TCRLA_Public/061025.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

          Wednesday, October 25, 2006, Vol. 7, Issue 212

                          Headlines

A R G E N T I N A

ELECTRICIDAD ARGENTINA: S&P Places raB+ Ratings on US$90MM Notes
EL CEIBAL: Verification of Proofs of Claim Is Until Dec. 4
EUROMAYOR SA: Moody's LatAm Puts E Rating on US$10-Mil. in Notes
HUGO CARLOS: Seeks for Court Approval to Reorganize Business
INTERNATIONAL PROALKO: Claims Verification Deadline Is Dec. 18

INVERSORA ELECTRICA: Fitch Arg Confirms D Ratings on Notes
PRIME ARGENTINA: Reorganization Proceeding Concluded
PROVINCIA DEL CHACO: Moody's LatAm Puts D Rating on US$50MM Debt
TELEFONICA DE ARGENTINA: Investment Plan for 2007 at Risk
UNION CRAFT: Claims Verification Deadline Is Set for Feb. 1

VALEANT PHARMA: Restatement News Cues Moody's to Review Ratings

* ARGENTINA: Issuing US$1 Billion Joint Bond with Venezuela

B A R B A D O S

ANDREW CORP: Markets Dual Band Satellite Systems with Overwatch

B E L I Z E

* BELIZE: Consultation with International Monetary Fund Ends

B O L I V I A

PETROLEO BRASILEIRO: Bolivia Warns of Intervention in Operations
PETROLEO BRASILEIRO: May Abandon Operations in Bolivia

B R A Z I L

BANCO NACIONAL: Offering New Salary Hike to Workers Next Week
COMPANHIA DE SANEAMENTO: Fitch Rates US$250-Million Notes at BB
COMPANHIA DE SANEAMENTO: Starts Building Sao Joao Pipeline
FIDELITY NATIONAL: Repurchases 1.4 Mil. Shares of Common Stock
FREESCALE SEMICONDUCTOR: Commences Tender Offers on Sr. Notes

PETROLEO BRASILEIRO: Advancing Biodiesel Plants Construction

C A Y M A N   I S L A N D S

ALTERNATIVE VENTURES: Final Shareholders Meeting Is on Nov. 9
GLOBAL VENTURES: Liquidator Presents Wind Up Accounts on Nov. 9
MOLVO: Invites Shareholders for a Final Meeting on Nov. 9
MUTUAL FUND (2): Last Day to File Proofs of Claim Is on Nov. 13
MUTUAL FUND (4): Creditors Must File Proofs of Claim by Nov. 13

MUTUAL FUND (8-GLOBAL): Proofs of Claims Filing Is Until Nov. 13
MUTUAL FUND (8-PACIFIC): Proofs of Claim Filing Ends by Nov. 13
SAPIC 98 (22): Proofs of Claim Filing Deadline Is on Nov. 13
SAPIC 98 (31): Creditors Must Submit Proofs of Claim by Nov. 13
SAPIC 98 (36): Last Day for Filing of Proofs of Claim Is Nov. 13

SAPIC 98 (B-I): Deadline for Proofs of Claim Filing Is Nov. 13
SILICON MAGNETIC: Shareholders Gather for Last Meeting on Nov. 9

C H I L E

AES CORP: Files US$40-Million Lawsuit Against Alstom in Delaware

C O L O M B I A

BANCOLOMBIA SA: Names Olga Botero VP of Information Technology
BANCOLOMBIA: Unit Authorizes Issue of COP800-Billion in Bonds
ECOPETROL: Five Lawmakers Support Sale of 20% Stake
PETROLEOS DE VENEZUELA: Eyes Colombian Gov.'s Stake in Ecogas

* COLOMBIA: U'wa Nation Rejects Ecopetrol's Oil Project

C O S T A   R I C A

ARMSTRONG WORLD: Reports Distribution Amount for Class 6 Claims
ARMSTRONG WORLD: Registers 5,349,000 Common Shares

H O N D U R A S

DOLE FOOD: Creating Worker Program for Honduran Banana Workers

J A M A I C A

AIR JAMAICA: Cabinet Rejects Airline's New Business Plan
NATIONAL WATER: Cuts Losses to US$677 Million in 2006

M E X I C O

ALLIS-CHALMERS ENERGY: Buys Petro Rentals for US$29.8MM in Cash
BALLY TOTAL: Holding Annual Shareholders Meeting on Dec. 19
BALLY TOTAL: Board Reduces Number of Directors from Nine to Six
CLIENTLOGIC CORP: Inks Merger Deal with SITEL
FORD MOTOR: Reports US$5.3B Net Loss for Third Quarter 2006

FORD MOTOR CREDIT: Posts USUS$262MM Net Income in Third Quarter
FORD MOTOR: Restating 2001 Through 2006 Financial Results
FORD MOTOR: Moody's Says Weak Results Consistent with B3 Rating
FORD MOTOR: S&P Places B-Rated Sr. Unsec. Debt on Negative Watch
FORD MOTOR: Fitch Puts Neg. Watch on B+ Rated Senior Unsec. Debt

GRUPO MEXICO: Won't Reopen San Martin Zinc-Copper Mine
NORTEL NETWOKS: Deploys Municipal Wireless Solution

P A N A M A

* PANAMA: Citizens Voted Yes in a Referendum on Canal Expansion
* PANAMA: Fitch Says Canal Expansion May Yield Positive Results

P E R U

BANCO DE CREDITO: Fitch Rates Proposed US$120MM Notes at BB+
BANCO DE CREDITO: Moody's Assigns Ba2 Rating on US$120MM Notes

P U E R T O   R I C O

ADELPHIA COMMS: Metropolitan Edison, et al. Want Claims Allowed
ADELPHIA COMMS: Santa Monica Seeks Court OK to Century Payments
DORAL FIN'L: Reports US$33.8MM Net Loss for 2006 First Semester
GLOBAL HOME: Court Approves Plante & Moran to Audit 401(k)
GLOBAL HOME: Hires Pricewaterhousecoopers to Provide Tax Works

PILGRIM'S PRIDE: Issues Open Letter to Gold Kist Stockholders

T R I N I D A D   &   T O B A G O

BRITISH WEST: Outsourcing Customer Service at Miami Office
DIGICEL LTD: Authority Asks Rival Firm to Cooperate on Probe

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Seeking Offshore Rigs for Mariscal Sucre
UNIVERSAL COMPRESSION: Secures US$500-Million Credit Facility
VENEZUELA: Issuing US$1 Billion Joint Bond with Argentina


                         - - - - -


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


ELECTRICIDAD ARGENTINA: S&P Places raB+ Ratings on US$90MM Notes
----------------------------------------------------------------
Standard and Poor's rating services assigned these ratings on Electricidad
Argentina S.A.'s debts:

-- Obligaciones Negociables with discount for US$75,000,000 and
-- Obligaciones Negociables at same price for US$15,000,000.

The rating action was based on the company's balance sheet at June 30, 2006.


EL CEIBAL: Verification of Proofs of Claim Is Until Dec. 4
----------------------------------------------------------
Mirta Haydee Addario, the court-appointed trustee for El Ceibal S.R.L.'s
bankruptcy proceeding, will verify creditors' proofs of claim until Dec. 4,
2006.

Ms. Addario will present the validated claims in court as individual reports
on Feb. 19, 2007.  Court No. 11 in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by El Ceibal 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 El Ceibal's accounting and
banking records will follow on Apr. 2, 2007.

Clerk No. 21 will assist the court in the case.

The debtor can be reached at:

          El Ceibal S.R.L.
          Gutierrez 2564
          Buenos Aires, Argentina

The trustee can be reached at:

          Mirta Haydee Addario
          Lavalle 1454
          Buenos Aires, Argentina


EUROMAYOR SA: Moody's LatAm Puts E Rating on US$10-Mil. in Notes
----------------------------------------------------------------
Euromayor S.A. de Inversiones's Obligaciones Negociables for US$10 million
is rated E by Moody's Latin America.  The debt became due on April 28, 2003.
The rating action was based on the company's financial status at July 31,
2006.


HUGO CARLOS: Seeks for Court Approval to Reorganize Business
------------------------------------------------------------
A court in Buenos Aires is studying the merits of Hugo Carlos Rey S.A.'s
petition to reorganize its business after it defaulted on its obligations.

The petition, once approved by the court, will enable Hugo Carlos to
negotiate a settlement plan with its creditors in order to avoid a straight
liquidation.

The debtor can be reached at:

          Hugo Carlos Rey S.A.
          Junin 1622
          Buenos Aires, Argentina


INTERNATIONAL PROALKO: Claims Verification Deadline Is Dec. 18
--------------------------------------------------------------
Myriam Lewenbaum, the court-appointed trustee for International Proalko
S.A.'s bankruptcy case, will verify creditors' proofs of claim until Dec.
18, 2006.

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

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

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

International Proalko was forced into bankruptcy at the request of
Credencial Cooperativa Ltda., which it owes US$1,996.

Clerk No. 4 assists the court in the proceeding.

The debtor can be reached at:

          International Proalko S.A.
          Viamonte 2995
          Buenos Aires, Argentina

The trustee can be reached at:

          Myriam Lewenbaum
          Montevideo 666
          Buenos Aires, Argentina


INVERSORA ELECTRICA: Fitch Arg Confirms D Ratings on Notes
----------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. confirmed the D rating it
assigned to the Obligaciones Negociables for US$100 million Class A and for
US$130 million Class B issued by Inversora Electrica de Buenos Aires S.A.
The ratings are in accordance with the suspension on the payments of capital
and interests since March 2002.

The rate is based mainly for non-payment associated with the business of
Empresa Distribuidora de Energia Atlantica S.A., which is controlled by
Inversora.  Despite that, Empresa Distribuidora has shown an improvement on
its economic and financial situation, its credit feature still depends on
the renegotiation of debts with banks.  Fitch Argentina estimates that
Empresa Distribuidora will not distribute dividends in the short and medium
terms.

Inversora Electrica de Buenos Aires S.A. was created on June
1997.  It holds a majority stake at Empresa Distribuidora de
Energia Atlantica S.A.  Empresa Distribuidora holds the electricity
distribution concession for 95 years in the east region of the Province of
Buenos Aires since the privatization
of ESEBA.  The main shareholder of IEBA is BAECO (Buenos Aires
Energy Company) holding 96% of the shares, which it bought on
April 28, 2005, from United Utilities International Limited --
holding 45% in the company.  Also, BAECO is controlled by
Camuzzi Argentina SA.


PRIME ARGENTINA: Reorganization Proceeding Concluded
----------------------------------------------------
Prime Argentina S.A.'s reorganization proceeding has ended.  Data published
by Infobae on its Web site indicated that the process was concluded after
Court No. 16 in Buenos Aires, with assistance from Clerk No. 22, approved
the debt agreement signed between the company and its creditors.

Estudio Giacumbo Hernandez was the court-appointed trustee that supervised
the proceeding.

The trustee can be reached at:

          Estudio Giacumbo Hernandez
          Avenida Corrientes 1250
          Buenos Aires


PROVINCIA DEL CHACO: Moody's LatAm Puts D Rating on US$50MM Debt
----------------------------------------------------------------
Provincia del Chaco's US$50,000,000 debt, guaranteed by the Federal
Coparticipation, is rated D by Moody's Latin America.  The debt was issued
on Jan. 14, 2001.


TELEFONICA DE ARGENTINA: Investment Plan for 2007 at Risk
---------------------------------------------------------
A major conflict with the workers' union has put Telefonica de Argentina
SA's ARS1.3-billion investment program at risk, Infobae reports.

Business News Americas relates that Foetra, a telecom workers' union in
Buenos Aires, has been demanding the almost 2,000 outsourced workers at
Telefonica de Argentina be considered as Foetra members, rather than members
of Uocra -- the Argentine construction workers union.

According to BNamericas, Telefonica de Argentina's outsourced personnel work
mainly on expanding the network infrastructure of the firm.

Infobae notes that almost 60% of the investment plan could be paralyzed.

The conflict is putting in danger the installation of new fixed lines as
well as the expansion of broadband services in Argentina, Infobae says,
citing Telefonica de Argentina.

Telefonica, the parent firm of Telefonica de Argentina, told BNamericas that
due to the violent nation of the conflict in its Argentine operations, it
temporarily closed some commercial offices and other buildings.

Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina S.A. -- http://www.telefonica.com.ar/-- provides
telecommunication services, which include telephony business both in Spain
and Latin America, mobile communications businesses, directories and guides
businesses, Internet, data and corporate services, audiovisual production
and broadcasting, broadband and Business-to-Business e-commerce activities.

                        *    *    *

Moody's Investors Service upgraded on May 27, 2006, the ratings on
Telefonica de Argentina, S.A.'s Corporate Family Rating (foreign currency)
to B2 from B3 with stable outlook; Foreign currency issuer rating to B2 from
B3 with stable outlook; and Senior Unsecured Rating (foreign currency) to B2
from B3 with stable outlook.


UNION CRAFT: Claims Verification Deadline Is Set for Feb. 1
-----------------------------------------------------------
Domingo Vicente Marinkovic, the court-appointed trustee for Union Craft
S.A.'s bankruptcy proceeding, will verify creditors' proofs of claim until
Feb. 1, 2006.

Mr. Marinkovic will present the validated claims in court as individual
reports on March 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 Union Craft 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 Union Craft's accounting and
banking records will follow on May 2, 2007.

The trustee can be reached at:

          Domingo Vicente Marinkovic
          Fray Justo Santa Maria de Oro 2381
          Buenos Aires, Argentina


VALEANT PHARMA: Restatement News Cues Moody's to Review Ratings
---------------------------------------------------------------
Moody's Investors Service placed the ratings of Valeant Pharmaceuticals
International (B1 corporate family rating) under review for possible
downgrade.  This rating action follows the company's announcement that it
will restate certain financial statements as a result of accounting errors
related to accounting for stock options.

The rating review is prompted primarily by concerns that failure to file
timely financial statements with the SEC could lead to an acceleration of
debt maturities.  According to the indentures governing US$300 million of
Valeant's senior notes, US$240 million of 3% convertible notes and US$240
million of 4% convertible notes, failure to file timely SEC reports
constitutes a covenant violation.  If the trustee or holders of 25% of the
respective series of notes or convertibles declare a default, Valeant must
cure the violation within 60 days or the debt becomes immediately due.

Secondary concerns include the company's cash flow relative to debt, which
has remained somewhat weak for Moody's B1 corporate family rating, and
delays in the expected timeline for Viramidine regulatory filings following
VISER1 data published in March 2006 and VISER2 data published in September
2006.  Moody's rating outlook on Valeant has been negative since
March 23, 2006.

Moody's rating review will focus on:

   (1) the ability of the company to meet the filing
       requirements specified in the indentures;

   (2) the nature and extent of the restatement, as well as the
       disclosures of any weaknesses in internal controls over
       financial reporting; and

   (3) the company's ability to improve free cash flow over the
       near term through growth in product sales and cost
       restructuring activities while continuing to invest in
       Viramidine clinical trials.

Moody's placed these ratings under review for possible downgrade:

   -- B1 corporate family rating;

   -- Ba3 senior unsecured notes of US$300 million due 2011
      (LGD3, 39%); and

   -- Ba3 probability of default rating.

Moody's does not rate Valeant's 3% convertible subordinated notes of US$240
million due 2010 or its 4% convertible subordinated notes of US$240 million
due 2013.

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International -- http://www.valeant.com-- is a global specialty
pharmaceutical company with US$823 million of 2005 revenues.
The company has offices in Argentina.


* ARGENTINA: Issuing US$1 Billion Joint Bond with Venezuela
-----------------------------------------------------------
The first stage of the so-called South Bond, to be issued jointly by
Argentina and Venezuela, will take place in the first two weeks of November,
according to a report from Nosis.

The first issuance will be for US$1,000,000.

As previously reported, the new securities will trade in the
Venezuelan internal market.  Argentina will issue Boden 12 and
the Finance Ministry will release fixed-interest notes.

The two nations have maintained strong financial relations, after the
current Venezuelan administration bought about US$3.2 billion of Argentina's
Boden 2012 bonds.

                        *    *    *

As reported on Oct. 4, 2006, Standard & Poor's Ratings Services raised its
long-term local and foreign currency credit rating on the Republic of
Argentina to 'B+' from 'B'.  Standard & Poor's also affirmed its 'B'
short-term ratings on The Republic of Argentina.  S&P said the ratings
outlook is stable.




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


ANDREW CORP: Markets Dual Band Satellite Systems with Overwatch
---------------------------------------------------------------
Andrew Corp. and Overwatch Systems Ltd. have agreed to integrate and jointly
market satellite antenna systems with dual band capability for military and
government usage.

Under the agreement, Andrew's satellite communications antennas will be
paired with Overwatch's proprietary dual band feeds to create a robust,
reliable offering for government systems integrators and government
agencies.  This will enable Andrew's multiband antennas to receive and send
signals to satellites that utilize dual bands, such as X-band and Ka-band,
without changing feed systems.  This is especially critical with the
upcoming launch of the Wideband Gap filler satellite program, where the use
of X-/Ka-band dual feeds is an integral part of the requirements.

"We look forward to working together with Overwatch and providing a fresh
competitive approach to the unique dual band satellite communications
requirements of government and commercial customers," said Russell Dearnley,
director, Earth Station Antennas and Systems, Satellite Communications,
Andrew Corp.  "Our antenna systems expertise and Overwatch's proprietary
feed technology are a powerful combination that will benefit customers."

"We are pleased to join forces with Andrew in offering antenna system
solutions with increased operational effectiveness for both military and
commercial applications using our simultaneous dual band feed technology,"
said Terry Benson, business area manager, Communications Systems, Overwatch
Systems Ltd.  "Satellites are dual band, now satellite terminals can be,
too."

Integrated dual band offerings from Andrew and Overwatch are expected to be
available in November.

Andrew's Satellite Communications Group provides a complete line of antennas
from 46 centimeters to 11.5 meters for all enterprise, government/military,
and consumer satellite communication applications. Andrew-designed
and -built products-which cover C-, Ku-, K-, X-, and the emerging
Ka-band-include type approved earth station antenna hubs and gateways for
broadband and broadcast, VSAT broadband antennas for consumer and enterprise
customers, DBS antennas for home satellite broadcast systems, and complete
installation and testing services.

                        About Andrew

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

                        *    *    *

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




===========
B E L I Z E
===========


* BELIZE: Consultation with International Monetary Fund Ends
------------------------------------------------------------
The Executive Board of the International Monetary Fund aka IMF concluded the
Article IV consultation with Belize.

After a number of years of expansionary policies, stabilization measures
were implemented more forcefully in the context of the 2005/06 budget.
Partly in response to a tighter policy stance, economic growth slowed from
4-1/2% in 2004 to 3-1/2% in 2005, while inflation rose marginally to just
over 4%, mainly reflecting higher fuel prices.

The overall fiscal deficit fell sharply from 8.6% of gross domestic product
in fiscal year 2004/05 to 3.3% of gross domestic product in fiscal year
2005/06.  During the same period, the primary balance shifted from a small
deficit to a surplus of 3% of gross domestic product.  The fiscal correction
reflected revenue measures taken in May 2005, as well as lower interest
payments and cuts in capital expenditure.  The authorities also tightened
liquidity by channeling social security deposits to the central bank and
increasing the cash reserve and liquid asset requirements on three occasions
by one percentage point each, including most recently in September 2006.

Reflecting in part the tightening of macroeconomic polices, the external
current account deficit is expected to narrow considerably to 8-1/2% of
gross domestic product in 2006, from more than 14% of gross domestic product
in the 2005.  This recovery has been driven by a reduction in the trade
balance, due to an increase in traditional exports, the onset of crude oil
exports, and restraint in import growth.  Continued buoyant tourism earnings
have also helped improve the external current account, as did a lower
interest bill, because exceptional fees and charges that were incurred in
2004 and 2005 were not repeated in 2006.

Despite these welcome developments, the outlook for 2007 and beyond remains
worrisome, as scheduled debt service obligations are high and will rise over
time, weighing heavily on the overall balance of payments, particularly as
access to voluntary market financing at affordable terms is impaired.  The
authorities have recognized the sustainability problem and in August 2006,
they approached external commercial creditors to seek a cooperative
agreement on restructuring public sector debt.

The Executive Directors welcomed the progress the authorities have made in
addressing Belize's serious macroeconomic imbalances in the context of a
homegrown adjustment strategy.  A significant fiscal correction has been
achieved in fiscal year 2005/06 by increasing tax collection, reining in
discretionary current spending, and reducing capital expenditure.  Tighter
monetary conditions have helped slow credit growth and keep inflationary
pressures in check.

Directors cautioned that large fiscal and balance of payments financing gaps
are likely to persist in 2007 and beyond in the absence of fiscal and
monetary policies to eliminate these gaps.  To set the economy on a path to
medium-term sustainability, the authorities should aim progressively and on
a firm timetable to close the fiscal and balance of payments financing gaps,
replenish international reserves, and reduce significantly the public debt
burden.  Directors welcomed the authorities' strategy to reform the revenue
system, strengthen public expenditure programming and debt management, and
improve financial accountability and oversight.

Directors encouraged the authorities to persevere with disciplined
macroeconomic policies in coming months in order to contain domestic demand
and support an orderly debt restructuring.

The recent increase in bank reserve requirements is appropriate, and
directors noted that the authorities stand ready to take further action, if
needed, to curb excess liquidity and contain private sector credit growth.

Directors urged the authorities to work to achieve a primary surplus of
3-1/2% of gross domestic product in fiscal year 2006/07.

Directors agreed that achieving balance of payments sustainability in the
medium term will require a greater fiscal effort, maintaining a prudent
monetary stance, external financing, and debt service relief.  They
recommended raising the primary surplus by about one percentage point of
gross domestic product above that originally targeted, first by saving the
bulk of projected revenues from oil production, and in later years by
enhanced non-oil revenue collection and restrained current expenditures.
They welcomed the authorities' intention to pursue these objectives.

Directors stressed the need for a set of carefully sequenced structural
reforms to support fiscal and monetary discipline and foster stronger
long-term growth, and were reassured by the authorities' commitment and
ongoing efforts to move in this direction.  The tax administration should be
modernized, the tax base broadened, and oil and gasoline taxation reformed.
Directors pointed to the importance of reviewing the pension system with the
aim of limiting the growth of spending and making the system actuarially
sound.  Debt management practices should be improved. Directors supported
the authorities' intention to improve governance of quasi-fiscal
institutions, including winding up the operations of the Development Finance
Corp.

The central bank should work to broaden its market-based policy instruments
in order to make monetary policy more effective.  The government's overdraft
facility at the central bank should be eliminated to strengthen the bank's
independence.  Directors supported the authorities' request for fund
technical assistance to facilitate early actions in the areas of tax policy
and monetary instruments.

Directors welcomed that Belize's banking system is generally sound and bank
supervision has been strengthened.  At the same time, they urged the
authorities to consider implementing those recommendations of the IMF's 2003
Offshore Financial Center assessment that remain outstanding.  In
particular, there is a need to strengthen insurance supervision and broaden
financial sector prudential regulations, especially with regard to loan-loss
provisioning and loan collateral valuation.

Directors concurred with the authorities that the fixed exchange rate regime
has anchored prices and expectations, and has generally served the economy
well.  Sustaining the peg will require that the authorities continue to work
toward implementing macroeconomic policies that address Belize's economic
and financial vulnerabilities.  These considerations increase the importance
of responding expeditiously to changes in the domestic and external
environment and avoiding policy slippages.

Directors observed that reaching a cooperative agreement with private
creditors on restructuring Belize's external debt will be critical for
regaining balance of payments and debt sustainability.  They welcomed the
authorities' continuing engagement with multilateral and bilateral creditors
as well, in order to promote an orderly adjustment process.

Directors welcomed Belize's participation in the General Data Dissemination
System and encouraged the authorities to continue to strengthen the quality
and timeliness of the country's economic statistics.

                        *    *    *

Moody's Investor Service assigned these ratings to Belize:

        -- CC LT Foreign Bank Deposit, Caa3
        -- CC LT Foreign Currency Debt, Caa3
        -- CC ST Foreign Bank Deposit, NP
        -- CC ST Foreign Currency Debt, NP
        -- LC Currency Issuer Rating, Caa3
        -- FC Currency Issuer Rating, Caa3
        -- Foreign Currency Long-Term Debt, Caa3
        -- Local Currency Long-Term Debt, Caa3

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2006, Standard & Poor's lowered its long-term foreign
currency sovereign credit rating on Belize to 'CC' from 'CCC-'
while leaving its outlook on the rating at negative.  Standard &
Poor's affirmed its 'CCC+' long-term local currency sovereign
credit rating on Belize and revised its outlook on the rating to
stable from negative.  The 'C' short-term sovereign credit
ratings on the sovereign were affirmed by S&&P.




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


PETROLEO BRASILEIRO: Bolivia Warns of Intervention in Operations
----------------------------------------------------------------
The Bolivian government has warned it will intervene in Petroleo Brasileiro
SA's operations in the nation next week if no deal over new production
contracts is reached by Oct. 28, Valor Economico reports.

Juan Ramon Quintana, a representative of Bolivia's President Evo Morales,
traveled to Brasilia, Brazil, on Thursday last week to deliver an ultimatum
to Brazil's President Luiz Inacio Lula da Silva, Valor relates.

President Morales disclosed on May 1 a nationalization of Bolivia's oil and
gas sector, giving foreign oil companies 180 days to renew production
contracts or leave the nation.

The Bolivian government declined last week requests of extending the Oct. 28
deadline, which is on Oct. 28, Dow Jones states.

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

                        *    *    *

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

                        *    *    *

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

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

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


PETROLEO BRASILEIRO: May Abandon Operations in Bolivia
------------------------------------------------------
Petroleo Brasileiro SA, Brazil's state oil company, could abandon its
operations in Bolivia if a deal with Yacimientos Petroliferos Fiscales
Bolivianos, its Bolivian counterpart, is not reached, the Associated Press
reports, citing the Brazilian President Luiz Inacio Lula da Silva's top
adviser.

Brazilian officials told AP that the country hopes to reach an accord with
Bolivia over the exploration and production of Bolivian natural gas before a
Saturday deadline set by Bolivia.

Silas Rondeau, the mines and energy minister of Brazil, told Agencia Estado
that he expected to travel to Bolivia this weekend to complete an accord and
is very hopeful about the talks with Bolivian officials.

AP underscores that Marco Aurelio Garcia, a top aide to President Silva,
said that if a deal is reached a new contract will be established.

If there would be no agreement between Brazil and Bolivia, Petroleo
Brasileiro will have to leave Bolivia and then it would be compensated by
the Bolivian government or through decisions made by international
authorities, Mr. Garcia told AP.

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

                        *    *    *

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

                        *    *    *

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

  Maturity Date           Amount        Rate       Ratings

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

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




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


BANCO NACIONAL: Offering New Salary Hike to Workers Next Week
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social will present a new
salary increase offer to its workers next week, Agencia Estado reports.

The banks' workers are currently protesting, demanding for a salary
increase.

According to BNamericas, Banco Nacional workers have demanded a 20% pay
increase and bonuses equal to a half-month's pay.

The workers walked out on Oct. 19 after Banco Nacional offered a 3.84% pay
raise and bonuses equal to half a month's wages, BNamericas notes.

BNamericas underscores that on Oct. 20, Banco Nacional rejected an offer for
a 4.5% pay increase and bonuses equal to 80% of a month's pay.

                        *    *    *

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.


COMPANHIA DE SANEAMENTO: Fitch Rates US$250-Million Notes at BB
---------------------------------------------------------------
Fitch Ratings has assigned Local and Foreign Currency Issuer Default Ratings
of 'BB' and National Long-term Rating of 'A+(bra)' to Companhia de
Saneamento Basico do Estado de Sao Paulo aka Sabesp.  In addition, Fitch has
assigned a 'BB' to the company's proposed US$250 million note issuance due
2016.  The Outlook for the IDRs and National Long Term Rating is Stable.
The proceeds of the issuance will be used to refinance existing indebtedness
and other corporate purposes. Fitch currently rates Sabesp's fourth, fifth
and sixth debenture issuances 'A+(bra)'.

The ratings reflect Sabesp's strong cash flow generation, moderate leverage
and satisfactory average life of its debt.  The ratings are also supported
by Sabesp's near monopolistic position in its region as well as the
economies of scale gained as the largest water and wastewater company in the
Americas in terms of the number of customers. Sabesp operates without a
concession contract in large municipalities, which moderately adds to
business risk.  In addition, the sector lacks a specific regulatory
framework that adds to uncertainty.  Presently, the Federal Government is in
the process of introducing new legislation to regulate the water and
wastewater sector in Brazil including the clarification of concession
ownership.  While the introduction of a regulatory model with a specific law
and defining regulation would be positive, mild negative financial impacts
could occur for Sabesp as new concession agreements could increase operating
costs that may be partially offset by tariff.

Sabesp's operational and financial performance is exposed to hydrological
conditions, as well as political interference risks. The company is
addressing this risk by continuing to invest in capacity additions.
Political interference risk exists as Sabesp is owned by the Government of
the State of Sao Paulo.  The company's board of directors includes a
majority of members appointed by the government, who influence investment
policies and tariff adjustments.  Political risks are moderate and somewhat
mitigated by continuity of the present political party, which is expected to
remain in place up to 2010.  Over the last five years, the Government has
been neutral to credit quality with little negative interference.

Sabesp's financial profile is improving through strong cash generation. The
company has stable operating results and high margins and is resilient in
economic downturns.  The company has been gradually reducing its leverage,
which is consistent with the rating category. At June 2006, total debt/LTM
EBITDA was 2.6x versus 2.9x in 2005 and 3.7x in 2004. Interest coverage also
improved and reached 3.7x in the LTM ending June 2006, against 3.4 times in
2005.  Net revenues grew 11% to BRL2.7 billion and EBITDA grew 15% to BRL1.3
billion in the first six months of 2006 over the same period of 2005. EBITDA
margin reached 48% at the first half of 2006. Sabesp showed an increase of
3.5% in water and sewage volume billed in the first six months of 2006 and
should benefit in the second half of the year from a 6.71% tariff adjustment
that took effect in August 2006.

Sabesp's debt profile has improved and should benefit from the proposed note
issuance.  The issue is expected to refinance US$225 million notes due 2008
and reduce the refinancing risk.  The new issue will also reduce Sabesp's
financial costs and increase the average life of its debt.  At June 2006,
Sabesp reported total debt of BRL6.4 billion and BRL336 million in cash and
in financial investments; short-term debt represented only 10% of total
(BRL642 million).  Although there is still some foreign exchange risk,
Sabesp has reduced its exposure to currency mismatches. At June 2006, Sabesp
reached its lowest level of foreign currency denominated debt in the last
five years, both in nominal (BRL1.5 billion) and in percentage terms (23%).

Sabesp operates public water and sewage service systems in the State of Sao
Paulo, serving 367 of the 645 municipalities, as well as supplies water on a
wholesale basis to another six municipalities of the metropolitan region.
The company provides water to 22.6 million inhabitants directly (6.5 million
connections), and sewage collection to 18.4 million inhabitants (4.9 million
connections).  Sabesp's coverage ratios are 100% of the population in its
business area for supplying water and 78% of the population for collecting
sewage, of which 60% is treated.  Sabesp is controlled by the Government of
the State of Sao Paulo, which holds 50.3% of the company's common and total
shares.


COMPANHIA DE SANEAMENTO: Starts Building Sao Joao Pipeline
----------------------------------------------------------
Companhia de Saneamento Basico do Estado de Sao Paulo, the state water
utility of Sao Paulo, said in a press release that it has started the
BRL16-million construction works on the Sao Joao do Barueri collection
pipeline.

Business News Americas relates that the pipeline will extend four kilometers
from residential neighborhoods Jandira and Baureri to the wastewater
treatment plant in Barueri.  The pipeline have a diameter varying between
200mm and 1,500mm.

According to BNamericas, sewage produced in Jandira and Baureri is
discharged into the Tiete river.

BNamericas underscores that the construction of the collection pipeline is
part of the Tiete river recuperation project.

Construction works on the Sao Joao do Barueri collection pipeline Will take
18 months.  It will benefit 39,000 residents, BNamericas says.

BNamericas notes that Companhia de Saneamento is also offering expansion
works on the potable water network, which is supplied from water taken from
the Tiete river, as a public-private partnership.

The two projects are aimed at improving water quality of one of the
principal water sources for Sao Paulo, BNamericas states.

Companhia de Saneamento Basico do Estado de Sao Paulo is one of the largest
water and sewage service providers in the world based on the population
served in 2005.  It operates water and sewage systems in Sao Paulo, Brazil.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on June 23, 2006,
Standard & Poor's Ratings Services has raised its Brazilian national-scale
corporate credit rating on Companhia de Saneamento Basico do Estado de Sao
Paulo to 'brA+' from 'brA'.  At the same time, it affirmed the company's
global-scale ratings at 'BB-'.  S&P said the outlook is stable.


FIDELITY NATIONAL: Repurchases 1.4 Mil. Shares of Common Stock
--------------------------------------------------------------
Fidelity National Information Services, Inc. or FIS, a majority-owned
subsidiary of Fidelity National Financial, Inc. or FNF, repurchased
approximately 1.4 million shares of FIS common stock from Fidelity National
Title Group, Inc. or FNT, and its subsidiaries on Oct. 23, 2006, at a total
cost of approximately US$56.4 million, bringing the total number of FIS
shares outstanding to 189,282,429.

FIS' repurchase of shares is in conformity with FNF's receipt of a formal
private letter ruling from the Internal Revenue Service regarding the
tax-free distribution of FNT stock to FNF shareholders and the merger of FNF
with and into FIS.

                   About Fidelity National

Headquartered in Jacksonville, Florida, Fidelity National
Information Services, Inc. -- http://www.fidelityinfoservices.com/--  
provides core processing
for financial institutions; card issuer and transaction
processing services; mortgage loan processing and mortgage-
related information products; and outsourcing services to
financial institutions, retailers, mortgage lenders and real
estate professionals.  FIS has processing and technology
relationships with 35 of the top 50 global banks, including nine
of the top ten.  Nearly 50 percent of all U.S. residential
mortgages are processed using FIS software.  FIS maintains a
strong global presence, serving over 7,800 financial
institutions in more than 60 countries worldwide, including
Brazil.

                        *    *    *

Standard & Poor's Ratings Services raised, on March 8, 2006, the
corporate credit and senior secured ratings of Fidelity National
Information Services Inc. to 'BB+' from 'BB', and removed it
from CreditWatch where it was placed on Sept. 15, 2005.


FREESCALE SEMICONDUCTOR: Commences Tender Offers on Sr. Notes
-------------------------------------------------------------
Freescale Semiconductor, Inc., is commencing tender offers for its US$350
million aggregate outstanding principal amount of 6.875% Senior Notes due
2011 and its US$500 million aggregate outstanding principal amount of 7.125%
Senior Notes due 2014.

In connection with the tender offers, Freescale is soliciting consents to
proposed amendments that would, among other things, eliminate most of the
restrictive covenants and certain of the events of default contained in the
indenture governing the Notes.  The tender offers will expire at 5:00 p.m.,
prevailing eastern time, on Nov. 21, 2006, unless either or both tender
offers are earlier terminated or extended.  In order to receive the consent
payment, which is included in the total consideration, holders must tender
their Notes and consent to the proposed amendments at or prior to 5:00 p.m.,
prevailing eastern time, on Nov. 3, 2006, unless the time and date for
either or both consents is extended.

Both tender offers and consent solicitations are being made pursuant to the
terms and subject to the conditions set forth in an Offer to Purchase and
Consent Solicitation Statement, dated Oct. 23, 2006.  The Statement contains
a description of the specific terms and conditions of the tender offers and
consent solicitations.  Subject to certain exceptions set forth in the
Statement, tenders of Notes may be withdrawn and consents may be revoked at
any time until the applicable Consent Date, but not thereafter.

Subject to the terms and conditions in the Statement, Freescale will pay
each Holder who validly consents to the applicable proposed amendments at or
prior to 5:00 p.m., prevailing eastern time, on the applicable Consent Date,
US$30.00 in cash per US$1,000 principal amount of the Notes for which
consents have been validly delivered and not validly revoked at or prior to
5:00 p.m., prevailing eastern time, on the applicable Consent Date, payable
on the applicable settlement date.

As more fully described in the Statement, the total consideration for each
US$1,000 principal amount of each series of Notes validly tendered pursuant
to the applicable tender offer and accepted for payment on the applicable
settlement date and consents delivered pursuant to the applicable
solicitation and not validly withdrawn or revoked at or prior to 5:00 p.m.,
prevailing eastern time, on the applicable Consent Date, will be determined
with respect to each series of Notes on the basis of a yield to the
applicable First Call Date equal to the sum of the bid-side yield on the
applicable reference treasury security with respect to such series of Notes
as calculated by the Dealer Managers in accordance with standard market
practice plus the applicable fixed spread of 50 basis points.  The total
consideration applicable to a series of Notes includes the Consent Payment
applicable to such series of Notes and is payable on the applicable
settlement date.  In addition, any holders who validly tender and do not
validly withdraw their Notes in the tender offers will receive accrued and
unpaid interest from the last interest payment date to, but not including,
the settlement date with respect to such series of Notes, payable on the
applicable settlement date.  Subject to the terms and conditions in the
Statement, the settlement date for each tender offer is expected to occur
promptly following the applicable Expiration Date.

Each tender offer is conditioned upon the satisfaction of certain
conditions, including, among other things, there being validly tendered and
not withdrawn at least a majority in aggregate principal amount of the
outstanding Notes of each applicable series and the receipt of the requisite
consents for each applicable series of Notes, execution of the applicable
supplemental indenture providing for the applicable proposed amendments and
the consummation of the merger pursuant to the previously announced
Agreement and Plan of Merger, dated Sept. 15, 2006, by and among Freescale,
Firestone Holdings LLC and Firestone Acquisition Corporation.

Each of Credit Suisse Securities (USA) LLC and Citigroup Corporate and
Investment Banking has been retained as a Dealer Manager in connection with
the tender offers and as a Solicitation Agent in connection with the consent
solicitations.  Any questions or requests for assistance may be directed to:

          Credit Suisse Securities (USA) LLC
          Tel: (800) 820-1653 (U.S. toll-free)
               (212) 325-7596 (collect)

                     -- or --

          Citigroup Corporate and Investment Banking
          Tel: (800) 558-3745 (U.S. toll-free)
               (212) 723-6106 (collect)

D.F. King & Co., Inc. has been retained as Tender Agent and as Information
Agent in connection with the tender offers and consent solicitations.
Requests for additional copies of the Statement or any other document may be
directed to:

           D.F. King & Co., Inc.
           48 Wall Street
           New York, New York 10005
           Tel: (800) 714-3312 (U.S. toll-free)

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

                        *    *    *

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

As reported in the Troubled Company Reporter on Sept. 26, 2006,
Fitch downgraded Freescale Semiconductor Inc.'s Issuer Default
Rating, senior unsecured notes, and senior unsecured bank credit
facility to 'BB+' from 'BBB-' following the company's
confirmation that it has entered into a definitive agreement to
be purchased by a consortium of private equity firms for
US$17.6 billion, the largest ever technology leveraged buy-out.


PETROLEO BRASILEIRO: Advancing Biodiesel Plants Construction
------------------------------------------------------------
Petroleo Brasileiro SA, the state-owned oil firm of Brazil, said in a
statement that it has agreed with biodiesel cooperatives to advance plans on
constructing biodiesel plants.

Petroleo Brasileiro told Business News Americas that it will work with the
agriculture cooperatives for the conclusion of technical and economic
feasibility studies for the plants costing BRL100 million each.  The
cooperatives include:

         -- Biopampa,
         -- Cooperbio, and
         -- Frigorifico Mercosul.

According to local press, two plants will be constructed.

BNamericas relates that Petroleo Brasileiro signed accords with the
cooperatives in May to conduct initial studies.  The agreement with
Cooperbio includes ethanol production.

Petroleo Brasileiro told BNamericas that some 80,000 small farmers in the
state would produce the oilseeds for biodiesel production.

BNamericas states that Petroleo Brasileiro wants to make sure that the
supply of biodiesel would meet legal admixture requirement of 2% from 2008
onward and 5% from 2013.

BR Distribuidora, the retail arm of Petroleo Brasileiro, will buy production
from the plants, BNamericas reports.

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

                        *    *    *

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

                        *    *    *

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

  Maturity Date           Amount        Rate       Ratings

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

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




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


ALTERNATIVE VENTURES: Final Shareholders Meeting Is on Nov. 9
-------------------------------------------------------------
Alternative Ventures Ltd.'s final shareholders meeting will be at 10:00 a.m.
on Nov. 9, 2006, at:

          Close Brothers (Cayman) Limited
          4th Floor Harbour Place, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


GLOBAL VENTURES: Liquidator Presents Wind Up Accounts on Nov. 9
---------------------------------------------------------------
Global Ventures Investments Ltd.'s final shareholders meeting will be at
10:00 a.m. on Nov. 9, 2006, at:

          Close Brothers (Cayman) Limited
          4th Floor Harbour Place, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


MOLVO: Invites Shareholders for a Final Meeting on Nov. 9
---------------------------------------------------------
Molvo's final shareholders meeting will be at 10:00 a.m. on
Nov. 9, 2006, at:

          Close Brothers (Cayman) Limited
          4th Floor Harbour Place, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


MUTUAL FUND (2): Last Day to File Proofs of Claim Is on Nov. 13
---------------------------------------------------------------
Mutual Fund Basket Master Fund (2)'s creditors are required to submit proofs
of claim by Nov. 13, 2006, to the company's liquidator:

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

Creditors who are not able to comply with the Nov. 13 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Mutual Fund's shareholders agreed on Aug. 30, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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


MUTUAL FUND (4): Creditors Must File Proofs of Claim by Nov. 13
---------------------------------------------------------------
Mutual Fund Basket Master Fund (4)'s creditors are required to submit proofs
of claim by Nov. 13, 2006, to the company's liquidator:

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

Creditors who are not able to comply with the Nov. 13 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Mutual Fund's shareholders agreed on Aug. 30, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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


MUTUAL FUND (8-GLOBAL): Proofs of Claims Filing Is Until Nov. 13
----------------------------------------------------------------
Mutual Fund Basket Master Fund (8-Global Focus)'s creditors are required to
submit proofs of claim by Nov. 13, 2006, to the company's liquidator:

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

Creditors who are not able to comply with the Nov. 13 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Mutual Fund's shareholders agreed on Aug. 30, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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


MUTUAL FUND (8-PACIFIC): Proofs of Claim Filing Ends by Nov. 13
---------------------------------------------------------------
Mutual Fund Basket Master Fund (8-Pacific Focus)'s creditors are required to
submit proofs of claim by Nov. 13, 2006, to the company's liquidator:

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

Creditors who are not able to comply with the Nov. 13 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Mutual Fund's shareholders agreed on Aug. 30, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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


SAPIC 98 (22): Proofs of Claim Filing Deadline Is on Nov. 13
------------------------------------------------------------
Sapic 98 Reference Fund (22) Ltd.'s creditors are required to submit proofs
of claim by Nov. 13, 2006, to the company's liquidator:

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

Creditors who are not able to comply with the Nov. 13 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sapic 98's shareholders agreed on Sept. 26, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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


SAPIC 98 (31): Creditors Must Submit Proofs of Claim by Nov. 13
---------------------------------------------------------------
Sapic 98 Reference Fund (31) Ltd.'s creditors are required to submit proofs
of claim by Nov. 13, 2006, to the company's liquidator:

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

Creditors who are not able to comply with the Nov. 13 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sapic 98's shareholders agreed on Sept. 26, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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


SAPIC 98 (36): Last Day for Filing of Proofs of Claim Is Nov. 13
----------------------------------------------------------------
Sapic 98 Reference Fund (36) Ltd.'s creditors are required to submit proofs
of claim by Nov. 13, 2006, to the company's liquidator:

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

Creditors who are not able to comply with the Nov. 13 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sapic 98's shareholders agreed on Sept. 26, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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


SAPIC 98 (B-I): Deadline for Proofs of Claim Filing Is Nov. 13
--------------------------------------------------------------
Sapic 98 Reference Fund (B-I) Ltd.'s creditors are required to submit proofs
of claim by Nov. 13, 2006, to the company's liquidator:

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

Creditors who are not able to comply with the Nov. 13 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sapic 98's shareholders agreed on Sept. 26, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

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


SILICON MAGNETIC: Shareholders Gather for Last Meeting on Nov. 9
----------------------------------------------------------------
Silicon Magnetic Systems (Cayman) Ltd.'s final shareholders meeting will be
at 10:00 a.m. on Nov. 9, 2006, at:

          Close Brothers (Cayman) Limited
          4th Floor Harbour Place, George Town
          Grand Cayman, Cayman Islands

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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




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


AES CORP: Files US$40-Million Lawsuit Against Alstom in Delaware
----------------------------------------------------------------
AES Corp. is seeking US$40 million from Alstom SA, a French firm, in a trial
of a warranty dispute that started in a federal court in Delaware on Monday,
Bloomberg News reports.

Bloomberg notes that a unit of AES Corp. filed a lawsuit against
Alstom Power Inc. in 2004, claiming that the latter breached
contract over corrosion in pollution-control systems at an
US$800 million coal-fired power plant in Guyama, Puerto Rico.

The report says that Dane H. Butswinkas, the legal representative of AES
Corp., told the jurors on Monday that parts of the 454-megawatt plant, which
uses steam to generate electricity, rusted to bits in a year after it
started operating in 2002.

Meanwhile, John Anthony Wolf, Alstom's attorney, said that AES
Corp. failed to maintain and run the equipment properly and that
AES Corp. is seeking exaggerated damages for problems that were
self-inflicted, Bloomberg relates.

Dane H. Butswinkas can be reached at:

            Williams & Connolly LLP
            725 Twelfth St., N.W.
            Washington, DC 20005
            Phone: 202-434-5110
            Fax: 202-434-5029
            E-mail: dbutswinkas@wc.com

John Anthony Wolf can be reached at:

            Ober Kaler
            120 East Baltimore Street
            Suite 800
            Baltimore, MD 21202-1643
            Phone: (410) 347-7346
            Fax: (410) 230-7272

AES Corp. -- http://www.aes.com-- and its subsidiaries
engage in the generation and distribution of electric power.  It
generates power for sale to utilities and other wholesale
customers, as well as operates utilities that distribute power to retail,
commercial, industrial, and governmental customers through integrated
transmission and distribution systems.  The company operates through three
segments: Contract Generation, Competitive Supply, and Regulated Utilities

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

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 16, 2006,
Moody's Investors Service affirmed its B1 Corporate Family Rating for AES
Corp. in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating
methodology.  Additionally, Moody's revised its probability-of-
default ratings and assigned loss-given-default ratings on the
company's loans and bond debt obligations including the B1 rating on its
senior unsecured notes 7.75% due 2014, which was also given an LGD4
loss-given default rating, suggesting noteholders will experience a 55% loss
in the event of a default.




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


BANCOLOMBIA SA: Names Olga Botero VP of Information Technology
--------------------------------------------------------------
Bancolombia S.A.'s board of directors accepted the resignation of Jorge Ivan
Toro Villegas as Vice President of Information Technology and thanked him
for his valuable work at Conavi and Bancolombia during his 32 years of
service.  To replace him, the Board appointed Olga Botero Pelaez, who will
take office as Vice President of Information Technology once authorized by
the Superintendency of Finance of Colombia.

Olga Botero is an engineer and has both a bachelor degree and a masters
degree in Computer Science from Iowa State University.  She has held
different positions in companies including Hewlett Packard, Suramericana de
Seguros S.A., Mecosoft and Orbitel. During her 7 years at Orbitel, she held
several positions, including Marketing Operations Manager, Customer Services
Manager and National Sales Manager.  She has also been a professor at
universities including Eafit, Universidad Javeriana and Universidad de la
Sabana.

                        *    *    *

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

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


BANCOLOMBIA: Unit Authorizes Issue of COP800-Billion in Bonds
-------------------------------------------------------------
Sufinanciamiento, Bancolombia's auto financing unit, said in a filing with
Superfinanciera, the local financial regulator, that it has authorized the
issue of up to COP800 billion in bonds.

Bancolombia purchased Sufinanciamiento for COP75 billion in December 2003,
Business News Americas reports.

                        *    *    *

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

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


ECOPETROL: Five Lawmakers Support Sale of 20% Stake
---------------------------------------------------
Five lawmakers have presented written opinions in favor of the sale of 20%
stake in Ecopetrol, the state-owned oil company of Colombia, Portafolio
reports.

Business News Americas names these lawmakers:

          -- Senator William Montes,
          -- Senator Miguel de la Espriella,
          -- Senator Arturo Char,
          -- Senator Alvaro Araujo, and
          -- Representative Bladimiro Cuello.

According to BNamericas, the five lawmakers have been discussing with the
executive branch, which is directing the sales process.

However, the lawmakers warned that the Ecopetrol stake must be sold to
private individual investors and that the government must keep the remaining
80% stake in the company, BNamericas notes.

BNamericas underscores that the lawmakers want to make sure that an ample
number of Colombian citizens are able to purchase shares in Ecopetrol.

Luis Ferney Moreno, the energy and mining law department director at
Bogota's Externado university, told BNamericas, "That is the mechanism I
would choose: an association between the state and the individual investors.
We have experience doing this."

Interconexion Electrica SA, the state-controlled transmission firm of
Colombia, went through a similar process, with individual investors given
chance to purchase stakes in the company, BNamericas states.

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

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


PETROLEOS DE VENEZUELA: Eyes Colombian Gov.'s Stake in Ecogas
-------------------------------------------------------------
Petroleos de Venezuela SA, the state-owned oil firm of Venezuela, has
expressed interest in bidding for the Colombian government's stake in
Ecogas, Hernan Martinez, the mining and energy minister of Colombia, told
reporters.

Business News Americas relates that Minister Martinez said that five firms
have expressed interest in Ecogas.  Three of those firms are:

          -- Petroleos de Venezuela,
          -- Promigas, and
          -- Enbridge.

According to BNamericas, the six AFP pension fund managers of Colombia lost
the previous tender for the 97.2% Ecogas stake, after their COP1.97-trillion
offer dropped below the 90% minimum price the Colombian government set.

The Colombian government will sell the shares on Nov. 24, 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.


* COLOMBIA: U'wa Nation Rejects Ecopetrol's Oil Project
-------------------------------------------------------
The U'wa nation has rejected a call from the Colombian government to
participate in a "prior consultation" about the Siriri/Catleya oil project
on their cloud forest homelands.  The tribe wants the project cancelled.

In recent talks with the government, U'wa presented colonial land titles
that they claim uphold their sub-surface rights to their ancestral lands.
This announcement is expected to further delay attempts by Ecopetrol,
Colombia's state-owned oil company, to move ahead with the project.

"We have decided not to permit petroleum activities on our sacred territory,
Kera Chikara, and therefore, we believe that prior consultation as currently
being applied by the Colombian Government limits our right to veto," the
U'wa High Council declared in a position statement.

The U'wa's historic legal documents, dating back to the 18th and 19th
Centuries, strike at the heart of the claims by the Colombian government
that the rights to all sub-surface resources in national territory belong to
the State.  In the past, both the Colombian Council of State and Supreme
Court have repeatedly upheld the colonial law.

The news emerged following a recent meeting between the U'wa, Ecopetrol and
government representatives.  More than 500 U'wa gathered to unanimously tell
the officials that they would not participate in the consultation.

Prior consultation is a statutory requirement in Colombia for any
infrastructure project that might adversely affect the territories of
indigenous communities.  It does not incorporate the right to Free, Prior,
and Informed Consent, the global benchmark human rights standard that would
allow the tribal authority to reject a damaging project.  U'wa, one of the
most traditional indigenous communities in South America, believe oil
drilling would devastate their environment, culture, and way of life.

The government delegation also received a report by Stanford Professor Terry
Lynn Karl, an expert in the "resource curse", that outlined how the project
would devastate the lands and livelihoods of U'wa people, have negative
environmental impacts, cause social and economic problems, and provoke
increased violence.

                        *    *    *

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




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


ARMSTRONG WORLD: Reports Distribution Amount for Class 6 Claims
---------------------------------------------------------------
Armstrong World Industries Inc. disclosed the amount of the initial
distributions it expects to make to general unsecured creditors under its
Chapter 11 plan.  Specifically, distributions to holders of allowed
unsecured claims falling in Class 6 will commence on Oct. 17, 2006, pursuant
to its Court-approved "Fourth Amended Plan of Reorganization, as Modified,"
dated Feb. 21, 2006.

The Company says that per US$10,000 of the Class 6 claims, an initial
distribution of 116 Common Shares of reorganized Armstrong World Industries
and approximately US$2,435 in cash are expected.  The initial distributions
exclude approximately US$11 million of cash and 538,000 shares that are
reserved from distribution due to disputed unsecured claims in Class 6.  A
total of 19,418,520 shares and approximately US$407 million of cash will be
distributed to creditors in Class 6 under the Plan.

Separately, in discharge of all of its present and future asbestos-related
personal injury claims, on October 2 the Company issued under the Plan
36,981,480 Common Shares to the Armstrong World Industries, Inc., Asbestos
Personal Injury Settlement Trust and by October 17 will distribute to the
Trust approximately US$738 million in cash, representing the portion of cash
distributions to which the Trust is entitled under the Plan.  All present
and future asbestos-related personal injury claims must be asserted against,
and will be resolved by, the Trust, and such claims may not be asserted
against the Company.

Under the Plan, payments to unsecured creditors having allowed claims of
US$10,000 or less (or who have reduced their claims to US$10,000) began on
October 2.  The creditors receive distributions entirely in cash in an
amount equal to approximately 75% of their allowed claims.

The cash amount to be distributed to Class 6 creditors and the Trust
includes "Available Cash" as defined in the Plan and
US$775 million of the cash proceeds expected from US$800 million of term
loans that the Company is arranging in lieu of issuing notes under the Plan.
The term loans are in addition to a US$300 million revolving credit facility
already established, which is currently undrawn and will be available to
support the Company's ongoing liquidity needs.

The Company also disclosed that its Common Shares have been approved for
listing on the New York Stock Exchange under the ticker symbol "AWI."
Trading on the NYSE is expected to commence on a "when issued" basis, and
"regular way" trading is anticipated to begin on a date to be announced by
the New York Stock Exchange.

"We are pleased to return to the New York Stock Exchange, where Armstrong
first began trading on July 17, 1935," F. Nicholas Grasberger III, senior
vice president and chief financial officer, said.  "This is the renewal of a
long and rewarding relationship between Armstrong and the NYSE."

"We are pleased to welcome back Armstrong World Industries to our family of
NYSE-listed companies, resuming our 70-plus year partnership with the
company," John A. Thain, NYSE Group, Inc. chief executive officer, said.
"We look forward to serving Armstrong World Industries and its shareholders,
and providing the company with superior market quality and brand
visibility."

Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc. --
http://www.armstrong.com/-- the major operating subsidiary of Armstrong
Holdings, Inc., designs, manufactures and sells interior floor coverings and
ceiling systems, around the world.  The company has operation in Colombia,
Costa Rica, Greece Iceland and Asia among others.

The Company and its affiliates filed for chapter 11 protection on December
6, 2000 (Bankr. Del. Case No. 00-04469). Stephen Karotkin, Esq., at Weil,
Gotshal & Manges LLP, and Russell C. Silberglied, Esq., at Richards, Layton
& Finger, P.A., represent the Debtors in their restructuring efforts.  The
Company and its affiliates tapped the Feinberg Group for analysis,
evaluation, and treatment of personal injury asbestos claims.

Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and O'Connor, and
Robert Drain, Esq., Andrew Rosenberg, Esq., and Alexander Rohan, Esq., at
Paul, Weiss, Rifkind, Wharton & Garrison, represent the Official Committee
of Unsecured Creditors. The Creditors Committee tapped Houlihan Lokey for
financial and investment advice.  The Official Committee of Asbestos
Personal Injury Claimant hired Ashby & Geddes as counsel.

The Bankruptcy Court confirmed AWI's plan on Nov. 18, 2003.  The District
Court Judge Robreno confirmed AWI's Modified Plan on Aug. 14, 2006.  The
Clerk entered the formal written confirmation order on Aug. 18, 2006.  The
Company's "Fourth Amended Plan of Reorganization, as Modified," has become
effective and AWI has emerged from Chapter 11.  (Armstrong Bankruptcy News,
Issue No. 103; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 9, 2006
Standard & Poor's Ratings Services raised its corporate credit rating on
Armstrong World Industries Inc. to 'BB' from 'D', following the Company's
emergence from bankruptcy on Oct. 2, 2006.  S&P said the outlook is stable.


ARMSTRONG WORLD: Registers 5,349,000 Common Shares
--------------------------------------------------
Walter T. Gangl, Deputy General Counsel and Assistant Secretary of Armstrong
World Industries, Inc., discloses in a regulatory filing with the U.S.
Securities and Exchange Commission that the Company has registered 5,349,000
shares of common stock to be issued to officers and key employees in
accordance with its 2006 Long-Term Incentive Plan.

The maximum offering price for each share is US$35, for an aggregate
offering price of US$187,215,000.

The Company paid a US$20,032 registration fee.

Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc. --
http://www.armstrong.com/-- the major operating subsidiary of Armstrong
Holdings, Inc., designs, manufactures and sells interior floor coverings and
ceiling systems, around the world.  The company has operation in Colombia,
Costa Rica, Greece Iceland and Asia among others.

The Company and its affiliates filed for chapter 11 protection on December
6, 2000 (Bankr. Del. Case No. 00-04469). Stephen Karotkin, Esq., at Weil,
Gotshal & Manges LLP, and Russell C. Silberglied, Esq., at Richards, Layton
& Finger, P.A., represent the Debtors in their restructuring efforts.  The
Company and its affiliates tapped the Feinberg Group for analysis,
evaluation, and treatment of personal injury asbestos claims.

Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and O'Connor, and
Robert Drain, Esq., Andrew Rosenberg, Esq., and Alexander Rohan, Esq., at
Paul, Weiss, Rifkind, Wharton & Garrison, represent the Official Committee
of Unsecured Creditors. The Creditors Committee tapped Houlihan Lokey for
financial and investment advice.  The Official Committee of Asbestos
Personal Injury Claimant hired Ashby & Geddes as counsel.

The Bankruptcy Court confirmed AWI's plan on Nov. 18, 2003.  The District
Court Judge Robreno confirmed AWI's Modified Plan on Aug. 14, 2006.  The
Clerk entered the formal written confirmation order on Aug. 18, 2006.  The
Company's "Fourth Amended Plan of Reorganization, as Modified," has become
effective and AWI has emerged from Chapter 11.  (Armstrong Bankruptcy News,
Issue No. 103; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 9, 2006 Standard &
Poor's Ratings Services raised its corporate credit rating on Armstrong
World Industries Inc. to 'BB' from 'D', following the Company's emergence
from bankruptcy on
Oct. 2, 2006.  S&P said the outlook is stable.




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


DOLE FOOD: Creating Worker Program for Honduran Banana Workers
--------------------------------------------------------------
Dole Food Company, Inc., disclosed that Standard Fruit de Honduras, S.A. has
reached an agreement with the Government of Honduras and representatives of
Honduran banana workers.  This agreement establishes a Worker Program that
is intended by the parties to resolve in a fair and equitable manner the
claims of male banana workers alleging sterility as a result of exposure to
the agricultural chemical DBCP. While Dole believes there is no reliable
scientific basis for alleged injuries from the agricultural field
application of DBCP, the company has continued to seek reasonable resolution
of the pending claims.  The Program will not have a material effect on
Dole's financial condition or results of operations.

Michael Carter, Dole's Executive Vice President, General Counsel and
Corporate Secretary said, "The Honduran Worker Program reflects Dole's
continued efforts to resolve DBCP claims worldwide.  It is good for the
community and good for the company.  This agreement was only reached after a
tremendous effort by all interested parties.  Dole has consistently
demonstrated its willingness to compensate those workers who meet minimum
criteria, consistent with reliable science, in an effort to resolve disputed
claims."  Mr. Carter also commented that, "As in Honduras, Dole is committed
in finding a prompt resolution to the DBCP claims in Nicaragua, and is
prepared to pursue a structured worker program with science-based criteria."

                     About Dole Food Co.

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

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Sept. 28, 2006, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the US Consumer Products,
Beverage, Toy, Natural Product Processors, Packaged Food
Processors, and Agricultural Cooperative sectors, the rating
agency confirmed its Ba3 Corporate Family Rating for Dole Food
Co., Inc.

Additionally, Moody's revised or confirmed its probability-of-
default ratings and assigned loss-given-default ratings on these
loans facilities:

   Issuer: Dole Food Company, Inc.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Gtd. Sr. Sec.
Term Loan B Due 2013      Ba3      Ba2     LGD2       20%

Gtd. Sr. Sec.
Letter of Credit
Due 2013                  Ba3      Ba2     LGD2       20%

Gtd. Global Notes
Due 2010                  B3       B3      LGD5       77%

Global Notes Due 2009     B3       B3      LGD5       77%

Gtd. Global Bonds
Due 2011                  B3       B3      LGD5       77%

Debentures Due 2013       B3       B3      LGD5       77%

   Issuer: Solvest Ltd.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Gtd. Sr. Sec.
Term Loan C Due 2013      Ba3      Ba2     LGD2       20%

Gtd. Sr. Sec.
Letter of Credit
Due 2013                  Ba3      Ba2     LGD2       20%




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


AIR JAMAICA: Cabinet Rejects Airline's New Business Plan
--------------------------------------------------------
The Jamaican government's Cabinet did not approve Air Jamaica's proposed new
business plan, the Jamaica Observer reports.

Donald Buchanan -- the newly installed minister of information and
development -- told The Observer that after reviewing the plan submitted by
OK Melhado -- Air Jamaica's chairperson -- and Michael Conway, the airline's
chief executive officer, against the background of Air Jamaica's financial
situation, the cabinet felt that there was a need for additional and better
particulars about the plan.

The Observer underscores that the losses of Air Jamaica were estimated at
US$85 million in June 2006.  No official confirmation of the figure was
disclosed and there was no further report on the losses.

Air Jamaica sources told The Observer that for 2005, the firm lost about
US$163 million, which is about US$46 million more than what Dr. Vin
Lawrence, the former chairperson of Air Jamaica, forecasted.

According to The Observer, the losses led to a decrease in value-added
services in Air Jamaica -- like regular meals on flights --that then cost
the airline its attractiveness to some Jamaican travelers.

Air Jamaica is expected to lose about US$175 million in 2006, causing
concerns about whether the Jamaican government should continue financing the
company's big appetite for funds, The Observer notes.

After extensive deliberations, the cabinet referred the plan to its standing
sub-committee that monitors the airline, reports says, citing Mr. Buchanan.

The Observer reports that Dr. Omar Davies, the minister of finance and
planning, heads the sub-committee, which also includes Robert Pickersgill,
the minister of transport.

The Observer underscores that a cabinet meeting slated for next Monday was
postponed, as the standing sub-committee will meet with Air Jamaica's
management on that day to review the plan.

Mr. Buchanan told reporters, "Therefore, we decided that the standing
cabinet sub-committee should have further meetings with the Air Jamaica team
on Monday of next week and then, on Wednesday of next week, the Cabinet will
receive a report from the standing committee and, at that time, we hope to
make the necessary decisions as to the way forward with Air Jamaica."

"You could say that the plan provides for various options about how you go
forward, and they are coming to the table with a long-term debt factor that
is out there, and certainly they will be putting proposals forward as to how
you address this.  But, as I said before, there are options," The Observer
notes, citing Mr. Buchanan.

Mr. Buchanan did not tell The Observer any details of the plan or what was
discussed.  He said that after next Wednesday's cabinet meeting he would
have another briefing, at which time he would reveal the details as well as
the cabinet's response.

However, Mr. Buchanan admitted that it included options to deal with Air
Jamaica's precarious debt, The Observer says.

"Anything more that I say now will be premature," Mr. Buchanan told The
Observer.

                        *    *    *

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.


NATIONAL WATER: Cuts Losses to US$677 Million in 2006
-----------------------------------------------------
The National Water Commission of Jamaica said in its 2004/2005 annual report
that its losses decreased to US$677 million in 2006, from US$5.1 billion in
2005.

Radio Jamaica relates that the decline in the National Water's losses was
due to a 23% increase in 2006 revenues, compared with the revenues in 2005.
Expenses were also contained at 13%.

According to Radio Jamaica, other income of the National Water
-- including inflows from investment activities and amortization of capital
gains -- increased by 102% in 2006, compared with 2005.

The National Water's collections increased 12% to US$6.7 billion this year,
compared with 2003/2004, Radio Jamaica reports.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 7, 2006, the National
Water Commission of Jamaica had been criticized for failing to act promptly
in cutting its losses.  For the fiscal years 2002 and 2003, the water
commission accumulated a net loss of US$2.11 billion.  The deficit fell to
US$1.86 billion the following year, and to US$670 million in 2004 and 2005.




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


ALLIS-CHALMERS ENERGY: Buys Petro Rentals for US$29.8MM in Cash
---------------------------------------------------------------
Allis-Chalmers Energy Inc. acquired Petro Rentals, Inc., based in Broussard,
Louisiana, for approximately US$29.8 million in cash, including the payment
of approximately US$9.5 million of debt, and 246,761 shares of the Company's
common stock.

The Company says that the acquisition was funded with cash on hand remaining
from its recent equity and debt securities offerings.  Based on Petro
Rentals' unaudited financial statements, its EBITDA for the eight-month
period ended
Aug. 31, 2006 was approximately US$4.9 million.

Micki Hidayatallah, chairman and chief executive officer, stated, "The
acquisition of Petro Rentals helps us to realize one of our primary
objectives of creating a better balance between our drilling-related and
production-rental activities.  We expect Petro Rentals' coiled tubing
division to complement our Production Services segment, which already had
two coiled tubing units before this acquisition.  With the Petro Rentals
acquisition and the additional coiled tubing units on order, we expect to
have a total of eight coiled tubing units and 14 capillary tubing units by
Dec. 31.  With a projected utilization rate of 50%, we are very optimistic
about this portfolio of coiled and capillary tubing units contributing
significantly to our financial performance.  With current estimates of
capital expenditures by the E&P companies increasing in 2007 at a rate
greater than 15% we feel that Petro Rentals will sustain its EBITDA run rate
and through efficient utilization of the new coiled tubing units should
increase its EBITDA contribution to Allis-Chalmers Energy to over US$11
million."

                    About Petro Rentals

Based in Broussard, Louisiana, Petro Rentals, Inc., provides a variety of
rental tools and equipment and services that are vital throughout the life
of a well, from drilling through plugging and abandonment, with an emphasis
on production related equipment and services.  With division offices in
Broussard, Houma and Arcadia, Louisiana and Alvin, Texas, Petro Rentals
serves both onshore and offshore markets.

                  About Allis-Chalmers Energy

Based in Houston, Texas, Allis-Chalmers Energy Inc. (AMEX: ALY)
-- http://www.alchenergy.com/-- provides oilfield services and equipment to
the oil and gas exploration and development companies primarily in Texas,
Louisiana, New Mexico, Colorado, and Oklahoma; offshore in the United States
Gulf of Mexico; and offshore and onshore in Mexico.  The company offers
directional drilling, compressed air drilling, casing and tubing, rental
tools, and production services.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 27, 2006, Moody's
Investors Service in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology for the
oilfield service and refining and marketing sector, confirmed its B3
Corporate Family Rating for Allis-Chalmers Energy Inc.

Moody's also affirmed its B3 rating on the company's 9% Senior Unsecured
Guaranteed Global Notes Due 2014, and assigned the debentures an LGD4 rating
suggesting a projected loss-given default of 54%.

As reported in the Troubled Company Reporter on July 31, 2006, Standard &
Poor's Ratings Services affirmed its 'B-' rating on Allis-Chalmers Energy
Inc.'s proposed US$80 million senior notes issuance due 2014.  The notes are
being offered as additional notes under the indenture to which the company
issued US$160 million of notes in January 2006.

At the same time, Standard & Poor's affirmed the 'B-' corporate credit
rating on the company.  S&P said the outlook is stable.


BALLY TOTAL: Holding Annual Shareholders Meeting on Dec. 19
-----------------------------------------------------------
Bally Total Fitness Holding Corp. will hold its annual meeting of
shareholders on Dec. 19, 2006, at 9:00 a.m., Central Time, at:

          Renaissance Hotel
          8500 W. Bryn Mawr Avenue
          Chicago, Illinois

Bally total also disclosed record dates for its 2006 annual meeting of
shareholders.  Bally shareholders of record on the close of business on Nov.
13, 2006, will be entitled to notice of the annual meeting and to vote upon
matters considered at the meeting.

Bally will send a definitive proxy statement to shareholders of record
containing important information about the meeting and the matters to be
considered.  Shareholders are urged to read the proxy statement when it
becomes available.

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

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

                        *    *    *

Moody's Investors Service confirmed its Caa1 Corporate Family
Rating for Bally Total Fitness Holding Corp.


BALLY TOTAL: Board Reduces Number of Directors from Nine to Six
---------------------------------------------------------------
Bally Total Fitness Holding Corp.'s board of directors reduced on Oct. 22,
2006, the number of current directors from nine to six.

In addition, the Board also determined not to nominate Steven S. Rogers for
re-election as a director when his term expires at the annual meeting on
Dec. 19, 2006.  Accordingly, as Mr. Rogers is the only director in Class I,
the Board voted to move Interim Chairman Don R. Kornstein from Class III to
Class I so the Board consists of as close to an equal number of directors in
each class, as is practical, and determined to nominate him for reelection
to Class I of the Board for a new three-year term at the annual meeting.
The Board also voted to reduce the size of the Board from six to five
effective upon the annual meeting, at which time the Class I directorship
currently held by Mr. Rogers will be eliminated.

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

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

                        *    *    *

Moody's Investors Service confirmed its Caa1 Corporate Family
Rating for Bally Total Fitness Holding Corp.


CLIENTLOGIC CORP: Inks Merger Deal with SITEL
---------------------------------------------
ClientLogic and SITEL have entered into a definitive merger agreement.
Under the terms of the agreement, a newly formed subsidiary of ClientLogic
will merge with SITEL and pay US$4.05 per share in cash for all of the
outstanding common stock of SITEL.

The Board of Directors of each company has unanimously approved the
transaction.  The transaction is expected to be completed in the first
quarter of 2007 and is subject to customary closing conditions, including
approval of SITEL's shareholders and regulatory clearances.

SITEL's Board of Directors has recommended to SITEL's shareholders that they
vote in favor of the transaction.  Approximately 19.9% of the outstanding
common stock of SITEL is subject to voting agreements which require such
shares to be voted in favor of the merger.

SITEL has agreed to pay a termination fee to ClientLogic should the
transaction not close due to certain circumstances. ClientLogic will fund
the transaction with the proceeds of a committed loan facility.

The transaction values SITEL at approximately US$450 million.  Commenting on
the pending transaction, Jim Lynch, Chairman and CEO of SITEL Corporation,
said, "Our board and our financial advisor Citigroup reviewed numerous
opportunities while searching for strategic alternatives that would create
the greatest value for our shareholders.  Based on this review, it was clear
to SITEL's board that the offer from ClientLogic represents the best
alternative to create significant shareholder value."  The US$4.05 to be
paid in cash in the merger for each SITEL share represents a 33% premium to
the volume-weighted average SITEL share price for the 30-trading day period
ending October 11.

The combined entity will continue to be named ClientLogic Corporation, and
will have approximately 65,000 employees across 28 countries. Dave Garner
will be Chief Executive Officer of the combined entity.

"Growing market demand for bigger, more complex customer-care BPO solutions
requires larger service providers with increased geographic presence,
capacity and service capabilities", said Dave Garner, President and CEO of
ClientLogic.  "Our mission will be to deliver the BPO industry's
highest-quality services, while providing our clients with the strategic
insight, scale and diversity of offerings to guarantee success."

The combination of ClientLogic and SITEL will create a company with revenue
of over US$1.7 billion, and one of the most diverse client bases, service
offerings, and geographic footprint in the industry.  The combined entity
will offer clients world-class options for onshore, nearshore and offshore
customer care solutions, in over 145 facilities throughout the Americas,
EMEA and Asia Pacific.

Citigroup Global Capital Markets is acting as financial advisor to SITEL and
has provided a fairness opinion in connection with the transaction.  Davis
Polk & Wardwell and Faegre & Benson are acting as legal counsel to SITEL in
connection with the transaction.  Goldman, Sachs & Co. is acting as
financial advisor to ClientLogic. Mayer, Brown, Rowe & Maw LLP and
Oppenheimer Wolff & Donnelly LLP are acting as legal counsel to ClientLogic
in connection with the transaction.

                       About SITEL Corp

SITEL -- http://www.sitel.com/-- provides outsourced customer support
services.  SITEL designs and improves customer contact models across its
clients' customer acquisition, retention, and development cycles.  SITEL has
over 42,000 employees in 101 global contact centers located in 26 countries.

                      About ClientLogic

ClientLogic Corp. -- http://www.clientlogic.com/-- is a business process
outsourcing provider in the customer care and back office processing
industries.  ClientLogic's footprint spans 49 facilities in 13 countries:
Austria, Canada, France, Germany, India, Ireland, Mexico, Morocco,
Netherlands, Panama, Philippines, United Kingdom and the United States.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 23, 2006, Standard &
Poor's Rating Services placed its 'B' corporate credit rating on Nashville,
Tennessee-based ClientLogic Corp. on CreditWatch with positive implications.


FORD MOTOR: Reports US$5.3B Net Loss for Third Quarter 2006
-----------------------------------------------------------
Ford Motor Co. reported preliminary third-quarter 2006 financial results.

In a separate announcement, Ford said it would restate financial results
from 2001 through the second quarter of 2006 to correct the accounting for
certain derivative transactions under Statement of Financial Accounting
Standards (SFAS) 133, Accounting for Derivative Instruments and Hedging
Activities.

These corrections are not reflected in the preliminary results for Ford's
2006 third quarter.  The company expects to finalize restatement amounts for
this and previous periods by the time it files its Quarterly Report on Form
10-Q for the quarter ended Sept. 30, 2006.  Financial statements pertaining
to the 2006 third quarter will be provided at that time.

              Summary of Preliminary Results

For the third quarter, Ford Motor reported a net loss of US$5.8 billion, or
US$3.08 per share.  This compares with a net loss of US$284 million, or 15
cents per share, in the 2005 third quarter.

Excluding special items, the third quarter loss from continuing operations
was US$1.2 billion, or 62 cents per share, compared with a loss of US$191
million, or 10 cents per share, a year earlier.

The performance from continuing operations primarily reflected operating
challenges in the company's North America, Asia Pacific and Africa, and
Premier Automotive Group operations.  Performance also included continued
profitability in South America and at Ford Credit. Though it lost money
during the quarter, Ford Europe showed a year-over-year improvement in
operating results and remained poised to deliver full-year profitability.

Special items included in the quarter's net loss primarily reflected the
costs associated with restructuring efforts, primarily in North America, as
well as the revaluation of long-lived assets related to automotive
operations in North America and Jaguar/Land Rover. On an after-tax basis,
special items reduced third-quarter earnings by a total of US$4.6 billion or
US$2.46 per share.  The total pre-tax effect of these special items was
US$5.3 billion.

In addition, effective this quarter, the company established a valuation
allowance of US$2.2 billion against deferred tax assets primarily at its
North America and Jaguar/Land Rover operations.  The valuation allowance was
established because of the cumulative losses the company has incurred and
the financial outlook for these operations.

Alan Mulally, Ford's president and chief executive officer, said he and his
senior management team are committed to creating a viable Ford Motor Company
business going forward.

"These business results are clearly unacceptable," Mulally said. "We are
committed to dealing decisively with the fundamental business reality that
customer demand is shifting to smaller, more efficient vehicles.  Our
focused priorities are to restructure aggressively to operate profitably at
lower volumes, and to accelerate the development of new, more efficient
vehicles that customers really want.

"We have great global assets and resources that we will leverage to
significantly improve our product strategy, our production efficiency and
quality.  This will enable us to meet customer expectations for distinctive
vehicles much more cost effectively.  These actions will lead to profitable
growth of our business over the long term."

                      Automotive Sector

On a pre-tax basis, worldwide Automotive sector losses in the third quarter
were US$1.8 billion.  This compares with a pre-tax loss of US$1.3 billion
during the same period a year ago.

Worldwide automotive sales for the third quarter declined to US$32.6 billion
from US$34.7 billion in the same period last year. Worldwide vehicle unit
sales in the quarter were 1,511,000, down from 1,531,000 a year ago.

                       North America

In the third quarter, Ford's North America automotive operations reported a
pre-tax loss of US$2.0 billion, compared with a pre-tax loss of US$1.2
billion a year ago.  The decline was largely attributed to lower volumes and
unfavorable mix, primarily associated with lower industry volume and lower
market share, and higher incentives. Cost reductions were a partial offset.
Sales were US$15.4 billion, down from US$18.2 billion for the same period a
year ago.

                      South America

Ford's South America automotive operations reported a third-quarter pre-tax
profit of US$222 million, an improvement from a pre-tax profit of US$96
million a year ago.  The improvement was primarily explained by higher
volume and favorable pricing.  Sales for the third quarter improved to
US$1.5 billion from US$1.2 billion in 2005.

                       Ford Europe

Ford Europe's third-quarter pre-tax loss was US$13 million compared with a
pre-tax loss of US$55 million during the 2005 period.  The improvement came
from higher vehicle sales, partially offset by higher pension-related costs,
lower profits from operations in Turkey and negative net pricing. During the
third quarter, Ford Europe's sales were US$7.3 billion, compared with US$6.4
billion during third quarter 2005.

                Premier Automotive Group (PAG)

PAG reported a pre-tax loss of US$593 million for the third quarter,
compared with a pre-tax loss of US$108 million for the same period in 2005.
The decline was explained by adverse cost performance, primarily reflecting
adjustments to Jaguar and Land Rover warranty accruals and lower volume at
all operations, excluding Aston Martin.  Improvements in overhead costs were
offset by increases in advertising.  Third-quarter sales for PAG were US$6.5
billion, compared with US$6.8 billion a year ago.

                   Asia Pacific and Africa

For the third quarter, Asia Pacific and Africa reported a pre-tax loss of
US$56 million, compared with a pre-tax profit of US$21 million a year ago.
The decline primarily reflected lower production and dealer inventories,
adverse mix, and higher incentives, partially offset by cost reductions.
Sales were US$1.6 billion, compared with US$1.9 billion in 2005.

                         Mazda

During the third quarter of 2006, Ford's share of Mazda pre-tax profits and
associated operations was US$40 million, compared with US$112 million during
the same period a year ago.  The decline primarily reflected the non-
recurrence of mark-to-market gains on Mazda convertible bonds during 2005,
which have now been entirely converted to equity.

                     Other Automotive

Third-quarter results included a pre-tax profit of US$553 million in Other
Automotive, compared with a loss of US$241 million a year ago. The
year-over-year improvement relates to tax-related interest and higher
portfolio returns.

                  Financial Services Sector

For the third quarter, the Financial Services sector earned a pre-tax profit
of US$448 million, compared with pre-tax profits of US$1.1 billion a year
ago.

                    Ford Motor Credit Co.

Ford Motor Credit reported net income of US$262 million in the third quarter
of 2006, down US$315 million from net income of US$577 million a year
earlier.  On a pre-tax basis from continuing operations, Ford Motor Credit
earned US$428 million in the third quarter, compared with US$901 million in
the previous year.  The decrease in earnings was attributed to lower
financing margins, higher depreciation expense and the impact of lower
average receivable levels.

                     Cash and Liquidity

The company ended the quarter with total cash, including automotive cash,
marketable securities, loaned securities and short-term Voluntary Employee
Beneficiary Association assets at Sept. 30, 2006 of US$23.6 billion,
unchanged from the end of the second quarter. The company's
operating-related cash flow was US$3.1 billion negative for the quarter.
During the quarter, US$3.0 billion was transferred out of long-term VEBA and
is now included in total cash.

Don Leclair, executive vice president and chief financial officer said, "As
we restructure our business we will continue to make investments in products
necessary to ensure Ford's future success. Throughout this period,
maintaining strong liquidity will continue to be a high priority."

                      About Ford Motor

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

                        *    *    *

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

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

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

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


FORD MOTOR CREDIT: Posts USUS$262MM Net Income in Third Quarter
---------------------------------------------------------------
Ford Motor Credit Co. reported preliminary financial results with third
quarter profits.  At the same time, Ford Motor Credit disclosed it plans to
restate previous financial results from 2001 through the second quarter of
2006 to correct the accounting for certain derivative transactions under the
Statement of Financial Accounting Standards (SFAS) 133, Accounting for
Derivative Instruments and Hedging Activities.

             Third Quarter Financial Results

Ford Motor Credit reported net income of US$262 million in the third quarter
of 2006, down US$315 million from earnings of US$577 million a year earlier.
On a pre-tax basis from continuing operations, Ford Motor Credit earned
US$428 million in the third quarter, compared with US$901 million in the
previous year.  The decrease in earnings primarily reflected lower financing
margins, higher depreciation expense and the impact of lower average
receivable levels.

"Our high-quality portfolio continues to perform very well, generating
profits and dividends for Ford Motor Company," said Mike Bannister, chairman
and CEO.  "Our recently announced North American restructuring along with
our efforts to reduce our costs globally will further enhance our
operational effectiveness."

On Sept. 30, Ford Motor Credit's on-balance sheet net receivables totaled
US$135 billion, compared with US$132 billion on Dec. 31, 2005.  Managed
receivables, which include on-balance sheet receivables and securitized
off-balance sheet receivables that we continue to service, were US$148
billion, compared with US$150 billion on Dec. 31, 2005.  Ford Motor Credit
paid cash dividends of US$300 million during the third quarter.

The correction to the accounting does not affect the economics of the
derivative transactions, or have any impact on the company's cash. However,
the restatements are expected to affect the preliminary financial results
Ford Motor Credit for its 2006 third quarter.  The company expects to
finalize restatement amounts for the current and all previous periods by the
time of the filing of its Quarterly Report on Form 10-Q for the quarter
ended Sept. 30, 2006.

The company discovered that since 2001, certain interest rate swaps Ford
Motor Credit Co. had entered into to hedge the interest rate risk inherent
in certain long-term fixed rate debt were accounted for incorrectly under
SFAS 133 because they did not satisfy the standard's technical accounting
rules to qualify for exemption from the more strict effectiveness testing
requirements.  Ford Motor Credit Co. uses transactions involving
derivatives, including swaps, forwards and options, to reduce economic risk
and volatility in a disciplined and defensive manner.
PricewaterhouseCoopers LLP, the company's independent registered public
accounting firm, audited Ford Motor Credit Company's 2001 through 2005
financial statements, which included a review of these swaps.

"We are very disappointed that we must restate our earnings," said Mr.
Bannister.  "We are committed to strong internal controls and reporting
transparency.  Our business fundamentals remain sound, and our operations
remain highly efficient and profitable."

Ford Motor Credit's interest rate swaps were entered into as part of its
asset-liability management strategy.  The swaps economically hedge the
interest rate risk associated with long-term debt issuances. Although the
final restatement amounts have not yet been determined, based on the
information to date, the company estimates that Ford Motor Credit's results
in 2002 will improve materially -- other periods are still under study.

                   About Ford Motor Credit

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.

                      About Ford Motor

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

                        *    *    *

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

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

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

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


FORD MOTOR: Restating 2001 Through 2006 Financial Results
---------------------------------------------------------
Ford Motor Co. plans to restate previous financial results from 2001 through
the second quarter of 2006 to correct the accounting for certain derivative
transactions under the Statement of Financial Accounting Standards or SFAS
133, Accounting for Derivative Instruments and Hedging Activities.

The correction to the accounting does not affect the economics of the
derivative transactions, nor have any impact on the company's cash.
However, the restatements are expected to affect the preliminary financial
results Ford disclosed for its 2006 third quarter.  The company expects to
finalize restatement amounts for the current period and all previous periods
by the time of the filing of its Quarterly Report on Form 10-Q for the
quarter ended Sept. 30, 2006.

Ford discovered that since 2001, certain interest rate swaps Ford Motor
Credit Company had entered into to hedge the interest rate risk inherent in
certain long-term fixed rate debt were accounted for incorrectly under SFAS
133 because they did not satisfy the standard's technical accounting rules
to qualify for exemption from the more strict effectiveness testing
requirements.  Ford Motor Credit Co. uses transactions involving
derivatives, including swaps, forwards and options, to reduce economic risk
and volatility in a disciplined and defensive manner.

PricewaterhouseCoopers LLP, the company's independent registered public
accounting firm, audited Ford's 2001 through 2005 financial statements,
which included a review of these swaps.

"This is a very complicated accounting standard, and interpretation of its
proper application has continued to evolve," said Executive Vice President
and Chief Financial Officer Don Leclair.  "Our overall hedging strategy is
sound.  We will correct our accounting for these types of derivative
instruments.  We remain committed to strong internal controls and reporting
transparency."

Ford Motor Credit Co.'s interest rate swaps were entered into as part of the
unit's asset-liability management strategy.  The swaps economically hedge
the interest rate risk associated with long-term debt issuances.  Although
the final restatement amounts have not yet been determined, the company
estimates, based on the information to date, that Ford and Ford Motor
Credit's results in 2002 will improve materially.  Other periods are still
under study.

                      About Ford Motor

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

                        *    *    *

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

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

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

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


FORD MOTOR: Moody's Says Weak Results Consistent with B3 Rating
---------------------------------------------------------------
Moody's Investors Service disclosed that Ford's very weak third
quarter performance, with automotive operations generating a
pre-tax loss of US$1.8 billion and a negative operating cash flow of US$3
billion, was consistent with the expectations which led to the Sept. 19
downgrade of the company's long-term rating to B3.

"Ford's rating at B3 anticipated further weakness in financial
results as indicated by the company's need to accelerate its
restructuring initiatives.  Nevertheless, Ford's outlook remains
negative." said Bruce Clark, senior vice president and lead auto
industry analyst at Moody's

"The key to Ford's Way Forward restructuring plan is to reduce
capacity by buying out 25,000 to 30,000 hourly employees and to
shift its product line toward cars and more fuel efficient
vehicles," Clark said

"The problem is that the financial benefits of the program don't
begin to kick in until 2009," he added.

"This means that even if things go according to plan, Ford will
likely burn through a significant amount of cash during 2006 and
2007.  The rate of cash consumption could improve in 2008, but cash flow
could still be negative in that year."

At September 30th, Ford had over US$23 billion in cash and
equivalents.  However, Ford needs several billion in cash to run
its day to day operations.  Consequently, the amount of funds
currently available to cover operating losses and restructuring
requirements is sizable, but it is not the full US$23 billion to
which Ford has access.

"If Ford hits its cost reduction, market share and new product
introduction objectives, the company's cash resources should be
adequate to cover uses through 2007," Clark said.

"But, things could start to get tight in 2008 if operating cash
flow is still negative. In fact, the company's liquidity position could
become stressed prior to 2008 if the operating environment is more difficult
than planned. This could happen if the economy slows, if there is any kind
of work stoppage associated with the 2007 UAW negotiations, or if the
already weak financial position of the supplier base erodes further."

The significant level of cash consumption that Ford will face
during 2007 and 2008, and the potential strain that this will
place on the company's liquidity contributed to Moody's September downgrade
of Ford's Speculative Grade Liquidity rating to SGL-3 from SGL-1.

Ford has reported its decision to consider accessing the secured
debt market in order to bolster its cash position.

"Given the extended time frame of the Way Forward restructuring
plan and the level of cash that may be required through 2008, it
will be important for Ford to increase its cash position in order to provide
an adequate liquidity cushion," Clark said.

"If Ford can't boost its liquidity through accessing the secured
debt market, through asset sales or through some other strategic
alternatives, there could be further pressure on its long-term and SGL
ratings."

Should Ford issue secured debt for the purpose of building
liquidity, there would likely be no adverse impact on the
company's B3 corporate family rating.  However, consistent with
the analytic framework contained in Moody's Probability of Default and Loss
Given Default Methodology dated August 2006, the rating of any secured
borrowings by Ford would likely be one or more notches higher than the B3
corporate family rating.  In contrast, the rating of the company's unsecured
obligations would be subject to a downgrade from current levels.

Ford reported that it would have to restate its quarterly and
annual financials back to 2001 due to errors in the application of "the
short-cut method" promulgated under Statement of Financial Accounting
Standard 133 in connection with the accounting for certain hedging
transactions.  As a result, Ford expects earnings for 2002 to improve
materially; the impact on years 2003 through 2006 has not yet been assessed.
The company also anticipates that there will be no cash impact and that the
necessary restatements for all years will be made in time to permit a timely
filing of its third quarter 10Q.

In a March 2006 Special Comment on SFAS 133 Moody's noted that
many recent restatements by other companies arising from SFAS 133 reflect
technical misinterpretations of the accounting rules which do not alter the
economic substance of the transactions.  On the matter of Ford's restatement
Clark said, "Moody's wouldn't view Ford's restatement as a negative credit
event as long as the company's auditors make no determination of a Material
Weakness with respect to Ford's ongoing hedge accounting, there is no delay
in the filing of the company's financial statements, and no other accounting
issues arise in conjunction with this restatement."


FORD MOTOR: S&P Places B-Rated Sr. Unsec. Debt on Negative Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' senior unsecured debt
issue ratings on Ford Motor Co. on CreditWatch with negative implications.

At the same time, S&P affirmed all other ratings on Ford, Ford
Motor Credit Co., and related entities, except the rating on Ford Motor Co.
Capital Trust II 6.5% cumulative convertible trust preferred securities,
which was lowered to 'CCC-' from 'CCC.'

The CreditWatch placement of the automaker's unsecured issues
reflects the potential for unsecured creditors to be disadvantaged if Ford
were to incur a material amount of secured borrowings.  Ford announced
Monday that it is considering a range of measures to help it fund operating
losses and restructuring plans while preserving cash and short-term VEBA
trust balances at or near current levels of about US$20 billion.  The Ford
announcement said these measures could include the negotiation of secured
credit facilities.

If this occurs, "The rating on Ford's senior unsecured debt could be lowered
by up to two notches below the corporate credit rating ('B')," said Standard
& Poor's credit analyst Robert Schulz, "reflecting the unsecured debt's
disadvantaged recovery prospects in the event of a bankruptcy by Ford."  We
will monitor ongoing developments and resolve the CreditWatch once Ford's
financing plans have been finalized.

The downgrade of Ford's Capital Trust II 6.5% cumulative
convertible trust preferred securities reflects S&P's view that,
in the wake of Ford's recent elimination of its common stock
dividend, the risk of a payment deferral by Ford on its trust
preferred securities is heightened, as the company seeks to
conserve liquidity in light of ongoing negative cash flows.  Ford itself has
not indicated any intention to defer dividends on its trust preferred
securities.  S&P would view such a deferral as a default on the issue, under
our rating definitions.

Separately, the ratings on Ford and related entities are not
immediately affected by the company's announcement that it will
delay release of financial statements for the third quarter of
2006 and restate results dating back to 2001.  The restatements
are required because accounting for certain derivatives used to
hedge interest rate risk at Ford Credit did not comply with
Statement of Financial Accounting Standards No. 133 on derivatives and
hedging activities.  Actual cash flow or the risk-management economics of
the derivative transactions are not affected by the restatements, and S&P
does not expect the delay or restatements to adversely affect Ford's or Ford
Credit's access to their unsecured bank credit lines.

However, S&P would reassess its views if the accounting
restatement process were to uncover additional issues or raise
broader concerns about the strength of Ford's internal controls or
risk-management practices, if additional restatements result in a prolonged
financial reporting delay, or if liquidity were to be adversely affected.

Ford's third-quarter financial results, excluding the effect of
the restatements, showed further deterioration in automotive
results, which S&P expects to continue through the end of 2006.
North American operations reported a US$2.0 billion loss in the
latest quarter, excluding US$3.7 billion in special items, compared with a
loss of US$1.2 billion in the third quarter of 2005.


FORD MOTOR: Fitch Puts Neg. Watch on B+ Rated Senior Unsec. Debt
----------------------------------------------------------------
Fitch Ratings has placed Ford Motor Company's 'B+/RR3' senior
unsecured debt on Rating Watch Negative reflecting Ford's intent
to raise secured financing that would impair the position of
unsecured debtholders.  Under Fitch's recovery rating scenario it was
estimated that unsecured holders would recover approximately 68% in a
bankruptcy scenario, equating to a Recovery Rating of 'RR3' (50-70%
recovery).

Fitch will review the size, structure and collateral of the
secured financing facility to determine the effect on outstanding unsecured
debt.  Fitch's Issuer Default Ratings of 'B' for both Ford and Ford Motor
Credit Company are unaffected at this time, but could be reviewed if
accounting issues prevent the timely filing of third quarter financial
statements.

Secured financing will serve to boost Ford's liquidity and provide
incremental resources and time to continue its extended
restructuring program.  Negative cash flow from operating losses,
restructuring costs and working capital outflows in 2006 is expected to
exceed US$8 billion.  Continuing market share and
revenue declines in 2007, and the delayed effect of the employee
reduction programs indicate that cash outflow could be at a
similar level in 2007.  Given the very large working capital
financing requirements in North America, as well as tax-
disadvantaged overseas cash holdings, Fitch believes that
consolidated cash holdings below US$15 billion could raise the level of
concern among suppliers and customers.  At the end of the third quarter
total cash, marketable securities, loaned securities, and short-term VEBA
was approximately US$23.6 billion.

Stabilization of Ford's revenue performance in 2007 is unlikely,
given production cutbacks, a slowing economy, enhanced competition in the
critical pickup segment, and lack of new impact products.  Ford has shown
some progress in the passenger car market, but this progress will not be
sufficient to offset the steep declines in volume and profitability from
mid-size and large SUV's, and pickups.  Near-term improvement in operating
results will need to be driven largely by reductions in Ford's cost
structure, which is expected to occur gradually, but steadily throughout
2007.  A decline in commodity prices could benefit margin performance over
the long-term, but is expected to provide little relief well into 2007.

Severely stressed conditions in the supply base provide little
opportunity to reduce supplier costs, but instead present the
potential for higher costs, financial support, and supply-chain
disruptions.  Ford continues to spend aggressively on employee
buyout programs, although the completion of the hourly buyout
program will extend to the third quarter of 2007, deferring full
realization of the cost savings.  Ford's relatively young workforce will
make buyouts a more expensive proposition than at General Motors, but could
also result in a better mix of employees that would exit without retiree
pension and health care benefits.  A successful buyout program would also
accelerate the restructuring, re-sourcing and closure of facilities at
uncompetitive ACH facilities.  Longer-term, the re-opening of the UAW
contract in September 2007 will represent a critical event in establishing
Ford's ability to establish a long-term, competitive cost structure.

Asset sales are expected to be limited, and challenging to
complete.  Recently announced intentions to sell Aston-Martin and APCO,
would provide modest proceeds to apply to restructuring efforts.

Fitch places the following debt on Rating Watch Negative:

Ford

    -- Senior unsecured 'B+/RR3'.

These ratings are unaffected by Fitch's action and currently
maintain a Negative Rating Outlook:

Ford

    -- Issuer Default Rating 'B'.

Ford Credit

    -- Issuer Default Rating 'B'.

Fitch's Recovery Ratings, introduced in 2005, are a relative
indicator of creditor recovery on a given obligation in the event of a
default.


GRUPO MEXICO: Won't Reopen San Martin Zinc-Copper Mine
------------------------------------------------------
Grupo Mexico SA de CV will not reopen its San Martin zinc-copper mine in
Zacatecas, according to a report from Reforma.

As reported in the Troubled Company Reporter-Latin America on
May 12, 2006, Grupo Mexico closed its San Martin mine due to a strike that
started in March halted production.  The miners commenced the strike after
the Mexican government didn't recognize Napoleon Gomez Urrutia as union
leader of the Miner and Steelworkers Union.

However, Business News Americas relates that the mine stayed open despite
the protests.  Grupo Mexico increased workers' salaries by 8% and improved
their benefits.

Renewed disputes with workers have again motivated Grupo Mexico to shut down
the mine, Reforma says, citing Rigoberto Real Baena, the chief executive of
the company's San Martin operations.

Mr. Baena told BNamericas, "We are going to close because there are still
many problems and demands by the miners to which we haven't found a
solution.  The reserves are running out and the mine is not economically
viable.  It has been producing 2,500t/d of ore, or 50% less than some months
before. That is why we are closing."

Grupo Mexico is yet trying to obtain government clearance for the mine's
closure, BNamericas notes, citing Mr. Baena.

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

                        *    *    *

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

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


NORTEL NETWOKS: Deploys Municipal Wireless Solution
---------------------------------------------------
Nortel Networks Corp. disclosed new municipal wireless deployments that
demonstrate the company's strength in helping governments embrace broadband
wireless as a strategic way to deliver efficient services that keep
communities safe and productive, as well as economically competitive.

"We are committed to helping communities make wireless broadband services
affordable and available to everyone," said Dietmar Wendt, president, Global
Services, Nortel.  "Nortel's Municipal Wireless Solution and simplified
business models are helping customers maximize return on investment through
improved productivity and efficiency of government operations, increased
public safety and new economic growth. Municipal wireless is one of the key
strategic areas that will help drive Nortel's business momentum and growth,
and we plan to invest heavily in new resources that will help us lead this
market."

Nortel combines a comprehensive portfolio of Wireless Mesh, Wireless LAN and
WiMAX technologies with a full suite of Nortel Global Services, giving
customers the solutions they need to design, deploy, support and evolve
municipal wireless networks. Nortel's experience designing, launching and
installing hundreds of public and private wireless networks around the world
helps customers offset risk in building privately-funded networks.  For
municipalities interested in partnering with private sector companies,
Nortel can help connect customers with operators that best meet the economic
development and public safety needs of the community.

Nortel's municipal wireless lab is located in Research
Triangle Park, North Carolina and showcases the Company's entire Municipal
Wireless Solution.  The lab focuses on research and development of broadband
wireless solutions that will allow municipalities and operators to realize
simplified introduction of new wireless services and applications to boost
economic development, improve public safety and give citizens easier access
to government services.  The lab also gives Nortel a collaborative
environment in which to fully test and integrate an expansive ecosystem of
partners to provide municipal applications.

Nortel is working with 121Media, Inc., Accela, Inc., Aptilo Networks, Blue
Vector Systems, NetMotion Wireless, Pronto Networks and smarTVideo
Technologies, Inc. to offer enhanced broadband wireless applications. These
applications include in-vehicle communication services, automated meter
reading, digital video surveillance, asset or fleet tracking and monitoring,
subscriber management and access control and mobile television.  In
addition, Nortel's Municipal Wireless Solution leverages the Nortel
Multimedia Communication Server 5100 to give customers access to a broad
range of voice and collaboration tools such as instant messaging and video
and audio conferencing.

"Through Nortel and NetMotion Wireless collaboration, police officers,
firefighters, inspectors and other public safety employees will have the
ability to securely and seamlessly roam while maintaining session
persistence with mission-critical applications such as background checks or
video surveillance," said John Knopf, director of product management,
NetMotion Wireless.  "For years, NetMotion Wireless' Mobility XE software
has provided secure, remote access to the public safety market, enabling
real-time access to information that keeps workers productive as they roam
seamlessly across a variety of networks.  Our expertise in this market
paired with Nortel's strong presence in the municipal wireless space will
allow many new customers to experience the power of our combined solutions."

Nortel's Municipal Wireless Solution is being used in the largest municipal
wireless network in the world by the Taipei City government in Taipei,
Taiwan and by Golden Telecom in Europe's largest wireless mesh network in
Moscow, Russia.  Golden Telecom is also conducting trials with Nortel's
Mobile WiMAX solution.

From rural to urban deployments, Nortel's Municipal Wireless Solution is
being used by governments and operators in multiple countries, including
Ariel, an Israeli settlement located on the West Bank; Annapolis Wireless in
Annapolis, Maryland; Bell Canada in the Township of Chapleau, Ontario; the
City of Kaohsiung, Taiwan; Marshalltown, Iowa; Richardson, Texas; Simply
Surf in Dunrobin, Ottawa and the Special Areas Board of Alberta, Canada.  It
is also being used by several new customers in North America, including
Carlsbad, New Mexico; Occoquan Wireless in Occoquan, Virginia and Ronco
Communications in Niagara County, New York.

With a population of 26,000, Carlsbad, New Mexico is on the brink of massive
and rapid economic growth.  The city's close proximity to California makes
it an attractive location for high tech and hospitality businesses, as well
as an ideal travel destination for thousands of tourists each year.  To
compliment the success of the growing community, the Carlsbad Department of
Development worked with local service provider Windstream Communications to
deploy Nortel's Wireless Mesh Network solution to create a wireless hot zone
covering the commercial downtown area.  The new network enables residents
and visitors to use laptops or wireless handheld devices to access the
public Internet and helps the City of Carlsbad expand its economic
opportunities by attracting and retaining new businesses.

"With an influx of economic activity and new growth, we needed a broadband
wireless service that would further Carlsbad's ability to compete with other
urban areas for new business while at the same time maintaining the charm of
its small town roots, and Nortel gave us the perfect solution," said Robert
Detweiler, executive director, Carlsbad Department of Development.  "Our
long term vision is to expand wireless broadband access throughout the city
and into many of the new complexes being built along the Pecos River.  As
our community grows, so too will our wireless network-it is the backbone of
our economic development."

The picturesque town of Occoquan, Virginia, is situated 20 miles south of
Washington, D.C. on the banks of the Occoquan River and has gained notoriety
as one of America's most haunted towns.  Occoquan Wireless, a franchise of
Annapolis Wireless, is using Nortel's Wireless Mesh Network solution to
deliver broadband service in Occoquan for merchants, residents and the
thousands of tourists who visit the town each year.  By offering
sponsorships and advertising on its splash page to local businesses,
Occoquan Wireless is able to provide wireless broadband coverage free of
charge across Occoquan's waterfront Historic District which features more
than 100 antique, art and craft shops and restaurants, as well as a bustling
marina.

"One of our most important goals is to improve conditions for merchants and
visitors in our historic district, and wireless broadband access is an
important step in that direction," said Earnie Porta, mayor of Occoquan.

Headquartered in Ontario, Canada, Nortel Networks Corp.
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions
encompassing end-to-end broadband, Voice over IP, multimedia services and
applications, and wireless broadband designed to help people solve the
world's greatest challenges.
Nortel does business in more than 150 countries including Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.

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

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

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




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


* PANAMA: Citizens Voted Yes in a Referendum on Canal Expansion
---------------------------------------------------------------
Panamanians voted "Si" in a national referendum on Panama Canal expansion.
The voting began on Oct. 22, 2006, at 7 a.m.

By law, expansion, or the "third set of locks project," must be put to a
vote in a popular referendum.  The Panama Canal Authority or ACP presented
its formal proposal to the Panamanian government in April.  In the end, 78
percent voted for expansion, as of 9:30 p.m. EDT.

"Today, Panamanians made history.  We are honored by their trust and humbled
by the responsibility in front of us," said Dr. Ricaurte Vasquez Morales,
chairman of the ACP's board of directors and concurrent minister for Canal
affairs.  "We spent years studying, researching and preparing and we are
ready.  This project will be done efficiently and transparently.  With this
vote, the Canal will be able to grow with demand, improve service, spur
economic growth in Panama and maintain the Canal's competitive advantage,"
Mr. Vasquez concluded.

After 92-years of serving world commerce, the Canal will have a major
expansion.  This expansion will accommodate surging demand for the Canal's
routes and services, particularly the rapid growth in traffic from Asia,
through the Canal, to the United States and back -- known as the "All-Water
Route."

Expansion will build a new lane of traffic along the Panama Canal through
the construction of a new set of locks, which will double capacity and allow
more traffic and wider ships.  The Panama Canal is nearing maximum capacity
and needs to grow with demand.  The result of comprehensive analyses and
studies by the ACP, expansion is estimated to cost US$5.25 billion and will
be paid by Canal customers through a system of graduated toll increases.  An
expanded Canal would benefit the people of Panama and world trade, and would
help maximize Panama's strategic location to become the great maritime hub
of the Americas.

"We are proud and energized by the confidence in us that Panamanians showed
today.  The project will benefit the people of Panama, the shipping/maritime
industry and world trade. Panama's geographic location is its destiny -- we
aim to be at the center of global trade and become a great maritime hub,"
said Alberto Aleman Zubieta, ACP administrator/CEO.  "Expansion will be a
principles-driven project -- we are committed to transparency, efficiency
and environmental sustainability.  This will guide our vision and
direction."

The ACP will provide regular updates on expansion and the contracting
process, and will continue its environmental conservation efforts along the
Canal Watershed to protect this precious water resource for the city of
Panama and the Canal.

The ACP has successfully managed and operated the Canal since the U.S.
handover in 1999.  Canal operations have broken several records and have set
the bar high for efficiency, safety and reliability, while bringing more
revenue to the country.  "We are up to the task to take on Canal expansion,
to add more capacity and to ensure reliable service years to come," said
Aleman Zubieta.

The project will not interfere with or disrupt current Canal traffic.

                          Expansion

Expansion will build a new lane of traffic along the Canal through the
construction of a new set of locks.  Environmentally sound water-saving
basins will be built next to the new locks, reusing 60 percent of the water
in each transit.  This technology eliminates the need for constructing dams,
flooding or displacing communities along the Canal's Watershed.  The ACP is
committed to sustainable development and adhering to environmental
management best practices.

                          Economics

An expanded Canal will benefit the people of Panama and world trade.  The
expansion will help maximize Panama's strategic geographic location by
helping it become an international maritime hub at the center of global
trade.  Expansion will improve the flow of international commerce and
facilitate the movement of goods through several important markets.  It will
increase capacity at one of the world's critical trade arteries; allow the
vital "All-Water Route" to continue to grow; create more efficient service
at the Canal, which would tighten the global supply chain and help goods get
to market faster, thus saving time and money for producers and consumers.

                          Financing

Expansion will be paid for by Canal customers through a system of graduated
toll increases.  As always, the ACP will consult with customers on the new
tolls pricing system.

                        *    *    *

Fitch Ratings assigned these ratings on Panama:

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


* PANAMA: Fitch Says Canal Expansion May Yield Positive Results
---------------------------------------------------------------
Fitch Ratings stated that the approval of the Panama Canal expansion
referendum could yield positive results for the country in the long term in
terms of higher external and fiscal receipts and GDP growth prospects.
However, the referendum itself will not have an immediate impact on Panama's
sovereign ratings, as uncertainties remain about debt financing, future
revenues from tolls, and Panama's ongoing fiscal consolidation.  Currently,
Fitch maintains a Foreign Currency Issuer Default Rating of 'BB+' for Panama
with a Stable Outlook.

Panamanians voted yesterday on the referendum to expand the Panama Canal.
With about 96% of the votes counted, 78% of voters approved the referendum.
While Fitch views the approval of the canal expansion as a favorable
development for maintaining the country's competitiveness, the project is
not without risks.  As such, Fitch will closely monitor the project's impact
on debt levels and GDP growth.

"Panama's key rating weakness relative to other Fitch-rated 'BB' sovereigns
continues to be its high level of public debt," according to Theresa Paiz
Fredel, lead analyst for Panama and Director of Latin American Sovereign
Ratings at Fitch.

At a projected 34% by year-end 2006, Panama's ratio of net public external
debt to current external receipts is among the highest in the 'BB' category,
and its ratio of government debt to GDP of 57.6% is above the 'BB' median of
40%. However, fiscal consolidation and good prospects for the continuation
of strong export and economic growth have put debt dynamics on a downward
trajectory.  As a result, Fitch believes that Panama should be able to
absorb any future increase in public debt related to the expansion of the
canal.  Currently, the cost of canal expansion is estimated at US$5.3
billion, including a contingency to cover the cost of any risks and
unforeseen events. Furthermore, the Panama Canal Authority could finance a
portion of the construction costs through higher tolls.  Additional external
financing is not likely to occur before 2008, to cover the peak years of
construction between 2009 and 2011.  While a significant increase in public
debt could potentially constrain upward momentum of Panama's credit ratings,
Fitch believes that over the longer term, canal expansion, if managed
appropriately, could yield economic benefits that outweigh the medium-term
costs of increased public debt.

Longstanding dollarization, a stable financial system, moderate debt service
needs, and the government's considerable financial and land assets support
the sovereign's IDR of 'BB+'.  Despite fiscal slippage in 2004, Panama's
ratings have been underpinned by a strong economic response to global
growth, as well as the efforts of the administration of President Torrijos
to strengthen public finances, as demonstrated by the prompt passage of
fiscal reform, more recently social security reform, and improvements in
fiscal transparency.  Output expanded 6.4% in 2005, strong by regional
standards, and the prospects for 2006 are even better, with growth likely to
exceed 7%.  Given fiscal consolidation and growth, the non-financial public
sector deficit or NFPS declined to 3.2% of GDP in 2005 from 4.9% of GDP in
2004.  In light of higher than expected revenues and economic growth this
year, the NFPS deficit is likely to be less than the budgeted 3.0% of GDP.




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


BANCO DE CREDITO: Fitch Rates Proposed US$120MM Notes at BB+
------------------------------------------------------------
Fitch Ratings has assigned an expected rating of 'BB+' to the planned US$120
million of subordinated notes to be issued by Banco de Credito del Peru's
Panamanian branch.  The rating is contingent upon receipt of final documents
conforming to information already received.  The rating is one notch below
Banco de Credito del Peru's long-term foreign currency IDR of 'BBB-',
assigned on Oct. 13, 2006, by Fitch.

The unsecured subordinated notes will mature in 2021, and will accrue
interest at a fixed rate for the first 10 years of the issue, after which
there will be a step-up to a LIBOR-based floating rate.  The notes will be
subordinated in right of payment to all of Banco de Credito's existing and
future senior obligations.  In the event of Banco de Credito's bankruptcy,
liquidation or dissolution under Peruvian banking law, the notes will rank
at least pari passu in right of payment with all of Banco de Credito's
future subordinated indebtedness and will be senior in right of payment to
the holders of all classes of the bank's share capital.  The notes will not
be guaranteed by Banco de Credito's parent company or any of its
subsidiaries.

The notes can be redeemed by Banco de Credito in 2016 -- or at any interest
payment date thereafter -- with prior regulatory approval. They can also be
redeemed anytime in the case of regulatory events that may affect their
eligibility for regulatory capital consideration in Peru, and/or in the face
of tax events in Peru or Panama that may change the tax status of interest
payments.

The notes are being issued by Banco de Credito as subordinated notes
(Certificados de Deposito Negociables Subordinados) under the laws of Peru
and will be governed by the law of New York.  The notes are considered debt
instruments by Peruvian, Panamanian and New York legislations; they are not
covered by any type of deposit insurance.

Banco de Credito del Peru is Peru's largest bank, with a dominating market
share of over 30% of deposits, and boasts total consolidated assets of
US$9.6 billion and equity of US$780 million as of June 30, 2006.  It is the
principal operating company within Credicorp, Peru's largest financial
services company, which controls 96.2% of Banco de Credito; Credicorp is
widely held by local and foreign institutional shareholders.


BANCO DE CREDITO: Moody's Assigns Ba2 Rating on US$120MM Notes
--------------------------------------------------------------
Moody's Investors Service assigned a Ba2 foreign currency subordinated debt
rating to Banco de Credito del Peru, Panama Branch's US$120 subordinated
negotiable certificates of deposit (unsecured subordinated notes) maturing
in 2021.

The rating agency noted that the subordination of the notes was taken into
consideration and applied to Banco de Crediot's Baa2 global local currency
deposit rating.  At this rating level, Moody's notching guidelines determine
a one-notch differential from the base rating.

The Ba2 rating is the result of joint probabilities of default that are
incorporated into Peru's Ba2 country ceiling for foreign currency bonds, and
into Banco de Credito's Baa3 global local currency subordinated debt rating.
The Ba2 rating also reflects the probability of a sovereign default implied
by the Peruvian government's Ba3 foreign currency bond rating, and the
likelihood that the Peruvian government could impose a debt moratorium in
the event of default on its own foreign currency obligations.

The rating also addresses the risk that any such moratorium might include
foreign currency bonds and that Banco de Credito's bonds might particularly
be affected.  The Ba2 rating is one notch higher than the foreign currency
rating for the Peruvian government bonds and at the same level of Peru's
country ceiling for foreign currency bonds.

Banco de Credito del Peru is headquartered in Lima, Peru and reported US$8
billion in assets and US$748 million in equity as of June 30, 2006.




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


ADELPHIA COMMS: Metropolitan Edison, et al. Want Claims Allowed
---------------------------------------------------------------
Metropolitan Edison Company, Pennsylvania Electric Company,
Toledo Edison Company, Ohio Edison Company, Pennsylvania Power
Company and Illuminating Company aka Cleveland Electric Illuminating
Company, ask the U.S. Bankruptcy Court for the Southern District of New York
to allow their administrative expense claim against Adelphia Communications
Corp. and its debtor-affiliates for:

   (1) US$2,438,302, including but not limited to at least
       US$392,693 against Parnassos in favor of Penelec, for
       amounts owing under the Agreements; and

   (2) an unliquidated amount, including but not limited to at
       least US$1,073 against the JV Debtors in favor of Ohio
       Edison, for all postpetition amounts owing on
       Metropolitan Edison, et al.'s utility accounts with the
       ACOM Debtor through July 31, 2006.

Metropolitan Edison, et al., also ask the Court to direct the ACOM Debtors
to promptly pay the amounts.

Metropolitan Edison, et al., were parties to numerous pole attachment/joint
use agreements with the ACOM Debtors, including Parnassos, LP.  Metropolitan
Edison, et al., provided joint use services to the ACOM Debtors after its
filing for chapter 11 protection through the Effective Date of the Third
Modified Fourth Amended Joint Plan of Reorganization for the Century-TCI
Debtors and the Parnassos Debtors, when the Joint Use Agreements were
assigned to Time Warner Cable NY, LLC, or Comcast Corporation.  Pursuant to
pleadings and notices filed and served by the ACOM Debtors, Penelec and
Parnassos were parties to one of the Joint Use Agreement dated September 1,
1987.

Metropolitan Edison, et al., reported that the amount due and owing to them
for services provided under the Agreements from the Date the Debtors filed
for chapter 11 protection to the Effective Date totals US$2,438,302.

Based on Metropolitan Edison, et al.'s records and representations of the
ACOM Debtors' counsel regarding the applicable Adelphia counterparties to
the Joint Use Agreements, of the US$2,438,302, at least US$392,693 is due
and owing to Penelec from Parnassos.

Jil Mazer-Marino, Esq., at Rosen Slome Marder LLP, in Uniondale, New York,
however, notes that that Metropolitan Edison, et al., have been unable to
determine from their own records, who the applicable Debtor counterparty is
to each of the Joint Use Agreements.  Metropolitan Edison, et al., have
asked the ACOM Debtors to identify the applicable Debtor counterparty to
various of the Joint Use Agreements as of July 30, 2006.  While ACOM
Debtors' counsel has advised that the ACOM Debtors are diligently working on
the request, as of September 13, 2006, the ACOM Debtors have not provided
the information, Ms. Mazer-Marino relates.

In addition, Metropolitan Edison, et al., had provided postpetition electric
utility service to the ACOM Debtors on numerous accounts through the
Effective Date.  Based their records, only 29 accounts appear to be service
accounts of any of the JV Debtors.  The aggregate amount owing on those 29
accounts for service provided by Ohio Edison to the JV Debtors from the Date
the Debtors filed for chapter 11 protection to the Effective Date is
US$1,073.

Metropolitan Edison, et al., believe that the ACOM Debtors routinely failed
to update the customer names or provide correct customer names on many
utility service accounts. Thus, Metropolitan Edison, et al., are unable to
identify with any certainty which Adelphia entity is the customer on the
various utility accounts with the Debtors.

Ms. Mazer-Marino relates that the total amounts owing on all of Metropolitan
Edison, et al., utility service accounts with the Debtors have not yet been
determined.  Metropolitan Edison, et al., are still in the process of
calculating the final bills for the accounts.  Due to the large number of
accounts at issue and certain limitations with their billing system, they
are unable to finalize the accounts through the Effective Date until they
have determined which service accounts have been assigned to Time Warner and
which ones have been assigned to Comcast.  Metropolitan Edison, et al., are
diligently working with their contacts at each company to determine the
information.

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 No. 149; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


ADELPHIA COMMS: Santa Monica Seeks Court OK to Century Payments
---------------------------------------------------------------
The city of Santa Monica, Calif., asks the U.S. Bankruptcy Court for the
Southern District of New York to preserve its rights to receive
administrative expense priority payments to remedy the defaults under the
Franchise it issued to Century-TCI California, L.P.

Prior to Adelphia Communications Corp. and its debtor-affiliates' filing for
chapter 11 protection, Santa Monica granted Century-TCI California, a
franchise to own, operate and maintain a cable television system within the
boundaries of Santa Monica.

In resolution of several disputes between the Santa Monica and Century-TCI,
the parties entered into a settlement agreement dated Jan. 30, 2006, which
provides, among others, for the assumption of the Franchise.  Santa Monica
did not waive any defaults arising on or after July 1, 2005, and the period
from Jan. 1, 1999 to June 30, 2005, related to the payment of franchise
fees, utility users, or business license taxes or fees.

Santa Monica has commenced an audit of the Franchise for the period of July
1, 2005, through June 30, 2006.  Though the audit has not been completed,
based on a preliminary review, Santa Monica believes that there are defaults
under the Franchise arising during the period from July 1, 2005, and before
July 31, 2006, effective date of the Third Modified Fourth Amended Joint
Plan of Reorganization for the Century-TCI Debtors and the Parnassos
Debtors.

Eric D. Winston, Esq., at Stutman, Treister & Glatt, in Los Angeles,
California, informs the Court that prior audits routinely revealed that
Century-TCI had failed to satisfy certain obligations arising under the
Franchise Agreements.

Mr. Winston notes that the JV Plan and its related confirmation order dated
June 29, 2006, require Santa Monica to file administrative expense claims
within 45 days after the JV Plan's Effective Date.  Failure to timely submit
an Administrative Expense Claim may result in the forfeiture of the claims.

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 No. 149; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


DORAL FIN'L: Reports US$33.8MM Net Loss for 2006 First Semester
---------------------------------------------------------------
Doral Financial Corp. reported the filing of its Form 10-Q reports for the
first and second quarters ended March 31 and June 30, 2006.

"With the filing of our results for the first half of the year, we have
completed another difficult chapter as we move forward in our effort to
transform Doral's business and operations into a higher margin financial
services enterprise," stated Glen Wakeman, Chief Executive Officer.  "Since
the beginning of this past summer, Doral has installed a new senior
management team, recruiting experienced executives with both the skills set
and values to build competitive advantages for Doral in the marketplace,
including capitalizing on the potential of the Doral brand in Puerto Rico.

In moving forward, Doral is also addressing substantial challenges. Among
the key challenges are the refinancing of the Company's US$625 million
floating rate senior notes that mature in July 2007, the restructuring of
the balance sheet to enhance future earnings and the resolution of remaining
restatement related issues.  The Board and new senior management team are
committed to resolving these challenges in a manner that serves the
long-term interests of Doral and all its stakeholders.

With respect to its US$625 million floating rate senior notes that mature in
July 2007, Doral will require outside financing or other sources of capital
to refinance this indebtedness at maturity. Accordingly, Doral is in the
process of selecting a financial advisor to assist the Company in reviewing
a number of possible alternatives to refinance this indebtedness and in
examining alternatives to restructure its balance sheet in order to enhance
future earnings," stated Mr. Wakeman.

For the first six months of 2006, Doral Financial incurred a net loss of
US$33.8 million, compared to net income of US$16.4 million for the same
period of 2005.  Consolidated loss per diluted common share (after payment
of dividends on preferred shares) was US$0.47 for the first six months of
2006, compared to US$0.00 for the comparable 2005 period. Doral Financial
reported net income of US$17.1 million and a net loss of US$50.9 million for
the quarters ended March 31 and June 30, 2006, respectively, compared to net
income of US$39.2 million and a net loss of US$22.8 million for the
comparable periods of 2005.  Consolidated earnings per diluted common share
(after payment of dividends on preferred shares) were US$0.08 for the
quarter ended March 31 and a net loss per diluted share of US$0.55 for the
quarter ended June 30, 2006, compared to net income per diluted common share
of US$0.28 and a net loss per diluted common share of US$0.29 for the
comparable periods of 2005.

Although with the filing of its results for the first half of the year Doral
has become current in its SEC regulatory filings, the company does not
expect, because of the delay in filing its prior SEC reports, that it will
be able to file its quarterly report on Form 10-Q for the third quarter of
2006 by its due date.

"The transformation of Doral is going to be done prudently and will take
time.  Central to this long-term effort is to capitalize on and expand the
Doral brand in Puerto Rico and, where appropriate, in other Hispanic market
segments in the U.S.  It is our goal to offer a diverse higher margin
product portfolio, improved customer technologies and outstanding customer
service, all within an environment that is focused on tight cost control,
enhanced productivity and strong corporate values. Our portfolio will
include, among its products and services, a full suite of mortgage products
to allow Doral to remain a leading mortgage originator in Puerto Rico," said
Mr. Wakeman.

              Overview of Financial Condition
                 and Results of Operations

Doral Financial's consolidated financial statements for the first six months
of 2006 reflect the difficult business environment and challenges faced by
the company.  Doral Financial's results of operations for the first six
months of 2006 were principally affected by:

   (1) reduced net interest income due principally to the
       interest rate environment and the repricing and maturity
       mismatch in the company's assets and liabilities,

   (2) a net loss on mortgage loan sales and fees due to market
       value adjustments on the company's held for sale
       portfolio, losses related to the restructuring of
       mortgage loan transfers to local financial institutions
       and lower margins on sales of mortgage loans,

   (3) increased expenses associated with the company's
       restatement and reengineering initiative, and

   (4) a change in tax position from a tax expense for the
       first six months of 2005 to a tax benefit for the first
       six months of 2006.

Among the key components of the company's financial performance for the six
months ended June 30, 2006, were:

   -- Net interest income for the six months ended
      June 30, 2006, was US$114.1 million, compared to US$151.4
      million for the same period in 2005, a decrease of 24.7%.
      The decrease in net interest income resulted from a
      decrease in net interest margin from 1.74% in the first
      half of 2005 to 1.46% for the first half of 2006, coupled
      with a decrease in average interest-earning assets from
      US$17.5 billion for the first half of 2005 to US$15.7
      billion for the first half of 2006, principally due to a
      decrease in investment and mortgage-backed securities and
      in money market investments. The reduction in net interest
      margin resulted from the flattening of the yield curve, as
      on average, the company's interest bearing liabilities,
      principally wholesale funding and loans payable,
      re-priced at higher frequency and rates than the
      company's interest-earning assets.  The decrease in the
      company's interest margin has been particularly
      significant with respect to its portfolio of investment
      securities.  Assuming a funding cost equal to the
      weighted-average cost of the company's repurchase
      agreements, the average interest rate spread on the
      company's portfolio of investment securities was
      approximately 0.41% for the six months ended
      June 30, 2006, compared to 1.36% for the company's
      interest earning assets taken as a whole.

The impact of the flattening yield curve on Doral Financial's net interest
margin is magnified by the current mismatch in the duration of the Company's
assets and liabilities.  The company's interest-earning assets include a
large portfolio of fixed-rate long-term investments securities and mortgage
loans that were generally financed with short-term or callable liabilities.
This mismatch exposes the company to significant interest rate risk in a
rising rate environment because, as these short-term or callable liabilities
re-price at higher market rates, the company's interest rate margin is
further compressed.  The company's interest rate risk exposure is further
complicated by the negative convexity (i.e. the tendency for the duration of
the company's assets to decrease through prepayments as interest rates
decline) inherent in the company's portfolio of fixed rate mortgage-backed
securities and mortgage loans. The combination of this negative convexity
and the current composition of the company's liabilities expose the company
to margin compression risks even during certain declining interest rate
environments.

   -- The provision for loan and lease losses for the first six
      months of 2006 was US$11.0 million, compared to US$7.7
      million for the comparable 2005 period.  The increase in
      the provision for loan and lease losses primarily reflects
      an increase in the allowance for the company's
      construction loan portfolio, as well as an increase in the
      delinquency trends of the company's overall loans
      portfolio.

   -- Non-interest loss for the first six months of 2006 was
      US$31.2 million, compared to non-interest income of
      US$461,000 for the same period in 2005.  The non-interest
      loss was primarily due to a net loss on mortgage loan
      sale and fees of US$41.5 million, compared with a gain of
      US$23.3 million for the corresponding 2005 period.  This
      loss was principally due to the company reassessment of
      its mortgage loans held for sale portfolio in light of the
      more stringent requirements of the U.S. secondary mortgage
      market, which has become its principal outlet for
      non-conforming loans as a result of reduced demand for
      this product from Puerto Rico financial institutions, and
      also to losses on sales of mortgage loans driven by the
      company's decision to restructure previous mortgage loan
      transfers to local financial institutions.  During the
      first quarter of 2006, management transferred US$876.2
      million from its mortgage loans held for sale portfolio
      to its loan receivable portfolio, which resulted in a
      market value adjustment of US$12.3 million that was taken
      as a charge against earnings during the first quarter of
      2006. During the second quarter of 2006, the company
      recognized an aggregate net loss of approximately US$8.2
      million as a result of the restructuring of certain prior
      mortgage loan transfers.  In addition, the company made
      downward market value adjustments of US$5 million in the
      first quarter and US$17.5 million in the second quarter to
      reflect the impact of rising interest rates on the
      company's mortgage loans held for sale portfolio, as well
      as market terms for secondary sales in the U.S. market.
      During 2006, the company has also experienced lower
      margins on sales of mortgage loans as the company sold
      its non-conforming loan production in the U.S. market at a
      lower gain.

Doral Financial also incurred a net loss on securities held for trading,
including gains and losses on the fair value of IOs, of US$17.5 million for
the first six months of 2006, compared to a net loss of US$36.4 million for
the comparable 2005 period.  The positive variance in trading activities
during the first half of 2006, compared to the first half of 2005, was
principally due to net gains on the company's derivative instruments of
US$25.4 million for the first six months of 2006, as compared to net losses
of US$57.5 million during the first half of 2005.  Offsetting the gains on
derivative instruments were net unrealized losses of US$42.9 million on the
value of the company's IOs for the first six months of 2006, compared to net
unrealized gains of US$15.6 million for the comparable 2005 period. Losses
on the value of the company's IOs during the first half of 2006 were
primarily related to floating rate IOs that did not have caps on the
pass-through interest rate payable to investors.  During the second quarter
of 2006, Doral Financial was able to restructure its prior mortgage loan
transfers giving rise to floating rate IOs and all of its remaining
portfolios of floating rate IOs have caps on the pass-through interest rate
payable to investors.

These net losses were partially offset by higher servicing income related
with an increase in the company's MSRs valuation due to a decrease in
anticipated mortgage prepayment rates and higher commissions, fees and other
income.

   -- Non-interest expenses for the first half of 2006 were
      US$134.6 million, compared to US$122.0 million for the
      same period in 2005. Non-interest expenses for the period
      continue to reflect significant expenses for professional
      services associated with the restatement of the company's
      prior period financial statements and related legal and
      accounting matters.  Non-interest expenses for the first
      half of 2006 also reflect significant expenses associated
      with advisory services relating to the reengineering of
      the company's business and operating practices, as well as
      US$7.4 million in severance payments in connection with
      the related headcount reduction.

   -- For the first half of 2006, Doral Financial recognized an
      income tax benefit of US$28.9 million, compared to an
      income tax expense of US$5.7 million for the corresponding
      period in 2005.  The decrease in the tax provision for
      2006 was principally due to an increase in the company's
      net deferred tax asset combined with a decrease in
      pre-tax income, offset in part by higher net operating
      losses in certain subsidiaries that under the Puerto Rico
      Internal Revenue Code of 1994 could not be used to offset
      gains in other subsidiaries.

   -- During the first half of 2006, the company had other
      comprehensive loss of approximately US$125.2 million
      related principally to the adverse impact of the increase
      in interest rates on the value of the company's portfolio
      of available for sale securities.  As of June 30, 2006,
      the company's accumulated other comprehensive loss (net of
      income tax benefit) reached US$250.6 million.

   -- Doral Financial's loan production for the first six months
      of 2006 was US$1.4 billion, compared to US$2.8 billion for
      the comparable period in 2006, a decrease of approximately
      50%.  The decrease in Doral Financial's loan production is
      due to a number of factors including changes in the
      underwriting processes, economic conditions in Puerto
      Rico, and competition from other financial institutions.
      Doral Financial is in the process of implementing new
      underwriting procedures.  The implementation of these
      procedures has caused disruption in the company's loan
      originations.  The company believes that these
      underwriting standards will allow it to more efficiently
      underwrite assets with better credit quality and risk
      price its loan products in the future.  The company
      anticipates that, for the foreseeable future, loan
      production volume will continue to be below historical
      levels as these new underwriting procedures are
      implemented and new product offerings are developed.  For
      example, loan production for the third quarter of 2006
      was approximately US$329.8 million.  However, the company
      is starting to see improving trends in its loan production
      during the fourth quarter of 2006.

   -- Doral Financial and its banking subsidiaries remain "well
      capitalized" for bank regulatory purposes as of
      June 30, 2006.

Doral Financial Corp. -- http://www.doralfinancial.com/
-- a financial holding company, is the largest residential
mortgage lender in Puerto Rico, and the parent company of Doral
Bank, a Puerto Rico based commercial bank, Doral Securities, a
Puerto Rico based investment banking and institutional brokerage
firm, Doral Insurance Agency, Inc. and Doral Bank FSB, a federal
savings bank based in New York City.

                        *    *    *

As reported in the Troubled Company Reporter on June 13, 2006,
Standard & Poor's Ratings Services lowered its long-term ratings
on Doral Financial Corp. (NYSE: DRL), including the company's
long-term counterparty rating, to 'B+' from 'BB-'.  At the same
time, Doral's outlook remains on CreditWatch with negative
implications.


GLOBAL HOME: Court Approves Plante & Moran to Audit 401(k)
----------------------------------------------------------
The Honorable Kevin Gross of the U.S. Bankruptcy Court for the
District of Delaware gave Global Home Products LLC and its debtor-affiliates
authority to employ Plante & Moran LLP, nunc pro tunc to May 15, 2006.

As reported on the Troubled Company Reporter on Sept. 7, 2006,
the Debtors sought permission for Plante & Moran to audit its 401(K) and
pension plans for certain Anchor Hocking employees.  Plante & Moran had
audited those 401(K) and pension plans in prior years.

The Debtors are managers of the GHP Operating Company, LLC, 401(k) Savings
Plan and GHP Operating Company, LLC, Pension Plan for Anchor Hocking Union
Employees.

Plante & Moran will audit the financial statements and
supplemental schedules of the 401(k) Savings Plan and the Union
Pension Plan for the year ended Dec. 31, 2005.

The audited financial statements will be included in the Savings
Plan's Form 5500 filing and Union Pension Plan's Form 5500 filing with the
Department of Labor.

As part of the audit, Plante & Moran will recommend any
adjustments to the 401(k) Savings Plan's and Union Pension Plan's accounting
records, and, to the extent necessary, will discuss with the Debtors any
suggestion concerning the accounting records and financial affairs.

David L. Scheffler, CPA, disclosed that the Firm will receive a
fixed fee of US$10,000 for the 401(k) Savings Plan Audit and a fixed fee of
US$11,500 for the Union Pension Plan Audit.

Mr. Scheffler assured the Court that the Firm neither holds nor
represents any interest adverse to the Debtors' estates and is
disinterested as that term is defined in Section 101(14) of the
Bankruptcy Code.

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
Apr. 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., represents the Official Committee Of Unsecured Creditors.
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.


GLOBAL HOME: Hires Pricewaterhousecoopers to Provide Tax Works
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave Global Home
Products LLC and its debtor-affiliates permission to employ
Pricewaterhousecoopers LLP to provide tax services.

                      Scope of Services

The firm will provide an Ohio investment tax credit analysis in
two phases:

      a) phase one: consist of high level review and calculation
         for additions during Jan. 1, 2005 through
         Dec. 31, 2005.

      b) phase two consist of:

         -- review of based period;

         -- detailed calculation of credit;

         -- preparation of credit attachment for the 2006 Ohio
            franchise tax report;

         -- filing of notice of intent to claim the
            manufacturer's credit for Jan. 1, 2005 through
            Dec. 31, 2005, if necessary; and

         -- potential plan tour for determination of qualifying
            assets.

The firm will provide Ohio personal property tax return services, including,
but not limited to: prepare and sign as preparer of the 2006 Ohio county
return of taxable business property for Anchor Hocking Consumer Glass
Operating Company LLC, Anchor Hocking Consumer Glass Corp., Mirro Operating
Company LLC and GHP Operating Company LLC.

The firm will provide tax services, including, but not limited to:

     a) prepare and sign as preparer of the U.S. partnership
        income tax return, Form 1065, for the Debtors for the
        tax year starting Apr. 1, 2005 through Mar. 31, 2006;

     b) prepare and sign as preparer of required federal and
        state income tax returns for Apr. 1, 2005 through
        Mar. 31, 2006;

     c) prepare estimated tax payments and extensions due on or
        after the signing of the April 25 engagement letter in
        connection with the tax returns; and

     d) provide special tax services related to the preparation
        of the tax returns, including but not limited to, fixed
        assets depreciation, intangible asset amortization,
        accounting for differences in tax and audit year end,
        and state apportionment analysis.

In addition, the Debtors tells the Court that, from time to time, it may ask
the firm to perform tax advisory services outside of the scope mentioned.

                        Compensation

For Ohio investment credit analysis, the Debtors agreed to pay the firm
US$2,000 for completion for the first phase and US$8,000 for phase two.

The firm's billing rates for this service are:

     Professional        Hourly Rate
     ------------        -----------
     Partner                US$500
     Director               US$380
     Manager                US$325
     Senior                 US$210
     Staff                  US$140

For Ohio personal property tax return, the Debtors agreed to
pay the firm for Anchor Hocking Consumer Glass Operating Company
LLC between US$6,000-US$8,000; and Anchor Hocking Consumer Glass
Corporation, Mirro Operating Company LLC, and GHP Operating
Company LLC between US$2,000-US$3,000.

The firm's billing rates for this service are:

     Professional        Hourly Rate
     ------------        -----------
     Partner                US$500
     Director               US$380
     Manager                US$325
     Senior                 US$210
     Staff                  US$140

For tax services, the Debtors have agreed to pay the firm US$140,000 for
this specific engagement.

The firm's billing rates for this service are:

     Professional        Hourly Rate
     ------------        -----------
     Partner                US$500
     Director               US$400
     Manager                US$325
     Senior                 US$225
     Staff                  US$175

Robert C. Goldie assures that his firm does not hold any interest adverse to
the Debtors' estates and is a "disinterested person" as that term is defined
in Section 101(14) of the Bankruptcy Code.

Mr. Goldie can be reached at:

     PricewaterhouseCoopers LLP
     300 Madison Avenue, 24th Floor
     New York, New York 10017
     Tel: (646) 471 4000
     Fax: (646) 471 4444
     http://www.pwcglobal.com/

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.


PILGRIM'S PRIDE: Issues Open Letter to Gold Kist Stockholders
-------------------------------------------------------------
Pilgrim's Pride Corp. issued an open letter to the stockholders of Gold Kist
Inc.

The letter stated that Pilgrim's Pride was disappointed in the Gold Kist
board's recommendation, which has failed to recognize both the value the
company's offer affords Gold Kist's stockholders and the unique opportunity
it presents to employees and contract growers.  The offer was to acquire all
of the outstanding shares of Gold Kist Inc. at US$20 per share in cash
expires at midnight, New York City Time, Oct. 27, 2006, unless extended.

Since before going public with its offer on Aug. 18, 2006, Pilgrim's Pride
has made it clear that it would prefer to work together with Gold Kist and
its board to negotiate a mutually beneficial agreement for both companies'
respective stockholders, employees, business partners and other
stakeholders.  However, the Gold Kist board's unwillingness to hold any
meaningful discussions with Pilgrim's Pride, as well as other actions on its
part, have convinced the company that Gold Kist does not share the same
goal.  The company believes that there are many mischaracterizations in Gold
Kist's 14D-9 filing on Oct. 12, 2006, and it would like to set the record
straight.

Pilgrim's Pride believes the Gold Kist board is not managing the process in
its best interests.

   -- Pilgrim's Pride originally sent Gold Kist a
      confidentiality agreement on Aug. 11, 2006.  Gold Kist
      consistently delayed and as a result there was little
      progress toward negotiating a confidentiality agreement.

   -- Since Pilgrim's Pride's receipt of a Gold Kist alternative
      proposed confidentiality agreement on Sept. 5, 2006, the
      company's attorneys stated in numerous conversations with
      Gold Kist attorneys, among other things, that the company
      could not accept a standstill provision or the equivalent
      of a standstill provision (one that could jeopardize
      Pilgrim's Pride's ability to commence a tender offer or
      proxy solicitation).  While Gold Kist claims it was
      willing to forego the standstill provision and deleted the
      express standstill provision, Gold Kist was unwilling to
      expressly exempt from the restrictions of the
      confidentiality agreement the disclosure of information
      required by Securities and Exchange Commission rules to be
      disclosed in connection with a tender offer or proxy
      solicitation.  This is in essence a "backdoor" standstill
      provision.

   -- Gold Kist also has been unwilling to confirm to Pilgrim's
      Pride the materials that it would furnish in response to
      the company's information request.  When Pilgrim's Pride
      sent its request to Gold Kist's financial advisors on
      Sept. 1, 2006, the company noted that it was prepared to
      begin reviewing the information immediately.  To date,
      Pilgrim's Pride has not had a single discussion or meeting
      with respect to the list of information to be provided,
      and the company has no idea -- even if it was to sign a
      confidentiality agreement -- whether it would receive the
      information requested.

   -- The Gold Kist board and Special Committee of independent
      directors also reiterated that they "remain committed to
      the continuing enhancement and execution of the company's
      strategic business plan, as well as exploration of
      potential alternatives to maximize stockholder value."
      Pilgrim's Pride notes that more than two months have
      passed since the company made its offer public, and it
      remains the only buyer that has publicly expressed
      interest in acquiring Gold Kist.  Further, Gold Kist's
      board of directors has completely excluded Pilgrim's Pride
      from its process.

      If indeed a process is underway, it is clearly in the best
      Interests of Gold Kist stockholders that Pilgrim's Pride
      be given the opportunity to participate.

      While the chicken industry is subject to volatility,
      Pilgrim's Pride believes its offer reflects a significant
      premium to normalized conditions.

   -- As is widely known, the chicken industry is subject to
      volatility and there are a number of factors impacting
      near-term market conditions.

      Even though industry dynamics improved in the spring and
      early summer of 2006, in fact, since Pilgrim's Pride made
      its US$20 per share offer public on Aug. 18, 2006, the
      industry conditions have weakened.  The price of boneless
      breast meat has decreased from US$1.47 per pound to a near
      all-time low of US$1.06 per pound.  In addition, the price
      of corn has increased sharply from US$2.196 per bushel to
      US$3.126 per bushel over the past two months.  These
      factors negatively affect industry profit margins, which
      remain below historical industry average performance and
      Pilgrim's Pride purposely set its US$20 per share offer
      price for Gold Kist to reflect what Pilgrim's Pride
      believes is a significant premium to  normalized
      conditions.

      The Pilgrim's Pride US$20 per share offer provides Gold
      Kist stockholders with immediate and certain value for
      their  shares.

   -- Pilgrim's Pride's offer represents a premium of 55% over
      Gold Kist's closing stock price on Aug. 18, 2006, the last
      day of trading before Pilgrim's Pride notified Gold Kist's
      board of directors in a public letter that it was offering
      US$20 per share in cash for the company.

   -- While the Gold Kist board has expressed confidence in its
      strategic plan and the stand-alone value of the company,
      Pilgrim's Pride notes that prior to its offer, Gold Kist
      stock was trading at US$12.93 per share.  In light of
      ongoing industry volatility, our offer provides certain
      and immediate value of US$20 per share in cash, which is
      not subject to both the risks inherent in the execution of
      Gold Kist's long-term strategic plan or the many
       uncertainties of the poultry industry.

   -- Gold Kist's stock price, on average, has been
      approximately 50% of the Pilgrim's Pride stock price since
      Gold Kist's initial public offering in 2004.  While stocks
      in the industry are subject to significant volatility,
      applying this average relative trading value of 50% to
      Oct. 20, 2006, Pilgrim's Pride closing stock price of
      US$25.52 implies a Gold Kist stock price of approximately
      US$12.94.  Thereby, Pilgrim's Pride believes its offer
      still represents an approximately 55% premium to this
      implied Gold Kist stock price.

      Pilgrim's Pride is attempting to preserve Gold Kist's
      ability to elect a new board majority and negate a lawsuit
      which seeks to entrench Gold Kist management and delay the
      stockholders' opportunity to receive cash for their
      shares.

   -- Pilgrim's Pride believes Gold Kist is attempting to
      entrench its management and board and deny stockholders
      the opportunity to receive US$20 in cash per share.
      Rather than negotiate a confidentiality agreement,
      furnish information requested more than six weeks ago, or
      attempt to negotiate a merger agreement, Gold Kist instead
      filed a lawsuit against Pilgrim's Pride.  This lawsuit
      seeks to limit Gold Kist stockholders' ability to vote in
      favor of Pilgrim's Pride's nominees.

      Pilgrim's Pride believes this is another attempt by Gold
      Kist's board to entrench itself and delay stockholders'
      ability to receive cash for your shares.  If the current
      Gold Kist directors continue to stand between stockholders
      and Pilgrim's Pride's offer, the company will vigorously
      defend against this lawsuit in order to preserve the right
      to elect a new board majority.

   -- Pilgrim's Pride has made tangible progress toward
      consummating this transaction.  As disclosed on
      Oct. 16, 2006, the company received the requisite consents
      from approximately 99% of the holders of Gold Kist's
      outstanding debt.  In addition, the Department of Justice
      has granted early termination under the Hart-Scott-Rodino
      Antitrust Improvements Act of 1976.

   -- From the outset of Pilgrim's Pride's offer, the company
      intends to honor all existing grower contracts.  The
      company agrees with Gold Kist Chief Executive Officer John
      Bekkers, who has said that good people are important to
      the ongoing success of the business.  The company is proud
      of its positive working relationships with our own
      growers, which should give Gold Kist growers confidence
      that Pilgrim's Pride would approach its relationships with
      them in the same spirit.  And for Gold Kist growers who
      are stockholders, the company urges them to support the
      tender offer.

Pilfrim's Pride said that it is important all Gold Kist stockholders
understand its genuine attempts to negotiate a mutually beneficial
transaction with the Gold Kist board.  Gold Kist board's refusal to act
prompted Pilgrim's Pride to commence the tender offer for Gold Kist shares.

The tender offer is scheduled to expire at midnight, New York City Time, on
Oct. 27, 2006, unless extended.  Gold Kist board of directors has rejected
the offer and refused even to discuss the offer with Pilgrim's Pride.  The
company believes it is clear that reaching an agreement quickly would be in
the best interests of all stockholders and all other constituencies.

Stockholders' questions may be directed to the information agent at:

          Innisfree M&A Incorporated
          Tel: 877-687-1874 (toll free from the U.S. and
                             Canada).

Baker & McKenzie LLP and Morris, Nichols, Arsht & Tunnell, LLP are acting as
legal counsel and Credit Suisse, Legacy Partners Group LLC and Lehman
Brothers Inc. are acting as financial advisors to Pilgrim's Pride.

                      About Gold Kist

Based in Atlanta, Georgia, Gold Kist Incorporated (NASDAQ: GKIS)
-- http://www.goldkist.com/-- operates a fully integrated
chicken production, processing and marketing business.  Gold
Kist's production operations include nine divisions located in
Alabama, Florida, Georgia, North Carolina and South Carolina.

                   About Pilgrim's Pride

Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corp.
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the
United States, Mexico and in Puerto Rico.  Pilgrim's Pride
employs approximately 40,000 people and has major operations in
Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North
Carolina, Pennsylvania, Tennessee, Virginia, West Virginia,
Mexico and Puerto Rico, with other facilities in Arizona,
Florida, Iowa, Mississippi and Utah.

                        *    *    *

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. Consumer Products sector, the rating
agency held its Ba2 Corporate Family Rating for Pilgrim's Pride
Corp.  In addition, Moody's revised or held its probability-of-
default ratings and assigned loss-given-default ratings on the
company's note issues, including an LGD6 rating on its US$100
million 9.250% Sr. Sub. Global Notes Due Nov. 15, 2013,
suggesting noteholders will experience a 95% loss in the event
of a default.




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


BRITISH WEST: Outsourcing Customer Service at Miami Office
----------------------------------------------------------
Dionne Ligoure, the head of corporate communications at British West Indies
Airlines aka BWIA, told the Trinidad and Tobago Express that its Miami
office is not being closed down and that customer service will be
outsourced.

The Express notes that these services will be provided by a foreign airline:

          -- ticketing,
          -- check-in,
          -- arrival,
          -- transfer services,
          -- gate, and
          -- baggage-handling duties.

According to The Express, foreign airlines Servisair and Swissport
International may be taking over BWIA's services, as the latter will be shut
down by Dec. 31.

The Express notes that Servisair has a presence at Piarco International
Airport.  Swissport also has a local presence but operates passenger and
ramp-handling services around the world.

Peter Davies, the chief executive officer of BWIA, told The Express that the
airline's staff would have been reduced to 550 from 1,800.

The Express states that BWIA departments expected to be shut down include:

         -- reservations office at Edward Street, Port of Spain,
         -- Piarco service.
         -- Barbados office.

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

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

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


DIGICEL LTD: Authority Asks Rival Firm to Cooperate on Probe
------------------------------------------------------------
The Telecommunications Authority has called for immediate action from
Telecommunications Services of Trinidad and Tobago aka TSTT to fully
cooperate with the investigation resulting from Digicel Ltd.'s complaint
against TSTT, Trinidad and Tobago Express reports.

As reported in the Troubled Company Reporter-Latin America on Oct. 23, 2006,
Digicel claimed that TSTT intentionally blocked the former's calls.  TSTT
denied the accusation.

Digicel said in a statement that TSTT must fully cooperate with the
Telecommunications Authority's investigation and immediately allow the
agency's engineers to visit and inspect their network facilities.

According to The Express, Digicel said that it is prepared to take whatever
legal action is necessary under the 2001 Telecommunication Act of Trinidad
and Tobago to make sure its clients no longer experience inconveniences and
that any guilty parties feel the full brunt of the law.

Kevin White, the chief executive officer of Digicel's Trinidad & Tobago
operations, told The Express, "The inconclusive response from TSTT
represents a disregard and violation of customer rights.

"They are deliberately trying to deceive and hoodwink the people of Trinidad
and Tobago by referring to a software conflict from the decommissioning of
their outdated TDMA mobile telecommunications network.  If this were true
then we would not also be experiencing the blocking of calls to TSTT
landline numbers," The Express says, citing Digicel.

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

                        *    *    *

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

                        *    *    *

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




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


PETROLEOS DE VENEZUELA: Seeking Offshore Rigs for Mariscal Sucre
----------------------------------------------------------------
The government of Venezuela is looking for offshore rigs to launch Petroleos
de Venezuela's Mariscal Sucre Liquefied Natural Gas Project during the first
quarter of 2007, Dow Jones Newswires reports.

Dow Jones underscores that Mariscal Sucre is situated in shallower waters
than reservoirs in Trinidad, a major gas exporter, or in Venezuela's Deltana
Platform, where Chevron Corp. and Statoil are investing in offshore blocks.

As reported in the Troubled Company Reporter-Latin America on Feb. 22, 2005,
Rafael Ramirez, the Venezuelan Minister of Energy and Oil and president of
Petroleos de Venezuela, said that the Mariscal Sucre project was being
fine-tuned to differentiate the processes that would be developed in this
potential area, north of the Paria Peninsula.  The Mariscal Sucre project
foresees the exploitation of offshore non-associated gas reserves and the
construction of a liquefied natural gas plant in Sucre.  It also
contemplates liquefied natural gas production and processing.

Dow Jones relates that the project is part of an effort to alleviate the
domestic gas deficit and start exports in the coming years.

Carlos Figueredo, the general manager of offshore projects for Petroleos de
Venezuela, is positive that the company will find rigs despite strong
demand, Dow Jones notes.

According to Dow Jones, "booming profits" in the oil and natural gas sector
have encouraged new exploration and development, creating a tight rig market
for firms looking to drill new wells.

The rigs Petroleos de Venezuela wants to hire for its Mariscal Sucre project
are found in the market, Dow Jones says, citing Mr. Figueredo.

Mr. Figueredo told the press, "In the size we're looking for there are some
options."

Petroleos de Venezuela hopes to drill eight wells at the Dragon section of
Mariscal Sucre in the next two years, which would bring 600 million cubic
feet a day of new natural gas, Dow Jones 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.


UNIVERSAL COMPRESSION: Secures US$500-Million Credit Facility
-------------------------------------------------------------
Universal Compression Holdings, Inc., has entered into a
five-year US$500 million senior secured credit agreement.  The lead banks in
the syndicate for the facility are Wachovia Capital Markets, LLC and
Deutsche Bank Securities Inc.

Universal used approximately US$330 million under the new senior secured
credit facility, together with debt assumed by Universal Compression
Partners, L.P. and proceeds from the sale of UCLP equity interests pursuant
to the exercise of the over-allotment option in the UCLP initial public
offering, to repay all balances under the prior senior secured credit
facility.  The new facility will be used for working capital, acquisitions
and general corporate purposes.

Headquartered in Houston, Texas, Universal Compression, Inc. --
http://www.universalcompression.com/-- provides natural gas
compression equipment and services, primarily to the energy
industry in the United States, as well as in Canada, Venezuela,
Argentina, Columbia, and Australia.

                        *    *    *

Moody's Investors Service assigned on Oct. 22, 2006, a Ba1, LGD 3 (36%)
rating to Universal Compression, Inc.'s US$500 million senior secured bank
credit facility.  At the same time, Moody's affirmed Universal's Ba2
Corporate Family Rating, its Ba2 Probability of Default Rating and its B1,
LGD5 (88%) ratings on its US$175 million 7-1/4% Senior Notes.  Moody's said
the outlook remains stable.


VENEZUELA: Issuing US$1 Billion Joint Bond with Argentina
---------------------------------------------------------
The first stage of the so-called South Bond, to be issued jointly by
Argentina and Venezuela, will take place in the first two weeks of November,
according to a report from Nosis.

The first issuance will be for US$1,000,000.

As previously reported, the new securities will trade in the
Venezuelan internal market.  Argentina will issue Boden 12 and
the Finance Ministry will release fixed-interest notes.

The two nations have maintained strong financial relations, after the
current Venezuelan administration bought about US$3.2 billion of Argentina's
Boden 2012 bonds.

                        *    *    *

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


                        ***********


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

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

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

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

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

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


           * * * End of Transmission * * *