TCRLA_Public/060922.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Friday, September 22, 2006, Vol. 7, Issue 189

                          Headlines

A R G E N T I N A

BACS I: Fitch Arg Puts C Rating on US$8.7 Series 2001-1 Certs.
CRUZ DORADO: Seeks for Court Approval to Reorganize Business
FIDEICOMISO FINANCIERO: Moody's Rates Debt Securites at B1
PROGAL QUIMICA: Deadline for Verification of Claims Is on Nov. 6
PROYECTO COMERCIAL: Claims Verification Deadline Is on Nov. 13

SEGURIDAD ENTRE: Asks for Court Approval to Restructure Debts
ST. DENIS: Verification of Proofs of Claim Is Until Sept. 25
SURISER SA: Deadline for Verification of Claims Is on Nov. 13

B A H A M A S

WINN-DIXIE: Wants Stipulation with Anderson News Approved
WINN-DIXIE: Wants to Sell 2 Store Leases to Fine Foods for US$1M

B A R B A D O S

SECUNDA INT'L: S&P Maintains Crediwatch Positive on B- Ratings

B E R M U D A

ALEA GROUP: Reports Interim Results for Quarter Ended June 30
REFCO INC: Has Until Dec. 12 to Remove State Court Actions
SEFTON PARK: Court Releases Liquidator from Case
TEXACO TRUST: Creditors Must File Proofs of Claim by Sept. 29

B O L I V I A

PETROLEO BRASILEIRO: Eyes Higher Volumes & Longer Supply Pact

* BOLIVIA: IMF Says Nationalization Wards Off Private Investment
* BOLIVIA: New Energy Minister Talks Tough on Nationalization

B R A Z I L

BANCO BRADESCO: Writing Off BRL2.1 Billion in Goodwill Payments
BANCO DO BRASIL: Will Disclose Five Financial Services Accords
BANCO NACIONAL: Approves US$112.2-Mil. Financing to Aker Promar
BANCO NACIONAL: Loans BRL112.2MM to SEST & SENAT for Expansion
BRASKEM SA: Fitch Rates Proposed US$275MM Senior Notes at BB+

CAIXA ECONOMICA: Central Bank Okays Exports Funding
COMPANHIA SIDERURGICA: Wheeling Delays Proposed Merger Vote

C A Y M A N   I S L A N D S

ASIA PROJECT: Schedules Final Shareholders Meeting on Oct. 4
BOSTON BRAZIL: Liquidator Presents Wind Up Accounts on Oct. 5
CC ASIA: Shareholders Gather for a Final Meeting on Oct. 5
CMULTI-STRATEGY: Last Shareholders Meeting Is Set for Oct. 4
CMULTI-STRATEGY (MASTER): Last Shareholders Meeting Is on Oct. 4

DIVI TIARA: Employees Satisfied with Government Intervention
DIVI TIARA: Employment Relations & Labor to Assist Workers
ENCANTO RESTAURANTS: Final Shareholders Meeting Is on Oct. 4
FOUR VALLEYS: Last Shareholders Meeting Is Scheduled for Oct. 4
HYPER-RABBIT: Invites Shareholders for a Final Meeting on Oct. 5

HYPERGLOBAL FUND: Sets Final Shareholders Meeting on Oct. 5
LONGHORN LIMITED: Final Shareholders Meeting Is Set for Oct. 4
MARYLEBONE ROAD: Last Day to File Proofs of Claim Is on Oct. 6
MIRAI LIMITED: Calls Shareholders for a Final Meeting on Oct. 4
MTU LTD: Invites Shareholders for a Final Meeting on Oct. 4

PASADENA CDO: Proofs of Claim Filing Deadline Is Set for Oct. 6
RS PROPERTY: Calls Shareholders for a Final Meeting on Oct. 4
SEAGATE TECH: Redeeming Outstanding 8% Senior Notes Due 2009
SL LIMITED: Final Shareholders Meeting Is Scheduled for Oct. 4
TARNOW LEASING: Creditors Must Submit Proofs of Claim by Oct. 6

TOP LTD: Shareholders Gather for a Final Meeting on Oct. 4
TOTO LTD: Shareholders Convene for a Final Meeting on Oct. 4

C H I L E

ARAMARK CORP: Moody's Lowers Rating on Sr. Notes Due 2012 to B2

C O L O M B I A

CA INC: Purchases 41,225,515 Shares for US$989 Million
COLOMBIA TELECOM: Will Offer Imagenio Satellite TV Services
ECOPETROL: 10 Firms Submit Details for Transport Market Analysis

* COLOMBIA: State Power Firms Invest COP242B in First Half 2006

C U B A

* CUBA: ONGC Wants to Acquire Petroleum Assets in Country

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Fraud Case Hearing to Continue Today
FALCONBRIDGE: Proceeds with Subsequent Acquisition of Novicourt
TAG-IT PACIFIC: Earns US$654,642 in Second Quarter Ended June 30
VIVA INTERNATIONAL: Inks Purchase Agreement with River Hawk

E C U A D O R

PARMALAT GROUP: Board Approves 2006 Semi-Annual Report
PETROECUADOR: Will Buy Premium Diesel from Arkham

G U A T E M A L A

DOLE FOOD: Product Warning Cues S&P to Hold Ratings on NegWatch
DOLE FOOD: Moody's Reviews Long-Term Ratings & May Downgrade

H A I T I

* HAITI: Eligible for Debt Relief Under IMF Program

J A M A I C A

SUGAR COMPANY: Farmers Group Ditches Aracatu Bidding Alliance

* JAMAICA: Proceeds with Sugar Industry Transformation

M E X I C O

AMERICAN AXLE: Sending Axle Work on Camaro Car in Mexico Plant
COMVERSE TECHNOLOGY: S&P Maintains Negative Watch on BB- Rating
FORD MOTOR: Attorney General Lockyer Files Global Warming Suit
FORD MOTOR: S&P Lowers Ratings on Ten Single-Issue Transactions
GENERAL MOTORS: Atty. General Lockyer Files Global Warming Suit

HIPOTECARIA SU: S&P Assigns BB- Counterparty Credit Rating
SATELITES MEXICANOS: Judge Drain Approves Compensation System

P A N A M A

AES CORP: Panama Unit Prequalified by Fenosa in Power Supply Bid
GRUPO BANISTMO: HSBC Opens Tender Offer for Firm's 100% Shares

P E R U

DOE RUN: Names Theodore Fox as New Chief Financial Officer
DOE RUN: Peruvian Unit Resolves Labor Strike

P U E R T O   R I C O

ADELPHIA: Completes US$1.8 Mil. Equipment Sale to ADDvantage
ADELPHIA: Motorola Reserves Right to Unseal Settlement Pact
MARGO CARIBE: Deloitte Resigns as Independent Accountant
MUSICLAND HOLDING: Hires Walker Truesdell as Winddown Officer

T R I N I D A D   &   T O B A G O

BRITISH WEST: Will Stop Washington Flights on October 10
BRITISH WEST: Will Decide on Voluntary Separation Packages Today
MIRANT CORP: To Settle Erisa Litigation for US$9.7 Million

V E N E Z U E L A

* VENEZUELA: State Bank Will Open Branches in Four Nations

* IDB Holds Asia-LatAm Private Sector Forum in Japan


                          - - - - -


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


BACS I: Fitch Arg Puts C Rating on US$8.7 Series 2001-1 Certs.
--------------------------------------------------------------
BACS I's Participation Certificate Series 2001-1 for
US$8,689,933 is rated C (arg) by Fitch Argentina Calificadora de
Riesgo S.A.


CRUZ DORADO: Seeks for Court Approval to Reorganize Business
------------------------------------------------------------
Court No. 1 in Buenos Aires is studying the merits of Cruz
Dorado S.A.'s petition to reorganize its business after
defaulting on its obligations.

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

Clerk No. 2 assists the court in the case.

The debtor can be reached at:

          Cruz Dorado S.A.
          Avenida Angel Gallardo
          Buenos Aires, Argentina


FIDEICOMISO FINANCIERO: Moody's Rates Debt Securites at B1
----------------------------------------------------------
Moody's Latin America has assigned a rating of Aa2.ar (Argentine
National Scale) and a B1 (Global Scale, Local Currency) to the
Debt Securities of Fideicomiso Financiero Tarjeta Privada IV,
issued by Banco de Valores S.A. (acting solely in its capacity
as Trustee).

The securities are backed by a pool of credit card receivables
originated by Banco Privado de Inversiones S.A. or BPI located
in Argentina.  Interest and principal on the VDF are payable
from the cash flow of the credit card receivables.

The ratings assigned are based on these factors:

   -- The credit quality of the securitized pool;

   -- The credit enhancement provided through the 22% initial
      subordination level;

   -- The ability of Banco Macro Bansud to act as backup
      servicer in the transaction;

   -- The availability of several reserve funds; and

   -- The legal structure of the transaction.

                         Structure

Banco de Valores S.A. (Issuer and Trustee) issued one class of
peso-denominated, floating-rate bonds (VDF) and a residual
certificate (not rated), all of them backed by a pool of credit
card receivables originated by BPI.  The VDF original balance is
equal to 78% of the original issuance amount.  The transaction
has an expected maturity of 12 months.

At closing, the VDF were backed by credit card outstanding
balances generated by eligible accounts.  The ownership of those
accounts remains with the originator but the receivables are
assigned to the trust.  The transaction has five reserve funds:

   -- an expense fund,
   -- a liquidity reserve fund,
   -- a backup servicer replacement fund, and
   -- sinking funds for interest and principal.

During the first six months after closing, only interest is paid
monthly to VDF investors.  The VDF will bear a floating interest
rate (Badlar + 350 bps) with a minimum rate of 13.5% and a
maximum rate of 19%.  If an early amortization event occurs, the
revolving period will terminate automatically.

The principal and yield on the Argentine credit card receivables
to be purchased by the trust will be discounted by using the
VDF's coupon rate.  By discounting at the VDF coupon on a weekly
basis, investors are subject to a possible interest rate
mismatch if an early amortization event occurs.  However, this
risk is mitigated by the pool's high projected payment rate,
which under normal scenarios allows the deal to fully pay off in
approximately two months, and by a liquidity reserve fund funded
at closing with 1.5 times the next interest payment, available
to investors in case there is a liquidity shortfall.

Beginning in the seventh month after closing, scheduled interest
and principal will be paid in that order, on each payment date.  
Principal is scheduled to be paid in six monthly installments.  
If the scheduled principal is not paid on time, it will not
constitute an event of default under the terms of the
transaction documents, given that the promise to investors is to
receive ultimate principal before the legal final maturity date.

Purchases of receivables will take place at the end of every
week during the life of the transaction.  Interest and the
principal reserves must be funded before new receivables can be
purchased.

During the revolving period, collections will not be transferred
to the trust account but there will be an offset between the
collections to be submitted and the new receivables assigned to
the trust.  This procedure was established to minimize trust
expenses.

                     Seller and Servicer

BPI is the seller of the receivables and the primary servicer of
the transaction.  The bank was founded in 1993 to provide
financial services to the middle-high and high-income segment of
the market.  In 1996, BPI began issuing MasterCard and Visa
credit cards to its customers.

Banco Macro Bansud S.A. or BMB is the designated backup
servicer.  If a servicer replacement trigger is hit, the trustee
is obligated to immediately notify BMB and Visa and MasterCard.  
The trustee, who receives pool and borrower data from the
servicer on a monthly basis, will transfer this information to
the backup servicer.  In addition, Visa and MasterCard also will
have duplicate data that they can transfer to BMB, if necessary.  
Given that BMB is a member of the Visa and MasterCard system,
the transfer of data should be straightforward.

BMB will be entitled to receive this information as the new
owner of the accounts according to the conditional assignment
contract that will become effective upon the occurrence of a
servicer replacement event. Thus, even if BPI's membership in
the Visa and MasterCard networks is terminated, credit card
customers will not have their credit lines suspended.

The servicer will transfer collections to the trust account on a
weekly basis.  As a result, there is one week of commingling
risk at the originator/servicer level which may affect the deal
should the originator/servicer enter into a reorganization
procedure. This risk is mitigated by the ability of BMB, once it
is appointed as backup servicer, to service the receivables, and
by the servicer replacement reserve account that will be funded
at closing with 0.5 times the next interest payment.

                     Credit Enhancement

Moody's considered the credit enhancement provided in this
transaction through an initial subordination level of 22%, as
well as the historical performance of BPI's pools.  In addition,
Moody's considered factors common to all credit card
securitizations such as monthly principal payment rate, charge
offs, delinquencies, attrition and dilution, and specific
factors related to the Argentine market, such as the probability
of a decrease of the monthly payment rate and changes in the
macroeconomic scenario.  The factors mentioned above are
simulated in stress situations, based on the variability that
they have shown in the past and on stress scenarios consistent
with the rating levels assigned.


PROGAL QUIMICA: Deadline for Verification of Claims Is on Nov. 6
----------------------------------------------------------------
Maria Lilia Orazi, the court-appointed trustee for Progal
Quimica S.A.'s bankruptcy proceeding, verifies creditors' proofs
of claim until Nov. 6, 2006.

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

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

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

The trustee can be reached at:

          Maria Lilia Orazi
          Tucuman 1484
          Buenos Aires, Argentina


PROYECTO COMERCIAL: Claims Verification Deadline Is on Nov. 13
--------------------------------------------------------------
Beatriz Mazzarelli, the court-appointed trustee for Proyecto
Comercial S.R.L.'s bankruptcy case, verifies creditors' proofs
of claim until Nov. 13, 2006.

Under the Argentine bankruptcy law, Ms. Mazzarelli is required
to present the validated claims in court as individual reports.  
Court No. 7 in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Proyecto Comercial
and its creditors.

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

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

Proyecto Comercial was forced into bankruptcy at the behest of
Fada Pharma S.A., which it owes US$10,444.21.

Clerk No. 4 assists the court in the proceeding.

The debtor can be reached at:

          Proyecto Comercial S.R.L.
          Mendoza 5500
          Buenos Aires, Argentina  

The trustee can be reached at:

          Beatriz Mazzarelli
          Lavalle 1459
          Buenos Aires, Argentina


SEGURIDAD ENTRE: Asks for Court Approval to Restructure Debts
-------------------------------------------------------------
Court No. 12 in Buenos Aires is studying the merits of Seguridad
Entre Rios S.A.'s petition to restructure its debts after a
cessation of payments on Sept. 11, 2006.

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

Clerk No. 23 assists the court in the case.

The debtor can be reached at:

          Seguridad Entre Rios S.A.
          Cordoba 1364
          Buenos Aires, Argentina


ST. DENIS: Verification of Proofs of Claim Is Until Sept. 25
------------------------------------------------------------
A court-appointed trustee for St. Denis S.R.L.'s bankruptcy
proceeding verifies creditors' proofs of claim until
Sept. 25, 2006.  The trustee's name has not been disclosed.

The trustee will present the validated claims in court as
individual reports on Nov. 6, 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 St. Denis 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 St. Denis' accounting
and banking records will follow on Feb. 6, 2007.

The trustee is also in charge of administering St. Denis' assets
under court supervision and will take part in their disposal to
the extent established by law.


SURISER SA: Deadline for Verification of Claims Is on Nov. 13
-------------------------------------------------------------
Edgardo Alberto Borghi, the court-appointed trustee for Suriser
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Nov. 13, 2006.

Under the Argentine bankruptcy law, Mr. Borghi 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 Suriser and its
creditors.

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

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

Suriser was forced into bankruptcy at the request of Juan
Fernandez, whom it owes US$8,552.79 and ARS1,053.35.

Clerk No. 9 assists the court in the proceeding.

The debtor can be reached at:

          Suriser S.A.
          Corrientes 423
          Buenos Aires, Argentina  

The trustee can be reached at:

          Edgardo Alberto Borghi
          Luis Viale 2176
          Buenos Aires, Argentina




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


WINN-DIXIE: Wants Stipulation with Anderson News Approved
---------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates and Anderson
News LLC ask the U.S. Bankruptcy Court for the Middle District
of Florida to approve a stipulation to a supply and service
contract.

The Debtors and Anderson News LLC are parties to a supply and
service contract dated July 29, 2004, under which Anderson
provides the Debtors with magazines, similar merchandise, and
services relating to the merchandise.

After the Debtors filed for bankruptcy protection, they
scheduled Claim No. 35573 to Anderson for US$6,059,171.  
Anderson subsequently served a reclamation demand upon the
Debtors for US$3,803,745.

Pursuant to a Court order dated Feb. 23, 2005, many of the goods
delivered to the Debtors their bankruptcy filing were returned
to Anderson with the returned goods applied to reduce its
prepetition claim.

In Sept. 2005, Anderson signed an agreement with the Debtors
indicating that it originally had a substantial claim against
the Debtors but the return of certain goods postpetition
resulted in a net reclamation claim and net prepetition claim of
zero.

Pursuant to the Agreement, Anderson opted into the Court-
approved stipulation between the Debtors and certain trade
vendors regarding reconciliation and treatment of trade vendors'
reclamation claims.  Anderson is deemed to be a participating
reclamation vendor.

Anderson further gave the Debtors 21 days of credit in exchange
for the consideration set forth in the Participating Vendor
Stipulation.

In June 2006, the Debtors sought to disallow the Anderson Claim
in their Omnibus Motion.

To resolve their dispute, the parties agree that:

   (1) the Anderson Claim is disallowed in its entirety.  
       Anderson has no other or further claim against the
       Debtors arising before the Petition Date due to the
       postpetition return of goods to Anderson for credit
       against Anderson's prepetition claim;

   (2) Anderson, as a participating reclamation vendor, is fully
       bound by the terms of the Participating Vendor
       Stipulation.  Thus, any preference claims against
       Anderson have been waived;

   (3) The entry of the agreement and approval of the Court is
       without prejudice to:

          -- Anderson's entitlement to continue to receive
             payment in the ordinary course for the postpetition
             sale of goods and services to the Debtors;

          -- Anderson's right to seek allowance and payment of
             an administrative expense for any sales of goods
             and services arising postpetition if for any reason
             it is not continued to be paid in the ordinary
             course of business by the Debtors; and

          -- the Debtors' right to oppose Anderson's request for
             administrative expense payments; and

   (4) All claims between the parties are resolved other than
       the claims arising out of the postpetition sale of goods
       and services by Anderson to the Debtors.

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 Aug. 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 Sell 2 Store Leases to Fine Foods for US$1M
----------------------------------------------------------------
According to a notice filed with the U.S. Bankruptcy Court for
the Middle District of Florida, Winn-Dixie Stores, Inc., and its
debtor-affiliates intend to sell the leases of Store No. 202 in
West Palm Beach, Florida, and Store No. 380 in Pembroke Pines,
Florida, to Fine Foods Gourmet Markets, Inc., for a combined
US$1,035,000.  The purchase excludes the leased equipment at the
stores.

On Aug. 29, 2006, the parties entered into an asset purchase,
pursuant to which Fine Foods will deliver to Smith, Gambrell &
Russell LLP, the escrow agent, an initial earnest money deposit
no later Sept. 1, and a second deposit within one business
day after Court approval of the sale:

Store No.   Purchase Price     Initial Deposit   Second Deposit
---------   --------------     ---------------   --------------
   202       US$405,000          US$40,500        US$81,000
   380          630,000             63,000          126,000

Fine Foods will deliver the Purchase Price, net of the Deposits
within two business days prior to closing of the sale.

                   Four Leases Rejected

Judge Funk authorizes the Debtors to reject four store leases
effective as of Sept. 30, 2006.

     Store No.            City
     ---------          --------
       124              Tallahassee
       162              Jacksonville
       565              Pensacola
       605              Largo

Judge Funk overrules the cure objections with respect to the
four leases and directs the landlords to file any claim for
rejection damages by Oct. 31, 2006.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The company
completed in Aug. 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 A R B A D O S
===============


SECUNDA INT'L: S&P Maintains Crediwatch Positive on B- Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'B-' long-term
corporate credit and senior secured debt ratings on offshore
support vessel provider Secunda International Ltd. will remain
on CreditWatch with positive implications, where they were
placed Sept. 29, 2005.  The continued CreditWatch listing is the
result of the company's ongoing efforts to complete its IPO, in
which it plans to sell common stock.  In conjunction with the
IPO, Secunda has also extended its tender offer for its senior
secured notes.

In June 2006, Nova Scotia-based Secunda concurrently
discontinued its IPO registration process with the U.S. SEC and
opted to file in Canada. Net proceeds will be used to fund the
acquisition of an additional vessel, repay existing
indebtedness, and for general corporate purposes.  The funds
from the offering should provide the company with additional
liquidity, as well as added flexibility from the company's
access to the equity market.  Furthermore, the equity offering
should afford Secunda the ability to expand and improve its
fleet, without any incremental negative effects on its financial
profile.  The preliminary prospectus filed in June 2006 included
Secunda's financial results for the quarter ended
March 31, 2006, with the company reporting an improvement in
both revenues and internal cash flow generation, compared with
the previous year.

"We expect that Secunda will complete the IPO before the end of
2006, which should allow the company to reduce its leverage, as
well as gain added flexibility and liquidity," said Standard &
Poor's credit analyst Jamie Koutsoukis.  "This, combined with
the continued improvement in its financial profile as a result
higher-than-historical utilization and day rates, should result
in Secunda's overall credit profile strengthening," Ms.
Koutsoukis added.

The extent of any positive rating action will depend on Standard
& Poor's analysis of Secunda's prospective business and
financial plans, including its planned uses of the proceeds and
amount of debt reduction following the offering.  Based on our
preliminary assessment, an upgrade higher than one notch is
unlikely.  Standard & Poor's will resolve the CreditWatch action
after further consultation with Secunda's management and the
successful completion of the IPO.




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


ALEA GROUP: Reports Interim Results for Quarter Ended June 30
-------------------------------------------------------------
Alea Group Holdings (Bermuda) Ltd. discloses interim results for
the six months ended June 30, 2006 and provides an update on
run-off.

                   Financial Performance

   -- Net insurance premium revenue for the six months ended
      June 30, 2006, was US$209.7 million (June 30, 2005:
      US$610.7 million), with the reduction reflecting the
      impact of the Group's decision to cease writing
      new/renewal business and place its operations into
      run-off.

   -- Loss after tax for the six months ended June 30, 2006 was
      US$10.7 million) (six months ended June 30, 2005: profit
      of US$19.5 million).

   -- Net asset value of US$2.57 per share (GBP1.40 per share)
      compared with June 30, 2005, of US$4.12 per share
      (GBP2.28 per share).

   -- Net asset value at June 30, 2006 was impacted by
      cumulative unrealized losses on investments of US$49.3
      million (June 30, 2005: cumulative gains of US$17.2
      million).

   -- Basic and diluted loss per share of US$0.06
      (June 30, 2005: earnings per share of US$0.11).

   -- Investment income of US$49.2 million (June 30, 2005:
      US$43.0 million).

   -- Insurance contracts liabilities decreased from US$2,872.5
      million at December 31, 2005, to US$2,451.7 million at
      June 30, 2006.

   -- Other operating expenses for the six months ended
      June 30, 2006, were US$42.5 million compared with
      US$61.2 million in the six months ended June 30, 2005.

   -- Limited adverse development (net of commutations) of
      US$3.1 million representing 0.1% of gross claims
      outstanding.

   -- During the period, the Group entered into an agreement to
      sell Alea North America Specialty Insurance Company or
      ANASIC to a member company of Praetorian Financial
      Group, Inc.

   -- 2006 performance remains within the financial covenants
      under the Group's bank credit agreement.

                           Run-off

Following the announcement of the Group's intention to cease
underwriting and place its insurance operations into run-off,
the Group adopted a run-off plan that includes a proactive cost
management program including consolidation of certain operations
to improve operational efficiency, and an aggressive claims
management and commutation strategy.  The key elements of the
plan are to preserve net assets through effective management of
the run-off of the Group's balance sheet, manage other operating
expenses and finance costs to levels less than or equal to
investment income by year end 2007, and ultimately return
capital to shareholders.

Effective Sept. 1, 2006, Mark Cloutier was appointed Chief
Executive Officer of the Group and with Kirk Lusk, Group Chief
Financial Officer, joined the Board of Directors.

                          Outlook

The Group's performance for the first half of 2006 with respect
to commutations is on plan.  In addition, headcount and expenses
are running as expected.  Notwithstanding our performance, there
can be no certainty as to the timing or amounts of future
distributions to shareholders.  Any future distributions will be
subject to execution of commutations on economic terms
acceptable to the Group, appropriate regulatory approvals being
obtained to fund intra-group distributions, applicable legal
restrictions, repayment of the Group's US$150 million term loan
and US$50 million revolver and the retention of adequate capital
to meet other obligations.

John Reeve, Non-executive Chairman of the Board of Directors,
comments "The first half of 2006 has been a challenging time for
Alea, despite which the Group's results and run-off strategy are
on plan.  The Group is making progress in its efforts to reduce
volatility in the balance sheet while at the same time achieving
the operating efficiencies needed to sustain a successful run-
off.  We are pleased with the partnership of Mark Cloutier as
Group CEO and Kirk Lusk as Group CFO and welcome them as
executive members of the Board of Directors.  The Company has
not proposed an interim dividend for 2006."

Mark Cloutier, Group Chief Executive, comments, "The Group's
operating results excluding finance costs are slightly better
than plan, which is encouraging given the significant changes
implemented in the transition to run-off.  We made considerable
improvements in the areas of staff and organisational
restructuring, claims and commutation strategies, and expense
and cash flow management. Additional progress has been made with
respect to reducing volatility in the portfolio and accelerating
our exit from active exposures through commutations and unearned
premium cut-offs.  As we move ahead, we will remain keenly
focused on expense reduction initiatives, further embedding of
cash and claim management strategies, and an acceleration of
commutation activity."

     Performance Indicators and Comparison to Prior Periods

The Group ceased underwriting new and renewal business and was
placed into run-off in the fourth quarter of 2005.  The Group's
business has therefore changed significantly and as a result
certain performance comparisons with prior periods may become
less meaningful.  In this report, the Group has modified some of
the prior period comparisons to make them relevant to the
business in its current state.  Going forward, the relevance of
period-to-period comparisons included in Group reporting will be
considered in light of the Group's run-off strategy with the
objective of making only meaningful and useful comparisons.

                    Reserves and Claims

At June 30, 2006, the total insurance contracts balance
comprising gross claims outstanding, claims handling provisions,
discount on claims and claims handling provision and provision
for unearned premiums was US$2,451.7 million, a decrease of
18.8% from June 30, 2005 (US$3,019.4 million) and a decrease of
14.6% from December 31, 2005 (US$2,872.5 million).  The claims
outstanding, net of reinsurance at June 30, 2006 was US$1,344.8
million.  This is a decrease of 5.9% compared with December 31,
2005 (US$1,429.4 million) but is an increase of 15.6% from
US$1,163.5 million as at June 30, 2005. This increase reflects
the fact that the Group was still an ongoing business during the
second half of 2005.

                    Adverse Development

During the six months ended June 30, 2006, the Group experienced
deterioration net of commutations in the gross reserves of
US$3.1 million (US$2.2 million net of reinsurance).

                   Loss Reserve Discount

As permitted by IFRS 4, categories of claims provisions where
the expected average interval between the date of settlement and
the balance sheet date is in excess of four years may be
discounted at a rate that does not exceed that expected to be
earned by assets covering the provisions.  As at June 30, 2006,
25% of the Group's gross reserves were discounted at a rate of
4.5%.

As at June 30, 2006, the Group's total net discount was US$114.7
million (June 30, 2005: US$117.9 million).  This is expected to
reduce towards zero over the duration of the normal course
payout of the reserves.  The unwinding of the discount will be
charged to insurance claims and loss adjustment expenses in the
income statement as the remaining expected duration drops below
the UK GAAP qualified level as permitted by IFRS 4.

    Gross Premiums Written and Net Insurance Premium Revenue

Gross premiums written or GPW in the six months ended
June 30, 2006, were US$(37.9) million (six months ended
June 30, 2005: US$855.3 million) reflecting the cancellation of
policies written in prior periods.  Net insurance premium
revenue reduced by 66% to US$209.7 million in the six months
ended June 30, 2006, (six months ended June 30, 2005: US$610.7
million).  This is primarily due to the Group's decision to
cease writing new and renewal business resulting in a reduction
in premium.

Premiums written generally take three years to earn through the
income statement.  These patterns differ by business class and
operational unit.  Overall, they approximate 40% in the first,
55% in the second and 5% in the third year.  As at
June 30, 2006, the Group had net unearned premiums of US$105.9
million (June 30, 2005: US$830.9 million).  The Group
anticipates that no significant insurance premium revenue will
be recognized in 2008 as the majority of unearned premium will
have been released and recognized as revenue by Dec. 31, 2007.

The Group has assessed its June 30, 2006, deferred acquisition
cost asset of US$30.0 million (June 30, 2005: US$228.7 million)
as fully recoverable and as a result has not recorded any DAC
write-off in its six months to June 30, 2006, income statement.

                         Fee income

Fee income in the six months ended June 30, 2006, was US$0.4
million compared with US$1.3 million recorded in the same period
in 2005.  Fee income represents income arising on structured
reinsurance and insurance contracts without significant transfer
of insurance risk.  These contracts are accounted for on a
deposit accounting basis.

         Investment Income and Realized Gains and Losses

Investment income in the six months ended June 30, 2006 was
US$49.2 million, 14% (US$6.2 million) higher than the US$43.0
million recorded in the six months ended June 30, 2005.  The
growth recorded reflects 4.0% investment income in the six
months ended June 30, 2006 on average invested assets of
US$2,331 million compared with 3.6% investment income in the six
months ended June 30, 2005 on average invested assets of
US$2,312 million.

Net realized losses on financial assets were US$1.4 million in
the six months ended June 30, 2006 compared with US$3.6 million
realized gains in the six months ended June 30, 2005.

           Net Realized Gains on Sale of Renewal Rights

The Group completed three renewal rights transactions in the
fourth quarter of 2005.  These were accounted for as net
realized gains on sale of renewal rights of US$61.1 million,
which was recognized in the year ended December 31, 2005, and
represents the directors' valuation at fair value of the
business sold.  Subsequently, an additional US$0.9 million has
been recognized in the six months ended June 30, 2006. These
amounts reflect the discounted estimated future cash flows
arising from specified percentages of applicable commissionable
premiums written over the applicable period.  In determining the
fair market value of renewal rights sales, the Board considered
the prior production and growth of the businesses sold, external
projections and a recent assessment of the businesses sold.  The
fair market value of the renewal rights is dependent upon
receipt of commissionable premium on applicable business that is
periodically evaluated by the Board.

To date the Group considers that the accruals above are
reasonable and has received in cash US$20.1 million of the
estimated total of US$62.0 million.  The outstanding balance
consists of US$37.0 million due from AmTrust and US$4.9 million
due from Canopius.

          Insurance Claims and Loss Adjustment Expenses

In the six months ended June 30, 2006, the Group incurred net
insurance claims and loss adjustment expenses of US$148.9
million (six months to June 30, 2005: US$412.6 million).

The claims outstanding net of reinsurance at June 30, 2006 were
US$1,344.8 (at Dec. 31, 2005: US$1,429.4 million), which equates
to a decrease of US$84.6 million in the six-month period.

                     Acquisition Costs

Acquisition costs are costs are directly associated with the
acquisition of insurance and reinsurance contracts including
brokerage, commissions, underwriting expenses and other
acquisition costs.  They are deferred and amortised over the
period of contract, consistent with the earning of premium.

Given that the Group is no longer accepting new insurance risk,
and is releasing its unearned premium reserves as the risk
associated with those premium receipts is extinguished,
acquisition costs are expected to decrease.

In the six months ended June 30, 2006, total acquisition costs
were US$64.2 million (six months ended June 30, 2005: US$174.8
million).

                  Other Operating Expenses

The Group plans to reduce other operating expenses so that in
any given period they are less than total investment income in
that period net of finance costs.  To the extent that investment
income net of discount released does not offset other operating
expenses, the Group will establish a run-off provision.  The
current Group projections indicate that a run-off provision is
not required.

In the six months to June 30, 2006, other operating expenses
were US$42.5 million.  This compares with other operating
expenses in the six months to June 30, 2005, of US$36.2 million
which were stated net of a US$25.0 million reclassification from
other operating expenses to acquisition costs.  This accounting
treatment was performed to comply with IAS 1 "Presentation of
Financial Statements" and represents premium related expenses.  
As the Group is now in run-off, the equivalent reclassification
is no longer required.

                    Restructuring Costs

Restructuring costs in the six months ended June 30, 2006, were
US$1.6 million (year ended Dec. 31, 2005: US$22.4 million).  The
Group anticipates headcount at the end of 2006 will be less than
200 and will reduce further in line with reserves and invested
assets.

Included are redundancy costs incurred of US$4.1 million for
severance payments made to employees who were not part of the
original restructuring plan as disclosed at December 31, 2005.

Restructuring costs also include a credit of US$2.5 million that
results from Alea North America's sublease of its empty offices
in Wilton and a resulting reversal of part of the previously
recognized provision for onerous contracts.

               Results of Operating Activities

In the six months ended June 30, 2006, results of operating
activities were a profit of US$1.6 million compared with a
profit of US$35.0 million in the six months ended June 30, 2005,
reflecting the transition into run-off detailed above.

                       Finance costs

Finance costs include investment expenses, foreign exchange
movements and debt interest.  In the six months ended
June 30, 2006 total finance costs were US$16.0 million, compared
with US$9.1 million recorded in the same period in 2005.  The
majority of this increase results from a rise in interest rates.  
As is detailed in the section on Financing Facilities, interest
is charged at LIBOR plus 285 basis points on the trust preferred
facility and at LIBOR plus 120 basis points on the three-year
bank facility.  The Group was also significantly affected by the
weakening of the dollar in the European operations.

                   Loss Before Income Tax

Loss before income tax was US$14.4 million in the six months
ended June 30, 2006, compared with a profit of US$25.9 million
in the six months ended June 30, 2005.  This reduction reflects
the change in the results of operating activities noted above
and the transition into run-off.

                    Income Tax Expense

The income tax credit in the six months ended June 30, 2006 was
US$3.7 million, compared with a charge of US$6.4 million in the
six months ended June 30, 2005.  The effective tax rate was
25.9% in the six months ended June 30, 2006 (six months ended
June 30, 2005: 24.8%).  
                                                                    
In the year ended Dec. 31, 2005, the Group wrote off the
majority of its deferred tax assets to reflect uncertainty over
future profitability.  Consequently, the Group's Swiss and UK
entities have significant trading losses carried forward in
respect of which no deferred tax assets have been recognized.

In the six months to June 30, 2006, the Group's North American
entities made a pre tax loss of US$13.3 million.  As a result of
these allowable tax losses, the Group has reversed a previously
recognized deferred tax liability of US$1.9 million and has also
recognized a current tax recoverable of US$2.8 million.

The corporation tax for the interim periods ended June 30, 2006,
and June 30, 2005, was calculated so as to represent the best
estimate of the weighted average annual corporation tax rate
expected for the full financial year.

        Loss on Ordinary Activities After Income Tax

Loss on ordinary activities after income tax in the six months
ended June 30, 2006, was US$10.7 million, compared with a profit
of US$19.5 million in the six months ended June 30, 2005.

                      Loss Per Share

Basic and fully diluted loss per share for the six months ended
June 30, 2006, was US$0.06 per share (six months ended
June 30, 2005: earnings per share: US$0.11).

                         Dividend

The Company will not be paying an interim dividend for the 2006
financial year.

                       Total Assets

Total assets as at June 30, 2006, decreased by 16% to US$3,769.5
million from US$4,513.5 million at June 30, 2005.

                        Net Assets

Net assets (shareholders' funds attributable to equity
interests) at June 30, 2006 were US$447.1 million
(June 30, 2005: US$718.3 million). Net assets per share were
US$2.57 (June 30, 2005: US$4.12).  At the June 30, 2006,
exchange rate of US$1.83 = GBP1, net assets per share were
GBP1.40 (June 30, 2005: GBP2.28 at an exchange rate of US$1.81 =
GBP1).  Net assets have remained relatively stable compared with
the position at Dec. 31, 2005 (US$490.4 million) after taking
into consideration the impact of interest rate movements on the
investment portfolio described below.

                  Reinsurance Recoverables

Total reinsurers' share of claims outstanding was US$968.1
million at June 30, 2006 (US$935.2 at June 30, 2005).  The
increase is primarily due to catastrophe losses incurred in the
second half of 2005 offset by the commutation of the Inter-Ocean
adverse development and aggregate excess of loss covers.

                       Invested Assets

The Group's investment strategy emphasises a high quality
diversified portfolio of liquid investment grade fixed income
securities as a method of preserving capital.  The investment
portfolio does not currently consist of equity or real estate
investments, but the Group may, in the future, invest in other
asset classes on a modest basis as part of a continuing
conservative investment strategy.

At June 30, 2006, the value of available for sale investments
was US$1,980.7 million, compared with US$2,123.5 million at
June 30, 2005.

Of total invested assets US$1,971.6 million (June 30, 2005:
US$2,092.0 million) is managed by third-party fund managers with
the asset mix shown below.  The remaining invested assets of
US$9.1 million include predominantly mutual funds invested in
fixed income securities.

At June 30, 2006, the Group's investment portfolio had an
average duration of 2.6 years (June 30, 2005: 3.4 years).  The
Group intends to monitor the average duration of the portfolio
to provide liquidity anticipated to be required to support the
Group's run-off strategy.

In the first half of 2006 the Group achieved a total gross
return on the investment portfolio of 0.8% (six months ended
June 30, 2005: 4.9%).  The investment return comprised 4.0%
investment income (six months ended June 30, 2005: 3.6%), 0.1%
realized loss (six months ended June 30, 2005: gain of 0.3%) and
3.1% unrealized loss (six months ended June 30, 2005: gain of
1.0%) on average invested assets of US$2,331 million (six months
ended June 30, 2005: US$2,312 million).

At June 30, 2006, all of the Group's fixed income portfolio was
rated A or better and 98% was rated AA or better by either
Standard & Poor's or Moody's.  The portfolio had a weighted
average rating of AAA based on ratings assigned by Standard &
Poor's or Moody's.  Other than with respect to US, Canadian and
European Union government and agency securities, the Group's
investment guidelines limit its aggregate exposure to any single
issuer to 5% of its portfolio.  All securities must be rated A
or better at the time of purchase and the weighted average
rating requirement of the Group's portfolio is AAA.  There were
no investment write-offs in either 2005 or the first half of
2006.

There are pledges over certain investments for the issuance of
letters of credit in the normal course of business.  As at
June 30, 2006, the pledges covered assets of US$425.2 million
(June 30, 2005: US$286.4 million).  In addition US$132.3 million
(June 30, 2005: US$104.2 million) is held as statutory deposits
for local regulators and a further US$762.0 million
(June 30, 2005: US$805.9 million) is held in trust for the
benefit of policy holders including US$286.5 million
(June 30, 2005: US$435.9 million) that Alea (Bermuda) Ltd has
placed in trust on behalf of Alea North America Insurance
Company.

As at June 30, 2006, the Group held Societe d'Investissement a
Capital Variable -- SICAV -- of US$51.8 million (June 30, 2005:
US$40.5 million) pledged for the benefit of French and Belgian
cedants.  These SICAVs are mutual funds invested in European
fixed income securities with average credit quality of AAA and
duration of approximately five and a half years.

                   Financing Facilities

The Group raised US$100 million of hybrid capital in December
2004 and a further US$20 million in early January 2005.  This
capital is in the form of 30-year hybrid trust preferred
securities priced at LIBOR plus 285 basis points.

At June 30, 2006, the Group had US$150 million outstanding under
its term loan facility and US$50 million outstanding under its
revolver facility.  Interest is charged at LIBOR plus 120 basis
points on the three-year bank facilities.  The bank facilities
are due in Sept. 2007.

The Group's bank facilities are subject to covenants including
tangible minimum net equity, debt-to-capitalization ratio
limitations, limitations on granting of liens, limitations on
payments of dividends, limitations on other disposition of
assets, limitations on increased indebtedness and limitations on
distribution of assets.

                    Liquidity and Cashflow

Cash flows from operating activities primarily consist of
premiums collected, investment income and collected reinsurance
recoverable balances, less paid claims, retrocession payments,
operating expenses and tax payments.  Net cash outflow from
operating activities after income tax paid for the six months
ended June 30, 2006, was US$195.6 million (six months ended
June 30, 2005: US$61.1 million net cash inflow).  The operating
cash outflow reflects the transition into run-off and the
reduction in premium received.

The net increase in cash was US$16.8 million (decrease for six
months ended June 30, 2005, of US$57.8 million).  This is after
net cash received from investing activities of US$225.8 million
(six months ended June 30, 2005: net cash used of US$118.1
million) and net cash used in financing activities of US$10.6
million (six months ended June 30, 2005: net cash outflow of
US$1.4 million).  As a result the Group's cash and bank
overdraft at June 30, 2006, was US$133.8 million (June 30, 2005:
US$135.8 million).

                   Intra-Group Arrangements

The Group manages a number of different intra-group arrangements
designed to ensure that each local balance sheet retains risk
commensurate with its capital base.  The principal means of
achieving this is by arranging capacity through internal quota
share reinsurances ('quota shares') primarily with Alea Bermuda.  
For 2002 to 2006 underwriting years the Group has put in place a
70% quota share to Alea Bermuda of Alea North America's
insurance and reinsurance business.  For 2001 to 2005
underwriting years there is a 35% quota share arrangement from
Alea London to Alea Europe.  There is a 50% quota share of
certain 2000 and prior underwriting year business from Alea
Europe to Alea Bermuda.  For 2002 to 2005 underwriting years,
there is an intra-group aggregate excess of loss contract from
Alea Europe to Alea Bermuda.  Given the change in circumstances,
the Group is evaluating options to simplify its capital
structure and balance sheet and is therefore considering
commutations of the quota shares. Such transactions would be
subject to regulatory approval in each jurisdiction affected.

                   Strategic Alternatives

The Group continues to explore sale options for all or certain
parts of the Group.  There can be no guarantees that any
transaction will take place or that a sale of the Group would be
at a premium to the current market price.

As previously announced, Alea has entered into a definitive
agreement to sell Alea North America Specialty Insurance Company
or ANASIC, its US based excess and surplus lines company to a
member company of Praetorian Financial Group, Inc.  Praetorian
will purchase all of Alea's shares in ANASIC in exchange for a
cash payment of US$4 million plus the policyholders' surplus of
ANASIC as of the closing date.  Total consideration will be
between US$30 million and US$36 million and the transaction is
expected to be completed by year-end 2006.  As at June 30, 2006
US$43.0 million has been reclassified as assets and US$12.4
million as liabilities of disposable subsidiary on the face of
the balance sheet.

                 Employee Share Restrictions

As previously announced, the Board has waived certain
contractual prohibitions restricting former employees from
selling their shares in the Company for five years from purchase
and thereafter only with prior Board approval.  The Board has
also waived these requirements for current employees with effect
from the publication of these results for limited periods
following publication of the Group's interim and full year
results subject to certain conditions and all applicable legal
and regulatory restrictions.  As at Sept. 1, 2006, current
employees hold approximately 682,000 shares.

                   Structured Settlements

The Group, through the Canadian branch of Alea Europe Ltd., has
assumed ownership of certain structured settlements and has
purchased annuities from life assurers to provide fixed and
recurring payments to those underlying claimants. As a result of
these arrangements, the Group is exposed to a credit risk to the
extent that any of these insurers are unable to meet their
obligations under the structured settlements.  This risk is
viewed by the Directors as being remote as the annuities are
fully funded and the Group has only purchased annuities from
Canadian insurers with a financial stability of AA or higher
(Standard & Poor's).  The Canadian branch is in run-off and the
branch discontinued accepting assignments of annuities in
Aug. 2001.

In the event of all the relevant life insurers being unable to
meet their obligations under the structured settlements, at
June 30, 2006, the total exposure, net of amounts that may be
recoverable from the Compensation Corporation of Canada (a
Canadian industry-backed compensation scheme), is estimated to
be 39 million Canadian Dollars (US$35 million) and the maximum
in relation to any one insurer 18 million Canadian Dollars
(US$16 million).

                        *    *    *

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

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

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


REFCO INC: Has Until Dec. 12 to Remove State Court Actions
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
extend, until Dec. 12, 2006, the period within which Refco Inc.,
and its debtor-affiliates may file notices of removal with
respect to actions, pursuant to Bankruptcy Rule 9006(b).

As reported in the Troubled Company Reporter on Sept. 8, 2006,
the Debtors told the Court that when they filed for bankruptcy,
they were plaintiffs in 37 actions and proceedings in a variety
of state and federal courts throughout the country.

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

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

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

                      About Refco Inc.

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

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

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

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

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


SEFTON PARK: Court Releases Liquidator from Case
------------------------------------------------
The Supreme Court of Bermuda ordered the release of Malcolm
Butterfield as liquidator of Sefton Park Insurance Limited's
winding up proceeding.  The court also declared that the company
has been dissolved.

The liquidator can be reached at:

          Nalcolm Butterfield
          c/o KPMG Financial Advisory Services Limited
          Crown House, 4 Par-la-Ville Road
          Hamilton HM 08, Bermuda


TEXACO TRUST: Creditors Must File Proofs of Claim by Sept. 29
-------------------------------------------------------------
Texaco Trust Limited's creditors are given until Sept. 29, 2006,
to prove their claims to Gary R. Pitman, the company's
liquidator, 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
Mr. Pitman.

A final general meeting will be held at the liquidator's place
of business on Oct. 16, 2006, at 9:30 a.m., or as soon as
possible.

Texaco Trust'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.  

Texaco Trust's shareholders agreed on Sept. 15, 2006, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

          Gary R. Pitman
          Chevron House, 11 Church Street
          Hamilton, HM DX, Bermuda




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


PETROLEO BRASILEIRO: Eyes Higher Volumes & Longer Supply Pact
-------------------------------------------------------------
Dilma Rousseff, Brazil's presidential chief-of-staff and the
chairperson of the board of state-oil firm, Petroleo Brasileiro
SA aka Petrobras, told Business News Americas that the firm
could seek higher volumes and a longer supply contract for gas
from Yacimientos Petroleros Fiscales Bolivianos aka YPFB -- its
Bolivian counterpart.

According to BNamericas, Petrobras and YPFB have been
negotiating the price of Bolivian natural gas exports to Brazil
through the Bolivia-Brazil gas pipeline, which is controlled by
Petrobras.  

Petrobras said in a statement that the fifth round of talks was
held on Sept. 13 in Santa Cruz de la Sierra, Bolivia.  The sixth
round will be on Sept. 29 in the same venue.

"Everything is on the table," Ms. Rousseff said during an
interview on the Bandeirantes television network.

Ms. Rousseff told BNamericas that Bolivia wants higher prices
for its gas exports, and Brazil could ask for higher volumes and
changes in the contract maturity.

BNamericas underscores that Brazil pays about US$3.80/MBTU for
gas through a 20-year contract, which concludes in 2019.  The
volume of the gas imported to the nation is limited to the
pipeline capacity of 30 million cubic meters a day (Mm3/d).

Brazil, says BNamericas, ships about 25Mm3/d of gas from Bolivia
through the pipeline, accounting for over 50% of local retail
demand for the fuel.

However, Brazil plans to decrease its dependence on Bolivian gas
through the development of new gas fields in the country and
building liquefied natural gas re-gasification terminals for
imports from other nations, Ms. Rousseff 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


* BOLIVIA: IMF Says Nationalization Wards Off Private Investment
----------------------------------------------------------------
El Mercurio reports that the International Monetary Fund told
Bolivia's President Evo Morales that the nation could lose
private investments due to nationalization of resources and
services.

According to Business News Americas, the Brazilian government
complained about new measures President Morales took on
hydrocarbons.  The measures have affected the operations of
Brazilian state oil Petroleo Brasileiro aka Petrobras.  

BNamericas relates that after Brazil's complaints, the Bolivian
government softened its position on the Petrobras situation last
week.

An official from Fejuve -- the consumer pressure group -- told
BNamericas, "This is proof of the pressure asserted by the
international community in Bolivia so that we continue to give
away our resources."

BNamericas underscores that Fejuve threatens to take over Aguas
del Illimani aka AISA -- the water and sanitation utility for La
Paz and El Alto and a subsidiary of French group Suez -- after a
consultancy hired to analyze the firm's operations showed that
the utility did not comply with its concession contract.

A Fejuve official told BNamericas that its officials gained
access to the AISA report after months of negotiations and
requests.  The official said that the group will disclose the
document to the public.

Fejuve demands that the government seek the immediate withdrawal
of Aguas del Illimani, BNamericas says, citing the official.

BNamericas emphasizes that AISA reported improvements to its
potable water and sewerage networks for 2007, promising to
invest about US$3.8 million.

According to the report, financial institutions like the World
Bank and the Inter-American Development Bank have reportedly
warned President Morales about the nationalization in Bolivia,
requesting greater stability for private investors in exchange
for funding.  Meanwhile, the Andean Development Corp. suggested
privatization as one of Bolivia's only opportunities to achieve
development.

Analysts told BNamericas that Bolivia lacks the needed financial
autonomy to be able to implement all of the measures necessary
to boost the nation's competitiveness in terms of production and
trade infrastructure.  

BNamericas reports that President Morales admitted that his
country does not have the needed financial autonomy, requesting
that financial institutions invest in Bolivia and pointing out
the nation's economic potential if it develops the ability to
exploit and transport natural resources like its extensive gas
and mineral reserves.

The report says that the IMF reminded Bolivia that some
development works in the nation have only been possible due to
private investment, while the public continue to call for more
nationalization.  Protesters have been have been holding
demonstration at rail company Enfe in the recent days.  Luksic,
a Chilean business group owns just over 50% of Enfe.

BNamericas notes that the strikes blocked rail traffic between
Oruro, Cochabamba and La Paz, as well as access to and from
Chile, claiming that Chilean investors are destroying Bolivian
railway systems.

Government officials urged protesters to stop their
demonstrations and start talks with state authorities and
representatives of firms, BNamericas states.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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


* BOLIVIA: New Energy Minister Talks Tough on Nationalization
-------------------------------------------------------------
"If agreements are not achieved by Oct. 28 we will implement
item three of the nationalization decree (which calls for
companies to leave the country) and we'll be inflexible," Carlos
Villegas, Bolivia's newly-named hydrocarbons minister was quoted
by Reuters as saying during his first press conference as energy
minister.

Mr. Villegas replaced Andres Soliz who quit after his resolution
to strip Brazil's state oil firm the right to export fuel from
its Bolivian refineries was suspended.  

The new minister, according to Reuters, reminded Petroleo
Brasileiro that the resolution has only been frozen temporarily.

"We'll be intransigent in the implementation of the
nationalization plan," Mr. Villegas said.

When President Evo Morales declared the energy sector's
nationalization in May, he gave foreign oil firms 120 days to
renegotiate their contracts or leave the country.  

The major oil firms operating in Bolivia include:

    -- Petroleo Brasileiro SA
    -- Repsol YPF and
    -- Total SA

Reuters relates that Mr. Villegas, who analysts and local media
see as more pragmatic than Mr. Soliz, said that during these
negotiations his team will show two sides, "an ample disposition
toward dialogue, but toughness with the companies so that they
comply and accept the nationalization decree."

                        *    *    *

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 BRADESCO: Writing Off BRL2.1 Billion in Goodwill Payments
---------------------------------------------------------------
Banco Bradesco SA, Brazil's biggest non-state bank by assets,
will write off BRL2.1 billion (US$979 million) in goodwill
payments ahead of schedule, Bloomberg News reports.

The payment, due 2016, will have a BRL1.2 billion effect on the
bank's balance sheet, saving shareholders about BRL400 million,
the company said in a filing with the local securities
regulator.

"The move will make our balance sheet cleaner," Milton Vargas, a
vice-president at the bank said in an interview with Bloomberg.  
"Investors seeking to decide whether to invest won't need to
make adjustments on calculations."

Mr. Vargas added that the goodwill write-off represents the
intangible parts of some of their recent acquisitions, such as
the brand name.  He said it will cover all of their recent
acquisitions, including the American Express purchase, Bloomberg
relates.

According to Bloomberg, the bank reported record earnings this
year after at least 18 acquisitions in six years.  The latest
purchase came in March, when Banco Bradesco bought American
Express Co.'s Brazilian operations for US$490 million.

Meanwhile, Banco Bradesco has called a shareholders' meeting on
Oct. 5 to ask for approval on a capital stock increase.  The
bank seeks a BRL1.2 billion share sale to restore the bank's
capitalization levels, Bloomberg says.

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

                        *    *    *

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

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

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

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

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

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

   -- Support rating affirmed at '4';

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

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


BANCO DO BRASIL: Will Disclose Five Financial Services Accords
--------------------------------------------------------------
A spokesperson of Banco do Brasil told Business News Americas
that the bank will reveal in the next few days at least five new
financial services accords with major national retailers.

The spokesperson told BNamericas she was not allowed to name the
retailers.

Banco do Brasil said in a statement that it signed last week a
private label agreement with Ri Happy -- a national toy retailer
-- to issue Visa-branded private label credit cards.

BNamericas relates that the cards will be first offered in Ri
Happy stores in Rio de Janeiro, Sao Paulo and Brasilia.  The
cards will be available in all 78 Ri Happy stores before the end
of October.

                        *    *    *

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


BANCO NACIONAL: Approves US$112.2-Mil. Financing to Aker Promar
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a US$112.2 million financing to the shipyard Aker
Promar to build two vessels for maritime support of oil
production activities.  The orders were made by Geo do Brasil
Navegacao e Pesquisa Ltda and Dofcon do Brasil Navegacao Ltda,
companies of the Norwegian DOF Group.  The companies' total
investment will be US$165.6 million.

The construction will involve about 400 employees for each
vessel, in Niteroi, where Aker Promar is located, in addition to
indirect jobs generated by the provision of services and supply
of materials and equipment during the phase of construction.

BNDES' support will be made from Fundo de Marinha Mercante or
FMM, which allows financing up to 90% of the construction value.  
Investments will stimulate the technological development and
capacity for the national sector of shipyards and will
contribute to revitalize the domestic naval construction
industry and to retain jobs.  In the current year, the Bank is
expected to release financings of BRL751 million in funds from
Fundo de Marinha Mercante.  BNDES portfolio under FMM totals 56
projects, which demand a financing of BRL13.4 billion and total
investments of BRL16.8 billion.

Geo do Brasil has ordered, in March 2006, the construction of a
vessel for offshore maritime support of the type AYP-ROV-06
(Remote Operated Vehicle Support Vessel), with capacity of up to
4,000 tons per gross tare and having a sub-aqueous robot, which
allows for the operation, installation and maintenance
operations in deep waters of several submerged equipment of the
platform.

Dofcon has also contracted in March 2006, the construction of a
vessel for offshore maritime support of the type AYP-OSCV-66
(Offshore Subsea Construction Vessel), with capacity up to 9,000
tgt, used for submarine construction in deep waters.  

Both will help the maritime drilling and oil production
platforms operating in the Brazilian Continental Platform, with
delivery forecasted to begin in 2008.

Aker Promar has been holding a portfolio of projects that allows
operation without interruption throughout recent years, thanks
to the company's technical capacity and punctuality.  
Incorporated in 1996, Aker is controlled by the Norwegian Aker
Yards, which has experience and tradition in the sector of
offshore vessel construction.

Expectations for the maritime service market are promising, due
to the growing investments in development and production on
offshore oil and gas fields, mainly the ones at the deep waters
of Bacia de Campos.  With respect to the naval industry, the
investment forecast is US$5 billion annually, throughout the
next years with Petrobras' fleet renewal, expansion of the fleet
of vessels for logistic support to platforms, and acquisition of
new platforms.

                        *    *    *

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.  


BANCO NACIONAL: Loans BRL112.2MM to SEST & SENAT for Expansion
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a joint financing to Servico Social de Transporte or
SEST and Servico Nacional de Aprendizagem do Transporte or
SENAT, for BRL112.2 million.  The loan will be used for the
expansion of the national assistance network for workers in the
transportation sector and their families, at the areas of
professional qualification, medical/odontological assistance,
culture, leisure and sports.

The SEST/SENAT system was created by Confederacao Nacional do
Transporte under the form of two nonprofit civil entities to
assist about 2.5 million workers of the sector and their
families, responsible for an income generation corresponding to
6.5% of the Gross Domestic Product.

In the last two years, about 2 million people were assisted by
SEST in medical and odontological consultations, in addition to
social activities, while SENAT performed qualification and
training of around 2.7 million workers.

The health/leisure and professional training services are
provided at the same joint operating units -- the Integrated
Assistance and Professional Centers for Workers in Transports.  
There are presently 119 units in full operation, spread
throughout the states.

Total investment of the project financed by BNDES will be
BRL164.5 million, and the SEST/SENAT system will use BRL52.3
million from its own funds.  The two institutions currently have
2,700 employees and the project provides for the creation of 552
additional direct jobs.

There are thirteen new Assistance and Professional Centers that
will be built and equipped at the cities of:

   -- Sao Paulo (State of Sao Paulo),
   -- Colatina (State of Espirito Santo),
   -- Criciuma (State of Santa Catarina),
   -- Ipatinga (State of Minas Gerais),
   -- Teofilo Otoni (State of Minas Gerais),
   -- Maraba (State of Para),
   -- Londrina (State of Parana),
   -- Palmas (State of Tocantins),
   -- Patos de Minas (State of Minas Gerais),
   -- Ponta Grossa (State of Parana),
   -- Rondonopolis (State of Mato Grosso),
   -- Chapeco (State of Santa Catarina) and
   -- Uruguaiana (State of Rio Grande do Sul).

In addition, the financing includes reformation of two centers
that operate in Rio de Janeiro and Sao Paulo.

In addition to the structure of these Assistance and
Professional Centers, the SEST/SENAT system maintains Assistance
Stations for Workers in Roads located at the main highways.  
These units have a lower structure, but also provide medical and
odontological assistance, in addition to professional
qualification courses.

                        *    *    *

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.  


BRASKEM SA: Fitch Rates Proposed US$275MM Senior Notes at BB+
-------------------------------------------------------------
Fitch has assigned a rating of 'BB+' to Braskem S.A.'s proposed
issuance of US$275 million senior unsecured notes due to 2017.  
The notes are being offered under Rule 144A Regulation S.  The
proceeds of the offering are expected to be used to prepay
existing debts and extend debt maturities. Fitch also maintains
foreign currency and local currency Issuer Default Ratings of
'BB+' and a national scale rating of 'AA(bra)' for Braskem.  The
Rating Outlook is Stable.

Braskem's ratings are supported by the company's moderate
leverage, strong liquidity and debt composition, and solid but
highly volatility operating cash flow.  Braskem also benefits
from its leadership position in the petrochemical industry in
Latin America and Brazil.  The integration of its first and
second generation activities provides the company with a
competitive advantage within the Brazilian petrochemical
industry and has allowed Braskem to achieve substantial
synergies and lower costs.  In addition, growing sales volumes
and a strong pricing environment has enabled the company to
lower debt leverage and increase liquidity over the last several
years.

Braskem is exposed to volatile naphtha prices, which are linked
to the price of a barrel of oil, and represent one of the
company's largest cost components.  Fluctuations in the price of
oil and naphtha may directly impact Braskem's profitability and
sales volumes given the difficulties of passing on price
increases along the petrochemical chain in the international
markets.  In the first half of 2006, Braskem's financial
performance was negatively affected as a result of increasing
feedstock (naphtha) costs that have significantly weakened
credit protection measures to the weaker end of the category.  
During the first half of 2006, Braskem reported a 50% reduction
in EBITDA and resulted in leverage measured by Gross Debt/EBITDA
of 4.0x versus 2.4x in 2005 and 2.2 x in 2004, while Net
Debt/EBITDA was 3.0x at June 30, 2006, compared to 1.4x in 2005
and 1.5x in 2004.

Over the last several years, Braskem's credit protection
measures had shown significant improvement, which should enable
Braskem to operate satisfactorily during this challenging
period.  In additionally, Fitch expects that Braskem will
maintain adequate liquidity that should limit its exposure to
refinancing risk, and that in 2007 the company should improve
leverage to levels more consistent with historical levels.
Financial performance is expected to remain under pressure under
the remainder of the year.

The Brazilian petrochemical industry began experiencing pressure
in the fourth quarter of 2005 due to:

   -- increasing naphtha prices;

   -- a larger additional supply of polyethylene from the
      entrance of a new player in the domestic market;

   -- limited ability to pass on prices within the chain, which
      pressures margins; and

   -- appreciation of the local currency, which negatively
      influenced the sector's revenues and exports.

The average price of naphtha increased 31% in H106 (US$570.00
per ton) compared with the same period in 2005 (US$436.00 per
ton).  In addition, the entrance into the market of a new
producer with a high polyethylene capacity contributed to make
the passing on of greater price increases more difficult.

As of June 30, 2006, Braskem had BRL5.9 billion (US$2.7 billion)
in total debt and BRL1.3 billion (US$621 million) in cash and
financial investments.  During the first half of 2006, the
company generated an EBITDA of BRL670 million, including BRL112
million of non-recurring income, a sharp reduction compared with
the BRL1.3 billion EBITDA registered in the first half of 2005.  
The company's free cash flow in this period was also
significantly affected due to its weak performance and
registered a negative value of BRL1billion.  Cash flow was
affected by:

   -- smaller business margins,

   -- an increase in the need for working capital (BRL444
      million) due to increased exports, by the acquisition of
      shares in Politeno (BRL238 million);

   -- the greater acquisition of naphtha in the local market;
      and

   -- the disbursement of dividends (BRL363 million).

Free cash flow is expected to improve in second half of 2006 due
to a decline in exports, a reduction in the volume of
investments in 2006 from BRL900 million to BRL750 million.

Over the next quarters, Braskem's credit profile will come under
pressure due to the increase in its leveraging and the
challenging scenario that the petrochemical industry should face
in 2006 and 2007. Braskem is concluding studies to realize
investments in a new petrochemical complex in Venezuela.  The
project, in partnership with Pequiven, could involve new risks
for Braskem, depending on the volume of resources required by
the project.

Braskem is the largest petrochemical company in Latin America,
producing 6.0 million tons of primary, secondary and
intermediary petrochemical products, with an integrated
production of first and second-generation petrochemicals.  The
company has grown in the past four years due to the integration
of six Brazilian petrochemical companies:

   -- Copene Petroquimica do Nordeste S.A.,
   -- OPP Quimica S.A.,
   -- Polialden Petroquimica S.A.,
   -- Trikem S.A.,
   -- Proppet S.A. and
   -- Nitrocarbono S.A.

At present the company is organized into four business units:

   -- basic inputs,
   -- polyolefins,
   -- vinyls and
   -- business development.

Braskem is controlled by the Odebrecht Group and Norquisa, which
have 47.5% and 25.4%, respectively, of its voting capital.


CAIXA ECONOMICA: Central Bank Okays Exports Funding
---------------------------------------------------
Local press report that Caixa Economica Federal, the federal
savings bank in Brazil, has received approval from the country's
central bank to provide funding for exports.

Flavio Petro -- Caixa Economica's international business
director -- told Agencia Estado that the company will focus on
financing exports from small and medium-sized enterprises.

Agencia Estado relates that Mr. Petrol said that CEF, however,
still has to decide the amount of money it will allocate for
export financing operations.

Caixa Economica will also launch offices in New York and Tokyo
to increase its international presence, Business News Americas
reports.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Sept. 4, 2006, Moody's Investors Service upgraded these ratings
of Caixa Economica Federal:

   -- long-term foreign currency deposits to Ba3 from Ba1; and

   -- long- and short-term global local currency deposit ratings
      to A1/Prime-1 from A3/Prime-2.

The ratings outlook is stable.


COMPANHIA SIDERURGICA: Wheeling Delays Proposed Merger Vote
-----------------------------------------------------------
Wheeling-Pittsburgh Steel Corp. has decided to delay a vote on
its proposed merger with Companhia Siderurgica Nacional aka CSN,
the Associated Press reports.

The United Steelworkers union told AP that Wheeling's decision
to delay the merger vote indicates that it lacks the shareholder
support it needs to pull off the deal.

However, James G. Bradley -- Wheeling chairperson and chief
executive officer -- denied the union's assertion to AP, saying
that the vote will be held in Jan. 2007 to ensure that the
firm's shareholders have enough time to consider CSN's proposal.

An executive of CSN told AP late last week that the process
shareholders will use to vote on the proposed merger will be
changed, saying that a Nov. board of directors vote will be
separated from the vote on the partnership.

AP underscores that Wheeling wants a merger with CSN.  Its
union, however, supports a takeover attempt by Esmark Inc. -- an
Illinois-based steel service center.  

According to the report, Esmark will propose a slate of
directors, then try to force a merger.

Dave McCall -- the union's District 1 Director -- urged Wheeling
to reassess its plans and support the Esmark deal, AP notes.

Mr. McCall told AP that the Esmark deal brings more financial
strength to the long-struggling Ohio Valley steelmaker.  

"Esmark has a large and diverse steel-buying customer base, is
strategically located in the Midwest, and would bring US$200
million of cash to the proposed merger," AP says, citing Mr.
McCall.

AP emphasizes that James P. Bouchard -- the chief executive
officer of Esmark -- urged the board of directors of Wheeling to
enter into a deal with the firm.

Mr. Bouchard told AP, "We are convinced more than ever that our
proposals are right for Wheeling-Pitt and its shareholders,
employees and other stakeholders."

The structuring of the CSN deal calls for a US$225 million, 9%
interest loan that would convert to 11.8 million shares in the
new firm.  CSN told AP that it would generate the needed cash
for upgrades.

Mr. McCall, however, told AP that the deal piles more debt onto
an overburdened company.  Vowing to fight the CSN merger, Mr.
McCall said he would invoke a "successorship clause" in the
labor contract if necessary.

The report says that the union has the right to reject any deal
that changes controlling interest in Wheeling.  Under the terms
of the proposed merger, CSN would have 49.5% ownership of the
new firm, while Wheeling shareholders would hold 50.5%.

The deal also calls for CSN's ownership to jump to 64% after 18
months, subject to the union's approval.  If the union rejects
their ownership, the US$225 million becomes debt, AP relates,
citing Mr. McCall.

Mr. McCall told AP that CSN has not talked to the union
recently.  CSN told the union many months ago that it would
expect concessions, with the included reductions in profit
sharing and in contributions to the fund that helps pay for
retiree health care, a possible renegotiation of salaries and an
extension of the labor contract.  CSN wanted the union to give
up a contract provision that prevents management from
interfering with attempts to unionize.  That would hinder the
union if it tried to organize CSN's mill in Terre Haute, Ind.

"So, 18 months from now when we get to choose between US$225
million in additional debt or new ownership, that ownership gets
you these other five things.  No amount of fancy footwork can
obscure the fact that the union has clear approval rights on the
CSN deal.  And after our extensive conversations with both CSN
and Wheeling-Pitt management, that approval will not be
forthcoming," AP states, citing Mr. McCall.

AP underscores that Mr. Bouchard said negotiations between
Wheeling and CSN failed to produce a transaction that is either
acceptable to the union or in the best interest of shareholders.

Mr. Bouchard told AP, "The sooner we bring the proposed
combination of Esmark and Wheeling-Pitt to a shareholder vote,
the sooner we can begin to build Wheeling-Pitt's balance sheet
and position the company to reclaim a leadership role in the
steel industry."

However, Mr. Bradley told AP that is impossible, as Esmark does
not have a bid on the table.  He said, "Since its proposal was
rejected, it has never resubmitted a proposal or enhanced its
previous offer."

The board has ignored a July 12 letter, AP says, citing Craig
Bouchard -- the president of Esmark.

The Esmark head told AP, "They have never communicated an
acceptance or rejection to us by phone, in writing or in person.  
This was unprofessional at best, incompetent in the worst."

Wheeling argued that CSN is the partner that assures success,
with both experience in steelmaking and the ability to provide a
steady stream of slab.  Meanwhile, Esmark is a steel distributor
with a limited track record and little management experience in
steel production, Mr. Bradley told AP.

AP relates that Mr. McCall explained that the union is concerned
about a long-term, viable future for the mill.

"We're never going to be millionaires.  We're always going to be
workers and retirees.  It's about 10 and 20 years from now for
us, so we've got to make sure there is investment coming to
Steubenville, not Sao Paolo," Mr. MacCall told AP.

Companhia Siderurgica Nacional 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)'.




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


ASIA PROJECT: Schedules Final Shareholders Meeting on Oct. 4
------------------------------------------------------------
Asia Project Holdings II Co. Ltd.'s final shareholders meeting
will be at 10:30 a.m. on Oct. 4, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


BOSTON BRAZIL: Liquidator Presents Wind Up Accounts on Oct. 5
-------------------------------------------------------------
Boston Brazil High Yield Fund's final shareholders meeting will
be at 11:00 a.m. on Oct. 4, 2006, at the company's registered
office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


CC ASIA: Shareholders Gather for a Final Meeting on Oct. 5
----------------------------------------------------------
CC Asia Trading I L.D.C.'s shareholders will convene for a final
meeting on Oct. 5, 2006, at:

          Maples Finance Limited
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

          Richard Gordon
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands


CMULTI-STRATEGY: Last Shareholders Meeting Is Set for Oct. 4
------------------------------------------------------------
CMulti-Strategy Equity Fund's final shareholders meeting will be
at 10:00 a.m. on Oct. 4, 2006, at:

          Deloitte
          Fourth Floor, Citrus Grove
          P.O. Box 1787, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Stuart Sybersma
          Attn: Mervin Solas
          Deloitte
          P.O. Box 1787, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7500
          Fax: (345) 949-8258


CMULTI-STRATEGY (MASTER): Last Shareholders Meeting Is on Oct. 4
----------------------------------------------------------------
CMulti-Strategy Equity Master Fund's final shareholders meeting
will be at 10:00 a.m. on Oct. 4, 2006, at:

          Deloitte
          Fourth Floor, Citrus Grove
          P.O. Box 1787, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Stuart Sybersma
          Attn: Mervin Solas
          Deloitte
          P.O. Box 1787, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7500
          Fax: (345) 949-8258


DIVI TIARA: Employees Satisfied with Government Intervention   
------------------------------------------------------------
Divi Tiara Beach Resort workers were satisfied with the Cayman
Islands government's efforts to resolve the uncertainty of their
situation, following the closure of the resort, the Government
Information Service reports.

Cayman Net News relates that the resort staff met with Cabinet,
Sister Islands Elected Representatives and a group of key civil
servants on Sept. 15 at the Aston Rutty Centre in Cayman Brac.  
The meeting was aimed at bringing positive resolutions for
former Divi Tiara workers.

The first order of business was to make sure that the former
Divi employees got their severance packages, including any
outstanding wages, Cayman Net says, citing Kurt Tibbetts -- the
head of Government Business in the Cayman Islands.

Michael Hillier -- Divi General Manager -- told Cayman Net that
he expected that this would be finalized in two weeks.

According to Cayman Net, officers of the government's insurance
and pensions were also close by to aid Divi workers with regard
to benefits.

The Government's Department of Employment Relations' staff is
working to assist the unemployed workers to find new jobs,
Cayman Net notes.  This included prospects at the Brac Reef
Resort and the Little Cayman Beach Resort.  Very few of the Divi
employees wanted to relocate to Grand Cayman.

Mr. Tibbetts, according to Cayman Net, said that the principals
of Divi Tiara fulfill obligations on any debts owed to the local
business community.

Cayman Net underscores that the government will be launching
talks with the principals to determine the options they were
considering with regard to the future of Divi Tiara.  

Mr. Tibbetts told Cayman Net that he would do anything to
facilitate the best possible outcome and would definitely not be
tolerating the prospect of the building being neglected to
become a "public eyesore".

The Department of Tourism was at work making sure that tourists
with pre-booked packages were assisted to arrive at satisfactory
alternate arrangements at other facilities in the Cayman Islands
or at Divi Resorts in other locations, Cayman Net says, citing
Mr. Clifford.

Cayman Net emphasizes that Mr. Hillier said that the hotel had
successfully diverted all group packages for the remainder of
2006 to Brac Reef Resort and to Little Cayman Beach Resort.

"I came expecting a bunch of rhetoric -- but I was greatly
disappointed. Minister Tibbetts sounded quite forceful.  
Something will be done," Cayman Net states, citing Clifford
Gibson -- former Divi Tiara cook told Cayman Net.

Mr. Tibbetts told Cayman Net that he was extremely happy to have
brought the team from Grand Cayman.  He said that he was
particularly pleased that all former Divi Tiara workers
attended.

Divi Tiara Beach Resort shut down its operations in Cayman
Islands on Sept. 8, 2006, citing economic reasons.  It will
terminate its 37 employees on Sept. 23.


DIVI TIARA: Employment Relations & Labor to Assist Workers
----------------------------------------------------------
Gene Hydes -- the Assistant Director of Employment Relations --
and Sandra Solomon, a labor officer, will be assisting employees
of Divi Tiara Resort, which has shut down its operations, Cayman
Net News reports.

Kurt Tibbetts, the head of Government Business, said at a
meeting to resolve the uncertainty of the employees' future
following the Divi Tiara closure that the Employment Relations
Department had committed to increased technical resources to the
plight of the former workers, Cayman Net relates.

According to Cayman Net, Mr. Hydes would oversee Divi Tiara's
final payments to workers.

Cayman Net underscores that with regards to the severance
package, Mr. Hydes stated that the law provides for one week's
pay -- at a standard 45-hour week -- for each year, up to 12
years of employment.  

Mr. Hydes told Cayman Net that his department was pressuring
Divi Tiara to be proactive in paying unfair dismissal
compensation to each worker, and not to wait for claims to be
filed.

According to the Government Information Service press release,
unfair dismissal compensation would double the severance package
for workers.

Mervyn Conolly -- the Superintendent of Pensions -- told Cayman
Net that current health insurance coverage for employees would
continue for another 90 days at least or until the holder found
another job.

Cayman Net emphasizes that Amy Wolliston -- the Deputy
Superintendent of Pensions -- would be ensuring compliance with
all pension requirements, including portability.

"Government will stay with the program.  While 40 employees may
not seem a lot, here in Cayman Brac it could have tremendous
spill over effect," Mr. Tibbetts told Cayman Net.

Divi Tiara Beach Resort shut down its operations in Cayman
Islands on Sept. 8, 2006, citing economic reasons.  It will
terminate its 37 employees on Sept. 23.


ENCANTO RESTAURANTS: Final Shareholders Meeting Is on Oct. 4
------------------------------------------------------------
Encanto Restaurants Holdings Inc.'s final shareholders meeting
will be at 10:00 a.m. on Oct. 4, 2006, at:

          Deloitte, Fourth Floor, Citrus Grove
          P.O. Box 1787, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Robert Q. Berlin
          Attn: Sydney J. Coleman
          P.O. Box 1111, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 5122
          Fax: (345) 949 7920


FOUR VALLEYS: Last Shareholders Meeting Is Scheduled for Oct. 4
---------------------------------------------------------------
Four Valleys Limited's final shareholders meeting will be at
10:30 a.m. on Oct. 4, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


HYPER-RABBIT: Invites Shareholders for a Final Meeting on Oct. 5
----------------------------------------------------------------
Hyper-Rabbit Open Limited's shareholders will convene for a
final meeting on Oct. 5, 2006, at:

          Maples Finance Limited
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

          Richard Gordon
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands


HYPERGLOBAL FUND: Sets Final Shareholders Meeting on Oct. 5
-----------------------------------------------------------
Hyperglobal Fund L.D.C.'s shareholders will convene for a final
meeting on Oct. 5, 2006, at:

          Maples Finance Limited
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

          Richard Gordon
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands


LONGHORN LIMITED: Final Shareholders Meeting Is Set for Oct. 4
--------------------------------------------------------------
Longhorn Limited's final shareholders meeting will be at 10:00
a.m. on Oct. 4, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


MARYLEBONE ROAD: Last Day to File Proofs of Claim Is on Oct. 6
--------------------------------------------------------------
Marylebone Road CBO I Ltd.'s creditors are required to submit
proofs of claim by Oct. 6, 2006, to the company's liquidator:

          David Dyer
          Deutsche Bank (Cayman) Limited
          P.O. Box 1984GT, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Oct. 6 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


MIRAI LIMITED: Calls Shareholders for a Final Meeting on Oct. 4
---------------------------------------------------------------
Mirai Limited's final shareholders meeting will be at 10:00 a.m.
on Oct. 4, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


MTU LTD: Invites Shareholders for a Final Meeting on Oct. 4
-----------------------------------------------------------
MTU Ltd.'s final shareholders meeting will be at 10:00 a.m. on
Oct. 4, 2006, at:

          Deloitte, Fourth Floor, Citrus Grove
          P.O. Box 1787, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Stuart Sybersma
          Attn: Chris Rowland
          Deloitte
          P.O. Box 1787, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7500
          Fax: (345) 949-8258


PASADENA CDO: Proofs of Claim Filing Deadline Is Set for Oct. 6
---------------------------------------------------------------
Pasadena CDO Pass Through Notes Ltd.'s creditors are required to
submit proofs of claim by Oct. 6, 2006, to the company's
liquidator:

          David Dyer
          Deutsche Bank (Cayman) Limited
          P.O. Box 1984GT, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Oct. 6 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


RS PROPERTY: Calls Shareholders for a Final Meeting on Oct. 4
-------------------------------------------------------------
RS Property Investment Limited's final shareholders meeting will
be at 10:30 a.m. on Oct. 4, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


SEAGATE TECH: Redeeming Outstanding 8% Senior Notes Due 2009
------------------------------------------------------------
Seagate Technology has called for full redemption on
Oct. 25, 2006, its 8% Senior Notes Due 2009.  The aggregate
principal amount of Notes issued and outstanding remains at
US$400 million.

The redemption price for the Notes is US$1,040 per US$1,000
principal amount of Notes, plus accrued interest to, but
excluding, the Redemption Date.  Accordingly, interest will
cease to accrue on all Notes after the close of business on
October 24, 2006.

A Notice of Redemption is being sent by U.S. Bank National
Association, the trustee for the Notes, to all registered
holders of the Notes. Copies of the Notice of Redemption and
additional information related to the procedure for redemption
may be obtained from U.S. Bank National Association by calling
+1-415-273-4512.

Headquartered in Scotts Valley, California, and registered in
Cayaman Islands, Seagate Technology (NYSE: STX) --
http://www.seagate.com/-- designs, manufactures and markets   
hard disc drives, and provides products for a wide-range of
Enterprise, Desktop, Mobile Computing, and Consumer Electronics
applications.  The company is registered in the Cayman Islands.

                        *    *    *

Moody's Investors Service has confirmed on July 17, 2006, the
ratings of Seagate Technology HDD Holdings and upgraded the
ratings of Maxtor Corp., now a wholly owned subsidiary of
Seagate Technology US Holdings, following the completion of its
acquisition on May 19, 2006, and subsequent guaranteeing of
Maxtor's debt by Seagate.  This concludes the review initiated
by Moody's on Dec. 21, 2005.  The review was prompted by the
company's announcement of its intention to acquire Maxtor in an
all-stock transaction for approximately US$1.9 billion. The
ratings outlook is stable.

Moody's confirmed these ratings:

     -- Corporate Family Rating: Ba1; and
     -- SGL Rating of 1.

Moody's upgraded these ratings:

   Seagate Technology HDD Holdings:

     -- US$400 million senior notes 8%, due 2009: to Ba1


SL LIMITED: Final Shareholders Meeting Is Scheduled for Oct. 4
--------------------------------------------------------------
SL Limited's final shareholders meeting will be at 10:00 a.m. on
Oct. 4, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


TARNOW LEASING: Creditors Must Submit Proofs of Claim by Oct. 6
---------------------------------------------------------------
Tarnow Leasing Inc.'s creditors are required to submit proofs of
claim by Oct. 6, 2006, to the company's liquidator:

          David Dyer
          Deutsche Bank (Cayman) Limited
          P.O. Box 1984GT, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Oct. 6 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


TOP LTD: Shareholders Gather for a Final Meeting on Oct. 4
----------------------------------------------------------
Top Ltd.'s final shareholders meeting will be at 10:00 a.m. on
Oct. 4, 2006, at:

          HSBC Financial Services (Cayman) Limited
          P.O. Box 1109, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

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


TOTO LTD: Shareholders Convene for a Final Meeting on Oct. 4
------------------------------------------------------------
Toto Ltd.'s final shareholders meeting will be at 12:00 p.m. on
Oct. 4, 2006, at:

          MBT Trustees (Cayman) Ltd.
          3rd Floor, Piccadilly Center
          Elgin Avenue George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Paolo Giacomelli
          P.O. Box 30622 S.M.B.
          Grand Cayman, Cayman Islands
          Tel: (345) 945-8859
          Fax: (345) 949-9793/4




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


ARAMARK CORP: Moody's Lowers Rating on Sr. Notes Due 2012 to B2
---------------------------------------------------------------
Moody's Investors Service downgraded the 5% senior notes due
2012 of ARAMARK Services, Inc., to B2 from Baa3, confirmed the
Baa3 ratings on the senior notes due 2007 and 2008, and assigned
a corporate family rating of Ba3 to ARAMARK Corp., ARAMARK
Services' holding company parent.  The B2 rating on the 5%
senior notes due 2012 and the Ba3 corporate family rating are
under review for possible downgrade.

Moody's placed all the credit ratings of ARAMARK on review for
possible downgrade on May 1, 2006, following the announcement
that it received a proposal from the company's CEO and a group
of investors to acquire all of the outstanding shares of common
stock.  In Aug. 2006, ARAMARK announced that it had signed a
definitive merger agreement under which the company's Chairman
and Chief Executive Officer and a group of investment funds will
acquire the company in a transaction valued at approximately
US$8.3 billion, including the assumption or repayment of
approximately US$2 billion of debt.  The merger agreement was
approved by the board of directors based on the unanimous
recommendation of a special committee consisting of independent
directors.  Following such announcement, in August Moody's
confirmed the Baa3 rating on the 7.1% senior notes due 2006 of
ARAMARK Services and left all other senior note issues on review
for possible downgrade.  This rating action reflected the
uncertainty as to whether the senior notes maturing in 2007-2012
would be refinanced in connection with the acquisition.

ARAMARK recently disclosed the expected financing package for
the acquisition in its proxy statement filed with the U.S.
Securities and Exchange Commission.  The assignment of a Ba3
corporate family rating to ARAMARK reflects the substantial
increase in debt levels and weakening of credit metrics expected
in the post-acquisition capital structure.  Based on information
included in ARAMARK's proxy statement, Moody's believes that pro
forma Debt to EBITDA will likely exceed 6 times and that a
corporate family rating in the single B rating category is
possible upon conclusion of the review. The rating review will
focus on ARAMARK'S post-acquisition capital structure, liquidity
position and operating strategies.

The confirmation of the Baa3 rating on the senior notes due
2007-2008 reflects the company's intention to refinance these
notes in connection with the acquisition.  Based on disclosure
in ARAMARK's proxy statement, Moody's understands that the
company does not intend to refinance its 5% senior notes due
2012, which lack guarantees from ARAMARK's major operating
subsidiaries.  The downgrade of the 5% senior notes due 2012 to
B2, two notches below the corporate family rating, reflects the
expected structural subordination of those notes to high levels
of secured and guaranteed debt in the post-acquisition capital
structure.

The acquisition is expected to be completed by late 2006 or
early 2007, subject to receipt of stockholder approval.  The
investor group has obtained equity and debt financing
commitments for the transactions contemplated by the merger
agreement.  There is no financing condition to the proposed
transaction.

Moody's took these rating actions:

   -- Affirmed US$125 million senior unsecured notes due 2006,
      rated Baa3;

   -- Confirmed US$300 million senior unsecured notes due 2007,
      rated Baa3;

   -- Confirmed US$31 million senior unsecured notes due 2007,
      rated Baa3;

   -- Confirmed US$300 million senior unsecured notes due 2008,
      rated Baa3;

   -- Downgraded US$250 million senior unsecured notes due 2012,
      to B2 from Baa3;

   -- Downgraded senior unsecured shelf registration, to (P) B2
      from (P) Baa3;

   -- Downgraded senior subordinated shelf registration, to
      (P) B2 from (P) Ba1; and

   -- Assigned corporate family rating, rated Ba3;

These ratings remain on review for possible downgrade:

   -- US$250 million senior unsecured notes due 2012, rated B2;
   -- Senior unsecured shelf registration, rated (P) B2;
   -- Senior subordinated shelf registration, rated (P) B2; and
   -- Corporate family rating, rated Ba3.

ARAMARK Corp., a managed services company headquartered in
Philadelphia, Pennsylvania, provides or manages a variety of
services, including food and support services, and uniform
rental and sales.  The company's revenues were approximately
US$11.5 billion for the twelve-month period ending
June 30, 2006.  It has approximately 240,000 employees serving
clients in 20 countries, including Mexico, Brazil and Chile.




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


CA INC: Purchases 41,225,515 Shares for US$989 Million
------------------------------------------------------
CA, Inc., disclosed the final results of its tender offer that
expired at 5 p.m., New York City time, on Sept. 14, 2006.  In
the tender offer, CA offered to purchase for cash up to
40,816,327 shares of its common stock, par value US$0.10 per
share, including the Associated Rights to Purchase Series One
Junior Participating Preferred Stock, Class A at a per share
purchase price of not less than US$22.50 nor greater than
US$24.50, net to the seller in cash, without interest.  In the
tender offer, CA also reserved the right to purchase up to
11,345,647 additional shares without amending or extending the
offer.

CA has accepted for purchase 41,225,515 shares at the per share
purchase price of US$24.00 per share, for a total price of
approximately US$989 million, in accordance with the terms and
conditions of the tender offer.

These results are consistent with the preliminary results that
were previously reported.  A final count by Mellon Investor
Services LLC, the depositary for the tender offer, indicates
that 41,225,515 shares of common stock were validly tendered and
not validly withdrawn at prices at or below the purchase price.

The depositary will promptly issue payment for the shares
validly tendered and accepted under the tender offer.  Any
shares validly tendered and not purchased due to conditional
tenders or shares tendered at a price above the per share
purchase price will be returned promptly to the tendering
stockholders.

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

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

                          About CA

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

                        *    *    *

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

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


COLOMBIA TELECOM: Will Offer Imagenio Satellite TV Services
-----------------------------------------------------------
Colombia Telecomunicaciones aka Colombia Telecom will offer
Satellite TV services in Colombia, according to a report by news
site Telcommunity.com.

Business News Americas relates that parent firm Telefonica will
install its Imagenio brand, providing a package of services
launched in Chile and in Peru.

Imagenio targets video on demand for the subscription market
through digital TV delivery.

Telcommunity.com states that Telefonica is eyeing Brazil and
Argentina for its expansion plans.

Telefonica, says BNamericas, will offer the satellite TV
services in two different packages:

          -- bundled with fixed line service alone, or

          -- as a triple play offering, the same strategy
             employed in Chile and Spain.

Telefonica has registered the Imagenio brand with SIC, the
industrial and commercial regulator of Colombia, BNamericas
reports.

                        *    *    *

Telefonica SA acquired a majority stake in Colombia Telecom from
the government in April.  The Colombian government said that
it's better to be the owner of a minority stake of a thriving
business than a majority holder of a dying one, in defense to
criticisms from various sectors.  The purchase included the
assumption of COP7.58 trillion debt, which included a US$3.26
billion pension liability and other debts totaling US$449
million.


ECOPETROL: 10 Firms Submit Details for Transport Market Analysis
----------------------------------------------------------------
An official of Ecopetrol, the state-owned oil firm of Colombia,
told Business News Americas that 10 firms handed in information
for the market analysis it will conduct on the transport of bulk
liquid fuels along the Magdalena river to Atlantic coast ports.

As reported in the Troubled Company Reporter-Latin America on
Aug. 28, 2006, Ecopetrol launched the market analysis for the
liquid fuels transport, asking information like cost estimates
and transport capacities from firms to draft the terms of a
future process on contractor selection for the transport of the
liquid fuels.  Companies were given until Sept. 5 to submit
information.

BNamericas relates that Ecopetrol aims to award the contract or
contracts by the end of 2006.

The Ecopetrol official told BNamericas that two international
firms were among those that submitted information.  The
official, however, declined to disclose who those companies
were.

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

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


* COLOMBIA: State Power Firms Invest COP242B in First Half 2006
---------------------------------------------------------------
The mines and energy ministry of Colombia told state news
service Servicio de Noticias del Estado that state power firms
invested about COP242 billion in the first half of 2006.

Business News Americas relates that in the first half of 2006
the firms made these investments:

        -- COP80.3 billion by Essa,
        -- COP42.1 billion by Cens,
        -- COP39.1 billion by Ebsa, and
        -- COP38.9 billion by EH.

According to a statement, the state firms made the most of the
investment on power loss reduction and infrastructure.

The companies reported COP49.7 billion first half 2006 net
profits while in the same period last year, they posted COP33.3
billion net losses, BNamericas states.

                        *    *    *

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 U B A
=======


* CUBA: ONGC Wants to Acquire Petroleum Assets in Country
---------------------------------------------------------
Oil and Natural Gas Corp. aka ONGC, India's state-owned oil
company -- told Reuters that it is eyeing Cuba for petroleum
assets to feed its increasing energy needs.

Reuters relates that ONGC said that it was pursuing
opportunities to import liquefied natural gas or LNG.

R.S. Sharma -- the chairperson of ONGC -- told shareholders that
the firm is also interested in partnerships with national oil
firms outside India to explore oil and gas, Reuters notes.

According to the report, ONGC has aggressively bid for
exploration rights abroad and in India.  

LNG would be an attractive business for ONGC, Reuters states,
citing Mr. Sharma.  

"Natural gas, the emerging fuel of the decade, and its
derivatives have huge business potential.  Keeping this in view,
your company (ONGC) is aggressively pursuing LNG opportunities,"
Mr. Sharma told Reuters.

                        *    *    *

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: Fraud Case Hearing to Continue Today
------------------------------------------------------------
The National District's 1st Collegiate Court in the Dominican
Republic will continue the hearing on the Banco Intercontinental
SA aka Baninter case on Sept. 22, Dominican Today reports.

Dominican Today relates that Judges Antonio Sanchez, Pilar
Rufino Diaz and Esmirna Gisselle Mendez rejected two motions
from the defense of Jesus Troncoso Ferrua, one of Baninter's
senior executives.

The court ratified that the accusation the Justice Ministry
filed on Feb. 9, 2006, can't have the desired effect on the
accused, based on several articles of the Criminal Procedural
Code, according to Dominican Today.

Dominican Today notes that the judges said that the Supreme
Court Penal Chamber's decision constitutes an order to start the
hearing on Mr. Ferrua.

The decision can neither be reviewed nor revoked in this stage
of the proceedings, 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.


FALCONBRIDGE: Proceeds with Subsequent Acquisition of Novicourt
---------------------------------------------------------------
Xstrata's subsidiary Falconbridge Limited and Falconbridge's
subsidiary Novicourt Inc. will proceed with a subsequent
acquisition transaction by way of amalgamation pursuant to which
Falconbridge will acquire the remaining common shares of
Novicourt which were not tendered to Falconbridge's offer dated
June 26, 2006, to purchase all of the outstanding common shares
of Novicourt that Falconbridge did not already own.  The board
of directors of Novicourt approved the amalgamation on
Sept. 18, 2006.

Falconbridge holds directly or indirectly a number of common
shares sufficient to enable all required corporate and
securities laws approvals to be obtained at the special meeting
of shareholders of Novicourt to be held on 17 October 2006 for
the purpose of approving the amalgamation.  The management
information circular of Novicourt in connection with the special
meeting was mailed to registered owners and sent to
intermediaries for mailing to beneficial owners earlier today.

Once the subsequent acquisition transaction is completed,
Falconbridge expects that the Novicourt common shares will be
delisted from the Toronto Stock Exchange and that Novicourt will
cease to be a reporting issuer.

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

                        *    *    *

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


TAG-IT PACIFIC: Earns US$654,642 in Second Quarter Ended June 30
--------------------------------------------------------------
Tag-It Pacific, Inc., filed its second quarter financial
statements for the three months ended June 30, 2006, with the
U.S. Securities and Exchange Commission.

For the second quarter ended June 30, 2006, the Company reported
net income of US$654,642 on US$14,246,087 of net sales compared
with a US$12,476,638 net loss on US$15,639,646 of net sales for
the same period in 2005.

At June 30, 2006, the Company's balance sheet showed
US$29,930,927 in total assets, US$28,858,231 in total
liabilities, and US$1,072,696 in total stockholders' equity.

Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?120a

                     Going Concern Doubt

As reported in the Troubled Company Reporter on June 7, 2006,
Singer Lewak Greenbaum & Goldstein, LLP, in Los Angeles, Calif.,
raised substantial doubt about Tag-It Pacific, Inc.'s ability to
continue as a going concern after auditing the Company's
consolidated financial statements for the year ended
Dec. 31, 2005.  The auditor pointed to the Company's incurred
net lossesand accumulated deficiencies.

                    About Tag-It Pacific

Tag-It Pacific, Inc., distributes apparel items to fashion
manufacturers United States, Asia, Mexico, the Dominican
Republic, and Central and South America.  Also it offers formed
wire metal zippers for the jeans and sportswear industries.


VIVA INTERNATIONAL: Inks Purchase Agreement with River Hawk
-----------------------------------------------------------
Viva International, Inc., disclosed that the asset purchase
agreement with River Hawk Aviation, Inc., was signed on
Sept. 19, 2006.  The parties originally planned for a signing on
Sept. 18, was pushed back a day due to travel complications.

The agreement calls for US$2.5 million to acquire, from River
Hawk, the inventory of aircraft parts and accessories and the
issuance of up to 3.5 million preferred shares to acquire the
intellectual property, customer lists, computer software,
pending contracts goodwill and other intangibles.

Robert Scott, Viva's Chief Financial Officer and a Director, "I
am pleased to announce that we have finalized the River Hawk
asset acquisition. River Hawk currently generates approximately
US$1.8 million in annual revenues but we expect this Company to
generate in the range of US$2.5 million for 2007 and could
easily be expandable to US$3.0 million and beyond.  The benefits
of this transaction also bring us the management talent of
Calvin Humphrey.  Cal's experience in previously operating
regional air carriers will be of immediate benefit to Viva and
his industry network has already delivered several opportunities
for Viva to consider.  Getting the River Hawk agreement
completed sets in motion a new direction for Viva and I look
forward to the impact that Cal Humphrey will undoubtedly make on
our organization."

                  About Viva International

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

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

At present, the Company maintains executive offices in Michigan.

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

                    Going Concern Doubt

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




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


PARMALAT GROUP: Board Approves 2006 Semi-Annual Report
------------------------------------------------------
Parmalat S.p.A.'s Board of Directors has approved Parmalat
Group's Semiannual Report at June 30, 2006, which confirms a
further improvement in the Group's operating performance.

1. Semiannual Report at June 30, 2006

                         The Group

In the first half of 2006, the Group's revenues from continuing
operations totaled EUR1,967.2 million, or 6.5% more than the
EUR1,847.8 million booked in the first six months of 2005.

EBITDA increased by 21.3% to EUR159.8 million (EUR131.7
million in the first half of 2005).  The return on sales also
improved, rising from 7.1% in 2005 to 8.1% this year, owing in
part to a reduction of about EUR7 million in the allowance for
doubtful accounts and other provisions compared with 2005.

[A] breakdown of the operating data by country (geographic
region):

                         First half 2005
                        (EUR in millions)

                             Net             As % of
                        revenues    EBITDA  revenues
                        --------    ------  --------
        Italy              598.0      37.4       6.3
        Canada             603.4      43.9       7.3
        Australia          192.2      16.4       8.5
        Africa
          (consolidated
          data)            149.1      15.4      10.3
        Spain              109.1       8.3       7.6
        Portugal            32.9       3.4      10.3
        Russia              19.1       2.4      12.7
        Romania              5.0       1.5      29.7
        Nicaragua           12.6       1.6      12.7
        Cuba                 0.5      (0.3)    (66.4)
        Venezuela           70.4       5.2       7.3
        Ecuador              0.0      (0.4)    n.m.
        Colombia            45.9       4.7      10.3
        Other
          (Italcheese,
          holding cos.,
          eliminations)      9.5      (7.9)    n.m.
                        --------    ------  --------
        Group total      1,847.8     131.7       7.1
                        ========    ======  ========

                         First half 2006
                        (EUR in millions)

                             Net             As % of
                        revenues    EBITDA  revenues
                        --------    ------  --------
        Italy              580.9      48.1       8.3
        Canada             648.1      54.1       8.4
        Australia          218.4      15.0       6.9
        Africa
          (consolidated
          data)            178.2      19.5      10.9
        Spain               99.7       2.2       2.2
        Portugal            39.0       4.1      10.5
        Russia              26.5       3.8      14.4
        Romania              5.5       1.1      20.9
        Nicaragua           13.2       2.0      14.9
        Cuba                 3.6       1.0      28.8
        Venezuela           91.1      14.5      15.9
        Ecuador              1.0      (0.3)    (27.7)
        Colombia            55.5       5.5       9.9
        Other
          (Italcheese,
          holding cos.,
          eliminations)      6.7     (10.8)     n.m.
                        --------    ------  --------
        Group total      1,967.2     159.8       8.1
                        ========    ======  ========

[Parmalat's unit in Ecuador] resumed its operating activity in
2006.

In Italy, consolidated revenues were slightly lower (-2.9%) than
in the first half of 2005, totaling EUR580.9 million (EUR598.0
million for the first six months of 2005).

Parmalat said the main reason for the difference is a decrease
in revenues from sales of materials that are not part of the
Group's standard product line and are resold at no profit
(-EUR19.6 million, from EUR35.3 million to EUR15.7 million).  
Net of the sales, cumulative six-month revenues amount to
EUR562.7 million at June 30, 2005 and EUR565.2 million at
June 30, 2006, for a gain of EUR2.5 million (+0.4%).

A better sales mix with a greater preponderance of products with
greater value added, an effective cost-cutting policy and a
reduction of working capital writedowns and other writedowns
helped boost EBITDA from EUR37.4 million to EUR48.1 million.  As
a result, the return on sales improved from 6.3% in 2005 to 8.3%
this year.

In Canada, revenues for the first half of 2006 totaled EUR648.1
million, or 7.4% more than in the same period last year
(EUR603.4 million), benefiting also of the positive exchange
rate.

EBITDA increased by EUR10.3 million (+23.2%), rising from
EUR43.9 million in the first six months of 2005 to EUR54.1
million in the same period this year, with the return on sales
improving to 8.4% (7.3% in 2005).

The improvements in revenues and EBITDA were achieved even
though 2006 had fewer days available for deliveries and billing
(one week less).  The reasons for the improvements were a better
product mix, successful marketing programs and cost reductions,
Parmalat said.

In Australia, first-half revenues grew to EUR218.4 million in
2006, or 13.6% more than the EUR192.2 million earned in the same
period last year.

Despite a 5.5% gain in unit sales, EBITDA decreased by
EUR1.4 million, falling from EUR16.4 million in the first six
months of 2005 to EUR15.0 million in the same period this year.  
However, this shortfall should be made up entirely in the second
half of the year, when the Business Unit is expected to benefit
from a decrease in the cost of raw milk and an increase in unit
sales generated by advertising campaigns launched earlier this
year.

In Africa, revenues were up sharply in the first half of 2006,
rising to EUR178.2 million (19.5% more than the EUR149.1 million
booked in the same period last year), boosting EBITDA to
EUR19.5 million (EUR15.4 million in the first six months of
2005), or 10.9% of revenues (10.3% in 2005).

Higher unit sales made possible by a rapidly expanding local
economy and a better product mix are the main reasons for these
gratifying results.

With the exception of the Spanish operations, which are
continuing to struggle under difficult circumstances, the
Business Units in all of the other countries reported
significantly better results than they did in the first half of
2005, particularly in South America (Colombia and Venezuela).

On June 30, 2006, the Group's net indebtedness was
EUR311.5 million, down from the EUR369.3 million it owed at the
end of 2005.  The net indebtedness of the Venezuelan operations
(about EUR150 million) accounts for a significant portion of the
Group's total borrowings of EUR311.5 million.

EBIT totaled 76.8 million euros.

The 2005 result (EUR104.9 million) is not comparable because it
refers to the Extraordinary Administration, which benefited of
extraordinary positions typical to the accrual of funds for
contested bankruptcy debts.

The Group's interest in the net profit amounted to EUR17.0
million at June 30, 2006, compared with EUR39.6 million in the
first half of 2005.

                       Parmalat S.p.A.

The Group's Parent Company reported net revenues of
EUR504.5 million, about 4% less than the EUR525.7 million booked
in the first six months of 2005.  The impact of lower sales of
materials that are not part of the Group's standard product
line, offset in part by increased shipments of functional
products with a high value added, accounts for this decrease.

EBITDA totaled EUR32 million, or EUR8.7 million more than the
EUR23.3 million reported at June 30, 2005.  The return on sales
also improved, rising to 6.3% compared with 4.4% in the first
half of 2005.

According to Parmalat, the improvement reflects a greater
preponderance of functional products in the sales mix and the
fact that the losses incurred by Company-owned licensees, which
in 2005 had been reflected in the Company's operating data, are
now being attributed to Parmalat Distribuzione Alimenti, a
company included in the Italian SBU that is currently
implementing an efficiency-boosting reorganization plan.

The net profit earned by the Group's Parent Company in the first
half of 2006 amounted to EUR2.0 million.

The 2005 result (EUR19.1 million) is not comparable because it
refers to the Extraordinary Administration, which benefited of
extraordinary positions typical to the accrual of funds for
contested bankruptcy debts.

As a result of the approval of the Proposal of Composition with
Creditors, the Group's Parent Company is virtually debt free.

During the first half of 2006, net financial assets decreased
from EUR324.5 million at Dec. 31, 2005, to EUR291.6 million at
June 30, 2006, despite positive cash flow from operations.  
Payments made to satisfy preferential and pre-deduction claims
and cover legal and restructuring costs account for this
decrease.

               Outlook for the Balance of 2006

In the months ahead, the industrial actions undertaken in the
various countries and the seasonal factors that characterize
the second half of the year seem to justify expectations of a
significant increase in EBITDA.

The considerations and the nonrecurring gains booked after
June 30, 2006, such as the settlement with Banca Popolare
Italiana and the sale of equity investments, offset in part by
the cost of legal actions, should result in higher profits both
for Parmalat S.p.A. and the Group.

Barring any significant changes in interest rates or the Group's
scope of consolidation, the same variables should also produce a
significant reduction in net indebtedness.

2. Code of Conduct

The Board of Directors also agreed to update the Company's Code
of Conduct in preparation for the adoption later this year of
the Organization and Control Model required by Legislative
Decree No 231/2001.

An updated Code of Conduct is will be available at
http://www.parmalat.com/  

3. Extension of Section 304 temporary Injunction

The Board of Directors was informed that the judge of the
District Court of the Southern District of New York has extended
the temporary injunction deadline to Oct. 17, 2006.


                         Parmalat S.p.A.
                    Reclassified Balance Sheet
                          June 30, 2006

NON-CURRENT ASSETS                             EUR1,686,000,000
   Intangibles                                      572,900,000
   Property, plant and equipment                    131,100,000
   Non-current financial assets                     966,100,000
   Deferred-tax assets                               15,900,000

AVAILABLE-FOR-SALE ASSETS,
   NET OF CORRESPONDING LIABILITIES                   5,200,000

NET WORKING CAPITAL                                 133,700,000
   Inventories                                       38,500,000
   Trade receivables                                228,400,000
   Other current assets                             186,200,000
   Trade payables                                  (223,800,000)
   Other current liabilities                        (95,700,000)
                                               ----------------
INVESTED CAPITAL NET OF
   OPERATING LIABILITIES                          1,825,000,000

PROVISIONS FOR EMPLOYEE BENEFITS                    (41,000,000)

PROVISIONS FOR RISKS AND CHARGES                   (225,200,000)

PROVISION FOR LIABILITIES ON
   CONTESTED PREFERENTIAL AND
   PRE-DEDUCTION CLAIMS                             (23,700,000)
                                               ----------------
NET INVESTED CAPITAL                           EUR1,535,000,000
                                               ================

Covered by:
SHAREHOLDERS' EQUITY                           EUR1,826,600,000
   Share capital                                  1,640,100,000
   Reserve for contested liabilities
      and claims of late-filing creditors
      convertible exclusively into
      share capital                                 225,600,000
   Other reserves                                   (11,700,000)
   Retained earnings
      (Loss carryforward)                           (29,300,000)
   Profit (Loss) for the period                       2,000,000

NET BORROWINGS                                     (291,600,000)
   Loans payable to banks
      and other lenders                              14,500,000
   Other financial assets                             5,100,000
   Cash and cash equivalents                       (311,200,000)
                                               ----------------
TOTAL COVERAGE SOURCES                         EUR1,535,000,000
                                               ================


                         Parmalat S.p.A.
                  Reclassified Income Statement
                         First half 2006

TOTAL NET REVENUES                               EUR519,500,000
   Revenues from operations                         504,500,000
   Other revenues                                    15,000,000

OPERATING EXPENSES                                 (487,000,000)
   Purchases, services and misc. costs             (432,800,000)
   Labor costs                                      (54,300,000)
                                               ----------------
      Subtotal                                       32,500,000

Writedowns of receivables
   and other provisions                                (500,000)
                                               ----------------
EBITDA                                               32,000,000

Depreciation, amortization and
   writedowns of non-current assets                  (9,400,000)

Other revenues and expenses:
   Legal fees for actions to void
      and actions for damages                       (25,300,000)
   Addition to provision for losses
       of investee companies                         (5,300,000)
   Miscellaneous revenues & expenses                    900,000
                                               ----------------
EBIT                                                 (7,200,000)

Financial income                                     13,300,000
Financial expense                                    (3,000,000)
                                               ----------------
PROFIT (LOSS) BEFORE TAXES AND THE
   RESULT FROM DISCONTINUING OPERATIONS               3,100,000

Income taxes                                         (1,800,000)
                                               ----------------
NET PROFIT (LOSS) FROM
   CONTINUING OPERATIONS                              1,300,000

Net profit (loss) from
   discontinuing operations                             600,000
                                               ----------------
NET PROFIT (LOSS) FOR THE PERIOD                   EUR2,000,000
                                               ================


                         Parmalat S.p.A.
         Statement of Changes in Net Financial Position
                         First half 2006

Net borrowings at beginning of period            EUR324,500,000

Changes during the period:
   Cash flow from operating activities              (53,700,000)
   Cash flow from investing activities                9,400,000
   Cash flow from financing activities               13,600,000
   Cash flow from discontinuing operations            2,800,000
   Miscellaneous items                               (5,000,000)
                                               ----------------
Total changes during the period                     (32,900,000)
                                               ----------------
Net borrowings at end of period                  EUR291,600,000
                                               ================


                          Parmalat Group
             Reclassified Consolidated Balance Sheet
                          June 30, 2006

NON-CURRENT ASSETS                             EUR2,206,900,000
   Intangibles                                    1,451,500,000
   Property, plant and equipment                    652,300,000
   Non-current financial assets                      70,200,000
   Deferred-tax assets                               32,900,000

AVAILABLE-FOR-SALE ASSETS,
   NET OF CORRESPONDING LIABILITIES                  11,600,000

NET WORKING CAPITAL                                 492,200,000
   Inventories                                      372,600,000
   Trade receivables                                509,100,000
   Other current assets                             337,900,000
   Trade payables                                  (494,300,000)
   Other current liabilities                       (233,100,000)
                                               ----------------
INVESTED CAPITAL NET OF
   OPERATING LIABILITIES                          2,710,700,000

PROVISIONS FOR EMPLOYEE BENEFITS                   (111,300,000)

PROVISIONS FOR RISKS AND CHARGES                   (398,200,000)

PROVISION FOR LIABILITIES ON
   CONTESTED PREFERENTIAL AND
   PRE-DEDUCTION CLAIMS                             (23,700,000)
                                               ----------------
NET INVESTED CAPITAL                           EUR2,177,500,000
                                               ================

Covered by:
SHAREHOLDERS' EQUITY                           EUR1,866,000,000
   Share capital                                  1,640,100,000
   Reserve for contested liabilities
      and claims of late-filing creditors
      convertible exclusively into
      share capital                                 225,600,000
   Other reserves                                   (46,300,000)
   Retained earnings
      (Loss carryforward)                              (300,000)
   Profit (Loss) for the period                      14,100,000
   Minority interest                                 32,800,000
      in shareholders' equity

NET BORROWINGS                                      311,500,000
   Loans payable to banks
      and other lenders                             757,000,000
   Loans payable to investee companies
   Other financial assets                            (7,000,000)
   Financial accrued income
      and prepaid expenses
   Cash and cash equivalents                       (443,800,000)
                                               ----------------
TOTAL COVERAGE SOURCES                         EUR2,177,500,000
                                               ================


                          Parmalat Group
            Reclassified Consolidated Income Statement
                         First half 2006

TOTAL NET REVENUES                             EUR1,982,000,000
   Revenues from operations                       1,967,200,000
   Other revenues                                    14,800,000

OPERATING EXPENSES                               (1,819,200,000)
   Purchases, services and misc. costs           (1,581,900,000)
   Labor costs                                     (237,300,000)
                                               ----------------
      Subtotal                                      162,800,000

Writedowns of receivables
   and other provisions                              (3,000,000)
                                               ----------------
EBITDA                                              159,800,000

Depreciation, amortization and
   writedowns of non-current assets                 (49,000,000)

Other revenues and expenses:
   Legal fees for actions to void                   (25,300,000)
      and actions for damages
   Restructuring costs                               (7,200,000)
   Miscellaneous revenues & expenses                 (1,500,000)
                                               ----------------
EBIT                                                 76,800,000

Financial income                                     16,700,000
Financial expense                                   (54,300,000)
Interest in profit (loss) of companies
   valued by the equity method
                                               ----------------
PROFIT (LOSS) BEFORE TAXES                           40,500,000

Income taxes                                        (24,100,000)
                                               ----------------
NET PROFIT (LOSS) FROM
   CONTINUING OPERATIONS                             16,400,000

Net profit (loss) from
   discontinuing operations                             600,000
                                               ----------------
NET PROFIT (LOSS) FOR THE PERIOD                  EUR17,000,000
                                               ================


                          Parmalat Group
         Statement of Changes in Net Financial Position
                         First half 2006

Net borrowings at beginning of period            EUR369,300,000

Changes during the period:
   Cash flow from operating activities               29,600,000)
   Cash flow from investing activities               83,100,000
   Cash flow from discontinuing operations         (139,700,000
   Translation impact and miscellaneous items       (30,800,000)
                                               ----------------
Total changes during the period                     (57,800,000)
                                               ----------------
Net borrowings at end of period                  EUR311,500,000
                                               ================


                          Parmalat Group
               Breakdown of Net Financial Position
                          June 30, 2006

Net borrowings
   Loans payable to banks
      and other lenders                          EUR757,000,000
   Loans payable to investee companies                5,400,000
   Other financial assets                            (7,000,000)
   Financial accrued income
      and prepaid expenses                             (100,000)
   Cash and cash equivalents                       (443,800,000)
                                               ----------------
Total                                            EUR311,500,000
                                               ================


                          Parmalat Group
           Reconciliation of Change in Net Indebtedness
                     And Cash Flow Statement
                        (EUR in Millions)

                                       Indebtedness
                         Cash          Net of Cash
                         And Cash      And Cash
                         Equivalents   equivalents   Net amount
                         -----------   -----------   ----------
Balance at beginning
of period                     (502.7)        872.0        369.3

   Cash flow from
   Operating activities         29.6                       29.6

   Cash flow from
   Investing activities         83.1                       83.1

   New borrowing               (10.4)         10.4

   Loan repayment               90.7         (90.7)

   Cash flow from
   discontinuing
   operations                 (139.7)                    (139.7)

   Translation impact
   and misc. items               8.4         (36.4)       (30.8)

   Other changes                (2.8)                      (2.8)
                         -----------   -----------   ----------
Balance at end of period      (443.8)        755.3        311.5
                         ===========   ===========   ==========

                       About Parmalat

The Parmalat Group's 40-some brand product line includes milk,
yogurt, cheese, butter, cakes and cookies, breads, pizza, snack
foods and vegetable sauces, soups and juices and employs over
36,000 workers in 139 plants located in 31 countries on six
continents.  18% of Parmalat's operations is located in South
America.  Parmalat S.p.A., filed winding up petitions against
Food and Dairy in the Grand Court of the Cayman Islands on
Dec. 24, 2003.  Parmalat USA Corp. filed for chapter 11
protection on Febr. 24, 2004 (Bankr. S.D.N.Y. Case No.
04-11139).  Gary Holtzer, Esq., and Marcia L. Goldstein, Esq.,
at Weil Gotshal & Manges LLP, represent the Debtors.  When the
U.S. Debtors filed for bankruptcy protection, they reported more
than US$200 million in assets and debts.  The U.S. Debtors
emerged from bankruptcy on April 13, 2005.  (Parmalat Bankruptcy
News, Issue No. 78; Bankruptcy Creditors' Service, Inc.,
215/945-7000, http://bankrupt.com/newsstand/)


PETROECUADOR: Will Buy Premium Diesel from Arkham
-------------------------------------------------
Petroecuador said in a statement that it will purchase about
400,000 barrels of premium diesel from Arkham -- a Swiss oil
trader -- to supply Quito.

Business News Americas relates that Arkham will first deliver
about 200,000 barrels of the diesel from Sept. 29 to Oct. 1.

According to the statement, Arkham will supply the 200,000
barrels for a differential of US$11.15 a barrel, applied to Gulf
Coast diesel prices with an agreement to sell an another 200,000
barrel with the same specifications.

The diesel from Arkham will have maximum 0.04% sulfur content in
conformity with the Metropolitan Ordinance 146, BNamericas
notes.

BNamericas relates that Arkham offered on Monday a US$12.88 per
barrel differential, along with Swiss oil trader Masefield
America.

However, Petroecuador declared the tender void and requested
both firms to resubmit bids on the same day, BNamericas reports.

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 A T E M A L A
=================


DOLE FOOD: Product Warning Cues S&P to Hold Ratings on NegWatch
---------------------------------------------------------------
Standard & Poor's Ratings Services' ratings for Westlake
Village, California-based Dole Food Co. Inc. remained on
CreditWatch with negative implications following the company's
announcement that consumers should dispose of Dole-branded
packaged fresh spinach products (including "Spinach," "Baby
Spinach," and "Spring Mix" names) stamped with a Best-If-Used-By
date of Aug. 17, through Oct. 1, 2006.  The warning follows an
outbreak of E. coli in several states that was believed to have
originated from spinach products.

"The ratings initially were placed on CreditWatch with negative
implications on Aug. 9, 2006, following materially weaker-than-
expected financial performance in the first half of fiscal 2006,
which typically represents a substantial portion of cash flow"
said Standard & Poor's credit analyst Alison Sullivan.

On Sept. 15, 2006, a voluntary recall was issued by Natural
Selection Foods LLC of packaged fresh spinach that the company
produced and packaged under 28 different brand names, including
Dole.  All spinach items under the Dole label were produced and
packaged by Natural Selection Foods.  

As part of Standard & Poor's resolution of the CreditWatch
listing, the rating agency will monitor the investigation for
further developments and any impact on future pre-packaged salad
sales or damage to the Dole brand image.

Standard & Poor's also will review Dole's operating and
financial plans with management before resolving the CreditWatch
listing.

Dole Food Company Inc., headquartered in Westlake Village,
California, has revenues of US$5.8 billion.  Dole grows and
sources from independent growers and transports bananas grown
primarily in Colombia, Costa Rica, Ecuador, Guatemala and
Honduras for markets principally in North America, Europe, the
Mediterranean and selected Asian markets.


DOLE FOOD: Moody's Reviews Long-Term Ratings & May Downgrade
------------------------------------------------------------
Moody's Investors Service placed the long-term ratings of Dole
Food Company Inc. and Dole's wholly owned subsidiary -- Solvest,
Ltd. -- under review for possible downgrade.

The review reflects Dole's weaker than expected operating
performance and the deterioration in its debt protection
measures.  It also reflects the uncertainty surrounding the
longer-term impact that structural changes in the key EU banana
market will have on Dole's operating performance.

Moody's review will focus on:

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

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

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

These ratings were placed under review for possible downgrade:

   Dole Food Company, Inc.

     * Corporate family rating at B1

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

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

     * Senior unsecured notes at B3

     * Senior unsecured shelf at (P)Caa1

     * Senior subordinated shelf at (P)Caa2

     * Junior subordinated shelf at (P)Caa2

   Solvest, Ltd.

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

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

Dole Food Company Inc., headquartered in Westlake Village,
California, has revenues of US$5.8 billion.  Dole grows and
sources from independent growers and transports bananas grown
primarily in Colombia, Costa Rica, Ecuador, Guatemala and
Honduras for markets principally in North America, Europe, the
Mediterranean and selected Asian markets.




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


* HAITI: Eligible for Debt Relief Under IMF Program
---------------------------------------------------
An official from the International Monetary Fund told the
Associated Press that Haiti is qualified for debt relief under
the IMF program.

Takatoshi Kato, IMF's deputy managing director, said in a
statement that the executive board of the IMF determined in a
debt sustainability analysis conducted earlier this month that
Haiti was eligible for assistance.

AP states that the release, however, did not say the amount of
debt relief Haiti may receive.

According to AP, Haiti has been suffering from oppression and
instability as well as an almost constant political turmoil for
the past two decades.  The nation is struggling to recover from
a 2004 revolution that led to the downfall of then president
Jean-Bertrand Aristide and drove the country deeper into
despair.

The statement says that the IMF executive board acknowledged
Haiti's satisfactory track record under the 2004-2006 emergency
aid program.

"They (the IMF board) welcomed the new government's commitment
to policies aimed at sustaining macroeconomic stability and
creating conditions for sustainable growth," AP relates, citing
Mr. Kato.

The IMF board members stated that Haiti is still faced with
daunting challenges, particularly in the areas of security,
social conditions, and sustained income growth, Mr. Kato told
AP.

AP underscores that the IMF directors urged Haiti to go on with
its efforts to:

          -- improve governance,
          -- strengthen public institutions,
          -- promote private-sector-led growth, and
          -- orient public expenditure and the budget toward
             poverty-reducing activities.

Mr. Kato encouraged Haiti to continue the macroeconomic,
structural, and social reforms, AP reports.

                        *    *    *

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


SUGAR COMPANY: Farmers Group Ditches Aracatu Bidding Alliance
-------------------------------------------------------------
The All Island Jamaica Cane Farmers Association or AIJCFA has
abandoned its partnership with Brazil's Aracatu, saying that the
latter is not interested enough in making a bid for the purchase
of the Sugar Company of Jamaica, the Jamaica Observer reports.

Allan Rickards, the chairperson of AIJCFA told The Observer,
"Over the months we have been getting the feeling that the
Brazilians were not so enthusiastic, so we have concluded
therefore that they are no longer interested."

In recent weeks Aracatu postponed a number of meetings with
AIJCFA without giving any reasons, The Observer says, citing Mr.
Rickards.  

The Observer notes that Mr. Rickards said, "A number of dates on
which we should have met have come and gone and have not been
kept.  I, for example, was supposed to have gone to Brazil and
they just keep changing the dates.  Then they were supposed to
come in early September, but they called and cancelled, then
they were supposed to come on the 14th of September and there
was no word from them to say that the visit was cancelled."

The Business Observer relates that Mr. Rickards said the AIJCFA
has since intensified partnership discussions with Dhampur Sugar
Mills of India.

Mr. Rickards told The Observer, "Fortunately for the cane
farmers we did not put our eggs in one basket, and so we been
having some talks with Dhampur."

Mr. Rickards, says The Observer, explained that AIJCFA had long
started to consider that there were comparative advantages
resulting from a partnership with Dhampur Sugar.

"Chief among them is the fact they were accustomed to dealing
with a large number of small cane farmers whereas the Aracatu
are not accustomed to dealing with a lot of small farmers," Mr.
Rickards told The Observer.

According to the report, Dhampur Sugar produces a wide range of
sugar as well as an assortment of chemicals.  The firm is also
involved in co-generation.

Negotiations between AIJCFA and Dhampur Sugar have been
extremely cordial, Mr. Rickards told The Observer.

                        About Aracatu

Aracatu is a medium-sized operation in Brazil with assets of
about US$150 million and annual revenues of US$200 million.  It
operates sugar, alcohol and ethanol plants in Brazil.  It has
its own distribution network.

                     About Sugar Company

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


* JAMAICA: Proceeds with Sugar Industry Transformation
------------------------------------------------------
The government of Jamaica is carrying on with its transformation
of its local sugar sector, despite discouragement from the
International Monetary Fund aka IMF.

According to Radio Jamaica, the IMF said that it is against the
diversification of the sugar industry into cane-based activities
like ethanol and co-generation, believing that the move won't be
cost-effective.

Radio Jamaica states that the IMF said that focus should be
placed on helping cane farmers make the transition to other
activities.

However, Roger Clarke -- Jamaica's agriculture mnister --
dismissed the IMF's suggestions, saying that they were
simplistic.

The Jamaican government will proceed with its original plan,
Minister Clarke told RJR News Center.

                        *    *    *

On May 26, 2006, Moody's Investors Service upgraded Jamaica's
rating under a revised foreign currency ceiling:

   -- Long-term foreign currency rating: Ba3 from B1 with
      stable outlook.




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


AMERICAN AXLE: Sending Axle Work on Camaro Car in Mexico Plant
--------------------------------------------------------------
American Axle & Manufacturing's workers at its Buffalo plant
were disappointed when the company decided to send work on
General Motor's new Camaro muscle car to Mexico, Business First
of Buffalo reports.

"I'm disappointed and disgusted," Kevin Donovan, the United Auto
Workers union's Region 9 assistant director, told Business
First.
"The plant worked hard to make American Axle a success which
gave them the opportunity to build plants in Mexico.  Now the
company is taking work that we worked real hard to bring here
and is putting it into Mexico."

Mr. Donovan told Business First that 130 local jobs probably
would have been involved in producing components for the Camaro,
which is being introduced in the 2008 model year.  The plant has
about 650 hourly workers.  Several hundred more are on layoff,
some since early this year.

Plant officials assured workers that American Axle will
aggressively pursue other new work for the Delavan Avenue
facility, the same report says.

                    About American Axle  

American Axle & Manufacturing -- http://www.aam.com/--    
manufactures, engineers, designs and validates driveline and  
drivetrain systems and related components and modules, chassis  
systems and metal-formed products for light trucks, sport
utility vehicles and passenger cars.  In addition to locations
in the United States, AAM also has offices or facilities in
Brazil, China, England, Germany, India, Japan, Mexico, Poland,
Scotland and South Korea.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 17, 2006,  
Standard & Poor's Ratings Services assigned its 'BB' rating to
the new US$50 million senior unsecured term loan of American
Axle & Manufacturing Inc. (BB/Negative/--).  

The corporate credit ratings on American Axle and parent
company, American Axle & Manufacturing Holdings Inc., are 'BB'.  
The rating outlook is negative.  The company has about US$717
million of lease-adjusted debt and US$425 million of underfunded
employee benefit liabilities.


COMVERSE TECHNOLOGY: S&P Maintains Negative Watch on BB- Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services' 'BB-' corporate credit and
senior unsecured debt ratings on Woodbury, New York-based
Comverse Technology Inc. remained on CreditWatch with negative
implications, where they were placed on March 15, 2006.

"The ratings were placed on CreditWatch following the company's
announcement that its board of directors had created a special
committee to review matters relating to the company's stock
option grants, which has resulted in the ongoing delay of the
filing of financial statements, potential restatement of prior
periods, and departure of members of senior management," said
Standard & Poor's credit analyst Ben Bubeck.

Furthermore, while the NASDAQ Listing Qualifications Panel
granted the company continued listing on the NASDAQ, this
extension was subject to the condition that Comverse files its
financial statements by Sept. 25, 2006, or face delisting.  
Under indentures to Comverse's convertible notes, a stock
exchange delisting could give note holders the right to put the
notes back to the company for cash.

However, it should be noted that the company reported cash
balances of nearly US$1.9 billion as of July 31, 2006, compared
with approximately US$500 million of notes.  Therefore, the
company is expected to be able to meet a potentially accelerated
maturity with current balance sheet liquidity.

Comverse recently announced that the NASDAQ Listing and Hearing
Review Council issued a stay of, and called for a review of, the
NASDAQ Listing Qualifications Panel's decision to establish a
deadline of Sept. 25, 2006, for the company to file its delayed
financial statements, and informed the company that it may
submit in writing additional information for consideration by
Oct. 13, 2006.

Standard & Poor's will continue to monitor developments with
Comverse, including the financial restatements, changes to the
strategy and corporate governance practice that may stem from
the management departures, potential litigation, and debt
maturity acceleration to determine what, if any, affect they
have on debt ratings.

Comverse Technology, Inc. (NASDAQ: CMVT) --
http://www.comverse.com/-- provides software and systems that
enable network-based multimedia enhanced communication and
billing services.  Over 450 communication and content service
providers in more than 120 countries use Comverse products to
generate revenues, strengthen customer loyalty and improve
operational efficiency.  In Latin America, Comverse has
operations in Argentina, Brazil and Mexico.


FORD MOTOR: Attorney General Lockyer Files Global Warming Suit
--------------------------------------------------------------
Attorney General Bill Lockyer has filed a lawsuit against
U.S. and Japanese auto manufacturers, alleging their vehicles'
emissions have contributed significantly to global warming,
harmed the resources, infrastructure and environmental health of
California, and cost the state millions of dollars to address
current and future effects.

"Global warming is causing significant harm to California's
environment, economy, agriculture and public health.  The
impacts are already costing millions of dollars and the price
tag is increasing," said Mr. Lockyer.  "Vehicle emissions are
the single most rapidly growing source of the carbon emissions
contributing to global warming, yet the federal government and
automakers have refused to act.  It is time to hold these
companies responsible for their contribution to this crisis."

Filed in U.S. District Court for the Northern District of
California, the complaint names as defendants: Chrysler Motors
Corp., General Motors Corp., Ford Motor Company, Toyota Motor
North America, Inc., Honda North America, and Nissan North
America.  The lawsuit is the first of its kind to seek to hold
manufacturers liable for the damages caused by greenhouse gases
that their products emit.  Mr. Lockyer filed the lawsuit on
behalf of the People of the State of California.

The complaint alleges that under federal and state common law
the automakers have created a public nuisance by producing
"millions of vehicles that collectively emit massive quantities
of carbon dioxide," a greenhouse gas that traps atmospheric heat
and causes global warming.  Under the law, a "public nuisance"
is an unreasonable interference with a public right, or an
action that interferes with or causes harm to life, health or
property.  The complaint asks the court to hold the defendants
liable for damages, including future harm, caused by their
ongoing, substantial contribution to the public nuisance of
global warming.

As stated in the complaint, the automakers produce vehicles that
emit a combined 289 million metric tons of carbon dioxide in the
United States each year.  Those emissions, the complaint
alleges, currently account for nearly 20 percent of the carbon
dioxide emissions in the United States and more than 30 percent
in California.  The defendants rank "among the world's largest
contributors to global warming and the adverse impacts on
California," according to the complaint.

The filing comes as Mr. Lockyer fights the auto industry's
attempt to invalidate California's landmark global warming
regulations curbing tailpipe emissions.  In their federal-court
lawsuit, the automakers claim the regulations, adopted in 2005
through legislation sponsored by Assembly Member Fran Pavley,
are pre-empted by federal law.  Mr. Lockyer is defending the
rules against the industry's legal challenge.

Mr. Lockyer noted the Bush Administration's inaction on global
warming has forced California and other states to take action on
their own.  The U.S. Supreme Court is currently reviewing a
lawsuit filed by Lockyer, 11 other Attorneys General, two cities
and major environmental groups challenging the U.S.
Environmental Protection Agency's refusal to regulate greenhouse
gas emissions.  Numerous parties have submitted amicus briefs
supporting the states, including climate scientists, three
former EPA Administrators, former Secretary of State Madeleine
Albright, and environmental and religious groups.

In addition, Mr. Lockyer, along with nine other state Attorneys
General, the District of Columbia and the City of New York,
filed a lawsuit earlier this year challenging the Bush
Administration's new fuel economy standards for SUVs and light
trucks.  That complaint alleges the rules fail to address the
effects on the environment and global warming.

"We are seeing the harmful impacts of global warming today, and
if we continue with 'business as usual,' we can expect to see
more and larger impacts in the future," said Mr. Lockyer.  "As a
coastal state, an agricultural state, and a state that relies on
its Sierra snow pack, California has an enormous stake in acting
now to combat global warming."

                     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 Brazil and Mexico 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.


FORD MOTOR: S&P Lowers Ratings on Ten Single-Issue Transactions
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on 10
U.S. single-issue synthetic ABS transactions related to Ford
Motor Co. (B/Negative/B-3) and Ford Motor Credit Co.
(B/Negative/B-3) and removed them from CreditWatch, where they
were placed with negative implications Aug. 21, 2006.

The Sept. 19, 2006, lowering of the ratings on Ford and its
related entities and their subsequent removal from CreditWatch
negative does not have any immediate rating impact on the Ford-
related ABS supported by collateral pools of consumer auto loans
or auto wholesale loans.

Each of the securitizations with ratings lowered and removed
from CreditWatch is weak-linked to the long-term corporate
credit, senior unsecured debt, or preferred stock ratings on
Ford or Ford Credit. Either Ford or Ford Credit provides the
underlying collateral or referenced obligations in the affected
securitizations, as indicated in the list below.

The Sept. 19, 2006, downgrades of Ford, Ford Credit, and all
related entities and the removal of the ratings from CreditWatch
reflect the seemingly relentless deterioration in Ford's North
American automotive operations, which are now expected to remain
unprofitable until at least 2009.  

     Ratings Lowered and Removed from Creditwatch Negative
   
       Corporate Backed Trust Certificates Ford Motor Co.
            Debenture-Backed Series  2001-36 Trust

                 Rating
       Class    To   From            Role
       A-1      B    B+/Watch Neg    Underlying collateral
       A-2      B    B+/Watch Neg    Underlying collateral
      
       Corporate Backed Trust Certificates, Ford Motor Co.
                   Note-Backed Series 2003-6 Trust

                 Rating
       Class    To   From            Role
       A-1      B    B+/Watch Neg    Underlying collateral
    
               CorTS Trust for Ford Debentures

                Rating
       Class    To   From            Role
       Certs    B    B+/Watch Neg    Underlying collateral
    
               CorTS Trust II for Ford Notes

                 Rating
       Class    To   From            Role
       Certs    B    B+/Watch Neg    Underlying collateral

       Freedom Certificates US Autos Series 2004-1 Trust

                Rating
      Class    To   From            Role
      A        B    B+/Watch Neg    Underlying collateral
      X        B    B+/Watch Neg    Underlying collateral
     
                   PPLUS Trust Series FMC-1

                Rating
      Class    To   From            Role
      Certs    B    B+/Watch Neg    Underlying collateral
    

               PreferredPLUS Trust Series FRD-1

                Rating
      Class    To   From            Role
      Certs    B    B+/Watch Neg    Underlying collateral
     
                  SATURNS Trust No. 2003-5

                Rating
      Class    To   From            Role
      Units    B    B+/Watch Neg    Underlying collateral
    
        Trust Certificates (TRUCs) Series 2002-1 Trust

               Rating
      Class   To   From             Role
      A-1     B    B+/Watch Neg     Underlying collateral
    
          STEERS Credit-Backed Trust Series 2002-3 F

                 Rating
      Class    To    From            Role
      Certs    CCC   CCC+/Watch Neg  Referenced obligation


GENERAL MOTORS: Atty. General Lockyer Files Global Warming Suit
---------------------------------------------------------------
Attorney General Bill Lockyer has filed a lawsuit against
U.S. and Japanese auto manufacturers, alleging their vehicles'
emissions have contributed significantly to global warming,
harmed the resources, infrastructure and environmental health of
California, and cost the state millions of dollars to address
current and future effects.

"Global warming is causing significant harm to California's
environment, economy, agriculture and public health.  The
impacts are already costing millions of dollars and the price
tag is increasing," said Mr. Lockyer.  "Vehicle emissions are
the single most rapidly growing source of the carbon emissions
contributing to global warming, yet the federal government and
automakers have refused to act.  It is time to hold these
companies responsible for their contribution to this crisis."

Filed in U.S. District Court for the Northern District of
California, the complaint names as defendants: Chrysler Motors
Corp., General Motors Corp., Ford Motor Company, Toyota Motor
North America, Inc., Honda North America, and Nissan North
America.  The lawsuit is the first of its kind to seek to
hold manufacturers liable for the damages caused by greenhouse
gases that their products emit.  Mr. Lockyer filed the lawsuit
on behalf of the People of the State of California.

The complaint alleges that under federal and state common law
the automakers have created a public nuisance by producing
"millions of vehicles that collectively emit massive quantities
of carbon dioxide," a greenhouse gas that traps atmospheric heat
and causes global warming.  Under the law, a "public nuisance"
is an unreasonable interference with a public right, or an
action that interferes with or causes harm to life, health or
property.  The complaint asks the court to hold the defendants
liable for damages, including future harm, caused by their
ongoing, substantial contribution to the public nuisance of
global warming.

As stated in the complaint, the automakers produce vehicles that
emit a combined 289 million metric tons of carbon dioxide in the
United States each year.  Those emissions, the complaint
alleges, currently account for nearly 20 percent of the carbon
dioxide emissions in the United States and more than 30 percent
in California.  The defendants rank "among the world's largest
contributors to global warming and the adverse impacts on
California," according to the complaint.

The filing comes as Mr. Lockyer fights the auto industry's
attempt to invalidate California's landmark global warming
regulations curbing tailpipe emissions.  In their federal-court
lawsuit, the automakers claim the regulations, adopted in 2005
through legislation sponsored by Assembly Member Fran Pavley,
are pre-empted by federal law. Lockyer is defending the rules
against the industry's legal challenge.

Mr. Lockyer noted the Bush Administration's inaction on global
warming has forced California and other states to take action on
their own.  The U.S. Supreme Court is currently reviewing a
lawsuit filed by Lockyer, 11 other Attorneys General, two cities
and major environmental groups challenging the U.S.
Environmental Protection Agency's refusal to regulate greenhouse
gas emissions.  Numerous parties have submitted amicus briefs
supporting the states, including climate scientists, three
former EPA Administrators, former Secretary of State Madeleine
Albright, and environmental and religious groups.

In addition, Mr. Lockyer, along with nine other state Attorneys
General, the District of Columbia and the City of New York,
filed a lawsuit earlier this year challenging the Bush
Administration's new fuel economy standards for SUVs and light
trucks.  That complaint alleges the rules fail to address the
effects on the environment and global warming.

"We are seeing the harmful impacts of global warming today, and
if we continue with 'business as usual,' we can expect to see
more and larger impacts in the future," said Mr. Lockyer.  "As a
coastal state, an agricultural state, and a state that relies on
its Sierra snow pack, California has an enormous stake in acting
now to combat global warming."

                  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, including Mexico and Brazil, and its vehicles are
sold in 200 countries.

                        *    *    *

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

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

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

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


HIPOTECARIA SU: S&P Assigns BB- Counterparty Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
counterparty credit rating to Hipotecaria Su Casita S.A. de C.V.
Sociedad de Objeto Limitado or HSC.  At the same time, Standard
& Poor's assigned its 'BB-' debt rating to HSC's US$150 million
senior notes.  The outlook is stable.

The ratings assigned to HSC are limited by its relatively low
coverage of nonperforming assets, its moderate profitability
that constrains its capabilities to create additional credit-
loss provisions, aggressive growth targets, and its exposure to
the real estate sector dynamics in Mexico.  "The ratings on HSC
are supported by its improving but still limited funding sources
for mortgage loans, its good market position, and its more
sophisticated risk-management capabilities that compare well to
other Sofoles," said Standard & Poor's credit analyst Francisco
Suarez.  The indirect 40% stake of Caja de Ahorros y Monte de
Piedad de Madrid (Caja Madrid; A+/Positive/A-1), is a rating
consideration as HSC is expected to benefit from the potential
enhancements in loan origination capabilities and controls that,
in turn, will strengthen its market position.  Nevertheless,
Standard & Poor's does not factor any direct or indirect support
from Caja Madrid on the payment of HSC's financial obligations.

The notes rank equally with all of HSC's unsecured obligations.  
The notes are junior to all of HSC's and its subsidiary
guarantor's existing and future secured indebtedness with
respect and up to the value of the assets securing such
indebtedness, as well as any indebtedness in HSC's subsidiaries-
currently nonexistent.  The company's key ratios that trigger
certain limiting covenants are well above the minimum required
levels.

HSC reports delinquencies below the average of other rated
Sofoles, but has a low coverage of NPAs that in addition to
past-due loans over 90 days includes nonperforming restructured
loans and foreclosed assets. Individual concentrations are not
important, as its portfolio is mortgage-oriented; however, HSC's
business is highly correlated to the dynamics of the real estate
market in Mexico, an industry that could eventually be hit
during downturns.  As of June 2006, coverage of NPAs is 41%,
slightly above the average of rated Sofoles.  Residential
construction loans (bridge loans) are more capital consuming but
represent a small part (17%) of HSC's portfolio and are
adequately reserved, in contrast to what we consider to be a
more adequately reserved mortgage portfolio.  Even adjusting for
Sociedad Hipotecaria Federal first-loss guarantee in its
mortgage portfolio, coverage of NPAs is 51%.

Due to the nature of its portfolio, the vast majority of its
revenues are recurring in nature.  Nevertheless, HSC's high
operating costs constrain the firm's ability to increase its
coverage of NPAs, and reduce the company's internal capital
generation and capital accretion.  Due to aggressive growth
targets set by HSC, and although it has successfully surpassed
growth constrains by using securitizations, higher internal
capital generation would help to reduce the strain in its
capitalization.

Sofoles need to reduce their dependence on SHF for mortgage
funding, as the latter will exit the market in October 2009, and
as increased competition demands cheaper funding to mitigate
pressures on the interest margin.  In spite of aggressive loan
origination goals, HSC funded almost half of its originated
loans without SHF, which is good but not yet diverse enough.  
The currency mismatch by the issuance of the notes is moderate,
as they represent 6% of total liabilities, while overall
liquidity and maturity risks are managed adequately.

HSC is the largest independently owned Sofol in Mexico, and, as
of June 2006 manages the third-largest mortgage portfolio among
Mexican banks and Sofoles with 105,601 mortgages.  The inclusion
of institutional investors in the ownership of HSC such as Caja
Madrid, and the International Finance Corp. (AAA/Stable/A-1+),
ultimately strengthens its market position with enhanced control
capabilities, and above-average corporate governance practices
when compared to the rest of the industry.  In addition, such
ownership benefits from an already sophisticated management
team.

The outlook is stable.  Standard & Poor's expects HSC to
capitalize on its current business position and its mortgage
loan generation capabilities.  If the firm is also successful in
substantially increasing its coverage of NPAs, sustaining better
core-earnings generation, and further diversifying its funding
sources, positive rating actions could follow.  Negative rating
actions will be the result of a strong deterioration in asset
quality indicators, HSC's inability to capitalize the benefits
from its ownership, or on-balance or off-balance liabilities
negatively affecting the firm's liquidity.


SATELITES MEXICANOS: Judge Drain Approves Compensation System
-------------------------------------------------------------
The Honorable Robert D. Drain of the U.S. Bankruptcy Court for
the Southern District of New York, approved the request of
Satelites Mexicanos, S.A. de C.V., to establish uniform
procedures for the payment and reimbursement of various court-
approved professionals' fees and expenses.

Judge Drain ruled that each professional whose retention has
been approved by the Court may seek, in its first request for
compensation and reimbursement of expenses, payment for work
performed and reimbursement for expenses incurred during the
period beginning on the date of the professional's retention and
ending on Sept. 20, 2006.

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

The Debtor's request was pursuant to Sections 105(a) and 331 of
the Bankruptcy Code and Rule 2014 of the Federal Rules of
Bankruptcy Procedure.

In conformity with the standing General Order of the Bankruptcy
Court for the Southern District of New York establishing
procedures for monthly compensation and reimbursement of
expenses of professionals:

    (a) Each Professional seeking compensation will serve a
        monthly statement, on or before the 20th day of each
        month following the month for which payment is sought,
        on:

        -- the Debtor and its counsel, Milbank, Tweed, Hadley &
           McCloy LLP;

        -- Wilmer Cutler Pickering Hale and Dorr LLP, counsel
           for the Ad Hoc Senior Secured Noteholders' Committee;

        -- Akin Gump Strauss Hauer & Feld LLP, counsel for the
           Ad Hoc Existing Bondholders' Committee;

        -- Weil, Gotshal & Manges LLP, counsel for the Loral
           entities; and

        -- the Office of the United States Trustee.

    (b) The Monthly Statement does not need to be filed with the
        Court and a copy does not have to be delivered to the
        presiding bankruptcy judge's chambers.

    (c) Monthly Statements must contain a list of the
        individuals who provided services during the statement
        period, their billing rates, the aggregate hours spent,
        a reasonably detailed breakdown of the disbursements
        incurred, and contemporaneously maintained time entries.

    (d) The parties receiving Monthly Statements -- the Notice
        Parties -- will have 15 days to review a statement.  If
        a Party objects to the payment or reimbursement, it
        must, by no later than 35 days after the end of the
        month for which compensation is sought, serve a written
        notice of objection explaining the nature of the
        objection, upon:

        -- the Professional whose statement is objected to; and
        -- the Notice Parties.

    (e) At the expiration of the 35-day period, and in the
        absence of objections, the Debtor will promptly pay 80%
        of the fees and 100% of the expenses in each Monthly
        Statement.

    (f) If the Debtor receives an objection to a fee statement,
        it will withhold payment on that objected portion of the
        fee statement and promptly pay the remainder of the fees
        and disbursements.

    (g) If the parties to an objection are able to resolve their
        dispute, then the Debtor will promptly pay that portion
        of the fee statement, which is no longer subject to an
        objection.

    (h) All unresolved objections will be preserved and
        presented to the Court at the next interim or final fee
        application hearing.

    (i) An objection will not prejudice the objecting party's
        right to object to any fee application made to the Court
        in accordance with the Bankruptcy Code on any ground.

    (j) Every 90 days, but no less frequently than every 120
        days, each of the Professionals will serve and file an
        application for interim or final Court approval and
        allowance of the fees and reimbursement of expenses
        requested.  In the event a plan of reorganization
        becomes effective before the expiration of the 90-day
        period, the period may be shortened on notice by the
        Debtor to the Professionals.

    (k) Any Professional who fails to file an application
        seeking approval of fees and expenses previously paid
        when due:

        * will be ineligible to receive further monthly payments
          of fees until further Court order; and

        * may be required to disgorge any fees paid since the
          retention or the last fee application, whichever is
          later.

    (l) The pendency of an application or a Court order that
        payment of fees or reimbursement of expenses was
        improper as to a particular statement will not
        disqualify a Professional from the future payment of
        fees or reimbursement of expenses.

    (m) Neither the payment of, nor the failure to pay, monthly
        compensation and reimbursement will have any effect on
        the Court's interim or final allowance of compensation
        and reimbursement of any Professional.

    (n) The attorneys for any statutory committee appointed in
        the Debtor's case may collect and submit statements of
        expenses, with supporting vouchers, from members of the
        committee that the attorney represents.  However, the
        reimbursement requests must comply with the Court's
        Administrative Orders dated June 24, 1991, and
        April 21, 1995.

The procedures further establishes that:

    -- Professionals seek, in their first interim fee request,
       payment of fees for work performed and reimbursement
       for expenses incurred during the period beginning on the
       date of the Professional's retention and ending on
       Sept. 20, 2006; and

    -- the first 90-day fee application period conclude on
       Nov. 20, 2006, provided that if a Plan becomes effective
       prior to that date, each professional retained in the
       case will have the time to file a final application for
       compensation and reimbursement of expenses.

The proposed procedures will enable the Debtor to closely
monitor the costs of administration, forecast level cash flows,
and implement efficient cash management procedures.  Moreover,
the procedures will allow the Court and key parties-in- interest
to ensure the reasonableness and necessity of the compensation
and reimbursement sought.

                 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: Panama Unit Prequalified by Fenosa in Power Supply Bid
----------------------------------------------------------------
A spokesperson of Spanish power firm Union Fenosa told Business
News Americas that the firm's unit in Panama prequalified AES
Panama -- AES Corp.'s Panamanian subsidiary -- in a power supply
tender.

According to BNamericas, AES Panama is among the 13 firms Union
Fenosa prequalified after submitting documents for the tender.  
The other firms that could participate in the tender are:

          -- Istmus Hydro Power;
          -- El Porvenir Power;
          -- Hidroelectrica Los Estrechos;
          -- Estrella del Sur;
          -- Hidromaquinas de Panama;
          -- Energia y Transmision;
          -- Samba Bonita Power;
          -- Saltos del Francoli;
          -- Colon Power;
          -- Pedregal Power;
          -- Empresa de Generacion Electrica Fortuna; and
          -- Autoridad del Canal de Panama.

BNamericas relates that the tender is designed to supply UniA3n
Fenosa's Panama operations with 200MW from 2007-20.

The report says that although Union Fenosa opened the firms'
economic offers the bid information was not disclosed.

Union Fenosa will be submitting an evaluation report with its
recommendations to ANSP, Panama's public services regulator, in
charge of awarding the contract BNamericas reports.

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

                        *    *    *

As reported in the Troubled Company Reporter on May 25, 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.


GRUPO BANISTMO: HSBC Opens Tender Offer for Firm's 100% Shares
--------------------------------------------------------------
In a filing with the Panamanian stock exchange, HSBC Asia
Holding -- UK bank HSBC's unit in Netherlands -- disclosed the  
launching of a tender offer on Sept. 20 for 100% of the
outstanding shares of Grupo Banistmo, Business News Americas
reports.

According to BNamericas, the cash tender offer is subject to
HSBC acquiring at least 65% of the 33,629,730 outstanding
shares.  The transaction prices Grupo Banistmo at US$1.77
billion.

The US$52.63 per share offer will expire on Oct. 19, BNamericas
relates.

                        *    *    *

Troubled Company Reporter-Latin America reported on Nov. 9,
2005, Moody's Investors Service affirmed the D+ financial
strength rating and Ba1 foreign currency deposit rating of
Primer Banco del Istmo, S.A. aka Banistmo.  The affirmation
follows the announcement that Banistmo's shareholder, Grupo
Banistmo, S.A., has agreed to purchase between 51% and 60% of
Inversiones Financieras Bancosal S.A., the owner of Banco
Salvadoreno, El Salvador's third largest bank.

These ratings were also affirmed:

   * Long term foreign currency deposit rating: Ba1, with stable
     outlook

   * Short term foreign currency deposit rating: Not Prime




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


DOE RUN: Names Theodore Fox as New Chief Financial Officer
----------------------------------------------------------
The Doe Run Company named Theodore P. Fox, III, as its new chief
financial officer.  With more than 30 years of corporate
financial experience, Mr. Fox will assume responsibility for all
financial functions of the US$1 billion company beginning
Sept. 25.  He will report to Bruce Neil, president and chief
executive officer of The Doe Run Company.

Among his duties, Mr. Fox will be active on the executive
leadership team of The Doe Run Company, helping to guide its
future course as a global supplier of metals and associated
services.  Doe Run employs more than 5,000 people, with U.S.
operations in Missouri, Washington and Arizona, and Peruvian
operations in Cobriza and La Oroya.

Mr. Fox comes to Doe Run from Bunge Limited, an integrated,
global agribusiness and food company, where he served as
controller from 1999 through 2002.  Previously, Mr. Fox served
as the chief financial officer for The Solae Company in St.
Louis, and has worked in financial positions for Amax Inc., a
former NYSE mining company.

"Terry Fox is a welcome addition to our Doe Run team.  He'll
help usher Doe Run into a new phase as we continue to improve
our business by meeting the needs of our customers globally,"
Mr. Neil said.  "Terry's financial leadership will help Doe Run
meet the challenges we face as a global metals company."

Formerly a certified public accountant and a first lieutenant in
the U.S. Army, Fox holds a master's degree in business
administration from UCLA and a bachelor's degree in economics
from the University of Delaware.  He resides in Chesterfield,
Mo.

               About The Doe Run Resources Corp.

The Doe Run Resources Corp. is one of the world's providers of
premium lead and associated metals and services.  The Company is
the largest integrated lead producer in North America and the
largest primary lead producer in the western world.

Doe Run operates an integrated primary lead operation and a
recycling operation located in Missouri, referred to as Buick
Resource Recycling.

Fabricated Products, Inc., a wholly owned subsidiary of Doe Run,
operates a lead fabrication operation located in Arizona and a
lead oxide business located in Washington.

Doe Run Peru S.R.L., an indirect Peruvian subsidiary, operates a
smelter in La Oroya, Peru, one of the largest polymetallic
processing facilities in the world, producing an extensive
product mix of non-ferrous and precious metals, including
silver, copper, zinc, lead and gold.  Doe Run Peru also has a
copper mining and milling operation in Cobriza, Peru in the
region of Huancavelica, which is approximately 200 miles
southeast of La Oroya in Peru.

           Doe Run Peru Going Concern Doubt

As reported in the Troubled Company reporter-Latin America on
Aug. 10, 2006, Doe Run Peru has significant capital requirements
under environmental commitments and guarantees and substantial
contingencies related to taxes and has significant debt service
obligations under the revolving credit facility, each of which,
if not satisfied, could result in a default under Doe Run Peru's
credit agreement and collectively raise substantial doubt about
Doe Run Peru's ability to continue as a going concern.

Doe Run Peru continues to have substantial cash requirements in
the future, including the maturity of the revolving credit
facility on Sept. 22, 2006, and significant capital requirements
under environmental commitments.  In addition, there are
substantial contingencies related to taxes.

The Doe Run Peru Revolving Credit Facility expires on
Sept. 22, 2006, and will require negotiations to extend its
terms.  There can be no assurance that Doe Run Peru will be
successful in extending the existing credit agreement or
negotiating a new agreement, or if it is successful, that the
extended or new credit agreement would be at terms that are
favorable to Doe Run Peru.

Any default under the requirements of the Environmental
Remediation and Management Program could result in a default
under the Doe Run Peru Revolving Credit Facility.  A default
under the requirements of the Doe Run Peru Revolving Credit
Facility results in defaults under the Doe Run Revolving Credit
Facility and the indenture governing the bonds.


DOE RUN: Peruvian Unit Resolves Labor Strike
--------------------------------------------
The Doe Run Company's subsidiary, Doe Run Peru, resolved a labor
dispute on Sept. 15 at its Cobriza Mining Division.  The
peaceful demonstration began the morning of Sept. 14 and
concluded at 8 p.m. on Sept. 15.  The striking workers were
calling for additional benefits for contract workers, higher
salaries and reimbursement of travel expenses.  A Ministry of
Labor mediator helped facilitate the discussion.

"We are pleased to hear that our counterparts in Peru were able
to quickly work through specifics," said Barbara Shepard, vice
president of human resources and community relations for The Doe
Run Company. "When labor discussions happen at the local level,
it provides for more clear and open communication.  The quick
resolution in Cobriza is an excellent example of collaboration
and earnest dialogue among all the participating parties."

Doe Run Peru will continue to provide snacks and meals to select
workers and adjust transportation schedules, among other
requests. Likewise, the company will continue to ensure that
contractors comply with all applicable labor regulations.  The
workers also committed to increasing productivity and
efficiency.

A Peru Ministry of Labor mediator facilitated the discussion and
helped reach an amicable solution, the St. Louis Business
Journal relates.

"All of our employees have returned to work, and production was
largely unaffected," reported Dr. Juan Carlos Huyhua, president
and general manager of Doe Run Peru.  "We appreciate the
important role our employees and contractors play in providing
quality metals to the world."

Doe Run Peru's Cobriza mine is an underground copper mine that
produces copper concentrates in southern Peru.  Cobriza's award-
winning Mine Rescue Team represented Peru last week at the 2006
International Mine Rescue Contest in China.

               About The Doe Run Resources Corp.

The Doe Run Resources Corp. is one of the world's providers of
premium lead and associated metals and services.  The Company is
the largest integrated lead producer in North America and the
largest primary lead producer in the western world.

Doe Run operates an integrated primary lead operation and a
recycling operation located in Missouri, referred to as Buick
Resource Recycling.

Fabricated Products, Inc., a wholly owned subsidiary of Doe Run,
operates a lead fabrication operation located in Arizona and a
lead oxide business located in Washington.

Doe Run Peru S.R.L., an indirect Peruvian subsidiary, operates a
smelter in La Oroya, Peru, one of the largest polymetallic
processing facilities in the world, producing an extensive
product mix of non-ferrous and precious metals, including
silver, copper, zinc, lead and gold.  Doe Run Peru also has a
copper mining and milling operation in Cobriza, Peru in the
region of Huancavelica, which is approximately 200 miles
southeast of La Oroya in Peru.

           Doe Run Peru Going Concern Doubt

As reported in the Troubled Company reporter-Latin America on
Aug. 10, 2006, Doe Run Peru has significant capital requirements
under environmental commitments and guarantees and substantial
contingencies related to taxes and has significant debt service
obligations under the revolving credit facility, each of which,
if not satisfied, could result in a default under Doe Run Peru's
credit agreement and collectively raise substantial doubt about
Doe Run Peru's ability to continue as a going concern.

Doe Run Peru continues to have substantial cash requirements in
the future, including the maturity of the revolving credit
facility on Sept. 22, 2006, and significant capital requirements
under environmental commitments.  In addition, there are
substantial contingencies related to taxes.

The Doe Run Peru Revolving Credit Facility expires on Sept. 22,
2006, and will require negotiations to extend its terms.  There
can be no assurance that Doe Run Peru will be successful in
extending the existing credit agreement or negotiating a new
agreement, or if it is successful, that the extended or new
credit agreement would be at terms that are favorable to Doe Run
Peru.

Any default under the requirements of the Environmental
Remediation and Management Program could result in a default
under the Doe Run Peru Revolving Credit Facility.  A default
under the requirements of the Doe Run Peru Revolving Credit
Facility results in defaults under the Doe Run Revolving Credit
Facility and the indenture governing the bonds.




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


ADELPHIA: Completes US$1.8 Mil. Equipment Sale to ADDvantage
------------------------------------------------------------
ADDvantage Technologies Group, Inc.'s new subsidiary, Broadband
Redistribution International, completed the purchase of 82,034
Scientific-Atlanta and 16,889 Motorola surplus digital set-top
boxes from Adelphia Communications Corp. at a cost of
approximately US$1.8 million.

The purchase of the equipment from Adelphia, which is currently
operating under Chapter 11-Bankruptcy protection, was finalized
after the U.S. Bankruptcy Court for the Southern District of New
York approved the sale.  Broadband Redistribution International
will begin to take ownership of the digital set tops on
Sept. 18, 2006.  These set top boxes will be refurbished using
outside vendors as they receive orders for them from customers.  
This refurbishment will require an additional investment of
approximately US$2 to US$3 million.

"We believe that this purchase provides us with an opportunity
to leverage our strong presence in the cable equipment industry
to successfully distribute the reconditioned set-top boxes we
acquired from Adelphia," said Ken Chymiak, ADDvantage's
President and Chief Executive Officer.  "There is growing demand
for such legacy digital equipment from many of our clients
throughout the U.S. and South America.  We believe the timing of
this opportunity will allow us to take full advantage of certain
pending regulatory changes, most notably the FCC's mandate for
CableCard inclusion in newly manufactured boxes beginning
July 1, 2007."

David Chymiak, Chairman of ADDvantage Technologies Group, Inc.,
stated "This significant purchase of digital converters reflects
our confidence in our company's ability to add new products and
become a dominant provider.  Having said this, we do not
anticipate achieving meaningful revenues from the sales of these
converters until 2007."

              About ADDvantage Technologies

Based in Broken Arrow, Oklahoma, ADDvantage Technologies Group,
Inc. (Amex: AEY) -- http://www.addvantagetech.com/-- supplies  
the cable television industry with a comprehensive line of new
and used system-critical network equipment and hardware from
leading manufacturers, including Scientific- Atlanta and
Motorola, as well as operating a national network of technical
repair centers.

          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.


ADELPHIA: Motorola Reserves Right to Unseal Settlement Pact
-----------------------------------------------------------
Motorola, Inc., tells the U.S. Bankruptcy Court for the Southern
District of New York that it reserves its right to move the
Court for an order unsealing the Settlement Agreement at the
time it is appropriate to do so in connection with Motorola's
rights under the Bankruptcy Rules and the Federal Rules of Civil
Procedure, both as a litigant in the Adversary Proceeding and as
a creditor in the Debtors' bankruptcy cases.

                 Motorola Reserves Rights

Motorola, Inc.; General Instrument Corp., doing business as
Broadband Communications Sector of Motorola, Inc., and doing
business as Motorola Broadband Communications Section;
Synchronous, Inc.; and General Instrument Authorization
Services, Inc., are defendants in an adversary proceeding
brought by Adelphia Communications Corp., et al.

Michael J. Canning, Esq., at Arnold & Porter LLP, in New York,
reminds the Court that the ACOM Debtors sought to file their
settlement agreement with Scientific-Atlanta, Inc., under seal
because they wish to prevent Motorola from learning the terms of
the Settlement Agreement.

Mr. Canning argues that as a significant creditor of the
Debtors, Motorola has an interest in the disclosure of the terms
of the Settlement Agreement.  However, Mr. Canning relates, the
Debtors have sought to limit disclosure and service of the
Settlement Agreement and to exclude Motorola and other creditors
from reviewing the Settlement Agreement.

The Court allowed the Debtors to file the Settlement Agreement
under seal, but preserved the right of a party to file a motion
seeking to unseal the Settlement Agreement.

According to Mr. Canning, Motorola does not object in principle
to approval of the Settlement Agreement, especially insofar as
Motorola lacks any factual predicate concerning its terms.
Motorola does, however, reserve all of its rights with respect
to sealing the Settlement Agreement, including whether filing
under seal was appropriate in the first instance and whether
grounds exist to unseal the Settlement Agreement.

Mr. Canning asserts that the Debtors failed to cite any factual
basis or relevant legal authority in support of their view that
the Settlement Agreement, which relates to the settlement of
discrete claims between the Debtors and Scientific-Atlanta, may
properly be sealed under Section 107(b) of the Bankruptcy Code
and Rule 9018 of the Federal Rules of Bankruptcy Procedure as
disclosing confidential "commercial operations" of the Debtors.

In regard to the Adversary Proceeding, Motorola believes that
the Settlement Agreement likely contains discoverable
information that is relevant to both the allegations made by the
Debtors against Motorola and Motorola's defenses to those
allegations, including but not limited to issues relating to the
general facts underlying the Debtors' allegations; causation;
the conduct of the Debtor's officers, directors and employees;
apportionment of damages, if any; contribution claims against
Scientific-Atlanta; and other grounds as may become evident as a
record is developed through discovery.

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.  (Adelphia Bankruptcy News, Issue Nos. 148; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000)


MARGO CARIBE: Deloitte Resigns as Independent Accountant
--------------------------------------------------------
Deloitte & Touche LLP resigned on Sept. 14, 2006, as Margo
Caribe, Inc.'s independent registered public accounting firm,
the company said in a filing with the U.S. Securities and
Exchange Commission.  

Margo Caribe said that during the company's two most recent
fiscal years and the subsequent interim periods through the date
of Deloitte's resignation, there were no disagreements with the
accounting firm over irregularities.

Deloitte's report dated Sept. 6, 2006, relating to the financial
statements and financial statement schedule of Margo Caribe,
appearing in the company's Annual Report on Form 10-KSB for the
year ended Dec. 31, 2005, included an explanatory paragraph
relating to the uncertainty concerning the company's ability to
continue as a going concern.  Other than that, Deloitte's
reports on Margo Caribe's financial statements did not contain
an adverse opinion or disclaimer of opinion, nor were they
qualified or modified as to uncertainty, audit scope, or
accounting principles.  

In addition, Deloitte noted material weaknesses to the Margo
Caribe's internal controls after auditing the company's
financial reports for the year ended Dec. 31, 2005.  The
material weaknesses noted by Deloitte were the following:

   1) Margo Caribe did not maintain a sufficient complement of
      personnel to maintain an appropriate accounting and
      financial reporting structure commensurate with its
      activities;
  
   2) the company's limited number of personnel does not allow
      for an appropriate level of segregation of duties;

   3) the company does not have an appropriate fraud detection
      program to address the risk that the financial statements
      may be materially misstated as a result of fraud; and

   4) the company did not maintain adequate controls and
      procedures to assure the identification and reporting of
      certain transactions with related parties.

Headquartered in Vega Alta, Puerto Rico, Margo Caribe, Inc.
-- http://www.MargoCaribe.com-- and its subsidiaries primarily    
engage in the production, distribution, and sale of various
tropical plants to the interior and exterior landscapers,
wholesalers, and retailers in Puerto Rico and the Caribbean.  
The company also manufactures and distributes a line of planting
media and aggregates; distributes lawn and garden products,
including plastic and terracotta pottery, planting media, and
mulch; and provides landscaping design and installation
services.  In addition, Margo Caribe distributes fertilizers,
pesticides, and various outdoor products.  The company
manufactures potting soils, professional growing mixes, river
rock, gravel, and related aggregates.


MUSICLAND HOLDING: Hires Walker Truesdell as Winddown Officer
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorize Musicland Holding Corp. and its debtor-affiliates to
employ Walker, Truesdell & Associates, Inc., as its winddown
officer, nunc pro tunc to Aug. 21, 2006, pursuant to Section 363
of the Bankruptcy Code.

As reported in the Troubled Company Reporter on Sept. 14, 2006,
WTA, as winddown officer, has, and will continue, to:

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

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

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

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

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

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

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

   (h) analyze and pursue avoidance actions;

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

   (j) provide a Final Report and Accounting; and

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

The Debtors will pay WTA at these hourly rates:

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

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

                  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)




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


BRITISH WEST: Will Stop Washington Flights on October 10
--------------------------------------------------------
British West Indies Airlines aka BWIA will halt flights to and
from the Washington Dulles International Airport in Washington
on Oct. 10, the Trinidad & Tobago Express reports.

The Express notes that BWIA is reorganizing its operations in
preparation for its closure as well as the launching of the
Caribbean Airlines.

Peter Davies, the chief executive officer of BWIA, told The
Express, "The decision to discontinue service to Washington was
taken after analysis of the route confirmed a trend of low
passenger volume versus the overall cost of operating the
services, resulting in significant financial losses.  We are
grateful to the customers who supported the operation, but the
closure is necessary as we move to improve future viability."

BWIA, in keeping with IATA guidelines, is informing all affected
clients to accommodate them on other carriers, The Express
relates.

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: Will Decide on Voluntary Separation Packages Today
----------------------------------------------------------------
British West Indies Airlines aka BWIA will disclose its decision
on the Voluntary Separation from Employment Packages for its
workers to the unions on Sept. 22, the Trinidad & Tobago Express
reports.

The Express says that over 1,800 BWIA workers will be given
voluntary separation packages as the airline will shut down
operations on Dec. 31, to give way to Caribbean Airlines.

As reported in the Troubled Company Reporter-Latin America on
Sept 18, 2006, the Aviation, Communication and Allied Workers
Union or ACAWU, the union that represents majority of the BWIA's
employees, presented proposals for voluntary separation package.  

According to The Express, the workers' unions met with the BWIA
management on Sept. 19 to receive a response on the voluntary
separation package proposals they presented.

"We still did not get from the company what exactly their
position was in the meeting.  We finally got to sit and talk
with management as the first meeting was with a mediator and not
management.  Today (Sept. 19), the company looked at what we
offered and they got clarity on some of the issues.  What they
told us was that we will get their final document by Friday,"
Cutis John, the head of ACAWU, told The Express.

The management of BWIA said that they will have to meet among
themselves and fully discuss the proposal the unions made, The
Express relates, citing Mr. John.

Mr. John told The Express that the BWIA management is holding
separate talks with the firm's four workers' unions.  Mr. John
said that he is unsure if all the unions would get the same
package.

BWIA set the deadline for an agreement on the voluntary
separation packages for Sept. 26, The Express notes.

The Express underscores that BWIA said in its terms and
conditions guiding talks for voluntary separation packages that
if no agreement is reached by Sept. 26, the creation of the
Caribbean Airlines will be questionable.

Mr. John told The Express, "The fact is most likely the deadline
may be extended by a day because we have a public holiday on
Sept. 25.  However, the reality of the situation is that the
company has made their demands with regard to the arrival of a
timely VSEP so they may not change their minds on the deadline."

The unions were worried that the deadline did not grant them
sufficient time to create their proposals, The Express states.

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.


MIRANT CORP: To Settle Erisa Litigation for US$9.7 Million
--------------------------------------------------------
In 2003, James Brown and Greg Waller, Sr., each filed putative
class action lawsuits alleging violations of the Employee
Retirement Income Security Act against Mirant Corp.,
certain of its officers and directors, and The Southern Company
before the U.S. District Court for the Northern District of
Georgia.

The lawsuits were consolidated in a case styled as In re: Mirant
Corp. ERISA Litigation, Civil Action No. 03-CV-1027.

Messrs. Brown and Waller, who represent a putative class of
participants and beneficiaries of the Mirant Services Employee
Savings Plan and the Mirant Services Bargaining Unit Employee
Savings Plan, allege that Mirant and other defendants breached
their duties under ERISA by, among other things:

    (a) concealing information from the 401(k) Plans'
        participants and beneficiaries;

    (b) failing to ensure that the 401(k) Plans' assets were
        invested prudently;

    (c) failing to monitor the 401(k) Plans' fiduciaries; and

    (d) failing to engage independent fiduciaries to make
        judgments about the 401(k) Plans' investments.

The Other Defendants include:

     (1) A. William Dahlberg
     (2) Alston D. Correll
     (3) Carlos Ghosn
     (4) David J. Lesar
     (5) Dianne W. Davenport
     (6) Elmer Harris
     (7) James A. Ward
     (8) James F. McDonald
     (9) Michael L. Smith
    (10) Ray M. Robinson
    (11) Raymond D. Hill
    (12) Richard Pershing
    (13) S. Marce Fuller
    (14) Stuart Eizenstat
    (15) T. Rowe Price Trust Company
    (16) the Americas Benefit Committee
    (17) the Qualified Investment Review Committee
    (18) Vance Booker
    (19) W.L. Westbrook
    (20) William M. Hjerpe
    (21) Unknown Fiduciary Defendants

The Plaintiffs seek unspecified damages, injunctive relief,
attorneys' fees and costs.

When the Debtors filed for bankruptcy on July 14, 2003, the
District Court stayed the Mirant ERISA Litigation.  District
Court Judge Richard Story directed the Clerk of Court to
administratively close the Mirant ERISA Litigation pending the
lifting of the stay by the Bankruptcy Court.  As a result, the
Plaintiffs were unable to proceed with discovery in the Mirant
ERISA Litigation.

Although the Mirant ERISA Litigation was administratively
closed, the parties engaged in extensive settlement discussions.  
The parties reached a Class Action settlement agreement in
May 2006.

To adequately and properly effectuate the settlement and
resolution of the Mirant ERISA Litigation, Messrs. Brown and
Waller, Sr., asked the District Court to reopen the Mirant ERISA
case.

The Plaintiffs also asked the District Court to:

    (a) preliminarily approve the Class Action Settlement
        pursuant to the terms of a Stipulation of Settlement;

    (b) approve the preliminary certification of the Class and a
        proposed form of notice; and

    (c) set a Fairness Hearing for determination as to whether
        to approve the Stipulation of Settlement.

The salient terms of the Stipulation of Settlement are:

    (a) The parties agree to settle the claims asserted in the
        Class Action for US$9.7 million, which amount will be
        paid by the Mirant Defendants' applicable fiduciary
        liability insurers.  The Settlement Amount, together
        with any interest earned, will constitute as the
        "Qualified Settlement Fund";

    (b) For settlement purposes, the Class Action will proceed
        as a non-opt out class action;

    (c) The "Complete Settlement Approval" will occur when all
        of these events have taken place:

        (1) Entry of a final order approving the Settlement; and

        (2) Expiration of:

            * all periods of appeal of the Final Approval Order
              without any appeal having been filed, or if an
              appeal is taken, on entry of an order affirming
              the Final Approval Order; and

            * the expiration of any applicable period for the
              reconsideration, rehearing or appeal of the
              affirmance without any motion for reconsideration
              or rehearing or further appeal having been filed;

    (d) The Plaintiffs, members of the Settlement Class, and the
        Plans will release any and all of their claims against:

        (1) all of the defendants;

        (2) the applicable Fiduciary and Employee Benefit
            Liability Insurance Policy No. F0280AIA02, but the
            release will not extend to claims asserted against
            any person in In re Southern Company ERISA Litig.
            Civ. No. 1:04-CV-1912;

        (3) the independent fiduciary engaged by the Plan's
            fiduciaries to analyze the Settlement; and

        (4) current or past Plan fiduciaries in connection with
            the calculation and allocation of the Qualified
            Settlement Fund;

    (e) The Qualified Settlement Fund will be structured and
        managed to qualify as a tax-qualified settlement fund
        under Section 468B of the Internal Revenue Code and
        Treasury Regulations;

    (f) Each named Plaintiff will receive a "Case Contribution
        Award" in recognition of each of the Plaintiff's
        assistance provided in the prosecution of the Class
        Action, payable from the Qualified Settlement Fund; and

    (g) The Class counsel will prepare a plan of allocation for
        the District Court's approval.  Mirant will have no
        responsibility for structuring the contents of the Plan
        of Allocation.

A full-text copy of the Stipulation of Settlement in the ERISA
Litigation is available for free at:

              http://ResearchArchives.com/t/s?11f0

On behalf of the Plaintiffs, Joshua A. Millican, Esq., in
Atlanta, Georgia, tells the District Court that the Settlement
Agreement represents an excellent recovery for Class members,
and is clearly adequate under the governing standards for
evaluating class action settlements in the Second Circuit.

Moreover, certification of the Settlement Class is appropriate
pursuant to Rule 23 of the Federal Rules of Civil Procedure and
the proposed Notice program, which has been approved in numerous
similar cases, satisfies the requirements of due process.

All prerequisites for preliminary approval of the Settlement and
conditional class certification have been met, Mr. Millican
assures the District Court.

According to Bloomberg News, Judge Story will conduct a hearing
in Oct. 2006 at Mirant's headquarters in Atlanta to finalize
the Settlement Agreement.

                        About Mirant

Headquartered in Atlanta, Georgia, Mirant Corp. (NYSE: MIR)
-- http://www.mirant.com/-- is an energy company that produces  
and sells electricity in North America, the Caribbean, and the
Philippines.  Mirant's investments in the Caribbean include three
integrated utilities and assets in Jamaica, Grand Bahama, Trinidad
and Tobago and Curacao.  Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally.  Mirant
Corp. filed for chapter 11 protection on July 14, 2003 (Bankr.
N.D. Tex. 03-46590), and emerged under the terms of a confirmed
Second Amended Plan on Jan. 3, 2006.  Thomas E. Lauria, Esq., at
White & Case LLP, represented the Debtors in their successful
restructuring.  When the Debtors filed for protection from their
creditors, they listed US$20,574,000,000 in assets and
US$11,401,000,000 in debts.  The Debtors emerged from bankruptcy
on Jan. 3, 2006.  (Mirant Bankruptcy News, Issue No. 104;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)  

                        *    *    *

As reported in the Troubled Company Reporter on July 17, 2006,
Moody's Investors Service downgraded the ratings of Mirant
Corp. and its subsidiaries Mirant North America, LLC and
Mirant Americas Generation, LLC.  The Ba2 rating for Mirant Mid-
Atlantic, LLC's secured pass through trust certificates was
affirmed.  The rating outlook is stable for Mirant, MNA, MAG,
and MIRMA.

Moody's downgraded Mirant Americas Generation, LLC's Senior
Unsecured Regular Bond/Debenture, to B3 from B2.  Moody's also
downgraded Mirant Corp.'s Corporate Family Rating, to B2
from B1, and Speculative Grade Liquidity Rating, to SGL-2 from
SGL-1.  Mirant North America, LLC's Senior Secured Bank Credit
Facility, was also downgraded to B1 from Ba3 and its Senior
Unsecured Regular Bond/Debenture, to B2 from B1.

As reported in the Troubled Company Reporter on July 13, 2006,
Fitch Ratings placed the ratings of Mirant Corp., including the
Issuer Default Rating of 'B+', and its subsidiaries on Rating
Watch Negative following its announced plans to buy back stock
and sell its Philippine and Caribbean assets.

Ratings affected are Mirant Corp.'s 'B+' Issuer Default Rating
and Mirant Mid-Atlantic LLC's 'B+' Issuer Default Rating and the
Pass-through certificates' 'BB+/Recovery Rating RR1'.

Fitch also placed Mirant North America, Inc.'s Issuer Default
Rating of 'B+', Senior secured bank debt's 'BB/RR1' rating,
Senior secured term loan's 'BB/RR1' rating, and Senior unsecured
notes' 'BB-/RR1' rating on Rating Watch Negative.  Mirant
Americas Generation, LLC's Issuer Default Rating of 'B+' and
Senior unsecured notes' 'B/RR5' rating was included as well.

Standard & Poor's Ratings Services also placed the 'B+'
corporate credit ratings on Mirant Corp. and its subsidiaries,
Mirant North American LLC, Mirant Americas Generating LLC, and
Mirant Mid-Atlantic LLC, on CreditWatch with negative
implications.




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


* VENEZUELA: State Bank Will Open Branches in Four Nations
----------------------------------------------------------
Edgard Hernandez Behrens -- the president of Banco de Desarrollo
Economico y Social de Venezuela or Bandes, the state development
bank of Venezuela -- told Business News Americas that the firm
will launch branches in Bolivia, Honduras, Guatemala and Haiti.

BNamericas relates that Mr. Behrens said, "We foresee opening
offices in Haiti, Guatemala and Honduras."

Bandes will to provide in December 2006 about US$15 million to
Cofac -- its Uruguayan branch.  The bank is also considering
providing funds for its Union branch in Bolivia, Mr. Behrens
told BNamericas.

                        *    *    *

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


* IDB Holds Asia-LatAm Private Sector Forum in Japan
----------------------------------------------------
As a joint effort with the Japan Bank for International
Cooperation or JBIC and several other Japanese private and
public sector organizations and development agencies, the Inter-
American Development Bank holds an "Asia - Latin America and the
Caribbean Private Sector Forum," at the Japan Business
Federation Building (Keidanren Kaikan), in Tokyo, Japan, today,
from 10:00 am to 5:20 pm.

The purpose of this private sector forum is to strengthen
existing and develop new partnerships between the businesspeople
of the countries of Latin America and the Caribbean (LAC) with
their counterparts in Japan and other East Asian countries, by:

   -- Promoting a frank dialogue between high-ranking policy
      makers and top business leaders of the two regions on the
      current business environment prevailing in the LAC region,
      and;

   -- Provide an open exchange of relevant information on
      concrete and attractive business opportunities available
      to Japanese and other Asian business leaders, investors
      and entrepreneurs in some currently dynamic, or with
      potential for future development, sectors and industries
      of the LAC countries.

This forum is also expected to provide a valuable occasion for
the forum's participants from Latin America and the Caribbean
and from the IDB, to become more acquainted with the wide and
rich spectrum of business opportunities that the fast-growing
Asian economies are quickly generating for potential partners
around the world, in the areas of investment, trade, cutting-
edge technology and top management practices.


                        ***********


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

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

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

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

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

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


           * * * End of Transmission * * *