TCRLA_Public/060918.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, September 18, 2006, Vol. 7, Issue 185

                          Headlines

A R G E N T I N A

AEROSOL SINTESIS: Trustee Verifies Claims Until Nov. 15
BALLY TECH: Inks 13 TableView Installation Contracts
BANCO PATAGONIA: S&P Assigns B Counterparty Credit Rating
BOTICA DEL ARCON: Deadline for Verification of Claims Is Oct. 20
CLINICA PRIVADA: Claims Verification Deadline Is Set for Nov. 6

COPACABANA ADORNOS: Individual Reports Due in Court on Sept. 18
DIRECTVENT SA: Last Day for Verification of Claims Is on Nov. 3
PETROBRAS ENERGIA: Forming Consortium with Repsol YPF & Enarsa
TOPLIMP SRL: Trustee Delivers Individual Reports on Sept. 26
YPF SA: Parent Inks Exploration Deal with Petrobras & Enarsa

B A H A M A S

WINN-DIXIE: Wants Store No. 1409 Lease Rejected Starting Aug. 31
WINN-DIXIE: Wants to Reject 268 Contracts & Leases

B A R B A D O S

ANDREW CORP: Names Elcoteq as Supplier for Filter Products

B E R M U D A

FOSTER WHEELER: Secures US$350 Mil. Sr. Secured Credit Facility
GLOBAL CROSSING: Ranks Fourth in InformationWeek 500
QUANTA CAPITAL: Names Peter Johnson as President & CEO

B O L I V I A

INTERNATIONAL PAPER: Discloses Dutch Auction Preliminary Results
PETROLEO BRASILEIRO: Unhappy with Bolivia's New Oil & LPG Rules

B R A Z I L

AMRO REAL: Intesa Sells 3.86% Stake in Firm to ABN Amro
BANCO INDUSTRIAL: Raises US$150MM Through Three-Year Bond Issue
BANCO NACIONAL: To Finance Real Estate Sector
PETROLEO BRASILEIRO: Inks Exploration Deal with Repsol & Enarsa
PETROLEO BRASILEIRO: Inks Memorandum of Cooperation with ONGC

PETROLEO BRASILEIRO: Mulls Investments in Exxon's Okinawa Plant

* BRAZIL: Sixth Rio Oil & Gas Business Round Generated BRL100MM

C A Y M A N   I S L A N D S

AKEBONOBASHI HOLDING: Final Shareholders Meeting Is on Sept. 22
BANK OF INDIA: Net Income Up 22% for Quarter Ended June 30
COAST MULTI: Liquidator Presents Wind Up Accounts on Sept. 22
COAST SP: Shareholders Convene for a Final Meeting on Sept. 22
COAST STRUCTURED: Last Shareholders Meeting Is Set for Sept. 22

DAIWA INT'L: Calls Shareholders for a Final Meeting on Sept. 22
DAIWA PB: Invites shareholders for a Final Meeting on Sept. 22
GLEN AGAR: Final Shareholders Meeting Is Scheduled for Sept. 22
HAMMERMAN OPPORTUNITY: Last Shareholders Meeting Is on Sept. 22
HARBOURVIEW CLO: Sets Final Shareholders Meeting on Sept. 22

J.F. COMPANY: Schedules Final Shareholders Meeting on Sept. 22
KYOKUTO ASSET: Final Shareholders Meeting Is Set for Sept. 22
MERRILL LYNCH (ADVANTAGE): Last Shareholders Meeting Is Sept. 22
PERCIPIENCE LTD: Schedules Last Shareholders Meeting on Sept. 22
SAN INVESTMENT: Sets Final Shareholders Meeting on Sept. 22

C O L O M B I A

BANCOLOMBIA: Leasing Colombia Sells COP180 Billion in Bonds
ECOPETROL: Will Bid for Brazilian Exploration Blocks in November

C O S T A   R I C A

* COSTA RICA: Aresep Accepts Plans to Form Telecoms Regulator
* COSTA RICA: Vice President Wants to Protect Gambling Sector

C U B A

* CUBA: Expects Economy to Grow Over 12% in 2006

D O M I N I C A N   R E P U B L I C

FALCONBRIDGE: Redeeming Outstanding Preferred Shares on Nov. 1

E C U A D O R

* ECUADOR: IDB Closes Deal with Banco de Guayaquil Under TFFP

H O N D U R A S

* HONDURAS: Banking Sector Posts HNL1.01B First Half Net Profits

J A M A I C A

AIR JAMAICA: IMF Suggests Airline's Shutdown
AIR JAMAICA: Union Calls for changes to Board of Directors
DYOLL INSURANCE: Ministry Not Fulfilling Interim Payment
SUGAR COMPANY: IMF Recommends Shutting Down of Company
SUGAR COMPANY: Says IMF's Suggestion of Closure Lacks Substance

* JAMAICA: Country Is Recovering Well According to IMF Report

M E X I C O

BANCO MERCANTIL: Merges with Banco del Centro
EMPRESAS ICA: To Implement Changes on Corporate Governance
FORD MOTOR: Eyes US$5B Cost Cuts in Accelerated Turnaround Plan
FORD MOTOR: To Use BUNKSPEED Software in Product Design & Dev't
GRUPO MEXICO: Three Firms Eye Power Generation Project

MERIDIAN AUTOMOTIVE: Posts US$22.2 Million Net Loss in July 2006
PORTRAIT CORP: U.S. Trustee Names Four-Member Creditors' Panel
SATELITES MEXICANOS: Judge Drain Okays Tax Obligations Payments
SATELITES MEXICANOS: Gets Court Final Nod to Use Cash Collateral
TV AZTECA: Will Settle Fraud Charges with US Securities Agency

* MUNICIPALITY OF NOGALES: Moody's Puts Ba2 Global Curr. Rating

P A N A M A

* PANAMA: Banking Sector Posts US$404MM First Half Net Profits

P A R A G U A Y

* PARAGUAY: State Firm Will Offer GSM Service Soon

P E R U

UNIVERSAL COMM: Unit Lists Solar Chargers for Sale on Amazon.com

* PERU: Broadens Pension Fund Managers' Investment Options

P U E R T O   R I C O

DORAL FINANCIAL: Two Directors Decline Re-Election to Board
KMART: Wants Global Property to Produce Docs on US$20-Mil. Claim
KMART CORP: Hawkins Wants Injunction Modified to Pursue Action
MUSICLAND HOLDING: Shwarzstein Wants Stay Lifted to Pursue Suit
MUSICLAND HOLDING: Inks Terminating Card Pact with Wash. Mutual

RENT-A-CENTER: Hart-Scott-Rodino Waiting Period Expires

T R I N I D A D   &   T O B A G O

AIR CARIBBEAN: Aviation Capital Completes Purchase of Assets
BRITISH WEST: Union Makes Proposals for Voluntary Separation
DIRECTV INC: Inks Multidwelling Unit Service Pact with Verizon

U R U G U A Y

PARMALAT: Farmland & Carmen Green Want Pact on PI Suit Approved
PARMALAT GROUP: Share Capital Increases to EUR1.6 Bil. in August
PARMALAT USA: SpA Sells Stake in Italcheese & Australian Firms

* URUGUAY: Private Banks Post UYU939 Mil. Profit in August 2006
* URUGUAY: State Firm to Buy Power from Local Companies

V E N E Z U E L A

CITGO PETROLEUM: Refining Unit in Illinois Closed for Repairs

* VENEZUELA: Enters Into Oil & Fishery Agreements with Suriname
* VENEZUELA: Inks Energy Agreements with Iran
* VENEZUELA: Proposes Closer Monitoring on Energy Market
* VENEZUELA: Urges OPEC Members to Defend Oil Sovereignty

* ALIXPARTNERS LLP: Moody's Rates US$435MM Credit Facility at B1
* BOOK REVIEW: Panic on Wall Street


                          - - - - -


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


AEROSOL SINTESIS: Trustee Verifies Claims Until Nov. 15
-------------------------------------------------------
Oscar Epstein, the court-appointed trustee for Aerosol Sintesis
S.A.'s insolvency case, verifies creditors' proofs of claim
until Nov. 15, 2006.

Under the Argentine bankruptcy law, Mr. Epstein is required to
present the validated claims in court as individual reports.
Court No. 25 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 Aerosol Sintesis and
its creditors.

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

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

On Aug. 10, 2007, Aerosol Sintesis' creditors will vote on a
settlement plan that the company will lay on the table.

Clerk No. 49 assists the court in the proceeding.

The debtor can be reached at:

         Aerosol Sintesis S.A.
         Helguera 3612
         Buenos Aires, Argentina

The trustee can be reached at:

         Oscar Epstein
         Viamonte 1620
         Buenos Aires, Argentina


BALLY TECH: Inks 13 TableView Installation Contracts
----------------------------------------------------
Bally Technologies, Inc., disclosed that its Bally Table
Management Systems or TMS division has signed 13 separate
contracts to install TableView, a touch-screen table management
and player-tracking system designed to increase casino pit
automation.

These casinos signed Bally TMS contracts to install TableView
technology in thier casino floors:

   -- Sands Casino Hotel in Atlantic City;

   -- Radisson Ambassador Plaza Hotel & Casino in San Juan,
      Puerto Rico;

   -- Hollywood Casino in Bay St. Louis;

   -- Hollywood Casino in Tunica;

   -- Boomtown Biloxi Casino in Mississippi;

   -- Greektown Casino in Detroit;

   -- Flamingo Laughlin;

   -- Arizona Charlie's East and West locations in Las Vegas;

   -- Eldorado Resort Casino;

   -- Sam's Town Shreveport in Louisiana;

   -- Stratosphere Las Vegas Hotel and Casino; and

   -- French Lick Resort & Casino in Indiana.

Most of the 13 locations have already gone live or are scheduled
to go live on or before the end of this calendar year.

Bally has been successful in developing a broadened TMS
portfolio to provide technology for both base-level and enhanced
pit automation.  TableView is designed to allow easy touch-
screen access to enter real-time player ratings, requests for
chip fills and credits, enter table closers as well as issue
customer comps and markers.

"We are excited to see the product acceptance and performance
that TableView has gained over the past year in particular,"
said Tom Doyle, Vice President of Systems Product Management for
Bally.  "This system was designed with the pit boss in mind.
TableView eliminates the hassle and delays of entering and
updating ratings in the casino management system, virtually
creating a paperless process on the floor. TableView carries the
analysis and player-tracking technology that is needed to
effectively manage tables while creating an improved automated
environment."

Recognized as the industry systems leader with more than 345,000
machines and 625 casino, bingo, Class II, central determination
and lottery locations worldwide -- including more than 165
locations currently running Bally eTICKET on more than 178,000
slot machines -- the Bally Technologies systems product line
offers slot machine cash monitoring, table management, cashless,
accounting, security, maintenance, marketing, promotional and
bonusing capabilities, enabling operators to accurately analyze
performance and accountability while providing an enhanced level
of customer service.

Headquartered in Las Vegas, Bally Technologies, Inc., --
http://www.BallyTech.com/-- designs, manufactures, operates and
distributes advanced gaming devices, systems and technology
solutions worldwide.  Bally's product line includes reel-
spinning slot machines, video slots, wide-area progressives and
Class II, lottery and central determination games and platforms.
Bally also offers an array of casino management, slot
accounting, bonusing, cashless and table management solutions.
The company also owns and operates Rainbow Casino in Vicksburg,
Miss.  Bally Technologies' South American operations is located
in Argentina.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 18, 2006, Standard & Poor's Ratings Services held its
ratings on Bally Technologies Inc., including the 'B' corporate
credit rating, on CreditWatch with negative implications.


BANCO PATAGONIA: S&P Assigns B Counterparty Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' counterparty
credit rating to Banco Patagonia S.A.  The outlook is stable.

"The rating on Banco Patagonia reflects its still-low relative
participation in the Argentine financial system, its high direct
exposure to the Argentine government's credit quality, and the
persistence of some mismatches that expose the bank's results to
macroeconomic variables," explained Standard & Poor's credit
analyst Federico Rey-Marino.  "These weaknesses are mitigated by
Banco Patagonia's strong growth in its private sector loan
portfolio, asset quality improvements that have been made, and
good profitability compared with other entities in the Argentine
financial system," he added.

In addition, the rating reflects Banco Patagonia's sound
liquidity position, high level of capital, and continued
strengthening of its balance sheet, as evidenced by the gradual
reduction of its net exposure in the public sector and the
valuation of the total public assets at market prices.

Banco Patagonia was one of the banks that benefited the most
from acquisition opportunities during and after the 2002
Argentine financial crisis.  The bank successfully merged with
Banco Sudameris Argentina S.A. in 2003 and with Lloyds TSB Bank
PLC's Argentine branch in 2004, and has adequately integrated
them into its operations. Since then, the bank has been growing
organically, consistently increasing its private sector loan
portfolio, improving asset quality, and posting above average
profitability.  The bank also repaid in full the assistance
provided by the Central Bank early 2005, and has been reducing
its exposure to the sovereign, without affecting its liquidity
position.

The stable outlook reflects Standard & Poor's expectation that
the bank will continue its loan portfolio growth with healthy
asset quality indicators.  It also reflects its further
reduction in exposure to sovereigns, adequate profitability
levels, sound liquidity position, and a high equity base.  The
rating is constrained by the close correlation between the
sovereign and financial system credit quality.


BOTICA DEL ARCON: Deadline for Verification of Claims Is Oct. 20
----------------------------------------------------------------
Roberto Oscar Arango, the court-appointed trustee for Botica del
Arcon S.R.L.'s bankruptcy case, verifies creditors' proofs of
claim until Oct. 20, 2006.

Mr. Arango will present the validated claims in court as
individual reports on Dec. 5, 2006.  Court No. 7 in Mar del
Plata, Buenos Aires will determine if the verified claims are
admissible, taking into account the trustee's opinion and the
objections and challenges raised by Botica del Arcon and its
creditors.

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

A general report that contains an audit of Botica del Arcon's
accounting and banking records will follow on Feb. 20, 2007.

Botica del Arcon's creditors did not approve the settlement plan
that the company presented on June 24, 2004, prompting Court
No. 7 to convert the company's reorganization proceeding into a
bankruptcy case.

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

The debtor can be reached at:

         Botica del Arcon S.R.L.
         San Lorenzo 1032 Mar del Plata
         Buenos Aires, Argentina

The trustee can be reached at:

         Roberto Oscar Arango
         Rawson 2272 Mar del Plata
         Buenos Aires, Argentina


CLINICA PRIVADA: Claims Verification Deadline Is Set for Nov. 6
---------------------------------------------------------------
Estudio de Contadores Martinetti, Risso, Sala Spinelli, the
court-appointed trustee for Clinica Privada Sanatorio Perpetuo
Socorro S.A.'s reorganization proceeding, verifies creditors'
proofs of claim until Nov. 6, 2006.

The trustee will present the validated claims in court as
individual reports on Dec. 20, 2006.  A court in Quilmes, Buenos
Aires, will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Clinica Privada and its creditors.

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

A general report that contains an audit of Clinica Privada's
accounting and banking records will follow on March 6, 2007.

On Aug. 24, 2007, Clinica Privada's creditors will vote on a
settlement plan that the company will lay on the table.

The debtor can be reached at:

         Clinica Privada Sanatorio Perpetuo Socorro S.A.
         Colombia 3057/3099 Quilmes
         Buenos Aires, Argentina

The trustee can be reached at:

         Estudio de Contadores Martinetti, Risso, Sala Spinelli
         Videla 159 Quilmes
         Buenos Aires, Argentina


COPACABANA ADORNOS: Individual Reports Due in Court on Sept. 18
---------------------------------------------------------------
Marcelo Fabian Francisco, the court-appointed trustee for
Copacabana Adornos 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 until July 21, 2006.  Court No. 17 in Buenos Aires will
determine if the verified claims are admissible, taking into
account Mr. Francisco's opinion and the objections and
challenges raised by Copacabana Adornos and its creditors.

A general report that contains an audit of Copacabana Adornos'
accounting and banking records will follow on Oct. 31, 2006.

As reported in the Troubled Company Reporter-Latin America on
June 13, 2006, Copacabana Adornos was forced into bankruptcy at
the request of Pablo Gomez, whom it owes US$33,345.40.

Clerk No. 33 assists the court in this case.

The debtor can be reached at:

         Copacabana Adornos S.R.L.
         Jean Jaures 56
         Buenos Aires, Argentina

The trustee can be reached at:

         Marcelo Fabian Francisco
         Uruguay 328
         Buenos Aires, Argentina


DIRECTVENT SA: Last Day for Verification of Claims Is on Nov. 3
---------------------------------------------------------------
Daniel Altman, the court-appointed trustee for Directvent S.A.'s
bankruptcy case, verifies creditors' proofs of claim until
Nov. 3, 2006.

Under the Argentine bankruptcy law, Mr. Altman 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 Directvent and its
creditors.

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

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

Directvent was forced into bankruptcy at the request of Mariela
Olcese, whom it owes US$4,246.75.

Clerk No. 8 assists the court in the proceeding.

The debtor can be reached at:

         Directvent S.A.
         Avenida Las Heras 2048
         Buenos Aires, Argentina

The trustee can be reached at:

         Daniel Altman
         Parana 774
         Buenos Aires, Argentina


PETROBRAS ENERGIA: Forming Consortium with Repsol YPF & Enarsa
--------------------------------------------------------------
Petrobras Energia, Petroleo Brasileiro SA's Argentine
subsidiary, signed an agreement with Enarsa and Repsol YPF to
form a consortium aimed at exploring, developing, producing, and
marketing oil and natural gas in the Argentinean continental
platform's deepwaters.  Petrobras Energia will have a 35%
participation and will operate the consortium.  Meanwhile,
Enarsa and YPF will have 35% and 30% participations,
respectively.

The consortium's exploration area, located about 250 kilometers
away from the city of Mar del Plata, in the Buenos Aires
province, has depths ranging 200-3,000 meters.

Petrobras Energia and YPF will be in charge, at the proportion
of their participations, for investing the funds necessary to
finance the investment corresponding to Enarsa participation in
this stage.  In the event of a commercial discovery, Enarsa will
reimburse Petrobras EnergĦa and YPF for the investments they
made relative to its participation.

This project will benefit from Petrobras' acknowledged
leadership and technological qualifications in deep and
ultradeep water exploration and production, both in Brazil and
abroad.

Last January, Petrobras Energia had already signed an agreement
with Enarsa, YPF, and Petrouruguay to explore, develop, and
market oil and natural gas from the ENARSA 1 (E1) and CCM2
offshore areas, also in the Argentinean sea.

                   About Petrobras Energia

Petrobras Energia Participaciones S.A., through its subsidiary,
explores, produces, and refines oil and gas, as well as
generates, transmits, and distributes electricity. It also
offers petrochemicals, as well as markets and transports
hydrocarbons.  The company conducts oil and gas exploration and
production operations in Argentina, Venezuela, Peru, Ecuador,
and Bolivia

                        *    *    *

As reported on Feb. 6, 2006, Standard & Poor's Ratings Services
said that its ratings on Petrobras Energia S.A. (PESA; B/Watch
Neg/--) will not be affected by the company's announced
accounting adjustment that will be reflected in the financial
statements as of Dec. 31, 2005.  Net worth will decrease by
approximately US$60 million as a result of a provision of US$140
million against its Venezuelan assets to adjust their expected
recovery value, and the reversal of certain allowances for tax
credits for about US$83 million.


TOPLIMP SRL: Trustee Delivers Individual Reports on Sept. 26
------------------------------------------------------------
Alberto Javier Samsolo, the court-appointed trustee for Toplimp
S.R.L.'s bankruptcy case, will submit individual reports in
court on Sept. 26, 2006.  These reports are based on creditors'
proofs of claim that were verified until Aug. 14, 2006.

Court No. 11 in Buenos Aires will determine if the verified
claims are admissible, taking into account Mr. Francisco's
opinion and the objections and challenges raised by Toplimp and
its creditors.

A general report that contains an audit of Toplimp's accounting
and banking records will follow on Nov. 8, 2006.

As reported in the Troubled Company Reporter-Latin America on
June 21, 2006, Toplimp was forced into bankruptcy at the behest
of Juan Monzon, whom it owes US$6,892.50.

Clerk No. 22 assists the court on the case.

The debtor can be reached at:

         Toplimp S.R.L.
         Teniente General Juan Domingo Peron 2581
         Buenos Aires, Argentina

The trustee can be reached at:

         Alberto Samsolo
         Paraguay 1225
         Buenos Aires, Argentina


YPF SA: Parent Inks Exploration Deal with Petrobras & Enarsa
------------------------------------------------------------
The government of Argentina said in a statement that Spain's
Repsol YPF -- the parent firm of YPF SA -- has entered into an
agreement with Brazil's Petroleo Brasileiro SA aka Petrobras
Argentine state oil Enarsa and Spain's Repsol YPF for a US$50
million hydrocarbons exploration offshore in Argentina.

Business News Americas notes this offshore exploration agreement
is the fourth the companies have signed.

BNamericas relates that the consortium will explore two high-
risk offshore blocks:

       -- 250 kilometers off the coast of Mar del Plata; and
       -- 200 kilometers offshore southern Rio Negro and
          northern Chubut provinces in the E-1 area.

According to the report, exploration works include:

       -- aerogravimetry and magnetometry studies;

       -- acquisition of:

          * 2,000 meters of 2D seismic, and
          * 500 kilomenters of 3D seismic data; and

       -- drilling of an exploratory well if results are
          positive.

BNamericas notes that Petrobras and Enarsa will each hold 35%
stakes in the consortium.  Enarsa will act as the operator.
Repsol YPF will have 30%.  The companies will have five years
for the exploration works.

Government news service Telam underscores that about 85% of
Petrobras' global reserves are offshore, which executives
highlighted as key to the success of the project.

Telam says that the project could require drilling as deep as
1,500 meters.

                        *    *    *

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

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

Moody's affirmed these five ratings:

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

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

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

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

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




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


WINN-DIXIE: Wants Store No. 1409 Lease Rejected Starting Aug. 31
----------------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the Middle District
of Florida to reject the lease for Store No. 1409 effective
Aug. 31, 2006.

Winn-Dixie Montgomery, Inc., leases Store No. 1409 located in
New Orleans, Louisiana, from Basin Street #2 Limited Partnership
under a lease dated Feb. 1, 2001.  Pursuant to the Lease,
Winn-Dixie pays Basin Street US$955,000 in rent each year.

As a result of significant damage to Store No. 1409 and the
surrounding market area caused by Hurricane Katrina, the Debtors
are unable to operate a grocery store at the location, Cynthia
C. Jackson, Esq., at Smith Hulsey & Busey, in Jacksonville,
Florida, relates.

To save US$955,000 a year, the Debtors seek the Court's
authority to reject the lease for Store No. 1409 effective
Aug. 31, 2006.  If Basin Street asserts rejection damages, the
Debtors ask the Court to establish the rejection damages
deadline to be 30 days after Court approval of their request.

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


WINN-DIXIE: Wants to Reject 268 Contracts & Leases
--------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates seek approval
from the U.S. Bankruptcy Court for the Middle District of
Florida to reject 106 executory contracts and unexpired leases
effective as of Sept. 21, 2006.

The contracts are for goods and services that are no longer
necessary to the Debtors' businesses, according to Cynthia C.
Jackson, Esq., at Smith Hulsey & Busey, in Jacksonville,
Florida.  A list of the contracts is available free of charge at
http://ResearchArchives.com/t/s?118d

In addition, the Debtors are parties to 162 prepetition
arrangements with various counterparties for goods or services
that are also unnecessary to the Debtors' ongoing operations and
businesses.  The Debtors have not been able to locate any
written contracts or leases documenting the prepetition
arrangements, Ms. Jackson relates.  A list of these items is
available for free at http://ResearchArchives.com/t/s?118c

To the extent they constitute executory contracts and expired
leases covered under Section 365 of the Bankruptcy Code, the
Debtors seek the Court's consent to reject the contracts
effective as of Sept. 21, 2006.

The Debtors believe that several of the 162 listed items may, in
fact, be non-executory or expired, but have sought to reject
them out of an abundance of caution and for the sake of
obtaining certainty with respect to the rejection damage claims
that may be brought against them.  They reserve their right to
challenge the executory or unexpired nature of any of the items.

The Debtors further ask the Court to establish Sept. 29, 2006,
as the deadline for the filing of any resulting rejection damage
claims.

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




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


ANDREW CORP: Names Elcoteq as Supplier for Filter Products
----------------------------------------------------------
In its continuing drive toward global supply chain excellence,
Andrew Corporation, a global leader in communications systems
and products, has undertaken strategic actions that include
naming Elcoteq SE its strategic supplier for filter products in
Europe and North America and selling to Elcoteq certain filter
manufacturing assets in Europe.

The strategic actions continue efforts by Andrew to simplify,
reduce costs in, and add flexibility to its global filter
operations, and include:

   -- Signing a multi-year strategic supply agreement with
      Elcoteq, which will serve as manufacturer of Andrew's
      high-volume filter products in Europe and North America.
      Elcoteq's manufacturing in lower-cost areas of Europe and
      North America, combined with Andrew's existing Shenzhen,
      China manufacturing location, provides Andrew with a
      global source for low-cost, regionally-produced filter
      products.

   -- Selling filter manufacturing assets -- including
      inventory, facility leases, employment contracts, and
      manufacturing and testing equipment -- at its Arad,
      Romania facility to Elcoteq, which will assume immediate
      operating responsibility for the location.  Elcoteq will
      retain all of the approximately 250 employee positions in
      Arad.

   -- Notifying workers in Italy of its intent to discontinue
      high-volume filter production at Capriate and eliminate
      approximately 215 employee and contractor jobs combined at
      both its Capriate and Agrate locations.  Andrew will
      retain low-volume filter production, supply chain
      management, and repair services in Capriate, while, in
      Agrate, Andrew will retain a variety of functions that
      include product line management, customer sales, research
      and development, quality, repair, supply chain management,
      new product introduction, engineering, and staff support.
      Completion of the workforce reductions is pending labor
      negotiation.

   -- Ceasing filter production in Amesbury, MA, and,
      eventually, Nogales, Mexico, and centralizing future
      North American filter production with Elcoteq in Juarez,
      Mexico.  Andrew will close the Amesbury facility by
      year-end, completing the ongoing transfer of filter
      manufacturing there to lower-cost locations in Mexico
      and China.  All manufacturing related jobs
      -- approximately 80 -- in Amesbury will be eliminated,
      while the remaining 30 positions in R&D and new product
      introduction will be relocated to Andrew's Warren, NJ,
      location.  Filter production in Nogales involving
      approximately 30 workers will continue over the next
      several months until capabilities are ramped up by
      Elcoteq in Juarez.  The remainder of Andrew's workforce
      and operations in Nogales for non-filter production are
      not affected by these changes.

Under the agreements, Elcoteq will pay approximately US$20
million for the Andrew filter manufacturing assets, while Andrew
is anticipating purchasing approximately US$100 million in
Elcoteq-produced products during the first year of this multi-
year supply agreement to serve its growing global customer base.

Andrew's cost to implement these strategic actions is estimated
to be in the range of US$15 million to US$20 million, including
severance and asset write-offs.  These costs are expected to be
incurred over the next two to three quarters.

In addition to continuing to operate its high-volume, world
class Shenzhen filter manufacturing location, Andrew also will
retain in-house the production of low-volume filters and value-
added, specialized functions such as testing, research and
development, new product introduction, product engineering,
design, and quality control in key regions around the world.

"With the rapid growth in Andrew's filter business over the past
few years, we continue efforts to ensure that our filter supply
chain remains as flexible, cost-efficient, and regionally-
focused as possible in support of our customers' evolving
network requirements around the world," said Mickey Miller,
group president, Base Station Subsystems Group, Andrew
Corporation.  "Through this strategic relationship with Elcoteq,
we are establishing a world-class, flexible manufacturing
infrastructure and supply chain for filters that will grow with
our business and our customers' needs."

"We are extremely honored that Andrew, one of the leaders in its
industry, decided to expand its collaboration with Elcoteq,"
said Jouni Hartikainen, chief executive officer, Elcoteq SE.
"This agreement strengthens the solid relationship that started
in 2001.  We believe that we can bring many solutions to Andrew
based on our profound experience in communications technology.
For us this agreement boosts our Communications Network
Equipment business in line with our strategy."

                        About Andrew

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

                        *    *    *

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




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


FOSTER WHEELER: Secures US$350 Mil. Sr. Secured Credit Facility
---------------------------------------------------------------
Foster Wheeler Ltd. has executed an agreement for a new US$350
million, five-year senior secured domestic credit facility.

Foster Wheeler expects to close on the new facility in
October 2006. When the new facility closes, the company will be
able to utilize the facility by issuing letters of credit up to
the full US$350 million limit.   The company will also have the
option to use up to $100 million of the US$350 million limit for
revolving borrowings, an option which the company has no
immediate plans to use.  The new facility will replace an
existing credit facility that otherwise would not have expired
until March 2010.  The existing facility allows the Company to
issue letters of credit up to a US$250 million limit with the
option to use up to US$75 million of the US$250 million limit
for revolving borrowings.

"This new agreement will provide the increased bonding capacity
and financial flexibility that we require to support our growing
operations and increased volume of business," said John T. La
Duc, executive vice president and chief financial officer.  "At
current usage levels, this new facility will also reduce our
bonding costs by approximately US$8 million per year, a
substantial cost saving compared with our previous agreement.
This latest accomplishment provides us with an even stronger
platform to continue to grow our business by winning new orders,
building quality backlog, and delivering best-in-class products
and services which consistently meet or exceed our clients'
expectations."

The New Credit Agreement contains various customary restrictive
covenants that generally prohibit Foster Wheeler and its
subsidiaries from, among other things,

   (i) incurring additional indebtedness or guarantees,

   (ii) creating liens or other encumbrances on property,

   (iii) selling or transferring certain property and thereafter
         renting or leasing such property for substantially the
         same purposes as the property sold or transferred,

   (iv) entering into a merger or similar transaction,

   (v) making investments,

   (vi) declaring dividends or making other restricted payments,

   (vii) entering into any agreements with affiliates that are
         not on an arms' length basis,

   (viii) entering into any agreement that limits

          -- their ability to create liens or
          -- the ability of a subsidiary to pay dividends,

   (ix) engaging in any new lines of business,

   (x) with respect to the company, changing its fiscal year or,

   (xi) with respect to the company and one of its holding
        company subsidiaries, directly acquiring ownership of
        the operating assets used to conduct any business, in
        each case subject to certain exceptions.

In addition, the New Credit Agreement contains financial
covenants requiring the company to maintain a maximum total
leverage ratio and a minimum interest coverage ratio, and limits
the aggregate amount of capital expenditures by the Company and
its subsidiaries in any single fiscal year to US$40 million,
subject to certain exceptions.

Certain of the lenders under the New Credit Agreement and their
affiliates have from time to time provided commercial banking
and other financial services to Foster Wheeler and its
subsidiaries, for which they received customary fees and
commissions.

BNP Paribas serves as Administrative Agent, BNP Paribas
Securities Corp. as Sole Bookrunner and Sole Lead Arranger, and
Calyon New York Branch as Syndication Agent.

In connection with, and as a condition to, closing under the New
Credit Agreement, Foster Wheeler issued on Sept. 13, 2006, a
termination notice to the Administrative Agent of its existing
Loan Agreement and Guaranty dated March 24, 2005, among:

   -- Foster Wheeler LLC,
   -- Foster Wheeler USA Corporation,
   -- Foster Wheeler North America Corp.,
   -- Foster Wheeler Energy Corporation and
   -- Foster Wheeler Inc.,

as Borrowers, the guarantors, the lenders, Morgan Stanley & Co.
Incorporated as Collateral Agent and Morgan Stanley Senior
Funding, Inc. as Administrative Agent, Documentation Agent,
Syndication Agent, Sole Lead Arranger and Sole Lead Bookrunner.
The termination is effective as of October 13, 2006, and is
irrevocable.  The Existing Loan Agreement requires the borrowers
under that agreement to, upon the effective date of termination,
pay the obligations under that agreement in full (which may
include posting cash collateral or back-to-back letters of
credit equal to 105% of the amount of letters of debt or letters
of credit then outstanding), plus a prepayment premium, which is
estimated to be approximately US$5,000,000.

                    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.


GLOBAL CROSSING: Ranks Fourth in InformationWeek 500
----------------------------------------------------
Global Crossing has been ranked fourth in the 2006
InformationWeek 500 -- an annual listing of 500 of the most
innovative users of information technology in the United States.
This marks the fifth consecutive year Global Crossing has been
named to the coveted list and the first year it has ranked among
the top five innovative IT companies.  The company also climbed
to first place among telecommunications providers participating
in the listing.

"This latest InformationWeek 500 ranking helps solidify Global
Crossing's stature as a leader in information technology," said
John Legere, Global Crossing's chief executive officer.  "This
is a major accomplishment for Global Crossing's IT team headed
by our CIO Dan Wagner, and it recognizes successful
implementation of processes that have significantly reduced our
provisioning and response times, while steadily improving
customer satisfaction."

Over the past five years, Global Crossing's IT department has
diligently executed a strategy aligned with the company's vision
to be a leader in next-generation global communications and its
mission to provide a superior customer experience.  Global
Crossing's IT department has achieved continued significant
measurable results, which played a key role in the company's
ranking this year.  Most notably, provisioning cycle time for
the company was reduced by 74 percent, response time was reduced
by 80 percent, and operating expenses were reduced by 57%.

These cost reductions have improved operational performances and
efficiencies, increased service levels and contributed to
consistently higher customer satisfaction scores each year since
2002.  More than 95 percent of enterprise customers were
"satisfied" with Global Crossing's overall performance and more
than 80% were "very satisfied," according to the company's
latest Customer Satisfaction (CSAT) survey conducted from April
through June 2006 by Knowledge Systems & Research.

In addition to these measurable results, Global Crossing also
was ranked on the merits of its automated global network
inventory and management operations system -- end-to-end network
(EON) and its development of an "Intelligent Front Office" (IFO)
that is integrated with EON.  EON uniquely combines inventory
and workflow to streamline the introduction of new IP services
to the marketplace, while IFO empowers sales, customers and
partners to interact with back-end processes and systems.  In
another phase of its ongoing effort to reap the benefits of
collaborative, converged services, the IT department has
optimized the effectiveness of EON and IFO by leveraging
presence-enabled collaboration tools that accelerate
communication and automate workflow and service delivery
platforms.

"Implementing EON and IFO has transformed the traditional IT
function into a service operational cost advantage and market
differentiator for Global Crossing and its customers," Mr.
Wagner explained.  "These unique platforms have helped us speed
the time it takes to bring new products and services to market.
They have become the catalysts and foundations for IT
fundamentals that link converged IP communication services to
best-in-class performance, reliability and customer experience."

Global Crossing differentiates itself by focusing on its
technology, security, support and control model to solve their
customers' business challenges.  Global Crossing's enterprise
and carrier services portfolio is built around a streamlined
global service delivery model that offers customers prompt
procurement and provisioning.  Premier dedicated customer
service is provided from state-of-the-art network operations
centers, secure Web-based management systems and call centers
worldwide on a 24-hour basis, seven days a week.

For 18 consecutive years, the research editors of
InformationWeek Magazine have selected and honored 500 of the
most innovative users of information technology.  This year, the
research project gathered in-depth information directly from
thousands of candidate companies about how they approach and
prioritize their IT investments and key business-technology
strategies.  The research identified and ranked the companies
following an extensive online and phone study.

"The InformationWeek 500 honors today's leading companies that
set the benchmark for business technology strategies and
projects," said Fritz Nelson, InformationWeek publishing
director.  "Companies making our list, like Global Crossing, are
some of the most innovative users of technology in their
industries."

The InformationWeek 500 is the most detailed source of industry-
specific IT budget data.


                   About Global Crossing

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

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


QUANTA CAPITAL: Names Peter Johnson as President & CEO
------------------------------------------------------
Quanta Capital Holdings Ltd. said in a statement that it has
appointed Peter D. Johnson as its president and chief executive
officer, replacing interim chief executive officer Robert
Lippincott.

According to the statement, Mr. Johnson previously led the
runoff of The Home Insurance Co.

The company said that Mr. Lippincott will continue as deputy
chairperson and a member of Quanta's board.  Mr. Lippincott took
over as interim chief executive officer after Tobey J. Russ
resigned in November 2005.

Business Insurance relates that Quanta Capital placed most of
its business in runoff in May 2006, after a ratings downgrade
out of the A range due to the hurricanes last year.

"Peter is a specialist in discontinued insurance operations and
claims management and has an established track record in this
area..  We welcome him to the helm, and look forward to working
together to achieve the best outcome possible for all of our
stakeholders," James J. Ritchie, Quanta's executive chairperson,
said in a statement.

Headquartered in Hamilton, Bermuda, Quanta Capital Holdings Ltd.
(NASDAQ: QNTA) -- http://www.quantaholdings.com/-- operates its
Lloyd's syndicate in London and its environmental consulting
business through Environmental Strategies Consulting in the
United States.  The Company is in the process of running off its
remaining business lines.  The Company maintains offices in
Bermuda, the United Kingdom, Ireland and the United States.

                        *     *     *

As reported in the Troubled Company Reporter on Aug. 15, 2006,
Quanta Capital Holdings Ltd. continues to work with its lenders
regarding an amendment to its credit facility and an extension
to its waiver period, which expired Aug. 11, 2006.

On June 7, 2006, A.M. Best Co. downgraded the financial strength
ratings to B from B++ and the issuer credit ratings to bb from
bbb for the insurance/reinsurance subsidiaries of Quanta Capital
Holdings Ltd.  These rating actions apply to Quanta Reinsurance
Ltd., its subsidiaries and Quanta Europe Ltd.  A.M. Best also
downgraded Quanta's ICR to b from bb and the securities rating
to ccc from b+ for its US$75 million 10.25% Series A non-
cumulative perpetual preferred shares.  All ratings have been
removed from under review with negative implications and
assigned a negative outlook.

The company disclosed that the A.M. Best rating action triggered
a default under Quanta's credit facility.




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


INTERNATIONAL PAPER: Discloses Dutch Auction Preliminary Results
----------------------------------------------------------------
International Paper Company disclosed the preliminary results of
its modified "Dutch Auction" tender offer, which expired at
12:00 midnight, New York City time, on Wednesday,
Sept. 13, 2006.

Based on the preliminary count by the depositary for the tender
offer, International Paper expects to acquire approximately 38.5
million shares of its common stock at a price of US$36 per share
for a total cost of approximately US$1.386 billion.  These
shares represent approximately 7.8% of the shares outstanding as
of Sept. 13, 2006. Because International Paper will purchase all
of the shares tendered, no proration is required.

The number of shares to be purchased and the price per share are
preliminary.  Final results for the tender offer will be
determined subject to confirmation by the depositary of the
proper delivery of the shares validly tendered and not
withdrawn.  The actual number of shares to be purchased and the
price per share will be announced following the completion of
the confirmation process.  Payment for the shares accepted for
purchase will occur promptly thereafter.

Goldman, Sachs & Co. and UBS Securities LLC served as dealer
managers for the tender offer.  D.F. King & Co., Inc. served as
information agent and Mellon Investor Services served as the
depositary. Shareholders and investors who have questions or
need information about the tender offer may call D.F. King &
Co., Inc. at (800) 487-4870.

                  About International Paper

Based in Stamford, Connecticut, International Paper Company
(NYSE: IP) -- http://www.internationalpaper.com/-- is in the
forest products industry for more than 100 years.  The company
is currently transforming its operations to focus on its global
uncoated papers and packaging businesses, which operate and
serve customers in the U.S., Europe, South America and Asia.
Its South American operations include, among others, facilities
in Argentina, Brazil, Bolivia, and Venezuela.  These businesses
are complemented by an extensive North American merchant
distribution system.  International Paper is committed to
environmental, economic and social sustainability, and has a
long-standing policy of using no wood from endangered forests.

                        *    *    *

Moody's Investors Service assigned a Ba1 senior subordinate
rating and Ba2 Preferred Stock rating on International Paper
Company on Dec. 5, 2005.


PETROLEO BRASILEIRO: Unhappy with Bolivia's New Oil & LPG Rules
---------------------------------------------------------------
Peytroleo Brasileiro S.A. aka Petrobras expresses its
disagreement with Ministerial Resolution 207/2006 the Bolivian
Ministry of Hydrocarbons and Energy published in the media on
Sept. 12, 2006, establishing new conditions for oil and
liquefied petroleum gas production, transportation, refining,
storage, and marketing which encompass all of the byproduct
price chain stages.

Considering this decision made by the Bolivian government,
Petrobras manifests its disagreement with the measure from the
legal, operational, and financial viewpoints, since it renders
the company's refining business totally unviable in that
country.

The company also clarifies that it is the Hydrocarbons
Superintendence that establishes the refining margins.  In May
2005, this regulatory agency established the margin that is
currently in effect.  This value is insufficient to cover the
company's cost, and that is the reason why Petrobras has
requested it be reviewed on several different occasions.

During this period, the negative results Petrobras has achieved
while keeping the internal market supplied have been compensated
for by the favorable conjuncture of the international price for
exported products (gasoline and reconstituted oil), even if this
does mean the company takes-on the risk of volatility in these
prices in the international market.  On account of this,
Ministerial Resolution 207/2006 compromises the refining
activity maintenance by preventing the Company's access to these
markets.

By using modern operation and management technologies -- despite
the loss-making character of the internal market supply -- after
it took over refinery operations, Petrobras was able to achieve
average gains of US$14 million for an initial investment of
US$105 million, maintaining a constant flow of contributions to
the Bolivian State. These values contradict the criterion that
the company has had "extraordinary benefits."

Additionally, the appropriation of the company's cash flows by
YPFB, imposed by MR 207/2006, puts the maintenance of the
financing the Petrobras has already contracted in jeopardy and,
consequently, the normal maintenance of its activities as well.
In this regard, Petrobras is evaluating possible measures it may
adopt by virtue of this unilateral determination of the
Hydrocarbons and Energy Ministry.

Notwithstanding the complex situation of Petrobras' permanence
in Bolivia, the company once again emphasizes its commitment to
the country's development and expresses its deep concern with
the negative effects this unilateral decision will have on the
national and regional industry.

Since it commenced its operations in the refining segment,
Petrobras has fulfilled, responsibly, its mission of ensuring
the uninterrupted supply of the internal fuel demand, in
compliance with the strictest international quality, safety, and
environmental norms.  Likewise, the company asserts it operates
and will always operate transparently, respecting the laws in
effect in Bolivia.

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.




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


AMRO REAL: Intesa Sells 3.86% Stake in Firm to ABN Amro
-------------------------------------------------------
ABN Amro said in a statement that it has purchased Italian bank
Banca Intesa's 3.86% stake in the former's unit Banco ABN Amro
Real SA for EUR233 million in cash.

According to Business News Americas, Intesa received 11.58% of
Amro Real in 2003 after selling a 94.57% stake in its Brazilian
unit Banco Sudameris to ABN Amro, which later exercised a call
option from the sale and started buying Intesa's holdings in
Amro Real in June 2005.  ABN Amro last paid EUR224 million in
June 2006 for 3.86% of Amro Real.

BNamericas relates that Amro Real reported that it net profits
increased 22.5% to BRL686 million in the first half of 2006 due
to higher lending revenues.

Amro Real represented 96.6% of ABN Amro's operating income in
Latin America in the first half of 2006, BNamericas reports.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Sept 4, 2006, Moody's Investors Service upgraded Banco ABN AMRO
Real S.A.'s long-term foreign currency deposits to Ba3, from B1.
The rating outlook is stable.


BANCO INDUSTRIAL: Raises US$150MM Through Three-Year Bond Issue
---------------------------------------------------------------
Banco Industrial e Comercial SA aka Bicbanco reported that it
has raised about US$150 million on the international markets
through a three-year bond issue, Business News Americas states.

According to BNamericas, Bicbanco initially planned to issue
about US$100 million with a yearly interest rate of 8.5%.
However, strong investor demand decreased the rate to 8.25% and
prompted the bank to increase the issue to US$150 million.

BNamericas notes that the issue, handled by UBS, was sold to
Asian and European institutional and private investors.

Bicbanco told BNamericas that it will use the funds to pay for
loan operations.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Sept. 5, 2006, Moody's Investors Service assigned a Ba3 long-
term foreign currency rating to Banco Industrial e Comercial
S.A. aka BICBANCO's US$100,000,000 senior unsecured notes, with
final maturity in 2009.  The outlook on the rating is stable.


BANCO NACIONAL: To Finance Real Estate Sector
---------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
will start to finance the real estate sector through two
modalities:

   -- investments in housing for employees and
   -- innovation in the civil construction sector.

For the former, BNDES will grant credit to enterprises which
borrow resources from BNDES, directed to the construction of
houses, exclusively, the ones which are associated to the
financing investment scope.

Financed housing projects will be under the Line of Social
Investments for Enterprises, which was created by BNDES in
July 2006, and which will be able to cover 100% of the invested
amount.  The cost will be from the Long-Term Interest Rate plus
spread of 1% p.a., free of risk fee.

The financing will always be through a direct operation,
regardless of the granted amount, and will be carried out
through social subcredit.  The credit is bound to the financing
of a certain productive project or to a specific agreement for
the operation.  Terms will be set for each project according to
the enterprise's needs.

For financings directed to investments in Innovation, BNDES will
reserve BRL$100 million for the civil construction sector, under
the line of Innovation.  This line is used to research projects,
technological development and innovation for new products and
processes, aiming at reaching competitive positions.

The investments can be eligible in two modalities:

   -- Research, Development and Innovation, with fixed interest
      rate of 6% p.a. plus spread of risk, will be used for the
      financing of new solution processes and development; and

   -- the Innovation and Production, which was created to
      finance the production of innovative projects, with the
      cost from TJLP plus spread of risk ranging from 0.8 and
      1.8% p.a.  The financing term may range according to the
      needs of the project, reaching up to 12 years.

                        *    *    *

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.


PETROLEO BRASILEIRO: Inks Exploration Deal with Repsol & Enarsa
---------------------------------------------------------------
The government of Argentina said in a statement that Petroleo
Brasileiro SA aka Petrobras, through its subsidiary Petrobras
Energia, has entered into an agreement with Argentine state oil
Enarsa and Spain's Repsol YPF for a US$50 million hydrocarbons
exploration offshore in Argentina.

Business News Americas emphasizes this offshore exploration
agreement is the fourth the companies have signed.

BNamericas relates that the consortium will explore two high-
risk offshore blocks:

       -- 250 kilometers off the coast of Mar del Plata; and

       -- 200 kilometers offshore southern Rio Negro and
          northern Chubut provinces in the E-1 area.

According to the report, exploration works include:

       -- aerogravimetry and magnetometry studies;

       -- acquisition of:

          * 2,000 meters of 2D seismic, and
          * 500 kilomenters of 3D seismic data; and

       -- drilling of an exploratory well if results are
          positive.

BNamericas notes that Petrobras and Enarsa will each hold 35%
stakes in the consortium.  Enarsa will act as the operator.
Repsol YPF will have 30%.  The companies will have five years
for the exploration works.

Government news service Telam underscores that about 85% of
Petrobras' global reserves are offshore, which executives
highlighted as key to the success of the project.

Telam says that the project could require drilling as deep as
1,500 meters.

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.


PETROLEO BRASILEIRO: Inks Memorandum of Cooperation with ONGC
-------------------------------------------------------------
The presidents of Petroleo Brasileiro S.A. aka Petrobras, Jose
Sergio Gabrielli de Azevedo, and of Oil and Natural Gas
Corporation Ltd. aka ONGC, Radhey Shyam Sharma, signed on
Sept. 12, 2006, a Memorandum of Cooperation in several segments
of interest to the two companies in Brasilia.

The memorandum Petrobras and ONGC signed covers these segments
of the oil and gas productive chain:

   -- Cooperation in deepwater oil and gas exploration and
      production in Brazil, India, and in other countries;

   -- Joint participation in the opportunities offered in
      deepwater exploratory block bids in Brazil, India, and in
      other countries;

   -- Participation in oil and gas exploration and production
      projects in both companies' portfolios; and

   -- Negotiation to market oil, gas, and byproducts in Brazil,
      India, and in other countries.

The agreement cooperation, which will be in effect for two years
and may be extended for an equal period, is structured on both
companies' specific interests: on one side, on Petrobras'
technological knowledge and experience in deepwater exploration
and production; on the other, on the campaign ONGC has been
carrying out to expand its deepwater exploratory block business,
both in India and in other countries.

                       About ONGC

Oil and Natural Gas Corporation Ltd. -- http://
http://www.ongcindia.com/-- owns and operates more than 11000
kilometers of pipelines in India, including nearly 3200
kilometers of sub-sea pipelines.

                About Petrole Brasileiro

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.


PETROLEO BRASILEIRO: Mulls Investments in Exxon's Okinawa Plant
---------------------------------------------------------------
Brazil's state-owned oil company, Petroleo Brasileiro SA, may
buy a stake in a refinery controlled by Exxon Mobil Corp.'s
Japanese unit, Bloomberg News reports.

According to the same article, talks are being held between
Petroleo Brasileiro representatives and the plant's
shareholders, Exxon's unit TonenGeneral Sekiyu K.K. and Sumitomo
Corp.

The cost of the Brazilian state firm's stake in the plant and
spending by the investors to upgrade technology may total US$1
billion, an unnamed official told Bloomberg.

Petroleo Brasileiro wants to tap growing oil demand in China
through its proposed purchase of a stake in the Okinawa
refinery, Bloomberg says.

TonenGeneral is 51% owned by Exxon, the world's largest publicly
traded oil company. Nansei Sekiyu K.K., which operates the
100,000 barrel-a-day Okinawa refinery, is 87.5% by TonenGeneral
and 12.5% by Sumitomo, Japan's third-largest trading company.

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.


* BRAZIL: Sixth Rio Oil & Gas Business Round Generated BRL100MM
---------------------------------------------------------------
The 6th Rio Oil & Gas 2006 Business Round generated a total of
BRL100.3 million in good and service orders from 200 small and
midsize Brazilian companies.

During the event, which was promoted by the Sebrae and by the
Onip (the National Oil Industry Organization), 24 contracting
companies held 900 meetings with vendors.  This figure,
according to Eloi Fernandez, the general director for Onip, was
above expectations.  "In the last round, in 2004, we registered
BRL25 million."  With this result, it is expected that in the
next six months, the companies generate towards BRL200 million
in deals.

Petrobras, BR, and Transpetro are among the companies that will
place orders.  Among the deals that were closed, the highlight
goes to the machining, logistics, operation, and maintenance
sectors.

                        *    *    *

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


AKEBONOBASHI HOLDING: Final Shareholders Meeting Is on Sept. 22
---------------------------------------------------------------
Akebonobashi Holding Ltd.'s final shareholders meeting will be
at 2:00 p.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


BANK OF INDIA: Net Income Up 22% for Quarter Ended June 30
----------------------------------------------------------
Bank of India posts a net income of INR208.73 crore for the
quarter ended June 30, 2006, a 21.54% increase from the net
income of INR171.74 crore it posted in the quarter ended
June 30, 2005, according to the bank's financials.

The bank's total income for the quarter ended June 30, 2006, was
at INR2,331.70 crore, a 25.45% year-on-year improvement buoyed
by increases in both the interest earned and other income
accounts to INR2,021.05 crore and INR310.65 crore, respectively.

Total expenditures was up 24.10% to INR1,864.09 crore for the
quarter in review.

The bank's financials includes the following financial data (in
INR, crore):

                                         Quarter ended
                                 June 30, 2006   June 30, 2005
                                 -------------   -------------


Interest earned                       2021.05         1564.54
Other income                           310.65          294.36
Total income                          2331.70         1858.90
Total expenditure                     1864.09         1492.30
Operating profit                       467.61          366.60
Net profit                             208.73          171.74

As of June 30, 2006, the bank's capital adequacy ratio slightly
decreased to 10.36%.  Other indicators, however, improved:

   * Amount of gross non-performing assets: INR2,522.06 crore
     (from INR3,085.79 crore)
   * Amount of net non-performing assets: INR978.87 crore (from
     INR1,447.88 crore)
   * Percentage of gross NPAs: 3.61% (from 5.37%)
   * Percentage of net NPAs: 1.43% (from 2.59%)
   * Earnings per Share: INR4.28 (from INR3.52)
   * Return on Assets (annualised): 0.74% (from 0.72%)

                     About Bank of India

Bank of India -- http://www.bankofindia.com-- 2628 branches in
India spread over all states/ union territories, including 93
specialized branches.  The bank provides a range of financial
products and services, including numerous credit schemes,
deposit schemes, cash management services, credit/debit cards,
deposit vaults and corporate bonds. It also extends finance to
small and medium enterprises and small-scale industries. It
provides a variety of loans, such as mortgage loans, educational
loans, auto finance loans, holiday loans, personal loans and
home loans. The bank offers Internet banking services for both
the retail and corporate clients.

The bank operations in the Cayman Islands, China, the Channel
Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore,
the United Kingdom, the United States, and Vietnam.

                         *     *      *

On Sept. 9, 2006, Standard & Poor's Ratings Services assigned
its BB- rating to Bank of India's (BoI; BB+/Positive/B) proposed
upper Tier II subordinated and hybrid Tier I notes under its
US$1 billion MTN program.

At the same time, Standard & Poor's raised its rating on the
proposed subordinated notes, or lower Tier II notes, under the
MTN program to BB from BB-.


COAST MULTI: Liquidator Presents Wind Up Accounts on Sept. 22
-------------------------------------------------------------
Coast Multi Strategy Fund Ltd.'s shareholders will convene for a
final meeting on Sept. 22, 2006, at:

         2450 Colorado Avenue
         Suite 100E, East Tower
         Santa Monica, California

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

The liquidator can be reached at:

         Coast Asset Management, LLC
         c/o MAPLES and CALDER, Attorneys-at-law
         P.O. Box 309, George Town
         Grand Cayman, Cayman Islands


COAST SP: Shareholders Convene for a Final Meeting on Sept. 22
--------------------------------------------------------------
Coast SP Fund (Cayman) Ltd.'s shareholders will convene for a
final meeting on Sept. 22, 2006, at:

         2450 Colorado Avenue
         Suite 100E, East Tower
         Santa Monica, California

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

The liquidator can be reached at:

         Coast Asset Management, LLC
         c/o MAPLES and CALDER, Attorneys-at-law
         P.O. Box 309, George Town
         Grand Cayman, Cayman Islands


COAST STRUCTURED: Last Shareholders Meeting Is Set for Sept. 22
---------------------------------------------------------------
Coast Structured Product Fund (Cayman) Ltd.'s shareholders will
convene for a final meeting on Sept. 22, 2006, at:

         2450 Colorado Avenue
         Suite 100E, East Tower
         Santa Monica, California

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

The liquidator can be reached at:

         Coast Asset Management, LLC
         c/o MAPLES and CALDER, Attorneys-at-law
         P.O. Box 309, George Town
         Grand Cayman, Cayman Islands


DAIWA INT'L: Calls Shareholders for a Final Meeting on Sept. 22
---------------------------------------------------------------
Daiwa International Finance (Cayman) Limited's shareholders will
convene for a final meeting on Sept. 22, 2006, at the company's
registered office.

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

The liquidator can be reached at:

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


DAIWA PB: Invites shareholders for a Final Meeting on Sept. 22
--------------------------------------------------------------
Daiwa PB Limited's shareholders will convene for a final meeting
on Sept. 22, 2006, at the company's registered office.

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

The liquidator can be reached at:

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


GLEN AGAR: Final Shareholders Meeting Is Scheduled for Sept. 22
---------------------------------------------------------------
Glen Agar Holdings Ltd.'s shareholders will convene for a final
meeting on Sept. 22, 2006, at the company's registered office.

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

The liquidator can be reached at:

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


HAMMERMAN OPPORTUNITY: Last Shareholders Meeting Is on Sept. 22
---------------------------------------------------------------
Hammerman Opportunity Fund, Ltd.'s final shareholders meeting
will be at 3:00 p.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:

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


HARBOURVIEW CLO: Sets Final Shareholders Meeting on Sept. 22
------------------------------------------------------------
Harbourview CLO V, Limited 's final shareholders meeting will be
at 3:00 p.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


J.F. COMPANY: Schedules Final Shareholders Meeting on Sept. 22
--------------------------------------------------------------
J.F. Company's shareholders will convene for a final meeting on
Sept. 22, 2006, at the company's registered office.

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

The liquidator can be reached at:

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


KYOKUTO ASSET: Final Shareholders Meeting Is Set for Sept. 22
-------------------------------------------------------------
Kyokuto Asset Holdings' final shareholders meeting will be at
2:30 p.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 (ADVANTAGE): Last Shareholders Meeting Is Sept. 22
----------------------------------------------------------------
Merrill Lynch Hedge Fund Advantage's final shareholders meeting
will be at 3:00 p.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


PERCIPIENCE LTD: Schedules Last Shareholders Meeting on Sept. 22
----------------------------------------------------------------
Percipience Ltd.'s shareholders will convene for a final meeting
on Sept. 22, 2006, at the company's registered office.

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

The liquidator can be reached at:

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


SAN INVESTMENT: Sets Final Shareholders Meeting on Sept. 22
-----------------------------------------------------------
San Investment Company Limited's shareholders will convene for a
final meeting on Sept. 22, 2006, at the company's registered
office.

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

The liquidator can be reached at:

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




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


BANCOLOMBIA: Leasing Colombia Sells COP180 Billion in Bonds
-----------------------------------------------------------
Leasing Colombia, Bancolombia's leasing unit, said in a press
release that it has sold bonds totaling COP180 billion.

Business News Americas relates that Leasing Colombia had
originally planned to issue COP130 billion bonds.  However,
investor demand increased 1.4 times to COP187 billion.

The bond issue is part of a larger COP1.5 billion bond program,
Leasing Colombia told BNamericas.

Leasing Colombia is the largest leasing firm in Colombia,
controlling around 46% of the domestic leasing market with about
COP3 trillion in assets.

                        *    *    *

The Troubled Company Reporter-Latin America reported on
April 28, 2006, that Moody's Investors Service upgraded
Bancolombia's bank financial strength ratings to D+ from D with
a stable outlook.

Moody's added that the action concludes the review for possible
upgrade that was announced on Oct. 13, 2005.  Moreover,
Bancolombia's Ba3/Not Prime long- and short-term foreign
currency deposit ratings were affirmed.  Moody's said the
outlook on all ratings is stable.


ECOPETROL: Will Bid for Brazilian Exploration Blocks in November
----------------------------------------------------------------
Edgar Caro -- the business development official of Ecopetrol,
the state-owned oil firm of Colombia -- told Business News
Americas that the company plans to make a bid for exploration
blocks in Brazil's Nov. 28-29 eighth licensing round.

BNamericas relates that Mr. Caro said during the Rio Oil & Gas
2006 conference, "We are here at this expo looking for
opportunities."

According to the report, Ecopetrol paid for data for the
auction, at which ANP -- Brazil's national hydrocarbons
regulator -- will offer 284 exploration blocks.

The decision to bid in Brazil is part of Ecopetrol's plan to
expand operations globally, BNamericas says, citing Mr. Caro.

Mr. Caro told BNamericas, "If we win blocks here in Brazil, we
will have to open an office within three months of signing the
contracts."

BNamericas notes that Mr. Caro said Ecopetrol aims to boost its
international budget operations significantly to expand reserves
abroad.  In 2006, the firm allocated about US$150 million to
invest abroad.

The report says that part of the international budget will be
taken from the planned sale of 20% of Ecopetrol expected to
conclude in the next 12 months.

Ecopetrol needs to boost its reserves.  It is considering
several other opportunities in the Latin American region,
BNamericas states.

Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government.  The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products.  Ecopetrol is Latin America's
fourth-largest integrated-oil concern.  Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas.  Ecopetrol has
about 1.09 billion barrels of proven oil reserves.

On June 27, 2006, Fitch Ratings revised the rating outlook of
the long-term foreign currency issuer default rating of
Ecopetrol S.A. to Positive from Stable.  This rating action
follows the recent revision in the Rating Outlook to Positive
from Stable of the 'BB' foreign currency IDR of the Republic of
Colombia.  Ecopetrol's IDR remain strongly linked with the
credit profile of the Republic of Colombia.




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


* COSTA RICA: Aresep Accepts Plans to Form Telecoms Regulator
-------------------------------------------------------------
Autoridad Reguladora de los Servicios Publicos or Aresep, the
public service regulator in Costa Rica, has approved plans to
for a new regulatory authority for the telecoms sector,
according to a report by Diario Extra.

Fernando Herrero, the head of Aresep, told Business News
Americas that the agency today has authority to regulate ICE --
Costa Rica's incumbent telecoms operator -- but not the whole
telecoms sector.

Mr. Herrero said that the new telecoms regulator would be called
Sutel.  Plans for a separate telecoms regulator are included in
a bill aimed at revising the telecoms sector law and preparing
ICE for the liberalization of the sector, BNamericas says.

BNamericas notes that Mr. Herrero said the creation of Sutel
requires changes to Aresep's mandate and these have to be
ratified before the liberalization.  Mr. Herrero expects
Aresep's transformation plan to be ready in three months.

Sutel will take on Aresep's functions with respect to ICE and
will have to regulate spectrum use -- a task currently dealt by
the National Radio Control Office -- and guarantee fair
competition in the Costa Rican market.

BNamericas underscores that a proposed Free Trade Agreement with
the US or FTA and the rest of Central America requires Costa
Rica to liberalize the Internet and private networks sectors in
2006 and mobile telephony in 2007.  Costa Rica plans to wait for
the ICE reform bill and telecoms law modifications to be
approved before ratifying the FTA.

The nation's President Oscar Arias told BNamericas he expects to
ratify the FTA by December.

                        *    *    *

As reported on Aug. 21, 2006, Fitch Ratings upgraded Costa
Rica's country ceiling to BB+ from BB.


* COSTA RICA: Vice President Wants to Protect Gambling Sector
-------------------------------------------------------------
Laura Chinchilla, the Vice President of Costa Rica, told a
source of Gambling 911 that she wants the gambling sector
protected.

The online gambling industry is among those that pay high in
Costa Rica, Gambling 911 notes.

Gambling 911 states that BetonSports, Costa Rica's largest
online gambling employer, shut down operations in August, laying
off over 800 workers.

According to Gambling 911, Vice President Chinchilla was worried
on what had happened to BetonSports and a closure that affected
several jobs.

The source told Gambling 911, "The BetonSports (situation)
impacted a certain sector of Costa Rica."

Gambling 911 relates that a tax was brought up during a meeting
with the vice president.

The report says that Vice President Chinchilla wanted to form a
regulation within Costa Rica for the online gambling sector that
would benefit it and the workers.

"She (vice president) said they (The Costa Rican government) are
behind the industry.  It was the best meeting I have ever
attended with the politicians," the source told Gambling 911.

                        *    *    *

As reported on Aug. 21, 2006, Fitch Ratings upgraded Costa
Rica's country ceiling to BB+ from BB.




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


* CUBA: Expects Economy to Grow Over 12% in 2006
------------------------------------------------
Authorities in Cuba expect that the nation's economy would
increase over 12% in 2006, despite the US blockade, Prensa
Latina reports.

Prensa Latina relates that the blockade caused Cuba losses of
about US$86 billion.

Jose Luis Rodriguez -- Cuba's Economy and Planning Minister
-- told the press that the nation's economy continued to grow
steadily in 2006, even with:

        -- high oil prices,
        -- damaging tropical storms, and
        -- the US blockade.

Mnister Rodriguez explained to Prensa Latina that, although
Cuba's Gross Domestic Product is growing rapidly, what most
interests the island is the quality of that growth and how it is
felt among the general population.

Prensa Latina notes that investments in social-economic
development are increasing.  Foreign capital is concentrated in
developing telecommunications and in advanced technology
required for the Cuba's nickel and oil industries to expand.

Trade with China has increased in the last five years, and
should be even greater in the future, as Cuba has fulfilled its
financial commitments, opening the doors to additional credit
from the Asian nation, Prensa Latina says, citing Minister
Rodriguez.

Minster Rodriguez told Prensa Latina that Russia and Cuba are
close to resolving pending debt issues.  This would mean an
opportunity for Cuba to purchase additional high quality
products from Russia.

Prensa Latina underscores that the minister said the Energy
Revolution underway in Cuba facilitated more efficient use of
fuel for generating electricity.

According to the report, the program includes the distribution
of low energy-consuming domestic electric appliances at
affordable prices, as well as the Cuba's purchase of more fuel-
efficient transport vehicles.

In rural areas there are over 150,000 small private farmers
working small plots of land.  Since 1994, land tenancy in Cuba
has turned away from large state farms to a growth in
cooperative and individual production, Minister Rodriguez told
Prensa Latina.

                        *    *    *

Moody's assigned these ratings to Cuba:

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




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


FALCONBRIDGE: Redeeming Outstanding Preferred Shares on Nov. 1
--------------------------------------------------------------
Falconbridge Ltd., Xstrata Plc's subsidiary, reported that it
mailed on Sept. 15 a notice of redemption for all of the firm's
outstanding Cumulative Redeemable Preferred Shares, Series F and
Series G, and Cumulative Preferred Shares, Series 1.

Falconbridge will redeem all of the outstanding Redeemed Shares
on Nov. 1, 2006.  The firm will redeem:

        -- each series F share for CAD25.50 in cash;
        -- each series G share for CAD25.00 in cash; and
        -- each series 1 share for CAD10.00 in cash, plus
           accrued and unpaid dividends in respect of each share
           up to, excluding.

Falconbridge intends to utilize its internal cash resources to
fund the aggregate redemption price of CAD306 million.

Falconbridge shareholders with questions or requests for copies
of the documents, may contact:

         CIBC Mellon Trust Company
         Phone: 1-800-387-0825
                +1 (416) 643-5500
         E-mail: inquiries@cibcmellon.com.

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

                        *    *    *

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




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


* ECUADOR: IDB Closes Deal with Banco de Guayaquil Under TFFP
-------------------------------------------------------------
The Inter-American Development Bank closed on Sept. 7 the first
transaction in Ecuador under the Trade Finance Facilitation
Program or TFFP with Ecuadorian bank Banco de Guayaquil.  Under
this transaction, the IDB has extended its guarantee to cover
the promissory note used to finance United States imports to
Ecuador by one of Banco de Guayaquil's main clients.  The IDB
issued this guarantee in favor of Wachovia Bank, thus sharing
the risk assumed on the transaction with Banco de Guayaquil.

"We feel proud to be the first issuing bank in Ecuador to have
completed a transaction under the TFFP.  The process has been
easy and agile, which provides us with more incentives to fully
promote the facility with our clients," said Euvenia Touriz,
manager of the International Division at Banco de Guayaquil.

The US$1 million deal has a tenor of six months and will help
support regional trade in the Americas.

                  About Banco De Guayaquil

Banco de Guayaquil is the second largest bank in Ecuador, having
positioned itself with a strong presence in both retail and
corporate banking.  The bank has 120 branches and is part of a
1,700 ATM network throughout the country.  Banco de Guayaquil is
looking to broaden its support of Ecuadorian importers and
exporters with the backing of the IDB.  The TFFP can provide
assistance to extend the bank's trade financing terms and expand
its international funding base among existing and new
international correspondent banks.

                        *    *    *

Fitch assigned these ratings on Ecuador:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     B-      Aug. 29, 2005
   Long Term IDR       B-      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005




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


* HONDURAS: Banking Sector Posts HNL1.01B First Half Net Profits
----------------------------------------------------------------
Comision Nacional de Bancos y Seguros -- the banking and
insurance regulator in Honduras -- told Business News Americas
that the first half profits of the nation's banking sector
increased 41.5% to HNL1.01 million, from the HNL714 million
recorded in the same period in 2005.

Mauricio Choussy, Fitch Central America managing director, told
BNamericas that economic growth in Honduras has increased credit
expansion, the core driver behind first half results.

The gross domestic product of Honduras increased 4.2% in 2005,
and is expected to grow 4.3% in 2006, BNamericas says, citing
the International Monetary Fund.

Mr. Chossy told BNamericas that relatively stable provision
expenses due to stable levels of non-performing loans also
helped bottom-line results.

The banking sector posted these results for the first half of
2006:

        -- return on equity for the first half of 2006 increased
           to 20.1% from 16.8%, compared with the first half of
           2005;

        -- return on assets increased at 1.8% from 1.5%;

        -- net interest income grew 23% to HNL3.48 billion,

        -- non-interest income rose 21% to HNL985 million due to
           higher fee revenues;

        -- loans grew 28% to HNL68.0 billion, due to increases
           in mortgage and commercial lending;

        -- past-due loans as a percentage of total loans dropped
           to 5.5% at the end of June 2006 from 6.3% in June
           2005;

        -- deposits increased 26% to HNL90.6 billion;

        -- assets rose 24% to HNL122 billion;

        -- liabilities grew 25% to HNL114 billion; and

        -- shareholder equity rose 19% to HNL10.5 billion.

Mr. Choussy told BNamericas that increase in net interest was
limited by declining local currency interest rates and fierce
competition in the corporate segment.

BNamericas says that Mr. Choussy said that banks are still
dealing with loans granted to the agriculture sector -- affected
by Hurricane Mitch -- which has kept the level of past-due loans
high.

Indicator has shown a consistent decrease over the past few
years in Honduras' banking sector, Mr. Choussy told BNamericas.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

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




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


AIR JAMAICA: IMF Suggests Airline's Shutdown
--------------------------------------------
The International Monetary Fund has suggested that the Jamaican
government close down Air Jamaica, the Jamaica Gleaner reports.

The Gleaner underscores that IMF wanted radical action like
shutting down Air Jamaica and allowing its routes to be covered
by private airlines.  The IMF had given the same suggestion in
previous analyses of the Jamaican economy in the late 1990s.

According to The Gleaner, Air Jamaica transports about 50% of
passengers to Jamaica and over a third of the tourism traffic.
The airline, however, has consistently incurred losses.  It has
an accumulated deficit over the past decade of about US$1
billion.

The Gleaner relates that Air Jamaica's losses increased to
US$136 million in 2005, from US$113 million in 2004, despite a
restructuring plan aimed at increasing revenues and reducing
costs.

IMF told The Gleaner, "These losses add to the government debt
burden as they are financed through a combination of government
transfers (the administration announced an annual cap of US$30
million in support for the airline) and commercial loans
contracted under government guarantee."

However, Jamaica had told IMF that Air Jamaica was strategic to
the nation's critical tourist industry, The Gleaner says.

The Gleaner notes that Jamaican officials told the IMF analysts
that it was not only Air Jamaica that incurred losses.
Airlines, internationally, were losing.

IMF told The Gleaner, "Notwithstanding the recent increase in
service to Jamaica by other airlines, they (the Jamaican
authorities) saw tangible as well as intangible benefits to a
tourism-dependent economy to maintaining its own flag carrier,
especially since Air Jamaica was the only direct service
provider on a number of important routes."

The Gleaner reports that among losses incurred by Air Jamaica in
2005 were caused by "one-off" costs like fleet rehabilitation.
The losses would be lower in the future.

IMF argued that that the principle of structural reform should,
in the first principle, be to guarantee commercial viability,
according to The Gleaner.  If the current amendments failed to
revitalize Air Jamaica, the Jamaican government may have to
reconsider the merits of maintaining a flag carrier.

Meanwhile, one of the unions representing Air Jamaica workers
balked on IMF's suggestion of closing the airline, Radio Jamaica
says.

Air Jamaica should be allowed breathing space to complete the
implementation of the restructuring plan, Granville Valentine --
the National Workers Union's Deputy Island Supervisor -- told
Radio Jamaica, adding that IMF's concerns about Air Jamaica are
premature.

                        *    *    *

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


AIR JAMAICA: Union Calls for changes to Board of Directors
----------------------------------------------------------
Granville Valentine, the National Workers Union's Deputy of
Island Supervisor, called for changes to Air Jamaica's board of
directors, Radio Jamaica reports.

Mr. Valentine emphasized that Air Jamaica's management must also
be restructured.

The changes are needed for Air Jamaica to remain viable, Radio
Jamaica says, citing Mr. Valentine.

"What we need to do is run Air Jamaica like a corporate company
and get rid of some of the deadwood.  I believe that the present
management structure needs to be sorted out and we need to take
a serious look at some members of the board to ensure that
certain level of politics, organizational politics does not
exist in Air Jamaica," Mr. Valentine told Radio Jamaica.

The current board headed by O.K. Melhado was set up in 2005,
Radio Jamaica relates.

According to Radio Jamaica, the International Monetary Fund has
suggested that the Jamaican government may have to close down
Air Jamaica if it continues to incur losses.

The union is against Air Jamaica's divestment, Mr. Valentine
told Radio Jamaica.

                        *    *    *

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


DYOLL INSURANCE: Ministry Not Fulfilling Interim Payment
--------------------------------------------------------
Jamaican coffee farmers who insured their crops with Dyoll
Insurance Company and suffered losses resulting from Hurricane
Ivan alleged that the nation's Ministry of Agriculture and Lands
are backing off on its promise to give them with over US$85
million interim insurance payment, the Jamaica Gleaner reports.

Roger Clarke, the Minister of Agriculture and Lands, had
promised to provide farmers with about US$180 million.  However,
the ministry settled for much less than the farmers expected,
The Gleaner says, citing Derrick Simon -- a representative for
the Blue Mountain coffee farmers.

Mr. Simon told Farmers Weekly, "He (the minister) promised $180
million and then he said the money would have been delivered to
the Coffee Board on the 28th of July ... for payment by the end
of August.  But when the end of August came, the coffee farmers
who were expecting the US$180 million to be distributed among
them, they heard that the money dropped to US$85 million so
there was a shortfall of US$95 million."

The Gleaner notes that Mr. Simon said this has had a significant
impact on the farmers' plans to revitalize their coffee
holdings.

Mr. Simon told The Gleaner that some farmers received payment;
others got nothing due to lack of information or they were not
qualified for any payment.

As much as 40% of the almost 6,000 claims has been referred for
appeal as there were discrepancies with the method of
computation used to determine the amount of money each farmer
would receive, The Gleaner states, citing Mr. Simon.

The Financial Services Commission of Jamaica took over control
of Dyoll Insurance in Mar. 7, 2005, in order to establish the
true position of the Company, address the matter of settlement
to its claimants and ensure that its policies will remain in
force after a high level of insurance claims were levelled on
the company as a result of the hurricane Ivan.  Kenneth Tomlison
was appointed temporary manager.  Jamaica's Supreme Court
ordered for the distribution of a US$653 million fund held by
the FSC in accordance with the Insurance Act 2001, section
59, which says that the prescribed deposit, on the winding up of
an insurance company, should be applied first to settle the
claims of local policyholders.


SUGAR COMPANY: IMF Recommends Shutting Down of Company
------------------------------------------------------
The International Monetary Fund recommended that the Jamaican
government should consider closing down the Sugar Company of
Jamaica in favor of tourism-drive agriculture, to ease the
strain on the national budget, the Jamaica Gleaner reports.

According to The Gleaner, IMF considered the Sugar Company as a
loss-making state enterprise.

IMF admitted to The Gleaner that the Sugar Company's situation,
compared to that of Air Jamaica, was more difficult.

The Gleaner notes that Jamaica is losing preferential markets
for sugar in Europe.  EU states, under pressure at the World
Trade Organization, are decreasing the price they pay to
domestic producers, "to which imports from nations like Jamaica
are indexed".

The Sugar Company has lost almost J$6 billion over the past two
fiscal years and projects to lose another three-quarter billion
this fiscal year, according to The Gleaner.  The Jamaican
government hopes to transform the industry into one that
produces sugar, rum and ethanol for export and as an additive
for gasoline.

The Gleaner relates that the government has put up its estates
for sale.

The government, says The Gleaner, estimated that it would cost
up to EUR556 million to revamp and re-orient the sugar industry.

However, IMF told The Gleaner that the sources of funding have
not been clearly identified.  IMF doubted that the reform is
achievable in the context of Jamaica's pricing structure.

"Fundamentally ... given the current cost-price structure, it is
difficult to see Jamaica becoming globally competitive in
sugarcane farming, suggesting that diversifying from sugar into
other case-based products (rum, ethanol, power-co-generation)
may not be cost effective.  There appeared, on the other hand,
significant potential for rural areas to help supply the rapidly
expanding hotel sector with local produce.  This suggested that
the priority should be on helping sugarcane farmers make the
transition to other activities, while also ensuring that a
social safety net continues to exist," a report says, citing
IMF.

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


SUGAR COMPANY: Says IMF's Suggestion of Closure Lacks Substance
---------------------------------------------------------------
Vincent Morrison, the director of the Sugar Company of Jamaica
and a trade unionist, told Radio Jamaica that the suggestion of
the International Monetary Fund aka IMF to close down the sugar
industry lacked substance.

According to Radio Jamaica, Mr. Morrison is positive that the
proposed diversification plan is the best option for the sugar
industry.

Based on the decline in the sugar industry, diversification is
the only way out for farmers, Radio Jamaica notes, citing
Anthony Johnson -- Opposition Spokesperson on Agriculture.

However, the IMF told Radio Jamaica that it is against a plan to
diversify the sugar industry into cane-based activities like
ethanol and co-generation.  IMF said that the diversification
won't be cost-effective.

Focus should instead be placed on helping cane farmers make the
transition to other activities, Radio Jamaica says, citing IMF.

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


* JAMAICA: Country Is Recovering Well According to IMF Report
-------------------------------------------------------------
The International Monetary Fund said that Jamaica's economy is
gradually recovering from shocks, particularly the natural
disasters experienced over the past two years.

The nation's gross domestic product since 2004 was adversly
affected by natural disasters, which caused a sharp increase in
inflation that was reflected in higher agricultural prices and
larger oil import costs.  But by the end of 2005, the economy
rebounded.

During the fourth quarter of 2005, however, real GDP grew by 2.4
per cent, boosting growth for the calender year to 1.4 per cent,
up from 0.9 per cent in 2004.  Headline inflation stood at 8.5
per cent in May 2006 compared to 19 per cent in Sept. 2005.

IMF noted the progress being made in reducing high debt but at a
slower past than expected which was in part, to wider-than-
anticipated budget deficits as well as slower growths.

Budget outcomes for the past two fiscal years have not met
expectations-including that of balancing the budget in fiscal
year 2005/2006-mainly on account of lower-than-anticipated
revenue collections.

In view of the high debt, the mission viewed the recovering
economy as providing an opportunity to aim for a more ambitious
objective.

The IMF recommended taking both revenue and expenditure
measures.  They noted that by international standards, Jamaica's
primary surplus remains extraordinarily high and that the
important point was that the overall deficit was expected to
continue to improve, by close to one per cent of GDP relative to
the fiscal year 2005/2006 outturn.




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


BANCO MERCANTIL: Merges with Banco del Centro
---------------------------------------------
Banco Mercantil del Norte aka Banorte said in a filing with the
Mexican stock exchange that it has merged with Banco del Centro
aka Bancentro, Business News Americas reports.

Banorte and Bancentro form part of Grupo Financiero Banorte,
which reported assets of about COP204 billion as of June 30.

BNamericas relates that shareholders of Banorte and Bancentro
agreed on the merger in August, with Banorte absorbing
Bancentro.

According to the report, Banorte's capital increased by CO7.00
billion.  Grupo Financiero has prepared a share swap, which will
be on Sept. 25.

Statistics of CNBV -- Mexico's banking regulator -- indicate
that Banorte held about COP194 billion in assets and some COP118
billion in loans as of June 30, BNamericas says.

BNamericas notes that Bancentro posted COP7.39 billion in assets
and a loan book of about COP4.43 billion at the end of June.

The merger with Bancentro will give Banorte an asset share of
8.1% and loan market share of 9.1%, BNamericas states.

                        *    *    *

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

Grupo Financiero Banorte and Banco Mercantil del Norte:

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

Fitch said the Ratings Outlook is Stable.

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

These ratings were affirmed:

   GFNorte

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

   Banorte

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


EMPRESAS ICA: To Implement Changes on Corporate Governance
----------------------------------------------------------
Empresas ICA, S.A.B. de C.V. disclosed that the extraordinary
and ordinary Shareholders' Meeting on Sept. 12, 2006, approved
comprehensive changes to its bylaws, including the separation of
the positions of Board Chairman and Chief Executive Officer.
The Shareholders' Meeting also elected the members of the new
Board of Directors, the Audit Committee, and the Corporate
Governance Committee, and ratified the designation of the
independent members of the Board.

The Shareholders' Meeting approved the comprehensive
modification of the bylaws in accordance with the requirements
of the new Capital Markets Law.  One of the changes is the
designation of the company as a Sociedad Anonima Bursatil, or
publicly-listed corporation, which is indicated by adding
"Bursatil" or the initial "B."  to the corporate name: Empresas
ICA Sociedad Anonima Bursatil de Capital Variable, or Empresas
ICA, S.A.B. de C.V.

Empresas ICA -- http://www.ica.com.mx/-- the largest
engineering, construction, and procurement company in Mexico,
was founded in 1947.  ICA has completed construction and
engineering projects in 21 countries.  ICA's principal business
units include civil construction and industrial construction.

Through its subsidiaries, ICA also develops housing, manages
airports, and operates tunnels, highways, and municipal services
under government concession contracts and/or partial sale of
long-term contract rights.

                        *    *    *

Standard & Poor's assigned these ratings to Empresas ICA, with
stable outlook:

   -- LT Foreign Issuer Credit B; and
   -- LT Local Issuer Credit B.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 23, 2006, Standard & Poor's Ratings Services revised its
long-term corporate credit rating on Empresas ICA S.A. de C.V.
to 'BB-' from 'B'.  The ratings were removed from CreditWatch
Positive, where they were placed on April 7, 2006.  The outlook
is stable.


FORD MOTOR: Eyes US$5B Cost Cuts in Accelerated Turnaround Plan
---------------------------------------------------------------
Ford Motor Company disclosed Friday plans to further reduce its
capacity and work force, and ramp up new product introductions
as it accelerates its North America "Way Forward" turnaround
plan.

Ford will cut its North American salaried-related work force by
about a third and offer buyout packages to all Ford and
Automotive Components Holdings hourly employees in the U.S.  The
reductions will contribute significantly to reducing ongoing
annual operating costs by about US$5 billion.  In addition, Ford
will renew 70% of its North American product lineup by volume by
the end of 2008.

"These actions have painful consequences for communities and
many of our loyal employees," said Bill Ford, the company's
executive chairman.  "But rapid shifts in consumer demand that
affect our product mix and continued high prices for commodities
mean we must continue working quickly and decisively to fix our
business.  Mark Fields and his team deserve credit for the
accelerated Way Forward strategy, which puts us on an even
faster product-driven path to success.

"Alan Mulally's experience in turning around a major industrial
company will help guide the implementation of these measures as
he assumes leadership of the company," Mr. Ford continued.  "The
actions we announced [fri]day -- coupled with the North American
production cuts we announced last month, the strategic
alternatives we are considering for Aston Martin and a push for
greater progress from our operating units and brands around the
world -- are part of a series of actions that Alan and our
entire global team will be taking to put the company on a path
to sustained profitability and success."

Mr. Mulally, whose appointment as CEO and President of Ford was
announced last week, echoed support for the Way Forward plan and
for the team leading the company's North American turnaround.

"The steps we are announcing [fri]day are clearly needed to
ensure the ultimate turnaround of the business in Ford's biggest
and most important market," Mulally said.  "Although the process
has been under way for months, I have had a chance to review
these actions and am convinced that they provide the sound,
product-led underpinnings and cost reductions we will need to
achieve our goals.  I look forward to helping with the
implementation.

"Turnarounds of this magnitude succeed when capacity and costs
are aligned with a realistic expectation of demand," Mr. Mulally
continued.  "These actions are certainly consistent with that
goal.  We will focus intensely on the needs of our customers in
North America, and around the world, by pulling forward new
products and creating new markets.  We are a team united by a
shared vision to build the best automobiles in the world at Ford
Motor Company."

Mark Fields, Ford's President of The Americas, said the Way
Forward plan will continue to focus every part of the business
on the customer -- building stronger Ford, Lincoln and Mercury
brands; strengthening the company's North American product
lineup; improving quality, and accelerating progress on
productivity and competitive costs.

"The fundamentals of our Way Forward plan have not changed, but
our timetable has changed dramatically," said Mr. Fields.
"We've taken a sobering look at the industry and our own
business, and the entire team in North America has a renewed
sense of urgency and a clear view of what it will take to
position this business for profitability.

"We know our decisions bring more pain to the business in the
short-term, and they require sacrifice from our employees, labor
unions, dealers and suppliers," he added.  "But, together, we
are building a much stronger Ford Motor Company and a more
secure future for us all."

Mr. Fields said the team will continue to push to move further
and faster throughout the business.

"Our work is far from over.  We recognize that the competitive
landscape and cost pressures have significantly challenged our
traditional business model, and that recognition is driving more
investment in small cars and crossovers, even as we continue to
position ourselves to remain the truck leader," Mr. Fields said.
"We will remain quick and decisive in executing our Way Forward
plan and flexible in reacting to changing conditions in the
future."

Market share declines, reflecting primarily segment shifts, and
higher-than-planned raw material costs will mean full-year
profitability for Ford's North American auto operations is not
expected before 2009.

"Clearly, we could have cut product programs and maintained our
goal of North American profitability in 2008," Fields said.
"But, even as we further reduce our costs and capacity and make
tough-but-necessary decisions throughout our business, we cannot
and will not retreat from the critical investments to deliver
the right products for our customers."

Actions to be implemented by the end of 2008 and resulting
financial impact if the revised North America Way Forward
turnaround plan include:

Product-Led Turnaround:

70% of Ford, Lincoln and Mercury products by volume will be new
or significantly upgraded starting Friday through the end of
2008.  The new lineup builds on Ford's strength as America's
truck leader while expanding in growth segments, such as
crossovers.

Ford will introduce an all-new full-size crossover based on the
Ford Fairlane concept.  The seven-passenger vehicle for modern
families goes on sale in 2008 and will be produced at Ford's
Oakville (Ontario, Canada) Assembly Plant.

Ford will continue to lead the American truck market with a new
Super Duty pickup confirmed to go on sale in early 2007 and an
all-new F-150 pickup confirmed to go on sale in 2008.  The
vehicles boast powertrain, design and feature upgrades.

Ford will continue to lead America's sports car market with new
Mustang derivatives each year.

The new Lincoln MKS flagship sedan will go on sale in 2008 -
packed with more technology and features than any prior Lincoln,
including all-wheel drive.  Current plans are to produce the
vehicle at the company's Chicago Assembly Plant.

Lincoln will continue offering the Lincoln Town Car to meet
ongoing demand.  After assembly ends at Ford's Wixom (Mich.)
Assembly Plant in 2007, Ford intends to move Town Car production
to Ford's St. Thomas (Ontario, Canada) Assembly Plant.  St.
Thomas will be reduced to one shift of production, as previously
announced.

Product development work is intensifying through 2008 on
creating new small cars and even more crossovers that will go on
sale in the future.  These vehicles will be based on the
company's global vehicle architectures, including "B" and "C"
platforms not presently used in North America.

Major investments continue in new gasoline, flexible-fuel,
diesel, hydrogen and hybrid powertrains, including additional
E-85 ethanol-powered and hybrid vehicles on the road by the end
of 2008.  In addition, two out of every three Ford, Lincoln and
Mercury vehicles will be offered with fuel-saving 6-speed
transmission technology by the end of 2008.

The new products and a voluntary consolidation of the Ford and
Lincoln Mercury dealer network are designed to significantly
improve the dealers' through-put and profitability by the end of
2008.

Accelerated Cost Savings, Leaner Structure:

Compared with 2005, annual operating costs will be reduced by
about US$5 billion by the end of 2008.

Salaried-related costs will be reduced through the elimination
of the equivalent of about 14,000 salaried-related positions,
which represents approximately a third of Ford's North American
salaried work force.  The reduction includes the equivalent of
4,000 positions eliminated in the first quarter of 2006.  The
additional reductions will be achieved through early
retirements, voluntary separations and, if necessary,
involuntary separations - with most employees expected to depart
by the end of the first quarter in 2007.

An agreement with the UAW will expand early retirement offers
and separation packages to all Ford U.S. hourly employees,
including Ford employees at the company's ACH plants.  Employees
will begin receiving details by mid-October, and those accepting
offers will leave the company by September 2007.

Ford will accelerate by four years its previously announced goal
of reducing 25,000 to 30,000 North American manufacturing
employees by the end of 2012.  The reductions now will be
completed by the end of 2008.

The sale or closure of all ACH facilities by the end of 2008
will result in additional employee reductions.

Ford continues to work with the UAW to improve the
competitiveness of its U.S. manufacturing facilities.  As a
result, new competitive operating agreements have been ratified
by UAW locals in 30 different U.S. Ford and ACH facilities - and
nearly US$600 million in annual savings is projected to be
realized.

Capacity Further Aligned with Consumer Demand

North America manufacturing capacity is being adjusted to
3.6 million units by the end of 2008, down 26% versus 2005 -- in
line with consumer demand and as announced earlier.  Nine
facilities will be idled and cease production through 2008,
including seven already announced.  The two additional plants
are the Maumee (Ohio) Stamping Plant and the Essex (Ontario,
Canada) Engine Plant.

Ford's Norfolk (Va.) Assembly Plant will be idled a year earlier
than planned, and a shift reduction, in advance of idling the
facilities, now is planned at Norfolk and Twin Cities (Minn.)
Assembly.

Facilities affected by the end of 2008 include the following:

    * Atlanta Assembly - to be idled in October 2006

    * Batavia Transmission - to be idled in 2008

    * Essex Engine - to cease operations in 2007

    * Maumee Stamping - intended to be idled in 2008

    * Norfolk Assembly - to be idled in 2007, a year earlier
      than previously planned, with a shift reduction planned in
      January 2007

    * St. Louis Assembly - already idled in March 2006

    * Twin Cities Assembly - to be idled in 2008, with a shift
      reduction planned in 2007

    * Windsor Casting - to be idled in 2007

    * Wixom Assembly - to be idled in 2007

    * Dearborn Truck Plant will add a third crew, beginning in
      2007, for F-150 truck production.

All ACH operations will be sold or closed by the end of 2008.
Including Maumee Stamping and Essex Engine, Ford has announced
plans to cease production at 16 North American manufacturing
facilities by the end of 2012, including seven assembly plants.

Financial Impact

"Though North America's return to profitability will take longer
than planned, the actions we're taking are the right ones, and
are fundamental and necessary steps to improving our business
structure," said Mr. Don Leclair, the company's Chief Financial
Officer.  "The planned improvements in our auto operations, in
conjunction with Ford Credit - which remains a core asset - will
leave us well-positioned for the future.

"We are starting from a position of strong liquidity, including
our cash, credit lines and VEBA," Mr. Leclair added.  "We will
continue to focus on enhancing our liquidity, building upon our
decision to explore strategic alternatives for Aston Martin and
the board's intent to eliminate our quarterly dividend."

Automotive Operations

Full-year pre-tax special items for 2006 are expected to be
significantly increased from the US$3.8 billion estimated
previously to reflect the accelerated Way Forward actions.
Further details will be provided when Ford announces Third
Quarter financial results next month.

Full-year profitability in North American automotive operations
not expected before 2009.

Ford and Lincoln Mercury U.S. market share is projected to be in
the low-16% range at the end of 2006.

A further share decline is expected as production of the Ford
Taurus sedan and Mercury Monterey minivan ends in 2006 and
production of the Ford Freestar minivan ends in 2007.  The end
of these vehicles will reduce the company's sales to daily
rental fleets.

With the investment in new products and improvements in quality,
Ford expects to be in the 14 to 15% market share range going
forward - with a focus on profitable retail share.  South
America and Ford of Europe still are expected to be solidly
profitable in 2006.  However, full-year operating losses now are
expected in 2006 for Asia Pacific and Africa, as well as the
Premier Automotive Group - primarily reflecting lower volumes.

Liquidity

Ford Motor Company's 2006 year-end liquidity is expected to
include automotive gross cash of about US$20 billion, including
marketable and loaned securities and the effects of US$3.4
billion of VEBA.  The company will continue to have committed
automotive credit facilities totaling more than US$6 billion .

Ford Motor Company's Board indicates that it will suspend
payment of the quarterly dividend on its common and Class B
Stock beginning in the fourth quarter of 2006.

                      About Ford Motor

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

                        *    *    *

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

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

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

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


FORD MOTOR: To Use BUNKSPEED Software in Product Design & Dev't
---------------------------------------------------------------
Ford Motor Company has selected BUNKSPEED software to be
implemented globally in the product design and development
process.  The initial agreement for 150 licenses of software for
Ford and all its subsidiaries including Volvo, Land Rover,
Jaguar, Aston Martin as well as Mazda, is expected to grow
significantly as deployment is completed.

Ford chose BUNKSPEED because it needed an open and ease-to-use
system that allows the design and development team to uniquely
visualize many concepts or themes in real-time, in motion, and
in a variety of environments and simulated natural light.  In
addition, BUNKSPEED solutions easily and effectively support
collaborative design reviews across multiple locations.

According to Ford Motor Company, "The speed and accuracy
delivered via the BUNKSPEED system, which is used in studios
that design Ford, Lincoln, Mercury, Jaguar and Volvo products,
translate into significant time saved in the design process.
Designers can also share information quicker."

Since its foundation in 2002, BUNKSPEED has been working closely
with Ford and the Premier Automotive Group.  The overall
capabilities and ease-of-use of BUNKSPEED's solutions have
compelled many design departments in the industry to rethink
their design development workflow.  By reducing the dependencies
on physical prototypes, companies are finally realizing
significant cost savings throughout their design processes.

"BUNKSPEED is proud to work closely with a forward thinking
company like Ford, and we're very pleased that our solutions are
having such a positive impact on Ford's vehicle design
programs," said Philip Lunn, founder and CEO of BUNKSPEED.
"This is perhaps the largest implementation of pure
visualization software in recent history and is a win for both
companies.  Our expanded relationship will allow us to work
together on new projects that will further help Ford excel -- in
its design, as well as its overall product development process."

The software has shipped during Q3 of BUNKSPEED's fiscal year
2006, and is available immediately for deployment.

                       About BUNKSPEED

Headquartered in Los Angeles, California, BUNKSPEED is a leading
global provider of visualization software and services for
design, engineering and marketing.  The company is advancing
visualization by developing paradigm shifting technologies for
decision making in the digital design process, as well as
bridging the gap between design, engineering and marketing.
BUNKSPEED's customers include Nissan, Ford Motor Company, Volvo,
Jaguar, Aston Martin, Land Rover, and Pininfarina.

                      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: Three Firms Eye Power Generation Project
------------------------------------------------------
Juan Rebolledo -- the vice president of Grupo Mexico SA de CV
-- told Business News Americas that three firms have shown
interest in the company's 450-megawatt coal-fired power
generation project.

The names of the companies could not be disclosed due to
confidentiality requirements, BNamericas says, citing Mr.
Rebolledo.

BNamericas relates that Mr. Rebolledo said the plant is a long-
term project.  A decision on whether it will proceed or not is
expected in 2007.

Mr. Rebolledo told BNamericas that although CRE -- Mexico's
energy regulator -- has ratified the project, the project still
needs the implementation of CFE -- the Mexican state power firm
-- still must due to legal aspects related to electricity
transmission across states.

The project's basic engineering work is being drafted and that
an economic feasibility study is underway, BNamericas notes,
citing Mr. Rebolledo.

According to the report, Mr. Rebolledo said that the plant could
be built in:

       -- Coahuila,
       -- Chihuahua, and Sonora.

BNamericas underscores that the project is part of Grupo
Mexico's plans to decrease power supply costs through self-
supply.  The firm uses up to 400 megawatts.

Grupo Mexico's coalmines would supply the project, lessening
costs, Mr. Rebolledo told BNamericas.

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

                        *    *    *

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

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


MERIDIAN AUTOMOTIVE: Posts US$22.2 Million Net Loss in July 2006
----------------------------------------------------------------

             Meridian Automotive Systems - Composites
                 Operations, Inc. and Subsidiaries
               Unaudited Consolidated Balance Sheet
                       As of July 31, 2006
                         (In US$ Thousands)

CURRENT ASSETS:
    Cash                                                      -
    Accounts receivable, net                            $75,937
    Intercompany receivable                              15,152
    Inventories                                          65,056
    Tooling costs in excess of billings and others       31,716
                                                     ----------
       TOTAL CURRENT ASSETS                             187,861
                                                     ----------
    Property, plant and equipment, net                  216,341
    Intangible assets                                    15,230
    Investment in subsidiaries                           23,863
    Other assets                                         11,568
                                                     ----------
       TOTAL ASSETS                                    $454,863
                                                     ==========

CURRENT LIABILITIES NOT SUBJECT TO COMPROMISE:
    Current portion of long term debt                  $343,389
    Accounts payable                                     46,164
    Accrued expenses                                     43,168
    Tooling billings in excess of costs                   5,725
                                                     ----------
       TOTAL CURRENT LIABILITIES                        438,446
                                                     ----------

    Liabilities subject to compromise                   492,641

    Non-Current Liabilities Not Subject to Compromise:
       Other long-term liabilities                        8,934
       Accumulated post-retirement benefit obligation    23,600
                                                     ----------
       TOTAL LIABILITIES                                963,621
       SHAREHOLDERS' EQUITY                            (508,758)
                                                     ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY             $454,863
                                                     ==========


              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
                 Unaudited Statement of Operations
                         July 1 to 31, 2006
                           (In Thousands)

Net sales                                               $42,156
Cost of sales                                            48,486
                                                     ----------
Gross profit                                             (6,330)

Selling, general and administrative expenses              2,445
Restructuring charges                                     2,189
                                                     ----------
Operating income (loss)                                 (10,964)

Interest expense, net                                     8,976
Other (expense) income                                       (2)
Chapter 11 and related reorganization items               2,295
                                                     ----------
Loss before provision for income taxes                  (22,233)
(Benefit) Provision for income taxes                         14
                                                     ----------
NET LOSS                                               ($22,247)
                                                     ===========


              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
                 Unaudited Statement of Cash Flows
                         July 1 to 31, 2006
                           (In Thousands)

OPERATING ACTIVITIES:
    Net loss                                           ($22,247)
    Adjustments required to reconcile net loss to net
     cash provided by (used in) operating activities:
       Depreciation, amortization, and impairment         4,441
       Change in working capital and other operating
        items                                             2,445
                                                     ----------
     Net cash provided by (used for) operating
      activities before reorganization items            (15,361)
                                                     ----------
     Operating cash flows from reorganization items:
        Chapter 11 and related reorganization items       2,295
        Payments on Chapter 11 and related reorg items     (856)
                                                     ----------
     Net cash provided by Chapter 11 and related
      reorg items                                         1,439

     Net cash provided by (used for) operating
      activities                                        (13,922)

INVESTING ACTIVITIES:
    Additions to property and equipment                  (1,678)
    Proceeds from sale or property and equipment              -
                                                     ----------
    Net cash used for investing activities               (1,678)
                                                     ----------

FINANCING ACTIVITIES:
    Proceeds from prepetition borrowings                      -
    Repayments of prepetition borrowings                      -
    Proceeds from DIP credit facility                    37,400
    Repayments of DIP credit facility                   (21,600)
    Repayments on prepetition long-term debt                  -
    Deferred financing costs capitalized                   (200)
                                                     ----------
Net cash (used for) provided by financing activities     15,600
                                                     ----------
Net increase (decrease) in cash                               -
                                                     ----------
Cash and Cash Equivalents, beginning of period                -

Cash and Cash Equivalents, end of period                      -
                                                     ==========

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens.  When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc. http://bankrupt.com/newsstand/or 215/945-7000).


PORTRAIT CORP: U.S. Trustee Names Four-Member Creditors' Panel
--------------------------------------------------------------
Diana G. Adams, the acting United States Trustee for Region 2,
appointed four creditors to serve on an Official Committee of
Unsecured Creditors in Portrait Corporation of America, Inc.,
and its debtor-affiliates' Chapter 11 cases:

     1. SAB Capital Management, L.P.
        Attn: Norman Louie
        712 Fifth Avenue, 42nd Floor
        New York, NY 10019
        Tel. No.: (212) 457-8064

     2. AIG Global Investment Group
        Attn: James B. Roberts
              Vice President
        70 Pine Street
        New York, NY 10270
        Tel. No.: (212) 770-7876

     3. Whippoorwill Associates, Inc.
        Attn: Roger Tjong Tjin Tai
        11 Martine Avenue
        White Plains, NY 10606
        Tel. No.: (914) 683-1002

     4. Wilmington Trust FSB
        Attn: James J. McGinley
              Managing Director
        520 Madison Avenue, 33rd Floor
        New York, NY 10022
        Tel. No.: (212) 415-0522

Official creditors' committees have the right to employ legal
and accounting professionals and financial advisors, at the
Debtor's expense.  They may investigate the Debtor's business
and financial affairs.  Importantly, official committees serve
as fiduciaries to the general population of creditors they
represent.  Those committees will also attempt to negotiate the
terms of a consensual chapter 11 plan -- almost always subject
to the terms of strict confidentiality agreements with the
Debtors and other core parties-in-interest.  If negotiations
break down, the Committee may ask the Bankruptcy Court to
replace management with an independent trustee.  If the
Committee concludes reorganization of the Debtor is impossible,
the Committee will urge the Bankruptcy Court to convert the
Chapter 11 cases to a liquidation proceeding.

                    About Portrait Corp.

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

Portrait Corporation and its debtor-affiliates filed for Chapter
11 protection on Aug. 31, 2006 (Bankr S.D. N.Y. Case No.
06-22541).  John H. Bae, Esq., at Cadwalader Wickersham & Taft
LLP, represents the Debtors in their restructuring efforts.
Berenson & Company LLC serves as the Debtors' Financial Advisor
and Investment Banker.  At June 30, 2006, the Debtor had total
assets of US$153,205,000 and liabilities of US$372,124,000.


SATELITES MEXICANOS: Judge Drain Okays Tax Obligations Payments
---------------------------------------------------------------
The Honorable Robert D. Drain, of the U.S. Bankruptcy Court for
the Southern District of New York, authorized Satelites
Mexicanos, S.A. de C.V., in its sole discretion, to pay all
Taxes and Regulatory Fees in the ordinary course of business,
including all those Taxes and Regulatory Fees subsequently
determined upon audit to be owed for periods prior to the
Debtor's filing for chapter 11 protection, to the proper Taxing
or Regulatory Authorities.

The Court directs all applicable Banks to:

   (a) receive, process, honor, and pay any and all checks or
       electronic transfers drawn on the Debtor's accounts to
       pay the Taxes and Regulatory Fees, whether those checks
       were presented prior to or after the Petition Date,
       provided that sufficient funds are available in the
       applicable accounts to make the payments; and

   (b) rely on the Debtor's representations as to which checks
       or electronic transfers are permitted to be paid.

The Banks will have no liability to any party for relying on the
Debtor's directions.

Nothing in the Motion or Order will be construed as impairing
the Debtor's right to contest the validity or amount of any
Taxes or Regulatory Fees that may be due to any Taxing or
Regulatory Authorities, Judge Drain adds.

                 About Satelites Mexicanos

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

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

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

On Aug. 4, 2005, Satmex filed a petition, pursuant to Section
304 of the Bankruptcy Code to commence a case ancillary to the
Concurso Proceeding and a motion for injunctive relief seeking,
among other things, to enjoin actions against Satmex or its
assets (Bankr. S.D.N.Y. Case No. 05-16103).  (Satmex Bankruptcy
News, Issue No. 5; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


SATELITES MEXICANOS: Gets Court Final Nod to Use Cash Collateral
----------------------------------------------------------------
The Honorable Robert D. Drain, of the U.S. Bankruptcy Court for
the Southern District of New York, granted Satelites Mexicanos,
S.A. de C.V., final authority to use the Cash Collateral of
Citibank, N.A., as trustee for the Senior Secured Noteholders,
to operate its business in the ordinary course, which includes
paying its actual, necessary, ordinary course operating expenses
pursuant to Section 363(c)(2) of the Bankruptcy Code.

The Debtor is authorized to provide postpetition, replacement
and additional security interests and liens to Citibank for and
solely to the extent of, any diminution in the value of the
Prepetition Collateral.  Citibank's Postpetition Collateral,
however, will not include any avoidance actions, with the
exception of actions brought pursuant to Section 549 of the
Bankruptcy Code to recover any postpetition transfer of the
Postpetition Collateral or proceeds of the Section 549 actions.

Except to the extent of the US$2,000,000 Carve-Out, Judge Drain
rules that no expenses of administration of the Chapter 11 case
or any future proceeding, including liquidation in bankruptcy or
other proceedings under the Bankruptcy Code, will be charged
against or recovered from Citigroup's Collateral without its
prior written consent.

A full-text copy of the Final Cash Collateral Order is available
at no charge at http://ResearchArchives.com/t/s?11a9

                About Satelites Mexicanos

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

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

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

On Aug. 4, 2005, Satmex filed a petition, pursuant to Section
304 of the Bankruptcy Code to commence a case ancillary to the
Concurso Proceeding and a motion for injunctive relief seeking,
among other things, to enjoin actions against Satmex or its
assets (Bankr. S.D.N.Y. Case No. 05-16103).  (Satmex Bankruptcy
News, Issue No. 5; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


TV AZTECA: Will Settle Fraud Charges with US Securities Agency
--------------------------------------------------------------
The US Securities and Exchange Commission told the Associated
Press that TV Azteca SA de CV and Ricardo Salinas Pliego and
Pedro Padilla Longoria -- its executives -- agreed to settle
fraud charges.

Mr. Salinas founded TV Azteca and owns most of its shares.  Mr.
Padilla was the chief executive of the firm from 2001 to 2004.

According to AP, the settlement calls for Messrs. Salinas and
Padilla to pay over US$8.5 million in fines and allegedly ill-
gotten gains.  The settlement still needs court approval.

Fines and other money Messrs. Salinas and Padilla pay will be
used to compensate investors who were harmed by the alleged
scheme, SEC told AP.

AP relates that Messrs. Salinas and Padilla also agreed to a
five-year ban on serving as officers or directors of a US public
firm, except under limited circumstances.

AP underscores that SEC filed a lawsuit against three current
and former executives of TV Azteca in January 2005, alleging
that they were involved in an elaborate scheme to hide related-
party deals between Unefon -- a TV Azteca unit -- and Codisco, a
private company that Mr. Salinas secretly co-owned.  According
to SEC, the secret deal brought in a US$109 million profit for
Salinas, who denied any connection to Codisco.  However, TV
Azteca issued in early 2004 a press release that confirmed that
Mr. Salina owned 50% of Codisco.

SEC told AP that TV Azteca, Grupo Elektra and Grupo Iusacell
reached separate settlements of administrative proceedings,
without admitting or denying the US securities regulators'
accusations.

Meanwhile, TV Azteca director Luis Echarte Fernandez settled
with the SEC last year, agreeing to pay US$200,000 fine, AP
notes.  As reports of the Codisco dealings appeared in the US
press in 2003, the SEC said Mr. Echarte sent an e-mail to
Messrs. Salinas and Padilla saying, "The situation that we
didn't want to explain openly is now in the hands of the
public."

TV Azteca is one of the two largest producers of Spanish-
language television programming in the world, operating two
national television networks in Mexico -- Azteca 13 and Azteca 7
-- through more than 300 owned and operated stations across the
country.  TV Azteca affiliates include Azteca America Network, a
new broadcast television network focused on the rapidly growing
US Hispanic market, and Todito, an Internet portal for North
American Spanish speakers.

                        *    *    *

Moody's Investor Services rated TV Azteca's senior unsecured
debt at B1.


* MUNICIPALITY OF NOGALES: Moody's Puts Ba2 Global Curr. Rating
---------------------------------------------------------------
Moody's has assigned issuer ratings of A2.mx (national scale of
Mexico) and Ba2 (global scale, local currency) to the
Municipality of Nogales, Sonora.  The ratings take into account
the municipality's balanced financial performance, sustained
growth of own-source revenues and an active regional economy.
The analysis also considers the municipality's

   -- narrow operating margins,
   -- weakened liquidity position, and
   -- a contingency posed by the borrowing plans of the
      municipally owned water system.

The municipality's financial results over the past five years
have been somewhat uneven, as it recorded financing surpluses
averaging 7% of revenues in three years when capital spending
was limited, and deficits that did not exceed 2% of revenues in
the other two years.  Operating margins, although narrow (6% of
revenue in 2005), remained positive throughout the five-year
period.

The municipality's own-source revenues have been growing at a
good pace, rising from 27% of the total in 2003 to 31% in 2005.
This reflects gains achieved in tax collections, especially for
property and title transfer taxes.  Also strengthening the
municipality's own-source revenues is the significant income
-- an amount roughly equal to property tax collections -- that
Nogales receives from the Nogales Industrial Park Operating
Trust.

Nogales' year-end liquidity position (cash and equivalents, less
current liabilities) turned negative in 2005, in an amount equal
to about one month's revenue collections, following four years
of a weakening trend.

The municipality's debt represents a moderate burden.  At the
end of 2005 it owed MXN$50 million under a line of credit with
Banobras, equal to 19% of that year's revenues.  The
municipality has signed a refinancing agreement with Banobras
and, under the new loan terms, we estimate that debt service on
the loan -- the municipality's only direct debt -- will be less
than 2% of annual revenues in 2007 and 2008, a moderate level.

Later this year the municipal water system, OOMAPAS, expects to
borrow MXN$100 million from the North American Development Bank
for water infrastructure.  The loan is payable over 20 years and
carries a guarantee from the municipal government.  OOMAPAS'
financial performance has been acceptable, with balanced
results.  If we include the OOMAPAS borrowing, Nogales's total
debt at the end of 2006 would grow to 48% of its budgeted
income.  The increased level may constrain new borrowings in the
immediate future.  However, even if OOMAPAS fails to reimburse
the municipality for debt payments made on its behalf, the
municipality's total debt service would absorb 3% of its
revenues in 2006 and rise to a still-manageable 5% in 2007, once
the grace period on principal payments ends.

Located in the northern part of the State of Sonora and
bordering the State of Arizona (U.S.A.), the municipality of
Nogales boasts a dynamic economy, driven by industry. It is
estimated that the population in Nogales exceeded 193,000
habitants in 2005.

Moody's issuer ratings are opinions of the ability of entities
to honor their senior unsecured financial obligations, that is,
without incorporating credit support derived from the use of
federal revenue-sharing (participaciones) or other resources as
collateral.  Moody's will later assign ratings (Mexico National
Scale) evaluating the additional credit support provided to the
municipality's borrowings by such collateral guarantees or trust
agreements, as these are developed.

Moody's Mexico National Scale ratings are opinions of the
relative creditworthiness of issuers and issues within Mexico.
The Moody's Global Scale rating for borrowings in local currency
allows investors to compare the state's creditworthiness to
other issuers worldwide, rather than solely in Mexico. It
incorporates all Mexico-related risks, including the potential
volatility of the Mexican economy.  For comparative purposes,
Moody's Global Scale, local currency rating for domestic debt
issued by the Mexican government is Baa1.




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


* PANAMA: Banking Sector Posts US$404MM First Half Net Profits
--------------------------------------------------------------
Banking regulator statistics show that consolidated net profits
of the domestic banking industry of Panama increased 31.5% to
US$404 million in the first half of 2006, from US$307 million in
the same period in 2005, Business News Americas reports.

Leonardo Bravo, Standard & Poor's (S&P) financial institutions
associate director, told BNamericas that net interest income
increased 18% to US$681 million in the first half of 2006,
compared with the same period in 2005.

Strong competition among banks has decreased lending rates,
putting downward pressure on banks' net interest income,
BNamericas says, citing Mr. Bravo.  The fierce competition is
expected to continue within the next months, partly due to the
upcoming takeover of Banistmo by UK banking group HSBC.

The banking sector posted these results for the first half of
2006:

       -- revenues from fees and other sources rose 21% to
          US$353 million;

       -- costs, including administrative, general and
          depreciation expenses, grew 22% to US$623 million;

       -- net loans increased 17% during the 12 months ending
          June 2006 to US$25.5 billion;

      -- deposits grew 13% to US$27.9 billion; and

      -- assets rose 16% to US$40.3 billion;

                        *    *    *

Fitch Ratings assigned these ratings on Panama:

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




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


* PARAGUAY: State Firm Will Offer GSM Service Soon
--------------------------------------------------
Omar Ramos -- the president of Paraguay's state-owned firm
Copaco -- told ABC that the firm will offer a GSM service in the
short term, becoming the fifth competitor in the mobile
telephony market.

The service is almost ready to be launched, Business News
Americas says, citing Mr. Ramos.

According to BNamericas, Copaco launched early this year a
limited mobile telephony service offering covering rural areas
of Paraguay where Copaco has no fixed line network.

Mr. Ramos explained to BNamericas that the Copaco aims to
increase penetration in the local telecommunications market.

BNamericas notes that Copaco will compete with:

      -- Telecel, a unit of Millicom International;
      -- Hola, which is backed by Japanese investors;
      -- Personal, Telecom Argentina's unit; and
      -- CTI Movil, a subsidiary of Mexico's America Movil.

BNamericas states that Mr. Ramos said the project is included in
the US$50-million investment plan for the period 2006-2008.  The
project includes expansion in fixed line telephony penetration.

Mr. Ramos told BNamericas, "We intend to expand our existing
technology by 80%, to increase our services and to reach
consumers with competitive prices."

The report underscores that Juan Gnius -- the vice president of
Signals Consulting -- is doubtful on a fixed line firm with
little experience in mobile telephony entering a small market
that already has four major players with a lot more financial
weight behind them.

"I think it's a very adventurous decision... Copaco has neither
the technological nor investment capacity to compete with the
other operators that are doing things well," Mr. Gnius told
BNamericas.

                        *    *    *

Moody's assigned these ratings on Paraguay:

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

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

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




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


UNIVERSAL COMM: Unit Lists Solar Chargers for Sale on Amazon.com
----------------------------------------------------------------
Universal Communication Systems, Inc.' subsidiary Solar Style,
Inc., has listed its growing range of Solar Chargers and Solar
Powered Consumer Electronic Products for sale on AMAZON.COM.

Lori Thomas, director of sales, stated, "Our national
distribution network for all our Solar Chargers and Solar
Powered Consumer Electronic Products continues to grow daily.
Our sales people continue to pound the sidewalks and reach out
to wholesalers, distributors and retailers all over North
America.  In addition, we are very pleased to see the reports
coming in from many of the new retailers reporting the products
selling and moving off the shelves, and indeed already re-
ordering new product stock.  In addition, we have just
introduced several new exciting models, and expect to continue
to grow our market position and become the dominant player in
this new industry."

The company anticipates that both the national and global sales
for Solar Chargers and Solar Powered Consumer Electronic
Products will continue to grow at a very fast rate.

                     Going Concern Doubt

As reported in the Troubled Company Reporter on Jan. 19, 2006,
Reuben E. Price & Co. expressed substantial doubt about
Universal's ability to continue as a going concern after it
audited the Company's financial statements for the fiscal years
ended Sept. 30, 2005 and 2004.  The auditing firm pointed to the
Company's over US$1.5 million working capital deficit and
recurring losses from operations.

                      About Universal

Universal Communications Systems, Inc. -- http://www.ucsy.com/
-- and its subsidiaries are actively engaged worldwide in
developing and marketing solar energy systems, as well as
systems for the extraction of drinkable water from the air.
Consolidated subsidiaries include wholly-owned subsidiaries
AirWater Corp., AirWater Patents Corp, Millennium Electric
T.O.U. Ltd, Solar Style (USA) Inc., Solar One Inc, Solar Style
Ltd., and Misa Water International, Inc, and majority-owned
subsidiaries Atmospheric Water Technologies and Millennium USA.

Prior to 2003, the Company was engaged in activities related to
advanced wireless communications, including the acquisition of
radio-frequency spectrum internationally.  Currently, the
Company's activities related to advanced wireless communications
are conducted solely through its investment in Digital Way,
S.A., a Peruvian communication company and former wholly owned
subsidiary.


* PERU: Broadens Pension Fund Managers' Investment Options
----------------------------------------------------------
Superintendencia de Banca y Seguros or SBS -- the banking,
insurance and pension regulator of Peru - said in a statement
that it has issued a new rule to broaden investment options for
pension fund managers or AFPs.

According to Business News Americas, the regulation allows AFPs
to invest in projects worth US$10 million.  Previously, AFPs
were allowed to invest in at least US$20 million projects.

SBS told BNamericas that the reform will produce an investment
growth.  AFPs will be able to invest in more medium and long-
term projects related to;

     -- infrastructure,
     -- housing,
     -- natural resources, and
     -- concessions, among others.

There will also be a greater diversification of AFP investments,
BNamericas states, citing SBS.

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

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




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


DORAL FINANCIAL: Two Directors Decline Re-Election to Board
-----------------------------------------------------------
Zoila Levis and Richard F. Bonini notified on Sept. 13, 2006,
Doral Financial Corp.'s Board of Directors of their decision not
to stand for re-election to the Board of Directors at the
company's 2006 Annual Meeting of Stockholders.  Ms. Levis and
Mr. Bonini will continue to serve as directors of the company
until the 2006 Annual Meeting of Stockholders, which will be
held in Oct. 24, 2006.

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.


KMART: Wants Global Property to Produce Docs on US$20-Mil. Claim
----------------------------------------------------------------
Kmart Corp. asks the U.S. Bankruptcy Court for the Northern
District of Illinois to compel Global Property Services Inc. to
produce the responsive information maintained in GPS' accounting
database in its native, electronic format.

GPS provided landscaping, parking lot sweeping, and snow removal
services for Kmart Corp. before Kmart filed for bankruptcy.
GPS had individual written standard form contracts with 230
individual Kmart stores.

George R. Mesires, Esq., at Barack Ferrazzano Kirschbaum Perlman
& Nagelberg LLP, in Chicago, Illinois, tells the Court that
Global Property Services continues to defy the rules governing
the production of documents.

Mr. Mesires recounts that GPS initially refused to produce the
financial documents that purportedly support GPS' US$20,000,000
claim until Kmart filed a request to compel.  Now, GPS refuses
to produce the documents in their native, electronic format, Mr.
Mesires relates.

Following Kmart's review of GPS' financial data, Kmart
designated numerous reports and data sets for copying.  GPS,
however, refused to copy the documents as it had presented for
inspection, and stripped the financial data from its native,
software environment.  GPS printed hard copies, which differ
vastly from how the financial data is maintained, Mr. Mesires
complains.

The law does not allow GPS to transform a dynamic, electronic
database into plain pieces of paper, Mr. Mesires argues.

As reported in the Troubled Company Reporter on Apr. 4, 2006,
GPS filed two claims against Kmart for US$20,000,000 asserting:

   (1) breach of contract,

   (2) promissory estoppel,

   (3) unjust enrichment,

   (4) defamation,

   (5) misappropriation of trade secrets, and

   (6) tortious interference with contracts, business
       relationships and business expectancies.

Kmart asked GPS to produce financial information and other
documents supporting its claim.

GPS said it has not denied Kmart any discovery.  However,
GPS considered Kmart's arguments for the production of financial
information and agreed to produce the requested information.

                     About Kmart Corp.

Headquartered in Troy, Michigan, Kmart Corp. nka KMART Holding
Corp. -- http://www.bluelight.com/-- operates approximately
2,114 stores, primarily under the Big Kmart or Kmart
Supercenter format, in all 50 United States, Puerto Rico, the
U.S. Virgin Islands and Guam.  The Company filed for chapter 11
protection on Jan. 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on
May 6, 2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden,
Arps, Slate, Meagher & Flom, LLP, represented the retailer in
its restructuring efforts.  The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection.  Kmart bought Sears, Roebuck &
Co., for US$11 billion to create the third-largest U.S.
retailer, behind Wal-Mart and Target, and generate US$55 billion
in annual revenues.  The waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act expired on Jan. 27, without
complaint by the Department of Justice.  (Kmart Bankruptcy News,
Issue No. 116; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or 215/945-7000)


KMART CORP: Hawkins Wants Injunction Modified to Pursue Action
--------------------------------------------------------------
In Nov. 2002, Dawn Hawkins was physically injured while
shopping at Kmart Corporation Store No. 3320 in Hollman,
Louisiana.  Ms. Hawkins filed a personal injury claim against
Kmart, seeking compensation for damages.

Alan S. Farnell, Esq., in Chicago, Illinois, tells the U.S.
Bankruptcy Court for the Northern District of Illinois that
Ms. Hawkins timely filed a proof of claim and actively
participated in the Court ordered claim mediation process.

Mr. Farnell says Ms. Hawkins has already exhausted the claims
resolution process.

Accordingly, Ms. Hawkins asks the Court to modify the discharge
injunction to allow her to file and prosecute her personal
injury litigation against Kmart.

                      About Kmart Corp.

Headquartered in Troy, Michigan, Kmart Corp. nka KMART Holding
Corp. -- http://www.bluelight.com/-- operates approximately
2,114 stores, primarily under the Big Kmart or Kmart
Supercenter format, in all 50 United States, Puerto Rico, the
U.S. Virgin Islands and Guam.  The Company filed for chapter 11
protection on Jan. 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on
May 6, 2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden,
Arps, Slate, Meagher & Flom, LLP, represented the retailer in
its restructuring efforts.  The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection.  Kmart bought Sears, Roebuck &
Co., for US$11 billion to create the third-largest U.S.
retailer, behind Wal-Mart and Target, and generate US$55 billion
in annual revenues.  The waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act expired on Jan. 27, without
complaint by the Department of Justice.  (Kmart Bankruptcy News,
Issue No. 116; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or 215/945-7000)


MUSICLAND HOLDING: Shwarzstein Wants Stay Lifted to Pursue Suit
---------------------------------------------------------------
According to Dora Shwarzstein, in Nov. 2003, she fell off a
platform on the first floor of Musicland Holding Corp. and its
debtor-affiliates' Sam Goody record store at 390 Sixth Avenue,
in Manhattan, New York.  As a result, Ms. Shwarzstein sustained
serious injuries to her shoulder and arm, Brian M. Levy, Esq.,
in New York, informs the U.S. Bankruptcy Court for the Southern
District of New York.

Mr. Levy argues that Ms. Shwarzstein's accident was due to the
platform's improper design and construction, which was in
violation of the Building Code.

The Debtors' liability carrier, Royal & SunAlliance Insurance
Company, agreed to enter into discussions to resolve Ms.
Shwarzstein's personal injury claim.  However, due to the
complications of Ms. Shwarzstein's medical condition, a
resolution to Ms. Shwarzstein's Claim could not be concluded
despite two years of ongoing discussions with Royal &
SunAlliance, Mr. Levy relates.

Moreover, as of the Debtors' bankruptcy filing, Ms.
Shwarzstein's ability to commence an action to recover damages
was stayed pursuant to Section 362 of the Bankruptcy Code.

Subsequently, after the Debtor filed for bankruptcy, Royal &
SunAlliance refused to entertain further settlement discussions
with Ms. Shwarzstein, Mr. Levy tells the Court.

The applicable three-year statute of limitation regarding
Ms. Shwarzstein's ability to commence an action against the
Debtors for the resolution of her Claim will expire on
Nov. 22, 2006.

On May 18, 2006, Ms. Shwarzstein filed a proof of claim for the
personal injuries she allegedly sustained arising out of the
accident.

Accordingly, Ms. Shwarzstein asks the Court to:

   (a) lift the automatic stay to allow her to pursue the
       proceeds of the liability policy issued by Royal &
       SunAlliance by commencing a state court action against
       the Debtors and any other responsible parties; and

   (b) honor her late-filed Proof of Claim.

The Debtors have no "equity" in Royal & SunAlliance's Liability
Policy and the Policy is not necessary to the Debtors' effective
reorganization, Mr. Levy asserts.  "The Policy is available
specifically to pay claims like that of Ms. Shwarzstein's."

On the contrary, Mr. Levy contends, Ms. Shwarzstein would be
prejudiced if the automatic stay is not lifted as she would have
no avenue to establish her right to a judgment against the
Debtors and to seek recovery of damages from Royal &
SunAlliance.

Mr. Levy emphasizes that:

   (1) the Claim's allowance will not prejudice the Debtors;

   (2) the Claim does not involve the Debtors' assets; and

   (3) the Claim's allowance will not delay the completion of
       the bankruptcy proceedings in any way.

Mr. Levy maintains that Ms. Shwarzstein's failure to timely file
a proof of claim was neither deliberate nor tactical.  "While
there is no contention that the delay was occasioned by anything
other than neglect, . . . the neglect should be deemed to be
excusable for purposes of allowing the late filing of the Proof
of Claim."

Ms. Shwarzstein agrees to abide by the limits of Royal &
SunAlliance Policy.  Moreover, to the extent that there may be a
deductible or self-insured retention, Ms. Shwarzstein agrees to
waive the portion of any recovery that will be paid by the
Debtors, Mr. Levy assures the Court.

                         Objections

1. Creditors' Committee

Mark S. Indelicato, Esq., at Hahn US$ Hessen LLP, in New York,
contends that Ms. Shwarzstein failed to establish cause to lift
the automatic stay.  Ms. Shwarzstein failed to file a timely
proof of claim by the Bar Date and therefore, is barred from
asserting any claim against the Debtors' estates.

Courts have long recognized that the bar date is critically
important to the administration of a successful Chapter 11 case,
and the reorganization process, Mr. Indelicato notes.  Thus, the
burden of proving excusable neglect is on the party seeking an
enlargement of time to file.

Ms. Shwarzstein's late filing of the proof of claim should not
be permitted because she has failed to show excusable neglect,
and should be held accountable, Mr. Indelicato asserts.

The reason given for not timely filing a proof of claim is
simply that Ms. Shwarzstein's counsel did not closely review the
Bar Date Notice.  "This neglectful conduct clearly is not
excusable since carelessness does not constitute a valid
excuse," Mr. Indelicato maintains.

If the Court were to allow Ms. Shwarzstein to assert a
potentially large unliquidated claim based on the poor showing
she has made of excusable neglect, the Bar Date Order might as
well be deemed meaningless since virtually any late creditor can
assert the same excuse, Mr. Indelicato says.

Thus, the Official Committee of Unsecured Creditors asks the
Court to deny Ms. Shwarzstein's request.

2. Debtors

Andrea L. Johnson, Esq., at Kirkland & Ellis LLP, in New York,
New York, notes that to persuade the Court to agree to her
request, Ms. Shwarzstein stipulated that she will waive her
right to recover any under-deductible amount from the Debtors or
their estates.

Unfortunately, Ms. Johnson avers, that Stipulation makes no
difference because the Debtors' insurance policy requires the
Debtors to pay all costs and fees related to the litigation out
of their deductible -- a deductible that is presently secured by
a drawn letter of credit.  Thus, even if Ms. Shwarzstein waives
her right to recover any award from the deductible, her simple
act of litigating her claim will cause the Debtors to incur
under-deductible liability and expense.

According to Ms. Johnson, the Debtors' insurance company has
represented that Ms. Shwarstein's last settlement demand is
substantially lower than the Debtors' US$250,000 deductible.

Thus, Ms. Shwarzstein would have to admit that even if she is
permitted to litigate her claim, causing the Debtors to incur
under-deductible fees and expenses, she will nonetheless likely
walk away empty handed, Ms. Johnson says.  "[Thus], the Debtors'
creditors should not be forced to fund a pointless litigation."

The waiver is not enough to shield the Debtors' estates from
potential liability, Ms. Johnson argues.  Rather, if
Ms. Shwarzstein is allowed to file a lawsuit:

   -- the Debtors will be forced to fund litigation costs; and

   -- the attention of the Debtors and their professionals would
      be diverted from the liquidation and winddown as they
      would be forced to expend time and significant resources
      in defending against the lawsuit and against any other
      plaintiffs that subsequently file requests for relief from
      the automatic stay.

Moreover, Ms. Shwarzstein failed to assert any justification
under which her claim should be provided a preference over the
claims of the Debtors' other unsecured creditors, Ms. Johnson
maintains.

Thus, the Debtors ask the Court to deny Ms. Shwarzstein's
request.

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: Inks Terminating Card Pact with Wash. Mutual
---------------------------------------------------------------
On March 3, 2005, Providian National Bank and Musicland Holding
Corp. and its debtor-affiliates entered into a Credit Card
Alliance Agreement.

With the consent of the U.S. Bankruptcy Court for the Southern
District of New York, the Debtors rejected the Agreement
effective as of March 31, 2006.

On April 28, 2006, Washington Mutual Bank, as successor by
merger of Providian National, filed a proof of claim arising
from the Agreement and the Debtors' rejection of the Agreement.

Accordingly, in a Court-approved stipulation, the Debtors,
Washington Mutual, the Official Committee of Unsecured Creditors
and the Informal Committee of Secured Trade Vendors agree, among
other things, that:

   (a) The Alliance Agreement is deemed terminated as of
       March 31, 2006;

   (b) Washington Mutual and the Debtors will wind down the
       Credit Card Rewards Program;

   (c) Washington Mutual retains the right to use the Musicland
       Marks on Outstanding Cards on related Account billing
       statements and related records and on Account-related
       correspondence and communications with Cardholders who
       have Outstanding Cards during the Wind-down Period;

   (d) Subject to the limitation imposed by the Asset Purchase
       Agreement entered into by Trans World Entertainment
       Corporation and Musicland Holding Corp. in Feb. 2006,
       the Debtors will not cause or attempt to cause the
       removal of their identification or marks from any
       Outstanding Card or Account check, or from any Account-
       related record already existing on the effective date of
       expiration or termination of the Agreement for up to 12
       months from termination or expiration of the Agreement;

   (e) In the event TWEC fails to comply with any or all of the
       terms of the Stipulation, the Debtors will not be held
       liable;

   (f) The Wind-down Period will end when Washington Mutual's
       right to use Musicland Marks ceases, which likely is
       within six months but not later than one year;

   (g) The Debtors will make reasonable efforts to ensure that
       all Credit Card Rewards Program marketing has ceased;

   (h) Washington Mutual will discontinue acceptance of
       applications within nine months of termination of the
       Agreement;

   (i) Washington Mutual will be solely responsible for promptly
       developing and notifying Cardholders on the termination
       of the Credit Card Rewards Program, the content and
       format that will be subject to the Debtors' prior written
       approval;

   (j) In the event a party violates the Stipulation, the other
       party may, in lieu of or in addition to termination,
       collect damages, obtain an injunction, or obtain any
       other remedy available to it under law or at equity for
       breach of contract; and

   (k) Nothing in the Stipulation will be deemed to give rise to
       a claim by Washington Mutual against the Debtors.

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)


RENT-A-CENTER: Hart-Scott-Rodino Waiting Period Expires
-------------------------------------------------------
Rent-A-Center, Inc., and Rent-Way, Inc., disclosed that the
waiting period under the US Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended, relating to the company's
proposed acquisition of Rent-Way, expired on Sept. 13, 2006.
The proposed merger, which the parties anticipate will be
completed in the fourth quarter of 2006, remains subject to
approval by the shareholders of Rent-Way and other customary
closing conditions for a transaction of this nature.

                       About Rent-Way

Rent-Way offers quality, brand name home entertainment
equipment, furniture, computers, major appliances and jewelry at
approximately 784 rental-purchase stores in 34 states.
Established in 1981, Rent-Way is headquartered in Erie,
Pennsylvania, and employs approximately 4,000 associates.

                    About Rent-A-Center

Based in Plano, Texas, Rent-A-Center, Inc. (Nasdaq:RCII)
-- http://www.rentacenter.com/-- operates the largest chain of
consumer rent-to-own stores in the U.S. with 2,751 company
operated stores located in the U.S., Canada, and Puerto Rico.
The company also franchises 297 rent-to-own stores that operate
under the "ColorTyme" and "Rent-A-Center" banners.

                        *    *    *

As reported in the Troubled Company Reporter on June 29, 2006,
Standard & Poor's Ratings Services assigned its 'BB+' rating to
Rent-A-Center Inc.'s US$725 million credit facility.  It also
assigned a recovery rating of '4' to the facility, indicating
the expectation for marginal recovery of principal in the event
of a payment default.  The loan comprised a US$400 million
revolving credit facility due in 2011, a US$200 million term
loan A due in 2011, and a US$125 million term loan B due in
2012.  The corporate credit rating on Rent-A-Center Inc. is
'BB+' with a negative outlook.

As reported in the Troubled Company Reporter on June 23, 2006,
Moody's Investors Service assigned a Ba2 rating to the bank loan
of Rent-A-Center, Inc., and affirmed the Ba2 corporate family as
well as the senior subordinated note issue at Ba3.  The
continuation of the positive outlook reflected Moody's opinion
that ratings could be upgraded over the medium-term once the
company establishes a lengthier track record of sales
improvement and Moody's becomes more comfortable with the
company's financial policy.




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


AIR CARIBBEAN: Aviation Capital Completes Purchase of Assets
------------------------------------------------------------
Aviation Capital Partners llc has completed the acquisition of
the assets of Air Caribbean Holdings Limited from its previous
owner, the Trinidad & Tobago Express reports.

In a statement, Aviation Capital Partners, said: "We are very
pleased to have completed the acquisition of the Air Caribbean
assets.

"Air Caribbean has a proud history of service to the region and
we are exploring ways in which to maximise the value of the
name."

According to the Express, Aviation Capital, based in Miami was
involved in several major airline start-ups and acquisitions,
including Atlantic Coast Airlines/United Express, Chautauqua
Airlines/US Airways Express, the restructuring and sale of Tower
Air and the privatisation of BWIA.

ACP undertook consulting assignments for Bahamas Air and Cayman
Airways.

                    About Air Caribbean

Air Caribbean Holdings Limited begun its operations in 1993.  It
flew to 19 Caribbean countries and Miami during its life-span.

On Oct. 23, 2000, Air Caribbean was put into receivership by its
major creditor, the government-owned First Citizens Bank, and
all flights were cancelled until further notice.  The bank had
loaned the airline TT$100 million (US$16 million) to set up the
airline in 1993.  Also owing was TT$1.2 million (US$190,440) to
the employees' pension plan.


BRITISH WEST: Union Makes Proposals for Voluntary Separation
------------------------------------------------------------
The Aviation, Communication and Allied Workers Union or ACAWU,
the union that represents majority of the British West Indies
Airlines' employees, has presented proposals for Voluntary
Separation Package, the Trinidad & Tobago Express reports.

The Express relates that ACAWU is now waiting for BWIA's
decision.

Over 1,800 BWIA workers will receive the separation packages
before BWIA shuts down on Dec. 31 to make way for the new entity
Caribbean Airlines, The Express says.

"I met with them (BWIA management) on Tuesday to negotiate VSEP
and I put forward my proposal and I'm just waiting on them now.
I do not want to go into what our proposal entails because I put
it to them and I really want them to consider it and I want to
see how they going to treat with it.  They should let us know
what they decide sometime next week when we meet again to
discuss," Curtis John, the president general of ACAWU, told The
Express.

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.

The Trinidad & Tobago government, which owns 97.188% of BWIA,
decided to shut down the airline on Dec. 31, 2006, and reopen a
new airline that will be called Caribbean Airlines on
Jan. 7, 2007.  The government approved a substantial capital
injection for the creation of Caribbean Airlines.


DIRECTV INC: Inks Multidwelling Unit Service Pact with Verizon
--------------------------------------------------------------
Verizon and DIRECTV have entered into a new agreement to
collectively serve the multidwelling-unit market with a bundle
of services that will provide better choice and value when
compared to cable.  The multi-year agreement will enable Verizon
to serve as the single point of contact for a bundle of
offerings that includes Verizon's broadband and telephony
services in addition to DIRECTV's content and services. Verizon
will offer the DIRECTV bundle in locations where it does not
offer its own entertainment services.

To further provide DIRECTV and Verizon services in a bundle
throughout the Northeast and Mid-Atlantic, Verizon and MDU
Communications International or MDUC, a long-time partner and
provider of DIRECTV services to multidwelling units, have
entered into a sales-teaming agreement.

These two new agreements provide owners, managers and residents
with a new set of choices as an alternative to their franchised
cable operator.  Verizon will offer a complete service bundle
designed to outperform cable's "triple play."

With these new relationships, Verizon now can serve all the
units in a complex with voice, broadband, and DIRECTV.  Verizon
will offer DIRECTV digital satellite programming in packages and
bundles specifically designed for owners and residents of
apartments, condominiums, cooperatives and other multifamily
properties.

Verizon and MDUC will work together to jointly propose, provide,
install, market, operate and maintain specially designed
multidwelling-unit technology systems for the reception and
distribution of DIRECTV's digital satellite television, and
Verizon's FiOS broadband Internet, telephone calling and other
telecommunications services.

"Verizon's premier FiOS Internet all-fiber optic broadband
service and our reliable and versatile voice services are a draw
for property owners and developers who want to differentiate
their properties from others," said Eric Cevis, vice president
of Verizon Enhanced Communities.  "Now, with these agreements
that allow us to deliver DIRECTV services as the entertainment
component, we have a complete solution for those owners and
managers, particularly where Verizon does not offer
entertainment programming."

Mr. Cevis noted that serving the multifamily market efficiently
and effectively requires a different strategy from the one for
the single-family- home market.  Multifamily property owners and
condominium boards prefer to contract with one experienced team
that can provide a complete complement of state-of-the-art
television, broadband and telephony services to their residences
at reasonable guaranteed rates and without significant
disruption to the property itself.

In addition, Mr. Cevis said, the residents of multifamily
developments want state-of-the-art alternatives to traditional
franchise cable services and are likely to subscribe to a bundle
of services from one reliable source.

"Teaming with a company the caliber of Verizon represents a
significant opportunity and step forward for MDU Communications
in its Northeast, Mid-Atlantic and Midwest regions and should
allow us to accelerate our deployment in both new construction
and existing properties in these regions," said Sheldon Nelson,
president and CEO of MDU Communications.  "The benefits of this
agreement and expanded video services should result in service
to a greater number of properties and higher subscriber
penetration rates in properties covered by this agreement."

Daren Benzi, vice president of sales development and strategy
for DIRECTV Inc., said, "Verizon and MDU Communications have
both been valuable partners of DIRECTV for a number of years. By
combining their strengths and commitment to the customer, along
with DIRECTV's wide array of content and services including HD
and DVR, we are able to offer a bundle of services that delivers
superior value and choice to MDU owners and residents."

Verizon already offers DIRECTV in the consumer and small-
business markets, giving customers a one-stop choice for all
their communications needs.  DIRECTV offers a variety of service
packages, access to more than 250 channels of all-digital TV
programming, more than a dozen high-definition channels, local
channels in 142 markets, as well as all the popular premium
channels, pay-per-view offerings and its exclusive NFL SUNDAY
TICKET subscription package. Service packages also include music
channels supported by XM Satellite Radio.

                        About Verizon

Verizon Communications Inc., delivers broadband and other
wireline and wireless communication innovations to mass market,
business, government and wholesale customers.  Verizon Wireless
operates America's most reliable wireless network, serving
nearly 55 million customers nationwide.  Verizon Business
operates one of the most expansive wholly-owned global IP
networks.  Verizon Telecom is deploying the nation's most
advanced fiber-optic network to deliver the benefits of
converged communications, information and entertainment services
to customers.  Based in New York, Verizon has a diverse
workforce of more than 252,000 and generates annual consolidated
operating revenues of approximately US$90 billion.

                       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.




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


PARMALAT: Farmland & Carmen Green Want Pact on PI Suit Approved
---------------------------------------------------------------
Reorganized Farmland Dairies, LLC, the Farmland Dairies LLC
Unsecured Creditors' Trust and Carmen Green ask the United
States Bankruptcy Court for the Southern District of New York to
approve their stipulation modifying the Plan Injunction to
permit the parties to prosecute and defend against Ms. Green's
lawsuit, and to take actions as are necessary or appropriate to
exercise their rights.

Ms. Green, as reported in the Troubled Company Reporter on
Aug. 16, 2006, sought modification of the automatic stay so she
may pursue a lawsuit in the New Jersey Superior Court against
the Farmland Entities.

Accordingly, the parties agree that Ms. Green will in no event
be entitled to recover any property of or from the U.S. Debtors
or their estates, Reorganized Farmland, or the Trust.  She will
have recourse solely against any available insurance proceeds
from Farmland's automobile insurance policy with Lumbermens
Mutual Casualty Company.

Ms Green agrees that payment of any judgment awarded against the
U.S. Debtors' insurer, if any, will be reduced by the lesser of
(a) the payment or (b) the amount of the Policy's deductible
that the U.S. Debtors, Reorganized Farmland or the Trust might
otherwise be liable for.

Ms. Green withdraws her lift stay request and her proof of claim
against Farmland, and releases the U.S. Debtors, Reorganized
Farmland and the Trust from any and all claims and causes of
action.

Ms. Green's action relates to personal injuries she sustained
from a 2002 accident involving a vehicle owned by Sunnydale
Farms, a business unit of Farmland Dairies.

Ms. Green is represented in the U.S. Debtors' cases by Frank A.
Tobias, Esq., and David H. Kaplan, Esq., at Tobias & Kaplan, in
Perth Amboy, New Jersey.

                       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 GROUP: Share Capital Increases to EUR1.6 Bil. in August
----------------------------------------------------------------
In Aug. 2006, the subscribed and fully paid up share capital
in Parmalat Group increased by EUR63,896 to EUR1,640,757,886
from EUR1,640,693,990, following the allocation of shares to
Parmalat's creditors.

The share capital increase is due to the conversion of warrants
for 63,896 shares, Parmalat S.p.A. said.

The latest status of the share allotment, according to Parmalat
S.p.A., is approximately 59,187,515 shares representing 3.6% of
the share capital are still in a deposit account c/o Parmalat
S.p.A., of which:

      * 17,023,647 or 1.0% of the share capital, registered in
        the name of individually identified commercial
        creditors, are still deposited by the intermediary
        account of Parmalat S.p.A. centrally managed by Monte
        Titoli (compared with 21,763,451 shares as at as at July
        21, 2006); and

      * 42,163,868 or 2.6% of the share capital registered in
        the name of the Foundation, called Fondazione Creditori
        Parmalat, of which:

        -- 120,000 shares representing the initial share capital
           of Parmalat S.p.A. (unchanged); and

        -- 42,043,868 or 2.6% of share capital that pertain to
           currently undisclosed creditors (compared with
           44,936,482 shares as at July 21, 2006).

                       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 USA: SpA Sells Stake in Italcheese & Australian Firms
--------------------------------------------------------------
As part of the restructuring process of the Parmalat Group,
Parmalat SpA has sold 100% of its Italian subsidiary Italcheese
S.p.A. as well as stakes held indirectly in some Australian
companies.

Italcheese SpA is an Italian company that commercializes and
stores food products and in 2005 generated EUR27 million in
revenues.

The Australian holdings (Norco Pauls Milk Joint Venture,
Norcofields Pty Ltd., The Norcofields Unit Trust, Fieldco Pty.
Ltd., The Fieldco Unit Trust, Gold Coast Milk Pty. Ltd. e
Beaudesert Milk Pty. Ltd.) were held in a joint venture
agreement with Norco Co-operative Ltd. and were sold following
the approval of the Composition with Creditors of the Parmalat
Group on Oct. 1, 2005, and the consequent exercise of the call
option accorded to the partner under the joint venture
agreement.

The proceeds of the sale of the Australian participations will
be applied to reducing indebtedness towards the Group's
Australian bank lenders and therefore to decreasing the interest
due by AUS$5 million annually.  The sale will result in a
marginal decrease in EBITDA of approximately AUS$6.3 million.

In a separate report, Agenzia Giornalistica Italia said that
Itaca and Consorzio Latterie Reggiane, consortiums of
Confcooperative and Legacoop of Reggio Emilia, has acquired
Italcheese SpA for EUR4,000,000.

                       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/)


* URUGUAY: Private Banks Post UYU939 Mil. Profit in August 2006
---------------------------------------------------------------
Central bank figures show that combine profits of private banks
in Uruguay increased 10.0% to UYU939 million in August 2006,
compared with the same period in 2005, Business News Americas
reports.

BNamericas relates that the private banks' combined loan volume
increased 20.4% to UYU120 billion in August 2006, compared with
the same time in 2005.

The bank's operating income, says BNamericas, increased 4.87% to
UYU1.12 billion.  Net service income rose 9.43% to UYU1.27
billion.  Loan loss provisions dropped 89.1% to UYU20.5 million.

The figures exclude the local unit of Venezuela's state-owned
development bank Bandes, which launched operations in Uruguay in
late August, BNamericas states.

                        *    *    *

Fitch Ratings assigned these ratings on Uruguay:

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


* URUGUAY: State Firm to Buy Power from Local Companies
-------------------------------------------------------
UTE, the state power company of Uruguay, said in a statement
that it has entered into an agreement to purchase 4 megawatts of
wind-generated power from the consortium of Nuevo Manantial and
Acrelux.

Business News Americas states that the contract was signed under
the framework established by decree 389/05, which allowed for
the buying of up to 50 megawatts from independent generators.

The two-year supply contract provides the consortium with the
option to end the contract after a year of power supply,
BNamericas says.

A company source told BNamericas that the accord marks UTE's
first purchase of wind-generated energy to supply the country's
national grid.

BNamericas underscores that the source said the consortium will
be given up to nine months to build the Rocha department wind
farm, which will have nine wind turbines.

The source said UTE will buy the energy for US$52/MWh through
Dec. 31, 2007.  After which, the price is set for US$30/MWh,
according to BNamericas.

                        *    *    *

Fitch Ratings assigned these ratings on Uruguay:

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




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


CITGO PETROLEUM: Refining Unit in Illinois Closed for Repairs
-------------------------------------------------------------
The refining unit of Citgo Petroleum Corp. in Lemont, Ill., is
closed for repairs, according to a report from Reuters.  Citgo
is the US-refining arm of Petroleos de Venezuela SA.

"There was a fault in the crude oil distillation unit," an
operator said, adding that there was a 24-hour delay to reopen
the facility, Reuters reported.

The refinery has a processing capacity of 167,000 bpd, El
Universal says.

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

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

                        *    *    *

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


* VENEZUELA: Enters Into Oil & Fishery Agreements with Suriname
---------------------------------------------------------------
Venezuela and Suriname will sign oil supply and fishery
convention agreements, El Universal reports, citing Venezuelan
Vice President Jose Rangel.

The terms of the Petrocaribe initiative will govern the new
accords, the vice president said, according to the Associated
Press.

Under the Petrocaribe deal, Venezuela offers preferential terms
to member countries.  Oil shipments are made with deep discounts
and long payment terms.

                        *    *    *

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


* VENEZUELA: Inks Energy Agreements with Iran
---------------------------------------------
Iranian President Mahmoud Ahmadinejad will enter into energy
agremeents with Venezuelan President Hugo Chavez during his
visit to the nation, El Universal reports.

The two rulers will also organize joint ventures in other areas,
Basic Industries and Mining Minister Jose Khan was quoted by El
Universal as saying.

President Hugo Chavez will join the Iranian ruler in his tour
beginning Sept. 17, the Iranian head told official TV channel
Venezolana de Television.

With respect to the Iranian head's visit, the Training
Professional Center of Pequiven, the petrochemical arm of state-
run holding Petroleos de Venezuela, will be opened, in addition
to a mosque, according to El Universal.

                        *    *    *

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


* VENEZUELA: Proposes Closer Monitoring on Energy Market
--------------------------------------------------------
The decline in the price of the oil barrel during the last few
weeks was the reason for Venezuela to propose at the 142nd
meeting of the Conference of the Organization of the Petroleum
Exporting Countries or OPEC to closely monitor the energy market
in the following months and to consider a potential reduction at
the next meeting to be held in Nigeria on Dec. 14, 2006.

Venezuela's Minister of Energy and Petroleum and president of
PDVSA, Rafael Ramirez, stated this during his participation at
the ordinary meeting of the organization that was convened in
Vienna, Austria. "There is consensus to wait and assess the
price's behavior over the following months.  Depending on that
assessment a decision will have to be made at the end of this
year or early in 2007," he affirmed.

For Venezuela, this is the time to analyze the structural
changes in the market and determine the new factors that may be
disrupting the stability of the price of the oil barrel.
"Different from the past, the cost of energy is not affecting
the economies of industrialized countries," Mr. Ramirez said.

The West Texas Intermediate marker should not descend below 60
dollars per barrel, stated Mr. Ramirez, who believes that the
reduction of the crude quotations may have an impact on the
investments foreseen in this sector.

Venezuela's Minister of Energy and Petroleum took this
opportunity to warn about a potential energy crisis in the
future because industrialized countries continue increasing
their demand without any control.  "We, as producers of a
natural resource that is being exhausted, would like the large
economies to rationalize their energy consumption," he said.

               Overproduction Reaches 500 MBD

During the meeting to be held in December, the Organization's 11
Member Countries may consider a reduction of the OPEC's
production quota, which now reaches 28 million barrels of crude
per day, in order to avoid an abrupt decline of prices.  In this
regard, Minister Ramirez confirmed that there is an estimated
overproduction of 500 thousand barrels per day.  "Some kind of
reduction may be proposed based on this figure," he suggested.

During his meeting with the press, Minister Ramirez stated that
a potential issue of bonds is being considered in Venezuela,
which would imply an opportunity to increase domestic savings
and reduce the liquidity.

                        *    *    *

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


* VENEZUELA: Urges OPEC Members to Defend Oil Sovereignty
---------------------------------------------------------
"The role of energy in the underdeveloped countries is directly
related to the control and defense that the oil-producing States
may exercise over this non-renewable natural resource," the
Minister of Energy and Petroleum and president of Petroleos de
Venezuela SA, Rafael Ramirez, said during his speech at the
first session of the 3rd International Seminar of the
Organization of the Petroleum Exporting Countries "OPEC in the
new energy era: challenges and opportunities," which was held in
Vienna, Austria, until Sept. 13.

In his lecture before an audience full of energy specialists,
Ramirez claimed from consumer countries and transnational
companies "stability in the oil producing countries, and this
means political-social stability, justice and domestic
distribution of the oil income."  International private
companies must further refrain from promoting policies
"conceived in certain consumer countries that are still longing
for their colonial or imperial past," he said.

As to the investments in this sector, the Minister of Energy and
Petroleum said that foreign capitals are welcome as long as they
engage in industrial activities and aspire to obtain "a
legitimate and reasonable profit, but also accepting without
reserves our legitimate aspirations to a fair remuneration for
this exhaustible and non-renewable natural resource."

In this regard, Mr. Ramirez confirmed that PDVSA would have a
shareholding majority downstream in the four associations that
are operating in the Orinoco Oil Belt, and that is why "we have
invited the four associations to migrate towards the new Organic
Law on Hydrocarbons."

Regarding the own-risk and shared profits agreements, Rafael
Ramirez was emphatic in stating that they will be transformed
"in a manner analogous to the associations for the improvement
of extra-heavy crude and, when this happens, we will have
achieved our purpose (.), in accordance with the 'Full Petroleum
Sovereignty' slogan set by President Chavez."

In his speech, the Minister of Energy and Petroleum recounted
the efforts made by the Bolivarian Government of Venezuela to
recover its oil industry, after the 2002 Coup d'Etat and the
2002-2003 petroleum sabotage.  "A tough process that, led by
President Chavez, has called for the mobilization of all our
people to defend our main resource, in a harsh confrontation
with trans-national interests and their domestic political
agents," he stressed.

Venezuela's state-owned company, PDVSA, was captured under the
"oil opening strategy" and with the ideal of turning it into a
global energy corporation "for the sole benefit of the developed
countries," Mr. Ramirez reminded.

"As of 2003, Venezuela has recovered its 'agency' -- the new
PDVSA is proud to serve the Nation as a definitely national oil
company, not only regarding its yield of income and royalties
that are so important for every oil exporting country, but also
by carrying out economic and social policies, defined by the
national government and related to the distribution of these
profits:  the sowing of petroleum," he stated.

To dismantle the internationalization policy and review the
investments made abroad  "divesting those that are not
necessary" is one of the fundamental pillars for the Full
Petroleum Sovereignty.  The recent sale of the Lyondell refinery
that Venezuela owned in the United States, through CITGO, is
part of this strategy.

The restoration and strengthening of the Ministry of Energy and
Petroleum as regulatory entity for this matter and the
successful migration of the 32 operating agreements into 21
Mixed Companies is another progress made by the Bolivarian
Government.  Now, there are only pending a "few more steps" to
constitute the new solid oil system in Venezuela and complete
the dismantling of the oil opening, said Minister Ramirez.

"Our experience is at the disposal of our sister oil producing
nations, as a contribution to the strengthening of our national
policies. . . , the policy of Full Petroleum Sovereignty is
based on the principles that gave rise to the founding and
growth of the OPEC," Mr. Ramirez affirmed.

                        *    *    *

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


* ALIXPARTNERS LLP: Moody's Rates US$435MM Credit Facility at B1
----------------------------------------------------------------
Moody's Investors Service assigned a B1 first time, rating to
AlixPartners LLP proposed US$435 million senior secured credit
facility (US$385 million term loan and US$50 million revolver)
and a B1 corporate family rating.  The ratings for the secured
credit facility reflect both the overall probability of default
of the company, to which Moody's assigns a PDR of B2, and a loss
given default of LGD 3 for the credit facility.  The rating
outlook is stable.

On August 3, 2006, AlixPartners entered into an agreement
whereby Hellman & Friedman LLC and AlixPartners' managing
directors and employees will acquire a majority equity stake in
the company in a leveraged recapitalization.  Pursuant to the
recapitalization, AlixPartners Holdings, Inc., an entity
controlled by the company's founder, agreed to sell 80.1% of the
AlixPartners' partnership units. The transaction values
AlixPartners at approximately $872 million, before fees and
expenses. The transaction is expected to close mid October.

The transaction is expected to be funded with a US$385 million
term loan, US$296 million of cash equity contributed by the
sponsor and US$218 of rollover equity from the founder and
management.

The ratings reflect strong business diversity which helps to
mitigate exposure to cyclicality, a relatively small revenue
base compared to the company's rated peer group, significant pro
forma adjustments to historical financial statements and
concerns about employee retention. The ratings are supported by
a track record of strong organic growth, stable segment revenues
across economic cycles, a high proportion of variable expenses,
as well as solid pro forma credit metrics.

The B1 rating on the senior secured credit facility reflects an
LGD 3 loss given default assessment as this facility is secured
by a pledge of substantially all of assets of AlixPartners and
its domestic subsidiaries and there is an immaterial amount of
junior non-debt obligations.  In the case of pledges of foreign
stock, the collateral package is limited to 65% of the voting
stock and 100% of the non-voting stock of certain of its first
tier foreign subsidiaries.  The senior secured credit facility
is guaranteed by substantially all the domestic subsidiaries of
the company.

Mooody's assigned these ratings:

   -- Corporate Family Rating: B1;

   -- Probability-of-default rating: B2;

   -- US$385 million senior secured 7-year term loan: B1
      (LGD 3, 34%); and

   -- US$50 million senior secured 6-year revolver: B1
      (LGD 3, 34%).

The stable outlook anticipates moderate revenue and EBITA growth
over the next 12 to 18 months. Free cash flow from operations is
expected to be used to pay down debt.

Strong revenue growth accompanied by steady EBITA margins could
lead to a change in outlook to positive.  The ratings could be
upgraded if debt to EBITDA and EBITA to interest are expected to
be sustained at under 3.5 times and over 3 times, respectively.

A loss of key personnel or a downturn in revenues and/or
utilization rates in major lines of business could lead to a
negative outlook. The ratings could be downgraded if debt to
EBITDA and EBITA to interest are expected to be sustained at
over 5 times and under 1.6 times, respectively.  A significant
debt financed acquisition could also pressure the ratings.

Founded in 1981, AlixPartners is a leading international
business consulting and advisory firm, offering the following
five areas of consulting services:

   (i) financial advisory,
   (ii) performance improvement,
   (iii) turnaround and restructuring,
   (iv) case management and
   (v) information technology.

AlixPartners has approximately 530 employees operating in 12
offices across the United States, Europe and Asia.  Revenue for
the twelve-month period ending July 31, 2006, was US$369.9
million.


* BOOK REVIEW: Panic on Wall Street
-----------------------------------
Author:     Robert Sobel
Publisher:  Beard Books
Paperback:  469 pages
List Price: US$34.95

Order your personal copy at
http://amazon.com/exec/obidos/ASIN/1893122468/internetbankrupt

"Mere anarchy is loosed upon the world, the blood-dimmed tide is
loosed, and everywhere the ceremony of innocence is drowned; the
best lack all conviction, while the worst are full of passionate
intensity."

What a terrific quote to find at the beginning of a book on a
financial catastrophe!  First published in 1968.  Panic on Wall
Street covers 12 of the most painful episodes in American
financial history between 1768 and 1962.

Author Robert Sobel chose these particular cases, among a dozen
or so others, to demonstrate the complexity and array of
settings that have led to financial panics, and to show that we
can only make the vaguest generalizations" about financial panic
as a phenomenon.

In his view, these 12 all had a great impact on Americans of the
time, "they were dramatic, and drama is present in most
important events in history."  They had been neglected by other
financial historians.

They are:

      William Duer Panic, 1792
      Crisis of Jacksonian Finances, 1837
      Western Blizzard, 1857
      Post-Civil War Panic, 1865-69
      Crisis of the Gilded Age, 1873
      Grant's Last Panic, 1884
      Grover Cleveland and the Ordeal of 183-95
      Northern Pacific Corner, 1901
      The Knickerbocker Trust Panic, 1907
      Europe Goes to War, 1914
      Great Crash, 1929
      Kennedy Slide, 1962

Sobel tells us there is no universally accepted definition of
financial panic.  He quotes William Graham Sumner, who died long
before the Great Crash of 1929, describing a panic as ". . . a
wave of emotion, apprehension, alarm.  It is more or less
irrational.  It is superinduced upon a crisis, which is real and
inevitable, but it exaggerates, conjures up possibilities, take
away courage and energy."

Sobel could find no "law of panics" which might allow us to
predict them, but notes their common characteristics.  Most
occur during periods of optimism ("irrational exuberance?").
Most arise as "moments of truth," after periods of self-
deception, when players not only suddenly recognize the
magnitude of their problems, but are also stunned at their
inability to solve them.  He also notes that strong financial
leaders may prove a mitigating factor, citing Vanderbilt and
J.P. Morgan.

Sobel concludes by saying that although financial panics have
proven as devastating in some ways as war, and while much
research has been carried out on war and its causes, little
research has been done on financial panics.  Panics on Wall
Street stands as a solid foundation for later research on the
topic.


                         ***********


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
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