
told the FT.

Meanwhile, Spanish oil major Repsol-YPF, is planning to open a
US$30 million biodiesel plant in 2007 with capacity of 100,000
tons in the first year, the FT says.

The demand for biodiesel is expected to grow by 2010 as a result
of a legislation passed in April requiring fuels to contain 5%
of biofuels.

                        *    *    *

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


WINN-DIXIE: Florida Tax Collectors Want Tax Motion Dismissed
------------------------------------------------------------
The Florida Tax Collectors ask the U.S. Bankruptcy Court for the
Middle District of Florida to abstain from exercising
jurisdiction and to dismiss Winn-Dixie Stores, Inc., and its
debtor-affiliates' motion to reduce and allow certain tax claims
with prejudice.

The tax collectors of Duval, Escambia, and Okaloosa Counties
also filed separate responses.  The Tax Collectors ask the Court
to overrule the Debtors' Objection and deny the Debtors' request
to the Court to determine their tax liabilities.

Brian T. FitzGerald, Esq., at the Hillsborough County Attorney's
Office, in Tampa, Florida, says that the Debtors' Objection
requests a combined claim for relief, which renders the
Objection an adversary proceeding pursuant to Rule 3007 of the
Federal Rule of Bankruptcy Procedure.

The Debtors' objection is based upon a state law cause of action
and is related to a bankruptcy case, but it does not arise in a
Chapter 11 case, Mr. FitzGerald states.

Furthermore, Mr. FitzGerald says, the Tax Injunction Act,
Section 1341 of the Judiciary and Judicial Procedure, and
Section 362(b)(18) of the Bankruptcy Code preclude the Court
from enjoining or otherwise interfering with the assessment of
state ad valorem property taxes.

The Debtors have waived any right to contest the 2004 or 2005
property taxes.  Their delay in asserting a challenge to Florida
property taxes and their attempt to challenge their own sworn
tax returns is cause for denial of the relief they are
requesting based upon the doctrines of laches and unclean hands,
Mr. FitzGerald asserts.

Mr. FitzGerald further asserts that the Eleventh Amendment of
the U.S. Constitution precludes this action against the Florida
Tax Collectors and other constitutional officers and the State
of Florida.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 51; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


WINN-DIXIE: Fairfield Partners Want Montgomery's Motion Denied
--------------------------------------------------------------
Jake Aronov, Owen Aronov, and Fred Berman ask the U.S.
Bankruptcy Court for the Middle District of Florida to rule in
their favor, deny the relief requested by Winn-Dixie Montgomery,
Inc., and award them attorney's fees and costs incurred in the
litigation.

The Defendants deny Winn-Dixie Montgomery, Inc.'s allegations of
breach of contract and unjust enrichment.

Jake Aronov, Owen Aronov, and Fred Berman are the partners of
Fairfield Partners Limited Partnership, which owned the Flint
Ridge Centre in Fairfield, Alabama.

Richard R. Thames, Esq., at Stutsman Thames & Markey, P.A., in
Jacksonville, Florida, presents five affirmative defenses in
support of the Defendants:

   (1) Winn-Dixie is equitably estopped by its conduct and
       silence from collecting any of the US$281,897 at issue in
       this Adversary Proceeding;

   (2) Winn-Dixie has waived its right to collect the US$281,897
       at issue in this Adversary Proceeding by failing to make
       a demand for payment within the time required by the
       Special Incentive Agreement or within a reasonable time;

   (3) Winn-Dixie's claim is barred by the doctrine of laches
       because the company failed to notify the Defendants of
       any claimed breach of the Incentive Payment Agreement or
       of the expiration or termination of any sublease of the
       Midfield property within a reasonable time, effectively
       precluding the Defendants from mitigating the claimed
       damages;

   (4) The Defendants were excused from performance and released
       from the obligation to pay any the US$281,897 at issue as
       a result of Winn-Dixie's prior breach of the Incentive
       Payment Agreement, including the breach of its implied
       duties of good faith, cooperation and fair dealing, and
       its obligation to mitigate damages through re-letting of
       the Midfield property; and

   (5) Winn-Dixie's claims are barred by the applicable statute
       of limitations.

Pursuant to Rule 7056 of the Federal Rules of Bankruptcy
Procedure, the Defendants ask the Court for a partial summary
judgment in their favor regarding issues of whether:

   -- the Incentive Payment Agreement constitutes a promissory
      note; and

   -- Winn-Dixie may seek recovery under an unjust enrichment
      theory.

Mr. Thames asserts that Incentive Payment Agreement is not a
promissory note because the Defendants' reimbursement
obligations are uncertain in amount and contingent upon the re-
letting of Winn-Dixie's former store location in the Midfield
Shopping Center.

The Incentive Payment Agreement does not comport with the
cardinal principle that the sum to be paid must be certain in
amount and not dependent upon contingencies to meet the
definition of a promissory note under Alabama law, Mr. Thames
explains.

Mr. Thames also contends that Incentive Payment Agreement, an
express contract between the Parties, precludes recovery on an
unjust enrichment theory because it concerns the same subject
matter on which the unjust enrichment claim rests.

                  Status of the Proceeding

Winn-Dixie has not yet filed a response to the Defendants'
request for partial summary judgment.  According to Leanne
McKnight Prendergast, Esq., at Smith Hulsey & Busey, in
Jacksonville, Florida, the parties are engaged in negotiations,
which include a possible voluntary mediation.

Winn-Dixie asks the Court to extend the deadline for filing its
response to the Defendants' partial summary judgment request
until Oct. 27, 2006.

Ms. Prendergast assures the Court that the Defendants' counsel
does not oppose Winn-Dixie's request for more time.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 51; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).




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


ARCH CAPITAL: Appoints Jeffrey Goldstein as Board Director
----------------------------------------------------------
Arch Capital Group Ltd., a reinsurance provider in Bermuda, told
the Associated Press that Jeffrey Goldstein has replaced David
Tunnell as a member of the firm's board of directors.

AP relates that Mr. Goldstein is a managing director of Hellman
& Friedman LLC.  He previously worked as managing director,
chief financial officer and as a member of the management
committee of the World Bank.

Arch Capital's shares dropped five cents to US$61.89 on Sept. 13
trading on the Nasdaq, AP states.

Arch Capital Group Ltd., a Bermuda-based company with
approximately US$3.32 billion in capital at June 30, 2006,
provides insurance and reinsurance on a worldwide basis through
its wholly owned subsidiaries.

                        *    *    *

Standard & Poor's Ratings Services assigned on July 2, 2006, its
preliminary 'BBB' senior debt, 'BBB-' subordinated debt, and
'BB+' preferred stock ratings to Arch Capital Group Ltd.'s
universal shelf registration.

                        *    *    *

A.M. Best Co. assigned on MAy 23, 2006, a debt rating of "bb" to
Arch Capital Group Limited's US$125 million 7.875% non-
cumulative Series B preferred shares.  The outlook for this
rating is stable.  Arch's remaining debt ratings and the
financial strength rating of A- of Arch Reinsurance Ltd.
(Hamilton, Bermuda) and its affiliated companies are unchanged.


FOSTER WHEELER: Units Win CFB Boiler Contract in The Netherlands
----------------------------------------------------------------
Foster Wheeler Ltd. disclosed that its German and Dutch
subsidiaries, Foster Wheeler Energie GmbH and Foster Wheeler
Europe B.V., which are both part of its Global Power Group, have
been awarded a turnkey contract to design, supply and erect a
circulating fluidized-bed or CFB boiler island for NV
Huisvuilcentrale Noord-Holland's new biomass power station to be
built at its existing waste incineration plant in the town of
Alkmaar in The Netherlands.

The contract, valued at approximately US$29.5 million (EUR23
million), will be included in the company's third-quarter
bookings.

The contract includes the design and supply of the 71-megawatt
thermal CFB boiler, auxiliary equipment, feedwater system,
instrumentation and control system, boiler house steel
construction, plus erection and commissioning services.  The
boiler will be fueled by demolition wood. The boiler island is
scheduled for commercial operation in early Jan. 2008.

"This is the tenth demolition-wood-fired CFB project awarded to
Foster Wheeler," said James E. Stone, chief executive officer,
Foster Wheeler Power Group Europe.  "This award confirms our
customer's confidence in our project execution and in our CFB
technology, which is ideally suited to burning biomass
efficiently and with low emissions."

                    About Foster Wheeler

Headquartered in Hamilton, Bermuda, Foster Wheeler Ltd.
-- http://www.fwc.com/-- offers a broad range of engineering,
procurement, construction, manufacturing, project development
and management, research and plant operation services.  Foster
Wheeler serves the refining, upstream oil and gas, LNG and gas-
to-liquids, petrochemical, chemicals, power, pharmaceuticals,
biotechnology and healthcare industries.

                        *    *    *

As reported in the Troubled Company Reporter on Aug 7, 2006,
Standard & Poor's Ratings Services assigned its 'BB-' bank loan
rating and '1' recovery rating on Foster Wheeler Ltd.'s proposed
five-year, US$350 million senior secured credit facilities due
2011, reflecting a high expectation of full recovery of
principal (100%) in the event of a payment default.

As reported in the Troubled Company Reporter on May 30, 2006,
Moody's Investors Service upgraded Foster Wheeler's corporate
family rating to B1 from B3 and assigned a Ba3 rating to the
Company's US$250 million senior secured bank revolving credit
facility.  The rating outlook is changed to Positive.


FOSTER WHEELER: Unit Secures Delayed Coker Contract from BP Oil
---------------------------------------------------------------
Foster Wheeler Ltd. disclosed that its subsidiary Foster Wheeler
Iberia, S.A., part of its Global Engineering and Construction
Group, has been awarded a detailed engineering, procurement and
construction supervision contract by BP Oil Refineria de
Castellon, S.A. for a new delayed coker at BP's Castellon
Refinery in Spain.

The terms of the award were not disclosed. The project was
included in the company's second-quarter bookings for 2006.

The 20,000 barrels per stream day coker will use Foster
Wheeler's Selective Yield Delayed Coking or SYDEC(SM)
technology.  This award follows the completion of the process
design package by Foster Wheeler's coking center of excellence
in Houston, and the front-end engineering design, which was
undertaken by the company's Madrid operation.  The new delayed
coker, scheduled for completion during 2008, is part of BP's
planned reconfiguration of the Castellon refinery to reduce
residual fuel oil production.

"This award reflects the successful and long-standing working
relationship between BP's Castellon refinery and Foster Wheeler
Iberia," said Jesus Cadenas, General Manager of Foster Wheeler
Iberia. "We are also very pleased that BP has selected Foster
Wheeler's technology and project execution expertise for its
European delayed coker."

Foster Wheeler's SYDEC(SM) process is a thermal conversion
process used by refiners worldwide to upgrade heavy residue feed
and process it into high value transport fuels.  The SYDEC(SM)
process achieves maximum clean liquid yields and minimum fuel
coke yields from high sulfur residues.  By installing a
SYDEC(SM) unit, a refinery owner is able to process heavier
crudes, which sell at a discount to the benchmark light, sweet
crudes, thereby allowing the owner to reap the benefit of
increased refining margins.

Foster Wheeler is a market leader in delayed coking and has
supplied the coking process technology for more than 50 delayed
coking plants worldwide.

                    About Foster Wheeler

Headquartered in Hamilton, Bermuda, Foster Wheeler Ltd. --
http://www.fwc.com/-- offers a broad range of engineering,
procurement, construction, manufacturing, project development
and management, research and plant operation services.  Foster
Wheeler serves the refining, upstream oil and gas, LNG and gas-
to-liquids, petrochemical, chemicals, power, pharmaceuticals,
biotechnology and healthcare industries.

                        *    *    *

As reported in the Troubled Company Reporter on Aug 7, 2006,
Standard & Poor's Ratings Services assigned its 'BB-' bank loan
rating and '1' recovery rating on Foster Wheeler Ltd.'s proposed
five-year, US$350 million senior secured credit facilities due
2011, reflecting a high expectation of full recovery of
principal (100%) in the event of a payment default.

As reported in the Troubled Company Reporter on May 30, 2006,
Moody's Investors Service upgraded Foster Wheeler's corporate
family rating to B1 from B3 and assigned a Ba3 rating to the
Company's US$250 million senior secured bank revolving credit
facility.  The rating outlook is changed to Positive.


MAGNOLIA INSURANCE: Proofs of Claim Filing Is Until Sept. 27
------------------------------------------------------------
Magnolia Insurance Company Ltd.'s creditors are given until
Sept. 27, 2006, to prove their claims to Stephen Pearce, the
company's liquidator, or be excluded from receiving any
distribution or payment.

Creditors are required to send by the Sept. 27 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. Pearce.

Magnolia Insurance's shareholders agreed on Aug. 28, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

         Armoury Building
         37 Reid Street, 1st Floor
         Hamilton, Bermuda


SOLVEST LTD: Moody's Reviews Ratings for Possible Downgrade
-----------------------------------------------------------
Moody's Investors Service placed the long term ratings of Dole
Food Company, Inc., and Dole's wholly owned subsidiary --
Solvest, Ltd. -- (corporate family rating of B1) under review
for possible downgrade.  The review reflects Dole's weaker than
expected operating performance and the deterioration in its debt
protection measures.  It also reflects the uncertainty
surrounding the longer-term impact that structural changes in
the key EU banana market will have on Dole's operating
performance.

Moody's review will focus on:

   (1) the degree to which Dole's European banana business is
       being impacted as the company adjusts to the new EU
       banana regulatory structure, including how long it may
       take for the company to adjust to this new framework as
       well as the possible impact on its financial performance;

   (2) efforts the company is making to address continuing
       weakness in its fresh flower business; and

   (3) near term actions the company can take to strengthen debt
       protection measures to levels appropriate to its current
       ratings.

Ratings placed under review for possible downgrade are:

   Dole Food Company, Inc.

      -- Corporate family rating at B1;

      -- US$225 million senior secured 7-year term loan at Ba3;

      -- US$50 million senior secured 7-year pre-funded letter
         of credit facility at Ba3;

      -- Senior unsecured notes at B3;

      -- Senior unsecured shelf at (P)Caa1;

      -- Senior subordinated shelf at (P)Caa2; and

      -- Junior subordinated shelf at (P)Caa2.

   Solvest, Ltd.

      -- US$750 million senior secured 7-year term loan at Ba3;
         and

      -- US$50 million senior secured 7-year pre-funded letter
         of credit facility at Ba3.

Dole Food Company, Inc., headquartered in Westlake Village,
California, has revenues of US$5.8 billion.




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


* BOLIVIA: State Oil Firm Begins Ownership Rights Execution
-----------------------------------------------------------
Yacimientos Petroliferos Fiscales Bolivianos aka YPFB, the
state-run oil company of Bolivia, started executing ownership
rights on oil and liquid gas produced in the nation, according
to a release from the Ministry of Hydrocarbons.

Prensa Latina relates that the ministry implemented the
nationalization decree of hydrocarbons.

The statement notes that YPFB will have the exclusive rights to
export crude, liquid gas, oil and derivatives.

Prensa Latina underscores that a nationalization decree was
previously applied to natural gas, which is a main energy
product of Bolivia.

A ministerial group, says Prensa Latina, is holding talks with
domestic oil firms regarding the signing of new contracts
according to government models.

Bolivia is negotiating the transfer of share packages of the
privatized oil firms to the state.  If the state succeeds, YPFB
will assume 50% plus one actions of the companies, Prensa Latina
states.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO NACIONAL: Grants BRL26.1MM Financing to Corol Cooperativa
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a BRL26.1 million financing to Corol Cooperativa
Agroindustrial for the implementation of a wheat crushing plant
in Rolandia.  Total investment reaches BRL40.9 million, with
Corol using BRL14.8 million from its own funds.

Approved in the under the Cooperative Development Program for
the Addition of Value to Farming Production or PRODECOOP, BNDES'
financing is divided into two subcredits of BRL13.06 million
each, to be handed over by the operating financial agents --
Banco do Brasil and Banco Regional de Desenvolvimento do Extremo
Sul or BRDE.

The location where the crushing plant will be installed already
has an adequate infrastructure, having a capacity of 50% of the
storage needed, with a granary, three silos of 1,250 tons each,
roadway and railway reception and shipment services, in addition
to cleaning and pre-cleaning systems.

Corol operates in various productive chains.  It trades several
raw agricultural products such as soy, corn, wheat, coffee,
sugar cane and orange.  It provides its members with seeds,
herbicides, correctives, fungicides, animal rations, mineral
supplements, insecticides, parts and lubricants, besides
providing technical assistance to members. It also manufactures
coffee, sugar, alcohol, orange juice, animal rations and
concentrated products.

The cooperative, which is present at 32 municipalities at north
of the State of Parana and in Iepe, has about 7,500 members, of
whom

                        *    *    *

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. 75% are small
producers and has a staff of 1,400 employees.  After
implementation of the wheat crushing plant, it is expected that
the project will generate 76 direct and 50 indirect jobs.


BANCO VOTORANTIM: S&P Rates US$200MM Sr. Unsecured Notes at BB
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' senior
unsecured debt rating to Banco Votorantim S.A.'s US$200 million
notes to be issued in Sept. 2006 and maturing in 2016.  At the
same time, Standard & Poor's affirmed its 'BB' long-term
counterparty credit rating on the bank.  The outlook is stable.

"The counterparty credit rating on Banco Votorantim incorporate
the potential risks associated with the bank's treasury
business; its exposure to sovereign risk through its government
securities portfolio, a common issue for Brazilian banks; and
the risks associated with the volatile economic environment in
Brazil that might cause asset quality deterioration following
strong expansion of the loan portfolio," said Standard & Poor's
credit analyst Daniel Araujo.  The rating benefits from the
implicit support of the Votorantim Group (BBB-/Stable/--), the
group's strong brand name, and the bank's good profitability.
The ratings also factor in the bank's experienced management
team and efficient decision-making processes.

Banco Votorantim has carried relatively high exposure to
Brazil's sovereign risk in recent years through its government
securities portfolio and open-market operations.  The bank's
treasury operations and the rendering of hedge instruments to
its clients, which was more pronounced in previous years,
explain this exposure.  In June 2006, the volume of government
securities reached 3.0x its equity (based on consolidated
figures) and 6.2x its equity, including open market operations.

The Votorantim Group is one of the largest and most influential
industrial conglomerates in Brazil.  Its brand-name recognition
has helped the bank to leverage on its business, and the images
of both organizations are closely linked.  The ratings
incorporate implicit support from Votorantim Group, although
this is not expected in the event of system risk.  The
Votorantim Group supervises the bank's activities and
operations, and its conservatism permeates the bank's
activities.  Banco Votorantim's management is made up of
professionals with vast experience in the financial markets and
the Group's companies.

The stable outlook reflects a balance between negative ratings
factors, namely the volatility of the economy and the potential
risks related to asset quality-especially because of the fast-
growth approach taken for several years already-its holdings of
government securities; and its positives, including the good
management of credit risk, its implicit support from the
Votorantim Group, its good business profile, and its
consistently high profitability.

In the event of a downgrade or negative change for the foreign
currency sovereign credit rating and/or outlook on Brazil, the
credit rating and/or outlook on Banco Votorantim would move in
tandem.  If, on the other hand, the sovereign foreign currency
rating has positive changes, we would make an assessment on a
case-by-case basis.  The main negative item that could generate
downward pressure on the ratings is asset quality and worsening
profitability.  On the upward side, the rating would benefit
from maintaining asset quality under control, and qualitative
improvements in profitability and capitalization.


DRESSER-RAND: S&P Upgrades Corp. Credit Rating to BB- from B+
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on rotating equipment maker Dresser-Rand Group Inc. to
'BB-' from 'B+' and revised the outlook on the rating to stable
from positive.

As of June 30, 2006, the Houston, Texas-based company had US$553
million of debt.

"The upgrade reflects an improved financial risk profile mainly
resulting from the company's use of cash flow and a portion of
IPO proceeds to repay debt," said Standard & Poor's credit
analyst Aniki Saha-Yannopoulos.

The financial risk profile also benefits from improved operating
margins, the heightened transparency and consistent financial
disclosure required of public companies, and the decreased
control of private equity firm First Reserve Corp. over the
company following a reduction in its ownership position.

First Reserve bought Dresser-Rand, previously a unit of
Ingersoll-Rand Co., in a leveraged buyout transaction in
Oct. 2004.  Through an IPO and secondary offering, First Reserve
reduced its ownership to about 31%.  Since the acquisition, the
company has used a portion of proceeds from the equity issuance
and operating cash flow to repay about US$175 million of debt

The stable outlook reflects our expectation that Dresser-Rand
will maintain its improved operating performance and prudent
capital structure.  Deterioration in operating margins or cash
flow or an increase in leverage could result in a negative
outlook or lowered ratings.  Ratings improvement is limited by
the highly cyclical nature of the company's end markets.


GERDAU SA: Moody's Reviews Ba2 Global Curr. Rating & May Upgrade
----------------------------------------------------------------
Moody's Investors Service has placed the Ba2 global local
currency corporate family rating of Gerdau S.A. under review for
possible upgrade, following a similar action on Sept. 6, 2006,
with regards to Gerdau Ameristeel Corp. (Ba2), the group's
operational subsidiary in North America that represents some 43%
of consolidated revenues and 34% of the group's EBITDA.

Simultaneously, Moody's revised the outlook to positive from
stable of the Ba1 global local currency corporate family rating
of the Brazilian operations of Gerdau (represented by Gerdau
Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais
S.A., and Gerdau Comercial de Acos S.A.) and of the Ba1 foreign
currency rating of Gerdau Brazil's US$600 million perpetual
bonds.  The change in outlook reflects the maintenance of good
operating margins and debt protection metrics, as well as solid
liquidity position in spite of the ongoing substantial
investment program.

Finally, Moody's withdrew the Ba1 rating of GTL Trade Finance
Inc.'s (British Virgin Islands) proposed US$450 million
guaranteed bonds due 2016 since the debt issuance was not
consummated.

The affected ratings are:

   Gerdau S.A.

      -- Ba2 global local currency corporate family rating:
         placed under review for possible upgrade;

   Gerdau Brazil

      -- Ba1 global local currency corporate family rating:
         outlook changed to positive from stable;

      -- Ba1 foreign currency rating of US$600 million
         guaranteed perpetual bonds: outlook changed to positive
         from stable; and

   GTL Trade Finance Inc., BVI

      -- Ba1 Guaranteed Global Bonds Due 2016: rating withdrawn.

Headquartered in Porto Alegre, Brazil, Gerdau S.A. is the
largest long steel producer in Brazil and the second largest
long steel manufacturer in North America, with consolidated net
revenues of about BRL21.5 billion (about US$9.6 billion) in the
last twelve months through June 30, 2006.


* BRAZIL: Inks 9 Deals with India During IBSA Summit
----------------------------------------------------
Brazilian President Luiz Inacio Lula da Silva and Indian Prime
Minister Manmohan Singh inked nine bilateral accords during the
first IBSA summit.  IBSA stands for India, Brazil and South
Africa, Xinhua news agency reports.

Indo-Asian News Service says the deals span the areas of
agriculture, science and technology, air services, human
settlements, plant health protection, culture, standards, and
two commercial ones regarding oil exploration and mining.

In a statement, the Indian prime minister said he wants the
relations between the big democracies of Asia and Latin America
to be elevated to that of a "strategic partnership," Indo-Asian
News Service relates.

South African President Thabo Mbeki was also present during the
summit.

The three leaders seek to strengthen trilateral ties in all
fields, Xinhua relates, citing a communique.

The group, established in 2003 by the Brazilian president, aims
to enhance the exchanges and cooperation among the three
developing countries and seek a stronger say during their talks
with developed countries.

                        *    *    *

As reported on Sept. 4, 2006, Brazil's 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.




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


AFM CO: Invites Shareholders for a Final Meeting on Sept. 22
------------------------------------------------------------
AFM Co., Ltd.'s final shareholders meeting will be at 9:30 a.m.
on Sept. 22, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         Walker House
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands


CITIGROUP ALTERNATIVE: Last shareholders Meeting Is on Sept. 22
---------------------------------------------------------------
Citigroup Alternative Investments Libra Strategies International
Ltd.'s final shareholders meeting will be at 10:00 a.m. on
Sept. 22, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         Walker House
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands


DC SCALA: Calls Shareholders for a Final Meeting on Sept. 22
------------------------------------------------------------
DC Scala Three Cayman's final shareholders meeting will be at
12:00 a.m. on Sept. 22, 2006, at the company's registered
office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         Walker House
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands


JP MORGAN: Liquidator Presents Wind Up Accounts on Sept. 22
-----------------------------------------------------------
J.P. Morgan New Century Fund, Ltd.'s final shareholders meeting
will be at 11:00 a.m. on Sept. 22, 2006, at the company's
registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         Walker House
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands


LIBERTYVIEW HEALTH: Final Shareholders Meeting Is on Sept. 22
-------------------------------------------------------------
Libertyview Health Sciences Fund, Ltd.'s final shareholders
meeting will be at 10:30 a.m. on Sept. 22, 2006, at the
company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         Walker House
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands


LUKOIL AMERICAS: Final Shareholders Meeting Is Set for Sept. 22
---------------------------------------------------------------
Lukoil Americas Holding Ltd.'s final shareholders meeting will
be at 12:30 a.m. on Sept. 22, 2006, at the company's registered
office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         Walker House
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands


MERRILL LYNCH (FUND): Sets Last Shareholders Meeting on Sept. 22
----------------------------------------------------------------
Merrill Lynch QA Convertible Securities Arbitrage Fund's final
shareholders meeting will be at 1:00 a.m. on Sept. 22, 2006, at
the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         Walker House
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands


MERRILL LYNCH (LTD): Sets Final Shareholders Meeting on Sept. 22
----------------------------------------------------------------
Merrill Lynch QA Convertible Securities Arbitrage Limited's
final shareholders meeting will be at 1:30 a.m. on
Sept. 22, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         Walker House
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands


PARMALAT: Cayman Appellate Court OKs Ernst & Young's Employment
---------------------------------------------------------------
The appointment of Gordon I. MacRae and James Cleaver at Kroll
(Cayman) Limited as Joint Official Liquidators of Parmalat
Capital Finance Limited has been affirmed by the Court of
Appeals in Cayman Islands, Richard I. Janvey, Esq., at Janvey
Gordon Herlands Randolph & Cox LLP, in New York, informed Judge
Drain.

As reported in the Troubled Company Reporter on June 22, 2006,
the Grand Court of Cayman Islands appointed Messrs. MacRae and
Cleaver as Joint Official Liquidators of Parmalat Capital, Dairy
Holdings Limited, and Food Holdings Limited in May 2006.
Parmalat Finanziaria SpA and its affiliates and subsidiaries
took an appeal from the Grand Court Order.

Dr. Enrico Bondi, Extraordinary Administrator of the Parmalat
companies, has indicated that he will take the appeal to the
Privy Counsel, Mr. Janvey relates.

Messrs. MacRae and Cleaver are former partners of Ernst & Young
Restructuring Ltd., before Kroll Cayman, an affiliate of Kroll,
Inc., acquired the Cayman Islands insolvency and advisory arm of
Ernst & Young in 2005.

                       About Parmalat

Headquartered in Wallington, New Jersey, Parmalat USA Corp.
-- http://www.parmalatusa.com/-- generates more than 7 billion
euros in annual revenue.  The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents.  The Company filed for
chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No.
04-11139).  Gary Holtzer, Esq., and Marcia L. Goldstein, Esq.,
at Weil Gotshal & Manges LLP, represent the Debtors.  When the
U.S. Debtors filed for bankruptcy protection, they reported more
than US$200 million in assets and debts.  The U.S. Debtors
emerged from bankruptcy on April 13, 2005.  (Parmalat Bankruptcy
News, Issue No. 77; Bankruptcy Creditors' Service, Inc.,
215/945-7000, http://bankrupt.com/newsstand/)


S.E.C.T.O.R. STRATEGY: Final Shareholders Meeting Is on Sept. 22
----------------------------------------------------------------
The S.E.C.T.O.R. Strategy Fund International Ltd.'s final
shareholders meeting will be at 11:30 a.m. on Sept. 22, 2006, at
the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         Walker House
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands


TAMARIN II: Shareholders Convene for a Final Meeting on Sept. 22
----------------------------------------------------------------
Tamarin II Lease Finance Ltd.'s final shareholders meeting will
be at 9:00 a.m. on Sept. 22, 2006, at the company's registered
office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

         John Cullinane
         Derrie Boggess
         c/o Walkers SPV Limited
         Walker House
         P.O. Box 908, George Town
         Grand Cayman, Cayman Islands


* Cayman Islands Mark 8,000th Hedge Fund
----------------------------------------
The Cayman Islands Monetary Authority announced on Sept. 5 that
the jurisdiction now has more than 8,000 registered hedge funds,
an increase of more than 2,000 funds compared to the beginning
of 2005. More than 1,000 new hedge funds were authorized in the
first half of 2006 alone, which is a record for any six-month
reporting period in the Cayman Islands.  This surge in hedge
funds is the result of a range of factors including non-
traditional applications of hedge funds and increased interest
in emerging markets, according to a new analysis by Walkers, the
global offshore law firm of choice for companies, financial
organizations, and international law firms.

"Despite an increased focus on regulations by governing bodies
such as the Securities and Exchange Commission in the U.S. and
the Financial Services Authority (FSA) in the UK, the hedge fund
market continues to thrive," Mark Lewis, a Senior Investment
Funds Partner for Walkers, said.

"Hedge fund managers are finding new ways to apply their skills
and strategies.  The lines are beginning to blur between hedge
funds and private equity funds, with more similar structures and
applications being used by both types of managers.  In addition,
the recent US Pension Protection Act 2006, will reduce the
number of investment funds that need to operate in compliance
with ERISA regulations and will open up additional investment
opportunities for employee benefit plans that were previously
precluded from investing in hedge funds."

According to Hedge Fund Research, Inc., the hedge fund industry
attracted USDUS$42.1 billion in new money in the second quarter
of 2006 alone, bringing total industry assets under management
to USDUS$1.225 trillion. This influx is the biggest quarterly
jump in new funds since HFR started tracking in 2003.

As hedge funds become more common in emerging markets, there is
every reason to expect that the global pie will continue to
grow.  According to a July report by the International Monetary
Fund, foreign holdings of Zambian government securities
primarily by hedge funds rose from a "negligible amount" to
K540bn (USDUS$150m) during 2005, mostly in the last quarter.  By
May this year, that figure had risen to K840bn (USDUS$233m).

In addition to the increase in global strategies being employed,
the demographic of the investors who are attracted to the hedge
funds is also becoming more global with investment managers and
financial institutions less dependent on investors from the
United States and EU countries.

"We continue to see strong hedge fund interest globally from
investors in Asia and the Middle East, as well as U.S. and UK
institutions," Jonathan Tonge, Investment Funds Group Managing
Partner for Walkers, said.  "The number of hedge funds being
terminated has also risen, but with a steady increase in new
hedge fund registrations, the termination to new fund
registration ratio remains at a 1:3.  These changes in fund
status reflect the maturity of the market where investors are
not prepared to tolerate extended periods of poor performance,
and variables that impact hedge fund investment such as the
recent changes to the U.S. Pension Protection Act and increased
costs of regulation and compliance.  However, the rate of growth
still far outpaces terminations."

The Cayman Islands provide hedge funds with a no tax
jurisdiction, a sophisticated financial infrastructure that
includes major banks and accounting firms, and therefore the
ability to achieve measurable savings, which, in turn, are
passed along to investors.

                About Walkers and Walkers SPV

Based in the Cayman Islands with offices in the British Virgin
Islands, Dubai, Hong Kong, Jersey, and London, Walkers SPV --
http://www.walkersglobal.com/-- offers high-level skills across
the legal spectrum for Cayman, BVI, and Jersey law.  Walkers was
named by HedgeWorld Limited as the top law firm for hedge funds
by total assets of funds and assets of non-U.S. funds, as well
as the 2006 Who's Who Legal Law Firm of the Year: Cayman
Islands, the PLC Which Lawyer? Yearbook 2006 Leading Cayman
Islands Law Firm, and The Lawyer's 2006 Offshore Law Firm of the
Year.  The firm acts for a wide range of clients including major
financial institutions, investment banks, leading law and
accounting firms, major Corp.s of all kinds, partnerships, trust
companies and other fiduciaries representing almost every
country in the world.  It aims to provide clear, concise and
practical advice based on an in-depth knowledge of the legal,
regulatory and commercial environment in the Cayman Islands,
Jersey, and the BVI.  It is experienced in all types of
international and cross-border transactions and welcomes a close
working relationship with clients and their other professional
advisers.

The firm can be reached at:

         Walkers SPV
         Walker House, 87 Mary Street, George Town
         Grand Cayman KY1-9001, Cayman Islands
         Tel: +1 345 949 0100
         Fax: +1 345 949 7886
         Email: info@walkersglobal.com




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


IMMERSION CORP: Balance Sheet Upside-Down by US$20MM at June 30
---------------------------------------------------------------
Immersion Corp.'s balance sheet at June 30, 2006, showed
US$47,380,000 in total assets and US$67,446,000 in total
liabilities, resulting in a US$20,066,000 stockholders' deficit.
As of June 30, 2006, Immersion had cash and cash equivalents
totaling US$30.9 million.

Net loss on a Generally Accepted Accounting Principles basis for
the second quarter of 2006 was US$2.4 million down 16 percent
compared to a net loss on a GAAP basis of US$2.8 million for the
second quarter of 2005.  Net loss for the three months ended
June 30, 2006, included stock-based compensation expense of
US$694,000 while net loss for the three months ended
June 30, 2005, did not include any stock-based compensation
expense.

Revenues were US$6.7 million for the quarter ended
June 30, 2006, compared to revenues of US$6.2 million for the
second quarter of 2005.

Revenues were US$12.7 million for the six months ended
June 30, 2006, compared to revenues of US$12 million for the
first six months of 2005.  Net loss on a GAAP basis for the
first six months of 2006 was US$5.3 million, down 11 percent
compared to a net loss on a GAAP basis of US$6 million for the
first six months of 2005.

"Our loss for the quarter, excluding non cash stock
compensation, is the lowest quarterly loss since going public in
1999 and reflects our continued efforts to achieve
profitability," said Victor Viegas, Immersion CEO and president.
"Our overall revenue growth of 7 percent results from a 28
percent growth in our non-gaming businesses and a 46 percent
decrease in our gaming revenue mainly due to the downturn of
third-party controller sales in the video game industry.

"In June, we announced our new TouchSense(R) technology for
next-generation video console systems.  The new vibration
feedback technology provides a far more engaging, realistic, and
immersive tactile experience that matches the realism expected
of next-generation high-definition graphics and high-fidelity
sound.  This new TouchSense technology can work alongside motion
and tilt sensing and provides backward compatibility for
existing dual-motor systems, allowing an implementation path at
any stage of product lifecycle, even after a console model has
launched.

"In the past three months, several significant advances have
been made in our Mobility business.  We signed a license
agreement for our VibeTonz(R) System with LG Electronics, the
number four mobile handset manufacturer in the world and the top
producer of handsets based on CDMA technology.  In addition, we
continue to build support from wireless operators such as SK
Telecom, the leading Korean mobile operator.  SKT recently
launched a VibeTonz-only content service called VibeBell,
offering over 1,000 VibeTonz-enhanced music clips that
subscribers can use to personalize their phones.  SKT's first
handset to support this service is the newly-released Samsung
SCH-B450, which uses the VibeTonz System to play touch effects
embedded in games and MPEG-4 media.  Also in June, we introduced
an important new capability of our VibeTonz System, the
enablement of tactile feedback in touchscreens for smartphones,
the fastest-growing products in the handset market."

                        About Immersion

Immersion Corp. -- http://www.immersion.com/-- develops,
licenses and markets digital touch technology and products.
Immersion's technology is deployed across automotive,
entertainment, medical training, mobility, personal computing,
and three-dimensional simulation markets. Immersion's patent
portfolio includes over 600 issued or pending patents in the
United States and other countries.  In Latin America, Immersion
has presence in Argentina, Brazil, Chile, Colombia, Mexico and
Venezuela.




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


BBVA COLOMBIA: Posts COP182 Bil. Jan. to Aug. 2006 Profits
----------------------------------------------------------
BBVA Colombia said in a press release that its profits increased
72.3% to COP182 billion for the period Jan. to Aug. 2006,
compared with the same period of 2005.

BBVA Colombia reported COP12.4 trillion in assets.  Its equity
was COP1.19 trillion.

                        *    *    *

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


OLEODUCTO CENTRAL: S&P Says Rating Shows Risk of Payment Source
---------------------------------------------------------------
Standard & Poors said the 'BB' long-term foreign currency rating
on Oleoducto Central S.A.'s aka Ocensa debt reflects the risk of
a single source of repayment (Ecopetrol S.A.'s (not rated)
contractual payments to Ocensa).  The ratings on Ocensa's
tranche A debt also take into account Ocensa's strategic
importance to the Republic of Colombia through Ecopetrol, which
holds a 35% stake in Ocensa's capital stock.  These strengths
are offset in part by the weaker-than-expected production levels
at the Cusiana and Cupiagua oil fields.

Ocensa's debt is divided into four tranches, each of which is
supported almost exclusively by contractual payments (tariffs,
advance tariff payments, transportation notes, and tariff
advances).

Ecopetrol is the initial shipper in the case of Ocensa's tranche
A debt.  The initial-shipper tariff covers the full amount of
Ocensa's costs and is established by Ocensa annually and
adjusted monthly.  The tariff incorporates Ocensa's:

   -- operating and maintenance costs;
   -- scheduled payments of principal and interest on senior
      debt of the related senior debt tranche; and
   -- a fixed ROE for each of the pipeline's owners.

If tariff payments are insufficient to cover interest payments
in any period, the initial shippers are obligated to advance the
shortfall to Ocensa by paying advanced tariffs or purchasing
transportation notes.  If an initial shipper fails to make such
payments as they come due, Ocensa is authorized to sell the
Cusiana petroleum (other than that from Royalty Oil) that the
initial shipper delivered to it, as well as retain the proceeds
to pay the amount of any unpaid tariffs.

The terms of the borrowing agreements also compel Ecopetrol to
make minimum tariff payments to Ocensa for 180 days following
the declaration of force majeure or any other excusable event,
providing Ocensa with additional flexibility to weather service
interruptions.

Ocensa is also considered a strategic asset to the Republic of
Colombia, given that it is the only export route for Cupiagua
and Cusiana crude oil and that it can transport approximately
615,000 barrels per day (bpd) at 90% utilization, enabling
Colombia to increase crude oil exports substantially.  During
2001, 2002, and 2003, Colombian guerrillas attacked and damaged
the pipeline.  However, the security environment in Colombia has
improved in recent years and potential attacks are no longer a
concern.

From 1999 to 2005, production levels at Cusiana and Cupiagua
declined gradually and never reached the 500,000 bpd originally
expected.  In fact, production peaked in 1999 at 420,000 bpd.
Oil transportation during the first half of 2006 remains at
approximately 250,000 bpd, compared with the projected figure of
about 296,000 bpd.

Ocensa repaid the tranche A debt portion that was due on 2005,
and met the scheduled Sept. 1, 2006, debt service payment of
about US$48 million.  The remaining US$48 million in tranche A
debt outstanding is due in March 2007, and we expect the company
will meet this final debt service payment.

Ocensa is a capital stock company formed to acquire, develop,
own, and operate the 840-kilometer Oleoducto Central pipeline,
which transports crude from the Cupiagua and Cusiana oil fields
in Colombia's Llanos Basin to the Port of Covenas.

Outlook

The positive outlook reflects:

   -- the outlook assigned to the Republic of Colombia due to
      the government's ownership of Ecopetrol;

   -- the importance of the oil company to public-sector
      revenues and to the country's economy; and

   -- the considerable government oversight of the company's
      activities.

A sharp decline in oil production activities or significant
deterioration in national security could result in downward
pressure on Ocensa's creditworthiness.




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


DIRECTV: Inks Audience Measurement Monitoring Pact with TNS
-----------------------------------------------------------
DIRECTV, Inc. (NYSE: DTV), a digital television service provider
with more than 15.5 million subscribers, and TNS Media Research,
a world leader in video audience measurement, have entered into
an agreement to launch audience measurement services that will
focus on DIRECTV interactive subscriber households.

DIRECTV is the industry leader in interactive technology that is
providing customers with a distinctive viewing experience in
both sports and general entertainment programming and offering
advertisers an innovative and compelling way to develop and
distribute advertising messages.

DIRECTV will use TNS Media's advanced audience measurement
capabilities to better understand consumer consumption of the
various programming and interactive services it offers.  TNS
Media will use aggregated and anonymous clickstream data from a
sample based on 250,000 DIRECTV customers to provide audience
and navigation metrics on viewing and interactive activity.
Importantly, the navigation reports will allow DIRECTV to better
understand its customers' use of DIRECTV interactive
applications. DIRECTV respects the privacy of its customers and
unless customers provide consent through an opt-in process,
DIRECTV only provides viewing data on an aggregated and
anonymous basis.

"By working with TNS Media Research, we will be able to provide
our programming partners and our advertisers with a deep
understanding of our interactive services and enable them to
make more well-informed and strategic decisions," said Eric
Shanks, executive vice president, DIRECTV Entertainment.

TNS Media Research will provide all processing and reports using
TNS InfoSys, the most widely used media analysis and planning
system in the world.  In addition to top-line reach and
frequency reports, InfoSys provides minute-by-minute day part
and program tracking and program duplication, and also permits a
range of comprehensive audience profiles.

"Partnering with DIRECTV represents another key milestone in our
U.S. strategy of providing advanced digital audience measurement
services that will have a significant impact on our customers'
bottom-line," said George Shababb, chief operating officer, TNS
Media Research.

"TNS Media Research is leading the way in the development of new
digital measurement services that provide critical insights
about consumer viewing habits in today's rapidly changing
television landscape."

                         About TNS

TNS Media Research -- http://www.tns-global.com/-- is a market
information group.  It is the world's largest custom research
company and a leading provider of social and political polling.
It is also a major supplier of consumer panel, TV audience
measurement and media intelligence services.

TNS has global television and radio audience measurement
capabilities spanning 26 countries including major markets such
as the UK and other countries where STB measurement services
have been launched.  TNS operates a global network spanning 70
countries and employs over 13,000 people.  It markets
information and measurement, together with insights and
analysis, to local and multinational organizations.

                       About DIRECTV

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

                        *    *    *

On June 8, 2005, Moody's assigned a Ba2 rating to DIRECTV's US$1
billion senior unsecured notes.  Moody's said the rating outlook
is stable.




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


TRICOM SA: Switches to Per-Second Billing
-----------------------------------------
Tricom SA -- along with Orange Dominicana and Verizon Dominicana
-- has switched to per-second billing from per-minute billing,
according to a report by Listin Diario.

Business News Americas relates that consumer groups have been
insisting for per-second billing since 2005.

The operators will now gain customers who used to ignore the
service for fear of being charged for seconds they don't use,
Alfonsina Cuesta -- the leader of Fundecom, a consumer rights
group -- told BNamericas.

The firms will benefit as much as their clients, BNamericas
says, citing Ms. Cuesta.

Tricom, S.A. -- http://www.tricom.net/-- is a full service
communications services provider in the Dominican Republic.  The
Company offer local, long distance, mobile, cable television and
broadband data transmission and Internet services.  Through
Tricom USA, the Company is one of the few Latin American based
long distance carriers that is licensed by the U.S. Federal
Communications Commission to own and operate switching
facilities in the United States.  Through its subsidiary, TCN
Dominicana, S.A., the Company is the largest cable television
operator in the Dominican Republic based on its number of
subscribers and homes passed.   The Company's securities are
traded in the United States.

                        *    *    *

Moody's Investors Service assigned a Ca issuer and senior
unsecured ratings to Tricom SA.  Moody's said the outlook is
stable.




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


SBARRO INC: Posts US$1.25 Mil. Net Loss in Quarter Ended July 16
----------------------------------------------------------------
Sbarro, Inc., incurred a US$1,258,000 net loss on US$75,661,000
of revenues for the three months ended July 16, 2006, compared
to a US$3,311,000 net loss on US$74,644,000 or revenues for the
three months ended July 17, 2005.

At July 16, 2006, the Company's balance sheet showed
US$382,035,000 in total assets, US$40,467,000 in current
liabilities, US$268,621,000 in long-term debt, deferred rent of
US$8,782,000 and stockholders' equity of US$64,165,000.

A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?1185

Sbarro, Inc. -- http://www.sbarro.com/-- 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
=================


DELTA AIR: Will Expand Flights to Guatemala City
------------------------------------------------
Delta Air Lines will expand flights to Guatemala City to four
times weekly from once a week starting Dec. 17.  This is in
response to strong demand for recently disclosed service between
Los Angeles and the Guatemalan capital.

To celebrate the new and expanded service, Delta is offering
customers special low introductory fares for travel between
Central America and the US until Sept. 26, 2006.

This new and expanded service from Los Angeles complements
Delta's previously announced plans to add 16 new routes from its
West Coast gateway at Los Angeles International Airport to
accommodate soaring demand in one of the country's largest
travel markets for Hispanic customers.  With the addition of
flights to Managua and Puerto Vallarta, Delta's Los Angeles
expansion will include new nonstop flights to 10 Mexican
destinations, three Central American destinations and
corresponding connecting service to five destinations in the
United States where many Hispanic customers prefer to travel.

From Los Angeles, Delta offers 281 weekly flights to 17 nonstop
destinations:

      -- long-haul domestic flights to:

         * Atlanta,
         * New York-JFK,
         * Boston,
         * Fort Lauderdale,
         * Orlando,
         * Tampa,
         * Hartford,
         * Columbus,
         * Ohio,
         * Cincinnati, and
         * Raleigh-Durham;

      -- international flights to:

         * Guadalajara,
         * Cancun, and
         * Ixtapa-Zihuatanejo; and

      -- Hawaii service to Honolulu and Maui.

With the expansion, Delta plans to offer 437 weekly flights to
35 destinations from Los Angeles by March 2007.

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.  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.


* GUATEMALA: Will Allow Direct Flights with Other Nations
---------------------------------------------------------
Guatemala will hold a meeting with Nicaragua, El Salvador and
Honduras on Oct. 4 to validate direct flights among their
jurisdictions without migratory procedures, Prensa Latina
reports.

According to Prensa Latina, the meeting will be in Tegucigalpa,
Honduras, and will also include a discussion on the widespread
violence in Central America.

The presidents will try to look for solutions on security
problems caused by gangs, drug trafficking and organized crime,
Prensa Latina states.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

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

                        *    *    *

Fitch also rated Guatemala's senior unsecured bonds:

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




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


* HONDURAS: Will Allow Direct Flights with Other Nations
--------------------------------------------------------
Honduras will hold a meeting with Nicaragua, El Salvador and
Guatemala on Oct. 4 to validate direct flights among their
jurisdictions without migratory procedures, Prensa Latina
reports.

According to Prensa Latina, the meeting will be in Tegucigalpa,
Honduras, and will also include a discussion on the widespread
violence in Central America.

The presidents will try to look for solutions on security
problems caused by gangs, drug trafficking and organized crime,
Prensa Latina states.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

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




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


DIGICEL LTD: Expands in the Pacific Through Telecom Samoa Buy
-------------------------------------------------------------
Digicel Pacific Ltd., the new entrant to the Pacific mobile
telecommunications industry, marks its commitment to the region
with the announcement of the acquisition of Telecom Samoa by
Digicel (Samoa) Limited.

Digicel Samoa with its local partner, CSL Mobile Limited, will
launch a GSM network in Oct. 2006 representing Digicel Pacific's
flagship operation and providing at least 80% population
coverage in Samoa.  Telecom Samoa's existing subscriber base of
approximately 30,000 subscribers will be offered an easy
transfer across from their dated TDMA network to the more
advanced GSM network.

With a population of 180,000 people and penetration currently at
15 percent, Digicel is committed to delivering real value,
unprecedented service and coverage, as well as innovation to
mobile customers in Samoa.  Such efforts can only bring
significant benefits to consumers, businesses and tourists,
while at the same time increasing the competitiveness of Samoa
and its attractiveness as a regional business centre.

Vanessa Slowey has been appointed as CEO of Digicel Pacific
Ltd., bringing to the position key management experience from
the roll out of Digicel operations in the Caribbean islands of
Anguilla, Barbados, Cayman Islands, Trinidad and Tobago and
Haiti.

Vanessa Slowey has been appointed as CEO of Digicel Pacific
Ltd., bringing to the position key management experience from
the roll out of Digicel operations in the Caribbean islands of
Anguilla, Barbados, Cayman Islands, Trinidad and Tobago and
Haiti.

Mobile phone services will be available in many areas of Samoa
where at present there is limited mobile phone access. It will
also bring mobile phones to many places that currently do not
have access to any telecommunications at all.  A full GSM
handset range will be available at launch, as well as an
exciting new suite of products and services. Full roaming
capabilities will be provided.

According to Denis O'Brien, Chairman of Digicel Pacific Ltd.,
"At Digicel we have a strong track record of entering new
markets where communications needs are underserved, and
completely transforming the market.  Digicel Ltd., our sister
company in the Caribbean, is currently in 20 markets and we are
excited about entering the Samoan market.

"This is an exciting new development in the growth of Digicel in
the Pacific region. Our aim is to place the entire Pan-Pacific
region at the cutting edge of wireless technology by delivering
superior technology and being passionate about providing the
best mobile phone service to customers," added Mr. O' Brien.

To date, Digicel has been awarded a GSM license from the
Government of Samoa and from the Government of Papua New Guinea.
In addition, it was granted a license in principal from the
government of Fiji in April 2006, as well as an experimental
license in the Solomon Islands. Digicel is a proud sponsor of
Fiji Rugby and title sponsor of the Digicel Fiji Sevens Team.

Digicel Pacific Ltd is headed by Ms. Vanessa Slowey, who prior
to joining Digicel Pacific, was instrumental in the roll out of
Digicel operations in the Caribbean islands of Anguilla,
Barbados, Cayman Islands, Trinidad & Tobago and Haiti.

Ms. Slowey said, "Our goal is to transform the market by
offering services that place the Pacific region at the cutting
edge of wireless technology, while challenging competitors in a
manner that drives positive business development. We
differentiate ourselves by delivering innovative technology and
being passionate about providing the best mobile phone service
to our customers."

Samoa is a fishing and agricultural country in the South Pacific
with a population of 180,000.

                  About Digicel Pacific Ltd.

Digicel Pacific is committed to delivering world-class mobile
telecommunications services to the South Pacific that will
transform the region by placing it at the cutting edge of
wireless technology, while challenging competitors in a manner
that drives positive business development.

The fast growing multinational mobile telecommunications company
has a reputation for competitive rates, unbeatable coverage and
superior customer care, a wide variety of products and services
and state-of-the-art handsets.

Digicel Caribbean, the sister company to Digicel Pacific Ltd.,
launched in 2001 and is now the largest GSM provider in the Pan
Caribbean region.

                    About Digicel Limited

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

                        *    *    *

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

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


DIGICEL LTD: Rise in Subscription to Bring US$1B Yearly Revenues
----------------------------------------------------------------
Information circulated to bondholders indicates that a huge
boost in Digicel Ltd.'s subscribers will bring about US$1
billion yearly revenues to the company when the 2006 financial
year ends in March 2007, the Irish Times reports.

Meanwhile, Digicel does not disclose information about its
financial performance to the public, the Irish Times says.

According to the same report, figures indicate that turnover
increased to US$204 million in the three months to June 2006
from US$141 million in the same period in 2005.  Earnings before
interest tax depreciation and amortization in the quarter,
excluding US$5 million in once-off costs in Curacao, was US$74
million, compared with US$62 million in the same period in 2005.

The report says that Digicel's quarterly operating profits
increased to US$46 million in 2006, from US$45 million in 2005.

The Irish Times underscores that Digicel's flat performance at
the operating level showed higher depreciation charges after
expensive launches of the Digicel service in Trinidad & Tobago
and in Haiti.  The openings there in April and May helped to
bring the number of clients to 2.6 million in June 2006, almost
one million higher than the 1.7 million recorded in the same
period in 2005.  Digicel's clients in Haiti reached 500,000.

Overall investments of Digicel amounted to US$1.3 billion.
Further expansion is expected in the coming weeks, the Irish
Times states.

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

                        *    *    *

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

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




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


BALLY TOTAL: Approves Indemnification Agreement with Directors
--------------------------------------------------------------
Bally Total Fitness Holding Corp. approved on Sept. 8, 2006, an
Indemnification Agreement with members of the Board of Directors
of the Company.

The company will enter into Indemnification Agreements with the
following directors:

   -- Charles J. Burdick,
   -- Barry M. Deutsch,
   -- Barry R. Elson,
   -- Don R. Kornstein,
   -- Eric Langshur,
   -- Steven S. Rogers and
   -- John W. Rogers, Jr.

Under the Indemnification Agreements, Bally Total will be
obligated to indemnify each director in certain circumstances
and upon certain conditions against expenses, judgments, fines
and settlement amounts incurred by such director.  The
Indemnification Agreements also establish procedures and other
agreements pertaining to such obligations of the company.  The
Board also authorized the company to enter into a similar
agreement with its Senior Vice President, Secretary and General
Counsel, Marc D. Bassewitz.

Bally Total Fitness Holding Corp. -- http://www.Ballyfitness.com
-- is a commercial operator of fitness centers, with over 400
facilities located in 29 states, Mexico, Canada, Korea, the
Caribbean, and China under the Bally Total Fitness, Bally Sports
Clubs and Sports Clubs of Canada brands.

At June 30, 2006, Bally Total's balance sheet showed a
US$1,410,293,000 stockholders' deficit.

                        *    *    *

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Total Fitness Holding Corp., including the 'CCC' corporate
credit rating, on CreditWatch with developing implications,
where they were placed on Dec. 2, 2005.


BALLY: Promotes Tia Willows to VP Fitness, Nutrition & Retail
-------------------------------------------------------------
Bally Total Fitness Holding Corp. promoted Tia Willows to vice
president, fitness, nutrition and retail services, from vice
president, operations and fitness services.  In her expanded
role, Ms. Willows will oversee all retail operations in addition
to her current responsibilities leading the company's personal
training, group exercise and weight loss initiatives.

By consolidating the four departments of retail, nutrition,
group exercise and personal training under one umbrella, Bally
expects to better integrate and align the initiatives of each
department, which will translate into an even stronger
connection between exercise and nutrition for members.

"Tia's more than 25 years of experience in the fitness industry,
in a variety of roles across the company, made her the clear
choice to lead the integration of all the products and services
that Bally Total Fitness has to offer," said Barry R. Elson,
Acting CEO, Bally Total Fitness. "This is a key operational role
that will drive increased revenues and improve the total member
experience."

Ms. Willows joined Bally Total Fitness in Sept. of 1980 and has
held a variety of different positions in the company since her
initial hire, including regional vice president, assistant vice
president, group fitness, vice president, fitness services and
most recently, vice president, operations and fitness services.

Bally Total Fitness Holding Corp. -- http://www.Ballyfitness.com
-- is a commercial operator of fitness centers, with over 400
facilities located in 29 states, Mexico, Canada, Korea, the
Caribbean, and China under the Bally Total Fitness, Bally Sports
Clubs and Sports Clubs of Canada brands.

At June 30, 2006, Bally Total's balance sheet showed a
US$1,410,293,000 stockholder's deficit.

                        *    *    *

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Total Fitness Holding Corp., including the 'CCC' corporate
credit rating, on CreditWatch with developing implications,
where they were placed on Dec. 2, 2005.


BALLY TOTAL: Shares Drop 17.5% After Posting Second Quarter Loss
----------------------------------------------------------------
Bally Total Fitness Holding Corp.'s shares fell 17.5% on Tuesday
after it reported a second-quarter 2006 loss due to weaker
membership sales and the possibility of defaulting on debt
payment, the Associated Press relates.

According to AP, Bally Total stock closed down 47 cents, at
US$2.22 on the New York Stock Exchange, dropping as much as
US$2.17.  The stock traded US$9.61 in May.  However, it has been
falling due to failure to sell the firm as well as questions
about its management.

AP states that Paul Toback, the former chairperson and chief
executive of Bally Total, resigned on Aug. 11.  He was replaced
by Don Kornstein -- who now acts as interim chairperson -- and
Barry Elson, who is the interim chief executive officer.  They
were two of the three board members who had successfully been
nominated by Pardus Capital Management LP, a shareholder of
Bally Total.

Mr. Kornstein told the press that Bally Total is focusing on
seeking capital after failing to complete a sale or merger on
favorable terms.

"The biggest issues facing Bally are its significant debt load
and the need to create financial flexibility for its
operations," AP says, citing Mr. Kornstein.

Bally disclosed that it has revised its second-quarter average
number of members to 3.598 million from the 3.581 million it
reported on Monday, AP states.

Bally Total Fitness Holding Corp. -- http://www.Ballyfitness.com
-- is a commercial operator of fitness centers, with over 400
facilities located in 29 states, Mexico, Canada, Korea, the
Caribbean, and China under the Bally Total Fitness, Bally Sports
Clubs and Sports Clubs of Canada brands.

At June 30, 2006, Bally Total's balance sheet showed a
US$1,410,293,000 stockholders' deficit.

                        *    *    *

As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Total Fitness Holding Corp., including the 'CCC' corporate
credit rating, on CreditWatch with developing implications,
where they were placed on Dec. 2, 2005.


BERRY PLASTICS: Discloses Pricing Terms on 10.75% Notes Offer
-------------------------------------------------------------
Berry Plastics Corp. disclosed the pricing terms of its tender
offer and consent solicitation for any and all of its
outstanding US$335 million aggregate principal amount of 10.75%
Senior Subordinated Notes due 2012.

Berry Plastics also disclosed that as of 5:00 p.m., New York
City time, on Sept. 5, 2006, the "Consent Payment Deadline", it
had received tenders and consents from holders of US$335 million
in aggregate principal amount of the Notes, representing 100% of
the total outstanding principal amount of the Notes and that it
has extended the expiration date for the tender offer from 12:00
midnight, New York City time, on Sept. 19, 2006, to 12:00
midnight on Sept. 20, 2006.

The total consideration for each US$1,000 principal amount of
Notes validly tendered is US$1,092.07, which includes a consent
payment of US$30 per US$1,000 principal amount of Notes.

Holders whose Notes are validly tendered after the Consent
Payment Deadline, but on or prior to 12:00 midnight, New York
City time, on Sept. 20, 2006 and accepted for purchase by the
Company will receive the tender offer consideration of
US$1,062.07 per US$1,000 principal amount of Notes tendered, but
will not receive the consent payment, and will receive accrued
and unpaid interest on the Notes up to, but not including, the
payment date for the Offer.

Copies of the complete terms and conditions of the tender offer
and consent solicitation may be obtained from:

           MacKenzie Partners, Inc.
           Tel: (212) 929-5500 (collect) or
                (800) 322-2885 (U.S. toll-free)

Deutsche Bank Securities Inc. is the exclusive dealer manager
and solicitation agent for the tender offer and consent
solicitation.  Additional information concerning the tender
offer and consent solicitation may be obtained by contacting
Deutsche Bank Securities Inc., at (212) 250-6008.

Based in Evansville, Indiana, Berry Plastics Corp.
-- http://www.berryplastics.com/-- is a leading manufacturer
and marketer of rigid plastic packaging products.  Berry
Plastics provides a wide range of rigid open top and rigid
closed top packaging as well as comprehensive packaging
solutions to over 12,000 customers, ranging from large
multinational Corp.s to small local businesses.  The company has
25 manufacturing facilities worldwide and more than 6,800
employees and 25 manufacturing facilities in the United States,
Mexico, Canada, Europe and China.

                        *     *     *

As reported in the Troubled Company Reporter on Aug. 7, 2006,
Moody's Investors Service confirmed the B3 rating on Berry
Plastics Corp.'s US$335 million 10.75% senior subordinated
notes, due July 15, 2012.

As reported in the Troubled Company Reporter on July 31, 2006,
Standard & Poor's Ratings Services revised its CreditWatch
implications on the 'B+' corporate credit rating on Berry
Plastics Corp. to negative from developing.


BURGER KING: Marks 15 Years in Mexico, Opening of 300th Store
-------------------------------------------------------------
Burger King Corp. (NYSE:BKC) announced that it has achieved two
major milestones in the Republic of Mexico -- its 15th
Anniversary of BURGER KING(R) restaurant operations and the
opening of its 300th Restaurant.  The 15th Anniversary is being
celebrated with a national ad campaign and in-restaurant
promotion.  The 300th BURGER KING(R) restaurant, located in
Guadalajara, was commemorated with a large in-restaurant
celebration that brought together those who have helped build
the brand in Mexico.

On hand to cut the ribbon at the 300th restaurant celebration
was Julio Ramirez, president, Latin America/Caribbean Region for
Burger King Corp., along with representatives from the company's
subsidiary in Mexico, Burger King Mexicana, S.A. de C.V.,
franchisee Fabian Gosselin of Operadora de Franquicias ALSEA,
S.A. de C.V., which is operating the restaurant, representatives
of the other franchise groups operating BURGER KING(R)
restaurants throughout Mexico, and local governmental
dignitaries.

"These milestones honor the hard work of the many BURGER KING(R)
employees, franchisees and key suppliers that have helped the
brand to succeed in Mexico," said Ramirez.  "We also owe a debt
of gratitude to our many 'superfans' in Mexico, those who have
stated loud and clear that they love the taste of BURGER KING(R)
flame-broiled burgers. We look forward to continuing to serve
customers new and old, and to continued growth in this dynamic
market."

The first BURGER KING(R) restaurant opened in Mexico in 1991.
Since then, BURGER KING(R) has expanded into 27 of the 32
Mexican states, with each restaurant opening representing an
average of 30 new jobs. Burger King Mexicana, S.A. de C.V., with
offices in Mexico City, operates more than 65 company-owned
restaurants, while the remainder of the restaurants are operated
by eight different franchise groups, all owned and led by
Mexican nationals.  The 300th Restaurant is owned and operated
by Operadora de Franquicias ALSEA, S.A. de C.V.  This was the
franchise group's 88th restaurant opening.

The Mexico market is part of Burger King Corp.'s Latin America
and Caribbean region, which includes more than 800 restaurants
in 25 countries and island territories.

                      About Burger King

The Burger King(R) system (NYSE: BKC) -- http://www.bk.com/--  
operates more than 11,100 restaurants in all 50 states and in
more than 65 countries and U.S. territories worldwide.
Approximately 90% of BURGER KING restaurants are owned and
operated by independent franchisees, many of them family-owned
operations that have been in business for decades.

Burger King Corp. operates restaurants in the Latin American,
Caribbean and Mexican Region.  The company's first international
restaurant opened in 1963 in Puerto Rico.  Since 1994, Burger
King has opened more than 300 restaurants in the Latin American
region, producing some of the strongest comparable store sales
growth for the brand around the world.  Burger King(R)
restaurants in Latin America serve approximately 1,600 customers
per day each, making them some of the highest volume restaurants
in the system.

                        *    *    *

As reported in the Troubled Company Reporter on June 23, 2006,
Fitch assigned initial ratings for Burger King Corp., the
world's second largest fast food hamburger restaurant chain.
Fitch assigned the Company its 'B+' Issuer Default Rating.
Fitch also rated the Company's US$150 million revolving credit
facility maturing June 2011; and US$967 million aggregate
remaining term loan A and B outstandings maturing June 2011 and
June 2012, respectively, at 'BB/RR2'.  Fitch said that the
Outlook on all Ratings is Positive.

                        *    *    *

On Sept. 8, 2006, Standard & Poor's Ratings Services raised the
corporate credit and senior secured debt ratings on Miami-based
quick-service operator Burger King Corp. to 'BB-' from 'B+'.


FORD MOTOR: UAW Agrees to Voluntary, System-Wide Buyouts
--------------------------------------------------------
The United Auto Workers has reached agreement on voluntary,
system-wide buyouts for more than 75,000 UAW-represented hourly
workers at Ford Motor Company.

"Once again, our members are stepping up to make hard choices
under difficult circumstances," said UAW President Ron
Gettelfinger.  "Now, it's Ford Motor Company's responsibility to
lead this company in a positive direction - which means using
the skills, experience and dedication to quality that UAW
members demonstrate every day in order to deliver quality
vehicles to customers."

A variety of buyout and incentive packages will be available,
depending on length of service and other eligibility factors.
All active UAW Ford hourly workers will be eligible for at least
one of the programs, which will be offered on a one-time basis
only due to current conditions in the industry, including Ford's
continued loss of market share.

The buyout packages include retirement incentives, early
retirement, pre-retirement leave, incentives for workers to
terminate their employment at Ford and special educational
opportunities.  UAW Ford workers currently assigned to
Automotive Components Holding facilities will have the
opportunity to flow back to any job openings created at Ford as
a result of the buyout packages.

No UAW Ford hourly worker will have his or her contractual
rights compromised as a result of these buyout packages, and no
worker will be involuntarily separated from Ford Motor Company,
the union disclosed.

A summary of the terms and conditions of the packages is
available for free at http://researcharchives.com/t/s?11ad

The buyouts are part of Ford's move to accelerate its "Way
Forward" turnaround plan initiated early this year.   The
Company is set to announce details of the accelerated Plan
today.

                      About Ford Motor

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

                        *    *    *

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

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

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

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


GRUPO MEXICO: Aims 800,000 Tons Annual Copper Output by 2009
------------------------------------------------------------
Deutsche Bank said in a report that Grupo Mexico SA de CV aims a
yearly copper production of 800,000 tons by the end of 2009,
once its Los Chancas and Tia Maria projects in Peru start
operating.

Business News Americas relates that Grupo Mexico produced about
124,260 tons of copper in the second quarter of 2006.

BNamericas underscores that Deutsche Bank also addressed in its
report on the 5th annual GEMS conference investors' questions on
rumors that Grupo Mexico plans to merge with US firm Phelps
Dodge through the former's subsidiary Southern Copper.

Deutsche Bank's report states that a merger with a copper and/or
diversified mining firm is part of Grupo Mexico's growth
strategy, along with small acquisitions of other pure-play
companies, according to BNamericas.

BNamericas notes that Deutsche Bank, however, stated that it
"came away feeling nothing was imminent in terms of the latter
two."

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

                        *    *    *

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

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


HIPOTECARIA SU: Moody's de Mexico Rates Class B Certs. at Ba2
-------------------------------------------------------------
Moody's de Mexico S.A. de C.V. has assigned a rating of Aaa.mx
and Baa1 to the Class A certificates BRHSCCB 06-5U, and a rating
of A2.mx and Ba2 to the Class B certificates BRHSCCB 06-6U of
Hipotecaria Su Casita, S.A. de C.V., Sociedad Financiera de
Objeto Limitado or HSC issued by Banco J.P. Morgan, S.A. acting
solely in its capacity as trustee.

Interest and principal to certificate holders will be primarily
payable with cash flow from low income housing mortgage loans
originated by HSC and assigned to the trust, which was
established under the laws of Mexico.

The ratings are based upon these factors:

   -- The credit quality of the pool, which is comprised of
      UDI-denominated, fixed-rate, first-lien mortgage loans
      secured by low-income houses located in Mexico.  The pool
      analyzed has a cut-off date July 31, 2006 and is comprised
      of 2,969 loans.  The weighted average current
      loan-to-value of the pool is 78.6% and the weighted
      average debt-to-income is 17.6%.  As of cut-off date, 95%
      of the pool balance was current and 5% was up to 30 days
      delinquent.

   -- An initial 11% credit enhancement for the Class A
      certificates in the form of 10% subordination represented
      by the Class B certificates and 1% initial
      overcollateralization.

   -- The target credit enhancement levels of the structure in
      which, through the amortization of the Class A
      certificates, Class A certificates will represent 87.2%
      of the outstanding collateral balance, Class B
      certificates will represent 10.0% of the outstanding
      collateral balance, and the Residual class will represent
      the remaining 2.8%.

   -- The first loss mortgage insurance from Genworth Mortgage
      Insurance Co. covering up to 25% (depending on the
      loan-to-value of each loan) of the outstanding balance
      plus unpaid interest of any loan covered that may default
      over the life of the transaction.

   -- The UDI (Unidades de Inversion) minimum wage salary swap
      provided by Sociedad Hipotecaria Federal (SHF) covering
      any mismatch between the minimum wage and the UDI.

  -- The strong mortgage origination standards and the
     capability of HSC (rated SQ2 by Moody's) in its role as a
     servicer.

  -- The coupon on Class A certificates of 5.0% and on Class B
     certificates of 6.7%.

  -- The well-established Mexican laws governing mortgage
     securitization.

The complete rating action is as follows:

   Issuer: Banco J.P. Morgan, S.A., Institucion de Banca
           Multiple, J.P. Morgan Grupo Financiero, acting
           solely as trustee.

   -- Class A Certificates BRHSCCB 06-5U rated Aaa.mx and Baa1.
   -- Class B Certificates BRHSCCB 06-6U rated A2.mx and Ba2.


KRISPY KREME: Sees US$110 Mil. of Revenues in Second Fiscal Qtr.
----------------------------------------------------------------
Krispy Kreme Doughnuts, Inc., expects, on a preliminary basis,
to report revenues of approximately US$110 million for the
second quarter of fiscal 2007, which ended July 30, 2006,
compared to revenues of approximately US$140 million for the
second quarter of fiscal 2006.

The decrease in revenues reflects a decline in the number of
Company stores as well as lower sales to franchisees by the
Company's Manufacturing and Distribution segment.

Systemwide sales fell approximately 15% in the second quarter of
fiscal 2007 compared to the second quarter of the prior year
primarily due to an approximately 17% decrease in the number of
factory stores to 303 (total stores, including satellites,
decreased approximately 6%).

Average weekly sales per factory store (which is computed by
dividing sales from all factory and satellite stores by the
number of factory stores in operation) increased approximately
8% and 5% in Company stores and systemwide, respectively,
compared to the second quarter of fiscal 2006.

Average weekly sales per store (which is computed by dividing
sales from all factory and satellite stores by the aggregate
number of all such stores in operation) increased approximately
7% for Company stores and decreased approximately 8% systemwide,
compared to the second quarter of fiscal 2006.

Systemwide average sales per store declined while Company
average sales per store rose principally because the growth in
satellite stores, which have lower average sales than factory
stores, largely has been concentrated in franchise stores and
not in Company stores.

"We continue to make progress in Krispy Kreme's turnaround,"
said Daryl Brewster, President and Chief Executive Officer.  "In
the past quarter we resolved several legal disputes with
franchisees.  We reduced our guarantees of franchisee
obligations from approximately US$22 million to approximately
US$14 million and successfully executed pricing to offset rising
input costs.  In the United States, we saw signs of stability in
company stores as evidenced by average weekly sales trends.  We
also advanced our international expansion plans with the signing
of franchisees in six new markets."

The Company noted that its financial results continue to be
adversely affected by the substantial costs associated with the
legal and regulatory matters previously disclosed by the
Company.  The Company expects to report a net loss for the
second quarter of fiscal 2007.

                     Financial Position

Krispy Kreme believes that cash flow from operations, combined
with other anticipated cash inflows, will be sufficient to meet
its liquidity needs.  As of July 30, 2006, the Company's cash
balance was approximately US$28 million and its indebtedness was
approximately US$121 million, compared to approximately US$16
million and US$123 million, respectively, at Jan. 29, 2006.  The
Jan. amounts exclude amounts relating to Glazed Investments, its
sole consolidated franchisee at the time.  As of
July 30, 2006, the Company had no consolidated franchisees.

                     About Krispy Kreme

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded
specialty retailer of premium quality doughnuts, including the
Company's signature Hot Original Glazed.  There are currently
approximately 320 Krispy Kreme stores and 80 satellites
operating systemwide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.

Headquartered in Winston-Salem, North Carolina, Freedom Rings
LLC is a majority-owned subsidiary and franchisee partner of
Krispy Kreme Doughnuts, Inc., in the Philadelphia region.
Freedom Rings operates six out of the approximately 360 Krispy
Kreme stores and 50 satellites located worldwide.  The Company
filed for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del.
Case No. 05-14268).  M. Blake Cleary, Esq., Margaret B.
Whiteman, Esq., and Matthew Barry Lunn, Esq., at Young Conaway
Stargatt & Taylor, LLP, represent the Debtor in its
restructuring efforts.  When the Debtor filed for protection
from its creditors, it estimated US$10 million to US$50 million
in assets and debts.

Headquartered in Oak Brook, Illinois, Glazed Investments, LLC,
is a 97%-owned unit of Krispy Kreme.  Glazed filed for chapter
11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No.
06-00932).  The bankruptcy filing will facilitate the sale of 12
Krispy Kreme stores, as well as the franchise development rights
for Colorado, Minnesota and Wisconsin, for approximately US$10
million to Westward Dough, the Krispy Kreme area developer for
Nevada, Utah, Idaho, Wyoming and Montana.  Daniel A. Zazove,
Esq., at Perkins Coie LLP represents Glazed in its restructuring
efforts.  When Glazed filed for protection from its creditors,
it estimated assets and debts between US$10 million to US$50
million.

KremeKo, Inc., Krispy Kreme's Canadian franchisee, is currently
restructuring under the Companies' Creditors Arrangement Act.
Pursuant to the Court's Initial Order, Ernst & Young Inc. was
appointed as Monitor in KremeKo's CCAA proceedings.  The Monitor
is attempting to sell the KremeKo business.


VALASSIS COMMS: ADVO Stockholders Approve Merger Agreement
----------------------------------------------------------
ADVO, Inc., disclosed that its stockholders voted overwhelmingly
at its special meeting to adopt the Agreement and Plan of
Merger, dated as of July 5, 2006, among ADVO, Valassis
Communications, Inc. (NYSE: VCI) and Michigan Acquisition Corp.,
a wholly owned subsidiary of Valassis.

                      About ADVO Inc.

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

                       About Valassis

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

                        *    *    *

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


VALASSIS: Responds to Notice on Start of Court Proceedings
----------------------------------------------------------
Valassis Communications, Inc., responded to an announcement by
Delaware's Court of Chancery setting a date for the start of
court proceedings, and instructions requiring ADVO, Inc., to
provide greater public access to information about the case.

"The decision was made to begin proceedings on Dec. 11, 2006.
ADVO's request for an earlier timeline for court proceedings was
based on its erroneous claim that Valassis' financing commitment
for the acquisition expires on Nov. 30, 2006.  In fact, the
financing commitment expires on March 31, 2007, which is the
termination date of the merger agreement.

The court also instructed ADVO to make public a less redacted
version of Valassis' complaint.  From the beginning we have
called on ADVO to waive the terms of the confidentiality
agreement related to the merger, thus allowing shareholders and
the public to review all of the grounds for the lawsuit.

When we have our day in court and the facts are all known, we
fully expect the merger agreement to be rescinded making the
vote by ADVO shareholders null and void."

                      About ADVO Inc.

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

                       About Valassis

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

                        *    *    *

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


VITRO SA: Shares Issuance to Bring in MXN550 Million of Capital
---------------------------------------------------------------
Vitro SA de CV expects to receive MXN550 million through the
issuance of new shares in a capital increase that will be used
to pay off debt, Reuters reports.

According to Reuters, Vitro's debt in June 2006 was US$1.297
billion.  For the last few years, the firm has been working to
decrease its debt, selling off several assets.

Reuters relates that Vitro said in a filing with the US
Securities and Exchange Commission on Wednesday that it will
propose during a shareholders meeting on Sept. 27, 2006, that
the new shares be "A" series stock.

New shares will initially be offered to current stockholders.
Any extra will then be offered to an unnamed financial
institution, Vitro told Reuters.

Headquartered in Nuevo Leon, Mexico, Vitro, S.A. de C.V. --
http://www.vitro.com/-- (NYSE: VTO; BMV: VITROA), through its
subsidiary companies, is one of the world's leading glass
producers.  Vitro is a major participant in three principal
businesses: flat glass, glass containers and glassware.  Its
subsidiaries serve multiple product markets, including
construction and automotive glass; food and beverage, wine,
liquor, cosmetics and pharmaceutical glass containers; glassware
for commercial, industrial and retail uses.  Vitro also produces
raw materials and equipment and capital goods for industrial
use, which are vertically integrated in the Glass Containers
business unit.

Founded in 1909, Monterrey, Mexico-based Vitro has joint
ventures with major world-class partners and industry leaders
that provide its subsidiaries with access to international
markets, distribution channels and state-of-the-art technology.
Vitro's subsidiaries have facilities and distribution centers in
eight countries, located in North, Central and South America,
and Europe, and export to more than 70 countries worldwide.

                        *    *    *

As reported in the Troubled Company Reporter on Mar. 27, 2006,
Standard & Poor's Ratings Services lowered its long-term local
and foreign currency corporate credit ratings assigned to glass
manufacturer Vitro S.A. de C.V. and its glass containers
subsidiary Vitro Envases Norteamerica S.A. de C.V. (Vena) to
'B-' from 'B'.

Standard & Poor's also lowered the long-term national scale
corporate credit rating assigned to Vitro to 'mxBB+' from
'mxBBB-' with negative outlook.

Standard & Poor's also lowered the rating assigned to Vitro's
notes due 2013 and Servicios y Operaciones Financieras Vitro
S.A. de C.V. notes due 2007 (which are guaranteed by Vitro) to
'CCC' from 'CCC+'.  Standard & Poor's also lowered the rating
assigned to Vena's notes due 2011 to 'B-' from 'B'.




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


DELTA AIR: Launching New Nonstop Service in Nicaragua on Dec. 16
----------------------------------------------------------------
Delta Air Lines will launch new nonstop service between the Los
Angeles, USA, and Managua, Nicaragua, on Dec. 16, 2006.  The
airline will also launch flights to Puerto Vallarta, Mexico.

Delta's new service to Managua will operate two-times weekly
while flights to the vacation hotspot of Puerto Vallarta will
operate daily.  Both routes are subject to foreign government
approvals.

Bob Cortelyou, the vice president of network planning at Delta,
said, "Delta's expanded service at Los Angeles will provide
convenient access to important cities in Mexico and Central
America for a growing customer base in key West Coast markets.
With our continued expansion at Los Angeles, next year Delta
will proudly offer customers service to nearly 30 Mexican and
Central American destinations -- more than twice as many as we
offered just two years ago."

To celebrate the new and expanded service, Delta is offering
customers special low introductory fares for travel between
Central America and the US until Sept. 26, 2006.

This new and expanded service from Los Angeles complements
Delta's previously announced plans to add 16 new routes from its
West Coast gateway at Los Angeles International Airport to
accommodate soaring demand in one of the country's largest
travel markets for Hispanic customers.  With the addition of
flights to Managua and Puerto Vallarta, Delta's Los Angeles
expansion will include new nonstop flights to 10 Mexican
destinations, three Central American destinations and
corresponding connecting service to five destinations in the
United States where many Hispanic customers prefer to travel.

From Los Angeles, Delta offers 281 weekly flights to 17 nonstop
destinations:

      -- long-haul domestic flights to:

         * Atlanta,
         * New York-JFK,
         * Boston,
         * Fort Lauderdale,
         * Orlando,
         * Tampa,
         * Hartford,
         * Columbus,
         * Ohio,
         * Cincinnati, and
         * Raleigh-Durham;

      -- international flights to:

         * Guadalajara,
         * Cancun, and
         * Ixtapa-Zihuatanejo; and

      -- Hawaii service to Honolulu and Maui.

With the expansion, Delta plans to offer 437 weekly flights to
35 destinations from Los Angeles by March 2007.

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.  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.


* NICARAGUA: Will Allow Direct Flights with Other Nations
---------------------------------------------------------
Nicaragua will hold a meeting with Guatemala, El Salvador and
Honduras on Oct. 4 to validate direct flights among their
jurisdictions without migratory procedures, Prensa Latina
reports.

According to Prensa Latina, the meeting will be in Tegucigalpa,
Honduras, and will also include a discussion on the widespread
violence in Central America.

The presidents will try to look for solutions on security
problems caused by gangs, drug trafficking and organized crime,
Prensa Latina states.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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




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


CHIQUITA BRANDS: Sitraibana Union to Hold Protest on Sept. 17
-------------------------------------------------------------
Members of the Sitraibana union from Bocas del Toro, Panama,
will hold on Sept. 17 demonstrations against Chiquita Brands
International Inc., Fresh Plaza reports.

The union is against Chiquita Brands' plan to serve a special
European client by replacing the traditional corrugated board
packaging with a reusable plastic packaging, the same report
says.

This would allegedly cause those people involved in the
packaging their jobs, Fresh Plaza relates.

Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 60 countries including Panama.  It also distributes and
markets fresh-cut fruit and other branded, value-added fruit
products.

On June 15, 2006, Standard & Poor's Ratings Services affirmed
its ratings on Cincinnati, Ohio-based Chiquita Brands
International Inc., including the 'B+' corporate credit rating.
S&P said the rating outlook is negative.




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


PRIDE INTERNATIONAL: S&P Affirms BB Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on contract driller Pride International Inc. and
removed the rating from CreditWatch with negative implications.
The outlook is stable.

As of June 30, 2006 Houston, Texas-based Pride had US$1.01
billion in adjusted debt.

The rating action follows Pride's successfully filing of its
financial statements.  The company delayed its filing after
announcing earlier in the year that it would conduct an internal
investigation related to improper payments to foreign government
officials in its Latin American division.

"Although we view the ongoing investigation with restrained
concern, we believe management is taking appropriate steps to
address this issue and remediate internal control deficiencies,"
said Standard & Poor's credit analyst Jeffrey Morrison.

Operationally, Pride continues to generate stronger cash flow
and has meaningfully reduced debt leverage over the past two
years.  As a result, the company's credit metrics have improved
to more favorable levels for the ratings.

The stable outlook on Pride reflects our expectation that recent
financial profile improvement will allow the company to perform
to a level consistent with expectations for the current ratings
through the cycle.

Pride is one of the world's largest drilling contractors and
provides onshore and offshore drilling and related services in
more than 30 countries, operating a diverse fleet of 278 rigs,
including two ultra-deepwater drillships, 12 semisubmersible
rigs, 28 jack-up rigs and 18 tender-assisted barge and platform
rigs, as well as 218 land rigs.  Pride also provides a variety
of oilfield services to customers in Argentina, Venezuela,
Bolivia and Peru.




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


DORAL FINANCIAL: Appoints Three New Executive Vice Presidents
-------------------------------------------------------------
Doral Financial Corp. (NYSE: DRL), a diversified financial
services company, reported the further strengthening of its
senior leadership team with three Executive Vice President
appointments:

    -- Enrique R. Ubarri as General Counsel,
    -- Lesbia Blanco-Diaz as Corporate Human Resources Director,
       and
    -- Olga Mayoral-Wilson as Corporate Communications Director.

Glen Wakeman, Chief Executive Officer, said, "In moving Doral
forward, we are extremely pleased that highly experienced
professionals have agreed to join Doral and head up our legal,
human resources and communications functions. Each brings
important skill sets consistent with the leadership team we are
putting in place.  They have strong ties to Puerto Rico and
bring proven specialized expertise.  We expect our shareholders,
customers and employees to benefit from their leadership."

Mr. Ubarri, who will be joining Doral Financial as General
Counsel in September, comes most recently from Triple-S
Management Corp., San Juan, where he has served as Vice
President and General Counsel since Sept. 2005.  For the
previous five years, he served as Senior Vice President,
Secretary of the Board of Directors, General Counsel and
Director of Compliance for Santander BanCorp, Banco Santander
Puerto Rico.  Mr. Ubarri has also served in government and
academic positions, including the Treasury Division of
Government Development Bank for Puerto Rico, San Juan, and
University of Sacred Heart, San Juan, School of Business
Administration, Associate Professor-Commercial Law.  Mr. Ubarri
received his B.A. from Boston University and his J.D. from
InterAmerican University of Puerto Rico School of Law, San Juan.
He also has L.L.M. degrees from Georgetown University Law Center
and Boston University School of Law, and an M.B.A. from Boston
College, Carroll Graduate School of Management.  He replaces
Fernando Rivera-Munich, who resigned effective Sept. 15, 2006.

Lesbia Blanco-Diaz brings to Doral more than 25 successful years
of banking and consumer product HR and Administration
experience, including strong expertise in talent development,
organizational design and effectiveness.  Most recently, she was
Director Human Resources for worldwide operations at Ethicon, a
Johnson & Johnson company.  Prior to that position, she was at
The Coca-Cola Company as Director HR for the Americas. Earlier
in her career she served as Vice President -- HR &
Administration Director for Bayamon Federal Savings Bank in
Puerto Rico and had been an Executive Vice President --
Administration for the Economic Development Bank for Puerto
Rico.  Lesbia holds a Bachelor in Business from the University
of PR and has served as Executive Committee President and State
Council Director of the PR chapter for the Society for Human
Resource Management in PR and in several committees at the US
national level.  Lesbia is the 1995 recipient of the Society for
HR Management -- PR Chapter Human Resources Professional of the
Year award.

Olga Mayoral-Wilson, who will join Doral in Sept., has served in
high level public relations and corporate communications
positions for nearly twenty five years, most recently at Banco
Popular de Puerto Rico as Senior Vice President and Manager,
Public Relations and Communications.  There she was responsible
for the management of the communications division, encompassing
communications with investors, local and national media,
community, trade and industry associations, priorities that she
will resume at Doral, especially as it relates to communicating
Doral's new business strategies.  Prior to joining Banco
Popular, she served in high-level account positions at public
relations firms in Puerto Rico and Washington, D.C.  Her public
service includes Federal Grant Project Director at the National
Puerto Rican Coalition and Specialist at the Organization of
American States.  She has a Bachelor of Arts from Catholic
University of Puerto Rico, Ponce, PR and a Master of Arts in
International Studies from Old Dominion University, Norfolk,
Virginia.  She is the 2005 recipient of El Vocero Distinguished
Business Women in Puerto Rico.

Doral Financial Corp. -- http://www.doralfinancial.com/
-- a financial holding company, is the largest residential
mortgage lender in Puerto Rico, and the parent company of Doral
Bank, a Puerto Rico based commercial bank, Doral Securities, a
Puerto Rico based investment banking and institutional brokerage
firm, Doral Insurance Agency, Inc. and Doral Bank FSB, a federal
savings bank based in New York City.

                        *    *    *

As reported in the Troubled Company Reporter on June 13, 2006,
Standard & Poor's Ratings Services lowered its long-term ratings
on Doral Financial Corp. (NYSE: DRL), including the company's
long-term counterparty rating, to 'B+' from 'BB-'.  At the same
time, Doral's outlook remains on CreditWatch with negative
implications.


MUSICLAND HOLDING: Taps Walker Truesdell as Wind Down Officer
-------------------------------------------------------------
Pursuant to Section 363 of the Bankruptcy Code, Musicland
Holding Corp. and its debtor-affiliates seek the U.S. Bankruptcy
Court for the Southern District of New York's authority to
employ Walker, Truesdell & Associates, Inc., as wind down
officer in their Chapter 11 cases, nunc pro tunc to
Aug. 21, 2006.

Jonathan P. Friedland, Esq., in Kirkland & Ellis LLP, in New
York, discloses that the Debtors intend to file a First Amended
Joint Plan of Liquidation based on negotiations with the
Official Committee of Unsecured Creditors and the Informal
Committee of Holders of Secured Trade Debt.

The Plan will provide for, among other things, the use of the
Debtors' cash, with the Informal Committee's consent, to:

   -- satisfy administrative, priority and certain secured
      claims; and

   -- fund the Debtors' winddown costs in accordance with an
      agreed upon budget pursuant to the Plan.

The Debtors anticipate that all of their employees other than
their chief financial officer and approximately 10 employees
will be terminated or will have left the Debtors' employ.  Thus,
the Debtors want to retain WTA as winddown officer in their
Chapter 11 cases.

WTA is well qualified to serve as the Debtors' winddown officer,
Mr. Friedland asserts.  WTA is a leading provider of winddown
services, has a wealth of experience in providing services in
Chapter 11 cases, and has an excellent reputation as a result of
the many years of quality services it has rendered on behalf of
debtors throughout the United States, Mr. Friedland says.

With the Debtors, WTA aims to:

   1. minimize the time and expenses associated with the wind
      down of the Debtors;

   2. resolve as many issues as possible within six months of
      its appointment;

   3. maximize distribution to Trade Vendors and make them as
      quickly as possible; and

   4. recover sufficient funds from preferences and other
      actions to enable a distribution to Unsecured Creditors,
      including the Trade Vendors' deficiency claims.

As winddown officer, WTA has, and will continue, to:

   (a) ensure the timely issuance and filing of 2006 W-2, 1099s
       and payroll tax returns;

   (b) help devise and execute an inexpensive and expeditious
       claims objection and resolution process;

   (c) prepare and file monthly operating reports and quarterly
       U.S. Trustee reports;

   (d) collect outstanding receivables, deposits, tenant
       allowances, tax refunds and other refunds;

   (e) effect the release of cash collateral held on Letters of
       Credit;

   (f) resolve and collect amounts due from Trans World
       Entertainment Corp. as a result of the sale of the
       Debtors' assets;

   (g) investigate, then resolve and settle all federal, state,
       local and sales tax claims, administrative claims, lien
       payments and transfer tax payments;

   (h) analyze and pursue avoidance actions;

   (i) maintain the Debtors' books and records, and finally
       arrange for their storage and destruction;

   (j) provide a Final Report and Accounting; and

   (k) perform all other actions necessary to wind-down the
       Debtors' business affairs.

The Debtors will pay WTA at these hourly rates:

           Principal, Hobie Truesdell     US$300
           Associates                     US$275
           Junior Associate               US$250
           Paraprofessionals              US$75

The Debtors will also reimburse WTA for its actual and necessary
out-of-pocket expenses.

WTA will record its time in 1/10th hour increments and will
provide copies of its monthly fee statements and staffing
reports to the counsel for the Creditors Committee, the Debtors'
counsel, the counsel to the Informal Committee and the U.S.
Trustee.

Hobart G. Truesdell, Esq., a senior member at WTA, assures the
Court that the firm does not hold nor represent any interest
adverse to the Debtors or their estates.

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 17; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


MUSICLAND HOLDING: Landlords Balk at Assume & Assign Leases Plea
----------------------------------------------------------------
More than 20 landlords oppose Musicland Holding Corp. and its
debtor-affiliates' request for the assumption and assignment of
certain leases to Record Town, Inc., or Record Town USA, LLC:

   -- Arden Fair Associates, L.P.,
   -- Aronov Realty Management,
   -- Beerman Realty Corp.,
   -- Concord Mall Properties Ltd.,
   -- Cookeville 1992 Joint Venture,
   -- Coventry Retail L.P.,
   -- Developers Diversified Realty Corp.,
   -- General Growth Management, Inc.,
   -- Glimcher Properties Limited Partnership,
   -- Gregory Greenfield & Associates, Ltd.,
   -- Jones Lang LaSalle Americas, Inc.,
   -- Kravco Simon Company,
   -- Lilac Mall Associates,
   -- New Plan Excel Realty Trust, Inc.,
   -- Plaza Las Am,ricas, Inc.,
   -- PREIT Services, Inc.,
   -- Steamtown Mall Partners, L.P.,
   -- The Macerich Company,
   -- The Mills Corp.,
   -- Union Station Venture II, LLC, and
   -- WRI/TEXLA, LLC.

The Landlords are the owners, or managing agents for the owners,
of various shopping centers and non-residential real estate
properties where the Debtors lease and operate their retail
stores.

The Landlords contend that the Debtors incorrectly identified
cure amounts for certain of the Leases.

According to the Landlords, the Debtors remain liable for:

   (a) all cure costs;

   (b) postpetition rent and other charges under the Leases
       which have become due;

   (c) certain amounts due and owing under the Leases, including
       but not limited to, year-end adjustments for common area
       maintenance, taxes and similar charges; and

   (d) any non-monetary defaults.

On Glimcher Properties' behalf, Ronald E. Gold, Esq., at Frost
Brown Todd LLC, in Cincinnati, Ohio, asserts that the Landlords
are entitled to reasonable attorneys' fees as part of the cure
payment.

Accordingly, the Landlords ask the U.S. Bankruptcy Court for the
Southern District of New York to compel the Debtors to pay the
amount currently due and owing under the Leases.

The Debtors must also cure all defaults under each of the Leases
and provide adequate assurance of the proposed assignee's future
performance under the Lease, the Landlords assert.

Subsequently, Beerman Realty and Coventry Retail withdrew their
objections.

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 17; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)




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


BRITISH WEST: Paying Debt & Voluntary Separation with Gov't Fund
----------------------------------------------------------------
"We have a huge amount of liabilities and we have a lot of
trusted and very frustrated suppliers as well.  We will have to
use a sizeable portion of the US$250 million capital injection
from the government (Trinidad & Tobago) to settle the existing
liabilities of BWIA (British West Indies Airlines) so when
Caribbean Airlines opens it will have a clean balance sheet,"
the Trinidad & Tobago reports, citing Peter Davies -- Caribbean
Airlines' chief executive officer.

As reported in the Troubled Company Reporter-Latin America on
Sept. 12, 2006, the government of Trinidad & Tobago approved a
substantial capital injection for the creation of Caribbean
Airlines, a new regional airline that would take the place of
BWIA.  The government owns 97.188% of BWIA, which will be closed
down after 66 years of service.

The Express relates that the government's capital injection
would be used to clear the debt of BWIA.

The management will have to secure a range of outstanding
matters primarily paying off the debt BWIA has incurred since
its decline, The Express says, citing Mr. Davies.

According to The Express, another significant portion of the
capital injection would be used for payment of the Voluntary
Separation Package for BWIA's over 1,700 workers.

Mr. Davies told The Express that BWIA company assets would be
transferred to Caribbean Airlines.  Leases and other contracts
will continue under the new entity's name.

BWIA will also be taking on an aggressive marketing, re-branding
and advertising campaign to promote the new brand in Trinidad &
Tobago, around the region and in other markets where the airline
will now operate, The Express notes, citing Mr. Davies.

The Express underscores that Mr. Davies said, "Several other
airlines are trying to 'muscle in' to the Caribbean routes so
there is tough competition out there, that is one reason that
BWIA had to be changed because it was not in a position to
compete with these giants.  Now we have to duck and dive and be
more proficient and create a niche market for ourselves and that
opportunity does exist."

The airline industry was a fragmented business and through that
comes a lot of partnerships, Mr. Davies told The Express.  He
believed that a small airline like Caribbean Airlines did have
to look for partnerships and alliances to survive in a much
bigger market.

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

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


BRITISH WEST: Jack Warner Blames Government for Shutdown
--------------------------------------------------------
"The government (Trinidad & Tobago) has made all the decisions
on BWIA (British West Indies Airlines).  They put their friends
in key positions to run the airline and this is what has come
today.  Whose fault was it?" Jack Warner -- the deputy political
leader of the United National Congress -- told the Trinidad &
Tobago Express regarding the closure of the airline.

As reported in the Troubled Company Reporter-Latin America on
Sept. 12, 2006, the government of Trinidad & Tobago approved a
substantial capital injection for the creation of Caribbean
Airlines, a new regional airline that would take the place of
BWIA.  The government owns 97.188% of BWIA, which will be closed
down after 66 years of service.

Mr. Warner told The Express that BWIA was a disaster because of
the government.  The problem with BWIA, he said, was bad
management.

"So if the PNM could not manage an airline between Trinidad and
Tobago, how the hell would they manage one in the Caribbean?
They believe by a change of name everything will be solved," The
Express relates, citing Mr. Warner.

According to The Express, Mr. Warner complained that the country
would have no airline for a week.  BWIA would be shut down on
Dec. 31, 2006, while Caribbean Airlines would start operating on
Jan. 7, 2007.

The Express notes that Mr. Warner criticized the way BWIA
employees were treated.  He said the workers had ensured BWIA
was one of the safest airlines in the world.

"Yet they say they will have a smooth transition.  You don't cut
short the lives of 1,800 employers overnight and expect them to
take it lying down.  The workers are unhappy, disgruntled and
they have been robbed," Mr. Warner told The Express.

"BWIA has been an important part of our history for 66 years and
they are closing the airline during the peak period, which is
from November to March.  That reminds me of Trinidad and Tobago
Television which they closed mere days before Carnival," The
Express states, citing Mr. Warner.

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

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




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


ABN AMRO: Moody's Reviews Ratings for Possible Upgrade
------------------------------------------------------
Moody's Investors Service placed these ratings of
ABN AMRO Bank N.V. Montevideo Branch for possible upgrade:

   -- Foreign currency deposit rating: Caa1; and
   -- National scale rating for foreign currency deposits:
      Ba2.uy.

Moody's has placed the long-term foreign currency deposit
ratings of certain rated Uruguayan banks on review for possible
upgrade.  The national scale ratings for foreign currency
deposits of these banks were also placed on review for possible
upgrade.

The rating actions follow the review for possible upgrade of
Uruguay's foreign currency country ceilings for bonds and notes
and of the foreign currency ceiling for bank deposits.  Moody's
also placed on review for possible upgrade Uruguay's foreign
currency sovereign bond rating.


BANKBOSTON NA: Moody's Places Ratings on Review & May Upgrade
-------------------------------------------------------------
Moody's Investors Service placed these ratings of BankBoston
N.A. (Uruguay) for possible upgrade:

   -- Foreign currency deposit rating: Caa1; and
   -- National scale rating for foreign currency deposits:
      Ba2.uy.

Moody's has placed the long-term foreign currency deposit
ratings of certain rated Uruguayan banks on review for possible
upgrade.  The national scale ratings for foreign currency
deposits of these banks were also placed on review for possible
upgrade.

The rating actions follow the review for possible upgrade of
Uruguay's foreign currency country ceilings for bonds and notes
and of the foreign currency ceiling for bank deposits.  Moody's
also placed on review for possible upgrade Uruguay's foreign
currency sovereign bond rating.


BANCO DE LA REPUBLICA: Moody's Reviews Ratings & May Upgrade
------------------------------------------------------------
Moody's Investors Service placed these ratings of Banco de la
Republica Oriental del Uruguay for possible upgrade:

   -- Foreign currency deposit rating: Caa1; and
   -- National scale rating for foreign currency deposits:
      Ba2.uy.

Moody's has placed the long-term foreign currency deposit
ratings of certain rated Uruguayan banks on review for possible
upgrade.  The national scale ratings for foreign currency
deposits of these banks were also placed on review for possible
upgrade.

The rating actions follow the review for possible upgrade of
Uruguay's foreign currency country ceilings for bonds and notes
and of the foreign currency ceiling for bank deposits.  Moody's
also placed on review for possible upgrade Uruguay's foreign
currency sovereign bond rating.


BANCO HIPOTECARIO: Moody's Reviews Ratings for Possible Upgrade
---------------------------------------------------------------
Moody's Investors Service placed these ratings of Banco
Hipotecario del Uruguay for possible upgrade:

   -- Foreign currency deposit rating: Caa1;

   -- National scale rating for foreign currency deposits:
      Ba2.uy; and

   -- National scale foreign currency debt rating: Baa2.uy.

Moody's has placed the long-term foreign currency deposit
ratings of certain rated Uruguayan banks on review for possible
upgrade.  The national scale ratings for foreign currency
deposits of these banks were also placed on review for possible
upgrade.

The rating actions follow the review for possible upgrade of
Uruguay's foreign currency country ceilings for bonds and notes
and of the foreign currency ceiling for bank deposits.  Moody's
also placed on review for possible upgrade Uruguay's foreign
currency sovereign bond rating.


BANCO SANTANDER: Moody's Reviews Ratings for Possible Upgrade
-------------------------------------------------------------
Moody's Investors Service placed these ratings of Banco
Santander S.A. (Uruguay) for possible upgrade:

   -- Foreign currency deposit rating: Caa1; and
   -- National scale rating for foreign currency deposits:
      Ba2.uy.

Moody's has placed the long-term foreign currency deposit
ratings of certain rated Uruguayan banks on review for possible
upgrade.  The national scale ratings for foreign currency
deposits of these banks were also placed on review for possible
upgrade.

The rating actions follow the review for possible upgrade of
Uruguay's foreign currency country ceilings for bonds and notes
and of the foreign currency ceiling for bank deposits.  Moody's
also placed on review for possible upgrade Uruguay's foreign
currency sovereign bond rating.


CREDIT URUGUAY: Moody's Places Ratings on Review & May Upgrade
--------------------------------------------------------------
Moody's Investors Service placed these ratings of Credit Uruguay
Banco S.A. for possible upgrade:

   -- Foreign currency deposit rating: Caa1; and
   -- National scale rating for foreign currency deposits:
      Ba2.uy.

Moody's has placed the long-term foreign currency deposit
ratings of certain rated Uruguayan banks on review for possible
upgrade.  The national scale ratings for foreign currency
deposits of these banks were also placed on review for possible
upgrade.

The rating actions follow the review for possible upgrade of
Uruguay's foreign currency country ceilings for bonds and notes
and of the foreign currency ceiling for bank deposits.  Moody's
also placed on review for possible upgrade Uruguay's foreign
currency sovereign bond rating.


LLOYDS TSB: Moody's Places Ratings on Review for Likely Upgrade
---------------------------------------------------------------
Moody's Investors Service placed these ratings of Lloyds TSB
Bank plc (Uruguay) for possible upgrade:

   -- Foreign currency deposit rating: Caa1; and
   -- National scale rating for foreign currency deposits:
      Ba2.uy.

Moody's has placed the long-term foreign currency deposit
ratings of certain rated Uruguayan banks on review for possible
upgrade.  The national scale ratings for foreign currency
deposits of these banks were also placed on review for possible
upgrade.

The rating actions follow the review for possible upgrade of
Uruguay's foreign currency country ceilings for bonds and notes
and of the foreign currency ceiling for bank deposits.  Moody's
also placed on review for possible upgrade Uruguay's foreign
currency sovereign bond rating.


PARMALAT: Court Adjourns Permanent Injunction Hearing to Oct. 17
----------------------------------------------------------------
The Honorable Robert D. Drain of the U.S. Bankruptcy Court for
the Southern District of New York adjourned the hearing to
consider entry of a permanent injunction in the Parmalat Foreign
Debtors' Section 304 cases until Oct. 17, 2006, at 10:00 a.m.

In the interim, Judge Drain extends the preliminary injunction
through and including Oct. 20, 2006.  Judge Drain enjoins and
restrains all persons subject to the jurisdiction of the U.S.
court from engaging in any action against the Foreign Debtors
without obtaining permission from the Bankruptcy Court.

The Civil and Criminal Court of Parma, in Italy, will continue
to have exclusive jurisdiction to hear and determine any suit,
action, claim or proceeding, other than an enforcement action
initiated by the U.S. Securities and Exchange Commission, and to
settle all disputes which may arise out of (i) the construction
or interpretations of the Foreign Debtors' restructuring plan
approved by the Italian Court, or (ii) any action taken or
omitted to be taken by any person or entity in connection with
the administration of the Italian Plan.

As reported in the Troubled Company Reporter on Sept. 6, 2006,
five creditors and parties-in-interest filed with the Court
their objections to Dr. Enrico Bondi's request for a permanent
injunction order in Parmalat's ancillary proceedings.

Dr. Bondi is the authorized foreign representative of Parmalat
Finanziaria S.p.A. and certain of its affiliates.

In his request, Dr. Bondi filed with the Court a proposed
permanent injunction order pursuant to Section 304 of the
Bankruptcy Code.  Dr. Bondi also submitted with the Court a
memorandum of law supporting his permanent injunction request.

A full-text copy of the proposed Permanent Injunction Order is
available for free at http://researcharchives.com/t/s?e22

Creditors BankBoston, N.A., FleetBoston Financial, Bank of
America Corp., Bank of America National Trust & Savings
Association, Banc of America Securities, LLC, and Bank of
America, N.A., told the Court that the proposed Permanent
Injunction Order cannot be approved because it would constitute
an inappropriate anti-foreign suit injunction.

BofA, et al. also argued that the Foreign Debtors' request for
extra-territorial application of the Permanent Injunction would
unduly limit the ability of domestic and foreign creditors to
pursue all appropriate remedies outside of the United States in
accordance with applicable foreign law.

The Pension Benefit Guaranty Corp., which provides
termination insurance for all of the Debtors' Pension Plans,
said the proposed Permanent Injunction Order contains illegal
discharges, releases, exculpations and injunctions.

The PBGC said it was willing to withdraw its objections if the
proposed Permanent Injunction Order clarifies that:

   -- no provisions of or proceeding within the Foreign Debtors'
      reorganization cases in Italy and the Section 304 cases
      before the U.S. Bankruptcy Court will in any way be
      construed as discharging, releasing, limiting or relieving
      the Foreign Debtors, or any other party from any liability
      with respect to the Pension Plans or any other defined
      benefit pension plan; and

   -- the PBGC and the Pension Plans will not be enjoined or
      precluded from enforcing liability resulting from any of
      the provisions of the Foreign Debtors' restructuring plan
      approved by the Italian court, or the entry of a Permanent
      Injunction Order.

Grant Thornton International does not want the Permanent
Injunction to apply to it in any manner in the conduct of:

   -- a securities fraud class action pending before the U.S.
      District Court for the Southern District of New York;

   -- three actions initiated by Dr. Bondi against banks and
      accounting firms; and

   -- actions commenced by the trustees of the U.S. Debtors and
      two liquidators of Parmalat SpA's Cayman Islands
      affiliates.

Grant Thornton is a defendant in those actions.

On behalf of Israel Discount Bank of New York, Bruce S. Nathan,
Esq., at Lowenstein Sandler PC, in New York, argues that in
seeking entry of a permanent injunction order, the Foreign
Debtors must demonstrate that claimholders in the Italian
proceedings are receiving "just treatment" and not experiencing
"prejudice and inconvenience" in the claims administration
process.  The Foreign Debtors cannot meet this burden as to IDB,
Mr. Nathan says.

IDB's claims arise from promissory notes totaling US$6,000,000
in principal plus interest, guaranteed by Parmalat S.p.A.

Hermes Focus Asset Management Europe, Ltd.; Cattolica
Partecipazioni, S.p.A.; Capital & Finance Asset Management S.A.;
Societe Monderne des Terrassements Parisiens; and Solarat -- the
lead plaintiffs in a securities class action -- want the
proposed Permanent Injunction Order modified to clarify that it
does not impact their rights to pursue claims against
Reorganized Parmalat.

In July 2006, the District Court granted the Hermes Focus, et
al. leave to file an amended complaint against Reorganized
Parmalat.

                       About Parmalat

Headquartered in Wallington, New Jersey, Parmalat USA Corp.
-- http://www.parmalatusa.com/-- generates more than 7 billion
euros in annual revenue.  The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents.  The Company filed for
chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No.
04-11139).  Gary Holtzer, Esq., and Marcia L. Goldstein, Esq.,
at Weil Gotshal & Manges LLP, represent the Debtors.  When the
U.S. Debtors filed for bankruptcy protection, they reported more
than US$200 million in assets and debts.  The U.S. Debtors
emerged from bankruptcy on April 13, 2005.  (Parmalat Bankruptcy
News, Issue No. 77; Bankruptcy Creditors' Service, Inc.,
215/945-7000, http://bankrupt.com/newsstand/)


PARMALAT: Agrees with Liquidators to Continue TRO to Dec. 15
------------------------------------------------------------
Gordon I. MacRae and James Cleaver, the Joint Official
Liquidators of Parmalat Capital Finance Limited, Dairy Holdings
Limited, and Food Holdings Limited, on the one hand, and
Parmalat Finanziaria S.p.A. and its affiliates and subsidiaries,
under the direction of Dr. Enrico Bondi, Extraordinary
Administrator of the Parmalat companies, on the other, agree to
consensually extend the Temporary Restraining Order in the
Finance Companies' Sec. 304 cases until Dec. 15, 2006.

Judge Drain will convene a hearing to consider the Liquidators'
application for preliminary injunction on Dec. 14, 2006, at
10:00 a.m.  Parmalat Finanziaria's time to answer the Petition
commencing the ancillary proceedings is extended until
Jan. 22, 2007.

In Jan. 2004, the Liquidators, on Dairy Holdings and Food
Holdings' behalf, commenced lawsuits against various Bank of
America entities, Grant Thornton entities, and Deloitte entities
before the U.S. District Court for the Southern District of New
York.  The Liquidators, on Parmalat Capital's behalf, brought
suit against BofA in North Carolina state court and against
Grant Thornton in Illinois state court.

The Food & Dairy Litigation, the PCF-BofA Litigation and the
PCF-Grant Thornton Litigation were subsequently consolidated for
pre-trial administration in In re Parmalat Securities Litigation
MDL Action, Master Docket 04-MD-1653, before Judge Lewis A.
Kaplan.

Judge Drain rules that the defendants in the Food & Dairy
Litigation, the PCF-BofA Litigation and the PCF-Grant Thornton
Litigation will be allowed to take discovery appropriate against
the Liquidators in connection with the pending lawsuits.  BofA
will be permitted to assert counterclaims and rights of set-off
and recoupment, as or may be authorized in any orders of Judge
Kaplan.

                       About Parmalat

Headquartered in Wallington, New Jersey, Parmalat USA Corp.
-- http://www.parmalatusa.com/-- generates more than 7 billion
euros in annual revenue.  The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents.  The Company filed for
chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No.
04-11139).  Gary Holtzer, Esq., and Marcia L. Goldstein, Esq.,
at Weil Gotshal & Manges LLP, represent the Debtors.  When the
U.S. Debtors filed for bankruptcy protection, they reported more
than US$200 million in assets and debts.  The U.S. Debtors
emerged from bankruptcy on April 13, 2005.  (Parmalat Bankruptcy
News, Issue No. 77; Bankruptcy Creditors' Service, Inc.,
215/945-7000, http://bankrupt.com/newsstand/)




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


PETROLEO BRASILEIRO: Increasing Fuel Alcohol Sales to Venezuela
---------------------------------------------------------------
Brazilian state-oil firm Petroleo Brasileiro SA will expand
sales of fuel alcohol to Venezuela up to 200 million liters this
year, Efe news agency reported, citing Supply Manager Paulo
Roberto Costa.

El Universal says that this fuel, a derivative of sugar cane, is
used as an additive for gasoline, which replaces more highly
polluting components such as tetraethyl lead and MTBE.

Petrobras has sold Venezuela three shipments in the spot market
totaling 100 million liters of fuel alcohol, El Universal
relates.

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.


PETROLEOS DE VENEZUELA: In Talks with Total, Eni on Compensation
----------------------------------------------------------------
Petroleos de Venezuela SA, according to energy minister Rafael
Ramirez, is in talks in "an atmosphere of cordiality" with Total
SA and Eni SpA after the two foreign companies refused to
convert operating contracts into joint ventures in April,
Bloomberg News reports.

Total and Eni wants to be compensated for their investments
after the government rescinded their operating contracts on
April 1.

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

                        *    *    *

Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.


* VENEZUELA: Congress Okays 50% Income Tax on Orinoco Projects
--------------------------------------------------------------
Venezuela's Congress ratified a 50% income tax -- from 34% -- on
four Orinoco heavy crude projects, Brian Ellsworth at Reuters
reports.  The move is part of the government's efforts to gain
majority control in the hydrocarbons sector.

"This bill forms part of Venezuela's oil sovereignty,"
legislator Rodrigo Cabezas was quoted by Reuters as saying.

Only this year, oil royalties were raised to 33.3% from a mere
16.6%.

Furthermore, the government also intends to take a majority
stake in four Orinoco ventures, Reuters says.  The four
multibillion-dollar projects produce around 620,000 barrels per
day of heavy crude that is upgraded to synthetic oil.

Companies operating the ventures are:

       -- Exxon Mobil,
       -- Chevron,
       -- ConocoPhillips,
       -- BP,
       -- France's Total SA and
       -- Norway's Statoil.

                        *    *    *

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


* VENEZUELA: Promises to Improve Power Services in Country
----------------------------------------------------------
The government of Venezuela has promised to enhance power
services in the nation, Business News Americas reports.

Several experts told BNamericas that power theft weakens
transmission and distribution network in Venezuela, especially
in rural regions.

Cadafe, Venezuela's state electricity company, said that it has
about 2.4 million legal clients and that about one million more
get power illegally, BNamericas says.

Venezuela's national assembly is making modifications in the
nation's electric service law to make it easier to fight power
theft, El Universal relates.

                        *    *    *

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


* VENEZUELA: Trade with United States Up 10.7% in July
------------------------------------------------------
Trading of goods from Venezuela to the United States increased
from US$2.52 billion in June to US2.79 in July this year, El
Universal reports, citing the US Commerce Department.

In Jan.-July this year, Venezuelan trade surplus with the US was
US$17.3 billion, while in the same period last year it amounted
to US$15.6 billion, Efe reported.

                        *    *    *

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


* ALIXPARTNERS LLP: S&P Assigns BB- Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating and stable outlook to Southfield, Mich.-based
business consulting firm AlixPartners LLP.

At the same time, Standard & Poor's assigned our 'BB-' bank loan
rating and recovery rating of '3' to AlixPartners' US$435
million senior secured credit facility, indicating an
expectation of meaningful (50%-80%) recovery of principal in the
event of a payment default.  The credit facility consists of a
US$50 million revolving credit facility due 2012 and a US$385
million term loan B due 2013.

Proceeds of the transaction will be used to finance the
acquisition of a majority interest in AlixPartners by Hellman &
Friedman LLC.  Pro forma for the transaction, total debt
outstanding was US$385 million as of July 31, 2006.

"The ratings reflect AlixPartners' dependence on highly mobile
senior consulting professionals, the competitive market for
consulting services, and some business cycle exposure,
especially as the company gains scale," said Standard & Poor's
credit analyst Andy Liu.

These factors are only partially offset by the company's
somewhat flexible cost structure, strong margins, and potential
for good discretionary cash flow.

AlixPartners specializes in corporate turnaround and
restructuring, financial advisory, performance improvement, case
management, and IT transformation.


* TowerGroup Says Financial Institutions See Growth in LatAm
------------------------------------------------------------
Although growing economic stability and strong international
demand have helped drive recent growth and trade surplus in
Latin America, many Latin American countries still face the
nagging challenges of translating economic momentum to
sustainable progress -- while reducing their dependency on
foreign capital.

New research from TowerGroup finds that, amid the ebb and flow
of commodities prices and local economic cycles, financial
services institutions in Latin America have been faring well.
Regional revenues for a selected set of diversified
international banks in Latin America increased just over 19%
annually between 2003 and 2005, with local competitors
performing even better.  A graphic illustrating the revenues for
these selected institutions can be seen and downloaded at:
http://www.towergroup.com/research/content/page.jsp?pageId=802

Access to credit, trade finance, microlending, stock exchanges,
and pension funds have provided channels of growth.  However,
sudden capital flight and speculation in shallow markets remain
a dark cloud to this silver lining -- causing many local crises.
Further economic progress in Latin America will hinge on
international investments, access to global capital markets, and
credit and structured project finance that are administered
purposefully and responsibly.

TowerGroup estimates that total IT spending among financial
institutions in Latin America will reach US$10.6 billion in
2006, yet will increase at a sluggish compound annual growth
rate of 1.9% through 2009.  As the region struggles to find its
economic future, the following technology imperatives among
financial institutions may enable and even spur further growth:

    * Risk management and compliance (e.g., anti-money
      laundering, Basel II);

    * Fraud management and information security;

    * Core systems modernization;

    * Self-directed delivery channels; and

    * Streamlined business process flows (e.g., business
      process management, e-commerce).


                         ***********


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 * * *