TCRLA_Public/060920.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 20, 2006, Vol. 7, Issue 187

                          Headlines

A R G E N T I N A

ACXIOM CORP: Gets US$277.8 Mil. in "Dutch Auction" Tender Offer
BANCO RIO: Will Work with Enfoke to Facilitate Small Businesses
CAR SECURITY: Moody's Assigns B3 Global Local Currency Rating
LAS QUINTAS: Estudio Contable Named Trustee for Insolvency Case
MINERALES ARGENTINOS: Trustee Verifies Claims Until Nov. 1

MULTICONIC SA: Claims Verification Deadline Is Set for Oct. 27
NECOPLAST SA: Verification of Proofs of Claim Is Until Nov. 16
PROVEEDORA ARGENTINA: Claims Verification Is Until Nov. 20
SEPRINCO SRL: Deadline for Verification of Claims Is on Nov. 16
TRANS AGRO: Seeks for Court Approval to Reorganize Business

* ARGENTINA: Will Negotiate with Paris Club to Pay US$6.3B Debt

B A H A M A S

WINN-DIXIE: Wants Protective Order on Visagent Discovery
WINN-DIXIE: Wants to Reject Four Louisiana Store Leases

B E R M U D A

HUTCHISON HARBOUR: Proofs of Claim Filing Is Until Sept. 27
QUANTA CAPITAL: Completes Sale of Environmental Strategies Unit

B O L I V I A

PETROLEO BRASILEIRO: Intensifies Gas Price Talks with Bolivia
YPF SA: Parent Firm Renews Operations at Bolivian Well

* BOLIVIA: State Firm Intensifies Gas Price Talks with Petrobras
* BOLIVIA: State Firm Renews Vibora Well Operations with Repsol

B R A Z I L

BANCO NACIONAL: Grants BRL19MM Loan to Transpo. Project in Serra
BRASKEM SA: Gets US$183.855 Mil. Early Tenders for 12.50% Notes
COMPANHIA SIDERURGICA: Keen on Offering Wheeling Cash for Bid
COMPANHIA SIDERURGICA: Merger with Wheeling Likely to Succeed
GERDAU SA: Sidenor May Acquire Sociedad CIE Subsidiary

GOL LINHAS: Declares 3Q Dividend of BRL0.12782 Per Share
COMPANHIA DE SANEAMENTO: Moody's Ups Sr. Debenture Rating to Ba3
PETROLEO BRASILEIRO: Closing Talks on Shareholding Structure

C A Y M A N   I S L A N D S

ARES TOTAL: Proofs of Claim Filing Deadline Is Set for Oct. 4
DIVI TIARA: Management & Staff to Meet on Firm's Closure
EMPEROR LIMITED: Liquidator Won't Accept Claims After Oct. 4
FOUR VALLEYS: Creditors Have Until Oct. 4 to File Claims
FRUCTOSE LIMITED: Filing of Proofs of Claim Is Until Oct. 4

GLOBAL EMERGING: Creditors Must Submit Proofs of Claim by Oct. 4
KENMAR-NIHON EQUITY: Proofs of Claim Must be Filed by Oct. 4
KENMAR-NIHON PREMIER: Proofs of Claim Must be Filed by Oct. 4
KENMAR-NIHON PREMIER I: Claims Filing Deadline Is on Oct. 4
LEVERAGED BUYOUT: Creditors Must File Proofs of Claim by Oct. 4

MOORE OVERSEAS (LDC): Proofs of Claim Filing Is Until Oct. 4
MOORE OVERSEAS (LTD): Filing of Proofs of Claim Is Until Oct. 4
RS PROPERTY: Last Day to File Proofs of Claim Is on Oct. 4
RUTHERFORD ASSET: Deadline for Proofs of Claim Filing Is Oct. 4

C H I L E

GERDAU SA: Chilean Unit Won't Return to Natural Gas for Power

C O L O M B I A

CA INC: Extends Agreement to Provide Introscope Access to SAP
CA INC: Declares Quarterly Cash Dividend of US$0.04 Per Share
CA INC: Inks Marketing & Distribution Pact with Spare Backup

* COLOMBIA: Hydrocarbons Regulator Gets COP312 Bil. in Royalties

C O S T A   R I C A

* COSTA RICA: Anticipates European Union's Tariff Reduction

C U B A

* CUBA: Inks Five Bilateral Cooperation Accords with Iran

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Court to Disclose Fraud Case Trial Date

* DOMINICAN REPUBLIC: Expects to Earn US$80M from Banana Exports
* DOMINICAN REPUBLIC: IMF Notes Success In Restoring High Growth

E C U A D O R

PETROECUADOR: Claims US$360MM Worth of Crude Is Stolen Yearly
PETROECUADOR: Will Probe on Theft of Crude Oil Through Pipelines

G U Y A N A

DIGICEL LTD: Gets Telecom License in Guyana

H A I T I

* HAITI: Receives US$492-Million Donation from United States
* HAITI: IMF Sees Eligibility for Assistance Under HIPC Program

J A M A I C A

AIR JAMAICA: Will Not Lay Off Workers Nor Reduce Routes
DIGICEL LTD: Jamaica Network Aims to Compete with Firm
KAISER ALUMINUM: Reports Payments to Ordinary Course Employees
NATIONAL COMMERCIAL: Unit Falls Into Theft

M E X I C O

FINANCIERO BANORTE: Denies Rumors on Firm's Sale
FORD MOTOR: Inks Consulting Agreement with John R.H. Bond
FORD MOTOR: In Talks with GM for Possible Merger, Report Says
FORD MOTOR: S&P Maintains Negative Watch on B+ Long-Term Rating
GENERAL MOTOR: In Talks with Ford for Likely Merger, Report Says

GENERAL MOTORS: GMAC Offers to Buy Deferred Interest Debentures
GRUPO MEXICO: No Firm in Mind for Buyout or Merger
GRUPO SENDA: Fitch Assigns B Local & Foreign Curr. Issuer Rating
EMPRESAS ICA: Inks Two Construction Contracts for MXN1.35 Mil.
OPEN TEXT: Earns US$5 Million in Fiscal 2006

OPEN TEXT: Stable Market Position Spurs S&P to Assign BB- Rating
PORTRAIT CORP: Moody's Withdraws All Ratings
SATELITES MEXICANOS: Hires Galicia y Robles as Special Counsel

P A N A M A

AES CORP: Regulator's Study on Concession Requests Almost Done
CHIQUITA BRANDS: Posts Lower Banana Prices

P E R U

* PERU: Congress Decides to Get Rid of Basic Telephone Charge
* PERU: Establishes Committee with China to Boost Bilateral Ties

P U E R T O   R I C O

ADELPHIA COMMUNICATIONS: Files Modifications to 5th Amended Plan
DELTA MUTUAL: June 30 Balance Sheet Upside-Down by US$1.3 Mil.
MICRON TECHNOLOGY: Toshiba Settles Suit with US$288 Mil. Payment
MUSICLAND HOLDING: Files First Amended Joint Plan of Liquidation
MUSICLAND HOLDING: Treatment of Claims Under Liquidation Plan

S U R I N A M E

DIGICEL LTD: Gets Telecom License in Suriname

T R I N I D A D   &   T O B A G O

BRITISH WEST: Closure Worries Tobago Express Shareholders
BRITISH WEST: New Airline Worries People's National Movement

U R U G U A Y

* URUGUAY: World Bank Arm Expects Pulp Mills Impact Study Result

V E N E Z U E L A

AMERICAN COMMERCIAL: Inks Pact to Sell Venezuelan Operations
CITGO PETROLEUM: Discontinues Gasoline Hydrotreater Operations
PEABODY ENERGY: Completes New US$2.75 Bln Senior Credit Facility
PETROLEOS DE VENEZUELA: Carries Out Major Maintenance in Amuay
PETROLEOS DE VENEZUELA: Storing Petrocaribe Fuels at Amerada

* VENEZUELA: Executes 34 Deals & One Joint Declaration with Iran
* WB Says Growth in China & India Is Positive for LatAm Region
* Large Companies with Insolvent Balance Sheets


                          - - - - -


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


ACXIOM CORP: Gets US$277.8 Mil. in "Dutch Auction" Tender Offer
---------------------------------------------------------------
Acxiom(R) Corp. disclosed the final results of its modified
"Dutch Auction" tender offer to purchase up to 11,111,111 shares
of the company's common stock, which expired at 5:00 p.m., New
York City time, on Tuesday, Sept. 12, 2006.

Acxiom has accepted for payment an aggregate of 11,111,111
shares of its common stock at a purchase price of US$25.00 per
share and an aggregate purchase price of approximately US$277.8
million.  These shares represent approximately 12.6% of the
shares outstanding immediately prior to completion of the tender
offer.  Computershare Trust Company, N.A., the depositary for
the tender offer, have informed Acxiom that the final proration
factor for the tender offer is 73.868515%.

Based on the final count by the depositary (and excluding
conditional tenders that were not accepted because the specified
condition was not satisfied), 15,053,367 shares were properly
tendered and not withdrawn at a price of US$25.00 per share.
Any shares that were not properly tendered will be returned
promptly to the tendering stockholders.

Payment for the shares accepted for purchase, and return of all
shares tendered and delivered and not accepted for purchase,
will be carried out promptly by the depositary.  As a result of
the completion of the tender offer, Acxiom has approximately
77.4 million shares of common stock outstanding.

Inquiries with regard to the tender offer may be directed to:

       Innisfree M&A Incorporated
       Information Agent
       Tel: (877) 750-9497,

           -- or --

       J.P. Morgan Securities Inc.
       Dealer Manager
       Tel: (877) 371-5947

           -- or --

       Stephens Inc.
       Dealer Manager
       Tel: (800) 643-9691


                     About Acxiom Corp.

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


BANCO RIO: Will Work with Enfoke to Facilitate Small Businesses
---------------------------------------------------------------
Banco Rio de la Plata SA signed an accord with Enfoke, a local
information technology consultancy, to facilitate the access of
small and medium enterprises to business intelligence solutions,
according to the an Enfoke statement.

As agreed, Banco Rio will offer small and medium enterprises the
solutions with up to 30% discount, Business News Americas
relates.

Banco Rio, according to BNamericas, offers two main solutions
designed to improve and optimize firms' profitability:

         -- news sales performance, and
         -- news sales intelligence.

"SMEs (small and medium enterprises) are the driving force of
economic recovery. Nearly 90% of local companies are SMEs, but
they need to improve their processes if they intend to become
more competitive," Enfoke partner Leonardo Lopez told
BNamericas.

Headquartered in Buenos Aires, Argentina, Banco Rio de la Plata
is an Argentinean private bank providing a range of financial
services, including retail, corporate, and merchant banking,
insurance, credit cards and fund management, to individuals,
companies of all sizes, financial institutions and the public
sector (both provincial and national).  The company has a
network of approximately 280 branches and employs over 5,000
serving over 1 million customers.  It is part of the Latin
American franchise of Banco Santander Central Hispano, which
holds over 80% of the bank's share capital.

                        *    *    *

Moody's Investor Service assigns Caa1 ratings to Banco Rio de la
Plata's Issuer Rating and Long-Term Bank Deposits.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
May 17, 2006, Fitch Ratings affirmed these ratings of Banco Rio
de la Plata:

   -- Individual 'E'; and
   -- Support '5'.


CAR SECURITY: Moody's Assigns B3 Global Local Currency Rating
-------------------------------------------------------------
Moody's Latin America assigned a B3 Global Local Currency
Corporate Family Rating to Car Security S.A., Lo Jack's
Argentinean licensee.  Also, a Baa1.ar National Scale Rating has
been assigned.  The rating outlook is stable.  This is the first
time Moody's has rated Car Security.

The B3 CFR is based on Car Security's strong growth rate, both
historical and projected, its attractive business model that
relies on a strong recurring revenues base, and its low
historical debt levels and adequate cash flow in relation to
debt.  The rating also considers the company's relatively low
scale of operations and the potential volatility of operating
results this implies.  The 22% average customer attrition rate
on a net basis, which is higher than those for comparable
companies in the monitoring services industry, has also been
considered.

Although Car Security's revenues are relatively small, annual
revenues reached ARS60 million for the fiscal year in Dec. 2005,
exceeding those of the previous year by more than 50%.  The
company is the market leader in its business in Argentina,
whereas its closest competitor has an estimated 16% share.  Car
Security's revenue base has changed significantly, from a model
based on selling equipment to individuals, to one based on
leasing equipment and forming strategic alliances with insurance
companies and car dealers.  As of Dec. 2005, 84% of total
revenues were from recurring fees, 9.5% from installation
charges, and only 6.5% from equipment sales.  The company
charges a monthly fee for its service to customers, individuals
or insurance companies, in addition to its initial installation
charges.  Installation charges are charged up front and the cost
of the equipment -- in the lease model -- is normally recovered
in a period that can vary from four to six months.

Historically profits have been high, on average, with gross
margins over 50% and an average EBITDA margin of 19%.  Compared
to historical trends, fiscal year 2004 showed a significant drop
in reported profitability and margins, caused by a change in the
business model, to leasing, implemented that year.  The EBITDA
margin reached 22% for the fiscal year ended Dec. 2005 and is
expected to be higher in the coming years.

Revenues have shown a growing trend.  Because of the strong
growth of its business, free cash flow has been negative or low;
this is a consequence of acquiring equipment needed to support
the business.  Free cash flow is expected to be low or negative
for the current fiscal year ending Dec. 2006 because of planned
investments.  As cash inflows from recurring revenues become
progressively higher in relation to total revenues, spending on
equipment is expected to be lower in relative terms and
therefore FCF is expected to increase progressively.

Moody's views the company's limited financing sources as one of
the company's key credit weaknesses. Car Security's financing
has been extremely dependant on commercial lending from its
equipment provider. Bank lending has been a complementary source
of financing for CS, but limited.

With the vehicle market growing at a fast pace after many years
of recession, and with low penetration of stolen vehicles
recovery systems in a high theft-rate environment, we believe
that there are real growth opportunities for CS, said Moody's.
Attrition rates have been stable at 25% on average. The main
reasons for these high rates are customers changing their car
insurance coverage or selling their vehicles.

Although CS has maintained high market share over the years,
competitive pressures cannot be disregarded.  CS uses radio
signals, a technology that has been in place for more than 20
years and could be threatened by some new technology at any
time.  However, it is still more effective and less expensive
than other more advanced technologies.

The stable outlook reflects our view that the company will
continue managing its growth adequately, generating enough cash
to finance its investing needs and debt repayments.  The stable
outlook also reflects our view that CS has the ability to defend
its competitive position.

Headquartered in Buenos Aires, Argentina, Car Security is Lo
Jack Corp.'s local licensee since June 1998.  Car Security
markets a stolen vehicles recovery system device that uses radio
signals to monitor vehicles and offers tracking service for
vehicles once stolen.  Annual revenues reached approximately
ARS60 million for the year ended Dec. 31, 2005.


LAS QUINTAS: Estudio Contable Named Trustee for Insolvency Case
---------------------------------------------------------------
A court in San Miguel de Tucuman appointed Estudio Contable
Mannori Leon y Asociados to supervise Las Quintas S.R.L.'s
reorganization proceeding.  Under bankruptcy protection, control
of the company's assets is transferred to the firm.

As trustee, Estudio Contable will:

   -- verify creditors' proofs of claim until Oct. 4, 2006;

   -- prepare and present individual reports on Dec. 15, 2006,
      after the claims are verified; and

   -- submit a general report that contains an audit of the
      company's accounting and banking records.

The debtor can be reached at:

         Las Quintas S.R.L.
         Tucuman, Argentina

The trustee can be reached at:

         Estudio Contable Mannori Leon y Asociados
         San Martin 980, San Miguel de Tucuman
         Tucuman, Argentina


MINERALES ARGENTINOS: Trustee Verifies Claims Until Nov. 1
----------------------------------------------------------
Alfredo Mario Solodki, the court-appointed trustee for Minerales
Argentinos S.A.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Nov. 1, 2006.

Mr. Solodki will present the validated claims in court as
individual reports on Dec. 14, 2006.  A court in Mendoza will
determine if the verified claims are admissible, taking into
account the trustee's opinion and the objections and challenges
raised by Minerales Argentinos 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 Minerales Argentinos'
accounting and banking records will follow on Feb. 28, 2007.

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

The debtor can be reached at:

         Minerals Argentinos S.A.
         Avenida Espana 1248, Ciudad de Mendoza
         Mendoza, Argentina

The trustee can be reached at:

         Abraham Yalovetzky
         Uruguay 560
         Buenos Aires, Argentina


MULTICONIC SA: Claims Verification Deadline Is Set for Oct. 27
--------------------------------------------------------------
Abraham Yalovetzky, the court-appointed trustee for Multiconic
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Nov. 20, 2006.

Mr. Yalovetzky will present the validated claims in court as
individual reports on Dev. 11, 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 Multiconic 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 Multiconic's
accounting and banking records will follow on Feb. 23, 2007.

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

The trustee can be reached at:

         Abraham Yalovetzky
         Uruguay 560
         Buenos Aires, Argentina


NECOPLAST SA: Verification of Proofs of Claim Is Until Nov. 16
--------------------------------------------------------------
Ricardo Adrogue, the court-appointed trustee for Necoplast
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Nov. 16, 2006.

Under the Argentine bankruptcy law, Mr. Androgue is required to
present the validated claims in court as individual reports.
Court No. 11 in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Necoplast and its
creditors.

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

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

Necoplast was forced into bankruptcy at the request of Miriam
Reyes de Lloberas, whom it owes US$12,500.

Clerk No. 22 assists the court in the proceeding.

The debtor can be reached at:

         Necoplast S.A.
         Reconquista 715
         Buenos Aires, Argentina

The trustee can be reached at:

         Ricardo Androgue
         Bouchard 468
         Buenos Aires, Argentina


PROVEEDORA ARGENTINA: Claims Verification Is Until Nov. 20
----------------------------------------------------------
Alberto Jose Buceta, the court-appointed trustee for Proveedora
Argentina S.A.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Nov. 20, 2006.

Mr. Buceta will present the validated claims in court as
individual reports on Feb. 5, 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 Proveedora Argentina 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 Proveedora
Argentina's accounting and banking records will follow on
March 19, 2007.

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

The trustee can be reached at:

         Alberto Jose Buceta
         Avenida Rivadavia 1342
         Buenos Aires, Argentina


SEPRINCO SRL: Deadline for Verification of Claims Is on Nov. 16
---------------------------------------------------------------
Elida Alicia Victorero, the court-appointed trustee for Seprinco
S.R.L.'s bankruptcy case, verifies creditors' proofs of claim
until Nov. 16, 2006.

Under the Argentine bankruptcy law, Ms. Victorero is required to
present the validated claims in court as individual reports.
Court No. 5 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 Seprinco and its
creditors.

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

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

Seprinco was forced into bankruptcy at the behest of Marcelo
Eduardo Soriano, whom it owes US$4,288.71.

Clerk No. 9 assists the court in the proceeding.

The debtor can be reached at:

         Seprinco S.R.L.
         Corrientes 1628
         Buenos Aires, Argentina

The trustee can be reached at:

         Elida Alicia Victorero
         Montevideo 711
         Buenos Aires, Argentina


TRANS AGRO: Seeks for Court Approval to Reorganize Business
-----------------------------------------------------------
Court No. 19 in Buenos Aires is studying the merits of Trans
Agro Ltda S.A.'s petition to reorganize its business after a
cessation of payments since July 2006.

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

Clerk No. 37 assists the court in this case.

The debtor can be reached at:

         Trans Agro Ltda S.A.
         Tronador 1844
         Buenos Aires, Argentina


* ARGENTINA: Will Negotiate with Paris Club to Pay US$6.3B Debt
---------------------------------------------------------------
A member of Argentina's delegation to the International Monetary
Fund-World Bank Annual Assembly told Prensa Latina that the
nation is planning negotiations with Paris Club to pay its
US$6.3 billion debt on the latter.

According to Prensa Latina, the official said that Argentinean
representatives will travel to Europe in the next months to get
Paris Club to agree to talks.

Prensa Latina relates that the official's statements had almost
immediate response from the Club of 19 creditor private banks.

The banks, says Prensa Latina, had disclosed in Paris that it
will hold a discussion with Argentina regarding the
reorganization of current debt.

Prensa Latina notes that the Committee for the Cancellation of
the Third World Debt or CADTM request the International Monetary
Fund suspension in May.

CADTM told Prensa Latina that Paris Club has no legal existence
or statutes.

Paris Club is a "non-institution" situated in the international
financial relations, Prensa Latina states.

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

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




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


WINN-DIXIE: Wants Protective Order on Visagent Discovery
--------------------------------------------------------
Pursuant to Rules 7026(c) and 9018 of the Federal Rules of
Bankruptcy Procedure, Winn-Dixie Stores, Inc., and its debtor-
affiliates ask the U.S. Bankruptcy Court for the Middle District
of Florida to enter a protective order that will govern the
confidential commercial information that claimant Visagent
Corp. seeks to discover from them.

David L. Gay, Esq., at Smith Hulsey & Busey, in Jacksonville,
Florida, relates that Visagent has served the Debtors with
requests seeking documents regarding their purchases and sales
of goods on the secondary market.  The documents identify
parties the Debtors made transactions with, and the prices of
the goods purchased.

A protective order governing the confidentiality of the Debtors'
commercial information will help expedite discovery relating to
Visagent's claim, Mr. Gay says.

The Debtors and Visagent agree, among other things, that:

   (a) the confidential information contained in the documents
       will be affixed a "confidential" legend; and

   (b) Visagent will use the confidential information solely for
       the purpose of contested matters and adversary
       proceedings in the Debtors' Chapter 11 cases and will not
       disclose the confidential information to any third party.

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
completed in August the sale of its 12 stores in the Bahamas.
The company, along with 23 of its U.S. subsidiaries, filed for
chapter 11 protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No.
05-11063, transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case
Nos. 05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 52; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


WINN-DIXIE: Wants to Reject Four Louisiana Store Leases
-------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates own four
stores in Louisiana that sustained significant damage from
Hurricane Katrina, and as a result, they are unable to operate
these grocery stores:

          Store No.    Store Address              City
          ---------    -------------           -----------
            1403       1841 Almonaster St.     New Orleans
            1417       7135 Bundy Road         New Orleans
            1434       7330 West Judge Perez   Arabi
            1437       2841 S. Claiborne Ave.  New Orleans

In an effort to save nearly US$1,800,000 annually, the Debtors
seek permission from the U.S. Bankruptcy Court for the Middle
District of Florida to reject the Leases.

The Debtors also ask the Court to establish the bar date for the
landlords of each of the Leases to file any rejection damage
claim at 30 days after the Court approves the request.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The company
completed in August the sale of its 12 stores in the Bahamas.
The company, along with 23 of its U.S. subsidiaries, filed for
chapter 11 protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No.
05-11063, transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case
Nos. 05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 52; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).





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


HUTCHISON HARBOUR: Proofs of Claim Filing Is Until Sept. 27
-----------------------------------------------------------
Hutchison Harbour Ring Solutions Limited's creditors are given
until Sept. 27, 2006, to prove their claims to Ying Hing Chiu
and Chung Miu Yin, Diana, the company's liquidators, or be
excluded from receiving any distribution or payment.

Creditors are required to send by the Aug. 29 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
the liquidators.

A final general meeting will be held at 9:30 a.m. on
Oct. 18, 2006, at:

         Messrs. Conyers Dill & Pearman
         Clarendon House, Church Street
         Hamilton, Bermuda

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

Hutchison Harbour's shareholders agreed on Sept. 6, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidators can be reached at:

         Ying Hing Chiu
         Chung Miu Yin, Diana
         Level 28, Three Pacific Place
         1 Queen's Road East, Hong Kong


QUANTA CAPITAL: Completes Sale of Environmental Strategies Unit
---------------------------------------------------------------
Quanta Capital Holdings Ltd. completed the sale of Environmental
Strategies Consulting LLC or ESC to WSP Environmental Holdings,
Inc., on Sept. 15, 2006.  The sale resulted in proceeds of
US$11.3 million in cash plus forgiveness of intercompany debt of
approximately US$1.0 million, subject to certain post closing
adjustments.

James J. Ritchie, the company's Chairman commented, "The sale of
ESC represents a successful first step in the pursuit of
harnessing value for our shareholders, generating proceeds in
excess of ESC's tangible book value.  While Quanta's insurance
companies have ceased writing environmental policies that
complemented ESC's ongoing environmental consulting business, we
believe ESC is well positioned to enjoy good business
opportunities as part of WSP Environmental Holdings.  I want to
thank the employees of ESC for their hard work with Quanta and
wish them every success."

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

                        *     *     *

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

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

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




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


PETROLEO BRASILEIRO: Intensifies Gas Price Talks with Bolivia
-------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras said in a statement that it
has closed a fifth round of talks with Yacimientos Petroleros
Fiscales Bolivianos aka YPFB, the state oil firm of Bolivia, to
renegotiate the price of Bolivian gas exports.

According to the statement, this round of meetings of the two
firms deepened discussions of mutually acceptable solutions
regarding the topic.

Business News Americas relates that the Bolivian government
wants to raise the price of gas exports to Brazil, as part of
Bolivian President Evo Morales' new hydrocarbons nationalization
policies.

The Bolivian government told BNamericas that the export price to
Brazil of US$3.6/MBTU is too low.

Meanwhile, Petrobras explained to BNamericas that Brazilian
clients would not accept a price raise.

Petrobras has set a meeting with YPFB for Sept. 29 in Santa Cruz
de la Sierra in Bolivia, BNamericas states.

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

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

                        *    *    *

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  -------------           ------        ----       -------
  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


YPF SA: Parent Firm Renews Operations at Bolivian Well
------------------------------------------------------
Andina's Vibora well -- which is managed by YPF SA's parent
company Repsol and Yacimientos Petroleros Fiscales Bolivianos
aka YPFB, the Bolivian state oil and gas firm -- renewed
operations after local protesters left the premises, AFX News
reports, citing a source from Bolivia's hydrocarbon's ministry.

The strikers had occupied the Vibora plant on Thursday and left
the installations with promises from YPFB and Repsol to
construct schoolrooms and provide educational equipment to the
local community, the source told AFX.

                        *    *    *

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

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

Moody's affirmed these five ratings:

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

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

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

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

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


* BOLIVIA: State Firm Intensifies Gas Price Talks with Petrobras
----------------------------------------------------------------
Yacimientos Petroleros Fiscales Bolivianos aka YPFB, the state
oil firm of Bolivia, has closed a fifth round of talks with
Petroleo Brasileiro aka Petrobras to renegotiate the price of
Bolivian gas exports, the latter said in a statement.

According to the statement, this round of meetings of the two
firms deepened discussions of mutually acceptable solutions
regarding the topic.

Business News Americas relates that the Bolivian government
wants to raise the price of gas exports to Brazil, as part of
Bolivian President Evo Morales' new hydrocarbons nationalization
policies.

The Bolivian government told BNamericas that the export price to
Brazil of US$3.6/MBTU is too low.

Meanwhile, Petrobras explained to BNamericas that Brazilian
clients would not accept a price raise.

Petrobras has set a meeting with YPFB for Sept. 29 in Santa Cruz
de la Sierra in Bolivia, BNamericas states.

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

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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


* BOLIVIA: State Firm Renews Vibora Well Operations with Repsol
---------------------------------------------------------------
A source from Bolivia's hydrocarbon's ministry told AFX News
that Andina's Vibora well -- which is managed by Repsol YPF and
Yacimientos Petroleros Fiscales Bolivianos aka YPFB, the
Bolivian state oil and gas firm -- renewed operations after
local protesters left the site.

The strikers had occupied the Vibora plant on Thursday and left
the installations with promises from YPFB and Repsol to
construct schoolrooms and provide educational equipment to the
local community, AFX reports, citing the source.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO NACIONAL: Grants BRL19MM Loan to Transpo. Project in Serra
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social S.A. aka
BNDES approved a financing of BRL19.1 million for the
development of an urban transportation project in the
Municipality of Serra.  The project complements, in municipal
ambit, the Program for Investments in Collective Transportation
and Urban Circulation of Great Vitoria Metropolitan Region or
Transcol, contracted by the government of the State of Espirito
Santo with the Bank.

The municipal endeavor provides for the execution of works for
opening, paving and signaling the traffic corridors, promoting
improvement to urban circulation performance, in its aspects of
roadway access, transit flow and reduction in total traveling
time of the collective transportation services.

The investments, in the total amount of BRL29.4 million, will be
carried out in 38 districts of the existing 118 in the
Municipality of Serra, involving 13.3 kilometers of roads and
allowing for improvements in the circulation of individual and
cargo vehicles and mainly for collective transportation.
Considered essential for the sector of collective transportation
at the Vitoria metropolitan region, the project will further
allow for environmental gains with the reduction of pollutant
emissions resulting from the optimization of traffic.

The collective transportation at the Municipality of Serra is
managed by Companhia de Transporte Urbano da Grande Vitoria or
Ceturb-GV under the delegation of the municipality.  Serra's
municipal system of collective transportation is fully
integrated to the Great Vitoria intermunicipal system, to all
lines and users of the service. There are 589 vehicles of the
Transcol system that are presently circulated by the
municipality.

                        *    *    *

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.


BRASKEM SA: Gets US$183.855 Mil. Early Tenders for 12.50% Notes
---------------------------------------------------------------
Braskem S.A.  disclosed that as of 5:00 p.m., New York City
time, on Sept. 18, 2006, US$183,855,000 in aggregate principal
amount of its outstanding US$275,000,000 principal amount of
12.50% Notes due 2008 (CUSIP Nos.: 10553H AD 4 and 10553J AD 0;
ISIN Nos. US10553HAD44 and US10553JAD00; Common Code Nos.
018005328 and 018005484) had been tendered and not withdrawn
pursuant to its cash tender offer for the Notes announced on
Aug. 29, 2006.

Braskem notes that, subject to the conditions set forth in the
Offer to Purchase, dated Aug. 29, 2006, and the related Letter
of Transmittal:

   -- The total consideration that will be paid for Notes
      validly tendered prior to 5:00 p.m., New York City time,
      on Sept. 18, 2006, includes an early tender premium in
      the amount of US$20 per US$1,000 principal amount of
      Notes.  Consideration to be paid for Notes validly
      tendered after  5:00 p.m., New York City time, on
      Sept. 18, 2006, and prior to 5:00 p.m., New York City
      time, on Sept. 27, 2006, will not include the early tender
      premium.

   -- After 5:00 p.m., New York City time, on Sept. 18, 2006,
      tendered Notes may not be withdrawn except in the limited
      circumstances set forth in the Offer to Purchase.

   -- The consideration will be determined by reference to the
      bid-side yield on the reference US Treasury note as of
      2:00 p.m., New York City time, on Sept. 25, 2006, unless
      the tender offer is extended or terminated earlier.

   -- The tender offer will expire at 5:00 p.m., New York City
      time, on Sept. 27, 2006, unless extended or earlier
      terminated.

Braskem has retained ABN AMRO Bank N.V., London Branch, and
Citigroup Global Markets Inc. to act as Dealer Managers for the
tender offer, JPMorgan Chase Bank, N.A. to act as the depositary
for the tender offer, and D.F. King & Co., Inc. to act as
information agent for the tender offer.

Questions or requests for assistance or additional copies of the
Offer to Purchase and the related Letter of Transmittal may be
directed to the Information Agent at:

           D.F. King & Co., Inc.
           Tel: (800) 290-6431 (toll free)
                (212) 269-5550)(banks and brokers call collect)

Braskem -- http://www.braskem.com.br/-- is a thermoplastic
resins producer in Latin American, and is among the three
largest Brazilian-owned private industrial companies.  The
company operates 13 manufacturing plants located throughout
Brazil, and has an annual production capacity of 5.8 million
tons of resins and other petrochemical products.

                        *    *    *

Fitch Ratings upgraded these ratings of Braskem S.A. on
July 1, 2006:

   -- Foreign Currency IDR: To BB+ Rating with Stable Outlook,
      from BB Rating with Positive Outlook;

   -- US$525 million Sr. Unsecured notes due 2008, 2014: To BB+,
      from BB;

   -- US$350 million Perpetual Bonds: To BB+, from BB;

   -- National Long-term Rating: To 'AA(bra)' from 'AA-(bra)';
      and

   -- BRL600 million 12th and 13th Debenture Issuances due 2009
      and 2010: To 'AA(bra)' from 'AA-(bra)'.

These rating actions followed 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.


COMPANHIA SIDERURGICA: Keen on Offering Wheeling Cash for Bid
-------------------------------------------------------------
Companhia Siderurgica Nacional aka CSN told the Associated Press
that it is willing to offer cash to shareholders of Wheeling-
Pittsburgh Steel to supplement its bid on a merger between the
firms.

However, CSN admitted to AP that it could not do so without the
approval of the United Steelworkers union.

CSN told also AP that the process shareholders will use to vote
on the proposed merger will be changed.

According to the report, the November vote on the board of
directors' membership will be separated from the vote on the
partnership.

AP underscores that Wheeling-Pitt agrees to merge with CSN.  The
union, however, is in favor of a takeover attempt by Illinois'
Esmark Incorporated.

The report says that CSN's proposal failed to impress Craig
Bouchard, the president of Esmark.

The proposal is too vague to make a fair assessment, Mr.
Bouchard told AP.

The appeal of the cash alternative would depend on what CSN was
willing to pay, AP states, citing Dave McCall -- United
Steelworkers District One Director.

Companhia Siderurgica Nacional aka CSN produces, sells, exports
and distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.

                        *    *    *

Standard & Poor's Ratings Services affirmed on Aug. 4, 2006, its
'BB' long-term corporate credit rating on Brazil-based steel
maker Companhia Siderurgica Nacional aka CSN after the
announcement of its association with U.S.-based steel maker
Wheeling-Pittsburgh Corp. in the U.S.  The outlook is stable.

Fitch Ratings viewed the proposed merger of Companhia
Siderurgica Nacional's or CSN North American operations with
those of Wheeling-Pittsburgh Corp. or WPSC to be neutral
to CSN's credit quality.  Fitch's ratings of CSN include:

  -- Foreign currency Issuer Default Rating: 'BB+';
  -- Local currency IDR: 'BBB-';
  -- National scale rating: 'AA (bra)';
  -- Senior unsecured notes 'BB+'; and
  -- Brazilian Real denominated debentures: 'AA (bra)'.


COMPANHIA SIDERURGICA: Merger with Wheeling Likely to Succeed
-------------------------------------------------------------
The proposed merger of the North American assets of Companhia
Siderurgica Nacional aka CSN and Wheeling-Pittsburgh are likely
to succeed despite union opposition, Business News Americas
reports, citing Pedro Galdi -- an investment analyst with
brokerage ABN Amro Real Corretora.

Mr. Galdi told BNamericas, "It is very likely that this
transaction will happen."

BNamericas relates that officials of CSN met with
representatives of US steelworkers' union USW and Wheeling on
Aug. 28 to discuss its plans in North America.

USW has told BNamericas that it will make every effort to block
the deal, saying that it violates the "right to bid" provisions
of its labor contract, which allow the union to organize an
alternative transaction if Wheeling is the subject of a takeover
bid.

"CSN will have to reach an agreement with USW in order to
conclude the merger plan," BNamericas notes, citing Mr. Galdi.

BNamericas underscores that under the CSN-Wheeling deal, CSN
will hold 49.5% before debt conversion of a new holding firm,
which will comprise CSN LLC -- the North American unit of CSN --
and Wheeling's operations in Ohio, West Virginia and
Pennsylvania.  CSN will also contribute US$225 million in cash
to the new firm.

However, CSN disclosed in Aug. that the success of the merger is
not assured, BNamericas says.

Mr. Galdi told BNamericas, "Wheeling came from Chapter 11
[bankruptcy protection], it is not in a favorable situation as
the company is facing problems with its blast furnace."

The equipment is in poor condition, BNamericas states, citing
Mr. Galdi.

Companhia Siderurgica Nacional aka CSN produces, sells, exports
and distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.

                        *    *    *

Standard & Poor's Ratings Services affirmed on Aug. 4, 2006, its
'BB' long-term corporate credit rating on Brazil-based steel
maker Companhia Siderurgica Nacional aka CSN after the
announcement of its association with U.S.-based steel maker
Wheeling-Pittsburgh Corp. in the U.S.  The outlook is stable.

Fitch Ratings viewed the proposed merger of Companhia
Siderurgica Nacional's or CSN North American operations with
those of Wheeling-Pittsburgh Corp. or WPSC to be neutral
to CSN's credit quality.  Fitch's ratings of CSN include:

  -- Foreign currency Issuer Default Rating: 'BB+';
  -- Local currency IDR: 'BBB-';
  -- National scale rating: 'AA (bra)';
  -- Senior unsecured notes 'BB+'; and
  -- Brazilian Real denominated debentures: 'AA (bra)'.


GERDAU SA: Sidenor May Acquire Sociedad CIE Subsidiary
------------------------------------------------------
Gerdau SA said in a statement that Sidenor has reached a
preliminary and non-binding agreement with Sociedad CIE
Automotive for the possible acquisition of the latter's
subsidiary, GSB Acero.

Gerdau holds 40% of Sidenor.

GSB Acero has specialty steel production of about 200,000 tons
yearly.

"Negotiations between Sidenor and CIE Automotive will continue
towards reaching the conditions to complete this transaction,"
according to the statement.

Business News Americas relates that executives of Gerdau,
Santander -- which also holds 40% stake in Sidenor -- and
Sidenor finalized in Jan. the acquisition of the latter.

The three firms expect to close the deal during the last quarter
of 2006.

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.


GOL LINHAS: Declares 3Q Dividend of BRL0.12782 Per Share
--------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A. disclosed to shareholders
that its Board of Directors, at a meeting held on
Sept. 15, 2006, decided on management's proposal regarding the
payment of interest on stockholder's capital, corresponding to a
net amount of BRL0.12782 per share, related to the third quarter
of 2006, and approved the payment of interest on stockholder's
capital.

The payment of interest on stockholder's capital in the gross
amount of BRL29,506,082.00 corresponds to BRL0.15038 per
preferred and ordinary share.  All outstanding shares on
Sept. 20, 2006, will have the right to interest on stockholder's
capital.  The shares will be traded on Sao Paulo Stock Exchange
and New York Stock Exchange, "ex" the right to interest on
capital as from, and including, Sept. 21, 2006.  The interest on
stockholder's capital will be paid to shareholders on
Nov. 14, 2006.

The interest on stockholder's capital, net of withholding income
tax, will be imputed to mandatory dividends related to the
corporate year 2006, according to Brazilian corporate law and
the Company's By-Laws. The payment of interest on stockholder's
capital is determined according to the Company's quarterly
intercalary dividend policy. It is important to note that the
percentage of the net profits in each distribution, whether of
dividends or interest on stockholder's capital, may vary and
will be adjusted every distribution in order to assure the
minimum dividend of 25% of the corporate year's net profit
according to Brazilian corporate law and to the Company's
Bylaws.

Headquartered in Sao Paulo, Brazil, Gol Linhas Areas
Inteligentes S.A. -- http://www.voegol.com.br-- through its
subsidiary, Gol Transportes Aereos S.A., provides airline
services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay.
The company's services include passenger, cargo, and charter
services.  As of March 20, 2006, Gol Linhas provided 440 daily
flights to 49 destinations and operated a fleet of 45 Boeing 737
aircraft.  The company was founded in 2001.

                        *    *    *

On March 21, 2006, Moody's Rating Services assigned a Ba2 rating
on Gol's Long-Term Corporate Family Rating.

On June 14, 2006, Fitch Ratings assigned a rating of 'BB' to GOL
Linhas' outstanding US$200 million 8.75% perpetual
bond.  In addition, Fitch assigned:

   -- National Scale Rating of 'AA-(bra)' with Stable Outlook,
      and

   -- Local Currency Issuer Default Rating of 'BB+'- with
      Stable Outlook.


COMPANHIA DE SANEAMENTO: Moody's Ups Sr. Debenture Rating to Ba3
----------------------------------------------------------------
Moody's America Latina upgraded Companhia de Saneamento do
Parana -- SANEPAR's senior unsecured debentures to Ba3 from B1
on the global scale and to A3.br from Baa3.br on the Brazilian
national scale.  The rating outlook is stable.

The upgrade was prompted by the improved stand-alone credit risk
profile of SANEPAR.  The upgrade reflects strong financial
ratios, including funds from operations to total adjusted debt
of approximately 30% and total adjusted debt to capitalization
of about 36%.  SANEPAR has been able to improve its financial
performance during a period of substantial investments to expand
water and sewage services, due to annual increases in rates and
financial support from the controlling shareholder, the state of
Parana, in the form of advances and reduced dividends.

With 60% of its voting shares owned by the state of Parana,
SANEPAR is a government-related issuer in accordance with
Moody's rating methodology entitled "The Application of Joint
Default Analysis to Government-Related Issuers".  Moody's
methodology for GRIs systematically incorporates into the rating
the company's stand-alone credit risk profile or Baseline Credit
Assessment as well as the likelihood that a government would
provide extraordinary support for the company's debt
obligations.  The ratings of SANEPAR result from the application
of joint-default analysis using the company's BCA, a credit
assessment of the State of Parana, Moody's view of dependence
(the likelihood that both entities would default at the same
time), and probability of extraordinary support from the
controlling shareholder.  The BCA of a GRI is expressed on a
1-21 scale, corresponding to the 21 ratings ranging from Aaa to
C.

The upgrade of SANEPAR reflects an improvement of its BCA to 13
from 14.  In addition, the rating action also reflects Moody's
revised view of medium default dependence (from previously high)
and medium support (from previously low).  The change in
expected support level reflects our view that positive changes
in SANEPAR's relationship with the State, including annual rates
increases approved by the governor, State guarantees for about
18% of the company's debt, capital injections and lowered
dividends, have exceeded negative factors that include rate
reductions for disadvantaged customers and the deferral of rate
adjustments in 2006.  The revision of the support level to
medium also reflects the view that the essential nature of
SANEPAR's services provides substantial incentive for the State
to support the company in a distress situation.  Moody's view of
reduced dependence level recognizes the improved credit metrics
of SANEPAR in recent years that make the company less likely to
be affected in the event of a default by the State.

SANEPAR's A3.br national scale rating reflects the standing of
the company's credit quality relative to its domestic peers.
Although SANEPAR has stronger financial ratios than some higher
rated issuers, such as regulated electricity distribution
companies Empresa Energetica do Mato Grosso do Sul -- Enersul
(A2.br) and Rio Grande Energia (Aa2.br), its A3.br rating
reflects the higher risk from its essentially unregulated
operations and risks deriving from SANEPAR's investment program
to expand its services.

The stable outlook incorporates Moody's expectation that SANEPAR
will maintain moderate operational leverage and sufficient
liquidity during the execution of its aggressive investment
program.

Headquartered in Curitiba, Brazil, Companhia de Saneamento do
Parana -- SANEPAR provides water treatment and distribution to
over 2.2 million customers or 8.2 million consumers, and
wastewater collection and treatment services to about one
million clients or 3.9 million consumers in 343 municipalities
in the state of Parana and one municipality in the state of
Santa Catarina.  In the twelve months ending June 30, 2006,
SANEPAR reported net earnings of BRL173 million (about US$77
million) on BRL1,144 million (US$509 million) of revenues.


PETROLEO BRASILEIRO: Closing Talks on Shareholding Structure
------------------------------------------------------------
Paulo Costa -- the supplies director of Petroleo Brasileiro SA
aka Petrobras, the state oil company of Brazil -- told reporters
that the firm aims to end talks on the shareholding structure of
its planned heavy crude refinery and petrochemicals complex in
Rio de Janeiro this year.

"These things take time, but we expect to wind up talks by the
end of the year," Business News Americas relates, citing Mr.
Costa.

The Comperj complex, says BNamericas, will be made up of a heavy
crude refinery able to produce:

      -- 5 million tons a year of basic petrochemicals:

         * ethane,
         * propane, and
         * benzene; and

      -- 4.5 million tons per year of second-generation
         petrochemicals:

         * styrene,
         * polypropylene, and
         * polyethylene, among others.

BNamericas underscores that Mr. Costa said that several
companies are eyeing Petrobras to participate in the project.

According to the report, the 150,000 barrel-a-day project
includes:

       -- a refinery, and
       -- a first and second generation petrochemicals complex.

BNamericas notes that the project is expected to require
investments of US$8.3 billion.  Production will start in 2012.

Ultra -- a Brazilian petrochemicals group -- will have a
controlling stake in the project, according to BNamericas.
Banco Nacional de Desenvolvimento Economico e Social SA aka
BNDES and Petrobras will also have stakes in the project.

Mr. Costa told BNamericas that Ultra, BNDES and Petrobras are
holding negotiations with landowners to acquire land in Itaborai
for the plant.

The project's environmental impact study will be presented to
environmental protection authorities in Oct., BNamericas says,
citing Mr. Costa.

"Petrobras' board has approved the concepts of the project and
we are now detailing the basic project," Mr. Costa told
BNamericas.

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.




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


ARES TOTAL: Proofs of Claim Filing Deadline Is Set for Oct. 4
-------------------------------------------------------------
Ares Total Value (Cayman) Feeder Fund, Ltd.'s creditors are
required to submit proofs of claim by Oct. 4, 2006, to the
company's liquidators:

         Gordon I. MacRae
         G. James Cleaver
         P.O. Box 1102, 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.

Ares Total's shareholders agreed on Aug. 15, 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:

         Korie Drummond
         Kroll (Cayman) Limited
         4th Floor Bermuda House
         Dr. Roy's Drive
         Grand Cayman, Cayman Islands
         Tel: +1 (345) 946-0081
         Fax: +1 (345) 946-0082


DIVI TIARA: Management & Staff to Meet on Firm's Closure
--------------------------------------------------------
Kurt Tibbetts, the head of Government Business in the Cayman
Islands, has scheduled a meeting with the management and staff
of Divi Tiara Beach Resort at the Aston Rutty Centre, to discuss
concerns regarding the company's closure, the Caymanian Compass
reports.

The Compass relates that Divi Tiara decided to cease operations,
citing economic reasons.  It will terminate its 37 employees on
Sept. 23.

An official press release from parent company Divi Resorts
stated, "The decision to close the resort was based on certain
economic realities of continuing a dive-oriented resort on
Cayman Brac including problems with airlift, which has affected
dive guests in particular who need to bring additional gear for
their sport; increased competition from a growing number of
niche market dive destinations throughout the Caribbean; and
weather which in the past years has created real and perceived
concerns about travel to the Cayman Islands.  Issues related to
weather have also pushed up insurance costs too high for
coverage and ever increasing levels proposed for the future."

Max Hillier -- the general manager of Divi Tiara -- told The
Compass that the idea of a closure has been discussed for years.
Fierce competition in resorts caused the price for accommodation
-- that did not match the expense of airfare -- to be charged.

According to The Compass, Mr. Hillier said he received
confirmation from Divi Resorts that all staff as well as the
vendors will be paid.

The Compass underscores that Mr. Clifford countered claims made
by Divi Tiara that insufficient airlift played a large part in
their decision to close.  He said in the Legislative Assembly
that deteriorating conditions and not airlift capacity were to
blame for the shutting down of Divi Tiara.

Mr. Clifford told The Compass, "A review of airlift for the past
five years confirms that the number of seats into Cayman Brac
has significantly increased and is in fact higher than has ever
been available during that time.  Of the 2,950 seats currently
available, the average load factor is approximately 72 per cent,
leaving over 820 available seats per month."

The Compass notes that Mr. Clifford said that CAL Express
regularly adds extra section flights to lodge groups to the
Sister Islands when the airline can't accommodate groups on the
regular schedule.  The extra section flights are added at the
normal fare.

The report says that Mr. Clifford stated that the DOT
recommended and the Hotel Licensing Board endorsed in 2003 the
shutting down of the Timeshare units and a portion of the Hotel,
as Divi was unfit for tourist accommodation and satisfactory
upgrades were not made.

Mr. Clifford told The Compass, "After Hurricane Ivan the
property never regained minimum standards despite on-going
efforts to work with them.  Divi may not fully disclose all or
even the real reasons behind its decision to close the Divi
Tiara property but one thing is clear.  They had not maintained
the necessary standards for competitiveness and at times were
found dangerously close to being 'unfit' for occupation.  This
marked lack of commitment to re-investing in the property's
refurbishment and upkeep is likely to have impacted the Divi
Tiara's guest satisfaction, repeat business and daily room
rates."

The Ministry of District Administration is collaborating with
the Office of Employment Relations to ensure that staff concerns
are addressed, while the Department of Tourism is trying to work
with Divi's Head Office to offer support to affected clients to
alleviate negative impacts, Mr. Clifford told The Compass.


EMPEROR LIMITED: Liquidator Won't Accept Claims After Oct. 4
------------------------------------------------------------
Emperor Limited's creditors are required to submit proofs of
claim by Oct. 4, 2006, to the company's liquidators:

         Susan Lo Yee Har
         28 Three Pacific Place
         1 Queen's Road East
         Hong Kong

           -- and --

         Linburgh Martin
         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.

Emperor Limited's shareholders agreed on Aug. 8, 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:

         Thiry Gordon
         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


FOUR VALLEYS: Creditors Have Until Oct. 4 to File Claims
--------------------------------------------------------
Four Valleys Limited's creditors are required to submit proofs
of claim by Oct. 4, 2006, to the company's liquidators:

         Kareen Watler
         Jamal Young
         P.O. Box 1109, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-7755
         Fax: (3450 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.

Four Valleys' shareholders agreed on Aug. 23, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


FRUCTOSE LIMITED: Filing of Proofs of Claim Is Until Oct. 4
-----------------------------------------------------------
Fructose Limited's creditors are required to submit proofs of
claim by Oct. 4, 2006, to the company's liquidators:

         Mark Wanless
         Liam Jones
         Maples Finance Jersey Limited
         2nd Floor Le Masurier House
         La Rue Le Masurier
         St. Helier, Jersey JE2 4YE

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.

Fructose Limited's shareholders agreed on Aug. 23, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


GLOBAL EMERGING: Creditors Must Submit Proofs of Claim by Oct. 4
----------------------------------------------------------------
Global Emerging Fund's creditors are required to submit proofs
of claim by Oct. 4, 2006, to the company's liquidators:

         Susan Lo Yee Har
         28 Three Pacific Place
         1 Queen's Road East
         Hong Kong

            -- and --

         Linburgh Martin
         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.

Global Emerging's shareholders agreed on Aug. 8, 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:

         Thiry Gordon
         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


KENMAR-NIHON EQUITY: Proofs of Claim Must be Filed by Oct. 4
------------------------------------------------------------
Kenmar-Nihon Equity Holdings 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.

Kenmar-Nihon Equity'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.


KENMAR-NIHON PREMIER: Proofs of Claim Must be Filed by Oct. 4
-------------------------------------------------------------
Kenmar-Nihon Premier Managers Series SPC'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.

Kenmar-Nihon Premier'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.


KENMAR-NIHON PREMIER I: Claims Filing Deadline Is on Oct. 4
-----------------------------------------------------------
Kenmar-Nihon Premier Managers Fund I 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.

Kenmar-Nihon Premier'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.


LEVERAGED BUYOUT: Creditors Must File Proofs of Claim by Oct. 4
---------------------------------------------------------------
Leveraged Buyout Co., 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.

Leveraged Buyout's shareholders agreed on Aug. 24, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


MOORE OVERSEAS (LDC): Proofs of Claim Filing Is Until Oct. 4
------------------------------------------------------------
Moore Overseas Technology Venture Fund, 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.

Moore Overseas' shareholders agreed on Aug. 11, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


MOORE OVERSEAS (LTD): Filing of Proofs of Claim Is Until Oct. 4
---------------------------------------------------------------
Moore Overseas Technology Venture Fund, 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.

Moore Overseas' shareholders agreed on Aug. 11, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


RS PROPERTY: Last Day to File Proofs of Claim Is on Oct. 4
----------------------------------------------------------
RS Property Investment Limited's creditors are required to
submit proofs of claim by Oct. 4, 2006, to the company's
liquidators:

         Kareen Watler
         Jamal Young
         P.O. Box 1109, George Town
         Grand Cayman, Cayman Islands
         Tel: (345) 949-7755
         Fax: (3450 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.

RS Property's shareholders agreed on Aug. 23, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


RUTHERFORD ASSET: Deadline for Proofs of Claim Filing Is Oct. 4
---------------------------------------------------------------
Rutherford Asset Management International, Ltd.'s creditors are
required to submit proofs of claim by Oct. 4, 2006, to the
company's liquidator:

         dms Corporate Services, Ltd
         20 Genesis Close, Second Floor Ansbacher House
         P.O. Box 31910 SMB, 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.

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

Parties-in-interest may contact:

         Tammy W. Seymour
         Angela Nightingale
         dms Corporate Services Ltd.
         Ansbacher House
         P.O. Box 31910 SMB
         Grand Cayman, Cayman Islands
         Tel: (345) 946 7665
         Fax: (345) 946 7666




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


GERDAU SA: Chilean Unit Won't Return to Natural Gas for Power
-------------------------------------------------------------
A spokesperson of Gerdau Aza -- Gerdau SA's unit in Chile --
told Business News Americas that the company will not return to
using natural gas for power.

Gerdau Aza produces about 420,000 tons of steel per year, of
which it exports some 3,500 tons to Ecuador.

BNamericas relates that the spokesperson said that Gerdau Aza is
now operating almost exclusively on diesel.

The report says that Gerdau Aza's has a plant in the Renca area
of Santiago and another in Colina.  The plants can run on both
diesel and natural gas.

However, the company has limited access to natural gas, the
spokesperson told BNamericas.

According to BNamericas, the spokesperson said that Chile's main
natural gas provider, Gerdau Aza and others have had to rely on
the much costlier diesel fuel since the start of gas reductions
from Argentina in 2005.

Hermann Von Malhenbrock told the local press that although using
diesel costs Gerdau Aza an extra US$400,000 a month, the added
expense is partly offset by current high steel prices.

The cost of diesel has been factored into the company's budget
on an indefinite basis, BNamericas notes, citing Mr.
Malhenbrock.

"For us gas disappeared from our list of supplies.  We have
gotten used to working with diesel and we have to hope that
steel prices stay high in order to pay the diesel bills," Mr.
Malhenbrock told BNamericas.

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

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

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

                        *    *    *

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

                        *    *    *

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




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


CA INC: Extends Agreement to Provide Introscope Access to SAP
-------------------------------------------------------------
CA, Inc., has extended its agreement with SAP AG to provide SAP
NetWeaver customers access to Introscope, the industry-leading
application performance management solution from CA's Wily
Technology Division.  Under the expanded agreement, SAP Solution
Manager customers will receive an SAP-specific license to use
read-only Introscope capabilities within their enterprises for
SAP-developed dashboards and instrumentation.

SAP customers interested in customizing or adding additional
Introscope functionalities may license those capabilities
directly from CA's Wily Technology Division.

"We selected Introscope for SAP Active Global Support because it
offers best-in-class Java diagnostics capabilities with the
lowest overhead in the industry," said Dr. Uwe Hommel, executive
vice president, SAP Active Global Support, SAP AG.  "Our
experience working closely with the Wily team has proven that
our rapidly growing SAP NetWeaver customer base can gain
significant value from using Introscope to monitor and optimize
the performance and availability of their SAP applications."

SAP has used Introscope since Jan. of 2005 to rapidly diagnose
and resolve application performance problems in customer
deployments, as well as for SAP internal deployments such as
SAP's corporate portal and in-house development systems.

Introscope is the industry-leading solution for monitoring and
optimizing the performance of complex, mission-critical web
applications.  It delivers real-time visibility into production
environments, enabling IT staff to detect, diagnose and resolve
problems before the business is impacted.  With Introscope, all
application stakeholders gain a common language for application
performance, speeding triage and streamlining overall
application management.

"Both CA and SAP are focused on helping customers deploy web
applications on SAP NetWeaver, and to keep them performing
optimally," said Dick Williams, senior vice president and
general manager of CA's Wily Technology Division.  "We are
pleased to offer all SAP customers access to the Introscope
dashboards and metrics SAP AG's Active Global Support has relied
upon, without additional license fees."

                          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.


CA INC: Declares Quarterly Cash Dividend of US$0.04 Per Share
-------------------------------------------------------------
CA, Inc., declared a regular, quarterly cash dividend of US$0.04
per share.  The dividend will be paid on Sept. 29, 2006, to
stockholders of record at the close of business on
Sept. 22, 2006.

                          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.


CA INC: Inks Marketing & Distribution Pact with Spare Backup
------------------------------------------------------------
Spare Backup, Inc., disclosed a joint marketing and software
distribution agreement with CA, Inc., to provide its customers
with state-of-the-art security tools.

Under the agreement, CA will provide Spare with virus scanning
on data uploaded by customers to Spare's servers for remote
encrypted backup, helping to ensure that critical files are free
of potential virus outbreaks.  In addition Spare will provide
certain bundled offerings to customers including CA's Internet
Security Suite, which provides comprehensive protection against
viruses, hackers, identity thieves, spyware, spam and any online
threats that can jeopardize privacy, data or PCs' performance.

This agreement positions Spare as a provider of remote backup
and comprehensive PC internet security for one low subscription
price on a monthly or annual basis.

"This agreement marks a significant milestone for our company,"
said Cery Perle, CEO of Spare Backup, Inc.  "Through the
alliance with CA, one of the premier and most trusted companies
in the world, we are transforming our company into a full
service provider of PC security, backup and restoration,
enabling our customers to have complete protection of their PC
and data.  Partnering with a company of the caliber of CA
represents a substantial leap forward in our goal of providing a
one stop shop for PC protection and backup.  We are excited at
the opportunity to forge and expand a relationship with CA,
Inc., one of the leaders and pioneers in the software industry."

"Pairing CA's antivirus and security tools with Spare Backup
software represents an important step in the relationship
between our two companies," said Adam Famularo, Vice President
CA's Global OEM Division.  "CA understands the ever increasing
importance of providing an easy to use, secure online backup
solution in a cost effective manner.  We believe that Spare
offers that solution and look forward to providing our security
tools to their valuable customers."

                     About Spare Backup

Spare Backup, Inc., specializes in helping consumers, small
office/home office users, and small to mid-sized businesses
protect their computer data quickly, automatically and cost-
effectively.  The company's flagship Spare Backup(TM) product is
the first totally automated online backup service that
intelligently selects, secures and stores files without any user
intervention, automatically backing up documents, email, music,
photos and other PC files on a nightly basis or according to the
schedule of the user's choice.

                          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.


* COLOMBIA: Hydrocarbons Regulator Gets COP312 Bil. in Royalties
----------------------------------------------------------------
Agencia Nacional de Hidrocarburos, the hydrocarbons regulator in
Colombia said in a statement that it received royalties of CO312
billion from production of crude oil and gas from January to
July 2006.

Oil firms in Colombia pay royalties of up to 25%, depending on
their production, plus a tax of US$0.10 per barrel.  The
Colombian government adds a surtax if prices go beyond US$27 a
barrel.

Business News Americas relates that the royalties account for a
71% boost from the COP182 billion received in the Jan.-July 2005
period, indicating increase in oil and gas prices and a recovery
in production.

The royalty money goes to the Colombian central government and
the nation's departments, BNamericas reports.

                        *    *    *

On July 25, 2006, Fitch rated the Republic of Colombia's US$1
billion issue of fixed-rate Global Bonds maturing
Jan. 27, 2017, 'BB'.  The rating is in line with Fitch's long-
term foreign currency rating on Colombia.  Fitch said the Rating
Outlook is Positive.




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


* COSTA RICA: Anticipates European Union's Tariff Reduction
-----------------------------------------------------------
Costa Rica anticipates a reduction in the European Union's
banana tariff, acting upon an analysis Norway conducted, Inside
Costa Rica reports.

The tariff is currently set at EUR176 per ton of bananas.

Costa Rican sources told Inside Costa Rica that Norway's
recommendation is based on the negative impact that the tariff
has had on the trade and sales of the fruit.

The banana growing Latin American nations have endured the
effect of the tariff since Jan. 1, 2006, when the 25 states of
the European Union established the sole tariff for bananas,
Inside Costa Rica relates.

                        *    *    *

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




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


* CUBA: Inks Five Bilateral Cooperation Accords with Iran
---------------------------------------------------------
Acting Cuban President Raul Castro signed five bilateral
cooperation agreements with Iran's President Mahmoud Ahmadinejad
in Havana on Saturday, according to a report by the official
media.

Iran Focus relates that President Ahmadinejad called for
expansion of bilateral cooperation between Tehran and Havana.

The United States was on the verge of collapse as the symbol of
liberalism, President Ahmadinejad told Iran Focus.

                        *    *    *

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 INTERCONTINENTAL: Court to Disclose Fraud Case Trial Date
---------------------------------------------------------------
The First Collegiate Court, a national district court of the
Dominican Republic, will disclose the trial date for the fraud
allegations filed against four executives and a former financial
consultant of Banco Intercontinental aka Baninter, Dominican
Today reports.

According to Dominican Today, these were the defendants in the
case:

    -- Ramon Baez Figueroa,
    -- Marcos Baez Coccoany,
    -- Vivian Lubrano de Castillo,
    -- Jesus Troncoso Ferrua, and
    -- Luis Alvarez Renta.

Dominican Today relates that the court will rule on the last
motions filed by the attorneys of the defendants, who asked for
adjustments.

Among the decisions the court will make is whether to allow the
Central Bank and the Banks Superintendence to be plaintiffs in
the case, Dominican Today relates.

The prosecution had asked the court to proceed with the trial,
which is expected to have five months of hearings due to the
overwhelming number of motions, Dominican Today states.

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


* DOMINICAN REPUBLIC: Expects to Earn US$80M from Banana Exports
----------------------------------------------------------------
The Dominican Republic will earn over US$80 million in banana
exports, Fresh Plaza reports.

Salvador Jimenez -- the agriculture secretary of the Dominican
Republic -- told Fresh Plaza that the nation will export 11
million boxes of bananas in 2006.

Fresh Plaza relates that before Leonel Fernandez became the
president of the Dominican Republic, the nation shipped about
140,000 boxes of bananas a week.

The Dominican Republic has become one of the major exporters of
organic bananas in the world, especially since the European
Union is a large consumer, Fresh Plaza states.

                        *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

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

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

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


* DOMINICAN REPUBLIC: IMF Notes Success In Restoring High Growth
----------------------------------------------------------------
On Sept. 16, 2006, the delegation of the Dominican Republic to
the IMF Annual Meeting, headed by Secretary Montas and Governor
Valdez, met with Deputy Managing Director Carstens and members
of the Fund staff.  This was a productive meeting, during which
the delegation described recent developments and the policy
intentions for the remainder of this year and for 2007.

Mr. Carstens noted the considerable success of the authorities'
program in restoring high growth, low inflation, financial
stability, and a strong balance of payments.  He encouraged the
authorities to persevere with the implementation of sound
policies so as to consolidate further the public finances and
ensure that the gains achieved so far are sustained.  These
efforts need to be supported by putting in place the
structural/institutional reforms envisaged in the program and
making every effort to address the financial problems of the
electricity sector.

It was agreed that a staff mission will visit Santo Domingo
around mid-Oct. to continue the discussions on the fifth review
under the Stand By Arrangement and the policy framework for
2007.

                        *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

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

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

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




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


PETROECUADOR: Claims US$360MM Worth of Crude Is Stolen Yearly
-------------------------------------------------------------
Ivan Rodriguez, the state-run oil firm of Petroecuador told
Xinhua News Agency that about US$360 million worth of crude oil
have been stolen yearly through 13 illegal installations in the
fields of Petroecuador, the state-run oil company of Ecuador.

A notary had checked the pipelines transporting petrol from the
wells to the pumping stations, and found out an 8% difference
between what emerges from the ground and what was measured by
state pumping facilities, Xinhua reports, citing Minister
Rodriguez.

Xinhua relates that Officials had said for several years that
the difference was due to ageing oil-measuring equipment.

According to the report, the National Hydrocarbons Directorate
first discovered the fraud 30 days ago, and has reported it to
Petroecuador.

Xinhua underscores that the Ecuadorian energy ministry has asked
Stalin Salgado -- the national hydrocarbons director -- to
conduct an exhaustive analysis.

Vidal Estacio, a member of the governing board at Petroecuador,
told Xinhua that he could not discard the idea that state
employees had made illegal interventions for personal benefits.

Mr. Estacio called on the state prosecutor to start a probe,
Xinhua states.

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


PETROECUADOR: Will Probe on Theft of Crude Oil Through Pipelines
----------------------------------------------------------------
Rene Vargas -- the acting head of Petroecuador, Ecuador's state
oil firm -- told EFE News that there would be an investigation
on the alleged theft of crude oil through pipes attached to
pipelines in Amazon.

A preliminary report Petroecuador technicians prepared showed
that there was no theft of crude, as alleged by Ivan Rodriguez
-- Ecuador's energy minister -- several days ago, Ecuavisa
television says, citing Mr. Vargas.

Mr. Vargas told EFE that the technicians told him that a few of
the pipes connected to the pipelines that carry crude were set
up for technical reasons.  Vargas said he accepted the
preliminary findings.  However, he said that he was still going
to order a thorough investigation to clear up the situation.

According to EFE, Minister Rodriguez recently ordered a
restructuring of Petroproduccion -- a Petroecuador unit -- on
grounds that some of the subsidiary's workers might be involved
in the alleged theft of oil.

Up to 20,000 barrels per day may have been stolen, EFE notes,
citing Minister Rodriguez.  However, Petroproduccion officials
denied the charge.

It was possible that some crude might have been stolen by people
with connections to Petroecuador and processed secretly at a
plant in Amazon for later sale to Colombian rebels, EFE says,
citing Fernando Santos, an expert on the petroleum industry.

Oil theft would boost the production numbers at Petroecuador,
allowing the firm to receive larger amounts of capital from the
Bolivian government, Mr. Santos told EFE.

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




===========
G U Y A N A
===========


DIGICEL LTD: Gets Telecom License in Guyana
-------------------------------------------
Digicel Ltd. has won a license to run a GSM network in Guyana,
Business Latin America reports.

According to the report, the new license will extend Digicel's
coverage to 22 markets across the region.

Business Latin relates the Digicel launched operations in French
Guiana in 2006.

The report says that Digicel raised about US$150 million in July
through a bond offering to aid the rollout of new networks in
Trinidad & Tobago and Haiti.

Digicel also won a license to operate in Suriname, Business
Latin states.

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

                        *    *    *

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

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




=========
H A I T I
=========


* HAITI: Receives US$492-Million Donation from United States
------------------------------------------------------------
The United States government donated US$492 million to Haiti to
aid the latter in the development of social programs, the
creation of services and the fight against AIDS, Dominican Today
reports.

Dominican Today relates that the donation will be effected
progressively in the next the three years, according to the
accord signed by:

      -- Jacques Edouard Alexis, the Haitian prime minister;

      -- Jean Max Bellerive, the minister of Planning and
         External Cooperation;

      -- Janet Sanderson, the ambassador of the US in Haiti; and

      -- Paul Tuebner, the director of the American Agency for
         Internacional Development.

Ambassador Sanderson told Dominican Today, "This agreement aims
at improving Haitians living conditions, their opportunities,
development of quality social services and to reinforce Haitians
rights in Haiti."

Dominican Today underscores that Ambassador Sanderson said that
among the objectives in the accord is to help Haitian President
Rene Preval in matters of:

       -- education and health;

       -- in the reform of the national police and the judicial
          system; and

       -- in the fight against AIDS.

Ambassador Sanderson also talked with Prime Minister Alexis
about the deported Haitian immigrants from the US.

Ambassador Sanderson told Dominican Today, "We are conscious
that the deported Haitians from the USA constitute a great
problem in Haiti and are a subject that we will continue
discussing with the Haitian government."

"The deported Haitians responsibility is Haiti's own," Dominican
Today states, citing Ambassador Sanderson.

                        *    *    *

Haiti is currently seeking international help to spur economic
development in the country.  President Rene Preval submitted
that the country's poverty, widespread unemployment and the
dilapidated state of infrastructures will be alleviated with
increased international assistance.


* HAITI: IMF Sees Eligibility for Assistance Under HIPC Program
---------------------------------------------------------------
On Sept. 6, the IMF Executive Board considered the preliminary
assessment of Haiti's eligibility under the enhanced HIPC
(Highly Indebted Poor Countries) Initiative.  The debt
sustainability analysis, conducted jointly by the staff of the
IMF and the World Bank in close collaboration with the
authorities, shows that Haiti's external debt as of end of
Sept. 2005 exceeded the sustainability threshold established
under the enhanced HIPC Initiative.  The Fund therefore
considers that Haiti is eligible for assistance under the
enhanced HIPC Initiative.

Executive Directors noted Haiti's satisfactory track record
under the Emergency Post-Conflict Assistance programs during
2004-06.  They welcomed the new government's commitment to
policies aimed at sustaining macroeconomic stability and
creating conditions for sustainable growth.

Looking ahead, Directors cautioned that Haiti continues to face
daunting challenges, particularly in the areas of security,
social conditions, and sustained income growth, and emphasized
the need for continued financial support from and engagement
with the international community. Directors stressed that Haiti
should continue its efforts to enhance governance, strengthen
public institutions, promote private-sector led growth, and to
orient public expenditure and the budget toward poverty-reducing
activities.  Directors stressed the importance of employing
mechanisms that are in place to monitor the use of resources
made available by the HIPC Initiative and encouraged maximum
transparency in the use of those resources.  Continued reforms
in macroeconomic, structural, and social areas and close
attention to improving the security situation will be essential
in enabling Haiti to reach its floating completion point.

                        *    *    *

Haiti is currently seeking international help to spur economic
development in the country.  President Rene Preval submitted
that the country's poverty, widespread unemployment and the
dilapidated state of infrastructures will be alleviated with
increased international assistance.




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


AIR JAMAICA: Will Not Lay Off Workers Nor Reduce Routes
-------------------------------------------------------
Michael Conway -- the chief executive officer of Air Jamaica
-- told Radio Jamaica that the company has no plans to fire
employees or reduce its routes.

According to Radio Jamaica, there have been news on intra-
regional carrier LIAT's plan to lay off workers and reduce
operations by 20%.  Caribbean Star, another regional carrier,
also disclosed that it will be operating lesser flights.

Mr. Conway also told Radio Jamaica that he does not expect any
major consequences for the industry with the shutting down of
British West Indies Airways.

                        *    *    *

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


DIGICEL LTD: Jamaica Network Aims to Compete with Firm
------------------------------------------------------
The Jamaica Network Access Point aka JNAP is seeking for a
license in Jamaica, hoping to enter the race for wireless
broadband market share against Digicel Ltd., the Jamaica Gleaner
reports.

JNAP, according to The Gleaner, has set its sight on one of the
two wireless broadband licenses that the Jamaican government has
been trying to sell over the last two months.   If JNAP gets the
license, it will be able to compete directly with Digicel, which
is currently offering services to businesses in Kingston.

Dean Panton -- the chief executive of JNAP -- confirmed to The
Gleaner that the company, which also offers services as a
colocation point to link other firms servers to the Internet,
put in its application to Spectrum Management Authority or SMA
-- the regulatory authority -- when it opened up to bidders last
week.

Mr. Panton, however, declined to give The Gleaner details of
JNAP's market plans.

Ernest Smith -- the executive director of SMA -- hinted to The
Gleaner that there was one applicant for the license and that
the applicant was the sole bidder back in mid-Aug., when the
license was first to be sold.

"I have received one formal application from an existing telecom
operator and one expression of interest.  It was the late bid
that came back in," Mr. Smith told The Gleaner.

The Gleaner relates that Mr. Smith previously said that the
bidder had submitted a late tender in Aug. and that the
Contractor General had instructed the SMA to return the
application.

However, Mr. Panton refuted that JNAP was not late in submitting
its bid, saying that he is "reviewing how to proceed to set the
record straight".

According to the report, the auction was first launched on June
20 with an initial deadline set for July 19.  The Jamaican
government agency, however, extended the deadline to Aug. 18 to
accommodate interested parties.  The SMA is currently taking a
"first come, first served" rule to the new bids.

The two licenses include:

      -- "metropolitan areas only" incorporating Kingston,
         St. Andrew and St. Catherine, as well as St Ann and St
         James; and

      -- "rural areas only", taking in the other nine parishes.

Mr. Smith told Sunday Business, "We have resorted to standard
licensing procedure."

Digicel Jamaica launched wireless broadband services in the
Corporate Area for "the business market" and will soon enter
other major business centers across the island, The Gleaner
says, citing Harry Smith, the company's chief customer relations
director.  He said, "WiMax is currently offering the business
community greater choice; it is not just about speed.  The
service is currently offered at speeds up to 3Mbs."

Sources told The Gleaner that Digicel hopes to begin offering
residential service by May 2007.

JNAP and Digicel are part of Trans-Caribbean Cable Company, a
72-member fiber optic cable consortium, The Gleaner relates.

                        *    *    *

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

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


KAISER ALUMINUM: Reports Payments to Ordinary Course Employees
--------------------------------------------------------------
Kaiser Aluminum Corp. reports the payments of fees and
expenses incurred by professionals who assisted the company in
its ordinary course of business for the period Feb.1, 2006
through July 5, 2006:

                                   Type of               Total
   Professional                    Services             Payment
   ------------                    --------             -------
   Adams & Clark, Inc.           Land Planning         US$20,938

   Andrews Kurth LLP             Legal Services        US$52,108

   Baker, Donelson, Bearman,
     Caldwell & Berkowitz        Legal Services        US$11,807

   Bell, Nunnally & Martin       Legal Services         US$2,115

   Cassidy, Kotjarapoglus        Public Records
     & Pohland LLC               Research Services      US$3,370

   DoveBid Valuation Services    Appraisal of
                                 Domestic Facilities  US$116,000

   Fleishman-Hillard, Inc.       PR & Communications
                                 Consulting           US$315,911

   Holden & Oreskovich, PS       Legal Services         US$8,473

   Hewitt Associates LLC         Enrolled Actuary/    US$363,507
                                 Compensation
                                 Consulting

   Jones, Tullar & Cooper        Legal Services        US$15,217

   KPMG LLP                      Tax & Acctg. Svcs.    US$35,000

   Kean, Miller, Hawthorne,
    D'Armond, McCowan & Jarman   Legal Services           US$122

   Ladas & Parry                 Legal Services        US$13,684

   McKay Chadwell PLLC           Advisor to Audit
                                 Committee            SUS$27,249

   Morgan, Lewis & Bockius       Legal Services           US$522

   Morrow Property Tax Services  Tax Compliance &
                                 Consulting            US$34,400

   Nexsen Pruett LLC             Legal Services        US$59,770

   Patton Boggs LLP              Legal Services           US$220

   Perkins Coie LLP              Legal Services      SUS$114,009

   Robinson & McElwee PLLC       Legal Services         US$2,161

   Sonnenschein Nath &
     Rosenthal                   Legal Services      SUS$105,472

   Witherspoon, Kelly, Davenport
     & Toole PS                  Legal Services        US$68,151

   Wolfe Leinbach PS             Legal Services        US$34,552

   WP Thomson & Co.              Legal Services           US$450

Payments made to Fleishman and Hewitt during the six-month
reporting period exceeded the US$35,000-per-month limit imposed
by the U.S. Bankruptcy Court for the District of Delaware.

Kaiser says it has discussed the overage with the counsel for
the U.S. Trustee and it intends to submit a stipulation and
agreed order that would alleviate the need at this stage to
retain Fleishman and Hewitt as professional under Section 327 of
the Bankruptcy Code.

                        About Kaiser

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corp. -- http://www.kaiseraluminum.com/-- is a leading producer
of fabricated aluminum products for aerospace and high-strength,
general engineering, automotive, and custom industrial
applications.  The Company 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)


NATIONAL COMMERCIAL: Unit Falls Into Theft
------------------------------------------
Fraud Squad detectives accused Illene Miller -- a Ministry of
Justice employee -- and Michelle Roberts-Francis, a loans
officer at the National Commercial, for stealing millions of
dollars from the Half-Way-Tree branch of the National Commercial
Bank, Radio Jamaica reports.

Radio Jamaica relates that Ms. Miller allegedly swindle the bank
of US$2 million through the issuance of loans to persons
purportedly employed to the Justice Ministry.  Mrs. Roberts-
Francis was arrested after an audit revealed that since 2005,
millions of dollars in unauthorized loans were paid out to
persons on fictitious loan applications.

Investigators alleged that Ms. Miller and Mrs. Francis conspired
with other persons to defraud the National Commercial bank,
according to Radio Jamaica.

Forged letters on the Justice Ministry's letterhead were used to
support fictitious loan applications, Radio Jamaica notes,
citing investigators.

Radio Jamaica underscores that some of the loans were allegedly
sent directly to Ms. Miller's account.

According to Radio Jamaica, auditors at the National Commercial
are continuing their investigation to determine the extent of
the loans fraud.

Ms. Miller and Mrs. Francis are to appear before the Jamaican
court this week, Radio Jamaica states.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2006, Fitch initiated rating coverage on Jamaica's
National Commercial Bank Jamaica, Ltd., by assigning 'B+'
ratings on the bank's long-term foreign currency.  Other ratings
assigned by Fitch include:

   -- Long-term local currency 'B+';
   -- Short-term foreign currency 'B';
   -- Short-term local currency 'B';
   -- Individual 'D';
   -- Support '4'.

Fitch said the ratings have a stable rating outlook.




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


FINANCIERO BANORTE: Denies Rumors on Firm's Sale
------------------------------------------------
Mexico's Grupo Financiero Banorte said in a filing with the
local stock exchange that it is not being put up for sale,
Business News Americas relates.

Rumors in the Mexican market say that Bank of America was
negotiating for the acquisition of Banorte.

Grupo Financiero Banorte S.A. de C.V. is a holding company that
operates, through its subsidiaries, in the Mexican banking
industry.  The company's main activities include commercial,
personal and investment banking, securities trading, insurance,
pension funds, leasing and credit financing.  Its two main
subsidiaries are Banorte (96.11%) and Bancentro (99.99%), which
both offer personal and commercial banking services such as
credit and debit cards, insurance products, savings accounts and
mortgage financing.  As of Dec. 31, 2005, Grupo Financiero
Banorte run a total of 986 offices and over 2,800 automated
teller machines across Mexico.

                        *    *    *

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

Grupo Financiero Banorte and Banco Mercantil del Norte:

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

The Ratings Outlook is Stable.

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

These ratings were affirmed:

   GFNorte

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

   Banorte

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


FORD MOTOR: Inks Consulting Agreement with John R.H. Bond
---------------------------------------------------------
Ford Motor Company entered into a consulting agreement with John
R.H. Bond, a member of the Board of Directors.

Under the agreement, Mr. Bond will serve as a consultant and
senior advisor to William Clay Ford, Jr., executive chairman of
the board, working on financial and other matters.  The
consulting fee will be US$25,000 per day for actual days worked,
payable in arrears.  The Company contemplates that Mr. Bond will
spend approximately one and one-half days adjacent to each of
the Company's seven regularly scheduled Board of Directors
meetings consulting pursuant to the consulting agreement, and
that total fees payable to Mr. Bond will not exceed US$262,500
for any twelve month period unless specifically agreed to by the
Company and Mr. Bond.  During the term of the agreement, the
Company will reimburse Mr. Bond for customary and reasonable
business-related expenses, travel and lodging, consistent with
Company policies and procedures.

Mr. Bond will continue to serve as a member of the Board of
Directors and will receive the compensation and benefits
applicable to non-employee directors.  He resigned from the
Compensation Committee and the Nominating and Governance
Committee of the Board of Directors effective as of
Sept. 13, 2006.

               Acceleration of Way Forward Plan

The Company, on Jan. 19, 2006, committed to a business
improvement plan, referred to as the Way Forward plan, to
respond to changing facts and circumstances, and on
Sept. 14, 2006, it committed to an acceleration of the plan,
details of which are set forth in the news release dated
Sept. 15, 2006.

                Changes in the List of Officers

The Company's Board of Directors, effective Sept. 14, 2006,
amended its bylaws to add the position of Executive Chairman of
the Board of Directors to the Company's list of officers and
eliminate the position of Chief Operating Officer.

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

                        *    *    *

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

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

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

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


FORD MOTOR: In Talks with GM for Possible Merger, Report Says
-------------------------------------------------------------
Executives from Ford Motor Co. and General Motors have discussed
a possible merger or alliance, Automotive News reports in its
Monday, Sept. 18, edition.

The negotiations began in July after Nissan Motor Co. Ltd. and
Renault SA CEO Carlos Ghosn broached the possibility of an
alliance among Renault, Nissan and GM, according to several
sources familiar with the talks, Automotive News reports.

It is not clear who launched the talks.  One source says GM CEO
Rick Wagoner contacted Ford Motor the day after Mr. Ghosn
disclosed his plan.  A second source disputes that.

In August, GM CFO Fritz Henderson discussed the proposed
alliance with Ford CFO Don Leclair, said a source familiar with
the talks.

But it is not at all clear whether the negotiations will bear
fruit.  As of now, the two companies are not holding talks, and
one source says there is a slim chance that anything will come
of it.

GM spokesman Tony Cervone declined to comment on the report.

"We regularly talk to a number of people in the industry
regarding business opportunities of mutual interest," Cervone
said on Sept. 15.  "As a matter of course, we don't comment on
any of those because in many cases, they simply don't lead to
anything."

Ford spokesman Oscar Suris also declined to comment.

To complicate things, GM is studying the Ghosn proposal to join
the Nissan-Renault alliance.  GM is two-thirds of the way
through a 90-day study, which it is conducting with Renault and
Nissan.

Mr. Ghosn made his proposal that GM join the Nissan-Renault
alliance at the urging of Las Vegas billionaire Kirk Kerkorian,
a major GM shareholder.

                     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: S&P Maintains Negative Watch on B+ Long-Term Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services' 'B+' long-term and 'B-2'
short-term ratings on Ford Motor Co., Ford Motor Credit Co.,
and related entities remained on CreditWatch with negative
implications following the announcement of additional cost-
cutting efforts and an accelerated restructuring plan.

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

Ford's actions, which include buyout offers for all 75,000 U.S.
hourly workers, a 30% reduction in salaried staff, and the
suspension of quarterly dividends, are indicative of the severe
challenges and magnitude of cost reductions the company needs to
turn around -- and restore acceptable profitability at -- its
North American operations.

In addition, the company announced the departure of at least two
senior managers involved in the North American turnaround.

"The work force reductions and accelerated restructuring efforts
will result in massive special charges and add to the cash burn
already occurring in North America," said Standard & Poor's
credit analyst Robert Schulz, "although in the longer term, the
moves will likely result in future cash savings."

Furthermore, the downsizing and any accelerated product
introductions will entail considerable execution risk.

Evaluating these latest announcements will be a major focus in
resolving Standard & Poor's CreditWatch review of Ford.
Standard & Poor's is assessing all ramifications of the
restructuring, as well as Ford's efforts to address other
ongoing challenges, including lower market share and
deteriorating product mix in North America.  The rating agency
expects to resolve the CreditWatch within a week.


GENERAL MOTOR: In Talks with Ford for Likely Merger, Report Says
----------------------------------------------------------------
Executives from Ford Motor Co. and General Motors have discussed
a possible merger or alliance, Automotive News reports in its
Monday, Sept. 18, edition.

The negotiations began in July after Nissan Motor Co. Ltd. and
Renault SA CEO Carlos Ghosn broached the possibility of an
alliance among Renault, Nissan and GM, according to several
sources familiar with the talks, Automotive News reports.

It is not clear who launched the talks.  One source says GM CEO
Rick Wagoner contacted Ford Motor the day after Mr. Ghosn
disclosed his plan.  A second source disputes that.

In August, GM CFO Fritz Henderson discussed the proposed
alliance with Ford CFO Don Leclair, said a source familiar with
the talks.

But it is not at all clear whether the negotiations will bear
fruit.  As of now, the two companies are not holding talks, and
one source says there is a slim chance that anything will come
of it.

GM spokesman Tony Cervone declined to comment on the report.

"We regularly talk to a number of people in the industry
regarding business opportunities of mutual interest," Cervone
said on Sept. 15. "As a matter of course, we don't comment on
any of those because in many cases, they simply don't lead to
anything."

Ford spokesman Oscar Suris also declined to comment.

To complicate things, GM is studying the Ghosn proposal to join
the Nissan-Renault alliance.  GM is two-thirds of the way
through a 90-day study, which it is conducting with Renault and
Nissan.

Mr. Ghosn made his proposal that GM join the Nissan-Renault
alliance at the urging of Las Vegas billionaire Kirk Kerkorian,
a major GM shareholder.

                        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.

                     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.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 17, 2006,
Standard & Poor's Services said its rating on GMAC LLC, formerly
General Motors Acceptance Corp., remain on CreditWatch, where
they were placed on Oct. 3, 2005, pending completion of General
Motors Corp.'s planned sale of 51% of its ownership interest in
GMAC to a consortium led by Cerberus Capital Management.  Upon
completion of the sale, Standard & Poor's is likely to raise the
to 'BB+/B-1'.


GENERAL MOTORS: GMAC Offers to Buy Deferred Interest Debentures
---------------------------------------------------------------
GMAC Financial Services has commenced tender offers to purchase
for cash its outstanding Deferred Interest Debentures due
Dec. 1, 2012, and June 15, 2015, for an aggregate purchase price
of US$500 million or approximately 30 percent of the debentures
outstanding.  Debentures tendered prior to 5:00 p.m., EDT,
on Sept. 27, 2006, will receive an early tender premium.

The tender offer commenced Thursday, Sept. 14, 2006, and will
expire at midnight, EDT, on Oct. 12, 2006, unless extended.

"Throughout the last few years, we have successfully implemented
several innovative funding mechanisms from diversified sources
in order to strengthen our balance sheet, despite declining GMAC
credit ratings," said Sanjiv Khattri, GMAC executive vice
president and chief financial officer.  " This small but
significant step reflects our strong cash position and now
allows us to selectively reduce the level of our higher cost
debt.  This represents just one of many new opportunities that
we believe will help make GMAC even more competitive going
forward as a stand alone company."

GMAC is offering US$6,600 for each US$10,000 Accreted Value (as
defined in the Offer to Purchase) at maturity of 2012 Debentures
tendered (equal to 78 percent of the US$8,460.42 of the Accreted
Value of the 2012 Debentures as of Oct. 12, 2006, and equal to
66 percent of the Accreted Value of the 2012 Debentures at
maturity).  This also includes an early tender premium of US$200
if tendered prior to 5:00 p.m., EDT, on Wednesday,
Sept. 27, 2006.

GMAC is offering US$5,600 for each US$10,000 Accreted Value at
maturity of 2015 Debentures tendered for payment (equal to 70
percent of the US$7,948.09 of the Accreted Value of the 2015
Debentures as of Oct. 12, 2006 and equal to 56 percent of the
Accreted Value of the 2015 Debentures at maturity).  This also
includes an early tender premium of US$200.00 if tendered prior
to the Early Tender Expiration Time.

Holders who do not tender before the Early Tender Expiration
Time will not be eligible to receive the applicable early tender
premium.

The tender offer will be financed from GMAC's existing cash
portfolio.  All Debentures purchased under the offers will be
retired upon completion of the tenders.  Payments of the tender
consideration for the debentures, validly tendered and not
withdrawn, on or prior to the expiration date, and accepted for
purchase, will be made promptly after the expiration date.
Debentures that are not tendered and accepted for payment as
part of the offer will remain obligations of GMAC.

The terms and conditions of the tender offer appear in GMAC's
Offer to Purchase, dated Sept. 14, 2006.  The consummation of
the tender offer is conditioned on the satisfaction of customary
conditions. If any of the conditions are not satisfied, GMAC is
not obligated to accept for payment, purchase or pay for, or may
delay the acceptance for payment of, any tendered debentures,
and may terminate the tender offer.  Subject to applicable law,
GMAC may waive any condition applicable to the tender offer and
extend or otherwise amend the tender offer.

Questions regarding the tender offer or consent solicitation may
be directed to the dealer managers:

         Morgan Stanley & Co. Incorporated,
         Phone: 800.624.1808 (U.S. toll-free)
                212.761.1864 (collect)

         Barclays Capital Inc.,
         Phone: 866.307.8991 (U.S. toll-free)
                212.412.4072 (collect)

         Merrill Lynch, Pierce, Fenner & Smith Incorporated
         Phone: 888.654.8637 (U.S. toll-free)
                212.449.4914 (collect)

Copies of the Offer to Purchase may be obtained at no charge
from:

         D.F. King & Co., Inc.,
         Information Agent
         Phone: 800.859.8511(U.S. toll-free).

General Motors Acceptance Corp. is a global, financial
services, limited liability Company that operates in 39
countries, in auto finance, residential mortgage, insurance and
commercial finance businesses.  With more than US$300 billion in
assets, it generated nearly US$2.4 billion in net income in
2005, on net revenues of US$19.2 billion.  General Motors, which
currently owns all of the equity of GMAC, announced earlier this
year that it will sell a majority of its interest to a
consortium of investors led by Cerberus Capital Management.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 17, 2006,
Standard & Poor's Services said its rating on GMAC LLC, formerly
General Motors Acceptance Corp., remain on CreditWatch, where
they were placed on Oct. 3, 2005, pending completion of General
Motors Corp.'s planned sale of 51% of its ownership interest in
GMAC to a consortium led by Cerberus Capital Management.  Upon
completion of the sale, Standard & Poor's is likely to raise the
to 'BB+/B-1'.


GRUPO MEXICO: No Firm in Mind for Buyout or Merger
--------------------------------------------------
A senior official of Grupo Mexico SA de CV told Reuters that the
company has no specific firms in sight as targets for a possible
acquisition or merger.

Reuters notes that in August Grupo Mexico was rumored to be
considering buying Phelps Dodge.

Grupo Mexico, however, was constantly on the look out for merger
or acquisition opportunities, Reuters relates, citing Juan
Rebolledo -- the firm's head of international affairs.

Mr. Rebolledo told Reuters, "Studies are always being done about
what is out there, but no company is a target right now."

Reuters underscores that Mr. Rebolledo said he thought it
unlikely that Grupo Mexico or Southern Copper Corp., its mining
division, "would be victims of a hostile takeover."

"It would be very difficult because the majority in Grupo and
SCC are very consolidated," Reuters states, citing Mr.
Rebolledo.

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

                        *    *    *

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

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


GRUPO SENDA: Fitch Assigns B Local & Foreign Curr. Issuer Rating
----------------------------------------------------------------
Fitch Ratings has assigned a local and foreign currency Issuer
Default Rating of 'B' to Grupo Senda Autotransporte, S.A., de
C.V.  The Rating Outlook for these corporate ratings is Stable.

In addition, Fitch has assigned a preliminary issue rating of
'B' to Grupo Senda's proposed US$200 million issuance of 10-year
guaranteed senior unsecured notes.  Fitch has assigned a
recovery rating of 'RR4' to the issue based on average recovery
prospects.  The notes will be due in 2016 and will be fully and
unconditionally guaranteed by Grupo Senda's wholly owned
operating subsidiaries, which account for about 85% of
consolidated EBITDA.  The proceeds of the issuance are expected
to be used primarily to refinance approximately US$170 million
of the company's bank and lease debt and for investments.

Grupo Senda's ratings reflect the company's leveraged financial
profile and solid competitive position as a leading provider of
inter-city passenger bus services in Mexico.  Grupo Senda's
unique business model aims to provide higher quality
standardized service within a competitive and fragmented
industry.  The ratings also consider the importance of the
country's bus transportation segment due to the price advantages
of traveling by bus relative to alternative means.  Although
company's leverage is high, the ratings incorporate the
expectation that operating EBITDA will strengthen over the next
few years as the improvements and investments are made at
subsidiaries acquired over the past two years.

Grupo Senda's leverage is moderately high and consistent for the
rating category.  At year-end 2005 Grupo Senda had total debt of
US$219 million, including an adjustment of US$11 million for
operating leases, and generated operating EBITDA of US$51
million resulting in a ratio of total debt-to-EBITDA of 4.3x.
In 2006, Fitch expects Grupo Senda to generate EBITDA of about
US$55 million-US$60 million and end the year total debt-to-
EBITDA ratio of about 4.6x, slightly higher than in 2005. In an
effort to improve its credit quality, Grupo Senda may execute an
equity offering in 2007 and use the proceeds to reduce debt to
reach a target total debt-to-EBITDA ratio of about 2.5x.

Compared with other passenger bus companies in Mexico, Grupo
Senda's business model allows the company to operate more
efficiently, better adapt to market conditions and provide
higher quality standardized services and enhanced safety.  The
model involves hiring drivers and other workers that are
directly employed by the company.  In contrast, most of Mexico's
other authorized bus transportation companies are owner-operated
such that the bus drivers typically own one or more of the buses
they operate and control shares of the company in proportion to
the number of buses owned.

The bus service market plays a significant role in the overall
passenger transportation sector of Mexico, accounting for
approximately 98% of the 3 billion passenger tickets sold for
intercity travel in 2005. Alternative means of transportation
such as by airplane or personal car are not economically viable
for the average traveler as approximately 93% of the Mexican
population earns less than US$700 per month.  However, low-cost
airlines are a new source of competition in some of the major
intercity routes.  The country's rail transportation
infrastructure has been developed almost exclusively for freight
transportation creating a formidable barrier to entry.

Grupo Senda is a holding company and a leading provider of
interstate passenger bus transportation and package delivery
services covering 15 states and more than 120 cities in
northeast and central Mexico and 12 destinations in the state of
Texas in the United States.  In 2005, approximately 82% of Grupo
Senda's revenues of about US$227 million was generated from its
passenger transportation segment for public intercity and
chartered bus services and 18% from its from its personnel
division for intracity transportation services to industrial
facilities and educational institutions.  The company employs
more than 6,000 people and operates a fleet of more than 2,000
buses operates under several subsidiaries and brands names and
transported about 50 million passengers in 2005.


EMPRESAS ICA: Inks Two Construction Contracts for MXN1.35 Mil.
--------------------------------------------------------------
Empresas ICA, S.A. de C.V., signed two civil construction
contracts for a total of MXN1,349.1 million.

The Ministry of the Navy awarded ICA the contract for the
design, construction, and medical equipment installation of the
Naval Hospital for Specialties, in the Coyoacan district of
Mexico City.  The total contract value is MXN977.9 million.  The
project includes hospital facilities with a total area of 24,100
square meters, and two levels of parking with an area of 11,600
square meters.  The turnkey project has a guaranteed maximum
price and will be executed over a period of 570 days.

The second contract is for the construction of section A of the
Texcoco-Zaragoza Interchange.  Mexico City's General Management
Office of Public Works awarded the contract for MXN371.2 million
to ICA.  The project includes the construction of an interchange
that will connect the Ignacio Zaragoza road with the Mexico-
Puebla toll road, and will also tie in with the Ermita
Iztapalapa road.  The total length will be 3.8 kilometers and
the maximum height will be 25 meters.  The project was divided
into two sections, and ICA has been assigned the segment from
Texcoco to Zaragoza.  The unit price, fixed term contract is
scheduled to be completed in June 2007.

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

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

                        *    *    *

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

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

                        *    *    *

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


OPEN TEXT: Earns US$5 Million in Fiscal 2006
--------------------------------------------
Open Text Corp. generated US$409.6 million of total revenue
for the fiscal year ended June 30, 2006, compared to
US$414.8 million for the previous fiscal year.

Net income for fiscal year 2006 in accordance with US GAAP was
US$5 million, compared to the prior fiscal year's net income of
US$20.4 million.  Adjusted net income for fiscal year 2006 was
US$50.8 million, compared to adjusted net income for the
previous fiscal year of US$39.1 million.

Total revenue for the fourth quarter was US$105.2 million,
compared to US$109.4 million for the same period in the prior
fiscal year.  Adjusted net income in the quarter was US$15.4
million, compared to US$9 million for the same period in the
prior fiscal year.  Net income in accordance with U.S. GAAP was
US$7.8 million, compared to US$5 million for the same period in
the prior fiscal year.

"During fiscal 2006 we achieved our profitability targets,"
stated John Shackleton, President and CEO of Open Text Corp..
"We restructured the organization, rationalized our product
offerings and have strengthened the executive team with our new
Chief Financial Officer and Executive Vice President of Global
Sales and Services."

The cash, cash equivalents and short-term investments balance as
of June 30, 2006, was US$107.4 million.  Accounts receivable as
of June 30, 2006, totaled US$75 million, compared to US$81.9
million as of June 30, 2005, and Days Sales Outstanding was 64
days in the fourth quarter of fiscal 2006, compared to 67 days
in the fourth quarter of fiscal 2005.

Operating cash flow in the fourth quarter of fiscal 2006 was
US$15.4 million compared to US$10.5 million in the fourth
quarter of the prior fiscal year.  For the full 2006 fiscal
year, Open Text generated US$60.8 million in cash flow from
operations compared to US$57.3 million in fiscal 2005.

During the fourth quarter the Company purchased approximately
765,000 common shares of Hummingbird Ltd. at a total cost of
approximately US$21 million.  "Our market is consolidating and
the addition of Hummingbird will bring us the size and vertical
solutions expertise to strengthen our position as the largest
independent global ECM vendor," said John Shackleton.

                         Guidance

For the first quarter of fiscal 2007 (ending on Sept. 30, 2006),
the Company estimates revenue will be in the range of US$93
million to US$101 million with adjusted EPS of approximately
US$0.17 to US$0.27.

                      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
a field office in Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 12, 2006,
Standard & Poor's Ratings Services assigned its 'BB-' long-term
corporate credit rating to Open Text Corp.  At the same time,
Standard & Poor's assigned its 'BB-' bank loan rating, with a
recovery rating of '2', to the company's proposed US$490 million
senior secured bank facility, which consists of a US$75 million
five-year revolving credit facility and a US$415 million seven-
year term loan B.


OPEN TEXT: Stable Market Position Spurs S&P to Assign BB- Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
corporate credit rating to Waterloo, Ont.-based enterprise
software provider, Open Text Corp.

At the same time, Standard & Poor's assigned its 'BB-' bank loan
rating, with a recovery rating of '2', to the company's proposed
US$490 million senior secured bank facility, which consists of a
US$75 million five-year revolving credit facility and a US$415
million seven-year term loan B.  The '2' recovery rating
reflects expectations for a substantial (80%-100%) recovery of
principal in the event of default.  The outlook is negative.

Concurrently with the closing of the bank facility, Open Text
plans to complete the 100% acquisition of Toronto-based
enterprise software provider, Hummingbird Ltd.  The US$500
million acquisition will be financed by the US$415 million term
loan B and pro forma cash balances.  Pro forma for the
Hummingbird acquisition, Open Text has fiscal 2006 revenues of
US$668 million and balance-sheet debt of US$428 million.

Open Text is a leading provider of Enterprise Content Management
(ECM) software targeting large Global 2000 enterprise customers.
ECM software and support services--an estimated US$2.25 billion
addressable market--help businesses capture, store, and manage
unstructured corporate data.  The company's flagship product,
Livelink ECM, has an installed base in excess of 20 million
seats in more than 114 countries.

"The ratings on Open Text reflect its stable market position
within a niche segment of the software industry, its solid scale
given a large installed base of customers, good customer and
geographic diversity, a large base of recurring revenues, and a
history of generating good free operating cash flow," said
Standard & Poor's credit analyst Madhav Hari.

These factors are partially offset by:

   -- a highly competitive and consolidating technology
      marketplace characterized by the presence of bigger and
      better-integrated vendors,

   -- an aggressive financial policy, declining organic software
      license revenue growth,

   -- weaker execution, and

   -- significant integration risk from the Hummingbird
      acquisition.

The company will have aggressive leverage on completion of the
Hummingbird acquisition and will likely remain acquisitive,
albeit on a smaller scale.

The negative outlook reflects concerns over weak operating
performance in the past several quarters, specifically with
regard to the negative organic license revenue growth.

The potential execution risk associated with the Hummingbird
acquisition and associated ability to bring key credit measures
in line with the ratings are other factors governing the
negative outlook.  The outlook could be revised to stable if the
company meets expectations and reverses the trend of declining
organic license revenue growth.

Should the company fail to integrate Hummingbird as planned, or
lose significant market share, resulting in a deterioration of
credit metrics, the ratings could be lowered.


PORTRAIT CORP: Moody's Withdraws All Ratings
--------------------------------------------
Moody's withdrew all ratings on Portrait Corp. of America, Inc.
The ratings have been withdrawn because the issuer filed for
protection from creditors under Chapter 11 of the U.S.
Bankruptcy Code on Aug. 30, 2006.

Ratings withdrawn are the following:

   -- US$50 million 14.0% senior 2nd-lien notes (2009) issued by
      PCA, LLC rating of Caa1,

   -- US$165 million 10.875% senior notes (2009) issued by PCA,
      LLC rating of Ca, and

   -- Corporate family rating of Caa2.

Portrait Corp. of America, Inc., headquartered in Charlotte,
North Carolina, operates about 2500 photography studios
principally in U.S., Canadian, and Mexican Wal-Mart stores.
Revenue was about US$326 million for the fiscal year ending
Jan. 2006.


SATELITES MEXICANOS: Hires Galicia y Robles as Special Counsel
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York,
granted authority to Satelites Mexicanos, S.A. de C.V., to
employ, on a final basis, Galicia y Robles, S.C., as its special
counsel for matters pertaining to Mexican corporate law.

Carmen Ochoa Avendano, Esq., the Debtor's general counsel,
relates that Galicia is intimately familiar with the Debtor's
business and is, therefore, able to immediately and
knowledgeably assist Milbank, Tweed, Hadley & McCloy LLP, the
Debtor's primary counsel, in representing the Debtor.

Galicia has represented the Debtor since Feb. 2001 in various
matters pertaining to Mexican law, including those relating to
its restructuring efforts prior to the the Debtor's filing for
chapter 11 protection, including the ancillary proceeding under
Section 304 of the Bankruptcy Code, the Concurso Mercantil
proceeding in Mexico, and the negotiation and execution of the
March 2006 Restructuring Agreement with Servicios Corporativos
Satelitales, S.A. de C.V.; Principia S.A. de C.V.; Loral Skynet
Corp. and Loral SatMex Ltd.; and the ad hoc committees of
holders of the Debtor's Senior Secured Floating Rate Notes due
June 30, 2004, and 10-1/8% Unsecured Senior Notes due
Nov. 1, 2004.

The firm also assisted the Debtor in preparing various documents
relating to the commencement of the Chapter 11 case and the
Chapter 11 Plan of Reorganization.

As special counsel, Galicia is expected to:

    (a) advise the Debtor with respect to its rights, powers and
        duties;

    (b) assist and advise the Debtor in its consultations with
        its creditors;

    (c) assist the Debtor in analyzing the claims of its
        creditors and in negotiating with the creditors;

    (d) assist the Debtor in its analysis of, and negotiations
        with, its creditors or any third party concerning
        matters related to, among other things, the terms of a
        reorganization plan;

    (e) assist and advise the Debtor with respect to its
        communications with its creditors;

    (f) represent the Debtor at all hearings and other
        proceedings;

    (g) assist the Debtor in preparing pleadings and
        applications as may be necessary in furtherance of
        Satmex's interests and objectives;

    (h) draft and negotiate any agreements, documents,
        resolutions, and other instruments necessary to, among
        others, implement the Chapter 11 Plan in Mexico; and

    (i) perform other legal services on Mexican law matters as
        may be required or are deemed to be in the interests of
        the Debtor.

Galicia will bill for its services at the firm's standard hourly
rates:

           Position                         Hourly Rate
           --------                         -----------
           Partners                       US$270 - US$330
           Associates                     US$150 - US$240
           Law Clerks                      US$80 - US$120

Ms. Avendano disclosed that on Aug. 3, 2006, the Debtor provided
Galicia with a US$30,000 advance payment to establish a retainer
to pay for legal services rendered or to be rendered in
connection with the Debtor's Chapter 11 case.  The Retainer is
unapplied.

Ms. Avendano also noted that according to Galicia's books and
records for the year prior to the Debtor's filing for chapter 11
protection, Galicia was paid approximately US$489,500 by the
Debtor for legal services performed and expenses incurred in
contemplation of or in connection with the Debtor's Chapter 11
case, including, among other things, the 304 Proceeding, the
Concurso Proceeding, the negotiation and execution of the
Restructuring Agreement, and the preparation of various
corporate documents relating to the restructuring of the Debtor
as a Mexican corporation.

Rafael Robles Miaja, Esq., at Galicia y Robles, S.C., in Mexico,
assures the Court that his firm does not represent or hold any
interest adverse to the Debtor or to the Debtor's estate with
respect to the matters on which it is being engaged.

Mr. Robles discloses that Galicia currently represents Citibank,
N.A., and its affiliates, and Grupo Carso, S.A., de C.V., and
Telefonos de Mexico, S.A., de C.V., in matters unrelated to the
Debtor's case.  Citibank is the indenture trustee for the Senior
Secured Notes.  Grupo Carso and Telmex have been identified as
"Approved Buyers" pursuant to the Restructuring Agreement in
connection with certain change of control provisions.

                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 protection 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).




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


AES CORP: Regulator's Study on Concession Requests Almost Done
--------------------------------------------------------------
An official of Autoridad Nacional de los Servicios Publicos or
ANSP -- Panama's public service regulator -- told Business News
Americas that the agency's review on AES Corp.'s three
hydroelectric concession requests is almost done.

BNamericas relates that the official said the projects, which
would use water from the Changuinola river in Bocas del Toro,
are:

         -- 158-megawatt Gavilan,
         -- 132-megawatt Cauchero II, and
         -- 126-megawatt Chan-220.

The official told BNamericas that ANSP will award the
concessions soon.  In general terms, once a concession has been
awarded, the developer has a year to finalize project details
and up to four years to construct the project.

A report posted in AES Corp.'s Web site says that the firm
currently runs four hydro plants with 470-megawatt total
installed capacity and one 43-megawatt thermal plant.

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

AES has been in Eastern Europe for nearly ten years, since it
acquired three power plants in Hungary in 1996.  Today, AES has
two distribution companies in Ukraine, which serve 1.2 million
customers and generation plants in the Czech Republic and
Hungary.  AES is also the leading company in biomass conversion
in Hungary, generating 37% of the nation's total renewable
generation in 2004.

                        *     *     *

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

In March, Standard & Poor's Ratings Services raised its
corporate credit rating on diversified energy company The AES
Corp. to 'BB-' from 'B+'.  S&P said the outlook is stable.

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


CHIQUITA BRANDS: Posts Lower Banana Prices
------------------------------------------
Chiquita Brands International Inc. reported two banana price
drops during the first two months of the third quarter due, in
part, to elimination of a quota for Latin American imports,
which increased competition, according to a report by the
Associated Press.

AP relates that in the European Union, Switzerland, Norway and
Iceland, average banana prices of Chiquita Brands decreased 12%
on a US dollar basis and 17% on a local currency basis, due to:

      -- unseasonably warm weather, which lowered demand,
      -- an increase in an import tariff, and
      -- removal of a quota for Latin American banana imports.

According to the report, banana volume in Europe increased 11%
overall; sales of premium Chiquita-label bananas rose 12%; and
volume of second-label fruit remained the same as that of last
year.

Meanwhile, average banana prices in the US and Canada grew 10%
after talks of higher-priced customer contracts and after a
surcharge policy started in the fourth quarter of 2005, AP
notes.  Volume fell 1% due to weather disruptions that have hurt
banana supply since 2005.

AP emphasizes that Chiquita Brand's banana prices in Asia and
the Middle East decreased 11% in July-Aug. 2006, compared with
the same period in 2005.  Meanwhile, volume increased 20% due to
growth outside Japan.

Chiquita's Fresh Express salads volume increased 17% July to
Aug. 2006, from the same period in 2005, due to distribution
gains and new product introductions.  Net revenue per case grew
2%, AP states.

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

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




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


* PERU: Congress Decides to Get Rid of Basic Telephone Charge
-------------------------------------------------------------
The Peruvian congress decided to eradicate the basic monthly fee
telephone firms are charging to consumers, MarketWatch reports.

According to MarketWatch, about 80 members of the congress in
the 120-member unicameral chamber favored the bill, which will
end the basic monthly charge.  The congress then presented the
legislation to Peru's President Alan Garcia to approve or to
suggest revisions.

MarketWatch relates that President Garcia is in favor of the
cancellation of the fee.  However, the president also said that
he supports the legislature's making some changes to the bill it
approved late last week, which was opposed by the business
sector.

President Garcia said in a speech, "I am in agreement with the
law in general, but not with the form, since there are errors
that exist that we can correct."

MarketWatch underscores that the bill mainly affects Telefonica
del Peru SAA -- Peru's largest telecommunications firm and
owned by Spain's Telefonica SA.

The report says that Telefonica SA purchased the government's
telephone system in 1994 for about US$2.0 billion.

"I want you to have telephones, and for this we have to
negotiate with the company or immediately send to congress an
improved proposal that allows us to comply with the objective
without putting in danger the flows of investments that our
nation needs," MarketWatch notes, citing President Garcia in his
speech in a poor area of Lima.

However, business groups warned that changing the service
contract that the government has with Telefonica could
discourage investors, according to MarketWatch.

Jose Miguel Morales, the head of Peru's most important business
group, said on CPN radio, "All we want is that changes are made
respecting the law.  All we ask is that laws are respected."

Congressman Yonhy Lescano, who chairs Congress' consumer affairs
committee, told MarketWatch that Osiptel -- the government
regulatory agency -- should be looking at how it could compel
Telefonica to pay back clients for charging the basic monthly
fee.

Some congressmen tried to force telephone firms to stop charging
the basic monthly fee during the term of former President
Alejandro Toledo but failed, MarketWatch states.

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

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


* PERU: Establishes Committee with China to Boost Bilateral Ties
----------------------------------------------------------------
Peru has established the Peru-China Entrepreneurs Committee to
boost bilateral business, trade and investment ties, Inside
Costa Rica reports.

Ying Hengmin -- the Chinese ambassador to Peru -- told Inside
Costa Rica that the founding of the committee will mark a new
milestone in Chinese history of economic and trade exchanges.

Inside Costa Rica relates that Ambassador Hengmin said that Peru
is one of China's major trading partners and investment targets.

Zhang Wei, the vice president of the China Council for the
Promotion of International Trade, told Inside Costa Rica that
China is making concerted efforts to make favorable conditions
for trade and commerce, especially in fields like service,
agriculture and technology.

Inside Costa Rica underscores that Rene Cornejo, the executive
director of Peru's Private Investment Promotion Agency, was
confident that the trade between China and Peru would increase.

According to the report, the bilateral trade reached US$2
billion in 2005, and recorded about US$1.2 billion in the Jan.-
June 2006 period.

Mr. Cornejo told Inside Costa Rica that Peru will offer
important opportunities for Chinese investment in fields like:

        -- mining,
        -- hydrocarbons,
        -- textiles,
        -- fishing,
        -- transportation infrastructure,
        -- water culture,
        -- logging,
        -- tourism, and
        -- agriculture.

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

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




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


ADELPHIA COMMUNICATIONS: Files Modifications to 5th Amended Plan
----------------------------------------------------------------
With a Disclosure Statement supplement hearing scheduled to
continue today in New York, Adelphia Communications Corp.
filed modifications to its draft Fifth Amended Joint Chapter 11
Plan of Reorganization and the related Supplement to its Fourth
Amended Disclosure Statement with the U.S. Bankruptcy Court for
the Southern District of New York on Sept. 18, 2006.

The modifications reflect settlements with holders of the Fort
Myers and Olympus notes and two of the three administrative
agents to Adelphia's co-borrowing facilities, as well as certain
other changes that were discussed at the Sept. 12 hearing on the
Disclosure Statement supplement.

Adelphia and the Official Committee of Unsecured Creditors
remain co-proponents of the modified plan, which embodies the
framework agreed upon by Adelphia, its Official Committee of
unsecured Creditors, as well as significant individual bond
funds.  In addition, the two administrative agents with which
settlements have been reached will be co-proponents of the
modified plan with respect to the treatment of bank claims under
the credit agreements for which they are agents.

These modifications are incremental to the compromise among
other important creditor groups under which up to US$1.08
billion in value will be transferred from certain creditors of
various Adelphia subsidiaries to certain unsecured senior and
trade creditors of the Adelphia Communications parent Corp..

The Court commenced the hearing on the Disclosure Statement on
Sept. 12, 2006.  Adelphia and the Official Committee of
Unsecured Creditors are seeking an order of the Bankruptcy Court
approving the Supplement to the Disclosure Statement as
containing "adequate information" to enable Adelphia's Chapter
11 bankruptcy creditors and equity holders to make an informed
judgment about the Fifth Amended Plan.

Adelphia's proposal and prosecution of confirmation of the
modified Fifth Amended Plan still is subject in all respects to
entry of such an order, as well as Bankruptcy Court
authorization for Adelphia to propose and seek votes in respect
of the modified Fifth Amended Plan.  Absent entry of such an
order and authorization, Adelphia's filing of the modified Fifth
Amended Plan and related Supplement to the Disclosure Statement
shall not be deemed to be a proposal by the Debtors with respect
to the proposed treatment of any claims against or equity
interests in Adelphia or its subsidiaries.  If this order is
entered and such authorization is granted, Adelphia, the
Official Committee of Unsecured Creditors and the relevant bank
administrative agents will begin the process of soliciting
creditors and equity holders to vote on the modified Fifth
Amended Plan.

A full-text copy of the redlined version of the Fifth Amended
Plan of Reorganization is available for free at:

              http://ResearchArchives.com/t/s?11e4

A full-text copy of the redlined version of the Fourth Amended
Disclosure Statement is available for free at:

              http://ResearchArchives.com/t/s?11e5

               About Adelphia Communications Corp.

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

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


DELTA MUTUAL: June 30 Balance Sheet Upside-Down by US$1.3 Mil.
--------------------------------------------------------------
Delta Mutual, Inc.'s balance sheet at June 30, 2006, showed
US$1,329,134 in total assets, US$2,040,031 in total liabilities
and minority interest in consolidated subsidiaries of
US$422,886, resulting in a US$1,133,783 stockholders'
deficiency.

The Company reported a US$642,082 net loss on US$99,982 of
revenues for the quarter ended June 30, 2006, compared to a
US$751,881 net loss on zero revenues for the same period in the
prior year.

The net loss increased from approximately US$1,287,000 for the
six months ended June 30, 2005 to approximately US$1,445,000 for
the six months ended June 30, 2006.

During the six months ended June 30, 2006, Delta Mutual had
revenue of US$260,704 but incurred a net loss of US$1,444,783
because our revenue was not sufficient to offset operating
expenses.  The loss in the first six months was primarily
attributable to general and administrative expenses of
approximately US$1,364,000, including consulting and
professional fees of approximately US$411,000, non-cash
compensation of US$168,400 and compensatory element of stock
options of US$447,000.  In addition, the Company had accretion
of convertible debt of approximately US$147,000, and an increase
in cost of sales of about US$79,000.

At June 30, 2006, the Company had a working capital deficit of
US$1,315,218 compared with US$1,099,555 at June 30, 2005.  The
increase in working capital deficit is a result of the net loss
incurred during the six months ended June 30, 2006, and
increases in accounts payable, accrued expenses, accretion of
convertible debt and increases in notes payable; partially
offset by increases in accounts receivable and prepaid expenses.

A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?11c1

                    Going Concern Doubt

Wiener, Goodman & Company, PC, expressed substantial doubt about
Delta Mutual's ability to continue as a going concern after
auditing the company's financial statements for the year ended
Dec. 31, 2005.  The auditing firm pointed to the Company's
deficiency in net assets at Dec. 31, 2005, losses from
operations since inception and needs to obtain additional
financing.

                     About Delta Mutual

Delta Mutual, Inc. -- http://www.deltamutual.com/-- specializes
in energy recovery and construction services through
environmentally friendly technologies that recover energy
sources from soil, water and other waste streams.  Delta Mutual
and its subsidiaries provide environmental and construction
technologies and services to certain geographic reporting
segments in the Far East, the Middle East, the United States and
Puerto Rico.


MICRON TECHNOLOGY: Toshiba Settles Suit with US$288 Mil. Payment
----------------------------------------------------------------
Micron Technology, Inc., has entered into agreements with
Toshiba Corp. for the purchase of certain of Micron's
semiconductor technology patents and license patents previously
owned by Lexar Media, Inc. in exchange for payments totaling
US$288 million.

The agreements settle all outstanding NAND flash memory-related
litigation between Toshiba Corp., its subsidiaries and Lexar
Media, Inc., which Micron acquired in June.  As a result of the
license and purchase agreements, the litigation pending between
Toshiba and Lexar in the Northern District of California U.S.
District Court, the International Trade Commission and
California Court of Appeals will be dismissed.

"We appreciate that Micron approached this issue in a positive
spirit that allowed the parties to work together to bring all
outstanding litigation and claims to a full and final
resolution," said Masashi Muromachi, corporate executive vice
president of Toshiba Corp. and president and CEO of Toshiba's
Semiconductor Company.  "Going forward, we will continue to
contribute to the growth and development of the NAND flash
industry."

"We have enjoyed a strong relationship with Toshiba for a number
of years, have the highest respect for Toshiba as an innovator
in flash technology and see no merit in continuing to pursue
this litigation," said Steve Appleton, Micron chairman, CEO and
president.

                        About Toshiba

Toshiba -- http://www.toshiba.co.jp/-- is a diversified
manufacturer and marketer of advanced electronic and electrical
products spanning information and communications equipment and
systems, digital consumer products, electronic devices and
components, power systems, industrial and social infrastructure
systems, and home appliances.  Toshiba has 172,000 employees
worldwide and annual sales of over US$54 billion.

                       About Micron

Micron Technology, Inc. (NYSE:MU) -- http://www.micron.com/
-- is a worldwide provider of semiconductor solutions.  Through
its worldwide operations, Micron manufactures and markets DRAMs,
NAND flash memory, CMOS image sensors, other semiconductor
components, and memory modules for use in leading-edge
computing, consumer, networking, and mobile products.  One of
its manufacturing facilities is located in Puerto Rico

                        *    *    *

On Dec. 8, 2005, Moody's Investors Service revised its ratings
outlook on Micron Technology to stable (Corporate Family Rating
at Ba3).  Moody's affirmed the Company's Ba3 Senior Implied
rating, Ba3 Issuer rating, (P) Ba3 Senior unsecured shelf
registration rating, (P) B2 Subordinated shelf registration
rating, B2 rating on US$632 million 2.5% convertible
subordinated notes due Feb. 2010 and B2 rating on US$210 million
6.5%, junior subordinated notes.


MUSICLAND HOLDING: Files First Amended Joint Plan of Liquidation
----------------------------------------------------------------
Musicland Holding Corp. and its 14 debtor-affiliates delivered
their First Amended Joint Plan of Liquidation and accompanying
Disclosure Statement to the U.S. Bankruptcy Court for the
Southern District of New York on Sept. 14, 2006.

The Debtors intend to file a Plan Supplement 15 days before the
Oct. 12, 2006, Disclosure Statement Hearing.  The Supplement
will consist of, among others:

   (a) the Administrative Budget,
   (b) the Post-Effective Date Agreement,
   (c) List of Directors and Officers, and
   (d) the Schedule of Avoidance Actions.

Aside from substantive consolidation, liquidation of the
estates, and appointment of a Responsible Person, the First
Amended Plan also contemplates the formation of a Plan Committee
on or before the Effective Date.

Craig Wassenaar, Musicland's chief financial officer, relates
that the Plan Committee will be formed by (a) the Official
Committee of Unsecured Creditors designating two Persons and (b)
the Informal Committee of Secured Trade Vendors designating two
Persons to serve on the Plan Committee.

"Any deadlock in a vote by the members of the Plan Committee may
be broken by a vote by the Responsible Person; provided,
however, that the Responsible Person will not be empowered to
cast a tie-breaking vote on any issue involving the addition
after the Effective Date of any claims to the Schedule of
Avoidance Actions," Mr. Wassenaar says.

The Plan Committee will exercise its obligations as provided in
the Post-Effective Date Agreement, which includes the monitoring
and oversight of the Responsible Person and all liquidation and
distribution activities.  The members of the Plan Committee will
not be paid for their services except for reimbursement of
actual and reasonable expenses incurred by those members.

                  Claims & Distributions

On the Effective Date, the Debtors will establish:

   (i) a Senior Claims Reserve with sufficient fund to pay all
       Allowed and Disputed Senior Claims to the extent those
       Claims are not paid by the Debtors on the Effective Date;
       and

  (ii) an Administrative Fund with sufficient funds to pay the
       projected costs and expenses of liquidating and
       administering the Estates as set forth in the
       Administrative Budget.

After the Effective Date, the Responsible Person will make
distributions to the holders of Allowed Senior Claims, which
become Allowed after the Effective Date from the Senior Claims
Reserve.

On the Effective Date, the Secured Trade Creditors will provide,
out of Secured Creditor Assets, these sums to be used to pay the
fees and expenses of the professionals to the Responsible
Person:

   (a) US$175,000 to be used to investigate and make a
       recommendation whether or not to pursue any potential
       Other Actions;

   (b) US$250,000, plus any unused funds remaining in the
       Investigation Fund after completion of the investigation,
       to be used to Prosecute any Avoidance Actions; and

   (c) US$_____ plus any unused funds remaining in the (i)
       Investigation Fund, or (ii) Avoidance Fund after
       completion of the Prosecution of the Avoidance Actions,
       to be used to Prosecute any Other Actions.

The Responsible Person, in consultation with the Plan Committee
and in accordance with the Post-Effective Date Agreement, will
have sole and absolute authority to direct its selected counsel
and other advisors to prosecute (a) the Avoidance Actions to the
extent those Avoidance Actions are included on the Schedule of
Avoidance Actions, and (b) the Other Actions.

               Secured Trade Creditors Release

On the Effective Date, each of the Debtors, in their individual
capacities and as debtors-in-possession for and on behalf of
their Estates, beneficiaries, successors and assigns will
release and discharge and be deemed to have forever released and
discharged each member of the Secured Trade Committee, and their
employees, agents, attorneys, directors, officers and financial
advisors, from any and all Unsecured Transferred Actions that
arose or could have arisen prior to confirmation date.

                       Cash Position

The Debtors' total cash on hand as of Aug. 31, 2006, was
approximately US$20,000,000, with additional amounts expected to
be received by the Debtors for (i) payment dues from Trans World
Entertainment Corp. of approximately US$7,500,000 under the
Purchase Agreement and (ii) anticipated miscellaneous
collections of US$2,800,000.  In addition, approximately
US$4,500,000 was held by Wachovia Bank, National Association, as
of Aug. 31, 2006, as a reserve for certain obligations under the
release agreement.

The Debtors project that the net Secured Creditor Assets to be
distributed by the Debtors to the Secured Trade Creditors will
be in the range of US$17,100,000 to US$33,800,000, in addition
to the US$25,200,000 that was distributed on Aug. 23, 2006.
This projection assumes that Administrative Expense Claims,
Wachovia Obligations, Priority Tax Claims and Other Priority
Claims for which reserves must be established will be in the
range of US$3,200,000 to US$5,800,000.  These ranges are subject
to final claims reconciliation and the filing of claims under
future bar dates.

The Debtors also project that operating expenses through the
wind-down and liquidation of the Estates period will aggregate
approximately US$1,600,000, disbursements to professionals will
total approximately US$3,700,000.

The Debtors believe that the Joint Venture comprised of Trans
World Entertainment Corp. and Hilco and Gordon Brothers
Retail Partners, LLC, owes approximately US$11,600,000 to them
under the Purchase Agreement with respect to the inventory
adjustment provisions.  Trans World, however, asserts that only
US$7,500,000 is due and owing under those provisions.

                     Best Interests Test

According to Mr. Wassenaar, the Debtors will demonstrate at the
Confirmation Hearing that the distributions creditors will
receive under the First Amended Plan are superior to what
creditors would get in the event of a Chapter 7 liquidation.
Thus, the Debtors believe that the Plan meets the requirements
of the Best Interest Test under the Bankruptcy Code.

To determine the value that a holder of a Claim or Interest in
an impaired Class would receive if the Debtors were liquidated
under Chapter 7, the Bankruptcy Court must determine the
aggregate dollar amount that would be generated from the
liquidation of the Debtors' assets if the Debtors' Chapter 11
Cases were converted to a chapter 7 liquidation case and the
Debtors' assets were liquidated by a Chapter 7 trustee.

Mr. Wassenaar says the Liquidation Value would consist of the
net proceeds from the disposition of the Debtors' assets,
augmented by cash held by the Debtors and reduced by certain
increased costs and Claims that arise in a Chapter 7 liquidation
case that do not arise in a Chapter 11 reorganization case.

The Liquidation Value available for satisfaction of Claims and
Interests in the Debtors would be reduced by:

   (a) the costs, fees and expenses of the liquidation under
       Chapter 7, which would include disposition expenses and
       the compensation of a trustee and its counsel and other
       professionals retained; and

   (b) the fees of the Chapter 7 trustee.

Mr. Wassenaar adds that the liquidation itself would trigger
certain Claims, and would accelerate other priority payments,
which would otherwise be paid in the ordinary course.

"The Debtors are liquidating and therefore are not seeking to
require their creditors to accept non-cash consideration so that
the estate could pursue going concern value.  Accordingly, the
only question is whether the creditors will have recovered more
through the negotiated sale of the Debtors' assets to the Joint
Venture and the Plan than through an asset liquidation by the
Debtors than by a newly appointed Chapter 7 trustee," Mr.
Wassenaar says.

The Debtors say they expect to realize a greater return than
would a Chapter 7 trustee on the wind-down of the Estates, given
their familiarity with the assets and their ability to limit the
wind-down costs.

Mr. Wassenaar points out that the Debtors have already reduced
their hard assets to cash through auction or private sales
approved by the Court.  "Therefore, the Debtors have already
established systems and protocols for the efficient disposition
of the assets of the Estates and are in the process of
liquidating their remaining assets."

"Converting the Chapter 11 Cases to a Chapter 7 liquidation
would result in a waste of the Debtors' resources already
expended in connection with the wind-down and would delay
converting the remaining assets to cash," Mr. Wassenaar adds.

A full-text copy of Musicland's First Amended Joint Plan of
Liquidation is available for free at:

               http://researcharchives.com/t/s?11ce

A full-text copy of the Disclosure Statement explaining
Musicland's First Amended Plan is available for free at:

               http://researcharchives.com/t/s?11cf

                  About Musicland Holding

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products in the United States, Puerto Rico and the Virgin
Islands.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 18; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


MUSICLAND HOLDING: Treatment of Claims Under Liquidation Plan
-------------------------------------------------------------
Under their First Amended Joint Plan of Liquidation, Musicland
Holding Corp. and its debtor-affiliates disclose the expected
allowed amounts of some classes:

Class   Description          Treatment
-----   -----------          ---------
n/a    Administrative       Allowed Claims will be paid in full
        Expense Claims       in cash.

n/a    Wachovia             Allowed Claims will be paid in full
        Obligations          in cash.

                             The Debtors anticipate that unpaid
                             Allowed Administrative Expense
                             Claims and Wachovia Obligations on
                             the Effective Date will be in a
                             range of US$500,000 to
                             US$1,000,000.

n/a    Priority Tax         Allowed Claims will be paid in full
        Claims               in cash, over time in equal cash
                             installment payments on a quarterly
                             basis with interest during a period
                             not to exceed five years after the
                             Petition Date.  The interest rate
                             will in no event be greater than 7%
                             per annum.  The Debtors estimate
                             that the Allowed Priority Tax
                             Claims will aggregate approximately
                             US$2,700,000 to US$4,800,000.

  1     Other Priority       Allowed Claims will be paid in full
        Claims               in cash.  The Debtors estimate that
                             the actual amount of valid Other
                             Priority Claims is approximately
                             US$0 to US$500,000 in the
                             aggregate.

  2     Other Secured        Allowed Claims will be paid in full
        Claims               in cash.  The Debtors estimate that
                             Allowed Other Secured Claims will
                             be in a range of US$0 to
                             US$300,000.

  3     Secured Trade        Allowed Claims will receive (i) a
                             Pro Rata Share of Secured Creditor
                             Assets and net proceeds from
                             Unsecured Transferred Actions, and
                             (ii) the Secured Trade Creditor
                             Release.  The Debtors estimate that
                             the Allowed Secured Trade Claims
                             will aggregate approximately
                             US$170,100,000.

  4     General Unsecured    Allowed Claims will receive a Pro
        Claims               Rata Share of the net proceeds of
                             Unsecured Transferred Actions.  The
                             Debtors estimate that the Allowed
                             General Unsecured Claims will
                             aggregate approximately US$__
                             million.

  5     Interests and        No distribution.
        Interest-Related     Holders of Interests and Interest
        Claims               Related Claims are deemed to have
                             rejected the Plan.

Classes 3 and 4 are impaired, and holders of Secured Trade
Claims and General Unsecured Claims are entitled to vote to
accept or reject the Plan.

                  About Musicland Holding

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products in the United States, Puerto Rico and the Virgin
Islands.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 18; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)




===============
S U R I N A M E
===============


DIGICEL LTD: Gets Telecom License in Suriname
---------------------------------------------
Digicel Ltd. has won a license to offer telecommunication
license in Suriname, Business Latin America reports.

According to the report, the new license will extend Digicel's
coverage to 22 markets across the region.

Business Latin relates the Digicel launched operations in French
Guiana in 2006.

The report says that Digicel raised about US$150 million in July
through a bond offering to aid the rollout of new networks in
Trinidad & Tobago and Haiti.

Digicel also won a license to operate in Guyana, Business Latin
states.

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

                        *    *    *

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

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




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


BRITISH WEST: Closure Worries Tobago Express Shareholders
---------------------------------------------------------
The imminent closure of British West Indies Airlines aka BWIA
has worried shareholders of Tobago Express, in which the airline
has a 49% stake, Newsday reports.

According to Newsday, the shareholders are very worried over
debts the BWIA owed Tobago Express for several services
rendered.

A shareholder, who has 14.9% shares in Tobago Express and also
has shares in BWIA, told Newsday, "BWIA provides certain
services to Tobago Express, for which they are well paid.  But
BWIA owes Tobago Express millions for services rendered. BWIA
cannot go under without compensation to the shareholders of
Tobago Express."

The shareholder explained to Newsday that Tobago Express and
BWIA have debts to each other.  However, the debt of BWIA is
millions of dollars more than that of Tobago Express.

Meanwhile, a top official of BWIA claimed that it is Tobago
Express that owes money to BWIA, Newsday relates.

Newsday underscores that the Tobago Express shareholder asked
what would happen to shares in BWIA as well as the latter's
shares in Tobago Express after the BWIA shutdown.

The BWIA official told Newsday that the company will still
decide what will be done about the airlines' shareholders and
assured that they will be informed in the next few weeks.  The
official also said that BWIA is yet to determine a course of
action for the Tobago Express issue later in the year.

BWIA is yet focusing on operations -- which have time limits
placed on them -- at the moment, Newsday states, citing the
airline official.

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

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

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


BRITISH WEST: New Airline Worries People's National Movement
------------------------------------------------------------
John Donaldson -- the vice chairperson of People's National
Movement or PNM, the ruling political party in Trinidad & Tobago
-- told the press that its members questioned the viability and
efficiency of Caribbean Airlines, the new airline that will take
the place of British West Indies Airways.

PNM members were worried that frequent Caribbean travelers might
be faced with problems when traveling for business or holiday
throughout the Caribbean, the Trinidad & Tobago Express states,
citing Mr. Donaldson.

The Express relates that Mr. Donaldson said that due to the
concerns, Prime Minister and PNM leader Patrick Manning
delivered a statement to the council on Caribbean Airlines,
telling the party members that the company was designed to be an
airline of excellence and that the facility was needed for an
integrated Caribbean.

Caribbean Airlines would not just be an airline decision but
also a business decision, that governments would have a vital
part for it to be viable and sustainable, Mr. Donaldson told The
Express.

The Express says that Caribbean Airlines will be located in
Piarco and will need local and international regulatory
approval.

According to the report, Caribbean Airlines will provide
regional air transport within the Caribbean and between the
Caribbean and major international cities.

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

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

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




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


* URUGUAY: World Bank Arm Expects Pulp Mills Impact Study Result
----------------------------------------------------------------
Lars Thunell -- the executive vice president of the
International Finance Corp. aka IFC, the private sector arm of
the World Bank -- told Reuters that the Corp. expects the
results of the environmental impact study on two pulp mills in
Uruguay by the end of September or October.

Reuters relates that Mr. Thunell said in Singapore during the
World Bank and International Monetary Fund's yearly meetings,
"When the study is complete sometime in September or October,
then there will be a study period of 30 days and if the
companies have met the required (environmental) standards it
will be brought to the IFC board."

Mr. Thunell told Reuters that if Finland's Metsa-Botnia and
Spain's Ence plants meet World Bank standards, the IFC would
decide whether to proceed with its US$400 million share in the
projects.

According to Reuters, the construction of the mills is the sole
biggest investment in Uruguay.  However, Argentina has protested
to the project due to the environmental damage the mills could
cause.  The two nations share the river where the plants are
being built.

Reuters underscores that Uruguay signed an environmental treaty
with Argentina in 1975.

"I think it's very unfortunate that you've had this disagreement
between the governments and we have encouraged them to have
discussions," Mr. Thunell told Reuters.

                        *    *    *

Fitch Ratings assigned these ratings on Uruguay:

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




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


AMERICAN COMMERCIAL: Inks Pact to Sell Venezuelan Operations
------------------------------------------------------------
American Commercial Lines Inc. has entered into an agreement to
sell its interests in ACBL Venezuela, LTD and GMS Venezuela,
C.A.  The agreement, which is subject to certain closing
conditions, will result in the divestiture of the Company's
barge, towboat and related assets that are used to provide
barging services on the Orinoco River in Venezuela.  The sales
price is approximately US$32,000,000 including anticipated post-
closing adjustments.  The ownership interest is being sold to a
consortium of Venezuelan businessmen.  The transaction is
expected to close on Oct. 31, 2006.

Commenting on the agreement, Richard A. Mitchell, Jr., Senior
Vice President, Corporate Strategy stated, "We are very pleased
to have taken this important step in executing our business
strategy. This transaction divests us of substantially all of
our remaining international assets that contributed
approximately US$6.6 million of EBITDA in 2005.  The net
proceeds from this transaction will be used to further reduce
our debt."

President and CEO, Mark R. Holden provided, "This transaction
makes sense for the Company.  While our Venezuelan operations
have served us well in the past, they were no longer core to our
strategy going forward.  This transaction will allow the ACL
management team to focus its efforts on opportunities for
domestic growth.  We wish to express our sincere thanks and
gratitude to our Venezuelan personnel for their years of
dedicated service."

Headquartered in Jeffersonville, Indiana, American Commercial
Lines Inc. -- http://www.aclines.com/-- is an integrated marine
transportation and service company operating in the United
States Jones Act trades, with revenues of more than US$740
million and approximately 2,600 employees as of Dec. 31, 2005.

The company filed for chapter 11 protection on Jan. 31, 2003
(Bankr. S.D. Ind. Case No. 03-90305).  Suzette E. Bewley,
Esq., at Baker & Daniels represented the company in its
successful restructuring efforts.  The Bankruptcy Court approved
the company's Plan of Reorganization on Dec. 30, 2004, which
allowed the company to emerge from bankruptcy on Jan. 11, 2005.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 11, 2006,
Moody's Investors Service raised American Commercial Lines LLC's
Corporate Family Rating to B1 from B2, and affirmed the B3
senior unsecured and the SGL-2 Speculative Grade Liquidity
ratings.  The rating outlook is stable.


CITGO PETROLEUM: Discontinues Gasoline Hydrotreater Operations
--------------------------------------------------------------
Citgo Petroleum Corp., Venezuelan state oil firm Petroleos de
Veenzuela's refining branch in the United States, told the Texas
Environmental Protection Agency that it has shut down its
165,000 barrels per day refinery in Corpus Christi, Texas, El
Universal reports.

El Universal relates that Citgo said that there was high
pressure in the reactor.

According to Reuters, the unit was not fully operational.

Citgo told El Universal the unit was shut down to determine
causes and correct high pressure in the reactor

"The new gasoline hydrotreater unit has not been fed," El
Universal states, citing Citgo.

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

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

                        *    *    *

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


PEABODY ENERGY: Completes New US$2.75 Bln Senior Credit Facility
----------------------------------------------------------------
Peabody Energy completed its financing of a new senior credit
facility on an unsecured basis.  The facility includes US$1.8
billion in revolving credit and a US$950 million Term Loan A.

"Peabody is replacing its existing secured credit facility with
a substantially larger unsecured facility, to provide the
company with greater financial flexibility to pursue its growth
strategies," Richard A. Navarre, chief financial officer and
executive vice president of Business Development, said.  "This
new facility reflects our financial strength and the confidence
of the credit markets in Peabody."

The new facility will be used in part to fund the Company's
planned acquisition of Excel Coal, which is on track for
completion in Oct..  Bank of America and Citigroup served as
lead arrangers for the new credit facility.

Headquartered in St. Louis, Missouri, Peabody Energy Corp.,
(NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's
largest private-sector coal company, with 2005 sales of 240
million tons of coal and U.S.US$4.6 billion in revenues.  Its
coal products fuel 10% of all U.S. and 3% of worldwide
electricity.  The company has coal operations in Venezuela.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 15, 2006
Standard & Poor's Rating Services assigned its 'BB' rating to
Peabody Energy Corp.'s proposed US$2.75 billion of senior
unsecured credit facilities, consisting of a US$1.8 billion
revolving credit facility and US$950 million Term Loan A.  The
rating outlook is stable.

As reported in the Troubled Company Reporter on Sept. 14, 2006
Moody's Investors Service assigned a Ba1 senior unsecured rating
to Peabody Energy Corp.'s US$1.8 billion Revolving Credit
Facility and US$950 million Term Loan A.  At the same time,
Moody's raised the senior unsecured rating on the company's
existing senior unsecured notes to Ba1 from Ba2.  Moody's also
affirmed Peabody's Ba1 corporate family rating and its SGL-1
Speculative Grade Liquidity rating.  The rating outlook remains
negative.


PETROLEOS DE VENEZUELA: Carries Out Major Maintenance in Amuay
--------------------------------------------------------------
Petroleos de Venezuela will carry out investments of VEB170
billion in the scheduled shutdown for maintenance and refitting
of the 10 units that compose the Catalytic Disintegration
Complex (DCAY), Alkylation (ALAY) and plants connected to the
Amuay Refinery of the Paraguana Refining Centre.

Programming of the shutdown began on Sept. 16 with works in the
Catalytic Disintegration Unit for 6 weeks; Alkylation, 9 weeks;
light crudes, 4 weeks; and in the Hydro-Desulphurization plant
for five weeks.

Maintenance work in the DCAY-ALAY complex and plants connected
to the Amuay Refinery will generate 6,000 jobs directly
distributed between welders, construction workers, riggers,
instrument workers and other craftwork, through 25 contracts
that will be implemented with support from cooperatives, small
and medium-sized companies and contractors of the area.

Personnel working in maintenance in the CRP is part of the
Employment Democratization System (Sistema de Democratizacion
del Empleo -- Sisdem), and received training in areas such as
Industrial Security, Safety, Environment and Health, in addition
to having been certified in different craftworks.

      Repairs of the DCAY/ALAY Complex and Connected Plants

The purpose of the schedule shut-down is to carry out general
repairs in the DCAY/ complex and connected plants, and it
includes replacement and maintenance of equipment in the
Catalytic Disintegration Unit (DCAY), Alkilation (ALAY), Tame
(TMAY), Light Crudes (GLAY), Hydro-Sulphurator-4 (HDAY-4), among
others.  In addition, conditions of Flare 5 will be restored and
general cleanup of 7 kilometers of lines, and replacement of two
thousand meters of lines for transport of supplies and products
will be performed.

The purpose of the scheduled works in these units is to restore
their design mechanical conditions in order to guarantee, in a
trustworthy manner, their operation until the next run period.

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

                        *    *    *

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


PETROLEOS DE VENEZUELA: Storing Petrocaribe Fuels at Amerada
------------------------------------------------------------
Petroleos de Venezuela aka PDVSA, the state oil firm of
Venezuela, said in a statement that it has reached a deal with
the St Lucia subsidiary of US oil company Amerada Hess to use
the latter's storage complex for Petrocaribe fuels.

Business News Americas relates that Alejandro Granado, the PDVSA
deputy president for refining, signed the accord with John Hess,
the head of Amerada Hess.

According to the report, lack of storage space and
transportation are obstacles to the Petrocaribe initiative,
which grants Caribbean nations access to Venezuelan fuel.

Hess has a sea terminal and a yard with 14 tanks in St Lucia.
The unit can store 9 million barrels of crude and refinery
products.

"With this agreement, we are advancing the Petrocaribe
initiative and strengthening energy integration," Mr. Granado
told BNamericas.

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

                        *    *    *

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


* VENEZUELA: Executes 34 Deals & One Joint Declaration with Iran
----------------------------------------------------------------
A total of 34 cooperation agreements and a joint Declaration
were executed by the Presidents of the Republic of Iran, Mahmoud
Ahmadineyad, and of the Bolivarian Republic of Venezuela, Hugo
Chavez, in the framework of the official visit by the highest
Persian authority to Venezuela, in which a bilateral alliance
concerning hydrocarbons was sealed through several subscribed
documents.

President Chavez emphasized his certainty that, "Venezuela will
be an energy power in this continent; in sha' a All h, with the
help of God, your help (referring to the Iranian delegation) and
the work of all."

The ceremony to execute the agreements, performed in the Theatre
of Venezuela's Military Academy, was attended by the members of
the executive cabinet, including Minister of Energy and
Petroleum and president of PDVSA, Rafael Ramirez, who executed
agreements in the name of the state oil company with his Iranian
counterpart to develop gas and petroleum engineering,
procurement and construction projects throughout the entire
chain of added value and refining of these items. Similarly, a
document was executed for the incorporation of an engineering
joint venture company for the offshore area, which will allow
investing in projects both in Venezuela and overseas.

Another important agreement regarding hydrocarbons referred to
the inCorp. of a joint venture company between the subsidiary of
PDVSA Corporacion Venezolana del Petroleo or CVP and Petropars,
for the quantification and certification of reserves in the
Ayacucho 1 and 2 Blocks of the Orinoco Oil Belt, as well as for
the exploration and production of Block 7 of this important oil
reservoir.

State company Pequiven executed an agreement with its Iranian
counterpart for the incorporation of a joint venture company
that will work with oil by-products.  As part of this bilateral
pact, a Petrochemical Training Centre was inaugurated in Moron,
Carabobo state.

The Strategic Heavy Fund was also created, with each country
making an initial contribution of US$1 billion, for a total of
US$2 billion, which will promote:

   -- joint projects related to the construction and
      expansion of shipyards, design and construction of oil
      tankers;

   -- implementation of joint oil businesses;

   -- student exchange;

   -- support to agro industrial projects;

   -- the transformation of the National Institute for
      Educational Cooperation -- Instituto Nacional de
      Cooperacion Educativa or INCE -- in a research and
      technical development center;

   -- construction of new aircraft in Venezuela,

   -- manufacturing of medicines, surgical instruments, medical
      equipment, radio and television transmitters, plastics,
      bicycles; and

   -- reconstruction of slums, micro cities and satellite
      cities.

                        *    *    *

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


* WB Says Growth in China & India Is Positive for LatAm Region
--------------------------------------------------------------
China and India's rapid growth is positive for Latin America and
the Caribbean or LAC as a whole, despite the adverse effects the
Asian competition is having in some countries and industries,
says a new World Bank report.

According to Latin America and the Caribbean's Response to the
Growth of China and India: Overview of Research Findings and
Policy Implications, concerns that both countries are displacing
Latin America in world markets for goods, services, foreign
direct investment, and innovation are misleading.

"The robust growth of China and India is not a zero sum game for
Latin America and the Caribbean," said Guillermo Perry, World
Bank Chief Economist for the Latin America and the Caribbean and
one the authors of the report.  "The overall regional effects of
the larger presence of the two Asian economies have been
positive, but our countries have not taken full advantage of the
rapidly growing markets in China and India, nor of the global
opportunities generated by cheap intermediate inputs and new
production networks."

Today's China and India's share of world exports is 50% larger
than that of LAC, whereas in 1990 the opposite was true. But
contrary to what many believe, LAC's exports of services to the
United States -- its main market -- are seven times larger than
China's and India's combined.

The study, prepared by World Bank economists Daniel Lederman,
Marcelo Olarreaga, and Guillermo Perry, includes as positive
effects the higher commodity prices, driven by increased
purchases from China and India, which benefit exporters of
products like copper and soy in South America.

Other benefits range from growing opportunities for LAC
exporters to Asian markets, to new production possibilities
associated with cheaper intermediate inputs from China and
India, growing investment and financial flows -- China has
become a large net exporter of capital contributing to low
global interest rates -- and innovation spillovers.

Meanwhile, the report says that the overall gains have been
accompanied by some pain.  Some industries, firms and sub-
regions are being negatively affected by the rapid growth of
China and India, particularly in Mexico and Central America.
Some of these industries include industrial and electrical
machinery, electronics, transport equipment, and textiles.

Nevertheless, the study stresses the diversity in the region.
Some countries are responding to the Asian challenge by changing
their specialization pattern in favor of natural resource and
scientific-knowledge-intensive industries.  In the case of the
apparel industry, Costa Rica and the Dominican Republic are
shifting to higher quality, higher price textiles and clothing,
while others, such as Haiti and Nicaragua, are moving towards
lower-wage, unskilled-labor intensive products.

In the case of Mexico, the report indicates this is the only
Latin American country whose comparative advantage has been
moving in the same direction as the two Asian economies and,
therefore, has been one of the most affected by the emergence of
China and India.

"Instead of responding with protectionist policies, the region
should adopt offensive strategies to take advantage of the
overall positive effects of high Chinese and Indian growth, to
increase their share in world markets, and strengthen the
development agenda," said Mr. Perry. "Countries need to focus on
better innovation and education policies to help firms and
workers increase their competitiveness and acquire the necessary
skills to move towards higher quality and scientific-knowledge-
intensive products."

In addition to education and innovation, the report says that
governments in LAC need to support policies that facilitate
rural development and natural resource-based industries to help
the economies respond well to higher demand and prices for
commodities.  The study also recommends the strengthening of
export and investment promotion, in coordination with the
business sector, in the two Asian markets, and helping LAC firms
to better integrate into global production chains.


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
                                Total
                                Shareholders  Total
                                Equity        Assets
Company                 Ticker  (US$MM)        (US$MM)
-------                 ------  ------------  -------
Alpargatas SAIC          ALPA     (262.27)     646.43
Kuala                    ARTE3     (33.57)      11.86
Kuala-Pref               ARTE4     (33.57)      11.86
Blount International     BLT         (123)     465
Bombril                  BOBR3    (554.69)     488.38
Bombril-Pref             BOBR4    (554.69)     488.38
CableVision System       CVC       (2,468)  12,832
Centennial Comm          CYCL      (1,062)   1,436
CIC                      CIC    (1,883.69)  22,312.12
Choice Hotels            CHH         (118)     280
Telefonica Holding       CITI   (1,481.31)     307.89
Telefonica Holding       CITI5  (1,481.31)     307.89
Domino's Pizza           DPZ         (609)     395
Foster Wheeler           FWLT         (38)   2,224
IMPSAT Fiber Networks    IMPTQ     (17.16)     535.01
Paranapanema SA          PMAM3    (214.08)   2,847.86
Paranapanema-PREF        PMAM4    (214.08)   2,847.86
TEKA                     TEKA3    (180.22)     557.47
TEKA-PREF                TEKA4    (180.22)     557.47



                         ***********


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

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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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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-
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           * * * End of Transmission * * *