TCRLA_Public/060919.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

         Tuesday, September 19, 2006, Vol. 7, Issue 186

                          Headlines

A R G E N T I N A

ACHA PLAST: Verification of Proofs of Claim Is Until Nov. 15
ALTERNATIVA MEDICA: Claims Verification Deadline Is on Nov. 9
BANCO DE LA NACION: Offering Mortgage Loans Under Gov't Pressure
BANCO GALICIA: Offering Mortgage Loans Under Government Pressure
BANCO MACRO: Offering Mortgage Loans Under Pressure from Gov't

BANG SEUNG: Deadline for Verification of Claims Is on Nov. 3
BBVA BANCO FRANCES: Offering Mortgage Loans Under Gov't Pressure
BRAZACO SRL: Last Day for Verification of Claims Is on Oct. 23
DANOMAT CONSTRUCCIONES: Enters Bankruptcy on Court Orders
DISTRIBUIDORA MAYORISTA: Claims Verification Is Until Dec. 12

FREESCALE: To Sell Company for US$17.6 Bln to Blackstone, et al.
FREESCALE: Sale of Company Cues Moody's to Review Ba1 Rating
LIFE CARE: Trustee Verifies Proofs of Claim Until Nov. 6

B A H A M A S

WINN-DIXIE: Can't File 2006 Annual Financial Report on Time
WINN-DIXIE: Wants to Sell Montgomery Distribution Center

B E R M U D A

BERMUDA COMMERCIAL: Moody's Cuts Financial Strength Rating to D+
GET FIT: First General Meeting Is Scheduled for Sept. 26
MONTPELIER RE: Declares US$7.50 Per Share Quarterly Dividend
REFCO INC: Files Chapter 11 Reorganization Plan
REFCO INC: Classification & Treatment of Claims Under Plan

B O L I V I A

GOLDEN EAGLE: Posts US$613,070 Net Loss in Second Quarter
PETROLEO BRASILEIRO: Says Bolivia Gas Price Hike Won't Exceed 5%

B R A Z I L

BANCO NACIONAL: Grants BRL719.4MM Financing to CST's Expansion
BANCO NATIONAL: Judge Orders Funding Approval for Rio de Janeiro
GERDAU SA: Unit Closing Melt Shop Operations in Perth Amboy
GERDAU SA: Corporacion Sidenor to Acquire 100% Stake in GSB
NOVELIS INC: Reduces Debt by US$103 Million in First Quarter

PETROLEO BRASILEIRO: Listed as One of the Most Sustainable Cos.
PETROLEO BRASILEIRO: Production Reached 2,042,14 Barrels in Aug.
PETROLEO BRASILEIRO: Focusing Investments in Africa & U.S.
TAM SA: Closes Public Offer of BRL500M Nonconvertible Debentures

C A Y M A N   I S L A N D S

BANK OF INDIA: Completes Upsized Bank Capital Deal
BANK OF INDIA: To Open More Overseas Branches
BOSTON BRAZIL: Deadline for Claims Verification Is on Sept. 27
CASSANDRA ASSOCIATES: Proofs of Claim Filing Is Until Oct. 4
CP KELCO: Liquidator Won't Accept Proofs of Claim After Oct. 4

FFP WEST: Creditors Have Until Oct. 4 to File Proofs of Claim
JCF RE: Deadline for Filing of Proofs of Claim Is Set for Oct. 4
LONGHORN LIMITED: Deadline for Proofs of Claim Filing Is Oct. 4
MIRAI LIMITED: Last Day for Proofs of Claim Filing Is on Oct. 4
REGENT PACIFIC: Last Day to File Proofs of Claim Is on Sept. 25

SL LIMITED: Proofs of Claim Filing Deadline Is Set for Oct. 4
TOP LTD: Creditors Must Submit Proofs of Claim by Oct. 4

C O L O M B I A

CA INC: Discloses Preliminary Results of Tender Offer

C O S T A   R I C A

BETONSPORTS: Costa Rican Employees Allegedly Sell Customer Names
H.J. HEINZ: Shareholders Elect New Members of the Board
H.J. HEINZ: S&P Lowers Preferred Stock Rating to BB+ from BBB-

C U B A

* CUBA: Economic Minister Says Nation Won't Adopt Open Policy

D O M I N I C A N   R E P U B L I C

BANCO MULTIPLE: First Caribbean Issuing Bank Under IFC Program
BANCO MULTIPLE: Fitch Revises Issuer Rating Outlook to Positive

J A M A I C A

KAISER ALUMINUM: Leblanc & Waddell Wants US$300,000 Claim Paid
KAISER ALUMINUM: Supplements Objection to Agrium's Stay Motion

M E X I C O

BALLY TOTAL: Amends Employment Pacts with Senior Executives
EL POLLO: Extends Expiration of Tender Offer to Oct. 16
FORD MOTOR: General Motors Merger Unlikely Says Analysts
FORD MOTOR: Fitch Comments on Restructuring Plan
GENERAL MOTORS: Court Adjourns Hearings on Contract Rejection

GENERAL MOTORS: Ford Merger Unlikely Says Analysts
HIPOTECARIA SU: Moody's Rates Proposed US$150MM Sr. Notes at Ba3
NORTEL NETWORKS: Declares Dividends on Class A Preferred Shares
OPEN TEXT: Hummingbird Shareholders Approve Acquisition Bid
OPEN TEXT: Moody's Rates US$390 Mil. Senior Secured Loan at Ba3

RIO VISTA: Posts US$434,000 Net Loss in 2006 Quarter Ended
SATELITES MEXICANOS: Court Gives Final Nod on Milbank as Counsel
SATELITES MEXICANOS: Court Rules on First 90-Day Fee Application
SONIC CORP: Inks US$775 Million Credit Agreement
VALASSIS COMMS: S&P Maintains Negative Watch on Ratings

P A N A M A

GAZPROM OAO: Mulls Investment in Panama Pipeline
SOLO CUP: Moody's Lowers Corporate Family Rating to B3 from B2

P E R U

PRIDE INTERNATIONAL: Appoints Rodney Eads as COO

P U E R T O   R I C O

ADELPHIA: Wants to Amend William Schleyer's Employment Agreement
ADELPHIA: Wants to Employ Hogan & Hartson as Special Counsel

T R I N I D A D   &   T O B A G O

JETBLUE AIRWAYS: Fitch Lowers Issuer Default Rating to B from B+

V E N E Z U E L A

* VENEZUELA: Proposes Amendment to Electric Service Law
* VENEZUELAN: Forecast Predicts 22% Growth in Trade
* BOND PRICING: For the Week of Sept. 11 -- Sept. 15, 2006


                          - - - - -


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


ACHA PLAST: Verification of Proofs of Claim Is Until Nov. 15
------------------------------------------------------------
Raul Badaraco, the court-appointed trustee for Acha Plast S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim until
Nov. 15, 2006.

Under the Argentine bankruptcy law, Mr. Badaraco is required to
present the validated claims in court as individual reports.  
Court No. 2 in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Acha Plast and its
creditors.

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

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

Acha Plast was forced into bankruptcy at the request of Fernando
Calvo, whom it owes US$40,146.01.

Clerk No. 3 assists the court in the proceeding.

The debtor can be reached at:

         Acha Plast S.A.
         Don Bosco 3429
         Buenos Aires, Argentina  

The trustee can be reached at:

         Raul Badaraco
         Esmeralda 980
         Buenos Aires, Argentina


ALTERNATIVA MEDICA: Claims Verification Deadline Is on Nov. 9
-------------------------------------------------------------
Marcela Adriana Mazzoni, the court-appointed trustee for
Alternativa Medica S.A.'s insolvency case, verifies creditors'
proofs of claim until Nov. 9, 2006.

Under the Argentine bankruptcy law, Ms. Mazzoni 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 Alternativa Medica
and its creditors.

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

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

On Sept. 19, 2007, Alternativa Medica's creditors will vote on a
settlement plan that the company will lay on the table.

As reported in the Troubled Company Reporter-Latin America on
Aug. 28, 2006, Alternativa Medica filed a petition to reorganize
its business after a cessation of payments on Aug. 11, 2006.

Clerk No. 8 assists the court in the proceeding.

The debtor can be reached at:

         Alternativa Medica S.A.
         Don Alsina 943
         Buenos Aires, Argentina  

The trustee can be reached at:

         Marcela Adriana Mazzoni
         Alfred bufano 2198
         Buenos Aires, Argentina


BANCO DE LA NACION: Offering Mortgage Loans Under Gov't Pressure
----------------------------------------------------------------
Banco de la Nacion, under pressure from President Nestro
Kirchner, is among the banks that agreed to offer long-term
mortgage loans with fixed interest below annual inflation rates,
Bloomberg News reports.  The government aims to spur home buying
and economic growth in Argentina.

The loans, with maturity up to 30 years, will be available to
consumers next month, the same report says, citing Interior
Commerce Secretary Guillermo Moreno.  Banco Nacion would offer
the loans with an 8.4% fixed interest rate.

Aldo Abram, an economist at Exante, was quoted by Bloomberg as
saying that the loans would likely become unprofitable long
before 30 years.

"Whatever effort the government is planning with mortgage loans,
it won't work," Gabriel Coqueugniot, who until last month was
general manager of Banco Supervielle SA, Argentina's 21st-
largest bank by assets, told Bloomberg.  "Even eliminating any
profit from their loan business, banks will not be able to meet
the government demand of equating the cost of a loan payment and
the cost of a rental."

                        *    *    *

Moody's Investor Service assigns these ratings to Banco de la
Nacion:

         -- Foreign LT Bank Deposits, Caa1
         -- Senior Unsecured Debt, WR
         -- Bank Financial Strength, E
         -- Short Term, NP


BANCO GALICIA: Offering Mortgage Loans Under Government Pressure
----------------------------------------------------------------
Banco Galicia, under pressure from President Nestro Kirchner, is
among the banks that agreed to offer long-term mortgage loans
with fixed interest below annual inflation rates, Bloomberg News
reports.  The government aims to spur home buying and economic
growth.

The loans, with maturity up to 30 years, will be available to
consumers next month, the same report says, citing Interior
Commerce Secretary Guillermo Moreno.  

Aldo Abram, an economist at Exante, was quoted by Bloomberg as
saying that the loans would likely become unprofitable long
before 30 years.

"Whatever effort the government is planning with mortgage loans,
it won't work," Gabriel Coqueugniot, who until last month was
general manager of Banco Supervielle SA, Argentina's 21st-
largest bank by assets, told Bloomberg.  "Even eliminating any
profit from their loan business, banks will not be able to meet
the government demand of equating the cost of a loan payment and
the cost of a rental."

                        *    *    *

As reported on Apr. 12, 2006, the Argentine arm of Standard &
Poor's assigned these ratings to Banco de Galicia y Buenos
Aires' debts:

   -- Obligaciones negociables, serie 6, emitted on July 19,
      2002 for US$73,000,000, emitted under the program for
      US$1000 million

      * Last due: Aug. 3, 2007
      * Rate: raA

   -- Obligaciones Negociables, clase 7 for US$43,000,000,
      included under the US$1000 million program

      * Last due: Aug. 3, 2007
      * Rate: raA

   -- Program of obligaciones negociables, media term, for
      US$2,000,000,000

      * Rate: raA

   -- Obligaciones Negociables simples 8-11-93, for
      US$21,400,000

      * Last due: Nov. 1, 2004
      * Rate: raD

   -- Obligaciones negociables simples for US$21,400,000

      * Last due: Nov. 1, 2004
      * Rate: raD

   -- Obligaciones Negociables emitted for US$9,000,000,
      included under the US$1000 million program.

      * Last due: Dec. 20, 2005
      * Rate: raD


BANCO MACRO: Offering Mortgage Loans Under Pressure from Gov't
--------------------------------------------------------------
Banco Macro Bansud, under pressure from President Nestro
Kirchner, is among the banks that agreed to offer long-term
mortgage loans with fixed interest below annual inflation rates,
Bloomberg News reports.  The government aims to spur home buying
and economic growth.

The loans, with maturity up to 30 years, will be available to
consumers next month, the same report says, citing Interior
Commerce Secretary Guillermo Moreno.  Banco Macro would offer
the loans with 9.75% fixed interest rate.

Aldo Abram, an economist at Exante, was quoted by Bloomberg as
saying that the loans would likely become unprofitable long
before 30 years.

"Whatever effort the government is planning with mortgage loans,
it won't work," Gabriel Coqueugniot, who until last month was
general manager of Banco Supervielle SA, Argentina's 21st-
largest bank by assets, told Bloomberg.  "Even eliminating any
profit from their loan business, banks will not be able to meet
the government demand of equating the cost of a loan payment and
the cost of a rental."

                        *    *    *

As reported on July 4, 2006, Banco Macro S.A.'s Obligaciones
Negociables Subordinadas -- Serie V for US$18 million is rated
BB by Moody's Latin America.


BANG SEUNG: Deadline for Verification of Claims Is on Nov. 3
------------------------------------------------------------
Hector Juan Kaiser, the court-appointed trustee for Bang Seung
Ok's reorganization proceeding, verifies creditors' proofs of
claim until Nov. 3, 2006.

Mr. Kaiser will present the validated claims in court as
individual reports on Dec. 18, 2006.  Court No. 13 in Buenos
Aires will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Bang Seung 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 Bang Seung's
accounting and banking records will follow on March 16, 2007.

On Aug. 22, 2007, Bang Seung's creditors will vote on a
settlement plan that the company will lay on the table.

As reported in the Troubled Company Reporter-Latin America on
Aug. 24, 2006, Bang Seung filed a petition in court to
reorganize its business after a cessation of payments on
April 19, 2004.

Clerk No. 26 assists the court in this case.

The debtor can be reached at:

         Bang Seung Ok
         Chivilcoy 1925
         Buenos Aires, Argentina

The trustee can be reached at:

         Hector Juan Kaiser
         Montevideo 666
         Buenos Aires, Argentina


BBVA BANCO FRANCES: Offering Mortgage Loans Under Gov't Pressure
----------------------------------------------------------------
BBVA Banco France SA, under pressure from President Nestro
Kirchner, is among the banks that agreed to offer long-term
mortgage loans with fixed interest below annual inflation rates,
Bloomberg News reports.  The government aims to spur home buying
and economic growth.

The loans, with maturity up to 30 years, will be available to
consumers next month, the same report says, citing Interior
Commerce Secretary Guillermo Moreno.  

Aldo Abram, an economist at Exante, was quoted by Bloomberg as
saying that the loans would likely become unprofitable long
before 30 years.

"Whatever effort the government is planning with mortgage loans,
it won't work," Gabriel Coqueugniot, who until last month was
general manager of Banco Supervielle SA, Argentina's 21st-
largest bank by assets, told Bloomberg.  "Even eliminating any
profit from their loan business, banks will not be able to meet
the government demand of equating the cost of a loan payment and
the cost of a rental."

                        *    *    *

As reported on June 2, 2006, Moody's Investors Service upgraded
the Bank Financial Strength Rating of BBVA Banco Frances S.A. to
D- from E to reflect:

   -- the bank's improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

BBVA Banco Frances long-term bank deposits carries Moody's
Investor Service's Caa1 rating.


BRAZACO SRL: Last Day for Verification of Claims Is on Oct. 23
--------------------------------------------------------------
Mauricio Zafran, the court-appointed trustee for Brazaco
S.R.L.'s bankruptcy case, verifies creditors' proofs of claim
until Oct. 23, 2006.

Mr. Zafran will present the validated claims in court as
individual reports on Dec. 4, 2006.  A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Brazaco 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 Brazaco's accounting
and banking records will follow on Feb. 19, 2007.

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

The debtor can be reached at:

         Brazaco S.R.L.
         Gascon 719
         Buenos Aires, Argentina

The trustee can be reached at:

         Mauricio Zafran
         Avenida Callao 420
         Buenos Aires, Argentina


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

The trustee will:

   -- verify creditors' proofs of claim;

   -- prepare and present individual and general reports in  
      court after the claims are verified; and

   -- administer Danomat Construcciones' assets under court
      supervision and take part in their disposal to the extent
      established by law.

After the verification phase, the court will determine if the
verified claims are admissible, taking into account the
trustee's opinion and the objections and challenges raised by
Danomat Construcciones and its creditors.

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

The debtor can be reached at:

         Danomat Construcciones S.R.L.
         Humberto Primo 1926, Rosario
         Santa Fe, Argentina


DISTRIBUIDORA MAYORISTA: Claims Verification Is Until Dec. 12
-------------------------------------------------------------
Marcos Livszyc, the court-appointed trustee for Distribuidora
Mayorista Genesis S.R.L.'s bankruptcy case, verifies creditors'
proofs of claim until Dec. 12, 2006.

Mr. Livszyc will present the validated claims in court as
individual reports on March 12, 2007.  A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Distribuidora Mayorista 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 Distribuidora
Mayorista's accounting and banking records will follow on
Apr. 3, 2007.

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

The trustee can be reached at:

         Marcos Livszyc
         Nunez 6387
         Buenos Aires, Argentina


FREESCALE: To Sell Company for US$17.6 Bln to Blackstone, et al.
----------------------------------------------------------------
Freescale Semiconductor, Inc., has entered into a definitive
merger agreement to be acquired by a private equity consortium
with a total equity value of US$17.6 billion.  The consortium is
led by The Blackstone Group, and includes The Carlyle Group,
Permira Funds and Texas Pacific Group.

Under the terms of the merger agreement, the consortium will
acquire all of the outstanding Class A and Class B shares of
Freescale for US$40 per share in cash, representing a premium of
approximately 36% over Freescale's average closing share price
during the 30 trading days ended Sept. 8, 2006.  The company
first acknowledged it was in discussions with third parties
regarding a possible transaction on Sept. 11, 2006.

The board of directors of Freescale has unanimously approved the
merger agreement and resolved to recommend that Freescale's
stockholders adopt the agreement.

There is no financing condition to the obligations of the
private equity consortium to consummate the transaction, and
equity and debt commitments for the full amount of the merger
consideration have been received.  It is currently anticipated
that substantially all of the company's outstanding Notes will
either be tendered for or repaid.

The merger is subject to customary conditions to closing,
including the affirmative vote of Freescale stockholders and
requisite antitrust approvals.  The merger agreement contains a
provision under which Freescale may solicit alternative
proposals from third parties during the next 50 calendar days.  
In addition, Freescale may, at any time, subject to the terms of
the merger agreement, respond to unsolicited proposals.  If the
company accepts a superior proposal, a break-up fee would be
payable by the company. There can be no assurance of any
alternative proposal.

Goldman, Sachs & Co. serves as financial advisor to Freescale
and provided a fairness opinion in connection with the
transaction.  Wilson Sonsini Goodrich & Rosati Professional
Corporation serves as legal adviser to Freescale in connection
with the transaction.

Credit Suisse Securities (USA) LLC, Citigroup Corporate and
Investment Banking and Blackstone Corporate Advisory Services
act as financial advisors to the private equity consortium.  
Skadden, Arps, Slate, Meagher & Flom LLP serves as legal adviser
to the private equity consortium in connection with the
transaction.
             
                      About Blackstone

Blackstone -- http://www.blackstone.com/--, a global private  
investment and advisory firm, was founded in 1985.  The firm has
raised a total of approximately US$62 billion for alternative
asset investing since its formation of which roughly US$30
billion has been for private equity investing.  Blackstone's
private equity group has over 60 experienced professionals with
broad sector and specialist semi-conductor expertise.  
Blackstone's other core businesses include Private Real Estate
Investing, Corporate Debt Investing, Hedge Funds, Mutual Fund
Management, Private Placement, Marketable Alternative Asset
Management, and Investment Banking Advisory Services.

                  About The Carlyle Group

The Carlyle Group -- http://www.carlyle.com/-- is a global  
private equity firm with US$44.3 billion under management.  
Carlyle invests in buyouts, venture & growth capital, real
estate and leveraged finance in Asia, Europe and North America,
focusing on telecommunications & media, aerospace & defense,
automotive & transportation, business services, consumer &
retail, energy & power, healthcare, industrial, and technology.  
Since 1987, the firm has invested US$22.4 billion of equity in
528 transactions for a total purchase price of US$94.6 billion.  
The Carlyle Group employs more than 680 people in 16 countries.

                        About Permira

Permira -- http://www.permira.com/-- is a leading international  
Private Equity specialist.  As an independent business, Permira
is owned and controlled by its partners.  The firm's team of
over 100 professionals, based in Frankfurt, London, Madrid,
Milan, New York, Paris, Stockholm and Tokyo, advises the Permira
Funds with a total committed capital of more than EUR20 billion.  
Since 1985, the Permira Funds have completed over 280 private
equity transactions.  During the last year, the Permira Funds
have committed to ten transactions with a combined transaction
value of over EUR27 billion.  Recent deals involving the Permira
Funds have included the acquisitions of Nordic telecoms firm
(TDC) -- the largest private equity transaction ever undertaken
in Europe -- pan-European media business (SBS Broadcasting),
leading UK roadside recovery and insurance firm (the AA), and
(Intelsat), the largest global satellite business.

                About Texas Pacific Group

Texas Pacific Group -- http://www.texaspacificgroup.com/-- is a  
private investment partnership that was founded in 1992 and
currently has more than US$30 billion of assets under
management.  Texas Pacific Group invests in world-class
franchises across a range of industries, including technology
(Lenovo, MEMC, ON Semiconductor, Seagate, SunGard), industrials
(Altivity Packaging, British Vita, Grohe, Kraton Polymers, Texas
Genco), retail/consumer (Debenhams, Ducati, J. Crew, Neiman
Marcus, Petco), airlines (America West, Continental), media and
communications (Findexa, MGM, TIM Hellas), financial services
(Endurance Specialty Holdings, Fidelity National Information
Services, LPL Financial Services) and healthcare (IASIS
Healthcare, Oxford Health Plans, Quintiles Transnational), among
others.

                      About Freescale

Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL)
(NYSE:FSL.B) -- http://www.freescale.com/-- designs and    
manufactures embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets.  
Freescale became a publicly traded company in July 2004.  The
company has design, research and development, manufacturing or
sales operations in more than 30 countries.  In Latin America,
Freescale has operations in Argentina, Brazil and Mexico.

Freescale Semiconductor's 7-1/8% Senior Notes due 2014 carry
Moody's Investors Service's Ba1 rating.


FREESCALE: Sale of Company Cues Moody's to Review Ba1 Rating
------------------------------------------------------------
Moody's Investors Service has placed Freescale's Ba1 corporate
family and senior unsecured debt ratings on review for possible
downgrade following the announcement for the sale of the
company.

Freescale announced that it has entered into a definitive
agreement for the sale of the company to a group of private
investment firms.  The transaction is valued at US$17.6 billion,
or US$40 a share.  In accordance with the merger agreement,
Freescale will solicit alternative proposals from other parties
over the next 50 calendar days.

The review will focus on:

   (1) the operating strategy of the company under the new
       ownership; and

   (2) the proposed financing and capital structure arising from
       this acquisition.

The ratings could be subject to a multi-notch downgrade
depending in the level of debt incurred in the transaction.

The company expects to repay substantially all of the $850
million senior unsecured notes either through a tender offer or
a change of control put at the option of noteholders.  Since
Freescale is currently rated below investment-grade by Moody's,
the change of control provision contained in the note indenture
is currently operative. Accordingly, a sale of the company would
require Freescale to repurchase the senior unsecured notes at
the option of noteholders at a price of 101% of face value plus
accrued and unpaid interest.  Once the notes are substantially
tendered for or repaid, Moody's will withdraw the ratings.

These ratings were placed under review for possible downgrade:

   -- Corporate Family Rating: Ba1;

   -- Senior Unsecured Guaranteed Notes with various maturities
      totaling US$850 million: Ba1; and

   -- Speculative Grade Liquidity Rating: SGL-1.

Headquartered in Austin, TX, Freescale designs and manufactures
embedded semiconductors for the transportation, networking and
wireless markets.  In Latin America, Freescale has operations in
Argentina, Brazil and Mexico.


LIFE CARE: Trustee Verifies Proofs of Claim Until Nov. 6
--------------------------------------------------------
Jorge Edmundo Sahade, the court-appointed trustee for Life Care
S.A.'s bankruptcy case, verifies creditors' proofs of claim
until Nov. 6, 2006.

Under the Argentine bankruptcy law, Mr. Sahade is required to
present the validated claims in court as individual reports.  A
court in Buenos Aires will determine if the verified claims are
admissible, taking into account the trustee's opinion and the
objections and challenges raised by Life Care and its creditors.

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

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

The trustee can be reached at:

         Jorge Esmundo Sahade
         Avenida de Mayo 1324
         Buenos Aires, Argentina




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


WINN-DIXIE: Can't File 2006 Annual Financial Report on Time
-----------------------------------------------------------
Winn-Dixie Stores, Inc., disclosed in a regulatory filing with
the U.S. Securities and Exchange Commission that it is unable to
timely file its financial report for fiscal year ended
June 28, 2006.

In its Form NT10-K filed on Sept. 12, 2006, Winn-Dixie says
it is unable to complete the necessary adjustments to its
financial statements to timely file the 2006 annual report
without unreasonable effort or expense.  The company's
management has devoted substantial time and effort to finalize
Winn-Dixie's Joint Plan of Reorganization and, as a result, has
been unable to give adequate time to the completion of the
annual financial statements.

Bennett L. Nussbaum, Winn-Dixie's senior vice president and
chief financial officer, relates that management has discovered
that the company had not utilized certain carrybacks in fiscal
2005 that are expected to result in aggregate tax benefits of
around US$11,500,000.

In addition, Winn-Dixie reached a tentative settlement agreement
with the Internal Revenue Service on the amounts assessed for
the fiscal 2000 to 2002 tax years.  Winn-Dixie is working on
appropriate adjustments to reflect the carrybacks and settlement
adjustments in its financial statements, Mr. Nussbaum says.

The company is also completing the reclassification of
discontinued operations after exiting nearly 350 stores and four
distribution centers in fiscal 2006 as well as the pending sale
of its ownership interest in Bahamas Supermarkets Limited.

According to Mr. Nussbaum, Winn-Dixie's annual report is
expected to reflect a net loss of about US$350,000,000 for
fiscal 2006 down from a net loss of US$833,000,000 for fiscal
2005.  Earnings are also expected to include:

    -- impairment charges of about US$15,600,000 compared to
       US$158,400,000 in the prior fiscal year; and

    -- net restructuring gains of US$7,700,000 compared to net
       restructuring gains of US$82,700,000 in fiscal 2005.

Net loss is expected to include a net gain from reorganization
items of around US$251,600,000 for fiscal 2006 compared to
US$148,300,000 for fiscal 2005, which includes primarily non-
cash gains related to lease rejections.

The company plans to release its 2006 annual results on or
before Sept. 26, 2006.

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 Sell Montgomery Distribution Center
--------------------------------------------------------
The Debtors used Winn-Dixie Logistics, Inc.'s distribution
center and dairy plant located in Montgomery, Alabama, to supply
stores in the state before they filed for bankruptcy.

Since the Petition Date, the Debtors have consolidated their
warehouse operations for the area into their Hammond, Louisiana,
facility and no longer need the Montgomery Assets.

The Debtors have marketed the Montgomery Assets extensively
through DJM Asset Management, Inc.  The Debtors have received
three offers, the highest of which is Montgomery Warehouses,
LLC's US$6,000,000 bid, relates James H. Post, Esq., at Smith
Hulsey & Busey, in Jacksonville, Florida.

By this motion, the Debtors seek the Court's consent to sell the
Montgomery Assets free and clear of liens, claims and interests,
subject to higher or better offers.

The Debtors also ask the Court to waive the 10-day stay period
required by Rule 6004(g) of the Federal Rules of Bankruptcy
Procedure.

                Facility Purchase Agreement

The assets to be sold and transferred to Montgomery Warehouses
include Winn-Dixie Logistics' fee simple title in the land and
buildings known as the Montgomery Distribution Center and Dairy
Plant as well as all attached improvements.

The net aggregate purchase price for the Montgomery Assets is
US$6,000,000.  Montgomery Warehouses has already deposited
US$500,000 in escrow.

Other terms of the transaction include:

   (a) The Montgomery Assets are to be transferred free and
       clear of any liens, claims, interests and encumbrances
       other than the permitted encumbrances;

   (b) The initial minimum overbid that may be accepted by the
       Debtors at any auction must have a value of at least
       US$6,180,000; and

   (c) Winn-Dixie Logistics will pay Montgomery Warehouses a
       US$120,000 termination fee for expenses incurred if it is
       not the successful bidder at the auction for the
       Montgomery Assets.

All parties interested to make a bid must comply with the
Court-approved bidding procedures and submit their bids by
Sept. 26, 2006.

To qualify as a competing bid, the offer must net the Debtors'
estates at least US$6,180,000 and be accompanied by a certified
check made out to Smith, Gambrell & Russell LLP, the escrow
agent, for not less than US$500,000.

If the Debtors receive a higher or better offer for the
Montgomery Assets, they will conduct an auction at the offices
of Smith Hulsey & Busey in Jacksonville, Florida, on
Sept. 28, 2006.

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




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


BERMUDA COMMERCIAL: Moody's Cuts Financial Strength Rating to D+
----------------------------------------------------------------
Moody's Investors Service downgraded the credit ratings of
Bermuda Commercial Bank Limited aka BCB -- financial strength to
D+ from C- and long- and short-term deposits to Baa3 and Prime-
3, respectively, from Baa2 and Prime-2.  These new ratings are
under review for further possible downgrade.  Moody's rating
action follows the announcement that the BCB's affiliate, First
Curacao International Bank aka FCIB, is under investigation for
money laundering and other illegal activities.

The rating agency said corporate governance concerns at BCB stem
from John Deuss' ownership concentration, which Moody's believes
effectively hinders the board of directors from acting
independently.  Through FCIB, Mr. Deuss controls approximately
47% of BCB's shares.  FCIB is wholly-owned by Mr. Deuss. As a
result of the FCIB investigation, Mr. Deuss, along with Timothy
Ulrich and Tineke Deuss, have temporarily stepped aside from
their responsibilities as directors and officers of BCB.  These
three individuals are currently board members of FCIB.  In the
interim, BCB directors Dr. Clarence Terceira and John Sainsbury
have assumed the roles of chairman and president, respectively.

Moody's said BCB's balance sheet is highly liquid with the bulk
of its assets being held in cash and deposits with banks.  
Furthermore, the bank has no debt and is very highly
capitalized.  Therefore, there is limited risk to depositors.  
Nonetheless, any damage to BCB's reputation could threaten its
somewhat narrow franchise and exposes the bank to event risk.

Moody's cited ongoing corporate governance issues as the main
reason for placing the bank's current ratings on review for
further possible downgrade.  The rating agency said that any
additional negative developments regarding BCB's management or
any involvement by the bank in improper activities would prompt
a downgrade.

These ratings have been lowered and are under review for
possible downgrade:

   -- Financial Strength, to D+ from C-;
   -- Short-term Deposit, to Prime-3 from Prime-2;
   -- Long-term Deposit, to Baa3 from Baa2; and
   -- Issuer, to Baa3 from Baa2.

Bermuda Commercial Bank Limited, headquartered in Hamilton
Bermuda, had assets of US US$859 million as of its fiscal year-
end Sept. 30, 2005.


GET FIT: First General Meeting Is Scheduled for Sept. 26
--------------------------------------------------------
Get Fit Foundation (GEFF) International Limited's shareholders
and creditors will gather for a first meeting at 2:30 p.m. on
Sept. 26, 2006, at:

         Arthur Morris, Christensen & Co.
         16 Par-la-Ville Road
         Hamilton, HM08, Bermuda

Proxy forms to be used at the meeting have been mailed to all
known shareholders and creditors and must be lodged with the
provisional liquidator by 12:00 p.m. on Sept. 25, 2006.

The joint provisional liquidators can be reached at:

         Christopher C. Morris
         Andrew Andronikou
         16 Par-la-Ville Road
         Hamilton, HM08, Bermuda


MONTPELIER RE: Declares US$7.50 Per Share Quarterly Dividend
------------------------------------------------------------
The Board of Directors of Montpelier Re Holdings Ltd. has
declared a quarterly dividend of US$7.50 per common share.  The
dividend is payable on Oct. 16, 2006 to shareholders of record
on Sept. 30, 2006.

Headquartered in Bermuda, Montpelier Re Holdings Ltd., through
its operating subsidiary Montpelier Reinsurance Ltd., is a
premier provider of global property and casualty reinsurance and
insurance products.  During the year ended Dec. 31, 2005,
Montpelier underwrote US$978.7 million in gross premiums
written.  Shareholders' equity at Dec. 31, 2005, was US$1.1
billion.

                        *    *    *

On Jan. 4, 2006, Moody's Investors Service assigned Ba1 rating
on Montpelier Re Holdings Ltd.'s subordinated shelf and Ba2
rating on preferred shelf.  Moody's said the outlook for the
ratings is stable.


REFCO INC: Files Chapter 11 Reorganization Plan
-----------------------------------------------
Refco, Inc., and 25 of its subsidiaries, along with Marc S.
Kirschner, the Chapter 11 Trustee for the estate of Refco
Capital Markets, Ltd., delivered a Chapter 11 plan of
reorganization and accompanying Disclosure Statement to the
Court on Sept. 14, 2006.

The Plan is premised on a consensual pooling of assets and
liabilities of the Debtors, excluding Refco F/X Associates, LLC,
solely to implement the settlements and compromises reached by
the primary constituencies in the Chapter 11 cases, including:

   -- the Debtors;

   -- the RCM Trustee;

   -- the Official Committee of Unsecured Creditors and the
      Additional Committee of Unsecured Creditors;

   -- the Secured Lenders under the Credit Agreement, dated
      Aug. 5, 2004, entered into by Refco Group Limited, Ltd.;
      and

   -- the holders of the 9% Senior Subordinated Notes due 2012
      issued by RGL and Refco Finance Inc.

On the Plan Effective Date, each of the Affiliate Debtors,
except FXA, will be deemed to have merged with and into Refco,
Inc., with Refco, Inc., as the surviving entity.

All non-Debtor Refco Entities will be wound up and dissolved as
soon as practicable and all available cash, after appropriate
wind-up activities, will be distributed to RCM, the Debtors, and
Refco, LLC, on account of intercompany balances or equity
dividends, where applicable.

                    Plan Administrator &
                Creation of Litigation Trust

Refco, Inc., and FXA will continue to exist for the limited
purposes of liquidating all of the assets of the Estates, and
making Distributions in accordance with the Plan.  A Plan
Administrator will be appointed to serve as sole officer and
director or manager, as applicable, of each of the Reorganized
Debtors.

A Litigation Trust will be established to pursue claims any
Debtor or RCM may hold pursuant to Sections 547, 550 and 749 of
the Bankruptcy Code.  The Plan Administrator will serve as
trustee of the Litigation Trust.

The Committees will be dissolved on the Effective Date.  A Plan
Committee will be created, which will have ultimate supervisory
authority over the Plan Administrator.

The Litigation Trust will be structured to provide for a senior
Tranche A and a junior Tranche B.  No Distributions of
Litigation Trust Interests will be made in respect of Tranche B
until Tranche A has been fully and indefeasibly paid.

The Litigation Trustee may establish further separate sub-
Tranches, as necessary.

Beneficiaries of Tranche A Litigation Trust Interests will be:

   1. the RCM Estate;

   2. Holders of General Unsecured Claims against the Chapter 11
      Debtors, except FXA; and

   3. Holders of General Unsecured Claims against FXA.

Holders of Subordinated Claims against the Chapter 11 Debtors,
except FXA, will receive their pro rata share of the Litigation
Trust Proceeds -- Tranche B Litigation Trust Preferred Interests
-- after the beneficiaries of the Tranche A Litigation Trust
Interests have been paid in full.

Holders of Old Equity Interests in the Chapter 11 Debtors,
except FXA, will receive their pro rata share of the Litigation
Trust Proceeds -- Tranche B Litigation Trust Common Interests
-- after the beneficiaries of the Tranche B Litigation Trust
Preferred Interests have been paid in full, to the extent the
Old Equity Interest Holders elect not to receive 10% of any
recovery from claims to be brought by the Litigation Trust
against underwriters of the Aug. 2005 initial public offering.

                Settlements Embodied in Plan

The cornerstone of the Debtors' Plan of Reorganization is a
series of interdependent settlements and compromises of various
debtor-creditor, inter-debtor, and inter-creditor disputes.  The
Settlements are reflected in the relative recoveries of the
various creditor groups under the Plan and are designed to
achieve a global, consensual resolution of the Chapter 11 cases.

The Disputes being resolved by the Settlements include:

   1. RCM Dispute

      Whether certain property held by or on behalf of RCM
      constitutes property of the RCM Estate; whether RCM is a
      "stockbroker" as defined in Section 101(53A) of the
      Bankruptcy Code, and the members of the Moving Customer
      Group Members and certain parties are "customers" of RCM
      as defined in Section 741(2); whether RCM's Chapter 11
      case is required to be converted to a case under Chapter 7
      because RCM is not eligible to be a debtor under Chapter
      11; and whether the MCG Members and Joinder Parties are
      entitled under Section 752 to enforce their claims as
      customers to "customer property" as defined in Section
      741(4);

   2. RCM Claims Priority Dispute

      Whether the RCM Intercompany Claims rank senior to, junior
      to, or pari passu with the Secured Lender Claims and the
      Senior Subordinated Note Claims as a result of contractual
      subordination or equitable subordination under Section
      510(c);

   3. Fraudulent Conveyance/Obligations Dispute

      Whether (i) the Senior Subordinated Note Claims and (ii)
      the US$231,262,500 partial redemption payment made on the
      Senior Subordinated Notes on September 16, 2005, are
      subject to avoidance on the grounds that the bulk of the
      proceeds of the Senior Subordinated Notes was (x) used to
      finance a leveraged recapitalization, and (y) distributed
      to equity holders at a time when the obligors and
      guarantors of the Claims were, or were rendered, insolvent
      or undercapitalized;

   4. Preference Dispute

      Whether the US$231,262,500 Notes Redemption Payment, which
      was made within the 90-day period before the Petition
      Date, constitutes a voidable preference under Section
      547(b) and, if so, whether the failure to return the
      payment to the appropriate Debtor's estate warrants
      disallowance of the Senior Subordinated Note Claims under
      Section 502(d) even if the current holders of the Claims
      were not the entities receiving the preferential payments;

   5. Substantive Consolidation Dispute

      Whether and to what extent the Debtors' estates should be
      treated separately or substantively consolidated for
      purposes of determining the rights of, and making payments
      to, holders of Claims;

   6. Intercompany Claims Disputes

      Whether and in what amount Claims asserted between and
      among the Debtors, RCM, and Refco LLC will be allowed; and

   7. Administrative and Priority Claims Dispute

      Whether and to what extent the liability for
      Administrative Claims and Priority Claims asserted against
      the Debtors or RCM will be allocated between and among the
      Debtors and RCM.

                  Releases Under the Plan

On the Effective Date, these parties will be released from all
claims and liabilities with respect to the Debtors or their
cases:

   (i) the Debtors' directors and officers;

  (ii) RCM and the RCM Trustee;

(iii) the Committees and their members;

   (v) the Debtors, except with respect to Intercompany Claims
       allowed pursuant to the Plan;

  (vi) Bank of America, as Agent for the Secured Lender, and the
       Secured Lenders;

(vii) Wells Fargo Bank, N.A., as indenture trustee under the
       Senior Subordinated Note Indenture, and the Holders of
       the Senior Subordinated Notes arising from or related to
       the Senior Subordinated Note Indenture or any related
       guaranties;

(viii) solely with respect to RCM, the Refco Entities; and

  (ix) the Debtors' professionals.

The non-Debtor entities, however, are not released from any
liabilities or obligations to the United States of America or
its agencies or subdivisions.

                   Conversion of RCM Case

The Plan also contemplates that on or prior to the Effective
Date, the RCM Chapter 11 case will be converted to a case under
subchapter III of Chapter 7 of the Bankruptcy Code.  The
Settlement Agreement among the RCM Trustee; the holders of
securities customer claims against RCM; the foreign exchange
customers of RCM; and Leuthold Funds, Inc., and Leuthold
Industrial Metals Fund, L.P., will govern the administration of
the RCM Estate.

Upon conversion, the Plan will constitute a settlement and
compromise of claims between RCM's Chapter 7 estate and the
Debtors.

The Distributions to RCM's creditors will be governed by the
terms of the RCM Settlement Agreement and the Plan in the event
that the RCM Estate does not convert to Chapter 7.

              Plan Doesn't Apply to Refco LLC

The Plan does not contemplate the disposition of assets and the
resolution of Claims against and Interests in Refco LLC, as
those Claims and Interests are being addressed separately in
conjunction with the administration of Refco LLC's Chapter 7
case.

           Disclosure Statement Hearing on Oct. 16

The Court will convene a hearing on Oct. 16, 2006, at 10:00
a.m. to consider whether the Debtors' Disclosure Statement
contains adequate information within the meaning of Section 1125
of the Bankruptcy Code.  Objections, if any, to the Disclosure
Statement are due Oct. 9.

The Debtors hope to have the Plan confirmed by Dec. 15, 2006.  
The Debtors expect to emerge from bankruptcy by the end of the
year.

The Debtors believe that confirmation of the Plan is not likely
to be followed by liquidation or the need for further financial
reorganization of the Debtors.  The Debtors believe that the
Plan is feasible pursuant to Section 1129(a)(11) of the
Bankruptcy Code.

The Debtors have also determined that the Plan will provide each
holder of a Claim or Interest entitled to vote with an equal or
greater recovery than that holder would have received under a
Chapter 7 liquidation.  The Debtors will present a liquidation
analysis to the Court at a later date to support their
contention.

Consequently, the Debtors urge creditors entitled to vote to
accept the Plan.

A full-text copy of Refco's Plan and Disclosure Statement is
available at no charge at http://researcharchives.com/t/s?11d9

                      About Refco Inc.

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

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

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

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

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 41; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


REFCO INC: Classification & Treatment of Claims Under Plan
----------------------------------------------------------
Refco Inc. and its debtor-affiliates' Plan of Reorganization
separately classifies claims against and interest in:

   * Refco and its 24 affiliates,
   * Refco Capital, Markets, Ltd., and
   * Refco F/X Associates, LLC.

Administrative and priority tax claims against the 25 Debtors,
RCM, and FXA are not classified under the Plan.  Administrative
and priority tax claims will be paid in full in cash.

The Plan groups Claims against and Interest in the 25 Debtors,
except FXA, in eight classes:

Class Designation       Status/Recovery          Voting Rights
----- -----------       ---------------          -------------
  1   Non-Tax Priority  Unimpaired              deemed to accept
         Claims         Paid in full, in cash

  2   Other Secured     Unimpaired              deemed to accept
         Claims         Holder will receive:

                        * payment in full, in
                          cash;

                        * sale or disposition
                          proceeds of property
                          securing any allowed
                          claim to the extent of
                          the lesser of allowed
                          claim amount and value
                          of interest in
                          property; or

                        * surrender to Holder of
                          property securing the
                          claim.

  3   Secured Lender    Impaired                entitled to vote
      Claims            Holder will receive
                        any other amounts to
                        be paid in an early
                        payment order plus
                        releases under the
                        Plan.
                        
  4   Senior            Impaired                entitled to vote
         Subordinated   Holder will receive
         Note Claims    its pro rata share of
                        the sum of US$331,522,195
                        and US$6 million senior
                        subordinated note fees.

  5   General           Impaired                entitled to vote
         Unsecured      Holder will receive a
         Claims         distribution from the
                        Debtors' distributive
                        assets equal to the
                        sum of US$94 million in
                        cash and 50% of Refco
                        Group Ltd., LLC's
                        Interest in Forex
                        Capital Markets, Ltd.

  6   RCM Intercompany  Impaired                entitled to vote
         Claims         Holder will receive:

                        * the sum of RCM rights
                          distribution;

                        * additional RCM claim;

                        * 50% of RGL-FXCM
                          Distribution; and

                        * allocable share of
                          Tranche A litigation
                          trust Interests.
                          Distribution is
                          subject to an
                          administrative
                          claims adjustment.

  7   Subordinated      Impaired                entitled to vote
         Claims         Holder will receive
                        pro rate share of
                        Tranche B Litigation
                        Trust Preferred Assets
                        under the Plan.
     
  8   Old Equity        Impaired                deemed to reject
         Interests      Holder will receive
         Claims         the greater of a pro
                        rata share of:

                        * 10% of an IPO
                          Underwriter Claims
                          Recovery; or

                        * Tranche B Litigation
                          Trust Common Interest
                          under the Plan.

Claims against FXA are grouped in five classes:

Class Designation            Status/Recovery     Voting Rights
----- -----------            ---------------     -------------
  1   FXA Non-Tax Priority   Unimpaired         deemed to accept
         Claims              Paid in full,
                             in cash

  2   FXA Other Secured      Unimpaired         deemed to accept
         Claims              Paid in full,
                             in cash

  3   Secured Lender         Impaired           entitled to vote
         Claims              Paid in any other
                             amounts plus
                             releases
                               
  4   Senior Subordinated    Impaired           entitled to vote
         Note Claims         Holder will waive
                             its claim for the
                             releases

  5   FXA General Unsecured  Impaired           entitled to vote
         Claims              Holder will
                             receive its pro
                             rata share of
                             distribution from
                             FXA's distributive
                             assets, less any
                             amounts paid to
                             FXA Convenience
                             Claimholders.
                               
  6   FXA Convenience        Impaired           entitled to vote
         Claims              Paid in cash equal
                             to 25% of the
                             allowed claim

  7   FXA Subordinated       Impaired           deemed to reject
         Claims              No holder will
                             receive any
                             property or
                             interest.  Claims
                             will be cancelled
                             and extinguished
                             on the Plan's
                             effective date.

RCM's claims are grouped in four classes:

Class Designation       Status/Recovery          Voting Rights
----- -----------       ---------------          -------------
  1   Non-Tax Priority  Unimpaired              deemed to accept
         Claims         Paid in full, in cash

  2   Other Secured     Unimpaired              deemed to accept
         Claims         Paid in full, in cash

  3   RCM FX/Unsecured  Impaired                entitled to vote
         Claims         Holder will receive a
                        pro rata share of
                        distribution for
                        claimholders under the
                        RCM Settlement and
                        proceeds to RCM from
                        the BAWAG settlement.
                        
  4   RCM Securities    Impaired                entitled to vote
         Customer       Holder will receive a
         Claims         pro rata share of RCM
                        Securities Customer
                        Claims Distribution and
                        the RCM BAWAG Proceeds.

Distribution on account of RCM claims will be governed by the
RCM Settlement Agreement.

The Debtors' disbursing agent will make distributions only to
holders of allowed claims and interests.  A holder of a disputed
claim or interest will receive a distribution on account thereof
when and to the extent that its Disputed Claim or Disputed
Interest becomes allowed.

Under the Plan, any holder of an Allowed Claim or Interest may
receive any other less favorable distribution or treatment to
which the holder and the 25 Debtors, FXA, the Reorganized
Debtors or the Plan administrator may agree in writing.

J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in New York, relates that nothing will affect the rights
and defenses of the Debtors and RCM with respect to any
Unimpaired Claims, including all rights on legal and equitable
defenses to setoffs against or recoupments of Unimpaired Claims.

Mr. Milmoe discloses that non-Debtor subsidiary claims will be
classified and treated as general unsecured claims against the
applicable Debtor.  Non-Debtor subsidiary interests will be
treated in accordance with the Plan.

Claims by a Debtor or RCM against another Debtor or RCM are
deemed to be settled and compromised by the provisions of and in
accordance with the Plan, and no distribution will be made on
account of those Clams or Interests.

Mr. Milmoe further states that claims against RCM held by any
Debtor will receive no distribution.  These claims instead are
being released in settlement of all Intercompany Claims asserted
by or against RCM.

Payment of Allowed Administrative Claims, Priority Tax Claims
and Non-Tax Priority Claims of the Debtors and of the RCM Estate
will be allocated such that:

   -- RCM will first provide up to US$60,000,000;

   -- the Debtors will next provide up to US$120,000,000; and

   -- to the extent that the Claims exceed US$180,000,000 in the
      aggregate, RCM and the Debtors will bear the cost of the
      excess equally.

FXA will be responsible for all of its Allowed Administrative
Claims, Priority Tax Claims and Non-Tax Priority Claims.  
Professional services -- other than those related to FXA's
claims resolution process and issues unique to FXA after the
date of the filing of the Plan -- and overhead allocable to FXA
in the period between the Plan Filing Date and the Plan
Effective Date will be borne by RCM and the other Debtors.

In the event that Cargill, Inc., receives an Allowed
Administrative Claim against the Debtors, payment of the Claim
will be borne by RCM and the Debtors:

   (i) to the extent the allowance of the Cargill Administrative
       Claim reduces the Allowed amount of any RCM FX/Unsecured
       Claim held by Cargill, RCM will pay to the Debtors a
       portion of the Cargill Administrative Claim equal to 40%
       of the amount of the RCM Difference;

  (ii) the Debtors will next pay an amount up to the remainder
       of the Cargill Administrative Claim Amount; provided,
       however, that the payment will be capped at the amount
       that would cause recoveries of Holders of Allowed
       Contributing Debtors General Unsecured Claims to fall
       below 30% of the face amount of the Allowed Contributing
       Debtors General Unsecured Claims; and

(iii) if not yet paid in full, the remainder of the Cargill
       Administrative Claim will be borne by the Debtors and RCM
       equally.

Mr. Milmoe notes that an order confirming the Plan will
establish 30 days after the Effective Date as the deadline for
creditors to file their Administrative Claims.  Administrative
Claimholders who are not paid before the Plan's confirmation
will seek payment of administrative expenses on or before the
Administrative Claims Bar Date.

                      About Refco Inc.

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

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

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

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

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News,
Issue No. 41; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)




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


GOLDEN EAGLE: Posts US$613,070 Net Loss in Second Quarter
---------------------------------------------------------
Golden Eagle International, Inc., incurred a US$613,070 net loss
on zero revenue for the three months ended June 30, 2006,
compared to a US$541,812 net loss on zero revenue in 2005, the
Company disclosed in its second quarter financial statements on
Form-10Q to the Securities and Exchange Commission.

The Company's June 30 balance sheet also showed strained
liquidity with US$223,175 in total current assets available to
pay US$2,016,112 in total current liabilities coming due within
the next 12 months.

As of June 30, 2006, the Company's accumulated deficit widened
to US$45.2 million from a US$44.1 million deficit at
Dec. 31, 2005.

A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?11b4

                    Going Concern Doubt

Chisholm, Bierwolf & Nilson, LLC, expressed substantial doubt
about Golden Eagle International Inc.'s ability to continue as a
going concern after it audited the Company's financial
statements for the year ended Dec. 31, 2005.  The auditing firm
pointed to the Company's negative working capital and
substantial losses since its inception.  The Company currently
has no mineral production and requires significant additional
financing to satisfy its outstanding obligations and resume and
expand mining production.

Based in Salt Lake City, Utah, Golden Eagle International, Inc.
-- http://www.geii.com/-- engages in mining and exploration of  
gold and copper projects in the Republic of Bolivia. The company
owns two mineral prospects, including the combined Cangalli and
Tipuani Valley gold properties in western Bolivia, and the Buen
Futuro properties in the Precambrian Shield area of eastern
Bolivia.  It also has interest in the Rio Mojos gold project
area that covers 7,163 acres along a 25-mile section of the
Mojos River, through a joint venture.


PETROLEO BRASILEIRO: Says Bolivia Gas Price Hike Won't Exceed 5%
----------------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras' Gas & Energy director,
Ildo Sauer, informed that the quarterly price raise for the
24,000,000 cubic meter of natural gas Brazil imports from
Bolivia a day is not expected to surpass 5%.  Pursuant to the
agreement in effect, the adjustment will be made in October.  
Mr. Sauer also said that all of the agreements with Brazilian
distributors will be fulfilled, but it is likely that there will
be changes next year.  The main change involves the preference a
few purchasers will have, according to which the product will
only be paid for after it is received, in the amount determined
by the distributor itself.

          Natural Gas Production Will Double In Six Years

Natural gas production and consumption in Brazil is expected to
increase by more than 150% by 2011.  This estimation was made by
Mr. Sauer, who also mentioned that the Brazilian production will
reach 70,000,000 cubic meter per day, compared to the 27,000,000
m3 that are currently supplied to consumers.  If imported gas is
figured in, natural gas sales will surge from 41,000,000 cubic
meter per day to upwards of 100,000,000 cubic meter.

The executive also said that the gas sector will get US$22
billion increase in six years, US$17.6 billion from the company
alone.

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.




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


BANCO NACIONAL: Grants BRL719.4MM Financing to CST's Expansion
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a financing of BRL719.4 million to Companhia
Siderurgica de Tubarao aka CST, a full subsidiary of Arcelor
Brasil.  The funds will be used to expand the plant's production
capacity from the current 5 million tons of steel plates
steel/year to 7.5 million tons of steel plates/year. The project
will generate 800 direct jobs, of which 450 will be at CST and
the remaining 350 will be at the outsourced operating units,
including Sol Coqueria, a subsidiary of the Group created for
the construction of a new coking plant at the plant's land.

BNDES share is equivalent to 28% of total investment, of BRL2.57
billion.  The project provides for the construction of a new
blast furnace with a production capacity of 2.8 million tons of
pig iron, expansion of the steel plant, new continuous ingot
planing, expansion of raw material and finished product
inventory yards, construction of terminals for barges, and
railway investments.  The production of plates will be destined
to the external market and the laminated reels will be sold to
its subsidiary, Vega do Sul, and other clients at the domestic
market.  The new plants will start operations in first
quarter/2007.

BNDES granted the credit under the International Competition
line, which allows for the concession of credit for acquisition
of eligible equipment at an amount up to 100%.  However, the
Bank will finance initially 80% of the domestic equipment.  The
remaining 20% will be released as the company invests in social
programs under its region of influence, provided for in the
operation, and budgeted at BRL6 million. The International
Competition line was created to, at international bids,
guarantee financing conditions to the capital goods sector
compatible with those of foreign companies.

This operation will allow CST to expand its offer of steel
plates, increase its hot rolling capacity with marginal
investments, and its subsidiary, Vega do Sul, to increase its
cold rolling capacity, meeting the expansion of demand for
laminated steel products.  Other investments upon project
completion will be made by third parties.  The principal of them
is the new coking plant, with capacity to produce 1.5 million
tons of coke/year.  Sol Coqueria Tubarao is a joint venture
between CST (62%), Belgo (37%), and Sun Coal and Coke Company, a
technology supplier (1%).

BNDES has a perspective in steel projects with financings
amounting to BRL3.5 billion, in addition to the BRL4 billion
related to the Bank's portfolio for the Base Industry operations
-- which includes the mining, steel industry, metallurgy and
cement sectors -- and will imply in total private investments of
BRL8.3 billion.

CST is specialized in the production and trading of high-quality
semifinished steel (plates) and hot rolled reels.  With 23 years
of operation, it holds a leading position in its segment, with a
solid presence in the international market of plates and a
standing out participation in the domestic market of hot rolled
products.  Today it has 4.3 thousand employees and presents one
of the lowest production costs of plates worldwide.

Arcelor, a Luxembourger group, operates in 60 countries and
produced, in 2005, 46.7 million tons of steel.  The recent
association between the Mittal and Arcelor groups resulted in
the creation of the leading global steel group, accounting for
about 10% of global production, of 1.1 billion tons of steel, in
2005.  Brazil accounted for 2.8% of the total and keeps itself
as an important steel production center, due to the low
production costs of plates.

                        *    *    *

As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook.  The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook. 75% are small
producers and has a staff of 1,400 employees.  After
implementation of the wheat crushing plant, it is expected that
the project will generate 76 direct and 50 indirect jobs.


BANCO NATIONAL: Judge Orders Funding Approval for Rio de Janeiro
----------------------------------------------------------------
Rio de Janeiro said in a release that a judge in the state
ordered the Banco Nacional de Desenvolvimento Economico e Social
aka BNDES to sign a BRL306-million finance contract with the
state for the metro expansion project.

A spokesperson of BNDES told Business News Americas, "We have
not yet received any official communication from the court.  
When we do receive a statement we will comply with the court
order."

According to BNamericas, the BNDES executive board ratified the
loan in June.  The Brazilian national treasury department then
approved the operation in July.

However, BNDES told BNamericas that electoral year laws
prevented the institution from signing the contract within three
months of elections.

BNamericas notes that the state government filed a court
injunction, saying that electoral year restrictions do not apply
to the type of contract it would enter with BNDES.

The report says that the planned extension will run 750 meters
from Copacabana to Ipanema.  The newest station will be built
near Praca General Osorio -- Ipanema's central square -- between
the Rua Barao da Torre and Rua Visconde de Piraja thoroughfares.

RioTrilhos -- the state rail firm -- expected that the project
will cost about BRL478 million, according to BNamericas.  BNDES
will then provide credit worth 64% of the project while the
state government is contributing 36%, or BRL172 million.

BNamericas emphasizes that the BNDES funding will also be used
to buy about 24 new metro cars for line 1, allowing a train to
run every three minutes and increasing capacity by 50,000
passengers daily.

The Rio de Janeiro state will be given 15 years to repay the
loan, with a 42-month grace period, BNamericas reports.

                        *    *    *

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.


GERDAU SA: Unit Closing Melt Shop Operations in Perth Amboy
-----------------------------------------------------------
Gerdau S.A.'s subsidiary Gerdau Ameristeel Corp. disclosed that
it plans to close the melt shop operations at its Perth Amboy,
New Jersey wire rod mill early in the fourth quarter of 2006.  
The Company plans to continue operating the Perth Amboy rolling
mill at its current production level of approximately 500,000
tons of finished wire rod annually.  After closure of the melt
shop, semi-finished steel billets will be more efficiently
supplied to the Perth Amboy rolling mill from available billet
making capacity at other Gerdau Ameristeel melt shop operations.  
Higher grade billets will also be supplied from Gerdau
Ameristeel's majority shareholder Gerdau SA in Brazil and other
third party billet suppliers.

The closure of the melt shop operations will result in an
estimated US$27 million after tax charge (approximately 9 cents
per share) to third quarter 2006 earnings.  Most of the charge,
approximately US$23 million, is a non-cash charge to write off
the book value of the melt shop buildings and equipment.  
Approximately US$4 million is cash costs for severance and take
or pay contract settlements.

Mario Longhi, President and CEO of Gerdau Ameristeel, commented,
"This is a very difficult decision to make as it impacts
dedicated, hard-working employees.  Gerdau Ameristeel will
provide outplacement support and make every effort to help the
displaced employees through this time of transition.  However,
the Company believes that closure of the relatively non-
competitive Perth Amboy melt shop is consistent with global
industry trends towards consolidation and rationalization.
Despite focused efforts over the last several years we have been
unable to bring the Perth Amboy melt shop up to performance and
cost standards dictated by the competitive nature of our
business.  The more efficient semi-finished billet supply from
the Company's other steel-making facilities, and the flexibility
to produce higher quality finished wire rod, is expected improve
the Company's future cash flows and returns."

                    About Gerdau Ameristeel

Gerdau Ameristeel is the second largest mini-mill steel producer
in North America with annual manufacturing capacity of over 9.0
million tons of mill finished steel products.  Through its
vertically integrated network of 17 minimills (including one
50%-owned minimill), 17 scrap recycling facilities and 46
downstream operations, Gerdau Ameristeel primarily serves
customers in the eastern two-thirds of North America. The
Company's products are generally sold to steel service centers,
steel fabricators, or directly to original equipment
manufacturers (or "OEMs") for use in a variety of industries,
including construction, automotive, mining, cellular and
electrical transmission, metal building manufacturing and
equipment manufacturing.  

                        *    *    *

Moody's Investors Service placed on Sept. 6, 2006, Gerdau
Ameristeel Corp.'s Ba2 Corporate Family Rating on review for
possible upgrade.

The review for possible upgrade reflect the superior improvement
in financial metrics and overall financial risk reduction
evidenced by these companies, in combination with Moody's
evolving view regarding the expected duration of the current
steel industry upcycle.  This evolving perspective is primarily
due to fundamental changes that appear to have occurred within
the industry over the last several years, primarily as a result
of industry consolidation.

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

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

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

                        *    *    *

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

                        *    *    *

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


GERDAU SA: Corporacion Sidenor to Acquire 100% Stake in GSB
-----------------------------------------------------------
Gerdau S.A. disclosed that Corporacion Sidenor S.A. of Spain, a
company with an annual capacity of 700 thousand metric tons in
which Gerdau has a 40% stake, has reached a preliminary and non-
binding agreement with Sociedad CIE Automotive for the potential
acquisition of 100% of the capital stock of its subsidiary GSB
Acero S.A., a company with an annual output of approximately 200
thousand metric tons of specialty steel, located in Guipuzcoa,
Spain.

As of Sept. 13, the due diligence and other related processes
began.  Negotiations between Sidenor and CIE Automotive will
continue towards reaching the conditions to complete this
transaction.

The parties involved expect to close the deal throughout the
last quarter of the present year.

Gerdau S.A. has a 40% stake in Corporacion Sidenor S.A. together
with a Santander Group company with another 40%, and the Sidenor
executives' holding company with the remaining 20%.

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

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

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

                        *    *    *

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

                        *    *    *

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


NOVELIS INC: Reduces Debt by US$103 Million in First Quarter
------------------------------------------------------------
Novelis Inc. reported its financial results for the quarter
ended March 31, 2006.

Through strong operating cash flows, the Company reduced its
debt by US$103 million during the first quarter, which was in
excess of its principal payment obligations.  Cash and cash
equivalents at March 31, 2006, were US$124 million, compared
with US$100 million at the end of 2005.

While Novelis generated positive cash flow during the quarter,
it incurred a net loss of US$74 million, or (US$1.00) per
diluted share, on sales of US$2.3 billion, compared with the
first quarter of 2005 when it reported net income of US$22
million, or US$0.30 per diluted share, on sales of US$2.1
billion.  Total rolled product shipments increased to 741
kilotons from 713 kt in the first quarter of 2005, an increase
of approximately 4%.

Included in the net loss for the first quarter of 2006 is US$102
million of income tax expense.  Significant tax expense items in
the quarter include:

   -- a US$33 million increase in valuation allowances primarily
      related to tax losses in certain jurisdictions where the
      company believes, based on current facts and
      circumstances, it is more likely than not that it will not
      be able to utilize those losses;

   -- US$13 million of exchange translation and remeasurement
      items; and

   -- US$44 million due to foreign tax rate differences
      resulting from the application of an estimated annual
      effective tax rate to profit and loss entities.

Of the US$102 million of tax expense for the quarter,
approximately US$10 million is current tax expense.  Cash taxes
paid during the first quarter of 2006 were US$12 million.

"We have incurred significant deferred tax expense during our
first five quarters as a public company," said Chief Financial
Officer, Rick
Dobson.  "While we expect our tax expense to decline by year-
end, we are taking proactive tax planning actions to develop the
most efficient tax structure for the Company."

Earnings before income taxes in the first quarter of 2006 were
US$28 million, compared with US$57 million for the year-earlier
period.  The 2006 pre-tax earnings were negatively affected by a
number of items, including higher metal prices that the company
was unable to pass through to certain customers as a result of
metal price ceilings, higher energy and transportation costs,
the adverse effects of currency exchange rates, and expenses
related to the company's restatement and review process and
delayed financial reporting.

As a result of metal price ceilings on a portion of the
Company's can sheet sales in North America, Novelis was unable
to pass on approximately US$95 million of metal price increases
in the first quarter.  This was partially offset by the positive
change in the fair market value of derivatives purchased to
hedge this risk.

"Novelis business operations remain strong," said William T.
Monahan, Chairman and Interim Chief Executive Officer, "and we
continue to generate solid cash flow as we remain focused on
debt reduction, efficient use of our global assets, and
investments to upgrade our product portfolio.  We also continue
to work toward removing the remaining price ceilings."

                      Filing Deadlines

Under the indenture governing the company's Senior Notes,
Novelis is required to deliver to the trustee a copy of our
periodic reports filed with the United States Securities and
Exchange Commission within the time periods specified by SEC
rules.  As a result of receiving an effective notice of default
from the trustee on July 21, 2006, with respect to its 2005
Annual Report on Form 10-K and its Form 10-Q for the first
quarter of 2006, the company was required to file both financial
reports by Sept. 19, 2006.  By filing the Form 10-Q for the
first quarter of 2006 today, the company has cured this default.

Novelis also received an effective notice of default from the
trustee on Aug. 24, 2006, with respect to its Form 10-Q for the
second quarter of 2006, and is required to file this report by
Oct. 23, 2006.  The company expects to file its Form 10-Q for
the second quarter before the deadline and to be current with
its filings after it files its third-quarter report during the
fourth quarter of the year.

Stated Mr. Monahan, "We have made progress in improving the
quality of our financial reporting process and we expect this
progress to continue through the balance of the year as we work
toward becoming current with our SEC filings."

Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America.  The
company operates in 11 countries and has approximately 13,000
employees.  Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.

Novelis South America operates two rolling plants and primary
production facilities in Brazil.  The company's Pindamonhangaba
rolling and recycling facility in Brazil is the largest aluminum
rolling and recycling facility in South America and the only one
capable of producing can body and end stock.  The plant recycles
primarily used beverage cans, and is engaged in tolling recycled
metal for its customers.

                        *    *    *

Moody's Investors Service downgraded on Sept. 6, 2006, Novelis
Inc.'s corporate family rating to B1 from Ba3, the bank revolver
rating to Ba3 from Ba2, the bank term loan rating to Ba3 from
Ba2 and its senior unsecured notes to B2 from B1.

Moody's also downgraded Novelis Corp's bank term loan rating to
Ba3 from Ba2.  These ratings remain under review for further
possible downgrade.  At the same time, Moody's lowered Novelis'
speculative grade liquidity rating to SGL-4 from SGL-3.


PETROLEO BRASILEIRO: Listed as One of the Most Sustainable Cos.
--------------------------------------------------------------
Petroleo Brasileiro S.A. has been listed as one of the world's
most sustainable companies.  The reason for this is that for the
first time the company was acknowledged in the Dow Jones
Sustainability Index or DJSI, which evaluates the economic,
environmental, and social performance of the companies that sell
their shares at the New York Stock Exchange.

According to Petrobras' Social Responsibility manager, Luiz
Fernando Nery, being listed in the DJSI opens new partnerships
opportunities with international investors, such as the American
pension funds.  "Dow Jones' estimate is that the investment
potential surpasses US$5 billion, not to mention that, in the
long term, the value of the bonds of companies in the list may
increase by up to 15%," he said.

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: Production Reached 2,042,14 Barrels in Aug.
----------------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras' average oil and gas
production in Brazil in August reached 2,042,314 barrels of oil
equivalent per day, a 3.8% increase compared to the same month
last year, and a 1.2% reduction relative to July 2006.  This
small reduction resulted from the scheduled shutdown of platform
P-20 in the Marlim field, Campos Basin.  Including the
production abroad, the average daily oil and natural gas
production, last month, was 2,291,002 barrels of oil equivalent,
a 1% decrease compared to July and to the same month in 2005.

In this same unit, oil and natural gas production, coming from
the eight countries where Petrobras has assets, topped at
248,688 barrels/day, a 1.4% rise compared to the previous
month's total.  This was due to the higher production in Bolivia
and in the United States.

Compared to Aug. 2005, international production was 5.7% lower,
reflecting an operational contract migration in Venezuela to the
mixed company mode with majority participation of PDVSA, that
country's national oil company.  For the same reason, the
company's exclusive oil production abroad, 140,565 barrels, was
below the 156,204 achieved in the same month last year.

Natural gas production in domestic fields was 45,275 m3 a day,
2.2% more than in Aug. 2005 and 2.1% below last month's total.

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: Focusing Investments in Africa & U.S.
----------------------------------------------------------
Petroleo brasileiro S.A. aka Petrobras' International Director,
Nestor Cervero disclosed that the company will concentrate its
investments abroad in Latin America, Africa, and the United
States (Gulf of Mexico).  

Petrobras has approved investments in the order of US$12 billion
in the international market for the 2007-2011 quinquennium.  
This amount is included in the total of US$58 billion the
company will invest in the same period.

"We have confirmed there is great potential in these locations.  
In fact, there has been a change in the international investment
scenario since last year, when we diversified our investments
abroad," explained Mr. Cervero.  The director also emphasized
the recent acquisition of new drilling wells in Angola, for
US$400 million.

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.


TAM SA: Closes Public Offer of BRL500M Nonconvertible Debentures
----------------------------------------------------------------
TAM S.A. concluded the public distribution of nonconvertible
debentures in the amount of BRL500 million, with expiration in
six years and amortization in the 4th, 5th and 6th years.  This
is the first offer of the company's public distribution program
of simple debentures, with duration of 2 years and value up to
BRL1 billion.  The three banks coordinating the operation
informed the market that the 50,000 debentures offered were
subscribed and integrated by a total of 140 investors.

This is the first public offer of debentures of an airline
company in Brazil.  The purpose of the issue is to use the
resources to finance aircraft components for future fleet
expansion. As previously announced, the expectation is to end
2006 with at least 96 aircraft, reaching 127 aircraft at the end
of 2010.

TAM's public distribution of debentures was led by Bradesco as
leading coordinator and Itau BBA and Unibanco, as co-managers.
The debentures will pay 104.5% of the interbank rate ("CDI"),
defined in the book-building.

                         About TAM

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

                        *    *    *

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




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


BANK OF INDIA: Completes Upsized Bank Capital Deal
--------------------------------------------------
Bank of India issued the second upper tier-II issue from an
Indian borrower after UTI Bank, Reuters reports.

The Philippine Daily Inquirer reports that spreads on the Bank
of India issue widened to 197/196 basis points above 10-year US
Treasuries from their launch price of 189.9 bps over.  Bank of
India sold the US$240 million bonds, callable in 2016, late on
Sept. 14, 2006, but analysts said the pricing was aggressive.
The upper tier-II issue garnered over US$1 billion in orders, a
source familiar with the deal said.

Reuters reports that Barclays, Citigroup, Deutsche Bank and HSBC
were the joint bookrunners for the deal.

Finance Asia adds that over 100 accounts took part in the deal.
Geographically, 41% went to Asian accounts, 39% to UK books, 19%
to other Europe, and 1% to offshore US accounts.

In terms of investor type, banks bought 51%, asset and fund
managers took 34%, insurers 8%, retails 2% and others 5%.

Bank of India will use the proceeds to strengthen its capital
adequacy ratio which was last quoted at 10.36% as at June 30.

                       UTI Bank's Issue

Last month, UTI Bank raised US$150 million through a 15-year,
upper tier-II subordinated bond and ICICI Bank, India's second-
largest lender, sold US$340 million in hybrid tier-I securities.  
UTI's move, Finance Asia explains, comes after India's central
bank relaxed guidelines on the issuance of foreign currency debt
and hybrid instruments.

The Baa3/BB- rated UTI Bank upper tier-2 deal is also a 15-year
non-call 10 offering and is trading at 170bp over Libor.

                       Strong Demand

Finacial Asia further reports that other offers attracted strong
demand as investors were betting on India's robust economic
growth.  India's economy is expected to expand 7.5 to 8.0
percent in the fiscal year 2007.  State Bank of India, the
country's largest lender, and Canara Bank Ltd. also plan to
raise U.S. dollar subordinated bonds.

State Bank of India is looking to issue US$200 million through
upper tier-II bonds, while Canara Bank plans to raise US$100
million through hybrid tier-I bonds and US$200 million in upper
tier-II bonds.

                        About UTI Bank

UTI Bank Limited -- http://www.utibank.com-- is engaged in  
treasury and other banking operations.  The treasury services
segment undertakes trading operations on the proprietary
account, foreign exchange operations and derivatives trading.
Revenues of the treasury services segment primarily consist of
fees and gains or losses from trading operations and interest
income on the investment portfolio.  Other banking operations
principally comprise the lending activities (corporate and
retail) of the bank.  The corporate lending activity includes
providing loans and transaction services to corporate and
institutional customers.  The retail lending activity includes
raising of deposits from customers and providing loans and
advisory services to customers through branch network and other
delivery channels.  Total deposits were INR31,712 crores at
March 31, 2006.

                      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 has 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. 8, 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-.


BANK OF INDIA: To Open More Overseas Branches
---------------------------------------------
The Bank of India will embark on a massive expansion program
abroad by opening branches in Tanzania, South Africa, Belgium,
China, Indonesia and Qatar, The Hindu reports.

The bank currently has 24 branches outside India and its
international business accounts for around 20.10% of the bank's
total business.

                      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 has 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. 8, 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-.


BOSTON BRAZIL: Deadline for Claims Verification Is on Sept. 27
--------------------------------------------------------------
Boston Brazil High Yield Fund's creditors are required to submit
proofs of claim by Sept. 27, 2006, to the company's liquidators:

         David A.K. Walker
         Lawrence Edwards
         PricewaterhouseCoopers
         Strathvale House, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Sept. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Boston Brazil's shareholders agreed on Aug. 14, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

         Richard Mottershead
         P.O. Box 258, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914 8656
         Fax: (345) 949 4590


CASSANDRA ASSOCIATES: Proofs of Claim Filing Is Until Oct. 4
------------------------------------------------------------
Cassandra Associates (Cayman), Ltd.'s creditors are required to
submit proofs of claim by Oct. 4, 2006, to the company's
liquidators:

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

Creditors who are not able to comply with the Oct. 4 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Cassandra Associates' shareholders agreed on Aug. 22, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


CP KELCO: Liquidator Won't Accept Proofs of Claim After Oct. 4
--------------------------------------------------------------
CP Kelco Capital Corp.'s creditors are required to submit proofs
of claim by Oct. 4, 2006, to the company's liquidators:

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

Creditors who are not able to comply with the Oct. 4 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

CP Kelco' shareholders agreed on Aug. 22, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


FFP WEST: Creditors Have Until Oct. 4 to File Proofs of Claim
-------------------------------------------------------------
FFP West International Limited's creditors are required to
submit proofs of claim by Oct. 4, 2006, to the company's
liquidator:

         John Sutlic
         Jeff Arkley
         P.O. Box 1034, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Oct. 4 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

FFP West's shareholders agreed on July 21, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

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


JCF RE: Deadline for Filing of Proofs of Claim Is Set for Oct. 4
----------------------------------------------------------------
JCF RE I, LDC 's creditors are required to submit proofs of
claim by Oct. 4, 2006, to the company's liquidators:

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

Creditors who are not able to comply with the Oct. 4 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

JCF RE's shareholders agreed on Aug. 22, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law
(2004 Revision) of the Cayman Islands.


LONGHORN LIMITED: Deadline for Proofs of Claim Filing Is Oct. 4
---------------------------------------------------------------
Longhorn Limited's creditors are required to submit proofs of
claim by Oct. 4, 2006, to the company's liquidator:

         Jamal Young
         Scott Aitken
         P.O. Box 1109, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-7755
         Fax: (345) 949-7634

Creditors who are not able to comply with the Oct. 4 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Longhorn Limited's shareholders agreed on Aug. 18, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


MIRAI LIMITED: Last Day for Proofs of Claim Filing Is on Oct. 4
---------------------------------------------------------------
Mirai Limited's creditors are required to submit proofs of claim
by Oct. 4, 2006, to the company's liquidator:

         Jamal Young
         Scott Aitken
         P.O. Box 1109, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-7755
         Fax: (345) 949-7634

Creditors who are not able to comply with the Oct. 4 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Mirai Limited's shareholders agreed on Aug. 18, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


REGENT PACIFIC: Last Day to File Proofs of Claim Is on Sept. 25
---------------------------------------------------------------
Regent Pacific Fund's creditors are required to submit proofs of
claim by Sept. 25, 2006, to the company's liquidator:

         Lam Hok Chung, Rainier
         P.O. Box 258, George Town
         Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Sept. 25 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Regent Pacific's shareholders agreed on Sept. 4, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

         Jodi Jones
         P.O. Box 258, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 914 8694
         Fax: (345) 945 4237


SL LIMITED: Proofs of Claim Filing Deadline Is Set for Oct. 4
-------------------------------------------------------------
SL Limited's creditors are required to submit proofs of claim by
Oct. 4, 2006, to the company's liquidator:

         Jamal Young
         Scott Aitken
         P.O. Box 1109, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-7755
         Fax: (345) 949-7634

Creditors who are not able to comply with the Oct. 4 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

SL Limited's shareholders agreed on Aug. 18, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


TOP LTD: Creditors Must Submit Proofs of Claim by Oct. 4
--------------------------------------------------------
Top Ltd.'s creditors are required to submit proofs of claim by
Oct. 4, 2006, to the company's liquidator:

         Jamal Young
         Scott Aitken
         P.O. Box 1109, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-7755
         Fax: (345) 949-7634

Creditors who are not able to comply with the Oct. 4 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Top Ltd.'s shareholders agreed on Aug. 18, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.




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


CA INC: Discloses Preliminary Results of Tender Offer
-----------------------------------------------------
CA, Inc., disclosed the preliminary results of its tender offer
which expired at 5 p.m., New York City time, on Sept. 14, 2006.  
In the tender offer, CA offered to purchase for cash up to
40,816,327 shares of its common stock, par value US$0.10 per
share, including the associated rights to purchase Series One
Junior Participating Preferred Stock, Class A at a per share
purchase price of not less than US$22.50 nor greater than
US$24.50 per share, net to the seller in cash, without interest.

In accordance with the terms and conditions of the tender offer,
based on a preliminary count by Mellon Investor Services LLC,
the depositary for the tender offer, CA expects to accept for
purchase approximately 41.2 million shares of its common stock
at a purchase price of US$24.00 per share, for a total cost of
approximately US$989 million.  The preliminary count by Mellon
Investor Services LLC indicates that 41.2 million shares of
common stock, including shares that were tendered through notice
of guaranteed delivery and shares tendered subject to
conditions, were validly tendered and not validly withdrawn at
prices at or below US$24.00 per share.

The number of shares validly tendered and not validly withdrawn
and the purchase price set forth above are preliminary and
subject to verification by Mellon Investor Services LLC.  The
actual number of shares validly tendered and not validly
withdrawn and the final purchase price will be announced
promptly following the verification process.  Thereafter, CA
will promptly commence payment for the shares purchased in the
tender offer.  Any shares validly tendered and not purchased due
to conditional tenders or shares tendered at a price above the
per share purchase price will be returned promptly to the
tendering stockholders.

The shares expected to be purchased in the tender offer
represent approximately 7.3% of CA's 567,282,396 shares of
common stock issued and outstanding as of August 11, 2006.  As a
result of the completion of the tender offer, immediately
following payment for the tendered shares, CA expects that
approximately 526.1 million shares of common stock will be
issued and outstanding.

The dealer managers for the tender offer were Banc of America
Securities LLC, Citigroup Global Markets Inc. and J.P. Morgan
Securities Inc.

                          About CA

Headquartered in Islandia, New York, CA Inc. (NYSE:CA) --
http://www.ca.com/-- is an information technology management     
software company that unifies and simplifies the management of
enterprise-wide IT.  Founded in 1976, CA serves customers in
more than 140 countries.  In Latin America, CA has operations in
Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 7, 2006,
Moody's Investors Service confirmed CA Inc.'s Ba1 senior
unsecured rating and assigned a negative rating outlook,
concluding a review for possible downgrade initiated on
June 30, 2006.  The Ba1 rating confirmation reflects the
company's completed accounting review and reestablishment of
current filing of its 10-K and subsequent 10-Q's, including the
company's filing of its 10-K for its March 2006 fiscal year on
July 31, 2006.

Standard & Poor's Rating Services affirmed its 'BB' corporate
credit and senior unsecured debt ratings on CA Inc., and removed
them from CreditWatch where they were placed on July 5, 2006,
with negative implications.  S&P said the outlook is negative.




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


BETONSPORTS: Costa Rican Employees Allegedly Sell Customer Names
----------------------------------------------------------------
Jim Armitage, writing for the Evening Standard, reports that
employees of the now defunct BetonSports Plc's Costa Rican
operations have been selling databases of customers' names to
the highest bidders.

The lists contain names, email addresses and credit information
of the company's customers.  Mr. Armitage says most of those in
the lists are US gamblers but there are also many Europeans.

The UK gaming company is currently facing a class action suit
filed in the US District Court for the Eastern District of
Missouri on racketeering, mail fraud and facilitation of
gambling across state and national boundaries -- all as results
of taking bets from customers residing in the US.  

BetonSports is also facing complaints from gambling information
portals TheOnlineWire, Gambling 911, Alternative Investments
Market Regulatory News Service over the company's Aug. 11
announcement that payments to customers of its Costa Rican and
Antiguan operations are being held by banks and cash processors.

As a result of the alleged database selling, BetonSports players
had reportedly been receiving marketing emails from other sports
betting companies, Mr. Armitage says.  Also, TheOnlineWire
director Roberto Castiglioni has been passed three customer
database lists from different company sources in Costa Rica.

The class action suits have not yet crippled the company
financially but its shares in the London Stock Exchange have
been suspended from trading.

In Costa Rica, where gambling is legal and gambling companies
pay high taxes to the government, the closure of BetonSports'
operations caused officials to worry.  The company's closure
resulted to the retrenchment of 800 employees.  In an interview,
Costa Rican Vice President Laura Chinchilla wanted to form a
regulation within the nation for the online gambling sector that
would benefit it and its workers.

BetonSports is an online gaming company publicly trading on the
London Stock Exchange, but has no operations in the United
Kingdom.  Around 80% of the company's business operates in the
United States, where sports betting is illegal except in the
State of Nevada.  The group also has operations in Asia,
Argentina and Mexico.


H.J. HEINZ: Shareholders Elect New Members of the Board
-------------------------------------------------------
H. J. Heinz Company reconvened its annual shareholder meeting to
accept the director voting results that were officially
certified by IVS Associates, the independent Inspector of
Elections.  Shareholders elected the following to the Heinz
Board:

   -- Charles E. Bunch,
   -- Leonard S. Coleman, Jr.,
   -- John G. Drosdick,
   -- Edith E. Holiday,
   -- William R. Johnson,
   -- Candace Kendle,
   -- Dean R. O'Hare,
   -- Nelson Peltz,
   -- Dennis H. Reilley,
   -- Lynn C. Swann,
   -- Thomas J. Usher and
   -- Michael F. Weinstein.

William R. Johnson, Heinz Chairman, President and CEO stated, "I
wish to thank Mary Choksi and Peter Coors for their outstanding
service and commitment to Heinz shareholders. They have been
exemplary Directors and will be greatly missed. I would also
like to welcome Nelson Peltz and Michael Weinstein to the Heinz
Board."

Founded in 1869, H. J. Heinz Company markets and produces
branded foods in ketchup, condiments, sauces, meals, soups,
seafood, snacks and infant foods. Key brands include Heinz(R)
Ketchup, sauces, soups, beans, pasta and infant foods, Ore-
Ida(R) French Fries and roasted potatoes, Boston Market(R) and
Smart Ones(R) meals and Plasmon(R) baby food.  Heinz's 50
companies have number-one or number-two brands in 200 countries.
In South America, Heinz operates in Mexico, Costa Rica,
Venezuela and Argentina.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 24, 2006, Moody's Investors Service downgraded the long-
term debt ratings of H.J. Heinz Company and its subsidiaries'
senior unsecured debt to Baa2 from Baa1, preferred stock to Ba1
from Baa3 and retained the negative rating outlook.  The Prime-2
short-term rating of H.J. Heinz Company was affirmed.


H.J. HEINZ: S&P Lowers Preferred Stock Rating to BB+ from BBB-
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
and senior unsecured debt ratings for ketchup and condiment
manufacturer H.J. Heinz Co. to 'BBB' from 'BBB+'.

"We also lowered the company's 'BBB-' preferred stock rating to
'BB+' and the 'A-1 (LOW)' Canadian commercial paper ratings to
'A-2'; the U.S. 'A-2' short-term and commercial paper ratings
have been affirmed," said Standard & Poor's credit analyst
Alison Sullivan.  The ratings were removed from CreditWatch with
negative implications where they were placed on May 23, 2006,
following 5.5% aggregate shareholders Trian Fund Management LP
and Sandell Asset Management Corp.'s release of a position paper
detailing its proposed plan that included a proposal for a more
aggressive financial policy, including increased share
repurchases, dividends, and leverage.  The outlook is stable.  
The company had about US$4.5 billion total debt outstanding at
Aug. 2, 2006.

The downgrade reflects our concern that the confirmed election
of two of the five Trian Group board of director nominees to
Heinz's board could further strain financial policy and may
cause the company to alter its current plans.  While Heinz
management has indicated its intention to maintain their current
financial policy and operations strategy, we believe management
may be faced with pressures from new board members that could
result in a weakening of credit measures. (Trian's initial
proposal had included a more aggressive financial policy and
debt-financed share repurchase plan.)  Credit measures are
already weak for the current rating and are unlikely to improve
in the near term to levels more appropriate for the rating due
to management's previously announced sizable share repurchase
plans.

The ratings on Heinz reflect its broad, strong portfolio of
branded products, geographic diversity, and participation in the
relatively stable packaged and processed food industry.  These
factors are somewhat offset by the company's weakened credit
measures following several debt-financed acquisitions, and by
the numerous restructuring initiatives implemented during the
past few years.




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


* CUBA: Economic Minister Says Nation Won't Adopt Open Policy
-------------------------------------------------------------
Jose Luis Rodriguez, Cuba's economics minister, according to the
Associated Press, said that there won't be changes in the
country's current economic system.  He also underscored that the
Chinese economic model won't be adopted in the nation.  

"If people are thinking that there could be a change in Cuba's
policies toward an opening of the economy in the hypothetical
case of the Comandante (Fidel Castro) remaining ill, I can
firmly say no,'' the economics miniters was quoted by AP as
saying during a news conference.  "It's not planned, nor is it
the desire of the people."

Speculations arose when President Fidel Castro's operation made
his brother, Raul, temporary ruler of Cuba.  Fidel Castro has
not made an appearance at the Nonaligned Movement summit, which
culminates with meetings of 50 heads of state Friday and
Saturday, AP says.  

The minister believes that China's economic model is not
applicable to Cuba whose population and size is much smaller to
the Asian country.  

"We are talking about a country of 1.3 billion habitants versus
one of 11.2 million," Minister Rodriguez said, adding that
peasants make up 80% percent of China's population and the
country does not have to deal with economic sanctions like those
placed on Cuba by the United States, AP relates.  "It seems to
me the comparison is not valid."

On a different note, Minister Rodriguez told the press his
country would discard the dual currency system, just like the
Chinese did.  The plan is to eventually merge the Cuban peso
with the island's convertible Cuban peso.

According to AP, almost all consumer products in Cuba are sold
in convertible Cuban pesos, which replaced the U.S. dollar as a
major force of currency on the island in 2004.  The other
national currency, the Cuban peso, is used to pay government
salaries and for government services such as electricity,
transportation and a monthly food ration.  

                        *    *    *

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


BANCO MULTIPLE: First Caribbean Issuing Bank Under IFC Program
--------------------------------------------------------------
The International Finance Corp., the private sector arm of the
World Bank Group, disclosed that Banco Multiple Leon S.A. of the
Dominican Republic is the first issuing bank to join its Global
Trade Finance Program in the Caribbean.

IFC has approved a trade line for Banco Leon, the third largest
private commercial bank in the Dominican Republic with strong
penetration in the commercial and corporate sectors.

Salem Rohana, IFC's resident representative for the Dominican
Republic, said, "A key objective of IFC in the Caribbean region
is to support import-oriented companies and the growth of small
and medium enterprises.  The Global Trade Finance Program
greatly helps us implement this strategy."

The US$500 million Global Trade Finance Program promotes trade
with emerging markets worldwide by supporting flows of goods and
services to and from developing countries.  Through the program,
IFC provides guarantee coverage of bank risk in emerging
markets, allowing recipients to expand their trade finance
transactions within an extensive network of countries and banks
and to enhance their trade finance coverage.

Antonio Alves, IFC's Latin America trade specialist, said,
"IFC's Global Trade Finance Program will allow Banco Leon to
increase its trade finance business in the region by
establishing relationships with banks in countries that export
to the Dominican Republic, such as Brazil, Mexico, and Colombia.   
Banco Leon will also be able to offer more trade finance
products to its clients."

Manuel Pena-Morros, Banco Leon's president, said, "We are
delighted to begin a relationship with IFC through the Global
Trade Finance Program. This will allow us to continue supporting
our development while enhancing the potential for international
trade companies in the Dominican Republic."

                      About Banco Leon

Banco Leon is a medium-size bank with 56 branches, half in the
metropolitan area of Santo Domingo.  In addition to its strong
position in the credit card market, trade finance has been a
strategic priority for the bank especially for letters of credit
and import financing.

                        *    *    *  

Fitch Ratings revised on Sept. 15, 2006, the Rating Outlook of
Dominican Republic-based Banco Multiple Leon's Issuer Default
Rating to Positive from Stable due to the expected improvement
in performance of the bank in the wake of the recent clean up of
its balance sheet and several capital contributions made by the
current shareholder.

In addition, Fitch affirmed these ratings:

   -- Long-term Issuer Default Rating at 'CCC+';
   -- Short term rating at 'C';
   -- Individual Rating at 'E';
   -- Support Rating at '5';
   -- Long-term national rating at 'BBB(dom)';
   -- Short-term national rating at 'F3(dom)'.


BANCO MULTIPLE: Fitch Revises Issuer Rating Outlook to Positive
---------------------------------------------------------------
Fitch Ratings has revised the Rating Outlook of Dominican
Republic-based Banco Multiple Leon's Issuer Default Rating to
Positive from Stable due to the expected improvement in
performance of the bank in the wake of the recent clean up of
its balance sheet and several capital contributions made by the
current shareholder.

In addition, Fitch affirms these ratings:

   -- Long-term Issuer Default Rating at 'CCC+';
   -- Short term rating at 'C';
   -- Individual Rating at 'E';
   -- Support Rating at '5';
   -- Long-term national rating at 'BBB(dom)';
   -- Short-term national rating at 'F3(dom)'.

BML is the result of the merger of Banco Profesional, a recently
incorporated multiple bank (2002), and Banco Leon, the successor
of the troubled Banco Nacional de Credito aka Bancredito.  Apart
from Bancredito, the Leon family, BML's controlling shareholder,
acquired other financial subsidiaries, including a brokerage
house and a loan workout company, among other non operational
entities.  In addition to banking, the Leon family is the main
shareholder of the Leon Group, which in turn is the largest
industrial group in the Dominican Republic with considerable
interests in the beverage and tobacco sectors.  As of end-2005,
BML ranked fifth out of 12 commercial banks with a 7% market
share by total assets.  BML is a significant player in the
credit card business and a key partner of Visa International in
the Dominican Republic.

BML's ratings reflect the operational support of its sole
shareholder, the Leon family, its adequate liquidity ratios and
the recent improvement in its financial profile.  The ratings
also reflect the constraints imposed by weak asset quality,
tight capital and pressures on profitability.  Since mid-2003,
BML has undergone significant restructuring aimed at enhancing
its financial profile; nevertheless, the volatility of the
operating environment and the significant burden of troubled
loans and impaired investments have precluded a faster
improvement.

Sizeable nonrecurring income and expenses were recorded during
2004, distorting ROAA and ROAE ratios.  During fiscal 2005,
BML's profitability improved due to higher productive assets and
more income diversification, although the bank must continue
controlling costs to enhance future performance.

The loan portfolio received from Bancredito was severely
affected by related party lending and other issues, forcing new
management to charge-off or sell loans to the Central Bank in
order to improve asset quality. Additionally, asset quality has
been strengthened through collection efforts.  Because of these
initiatives, at end-2005 past-due loans represented just 2.4% of
total loans, while loan loss reserve coverage reached an ample
at 300%.

Several capital injections (DOP3,800 million in 2003 and 2004)
have been made in order to enhance the bank's financial profile;
however, capital growth was somewhat limited by the former
Bancredito's negative equity position (DOP3,823 million).  At
end-2005 the bank's equity to assets ratio was 7.3% while its
risk-weighted capital adequacy ratio stood at 10.1%, aided by
the zero percent risk weight of Central Bank securities.  
Similar to other Dominican banks, BML's capital remains low by
international standards, particularly considering the high level
of fixed and foreclosed assets (108% and 15% of equity,
respectively, at end-2005).




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


KAISER ALUMINUM: Leblanc & Waddell Wants US$300,000 Claim Paid
--------------------------------------------------------------
Brett D. Fallon, Esq., at Morris, James, Hitchens & Williams
LLP, in Wilmington, Delaware, relates that Leblanc & Waddell
represented the interests of the CTPV and NIHL claimants in
Kaiser Aluminum Corp.'s Chapter 11 cases.

LeBlanc & Waddell filed nine Louisiana state court lawsuits in
the 34th Judicial Court for the Parish of St. Bernard, involving
over 400 plaintiffs against Kaiser between June 1997 and January
2002.  The Louisiana state court actions remain stayed as a
consequence of Kaiser's bankruptcy filing.

Through the course of their pre-bankruptcy negotiations, Leblanc
& Waddell and Kaiser began crafting an agreement, which formed
the starting point for the eventual NIHL Trust Distribution
Procedures, Mr. Fallon says.

LeBlanc & Waddell states that it has taken all necessary
measures to protect the interests of the NIHL and CTPV claimants
as well as made efforts to assist and contribute to Kaiser's
emergence from bankruptcy.

Pursuant to Sections 503(b)(3)(D) and 503(b)(4) of the
Bankruptcy Code, LeBlanc & Waddell seeks the allowance and
payment of its US$300,000 administrative claim for reimbursement
of a portion of the costs and expenses incurred in its
participation in Kaiser's Chapter 11 cases from April 1, 2002,
through Sept. 5, 2006.

According to Mr. Fallon, the actual amount expended exceeds
US$500,000 but LeBlanc & Waddell is only requesting for
US$300,000, which is the amount of expenses incurred by its
special bankruptcy counsel, Baldwin Haspel LLC.

LeBlanc & Waddell did not divide its billing into project
categories as required by the Court's Local Rules since it was
not retained as a professional, Mr. Fallon explains.  Thus,
LeBlanc & Waddell further asks the Court to waive a strict
compliance with Del. Bankr. L.R. 2016-2 and Form 102.

Mr. Fallon tells the U.S. Bankruptcy Court for the District of
Delaware that Kaiser acknowledges LeBlanc & Waddell's
contribution to its successful emergence from bankruptcy and is
supporting the firm's application for administrative expense
payment.

                        About Kaiser

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company, along with its Jamaican subsidiaries
-- Alpart Jamaica Inc. and Kaiser Jamaica Corp. -- filed for
chapter 11 protection on Feb. 12, 2002 (Bankr. Del. Case No. 02-
10429), and has sold off a number of its commodity businesses
during course of its cases.  Corinne Ball, Esq., at Jones Day,
represents the Debtors in their restructuring efforts.  Lazard
Freres & Co. serves as the Debtors' financial advisor.  Lisa G.
Beckerman, Esq., H. Rey Stroube, III, Esq., and Henry J. Kaim,
Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, and William P.
Bowden, Esq., at Ashby & Geddes represent the Debtors' Official
Committee of Unsecured Creditors.  The Debtors' Chapter 11 Plan
became effective on July 6, 2006.  On June 30, 2004, the Debtors
listed US$1.619 billion in assets and US$3.396 billion in debts.  
(Kaiser Bankruptcy News, Issue No. 105; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 609/392-0900)


KAISER ALUMINUM: Supplements Objection to Agrium's Stay Motion
--------------------------------------------------------------
Kaiser Aluminum & Chemical Corp. and Kaiser Aluminum Properties,
Inc., asserted that the request filed by Agrium, Inc., and
Agrium U.S. Inc. is meritless and should be denied in all
respects, the Troubled Company Reporter reported on
Sept. 6, 2006.

The Agrium Companies sought the U.S. Bankruptcy Court for the
District of Delaware to:

   (a) declare that the automatic stay does not apply;

   (b) interpret Kaiser Aluminum & Chemical Corp.'s Plan to
       determine the appropriate treatment of their claim; and

   (c) modify the discharge injunction to permit them to
       liquidate their claims against the estate, or the
       Reorganized Debtors, and pursue their claims against any
       available insurance.

Kimberly D. Newmarch, Esq., at Richards, Layton & Finger in
Wilmington, Delaware, said that the Agrium Companies' contingent
contribution claim fails to meet these requirements to be
entitled to administrative priority:

    -- the administrative expense arose out of a postpetition
       transaction with the debtor-in-possession; and

    -- the expense directly and substantially benefited the
       estate.

                Kaiser Supplements Objection

Kaiser Aluminum & Chemical Corporation and Kaiser Aluminum
Properties, Inc., inform the Court that they found in their off-
site records a 1985 purchase agreement between KACC and the
Agrium Companies' corporate predecessor, S&P Investments Corp.

Pursuant to the Agreement, KACC indemnified S&P from all
liability arising from the operation of the facility in
Cantrall, Illinois, as well as certain liabilities arising after
the effective date of the Agreement.

The existence of the Agreement, which the Agrium Companies
conveniently ignored, completely undercuts their erroneous
arguments in their request, Kimberly D. Newmarch, Esq., at
Richards, Layton & Finger in Wilmington, Delaware, asserts.

Ms. Newmarch says that the prepetition contract that indemnified
S&P proves that the Agrium Companies' contribution claim
unquestionably dates from the effective date of the Agreement,
thus their arguments that their claim arose postpetition and
that they are entitled to administrative priority are wholly
meritless.

KACC and KAPI maintain that the Agrium Companies' request for
relief from the automatic stay and discharge injunction should
be summarily denied.

                         About Kaiser

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company, along with its Jamaican subsidiaries
-- Alpart Jamaica Inc. and Kaiser Jamaica Corp. -- filed for
chapter 11 protection on Feb. 12, 2002 (Bankr. Del. Case No. 02-
10429), and has sold off a number of its commodity businesses
during course of its cases.  Corinne Ball, Esq., at Jones Day,
represents the Debtors in their restructuring efforts.  Lazard
Freres & Co. serves as the Debtors' financial advisor.  Lisa G.
Beckerman, Esq., H. Rey Stroube, III, Esq., and Henry J. Kaim,
Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, and William P.
Bowden, Esq., at Ashby & Geddes represent the Debtors' Official
Committee of Unsecured Creditors.  The Debtors' Chapter 11 Plan
became effective on July 6, 2006.  On June 30, 2004, the Debtors
listed US$1.619 billion in assets and US$3.396 billion in debts.  
(Kaiser Bankruptcy News, Issue No. 105; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 609/392-0900)




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


BALLY TOTAL: Amends Employment Pacts with Senior Executives
-----------------------------------------------------------
Bally Total Fitness Holding Corp. entered into amendments to the
employment agreements with each of Marc D. Bassewitz, Senior
Vice President, Secretary and General Counsel and James A.
McDonald, Senior Vice President, Chief Marketing Officer.  The
amendments clarify that the definition of "LTIP" includes any
plan under which senior executives of the company are eligible
to receive equity compensation or other long-term incentive
grants, including the company's Inducement Award Equity
Incentive Plan.

On Sept. 14, 2006, Barry M. Deutsch notified the company of his
resignation from the company's Board of Directors, effective
immediately.  Mr. Deutsch's resignation was not due to any
disagreement with the company.

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

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

                        *    *    *

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


EL POLLO: Extends Expiration of Tender Offer to Oct. 16
-------------------------------------------------------
El Pollo Loco, Inc., and EPL Intermediate, Inc., are further
extending the expiration time on the tender offer and consent
solicitation on El Pollo's 11-3/4% Senior Notes Due 2013 and
Intermediate's 14-1/2% Senior Discount Notes Due 2014 to 5:00
p.m. on Oct. 16, 2006.

As of June 26, 2006, El Pollo Loco had received tenders and
consents for US$125,726,000 in aggregate principal amount of the
11-3/4% Notes, representing 100% of the outstanding 11-3/4%
Notes and Intermediate had received tenders and consents for
US$39,342,000 in principal amount at maturity of the 14-1/2%
Notes, representing 100% of the outstanding 14-1/2% Notes.

As previously announced, the requisite consents to adopt the
proposed amendments to the indentures governing the Notes have
been received, and supplemental indentures to effect the
proposed amendments described in the Offer to Purchase and
Consent Solicitations Statement, dated May 15, 2006, have been
executed.  However, the amendments will not become operative
until the Notes are accepted for payment pursuant to the terms
of the Offer.

The Offer is subject to the satisfaction of certain conditions,
including consummation of the Common Stock Offering, El Pollo
Loco entering into a new credit facility, a requisite consent
condition, minimum tender condition, condition that each of the
Offers be consummated and that each of El Pollo Loco and
Intermediate receives consents from a majority of holders of
each of the 11-3/4% Notes and the 14-1/2% Notes and other
general conditions.

Except as described above, all other provisions of the Offer
with respect to the Notes are as described in the Offer to
Purchase.  The Company reserves the right to further amend or
extend the Offer in its sole discretion.

Requests for documents may be directed to:

           Global Bondholder Services Corporation
           Information Agent
           Tel: (866) 937-2200

Additional information concerning the Offer may be obtained by
contacting:

           Merrill Lynch, Pierce, Fenner & Smith Incorporated
           Dealer Manager and Solicitation Agent
           Tel: (212) 449-4914 (collect)
                (888) ML4-TNDR (U.S. toll-free)

                    About El Pollo Loco

El Pollo Loco -- http://www.elpolloloco.com/-- pronounced "L
Po-yo Lo-co" and Spanish for "The Crazy Chicken," is the United
States' leading quick-service restaurant chain specializing in
flame-grilled chicken and Mexican-inspired entrees.  Founded in
Guasave, Mexico, in 1975, El Pollo Loco's long-term success
stems from the unique preparation of its award-winning "pollo"
-- fresh chicken marinated in a special recipe of herbs, spices
and citrus juices passed down from the founding family.

                        *    *    *

As reported in the Troubled Company Reporter on May 23, 2006,
Standard & Poor's Ratings Services expects to raise its
corporate credit rating on El Pollo Loco Inc. to 'B+' from 'B'
upon the successful completion of the company's planned IPO.
S&P said the outlook is stable.  Standard & Poor's also assigned
a 'B+' rating, same as the expected corporate credit rating, to
the company's planned US$200 million senior secured bank loan.
A recovery rating of '2' is also assigned to the loan,
indicating the expectation for substantial recovery of principal
in the event of a payment default.

Moody's Investors Service upgraded El Pollo Loco, Inc.'s
corporate family rating to B1 from B3 and assigned B1 ratings to
the company's proposed US$200 million senior secured credit
facility following the company's proposed initial public
offering of shares of its common stock and planned refinancing
of its existing debt.  At the same time, the SGL-2 Speculative
Grade Liquidity rating was affirmed.  Moody's said the outlook
remains stable.


FORD MOTOR: General Motors Merger Unlikely Says Analysts
--------------------------------------------------------
Industry analysts dismissed a possible merger between General
Motors Corp. and Ford Motor Co. after talks surfaced that the
two rivals had explored a union, Nick Bunkley at the New York
Times reports.

The Automotive News reported that the automakers had discussed
the possibility of a merger or alliance in July this year but
that the talks have concluded.

"We consider it highly doubtful that a merger would take place
and do not see the benefits for either company as they attempt
to restructure." The New York Times quotes Standard & Poor's
analyst Efraim Levy.  Analysts interviewed by Reuters also
questioned the logic of a full-blown merger.

GM and Ford declined to comment on the issue.  In a report from
Reuters, GM spokesman Brian Akre said GM routinely meets with
other automakers to discuss issues of mutual interest.  Mr. Akre
added that, as a policy, GM does not publicly comment on these
discussions.

GM and Ford are in the midst of a financial crisis as both
companies struggle to improve revenues and cut costs.  

Last week, Ford unveiled a revised version of its "Way Forward"
turnaround plan that is seen to further reduce its capacity and
work force, and ramp up new product introductions.  Ford expects
ongoing annual operating cost reductions of approximately $5
billion from its restructuring efforts.

General Motors is also pondering a possible three-way
alliance with Renault SA and Nissan Motor Co.  Reports of a
possible alliance came in the wake of GM's troubles as it faces
market, production and cost issues.  GM is currently
implementing a turnaround plan that involves plant closures and
job cuts.  

                     About General Motors

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the      
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries and its vehicles are sold in 200 countries.

                        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
Corp.

                        *    *    *

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

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

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

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


FORD MOTOR: Fitch Comments on Restructuring Plan
------------------------------------------------
Ford Motor Company's announcement of an accelerated
restructuring plan was incorporated in Fitch Ratings' Aug. 18
downgrade of Ford and Ford Motor Credit Company (FMCC), and no
additional rating action will be taken at this time.  Fitch
currently rates both Ford and FMCC's Issuer Default Rating (IDR)
'B' with a Negative Outlook.

The restructuring plan, including sweeping reductions in
salaried employees and in Ford's North American hourly
workforce, represents an acceleration of the steps outlined in
Ford's Way Forward plan.  Given the severe revenue pressures
that Ford faces in 2006 and 2007, Ford will be forced to realize
deeper, more immediate cost reductions in order to reduce
accelerating cash outflows.

Negative cash flow from operating losses, working capital
reductions and restructuring costs could exceed US$8 billion in
2006, depending on the timing and extent of the accelerated
hourly buyout program. Operating results in first-half 2007
(1H'07) should benefit from the realization of lower salaried
and hourly workforce levels and the effects of the health care
agreement with the UAW.

However, continued share losses, adverse mix issues, lower
production and profitability in Ford's key pickup segment, the
termination of Taurus production in Atlanta, and pricing
pressures will lead to further revenue declines in 2007 that
will offset cost reduction efforts.

The decline in construction activity has hurt deliveries of
pickups, which are likely to feel further share and pricing
pressures upon the introduction of GM's refreshed lineup and the
opening of a new Toyota pickup plant.  Production cuts will also
exacerbate the deep financial stresses in the supply base,
resulting in higher costs and risks of inefficiencies or supply
disruptions.  With continued restructuring through 2007, and a
relatively sparse new product lineup, Ford's progress in
reducing its cash drain will be largely dependent on the extent
of cost reductions.  As a result of restructuring costs, working
capital outflows and operating losses, Fitch expects further
negative cash flow in 2007.

Offsetting factors include strength in certain passenger car
segments, and the reduced impact of further declines in mid-size
and large SUV's given the severity of recent sales declines.  
Although the passenger car segment has not been a significant
contributor to profitability, volume gains and a reduction in
overall costs could make contributions from this segment more
meaningful.  Over the intermediate term, any reversal in
commodity costs would benefit cash flow on a direct basis and
through lower pass-throughs from suppliers.  Quicker resolution
of the ACH assets should also benefit operating results over the
intermediate term.  Fitch also remains concerned about the
impact of talent drains that could result from the difficult
working environment and reduced compensation levels across
Ford's professional staff.  On the manufacturing side,
production inefficiencies or quality issues are a risk given the
substantial change in the workforce composition over the next
two years.  Fitch also remains concerned about the financial
strength of Ford's dealer network.

Over the longer term, reversing negative cash flows will require
the cooperation of the UAW, before and after the opening of the
contract in 2007.  The rejection of the Chrysler health care
agreement also brings into the question whether the historic
pattern agreement between the UAW and the domestic manufacturers
will hold, given the different financial positions and
requirements of the major domestic manufacturers.  In addition
to the recent health care agreement, it appears that a number of
cost and productivity enhancement are taking place at the
factory floor level through changes to work rules, job
classifications, etc. Capacity utilization at Ford remains a
large competitive cost disadvantage, and reaching industry-
competitive levels remains a critical component of the
restructuring plan.  In particular, the addition of Alan Mulally
could benefit Ford's ability to increase the flexibility of its
manufacturing base, and to accelerate the design, engineering,
manufacturing and refreshening process at Ford that currently
lags the industry.

With the incremental restructuring costs in 2006, liquidity at
Ford could drop below $20 billion at year-end 2006 (excluding
any remaining in L/T VEBA that will likely be brought into
short-term holdings). Although adequate to finance the
restructuring program through 2007 at the current rate of
revenue decline, it remains critical for Ford to retain a high
degree of liquidity to finance domestic operation sand to keep
the confidence of suppliers and customers.  Asset sales could
fortify Ford's liquidity position, but major disposition
opportunities are limited and challenging.


GENERAL MOTORS: Court Adjourns Hearings on Contract Rejection
-------------------------------------------------------------
Delphi Corp. disclosed that the US Bankruptcy Court of the
Southern District of New York has granted further adjournments
of trial dates previously set by the Court for contested
hearings on Delphi's motions to reject collective bargaining
agreements and modify retiree benefits under Sections 1113 and
1114 of the Bankruptcy Code and for authority to reject after
notice certain commercial contracts with General Motors Corp.
under Section 365 of the Bankruptcy Code.  The 1113/1114 motion
hearing was previously scheduled to resume on Sept. 18, 2006 and
the 365 motion hearing was scheduled to commence on
Sept. 28, 2006.  The Court has scheduled chambers conferences on
Sept. 28, 2006, for status and scheduling purposes with Delphi
and the respondents to each motion.

The action follows a chambers conference conducted by the Court
on Sept. 14, 2006, and meetings between Delphi and its major
stakeholders including its statutory committees, labor unions
and GM.  The adjournments are intended to allow the parties to
continue to make progress in their discussions.

                    About General Motors

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the     
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries and its vehicles are sold in 200 countries including
Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on July 28, 2006,
Standard & Poor's Ratings Services held all of its ratings on
General Motors Corp. -- including the 'B' corporate credit
rating, but excluding the '1' recovery rating -- on CreditWatch
with negative implications, where they were placed March 29,
2006.  The CreditWatch update followed GM's announcement of
second quarter results and other recent developments involving
its bank facility and progress on the GMAC sale.

As reported in the Troubled Company Reporter on July 27, 2006,
Dominion Bond Rating Service downgraded the long-term debt
ratings of General Motors Corp. and General Motors of Canada
Limited to B.  The commercial paper ratings of both companies
are also downgraded to R-3 (low) from R-3.

As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1'
to General Motor's new US$4.48 billion senior secured bank
facility.  The 'RR1' is based on the collateral package and
other protections that are expected to provide full recovery in
the event of a bankruptcy filing.

As reported in the Troubled Company Reporter on June 21, 2006,
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to US$4.5 billion being proposed by General Motors Corp.,
affirmed the company's B3 corporate family and SGL-3 speculative
grade liquidity ratings, and lowered its senior unsecured rating
to Caa1 from B3.  The rating outlook is negative.


GENERAL MOTORS: Ford Merger Unlikely Says Analysts
--------------------------------------------------
Industry analysts dismissed a possible merger between General
Motors Corp. and Ford Motor Co. after talks surfaced that the
two rivals had explored a union, Nick Bunkley at the New York
Times reports.

The Automotive News reported that the automakers had discussed
the possibility of a merger or alliance in July this year but
that the talks have concluded.

"We consider it highly doubtful that a merger would take place
and do not see the benefits for either company as they attempt
to restructure." The New York Times quotes Standard & Poor's
analyst Efraim Levy.  Analysts interviewed by Reuters also
questioned the logic of a full-blown merger.

GM and Ford declined to comment on the issue.  In a report from
Reuters, GM spokesman Brian Akre said GM routinely meets with
other automakers to discuss issues of mutual interest.  Mr. Akre
added that, as a policy, GM does not publicly comment on these
discussions.

GM and Ford are in the midst of a financial crisis as both
companies struggle to improve revenues and cut costs.  

Last week, Ford unveiled a revised version of its "Way Forward"
turnaround plan that is seen to further reduce its capacity and
work force, and ramp up new product introductions.  Ford expects
ongoing annual operating cost reductions of approximately $5
billion from its restructuring efforts.

General Motors is also pondering a possible three-way
alliance with Renault SA and Nissan Motor Co.  Reports of a
possible alliance came in the wake of GM's troubles as it faces
market, production and cost issues.  GM is currently
implementing a turnaround plan that involves plant closures and
job cuts.  

                      About Ford Motor

Headquartered in Dearborn, Michigan, Ford Motor Company --
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
Corporation.    

                    About General Motors

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the      
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries and its vehicles are sold in 200 countries including
Mexico in Latin America.

                        *    *    *

As reported in the Troubled Company Reporter on July 28, 2006,
Standard & Poor's Ratings Services held all of its ratings on
General Motors Corp. -- including the 'B' corporate credit
rating, but excluding the '1' recovery rating -- on CreditWatch
with negative implications, where they were placed
March 29, 2006.  The CreditWatch update followed GM's
announcement of second quarter results and other recent
developments involving its bank facility and progress on the
GMAC sale.

As reported in the Troubled Company Reporter on July 27, 2006,
Dominion Bond Rating Service downgraded the long-term debt
ratings of General Motors Corporation and General Motors of
Canada Limited to B.  The commercial paper ratings of both
companies are also downgraded to R-3 (low) from R-3.

As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1'
to General Motor's new US$4.48 billion senior secured bank
facility.  The 'RR1' is based on the collateral package and
other protections that are expected to provide full recovery in
the event of a bankruptcy filing.

As reported in the Troubled Company Reporter on June 21, 2006,
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to US$4.5 billion being proposed by General Motors
Corporation, affirmed the company's B3 corporate family and SGL-
3 speculative grade liquidity ratings, and lowered its senior
unsecured rating to Caa1 from B3.  The rating outlook is
negative.


HIPOTECARIA SU: Moody's Rates Proposed US$150MM Sr. Notes at Ba3
----------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to Hipotecaria
Su Casita, S.A. de C.V.'s proposed US$150 million senior notes,
being issued in the USA.  Moody's also assigned a Ba3 global
scale local currency corporate family rating.  Su Casita's
national scale issuer rating at A3.mx and global scale local
currency issuer rating at Ba3 were affirmed. The rating outlook
is stable.  Su Casita is a mortgage Sofol -- a special-purpose
financial company.  Sofols' main function is to extend mortgage
loans to low-income individuals typically under the auspices of
Sociedad Hipotecaria Federal or SHF financing programs, and to
provide construction financing to developers of low-income
housing.

Su Casita proposes to issue US$150 million of 10-year senior
notes, callable after five years.  The notes will rank pari
passu with other unsecured debt.  The notes have various
covenants including: limitations on the incurrence of additional
debt, guarantees, and restricted payments.  The company will
hedge against foreign exchange risk.  Most of the proceeds will
be used to fund the origination of new mortgages, thus providing
Su Casita with funding diversification benefits.

The Ba3 senior unsecured debt rating reflects Su Casita's strong
competitive position and low operating costs, good
profitability, and experienced management.  The company is the
largest mortgage Sofol in Mexico, controlling 23% of the market
(based on total loan portfolio) and has the third-largest
mortgage portfolio in the Mexican financial system.  Su Casita
has a diversified shareholder group with the most independent
board among its peers.  The company's prudent operating and
growth strategies have enabled it to have a solid growth rate
for its portfolio, while at the same maintaining the quality of
its portfolio and having one of the highest operating margins
among its peers. Furthermore, Su Casita continues to be a market
leader in terms of financial innovation, product
diversification, funding diversification and technology.

These strengths are attenuated by the fact that the company
historically has relied heavily on SHF for funding (60% of its
mortgage loan funding comes from SHF) and is subject to
regulatory and political changes.  It is also in a monoline
business, with dependency on low income home financing which
comprises approximately 96% of all loans. In addition the
company has weak capital levels, with a capitalization ratio of
8.8% (consolidated net worth / net loan portfolio). Debt to
assets is high at 88% as of June 30, 2006.

The stable rating outlook is based on Moody's expectation that
Su Casita's management will continue to grow the company
prudently and increase the products it provides, while
maintaining its sound operating margins, and maintaining or
improving its delinquent portfolio.  Furthermore, Su Casita's
management is doing a sound job of assessing market trends and
consumer needs.  Moody's believes that the Sofol's management
team possesses a significant knowledge of the housing industry,
and has a well thought out operating strategy.

Rating improvements will be based on Su Casita's continued
success in soundly diversifying its funding sources while
maintaining its profitability, financial flexibility and
portfolio quality.  Other factors include enhancing its market
position and brand name while increasing product diversification
and improving its pre-tax interest coverage to above 1.3x and
its debt to assets closer to 80%.  Downward rating pressure
would result from lack of improvement in portfolio
diversification efforts, an inability to continue to access
capital sources independent from SHF, a decline in its
liquidity, and a decrease in its operating margins below 45%.  
Additional negative ratings pressure would result from an
increase in delinquent loans to more than 4% of the total
portfolio, an increase in leverage to 90% or an adverse shift in
governmental housing policy.

These ratings were affirmed with a stable outlook:

   -- National scale issuer rating at A3.mx; and
   -- global scale local currency issuer rating at Ba3.

These ratings were assigned with a stable outlook:

   -- Ba3 to proposed US$150 million senior notes being issued
      in the USA; and

   -- Ba3 global scale local currency corporate family rating.

Su Casita, based in Mexico City, Mexico, started operations in
1994 as a non-bank financial institution/Sofol Mortgage Company.  
Su Casita's main activity consists of extending mortgage loans
financed by monies from SHF to low income individuals -- an
important role in the low-income housing market, as there is no
rental market in Mexico.  As of June 30, 2006, the company
reported total assets of approximately MXN26.9 billion, and
MXN$1.96 billion in equity.


NORTEL NETWORKS: Declares Dividends on Class A Preferred Shares
---------------------------------------------------------------
The board of directors of Nortel Networks Limited declared a
dividend on each of the outstanding Cumulative Redeemable Class
A Preferred Shares Series 5 (TSX: NTL.PR.F) and the outstanding
Non-cumulative Redeemable Class A Preferred Shares Series 7
(TSX: NTL.PR.G).  

The dividend amount for each series is calculated in accordance
with the terms and conditions applicable to each respective
series, as set out in the Company's articles.  The annual
dividend rate for each series floats in relation to changes in
the average of the prime rate of Royal Bank of Canada and The
Toronto-Dominion Bank during the preceding month or Prime and is
adjusted upwards or downwards on a monthly basis by an
adjustment factor which is based on the weighted average daily
trading price of each of the series for the preceding month,
respectively.  The maximum monthly adjustment for changes in the
weighted average daily trading price of each of the series will
be plus or minus 4.0% of Prime.  The annual floating dividend
rate applicable for a month will in no event be less than 50% of
Prime or greater than Prime.  The dividend on each series is
payable on Nov. 13, 2006 to shareholders of record of such
series at the close of business on October 31, 2006.

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

                        *    *    *

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

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

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

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


OPEN TEXT: Hummingbird Shareholders Approve Acquisition Bid
-----------------------------------------------------------
Shareholders of Hummingbird Ltd. have overwhelmingly approved
Open Text Corp.'s proposed acquisition of Hummingbird by way of
plan of arrangement at a price of US$27.85 per share.  

At a special meeting of the Company's shareholders held Friday,
shareholders representing more than 56.9% of all shares
outstanding and 99.9% of all votes cast voted in favor of the
transaction, significantly exceeding the required 66% of the
votes cast.

The closing of the transaction is subject to court approval in
Canada as well as the satisfaction or waiver of the other
conditions specified in the arrangement agreement between
Hummingbird, Open Text and a subsidiary of Open Text.  

Hummingbird will now seek final court approval for the
arrangement on Friday, Sept. 22, 2006.  If court approval is
obtained and the other conditions to closing are satisfied or
waived, the transaction is expected to close on or about
Oct. 3, 2006.

                     About Hummingbird

Hummingbird Ltd. -- http://www.hummingbird.com/-- is a global  
provider of enterprise software solutions.  The Company's
enterprise software solutions fall into two principal
categories: enterprise content management solutions, and network
connectivity solutions.  Founded in 1984, Hummingbird employs
over 1,400 people and serves more than 33,000 customers,
including 90% of Fortune 100.  Hummingbird solutions are sold
directly from 40 offices worldwide and through an Alliance
Network of partners and resellers.

                      About Open Text

Open Text Corp. -- http://www.opentext.com/-- provides  
Enterprise Content Management solutions that bring together
people, processes and information in global organizations.  The
company supports approximately 20 million seats across 13,000
deployments in 114 countries and 12 languages worldwide.  It has
one field office in Mexico.


OPEN TEXT: Moody's Rates US$390 Mil. Senior Secured Loan at Ba3
---------------------------------------------------------------
Moody's Investors Service assigns a first-time Ba3 rating to the
senior secured facilities and B1 rating to the corporate family
of Open Text Corp., a leading provider of enterprise content
management software.  The ratings 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-2 for the senior
secured facilities.  Moody's also assigned a SGL-1 speculative
grade liquidity rating, reflecting very good liquidity.  The
ratings outlook is stable.

Open Text is acquiring one of its competitors, Hummingbird Ltd.,
a Canadian-based publicly traded company for US$499 million
(including fees and expenses) to create the second largest ECM
provider with roughly US$670 million in pro forma revenue.  Net
proceeds from the US$390 million senior secured term loan
together with approximately US$109 million of cash-on-hand will
be used to finance the purchase in a leveraged transaction.  The
US$75 million senior secured revolving credit facility will be
undrawn at closing and will be available for working capital and
liquidity purposes.

Open Text's B1 corporate family rating reflects its recession-
resistant operating cash flow, enhanced scale and product
offering post-acquisition and cross-platform solutions, which
help mitigate its high pro forma financial leverage against the
backdrop of a rapidly consolidating industry.  Moody's believes
the combined company's market presence (across basic, enhanced
and extended applications) as the leading independent ECM
provider, ability to leverage complementary products from prior
acquisitions, high gross margins and free cash flow generation
collectively support the B1 rating.  The rating incorporates
Moody's expectations that margins for normalized EBITDA (EBITDA
before restructuring charges less average annualized
restructuring charges) will approach the 20-25% range and that
total debt to normalized EBITDA will migrate to under 3.6x over
the next 12 to 18 months.  Moody's notes both Open Text and
Hummingbird have been fairly acquisitive over the last several
years, which has led to periodic asset impairments, workforce
rationalizations, and cash restructuring charges to exit
unprofitable areas and realign product development.  
Furthermore, Open Text's gross margins have come under slight
pressure due to additional customer support and service
personnel costs from prior acquisitions.  The rating, which also
acknowledges the company's access to new vertical markets and
potential cost synergies from the Hummingbird acquisition,
reflects Moody's expectation of modest-sized acquisition
activity going forward, which is supported by the company's
acquisition track record prior to Hummingbird.  Finally, Moody's
expects the ECM market to continue its consolidation trend and
become increasingly competitive longer-term as larger incumbents
seek to offer better pricing and more functionality to suite
platforms amid vendor reduction programs.

The stable outlook reflects the reasonably predictable software
license/networking business model as well as Moody's expectation
that Open Text will be able to improve financial leverage and
credit protection measures by successfully integrating
Hummingbird into its business, minimizing customer loss and
realizing the planned efficiencies via the combination of two
very similar businesses.  The outlook also recognizes
management's plan to maintain its customer base while profitably
growing the business through cross-sell opportunities into
Hummingbird's reseller channel and extending Open Text's
strategic partner program into Hummingbird's installed base.  
Furthermore, the stable outlook anticipates the company will
successfully implement its debt reduction program and future
acquisition activity will be minimal.

The US$390 million senior secured term loan and US$75 million
senior secured revolver are secured by first priority liens on
substantially all tangible and intangible assets of Open Text
and benefit from upstream guarantees provided by the company's
subsidiaries.  Due to the protection provided by the collateral
package and the senior position of the bank facilities in the
company's debt structure, the term loan and revolver are rated
Ba3, reflecting a LGD-2 loss-given-default assessment.

These first-time ratings are assigned to Open Text:

   * Corporate Family Rating -- B1
   * Probability of Default Rating -- B2
   * US$75 million Senior Secured Revolver due 2011 -- Ba3
   * US$390 million Senior Secured Term Loan due 2013 -- Ba3
   * Speculative Grade Liquidity Rating -- SGL-1

Open Text Corp., headquartered in Waterloo, Ontario, Canada, is
the largest independent provider of enterprise content software
used by global organizations on intranets, extranets, and the
Internet.  The company's software applications allow users to
capture, manage, store, preserve, and deliver content, and
documents related to organizational processes.  For fiscal year
ended June 30, 2006, revenues were US$409.3 million.  Pro forma
for the Hummingbird acquisition, revenues are estimated at
US$668.1 million.


RIO VISTA: Posts US$434,000 Net Loss in 2006 Quarter Ended
----------------------------------------------------------
Rio Vista Energy Partners L.P. reported a US$434,000 net loss on
US$21,299,000 of revenues for the ended June 30, 2006.

The Company's June 30 balance sheet also showed strained
liquidity with US$4,733,000 in total current assets available to
pay US$6,041,000 in total current liabilities coming due within
the next 12 months.

A full-text copy of the regulatory filing is available for free
at http://ResearchArchives.com/t/s?11bf

                     Going Concern Doubt

As reported on the Troubled Company Reporter on May 5, 2006,
Burton Mccumber & Cortez, L.L.P., in Brownsville, Texas, raised
substantial doubt about the ability of Rio Vista Energy Partners
L.P. to continue as a going concern after auditing the Company's
consolidated financial statements for the years ended
Dec. 31, 2004, and 2005.  

                      About Rio Vista

Headquartered in Houston, Texas, Rio Vista Energy Partners L.P.
buys, transports and sells liquefied petroleum gas.  Rio Vista
owns and operates terminal facilities in Brownsville, Texas and
in Matamoros, Tamaulipas, Mexico and approximately 23 miles of
pipelines, which connect the Brownsville Terminal Facility to
the Matamoros Terminal Facility.  The primary market for Rio
Vista's LPG is the northeastern region of Mexico, which includes
the states of Coahuila, Nuevo Leon and Tamaulipas.


SATELITES MEXICANOS: Court Gives Final Nod on Milbank as Counsel
----------------------------------------------------------------
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.'s application to employ Milbank, Tweed, Hadley &
McCloy LLP, as its bankruptcy counsel on a final basis.

As reported in the Troubled Company Reporter on Aug. 22, 2006,
Judge Drain granted the Debtor's application to employ Milbank
Tweed on an interim basis.

As legal counsel, Milbank & Tweed is expected to:

   (a) advise the Debtor of its rights, powers, and duties as
       Debtor and debtor-in-possession in the continued
       management and operation of its business and properties;

   (b) advise and assist the Debtor in connection with the
       solicitation and confirmation of the plan of
       reorganization and related documents;

   (c) advise the Debtor concerning actions that it might take
       to collect and recover property for the benefit of its
       estate;

   (d) prepare on behalf of the Debtor all necessary and
       Appropriate applications, motions, draft orders, other
       pleadings, notices, schedules, and other documents, and
       review all financial and other reports to be filed in the
       Debtor's Chapter 11 case;

   (d) advise the Debtor concerning, and prepare responses to,
       applications, motions, other pleadings, notices, and
       other papers that may be filed and served in the Debtor's
       Chapter 11 case;

   (e) review the nature and validity of any liens asserted
       against the Debtor's property and advise the Debtor
       concerning the enforceability of those liens;

   (f) advise and assist the Debtor in connection with any
       potential asset dispositions;

   (g) advise the Debtor concerning executory contract and
       unexpired lease assumptions, assignments and rejections;

   (h) assist the Debtor in reviewing, estimating, and resolving
       claims asserted against its estate;

   (j) commence and conduct any and all litigation necessary or
       appropriate to assert rights held by the Debtor, protect
       assets of its estate, or otherwise further the goal of
       completing a successful reorganization;

   (k) advise and assist the Debtor with the preparation and
       filing of various documents required for the Debtor's
       compliance with U.S. securities laws; and

   (l) perform all other necessary legal services in connection
       with the Debtor's Chapter 11 case and other general
       corporate matters concerning the Debtor's business.

The Debtor will pay Milbank for its services in accordance with
the firm's standard hourly rates:

          Position                        Hourly Rate
          --------                        -----------
          Partners                      US$600 - US$850
          Of Counsel                    US$590 - US$715
          Associates & Senior Attorneys US$225 - US$565
          Legal Assistants              US$155 - US$295

Mr. Barr assures the Court that Milbank does not represent and
will not represent any entity, other than the Debtor, in matters
related to its Chapter 11 case.

Mr. Barr, however, discloses that Milbank currently represents
The Bank of New York Company, Inc., the indenture trustee for
the Debtor's 10-1/8% Unsecured Senior Notes due Nov. 1, 2004,
and Citibank, N.A., the indenture trustee for the Senior Secured
Floating Rate Notes due June 30, 2004, on matters unrelated to
the bankruptcy case.  Fees derived from Citibank matters
represented over 1% of Milbank's 2005 revenues.

According to Mr. Barr, Milbank has obtained a waiver from Bank
of New York and Citibank to allow it to represent the Debtor.

In the event the Debtor seeks advice with respect to an
adversary proceeding in which either Bank is named as an adverse
party or with respect to a challenge of the claims of the
unsecured creditors for which the Banks act as trustee, Mr. Barr
says the Debtor will retain conflicts counsel.

                 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 August 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: Court Rules on First 90-Day Fee Application
----------------------------------------------------------------
The Honorable Robert D. Drain of the U.S. Bankruptcy Court for
the Southern District of New York, ruled that each professional
whose retention has been approved by the Court may seek, in its
first request for compensation and reimbursement of expenses,
payment for work performed and reimbursement for expenses
incurred during the period beginning on the date of the
professional's retention and ending on Sept. 20, 2006.

The first 90-day fee application period will conclude on
Nov. 20, 2006.  However, if Satelites Mexicanos, S.A. de C.V.'s
Chapter 11 Plan of Reorganization becomes effective prior to
that date, each professional instead will have the time provided
in the Chapter 11 Plan to file a final application for
compensation and reimbursement of expenses.

                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).


SONIC CORP: Inks US$775 Million Credit Agreement
------------------------------------------------
Sonic Corp., in connection with its modified "Dutch Auction"
tender offer, has signed a US$775 million credit agreement with
a syndicate of financial institutions led by Banc of America
Securities LLC and Lehman Brothers Inc.

The Credit Agreement provides for a new senior secured credit
facility, which consists of a US$100 million, five-year
revolving credit facility and a US$675 million, seven-year term
loan facility.

The proceeds of the term loan facility and a portion of the
revolving credit facility will be used to fund the purchase of
shares tendered in the tender offer, refinance certain of the
Company's existing indebtedness and pay the related fees and
expenses.

Funding under the Credit Agreement is subject to certain
conditions, including the condition that shares of the Company's
common stock have been accepted for payment in the tender offer.

Interest on loans under the new senior secured credit facility
will be payable at per annum rates equal to:

   (1) in the case of the revolving credit facility, initially,
       LIBOR plus 175 basis points and adjusting over time based
       upon the Company's leverage ratio; and

   (2) in the case of the term loan facility, initially, LIBOR
       plus 200 basis points and adjusting over time based upon
       the Company's credit ratings with Moody's Investors
       Service Inc.

The Company will pay a commitment fee on the unused portion of
the revolving credit facility, starting at 0.375% and adjusting
over time based upon the Company's leverage ratio.

After completion of the tender offer the Company may pursue a
refinancing of its new senior secured credit facility with a
securitized transaction and has engaged Lehman Brothers as its
sole structuring advisor to evaluate the securitized
transaction.

Stockholders with questions or who would like additional copies
of the tender offer documents may call the information agent,
Georgeson Inc. at (866) 295-3782.  Banks and brokers may call
(212) 440-9800.

Headquartered in Oklahoma City, Oklahoma, Sonic Corp.,
(Nasdaq: SONC) -- http://www.sonicdrivein.com/-- operates and  
franchises the largest chain of drive-in restaurants in the
United States.  As of May 31, 2006, the company owned and
operated 604 restaurants and franchised 2,525 restaurants in 33
U.S. States and in Mexico with significant presence in the
Southern and Midwestern United States.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 16, 2006
Moody's Investors Service assigned a Ba3 corporate family rating
to Sonic Corp., in addition to assigning a Ba3 rating to the
company's proposed US$775 million senior secured credit facility
consisting of a US$100 million revolver and a US$675 million
term loan  B.  These are first-time ratings for Sonic following
the Company's announcement to finance a Dutch auction tender for
approximately US$560 million in share repurchases and to
refinance existing debt.

At the same time, a SGL-2 Speculative Grade Liquidity rating was
also assigned.  The rating outlook is stable.


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

The CreditWatch update follows Valassis' announcement that
Deleware's Court of Chancery set a date of Dec. 11, 2006, to
begin trial proceedings in the company's suit against ADVO Inc.
to rescind the US$1.3 billion merger agreement.  Valassis is
alleging fraud and material adverse changes in ADVO's business.  
The CreditWatch listing reflects the uncertainties surrounding
the resolution of the suit at a time when the company's existing
business operations have been challenged.

Standard & Poor's expects to resolve the CreditWatch listing as
the financial implications (if any) associated with this lawsuit
become clearer.  It expects that this may occur sometime in the
March 2007 quarter.  However, it may resolve the CreditWatch
listing sooner if sufficient information becomes available.  In
addition to considering the potential financial impact
associated with the lawsuit, we will assess the prospects for
Valassis' businesses, which have been under pressure.  Also, if
the merger agreement is rescinded, Valassis' long-term financial
policy priorities will factor meaningfully into its analysis.




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


GAZPROM OAO: Mulls Investment in Panama Pipeline
------------------------------------------------
Gazprom OAO is in talks with Panamanian officials regarding a
possible participation of Russia's state-owned oil firm in the
construction of a natural gas pipeline linking Panama with South
America, the Tehran Times reports.

According to the same report, the project was the focus of a
meeting between Gazprom chief Alexei Miller and Panama's deputy
trade and industry minister, Manuel Jose Paredes.

Panama, lacking its own hydrocarbon resources, has built oil
infrastructure that includes a pipeline to Colombia and storage
facilities, which can accommodate 16.9 million barrels.  The
country is also considering building a refinery to receive
Mexican crude, the Tehrah Times says.

Gazprom's pipe-laying expertise includes building a 1,400
kilometers of long-distance pipelines and feeder branches and
building eight large compressor stations and underground
facilities, according to the Tehran Times.

Meanwhile, the Russian firm has unofficially received overtures
from Brazil, Argentina and Venezuela, who plan to build a US$20
billion transcontinental pipeline.  Gazprom's interest in the
countries lie in their liquefied gas production expertise, the
Tehran Times relates.

                        About Gazprom

Headquartered in Moscow, Russia, OAO Gazprom (RTS: GAZP; MICEX:
GAZP; LSE: OGZD) -- http://www.gazprom.ru/eng-- produces 94% of          
the country's natural gas, controls 25% of the world's reserves,
and is also the world's largest gas producer.  It focuses on gas
exploration, processing, transport, and marketing.   Standard &
Poor's Services raised on Jan. 17, 2006, its long-term
corporate credit rating on OAO Gazprom to 'BB+' from 'BB'.

                        *     *     *

As reported in TCR-Europe on Jan. 18, Standard & Poor's
Services raised its long-term corporate credit rating on OAO
Gazprom to 'BB+' from 'BB'.

As reported in the TCR-Europe on Oct 27, 2005, Fitch
upgraded Gazprom International S.A. Series 1 US$1.25-billion
structured export notes due Feb. 1, 2020 (XS0197695009) to 'BBB'
from 'BBB-'.

The upgrade follows Fitch's upgrade of OAO Gazprom's, the
world's largest gas company, Senior Unsecured local and foreign
currency to 'BB+' from 'BB', and a change in Gazprom's
going concern assessment, which is now equivalent to a 'BBB'
rating compared to 'BBB-' previously.


SOLO CUP: Moody's Lowers Corporate Family Rating to B3 from B2
--------------------------------------------------------------
Moody's Investors Service lowered Solo Cup Company's Corporate
Family Rating to B3 from B2.  Moody's also lowered ratings on
Solo Cup's second lien credit facility and senior subordinated
notes one notch to Caa1 and Caa2, respectively.  The rating on
the first lien credit facility remains unchanged at B2.  The
ratings remain on review for possible downgrade.

On Aug. 16, 2006, Moody's placed Solo Cup on review for possible
downgrade after the company announced that there would be a
temporary delay in filing financial statements with the U.S.
Securities and Exchange Commission and that it was undertaking
an internal review of certain accounting matters related to
timely recognition of certain customer credits, accounts payable
and accrued expenses, and the valuation of certain assets.  The
review was to cover fiscal periods commencing with the SF
Holdings transaction in February 2004 in which Solo Cup acquired
Sweetheart Cup Company.

Moody's believes that Solo Cup's integration of Sweetheart has
been less smooth than originally envisioned, with higher than
expected expenses owing to persistent duplicative costs.  The
integration of computer systems is behind Moody's prior
expectations, with the company indicating on its August 16
conference call that its new IT platform would be implemented
later than expected and that spending on the system has been a
factor in elevated expense levels.

For the quarter ended April 2, 2006, Solo Cup exhibited adjusted
total debt to trailing twelve months EBITDA of well over 6.0
times and EBIT interest coverage of less than 1.0 times, after
application of Moody's standard adjustments for operating leases
and pensions.  These financial metrics are weak for the B2
rating category, implying a low return on assets and an
inability to cover interest expense.  In combination with the
uncertainty that has arisen as a result of the failure to file
financial statements and the need for the review of accounting
practices, the financial profile is inconsistent with a B2
corporate family rating.  

Moody's took these rating actions:

   -- Corporate Family Rating: lowered to B3 from B2;

   -- US$80 million senior secured second lien term loan due
      March 31, 2012, lowered to Caa1 from B3; and

   -- US$325 million 8.5% subordinated notes due Feb. 15, 2014,
      lowered to Caa2 from Caa1.

These ratings remain unchanged:

   -- US$150 million senior secured revolving credit facility
       maturing Feb. 27, 2010: B2; and

   -- US$638 million senior secured term loan B due
      Feb. 27, 2011: B2

The ratings remain on review for possible downgrade, pending the
outcome of the accounting review and the filing of financial
statements.  After the company files its financial statements,
Moody's will assess the company's historical and prospective
financial performance, leeway to operate under financial
covenants, and stability of its competitive profile.

Headquartered in Highland Park, Illinois, Solo Cup Company with
annual revenues of about US$2.4 billion is one of the largest
domestic manufacturers of disposable paper and plastic food and
beverage containers used in the foodservice and retail consumer
markets. Products include cups, lids, straws, napkins, cutlery,
and plates.




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


PRIDE INTERNATIONAL: Appoints Rodney Eads as COO
------------------------------------------------
Pride International, Inc., has named Rodney W. Eads to the
position of Executive Vice President and Chief Operating
Officer, where he will assume responsibility for the Company's
worldwide offshore operations and Eastern Hemisphere land
assets.

Mr. Eads will join the Company immediately from Diamond Offshore
Drilling, Inc. where, since 1997, he has been Senior Vice
President, Worldwide Operations and responsible for Diamond's
offshore drilling fleet.  Mr. Eads previously was employed by
Exxon Corporation from 1980 to 1997 where he held several
executive and operations management positions, primarily in
international assignments, including Drilling Manager, Exxon
Company International.  Prior to that, Mr. Eads was a Senior
Drilling Engineer with Arabian American Oil Company and a
Petroleum Engineer with Cities Service Company.  He holds a
Bachelor of Science degree in Chemical Engineering from the West
Virginia Institute of Technology and a Master of Business
Administration degree from Rice University.

Louis Raspino, President and Chief Executive Officer, commented,
"We are happy to welcome Rodney to the Company and are excited
to benefit from his broad offshore and executive management
experience, including an extensive background in international
and deepwater operations from both an Operator and Drilling
Contractor perspective.  Rodney brings to our organization a
sharp focus on operational excellence and customer satisfaction,
and he will play a major leadership role in the continuing
transformation of Pride."

Headquartered in Houston, Texas, Pride International, Inc. --
http://www.prideinternational.com/-- is a drilling contractor.  
The Company provides onshore and offshore drilling and related
services in more than 25 countries, operating a diverse fleet of
278 rigs, including two ultra-deepwater drillships, 12
semisubmersible rigs, 28 jackup rigs, 18 tender-assisted, barge
and platform rigs, and 218 land rigs.  Pride also provides a
variety of oilfield services to customers in Argentina,
Venezuela, Bolivia and Peru.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on contract driller Pride International Inc. and
removed the rating from CreditWatch with negative implications.
The outlook is stable.  As of June 30, 2006, Houston, Texas-
based Pride had US$1.01 billion in adjusted debt.

As reported in the Troubled Company Reporter on Aug. 17, 2006,
Fitch Ratings raised Pride International's Issuer Default Rating
to 'BB' from 'BB-'.  Fitch also raised the ratings on Pride's
senior secured revolving credit facility, senior unsecured notes
and their convertible senior notes.




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


ADELPHIA: Wants to Amend William Schleyer's Employment Agreement
----------------------------------------------------------------
Adelphia Communications Corp. and the Official Committee of
Unsecured Creditors seek authority from the U.S. Bankruptcy
Court for the Southern District of New York to:

    (a) amend the existing employment and compensation agreement
        with William Schleyer, ACOM's chief executive officer
        and chairman of the board of directors,

    (b) implement an extended post-closing incentive program for
        the Debtors' two Executive Vice Presidents, and

    (c) implement an extended post-closing incentive program for
        certain key employees at the level of Senior Vice
        President and below.

Shelley C. Chapman, Esq., at Willkie Farr & Gallagher LLP, in
New York, reminds the Court that the ACOM Debtors have closed
the sale of substantially all of their assets to Time Warner NY
Cable LLC and Comcast Corp.  The Debtors' Third Modified Fourth
Amended Joint Plan of Reorganization Under Chapter 11 of the
Bankruptcy Code for Century-TCI Debtors and Parnassos Debtors
became effective on July 31, 2006.

Since then, distributions in excess of $1.2 billion have been
made to creditors under the JV Plan.

Notwithstanding the closing of the Sale and the consummation of
the JV Plan, Ms. Chapman says, ultimate recoveries for the
remaining creditors will be determined in large part by work
that remains to be completed.

According to Ms. Chapman, the ACOM Debtors have a number of
ongoing responsibilities, including:

    -- oversight and assistance with the audit;

    -- calculation of purchase price adjustments in connection
       with the Sale;

    -- continuing work on the restatement;

    -- the claims reconciliation process;

    -- compliance with the post-close requirements under the
       asset purchase agreements executed in connection with the
       sale;

    -- compliance with the government settlement; and

    -- the completion of certain tax filings.

The Debtors' Court-approved Post-Closing Incentive Program did
not provide for retention of Mr. Schleyer and Ronald Cooper, its
resident and chief operating officer.  Each had the right under
his employment agreement to terminate his employment for Good
Reason upon the consummation of the Sale.  Mr. Cooper exercised
this right and resigned last month.

The Board of Directors and the Official Committee of Unsecured
Creditors want to provide additional incentives to ensure that
Mr. Schleyer remained in the ACOM Debtors' employ beyond the
Sale, and that Brad Sonnenberg, the Debtors' General Counsel,
and Vanessa Wittman, the Debtors' Chief Financial Officer, and
approximately 45 other senior managers, who were covered by the
Post-Closing Incentive Program remained in the Debtors' employ
for a longer period than that contemplated by the Post-Closing
Incentive Program.

Ms. Chapman relates that the chief executive officer, executive
vice presidents, and Key Managers lead teams that have
irreplaceable institutional knowledge of matters and projects
that must be addressed and completed prior to the Debtors'
successful emergence from chapter 11.  "Their intimate
familiarity with the complicated issues that remain in [the
Debtors'] cases renders this group uniquely qualified to guard
against the potential value degradation that threatens the
estates if the post-closing tasks . . . are not completed timely
and properly."

While each of the approximately 275 employees who, pursuant to
the Post-Closing Incentive Program, have remained for the wind-
down and transition period is important to ongoing restructuring
efforts, the chief executive officer, the executive vice
presidents, and the Key Managers are the linchpins of their
teams, Ms. Chapman says.  The Debtors believe that many of the
employees who have continued their employment with the Debtors
during the pre-Sale and post-closing transition periods have
done so, in large part, due to their close working relationships
with the chief executive officer, the executive vice presidents
and the Key Managers.

"The premature departure of the CEO, either of the EVPs, or even
just a handful of the Key Managers could result not only in
significant financial losses to the estate, but could also
trigger more widespread departures among the Debtors' remaining
personnel," Ms. Chapman relates.  Cognizant of the risk, the
Creditors' Committee approached the Debtors with the goal of
designing and implementing an enhanced compensation program for
the chief executive officer, the executive vice presidents, and
Key Managers that would provide them with an incentive to remain
with the estates for a period of time sufficient to coordinate
and oversee the work that remains to be done.

Furthermore, the Creditors' Committee and the Debtors believe,
and expect, that an enhanced compensation program will yield the
exceptional cooperation and greater integration between the
present management, and the Creditors' Committee and its
professionals and nominees that is essential to effectuating a
smooth transition to the substantially reduced management team
that will be winding down the Debtors after their chapter 11
cases are substantially concluded.

To facilitate the formulation of the program in what was a
necessarily compressed timeframe, the Creditors' Committee
deputized one of its members, along with counsel to certain
members of the Creditors' Committee, to facilitate negotiations
among the Board, the chief executive officer, the executive vice
presidents and certain of the Key Managers.

After several weeks of discussions among the principal
participants, the parties reached an agreement as to the terms
of the applicable post-closing compensation arrangements and
incentive programs.  While the extended programs impose a
relatively modest incremental cost on the estates of
approximately US$4 million, the Debtors and the Creditors'
Committee consider it money well spent.

                Amended Schleyer Agreement

Among others, the amendments to the Schleyer Employment
Agreement provide that:

    (a) Mr. Schleyer will resign immediately as chief executive
        officer and chairman of the Board upon the ACOM Debtors'
        emergence from Chapter 11;

    (b) Mr. Schleyer will continue as a consultant to the
        Debtors to effect a smooth wind-down of the estates;

    (c) Mr. Schleyer will be paid a bonus of 100% of his base
        salary for the period from July 31, 2006, until
        March 31, 2007.  The Schleyer Adjusted Base Salary will
        be paid bi-weekly.

A full-text copy of the Amendment is available for free at
http://ResearchArchives.com/t/s?11bc

                Extended EVP Incentive Program

In lieu of participation in the Post-Closing Incentive Program,
the executive vice presidents will participate in the Extended
EVP Post-Closing Incentive Program and continue their employment
with the Debtors from Aug. 1, 2006, through Dec. 31, 2006 --
Post Close Period.  At the sole discretion of the Creditors'
Committee, the EVPs executive vice presidents may continue to be
employed by the Company from Jan. 1, 2007, through March 31,
2007 -- Extended Post Close Period.

The Extended EVP Post-Closing Incentive Program provides that
executive vice presidents employed during the Post Close Period
will receive a bonus equal to five months of Adjusted Base
Salary.  The executive vice presidents employed during the
Extended Post Close Period will receive a bonus equal to three
months of Adjusted Base Salary.

A full-text copy of the Extended EVP Post-Closing Incentive
Program Term Sheet is available for free at
http://ResearchArchives.com/t/s?11bd

               Extended Employee Post-Closing Program

A group of Key Managers at the level of Senior Vice President or
below whose continued employment is of invaluable benefit to the
Debtors' estates will be offered participation in the Extended
Employee Post-Closing Incentive for an assigned period of time.

The program provides that Participants will be entitled to
receive a bonus equal to a percentage of their Adjusted Base
Salary.  The bonus percentage and amount will increase for
longer periods of employment with the Debtors.  Specifically,
Participants assigned an EKERP Period from Aug. 1, 2006, through
Nov. 30, 2006, will receive a bonus equal to 50% of an amount
equal to the Aggregate Adjusted Base Salary for the period from
Aug. 1, 2006, through the earlier of the end of the EKERP Period
or Nov. 30, 2006.

Participants assigned an additional EKERP Period from
Dec. 1, 2006, through April 30, 2007, will receive a bonus equal
to 75% of an amount equal to the Aggregate Adjusted Base Salary
for the period from Dec. 1, 2006, through the earlier of the end
of that EKERP Period or April 30, 2007.  Participants employed
on or after May 1, 2007, will receive a bonus equal to 100% of
an amount equal to the aggregate Adjusted Base Salary for the
period from May 1, 2007, until the end of their assigned EKERP
Period.

A full-text copy of the Extended Post-Close Incentive Program
Term Sheet is available for free at
http://ResearchArchives.com/t/s?11be

              About Adelphia Communications Corp.

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

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.  (Adelphia Bankruptcy News, Issue Nos. 148; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000)


ADELPHIA: Wants to Employ Hogan & Hartson as Special Counsel
------------------------------------------------------------
Adelphia Communications Corp. and its debtor-affiliates seek
the authority of the U.S. Bankruptcy Court for the Southern
District of New York to employ Hogan & Hartson, LLP, as their
special counsel to continue to represent them with respect to
contract analyses and negotiations as well as with respect to
environmental compliance issues.

The Debtors retained Hogan & Hartson as an ordinary course
professional in Feb. 2003 pursuant to the OCP Order.

Because the firm has almost reached the aggregate cap for
ordinary course professionals, and because the Debtors intend to
continue to use Hogan & Hartson's services, Shelley C. Chapman,
Esq., at Willkie Farr & Gallagher LLP, in New York, says the
Debtors have determined that it is necessary to retain Hogan &
Hartson as special counsel.

According to Ms. Chapman, Hogan & Hartson provides general
representation to its clients in numerous areas, including
corporate, regulatory and litigation matters and maintains
offices throughout the world.

The firm has extensive knowledge of the Debtors' businesses and
the environmental issues that the Debtors' encountered in the
course of their businesses.

Hogan & Hartson will be paid on an hourly basis, plus
reimbursement of actual and necessary expenses incurred.  The
firm's rates for attorneys range between US$270 per hour and
US$575 per hour, while rates for paralegals range between US$130
per hour and US$205 per hour.

According to Hogan & Hartson's books and records, it has
received, to date, US$519,113.

Scott H. Reisch, Esq., a partner at Hogan & Hartson LLP, tells
the Court that since the Debtors' filing for chapter 11
protection, the Debtors owe his firm outstanding postpetition
fees of US$59,696 and expenses of US$363 through July 31, 2006.

Mr. Reisch assures the Court that Hogan & Hartson does not hold
or represent any interest adverse to the Debtors or the Debtors'
estate.

            About Adelphia Communications Corp.

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

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.  (Adelphia Bankruptcy News, Issue Nos. 148; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000)




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


JETBLUE AIRWAYS: Fitch Lowers Issuer Default Rating to B from B+
----------------------------------------------------------------
Fitch Ratings has downgraded the debt ratings of JetBlue Airways
Corp. as:

   -- Issuer Default Rating to 'B' from 'B+'; and
   -- Senior unsecured convertible notes to 'CCC/RR6' from
      'B-/RR6.'

This action affects approximately US$425 million of outstanding
debt. The Rating Outlook for JetBlue is 'Stable'.

Fitch's downgrade reflects JetBlue's highly leveraged capital
structure and its relatively weak margin performance in a
generally improving U.S. airline industry-operating environment.  
Although planned growth rates for 2006 and beyond have been
scaled back in response to unit revenue and fuel cost pressures
in transcontinental and Northeast-to-Florida markets served by
the Airbus A320, JetBlue is likely to face a continuation of
challenging operating conditions that will put pressure on
margins and operating cash flow over the next several quarters.
Heavy capital spending commitments and financing requirements
linked to scheduled deliveries of A320 and Embraer 190 (E190)
aircraft will keep leverage high and free cash flow
substantially negative for an extended period, limiting
opportunities for balance sheet strengthening.

Management's recent statements regarding capitalization and
liquidity priorities point to an increasing focus on liquidity
-- as measured by the ratio of cash and investments on hand to
LTM revenues -- as the most important indicator of balance sheet
condition.  As lease-adjusted debt to total adjusted
capitalization rises above 75% (formerly maintained as a target
leverage level), equity issuance in the near term appears
unlikely as an alternative to debt financing.

Progress toward margin recovery has been made since April, when
the company rolled out a plan to drive a return to profitability
through more aggressive yield management and productivity
improvements. Operating margins in the second quarter improved
to 7.7% from an operating loss margin of -5.2% in the first
quarter, but fell from 9.4% in the year-earlier period. Better
sequential results came largely as a result of very strong
average fare growth (15% year-over-year) resulting from domestic
capacity rationalization and heavy demand.  Cost reduction
initiatives call for approximately US$35 million in full-year
2006 operating cost savings, driven in particular by crew
productivity gains and fuel conservation.  Management is
targeting improvement in the ratio of full-time equivalent
employees to aircraft to a level of 80 by year-end 2007,
bringing JetBlue's productivity more closely into line with that
of low-cost leader Southwest Airlines. Productivity gains of
this kind, if achieved, should limit increases in non-fuel cost
per available seat mile and help the airline deliver better
margin performance into 2007.  Non-fuel CASM has been pressured
since late 2005 by the introduction of the 100-seat E190, as
average stage lengths and aircraft utilization levels have
declined.

High fuel costs remain a concern, despite the recent decline in
crude oil and refined product prices to early 2006 levels.  
Average jet fuel prices of US$2.06 per gallon (net of hedges) in
Q2 increased 38% year-over-year, and fuel drove 34% of total
operating expenses in the quarter.  As of June 30, JetBlue had
40% of remaining 2006 fuel purchases hedged via crude oil swaps
(average price of US$68 per barrel) and heating oil contracts
(average price of US$2.10 per gallon).

With respect to the capacity outlook, Fitch believes that the
planned sale of 5 A320 aircraft in 2006 and the deferral of 12
A320 deliveries between 2007 and 2009 represents a prudent step
toward capacity restraint that should improve cash generation
and operating performance.  Reduction of scheduled service in
some of the worst-performing A320 markets, together with
maintenance cost savings, should support the airline's margins
moving into 2007.  Moreover, the ramp-up of demand in higher-
yielding E190 markets should bolster system-wide RASM
performance next year.  Fitch expects unit revenue growth rates
to moderate somewhat over the next few quarters, particularly if
leisure travel demand weakens as part of a general slowdown in
U.S. consumer spending.  Still, a benign capacity environment,
made possible in large part by the absence of large U.S.
aircraft orders, should lead to continued JetBlue RASM growth in
2007.

JetBlue faces no immediate liquidity pressure, with US$468
million of cash, cash equivalents and investment securities on
the balance sheet as of June 30.  This total was augmented by
US$15 million in availability on a US$77 million facility to
cover aircraft pre-delivery deposits. JetBlue's cash position
was equivalent to approximately 23% of its revenue over the past
12 months, largely in line with measures at the other large U.S.
airlines.  The company does not maintain a bank credit facility,
and all of its aircraft are either encumbered under debt
agreements or leased.  JetBlue's wholly-owned LiveTV subsidiary
could be monetized, and represents a potential source of
flexibility should liquidity concerns intensify in a more
difficult operating environment.

The airline's secured debt, made up of both fixed and floating-
rate secured aircraft notes, totaled US$2.09 billion at June 30.  
Unsecured debt totaled US$425 million and consisted of US$250
million in 3.75% convertible debentures due in 2035 and US$175
million in 3.5% convertible notes due in 2033.  There are no
significant restrictive covenants associated with JetBlue's debt
agreements.

The recovery rating of 'RR6' assigned to JetBlue's two series of
convertible notes reflects the preponderance of secured debt in
the airline's capital structure and the expectation that
enterprise values in a post-default reorganization scenario
would likely result in weak recoveries for unsecured creditors.




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


* VENEZUELA: Proposes Amendment to Electric Service Law
-------------------------------------------------------
The government of Venezuela proposed to revise the electric
service law to prevent the state from selling its electricity
assets and firms to private entities, according to a report by
El Universal.

Business News Americas relates that the amendment would prevent
firms like hydro generator Edelca -- which generates 72% of
Venezuela's electricity -- and Cadafe, the nation's largest
fully integrated electric firm, from being privatized.

However, the reform does not make the case for nationalizing
private electricity firms and assets, El Universal relates.  

El Universal notes that the amendment will allow -- if public
interest considers it appropriate -- the participation of
private capital in the expansion of the electric system.

The revision will be presented to the pro-government national
assembly soon, El Universal reports.

                        *    *    *

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


* VENEZUELAN: Forecast Predicts 22% Growth in Trade
---------------------------------------------------
The Economic Commission for Latin America and the Caribbean --
Eclac -- estimated that Venezuelan trade is to increase by 22%
at the end of 2006 as a direct result of high oil prices, El
Universal reports.

Eclac said in a statement that trade of goods in the region is
expected to rise 6%, based on the high oil and metallic minerals
demand.

"Successful trade in the region in 2006 is partly the result of
improved trade terms (the ratio between export prices and import
prices,)" El Universal cited Eclac's statement.

                        *    *    *

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


* BOND PRICING: For the Week of Sept. 11 -- Sept. 15, 2006
----------------------------------------------------------

Issuer                               Coupon   Maturity  Price
------                               ------   --------  -----
ABC Rail Product                     10.500%  01/15/04     1
ABC Rail Product                     10.500%  12/31/04     1
Adelphia Comm.                        3.250%  05/01/21     0
Adelphia Comm.                        6.000%  02/15/06     1
Adelphia Comm.                        7.500%  01/15/04    58
Adelphia Comm.                        7.750%  01/15/09    60
Adelphia Comm.                        7.875%  05/01/09    56
Adelphia Comm.                        8.125%  07/15/03    60
Adelphia Comm.                        8.375%  02/01/08    60
Adelphia Comm.                        9.250%  10/01/02    59
Adelphia Comm.                        9.375%  11/15/09    62
Adelphia Comm.                        9.500%  02/15/04    54
Adelphia Comm.                        9.875%  03/01/05    55
Adelphia Comm.                        9.875%  03/01/07    59
Adelphia Comm.                       10.250%  06/15/11    63
Adelphia Comm.                       10.250%  11/01/06    58
Adelphia Comm.                       10.500%  07/15/04    58
Adelphia Comm.                       10.875%  10/01/10    60
Allegiance Tel.                      11.750%  02/15/08    45
Allegiance Tel.                      12.875%  05/15/08    48
Amer & Forgn Pwr                      5.000%  03/01/30    67
Amer Color Graph                     10.000%  06/15/10    70
Ames Dept. Stores                    10.000%  04/15/06     0
Antigenics                            5.250%  02/01/25    64
Anvil Knitwear                       10.875%  03/15/07    69
Armstrong World                       6.350%  08/15/03    67
Armstrong World                       6.500%  08/15/05    68
Armstrong World                       7.450%  05/15/29    65
Armstrong World                       9.000%  06/15/04    66
At Home Corp.                         4.750%  12/15/06     0
ATA Holdings                         12.125%  06/15/10     2
Autocam Corp.                        10.875%  06/15/14    61
Avado Brands Inc                     11.750%  06/15/09     1
Bank New England                      8.750%  04/01/99     4
Bank New England                      9.500%  02/15/96    11
BBN Corp                              6.000%  04/01/12     0
Big V Supermarkets                   11.000%  02/15/04     0
Budget Group Inc                      9.125%  04/01/06     0
Burlington North                      3.200%  01/01/45    56
Calpine Corp                          4.000%  12/26/06    25
Calpine Corp                          4.750%  11/15/23    49
Calpine Corp                          6.000%  09/30/14    39
Calpine Corp                          7.625%  04/15/06    73
Calpine Corp                          7.750%  04/15/09    74
Calpine Corp                          7.750%  06/01/15    35
Calpine Corp                          7.875%  04/01/08    74
Calpine Corp                          8.500%  02/15/11    51
Calpine Corp                          8.625%  08/15/10    52
Calpine Corp                          8.750%  07/15/07    73
Calpine Corp                         10.500%  05/15/06    74
Cell Therapeutic                      5.750%  06/15/08    58
Charter Comm Hld                     10.000%  05/15/11    71
Chic East Ill RR                      5.000%  01/01/54    50
CIH                                   9.920%  04/01/14    66
CIH                                  10.000%  05/15/14    65
CIH                                  11.125%  01/15/14    67
Clark Material                       10.750%  11/15/06     0
Collins & Aikman                     10.750%  12/31/11     8
Color Tile Inc                       10.750%  12/15/01     0
Columbia/HCA                          7.500%  11/15/95    69
Comcast Corp                          2.000%  10/15/29    39
Comprehens Care                       7.500%  04/15/10    65
Cray Research                         6.125%  02/01/11     5
Curagen Corp                          4.000%  02/15/11    73
Dal-Dflt09/05                         9.000%  05/15/16    24
Dana Corp                             5.850%  01/15/15    71
Dana Corp                             7.000%  03/15/28    74
Delco Remy Intl                       9.375%  04/15/12    58
Delco Remy Intl                      11.000%  05/01/09    62
Delphi Trust II                       6.197%  11/15/33    67
Delta Air Lines                       2.875%  02/18/24    24
Delta Air Lines                       7.541%  10/11/11    38
Delta Air Lines                       7.700%  12/15/05    24
Delta Air Lines                       7.900%  12/15/09    24
Delta Air Lines                       8.000%  06/03/23    26
Delta Air Lines                       8.270%  09/23/07    75
Delta Air Lines                       8.300%  12/15/29    25
Delta Air Lines                       8.540%  01/02/07    73
Delta Air Lines                       9.200%  09/23/14    73
Delta Air Lines                       9.250%  03/15/22    24
Delta Air Lines                       9.375%  09/11/07    63
Delta Air Lines                       9.750%  05/15/21    23
Delta Air Lines                       9.875%  04/30/08    68
Delta Air Lines                      10.000%  06/01/11    58
Delta Air Lines                      10.000%  06/05/13    74
Delta Air Lines                      10.000%  08/15/08    26
Delta Air Lines                      10.060%  01/02/16    73
Delta Air Lines                      10.080%  06/16/07    65
Delta Air Lines                      10.125%  05/15/10    26
Delta Air Lines                      10.375%  02/01/11    24
Delta Air Lines                      10.375%  12/15/22    22
Deutsche Bank NY                      8.500%  11/15/16    68
Dov Pharmaceutic                      2.500%  01/15/25    57
Dura Operating                        8.625%  04/15/12    73
Dura Operating                        9.000%  05/01/09    16
Dura Operating                        9.000%  05/01/09    59
Duty Free Int'l                       7.000%  01/15/04     0
Dyersburg Corp                        9.750%  09/01/07     0
Eagle-Picher Inc                      9.750%  09/01/13    74
Encysive Pharmac                      2.500%  03/15/12    74
Epix Medical Inc.                     3.000%  06/15/24    70
Fedders North AM                      9.875%  03/01/14    70
Federal-Mogul Co.                     7.375%  01/15/06    56
Federal-Mogul Co.                     7.500%  01/15/09    58
Federal-Mogul Co.                     8.160%  03/06/03    50
Federal-Mogul Co.                     8.330%  11/15/01    58
Federal-Mogul Co.                     8.370%  11/15/01    53
Federal-Mogul Co.                     8.800%  04/15/07    58
Finova Group                          7.500%  11/15/09    30
Ford Motor Co                         7.125%  11/15/25    75
Ford Motor Co                         7.400%  11/01/46    75
Ford Motor Co                         7.700%  05/15/97    74
GB Property Fndg                     11.000%  09/29/05    51
Graftech Intl                         1.625%  01/15/24    74
Gulf Mobile Ohio                      5.000%  12/01/56    73
Gulf States Stl                      13.500%  04/15/03     0
HNG Internorth                        9.625%  03/15/06    36
Home Prod Intl                        9.625%  05/15/08    67
Inland Fiber                          9.625%  11/15/07    65
Insight Health                        9.875%  11/01/11    48
Iridium LLC/CAP                      10.875%  07/15/05    25
Iridium LLC/CAP                      11.250%  07/15/05    26
Iridium LLC/CAP                      13.000%  07/15/05    23
Iridium LLC/CAP                      14.000%  07/15/05    26
Isolagen Inc.                         3.500%  11/01/24    72
K&F Industries                        9.625%  12/15/10    70
Kaiser Aluminum                       9.875%  02/15/02    33
Kaiser Aluminum                      12.750%  02/01/03    10
Kellstrom Inds                        5.500%  06/15/03     0
Kitty Hawk Inc                        9.950%  11/15/04     2
Kmart Corp                            8.540%  01/02/15    28
Kmart Corp                            8.990%  07/05/10     4
Kmart Corp                            9.350%  01/02/20    12
Kmart Funding                         8.800%  07/01/10    30
Liberty Media                         3.750%  02/15/30    56
Liberty Media                         4.000%  11/15/29    63
Lifecare Holding                      9.250%  08/15/13    75
Macsaver Financl                      7.400%  02/15/02     4
Macsaver Financl                      7.600%  08/01/07     3
Macsaver Financl                      7.875%  08/01/03     0
Merisant Co                           9.500%  07/15/13    66
Merrill Lynch                        10.000%  08/15/12    72
Movie Gallery                        11.000%  05/01/12    66
MSX Int'l Inc.                       11.375%  01/15/08    70
Muzak LLC                             9.875%  03/15/09    56
New Orl Grt N RR                      5.000%  07/01/32    66
Northern Pacific RY                   3.000%  01/01/47    56
Northern Pacific RY                   3.000%  01/01/47    56
Northwest Airlines                    6.625%  05/15/23    48
Northwest Airlines                    7.248%  01/02/12    20
Northwest Airlines                    7.625%  11/15/23    48
Northwest Airlines                    7.875%  03/15/08    50
Northwest Airlines                    8.700%  03/15/07    47
Northwest Airlines                    8.875%  06/01/06    48
Northwest Airlines                    9.179%  04/01/10    23
Northwest Airlines                    9.875%  03/15/07    51
Northwest Airlines                   10.000%  02/01/09    49
Northwest Airlines                   10.500%  04/01/09    50
Northwest Stl&Wir                     9.500%  06/15/01     0
NTK Holdings Inc                     10.750%  03/01/14    68
Oakwood Homes                         8.125%  03/01/09     7
Oscient Pharm                         3.500%  04/15/11    68
OSU-Dflt10/05                        13.375%  10/15/09     0
Outboard Marine                       7.000%  07/01/02     0
Outboard Marine                       9.125%  04/15/17     0
Outboard Marine                      10.750%  06/01/08     4
Overstock.com                         3.750%  12/01/11    74
Owens Corning                         7.000%  03/15/09    57
Owens Corning                         7.500%  05/01/05    56
Owens Corning                         7.500%  08/01/18    57
Owens Corning                         7.700%  05/01/08    57
Owens-Corning Fiber                   8.875%  06/01/02    55
Owens-Corning Fiber                   9.375%  06/01/12    75
PCA LLC/PCA Fin                      11.875%  08/01/09    20
Pegasus Satellite                     9.625%  10/15/49    11
Pegasus Satellite                     9.750%  12/01/06    12
Pegasus Satellite                    12.375%  08/01/06     9
Pegasus Satellite                    12.500%  08/01/07    12
Phar-mor Inc                         11.720%  09/11/02     0
Piedmont Aviat                       10.250%  01/15/49     1
Pixelworks Inc                        1.750%  05/15/24    71
Plainwell Inc                        11.000%  03/01/08     2
Pliant Corp                          13.000%  07/15/10    40
Polaroid Corp.                        6.750%  01/15/02     0
Polaroid Corp.                        7.250%  01/15/07     0
Polaroid Corp.                       11.500%  02/15/06     0
Primus Telecom                        3.750%  09/15/10    50
Primus Telecom                        8.000%  01/15/14    64
PSINET Inc                           10.500%  12/01/06     0
Radnor Holdings                      11.000%  03/15/10    24
Railworks Corp                       11.500%  04/15/09     1
Read-Rite Corp.                       6.500%  09/01/04    18
RJ Tower Corp.                       12.000%  06/01/13    38
Rotech Healthcare                     9.500%  04/01/12    70
Salton Inc                           12.250%  04/15/08    74
Solectron Corp                        0.500%  02/15/34    73
Tekni-Plex Inc.                      12.750%  06/15/10    73
Tom's Foods Inc                      10.500%  11/01/04     9
Toys R Us                             7.375%  10/15/18    71
Tribune Co                            2.000%  05/15/29    65
Triton Pcs Inc.                       8.750%  11/15/11    69
Triton Pcs Inc.                       9.375%  02/01/11    70
Tropical Sportsw                     11.000%  06/15/08     7
Twin Labs Inc.                       10.250%  05/15/06     2
United Air Lines                      7.270%  01/30/13    56
United Air Lines                      7.870%  01/30/19    54
United Air Lines                      9.020%  04/19/12    56
United Air Lines                      9.350%  04/07/16    30
United Air Lines                      9.560%  10/19/18    61
United Air Lines                     10.020%  03/22/14    45
United Air Lines                     10.125%  03/22/15    50
United Homes Inc                     11.000%  03/15/05     0
US Air Inc.                          10.250%  01/15/49     5
US Air Inc.                          10.250%  01/15/49    11
US Air Inc.                          10.300%  07/15/49     6
US Air Inc.                          10.550%  01/15/49    45
US Air Inc.                          10.680%  06/27/08     2
US Air Inc.                          10.700%  01/01/49    22
US Air Inc.                          10.700%  01/15/49    23
US Air Inc.                          10.700%  01/15/49    44
US Air Inc.                          10.700%  01/15/49    45
US Air Inc.                          10.700%  01/15/49    45
US Air Inc.                          10.700%  01/15/49    45
US Air Inc.                          10.750%  01/01/49     0
US Air Inc.                          10.750%  01/15/49    25
USAutos Trust                         5.100%  03/03/11    75
Venture Holdings                      9.500%  07/01/05     1
Venture Holdings                     11.000%  06/01/07     0
Vesta Insurance Group                 8.750%  07/15/25    10
Werner Holdings                      10.000%  11/15/07    22
Westpoint Steven                      7.875%  06/15/05     0
Westpoint Steven                      7.875%  06/15/08     0
Wheeling-Pitt St                      6.000%  08/01/10    69
Winn-Dixie Store                      8.875%  04/01/08    71
Winsloew Furniture                   12.750%  08/15/07    26
World Access Inc                     13.250%  01/15/08     4
Xerox Corp.                           0.570%  04/21/18    34
Ziff Davis Media                     12.000%  07/15/10    40


                         ***********


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

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

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

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

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

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


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