TCRLA_Public/061026.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

          Thursday, October 26, 2006, Vol. 7, Issue 213

                          Headlines

A R G E N T I N A

CATENAE SRL: Verification of Proofs of Claim Is Until Dec. 18
COMPANIA COMERCIAL: Claims Verification Deadline Is on Dec. 11
GALVANOZINC SRL: Trustee Verifies Proofs of Claim Until Nov. 27
MOLISE SA: Last Day for Verification of Claims Is on Dec. 18
TANANA Y CIA: Seeks for Court Approval to Reorganize Business

VALEANT: Restatement News Cues S&P to Place Ratings on NegWatch

B A H A M A S

JETBLUE AIRWAYS: Posts US$628MM Revenues for Third Quarter 2006
WINN-DIXIE: Files Revised Proposed Confirmation Order

B O L I V I A

* BOLIVIA: Cerro Rico Mine Development Plan Nears Completion
* BOLIVIA: Will Create New State Company

B R A Z I L

BANCO NACIONAL: Okays BRL80MM for Santa Rosa Hydroelectric Plant
BUCKEYE TECH: Incurs US$0.3MM of Net Loss in Third Quarter 2006
CENTRAIS ELECTRICAS: Will Buy Electricity from Santa Rosa
FERRO CORP: Reports US$16.2MM Net Income for Year Ended Dec. 31
MERCANTIL DO BRASIL: Launches First Branch in Cayman Islands

NET SERVICOS: Posts BRL500.7M Net Revenue for Third Quarter 2006
PETROLEO BRASILEIRO: Paying BRL4.387B of Interest on Own Capital
PETROLEO BRASILEIRO: Posts Daily Oil Output of 1.9-Mil. Barrels
TRANSAX INT'L: Surprised by Significant Decline in Share Price

C A Y M A N   I S L A N D S

AQUARIUM (IFI): Liquidator to Present Wind Up Account on Nov. 15
BRITANNIA HOLDINGS: Final Shareholders Meeting Is on Nov. 14
CANDID IAM: Invites Shareholders for Final Meeting on Nov. 15
HAVERFORD (IMA): Shareholders Gather for Last Meeting on Nov. 15
ICEBERG (IFI): Shareholders Gather for Final Meeting on Nov. 15

IRONWOOD IAM: Final Shareholders Meeting Is Set for Nov. 15
KOFOO INC: Shareholders Convene for Final Meeting on Nov. 14
LEATHER INVESTMENTS: Sets Final Shareholders Meeting on Nov. 14
MINIMAX INVESTMENTS: Last Shareholders Meeting Is on Nov. 14
PEACE TECHNOLOGY: Last Day to File Proofs of Claim Is on Nov. 14

REVIVAL (IMA): Calls Shareholders for Final meeting on Nov. 15
RINCON LEASING: Creditors Must File Proofs of Claim by Nov. 15
SEAGATE TECH: Reports US$2.8B Revenue for Quarter Ended Sept. 29

C H I L E

GOODYEAR: S&P Puts B- Ratings on Trust Certs. on Negative Watch
PHELPS DODGE: Posts US$888 Million Third Quarter 2006 Profit
PHELPS DODGE: Declares US$0.20 Per Common Share Dividend

C O L O M B I A

ANIXTER INT: Reports US$76.2MM Net Income for Third Quarter 2006
ECOPETROL: Pipeline with Venezuela Is Part of Energy Pacts
IMAX CORP: Inks Theatre Deal with Plaza de las Americas
IMAX CORP: S&P Affirms B- Corporate Credit Rating

* COLOMBIA: S&P Says Improved Security Led to Rise in Investment

C U B A

PETROLEOS DE VENEZUELA: Will Participate in 24th Havana Fair

D O M I N I C A N   R E P U B L I C

BANCO BHD: Fitch Affirms 'B' Long-Term Issuer Default Ratings
BANCO INTERCONTINENTAL: Central Bank Submits Liquidation Papers

E C U A D O R

ECOPETROL: Mulls Expansion to Other Nations, Maria Florez Says
PETROECUADOR: Ratifies Bidding Rules for Eight Marginal Blocks

G U A T E M A L A

FLOWSERVE CORP: Moody's Assigns Loss-Given-Default Rating
FLOWSERVE CORP: S&P Affirms BB- Rating with Stable Outlook

M E X I C O

AXTEL SA: Reports MXN1.5B in Revenues for Third Quarter 2006
ENERSYS CAPITAL: Moody's Assigns Loss-Given-Default Rating
FORD MOTOR: Ditches Fidelity Magellan from 401(k) Plan
FORD MOTOR: Lenders Could Get Plants as Loan Security
FORD MOTOR: S&P Puts Ratings on Synthetic ABS on Negative Watch

GENERAL MOTORS: GMAC Gets EC Clearance for Cerberus Purchase
HASBRO INC: Earns US$99.6 Million in 2006 Third Quarter
IMAX CORP: Inks IMAX Theatre Installation Deal in Mexico
METROFINANCIERA S: IDB Grants US$105MM Partial Credit Guarantee
PORTOLA PACKAGING: Gets US$10MM Credit Increase from GE Capital

N I C A R A G U A

XEROX CORP: Earns US$536 Million in Quarter Ended Sept. 30

P A N A M A

UNIVERSAL COMMS: Gets US$1.5M from Private Placement 2nd Closing

P E R U

DOE RUN PERU: Sponsors Global Project to Improve Local Industry
DOE RUN: July 31 Stockholders' Deficit Narrows to US$101.5 Mil.
HERTZ CORP: S&P Holds Negative Watch on BB- Corp. Credit Rating

P U E R T O   R I C O

ALBERTO-CULVER: Moody's Puts Caa1 Rtg. to US$280MM Senior Notes
DORAL FINANCIAL: Aims to Boost Returns & Refinance US$625MM Debt
DORAL FIN'L: Appoints Gerardo Leiva Exec. VP of Operations
HOUGHTON MIFFLIN: S&P Puts B Corp. Credit Rating on Neg. Watch
KMART CORP: Wants FLOORgraphics' Claim Estimated at US$3 Million

KMART CORP: Court Okays Summary Judgment Against Ashland's Claim

U R U G U A Y

BEARINGPOINT INC: Seeks Noteholders' Waivers of SEC Reports
BEARINGPOINT: Launches Corporate Performance Management System

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Pipeline with Colombia Part of Pacts
PETROLEOS DE VENEZUELA: Spending VEB3.5 Tril. in Zulia Units
PETROLEOS DE VENEZUELA: 53% of Maracaibo Equipment in Bad Shape

* Upcoming Meetings, Conferences and Seminars


                         - - - - -


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


CATENAE SRL: Verification of Proofs of Claim Is Until Dec. 18
-------------------------------------------------------------
Oscar Ricardo Scally, the court-appointed trustee for Catena S.R.L.'s
bankruptcy proceeding, will verify creditors' proofs of claim until Dec. 18,
2006.

Mr. Scally will present the validated claims in court as individual reports
on March 2, 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 Catenae 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 Catenae's accounting and banking
records will follow on Apr. 17, 2007.

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

The trustee can be reached at:

          Oscar Ricardo Scally
          Arenales 875
          Buenos Aires, Argentina


COMPANIA COMERCIAL: Claims Verification Deadline Is on Dec. 11
--------------------------------------------------------------
Maria Silvia Vighensoni, the court-appointed trustee for Compania Comercial
de Haciendas S.H.'s reorganization proceeding, will verify creditors' proofs
of claim until
Dec. 11, 2006.

Ms. Vighensoni will present the validated claims in court as individual
reports on Feb. 26, 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 Compania Comercial 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 Compania Comercial's accounting
and banking records will follow on Apr. 10, 2007.

The debtor can be reached at:

          Compania Comercial de Haciendas S.H.
          Avenida Pringles 2454
          Buenos Aires, Argentina

The trustee can be reached at:

          Maria Silvia Vighensoni
          Lamadrid 3036, Olavarria
          Buenos Aires, Argentina


GALVANOZINC SRL: Trustee Verifies Proofs of Claim Until Nov. 27
---------------------------------------------------------------
Hector Calle, the court-appointed trustee for Galavanozinc S.R.L.'s
bankruptcy case, verifies creditors' proofs of claim until Nov. 27, 2006.

Under the Argentine bankruptcy law, Mr. Calle is required to present the
validated claims in court as individual reports.  Court No. 23 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
Galvanozinc and its creditors.

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

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

Galvanozinc was forced into bankruptcy at the request of Alba Morales, whom
it owes ARS10,933.03.

Clerk No. 43 assists the court in the proceeding.

The debtor can be reached at:

          Galvanozinc S.R.L.
          Rio de Janeiro 47
          Buenos Aires, Argentina

The trustee can be reached at:

          Hector Calle
          Lavalle 1528
          Buenos Aires, Argentina


MOLISE SA: Last Day for Verification of Claims Is on Dec. 18
------------------------------------------------------------
Eduardo Salomon Zalutzky, the court-appointed trustee for Molise S.A.'s
insolvency case, will verify creditors' proofs of claim until Dec. 18, 2006.

Mr. Zalutzky will present the validated claims in court as individual
reports on March 2, 2007.  Court No. 7 in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Molise 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 Molise's accounting and banking
records will follow on Apr. 18, 2007.

On Oct. 1, 2007, Molise's creditors will vote on a settlement plan that the
company will lay on the table.

Clerk No. 14 assists the court in the proceeding.

The debtor can be reached at:

          Molise S.A.
          Cordoba 1184
          Buenos Aires, Argentina

The trustee can be reached at:

          Eduardo Salomon Zalutzky
          Lavalle 1523
          Buenos Aires, Argentina


TANANA Y CIA: Seeks for Court Approval to Reorganize Business
-------------------------------------------------------------
Court No. 13 in Buenos Aires is studying the merits of Tanana y Cia.
S.R.L.'s petition to reorganize its business after it stopped paying its
obligations on December 2005.

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

Clerk No. 25 assists the court in the case.

The debtor can be reached at:

          Tanana y Cia. S.R.L.
          Avenida Santa Fe 5235
          Buenos Aires, Argentina


VALEANT: Restatement News Cues S&P to Place Ratings on NegWatch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on Costa Mesa,
CA.-based Valeant Pharmaceuticals International, including Valeant's 'BB-'
corporate credit rating, on CreditWatch with negative implications.

"The rating actions follow the specialty pharmaceutical company's
announcement that it does not expect to file its Form 10-Q for third-quarter
2006 by the filing date," said Standard & Poor's credit analyst Arthur Wong.
"The delay is attributed to the company's need to restate its financials,
possibly as far back as 1997, due to errors in accounting for stock option
grants."

A Valeant board of directors-appointed special committee is still conducting
its review, and the magnitude of the restatements has not yet been
determined.  Valeant was already subject to an informal SEC probe regarding
the issue.  The failure to file its Form 10-Q on time would constitute a
default of reporting requirements under its convertible and high-yield note
agreements that if not cured in 60 days could result in an acceleration of
the amounts outstanding under those notes.

"Standard & Poor's will monitor the cost and ability of Valeant to cope with
this situation before resolving the CreditWatch listing," Mr. Wong said.

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.




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


JETBLUE AIRWAYS: Posts US$628MM Revenues for Third Quarter 2006
---------------------------------------------------------------
JetBlue Airways Corp. reported its results for the third quarter 2006:

   -- Operating revenues for the quarter totaled US$628 million,
      representing growth of 38.7% over operating revenues of
      US$453 million in the third quarter of 2005.

   -- Operating income for the quarter was US$41 million,
      resulting in a 6.6% operating margin, compared to
      operating income of US$14 million and a 3.1% operating
      margin in the third quarter of 2005.

   -- Pre-tax income for the quarter was US$1.3 million,
      compared with a loss of US$3.7 million in the year ago
      period.

   -- Net loss for the quarter was US$0.5 million compared with
      third quarter 2005 net income of US$2.7 million.

"Results this quarter demonstrate our crewmembers' success in their ongoing
focus on cost control, as we work to maximize productivity and
institutionalize low-cost carrier spending habits throughout our airline.
Unfortunately, the revenue environment during the quarter remained
challenging as we continued our new market expansion and saw lower than
expected overall demand due in part to security related concerns," said
David Neeleman, CEO of JetBlue.  "The company has made the prudent decision
to reduce our rate of growth over the next three years through a reduction
in both our Airbus 320 fleet and our EMBRAER 190 fleet.  We believe this
will enable us to be more strategic about our aircraft deployment, generate
a higher level of earnings, strengthen our balance sheet and improve our
cash position.  With revised capacity next year expected to increase between
14 and 17 percent, we remain committed to profitable growth and to bringing
our high quality product to new and existing customers."

Dave Barger, JetBlue's COO and President, commented, "We're excited about
the opportunities ahead following a reduction in our rapid rate of growth.
Importantly, we intend to achieve this revision while working hard to
preserve and improve our internal culture, which remains our single greatest
asset."

During the third quarter of 2006, JetBlue achieved a completion factor of
99.6% of scheduled flights versus 99.4% in the third quarter of 2005.
On-time performance, defined by the US Department of Transportation as
arrivals within 14 minutes of schedule, was 74.6% in the third quarter of
2006 compared to 72.2% for the same period in 2005.  The company attained a
load factor in the third quarter of 2006 of 80.4%, a decrease of 6.2 points
on a capacity increase of 19.0% over the third quarter of 2005.

For the third quarter, yield per passenger mile was 9.72 cents, up 23.5%
compared to 2005. Operating revenue per available seat mile increased 16.5%
year-over-year to 8.33 cents.  Revenue passenger miles increased 10.5% from
the third quarter of 2005 to 6.06 billion. Available seat miles grew 19.0%
to 7.54 billion. Operating expenses for the third quarter were US$587
million, up 33.7% from the third quarter of 2005.  Operating expense per
ASM -- CASM -- for the third quarter 2006 increased 12.3% year-over-year to
7.79 cents, while average stage length decreased 18.2%.  Excluding fuel,
CASM increased 4.7% to 4.98 cents. During the quarter, realized fuel price
was US$2.12 per gallon, a 24.3% increase over third quarter 2005 realized
fuel price of US$1.70.  JetBlue ended the third quarter with US$456 million
in cash and investment securities.

Looking ahead, for the fourth quarter of 2006, JetBlue expects to report an
operating margin between six and eight percent assuming an all-in aircraft
fuel cost per gallon of US$1.94.  Pre-tax margin for the quarter is expected
to be between one and three percent.  Cost per available seat mile or CASM
is expected to increase between six and eight percent over the year-ago
period, at the assumed US$1.94 aircraft fuel cost per gallon.  Excluding
fuel, CASM in the fourth quarter is expected to increase between five and
seven percent year over year. Capacity is expected to increase between 13
and 15 percent in the fourth quarter and stage length is expected to
decrease roughly 18% over the same period last year.

Based in Forest Hills, New York, JetBlue Airways Corp.
(Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger
air transportation services primarily in the United States.  As
of Feb. 14, 2006, the Company operated approximately 369 daily
flights serving 34 destinations in 15 states, Puerto Rico, the
Dominican Republic, and the Bahamas.  The Company also provides
in-flight entertainment systems for commercial aircraft,
including live in-seat satellite television, digital satellite
radio, wireless aircraft data link service, and cabin
surveillance systems and Internet services, through its wholly
owned subsidiary, LiveTV, LLC.

                        *    *    *

Fitch Ratings downgraded on Sept. 17, 2006, the debt ratings of
JetBlue Airways Corp. as:

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

This action affects approximately US$425 million of outstanding
debt.  Fitch said the rating outlook for JetBlue is 'Stable.'


WINN-DIXIE: Files Revised Proposed Confirmation Order
-----------------------------------------------------
In an effort to resolve objections to their Joint Plan of
Reorganization, Winn-Dixie Stores, Inc., and its debtor-
affiliates submitted, for the Hon. Jerry A. Funk's consideration, a revised
proposed order confirming the Plan.

The Debtors ask the U.S. Bankruptcy Court for the Middle District of Florida
to rule that, with respect to the assignment of real property leases to:

   -- Winn-Dixie Stores Leasing, LLC;
   -- Winn-Dixie Raleigh Leasing, LLC;
   -- Winn-Dixie Montgomery Leasing, LLC; and
   -- Winn-Dixie Warehouse Leasing, LLC,

any party with rights under an assigned lease will retain the right to
enforce the terms of the lease directly against the original Debtor-lessee
including, without limitation, by an action to recover money damages.

The action may be brought in any state or federal court provided for by the
lease or, alternatively, any court of competent jurisdiction over the
original Debtor-lessee.

The Plan will not be interpreted in any way to alter or affect
the obligations of any Debtor-guarantor under the existing lease
guaranties.

In addition, the Debtors want the Court to clarify that, as of
the effective date of the Plan, all property of the Reorganized
Debtors will be free and clear of all claims, encumbrances,
interests, charges, and liens except as specifically provided in
Section 365(h) of the Bankruptcy Code, the Plan, or the
Confirmation Order.

A copy of the revised proposed confirmation order is available
for free at http://ResearchArchives.com/t/s?13fb

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed $2,235,557,000 in total assets and
$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 57; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).




=============
B O L I V I A
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* BOLIVIA: Cerro Rico Mine Development Plan Nears Completion
------------------------------------------------------------
Franklin Mining, Inc., disclosed that their developmental plan of the Cerro
Rico Mine is progressing towards completion.

In early 2006, Corporacion Minera de Bolivia aka Comibol, the state-run
mining firm of Bolivia, and Franklin Mining, signed a contract for the area
containing the five veins of the Cerro Rico Mine, the world's largest silver
deposit.  As agreed in the joint venture with Comibol, Franklin Mining is
investing US$140,000 in a developmental plan of the Cerro Rico Mine.  The
plan is scheduled to be completed mid-December 2006 and accomplishes a
variety of milestones including confirming the location and quantity of
veins, ore sizes, and mineral values, environmental study, confirmation of
the required investment, advising proposed scheduling and methods of works,
prospective costs, and profit margins.

"We have been working towards the completion of this study for the last
several months and we are excited at the progress that is being made towards
completion," declared Jaime Melgarejo, President of Franklin Mining, Inc.

Upon review and approval in mid-January 2007, Franklin Mining will move
forward with the commencement of their production plan and Comibol will
participate with Franklin Mining on a 50/50 profit basis after repayment of
capital.

                 About Franklin Mining, Inc.

Franklin Mining currently has interests in Bolivia and the
United States and opened a wholly owned subsidiary in Bolivia.
Franklin Mining, Inc. Bolivian subsidiaries include Franklin
Mining, Bolivia and majority ownership in Franklin Oil & Gas,
Bolivia.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

                     Rating     Rating Date

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


* BOLIVIA: Will Create New State Company
----------------------------------------
The government of Bolivia will create a new state firm, which will be called
the Bolivian Fiscal Oil Deposit Corp., according to a report from Prensa
Latina.

The Bolivian hydrocarbon ministry told Prensa Latina that the move is part
of the restructuring project of the industry's insignia firm, which will be
discussed this week in the congress.

According to Prensa Latina, the proposal establishes that the state firm
participate in the productive and trade chains of the fuels, through
subsidiary companies, in line with the nationalization decree.

Prensa Latina relates that Bolivia Fiscal's headquarters will be located in
La Paz.  It will have a board of directors composed of a delegate from each
producing department and government representatives of the defense,
hydrocarbon, planning, and presidential ministries.

The project establishes that Bolivia Fiscal will absorb, as subsidiary
firms, the refining stations of Petroleo Brasileiro and transportation of
fuels and logistics, Prensa Latina states.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

                     Rating     Rating Date

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




===========
B R A Z I L
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BANCO NACIONAL: Okays BRL80MM for Santa Rosa Hydroelectric Plant
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social told Business News
Americas that it has authorized a BRL80-million loan to help Santa Rosa
construct a hydroelectric plant in Rio de Janeiro.

BNamericas relates that Banco Nacional ratified the funding as part of
Proinfa, the renewable power incentive program of the federal government.

Banco Nacional said in a statement that Santa Rosa will build the
BRL180-million, 30-megawatt plant in Bom Jardim and Cordeiro.

Construction of the project started in March.  Works for the plant is slated
to end between November and December next year, BNamericas says, citing an
official from Engevix, a Brazilian engineering firm that controls Santa
Rosa.

The official told BNamericas that Banco Nacional also approved the funding
of the construction of Engevix's other projects, which include:

          -- 22-megawatt Esmeraldas in Rio Grande do Sul, and
          -- 15-megawatt Santa Laura in Santa Catarina.

Esmeraldas will launch operations in November while Santa Laura will start
running in 2007, BNamericas says, citing the official.

Centrais Eletricas Brasileiras SA will buy electricity from the three plants
under a 20-year accord, BNamericas states.

                        *    *    *

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 SA 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.


BUCKEYE TECH: Incurs US$0.3MM of Net Loss in Third Quarter 2006
---------------------------------------------------------------
Buckeye Technologies Inc. earned US$3.8 million after tax (10 cents per
share) in the quarter ended Sept. 30, 2006. During the same quarter of the
prior year, the company incurred a net loss of US$0.3 million after tax (1
cent per share) which included US$1.2 million after tax (3 cents per share)
in restructuring expenses associated with last year's closure of our
Glueckstadt, Germany cotton linter pulp plant.

Net sales in the just completed quarter were US$191.4 million, 16% above the
US$165.5 million achieved in the same quarter of the prior year.

Buckeye Chairman, John B. Crowe, commented, "Our sales of non-woven
materials and specialty fibers products were strong during the quarter as we
continued to see market conditions like we did in the April-June quarter.
The biggest driver of the increase in sales over a weak July-Sept.  quarter
last year was higher shipment volume, but our sales also benefited from
increased pricing and improved shipment mix. Particularly pleasing were the
record sales, volumes and operating income delivered by our non-woven
segment."

Mr. Crowe went on to say, "Strong operating results, working capital
reduction and low capital spending allowed us to reduce debt by US$24
million during the quarter. We now have less than US$500 million of debt on
the balance sheet, which is a milestone for us."

Buckeye, a leading manufacturer and marketer of specialty fibers and
non-woven materials, is headquartered in Memphis, Tenn.  The Company
currently operates facilities in the United States, Germany, Canada, and
Brazil. Its products are sold worldwide to makers of consumer and industrial
goods.

Headquartered in Memphis, Tennessee, Buckeye Technologies, Inc.
(NYSE:BKI) -- http://www.bkitech.com/-- is a leading
manufacturer and marketer of specialty fibers and non-woven
materials.  The Company currently operates facilities in the
United States, Germany, Canada, and Brazil.  Its products are
sold worldwide to makers of consumer and industrial goods.

                        *    *    *

As reported in the Troubled Company Reporter on March 9, 2006,
Standard & Poor's Ratings Services revised its outlook on
Buckeye Technologies Inc. to negative from stable.  At the same
time, Standard & Poor's affirmed its ratings, including the
'BB-' corporate credit rating, on the Memphis, Tennessee-based
specialty pulp producer.


CENTRAIS ELECTRICAS: Will Buy Electricity from Santa Rosa
---------------------------------------------------------
Centrais Eletricas Brasileiras SA will purchase electricity from Engevix
Engenharia's three plants under a 20-year accord, Business News Americas
reports.  Engevix is an engineering company in Brazil.

BNamericas says the three plants, which are still being constructed,
includes:

          -- 30-megawatt plant in Rio de Janeiro,
          -- 22-megawatt Esmeraldas in Rio Grande do Sul, and
          -- 15-megawatt Santa Laura in Santa Catarina.

Banco Nacional de Desenvolvimento Economico e Social told BNamericas that it
has authorized a BRL80-million loan to help generator Santa Rosa, which is
run by Engevix, construct a hydroelectric plant in Rio de Janeiro.

BNamericas relates that Banco Nacional ratified the funding as part of
Proinfa, the renewable power incentive program of the federal government.

Banco Nacional said in a statement that Santa Rosa will build the
BRL180-million, 30-megawatt plant in Bom Jardim and Cordeiro.

Construction of the project started in March.  Works for the plant is slated
to end between November and December next year, BNamericas says, citing an
official from Engevix.

The official told BNamericas that Banco Nacional also approved the funding
of the construction of Esmeraldas and Santa Laura.

Esmeraldas will launch operations in November while Santa Laura will start
running in 2007, BNamericas says, citing the official.

                        *    *    *

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

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


FERRO CORP: Reports US$16.2MM Net Income for Year Ended Dec. 31
---------------------------------------------------------------
Ferro Corp. reported US$16.2 million of net income for the
year ended Dec. 31, 2005, compared to US$24.9 million of net income earned
in the prior year.

Sales from continuing operations for the year ended
Dec. 31, 2005, of US$1,882.3 million were 2.1% higher than for the
comparable 2004 period.  Improved pricing and more favorable product mix in
North America, Asia-Pacific and Latin America were the primary drivers for
the revenue gain.  Weakness in the market for multiplayer capacitors
depressed unit demand and revenues, particularly in the first half of 2005.
On a consolidated basis, the impact of strengthening foreign currencies
versus the U.S. dollar had only a minimal positive impact on revenues.

The Company's balance sheet at Dec. 31, 2005, showed US$1.66 billion in
total assets, US$1.17 billion in total liabilities, total shareholders'
equity of US$468,091 and Series A convertible preferred stock of US$20.4
million.

At Dec. 31, 2005, the Company had a US$300 million revolving credit facility
that was scheduled to expire in September 2006, as well as US$200 million of
senior notes and US$155 million of debentures outstanding with varying
maturities, the majority of which extended beyond 2010.  The Company also
had an accounts receivable securitization facility under which the Company
could receive advances of up to US$100 million, subject to the level of
qualifying accounts receivable.

Subsequent to Dec. 31, 2005, the Company replaced or modified its existing
facilities to secure future financial liquidity.  The US$300 million
revolving credit facility was replaced by a
US$700 million credit facility, consisting of a US$250 million
multi-currency senior revolving credit facility expiring in 2011 and a
US$450 million senior delayed-draw term loan facility expiring in 2012.  In
addition, the Company extended its US$100 million accounts receivable
securitization facility for up to three additional years.

The Company expects to file its 2005 reports on Form 10-Q for the quarters
ending March 31, June 30 and Sept. 30, 2005 by the end of October.  With the
completion of the 2005 financial filings, the Company will then focus on the
completion of its Form 10-Q filings for the first three quarters of 2006,
and expects to file these reports with the SEC by the end of 2006.

A full-text copy of the Company's annual report is available for
free at http://researcharchives.com/t/s?1362

                      About Ferro Corp.

Headquartered in Cleveland, Ohio, Ferro Corp. --
http://www.ferro.com-- supplies technology-based performance
materials for manufacturers.  Ferro materials enhance the
performance of products in a variety of end markets, including
electronics, telecommunications, pharmaceuticals, building and
renovation, appliances, automotive, household furnishings, and
industrial products.  The Company has approximately 6,800
employees globally.  In Latin America, the company has
operations in Argentina, Brazil, Mexico and Venezuela.

                        *    *    *

Standard & Poor's Ratings Services' 'B+' long-term corporate
credit and 'B' senior unsecured debt ratings on Ferro Corp.
remains on CreditWatch with negative implications, where they
were placed Nov. 18, 2005.


MERCANTIL DO BRASIL: Launches First Branch in Cayman Islands
------------------------------------------------------------
Banco Mercantil do Brasil said in a statement that it has launched its first
branch in the Cayman Islands.

Marco Aurellio Canado, Banco Mercantil's executive director of international
finance, told Business News Americas, "Our objective is to increase the
bank's international business division."

Banco Mercantil returned to international capital markets in 2004 after a
10-year absence, BNamericas notes, citing Mr. Canado.  The company has since
made five issues, including four dollar-denominated ones for US$240 million
and one eurobond issue for EUR21.5 million.

BNamericas underscores that Banco Mercantil last placed US$125 million in
three-year bonds on the Dublin stock exchange in September as part of its
US$300 million international bond program.

Scotiabank will help coordinate Banco Mercantil's global operations as the
latter will not send officials to the Cayman Islands for at least five
years, Mr. Canado told BNamericas.

                        *    *    *

Moody's Ratings Service placed these ratings on Banco Mercantil
do Brasil SA:

          -- B1 long-term bank deposit rating; and
          -- E+ bank financial strength rating.


NET SERVICOS: Posts BRL500.7M Net Revenue for Third Quarter 2006
----------------------------------------------------------------
Net Servicos de Comunicacao S.A. reported that in the third quarter 2006,
Pay-TV and Broadband subscriber base growth remained consistent with the
company's strategy of growing at a faster pace, maximizing market
opportunities and a more stable economy in terms of disposable income.
Pay-TV and Broadband subscriber base increased by 15.5% and 108.7% over a
year ago, respectively.

As a result of the organic growth, net revenue ended the third quarter at
BRL500.7 million, 22.1% above the BRL410.0 million posted in 3Q05. In the
same period, client ARPU grew from BRL113.94 in 3Q05 to BRL121.34 this
quarter, corresponding to a 6.49% rise.

Following its subscriber expansion strategy while still focusing on return
on investment, Net Servicos has been maintaining its EBITDA margin at around
26%.  Consolidated EBITDA reached BRL129.5 million, 20.8% higher than the
BRL107.1 million result posted in 3Q05. EBITDA before selling expenses grew
by 28.9%, from BRL135.7 million to BRL174.8 million this quarter.

Net debt ended the quarter at BRL378.2 million and the Net debt to EBITDA
ratio remained at 0.78x.  Net Servicos' operations are generating sufficient
cash to support the necessary investment for the 12 coming months expected
growth and to meet financial obligations, thus allowing this low financial
leverage.

Net Servicos recorded net income of BRL24.6 million in the third quarter,
versus the BRL20.6 million net loss recorded in the same period of last
year.

Headquartered in Sao Paulo, Brazil, NET Servicos de Comunicacao
-- http://Nettv.globo.com/NETServ/br/home/indexNet.jsp?id=1--
is the largest subscriber TV multi-operator in Brazil, as it
operates the NET brand in major cities, including operations in
the 4 largest cities: Sao Paulo, Rio de Janeiro, Belo Horizonte
and Porto Alegre.

NET also offers Broadband InterNet services through its NET
VIRTUA brand name.

                        *    *    *

Moody's America Latina assigned on May 22, 2006, a Baa2.br
Brazilian National Scale Rating and a B1 Global Local Currency
Rating to Net Servicos de Comunicacao S.A.'s BRL650 million
debentures due in 2011 issued in September 2005.  Concurrently,
Moody's Investors Service affirmed Net's B1 global local
currency scale corporate family rating.  Moody's said the ratings outlook is
stable.

                        *    *    *

As reported in the Troubled Company Reporter on March 15, 2006,
Standard & Poor's Rating Services raised on its foreign and
local currency corporate credit ratings on Brazilian cable pay-
TV and broadband operator Net Servicos de Comunicacao S.A to
'BB-' from 'B+'.  The Brazil National Scale rating assigned to
NET and its BRL650 million debentures due 2011 was also revised
to 'brA' from 'brBBB+'.  S&P said the outlook on the ratings was
revised to stable from positive.


PETROLEO BRASILEIRO: Paying BRL4.387B of Interest on Own Capital
----------------------------------------------------------------
Petroleo Brasileiro S.A. aka Petrobras's board of directors approved a
BRL4.387 billion payment to shareholders in the form of interest on own
capital.  The amount, corresponding to a gross value of BRL1.00 per common
and preferred shares, is being accrued in the company's financial statements
on Sept. 30, 2006, and will be disbursed by Jan. 15, 2007, based on the
shareholding position as of Oct. 31, 2006.

If payment occurs after Dec. 31, 2006, interest based on the SELIC rate will
be payable from Dec. 31, 2006 through the effective payment date. The shares
will be negotiated ex-interest on capital from Nov. 1, 2006. This interest
on capital will be offset against any remuneration payable at the close of
the 2006 fiscal year and will be subject to income tax of 15% withheld at
source except in the case of shareholders who are exempt.

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.


PETROLEO BRASILEIRO: Posts Daily Oil Output of 1.9-Mil. Barrels
---------------------------------------------------------------
Petroleo Brasileiro, the state-run oil company of Brazil, said in a press
release that it has attained a new production record of 1.913 million
barrels of oil per day, which is 30,000 barrels per day more than the 1.882
million barrels daily recorded in May.

Dow Jones Newswires relates that the new record was obtained mainly due to
maintenance on land oil fields as well as the start of production at three
new oil wells at the Albacora Leste field in the Campos Basin.

Petroleo Brasileiro told Dow Jones that with the new wells, the P-50 rig
that pumps from the Albacora Leste field now produces about 150,000 barrels
per day.

Petroleo Brasileiro said that in the coming weeks, the P-50 likely will
reach its full production capacity of 180,000 barrels per day, Dow Jones
notes.

Dow Jones underscores that if production boost were to be constant, Petroleo
Brasileiro's output would finally surpass Brazil's estimated daily oil
product consumption of about 1.85 million barrels per day.

Petroleo Brasileiro expects its daily oil production in the country to be at
2 million barrels per day by the end of the year for the first time as two
more programs will be implemented, Dow Jones says.

Dow Jones emphasizes that Petroleo Brasileiro will likely begin production
in November at its P-34 rig, which is expected to produce 60,000 barrels per
day from the Jubarte field.

Petroleo Brasileiro will launch in December production at the 100,000-barrel
per day FPSO Cidade do Rio de Janeiro, which will pump from the Espardarte
field, Dow Jones states.

Headquartered in Rio de Janeiro, Brazil , Petroleo Brasileiro
S.A. aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp-- 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.

Petrobras has operations in China, India, Japan, and Singapore.

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.


TRANSAX INT'L: Surprised by Significant Decline in Share Price
--------------------------------------------------------------
Transax International Ltd. commented on the trading activity of its common
stock on Oct. 23, 2006.

Transax International knows of no adverse issues relating to its operations
that would cause the volatile movement in its share price and significant
increase in trading volume.  The financial fundamentals of the company have
not changed.

Stephen Walters, President & CEO of Transax, commented, "We are all
surprised by the recent significant decline in our share price.  I remind
all our investors that we have recently pre-announced another record quarter
in both revenue and transaction growth.  As of the close of business on
October 23, 2006, the market capitalization of Transax was roughly half of
the company's anticipated 2006 revenue."  Mr. Walters continued, "We also
continue to respond to the recent unsolicited interested expressed to us for
our Brazilian operations, MedLink.  We view all these recent developments as
positive steps forward for our organization."

Based in Miami, Florida, Transax International Limited (OTCBB:
TNSX) -- http://www.transax.com/-- provides health information
management systems to hospitals, physicians and health insurance
companies.  The Company's subsidiaries, TDS Telecommunication
Data Systems LTDA provides services in Brazil; Transax Australia
Pty Ltd. operates in Australia; and Medlink Technologies Inc.
initiates research and development.

                        *    *    *

Transax International Limited's balance sheet at June 30, 2006
showed a US$3,717,316 total stockholders' deficit from total
assets of US$2,196,551 and total liabilities of US$5,913,867.

Transax International's balance sheet at June 30, 2006, also
showed negative working capital with US$1,085,530 in total
current assets and US$4,943,668 in total current liabilities.




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


AQUARIUM (IFI): Liquidator to Present Wind Up Account on Nov. 15
----------------------------------------------------------------
Aquarium (IFI) Ltd.'s final shareholders meeting will be at 10:30 a.m. on
Nov. 15, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Bonnie Willkom
          P.O. Box 1111
          Grand Cayman, Cayman Islands
          Tel: (345)-949-5122
          Fax: (345)-949-7920


BRITANNIA HOLDINGS: Final Shareholders Meeting Is on Nov. 14
------------------------------------------------------------
Britannia Holdings Ltd.'s final shareholders meeting will be at 11:00 a.m.
on Nov. 14, 2006, at:

          Maricorp Services Ltd.
          31 The Strand, 46 Canal Point Road
          P.O. Box 2075
          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:

          Maricorp Services Ltd.
          Attn: Roger Nelson
          31 The Strand, 46 Canal Point Road
          P.O. Box 2075
          Grand Cayman, Cayman Islands
          Tel: (345) 949 9710


CANDID IAM: Invites Shareholders for Final Meeting on Nov. 15
-------------------------------------------------------------
Candid IAM Ltd.'s final shareholders meeting will be at 11:30 a.m. on Nov.
15, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Bonnie Willkom
          P.O. Box 1111
          Grand Cayman, Cayman Islands
          Tel: (345)-949-5122
          Fax: (345)-949-7920


HAVERFORD (IMA): Shareholders Gather for Last Meeting on Nov. 15
----------------------------------------------------------------
Haverford (IMA) Ltd.'s final shareholders meeting will be at 9:00 a.m. on
Nov. 15, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Bonnie Willkom
          P.O. Box 1111
          Grand Cayman, Cayman Islands
          Tel: (345)-949-5122
          Fax: (345)-949-7920


ICEBERG (IFI): Shareholders Gather for Final Meeting on Nov. 15
---------------------------------------------------------------
Iceberg (IFI) Ltd.'s final shareholders meeting will be at 9:30 a.m. on Nov.
15, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Bonnie Willkom
          P.O. Box 1111
          Grand Cayman, Cayman Islands
          Tel: (345)-949-5122
          Fax: (345)-949-7920


IRONWOOD IAM: Final Shareholders Meeting Is Set for Nov. 15
-----------------------------------------------------------
Ironwood IAM Ltd.'s final shareholders meeting will be at 11:00 a.m. on Nov.
15, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Bonnie Willkom
          P.O. Box 1111
          Grand Cayman, Cayman Islands
          Tel: (345)-949-5122
          Fax: (345)-949-7920


KOFOO INC: Shareholders Convene for Final Meeting on Nov. 14
------------------------------------------------------------
Kofoo, Inc.'s final shareholders meeting will be on
Nov. 14, 2006, at:

          Caledonian House
          69 Dr. Roy's Drive, 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:

          Griffin Management Limited
          Caledonian Bank & Trust Limited
          Caledonian House
          P.O. Box 1043
          Grand Cayman, Cayman Islands


LEATHER INVESTMENTS: Sets Final Shareholders Meeting on Nov. 14
---------------------------------------------------------------
Leather Investments Ltd.'s final shareholders meeting will be at 10:00 a.m.
on Nov. 14, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Bonnie Willkom
          P.O. Box 1111
          Grand Cayman, Cayman Islands
          Tel: (345)-949-5122
          Fax: (345)-949-7920


MINIMAX INVESTMENTS: Last Shareholders Meeting Is on Nov. 14
------------------------------------------------------------
Minimax Investments Ltd.'s final shareholders meeting will be at 9:00 a.m.
on Nov. 14, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Bonnie Willkom
          P.O. Box 1111
          Grand Cayman, Cayman Islands
          Tel: (345)-949-5122
          Fax: (345)-949-7920


PEACE TECHNOLOGY: Last Day to File Proofs of Claim Is on Nov. 14
----------------------------------------------------------------
Peace Technology Fund Ltd.'s creditors are required to submit proofs of
claim by Nov. 14, 2006, to the company's liquidators:

          Scott Stupay
          Ofer Neeman
          Walker House
          87 Mary Street, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Nov. 14 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Peace Technology's shareholders agreed on Sept. 28, 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:

           Mark Holligon
           Walker House
           87 Mary Street, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 814 4659
           Fax: (345) 814 8339


REVIVAL (IMA): Calls Shareholders for Final meeting on Nov. 15
--------------------------------------------------------------
Revival (IMA) Ltd.'s final shareholders meeting will be at 10:00 a.m. on
Nov. 15, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Bonnie Willkom
          P.O. Box 1111
          Grand Cayman, Cayman Islands
          Tel: (345)-949-5122
          Fax: (345)-949-7920


RINCON LEASING: Creditors Must File Proofs of Claim by Nov. 15
--------------------------------------------------------------
Rincon Leasing Ltd.'s creditors are required to submit proofs of claim by
Nov. 15, 2006, to the company's liquidators:

          David A.K. Walker
          Lawrence Edwards
          PwC Corporate Finance & Recovery (Cayman) Limited
          Strathvale House, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Nov. 15 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Rincon Leasing's shareholders agreed on July 12, 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) 949 4590


SEAGATE TECH: Reports US$2.8B Revenue for Quarter Ended Sept. 29
----------------------------------------------------------------
Seagate Technology reported revenue of US$2.8 billion, GAAP net income of
US$59 million, and diluted earnings per share of US$0.10 for the quarter
ended Sept. 29, 2006.

Included in the US$2.8 billion of revenue is approximately US$344 million
from legacy Maxtor designed products.  Net income and diluted earnings per
share includes approximately US$82 million of charges directly associated
with the Maxtor acquisition.  Excluding acquisition related charges and a
favorable adjustment to a pre-existing restructuring reserve of US$4
million, non-GAAP net income and diluted earnings per share were US$137
million and US$0.23.

In the year-ago quarter, Seagate reported revenue of US$2.09 billion, GAAP
net income of US$272 million and diluted earnings per share of US$0.54.

"Seagate delivered another strong performance in the Sept. quarter,
reflecting our leadership position in a marketplace characterized by
continued healthy growth in demand for storage," said Bill Watkins, Seagate
chief executive officer.  "I'm pleased that we achieved the results we
outlined for the quarter.  Our integration of Maxtor continues ahead of
schedule, allowing us to complete the customer transition to more
cost-effective Seagate products during the December quarter."

"During the quarter, we continued to see an aggressive pricing environment
in the notebook and desktop markets, resulting from what we believe are
competitors who seem intent on trying to capture market share without regard
to profitability.  I'm pleased, particularly in the face of this
environment, with the revenue retention we have achieved, and we are
confident in our ability to continue to reduce cost and improve
profitability throughout the year.  As the leading manufacturer in the disc
drive industry, we are operating from a position of strength, from both a
cost and product leadership perspective.  Moving forward, while we remain
committed to pricing discipline, we intend to maintain our current share
position, and will manage our pricing strategy accordingly."

The average selling price, on a blended basis, decreased approximately
US$4.00 from the June quarter.  In aggregate, price decreases on a "like for
like" product basis during the September quarter were in excess of 6%, which
was in line with the company's expectations at the beginning of the quarter.

                      Business Outlook

For fiscal year 2007, excluding acquisition related costs but including
Maxtor's operating results, Seagate now expects US$11.4-11.8 billion in
revenue and US$1.70-1.80 for Non-GAAP diluted earnings per share. Including
approximately US$210 million of expected acquisition related costs and US$18
million of fees associated with the early redemption of the 8% notes, GAAP
diluted earnings per share would be US$1.35-US$1.45. The company's adjusted
revenue and earnings outlook for fiscal 2007 reflects a pricing environment
in the desktop and notebook markets that became more aggressive at the end
of the September quarter, thus impacting pricing for subsequent quarters.

In the second half of its fiscal year, Seagate will benefit from new
products, new market opportunities and the completion of the Maxtor
integration.

For the December quarter, Seagate expects to report revenue of US$2.8-3.0
billion, and diluted earnings per share of US$0.30-0.34, excluding
acquisition related costs but including Maxtor's operating results.
Included in the company's outlook for the December quarter is an unfavorable
impact to gross margin and earnings of approximately US$30 million of
unplanned costs associated with legacy Maxtor drives. GAAP diluted earnings
per share for the December quarter, including approximately US$60 million of
expected acquisition related costs and US$18 million of fees associated with
the early redemption of the 8% notes, would be US$0.17-0.21.

                Dividend and Stock Repurchase

The board of directors has approved an increase in the quarterly dividend
from US$0.08 to US$0.10 per share.  The company has declared the quarterly
dividend to be paid on or before
Nov. 17, 2006, to all common shareholders of record as of
Nov. 3, 2006.

During the quarter ended Sept. 29, 2006, the company repurchased 6.7 million
common shares worth approximately US$150 million. The company has
approximately US$2.35 billion available under the current authorized stock
repurchase program.

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

                        *    *    *

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

Moody's confirmed these ratings:

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

Moody's upgraded these ratings:

   Seagate Technology HDD Holdings:

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




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


GOODYEAR: S&P Puts B- Ratings on Trust Certs. on Negative Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B-' ratings on Corporate
Backed Trust Certificates Goodyear Tire & Rubber Note-Backed Series 2001-34
Trust's class A-1 and A-2 certificates on CreditWatch with negative
implications.

The CreditWatch placements follow the Oct. 16, 2006, placement of the
ratings assigned to Goodyear Tire & Rubber Co. on CreditWatch with negative
implications.  Corporate Backed Trust Certificates Goodyear Tire & Rubber
Note-Backed Series 2001-34 Trust is a swap-independent synthetic transaction
that is weak-linked to the underlying securities, Goodyear Tire & Rubber
Co.'s 7% notes due March 15, 2028.

Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Co.
(NYSE: GT) -- http://www.goodyear.com/-- manufactures tires,
engineered rubber products and chemicals in more than 90
facilities in 28 countries.  It has marketing operations in
almost every country around the world including Chile, Colombia
and Guatemala in Latin America.  Goodyear employs more than
80,000 people worldwide.


PHELPS DODGE: Posts US$888 Million Third Quarter 2006 Profit
------------------------------------------------------------
Phelps Dodge reported that its net profit increased 143% to US$888 million
in the third quarter of 2006, compared with the third quarter of 2005,
mainly due to increasing metal prices.

Steven Whisler, the chief executive officer of Phelps Dodge, said in a
statement, "Phelps Dodge continues to benefit from strong market
fundamentals for copper and molybdenum, and delivered another strong
quarterly operating performance and robust cash flows."

Business News Americas relate that Phelps Dodge's sales and other operating
revenues increased to US$3.46 billion in the third quarter if 2006, from the
US$2.18 billion recorded in the same period of 2005.

Copper prices averaged US$3.479 per pound, compared with the US$1.704 per
pound on the London Metal Exchange over the two quarters, BNamericas notes.

According to BNamericas, copper production was lower due to the heavy rain
on operations in southwest United States, slightly offset by higher
production at Phelps Dodge's South American mines.

Phelps Dodge, says BNamericas, posted consolidated copper output of 301,800
short tons in the third quarter of 2003, compared with the 304,200 short
tons in the third quarter of 2005.

BNamericas underscores that Candelaria, Phelps Dodge's mine in Chile,
reported that production increased to 52,500 short tons in the third quarter
of 2006, from the 52,100 short tons in the same period of 2005.

El Abra, another mine of Phelps Dodge in Chile, said that its production
increased to 61,300 short tons in the third quarter of 2006, compared with
the 55,800 short tons in the same period of 2005, according to BNamericas.

BNamericas emphasizes that Phelps Dodge's Cerro Verde copper mine in Peru
recorded an output of 27,000 short tons in the third quarter of 2006,
compared with the 26,600 short tons in the third quarter of 2005.

Arthur Miele, Phelps Dodge's senior vice president in marketing, told
BNamericas that the firm expects an average copper price of US$3.30 per
pound or higher for the fourth quarter of 2006, and about US$3.10 per pound
or higher for 2006.

Phelps Dodge foresees a balanced to modest surplus in the copper market nest
year.  But this could tip into a deficit if supply disruptions continue,
BNamericas says, citing Mr. Miele.

Mr. Miele said that as a result copper prices should moderate but remain
historically high.  Phelps Dodge agrees with the consensus opinion of an
average copper price of US$2.50 per pound or higher in 2007, BNamericas
relates.

Mr. Whisler told BNamericas, "We obviously feel very good about where metal
markets are. Everything indicates continued strength in those markets."

Tim Snider, the Phelps Dodge COO, told BNamericas that the firm's strong
project pipeline includes the US$850-million Cerro Verde expansion that is
on budget and schedule.  The first half of the expansion will come on stream
in the fourth quarter of 2006 and the second half in the first quarter of
next year.

According to the report, the Cerro Verde sulfide mill expansion project will
add 200,000 short tons of copper output to oxide solution
extraction/electrowinning operations.

BNamericas states that the expansion in the first five years will contribute
extra 230,000 short tons of copper per year on average to provide total
average output of 325,000 short tons annually.

Cerro Verde in the first 10 years will average 290,000 short tons per year,
of which 210,000 short tons will come from the expansion, BNamericas says,
citing Phelps Dodge.

Mr. Snider told BNamericas that engineering studies continue on the sulfide
development project at Phelps Dodge's El Abra copper mine.

"We will time the project to allow for the smooth transition from oxides to
sulfides in the 2009-10 period," BNamericas says, citing Mr. Snider.

Phelps Dodge -- http://www.phelpsdodge.com/-- is among the
world's largest producers of molybdenum, molybdenum-based
chemicals, and manufacturer of wire and cable products.

Phelps Dodge has mining operations in Chile, Peru, Colombia,
Venezuela and Ecuador, among others.

                        *    *    *

On June 26, 2006, Moody's Investors Services has placed Phelps
Dodge's Ba1 junior preferred shelf rating in CreditWatch for a
possible downgrade.


PHELPS DODGE: Declares US$0.20 Per Common Share Dividend
--------------------------------------------------------
Phelps Dodge Corp. has declared a dividend of 20 cents per share on the
common shares of the corporation.  The dividend is payable on Dec. 1, 2006,
to common shareholders of record at the close of business on Nov. 16, 2006.

                     About Phelps Dodge

Phelps Dodge -- http://www.phelpsdodge.com/-- is among the
world's largest producers of molybdenum, molybdenum-based
chemicals, and manufacturer of wire and cable products.

Phelps Dodge has mining operations in Chile, Peru, Colombia,
Venezuela and Ecuador, among others.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 12, 2006, Moody's
Investors Service confirmed Phelps Dodge's Baa2 senior unsecured debt rating
and revised its outlook to positive.  The outlook was stable prior to the
ratings being placed under review.

Moody's also confirmed these ratings:

     -- Junior Preferred Stock Shelf, Confirmed at (P)Ba1
     -- Junior Subordinated Shelf, Confirmed at (P)Baa3
     -- Preferred Stock Shelf, Confirmed at (P)Ba1
     -- Preferred Stock 2 Shelf, Confirmed at (P)Ba1
     -- Senior Unsecured Regular Bond/Debenture, Confirmed at
        Baa2
     -- Senior Unsecured Shelf, Confirmed at (P)Baa2




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


ANIXTER INT: Reports US$76.2MM Net Income for Third Quarter 2006
----------------------------------------------------------------
Anixter International Inc. reported results for the quarter ended Sept. 29,
2006.

                  Third Quarter Highlights

   -- Record quarterly sales of US$1.33 billion, including
      US$13.6 million from the acquisition of IMS, Inc., in
      May 2006, rose 32% compared with sales of US$1.01 billion
      in the year ago quarter.

   -- Quarterly operating income of US$96.1 million reflected a
      97% increase from the US$48.9 million reported in the
      third quarter of 2005.

   -- Inclusive of US$22.8 million of income, or 53 cents per
      share, arising from a tax settlement with the Internal
      Revenue Service, net income in the quarter increased 204%,
      to US$76.2 million, or US$1.76 per share, from US$25.1
      million, or 62 cents per share, in last year's third
      quarter.

   -- Third quarter copper prices averaged US$3.54 per pound
      versus US$1.70 per pound in the year ago quarter.  This
      increase added an estimated US$68 million to sales,
      US$18 million to operating income, US$11 million to net
      income and 25 cents to earnings per share as compared
      with the year ago quarter.

Robert Grubbs, President and CEO, said, "Our focus on supply chain services
and our continued progress in the security and OEM markets, along with solid
growth in our core markets, produced record sales and operating results in
the third quarter.  As has been the case over the past several quarters,
third quarter growth was broad-based across all the geographies and markets
we serve."

                  Third Quarter Results

For the three-month period ended Sept. 29, 2006, sales of US$1.33 billion
produced net income of US$76.2 million, or US$1.76 per diluted share.
Included in the current year's third quarter results were sales of US$13.6
million from the acquisition of IMS in May 2006.  The current quarter
results include US$22.8 million, or 53 cents per diluted share, of income
primarily associated with a refund to be received from the U. S. Internal
Revenue Service resulting from the final settlement of income taxes covering
the period of 1996 through 1998.  The interest income portion of this
settlement of US$7.7 million (after-tax impact of US$4.7 million) is
reflected on the income statement on the other, net line.  The remaining
portion of the settlement is recorded as an US$18.1 million reduction to the
tax provision.  In the prior year period, sales of US$1.01 billion generated
net income of US$25.1 million, or 62 cents per diluted share.

Operating income in the third quarter increased 97% to US$96.1 million as
compared with US$48.9 million in the year ago quarter.  For the latest
quarter, operating margins were 7.2% as compared with 4.8% in the third
quarter of 2005.

                     Nine-Month Results

For the nine-month period ended Sept. 29, 2006, sales of US$3.64 billion
produced net income of US$156.9 million, or US$3.66 per diluted share.  When
compared with the first nine months of the prior year, 2006 year-to-date
sales were favorably affected by US$165.4 million related to the
acquisitions of Infast in July 2005 and IMS in May 2006. The nine-month
results include the same described effects as those noted above related to
the tax settlement with the Internal Revenue Service for the third quarter.
In the prior year period, sales of US$2.82 billion produced net income of
US$69.9 million, or US$1.74 per diluted share.

Operating income in the first nine months of fiscal 2006 increased 83% to
US$246.7 million as compared with US$134.7 million in the year ago period.
Operating margins in the first nine months of 2006 were 6.8% as compared
with 4.8% in the prior year period.

                 Third Quarter Sales Trends

Commenting on third quarter sales trends, Mr. Grubbs said, "Sales in the
third quarter grew at a year-over-year organic rate of 28% after adjusting
for the IMS acquisition and the favorable foreign exchange impact of US$21.1
million on third quarter sales.  The year-over-year organic growth clearly
exceeded our target of 8 to 12%, as we again saw very strong customer demand
across a broad mix of our business."

Mr. Grubbs continued, "The factors driving our organic growth were
consistent with those we have seen the past few quarters.  In the most
recent quarter, we saw very strong growth in larger project business,
particularly as it relates to data center builds in the enterprise cabling
market and energy and natural resources customers within our electrical and
electronic wire & cable market.  At the same time, we have continued to
experience strong growth in the security and OEM markets.  Lastly, rising
copper prices continued to contribute to our organic growth in the most
recent quarter.  During the quarter, market-based copper prices averaged
approximately US$3.54 per pound, compared with US$1.70 per pound in the year
ago third quarter and US$3.39 per pound in the second quarter of 2006.  We
estimate that the higher copper prices accounted for an estimated US$68
million of our year-on-year quarterly increase in sales within the
electrical wire & cable market.  After taking out the impact of copper
prices, the IMS acquisition and foreign exchange, however, we were still
able to grow sales by nearly 22 percent over the prior year third quarter.

"Specifically, in North America we saw year-over-year sales grow by 33
percent to US$991.7 million in the most recent quarter.  In addition to
strong end-market demand, North American sales were up US$10.8 million due
to the stronger Canadian dollar, US$13.6 million due to the acquisition of
IMS, and an estimated US$63 million due to higher copper prices," commented
Mr. Grubbs.

"In Europe, we saw sales climb by 26 percent as compared with the year ago
quarter, of which US$10.6 million was due to exchange rate differences and
US$5 million was due to higher copper prices in the electrical wire & cable
business.  Without exchange rate differences and copper effects, sales in
Europe still grew organically by 18% as compared with the year ago quarter."

"In the emerging markets of Latin America and Asia Pacific, we saw a 39%
increase in year-on-year sales, with a negligible impact from currency
exchange rate effects.  Growth was strong throughout the segment as both
Asia Pacific and Latin America posted year-on-year growth rates in excess of
38 percent," continued Mr. Grubbs.

              Third Quarter Operating Results

"As a result of very strong sales growth, third quarter operating margins
were 7.2% as compared with 4.8% in the year ago period," said Mr. Grubbs.
"In North America, the 33% sales growth resulted in better operating
leverage, which generated operating margins of 7.8 percent as compared with
5.7% in the prior year third quarter.  While strong market conditions and
market share gains were the primary drivers of the sales growth and improved
profitability, copper prices again played a meaningful part in the strong
third quarter operating results.  As noted, copper prices added an estimated
US$63 million to North American electrical wire & cable sales, which had the
effect of adding an estimated US$17 million to third quarter operating
income as compared with the year ago quarter."

Mr. Grubbs added, "In Europe, operating margins in the most recent quarter
were 5.0% as compared with 2.1% in the year ago quarter.  This significant
improvement in operating margins reflects the operating leverage we gained
as a result of strong organic sales growth. Operating results in the quarter
did benefit marginally from higher copper prices, which added an estimated
US$1 million to operating income and 35 basis points to operating margins.
We were encouraged by the results in the most recent quarter, but anticipate
that maintaining consistently solid organic sales growth will remain a
challenge."

"Third quarter operating margins in the Emerging Markets were 6.9% as
compared with 3.4% in the year ago quarter.  Continued sales growth
throughout these markets has allowed us to better leverage infrastructure
costs and improve operating margins," added Mr. Grubbs.

                   Cash Flow and Leverage

"With organic growth rates again running above levels at which we can
generate positive cash flow from operations, due to the high working capital
requirements associated with such growth, we saw an increase in outstanding
debt balances during the quarter," said Dennis Letham, Senior Vice
President-Finance.  "Although borrowings increased in the quarter, our
strong operating performance, combined with the recording of the tax
settlement with the Internal Revenue Service, meant shareholders equity grew
at an even faster rate.  As a result, we were again able to reduce our
debt-to-total capital leverage ratio.  At the end of the third quarter that
ratio was 44.7% as compared with 47.0% at the end of last year."

"For the third quarter our weighted average cost of borrowed capital was
5.5% compared with 5.0% in the year ago quarter.  At the end of the third
quarter, 63% of our total borrowings of US$732.6 million were fixed, either
by the terms of the borrowing agreements or through hedging arrangements.
We also had US$208.1 million of available, unused credit facilities at Sept.
29, 2006, which provide us with the resources to support continued strong
organic growth and to pursue other strategic alternatives, such as
acquisitions, in the coming quarters."

                     Business Outlook

Mr. Grubbs concluded, "The first nine months of 2006 have been a
record-setting period of revenue growth and operating profitability for
Anixter.  This record performance is the result of strong underlying market
fundamentals, solid progress on our strategic initiatives to build our
security and OEM business, additions to our supply chain services offering,
the expansion of our product offering and the benefits of increased copper
prices.  As we enter the final quarter of the year, our ability to continue
executing on our strategic initiatives, together with further progress on
the integration of recent acquisitions, will be the keys to our success."

"While the fundamentals support a continuation of the trends of the past few
quarters, the fourth quarter is generally negatively affected by the large
number of holidays and customer facility shutdowns coincident with those
holidays.  As a result, it is our expectation that we will see a modest
decline in fourth quarter sales versus the third quarter results reported,
but that we will once again experience improved results compared with the
prior year.  Looking forward to 2007, we expect full year organic sales
growth to be within our target of 8 to 12 percent assuming no sudden
significant changes in copper prices."

Headquartered in Glenview, Illinois, Anixter International, is
the world's largest distributor of communication products and
electrical and electronic wire and cable, and a leading
distributor of fasteners and other small parts to original
equipment manufacturers. Anixter has physical presence in 45
countries and has over 5,000,000 square feet of warehouse space.
For its Latin American operations, its has offices in Mexico,
the Dominican Republic, Costa Rica, Puerto Rico, Venezuela,
Colombia, Peru, Brazil, Argentina and Chile.

                        *    *    *

Fitch Ratings affirmed on Sept. 9, 2006, these ratings for
Anixter International Inc. and its wholly owned operating
subsidiary, Anixter Inc. aka AI:

   Anixter

      -- Issuer Default Rating: 'BB+';
      -- Senior unsecured debt 'BB-'.

   AI

      -- Issuer Default Rating: 'BB+';
      -- Senior unsecured notes 'BB+'; and
      -- Senior unsecured bank credit facility at 'BB+'.


ECOPETROL: Pipeline with Venezuela Is Part of Energy Pacts
----------------------------------------------------------
Representatives of Ecopetrol, Petroleos de Venezuela and the energy
ministries of Venezuela and Colombia told Prensa Latina that the
Venezuelan-Colombian pipeline is part of efforts to consolidate bi-national
energy accords.

The representatives said that companies from Colombia and Venezuela are
constructing the pipeline, Prensa Latina relates.

Petroleos de Venezuela told Prensa Latina that the government of Colombia
authorized its support to Petroleos de Venezuela for the construction of the
pipeline.

According to Prensa Latina, Colombian officials granted permission for the
construction of the Antonio Ricaurte, a segment of the pipeline that is
within the Colombian national territory.

Prensa Latin underscores that the initiative will cover an extension of
124.2 miles, allowing gas supply for industrial development and consumption
by the population.

The report says that Venezuelan and Colombian governments showed interest in
extending technical work as far as Panama, so talks are slated for the
coming months.

The envoys of the two countries will move further on the process in a
meeting in Bogota, Colombia, this month, Prensa Latina 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.

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.


IMAX CORP: Inks Theatre Deal with Plaza de las Americas
-------------------------------------------------------
IMAX Corp. signed an agreement with Plaza de las Americas-La Gran Plaza
Comercial de Bogota, a prominent retail developer in Bogota, Colombia, to
install an IMAX theatre as a new attraction in the country's largest mall.
The theatre is scheduled to open in the third quarter of 2007. The agreement
reflects IMAX's commitment to expand its network in Latin America, which now
has 30 IMAX theatres scheduled to be open in the region by the end of 2008.

"We are continuing to implement our international expansion strategy with
another partnership in another major city in Latin America," said IMAX
Co-CEOs and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler.  "With a
population of nearly 9 million, the city of Bogota is an ideal launching pad
for The IMAX Experience in Colombia.  We are delighted to announce our
partnership with Plaza de las Americas-La Gran Plaza Comercial de Bogota to
bring the ultimate cinematic experience to moviegoers in Colombia for the
first time."

"The IMAX Experience has been a successful draw for all types of
destinations, from museums, to multiplexes, to major retail centers around
the world," said Ms. Martha Lucia Stella, General Manager of Plaza de las
Americas-La Gran Plaza Comercial de Bogota.  "With top Hollywood movies
available to the IMAX theatre network in IMAX and IMAX 3D, along with a wide
range of original IMAX films that are both entertaining and educational, our
new IMAX theatre will remind our millions of customers that the Plaza de Las
Americas is a premium destination that offers unparalleled entertainment for
the entire family."

IMAX Corporation -- http://www.imax.com/-- founded in 1967 and
headquartered jointly in New York City and Toronto, Canada, is
an entertainment technology company, with particular emphasis on
film and digital imaging technologies including 3D, post-
production, and digital projection.  IMAX also designs and
manufactures cameras, projectors and consistently commits
significant funding to ongoing research and development.
The IMAX Theatre Network currently consists of more than 270
IMAX affiliated theatres in 38 countries including Argentina, Ecuador,
Guatemala, Mexico and Colombia.


IMAX CORP: S&P Affirms B- Corporate Credit Rating
-------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings, including the 'B-'
corporate credit rating, on IMAX Corp. and removed them from CreditWatch,
where they were placed on
March 10, 2006, with developing implications.

The outlook is negative.  As of June 30, 2006, the company had US$160
million of debt.

"The rating action is based on management having discounted the likelihood
of IMAX being acquired by a strategic buyer," said Standard & Poor's credit
analyst Tulip Lim.  "However, the company is continuing talks with financial
buyers."

As a result, Standard & Poor's no longer sees the potential for an upgrade
arising from a strategic transaction, and the possibility of a downgrade now
appears less likely given that management has been reviewing offers for a
while without concluding a transaction.

The rating reflects the modest size and uncertain long-term earnings
potential of the company's niche market relative to its debt burden, weak
discretionary cash flow, and limited liquidity. These concerns overshadow
IMAX's position as a specialized provider of giant-screen projection,
camera, and sound systems; the recurring revenue provided by the installed
base of about 280 IMAX theater systems; and a measure of near-term revenue
visibility provided by the company's backlog of pending system
installations.

IMAX Corporation -- http://www.imax.com/-- founded in 1967 and
headquartered jointly in New York City and Toronto, Canada, is
an entertainment technology company, with particular emphasis on
film and digital imaging technologies including 3D, post-
production, and digital projection.  IMAX also designs and
manufactures cameras, projectors and consistently commits
significant funding to ongoing research and development.
The IMAX Theatre Network currently consists of more than 270
IMAX affiliated theatres in 38 countries including Argentina, Ecuador,
Guatemala, Mexico and Colombia.


* COLOMBIA: S&P Says Improved Security Led to Rise in Investment
----------------------------------------------------------------
Standard & Poor's Ratings Services said that a substantially improved
security situation in the Republic of Colombia (BB/Positive/B foreign,
BBB/Positive/A-3 local currency sovereign credit ratings) has led to renewed
domestic confidence and a sharp rise in investment over the past four years.
As a result, economic growth has picked up -- averaging over 4% over the
last four years compared to just 0.5% on average in the previous four-year
period (1999-2002).

This higher growth has helped boost government revenue (combined with
improved tax administration), reduce government deficits, and improve its
debt position.  However, the fiscal picture remains somewhat inflexible due
to the fact that pensions, transfers, and interest on the government's debt
represent nearly 100% of government revenue.  The current legislative agenda
is packed with numerous reforms that could put the government's finances on
a more solid footing.  However, President Alvaro Uribe's relationship with
Congress appears to have frayed, making negotiations difficult.

Improved security has increased domestic confidence and, in turn, resulted
in higher levels of investment-both foreign and domestic. While higher
exports, partly driven by higher commodity prices, have helped Colombia as
they have in many other countries in the region, growth has been driven more
by renewed investment and domestic consumption.  In fact, investment to GDP
is expected to reach nearly 24% at year-end 2006 and to rise further in
2007.  Higher levels of investment have brought the country's potential
growth to above 4%. Domestic credit, which fell significantly after the
1998-1999 financial crisis, is also now growing strongly.

In addition to the progress at the macroeconomic level, Colombia is also in
the process of introducing a number of microeconomic reform that could help
it attract investment that would further underpin its
creditworthiness-including financial sector reform, further privatization,
reform of the state, and continued improvements in security.  A free-trade
agreement with the U.S. is important for Colombia's export prospects and
investment outlook, particularly since the Andean Trade Preference and Drug
Eradication Act expires at year-end 2006 (although it could be extended by
the U.S. Congress).

It should be noted that if Colombia is able to achieve sustained growth
rates of 5% or more (as it has over the past two years), many of the
government's fiscal rigidities could be resolved even with only modest
reform.

The tax reform being debated in Congress is meant to replace lost revenue
from the phasing out of a number of temporary taxes (e.g., the surcharge on
income taxes and a reduction in the financial transactions tax) over the
next two years.  It is also meant to simplify the cumbersome tax system and
make it more competitive, especially for local firms.  Although the tax
reform is meant to be revenue neutral, a simpler tax structure could make
tax administration easier and therefore gradually boost revenue through
improved collections.

The original idea of the reform (subject to change and currently being
debated) was to reduce the number of VAT tax rates to three from nine, raise
the general rate to 17% from 16%, and introduce a rate of 10% on a number of
items that are currently exempt (raising the VAT tax base to 70% from 52%).
The reform also seeks to lower the income tax rate while getting rid of a
number of exemptions.  Lastly, it seeks to lower the financial transaction
tax over three years and eliminate it by 2010.

It is important to note that local governments have been running large
surpluses and that the so-called reform of the state has led to higher
surpluses at the public enterprise level (along with higher oil revenue at
Ecopetrol).  According to the government, pension reform will slow the
growth in the transfers to state pension funds (they now represent 4.5% of
GDP).

The consolidated general government deficit (which, according Standard &
Poor's Ratings Services methodology, includes the central administration,
local government, and public pension systems) will be 2.2% in 2006 (similar
to 2005) and only moderately worse in 2007 as oil prices moderate-although
the outturn will partly depend upon the final outcome of the tax reform now
under debate.

The most important reform to keep Colombia on a stable fiscal path is an
extension of the reform to the transfers system, implemented in 2001 (the
formula used by the central government to transfer revenue to local
governments).  Growth in the level of transfers to local governments is now
capped at 2.5% in real terms.  This formula is set to expire at year-end
2008; without its continuation there would be a very large 25% increase in
transfers in 2009 to nearly 7.5% of GDP (up from just over 5% in 2008) by
the central government, which would put severe pressure on government
finances.  Under the current reform being debated, the cap would be 4% in
the first two or three years and 3% thereafter.  Even though the new formula
represents a higher rate than is currently being used, the transfers in
terms of GDP would continue to fall over time as long as the economy
continues to grow at its potential, which is now above 4%.  This reform is
controversial because education and health expenditure are largely a
function of local governments that are dependent upon transfers.  In fact,
the original reform proposal has already been changed to allow for a higher
rate of transfers due to political considerations.

Ultimately, the tax and transfers reform is unlikely to have an impact on
the fiscal accounts over the near term (unless not passed). Furthermore,
spending pressures will continue, especially in the area of pensions-where
no further reform is proposed.  Transfers to public pensions are expected to
peak at above 5% of GDP in 2010 from an estimated 4.3% in 2006.

Overall, the tax and transfers reform will keep the fiscal accounts from
deteriorating markedly over the next three years.  Strong economic growth
will continue to underpin a relatively stable fiscal trajectory, with
general government deficits of 2.0%-2.5% expected.

The government plans to sell 20% of Colombia's state oil company Ecopetrol
SA in 2007.  The partial privatization will grant the company greater
financial autonomy and boost its capital expenditure budget, allowing it to
invest in exploration and development of its fields without requiring
transfers from the government.  Reform in the oil and gas sector is
especially important if Colombia is to continue to be a net exporter of oil.
With production gradually falling, the country will become a net importer by
2011 if no major finds are discovered.

The government has sped up privatization plans in the past year. Bancafe was
recently sold to Davivienda, a local bank, for US$927 million. The next
sales scheduled are Empresa Colombiana de Gas SA, or Ecogas, which will be
auctioned on Nov. 24, 2006, and a 20% stake in Isagen, a power generation
company, to be sold by January 2007.  The Colombian government also plans to
sell stakes in local electricity- distribution companies.  The
privatizations will not only provide the government with additional revenue,
but also help streamline the public sector.

President Uribe's relationship with Congress has been difficult and, given
that he relies on a coalition of parties led by many well-known politicians,
it has and will continue to require a lot of negotiation and compromise.  He
seems to be facing stiff resistance from many of his own congressional
allies who are balking at his plan to expand the VAT to a wider list of
services and basic foods (e.g., rice, potatoes, and milk). Businesses and
farmers who would be hurt by the VAT expansion are lobbying hard against the
proposal.

Debate on the tax reform plan, which includes cutting the corporate and
personal income tax rates to 32% from 38.5% in a bid to increase investment,
is going to be longer and more difficult than previously thought.  This
implies more pressure on the government to offer favors in order to get the
votes it needs.  Colombia's economy is growing reasonably well and tax
receipts are strong.  The rationale behind the reform is not only to widen
the tax base, but to also encourage economic growth and simplify the
country's cumbersome tax code.  As mentioned, the transfers reform is
gaining support from Congress because it will increase the rates that will
be transferred to local governments.

President Uribe's honeymoon never really materialized, and relations with
Congress could even become more difficult throughout the rest of his term as
many key congressional leaders start jockeying for the 2010 presidential
elections.

It remains to be seen what the final outcome of the tax reform will be. The
government could introduce some kind of targeted subsidies to help low
income households.  As noted, VAT reform is the most important and, at the
same time, controversial part of the tax reform bill due to the fact that it
would broaden the VAT to include many basic food staples. The bill could
gain support by lessening the impact on low-income households.  Familias en
Accion, a targeted program that consists of cash transfers conditional upon
school attendance, appears successful in boosting attendance rates and has
broad popular support.

The government has issued external debt denominated in local currency, used
international reserves to prepay external liabilities with multilaterals,
and actively raised money in the local market.  Furthermore, the maturity
composition of the debt has also improved as the government has sought to
lengthen the maturity on newly issued debt while increasing its average size
in the domestic curve.  Lastly, improved debt management has also reduced
risk.  The government has increasingly relied upon local debt markets to
fund itself.  The majority of its debt is issued at fixed rates, and the
government has successfully extended the average tenor.  Private pension
funds have greatly increased the funds available locally.  Local debt now
represents 65% of the total, up from nearly 50% three years ago.

The central bank is likely to continue to raise interest rates over the next
year but at a gradual rate, as the economy continues to grow strongly on the
back of strong domestic demand.  The moves to date-including the last rate
increase, which brought the overnight interest rate to 7% on
Sept. 29, 2006 -- appear to have been preemptive, as there could be an
eventual pick-up in inflation over the 12-18 month horizon.  The 12-month
inflation rate for September was 4.58%, slightly above the midpoint of the
target 4%-5% range.  A relatively stable currency (only about a 3%
depreciation to date) and continued strong investment (which is boosting
productivity) would argue for only a gradual tightening.  The target range
for 2007 is between 3.0%-4.5%.

The central bank will be on guard for foreign exchange rate volatility or
larger-than-expected increases in imports (and, hence, a deterioration in
the current account deficit).  Either of these could warrant more aggressive
policy intervention in 2007.

The government has held exploratory talks with the Ejercito de Liberacion
Nacional in Havana, Cuba, under the auspices of the Cuban government (which
has served as an intermediary).  The guerrilla group has lost much of its
purpose and its strength over the past 10 years.  There is therefore a
relatively good chance that the government could begin formal negotiations
with the group in the near future.

Recent first steps toward hostage negotiations with the Fuerzas Armadas
Revolucionarias de Colombia or FARC, have renewed the anticipation of a
peace settlement.  While an exchange of hostages appears feasible, it is
unclear if such an agreement would spur further reconciliation.  If wider
peace negotiations follow, discussions would likely become mired in
long-standing hostilities.  FARC has become increasingly involved in the
drug trade over the years, which will make it difficult for many to
negotiate in good faith.

In addition, the government and paramilitary leaders signed a peace
agreement in 2003 and initiated a demobilization process. After two years of
debate, Congress approved the Justice and Peace Law in 2005, establishing a
framework for the nationwide demobilization of the Autodensas Unidas de
Colombia.  The law requires the demobilized combatants to confess their
crimes and declare their assets in exchange for significantly reduced prison
sentences.  The negotiations have been fraught with problems, but are slowly
and surely yielding results -- according to outside observers, over 30,000
paramilitary combatants have laid down their arms.  The final stage of the
process -- the reintegration phase -- is proving to be the most difficult.
Under the legislation, combatants cleared of human rights violations are
pardoned and become eligible for reinsertion assistance including a monthly
stipend, vocational training, and small business loans.  Several problems
have arisen from this process:

   -- inadequate benefits,

   -- eligibility (due to the involvement of some in the drug
      trade), and

   -- continued ties with paramilitary groups.

Ultimately, many will return to a life of crime or find their way back to
armed groups.  Nonetheless, overall the security situation has improved
despite some setbacks.

Colombia is one of the few Latin American countries to have had an
investment-grade rating, which it lost in 1999.  The country's strong
institutions, improving growth story, better external indicators, and
declining debt to GDP ratio underpin the current rating and positive
outlook.  If passed, reform-including tax, transfer, and a free-trade
agreement with the U.S.-could result in an upgrade.  However, continued
fiscal rigidities will take time to address, and further declines in debt to
GDP would be needed in order to put Colombia in line with the 'BBB' median.

Unlike many other countries, however, strong and improving institutional
capacity coupled with able leadership could pave the way for the sovereign
to return to the investment-grade category.  Colombia also has had no
history of default in the last half century, unlike nearly every other Latin
American country.




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


PETROLEOS DE VENEZUELA: Will Participate in 24th Havana Fair
------------------------------------------------------------
Petroleos de Venezuela SA, the state oil firm of Venezuela, will take part
in Cuba's 24th Havana International Fair, Prensa Latina reports.

An official source told Venezolana de Television that Venezuela confirmed
its attendance at the Havana Fair with a wide sample of goods and services.

The Venezuelan Corp. of Guayana, another state enterprise of Venezuela, will
participate in the Havana Fair.

The official told Prensa Latina that the Havana Fair prepares the path for
the establishment of strategic partnership for production and development.

The Havana Fair grants commercial firms the opportunity to exchange with
importers, sales representatives, and distributors of goods and service,
Prensa Latina 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.




===================================
D O M I N I C A N   R E P U B L I C
===================================


BANCO BHD: Fitch Affirms 'B' Long-Term Issuer Default Ratings
-------------------------------------------------------------
Fitch Ratings has affirmed these ratings on Dominican Republic-based Banco
BHD:

   -- Long-term foreign and local currency Issuer Default
      Ratings at 'B';

   -- Short-term at 'B';

   -- Support at '5';

   -- Individual at 'D'.

In addition, Fitch has affirmed BHD's Long Term National Rating and Short
Term National Rating at 'A(dom)' and 'F-1(dom)'. The Outlook for the Issuer
Default rating is Stable.  BHD ratings reflect its diversified retail
deposit base, significant market share, adequate liquidity, competent
management and its robust shareholder structure. Despite its recent
improvement, asset quality and profitability ratios still compare weakly by
international standards, as well as its thin capital levels within a
competitive operating environment.

BHD's conservative management and the benefits of a less volatile operating
environment have allowed the bank to enhance most of its performance ratios,
although burdens imposed by lower interest rates and high overheads still
affect the banks profitability ratios. Despite a dramatic increase to 1.6%
in BHD's ROAA at the end of 2005 from less than 1% during 2004, this ratio
still ranks lower than the market average.  The overhaul of the risk
management area, more successful collection efforts and the positive results
of the bank's conservative approach towards lending have sustained a
positive improvement in BHD's asset quality ratios.  After a peak of 9% of
total loans at the end of 2004, impaired loans (including installments in
arrears) have improved to 4.6% of total loans at the end of March 2005,
while loan loss reserves covered more than 180% the impaired portfolio, one
of the highest levels among Dominican banks.

After a significant increase in 2004, BHD's securities portfolio has
represented a significant part of total assets, reaching 32% of total assets
in 2005 (26% in 2004).  A significant portion of the portfolio is comprised
of Central Bank securities which represented 1.2x equity at that date,
similar to its competitors but considered high in view of the low sovereign
rating and its decreasing yields.  Conservative cash dividends, slow asset
growth, and subordinated debt holdings (US$20MM) have benefited BHD's
capital ratios.  At the end of March 2006, BHD had an equity to assets ratio
of 8.8% and a total capital ratio of 14.7%. However, the significant burden
imposed by the bank's holding of fixed and foreclosed assets (70% in total
at the end of March 2005) and some revaluations of fixed assets, diminishes
the quality of the aforementioned ratios.

As of March 2006, BHD ranked third out of 12 commercial banks, with a 13%
market share by total assets.  Grupo BHD controls 60% of Centro Financiero
BHD, the bank's holding company is one of the largest economic groups in the
Dominican Republic.  BHD enjoys close cooperation with Banco Sabadell of
Spain and Banco Popular de Puerto Rico (Popular PR), who together control
the remaining 40% of Centro Financiero BHD.  BHD's ownership structure is
unique among Dominican banks, which allows it to benefit from close
cooperation with its foreign shareholders.


BANCO INTERCONTINENTAL: Central Bank Submits Liquidation Papers
---------------------------------------------------------------
Officials of the central bank and the Banks Superintendence in the Dominican
Republic submitted to the National District's Prosecutor Office the
documents on the funds spent to intervene and liquidate Banco
Intercontinental SA, Dominican Today reports.

As reported in the Troubled Company Reporter-Latin America on Oct. 16, 2006,
Jose Manuel Hernandez, a prosecutor in the Banco Intercontinental fraud
case, requested for central bank documents through the Banks Superintendence
to widen the probe on the involvement of Jose Lois Malkun, the former
Central Bank head, in the Banco Intercontinental fraud case.  The documents
include information on accountable registry, moneys paid and moneys
received.  Ramon Baez Figueroa -- the former president of Banco
Intercontinental and one of the defendants in the case -- filed a complaint
against Mr. Malkun for alleged violation of the Monetary and Financial Law
183-02 through the delivery of DOP40,000 billion without waiting for the
liquidation procedure of Banco Intercontinental.  The monetary and financial
authorities under the leadership of Mr. Malkun ordered in
2003 the return of deposits above the ARS500,000 limit, as the Monetary and
Financial Law establishes, through the delivery of billions of pesos from
Banco Intercontinental.  The Office of the Prosecutor had interrogated Mr.
Malkun.

Dominican Today relates that a representative of the Justice Ministry had
complained of delays in the delivery of the central bank files.

The documents were delivered on Oct. 24 by central bank senior officials:

          -- Ricardo Rojas,
          -- Teofilo Regus,
          -- Fidel Pichardo, and
          -- Daris Javier Cuevas.

Mr. Hernandez told Dominican Today, "These were documents required to be
able to decide whether we initiated or not the investigation in relation to
the complaint against the former governor of the central bank."

The documents describe how Banco Intercontinental used the funds granted by
the central bank from September 2002 to March 2003, Dominican Today says,
citing Mr. Rojas.

Dominican Today underscores that the 12 boxes containing the documents were
arranged in five rows.  One row of the documents divides depositors in three
categories:

          -- the ones registered in the official bank, according
             to how they appeared in Banco Intercontinental
             before the authorities;

          -- the persons involved in Interbank, which was the
             alleged secret parallel bank; and

          -- those belonging to Baninter & Trust, entity which
             operated in Grand Cayman Island under the offshore
             modality.

Mr. Pichardo told Dominican Today, "DOP74 billion were facilitated for the
salvage of Baninter (Banco Intercontinental).  Just in the Baninter case
they had a hidden accounting or parallel, where it had registered around
DOP33 billion in savings or fixed term deposits."

The hidden money, which was termed as the "financial hole", were used by Mr.
Figueroa and other Banco Intercontinental officials to facilitate its
distraction through "paper companies" and to subsequently launder assets,
Dominican Today notes, citing Mr. Pichardo.

Pannell, Kerr A& Forster (PKF)-Guzman Tapia & Associates submitted to the
Office of the Prosecutor an audit on the use and destination of the
liquidation facilities the central bank granted to Banco Intercontinental,
Dominican Today states.

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




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


ECOPETROL: Mulls Expansion to Other Nations, Maria Florez Says
--------------------------------------------------------------
Maria del Pilar Florez -- the corporate planning department advisor of
Ecopetrol, the state-owned oil firm of Colombia -- told Business News
Americas that the company is analyzing plans of starting international
operations, particularly in Venezuela, Brazil, Ecuador, Peru and Argentina.

Business News Americas relates that Ecopetrol is interested in areas with 1P
and 2P reserves.

Ms. Florez told BNamericas that Ecopetrol could expand its operations
through:

          -- participation in exploration and production
             contracts,

          -- acquisitions,

          -- share purchases, and

          -- farm-in and swap agreements.

Ecopetrol is not interested in becoming an operator.   It is seeking high
volumes and ventures with favorable economic conditions, BNamericas says,
citing Ms. Florez.

BNamericas underscores that the Colombian congress is studying law 113,
which would allow Ecopetrol to place its shares on the local stock exchange
as part of a plan to give investors a 20% stake in the firm.

Hernan Martinez Torres, the energy and mines minister of Colombia, told
BNamericas that congressional authorization for the law, which would let
Ecopetrol carry out international investment, is expected before the end of
2006.

Ecopetrol will be valued by an investment bank and could be ready to start
placing the shares by the beginning of the fourth quarter of 2007,
BNamericas says, citing Minister Torres.

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.


PETROECUADOR: Ratifies Bidding Rules for Eight Marginal Blocks
--------------------------------------------------------------
Petroecuador's tender committee has approved bidding rules for oil
exploration and production in eight marginal blocks in Amazon, according to
a report posted in Ecuador's presidential Web site.

The blocks, which are located in Orellana and Sucumbios and which have
combined proven reserves of 116 million barrels of API grade 18-35 crude,
are:

          -- Armadillo,
          -- Chanangue,
          -- Eno-Ron,
          -- Frontera-Tapi-Tetete,
          -- Ocano-Pena Blanca,
          -- Pucuna,
          -- Puma, and
          -- Singue.

The blocks have combined proven reserves of 116Mb of API grade 18-35 crude.

Ivan Rodriguez, the committee head and minister of energy and mines, told
Business News Americas that 22 firms bought the rules.

BNamericas notes that deadline for the submission of offers for the marginal
blocks is on Nov. 1.

Initial investment will be about US$130 million and production is expected
at 30,000 barrels per day, a statement says.

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




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


FLOWSERVE CORP: Moody's Assigns Loss-Given-Default Rating
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology for the
U.S. manufacturing sector, the rating agency revised the Corporate Family
Rating for Flowserve Corp. to B1 from Ba3, as well as the ratings on the
company's US$400 million revolver due 2010 and the US$600 million term loan
due 2012 to Ba2 from Ba3.  These debentures were assigned an LGD3 rating
suggesting that creditors will experience a 41% loss in the event of a
default.

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

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

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

Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) --
http://www.flowserve.com/-- provides fluid motion and control
products and services.  Operating in 56 countries, the company
produces engineered and industrial pumps, seals and valves as
well as a range of related flow management services.  In Latin
America, Flowserve operates in 36 countries such as the
Dominican Republic, Guatemala, Guyana and Belize.


FLOWSERVE CORP: S&P Affirms BB- Rating with Stable Outlook
----------------------------------------------------------
Standard & Poor's Ratings Services raised its short-term
rating on Flowserve Corp. to 'B-2' from 'B-3'.

All other ratings on the Irving, Texas-based engineered pumps
manufacturer, including its 'BB-' long-term corporate credit
rating, were affirmed.  The outlook is stable.

"The higher short-term rating reflects Flowserve's current
filing status and improving liquidity profile," said Standard &
Poor's credit analyst John R. Sico.

This profile includes adequate cash, ample availability on its
credit facility, minimal maturities, and good free cash flow
generation.

Flowserve has become current on all its required filings with
the United States Securities and Exchange Commission.  It has
previously restated its financial results for 2000 through 2004.
These restatements primarily included:

   * adjustments for inventory valuation;
   * long-term contract accounting;
   * intercompany accounts;
   * pension accruals;
   * intangibles; and
   * income taxes.

The changes, in part, stemmed from weaknesses cited by the
company in its internal control procedures, complicated by
decentralized global operations with multiple information
systems -- issues that the company is addressing.

Flowserve reported that the cumulative net reduction in net
income for the periods restated was about US$36 million and that
the restatement primarily affected the years before 2004.

Importantly, the SEC has ended its investigation related to
Flowserve's restatements without recommending any enforcement
action.  The outcome of pending shareholder lawsuits is
uncertain; a significant negative outcome is not factored in the
rating.

The rating has been unaffected by these accounting issues, which
have not hurt cash flow and whose effects have otherwise been,
in our view, immaterial.  Flowserve's debt-reduction and
bookings trends also limit the effects of these restatements.
The company refinanced its debt in 2005 and reported that
bookings for 2005 increased about 14% from 2004.

This trend continues into 2006 with first half bookings up 30%
over the prior year, and good business conditions exist in all
of its divisions.  Flowserve has won major project orders that
may lead to significant aftermarket business in the future.

Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) --
http://www.flowserve.com/-- provides fluid motion and control
products and services.  Operating in 56 countries, the company
produces engineered and industrial pumps, seals and valves as
well as a range of related flow management services.  In Latin
America, Flowserve operates in 36 countries such as the
Dominican Republic, Guatemala, Guyana and Belize.




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


AXTEL SA: Reports MXN1.5B in Revenues for Third Quarter 2006
------------------------------------------------------------
Axtel, S.A. de C.V. reported unaudited third quarter results ended Sept. 30,
2006.

Revenues from operations increased to MXN1,497.8 million in the third
quarter of year 2006 from MXN1,299.9 million for the same period in 2005, an
increment of MXN197.9 million or 15%.

Revenues from operations totaled MXN5,612.2 million in the twelve-month
period ended Sept. 30, 2006, compared with MXN4,5828.3 million in the same
period in 2005, an increase of MXN783.9 million or 16%.

Axtel's lines in service at the end of the third quarter of 2006 totaled
733,067 compared with 567,191 at the end of the same period in 2005, an
increase of 29%.  At the end of the third quarter of 2006, Internet
subscribers totaled 61,062 from 43,065 at the end of the third quarter of
2005, a 42% increase.  Non dial-up subscribers represented 69% or 42,205 of
the total third-quarter 2006 figure.

The company derived its revenues from these sources:

   -- Local services. Local service revenues amounted to
      MXN1,078.9 million for the three-month period ended
      Sept. 30, 2006, compared with MXN935.8 million for the
      same period ended in 2005, an increase of MXN143.1
      million or 15%.  For the twelve-month period ended
      Sept. 30, 2006, revenue from local services totaled
      MXN4,070.4 million, an annual improvement of MXN634.9
      million, or 19%, from MXN3,435.5 million recorded in the
      same period in 2005.  The main drivers of these
      improvements were increased monthly rents and revenues
      from cellular consumption originated from higher number
      of lines in service in existing and new cities opened in
      2006.

   -- Long distance services. Long distance service revenues
      amounted to MXN126.8 million for the three-month period
      ended Sept. 30, 2006, compared with MXN121.6 million in
      the same period in 2005, an increase of MXN5.2 million or
      4%.  For the twelve-month period ended Sept. 30, 2006,
      long distance services grew to MXN474.9 million from
      MXN452.2 million registered in the same period in 2005, an
      Increment of MXN22.7 million or 5%.

   -- Other services. Revenue from other services totaled
      MXN292.1 million in the third quarter of 2006, a positive
      variation of MXN49.6 million, or 20%, from MXN242.5
      million registered in the same period in 2005.  Other
      services revenue increased to MXN1,066.8 million for the
      twelve-month period ended Sept. 30, 2006, from MXN940.5
      million for the same period in year 2005, an increment of
      MXN126.3 million or 13%.

                         Consumption

Local Calls

Local calls totaled 506.9 million in the three-month period ended Sept. 30,
2006, an increase of 81.4 million, or 19%, from
425.5 million recorded in the same period in 2005.  For the twelve-month
period ended Sept. 30, 2006, local calls increased to 1,879.6 million from
1,503.4 million registered in the same period in 2005, an increment of 376.1
million calls or 25%.  A higher number of lines in service was the main
driver for these increases.

Cellular-Calling Party Pays

Minutes of use of calls completed to a cellular line amounted to 198.6
million in the three-month period ended Sept. 30, 2006, compared with 154.3
million in the same period in 2005, a 29% improvement equivalent to 44.3
million.  For the twelve-month period ended Sept. 30, 2006, cellular minutes
grew 183.8 million, or 33%, from 550.0 million registered in the
twelve-month period ended Sept. 30, 2005, to 733.8 million in the same
period in 2006.

Long distance

Long distance minutes increased to 157.4 million for the three-month period
ended Sept. 30, 2006 from 129.1 million in the same period in 2005, an
increment of 28.3 million or 22%.  For the twelve-month period ended Sept.
30, 2006, long distance minutes amounted 552.1 million, compared with 456.8
million registered in the same period in 2005, an increase of 95.3 million
minutes, or 21%.  These increases are explained by the larger consumption of
bundled offers that incorporate long distance minutes.

            Cost of Revenues and Operating Expenses

Cost of Revenues

For the three-month period ended Sept. 30, 2006, the cost of revenues
totaled MXN457.3 million, an increase of MXN61.9 million compared with the
same period of year 2005.  For the twelve-month period ended Sept. 30, 2006,
the cost of revenues reached MXN1,724.7 million, an increase of MXN199.6
million in comparison with the same period in year 2005. These increments
were mainly due to a higher consumption in cellular minutes.

Gross Profit

Gross profit is defined as revenues minus costs of revenues.  For the third
quarter of 2006, the gross profit accounted for MXN1,040.5 million, an
increase of MXN135.9 million or 15%, compared with the same period in year
2005. For the twelve-month period ended Sept. 30, 2006, our gross profit
totaled MXN3,887.5 million, compared with MXN3,303.1 million recorded in the
same period of year 2005, a positive variation of MXN584.3 million or 18%.

Operating expenses

For the third quarter of year 2006, operating expenses grew MXN75.3 million,
or 17%, totaling MXN514.2 million compared to MXN438.9 million for the same
period in year 2005.  Additional expenses associated with the five new
cities opened in 2006 was the main factor that generated this increase.  For
the twelve-month period ended Sept. 30, 2006, operating expenses added
MXN1,888.7 million, coming from MXN1,698.8 million in the same period in
2005, an increase of MXN189.8 million. This increase was attributable
primarily to salaries, rents, sales commissions and network maintenance
based on the larger operational level of the company.

Adjusted EBITDA

The Adjusted EBITDA was MXN526.2 million for the three-month period ended
Sept. 30, 2006 as compared with MXN465.6 million for the same period in
2005, an increase of 13%.  As a percentage of total revenues it was 35.1%
for the three-month period ended Sept. 30, 2006. For the twelve-month period
ended Sept. 30, 2006 amounted to MXN1,998.8 million, compared with
MXN1,604.3 million in the same period in year 2005, a positive variation of
MXN394.5 million, or 25%.

Depreciation and Amortization

As a result of the continuing expansion of Axtel's asset base, depreciation
and amortization totaled MXN364.9 million in the three-month period ended
Sept. 30, 2006 compared with MXN289.2 million for the same period in year
2005, an increase of MXN75.7 million or 26%. Depreciation and amortization
for the twelve-month period ended Sept. 30, 2006 reached MXN1,363.6 million,
from MXN1,113.5 million in the same period in year 2005, an increment of
MXN250.2 million, or 22%.

Operating Income (loss)

Operating income totaled MXN161.3 million in the three-month period ended
Sept. 30, 2006 compared with an operating income of MXN176.4 million
registered in the same period in year 2005, a decrease of MXN15.0 million or
9%. For the twelve-month period ended Sept. 30, 2006 our operating income
reached MXN635.1 million when compared with the income registered in the
same period of year 2005 of Ps. 490.8 million, an increment of MXN144.3
million or 29%.

Comprehensive financial result

The comprehensive financial loss was MXN11.7 million for the three-month
period ended Sept. 30, 2006, compared with a loss of MXN76.4 million for the
same period in 2005.  The reduced loss in the third quarter of 2006 was a
result of a 30% lower interest expense combined with a non-cash foreign
exchange gain of MXN32.9 million.  For the twelve-month period ended Sept.
30, 2006, the comprehensive financial result recorded a loss of MXN301.2
million, compared with MXN154.1 million in the same period in 2005, a larger
loss of MXN147.1 million. For the twelve- month period ended Sept. 30, 2006,
the 95% larger loss is partially explained by the early redemption of our
11% Senior Notes and by a 111% higher non-cash foreign exchange loss.

Capital Expenditures

Axtel invested MXN402.5 million in fixed assets during the third quarter of
2006 vs. MXN418.4 million during the same period in 2005, a 4% decrease.
For the twelve-month period ended
Sept. 30, 2006, Axtel invested MXN1,749.5 million in fixed assets compared
with MXN1,590.6 million in the same period of year 2005, an increase of
MXN158.9 million or 10%. This investment was targeted towards the expansion
of our network infrastructure in existing and new cities.

                          Highlights

During this quarter, Axtel launched operations in Irapuato, completing its
planned geographic expansion for the year.  Irapuato represents the 17th
city where Axtel operates.

Axtel, S.A. de C.V. provides local and long distance telecommunications
services, data transmission and Internet services in Mexico, to both
residential and business customers.  The company has 600,000 installed
lines.  Axtel posted net profits of MXP306 million (US$29 million) for 2005
compared to a loss of MXP79.6 million in 2004.

                        *    *    *

As reported in the Troubled Company Reporter on June 21, 2006,
Standard & Poor's Ratings Services raised its long-term corporate credit
rating on Monterrey, Mexico-based telecommunications service provider Axtel
S.A. de C.V. to 'BB-' from 'B+'.  The outlook was revised to stable from
positive.  The rating on Axtel's US$162 million senior notes due 2013 was
also raised to 'BB-' from 'B+'.


ENERSYS CAPITAL: Moody's Assigns Loss-Given-Default Rating
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology for the
U.S. manufacturing sector, the rating agency revised its Corporate Family
Rating for Enersys Capital, Inc., to B1 from Ba3.

Additionally, Moody's revised its ratings on the company's
US$100 million Revolver due 2009 and US$357.7 million Term Loan B due 2011
to Ba2 from Ba3.  Those debentures were assigned an LGD2 rating suggesting
that creditors will experience a 28% loss in the event of a default.

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

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

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

Headquartered in Reading, Pennsylvania, Enersys Capital, Incorporated --
http://www.enersysinc.com/-- is engaged in the manufacture of industrial
batteries.  The company has its regional headquarters in China and Belgium.
It also has operations in Mexico.


FORD MOTOR: Ditches Fidelity Magellan from 401(k) Plan
------------------------------------------------------
Ford Motor will drop the Fidelity Magellan Fund from the 401(k)
retirement plan it offers to employees, The Wall Street Journal
reports.

Apart from Magellan, the automaker is also nixing Domini Social
Investments' Social Equity Fund; Morgan Stanley's Institutional
Fund Inc. Global Value Equity Portfolio; and Vanguard Group's
Explorer Fund (Admiral Class), CNN Money says.

Jane J. Kim at The Journal reports that Ford will close the funds to new
investments on Nov. 6.  Next year, existing balances left in the funds will
be transferred to the company's stable-value fund.  According to CNN Money,
Ford won't replace the four that were dropped.

                       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 Oct. 24, 2006,
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.'

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).

In addition, 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
September 19 downgrade of the company's long-term rating to B3.


FORD MOTOR: Lenders Could Get Plants as Loan Security
-----------------------------------------------------
Ford Motor Co. may offer its factories as security to lenders as
it considers other steps to bolster the company's liquidity,
Bernard Simon of the Financial Times reports.

"Clearly, liquidity is a high priority for us," Ford CEO Alan
Mulally said Monday.

Ford, which operates about 105 plants worldwide including joint
ventures, reported a US$5.8 billion net loss for the third quarter 2006,
compared with a US$284 million net loss in the same quarter last year.  The
latest losses include Ford Europe's third-quarter pre-tax loss of US$13
million, compared with a pre-tax loss of US$55 million during the 2005
period.

The company's Premier Automotive Group operations, which handle
all of Ford's European brands, also 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.

"These results are unacceptable," Mr. Mulally was quoted by FT as saying.
"We are committed to dealing decisively with the
fundamental business reality that customer demand is shifting to
smaller, more efficient vehicles."

                      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 Oct. 24, 2006,
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.'

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 debt holders.  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).

In addition, 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
September 19 downgrade of the company's long-term rating to B3.


FORD MOTOR: S&P Puts Ratings on Synthetic ABS on Negative Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on eight U.S.
single-issue synthetic ABS transactions related to Ford Motor Co. (Ford;
B/Negative/B-3) on CreditWatch with negative implications.  In addition, the
rating on one U.S. single-issue ABS transaction related to Ford Motor Co.
Capital Trust II is lowered to 'CCC-' from 'CCC'.

The Oct. 23, 2006, placement of the senior unsecured debt ratings on Ford on
CreditWatch with negative implications and the downgrade of Ford Motor Co.
Capital Trust II do not have any immediate rating impact on the Ford-related
ABS supported by collateral pools of consumer auto loans or auto wholesale
loans.

Each of the eight securitizations with ratings placed on CreditWatch
negative is weak-linked to Ford's senior unsecured debt.  The lowered rating
on STEERS Credit-Backed Trust Series 2002-3 F is weak-linked to the rating
on Ford Motor Co. Capital Trust II's preferred stock. Either Ford or Ford
Motor Co. Capital Trust II provides the underlying collateral or referenced
obligations in the affected securitizations, as indicated below.

The Oct. 23, 2006, placement of the ratings on Ford on CreditWatch negative
and the downgrade of Ford Motor Co. Capital Trust II reflect the potential
for unsecured creditors to be disadvantaged if Ford were to incur a material
amount of secured borrowings.

           Ratings Placed On Creditwatch Negative

Corporate Backed Trust Certificates Ford Motor Co.
Debenture-Backed Series 2001-36 Trust

             Rating
Class    To               From   Role of Ford
A-1      B/Watch Neg      B      Underlying collateral
A-2      B/Watch Neg      B      Underlying collateral

Corporate Backed Trust Certificates Ford Motor Co. Note-Backed
Series 2003-6 Trust

             Rating
Class    To               From   Role of Ford
A-1      B/Watch Neg      B      Underlying collateral


CorTS Trust for Ford Debentures

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


CorTS Trust II for Ford Notes

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


Freedom Certificates US Autos Series 2004-1 Trust

                Rating
Class    To               From   Role of Ford
A        B/Watch Neg      B      Underlying collateral
X        B/Watch Neg      B      Underlying collateral


PPLUS Trust Series FMC-1

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


PreferredPLUS Trust Series FRD-1

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


SATURNS Trust No. 2003-5

             Rating
Class    To               From   Role of Ford
Units    B/Watch Neg      B      Underlying collateral


Trust Certificates (TRUCs) Series 2002-1 Trust

            Rating
Class   To                From   Role of Ford
A-1     B/Watch Neg       B      Underlying collateral


                    Rating Lowered

STEERS Credit-Backed Trust Series 2002-3 F

         Rating
Class   To     From       Role of Ford Motor Co. Capital Trust II
Certs   CCC-   CCC        Referenced obligation

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


GENERAL MOTORS: GMAC Gets EC Clearance for Cerberus Purchase
------------------------------------------------------------
The European Commission has granted clearance under the EU Merger Regulation
to the acquisition of sole control of General Motors Acceptance Corporation
by Cerberus Group.

Cerberus is active in investment in real property and personal
property worldwide and is ultimately controlled by Stephen A.
Feinberg.  GMAC is active in the EEA in vehicle related activities such as
loan and leasing finance, reinsurance, second hand vehicle sales and fleet
management services and in financial services and employee relocation
services.

The Commission examined the operation under its simplified merger review
procedure.

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

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 11, 2006,
Standard & Poor's Ratings Services said that its 'B' long-term and 'B-3'
short-term corporate credit ratings on General Motors Corp. would remain on
CreditWatch with negative implications, where they were placed March 29,
2006.

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

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

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


HASBRO INC: Earns US$99.6 Million in 2006 Third Quarter
-----------------------------------------------------
Hasbro, Inc. reported net revenues of US$1.039 billion for the 2006 third
quarter, up 5% compared to US$988.1 million a year ago and included a US$9.6
million favorable impact from foreign exchange.

The company reported net income of US$99.6 million, which includes
stock-based compensation expense of US$3.9 million, net of tax, due to the
required implementation of SFAS 123R at the beginning of the year.  Net
earnings prior to fiscal 2006 did not include stock-based compensation
expense.

In the third quarter of 2005 net earnings on a reported basis, which did not
include the effect of stock-based compensation expense, were US$92.1
million.

Alfred J. Verrecchia, President and Chief Executive Officer, said, "We are
pleased with our third quarter results.  Net revenues were up 5%, with
revenues excluding STAR WARS up 13% for the quarter and year-to-date, driven
in part by the success of LITTLEST PET SHOP, PLAYSKOOL, NERF, PLAY-DOH,
MONOPOLY, TRANSFORMERS and CLUE. STAR WARS has performed well and continues
to be the #1 action figure property with US$69 million in revenue for the
quarter and US$182 million year-to-date, demonstrating the strength of the
brand even in a non-movie year.

"With the overall breadth and depth of our product portfolio we have been
able to grow our business for the quarter and year-to-date, in spite of the
revenue decline of US$58 million for the quarter and US$193 million
year-to-date in STAR WARS," Mr. Verrecchia concluded.

"Earnings per diluted share were up a strong 23% in the quarter, said David
Hargreaves, Chief Financial Officer.  "Absent the Lucas warrants mark to
market expense of US$0.09 per diluted share, the underlying business
performed even better with earnings per diluted share increasing 43% to
US$0.67 per diluted share for the quarter," he added.

North American segment revenues, which include all of the company's toys and
games business in the United States, Canada and Mexico, were US$745.5
million for the quarter compared to
US$712.3 million a year ago, reflecting strong performances from LITTLEST
PET SHOP, PLAYSKOOL, NERF, PLAY-DOH and MONOPOLY.  The segment reported an
operating profit of US$111.6 million for the quarter compared to US$85.3
million last year, as adjusted to include the impact of stock-based
compensation.  In addition to the higher revenues, the improvement in
operating profit reflected declines in amortization and royalty expenses,
partially offset by increases in product development and advertising
expenses.

International segment revenues for the quarter were US$280.4 million
compared to US$264.6 million a year ago and included a US$9.3 million
favorable impact from foreign exchange.  Volume increases reflected strong
performance from LITTLEST PET SHOP, PLAYSKOOL, TRANSFORMERS and MONOPOLY.
The International segment reported an operating profit of US$43.2 million
compared to an operating profit of US$32.9 million in 2005, as adjusted to
include the impact of stock-based compensation expense.  The improvement in
operating profit is primarily due to decreases in royalty and amortization
expense.

The company reported third quarter Earnings Before Interest, Taxes,
Depreciation and Amortization of US$192.6 million compared to US$187.9
million in 2005.  The attached schedules provide a reconciliation of diluted
earnings per share and EBITDA to net earnings for the third quarters and
nine-month periods of 2006 and 2005.

During the quarter, the company repurchased approximately
6.6 million shares of common stock at a total cost of
US$131 million.  Since June of 2005, the company has repurchased 23.5
million shares at a total cost of US$465.3 million.

Headquartered in Pawtucket, Rhode Island, Hasbro, Inc. --
http://www.hasbro.com/-- provides children's and family leisure time
entertainment products and services, including the design, manufacture and
marketing of games and toys ranging from traditional to high-tech.  The
company has operations in Australia, France, Hong Kong, and Mexico, among
others.

                        *    *    *

Moody's Investors Service affirmed the Baa3 long-term debt rating of Hasbro,
Inc., and changed the ratings outlook to positive from stable to reflect the
expectation for continued-strong operating performance and cash flows,
leading to further debt reduction and credit metric improvement over the
near-to-intermediate-term.  Ratings affirmed include the Baa3 senior
unsecured debt rating and the (P)Ba1 rating for subordinated debt.


IMAX CORP: Inks IMAX Theatre Installation Deal in Mexico
--------------------------------------------------------
IMAX Corp. inks an agreement with Cinemas Martinez to install IMAX theatres
as part of two new multiplex developments in Mexico.  The first IMAX theatre
is scheduled to be installed during the third quarter of 2007 in the city of
Torreon and the second is scheduled to be installed during the first quarter
of 2008 in the city of Chihuahua. There are now 32 IMAX theatres scheduled
to be open in Latin America by the end of 2008.

"Latin America is one of our fastest growing markets, and we are encouraged
by the consistent growth in Mexico, which already has an established network
of IMAX theatres," said IMAX Co-CEOs and Co-Chairmen Richard L. Gelfond and
Bradley J. Wechsler.  "Multiplex-based IMAX theatres are performing very
well in Mexico, and the success has translated into more growth in the
region.  We are pleased to see exhibitors such as Cinemas Martinez taking
advantage of the strength and universal appeal of the IMAX brand to help
differentiate its new multiplexes from competitors."

"The IMAX brand has long been recognized as the world's most powerful and
immersive cinematic experience and it is becoming increasingly more popular
in Mexico," said Pedro Martinez, General Director of Cinemas Martinez.
"With Hollywood event movies presented in IMAX and IMAX 3D, combined with
original IMAX films that are both entertaining and educational, the
installation of these two IMAX theatres will establish our new multiplexes
as the very best premium entertainment destinations in Chihuahua and
Torreon."

"We are very excited to have Cinemas Martinez introduce The IMAX Experience
to moviegoers in its home town of Torreon and its neighboring city of
Chihuahua," added Larry T. O'Reilly, IMAX's Executive Vice President,
Theatre Development.  "The new IMAX theatres will change the way people in
these cities experience event Hollywood movies and give them another
compelling reason to visit a Cinemas Martinez multiplex.  The strong
performance of our most recent Hollywood title in Mexico, Open Season -- an
IMAX 3D Experience, continues to demonstrate that consumers in this country
demand a unique cinematic experience that only IMAX theatres can provide."

Both IMAX theatres will be capable of playing Hollywood event films that
have been transformed into the unparalleled image and sound quality of The
IMAX Experience in both 2D and IMAX 3D, through IMAX DMR (digital
re-mastering) technology and IMAX's proprietary 2D to 3D conversion
technology.  They will also be capable of playing original IMAX productions
in 2D and IMAX 3D.

                  About Cinemas Martinez

Founded in 1970, Cinemas Martinez is a family operated business that started
out as a traveling cinemas venture in the 1950's.  Operated by seven
brothers, Cinemas Martinez has been the top exhibitor in each city it has
opened in.  Cinemas Martinez has evolved its technology and business to meet
the growing consumer demand for Hollywood content in a state-of-the-art
multiplex setting.

IMAX Corporation -- http://www.imax.com/-- founded in 1967 and
headquartered jointly in New York City and Toronto, Canada, is
an entertainment technology company, with particular emphasis on
film and digital imaging technologies including 3D, post-
production, and digital projection.  IMAX also designs and
manufactures cameras, projectors and consistently commits
significant funding to ongoing research and development.
The IMAX Theatre Network currently consists of more than 270
IMAX affiliated theatres in 38 countries including Argentina, Ecuador,
Guatemala, Mexico and Colombia.


METROFINANCIERA S: IDB Grants US$105MM Partial Credit Guarantee
---------------------------------------------------------------
The Inter-American Development Bank approved US$105 million in partial
credit guarantees for Metrofinanciera S.A. de C.V., a Mexican lender
specialized in providing mortgages to low- and middle-income clients and
financing for housing developers.

Up to US$55 million in partial credit guarantees will assist Metrofinanciera
in obtaining a mortgage warehouse facility of US$175 million from an
international commercial bank to originate and accumulate mortgage pools
prior to securitization.  A mortgage-backed securities or MBS guarantee
facility of up to US$50 million will provide partial credit guarantees for
the issuance of Metrofinanciera-originated MBS in the Mexican capital
market.

During its life the program could support the issuance of at least $800
million in MBS, providing Metrofinanciera more resources to finance
mortgages for the purchase of up to 25,000 new homes and stimulating
construction, a key engine of economic activity and employment generation.

The IDB expects the program to promote the development and standardization
of Mexico's market for MBS, which can be an attractive alternative
investment for Mexican pension funds.

Additionally, the program will assist Metrofinanciera as it transitions away
from public sector funding.  The company has funded its operations mostly
with financing from the state-owned Sociedad Hipotecaria Federal but plans
to switch entirely to capital markets over the next few years.

The partial credit guarantees for Metrofinanciera are the second operation
prepared by the IDB's Private Sector Department under a new policy that
allows the Bank to accept guarantee-related payments in local currency.

The privately held Metrofinanciera is Mexico's fourth largest specialized
housing lending company, with a portfolio of MXN13.3 billion (US$1.25
billion) under administration at the end of 2005. Founded in 1996 by local
businessmen, the Monterrey-based lender has developed a network of six
regional offices and 50 branches that operates nationwide.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on April 11,
2006, Fitch Ratings assigned the following ratings to
Metrofinanciera, a Mexican mortgage lender:

   -- Foreign Currency Long-term Issuer Default Ratings 'BB-';
   -- Foreign Currency Short-term IDR 'B';
   -- Local Currency Long-term IDR 'BB-';
   -- Local Currency Short-term IDR 'B';
   -- Individual Rating 'D';
   -- Support Rating '5'.

Fitch said the rating outlook is stable.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on April 3, 2006,
Standard & Poor's Ratings Services assigned a 'BB-' long-term counter party
credit rating to Metrofinanciera S.A. de C.V. Sociedad de Objeto Limitado.
S&P said the outlook is stable.


PORTOLA PACKAGING: Gets US$10MM Credit Increase from GE Capital
---------------------------------------------------------------
Portola Packaging Inc. entered into an amendment to its existing Credit
Agreement with General Electric Capital Corp.

The Amendment, among other things, effected the following revisions to the
existing Credit Agreement:

   -- Increased the maximum loan limit from US$50 million to
      US$60 million with the amount in excess of US$50 million
      being based on the company's Working Capital/Fixed Asset
      Borrowing Base calculation, currently in excess of
      US$60 million.

   -- The Amendment increased the amount of capital expenditures
      the company is able to make each fiscal year from
      US$13.5 million to US$16.5 million.

The company paid GECC a fee of US$125,000 in relative to the Amendment.

A full text-copy of the Ninth Amendment to Fourth Amended and Restated
Credit Agreement with GECC may be viewed at no charge at
http://ResearchArchives.com/t/s?13dc

Portola Packaging Inc. -- http://www.portpack.com/-- designs, manufactures
and markets tamper evident plastic closures used in dairy, fruit juice,
bottled water, sports drinks, institutional food products and other
non-carbonated beverage products.  The company also produces a wide variety
of plastic bottles for use in the dairy, water and juice industries,
including various high density bottles, as well as five-gallon polycarbonate
water bottles.  In addition, the company designs, manufactures and markets
capping equipment for use in high speed bottling, filling and packaging
production lines.  The company is also engaged in the manufacture and sale
of tooling and molds used in the blow molding industry.  The company has
locations in China, Mexico and Belgium.

                        *    *    *

Portola's balance sheet at May 31, 2006 showed total assets of
US$171,700,000 and total liabilities of US$241,000,000 resulting in an
equity deficit of US$69.3 million.  Equity deficit at
Aug. 31, 2005 was US$57.7 million.




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


XEROX CORP: Earns US$536 Million in Quarter Ended Sept. 30
----------------------------------------------------------
Xerox Corp. reported third-quarter 2006 net income of US$536 million,
compared to US$63 million of net income earned in the equivalent prior year
quarter ended Sept. 30, 2005.  The company's third-quarter earnings this
year include a previously announced tax benefit of 45 cents per share
partially offset by restructuring of 7 cents per share and a litigation
charge of 7 cents per share.

"Through earnings expansion, annuity growth and a strong financial position
that allows for stock buyback and acquisitions, we exceeded our expectations
this quarter and are delivering on our commitment to build shareholder
value," said Anne M. Mulcahy, Xerox chairman and chief executive officer.

Total revenue of US$3.8 billion grew 2% in the third quarter. Post-sale and
financing revenue, which represents about 75% of Xerox's total revenue,
increased 3%, largely driven by 4% post-sale growth from digital systems.

Total revenue and post-sale revenue included a currency benefit of 1
percentage point.  "The leading indicators of our growth strategy - which is
all about boosting our annuity stream through growth in digital, services
and color - continued to trend positively in the third quarter," added Ms.
Mulcahy.  "Install activity was up for Xerox digital systems in key markets
like office multifunction and production color.  Our expertise in document
management flowed through to post-sale growth of 7% from global services.
And, our broad portfolio of color technology fueled a 16% increase in
post-sale revenue from color."

About 48% of the company's equipment sales in the third quarter were from
color products, a year-over-year increase of 7 points. Total revenue from
Xerox's industry-leading color systems grew 16% in the third quarter and now
represents 36% of the company's revenue, up 4 points from a year ago.  The
number of pages printed on Xerox color systems grew 35% in the quarter.

While equipment sale revenue was down 1% in the third quarter including a 1
point benefit from currency, installs of key products like the Xerox iGen3
Digital Production Press and DocuColor systems as well as WorkCentre
multifunction systems drove up activity, fueling future gains in the
company's post-sale revenue.

Signings for document management services were up 16% year to date and were
about flat in the third quarter as the company experienced longer lead times
for finalizing multi-year contracts.

Xerox's production business provides commercial printers and
document-intensive industries with high-speed digital printing and services
that enable on-demand, personalized printing.  Total production revenue
increased 3% in the third quarter including a 2 point currency benefit.
Installs of production black-and-white systems declined 6% with growth in
light production only partially offsetting declines in higher-end production
printing.  Production color installs grew 107%, reflecting accelerated
activity for the iGen3 and continued strong demand for the DocuColor 5000
and 7000/8000 series as well as the DocuColor 240/250 multifunction system.

Earlier this month, Xerox made several announcements that strengthen its
leadership in the production market including the acquisition of XMPie, a
leading provider of variable information software; advanced finishing
capabilities for the iGen3 and DocuTech 180 Highlight Color system; and a
dual-engine printer that sets a new speed record for two-sided, cut-sheet
black-and-white printing.

Xerox's office business provides document technology and services for
businesses of any size.  Total office revenue was flat in the third quarter
including a 2 point currency benefit.  Installs of office black-and-white
systems were up 10%, largely driven by 19%  growth from Xerox's mid-range
line of WorkCentre multifunction products.  In office color, installs of
multifunction systems were up 46% reflecting strong demand for the color
WorkCentre systems launched in May and the continued success of the office
version of the DocuColor 240/250.  Expanding its competitive offerings for
small and medium-sized businesses, Xerox launched in September the
WorkCentre 4150, its fastest-ever desktop multifunction system.

The company also cited continued improvement in its developing markets
operations.  Total revenue grew 7% in DMO.  Gross margins were 40.2% in the
third quarter, a year-over-year decline of 1.1 points.  The decline was
primarily due to product mix and equipment pricing as well as lower margins
in Xerox's global services business as the company incurred upfront costs to
support new multi-year managed services contracts.  Selling, administrative
and general expenses were 25.6% of revenue, a year-over-year improvement of
1.3 points.

Xerox generated operating cash flow of US$530 million in the third quarter
and closed the quarter with US$1.5 billion in cash and short-term
investments.  Since launching its stock buyback program last October, the
company has repurchased about 78 million shares, totaling US$1.1 billion of
the US$1.5 billion program through the third quarter of this year.  Also
during the quarter, Xerox closed on the US$175 million cash acquisition of
Amici LLC, a provider of electronic-discovery services that support
litigation and regulatory compliance.

In early October, Xerox announced the US$54 million cash acquisition of
XMPie, which is expected to close in the next few weeks.  Xerox expects
fourth-quarter 2006 earnings in the range of 21-24 cents per share,
including restructuring charges of about 13 cents per share. Excluding
restructuring, Xerox expects fourth-quarter adjusted EPS of 34-37 cents per
share.

"We expect our fourth-quarter performance will keep us on track to deliver
our full-year earnings expectations," said Ms. Mulcahy.

                        About Xerox

Headquartered in Stamford, Connecticut, Xerox Corp. (NYSE: XRX) --
http://www.xerox.com-- develops, manufactures, markets, services, and
finances document equipment, software, solutions, and services worldwide.
It offers digital monochrome and color systems for customers in the graphic
communications industry and enterprises, as well as various prepress and
post-press options.  Xerox Corporation markets its products through direct
sales force, as well as through a network of independent agents, dealers,
value-added resellers, and systems integrators.  The company has operations
in Japan, Italy and Nicaragua.

                        *    *    *

Fitch upgraded Xerox Corp.'s Issuer Default Rating to 'BBB-' from 'BB+',
Senior unsecured debt to 'BBB-' from 'BB+' and Trust preferred securities to
'BB' from 'BB-'.  In addition, Fitch affirmed the senior unsecured bank
credit facility at 'BBB-' and withdrawn the secured term loan rating of
'BBB-' since the secured term loan was repaid and the secured bank facility
terminated concurrently with the effectiveness of the new unsecured credit
facility.  Fitch said the rating outlook is stable.

Standard & Poor's Ratings Services raised its corporate credit
rating on Stamford, Connecticut-based Xerox Corp. and related
entities to 'BB+' from 'BB-', and removed it from CreditWatch,
where it was placed with positive implications on Jan. 26, 2006.
The upgrade reflected substantial recent debt reductions, good
cash flow and growth in equipment sales.  S&P said the outlook is stable.

Moody's Investors Service revised the rating outlook of Xerox
Corporation and supported subsidiaries to positive from stable.
Moody's previously raised the senior implied rating of Xerox and
its financially supported subsidiaries to Ba1 from Ba3.  The
action was prompted by Xerox's significant debt and leverage
reduction over the last year, stable operating profit and free
cash flow generation, and the prospects for further strengthening of its
credit metrics and overall financial flexibility.




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


UNIVERSAL COMMS: Gets US$1.5M from Private Placement 2nd Closing
----------------------------------------------------------------
Universal Communications Systems, Inc., received US$1,506,025 in proceeds
from the second closing of its private placement pursuant to a Subscription
Agreement with several accredited and qualified institutional investors.

The company completed on Feb. 27, 2006 a private placement pursuant to a
Subscription Agreement with several accredited and/or qualified
institutional investors.  The investors subscribed to purchase an aggregate
principal amount of US$3,012,050 in 9% secured convertible promissory notes
and 1 Class A and 1 Class B common stock purchase warrant for each 2 shares
which will be issued on each closing date assuming full conversion of the
secured convertible notes on the closing date.  The subscription agreement
calls for two closings, an initial closing representing US$1,506,025 of 9%
secured convertible promissory notes, 75,301,250 Class A warrants and
75,301,250 Class B warrants and a second closing representing the balance.
The initial closing took place February 28, 2006.  Funds from the second
closing were received on Oct. 17, 2006, with total proceeds of US$1,506,025.

The secured convertible notes, as amended in connection with the October
closing, bear simple interest at 9% per annum payable monthly together with
5.5% of the initial principal, all interest accrued and any other amounts
not paid, commencing six months from the issuance date, and mature 2 years
after the date of issuance.  The payments may be made in cash or in the
company's common stock at a conversion rate which is the lesser of US$0.005
per share or 70% of the average closing bid price for the preceding five
trading days, at the company's discretion.  The conversion price is
adjustable in the event of any stock split or reverse stock split, stock
dividend, reclassification of common stock, recapitalization, merger or
consolidation.  In addition, the conversion price of the secured convertible
notes will be adjusted in the event that the company will spin off or
otherwise divest of a material part of its business or operations or dispose
of all or a portion of its assets.  The company's obligation under the
convertible notes is secured by all of its assets pursuant to a certain
Security Agreement dated as of Feb. 27, 2006.

The Class A warrants, as amended, are exercisable until four years from the
effective date of the registration statement for the warrant shares at an
exercise price equal to the conversion price of the Notes, and the Class B
warrants are exercisable for 180 days from the effective date of the
registration statement for the warrant shares at an exercise price equal to
the conversion price of the Notes.

A full text-copy of the Waiver, Consent and Amendment Agreement may be
viewed at no charge at http://ResearchArchives.com/t/s?13dd

Universal Communications Systems, Inc. -- http://www.ucsy.com/-- and its
subsidiaries are actively engaged worldwide in developing and marketing
solar energy systems, as well as systems for the extraction of drinkable
water from the air. Consolidated subsidiaries include wholly owned
subsidiaries AirWater Corp., AirWater Patents Corp, Millennium Electric
T.O.U. Ltd, Solar Style (USA) Inc., Solar One Inc, Solar Style Ltd., and
Misa Water International, Inc, and majority-owned subsidiaries Atmospheric
Water Technologies and Millennium USA.  The company has operations in China,
France and Panama.

Prior to 2003, the company was engaged in activities related to advanced
wireless communications, including the acquisition of radio-frequency
spectrum internationally.  Currently, the company's activities related to
advanced wireless communications are conducted solely through its investment
in Digital Way, S.A., a Peruvian communication company and former wholly
owned subsidiary.

                    Going Concern Doubt

As reported in the Troubled Company Reporter on Jan. 19, 2006, Reuben E.
Price & Co. expressed substantial doubt about Universal's ability to
continue as a going concern after it audited the company's financial
statements for the fiscal years ended Sept. 30, 2005, and 2004.  The
auditing firm pointed to the company's over US$1.5 million working capital
deficit and recurring losses from operations.




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P E R U
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DOE RUN PERU: Sponsors Global Project to Improve Local Industry
---------------------------------------------------------------
Doe Run Peru will fund a global market research study in conjunction with
the Wharton School of the University of Pennsylvania and the Universidad Del
Pacifico of Lima.  Doe Run Peru is donating funds to cover the research,
logistical and administrative costs for the study, which aims to help the
region's silver artisans increase productivity while opening up channels for
technical assistance and exports.

The project is designed to promote communication and organization among the
silver artisans of La Oroya, Peru, and surrounding communities. Project
participants will receive guidance and basic training on how to make their
pieces more attractive to the U.S. and other import markets, with a goal of
helping the artisans develop new revenue streams that will help them and
their families improve their quality of life.

"Doe Run Peru's support of this global educational endeavor is a testament
to its commitment to collaborating with others to improve the local
community and economy," said Dr. Len Lodish, senior director of the Wharton
Global Consulting Practicum at the Wharton School and professor of marketing
at the University of Pennsylvania.  "In addition to Doe Run Peru's financial
commitment, the company is devoted to helping these students understand the
dynamics of the region, its economy and the naturally occurring metals. The
study itself is a crucial step in transforming a locally thriving art into
what may become a promising industry on a larger scale."

During the approximately six-month study, university students will work
closely with Doe Run Peru and local silverworkers to gather data, develop a
work plan, attend trade shows and more.  Doe Run Peru will also help cover
related lodging and travel expenses for the incoming students.  Upon
completion of the study, students will present strategic and tactical
recommendations for improvement to the participating entrepreneurs.

"With these kinds of Social Impact Management projects, our goal is to help
the community develop sustainably by giving these microenterprises access to
larger export chains that will link them in to the much larger demand of the
U.S. import market," said Professor Gina Pipoli, associate country manager
in Peru for Wharton's Global Consulting Practicum.

Doe Run Peru officials underscored the company's commitment to supporting
this and similar projects that benefit the people of La Oroya.

"As a global provider of premium metals and services, we strive to enhance
life--whether through the important products we provide or the expertise we
possess about metals," said Dr. Juan Carlos Huyhua, president and general
manager of Doe Run Peru.  "Silver artistry is a vital and growing business
for the people who live and work in the region, so we are pleased to support
the industry's sustainable growth by sharing our knowledge and being a proud
sponsor of the program. We look forward to hearing the findings and how they
might improve local commerce."

"This real experience contributes to the continuous development of skills of
our MBA students as they learn how to negotiate in different cultural
environments, solving specific problems between the companies and the
surrounding communities using a social corporate responsibility approach,"
added Professor Alejandro Flores, Dean of the Universidad del Pacífico
Graduate School.

                        About Doe Run

Based in St. Louis, Mo., The Doe Run Company --
http://www.doerun.com/-- is a privately held natural resources
company dedicated to environmentally responsible mineral
production, metals fabrication, recycling and reclamation.  The
company and its subsidiaries deliver products and services
needed to provide power, protection and convenience through
premium products and associated metals including lead, zinc,
copper, gold and silver.  As the operator of one of the world's
only multi-metal facilities and the Americas' largest integrated
lead producer, Doe Run employs more than 5,000 people, with U.S.
operations in Missouri, Washington and Arizona, and Peruvian
operations in Cobriza and La Oroya.

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

              Doe Run Peru Going Concern Doubt

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

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

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

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


DOE RUN: July 31 Stockholders' Deficit Narrows to US$101.5 Mil.
---------------------------------------------------------------
The Doe Run Resources Corp. has filed its third fiscal quarter ended July
31, 2006, with the U.S. Securities and Exchange Commission.

                          Financials

For the third quarter ended July 31, 2006, the Company reported
US$22,146,000 of net income on US$419,189,000 of net sales compared with
US$9,540,000 of net income on US$257,523,000 of net sales for the same
period in 2005.

At July 31, 2006, the Company's balance sheet showed US$620,652,000 in total
assets, US$691,047,000 in total liabilities, and US$31,165,000 in redeemable
preferred stock, resulting in a US$101,560,000 stockholders' deficit, as
compared with higher deficit of US$112,189,000 at April 30, 2006.

The Company's July 31 balance sheet showed US$305,937,000 in total current
assets available to pay US$362,107,000 in total current liabilities.

                      Recent events

David A. Chaput resigned Aug. 16, 2006, as vice president finance,
treasurer, and chief financial officer of the Company.

The Company entered Sept. 5, 2006, into an employment agreement
with Theodore P. Fox, III, to serve as the Company's vice
president finance, treasurer, and chief financial officer,
effective on that date.

Full-text copies of the Company's third quarter financials are
available for free at http://ResearchArchives.com/t/s?13e1

             About The Doe Run Resources Corp.

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

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

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

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


HERTZ CORP: S&P Holds Negative Watch on BB- Corp. Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services stated that its ratings on Hertz Corp.,
including the 'BB-' corporate credit rating, remain on CreditWatch with
negative implications, where they were placed on June 26, 2006.

The initial CreditWatch placement was based on potential incremental debt at
Hertz, the sole operating entity of Hertz Global Holdings Inc., to fund a
dividend of approximately US$1 billion to its shareholders just six months
after the company's acquisition; this was completed on June 30, 2006.
"[Mon]day's
CreditWatch update follows the filing by Hertz Global Holdings, the indirect
parent company of Hertz, of an amended S-1 for an IPO, proceeds of which
would be used to pay off the US$1 billion loan to fund the June 30, 2006,
dividend, and to fund yet another dividend to Hertz's shareholders," said
Standard & Poor's credit analyst Betsy Snyder.

Standard & Poor's will review the progress of the IPO and, if successful,
its effect on Hertz's financial profile, to resolve the CreditWatch.  The
resolution of the CreditWatch will also incorporate an assessment of the
company's more aggressive than expected financial policy, as evidenced by
the large dividend payouts to its shareholders.

The ratings on Park, Ridge, New Jersey-based Hertz Corp. reflect a weakened
financial profile after the successful completion of its US$14 billion
acquisition, reduced financial flexibility, and the price-competitive nature
of on-airport car rentals and equipment rentals.  Ratings also incorporate
the company's position as the largest global car rental company and the
strong cash flow its businesses generate.  Hertz was acquired from Ford
Motor Co. by Clayton, Dubilier & Rice Inc., The Carlyle Group, and Merrill
Lynch Global Private Equity in December 2005.  The acquisition, which added
over US$2 billion of debt to Hertz's balance sheet, has resulted in an
increase in its borrowing costs, and credit ratios have weakened from
previous relatively healthy levels.  In addition, the company's historically
strong financial flexibility has declined somewhat, with around two-thirds
of its tangible assets now secured, compared to around 10% previously.

Hertz Corp. -- https://www.hertz.com/ --  the largest global car rental
company, participates primarily in the on-airport segment of the car rental
industry.  This segment, which generates approximately 69% of Hertz's
consolidated revenues, is heavily reliant on airline traffic.  Demand tends
to be cyclical, and can also be affected by global events such as wars,
terrorism, and disease outbreaks.  Hertz has also grown its off-airport
business (12% of consolidated revenues), the segment of the car rental
business that is less cyclical and more profitable, but which is dominated
by 'A-' rated Enterprise Rent-A-Car Co.  Through its Hertz Equipment Rental
Corp. subsidiary (HERC, 18% of consolidated revenues), Hertz also operates
one of the larger industrial and construction equipment renters in the U.S.,
along with some European locations.  Hertz has operations in Hungary,
Philippines and Peru, among others.




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


ALBERTO-CULVER: Moody's Puts Caa1 Rtg. to US$280MM Senior Notes
---------------------------------------------------------------
Moody's Investors Service assigned first time ratings, including a corporate
family rating of B2 and a speculative grade liquidity rating of SGL-2, to
Sally Holdings, LLC.

The rating outlook is stable.  The ratings are conditional upon review of
final documentation.

These are the rating actions:

     -- Corporate family rating at B2

     -- Probability-of-default rating at B2

     -- US$400 million senior secured guaranteed bank revolving
        credit facility at Ba2 (LGD 1, 7% LGD rate)

     -- US$1.07 billion senior secured guaranteed term loans at
        B2 (LGD 4, 50% LGD rate)

     -- US$430 million senior unsecured guaranteed notes at B2
        (LGD 4, 55% LGD rate)

     -- US$280 million unsecured senior subordinated guaranteed
        notes at Caa1 (LGD 6, 93% LGD rate)

     -- Speculative Grade Liquidity Rating of SGL-2

Sally Holdings, LLC will own the beauty retail operations and the beauty
distribution businesses currently owned by Alberto-Culver Company.
Alberto-Culver is separating its consumer products business from its
Sally/BSG operations, into two publicly-traded companies.  Alberto-Culver
shareholders will receive from New Sally Holdings, Inc. one share of each
New Alberto-Culver and New Sally stock and a special cash dividend of US$25
share.

New Sally will fund the special dividend with debt and with US$575 million
of equity invested by Clayton, Dubilier & Rice Fund VII, L.P.  At the
conclusion of the transaction, New Sally will be owned approximately 52.5%
by Alberto-Culver shareholders and 47.5% by CD&R, on a fully-diluted basis.
New Sally, through intermediate holding companies including Sally Holdings,
will own Sally and BSG.

The B2 corporate family rating of Sally Holdings reflects post-transaction
credit metrics that will be weak, especially very high leverage and low cash
flow coverage.  Scale, in terms of revenues, is commensurate with Ba rated
companies.  The ratings are further constrained by sales concentrations in
hair care products, vendor concentrations, and wide-ranging competition.
Offsetting these high yield attributes are the company's investment grade
characteristics -- including extensive geographic diversification, leading
positions in defined subsectors of retail, low seasonality and cyclicality,
and generally robust comparable store sales increases.  The ratings clearly
benefit from the leading position of both Sally and BSG in their respective
market segments and the quality and depth of their merchandise assortments.

The speculative grade liquidity rating of SGL-2 reflects Sally Holding's
comfortable liquidity profile and incorporates Moody's expectation that over
the next four quarters Sally Holdings will fund its ordinary working
capital, capital expenditures and mandatory debt amortization with cash
generated from operations; however, the cushion of excess free cash flow
will not be large in comparison to Sally Holdings' scale.

The SGL rating also incorporates Moody's belief that the company will have
access to its new US$400 million asset-based revolving credit facility and
that the facility's single covenant will not be tested.  Given that all
assets will be pledged to lenders, there is no alternative liquidity other
than the sale of a business, which would impair enterprise value.

The stable outlook reflects Moody's expectation that the company will
continue to grow comparable store revenues, improve operating margins and
generate positive free cash flow which will be applied heavily to debt
reduction.  Given the magnitude of Sally Holdings' post-transaction
leverage, an upgrade is unlikely in the intermediate term.  Over the longer
term, an upgrade would require continuing solid operating performance
coupled with debt reduction such that debt to EBITDA falls below 6 times and
free cash flow to debt is above 5% on a sustainable basis.

Conversely, negative rating pressure would develop if operating performance
were to be weaker than expected or if overall comparable store sales were to
become negative.  Quantitatively, ratings would be lowered if normalized
annual reported EBITDA is not a minimum of US$260 million, or if free cash
flow to debt becomes negative.

New Sally, through intermediate holding company Sally Investment Holdings,
LLC, will own Sally Holdings.  Sally Holdings will own the operating
subsidiaries and Sally Capital Inc.  Sally Holdings will be a borrower under
a US$400 million senior secured Asset Backed revolving credit facility and
US$1.07 billion in senior secured Term Loans, and a co-issuer, with Sally
Capital, of US$430 million senior unsecured notes and US$280 million
unsecured senior subordinated notes.

The US$400 million senior secured revolving credit facility will benefit
from borrowing base governance and expected full collateral coverage in a
hypothetical default scenario.  The revolving credit facility is secured by
a first-priority lien on accounts receivable, inventory and other assets,
and a second priority lien on all other tangible and intangible assets of
the company.  The US$1.07 billion senior secured term loans (to be comprised
of term loan A and term loan B) will be secured by a first priority lien on
all tangible and intangible assets other than ABL Collateral, including
property, plant, and equipment and capital stock of subsidiaries, as well as
a second priority lien on the ABL Collateral.  Moody's believes that there
will be relatively little collateral coverage on the term loans during a
hypothetical default scenario.  Sally Holdings will be a borrower under the
ABL and the Term Loans; if there are additional borrowers, all will be
jointly and severally liable.  Both the revolving credit facility and the
term loans will have guarantees from the direct parent of each borrower, and
from each direct and indirect domestic subsidiary of Sally Holdings (other
than any subsidiary that is a borrower or a foreign subsidiary holding
company).

The US$430 million senior unsecured notes and the US$280 million unsecured
senior subordinated notes reflect their unsecured status.  Sally Holdings
and co-Issuer Sally Capital will be jointly and severally liable.  These
issues will be guaranteed by Sally Holdings' direct and indirect operating
subsidiaries and by Sally Holdings' immediate parent.

New Sally Holdings, Inc., headquartered in Denton, Texas, will be a leading
national retailer and distributor of beauty supplies with operations under
its Sally Beauty Supply and Beauty Systems Group businesses.  For the fiscal
year ended Sept. 30, 2005, New Sally's revenues exceeded US$2.2 billion.
The company has stores in Canada, Mexico, Puerto Rico, the U.K., Ireland,
Germany and Japan.


DORAL FINANCIAL: Aims to Boost Returns & Refinance US$625MM Debt
----------------------------------------------------------------
Glen Wakeman, the chief executive officer of Doral Financial Corp., said in
a conference call that the firm will concentrate on increasing returns and
refinancing a US$625 million debt, which matures in July 2007, to recover
from a difficult situation.

Mr. Wakeman told Business News Americas, "Our focus will shift from market
share-driven to returns-driven.  We have not and will not abandon the
mortgage or construction lending space.  Refinancing this debt is my top
priority.  We will need outside financing or other sources of capital to
repay this debt at maturity... such as issuing junk debt, the sale of assets
and the issuance of additional equity securities."

According to BNamericas, Mr. Wakeman praised Doral Financial's substantial
progress in correcting legacy issues and acknowledged that the firm will
continue to experience margin compression for the foreseeable future due to
its balance sheet structure.

Mr. Wakeman told BNamericas, "Our loan volumes are down and our margins have
fallen over 130 basis points since 2004."

Doral Financial's loan production dropped 50% to US$1.4 billion in the first
half of 2006.  Its market share decreased to around 10%, BNamericas states.

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.


DORAL FIN'L: Appoints Gerardo Leiva Exec. VP of Operations
----------------------------------------------------------
Doral Financial Corp. chief executive officer Glen Wakeman disclosed the
appointment of Gerardo Leiva, as Executive Vice President in charge of
Operations.  Mr. Leiva is a Six Sigma Green Belt certified executive.  Six
Sigma is a methodology, the objective of which is to deliver world-class
performance, reliability, and value to the end customer.

"In this regard," Mr. Wakeman said, "Doral Financial is creating a Center of
Excellence based on Six Sigma Methodology, which Mr. Leiva will lead and
develop.  I believe that Six Sigma-based management will be an important
tool in Doral's effort to enhance its efficiency, customer loyalty, and its
effort to build stockholder value over the long term."  To support Leiva on
this important initiative, Doral has appointed Carmine Y. Annexy, a
Certified Six Sigma Master Black Belt, as a Six Sigma Director.

"Gerardo Leiva brings to Doral a proven path of successful organizational
transformations and accomplishments.  His broad banking experience of over
10 years at Citibank and General Electric as well as his formal education in
Mexico's top technology university should make him an important contributor
to the transformation to Doral," Mr. Wakeman stated.

In addition to being a certified Six Sigma Green Belt, Mr. Leiva is also
certified in Advanced Information Management and the Acceleration Leadership
Program, among others.  He also has an Engineering degree with majors in
Electronics and Communications.

Ms. Annexy, who holds a BS on Industrial Engineering from the University of
Puerto Rico, Mayaguez, worked as Process Excellence Manager at Ethicon,
Johnson & Johnson until her appointment. She brings to Doral Financial a
solid experience on establishing continuous improvement strategies to
achieve efficient and flexible operations. Annexy also offered Six Sigma
Green and Black Belt training and coaching in the use of Process Excellence
tools.

Separately, Doral Financial ratified during the annual stockholders meeting,
the appointment of PricewaterhouseCoopers as the company's independent
public accountants for 2006.  The company's slate of directors, which
include three new directors, was also elected during the meeting.

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.


HOUGHTON MIFFLIN: S&P Puts B Corp. Credit Rating on Neg. Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' long-term corporate credit
rating on U.S.-based educational publisher Houghton Mifflin LLC on
CreditWatch with negative implications.

The 'B+' long-term corporate credit rating on Ireland-based educational
software publishing company Riverdeep Holdings PLC was also placed on
CreditWatch with negative implications.  This reflects a potential
combination of the two companies' operations as well as a possible
refinancing, although neither party has so far confirmed that a transaction
is being negotiated or that a definitive agreement will be reached.

"The CreditWatch placements reflect a potential increase in the combined
group's financial leverage relative to the recent levels seen at both
companies, as well as the challenge of integrating the two businesses," said
Standard & Poor's credit analyst Anna Overton.

Both companies are highly leveraged, with rapidly accreting
payment-in-kind notes in the capital structure putting pressure on their
financial management strategies.  Although the details of the funding of the
transaction have not emerged yet, equity support is likely to remain thin.

S&P does not expect the combined entity's business risk profile to be
materially different from that of Houghton Mifflin, given the mature nature
and entrenched competition characterizing U.S. school publishing.
Nevertheless, there might be some benefit from replicating the success of
Riverdeep's direct school sales and product management across the combined
organization.

"Standard & Poor's will seek to clarify the business and financial strategy
of the combined entity," added Standard & Poor's credit analyst Hal Diamond.
"The ratings on both Houghton Mifflin and Riverdeep could be lowered if it
becomes evident that the combined operating cash flow base cannot provide
debt service coverage for consolidated obligations comparable with levels
seen at both companies so far."

Houghton Mifflin LLC -- http://www.hmco.com/--  is the fourth-largest U.S.
educational publisher, with long-standing solid market shares in elementary
and secondary school publishing.
The company has distributors in the U.K., China, and Puerto Rico.


KMART CORP: Wants FLOORgraphics' Claim Estimated at US$3 Million
--------------------------------------------------------------
Kmart Corp. asks the U.S. Bankruptcy Court for the Northern
District of Illinois to estimate FLOORgraphics, Inc.'s Claim No.
42242 at US$3,000,000 for reserve purposes.  The Claim arises out of Kmart's
rejection of a services agreement with FGI.

William J. Barrett, Esq., at Barack Ferrazzano Kirschbaum Perlman &
Nagelberg LLP, in Chicago, Illinois, recounts that at the time Kmart emerged
from Chapter 11, claimants filed 15,518 proofs of claim seeking recovery
afforded under Class 5 of the confirmed Plan of Reorganization.  Class 5
claimants have the right to receive pro rata shares of stock in Reorganized
Kmart Corp.

Pursuant to the Plan, Kmart would reserve a portion of the Stock
otherwise allocable to holders of allowed Class 5 claims pending
the conclusion of the claims wind-down or reconciliation process.  The
initial distribution reserve was set at 50%.  Mr. Barrett notes that since
then, Kmart has reduced the reserve to 5%.

Mr. Barrett tells the Court that as of Oct. 12, 2006, less
than 100 Class 5 claims totaling US$200,000,000 remain disputed,
US$102,000,000 of which are for determination before the Court.

The largest remaining Class 5 disputed claim, according to Mr.
Barrett, is FGI's Claim No. 42242 for US$59,000,000, which
represents almost 30% of the total remaining disputed claims.
Because the Claim remains unresolved, Kmart continues to reserve
sufficient Stock under the Plan to satisfy the Claim in its full, asserted
amount.

Mr. Barrett notes that pursuant to a Court ruling dated
Jan. 25, 2006, the FGI Claim has been effectively capped.  By barring the
admission of a document FGI attempted to introduce into evidence, the Court
concluded that the FGI Agreement had a limited duration.  Thus, the FGI
Claim must be substantially reduced, if not entirely expunged, Mr. Barrett
asserts.

In addition, the January 2006 Ruling limited possible recovery by FGI on its
claim to pre-rejection damages.  To the extent that FGI can recover on any
pre-rejection damages, Mr. Barrett says the damages would be minimal
compared to the amount that FGI seeks in its Claim.

Mr. Barrett relates that the relief sought will neither harm nor
hinder FGI's ability to fully recover on its Claim because:

    -- to the extent that the FGI Claim is ultimately allowed in
       an amount greater than US$3,000,000, FGI will receive the
       full value of that allowed claim in cash;

    -- Kmart is fully indemnified by News America Marketing In-
       Store Services, Inc., for any amounts it is required to
       pay FGI relating to the Claim; and

    -- as long as the FGI dispute remains outstanding, Kmart
       cannot reallocate the FGI Claim's Stock reserve to the
       many holders of allowed Class 5 claims, which in turn
       continues to prevent Kmart from concluding the claims
       reconciliation process.

                     About Kmart Corp.

Headquartered in Troy, Michigan, Kmart Corp. nka KMART Holding Corp. --
http://www.bluelight.com/-- operates approximately 2,114 stores, primarily
under the Big Kmart or Kmart
Supercenter format, in all 50 United States, Puerto Rico, the U.S. Virgin
Islands and Guam.  The Company filed for chapter 11
protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on
May 6, 2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps, Slate,
Meagher & Flom, LLP, represented the retailer in its restructuring efforts.
The Company's balance sheet showed US$16,287,000,000 in assets and
US$10,348,000,000 in debts when it sought chapter 11 protection.  Kmart
bought Sears, Roebuck & Co., for US$11 billion to create the third-largest
U.S. retailer, behind Wal-Mart and Target, and generate US$55 billion in
annual revenues.  The waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act expired on Jan. 27, without complaint by the Department of
Justice.  (Kmart Bankruptcy News, Issue No. 118; Bankruptcy Creditors'
Service Inc.  http://bankrupt.com/newsstand/or 215/945-7000)


KMART CORP: Court Okays Summary Judgment Against Ashland's Claim
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
granted summary judgment in Kmart Corp.'s favor with respect to
Kmart's objection to Ashland Inc.'s Claim No. 14688.

In 2002, Kmart filed its schedules of assets and liabilities,
which list included unsecured claims from:

    (1) Valvoline Co. -- Claim No. 10582442 for US$536,678; and
    (2) Eagle One Industries -- Claim No. 10581448 for
                                US$32,721.

Valvoline is a division of Ashland, and Eagle One Industries
is an operating unit of Valvoline.

On April 30, 2002, Ashland filed Claim No. 14688 for US$1,303,004 consisting
of:

    -- US$1,211,440 for Valvoline; and
    -- US$91,563 for Eagle One.

The Scheduled Claims were allowed for US$569,399.  Ashland
commenced receiving distributions on the Scheduled Claims on or
about June 30, 2003.

In February 2004, Kmart objected to claims in excess of the
Scheduled Claims.  The Excess Claims allegedly comprised of
missing invoices and Kmart deductions that Ashland wanted repaid, Kimberly
J. Robinson, Esq., at Barack Ferrazzano Kirschbaum, Perlman & Nagelberg LLP,
in Chicago, Illinois, discloses.

Ms. Robinson relates that based on Kmart's books and records, and affidavits
submitted before the Court, Ashland has no Excess
Claim.  Kmart repeatedly requested that Ashland provide documents to
substantiate the Excess Claim but Ashland failed to do so.

Specifically, Ms. Robinson says, Kmart sought admissions as to
the matters for which Ashland bases its Claim, that:

    (a) no written contract or agreement for goods between
        Ashland and Kmart existed;

    (b) no invoices to Kmart for the goods for which Ashland
        bases its Claim exist;

    (c) there are no proofs of receipt that establish Kmart
        received the goods;

    (d) US$35,037 of the Claim has been satisfied through
        settlement of Eagle One's Claim No. 10581448;

    (e) US$638,710 of the Claim has been satisfied through
        settlement of Valvoline's Claim No. 10581448; and

    (f) Kmart is not liable for the payment of the Claim.

Kmart also sought and obtained a Court order compelling Ashland
to respond to discovery requests.  To date, Ashland has not
responded to the requests.

Ms. Robinson asserts that Ashland has failed to establish a prima facie
claim for the balance of its Claim.  Ashland has failed in its pleadings to
substantiate the Excess Claim, and thus, has not, and cannot, create an
issue of fact to preclude summary judgment in Kmart's favor.

Even if the Court were to accord Ashland a prima facie claim, Ms. Robinson
avers that Kmart's prior requests and the supporting papers sufficiently
rebut the remaining portion of the Claim.  Specifically, because of
Ashland's failure to object or otherwise answer Kmart's request for
admissions, Ashland has effectively admitted, among others, that there is no
written contract or agreement substantiating the Excess Claim.

                     About Kmart Corp.

Headquartered in Troy, Michigan, Kmart Corp. nka KMART Holding Corp. --
http://www.bluelight.com/-- operates approximately 2,114 stores, primarily
under the Big Kmart or Kmart Supercenter format, in all 50 United States,
Puerto Rico, the U.S. Virgin Islands and Guam.  The Company filed for
chapter 11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on May 6, 2003.  John
Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP,
represented the retailer in its restructuring efforts.  The Company's
balance sheet showed US$16,287,000,000 in assets and US$10,348,000,000 in
debts when it sought chapter 11 protection.  Kmart bought Sears, Roebuck &
Co., for US$11 billion to create the third-largest U.S. retailer, behind
Wal-Mart and Target, and generate US$55 billion in annual revenues.  The
waiting period under the Hart-Scott-Rodino Antitrust Improvements Act
expired on Jan. 27, without complaint by the Department of Justice.  (Kmart
Bankruptcy News, Issue No. 118; Bankruptcy Creditors' Service Inc.
http://bankrupt.com/newsstand/or 215/945-7000)




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


BEARINGPOINT INC: Seeks Noteholders' Waivers of SEC Reports
-----------------------------------------------------------
BearingPoint Inc. is soliciting consents from the holders of
certain bonds to amend existing agreements governing the bonds.

The Company seeks to specifically amend the agreements and obtain waivers
relating to the U.S. Securities and Exchange Commission's reporting
requirements.  The amendments and waivers affect the Company's 2.50% Series
A Convertible Subordinated Debentures due 2024, 2.75% Series B Convertible
Subordinated Debentures due 2024 and 5% Convertible Senior Subordinated
Debentures due 2025.

As previously disclosed, certain holders of the Series B
Debentures have alleged that the Company is in default under the
applicable indenture due to its failure to timely provide certain periodic
SEC reports to the trustee and the State Supreme Court for New York County
entered an order finding the Company in default under the indenture.  The
Company believes that there are serious errors in the court's ruling and
intends to pursue its rights and remedies in that regard and has filed an
appeal.

To resolve the uncertainties created by the court's ruling, the
Company is seeking consents to proposed amendments of certain
provisions of the indenture governing each series of the
Debentures and a waiver of defaults, until Oct. 31, 2007,
including any default or event of default that may arise due to
the Company's failure to file with the SEC and further to furnish to the
trustee and holders of Debentures, certain reports required under the
Securities Exchange Act of 1934, as amended.  The Company also seeks a
rescission of any acceleration related to its failure to file the SEC
reports.

The effectiveness of the proposed amendments and waiver and the
payment of the consent fee are subject to the receipt of valid
consents from at least a majority of the aggregate principal
amount outstanding of each series of the Debentures.  The Company disclosed
that it has the right to waive or amend the terms and conditions of the
offer and further that the amendment and waiver will also include the waiver
of all rights to accelerate the Debentures that may arise under the
indenture as a result of the failure of another series of Debentures to
consent to the proposed amendments and waiver.  The Company also disclosed
that if it does not receive the requisite consents from all series of
Debentures, it will continue to explore all available options.

Holders of each series of record as of 5:00 pm, New York City
time, on Oct. 17, 2006, who validly deliver their consents, will
receive an initial consent fee, for each US$1,000 in principal
amount of Debentures equal to the product of US$10 multiplied by a fraction,
the numerator of which is the aggregate principal amount of the series of
Debentures outstanding on the expiration date, expected to be at 5:00 p.m.
New York City time on
Oct. 26, 2006, and the denominator of which is the aggregate principal
amount of the series of Debentures to which the Company received and
accepted consents.  The Company says that if it has not filed the Required
Reports with the SEC by 5:30 pm, New York City time on Oct. 31, 2007, it has
the option to pay to these holders an additional US$2.50 for each US$1,000
in principal amount of such series of Debentures to which it has received
and accepted consents, which will extend the deadline for filing Required
Reports for one additional year.

The Liability Management Group of Citigroup Corporate and
Investment Banking serves as the consent solicitation agent.
Questions regarding the consent solicitation may be directed to
The Liability Management Group at (800) 558-3745 (toll-free) or
(212) 723-6106.  The information agent for the consent
solicitation is Global Bondholder Services Corporation.  Requests for copies
of the Consent Solicitation Statement and related documents may be directed
to Global Bondholder Services
Corp. at (866) 857-2200 (toll- free) or (212) 430-3774.

Headquartered in McLean, Virginia, BearingPoint, Inc.,
-- http://www.BearingPoint.com/-- is an I/T systems integrator,
consultancy, and managed services provider for commercial and
governmental entities worldwide.  BearingPoint has operations in these Latin
American countries: Argentina, Aruba, Brazil, Bolivia, Chile, Colombia,
Costa Rica, Curacao, Dominican Republic, Ecuador, Jamaica, Mexico,
Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Suriname, Uruguay,
Venezuela.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 10, 2006,
Moody's Investors Service downgraded the ratings of BearingPoint, Inc., and
has placed the company's ratings on review for further possible downgrade.

Ratings downgraded and placed on review for further possible
downgrade are:

   * Corporate Family Rating --downgraded to B2 from B1

   * US$250 million series A subordinated convertible bonds due
     2024 --downgraded to B3 from B2

   * US$200 million series B subordinated convertible bonds due
     2024 --downgraded to B3 from B2

As reported in the Troubled Company Reporter on Oct. 2, 2006
Standard & Poor's Ratings Services' ratings on BearingPoint Inc., remained
on CreditWatch with developing implications, where they were placed on March
18, 2005.

Ratings on CreditWatch are:

     * Corporate credit rating: B-/Watch Dev./--
     * Senior secured: B-/Watch Dev.
     * Senior unsecured: B-/Watch Dev.
     * Subordinated debt: CCC+/Watch Dev.

As reported in the Troubled Company Reporter on Sept. 29, 2006,
BearingPoint, Inc., received an order entered by the New York
State Supreme Court for New York County on Sept. 20, 2006, finding the
Company in default under the indenture governing the its 2.75% Series B
Convertible Subordinated Debentures due 2024.


BEARINGPOINT: Launches Corporate Performance Management System
--------------------------------------------------------------
BearingPoint, Inc., leveraged its 10-year commitment to developing
innovative corporate performance management systems to unveil Corporate
Performance Management, a premier global services solution integrated with
Oracle Business Intelligence.

According to a recent study, business intelligence ranks second behind
security on the CIO's list of top 10 priorities.  In today's changing
business environment, CEOs and CFOs of leading organizations need more
insight into their business.  The pressure to deliver results while
shouldering responsibility for compliance compels them to demand greater
return on investments in enterprise resource planning systems, business
intelligence applications and compliance tools.  BearingPoint CPM is
designed to help companies improve return on investment, enhance timely and
accurate information delivery, and improve reporting and corporate
governance, while increasing efficiency and effectiveness.

"BearingPoint's solution enables businesses to leverage the costs associated
with streamlining business processes to help meet regulatory and governance
mandates, such as Basel II, gaining value and competitive advantage from
their investment," said Greg Molley, managing director, for BearingPoint's
Oracle Business Intelligence Practice.  "We've strategically aligned our
resources with Oracle to make the connections needed for the development and
delivery of innovative business transformation solutions.  Our
cross-competency teams have been working together extensively, giving us
more experience on Oracle technologies, greatly reducing client risk.  We
were the first to consolidate both the Oracle and PeopleSoft practices and
added the Siebel Practice to our global integrated community as of January
2006.  Because of this, we're more closely aligned with Oracle and its
development process and have contributed to the development and roll-out of
upgrades and Oracle's Business Intelligence strategy leveraging Oracle SOA."

BearingPoint's CPM provides the business insight executives require,
delivering in high value, business transformation through:

   -- Seasoned practitioners with cross-industry and
      cross-functional business process knowledge, as well as
      Oracle and non-Oracle technology experience;

   -- Repeatable implementation practices to help companies
      manage risk and deliver predictable, value-added outcomes;

   -- Reusable tools and project accelerators that are tailored
      to individual client needs through a collaborative
      delivery approach;

   -- Specialized vertical solutions to meet the needs of the
      company's  financial services clients; and

   -- Specialized domain solutions for helping companies to meet
      their compliance needs and drive focused process
      improvement.

"BearingPoint was a very early partner in embracing our larger BI strategy
and working with our development team to understand our strategy.  They
communicated this strategy to our clients and built out a solution we
recognized this week with a Titan Award.  BearingPoint moved quickly to
align its practice to capitalize on the opportunity," said Robert
Stackowiak, vice president, Business Intelligence Oracle Corporation
Technology Business Unit.  "BearingPoint's CPM solution leverages its
significant Oracle technology expertise with industry expertise, business
process and change management to help their clients deliver solid business
results.  The company's leadership in developing innovative solutions has
made it a valuable Oracle partner for many years and they are well
positioned to deliver our Fusion business intelligence solutions as they are
introduced."

"BearingPoint takes a holistic approach in applying strategy, business
process industry expertise, and change management to help increase our
clients' return on investment," said Mr. Molley.  "With the power of Oracle
Business Intelligence at the core, our teams focus on developing an
integrated view of the data locked in customers' information systems. With
our CPM solution, we can offer a global network of professionals providing
implementations, upgrades and strategic solutions across the entire suite of
Oracle products."

As a Certified Advantage Partner in the Oracle Partner Network,
BearingPoint has completed more than 2,000 Oracle implementations and
upgrades in more than 50 countries. To date, it supports the evolution of
Oracle Fusion Applications, Oracle's initiative to protect customer
investments while extending and evolving the functionality of its Oracle,
PeopleSoft, JD Edwards, Siebel and emerging product lines.

"BearingPoint has been a trusted advisor to our organization for many
years," said Jennifer Fancher, first vice president, Washington Mutual, Inc.
"We have clearly benefited from their strategic vision, and the business
acumen, project management, and technical skills they bring to their teams
to make the visioning a reality.  Their work on our Corporate Performance
Management Solution has allowed us to manage our company more effectively.
This is why BearingPoint continues to be one of our key strategic partners."

Headquartered in McLean, Virginia, BearingPoint, Inc. is a I/T
systems integrator, consultancy, and managed services provider
for commercial and governmental entities worldwide.
BearingPoint has operations in these Latin American countries:
Argentina, Aruba, Brazil, Bolivia, Chile, Colombia, Costa Rica,
Curacao, Dominican Republic, Ecuador, Jamaica, Mexico,
Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Suriname,
Uruguay, Venezuela.

                        *    *    *

As reported in the Troubled Company reporter on Oct. 11, 2006,
Moody's downgraded and placed these ratings on review for
further possible downgrade:

   * Corporate Family Rating --downgraded to B2 from B1

   * US$250 million series A subordinated convertible bonds due
     2024 --downgraded to B3 from B2

   * US$200 million series B subordinated convertible bonds due
     2024 -- downgraded to B3 from B2




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


PETROLEOS DE VENEZUELA: Pipeline with Colombia Part of Pacts
------------------------------------------------------------
Representatives of Petroleos de Venezuela, Ecopetrol and the energy
ministries of Venezuela and Colombia told Prensa Latina that the
Venezuelan-Colombian pipeline is part of efforts to consolidate bi-national
energy accords.

The representatives said that companies from Colombia and Venezuela are
constructing the pipeline, Prensa Latina relates.

Petroleos de Venezuela told Prensa Latina that the government of Colombia
authorized its support to Petroleos de Venezuela for the construction of the
pipeline.

According to Prensa Latina, Colombian officials granted permission for the
construction of the Antonio Ricaurte, a segment of the pipeline that is
within the Colombian national territory.

Prensa Latin underscores that the initiative will cover an extension of
124.2 miles, allowing gas supply for industrial development and consumption
by the population.

The report says that Venezuelan and Colombian governments showed interest in
extending technical work as far as Panama, so talks are slated for the
coming months.

The envoys of the two countries will move further on the process in a
meeting in Bogota, Colombia, this month, Prensa Latina 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.

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

                        *    *    *

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


PETROLEOS DE VENEZUELA: Spending VEB3.5 Tril. in Zulia Units
------------------------------------------------------------
Petroleos de Venezuela, the state-owned oil company of Venezuela, will
invest about VEB3.5 trillion for Zulia exploration and production operations
upgrade, El Universal reports.

El Universal relates that an audit indicated that the investment will help
upgrade equipment, half of which is not working properly.

Ricardo Coronado, the western division manager of Petroleos de Venezuela,
told El Universal, "We already recovered flow stations Lagunillas,
Bachaquero C and Lana 4."

El Universal notes that the stations collect and pump crude that comes from
the Maracaibo lake fields.

Petroleos de Venezuela has collected over 500 tons of scrap metal and has
replaced 5,000 kilometers of pipeline from inside and around Maracaibo,
Business News Americas 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.


PETROLEOS DE VENEZUELA: 53% of Maracaibo Equipment in Bad Shape
---------------------------------------------------------------
Officials of Petroleos de Venezuela, the state-owned oil firm of Venezuela,
told El Universal that an audit the company conducted earlier this year
indicated that 53% of the oil installations in Lake Maracaibo are in
critical operating conditions.

Petroleos de Venezuela has decided to allocate US$1.6 billion for repairs,
El Universal says, citing the officials.

Dow Jones Newswires relates that Petroleos de Venezuela has repaired three
flow stations and replaced 5,000 kilometers of pipelines on Lake Maracaibo,
where around a third of the country's oil is produced.

Ricardo Coronado, the head of the western operations of Petroleos de
Venezuela, told El Universal, "We've already recovered the Lagunillas 1,
Bachaquero C and Lana 4 flow stations."

Mr. Coronado said that Petroleos de Venezuela's western operations produced
an average of 950,000 barrels per day through August 2006, which is lower
than the targeted 970,000 barrels per day.

Venezuela is producing almost 3.3 million barrels of oil daily, while
industry estimates put the production closer to 2.6 million barrels per day,
Dow Jones says, citing Petroleos de Venezuela.

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.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
October 25, 2006
   BEARD AUDIO CONFERECES
      Deepening Insolvency - Widening Controversy: Current
      Risks, Latest Decisions, Review Risks, Examine Latest
      Decisions Affecting Directors, Advisors and Lenders of
      Troubled Companies
            Contact: http://www.beardaudioconferences.com/
                     240-629-3300

October 26, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast Event "The Latest in Fraud Investigations"
      with guest speaker Chad Cretney of
      PricewaterhouseCoopers
      Ernst & Young Tower
         Calgary, AB
            Contact: http://www.turnaround.org/

October 26, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Hedge Funds - Expanded Financing Opportunities in Business
      Turnarounds
         Arizona
            Contact: http://www.turnaround.org/

October 26, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast Speaker Series #3
         TBA, Calgary, Alberta
            Contact: 403-294-4954 or http://www.turnaround.org/

October 26, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast Speaker Series #3
         TBA, Calgary, Alberta
            Contact: 403-294-4954 or http://www.turnaround.org/

October 27, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast with Coach Dan Reeves
         Westin Buckhead, Atlanta, GA
            Contact: 678-795-8103 or http://www.turnaround.org/

October 28, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      BK/TMA Golf Tournament
         Orange Tree Golf Resort, AZ
            Contact: 623-581-3597 or http://www.turnaround.org/

October 30-31, 2006
   Distressed Debt Summit: Preparing for the Next Default Cycle
      Financial Research Associates LLC
         Helmsley Hotel, New York, NY
            Contact: http://www.frallc.com/

October 31, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon
         Citrus Club, Orlando, Florida
            Contact: 561-882-1331 or http://www.turnaround.org/

October 31 - November 1, 2006
   INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION
      IWIRC Annual Conference
         San Francisco, California
            Contact: http://www.iwirc.com/

November 1, 2006
   ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
      AIRA/NCBJ Dessert Reception
         Marriott, San Francisco, CA
            Contact: 415-896-1600 or http://www.airacira.org/

November 1, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Halloween Isn't Over! - Ghosts of turnarounds past who
         remind you about what you should have done differently
            Portland, Oregon
               Contact: http://www.turnaround.org/

November 1-4, 2006
   NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
      National Conference of Bankruptcy Judges
         San Francisco, California
            Contact: http://www.ncbj.org/

November 2, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA UK Annual Conference
         Millennium Gloucester Hotel, London, UK
            Contact: http://www.turnaround.org/

November 2-3, 2006
   BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES
      Third Annual Conference on Physician Agreements & Ventures
      Successful Strategies for Medical Transactions and
      Investments
         The Millennium Knickerbocker Hotel - Chicago
            Contact: 903-595-3800; 1-800-726-2524;
            http://www.renaissanceamerican.com/

November 3, 2006
   ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
      AIRA/NCBJ Breakfast Program
         Marriott, San Francisco, CA
            Contact: 415-896-1600 or http://www.airacira.org/

November 7, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Networking Breakfast
         Marriott, Bridgewater, New Jersey
            Contact: 908-575-7333 or http://www.turnaround.org/

November 7-8, 2006
   EUROMONEY
      5th Annual Distressed Debt Investment Symposium
         Hyatt Regency, London, UK
            Contact: http://www.euromoneyplc.com/

November 8, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon & Guest Speaker, Joel Naroff to
      discuss the economy, lending and M&A markets
         Davio's Northern Italian Steakhouse, Philadelphia, PA
            Contact: http://www.turnaround.org/

November 8, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast Meeting
         Marriott Tyson's Corner, Vienna, Virginia
            Contact: 703-912-3309 or http://www.turnaround.org/

November 8, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Australia National Conference
         Sydney, Australia
            Contact: http://www.turnaround.org/

November 9, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Webinar "Second Lien Financing or Investing: Are
      There Opportunities for You?"
         TMA HQ, Chicago, IL
            Contact: http://www.turnaround.org/

November 14, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon Program
         St. Louis, Missouri
            Contact: 815-469-2935 or http://www.turnaround.org/

November 14, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon Program - Cost Containment Strategies
         St. Louis, MO
            Contact: http://www.turnaround.org/

November 14, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Holiday Cocktail Reception Honoring the
      Bankruptcy Benches of the Southern &
      Eastern Districts of New York and New Jersey
      Association of the Bar of the City of New York
         New York, NY
            Contact: http://www.turnaround.org/

November 15, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Joint Reception with NYIC/NYTMA
         TBA, New York
            Contact: 908-575-7333 or http://www.turnaround.org/

November 15, 2006
   LI TMA Formal Event
      TMA Australia National Conference
         Long Island, New York
            Contact: http://www.turnaround.org/

November 15, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         Citrus Club, Orlando, Florida
            Contact: 561-882-1331 or http://www.turnaround.org/

November 15-16, 2006
   EUROMONEY INSTITUTIONAL INVESTOR
      Asia Capital Markets Forum
         Island Shangri-La, Hong Kong
            Contact: http://www.euromoneyplc.com/

November 16, 2006
   BEARD AUDIO CONFERENCES
      KERPs and Bonuses under BAPCPA
         New Legal Strategies for Retaining Executives at Troubled
            Companies
               Contact: 240-629-3300;
               http://www.beardaudioconferences.com/

November 16, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Bankruptcy Judges Panel
         Duquesne Club, Pittsburgh, Pennsylvania
            Contact: http://www.turnaround.org/

November 16, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Dinner Program
         TBA, Seattle, Washington
            Contact: 503-223-6222 or http://www.turnaround.org/

November 16, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Dinner Program
         TBA, Seattle, WA
            Contact: 403-294-4954 or http://www.turnaround.org/

November 16, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Life in the Bankruptcy Court with BAPCPA,
      A View from The Bench
         Oxford Hotel, Denver, CO
            Contact: http://www.turnaround.org/

November 16-17, 2006
   STRATEGIC RESEARCH INSTITUTE
      8th Annual West Distressed Debt Investing Forum
         Venetian Resort Hotel Casino, Las Vegas, NV
            Contact: http://www.srinstitute.com

November 17, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast with Harry Nolan, Author of
         Airline without a Pilot - Lessons in Leadership
         Westin Buckhead, Atlanta, GA
            Contact: http://www.turnaround.org/

November 23, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Martini Party
         Vancouver, British Columbia
            Contact: 403-294-4954 or http://www.turnaround.org/

November 23-24, 2006
   EUROMONEY CONFERENCES
      5th Annual China Conference
         China World Hotel
         Beijing, China
            Contact: http://www.euromoneyconferences.com/

November 27-28, 2006
   BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES
      Thirteenth Annual Conference on Distressed Investing
      Maximizing Profits in the Distressed Debt Market
         The Essex House Hotel - New York
            Contact: 903-595-3800; 1-800-726-2524;
            http://www.renaissanceamerican.com/

November 28, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon
         Centre Club, Tampa, FL
            Contact: 561-882-1331 or http://www.turnaround.org/

November 28, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Joint TMA Florida/ACG Tampa Bay Luncheon
      Buying and Selling a Troubled Company
         Centre Club, Tampa, FL
            Contact: http://www.turnaround.org/

November 29, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Special Program
         TBA, New Jersey
            Contact: 908-575-7333 or http://www.turnaround.org/

November 29, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Turnaround Industry Trends
         Jasna Polana, Princeton, NJ
            Contact: http://www.turnaround.org/

November 30, 2006
   EUROMONEY CONFERENCES
      Euromoney/DIFC Annual Conference
      Managing superabundant liquidity
         Madinat Jumeirah, Dubai
            Contact: http://www.euromoneyconferences.com/

November 30-December 2, 2006
   AMERICAN BANKRUPTCY INSTITUTE
      Winter Leadership Conference
         Hyatt Regency at Gainey Ranch, Scottsdale, Arizona
            Contact: 1-703-739-0800; http://www.abiworld.org/

December 5, 2006
   EUROMONEY CONFERENCES
      CFO Forum
         Hyatt Regency, Hangzhou, China
            Contact: http://www.euromoneyconferences.com/

December 6, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Holiday Dinner
         Portland, Oregon
            Contact: 503-223-6222 or http://www.turnaround.org/

December 7, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Networking Breakfast
         The Newark Club, Newark, New Jersey
            Contact: 908-575-7333 or http://www.turnaround.org/

December 7, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Cash Management After The Storm:
      Near-Term Planning for Long-Term Business Success
         Sheraton, Metairie, LA
            Contact: http://www.turnaround.org/

December 13, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      LI TMA Holiday Party
         TBA, Long Island, New York
            Contact: 631-251-6296 or http://www.turnaround.org/

December 13, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Christmas Function
         GE Commercial Finance, Sydney, Australia
            Contact: 0438 653 179 or http://www.turnaround.org/

December 20, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Holiday Extravaganza - TMA, AVF & CFA
         Georgia Aquarium, Atlanta, GA
            Contact: 678-795-8103 or http://www.turnaround.org/

January 11, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Lender's Panel
         University Club, Jacksonville, FL
            Contact: http://www.turnaround.org/

January 12, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Annual Lender's Panel Breakfast
         Westin Buckhead, Atlanta, GA
            Contact: http://www.turnaround.org/

January 17, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         TBA, South FL
            Contact: 561-882-1331 or http://www.turnaround.org/

January 17-19, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Distressed Investing Conference
         Wynn, Las Vegas, NV
            Contact: http://www.turnaround.org/

February 8-11, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Certified Turnaround Professional (CTP) Training
         NY/NJ
            Contact: http://www.turnaround.org/

February 22, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA PowerPlay - Atlanta Thrashers
         Philips Arena, Atlanta, GA
            Contact: 678-795-8103 or http://www.turnaround.org/

January 25-27, 2007
   AMERICAN BANKRUPTCY INSTITUTE
      Rocky Mountain Bankruptcy Conference
         Hyatt Regency, Denver, CO
            Contact: 1-703-739-0800; http://www.abiworld.org/

February 25-26, 2007
   NORTON INSTITUTES
      Norton Bankruptcy Litigation Institute
         Marriott Park City, UT
            Contact: http://www2.nortoninstitutes.org/

February 2007
   AMERICAN BANKRUPTCY INSTITUTE
      International Insolvency Symposium
         San Juan, Puerto Rico
            Contact: 1-703-739-0800; http://www.abiworld.org/

March 15, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Martini Madness Cocktail Reception with Geraldine Ferraro
         Westin Buckhead, Atlanta, GA
            Contact: 678-795-8103 or http://www.turnaround.org/

March 15-18, 2007
   NATIONAL ASSOCIATION OF BANKRUTPCY TRUSTEES
      NABT Spring Seminar
         Ritz-Carlton Buckhead, Atlanta, GA
            Contact: http://www.NABT.com/

March 21, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         TBA, South FL
            Contact: 561-882-1331 or http://www.turnaround.org/

March 27-31, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Spring Conference
         Four Seasons Las Colinas, Dallas, Texas
            Contact: http://www.turnaround.org/

March 29-31, 2007
   ALI-ABA
      Chapter 11 Business Reorganizations
         Scottsdale, Arizona
            Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/

April 11-15, 2007
   AMERICAN BANKRUPTCY INSTITUTE
      ABI Annual Spring Meeting
         J.W. Marriott, Washington, DC
            Contact: 1-703-739-0800; http://www.abiworld.org/

April 12, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon
         University Club, Jacksonville, FL
            Contact: 561-882-1331 or http://www.turnaround.org/

April 20, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast meeting with Chapter President, Bruce Sim
         Westin Buckhead, Atlanta, GA
            Contact: 678-795-8103 or http://www.turnaround.org/

April 29 - May 1, 2007
   INTERNATIONAL BAR ASSOCIATION
      International Insolvency Conference
      Zurich, Switzerland
            Contact: http://www.ibanet.org/

May 14, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Annual TMA Atlanta Golf Outing
         White Columns, Atlanta, GA
            Contact: 678-795-8103 or http://www.turnaround.org/

May 16, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         TBA, South FL
            Contact: 561-882-1331 or http://www.turnaround.org/

June 6-9, 2007
   ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
      23rd Annual Bankruptcy & Restructuring Conference
         Westin River North, Chicago, Illinois
            Contact: http://www.airacira.org/

June 14-17, 2007
   AMERICAN BANKRUPTCY INSTITUTE
      Central States Bankruptcy Workshop
         Grand Traverse Resort, Traverse City, Michigan
            Contact: 1-703-739-0800; http://www.abiworld.org/

June 28 - July 1, 2007
   NORTON INSTITUTES
      Norton Bankruptcy Litigation Institute
         Jackson Lake Lodge, Jackson Hole, WY
            Contact: http://www2.nortoninstitutes.org/

July 12, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon
         University Club, Jacksonville, FL
            Contact: 561-882-1331 or www.turnaround.org

July 12-15, 2007
   AMERICAN BANKRUPTCY INSTITUTE
      Northeast Bankruptcy Conference
         Marriott, Newport, RI
            Contact: 1-703-739-0800; http://www.abiworld.org/

July 18, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         TBA, South FL
            Contact: 561-882-1331 or http://www.turnaround.org/

September 19, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         TBA, South FL
            Contact: 561-882-1331 or http://www.turnaround.org/

October 10-13, 2007
   NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
      National Conference of Bankruptcy Judges
         Orlando, Florida
            Contact: http://www.ncbj.org/

October 11, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon
         University Club, Jacksonville, FL
            Contact: 561-882-1331 or http://www.turnaround.org/

October 16-19, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         Marriott Copley Place, Boston, Massachusetts
            Contact: 312-578-6900; http://www.turnaround.org/

December 6-8, 2007
   AMERICAN BANKRUPTCY INSTITUTE
      Winter Leadership Conference
         Westin Mission Hills Resort, Rancho Mirage, California
            Contact: 1-703-739-0800; http://www.abiworld.org/

December 19, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         TBA, South FL
            Contact: 561-882-1331 or http://www.turnaround.org/

January 10, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon
         University Club, Jacksonville, FL

March 25-29, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Spring Conference
         Ritz Carlton Grande Lakes, Orlando, Florida
            Contact: http://www.turnaround.org/

June 4-7, 2008
   ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
      24th Annual Bankruptcy & Restructuring Conference
         JW Marriott Spa and Resort, Las Vegas, NV
            Contact: http://www.airacira.org/

September 24-27, 2008
   NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
      National Conference of Bankruptcy Judges
         Scottsdale, Arizona
            Contact: http://www.ncbj.org/

October 28-31, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         Marriott Copley Place, Boston, Massachusetts
            Contact: 312-578-6900; http://www.turnaround.org/

October 5-9, 2009
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         Marriott Desert Ridge, Phoenix, Arizona
            Contact: 312-578-6900; http://www.turnaround.org/

2009 (TBA)
   NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
      National Conference of Bankruptcy Judges
         Las Vegas, Nevada
            Contact: http://www.ncbj.org/

October 4-8, 2010
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         JW Marriott Grande Lakes, Orlando, Florida
            Contact: http://www.turnaround.org/

2010 (TBA)
   NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
      National Conference of Bankruptcy Judges
         New Orleans, Louisiana
            Contact: http://www.ncbj.org/

   BEARD AUDIO CONFERENCES
      Coming Changes in Small Business Bankruptcy
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Distressed Real Estate under BAPCPA
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      High-Yield Opportunities in Distressed Investing
         Audio Conference Recording
            Contact: 240-629-3300;
          http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Fundamentals of Corporate Bankruptcy and Restructuring
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Reverse Mergers - the New IPO?
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Dana's Chapter 11 Filing
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Employee Benefits and Executive Compensation
      under the New Code
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/


   BEARD AUDIO CONFERENCES
      Validating Distressed Security Portfolios: Year-End Price
      Validation and Risk Assessment
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Changing Roles & Responsibilities of Creditors' Committees
      Audio Conference Recording
         Contact: 240-629-3300;
         http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Calpine's Chapter 11 Filing
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Healthcare Bankruptcy Reforms
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Changes to Cross-Border Insolvencies
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      The Emerging Role of Corporate Compliance Panels
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com

   BEARD AUDIO CONFERENCES
      Privacy Rights, Protections & Pitfalls in Bankruptcy
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com

   BEARD AUDIO CONFERENCES
      High-Yield Opportunities in Distressed Investing
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com

   BEARD AUDIO CONFERENCES
      BAPCPA One Year On: Lessons Learned and Outlook
         Contact: http://www.beardaudioconferences.com
                  240-629-3300

   BEARD AUDIO CONFERENCES
      Calpine's Chapter 11 Filing
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Changes to Cross-Border Insolvencies
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Changing Roles & Responsibilities of Creditors' Committees
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Clash of the Titans -- Bankruptcy vs. IP Rights
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Coming Changes in Small Business Bankruptcy
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Dana's Chapter 11 Filing
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Deepening Insolvency - Widening Controversy: Current Risks,
      Latest Decisions
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Distressed Market Opportunities
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Distressed Real Estate under BAPCPA
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Employee Benefits and Executive Compensation under the New
      Code
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Fundamentals of Corporate Bankruptcy and Restructuring
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Healthcare Bankruptcy Reforms
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      High-Yield Opportunities in Distressed Investing
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Homestead Exemptions under BAPCPA
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Privacy Rights, Protections & Pitfalls in Bankruptcy
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Reverse Mergers-the New IPO?
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Surviving the Digital Deluge: Best Practices in E-Discovery
      and Records Management for Bankruptcy Practitioners and
      Litigators
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      Validating Distressed Security Portfolios: Year-End Price
      Validation and Risk Assessment
         Contact: http://www.beardaudioconferences.com
         240-629-3300

   BEARD AUDIO CONFERENCES
      When Tenants File -- A Landlord's BAPCPA Survival Guide
         Contact: http://www.beardaudioconferences.com
         240-629-3300

The Meetings, Conferences and Seminars column appears in the
Troubled Company Reporter each Wednesday. Submissions via e-mail
to conferences@bankrupt.com are encouraged.


                            ***********


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

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

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

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

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

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


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