TCRLA_Public/061002.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, October 2, 2006, Vol. 7, Issue 195

                          Headlines

A R G E N T I N A

ANRE SRL: Verification of Proofs of Claim Is Until Nov. 6
BANCO HIPOTECARIO: Lists Mortgage-Backed Debts on Local Market
CERAMICA VALLE: Claims Verification Deadline Is Set for Oct. 18
ELECTRICIDAD ARGENTINA: S&P Junks Corporate Credit Rating
FARMINTER SA: Trustee Verifies Proofs of Claim Until Nov. 30

GONZALO FINDLAY: Last Day for Claims Verification Is on Nov. 27
ITAL MONTERUBBIANESI: Claims Verification Is Until Nov. 14
OLIVARERA RIOJANA: Claims Verification Deadline Is on Oct. 30

B A H A M A S

COMPLETE RETREATS: Committee Wants Rule 2004 Exam on Abercrombie

B E R M U D A

AFRAMAX I: Creditors Must File Proofs of Claim by Oct. 11
GALVEX HOLDINGS: Section 341(a) Meeting Scheduled for Nov. 6
MONDRIAN OFFSHORE: Proofs of Claim Filing Is Until Oct. 11
MONTECITO INSURANCE: Filing of Proofs of Claim Is Until Oct. 11
PRINCE DELI: Stephen Lowe Named Liquidator on Wind-Up Process

REFCO INC: Will Pay US$705 Mil. to Resolve All Secured Claims
TOTAL FITNESS: Stephen Lowe Named Liquidator on Wind-Up Process

B O L I V I A

PETROLEO BRASILEIRO: Confident on YPFB's Continued Deliveries
PETROLEOS DE VENEZUELA: Starts Joint Projects Talks with Bolivia

* BOLIVIA: Seeking Support on Proposal to Cancel IADB Loans

B R A Z I L

ADVANCED MEDICAL: Moody's Assigns Loss-Given-Default Rating
BANCO BRADESCO: Sees 25% Growth in Loan Portfolio
CENTRAIS ELECTRICAS: Lists Shares on Brazil's Stock Exchange
CP CIMENTO: Moody's LatAm Downgrades Debenture Ratings to Ca
GERDAU SA: Dismisses Corus Merger Rumors

GULFMARK OFFSHORE: S&P Lowers Corporate Credit Rating to B+
NOSSA CAIXA: Sets Aside 10% of Share Offer for Retail Investors
PETROLEO BRASILEIRO: Inks Accord with Petrojarl Production
RBS PARTICIPACOES: S&P Lists Vulnerabilities That Affect Ratings
TELE NORTE: Sets Extraordinary Shareholders' Meeting on Nov. 13

TELE NORTE: Telemar Norte Declares BRL202MM Interest on Capital
VARIG S.A.: T. Rowe Price Increases Stake in Rival TAM Linhas

C A Y M A N   I S L A N D S

ABF CUBE: Invites Shareholders for a Final Meeting on Oct. 19
ADVISORY EUROPEAN: Last Shareholders Meeting Is Set for Oct. 19
ARCLIGHT LTD: Final Shareholders Meeting Is Set for Oct. 19
ASIA PROJECT: Calls Shareholders for a Final Meeting on Oct. 19
AVEBURY FINANCE: Final Shareholders Meeting Is Set for Oct. 19

CX B-HLW: Creditors Have Until Oct. 20 to File Proofs of Claim
HUB ASSET: Shareholders Convene for a Final Meeting on Oct. 19
IRIDIUM INC: Last Shareholders Meeting Is Scheduled for Oct. 19
JOHCM CUMULUS: Liquidator Presents Wind Up Accounts on Oct. 19
LIZMAR INVESTMENT: Last Shareholders Meeting Is Set for Oct. 19

MODENA LTD: Sets Final Shareholders Meeting for Oct. 19
SAND DOLLAR: Shareholders Gathering for Final Meeting on Oct. 19
SPN III: Final Shareholders Meeting Is Scheduled for Oct. 19
TEXEL FIXED (HEDGE): Final Shareholders Meeting Is on Oct. 20
TEXEL FIXED (MASTER): Last Shareholders Meeting Is on Oct. 20

C H I L E

ANIXTER INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating

C O L O M B I A

BAVARIA SA: SABMiller Holds Tender Offer for Minority Shares

C O S T A   R I C A

DENNY'S CORP: Closes Sale of 60 Franchisee-Operated Properties

* COSTA RICA: Mexico Sets Suty Fee Quota at 50,845 Metric Tons
* COSTA RICA: Revives Trade & Energy Accords with Russia

C U B A

* CUBA: Will Receive US$355 Million Loan from Russia

D O M I N I C A N   R E P U B L I C

AES DOMINICANA: Operations at Itabo Port to Start
FALCONBRIDGE LTD: Dominican Unit Names New General Manager

* DOMINICAN REPUBLIC: Power Output Boost Doesn't Stop Blackouts

E C U A D O R

PETROECUADOR: Lowers Price of Oriente Crude
PETROECUADOR: Unit Calls for Bids for Esmeraldas Plant Upgrade

E L   S A L V A D O R

MILLIPORE CORP: Moody's Assigns Loss-Given-Default Rating

G U A T E M A L A

SBARRO INC: Moody's Assigns Loss-Given-Default Rating

H A I T I

* HAITI: Seeking Support on Proposal to Forgive IADB Loans

H O N D U R A S

* HONDURAS: Seeking Support on Proposal to Forgive IADB Loans

J A M A I C A

AIR JAMAICA: Contractor General Questions Firm's Entity
HIGHGATE FOODS: Closes Down Business
KAISER ALUMINUM: Files Stock Offering Registration with U.S. SEC

M E X I C O

DIRECTV INC: Judge Dismisses Darlene's Fraud Claims Against Co.
EL POLLO: Moody's Assigns Loss-Given-Default Rating
FORD MOTOR: Cuts 2,000 Salaried Worker Positions to Reduce Costs
MERIDIAN AUTOMOTIVE: Has Until January 25 to Decide on Leases
ORTHOFIX INT'L: Moody's Assigns Loss-Given-Default Rating

TV AZTECA: Halts Telemundo's Quinceanera Show
UNITED RENTALS: Prepays US$400 Million of Outstanding Term Loan

* MEXICO: Pension Funds Buy More Government Bonds

N I C A R A G U A

* NICARAGUA: Okays Disbursement of US$5 Million to Entresa
* NICARAGUA: Receiving 200,000 Gallons of Diesel from Venezuela
* NICARAGUA: Seeking Support on Proposal to Forgive IADB Loans

P A N A M A

CHIQUITA BRANDS: Proposes Plan to Prop Up Coosemupar

P E R U

DOE RUN PERU: Investing US$200 Million in Environmental Clean Up

* PERU: Telefonica del Peru Allegedly Charges Illegal Fees

P U E R T O   R I C O

ADELPHIA: Stay Modified Allowing Mr. Champ to Pursue Action
BURGER KING: Moody's Assigns Loss-Given-Default Rating
CARIBBEAN RESTAURANTS: Moody's Assigns Loss-Given-Default Rating
FIRST BANCORP: Files Amended December 2004 Annual Report
GLOBAL HOME: Has Until December 6 to File Chapter 11 Plan

MARGO CARIBE: Receives Letter of Reprimand from Nasdaq
UNIVISION COMMS: Moody's Cuts Rating on Sr. Unsec. Notes to Ba3
UNO RESTAURANT: Moody's Assigns Loss-Given-Default Rating

U R U G U A Y

ADMINISTRACION NACIONAL: S&P Ups Corporate Credit Rating to B+
BANCO BILBAO: S&P Ups Counterparty Credit Rating to B+ from B
CITIBANK (URUGUAY): S&P Ups Counterparty Credit Rating to B+
DISCOUNT BANK: S&P Raises Counterparty Credit Rating to B+

* URUGUAY: State Oil Firm Cuts Fuel Prices
* URUGUAY: S&P Raises Foreign & Local Curr. Credit Ratings to B+

V E N E Z U E L A

CITGO: S&P Says Ratings Unaffected by Expired 7-Eleven Contract

* VENEZUELA: Will Send 200,000 Gallons of Diesel to Nicaragua
* IDB & Intel Formalize Pact to Support ICT Dev't in LatAm
* BOOK REVIEW: Crafting Solutions for Troubled Businesses


                          - - - - -


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


ANRE SRL: Verification of Proofs of Claim Is Until Nov. 6
---------------------------------------------------------
Ines Clos, the court-appointed trustee for Anre S.R.L.'s
bankruptcy proceeding, will verify creditors' proofs of claim
until Nov. 6, 2006.

Under the Argentine bankruptcy law, Ms. Clos is required to
present the validated claims in court as individual reports.
Court No. 19 in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Anre S.R.L. and its
creditors.

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

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

Anre was forced into bankruptcy at the request of Nuevo Banco
del Suquia S.A., which it owes US$6,849.

Clerk No. 38 assists the court in the proceeding.

The debtor can be reached at:

          Anre S.R.L.
          Montevideo 451
          Buenos Aires, Argentina

The trustee can be reached at:

          Ines Clos
          Lavalle 715
          Buenos Aires, Argentina


BANCO HIPOTECARIO: Lists Mortgage-Backed Debts on Local Market
--------------------------------------------------------------
Banco Hipotecario SA said in a statement that it has placed
ARS71.4 million of mortgage-backed securities on the local
market.

Business News Americas notes that the issue was the seventh
series of the bank's "Cedulas Hipotecarias Argentinas" program.
The bank led the issue jointly with the local unit of Bank of
America and domestic banks Banco Ciudad and Banco de Valores.
The company has sold ARS432 million worth of debt since
launching the mortgage-backed securities program 21 months ago.

Banco Hipotecario told BNamericas that investor demand was
ARS192 million, about 3.3 times the face value.

According to BNamericas, Banco Hipotecario said that major
buyers were:

         -- pension funds, which picked up 37.3% of the issue;
            and

         -- 1,400 individual investors, who picked up 13.0%.

BNamericas relates that the securities will yield 2.5% above the
CER (Calgary Economic Region) inflation coefficient.  CER is one
of two indexes used to adjust "pesified debts" for inflation.

Banco Hipotecario S.A. was formed under the laws of Argentina in
Sept. 1997 to continue the business of Banco Hipotecario
Nacional.  The Bank distributes its products through a network
of 24 branches and 14 sales offices located throughout
Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on March 28, 2006,
Standard & Poor's Ratings Services raised to B the foreign and
local currency counterparty credit ratings on Banco Hipotecario
S.A.  This rating action followed the upgrade on the
Republic of Argentina.

S&P raised the bank's global foreign and local currency
ratings on Argentina to 'B' from 'B-' and the ratings on the
national scale to 'raAA-' from 'raA', reflecting Argentina's
improved external and fiscal flexibility. S&P said the outlook
on the sovereign rating is stable.

                        *    *    *

On June 4, 2006, Moody's Investors Service took these rating
actions on Banco Hipotecario S.A.:

   -- Bank Financial Strength Rating: upgraded to E+ from E,
      with positive outlook;

   -- Long-term global local-currency deposit rating: Ba3 with
      stable outlook;

   -- Short-term global local-currency deposit rating: Not Prime
      with stable outlook; and

   -- National scale rating for foreign currency deposits:
      Ba1.ar with stable outlook.

Moody's affirmed these ratings:

   -- National scale rating for local-currency deposits: Aa1.ar
      with stable outlook;

   -- Long-term foreign currency-deposit rating: Caa1 and

   -- Short-term foreign currency-deposit rating: Not Prime.

                        *    *    *

Fitch Ratings Services upgraded on Aug. 4, 2006, these ratings
of Banco Hipotecario:

   -- Foreign and local currency long term IDRs upgraded: to B
      from B-, with a Stable Outlook;

   -- Short-term IDR affirmed at 'B';

   -- Individual rating affirmed at 'D'; and

   -- Support rating affirmed at '5'.

The rating of its US$1.2 billion Global Medium Term Notes
Programme and US$250 million 10-year unsubordinated fixed-rate
note were both upgraded to 'B/RR4' from 'B-/RR4.


CERAMICA VALLE: Claims Verification Deadline Is Set for Oct. 18
---------------------------------------------------------------
Aldo Gabriel Sarquis, the court-appointed trustee for Ceramica
Valle Viejo S.R.L.'s insolvency case, will verify creditors'
proofs of claim until Oct. 18, 2006.

Mr. Sarquis will present the validated claims in court as
individual reports on Nov. 29, 2006.  A court in Catamarca will
determine if the verified claims are admissible, taking into
account the trustee's opinion and the objections and challenges
raised by Ceramica Valle 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 Ceramica Valle's
accounting and banking records will follow on Feb. 14, 2007.

On June 25, 2007, Ceramica Valle's creditors will vote on a
settlement plan that the company will lay on the table.

The debtor can be reached at:

          Ceramica Valle Viejo S.R.L.
          Sarmiento Esquina Rivadavia, Galeria Azura Factory
          Catamarca, Argentina

The trustee can be reached at:

          Aldo Gabriel Sarquis
          Peru 338, San Fernando del Valle de Catamarca
          Catamarca, Argentina


ELECTRICIDAD ARGENTINA: S&P Junks Corporate Credit Rating
---------------------------------------------------------
On July 24, 2006, Standard & Poor's Ratings Services assigned
its 'CCC+' corporate credit rating to Argentine holding company
Electricidad Argentina S.A. aka EASA, 51% owner of the largest
Argentine electric distributor, Empresa Distribuidora y
Comercializadora Norte S.A. (Edenor; CCC+/Stable/--), following
the formal completion of its debt restructuring process through
the issuance of two new series of bonds in exchange for its
defaulted debt.  The outlook is stable.  At the same time,
Standard & Poor's affirmed the 'CCC-' ratings on the new bonds
issued by the company.

The 'CCC+' corporate credit rating on Electricidad Argentina
reflects the company's full dependence on fees and dividends
from Edenor to honor its financial debt, meaning that its debt
repayment capacity strongly depends on Edenor's credit quality.
The 'CCC-' ratings on the new bonds reflect structural
subordination of creditors at the holding company level with
regard to debt recovery in a liquidation scenario.  For
speculative-grade companies, when total debt at the subsidiary
level is higher than 30% of total consolidated assets, the
holding company's debt is rated two notches below the corporate
credit rating on the company.

Electricidad Argentina has gained acceptance for its
restructuring proposal from holders of 99.94% of its US$98.2
million defaulted debt. The new notes consist of par bonds of
US$12.9 million with final maturity in 2017 and discount bonds
of US$72.4 million (US$66.5 million class A and US$5.9 million
class B) with final maturity in 2016.

Electricidad Argentina has weak business and financial risk
profiles, deriving from Edenor's high political and regulatory
risk, increasing concerns regarding power supply in Argentina,
high foreign exchange risk, and limited financial flexibility.
In contrast, the ratings incorporate Edenor's solid competitive
position as the largest electricity distributor in Argentina as
well as the smooth maturity profile of Edenor's and Electricidad
Argentina's restructured financial debt.  However, the ratings
do not incorporate the positive impact on Edenor's and
Electricidad Argentina's cash flows from any tariff adjustment
or regulatory changes resulting from the preliminary agreement
between Edenor and Unidad de Renegociacion y Analisis de
Contratos de Servicios Publicos or UNIREN, the entity created by
the government to renegotiate the concessions for public service
companies, owing to uncertainties regarding the time frame of
the approval.

Liquidity

Electricidad Argentina's liquidity and financial flexibility are
very weak, mainly due to its weak financial condition.  The
company had about US$1.5 million in cash as of June 30, 2006.
However, the company's liquidity should slightly improve as a
result of the expected collection of management fees during
2006.

Outlook

The stable outlook mainly reflects the significant reduction of
the company's consolidated debt and extension of its debt
maturities.  The outlook does not account for the potential
tariff increase for Edenor that is incorporated into the
preliminary agreement with UNIREN, an increase that would
significantly improve Edenor's profitability and cash flow as
well as result in dividend payments to Electricidad Argentina by
2008.  Ratings could be lowered, however, if Edenor's financial
performance is weaker than projected or if there is no
significant progress with regard to tariffs and the global
renegotiation of its concession contract by mid-2007.

Business Description

Electricidad Argentina is a holding company whose main asset is
a 51% equity participation in Edenor shares.  Edenor is
Argentina's largest electricity distribution company in terms of
customers served (approximately 2.4 million as of December 2005)
and sales volume (15,677 gigawatt-hours in 2005).  The company
holds a 95-year concession since 1992 to distribute electricity
to a densely populated area (about 7 million inhabitants) in the
northwest of the greater Buenos Aires area and north of the
city.

              Edenor's current ownership structure

Owner                               Ownership share (%)

Electricidad Argentina S.A.                     51
EDF Internacional S.A.                           25
New Equity Ventures LLC                     14
Employees                                       10
Total                                       100

Electricidad Argentina is completely controlled by Dolphin
Energia S.A. and by IESA S.A., whose owners are Marcos Marcelo
Mindlin, Damian Miguel Mindlin, and Gustavo Mariani.  Also, New
Equity Ventures LLC is controlled by the Argentine group
Dolphin, while EDF Internacional S.A. is a subsidiary of
Electricite de France S.A. (EDF; AA-/Negative/A-1+).

Business Risk Profile

Since Electricidad Argentina is a nonoperating holding company,
the company's business risk profile refers to that of its
subsidiary, Edenor.

Edenor has a vulnerable business risk profile, mainly due to the
high regulatory and political uncertainties in Argentina, as
evidenced by the pending renegotiation of its concession
contract and prevailing low tariff level for power distribution
companies.  In September 2005, after more than three years of
negotiations, the company made certain progress in renegotiating
its concession contract by reaching a preliminary agreement with
the UNIREN.  However, the preliminary agreement is still
awaiting final approval from the Argentine government.  While
the preliminary agreement includes a 23% increase in the
distribution margin, there are still medium-term uncertainties
regarding tariff setting mechanisms, service quality targets,
and mandatory investments, which Edenor must comply with.

In addition, Edenor's business risk profile is affected by
uncertainties deriving from the Argentine electric system,
particularly the availability of power in the wholesale market
for the next few fiscal years.  In Standard & Poor's opinion, if
demand continues growing at 5%-6% per year and there are no
significant capacity additions in power transmission and
generation in the 2006-2007 period, the Argentine electric
system will be highly exposed to unexpected events such as
droughts or a very cold winter, when demand for natural gas and
power is at its peak.  This situation poses additional
uncertainties because, according to its concession contract,
Edenor has the obligation to meet demand within its service
area.  Although the preliminary agreement with the UNIREN
incorporates certain language mitigating this situation, it is
not clear as of the date of this report if a lack of supply on
the generation side could be invoked as a force majeure event.

Regulation

The electric sector in Argentina faces high regulatory risk,
especially after the measures taken by the Argentine government
in January 2002, which included the mandatory conversion of
tariffs for public service companies into pesos at US$1 to ARS1
(tariffs were denominated in U.S. dollars according to the
concession contracts), the suspension of any tariff adjustments,
and the start of renegotiations for the concession contracts.
This new legal framework occurred at a time of very strong
currency devaluation and high inflation.

The preliminary agreement with the UNIREN incorporates a 23%
increase in the distribution margin, which translates into an
average revenue and tariff increase of about 15% (since the
distribution margin increase would not apply to residential
clients).  The agreement also incorporates an additional 5%
increase for the distribution margin that must be assigned to
specific investments, as well as a further tariff review and
service-quality targets.  If effectively implemented, the
proposed tariff increase could raise Edenor's cash flow in the
short term, and EASA could start receiving dividends for 2008.
Electricidad Aregentina's long-term credit quality, however,
will depend on the final terms and conditions of Edenor's global
renegotiated concession contract.  Standard & Poor's deems that
Edenor's future rate adjustment mechanism will be a key credit
factor for Electricidad Argentina, especially when considering
that Edenor's and Electricidad Argentina's debt will continue to
be fully U.S. dollar-denominated and that Edenor's revenues
(which determine Electricidad Argentina's revenues) will remain
in pesos and exposed to inflation.

The regulatory framework for Argentina's electricity industry is
defined by Law 24.065 (passed in January 1992), which divides
the power sector into generation, transmission, and distribution
segments.  The Ente Nacional de Electricidad or ENRE is the
regulatory agency in charge of ensuring that each participant
complies with the established regulatory framework, applicable
laws, and concession contracts.  The ENRE can penalize
distribution companies, and if penalties exceed 20% of annual
revenues in one year, the Secretary of Energy is entitled to
execute the existing pledge on the company's Class A shares (in
this case, those in the hands of the controlling company,
Electricidad Argentina) and sell them.

The distribution sector is defined as a natural monopoly in a
concession area where neither third parties nor users are
allowed to build a distribution network.  However, large users
are allowed to purchase electricity directly from generation
companies, but they must pay a fee to the distributor for using
the distribution network. Therefore, the distribution company's
margin is not significantly affected by this situation.  Under
the original concession contract, Edenor has the obligation to
satisfy demand for electricity in the concession area.  The
concession contract also defines the quality of the service
required, which is mainly related to the number and duration of
service interruptions per customer.  Electricidad Argentina's
long-term credit quality is also related to the final definition
of these requirements in Edenor's renegotiated concession
contract.

Markets

National demand is seasonal, with peaks in winter (July) and
summer (December), caused by a combination of uneven industrial
activity (e.g., steel manufacturing, foods, and automotive) and
weather conditions that increase the use of heating and air
conditioning. National electricity consumption reached 87,780
GWh in 2005, having grown at a compounded annual rate of 5.9% in
the 2003-2005 period (while GDP growth was around 9%, 9%, and
8.8%, respectively).  Standard & Poor's expecte domestic demand
to continue to grow at about 4%-5% in the next two years,
assuming the Argentine economy grows at a lower rate.

National demand is concentrated in the city and province of
Buenos Aires, which together account for about one-third of the
country's population and around 55% of total national sales,
representing the country's highest per-capita income levels.
This area, along with the provinces of Cordoba, Santa Fe, and
Mendoza, account for approximately 80% of national consumption
because of their size in relation to the country's population,
high per-capita income levels, and important industrial
concentration.

Edenor is the country's largest distribution company in terms of
clients (about 2.4 million as of Dec. 31, 2005) and energy sold
(15,677 GWh in 2005).  The company benefits from its exclusive
license to provide distribution service to a densely populated
area (consisting of about 7 million inhabitants) in the
northwest of the greater Buenos Aires area and the north of the
city.  Its clients include an important residential base
(traditionally a stable source of cash flow) and industrial
users that are quite diversified in several sectors, including
steel, foodstuff, chemicals, and transportation.

Operations

EDF is Edenor's technical operator through a technical
assistance contract that expires either in September 2010 or
when the Dolphin group sells its controlling equity stake in
Edenor, whichever occurs first.  In addition, Electricidad
Argentina supports Edenor's operations, and for that collects an
annual fee of about US$2 million.

While Edenor's operative performance in terms of energy losses
and service quality is adequate, a prolonged period of low
distribution tariffs significantly reduces the company's ability
to make the necessary maintenance tasks and expand the network
capacity to face growing demand.  As a consequence, the exposure
to higher energy losses, service interruptions, and potential
fines increases.  In addition, there is increasing concern
regarding the company's responsibility in the case of a
potential lack of power supply (from the generation side) in the
2006-2007 period, which could derive in power shortages to a
portion of its client base, mainly large users.

Energy losses for Edenor reached 11.1% in 2005 (similar to the
levels of 2004), of which about 78% were attributable to
technical reasons and the rest mainly to nontechnical ones, such
as illegal connections. Even during the deep economic and social
crisis in Argentina, energy losses remained below 12.5%, the
highest measure since 1996.

Edenor's level of delinquency as of Dec. 31, 2005, amounted to
about US$10 million (or about 2.3% of total annual sales), but
does not currently pose a credit concern. The current regulatory
framework allows distribution companies to disconnect
delinquents 20 days after the invoice payment due date.

Service quality is adequate and within the parameters required
in the concession contract, with an average of 3.4 interruptions
per customer and total interruption time of 5.1 hours per
customer in 2005 (compared with 2.6 and 4.3, respectively, in
2004).  In this context, Edenor faces the risk of approximately
US$60 million in unpaid fines, of which around 95% was imposed
on the company after January 2002.  Edenor considered those
fines part of the whole concession contract renegotiation, and
has not paid them.  In fact, treatment of the fines is
contemplated in the preliminary agreement with the UNIREN, which
holds that once the agreement is promulgated, the company has
the right to pay about US$40 million of those fines in 14
semiannual installments starting in 2007 (and adjusted by future
distribution margin corrections), while the remaining US$20
million (penalties with the ENRE) will be condoned.

In terms of power supply, as mentioned before, distribution
companies in Argentina could be affected by uncertainties
deriving from the electric system, particularly the availability
of power in the wholesale market. We believe that in a context
of continuous growing demand, the Argentine electric system will
continue gradually increasing its exposure to unexpected events
such as droughts or very cold winters, when demand for natural
gas and power is at its peak.

Competitiveness

Edenor has a strong competitive position based on the 95-year
exclusive concession contract since 1992 to distribute and trade
electricity within its service area.  Large users are permitted
to buy power directly from the wholesale electricity market, but
must pay Edenor a fee for the use of the distribution network to
deliver the electricity purchased from the generator.

Financial Risk Profile

Although Edenor improved its debt maturity profile by completing
its financial debt restructuring, Electricidad Argentina will
maintain a high level of indebtedness and weak cash flow
generation (only constituted by Edenor's fee payment).
Therefore, the company will remain highly dependent on the final
approval of the preliminary agreement signed by Edenor and the
UNIREN in September 2005 to receive dividends and meet financial
obligations in 2008-2009.

Profitability/Cash flow

Standard & Poor's expects Electricidad Argentina to benefit from
significant improvement in the debt maturity profiles of Edenor
and EASA, since no significant debt maturities are scheduled
until 2009 in the case of Edenor and 2011 in the case of
Electricidad Argentina. Hence, Electricidad Argentina depends on
future tariff increases at Edenor's level for the repayment of
its debt maturities. If Edenor is granted the 23% increase in
distribution margin during 2006, as determined in the
preliminary agreement signed with the UNIREN, the company should
generate excess cash flows that would allow for the distribution
of dividends to EASA starting in 2008.

Standard & Poor's expects Electricidad Argentina to use its
liquidity and the US$2 million annual fees received from Edenor
to pay the interest that would represent around US$1.9 annually
during 2006-2008 and, to a lesser extent, finance its operating
costs for approximately US$400,000 annually.

Capital structure/Asset protection

Following the debt restructuring process, Electricidad Argentina
reduced its financial debt to about US$85 million from US$98.2
million as of Dec. 31, 2005.

Electricidad Argentina is expected to remain highly exposed to
foreign exchange risk, since the new restructured debt is U.S.
dollar-denominated and because its main source of income is
Edenor, whose revenues are denominated in pesos.  Interest rate
risk is minimal, given that the par and floating bonds will
accrue interest at a fixed rate that will step up gradually.

        Electricidad Argentina S.A. Restructured Debt

New debt  Value (mil. US$)  Interest rate type  Final maturity

Par bond       12.9              Fixed        2017
Floating
bond       72.4              Fixed        2016

Total
restructured
debt             85.3


The floating bond accrues interest at a 2.125% fixed rate during
2006-2008, which will step up to 4% in 2009 and 2010, 5% in 2011
and 2012, 6% in 2013 and 2014, and 7% in 2015 and 2016.  In
addition, the floating bond offers an additional payment (PIK
coupon) of 0.875% during 2006-2008, which will strongly increase
to 7% in 2009 and 2010, then decrease to 6% in 2011 and 2012, 5%
in 2013 and 2014, and 4% in 2015 and 2016.  This additional
payment is subject to the availability of cash flow at
Electricidad Argentina's level.  In case the payment of the PIK
coupon were impossible, it would be capitalized.  If the company
generates excess cash flow during all periods, the floating bond
would accrue interest at 11% during 2009-2016.  The par bond
would accrue interest at a fixed rate of 3% during 2006-2009,
which will increase to 3.5% in 2010, 4% in 2011, and 5% during
2012-2017.

Regarding the debt maturity profile, the floating bond has a
unique maturity in 2016, while the par bond will start its
repayment schedule in 2011 (5% in 2011, 5% in 2012, 5% in 2013,
10% in 2014, 20% in 2015, 25% in 2016, and 30% in 2017).


FARMINTER SA: Trustee Verifies Proofs of Claim Until Nov. 30
------------------------------------------------------------
Ester A. Ferraro, the court-appointed trustee for Farminter
S.A.'s reorganization proceeding, will verify creditors' proofs
of claim until Nov. 30, 2006.

Ms. Ferraro will present the validated claims in court as
individual reports on Feb. 15, 2007.  A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Farminter 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 Farminter's
accounting and\ banking records will follow on March 29, 2007.

On Oct. 12, 2007, Farminter's creditors will vote on a
settlement plan that the company will lay on the table.

The trustee can be reached at:

          Ester A. Ferraro
          Esmeralda 960
          Buenos Aires, Argentina


GONZALO FINDLAY: Last Day for Claims Verification Is on Nov. 27
---------------------------------------------------------------
Court-appointed trustee Mariana Nadales will verify creditors'
proofs of claim against Gonzalo Findlay Wilson y Asociados S.A.
until Nov. 27, 2006.  A court in Buenos Aires ordered that
Gonzalo Findlay's bankruptcy case must be converted into a
reorganization proceeding.

Ms. Nadales will present the validated claims in court as
individual reports on Feb. 12, 2007.  The court will determine
if the verified claims are admissible, taking into account the
trustee's opinion and the objections and challenges raised by
Gonzalo Findlay 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 Gonzalo Findlay's
accounting and banking records will follow on March 26, 2007.

On Sept. 5, 2007, Gonzalo Findlay's creditors will vote on a
settlement plan that the company will lay on the table.

The debtor can be reached at:

          Gonzalo Findlay Wilson y Asociados S.A.
          Tucuman 1455
          Buenos Aires, Argentina

The trustee can be reached at:

          Mariana Nadales
          Hipolito Yrigoyen 1349
          Buenos Aires, Argentina


ITAL MONTERUBBIANESI: Claims Verification Is Until Nov. 14
----------------------------------------------------------
Roberto Daniel Andelman, the court-appointed trustee for Ital
Monterubbianesi S.A.C.I.C.I.'s bankruptcy proceeding, will
verify creditors' proofs of claim until Nov. 14, 2006.

Mr. Andelman will present the validated claims in court as
individual reports on Dec. 26, 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 Ital Monterubbianesi 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 Ital
Monterubbianesi's accounting and banking records will follow on
March 12, 2007.

The trustee can be reached at:

          Roberto Daniel Andelman
          Suipacha 211
          Buenos Aires, Argentina


OLIVARERA RIOJANA: Claims Verification Deadline Is on Oct. 30
-------------------------------------------------------------
Juan J. Rodanelli, the court-appointed trustee for Olivarera
Riojana S.A.'s bankruptcy case, will verify creditors' proofs of
claim until Oct. 30, 2006.

Under the Argentine bankruptcy law, Mr. Rodanelli is required to
present the validated claims in court as individual reports.
Court No. 8 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 Olivarera Riojana
and its creditors.

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

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

Olivarera Riojana was forced into bankruptcy at the request of
Ramona Cabrera, whom it owes US$7,215.75.

Clerk No. 15 assists the court in the case.

The debtor can be reached at:

          Olivarera Riojana S.A.
          Lisandro de la Torre 2473
          Buenos Aires, Argentina

The trustee can be reached at:

          Juan J. Rodanelli
          Gandara 2700
          Buenos Aires, Argentina




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


COMPLETE RETREATS: Committee Wants Rule 2004 Exam on Abercrombie
----------------------------------------------------------------
The Official Committee of Unsecured Creditors in Complete
Retreats LLC and its debtor-affiliates' chapter 11 cases asks
the U.S. Bankruptcy Court for the District of Connecticut to:

   (a) authorize it to serve document requests and a notice of
       deposition upon Abercrombie & Kent, Inc., and to issue
       subpoenas or other process to compel the production of
       documents and A&K's attendance at an oral examination;

   (b) direct A&K to respond to the document requests and
       subpoenas within 30 days of service or a shorter period
       as may be required by subpoena, court order or by the
       parties' agreement; and

   (c) direct A&K or its representatives to submit to an oral
       examination upon reasonable notice.

A&K is a luxury adventure travel company with which certain of
the Debtors entered into licensing agreements since 2003,
Jonathan B. Alter, Esq., at Bingham McCutchen LLP, in Hartford,
Connecticut, notes.  The Licensing Agreements allowed the
Debtors to use the A&K name, logo, trademark and servicemark to
market their vacation clubs.

Because of A&K's relationship with the Debtors, the Committee
believes that A&K has information that is highly relevant to the
Debtors' property, operations, management, and marketing
efforts.

The Committee seeks discovery of these topics within the scope
of Bankruptcy Rule 2004(b) from A&K:

   (a) Contracts, agreements, or arrangements between A&K and
       the Debtors and documents relating to any decision by A&K
       to enter into, modify, continue or terminate the
       contracts, agreements, or arrangements;

   (b) Information on the identity of persons who participated
       in any decision by A&K to enter into, modify, continue or
       terminate the contracts, agreements, or arrangements;

   (c) Efforts, participation, oversight, or approval by A&K
       relating to the marketing of the Debtors' business,
       products, services or memberships;

   (d) Information relating to A&K's referral or solicitation of
       its members or customers to the Debtors;

   (e) Information relating to the Debtors' referral or
       solicitation of their members or customers to A&K;

   (f) Information relating to the Debtors' use of the A&K name,
       logo, trademark or servicemark;

   (g) Representations made by or on behalf of the Debtors to
       any third parties;

   (h) Information relating to the Debtors' management,
       operation, financing, or marketing;

   (i) Information relating to the Debtors' financial condition;

   (j) Information relating to payments, commissions, transfers
       or consideration of any kind received by or due to A&K
       from the Debtors;

   (k) Communications between A&K and the Debtors, including
       those relating to amounts due or claimed to be due from
       the Debtors to A&K;

   (l) Settlements between A&K and the Debtors; and

   (m) Relationships between A&K and other companies relating to
       the licensing and use of the A&K name, logo, trademark or
       servicemark.

                  About Complete Retreats

Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses.  In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members.  Complete Retreats and its debtor-
affiliates filed for chapter 11 protection on July 23, 2006
(Bankr. D. Conn. Case No. 06-50245).  Nicholas H. Mancuso, Esq.
and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors
in their restructuring efforts.  Michael J. Reilly, Esq., at
Bingham McCutchen LP, in Hartford, Connecticut, serves as
counsel to the Official Committee of Unsecured Creditors.  No
estimated assets have been listed in the Debtors' schedules,
however, the Debtors disclosed US$308,000,000 in total debts.
(Complete Retreats Bankruptcy News, Issue No. 8; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)




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


AFRAMAX I: Creditors Must File Proofs of Claim by Oct. 11
---------------------------------------------------------
Aframax I Ltd.'s creditors are given until Oct. 11, 2006, to
prove their claims to Robin J. Mayor, the company's liquidator,
or be excluded from receiving any distribution or payment.

Creditors are required to send by the Oct. 11 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. Mayor.

A final general meeting will be held at the liquidator's place
of business on Nov. 2, 2006, at 9:30 a.m., or as soon as
possible.

Aframax I'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.

Aframax I's shareholders agreed on Sept. 25, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.

The liquidator can be reached at:

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


GALVEX HOLDINGS: Section 341(a) Meeting Scheduled for Nov. 6
------------------------------------------------------------
Diana G. Adams, the United States Trustee for Region 2, will
convene a meeting of Galvex Holdings Limited's creditors at
11:00 a.m., on Nov. 6, 2006, at the Second Floor of the Office
of the United States Trustee, 80 Broad Street in New York.  This
is the first meeting of creditors required under Section 341(a)
in all bankruptcy cases.

This is the first meeting of creditors after the Debtor's
chapter 11 case has been converted to a chapter 7 liquidation
proceeding.

All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.

Headquartered in New York City, New York, Galvex Holdings
Limited -- http://www.galvex.com/-- and its affiliates operate
the largest independent galvanizing line in Europe.  The Debtors
have offices in New York, Tallinn, Bermuda, Finland, Ukraine,
Germany and the United Kingdom.  The company and four of its
affiliates filed for chapter 11 protection on Jan. 17, 2006
(Bankr. S.D.N.Y. Lead Case No. 06-10082).  Galvex Capital, LLC,
is represented by David Neier, Esq., at Winston & Strawn LLP,
and Gerard DiConza, Esq., at DiConza Law, P.C.  Galvex Holdings
Ltd. and the other debtor-affiliates are represented by David
Neier, Esq., at Winston & Strawn LLP, and Lori R. Fife, Esq.,
Marcia L. Goldstein, Esq., and Shai Waisman, Esq., at Weil,
Gotshal & Manges, LLP.  John P. McNicholas, Esq., and Thomas R.
Califano, Esq., at DLA Piper Rudnick Gray Cary US LLP, represent
the Official Committee of Unsecured Creditors.  When the Debtors
filed for protection from their creditors, they estimated assets
and debts of more than US$100 million.  On Aug. 30, 2006, Judge
Drain converted the chapter 11 case of Galvex Holdings to a
chapter 7 liquidation proceeding.  John S. Pereira is the
Debtor's Chapter 7 Trustee.


MONDRIAN OFFSHORE: Proofs of Claim Filing Is Until Oct. 11
----------------------------------------------------------
Mondrian Offshore Funds Ltd.'s creditors are given until
Oct. 11, 2006, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.

Creditors are required to send by the Oct. 11 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. Mayor.

A final general meeting will be held at the liquidator's place
of business on Nov. 1, 2006, at 9:30 a.m., or as soon as
possible.

Mondrian Offshore'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.

Mondrain Offshore's shareholders agreed on Sept. 22, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

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


MONTECITO INSURANCE: Filing of Proofs of Claim Is Until Oct. 11
---------------------------------------------------------------
Montecito Insurance Company Ltd.'s creditors are given until
Oct. 11, 2006, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.

Creditors are required to send by the Oct. 11 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. Mayor.

A final general meeting will be held at the liquidator's place
of business on Oct. 31, 2006, at 9:30 a.m., or as soon as
possible.

Montecito Insurance'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.

Montecito Insurance's shareholders agreed on Sept. 26, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.

The liquidator can be reached at:

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


PRINCE DELI: Stephen Lowe Named Liquidator on Wind-Up Process
-------------------------------------------------------------
The Supreme Court of Bermuda appointed on Aug. 10, 2006, Stephen
Lowe of the Registrar of Companies to be the liquidator for the
winding-up proceeding of Prince Deli and Bakery Ltd.

The company can be reached at:

          Prince Deli
          24 Brunswick St, Hamilton HM 09
          Tel: 441-295-0098

The liquidator can be reached at:

          Stephen Lowe
          Registrar of Companies
          Government Administration Building
          30 Parliament Street
          Hamilton HM 12, Bermuda
          Tel: 297-7753


REFCO INC: Will Pay US$705 Mil. to Resolve All Secured Claims
-------------------------------------------------------------
Refco Group Ltd., LLC, and its affiliated debtors received
approval from the U.S. Bankruptcy Court for the Southern
District of New York, on Sept. 27, 2006, to pay its secured
creditors, including a group of banks led by Banc of America
Securities, as agent, approximately US$705 million to settle all
secured claims against Refco.

"We are very pleased with the Court's decision," said Refco's
Chief Restructuring Officer David Pauker, who testified at the
hearing.  "The approval of this settlement was a necessary step
toward effecting the global settlement, obtaining approval of
the Debtor's bankruptcy plan and making distributions to
unsecured creditors."

Under the terms of the settlement approved by the Court, Refco's
secured lenders will receive payment in full of principal, plus
interest at the contract rate, through the payment date, but
have agreed to forego payment of default interest. In addition,
the Debtors, lenders and certain third parties will exchange
mutual releases.

In papers filed with the Bankruptcy Court, Refco said that the
agreement with the secured creditors was in the best interest of
the Refco estates and their creditors because, among other
things, it limits "potentially substantial secured claims for
additional interest, fees and indemnities."

                       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)


TOTAL FITNESS: Stephen Lowe Named Liquidator on Wind-Up Process
---------------------------------------------------------------
The Supreme Court of Bermuda appointed on Aug. 10, 2006, Stephen
Lowe of the Registrar of Companies to be the liquidator for the
winding-up proceeding of Total Fitness Center Ltd.

The liquidator can be reached at:

          Stephen Lowe
          Registrar of Companies
          Government Administration Building
          30 Parliament Street
          Hamilton HM 12, Bermuda
          Tel: 297-7753




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


PETROLEO BRASILEIRO: Confident on YPFB's Continued Deliveries
-------------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras is confident that
Yacimientos Petroleros Fiscales Bolivianos can continue
supplying gas to Brazil despite the Bolivian oil firm's recent
difficulties.  Under their gas supply agreement, Yacimientos
Petroleros has to make deliveries to Brazil until 2019.

The agreement in effect between the two state-oil firms has been
abided by in its entirety since July 1, 1999.  Throughout this
period, the Bolivian national company has honored the
contractual amounts demanded by Petrobras.

To the present day, Petrobras Bolivia, the operator of the main
gas supply fields for this agreement, has made all necessary
investments to maintain production capacity compatible with the
commitments that have been taken on.

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

                        *    *    *

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

                        *    *    *

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

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

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


PETROLEOS DE VENEZUELA: Starts Joint Projects Talks with Bolivia
----------------------------------------------------------------
Petroleos de Venezuela, the state-owned oil firm of Venezuela,
has launched negotiations with Yacimientos Petrolˇferos Fiscales
Bolivianos, its Bolivian counterpart, for joint exploration and
production projects at the northern part of La Paz, Agencia
Boliviana de Informacion reports.

According to Business News Americas, Petroleos de Venezuela and
Yacimientos Petroliferos started studying four blocks north of
La Paz more than two months ago.

BNamericas relates that Petroleos de Venezuela and Yacimientos
Petroliferos plan to set up a joint venture and call it
Petroandina Comercio y Suministro.  Yacimientos Petroliferos
would have majority share.

The results of the talks between the firms could be disclosed in
October, BNamericas states.

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

                        *    *    *

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


* BOLIVIA: Seeking Support on Proposal to Cancel IADB Loans
-----------------------------------------------------------
Bolivia -- along with Nicaragua, Guyana, Honduras and Haiti
-- will seek the support of Brazil, Mexico and Colombia on a
proposal to forgive their loans from the Inter-American
Development Bank aka IADB, Associated Press reports, citing
Guyana's President Bharrat Jagdeo.

President Jagdeo told the press that Nicaragua, Bolivia, Guyana,
Honduras and Haiti met on the sidelines of an International
Monetary Fund meeting in Singapore and agreed to ask the support
of the three larger nations.

Citing the Guyanese president, AP relates that Brazil, Colombia
and Mexico were concerned that funding the write-offs will boost
the cost of borrowing.

President Jagdeo told AP, "We are awaiting the elections in
Brazil next week and immediately thereafter we propose to lobby
the presidents of Brazil, Mexico and Colombia to see if we can
get the three to support the initiative.  Most of the other
countries are supportive or will not stand in the way."

AP notes that the IDB had agreed in April to forgive about
US$3.5 billion of debt Nicaragua, Bolivia, Guyana, Honduras and
Haiti owed.

However, Brazil and Mexico have told AP that richer members of
the IDB should "foot the bill".

                        *    *    *

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
===========


ADVANCED MEDICAL: Moody's Assigns Loss-Given-Default Rating
-----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the Medical Device sector, the rating agency
confirmed its B1 Corporate Family Rating for Advanced Medical
Optics, Inc.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Sr. Sec.
   Revolving
   Credit
   Facility               B1      Ba1     LGD 1        7%

   2.5% Convertible
   Sr. Sub. Notes         B3      B2      LGD 4       66%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).


BANCO BRADESCO: Sees 25% Growth in Loan Portfolio
-------------------------------------------------
Banco Bradesco SA expects loans to increase 25% this year,
despite a slowdown in credit growth reported by Brazil's central
bank, Agencia Estado relates.

Business News Americas states that Milton Vargas, Banco
Bradesco's vice president, told members of Apimec -- an
investment analyst association -- that the company's retail loan
portfolio will increase up to 35%, while commercial loans will
grow up to 17%.

According to BNamericas, Banco Bradesco's loan book increased by
27% to BRL88.6 billion in June 2006, compared with the same
month last year.  Loans to individuals rose 39.9%, and loans to
businesses grew 18.9%.

Mr. Vargas told BNamericas that Banco Bradesco expects to grant
about BRL2 billion in real-estate loans by the end of 2006.
Banco Bradesco has already approved BRL1.4 billion in real-
estate loans.

Banco Bradesco's annual return on equity will continue its
steady decline, decreasing up to 25% this year, BNamericas says,
citing Mr. Vargas.

BNamericas notes that Banco Bradesco's return on equity was 35%
in the second quarter of 2006, compared with 38.1% in the second
quarter of last year.  Meanwhile, its return on equity for the
first half of 2006 was 34.4%, decreasing from 34.9% in the same
period of last year.

A study Economatica, an economic consultant group, conducted
earlier this year showed that Banco Bradesco recorded an
annualized return on equity of 31.9% in 2005, only behind local
archrival Banco Itau at 35.6% among all banks in Latin America
and the US, BNamericas states.

Banco Bradesco has no plan to enter the Novo Mercado index on
Bovespa, the Sao Paulo stock exchange, Mr. Vargas told
BNamericas.

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)'.


CENTRAIS ELECTRICAS: Lists Shares on Brazil's Stock Exchange
------------------------------------------------------------
Centrais Electricas Brasileiras SA aka Eletrobras said in a
statement that has listed on Sept. 29 its shares at primary
corporate governance level on Bovespa, Brazil's main stock
exchange.

According to the statement, the shares will trade at level 1.

Business News Americas relates that Eletrobras has traded on
Bovespa without commitment to corporate governance.

Eletrobras officials, however, have told BNamericas that they
want to boost the firm's transparency to expand access to
financial markets.

Eletrobras, at Bovespa's level 1, has to display greater
transparency in its accounting and communications with
shareholders.  The company must ensure that at least 25% of its
shares are traded, BNamericas reports.

                        *    *    *

On Feb. 28, 2006, Standard & Poor's assigned these ratings to
Centrais Electricas Brasileiras SA:

     * Long-Term Foreign Issuer Credit, BB; and
     * Long-Term Local Issuer Credit, BB+.


CP CIMENTO: Moody's LatAm Downgrades Debenture Ratings to Ca
------------------------------------------------------------
Moody's America Latina downgraded the ratings of CP Cimento e
Participacoes S.A.'s debentures to Ca from Caa2 on its global
scale and to Ca.br from Caa2.br on its Brazilian national scale.
The rating outlook is stable.

The downgrade reflects Moody's view of the company's precarious
liquidity situation reflecting its excessive short-term debt of
some BRL 450 million at March 31, 2006 (latest financials
available) compared to BRL 22 million cash balance, which could
precipitate a default or distressed restructuring of CP
Cimento's debentures due on Oct. 1, 2006.  The Ca rating
reflects prospects for material loss to bondholders in the event
of a default.  CP Cimento's operating performance and cash flows
have been substantially impaired by the depressed cement prices
in Brazil reflecting fierce competition.  Also, increased
production costs, boosted inventories of slag, and the high cost
of the company's debt have contributed to the deterioration of
CP Cimento's financial condition.

A meeting of the debentures holders scheduled for
Sept. 29, 2006, will vote upon CP Cimento's proposal to
reschedule the debentures' redemption date.  Even if the company
succeeds in the negotiations, it still has a substantial amount
of debt maturities in the last quarter of this year, including
USD 30 million bonds due in November and substantial working
capital loans with local banks.  Moody's regards a forced debt
maturity extension as tantamount to a default, given the lack of
reasonable options to the debentures holders and the potential
for economic loss.

CP Cimento's management has publicly stated its intention to
dispose some assets and use the proceeds to reduce indebtedness.
The success of the company's divestment program will be crucial
to its debt restructuring going forward.

CP Cimento is a non-operational holding company that controls
two cement producers in Brazil, Cimento Tupi S.A. and Companhia
de Cimento Ribeirao Grande.  Headquartered in Rio de Janeiro, CP
Cimento is Brazil's seventh largest cement producer with annual
production capacity of 3.7 million tons.  Net revenues for the
twelve months ended March 31, 2006 were approximately BRL416
million (US$179 million).


GERDAU SA: Dismisses Corus Merger Rumors
----------------------------------------
"In the process of global [steel industry] consolidation, Gerdau
defines its role as a consolidating agent.  However, the group
is not considering the possibility of a merger with Corus,"
Gerdau SA said in a statement.

Business News Americas relates that Corus, an Anglo-Dutch steel
group, is seeking for potential acquisitions.  Some industry and
media speculated that Gerdau could be considering a merger with
Corus as part of its growth strategy.

Gerdau has recently acquired a 40% stake in Sidenor -- a Spanish
steel group -- and a 50% plus one share stake in Siderperu, the
largest steelmaker in Peru, BNamericas states.

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

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

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

                        *    *    *

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

                        *    *    *

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


GULFMARK OFFSHORE: S&P Lowers Corporate Credit Rating to B+
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered the corporate credit
rating on marine services company GulfMark Offshore Inc. to 'B+'
from 'BB-'. At the same time, GulfMark's senior unsecured rating
was lowered to 'B' from 'B+'.  Finally, the outlook was revised
to stable from negative.

As of June 30, 2006, Houston, Texas-based GulfMark had about
US$241 million of debt.

"The rating actions reflect lower-than-expected deleveraging
during the past year, combined with expectations for limited
debt repayment over the next 12 to 18 months, as GulfMark must
fund elevated capital expense levels related to new vessel
construction during 2007," said Standard & Poor's credit analyst
Paul B. Harvey.  "Despite the anticipated strong near-term
market conditions, the debt funding needed for new vessel
deliveries during 2007, a lack of contracts on the new vessels,
as well as limited contracted cash flows beyond 2007, raise
concerns that market conditions could sour at a time of elevated
debt levels and contract renewals," he continued.

The stable outlook reflects expectations for continued, solid
near-term market conditions and modest debt repayment in advance
of 2007 spending plans.  If GulfMark continues to improve
operating performance and exhibits a greater degree of financial
discipline with regard to its new build programs, the ratings
have the potential to improve over the medium term.  However, if
debt levels fail to improve over the medium term and aggressive
growth is pursued to the detriment of financial strength,
ratings could be lowered.

GulfMark Offshore, Inc., headquartered in Houston, Texas, is a
provider of offshore marine services primarily to oil and gas
exploration production firms in the North Sea, India, Southeast
Asia, Brazil and West Africa.


NOSSA CAIXA: Sets Aside 10% of Share Offer for Retail Investors
---------------------------------------------------------------
Banco Nossa Caixa SA said in a filing with Bovespa, the Sao
Paulo stock exchange, that it has reserved at least 10% of an
upcoming secondary share offer for retail investors.

Business News Americas relates that at least 5.75% of the shares
set aside are for Nossa Caixa's workers and retirees, who will
get 15% discount per share.

According to BNamericas, Nossa Caixa will set the price per
share on Oct. 17, and investors could reserve shares on
Oct. 4 to 17.

BNamericas notes that Nossa Caixa will end the share offer on
Nov. 17.

As reported in the Troubled Company Reporter-Latin America on
Aug. 30, 2006, Nossa Caixa said that it was preparing to sell
over 18.8 million ordinary shares in its second public share
offer in less than a year.  The bank could extend the offer with
an additional 2.83 million shares.

BNamericas underscores that the offer could also be extended
with an additional 20.2% of capital.

UBS will be the lead coordinating bank, along with ABN Amro
Real, Banco Fator and Deutsche Bank, BNamericas reports.

                        *    *    *

On Oct. 19, 2005, Moody's Investors Service upgraded Banco Nossa
Caixa S.A.'s long-term foreign currency deposit rating to B1
from B2 with a positive outlook.

At the same time, the ratings agency upgraded Banco Nossa
Caixa's long-term foreign currency debt rating to Ba1 with a
stable outlook.


PETROLEO BRASILEIRO: Inks Accord with Petrojarl Production
----------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras, the state oil firm of
Brazil, has entered into a contract with Petrojarl Production
AS, Nordic Business Report relates.

According to the report, the contract -- which was signed for an
initial period of two years at US$33 million annually, covers
the provision of a floating production, storage and offloading
vessel for the Siri project in Brazil.

Teekay Petrojarl Offshore LP -- a joint venture of Petrojarl and
Teekay Shipping Corp. -- will carry out the contract, Nordic
Business reports.

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.


RBS PARTICIPACOES: S&P Lists Vulnerabilities That Affect Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services raised on April 10, 2006, its
foreign and local currency ratings on RBS Participacoes S.A. to
'B' from 'B-'.  The rating on RBS' US$59 million bonds due 2007
was also raised to 'B'.  The outlook was revised to stable from
positive.

Standard & Poor's ratings on RBS Participacoes S.A. reflect the
group's susceptibility to:

   -- the volatile media industry in Brazil (although it has
      become more resilient due to its more efficient operations
      and better margins);

   -- the still short-term nature of its debts, which imposes
      significant refinancing risks; and

   -- limited financial flexibility.

These vulnerabilities are partially offset by the group's
dominant share of audience and advertising in its service area,
its quality programming and the distribution of TV Globo's high-
quality content, improving cash-flow metrics, its successful
operational turnaround, and its track record of financial
support from shareholders.

Brazil-based RBS Participacoes S.A. is part of the RBS Group,
which operates in television and radio broadcasting, newspaper
publishing, and other media businesses in the southern states of
the country.  Total gross debt for the combined RBS entities as
of June 2006 was US$252 million.

RBS has been showing consistent operational improvements and the
ability to report higher operating margins.  Consolidated EBITDA
reached a strong US$107.1 million in the 12 months ended June
2006 compared to US$92.3 million in the same period of 2005.
The positive environment for advertising-media spending in
Brazil real growth was 15.3% in 2004 and 8.6% in 2005-coupled
with RBS' efforts to reduce operating costs by centralizing
procurement and streamlining its organizational structure, have
resulted in much improved profitability and cash-flow protection
measures.  The EBITDA margin reached 30.7% in the 12 months
ended 2006, compared to 25.6% in the same period of 2005 and
funds from operations-to-total debt also improved to 27.8% in
the 12 months ended 2006, compared to 19.1% in the same period
of the previous year, a level that we expect to be maintained in
the future. Taking into consideration that newsprint prices
should not continue on their upward trend, the still favorable
environment for advertising in Brazil, and mild fluctuation of
the local currency, the rating agency expects RBS to show stable
results at least during 2006 and 2007.

Standard & Poor's expects capital structure, as measured by
total debt to EBITDA (currently satisfactory at about 2.3x), to
improve further during the next couple of years, helped by
greater EBITDA generation and projected debt amortization.  RBS
has already been benefiting from some expensive debt pay downs:
the interest coverage (EBITDA-to-gross interest) ratio reached
3.2x in the 12 months ended June 2006 compared to 2.2x in the
same period of previous year.

Standard & Poor's analyzes RBS' business profile on a
consolidated basis, as the different businesses complement and
bring synergies to each other, and the group's chief operations
guarantee RBS' notes.  The main companies of the RBS Group
(representing about 80% of revenues) are:

   -- Zero Hora-Editora Jornalistica S.A.,
   -- Televisao Gaucha S.A.,
   -- RBS TV de Florianopolis S.A., and
   -- Radio Gaucha S.A.

Liquidity

One of the main constraints to the rating is the still-relevant
maturities RBS faces in the short term.  Nevertheless, we
believe that refinancing risk has declined because of the
company's capacity to generate more robust free cash flow and
due to the refinancing of a significant portion of its
derivative exposure (negative margin calls on its swap contracts
in 2005, which created a liability of US$70 million) with new
local-currency bank loans, monthly amortizing up to 2010.  RBS
had a reasonable cash position of US$97.2 million at June 2006
(after the sale of a significant part of shares in Net Servicos
de Comunicacao), compared to short-term maturities of US$134.2
million. Short-term debt includes the remainder US$58.6 million
of its Global MTN Program due in April 2007.  RBS should use a
combination of cash at hand and free cash flows from operations
to meet the bond maturity.

Outlook

The stable outlook reflects the improved level of cash-flow
generation delivered by RBS, expected to be sustained at least
in 2006, which helped the company achieve cash-flow coverage
ratios that support its current rating, even though refinancing
risk remains a concern.  The still-high concentration of debt
maturities in 2007 (mainly the bond maturity) poses challenges
to RBS and in a way constrains the credit rating.  If the
company can show significant debt reduction during 2006 and/or a
more definite solution to its 2007 bond maturity while
maintaining its current operating performance, a revision of the
outlook, or even an upgrade, could be warranted.

On the other hand, a deterioration of the local advertising
market or the economic prospects for Brazil, along with adverse
financial markets and lack of credit availability, could hinder
the company's financial flexibility and lead to a downward
revision of the rating.


TELE NORTE: Sets Extraordinary Shareholders' Meeting on Nov. 13
---------------------------------------------------------------
Telemar Norte Leste S.A., Telemar Participacoes S.A., and Tele
Norte Leste Participacoes S.A. scheduled an extraordinary
shareholders' meeting for Nov. 13, 2006, at 10:00 a.m. at:

          Rua Humberto de Campos 425
          Rio de Janeiro, Brazil

At the companies' extraordinary shareholders' meeting, preferred
shareholders (including ADS holders voting through the Bank of
New York, as depositary) will consider and vote upon a corporate
transaction under Brazilian corporate law known as an
incorporacao de acoes or stock swap, which is part of the
overall restructuring originally announced on April 17, 2006.

                Overview of Restructuring

The objective of the proposed corporate restructuring is to
simplify the shareholding structure of the Telemar Companies
(currently distributed among three companies with an aggregate
of six different classes of shares) by creating one combined
entity, TmarPart.  Upon the completion of all of the steps
contemplated in the proposed corporate restructuring, only one
series of TmarPart common shares will be traded on the New
Market segment (Novo Mercado) of the Sao Paulo Stock Exchange
(Bolsa de Valores de Sao Paulo or BOVESPA) and in the form of
ADRs on the New York Stock Exchange.  If the corporate
restructuring of the Telemar Companies is successfully
completed, a proposal will be made to change TmarPart's name to
Oi Participacoes S.A.  The stock swap is the first step in the
overall restructuring plan.

Mr. Luiz Eduardo Falco, CEO of Telemar Companies, said, "Despite
being the largest integrated telecom operator in Latin America,
with the best balance of cash flow and growth businesses in
mobile and broadband, Telemar is trading at a deep discount to
its peers.  Telemar's proposed restructuring meets every
significant demand presented by shareholders in recent years
related to our governance, and we are confident that it will
result in a revaluation of the company for the benefit of all
shareholders."

              Benefits of the Corporate Restructuring

The Board of Directors believes that restructuring Telemar
Companies into one company will unlock greater value for all
shareholders through strengthening the fundamentals, capital
structure, and valuations of the businesses of the Telemar
Companies.  Key benefits include:

   -- Relinquishment of control by TmarPart's current
      shareholders in favor of conferring voting rights to all
      shareholders following the stock swap (1 share = 1 vote),
      including the extension of 100% tag-along rights to all
      shareholders;

   -- Obligation to make a public offer for the acquisition of
      shares to all other shareholders, in case of an
      acquisition of shares greater than 20% by any shareholder
      or group of shareholders;

   -- Adoption of enhanced corporate governance standards as
      established under the Novo Mercado listing requirements,
      the highest criteria in Brazil;

   -- Creation of a board of directors composed of 11 members, a
      majority of which will be independent;

   -- Limitation on the number of votes that may be exercised by
      the same shareholder or group of shareholders to 10% of
      the capital stock, regardless of the number of shares
      held;

   -- Increased share liquidity resulting from the grouping of
      all shareholders of the Telemar Companies into a single
      company and one class of shares;

   -- New market capitalization and concentrated liquidity
      should increase the stock's index weighting, making
      Telemar the largest publicly listed corporation in Brazil;

   -- Creation of a defined distribution policy that should
      result in a more efficient use of capital:

   -- The payment of cash to shareholders in respect of the 2006
      and 2007 fiscal years of BRL3 billion;

   -- The distribution 80% of free cash flow, always in
      accordance with TmarPart's financial stability and the
      operational results in those years;

   -- Improved access to the equity markets will increase
      capacity to raise financing resources generally;

   -- Simplified corporate structure will result in reduction of
      operating and financial costs;

   -- More efficient capital structure will allow greater
      flexibility in the future, including potential acquisition
      transactions using the company's stock as currency.

             Exchange Ratio for Existing Shareholders

Telemar Companies' management can confirm that the exchange
ratios will be maintained as previously disclosed.  The exchange
ratios were determined by management, based on discussions with
advisors, as well as the information contained in the Corporate
Restructuring Valuation Report prepared by N M Rothschild & Sons
(Brasil) Ltda.

Mr. Falco said: "In recommending the corporate restructuring,
the Board of Directors of TNL has determined that the overall
benefit to TNL's common and preferred shareholders is
significant and the valuation ratio fairly and appropriately
reflects these benefits."

Telemar provides telecommunication services in South America.
It offers local, intra-regional long distance, and data
transmission services in 16 Brazilian states, which covers
approximately 64% of the country.  Mobile services are provided
through its wireless unit Oi, and it has acquired data
transmission services provider Pegasus.

                        *    *    *

As reported on Aug. 21, 2006, Fitch Ratings upgraded Tele Norte
Leste Participacoes S.A.'s foreign currency issuer default
rating to 'BB+' from 'BB'.


TELE NORTE: Telemar Norte Declares BRL202MM Interest on Capital
---------------------------------------------------------------
Tele Norte Leste Participacoes S.A. disclosed that Telemar Norte
Leste S.A. approved a declaration of Interest on Capital for
BRL202,105,558.08 to be distributed along with the mandatory
dividends to be declared for 2006.

The company's proposal will be presented and voted on at the
2006 General Shareholders' Meeting, to be held until
April 30, 2007.

The details on the declaration of interest on capital:

   Brazilian Record Date: Sept. 29, 2006
   Brazilian Ex-Date: Oct. 02, 2006
   Gross Interest on Capital:

      -- Common shares: BRL0.8031
      -- Preferred shares Class A: BRL0.8834
      -- Preferred shares Class B: BRL0.8031

Telemar provides telecommunication services in South America.
It offers local, intra-regional long distance, and data
transmission services in 16 Brazilian states, which covers
approximately 64% of the country.  Mobile services are provided
through its wireless unit Oi, and it has acquired data
transmission services provider Pegasus.

                        *    *    *

As reported on Aug. 21, 2006, Fitch Ratings upgraded Tele Norte
Leste Participacoes S.A.'s foreign currency issuer default
rating to 'BB+' from 'BB'.


VARIG S.A.: T. Rowe Price Increases Stake in Rival TAM Linhas
-------------------------------------------------------------
T. Rowe Price International Funds, Inc.'s Latin America Fund
increased its holdings in TAM Linhas Aereas, S.A. -- VARIG,
S.A.'s major competitor -- during the six-month period ended
April 30, 2006, the hedge fund disclosed in a regulatory filing
with the U.S. Securities and Exchange Commission.

The Latin America Fund holds 2,157,000 shares of preferred stock
in TAM, valued at US$55,615,000, as of April 30, 2006.  The
Latin America Fund manages US$2,130,573,000 in total assets.
The TAM stake represents a 2% investment by the Fund.

David J.L. Warren, president of T. Rowe Price, notes that TAM is
expanding its fleet and capitalizing on the financial
difficulties of VARIG.  "TAM has a large and expanding market
share in Brazil, where the airline industry overall shows good
growth potential," Mr. Warren says.

At Dec. 31, 2005, TAM operated 49% more direct flights than
VARIG, and operated 96% more frequent daily flights than VARIG,
according to the airline's report filed with the SEC.

Brazil accounts for nearly 60% of the Fund's assets.

Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin
America.  VARIG's principal business is the transportation of
passengers and cargo by air on domestic routes within Brazil and
on international routes between Brazil and North and South
America, Europe and Asia.  VARIG carries approximately 13
million passengers annually and employs approximately 11,456
full-time employees, of which approximately 133 are employed in
the United States.

The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a
competitive landscape, high fuel costs, cash flow deficit, and
high operating leverage.  The Debtors may be the first case
under the new law, which took effect on June 9, 2005.  Similar
to a chapter 11 debtor-in-possession under the U.S. Bankruptcy
Code, the Debtors remain in possession and control of their
estate pending the Judicial Reorganization.  Sergio Bermudes,
Esq., at Escritorio de Advocacia Sergio Bermudes, represents the
carrier in Brazil.

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts. (VARIG Bankruptcy News, Issue No. 32; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)




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


ABF CUBE: Invites Shareholders for a Final Meeting on Oct. 19
-------------------------------------------------------------
ABF Cube Limited's shareholders will convene for a final meeting
on Oct. 19, 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 liquidators can be reached at:

           Chris Marett
           Joshua Grant
           Maples Finance Limited
           P.O. Box 1093, George Town
           Grand Cayman, Cayman Islands


ADVISORY EUROPEAN: Last Shareholders Meeting Is Set for Oct. 19
---------------------------------------------------------------
Advisory European (General Partner) Inc.'s shareholders will
convene for a final meeting on Oct. 19, 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 liquidators can be reached at:

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


ARCLIGHT LTD: Final Shareholders Meeting Is Set for Oct. 19
-----------------------------------------------------------
Arclight Ltd.'s final shareholders meeting will be at 10:00 a.m.
on Oct. 19, 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 liquidator can be reached at:

          Ying Hing Chiu
          c/o CIBC Bank and Trust Company (Cayman ) Ltd.
          11 Dr. Roy's Drive
          P.O. Box 694, George Town
          Grand Cayman, Cayman Islands


ASIA PROJECT: Calls Shareholders for a Final Meeting on Oct. 19
---------------------------------------------------------------
Asia Project Holdings I Co., Ltd.'s shareholders will convene
for a final meeting on Oct. 19, 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 liquidators can be reached at:

           Guy Major
           Emile Small
           Maples Finance Limited
           P.O. Box 1093, George Town
           Grand Cayman, Cayman Islands


AVEBURY FINANCE: Final Shareholders Meeting Is Set for Oct. 19
--------------------------------------------------------------
Avebury Finance CDO Limited's shareholders will convene for a
final meeting on Oct. 19, 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 liquidators can be reached at:

           Phillipa White
           Joshua Grant
           Maples Finance Limited
           P.O. Box 1093, George Town
           Grand Cayman, Cayman Islands


CX B-HLW: Creditors Have Until Oct. 20 to File Proofs of Claim
--------------------------------------------------------------
CX B-HLW Company Ltd.'s creditors are required to submit proofs
of claim by Oct. 20, 2006, to the company's liquidators:

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

Creditors who are not able to comply with the Oct. 20 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


HUB ASSET: Shareholders Convene for a Final Meeting on Oct. 19
--------------------------------------------------------------
Hub Asset Funding Limited's shareholders will convene for a
final meeting on Oct. 19, 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


IRIDIUM INC: Last Shareholders Meeting Is Scheduled for Oct. 19
---------------------------------------------------------------
Iridium Inc.'s shareholders will convene for a final meeting on
Oct. 19, 2006.

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

The liquidator can be reached at:

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


JOHCM CUMULUS: Liquidator Presents Wind Up Accounts on Oct. 19
--------------------------------------------------------------
Johcm Cumulus Fund's shareholders will convene for a final
meeting on Oct. 19, 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


LIZMAR INVESTMENT: Last Shareholders Meeting Is Set for Oct. 19
---------------------------------------------------------------
Lizmar Investment Ltd.'s shareholders will convene for a final
meeting on Oct. 19, 2006.

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

The liquidator can be reached at:

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


MODENA LTD: Sets Final Shareholders Meeting for Oct. 19
-------------------------------------------------------
Modena Ltd.'s shareholders will convene for a final meeting on
Oct. 19, 2006.

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

The liquidator can be reached at:

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


SAND DOLLAR: Shareholders Gathering for Final Meeting on Oct. 19
----------------------------------------------------------------
Sand Dollar Ltd.'s shareholders will convene for a final meeting
on Oct. 19, 2006.

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

The liquidator can be reached at:

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


SPN III: Final Shareholders Meeting Is Scheduled for Oct. 19
------------------------------------------------------------
SPN III's shareholders will convene for a final meeting on
Oct. 19, 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 liquidators can be reached at:

           Phillip Hinds
           Joshua Grant
           Maples Finance Limited
           P.O. Box 1093, George Town
           Grand Cayman, Cayman Islands


TEXEL FIXED (HEDGE): Final Shareholders Meeting Is on Oct. 20
-------------------------------------------------------------
Texel Fixed Income Hedge Fund Ltd.'s final shareholders meeting
will be at 11:00 a.m. on Oct. 20, 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 liquidator can be reached at:

          Lawrence Edwards
          Attention: Aysha Jackson
          P.O. Box 258, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914 8695
          Fax: (345) 949 4590


TEXEL FIXED (MASTER): Last Shareholders Meeting Is on Oct. 20
-------------------------------------------------------------
Texel Fixed Income Master Fund Ltd.'s final shareholders meeting
will be at 10:00 a.m. on Oct. 20, 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 liquidator can be reached at:

          Lawrence Edwards
          Attention: Aysha Jackson
          P.O. Box 258, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914 8695
          Fax: (345) 949 4590




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


ANIXTER INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating
----------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the Wholesale Distribution (Excluding
Healthcare) sector, the rating agency confirmed its Ba1
Corporate Family Rating for Anixter International Inc.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities:


                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$200 million
   5.95% Unsecured
   Notes                  Ba1     Baa3    LGD2        28%

   US$155 million
   Subordinated
   LYON's notes           Ba3     Ba2     LGD6        94%

   US$100 million
   Shelf                P(Ba1)  P(Baa3)   LGD2        28%


Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).




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


BAVARIA SA: SABMiller Holds Tender Offer for Minority Shares
------------------------------------------------------------
London-based SABMiller PLC will carry out a public tender offer
Oct. 12 for the shares it doesn't own in Colombian brewer Grupo
Empresarial Bavaria SA, the Colombian stock exchange said in a
filing to the country's financial regulator.

SABMiller will pay 46,176 Colombian pesos (US$19.10) per Bavaria
share to the remaining minority shareholders that hand over
their shares, the filing said.

SABMiller already owns all but about 2% of Bavaria after it
agreed to pay US$7.8 billion to Bavaria's majority shareholder
in July 2005 and paid an additional US$1.2 billion in December
to buy a 25.2% stake in a public tender offer.  The company
further raised its stake in Bavaria buying shares in the open
market.

The London-based brewer was forced to carry out a new tender
offer as it was requested by minority shareholders who were
disappointed by the first offer.

Juan Claudio Morales, a former manager of the bankers'
association, Asobancaria, and also a minority shareholder in
Bavaria claimed in December that SABMiller had paid Santo
Domingo more than the minority shareholders.

SABMiller had paid US$19.48 per share during the December offer.

On Sept. 1, 2006, Standard & Poor's Ratings Services withdrew
its 'BB+' corporate credit and senior unsecured debt ratings on
Bavaria S.A. at the company's request.

"The rating action also follows Bavaria's successful early
redemption of US$500 million bonds due 2010, via the company's
call option," said Standard & Poor's credit analyst Luis Manuel
Martinez.

Bavaria is the second largest brewer in South America with
leading market positions in Colombia, Peru, Ecuador, and Panama,
where its key brands are Aguila, Cristal, Pilsener, and Atlas,
respectively. In October 2005, SABMiller PLC (BBB+/Stable/--)
completed the acquisition of a controlling interest in Bavaria.




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


DENNY'S CORP: Closes Sale of 60 Franchisee-Operated Properties
--------------------------------------------------------------
Denny's Corp. has completed and closed the previously announced
transaction to sell to National Retail Properties, Inc., a real
estate investment trust, certain of its franchisee-operated
Denny's restaurant properties.  A total of 60 properties were
included in the closing, for a cash purchase price of
approximately US$62 million.  The sale of up to an additional 6
properties may hereafter close, subject to certain conditions,
under the terms of the master purchase agreement for the
transaction.

Consistent with the requirements of Denny's credit agreement,
the net cash proceeds of these asset sales have been applied to
reduce the outstanding balance on Denny's first lien term loan.
During the third quarter, Denny's prepaid approximately US$80
million on this loan through a combination of asset sale
proceeds and surplus cash, bringing its total long-term debt
balance down to approximately US$470 million as of
Sept. 27, 2006.

Nelson J. Marchioli, President and Chief Executive Officer,
said, "The completion of this transaction and the resulting debt
reduction are significant milestones in Denny's continuing
efforts to strengthen its balance sheet.  Denny's has endured a
heavy debt burden for many years that restricted its ability to
grow.  Over the last five years we have successfully reduced our
outstanding debt balances by approximately US$160 million.
While pleased with this progress, we will continue to pursue
further debt reduction as an effective way to enhance value for
our shareholders.  These actions will ensure greater financial
flexibility to invest in and expand the Denny's brand."

Earlier this year, Denny's began to market for sale the 87 real
estate properties it owned and leased to franchisee operators.
After completing this transaction, Denny's will have 13
franchisee-operated properties remaining for sale.  It is
expected to take up to twelve months to complete these sales.
At this time, Denny's has no plans to sell real estate
underlying company-operated restaurants other than in
conjunction with the sale of a company restaurant operation to a
franchisee.

Headquartered in Spartanburg, South Carolina, Denny's Corp.
-- http://www.dennys.com/-- is America's largest full-service
family restaurant chain, consisting of 543 company-owned units
and 1,035 franchised and licensed units, with operations in the
United States, Canada, Costa Rica, Guam, Mexico, New Zealand and
Puerto Rico.

At June 28, 2006, Denny's Corp.'s balance sheet showed a
US$257,947,000 stockholders' deficit compared with
US$266,547,000 deficit at Dec. 28, 2005.


* COSTA RICA: Mexico Sets Suty Fee Quota at 50,845 Metric Tons
--------------------------------------------------------------
The government of Mexico has set its tariff rate quote for Costa
Rica at 50,845 metric tons, to comply with the two nations' free
trade accord, Inside Costa Rica reports.

Inside Costa Rica underscores that Costa Rica entered into a
free trade pact with Mexico.  The free trade has brought
significant results.  Total trade multiplied by ten between 1994
and 2005, reaching US$1.2 billion.

According to Inside Costa Rica, the importers must have an
import permit so that the sugar won't be subject to general
import tariffs.

Inside Costa Rica relates that Mexico decided to ratify two
sugar tariff rate quotes -- one for 90,000 metric tons and one
for 100,000 metric tons -- to end speculation and stabilize
sugar prices.

Part of the quotas will be filled with sugar from Costa Rica as
well as from a 26,761 metric tons tariff rate quotes allocated
to Nicaragua.  The rest of the quota is eligible to be delivered
from all other World Trade Organization member nations, Inside
Costa Rica states.

                        *    *    *

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


* COSTA RICA: Revives Trade & Energy Accords with Russia
--------------------------------------------------------
Costa Rica has revived trade and energy accords with Russia,
Xinhua News Agency reports, citing Costa Rica's Foreign Minister
Bruno Stagno and Russia's Deputy Foreign Minister Sergei
Kislyak.

Xinhua News relates that Ministers Kislyak and Stagno and Costa
Rica's President Oscar Arias agreed to activate a reciprocal
investment protection pact that was signed in 1999 but was never
implemented.

Minister Stagno told Xinhua News, "We will also seek an
agreement to avoid double taxation, and an agreement that will
facilitate the coordination of banks in the two countries."

Trade between Costa Rica and Russia changed a lot, and many
Costa Rican products appeared in Russian trade statistics as
products of a third party, which prompted the nations to seek a
more direct relationship, Xinhua News says, citing Minister
Stagno.

Xinhua News underscores that Russia imports about US$17 million
worth of Costa Rican products, decreasing from US$34 million
dollars in 1998.

Minister Stagno told Xinhua News that the figures gave enough
room for exports boost.

"I called a meeting of the Central American Integration System
(SICA) energy ministers to allow Russia to offer help and
opportunities for collaboration," Minister Stagno told Xinhua
News.

Xinhua News notes that Costa Rica holds SICA's rotating
presidency.  The meeting is part of an existing energy
cooperation accord.

According to the report, Minister Stagno presented to Minister
Kislyak Costa Rica's key foreign policy ideas, including
proposals -- dubbed the Costa Rica Consensus -- for writing off
debts and promoting investments in education and health for
nations that reduced their arms budgets.

Minister Stagno told Xinhua News that international aid experts
would hold a session on the Costa Rica Consensus at a meeting in
February 2007, and present it to the international community.

Xinhua News emphasizes that Minister Kislyak said he acquiesced
with Minister Stagno that Russia was not fully using its
relationships.  He said he was very keen on hearing the Costa
Rica Consensus ideas, stating that his nation would follow
progress on the regulation of the arms trade, in which Russia is
one of the world's largest trading nations.

"Many organizations and nations are trying to solve the
disarmament problem.  We believe that before setting up working
groups, there may already be areas where many states are in
agreement.  My country would be very interested in analyzing
such a document," Minister Kislyak told Xinhua News.

                        *    *    *

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




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


* CUBA: Will Receive US$355 Million Loan from Russia
----------------------------------------------------
Cuba will obtain a 10-year US$355 million loan from Russia, with
a yearly interest of 4%, RIA Novosti reports, citing Mikhail
Fradkov -- the prime minister of Russia.

Prime Minister Fradkov told RIA Novosti that the credit will be
used to fund the delivery of Russian goods and services to Cuba
in 2006-08.

RIA Novosti relates that Prime Minister Fradkov signed a
Russian-Cuban intergovernmental accord on Thursday.  He said
that the intergovernmental accord identified seven areas in
which the credit will be used:

          -- investment cooperation projects,

          -- modernization of Cuba's energy sector,

          -- reconstruction of water conservation facilities and
             railroads,

          -- design and delivery of air navigation systems,
             and

          -- modernization of the transportation system.

                        *    *    *

Moody's assigned these ratings on 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
===================================


AES DOMINICANA: Operations at Itabo Port to Start
-------------------------------------------------
AES Dominicana, AES Corp.'s subsidiary in the Dominican
Republic, disclosed the start of operations of plants at the
Itabo International Port will start running, Dominican Today
reports.

According to Dominican Today, the port received its first
freighter with 36,000 metric tons of mineral coal from Colombia.

The freighter Baldor arrived on Sept. 24 and proceeded to
continuously unload the material until the early hours on
Thursday, Itabo told Dominican Today.  The coal will be used to
produce power in Itabo's plants, ensuring the availability of
low-priced fuel to generate electricity.

AES Dominicana told Dominican Today that Itabo is the first
local port that receives coal.  The port is located in the
coastal area of the Itabo industrial complex, which is 18
kilometers west of the capital city in the municipality Haina,
San Cristobal.  The port's depth is 14 meters, which allows it
to receive ships of the type Handymax and Panamax of up to
70,000 tons and has a capacity to unload solid materials at a
rate of 1,600 tons per hour.

The arrival of the freighter in Itabo constitutes a significant
advancement for the Dominican Republic's present and future
development, Dominican Today says, citing AES Dominicana.

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.

                    About AES Dominicana

AES Dominicana is a special-purpose financing entity of AES
Corp. in the Dominican Republic.  It manages two of AES Corp.'s
wholly owned generating facilities, Andres and DPP.  Andres is
incorporated under the laws of the Netherlands, and it owns a
304 MW gas-fired, combined-cycle plant outside of Santo Domingo.
The facility also includes an LNG regasification terminal.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
July 21, 2006, Standard & Poor's Ratings Services' 'B-' rating
on AES Dominicana Energia Finance S.A.'s US$160 million senior
notes due 2015 reflects the challenges of operating in the
electric sector in the Dominican Republic, and a legacy
liquefied natural gas contract that could be burdensome, offset
by the contractual nature of the revenue stream, and continued
support of the electricity sector by the Dominican government.
The outlook is stable.


FALCONBRIDGE LTD: Dominican Unit Names New General Manager
----------------------------------------------------------
Falconbridge Dominicana, a subsidiary of Falconbridge Ltd. in
the Dominican Republic, has appointed Earnest Mast as the firm's
new president and general manager, Dominican Today reports.

Dominican Today relates that Sergio Chavez, the former general
manager, passed away in a car accident on March 25.

Mr. Mast joined Falconbridge Dominicana in 1968 and has held
various positions at the Noranda technological center and at the
Canadian Copper Refinery in Altonorte, Chile, Dominican Today
states.

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


* DOMINICAN REPUBLIC: Power Output Boost Doesn't Stop Blackouts
---------------------------------------------------------------
The Suprintendent of Electricity or SIE -- the agency that
coordinates the electricity system in the Dominican Republic --
told the press that the increase in the production of energy has
not stopped blackouts in the nation.

DR1 Newsletter relates that about 1,500 megawatts were produced
in the Dominican Republic.  However, reports from different
parts of the country say there were still blackouts that last up
to ten hours.

Transmission lines failure in at least nine places led to
continued blackouts, DR1 states, citing the SIE.

The SIE told DR1 that there was a peak demand of 2,015 megawatts
and a peak energy output of 1,586 megawatts, which meant there
was a 21% deficit.  Of the 225 lines that carry 69 kilowatts,
nine failed.

Reports say that there were transmission failures in the areas:

          -- Sanchez,
          -- Pimentel,
          -- Nagua, and
          -- Samana.

Of the 170 circuits in the north, 33 were out of service.
About 40 of the 162 circuits in the south were off line.  Some
32 of the 167 circuits in the east failed, DR1 reports.

                        *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

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

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

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




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


PETROECUADOR: Lowers Price of Oriente Crude
-------------------------------------------
A spokesperson of Petroecuador, the state-run oil firm of
Ecuador, told Dow Jones Newswires that it has decreased the
price of Oriente crude oil by implementing an increase in the
price differential by US$1.174 per barrel, effective Oct. 1.

Dow Jones relates that Petroecuador, under the new price
differential, offers its Oriente crude at the West Texas
Intermediate price minus US$13.181.

The report says that Petroecuador had offered its oil at WTI
minus US$12.007 in September.

According to Dow Jones, the price was calculated at WTI minus an
average market price for Oriente crude determined by Platts and
Petroleum Argus for the first 15 days of the month, as well as a
bonus offered by buyers in the last auction.

Dow Jones notes that the new price is applicable to all
contracts, excluding those for the Far East where the price will
be calculated relative to Oman crude -- a standard for oil
contracts in Asia.

Petroecuador also increased the forecast price differential for
Napo crude by US$1.564 per barrel.  The firm offers Napo crude
at WTI minus US$19.034 per barrel.  It offered the crude at WTI
minus US$17.47 in September, Dow Jones 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.


PETROECUADOR: Unit Calls for Bids for Esmeraldas Plant Upgrade
--------------------------------------------------------------
Ecuadorean state oil Petroecuador's unit, Petroindustrial,
launched bidding for the modernization of the Esmeraldas oil
refinery, Dow Jones Newswires reports.

Dow Jones relates that the Esmeraldas plant has a refining
capacity of 110,000 barrels a day.

According to Dow Jones, interested firms are given until Oct. 25
to present their proposals.  The upgrade would require an
investment of US$127.05 million.

Dow Jones notes that Petroecuador recently called for offers to
construct a US$97.4 million natural gas storage unit.  Bids for
the project will also be received until Oct. 25.

The report says that interested parties in both projects don't
need to be pre-qualified by Petroecuador.

Revenues from oilfields formerly run by US firm Occidental
Petroleum Corp. will be used in the two projects, Dow Jones
states.

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




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


MILLIPORE CORP: Moody's Assigns Loss-Given-Default Rating
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the Medical Device sector, the rating agency
confirmed its Ba1 Corporate Family Rating for Millipore Corp.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities:


                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Unsec. Notes
   due 2007               Ba2      Ba2    LGD5         72%

   Sr. Unsec.
   EURO-Denominated
   Notes due 2016         Ba2      Ba2    LGD5         72%


Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).




=================
G U A T E M A L A
=================


SBARRO INC: Moody's Assigns Loss-Given-Default Rating
-----------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the restaurant sector, the rating agency
confirmed its B3 Corporate Family Rating for Sbarro, Inc.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities:


                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$255 million
   Gtd. 11% Sr.
   Unsec. Notes
   due Sept. 2009        Caa1     Caa1    LGD4        53%


Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).




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


* HAITI: Seeking Support on Proposal to Forgive IADB Loans
----------------------------------------------------------
Haiti -- along with Bolivia, Guyana, Honduras and Nicaragua --
will seek the support of Brazil, Mexico and Colombia on a
proposal to forgive their loans from the Inter American
Development Bank aka IADB, Associated Press reports, citing
Guyana's President Bharrat Jagdeo.

President Jagdeo told the press that Nicaragua, Bolivia, Guyana,
Honduras and Haiti met on the sidelines of an International
Monetary Fund meeting in Singapore and agreed to ask the support
of the three larger nations.

Citing the Guyanese president, AP relates that Brazil, Colombia
and Mexico were concerned that funding the write-offs will boost
the cost of borrowing.

President Jagdeo told AP, "We are awaiting the elections in
Brazil next week and immediately thereafter we propose to lobby
the presidents of Brazil, Mexico and Colombia to see if we can
get the three to support the initiative.  Most of the other
countries are supportive or will not stand in the way."

AP notes that the IDB had agreed in April to forgive about
US$3.5 billion of debt Nicaragua, Bolivia, Guyana, Honduras and
Haiti owed.

However, Brazil and Mexico have told AP that richer members of
the IDB should "foot the bill".

                        *    *    *

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.




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


* HONDURAS: Seeking Support on Proposal to Forgive IADB Loans
-------------------------------------------------------------
Honduras -- along with Bolivia, Guyana, Haiti and Nicaragua --
will seek the support of Brazil, Mexico and Colombia on a
proposal to forgive their loans from the Inter American
Development Bank aka IADB, Associated Press reports, citing
Guyana's President Bharrat Jagdeo.

President Jagdeo told the press that Nicaragua, Bolivia, Guyana,
Honduras and Haiti met on the sidelines of an International
Monetary Fund meeting in Singapore and agreed to ask the support
of the three larger nations.

Citing the Guyanese president, AP relates that Brazil, Colombia
and Mexico were concerned that funding the write-offs will boost
the cost of borrowing.

President Jagdeo told AP, "We are awaiting the elections in
Brazil next week and immediately thereafter we propose to lobby
the presidents of Brazil, Mexico and Colombia to see if we can
get the three to support the initiative.  Most of the other
countries are supportive or will not stand in the way."

AP notes that the IDB had agreed in April to forgive about
US$3.5 billion of debt Nicaragua, Bolivia, Guyana, Honduras and
Haiti owed.

However, Brazil and Mexico have told AP that richer members of
the IDB should "foot the bill".

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

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




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


AIR JAMAICA: Contractor General Questions Firm's Entity
-------------------------------------------------------
Greg Christie -- the Contractor General in Jamaica -- has asked
Colin Bullock, the Financial Secretary, if Air Jamaica was a
public body, the Jamaica Gleaner reports.

According to The Gleaner, the ministry of finance has remained
reluctant to grant the office of the contractor general's
request for information, despite Mr. Christie's several attempts
to get confirmation from Mr. Bullock, writing three letters
since April.  Mr. Bullock, however, has refused to reply.

Mr. Christie said that Air Jamaica had been classified as a
public body since December 2004 when Government assumed
ownership of the entity, The Gleaner notes.  In this regard, he
advised Mr. Bullock that the company was required to observe the
Jamaican government's procurement procedures, as set out in the
jurisdiction of the Contractor General and the National
Contracts Commission.

The Gleaner underscores that Mr. Christie again reminded the
Ministry of Finance on May 9 regarding his request for
information on Air Jamaica.  Mr. Christie said in the letter,
"On the assumption that Air Jamaica was in breach of government
of Jamaica's procurement guidelines, you were requested to
supply an outline of the remedial measures and timeliness which
your ministry and the airline are prepared to take to
effectively rectify the breach."

Mr. Christie, in his third letter, set a deadline for
compliance, warning Mr. Bullock that it was a criminal offense
not to confirm with the lawful requirement of the Contractor
General, The Gleaner says.  Mr. Christie stated in the letter,
"You might not be aware that section 29(b) of the Contractor
General Act makes it a criminal offence for a person, without
lawful jurisdiction or excuse, to obstruct, hinder or resist a
Contractor General in the execution of his functions."

The Gleaner emphasizes that the conflict between the Office of
the Contractor General and the government intensified when Dr.
Carlton Davis, the Cabinet Secretary, requested a meeting with
Mr. Christie to discuss the tone of the latter's communications
to senior public service officials.

According to the report, Mr. Christie said in a letter to the
Cabinet Secretary the latter's request came a day after his
final communication with the Ministry of Finance.

Mr. Christie said in one of his letters that the Finance
Ministry had since confirmed that Air Jamaica had failed to
comply with the government's procurement guidelines since 2004,
The Gleaner states.

                        *    *    *

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


HIGHGATE FOODS: Closes Down Business
------------------------------------
The Highgate Food Products chocolate factory has shut down,
Wednesday Business reports.

The Jamaica Gleaner relates that Jamaica Redevelopment
Foundation -- the firm that acquired the Finsac debts -- has
placed Highgate Food into receivership.

Claude Clarke -- the owner of Highgate Food -- had told The
Gleaner that the move would not jeopardize a deal for Desmond
Blades' Mussons (Jamaica) Ltd. to take an equity stake in the
firm, thus injecting the needed capital.

The Gleaner says that Mr. Clarke said, "The arrangement took
fully into account the possibility of our creditors moving
against us.  Nothing changes.  The discussions and agreement
will go ahead."

The Gleaner underscores that Mr. Clarke said, "We had for a long
time been talking to a long list of interest parties locally and
overseas, that is, in the Caribbean and the US.  But the
manufacturing situation in Jamaica is not attractive so it has
been difficult to find a partner who had both the interest, the
money and the values."

The report says that Mr. Clarke suggested that he had now found
a partner in Blades' Musson.  The company has the cash and
distribution synergies in Jamaica and across the Caribbean and
into Central America, where Mussons has businesses.

Mr. Clarke told The Gleaner, "We have also lost market share
precisely because of our inability to finance a marketing and
distribution program. Our capacity is significantly under-
utilized."

Mr. Clarke admitted to The Gleaner that Highgate Food really
fell under severe pressure during the high interest rate regime
of the 1990s that resulted in the financial sector meltdown.  He
said, "The economy was in trouble and we were in trouble."

The Gleaner notes that Mr. Clarke did not disclose the extent of
the Highgate Food's troubles.  Other sources, however, said that
the firm has debts of over US$100 million.

One source told The Gleaner, "There's a US$10 million here, a
US$15 million there, another US$8m here.  There were a series of
loans over several years."

Jamaica Redevelopment Foundation -- the American firm that had
bought most of the debt the government acquired when it bailed
out failed banks and insurance companies -- sent receiver Ken
Tomlinson of Business Recovery Services Ltd. into Highgate Food
to take charge of the firm.

However, Mr. Tomlinson has now shut down Highgate Food and is
now in the process of trying to value the assets of the debt-
burdened company, according to Wednesday Business.

Wednesday Business states that about 100 full and part-time
workers will be displaced due to Highgate Food's closure.

Informed sources told The Gleaner, "Some of the workers were not
paid for weeks.  The company has no working capital."

The Gleaner reports that Mr. Tomlinson is trying to sell
Highgate Food or its assets, but will liquidate it if he does
not find a buyer.

Mussons Jamaica, says The Gleaner, had said that it might
acquire Highgate Food.

However, Desmond Blades told Wednesday Business that the
decision would depend on talks he plans to have with Mr.
Tomlinson.

Mr. Blades told The Gleaner, "I see he's called me.  When I talk
to him, we'll see."

Paul Scott -- Mr. Blades' grandson who is with Facey Commodity -
- a unit of the family business -- has already made contact with
Mr. Tomlinson and JRF, The Gleaner says, citing sources.  Mr.
Scott has floored them with a claim that Mussons Jamaica owns
the Highgate Food trademark.

According to The Gleaner, the debt collectors called in their
lawyers to probe on the Mussons Jamaica ownership of Highgate
Food and determine whether it is legal and irreversible.

Mr. Blades, however, told The Gleaner, "They can't dispute it.
We have all the documentation."

Mr. Blades explained to The Gleaner that he purchased the
trademark from Mr. Clarke two years ago.

Mr. Blades' claim would be "untestable" only if he had purchased
the trademark before 1992 with the permission of National
Commercial Bank -- the former denture holders over Highgate
Food's debts, The Gleaner notes, citing the sources.

Mr. Tomlinson has briefed the legal representative of JRF and
was getting ready to fight for the brand, Wednesday Business
states.


KAISER ALUMINUM: Files Stock Offering Registration with U.S. SEC
----------------------------------------------------------------
Kaiser Aluminum Corp. has filed a registration statement with
the Securities and Exchange Commission relating to a proposed
secondary public offering of 2,517,955 shares of common stock to
be sold by a voluntary employees' beneficiary association trust
that provides benefits to eligible retirees represented by
certain unions.  The selling stockholder intends to grant a 30-
day over-allotment option to the underwriters covering an
additional 377,693 shares.  The company will not be receiving
any proceeds of the offering.

UBS Investment Bank and Bear, Stearns & Co. Inc. are acting as
joint book-running managers.

                        About Kaiser

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




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


DIRECTV INC: Judge Dismisses Darlene's Fraud Claims Against Co.
---------------------------------------------------------------
U.S. Federal District Court Judge William H. Pauley III
(S.D.N.Y.) issued an order dismissing Darlene Investments, LLC's
fraud action against DIRECTV and holding Darlene liable to
DIRECTV for Darlene's breach of contract.  The dispute related
to a series of transactions between DIRECTV and Darlene in
connection with DIRECTV Latin America's emergence from
bankruptcy in February 2004.

In its suit, Darlene, which is owned by The Cisneros Group of
Companies and Bessemer Holdings, sought over US$1 billion in
damages against DIRECTV.

"DIRECTV is very pleased with the Court decision," said Larry D.
Hunter, DIRECTV's General Counsel.  "The decision confirms that
Darlene's allegations were without merit and that this claim
should never have been filed."

Based on yesterday's order, DIRECTV will seek to recover all of
its legal fees and expenses related to the lawsuit.  A separate
arbitration proceeding between the parties is scheduled to begin
in January 2007.

DIRECTV was represented by Michael Baumann and Alex Pilmer of
Kirkland & Ellis LLP in Los Angeles.

                       About DIRECTV

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

                        *    *    *

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


EL POLLO: Moody's Assigns Loss-Given-Default Rating
---------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the restaurant sector, the rating agency
confirmed its B1 Corporate Family Rating and assigned its B2
probability-of-default rating for El Pollo Loco Inc., based on
proposed IPO.

Moody's also confirmed its B3 corporate family rating, which is
expected to be withdrawn following IPO.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities
based on proposed IPO and proposed bank financing with corporate
family rating of B1:


                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$185 million
   Gtd. Sr. Sec.
   Term Loan B
   due June 2013          B1       B1     LGD3        31%

   US$25 million
   Gtd. Sr. Sec.
   Revolver due
   June 2012              B1       B1     LGD3        31%


Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities
based on existing bank facility ratings with previous corporate
family rating of B3 and PDR of B3; expected to be withdrawn
following IPO:


                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$25 million
   Gtd. Sr. Sec.
   Revolver due
   Nov. 2010              B3       Ba3    LGD2        18%

   US$104.5 million
   Gtd. Sr. Sec.
   Term Loan due
   Nov. 2011              B3       Ba3    LGD2        18%

   US$125 million
   11.25% Sr. Unsec.
   Notes due
   Nov. 2013             Caa1      Caa1   LGD5        71%


Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).


FORD MOTOR: Cuts 2,000 Salaried Worker Positions to Reduce Costs
----------------------------------------------------------------
Ford Motor Credit Company is consolidating and centralizing most
of its originations and servicing operations in the United
States to reduce costs and improve process efficiencies.  At the
same time, the company said it is reducing its operating costs
through efforts that include salaried personnel reductions of
about 2,000 positions in the United States and Canada.

This continues the company's global business transformation that
has been ongoing for more than a decade.  "We have a history of
managing change effectively, and I'm confident the course we are
on will be equally successful," Mike Bannister, the company's
chairman and chief executive officer, said.

Ford Motor Credit will consolidate its remaining 59 U.S.
branches into six existing service centers, creating new
business centers that will manage originations, dealer credit
and wholesale operations in addition to the servicing functions
already handled today.  Sales employees who work directly with
dealers will remain in local markets to maintain and enhance
their strong dealer connections.  Completion of the branch
consolidation is expected by the end of 2007.  A similar
structure is being considered for Ford Motor Credit's operations
in Canada, which currently has seven branches and one service
center.

"As a company with strong business fundamentals, we believe this
new structure will further strengthen our operational
effectiveness," Mr. Bannister said.  "Our strong collections
processes will continue while we enhance our originations of
automotive financing contracts.  The North American
restructuring also will provide us with the flexibility and
scale necessary to adapt to any changes in business conditions."

"Many of the same Ford Motor Credit salespeople who call on our
dealers today will continue to do so going forward," A.J.
Wagner, president of Ford Motor Credit Company North America,
said.  "Our salespeople have a unique understanding of our
dealers' market and business issues and are in the best position
to provide them with practical solutions to support their
business."

In the last decade, Ford Motor Credit has restructured
operations in Australia, Germany, Japan, Mexico, North America
and the UK with a focus on reducing costs and improving process
efficiencies. Since 2003, Ford Motor Credit has closed nearly
110 branches in the U.S. and Canada.

Personnel reductions will be achieved through attrition, early
retirements, voluntary separations and, if necessary,
involuntary separations.  Currently, about 8,600 employees work
in Ford Motor Credit offices in the U.S. and Canada; the region
accounts for 75 percent of the company's global business.  As of
June 30, 2006, the company's global managed receivables were
US$151 billion.

Ford Motor Credit Company -- http://www.fordcredit.com/-- is an
automotive finance company, which has supported the sale of Ford
products since 1959.  With about 14,000 employees, Ford Motor
Credit operates in 36 countries including Brazil and Mexico in
Latin America.  Ford Motor Credit is an indirect wholly owned
subsidiary of Ford Motor Company.  It provides automotive
financing for Ford, Lincoln, Mercury, Aston Martin, Jaguar, Land
Rover, Mazda and Volvo dealers and customers.


MERIDIAN AUTOMOTIVE: Has Until January 25 to Decide on Leases
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware further
extended until Jan. 25, 2007, Meridian Automotive Systems, Inc.,
and its debtor-affiliates' time to assume, assume and assign, or
reject unexpired non-residential real property leases.

As reported in the Troubled Company Reporter on Sept. 12, 2006,
the Debtors are party to 12 major facility lease agreements:

   Lessor                               Location
   ------                               --------
   Etkin Equities                       2001 Centerpointe
                                        Parkway
                                        Pontiac, Michigan

   DEMBS/Roth Group                     4280 Haggerty Road
                                        Canton, Michigan

   Ford Motor Land Development Corp.    999 Republic Drive
                                        Allen Park, Michigan

   Growth Properties, LLC               300 Growth Parkway
                                        Angola, Indiana

   Communite Improvement Corp.          1020 E. Main Street
                                        Jackson, Ohio

   L.E. Tassell, Inc.                   3075 Brenton Road, S.E.
                                        Grand Rapids, Michigan

   Meri (NC) LLC                        6701 Stateville Blvd.
                                        Salisbury, North
                                        Carolina

   North-South Properties LLC           747 Southport Drive
                                        Shreveport, Louisiana

   P&E Realty Inc.                      13811 Roth Road
                                        Grabill, Indiana

   Rushville Manufacturing Mall         1350 Commerce Street
   Land Trust # 101                     Rushville, Indiana

   Westfield Industrial Center          13881 West Chicago
                                        Street
                                        Detroit, Michigan

   Brent Trade & Industrial Park Inc.   225 Henry Street
                                        Brantford, Ontario

The Leases included several of the Debtors' primary production
facilities and warehousing centers, which are at the core of the
Debtors' operations.  Many of the locations subject to the
Leases will play a significant role in the Debtors'
reorganization process.

Due to the complexity of the Debtors' business operations,
evaluation of the Leases requires the Debtors to devote
considerable time and effort to carefully review each Lease.

If the Debtors are forced to prematurely assume the Leases, the
Debtors may be required to pay cure obligations, and lessor
claims may be elevated to administrative expense status prior to
confirmation of a plan of reorganization.

Conversely, if the Debtors precipitously reject the Leases, the
Debtors may lose valuable property interests that are essential
to their reorganization.

The Debtors are in the process of evaluating the economics of
the Leases to determine whether the assumption or rejection of
each would benefit their estates and creditors.  However, the
Debtors' ultimate decision to assume or reject the Leases will
also depend on their review of their overall businesses and an
analysis of each location and purpose in connection with the
ongoing restructuring efforts.

Pending their election to assume or reject the Leases, the
Debtors will perform all their undisputed obligations in a
timely fashion, including the payment of postpetition rent due,
as required by Section 365(d)(3) of the Bankruptcy Code.

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens.  When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 39; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


ORTHOFIX INT'L: Moody's Assigns Loss-Given-Default Rating
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the Medical Device sector, the rating agency
confirmed its Ba3 Corporate Family Rating and assigned its B1
probability-of-default rating for Orthofix International N.V..

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities of
Orthofix Holdings, Inc., its subsidiary:


                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Sr. Sec.
   Revolver
   due 2012               Ba3      Ba3    LGD3        34%

   Sr. Sec.
   Term Loan B
   due 2013               Ba3      Ba3    LGD3        34%


Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).


TV AZTECA: Halts Telemundo's Quinceanera Show
---------------------------------------------
The production of Telmundo show Quinceanera was stopped abruptly
when a delegation from TV Azteca de C.V. -- along with police
officers, reporters, cameramen, lawyers and security guards --
came into their studio, accompanying a court clerk carrying a
judge's order to temporarily stop work and impound the
equipment, Telemundo told Miami Herald.

Miami Herald relates that TV Azteca sued Nostromo Producciones
and Alan Tacher Feingold -- the host of Quinceanera -- in August
for breach of contract.

TV Azteca charged Nostromo and Mr. Feingold of violating the
February 2005 accords to work exclusively for TV Azteca unless
they obtain permission, the report says.

Miami Herald relates that TV Azteca alleged that Nostromo was
producing La Academia -- TV Azteca's hit talent reality show
-- in 2005 when it abandoned the production on Nov. 30.

Rival Telemundo told Miami Herald that it was not aware of the
lawsuit.  Telemundo, however, admitted that it knew of an
earlier similar suit TV Azteca had tried to file in Miami.

Alfredo Richard, Telemundo vice president of corporate
communication, complained to Miami Herald that TV Azteca's
display of strength, which included policemen arriving in the
firm's vans with logos covered and cars with no license plates,
exceeded the bounds of the order.  He said it was an unjustified
use of force and intimidation.

Mr. Richard told Miami Herald, "We respect the laws and courts
of Mexico, but Azteca's actions are beyond all justification for
an ordinary commercial dispute."

Meanwhile, TV Azteca said in a statement that the injunction was
served in a legal and peaceful manner, just as the judge
ordered.

Miami Herald notes that Nostromo is considering filing an
appeal.

Mr. Rihcard told Miami Herald, "Telemundo believes that TV
Azteca's claim is meritless.  No evidence showing any breach by
Nostromo has been produced or made available to us."

TV Azteca said in a statement that it informed Telemundo in July
of its contracts with Nostromo and Tacher and sent over copies
of the notice.

According to the statement, TV Azteca said it has nothing
against Telemundo.

Mr. Richard, however, told Miami Herald that TV Azteca's move is
a reminder of the anti-competitive environment in Mexico.

Miami Herald emphasizes that Mr. Richard said Telemundo will
finish taping the final three episodes of Quinceanera despite
the additional cost of moving the cast and recreating sets.

"We're figuring out how and where," Mr. Richard told Miami
Herald.

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

                        *    *    *

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


UNITED RENTALS: Prepays US$400 Million of Outstanding Term Loan
---------------------------------------------------------------
United Rentals, Inc., has prepaid US$400 million of its
outstanding term loan.  The company is using US$200 million of
available cash and US$200 million drawn on its accounts
receivable securitization facility to fund the US$400 million
principal repayment.  Under the terms of the loan agreement,
substantial repayments of the term loan are not due until 2010.

Martin E. Welch, executive vice president and chief financial
officer for United Rentals, said, "We are taking advantage of
our strong free cash flow to strengthen our balance sheet and
reduce interest expense. In addition to the US$400 million
prepayment of our term debt announced today, the company bought
out US$44 million of equipment under operating leases in the
second quarter and announced the redemption of US$63 million of
the 6-1/2% Convertible Quarterly Income Preferred Securities."

The company's total debt (excluding subordinated convertible
debentures) was US$2,894 million at June 30, 2006, including
US$733 million outstanding under the term loan.  Amounts repaid
under the term loan may not be reborrowed.

Headquartered in Greenwich, Connecticut, United Rentals, Inc.
-- http://unitedrentals.com/-- is an equipment rental company,
with an integrated network of more than 750 rental locations in
48 states, 10 Canadian provinces and Mexico.  United Rentals is
a member of the Standard & Poor's MidCap 400 Index and the
Russell 2000 Index(R).

                        *    *    *

As reported in the Troubled Company Reporter on June 8, 2006,
Fitch affirmed the ratings of United Rentals, Inc. and its
principal operating subsidiary, United Rentals (North America),
Inc., and removed them from Rating Watch Negative where they
were placed on July 14, 2005.  Approximately US$2.9 billion of
debt is affected by the action.  The rating outlook for URI and
URNA was Stable.

Fitch's affirmed United Rentals Inc.'s Issuer Default Rating and
United Rentals (North America) Inc.'s Issuer Default and Senior
Unsecured Debt ratings at 'BB-'.

                        *    *    *

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. rental company sector, the
rating agency confirmed its B1 Corporate Family Rating for
United Rentals (North America), Inc.

Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans,
bond debt obligations and QUIPS:

Issuer: United Rentals (North America), Inc.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Sr. Sec. Revolving
   Credit Facility
   due 2009               B1       Ba1     LGD2       16%

   Sr. Sec.
   Institutional
   Letter of Credit
   Facility due 2011      B1       Ba1     LGD2       16%

   Sr. Sec. Term
   Loan due 2011          B1       Ba1     LGD2       16%

   6.5% Gtd. Sr.
   Unsec. Nts due
   2012                   B2       B1      LGD4       52%

   7.75% Gtd. Sr.
   Sub. Nts due 2013      B3       B3      LGD5       83%

   7.0% Gtd. Sr. Sub.
   Nts due 2014           B3       B3      LGD5       83%

   1.875% Gtd.
   Convertible Nts
   due 2023               B3       B3      LGD5       83%


Issuer: United Rentals Trust I

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   6.5% Convertible
   Quarterly Income
   Pref. Securities
   (QUIPS) due 2028      Caa1     B3       LGD6       96%


* MEXICO: Pension Funds Buy More Government Bonds
-------------------------------------------------
Two of Mexico's biggest pension funds have increased their
stakes of government bonds on the premise that president-elect
Felipe Calderon will keep inflation under control, Bloomberg
News reports.

These two funds are:

    -- largest pension fund Citigroup Inc.'s Banamex unit, which
       increased fixed-rate peso-denominated bonds to 27%
       compared with a 24% holding last year; and

   -- Banco Bilbao Vizcaya Argentaria SA's Bancomer unit,
      manager of the second largest fund, has 28% of its assets
      in the government debt, compared with less than 1% a year
      ago.

Felipe Calderon, who will take over as president on Dec. 1, is
expected to carry on outgoing President Vicente Fox's economic
activities that cut inflation and budget deficit, resulting to
an investment grade credit rating, Bloomberg News says.

"Things are looking better for the economy," Francisco Gonzalez
Almaraz, who oversees US$10 billion of Mexican pension assets at
Bancomer, told Bloomberg in an interview from Mexico City.  "We
are seeing that the new administration is already working on
building consensus."

                        *    *    *

As reported in the Troubled Company Reporter on April 17, 2006,
Standard & Poor's Ratings Services placed an mxBB+ long-term
rating with stable outlook on the state of Mexico.




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


* NICARAGUA: Okays Disbursement of US$5 Million to Entresa
----------------------------------------------------------
Nicaragua's national assembly approved the disbursement of US$5
million to Entresa, the state's transmission firm, to purchase
power on the Central American market during energy crisis, El
Diario de Hoy reports.

El Diario relates that Entresa will seek for electricity in
Guatemala or Costa Rica.

David Castillo -- a national assembly member -- told El Diario
that the funds would allow the purchase of 40 megawatts, which
would prevent outages until November, when general elections
will be held.

The money is not all that is needed, Business News Americas
says, citing Jorge Katin -- the spokesperson of Union Fenosa,
which controls two distributors in Nicaragua.

"But it is a relief and will be enough [to cover demand] for a
month and a half," Mr. Katin told BNamericas.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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


* NICARAGUA: Receiving 200,000 Gallons of Diesel from Venezuela
---------------------------------------------------------------
Daniel Ortega -- the presidential candidate of the Sandinista
political party -- confirmed to El Universal that Nicaragua will
receive over the next few days about 200,000 gallons of diesel
from Venezuela, under an oil accord executed five months ago
with Venezeula's President Hugo Chavez.

Mr. Ortega said that the shipment would arrive in the recently
refitted port of El Rama, according to DPA.

El Universal states that Mr. Ortega said the fuel will enter
little by little, due to the inability to store 10 million
barrels of oil offered by Petroleos de Venezuela to the
Nicaragua's Municipalities Association.

The diesel from Venezuela will help resolve the transportation
problem in Managua, where operators complain about the continued
increase in oil prices, El Universal reports, citing Dionision
Marenco -- a Sandinista mayor and the chairperson of the
Municipalities Association.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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


* NICARAGUA: Seeking Support on Proposal to Forgive IADB Loans
--------------------------------------------------------------
Nicaragua -- along with Bolivia, Guyana, Honduras and Haiti --
will seek the support of Brazil, Mexico and Colombia on a
proposal to forgive their loans from the Inter American
Development Bank aka IADB, Associated Press reports, citing
Guyana's President Bharrat Jagdeo.

President Jagdeo told the press that Nicaragua, Bolivia, Guyana,
Honduras and Haiti met on the sidelines of an International
Monetary Fund meeting in Singapore and agreed to ask the support
of the three larger nations.

Citing the Guyanese president, AP relates that Brazil, Colombia
and Mexico were concerned that funding the write-offs will boost
the cost of borrowing.

President Jagdeo told AP, "We are awaiting the elections in
Brazil next week and immediately thereafter we propose to lobby
the presidents of Brazil, Mexico and Colombia to see if we can
get the three to support the initiative.  Most of the other
countries are supportive or will not stand in the way."

AP notes that the IDB had agreed in April to forgive about
US$3.5 billion of debt Nicaragua, Bolivia, Guyana, Honduras and
Haiti owed.

However, Brazil and Mexico have told AP that richer members of
the IDB should "foot the bill".

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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




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


CHIQUITA BRANDS: Proposes Plan to Prop Up Coosemupar
----------------------------------------------------
Chiquita Brands International Inc. told Reuters that it has
proposed a US$5.5 million rescue plan to prop up the Coosemupar
cooperative.

According to Reuters, Chiquita Brands stated that the plan for
Coosemupar was a last attempt to shore up the Panamanian banana
supplier.

Cameron Forsyth, the general manager of Chiquita Brands in
Puerto Armuelles, told Reuters, "Because of our old ties with
the area, we have offered the co-op US$4.5 million and will
waive another US$1 million in repayments against the start-up
loan we made to the co-op in 2003."

Reuters underscores that Coosemupar was established by workers
in 2003 when Chiquita Brands pulled out of growing operations
due to labor disputes.

Chiquita Brands said that Panama is one of its top five
suppliers, Reuters relates.

Mr. Forsyth told Reuters, "There must not be any labor
stoppages, and they must abide by the ... contract and improve
their productivity."

The workers have not yet agreed to the proposal, Reuters states.

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

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




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


DOE RUN PERU: Investing US$200 Million in Environmental Clean Up
----------------------------------------------------------------
Doe Run Peru SRL, Doe Run Co.'s unit in Peru, will spend about
US$200 million on an environmental clean up around its La Oroya
plant, Latinlawyer Online reports.

Latinlawyer underscores that a study was published in 2002,
calling the situation in the surrounding area a public health
emergency due to the high levels of lead being found in the
local population.  Oxfam GB -- a development, advocacy and
relief agency -- said that the lead levels found in people's
blood were ten times the amount considered acceptable by the
World Health Organization and that this was particularly
dangerous for children.

Doe Run Peru told Latinlawyer that it will conclude the program
in three years.  This is an extension of an accord with the
government Peru, which initially scheduled the completion on
January 2007.

According to Latinlawyer, the construction of a plant -- which
would reduce sulfur dioxide emissions -- won't have to be
completed until October 2009.

Meanwhile, activists have been urging Doe Run Peru to stick to
its clean up deadline of 2007, according to Latinlawyer.
However, Doe Run Peru said that it would have to close the
smelter if it could not have an extension.  The closure could
lead to extensive job losses in the area.

Latinlawyer reports that under the new agreement, Doe Run Peru
will modernize a zinc plant and construct two new acid plants
for the lead circuit and the copper circuit, to convert the
sulphur dioxide produced in lead and copper manufacture into
sulphuric acid instead of releasing it into the atmosphere.

Patricia Paz Soldan -- the in-house counsel for Doe Run Peru --
told Latinlawyer, "We had the support of the community all the
way through this process.  That was key to this case's success.
There are around 40,000 inhabitants in the area, and you could
say that everyone in the area was involved with the process of
assuring that an extension would be granted."

Latinlawyer relates that Doe Run Peru's negotiations with the
ministry for energy and mines of Peru took two years before the
company was granted an extension of the environmental adjustment
and management program, which has been modified.  The program
now contains two financial security safeguards to make sure Doe
Run carries out its obligations:

          -- Doe Run Peru has established an environmental
             trust account with Scotiabank Peru, into which it
             will pay a certain portion of each month's sales to
             fund the program; and

          -- Doe Run has provided the ministry of energy and
             mines with a letter of guarantee worth over US$28
             million, which will be forfeited if the company
             does not stick to the agreement.  The guarantee
             comes from Doe Run's own financial resources.

               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.


* PERU: Telefonica del Peru Allegedly Charges Illegal Fees
----------------------------------------------------------
Yhoni Lescano -- the chairperson of the Consumer Protection
Commission in Peru -- has accused telecom monopolist Telefonica
del Peru of charging fees on non-existent services to the
Peruvian congress, Living in Peru reports.

According to Living in Peru, Telefonica del Peru has come under
scrutiny of the Peruvian government and other organizations.

A consultant contracted by the Parliament discovered irregular
collections that occurred between May 2002 and February 2003,
Living in Peru says, citing Mr. Lescano.  He claimed that
Telefonica del Peru has only confirmed an amount of PEN327,000.

Mr. Lescano told Living in Peru, "They have acknowledged this
charge but, according to estimates of the consultant, these
collections continued being made in later months and the amount
could reach up to PEN1.8 million."

Living in Peru notes that Mr. Lescano said other state
institutions had similar problems with Telefonica del Peru.  Mr.
Lescano then suggested that the contract between the state and
the firm be revoked.

The report says that the government is working on a law that
would eliminate basic landline telephone fees.  The congress
recently approved a bill to eradicate fixed monthly tariffs
telecommunication service providers charge.

The telecommunication bill still needs the signature of Peru's
President Alan Garcia before it becomes a law, Living in Peru
states.

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

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




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


ADELPHIA: Stay Modified Allowing Mr. Champ to Pursue Action
-----------------------------------------------------------
In a court-approved stipulation, Adelphia Communications
Corporation and Todd Champ agree that the automatic stay will be
modified to permit Mr. Champ to prosecute his state court action
against Adelphia and allow the parties to take necessary and
appropriate actions to exercise their rights of appeal.

On May 15, 2005, Mr. Champ filed a complaint against Adelphia
Communications Corporation in San Bernardino County Superior
Court, alleging a number of causes of action relating to
personal injury.  The State Court Action was stayed on the date
the Debtor filed for chapter 11 protection.

In the stipulation, the Parties agreed that Mr. Champ may, with
respect to the Debtor, enforce or execute any:

    (1) settlement;

    (2) judgment entered by a court of competent jurisdiction;
        or

    (3) other disposition of the claims in the State Court
        Action, only to the extent those claims are covered by
        proceeds from any applicable liability insurance
        policies of ACOM to the maximum allowable policy limits.

Mr. Champ agrees to waive any and all claims for recovery
against the Debtor other than his claims against the Policy
Proceeds.

The Parties agree that any settlement of the State Court Action
will include Mr. Champ's general release of all claims against
the Debtor.

              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 Bankruptcy News, Issue Nos. 148; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


BURGER KING: Moody's Assigns Loss-Given-Default Rating
------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the restaurant sector, the rating agency
confirmed its Ba2 Corporate Family Rating and assigned its Ba3
probability-of-default rating for Burger King Corp.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities
based on proposed IPO and proposed bank financing with corporate
family rating of B1:


                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$150 million
   Sr. Sec. Revolver
   due 2011               Ba2      Ba2    LGD3        35%

   US$250 million
   Sr. Sec. Term
   Loan A due 2011        Ba2      Ba2    LGD3        35%

   US$1100 Sr. Sec.
   Term Loan B
   due 2012               Ba2      Ba2    LGD3        35%


Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).


CARIBBEAN RESTAURANTS: Moody's Assigns Loss-Given-Default Rating
----------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the restaurant sector, the rating agency
confirmed its B2 Corporate Family Rating for Caribbean
Restaurants, LLC.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities:


                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$30 million
   Sr. Sec.
   Revolver
   due 2009               B2       B1     LGD3        33%

   US$180 Sr. Sec.
   Term Loan B
   due 2009               B2       B1     LGD3        33%


Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).


FIRST BANCORP: Files Amended December 2004 Annual Report
--------------------------------------------------------
First BanCorp has filed its amended annual report on Form 10-K
for the year ended Dec. 31, 2004, with the U.S. Securities and
Exchange Commission.

In addition to the Corporation's consolidated financial
statements for 2004, the amended report also included financial
statements that restate previously reported financial results
for 2000, 2001, 2002 and 2003.

For fiscal year 2004, net income decreased by approximately
US$1.55 million or 0.87% of previously reported amounts.

The net cumulative effect of the restatement through
Dec. 31, 2004 was a decrease in the Corporation's retained
earnings and legal surplus of approximately US$17.1 million,
which includes a cumulative decrease of approximately US$9.1
million for the 2004, 2003 and 2002 periods and approximately
US$8 million related to periods prior to 2002.  Approximately
US$15.1 million of the US$17.1 million represent non-cash
adjustment related to derivatives and broker placement fees.

"This filing culminates a painstakingly diligent accounting
review and significant milestone on First BanCorp's path back to
normal course financial reporting," Luis Beauchamp, president
and chief executive officer, said.  "We deeply appreciate the
dedication, professionalism and support of our employees,
shareholders, directors, customers and outside advisors who have
participated and contributed to this exhaustive process."

The financial statements for the years ended 2000-2004 have been
restated as a result of the Corporation's Audit Committee review
of the accounting treatment of certain mortgage related
transactions and pass through trust certificates entered into
with Doral Financial Corporation and R&G Financial Corporation
between 1999 and 2005 and of interest rate swaps that hedge the
interest rate risk related to the fixed interest rate mainly on
the Corporation's outstanding brokered certificates of deposit
and certain medium-term notes.

                 Doral and R&G Transaction

The mortgage-related transactions with Doral and R&G were
reflected in First BanCorp's previously issued financial
statements as purchases of residential mortgages, commercial
mortgage loans and pass-through trust certificates.  The
restatement reflects the recharacterization of approximately
US$3.8 billion in mortgage-related transactions as of Dec. 31,
2004 as commercial loans secured by mortgage loans and pass-
through trust certificates.  The recharacterization of the
mortgage-related transactions with Doral and R&G did not impact
the Corporation's retained earnings as of Dec. 31, 2004.

                    Interest Rate Swaps

As part of the restatement process, the Corporation reviewed its
accounting for derivative instruments and concluded that it had
incorrectly accounted for interest rate swaps that mainly hedge
brokered certificates of deposit, and certain medium-term notes.
As a result, the Corporation corrected its previous accounting
for the transactions.  The net cumulative non-cash pre-tax
effect is a decrease in retained earnings of approximately
US$26.3 million.

               Other Accounting Adjustments

The Corporation also identified other accounting errors that
require additional adjustments and reclassifications. The
cumulative effect of all these other adjustments was an increase
in pre-tax income of approximately US$862,000 through
Dec. 31, 2004.

"In the aggregate, these adjustments have a minimal effect on
our stockholder's equity, and result in a decrease in 2004 net
income of less than one percent," Fernando Scherrer, executive
vice president and chief financial officer, said.  "Moving
forward, we expect to file the quarterly reports for the interim
periods on Form 10-Q and the annual report on Form 10-K for the
year ended Dec. 31, 2005, in the first quarter of 2007.
Thereafter, First BanCorp expects to file its quarterly reports
for the corresponding quarters of 2006."

     Discussions with Staff of the SEC Enforcement Division

The Corporation disclosed that it is currently in discussions
with the Staff of the Enforcement Division of the Securities and
Exchange Commission to resolve the formal investigation
commenced by the SEC on Oct. 21, 2005.  The Corporation expects
that any settlement with the SEC will include a monetary penalty
to be paid by the Corporation. Any agreements with the SEC staff
will be subject to the final approval of the Commissioners of
the SEC.

First BanCorp (NYSE: FBP) -- http://www.firstbankpr.com/-- is
the parent corporation of FirstBank Puerto Rico, a state
chartered commercial bank with operations in Puerto Rico, the
Virgin Islands and Florida; of FirstBank Insurance Agency; and
of Ponce General Corporation.  First BanCorp, FirstBank Puerto
Rico and FirstBank Florida, formerly UniBank, the thrift
subsidiary of Ponce General, all operate within U.S. banking
laws and regulations.

                        *    *    *

As reported in the Troubled Company Reporter on March 22, 2006,
Fitch Ratings affirmed the ratings and Outlook for First Bancorp
and FirstBank Puerto Rico: long-term Issuer Default Rating
'BB'/short-term 'B'.  The Rating Outlook remains Negative.


GLOBAL HOME: Has Until December 6 to File Chapter 11 Plan
---------------------------------------------------------
The Honorable Kevin Gross of the U.S. Bankruptcy Court for the
District of Delaware extended Global Home Products, LLC, and its
debtor-affiliates' exclusive right to file a chapter 11 plan
until Dec. 6, 2006.

Judge Gross also extended, until Feb. 6, 2007, the Debtors'
exclusive right to solicit acceptances of that plan.

The Debtors' chapter 11 cases have been pending for five months.
In that period, the Debtors have completed the transition to
operate as chapter 11 debtors-in-possession, prepared and filed
their Schedules and Statements, sold substantially all of their
Burnes assets, sold substantially all of their WearEver assets,
and responded with the Official Committee of Unsecured
Creditors.

Currently, the Debtors are devoting a significant amount of time
in the analysis and litigation of administrative and reclamation
claims.  The Debtors are actively analyzing information relevant
to the reorganization of their Anchor Hocking Business.

Headquartered in Westerville, Ohio, Global Home Products, LLC
-- http://www.anchorhocking.com/and http://www.burnesgroup.com/
-- sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry.  The company also designs and markets photo frames,
photo albums and related home decor products.  The company and
16 of its affiliates, including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on
April 10, 2006 (Bankr. D. Del. Case No. 06-10340).  Laura Davis
Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and
Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young,
Jones & Weintraub LLP, represent the Debtors.  Bruce Buechler,
Esq., at Lowenstein Sandler, P.C., and David M. Fournier, Esq.,
at Pepper Hamilton LLP represent the Official Committee of
Unsecured Creditors.  Huron Consulting Group LLC gives financial
advice to the Committee.  When the company filed for protection
from their creditors, they estimated assets between US$50
million and US$100 million and estimated debts of more than
US$100 million.


MARGO CARIBE: Receives Letter of Reprimand from Nasdaq
------------------------------------------------------
Margo Caribe, Inc. (NASDAQ: MRGO) said in a filing with the U.S.
Securities and Exchange Commission that, on Sept. 22, 2006, it
received a letter of reprimand from a Nasdaq Listing
Qualifications Panel of the Nasdaq Stock Market, Inc., related
to the company's failure to comply with Nasdaq Marketplace Rule
4350(h).  The letter of reprimand relates to certain payroll
payments and other miscellaneous expenses paid by the company on
behalf one of its executive officers.

As previously announced, while these payments were billed by and
reimbursed to the company, those payments were not pre-approved
by the company's Audit Committee.  The company subsequently
sought and obtained the ratification of these transactions from
the company's Audit Committee and took remedial action to avoid
recurrence.  These matters were a part of the previously
announced independent investigation, conducted on behalf of the
Company's Audit Committee and the independent directors.  In
accordance with Nasdaq Marketplace Rule 4801(k)(2), the Panel
has closed these matters by issuing the letter of reprimand.

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.

                     Material Weakness

Deloitte & Touche 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.


UNIVISION COMMS: Moody's Cuts Rating on Sr. Unsec. Notes to Ba3
---------------------------------------------------------------
Moody's Investors Service downgraded Univision Communications
Inc.'s senior unsecured notes to Ba3 from Baa3 and assigned the
company a B1 Corporate Family Rating and B1 Probability of
Default Rating.  The ratings are on review for possible
downgrade.

Moody's downgraded these ratings:

   -- Senior Unsecured Regular Bond/Debenture, Downgraded
      to Ba3 from Baa3;

   -- Senior Unsecured Shelf, Downgraded to (P)B3 from (P)Baa3;

   -- Subordinated Shelf, Downgraded to (P)B3 from (P)Ba1;

   -- Junior Subordinated Shelf, Downgraded to (P)B3 from
      (P)Ba1; and

   -- Preferred Stock Shelf, Downgraded to (P)B3 from (P)Ba2.

Moody's assigned these ratings:

   -- Corporate Family Rating, Assigned B1; and
   -- Probability of Default Rating, Assigned B1.

The rating downgrade reflects the significant increase in
Univision's leverage that will occur as a result of the proposed
US$13.7 billion acquisition of the company by a group of private
equity investors pursuant to the June 26, 2006, merger
agreement.  Moody's is taking the rating action at this time
because Univision's announcement that shareholders approved the
buyout removes a material contingency and Moody's now believes
that the acquisition is highly likely to close. Moody's believes
the B1 CFR is the highest achievable for the post-acquisition
company assuming:

   1) that Televisa and Venevision retain a 25% ownership
      interest (approximately US$1.3 billion of equity) and

   2) there is a plan to significantly reduce debt over the
      very near term.

Moody's believes the B1 CFR is the upper limit for Univision at
these metric levels despite the company's strong market position
in Spanish-language media, good operating margins and growth
prospects.  Moody's has not discussed post-acquisition
strategies with the proposed new owners, and there remains
significant uncertainty over the ultimate asset makeup and
capital structure of the company.

The ratings remain on review for downgrade due to the potential
that Televisa and Venevision will ultimately decide not to
retain an ownership position and pending more clarity on
anticipated asset sales that may be used to delever the company.
Moody's will evaluate in the review the new controlling equity
holders' plans for the company upon completion of the
acquisition including the potential monetization of selected
business lines or television station assets while maintaining
the television networks, cost reductions, revenue enhancements,
or other cash saving strategies that could partially mitigate
the debt burden as well as any modifications to Spanish-language
licensing arrangements should Televisa and Venevision retain an
ownership position.

Ratings on the existing senior unsecured notes were lowered to
Ba3 from Baa3.  The notes do not have change of control put
rights but Moody's expects the notes will obtain a security
interest in the post-acquisition company due to the existence of
a negative pledge in the indentures.  The Ba3 note rating
reflects this collateral assumption and is based on application
of Moody's loss-given default notching methodology to the
capital structure presented in the company's August 17, 2006
proxy statement.  Additional rating adjustments to the existing
notes could occur if the CFR is lowered or the capital mix
differs from that outlined in the proxy statement.  Moody's
confirmed the existing Baa3 rating on the 2.875% notes due
Oct. 15, 2006, as the notes will mature prior to completion of
the proposed acquisition of Univision, which the company
indicated is expected in the spring of 2007.  Moody's does not
rate Univision's existing US$1 billion revolver.

Univision Communications Inc. is the largest Spanish-language
media company in the United States.  The company is
headquartered in Los Angeles with television network operations
in Miami and television and radio stations and sales offices in
major cities throughout the United States.


UNO RESTAURANT: Moody's Assigns Loss-Given-Default Rating
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the restaurant sector, the rating agency
confirmed its B3 Corporate Family Rating for Uno Restaurant
Holdings Corp.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities:


                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$142 million
   10% Second Lien
   Notes due 2011         B3      Caa1    LGD4        60%


Moody's explains that current long-term credit ratings are
opinions about expected credit loss that incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).




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


ADMINISTRACION NACIONAL: S&P Ups Corporate Credit Rating to B+
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Uruguay's 100% state-owned fuel company,
Administracion Nacional de Combustibles Alcohol y Portland aka
ANCAP, to 'B+' from 'B'.  The rating action is in line with the
recent upgrade of the Republic of Uruguay to 'B+' from 'B'.  The
outlook is stable.

The upgrade on Uruguay reflects the continuing decline in the
level of general government debt and the strengthening of its
maturity profile in addition to consolidation of Uruguay's
stronger macroeconomic framework.

"ANCAP's credit quality continues to be conditioned by that of
the Republic of Uruguay, its 100% owner.  We also understand
that the above-mentioned improvements should continue to
positively affect ANCAP's business environment," said Standard &
Poor's credit analyst Luciano Gremone.

The ratings on ANCAP reflect the risks inherent in:

   -- operating as a single-asset refiner,
   -- the challenging economic environment of Uruguay,
   -- the ownership by Uruguay, and
   -- the potential effects of the deregulation of the Uruguayan
      fuels market.

The rating also incorporates our expectations that ANCAP will
maintain its dominant market position in Uruguay.

The stable outlook indicates the linkage of ANCAP's credit
quality to the sovereign's financial health.  Standard & Poor's
expects the ratings on ANCAP to continue to follow the ratings
on the Republic. Nevertheless, the ratings could come under
pressure if the company assumes a significantly more aggressive
capital structure that could affect its financial profile.


BANCO BILBAO: S&P Ups Counterparty Credit Rating to B+ from B
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
counterparty credit and CD ratings on:

   -- Banco Bilbao Vizcaya Argentaria Uruguay,
   -- Discount Bank Latin America S.A., and
   -- Citibank N.A. (Uruguay Branch)

to 'B+' from 'B' as a direct result of the upgrade of the
Oriental Republic of Uruguay.  The short-term ratings on the
three Uruguayan banks remain at 'B'.  The outlook on all three
banks is stable.

"The financial system has shown improved consolidation since the
2002 crisis," said Standard & Poor's credit analyst Pablo
Gamble.  Both the loan book and the deposit base have increased,
and liquidity levels are high at 70%.  On the regulatory side,
capital requirements have tightened in line with international
standards.  In this regard, the rated Uruguayan banks enjoy
comfortable liquidity positions and strong credit quality
indicators.  On the negative side, somewhat sluggish lending
activity is likely to remain the rule.

In turn, the sovereign upgrade reflects the continuing decline
in the level of general government debt and the strengthening of
its maturity profile in addition to consolidation of Uruguay's
stronger macroeconomic framework.  It also incorporates the
expectation that additional consolidation of this stronger
macroeconomic framework-which is characterized by lower fiscal
deficits and declining debt burden combined with an active, yet
gradual, reform agenda-could continue to improve the rating over
the medium term.

The stable outlook follows the outlook on the Uruguayan
sovereign ratings, which reflects Standard & Poor's expectation
that the process of consolidating of Uruguay's improved
macroeconomic framework will continue to be supported by a
strong commitment from the current administration, but that the
reduction in its credit vulnerabilities will occur only
gradually.


CITIBANK (URUGUAY): S&P Ups Counterparty Credit Rating to B+
------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
counterparty credit and CD ratings on:

   -- Banco Bilbao Vizcaya Argentaria Uruguay,
   -- Discount Bank Latin America S.A., and
   -- Citibank N.A. (Uruguay Branch)

to 'B+' from 'B' as a direct result of the upgrade of the
Oriental Republic of Uruguay.  The short-term ratings on the
three Uruguayan banks remain at 'B'.  The outlook on all three
banks is stable.

"The financial system has shown improved consolidation since the
2002 crisis," said Standard & Poor's credit analyst Pablo
Gamble.  Both the loan book and the deposit base have increased,
and liquidity levels are high at 70%.  On the regulatory side,
capital requirements have tightened in line with international
standards.  In this regard, the rated Uruguayan banks enjoy
comfortable liquidity positions and strong credit quality
indicators.  On the negative side, somewhat sluggish lending
activity is likely to remain the rule.

In turn, the sovereign upgrade reflects the continuing decline
in the level of general government debt and the strengthening of
its maturity profile in addition to consolidation of Uruguay's
stronger macroeconomic framework.  It also incorporates the
expectation that additional consolidation of this stronger
macroeconomic framework-which is characterized by lower fiscal
deficits and declining debt burden combined with an active, yet
gradual, reform agenda-could continue to improve the rating over
the medium term.

The stable outlook follows the outlook on the Uruguayan
sovereign ratings, which reflects Standard & Poor's expectation
that the process of consolidating of Uruguay's improved
macroeconomic framework will continue to be supported by a
strong commitment from the current administration, but that the
reduction in its credit vulnerabilities will occur only
gradually.


DISCOUNT BANK: S&P Raises Counterparty Credit Rating to B+
----------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
counterparty credit and CD ratings on:

   -- Banco Bilbao Vizcaya Argentaria Uruguay,
   -- Discount Bank Latin America S.A., and
   -- Citibank N.A. (Uruguay Branch)

to 'B+' from 'B' as a direct result of the upgrade of the
Oriental Republic of Uruguay.  The short-term ratings on the
three Uruguayan banks remain at 'B'.  The outlook on all three
banks is stable.

"The financial system has shown improved consolidation since the
2002 crisis," said Standard & Poor's credit analyst Pablo
Gamble.  Both the loan book and the deposit base have increased,
and liquidity levels are high at 70%.  On the regulatory side,
capital requirements have tightened in line with international
standards.  In this regard, the rated Uruguayan banks enjoy
comfortable liquidity positions and strong credit quality
indicators.  On the negative side, somewhat sluggish lending
activity is likely to remain the rule.

In turn, the sovereign upgrade reflects the continuing decline
in the level of general government debt and the strengthening of
its maturity profile in addition to consolidation of Uruguay's
stronger macroeconomic framework.  It also incorporates the
expectation that additional consolidation of this stronger
macroeconomic framework-which is characterized by lower fiscal
deficits and declining debt burden combined with an active, yet
gradual, reform agenda-could continue to improve the rating over
the medium term.

The stable outlook follows the outlook on the Uruguayan
sovereign ratings, which reflects Standard & Poor's expectation
that the process of consolidating of Uruguay's improved
macroeconomic framework will continue to be supported by a
strong commitment from the current administration, but that the
reduction in its credit vulnerabilities will occur only
gradually.


* URUGUAY: State Oil Firm Cuts Fuel Prices
------------------------------------------
The Uruguayan government said in a statement that Ancap, the
state-run oil firm of the nation, has reduced fuel prices an
average 7.3% starting Sept. 28.

Business News Americas relates that the price of naphtha was
decreased an average 11.6%, UYU3.9 per liter.  The price of
diesel fell 5.2%, or UYU1.2 per liter.

Ancap, according to BNamericas, was able to reduce prices due to
higher margins generated by low oil prices, which have decreased
to an average of US$63 per barrel.

Ancap believes prices of oil will remain between US$60 a barrel
and US$65 per barrel through the end of 2006, BNamericas states.

                        *    *    *

On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018 'B+'.


* URUGUAY: S&P Raises Foreign & Local Curr. Credit Ratings to B+
----------------------------------------------------------------
Standard & Poor's Ratings Service raised its long-term foreign
and local currency sovereign credit ratings on the Republic of
Uruguay to 'B+' from 'B'.  The outlook on both ratings is
stable.  Standard & Poor's also raised its assessment of the
risk of transfer and convertibility to 'BB+' from 'BB'.

"The upgrade reflects the continuing decline in the level of
general government debt and the strengthening of its maturity
profile in addition to consolidation of Uruguay's stronger
macroeconomic framework," said Standard & Poor's credit analyst
Sebastian Briozzo.

The combination of a strong economic recovery, appreciation of
the Uruguayan peso, and an improved fiscal position have
underpinned the decline in debt.  Furthermore, active liability
management-in particular replacing part of the IMF debt maturing
in 2006 and 2007 with longer term and lower cost capital market
debt-has smoothed out the government's amortization schedule.
Increased fiscal flexibility over the medium term is consistent
with the 'B+' rating.

Additional consolidation of this stronger macroeconomic
framework-which is characterized by lower fiscal deficits and
declining debt burden, combined with an active, yet gradual,
reform agenda-could continue to improve Uruguay's rating over
the medium term.  Nonetheless, the ratings on Uruguay will
continue to be severely constrained by:

   -- a still high debt burden, in particular external
      indebtedness;

   -- significant gross external financing requirements;

   -- a high level of dollarization; and

   -- an economic structure that is still highly dependent on
      external factors, in particular regional economic
      performances.

The reduction of Uruguay's fiscal and external vulnerabilities
in the past three years is remarkable. Uruguay's net general
government debt is expected to decline to 59% of GDP at the end
of 2006, compared with 90% in 2003.  Net public sector external
debt has also declined significantly during the same period and
is expected to constitute 100% of current account receipts at
the end of 2006 (compared with the high 212% in 2003).  In
addition, recent operations of liability management, replacing
relatively costly IMF indebtedness maturing in 2006 and 2007 (in
general the rescue funds provided to Uruguay at the deepest
period of the recent crisis) with longer capital market debt
provided additional flexibility to Uruguay's fiscal management
over the short term.  Uruguay repaid US$ 2.05 billion to the
International Financial Institutions during the first half of
2006 ahead of schedule, cleaning up the government's debt
maturity profile over the next 12 months.

Uruguay's economy is expected to grow at 5.3% in 2006-the fourth
straight year of robust economic performance after the deep
crisis of 2002.  Strong fiscal revenues combined with the
commitment of the current administration to limit spending has
led to higher primary surpluses that are expected to reach 3%
(general government) of GDP in 2006.

The stable outlook reflects Standard & Poor's expectation that
the process of consolidating of Uruguay's improved macroeconomic
framework will continue to be supported by a strong commitment
from the current administration, but that the reduction in
Uruguay's credit vulnerabilities will occur only gradually.
Continued commitment to a solid fiscal position is essential for
any positive rating momentum. Advancement of economic reform
under way, in particular the tax reform, would likely support
improved creditworthiness.




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


CITGO: S&P Says Ratings Unaffected by Expired 7-Eleven Contract
---------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
CITGO Petroleum Corp. (BB/Stable/--) would remain unchanged
following the announcement that the company and 7-Eleven Inc.
(A/Stable/--) would not renew a gasoline supply contract.  The
20-year contract expires this month, and dates from a time when
the two companies shared a corporate parent.  Standard & Poor's
views the end of the supply relationship as consistent with
CITGO's strategy to match its marketing footprint more closely
with its product output following the sale of its ownership in a
Houston, Texas, refinery in August, and thus sees the
development as neutral for CITGO's credit quality.  The ratings
on CITGO are linked to those on its parent, Petroleos de
Venezuela S.A. (B+/Watch Dev/--).


* VENEZUELA: Will Send 200,000 Gallons of Diesel to Nicaragua
-------------------------------------------------------------
Venezuela will be sending about 200,000 gallons of diesel to
Nicaragua over the next few days, under an oil accord executed
five months ago with Venezuelan President Hugo Chavez, El
Universal states, citing Daniel Ortega -- the presidential
candidate of the Sandinista political party.

Mr. Ortega said that the shipment will arrive in the recently
refitted port of El Rama, according to DPA.

El Universal states that Mr. Ortega said the fuel will enter
little by little, due to the inability to store 10 million
barrels of oil offered by Petroleos de Venezuela to the
Nicaragua's Municipalities Association.

The diesel from Venezuela will help resolve the transportation
problem in Managua, where operators complain about the continued
increase in oil prices, El Universal reports, citing Dionision
Marenco -- a Sandinista mayor and the chairperson of the
Municipalities Association.

                        *    *    *

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


* IDB & Intel Formalize Pact to Support ICT Dev't in LatAm
----------------------------------------------------------
The Inter-American Development Bank and Intel Corp. formalized
an agreement that will facilitate access to the benefits of
information and communication technology or ICT in Latin America
and the Caribbean.

Luis Alberto Moreno, IDB President and L. Wilton Agatstein,
Intel Vice President, Channel Platforms Group, signed the
agreement.  The event took place at the United Nations
Headquarters in New York City following the Steering Committee
Meeting of the Global Alliance for ICT and Development or GAID.
Attending the ceremony was Craig Barrett, Intel Chairman of the
Board and GAID Chairman.

With the agreement, the parties seek to contribute to the
development of the countries of Latin America and the Caribbean
through the deployment of effective ICT and connectivity
solutions aimed at enhancing the region's social and economic
growth.  The agreement outlines the following strategic areas of
common interest for the IDB and Intel, and which constitute the
framework for specific projects to be jointly developed:

small and medium-sized enterprises development;
education; and digital communities and connecting the majority.

The IDB is the oldest and largest regional development bank in
the world and the primary source of multilateral financing for
Latin America and the Caribbean.  Its mission is to promote
social and economic development, reduce poverty and strengthen
democratic institutions in the countries of the region.

Intel, the world leader in silicon innovation, develops
technologies, products and initiatives to continually advance
how people work and live.


* BOOK REVIEW: Crafting Solutions for Troubled Businesses
---------------------------------------------------------
Author:     Stephen J. Hopkins and S. Douglas Hopkins
Publisher:  Beard Books
Hardcover:  316 pages
List Price: US$74.95

Order your personal copy at
http://www.amazon.com/exec/obidos/ASIN/1587982870/internetbankru
pt

The book is a practical guide to evaluating and addressing the
challenges of a distressed business -- whether due to being over
leveraged, poorly managed, or is under performing.

The authors provide practical advice, based on their involvement
collectively in more than 150 financially stressed businesses,
on how to maximize the value of a troubled business.

The authors identify patterns of problems and conclude that
financially troubled companies can generally be segmented into
three classifications:  Undisciplined Racehorses, Overburdened
Workhorses, and Aging Mules.

Using these classifications as a conceptual framework, the
authors offer extensive, fact-based problem diagnosis, and
solution tools, and show how to "separate the wheat from the
chaff and maximize the value of each."

Stephen J. Hopkins and S. Douglas Hopkins, a father-son team,
are founders and principals of Kestrel Consulting, LLC.


                         ***********


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

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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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