TCRLA_Public/061115.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Wednesday, November 15, 2006, Vol. 7, Issue 227

                          Headlines

A R G E N T I N A

ATALAYA CONSULTORES: Asks for Court Approval to Restructure Debt
BALLY TECH: Secures Ticket Systems Pact with Trump Entertainment
BALLY TECH: Inks Joint Dev't & Marketing Pact with Aristocrat
BANCO FRANCES: Achieves Full-Year 2006 Loan Target
BANCO GALICIA: Posts ARS8.8 Mil. Third Quarter 2006 Net Profit

BANCO GALICIA: Posts ARS8.8 Mil. Third Quarter 2006 Net Profit
BANCO GALICIA: Third Quarter Results Disappoint Parent Firm
BANCO MACRO: Fitch Expects to Rate B-/RR6 on US$150MM Sub. Bonds
FAVENIX SA: Verification of Proofs of Claim Is Until Feb. 5
LERDA HERMANOS: Names Susana Martin as Bankruptcy Trustee

LINCALEL SA: Seeks for Court Approval to Reorganize Business
MICROOMNIBUS ESTE: Trustee Verifies Proofs of Claim Until Dec. 2
YPF SA: Parent Acquires 28% Stake in Genghis Khan Oil Field
TELECOM PERSONAL: Posts ARS36MM Third Quarter 2006 Net Profits
VALEANT PHARMA: Investigated for Backdating of Stock Options

VERIFONE: Exceeds 150,000 Systems Sold for Terminalization Prog.

B E L I Z E

* BELIZE: City Council Filing Civil Lawsuit Against Former Mayor

B E R M U D A

PANTHER RE: Moody's Rates US$$144MM Mezzanine Term Loans at Ba2
PXRE GROUP: Reports US$4.5MM Net Income in Third Quarter 2006

B R A Z I L

BANCO DO BRASIL: Earns BRL4.88B for First Nine Months of 2006
BANCO DO BRASIL: Manager Accused of Fraudulent Sale of Stocks
BANCO NACIONAL: Disbursements Reach BRL35.45B in First 10 Months
BANCO NACIONAL: Posts BRL2.40B Third Quarter 2006 Net Profits
BANCO PINE: IDB Issues US$1.98 Million Credit Guarantee

CIA PARANAENSE: Posts BRL932MM Third Quarter 2006 Net Income
COMPANHIA PARANAENSE: Posts BRL933 Mil. First Nine-Month Profits
GERDAU SA: Third Quarter Results Were the Best, Says Analyst
GULFMARK OFFSHORE: Earns US$39.8 Million in 2006 Third Quarter
GULFMARK OFFSHORE: Moody's Assigns Loss-Given-Default Rating

LUCENT TECHNOLOGIES: U.S. Congress to Probe Alcatel Merger Today
PETROLEO BRASILEIRO: Brokers Arrested for Fraudulent Stock Sale
PETROLEO BRASILEIRO: Will Export Bioethanol to Japan in 2008
PETROLEO BRASILEIRO: Will Ink Accord with Peru
TELE NORTE: Shareholders Fail to Decide on Restructuring Plan

USINAS SIDERURGICAS: Companhia Vale Closes Partial Sale of Share

C A Y M A N   I S L A N D S

ATS ARGUS: Shareholders Convene for Final Meeting on Nov. 17
CB TOPPS: Final Shareholders Meeting Is Set for Nov. 17
CPF LTD: Final Shareholders Meeting Is Scheduled for Nov. 17
CYPRESS LANCASHIRE: Last Shareholders Meeting Is on Nov. 17
DORIC KASAGI US: Last Shareholders Meeting Is Set for Nov. 17

DORIC (FEEDER): Shareholders Gather for Final Meeting on Nov. 17
DORIC KASAGI: Invites Shareholders for Final Meeting on Nov. 17
GLOBAL LONG/SHORT: Final Shareholders Meeting Is on Nov. 17
GLOBAL MACRO: Last Shareholders Meeting Is Scheduled for Nov. 17
LONGHORN CDO II: Liquidator Presents Wind Up Accounts on Nov. 17

C H I L E

ENDESA CHILE: Will Provide Power Tendered by Local Distributors

C O L O M B I A

ARMSTRONG WORLD: Earns US$39.2 Million in 2006 Third Quarter
BANCO DEL CAFE: IFC Providing US$200MM for Firm's Acquisition

C O S T A   R I C A

BETONSPORTS: Agrees to Stop Trading in Missouri to Settle Suit
USG CORP: S&P Assign BB+ Rating on US$500MM Sr. Unsecured Notes

C U B A

* CUBA: Credit Suisse & UBS Stop Business in Country
* CUBA: UN General Assembly Urges U.S. to Lift Trade Embargo

D O M I N I C A N   R E P U B L I C

CAP CANA: Completes US$250-Million Corporate Bond Issue

* DOMINICAN REPUBLIC: President Urges Aid for Haiti

H A I T I

* HAITI: Dominican Republic's President Urges Aid for Country

J A M A I C A

AIR JAMAICA: Managers to Negotiate New Wage with Unions
AIR JAMAICA: Management Will Discuss with Unions Firm's Future
DIGICEL LTD: Launches Webflex Service

M E X I C O

ALESTRA: Grupo Iusacell & Unefon Accuse Firm of Fraud
AMERICAN TOWER: Special Committee Reports Stock Grants Findings
GENERAL MOTORS: Plans US$1.5 Bil. Secured Loan by Year-End 2006
GENERAL MOTORS: Fitch Rates US$1.5 Billion Term Loan at 'BB/RR1'
GENERAL MOTORS: Moody's Rates Proposed US$1.5 Bil. Loan at Ba3

GENERAL MOTORS: Wants to Boost Production Capacity in Thailand
GRUPO IUSACELL: Accuses National Fixed Line Operators of Fraud
KANSAS CITY SOUTHERN: Offering US$150MM of Senior Notes Due 2013
KANSAS CITY SOUTHERN: Moody's Rates Sr. Unsecured Notes at B3
KANSAS CITY SOUTHERN: S&P Puts B- Rating on US$150MM Sr. Notes

* STATE OF HIDALGO: Moody's Assigns Ba2 Local Currency Rating

P A N A M A

CHIQUITA BRANDS: Obtains Permanent Amendment to Credit Facility
CHIQUITA BRANDS: S&P Affirms B Rating After Covenant Amendment

P A R A G U A Y

* PARAGUAY: IDB Grants US$1.8MM to Promote Tourism in Guarani

P E R U

* PERU: Will Ink Accord with Petroleo Brasileiro

P U E R T O   R I C O

INTERLINE BRANDS: Names CEO Michael Grebe as Board Chairman
MUSICLAND HOLDING: Files 2nd Amended Joint Plan of Liquidation
MUSICLAND HOLDING: Iowa Revenue Opposes Second Amended Plan
NBTY INC: Third Quarter 2006 Net Income Up 230% to US$38MM
SUNCOM WIRELESS: Selling Domestic Tower Assets to SBA Comms

S T  K I T T S  A N D  N E V I S

DIGICEL: Investing US$100,000 in St. Kitts to Improve Coverage

T R I N I D A D   &   T O B A G O

DELTA AIR: Launches New Nonstop Service to Trinidad & Tobago

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Eni Sues Over Halt of Dacion Operations

* Bermuda Accountants Must Conform to Int'l Reporting Standards
* Cadwalader Names Special Counsel Across Practices and Offices
* WB Says Developing Nations' Remittance Flows May Reach US$200B


                          - - - - -


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


ATALAYA CONSULTORES: Asks for Court Approval to Restructure Debt
----------------------------------------------------------------
Court No. 26 in Buenos Aires is studying the merits of Atalaya
Consultores en Seguridad SA's petition to restructure its debts
after it stopped paying its obligations on May 16, 2006.

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

Clerk No. 52 assists the court in the proceeding.

The debtor can be reached at:

          Atalaya Consultores en Seguridad SA
          Mariano Acha 2102
          Buenos Aires, Argentina


BALLY TECH: Secures Ticket Systems Pact with Trump Entertainment
----------------------------------------------------------------
Bally Technologies, Inc., has signed a contract with Trump
Entertainment Resorts, Inc., for Bally Power Promotions, Bally
Power Winners and Bally eTICKET to replace existing two-wire
ticket-in/ticket-out systems at three Atlantic City casinos
covering more than 8,000 slot machines.

Trump Entertainment Resorts selected eTICKET to enhance the
player experience at the Trump Taj Mahal, Trump Marina and Trump
Plaza resort locations.  Bally Power Promotions will allow Trump
Entertainment Resorts to offer its players downloadable
promotional slot credits. Bally Power Winners will allow Trump
Entertainment Resorts to build and offer custom random
progressive jackpots across all of its slot floors. Both of
these new technology products for Trump Entertainment Resorts
require regulatory approval.

Virginia McDowell, Executive Vice President and Chief
Information Officer of Trump Entertainment Resorts, said:
"Selecting eTICKET and replacing our existing two-wire ticketing
system was a natural choice for us.  Bally Power Promotions fits
in very well with our planned marketing programs by giving us
the ability to offer our guests downloadable promotional credits
right at the game."

"We chose Power Promotions because we believe it will help us
continue to raise the level of excitement on our casino floors,"
said Jeanne-Marie Wilkins, Vice President of Business Strategy
of Trump Entertainment Resorts.  "We believe this technology
will enhance our guests' experience and add value to our
customer loyalty program."

The three properties are scheduled to complete the conversion to
eTICKET by the end of 2006, bringing Bally's worldwide count of
eTICKET machines to more than 200,000.

"We are now moving toward a 100-percent market-share position in
Atlantic City with our single-wire ticketing technology by
replacing previous two-wire ticketing systems," said Tom Reilly,
Vice President, Eastern Region System Sales for Bally.  "This
consolidates accounting into the Bally SMS system, subsequently
increasing customer-service levels while at the same time
providing an enhanced level of operational efficiencies that
couldn't be achieved with a separate ticketing system."

Las Vegas, Nev.-based Bally Technologies, Inc. (NYSE: BYI)
-- http://www.BallyTech.com/-- designs, manufactures, operates,
and distributes advanced gaming devices, systems, and technology
solutions worldwide.  Bally's product line includes reel-
spinning slot machines, video slots, wide-area progressives and
Class II lottery and central determination games and platforms.
Bally Technologies also offers an array of casino management,
slot accounting, bonus, cashless, and table management
solutions.  The company also owns and operates Rainbow Casino in
Vicksburg, Miss.  The company's South American operations are
located in Argentina.  The company also has operations in Macau,
China, and India.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 16, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Technologies Inc., including the 'B' corporate credit rating, on
CreditWatch with negative implications.


BALLY TECH: Inks Joint Dev't & Marketing Pact with Aristocrat
-------------------------------------------------------------
Bally Technologies, Inc., and Las Vegas-based Aristocrat
Technologies, Inc., entered into an agreement to develop and
market a common download system that manages configuration and
content download in accordance with Gaming Standards Association
or GSA, G2S and S2S protocols.

Bally and Aristocrat believe that a significant opportunity
exists in adopting open industry standards to facilitate inter-
operability between manufacturers.  The companies are combining
their resources and expertise in download and systems technology
to develop a common download and configuration system and
associated protocols.

The GSA-standard Downloadable Configuration Manager (DCM) will
allow content download and configuration management and will be
designed to co-exist with both companies' slot and casino
management systems, utilizing S2S and other manufacturers'
devices that communicate G2S protocols.  Game content will
continue to be proprietary to each manufacturer's game cabinet
and platform.

"Our customers will benefit from this arrangement as we push for
open industry standards developed specifically for this exciting
new phase in the gaming industry," said Richard Haddrill, CEO of
Bally Technologies.  "This spirit of cooperation among two
technology leaders will go a long way toward an overall download
implementation that benefits both operators and players."

"This is an exciting opportunity to advance the downloadable
technology offerings for both companies," said Paul Oneile, CEO
and Managing Director for Aristocrat Leisure, Ltd.  "With a
combined install base of over 70 percent of casino management
systems in North America, Aristocrat and Bally are poised to
produce what we believe will be a very compelling product for
this sector of the gaming industry."

Las Vegas, Nev.-based Bally Technologies, Inc. (NYSE: BYI)
-- http://www.BallyTech.com/-- designs, manufactures, operates,
and distributes advanced gaming devices, systems, and technology
solutions worldwide.  Bally's product line includes reel-
spinning slot machines, video slots, wide-area progressives and
Class II lottery and central determination games and platforms.
Bally Technologies also offers an array of casino management,
slot accounting, bonus, cashless, and table management
solutions.  The company also owns and operates Rainbow Casino in
Vicksburg, Miss.  The company's South American operations are
located in Argentina.  The company also has operations in Macau,
China, and India.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 16, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Technologies Inc., including the 'B' corporate credit rating, on
CreditWatch with negative implications.


BANCO FRANCES: Achieves Full-Year 2006 Loan Target
--------------------------------------------------
The Investors relations manager of BBVA Banco Frances said in a
conference call that the bank achieved its full-year 2006 loan
target in the first nine months of 2006.

Business News Americas relates that private sector lending
increased 67.5% to ARS5.69 billion in September 2006, compared
with September 2005.

The report says that Banco Frances' loan target for 2006 was
ARS5.47 billion.

According to BNamericas, stronger loan volume boosted Banco
Frances' third quarter 2006 consolidated profits 66.9% to
ARS46.1 million, or US$0.29 per ADR, compared with the third
quarter of 2005.

Banco Frances' annualized return on assets and return on equity
increased 1.17% and 9.80% in the third quarter of 2006 from
0.72% and 6.27% respectively in the third quarter of 2005,
BNamericas states.

Headquartered in Buenos Aires, Argentina, BBVA Banco Frances SA
-- http://www.bancofrances.com-- conducts capital markets and
securities operations directly, in the over-the-counter market,
and through a subsidiary, in the Buenos Aires Stock Exchange.
The bank operates 227 branches, 512 automated teller machines
(ATMs), a telephone banking service and an Internet banking
service, called Frances Net.  Banco Frances has a market share
in the mutual fund portfolio management industry in Argentina
through Frances Administradora de Inversiones SA, and in the
pension fund industry through Consolidar AFJP SA.  Banco Frances
is a subsidiary of Banco Bilbao Vizcaya Argentaria.

                        *    *    *

As reported on June 2, 2006, Moody's Investors Service upgraded
the Bank Financial Strength Rating of BBVA Banco Frances SA to
D- from E to reflect:

   -- the bank's improving financial fundamentals,
   -- the relative improvement in the operating environment, and
   -- the recovery of the banking system since the financial
      crisis of 2001-2002.

BBVA Banco Frances long-term bank deposits carries Moody's
Investor Service's Caa1 rating.


BANCO GALICIA: Posts ARS8.8 Mil. Third Quarter 2006 Net Profit
--------------------------------------------------------------
Banco Galicia said in its latest earnings release that it net
profit decreased 59.3% to ARS8.8 million in the third quarter of
2006, compared with the same period of 2005.

Business News Americas relates that Banco Galicia's return on
equity dropped to 2.56% in the third quarter of 2006, compared
with the 6.35% recorded in the same quarter of 2005.  The bank's
return on assets declined to 0.25% in the third quarter of 2006,
from 0.44% in the third quarter of 2005.

Net interest income of Banco Galicia decreased 34.3% to ARS66.8
million in the third quarter of 2006, compared with the same
quarter of 2005, due to higher-than-expected deposit costs and
weaker loan interest generation, BNamericas notes.  Banco
Galicia's financial margin decreased to 1.21% in the third
quarter of 2006, from 1.85% in the third quarter of 2005.

BNamericas states that Banco Galicia's net service income
increased 31.7% to ARS172 million, which is slightly above local
brokerage Allaria Ledesma's ARS164 million forecast.  The bank's
administrative expenses rose 26.8% to ARS246 million.

Guido Bizzozero, an analyst at Allaria Ledesma told BNamericas
that Banco Galicia still keeps 56% of total assets in
government-backed securities, which makes its funding structure
too expensive and conspires against the bank's results.

BNamericas underscores that Banco Galicia's exposure to public
sector assets dropped 13.3% to ARS14.3 billion in September
2006, compared with September 2005.

Banco Galicia's lending to the private sector increased 39.5% to
ARS9.04 billion in September 2006, compared with September 2005,
due to strong increases in small and medium-sized enterprises,
corporate and consumer lending, BNamericas says.

BNamericas emphasizes that Banco Galicia's past-due loans as a
percentage of total loans decreased to 2.44% in 2006, from 6.23%
in 2005.

Banco Galicia's deposits increased 31.6% to ARS10.1 billion
September 2006, from September 2005, according to BNamericas.
Market share rose 6.22% in the 12 months ending September 2006,
from 5.90% in the same period of 2005.

The report says that Banco Galicia's assets and liabilities
remained virtually flat at ARS25.3 billion and ARS23.9 billion
respectively in September 2006, compared with September 2005.
Shareholder equity was ARS1.37 billion.

Banco Galicia's board ratified a capital raise of up to ARS100
million in October to improve equity structure and decrease
funding costs, BNamericas states.

                        *    *    *

As reported on Apr. 12, 2006, the Argentine arm of Standard &
Poor's assigned these ratings to Banco de Galicia y Buenos
Aires' debts:

   -- Obligaciones negociables, serie 6, emitted on July 19,
      2002 for US$73,000,000, emitted under the program for
      US$1000 million

      * Last due: Aug. 3, 2007
      * Rate: raA

   -- Obligaciones Negociables, clase 7 for US$43,000,000,
      included under the US$1000 million program

      * Last due: Aug. 3, 2007
      * Rate: raA

   -- Program of obligaciones negociables, media term, for
      US$2,000,000,000

      * Rate: raA

   -- Obligaciones Negociables simples 8-11-93, for
      US$21,400,000

      * Last due: Nov. 1, 2004
      * Rate: raD

   -- Obligaciones negociables simples for US$21,400,000

      * Last due: Nov. 1, 2004
      * Rate: raD

   -- Obligaciones Negociables emitted for US$9,000,000,
      included under the US$1000 million program.

      * Last due: Dec. 20, 2005
      * Rate: raD


BANCO GALICIA: Posts ARS8.8 Mil. Third Quarter 2006 Net Profit
--------------------------------------------------------------
Banco Galicia said in its latest earnings release that its net
profit decreased 59.3% to ARS8.8 million in the third quarter of
2006, compared with the same period of 2005.

Business News Americas relates that Banco Galicia's return on
equity dropped to 2.56% in the third quarter of 2006, compared
with the 6.35% recorded in the same quarter of 2005.  The bank's
return on assets declined to 0.25% in the third quarter of 2006,
from 0.44% in the third quarter of 2005.

Net interest income of Banco Galicia decreased 34.3% to ARS66.8
million in the third quarter of 2006, compared with the same
quarter of 2005, due to higher-than-expected deposit costs and
weaker loan interest generation, BNamericas notes.  Banco
Galicia's financial margin decreased to 1.21% in the third
quarter of 2006, from 1.85% in the third quarter of 2005.

BNamericas states that Banco Galicia's net service income
increased 31.7% to ARS172 million, which is slightly above local
brokerage Allaria Ledesma's ARS164 million forecast.  The bank's
administrative expenses rose 26.8% to ARS246 million.

Guido Bizzozero, an analyst at Allaria Ledesma told BNamericas
that Banco Galicia still keeps 56% of total assets in
government-backed securities, which makes its funding structure
too expensive and conspires against the bank's results.

BNamericas underscores that Banco Galicia's exposure to public
sector assets dropped 13.3% to ARS14.3 billion in September
2006, compared with September 2005.

Banco Galicia's lending to the private sector increased 39.5% to
ARS9.04 billion in September 2006, compared with September 2005,
due to strong increases in small and medium-sized enterprises,
corporate and consumer lending, BNamericas says.

BNamericas emphasizes that Banco Galicia's past-due loans as a
percentage of total loans decreased to 2.44% in 2006, from 6.23%
in 2005.

Banco Galicia's deposits increased 31.6% to ARS10.1 billion
September 2006, from September 2005, according to BNamericas.
Market share rose 6.22% in the 12 months ending September 2006,
from 5.90% in the same period of 2005.

The report says that Banco Galicia's assets and liabilities
remained virtually flat at ARS25.3 billion and ARS23.9 billion
respectively in September 2006, compared with September 2005.
Shareholder equity was ARS1.37 billion.

Banco Galicia's board ratified a capital raise of up to ARS100
million in October to improve equity structure and decrease
funding costs, BNamericas states.

                        *    *    *

As reported on Apr. 12, 2006, the Argentine arm of Standard &
Poor's assigned these ratings to Banco de Galicia y Buenos
Aires' debts:

   -- Obligaciones negociables, serie 6, emitted on July 19,
      2002 for US$73,000,000, emitted under the program for
      US$1000 million

      * Last due: Aug. 3, 2007
      * Rate: raA

   -- Obligaciones Negociables, clase 7 for US$43,000,000,
      included under the US$1000 million program

      * Last due: Aug. 3, 2007
      * Rate: raA

   -- Program of obligaciones negociables, media term, for
      US$2,000,000,000

      * Rate: raA

   -- Obligaciones Negociables simples 8-11-93, for
      US$21,400,000

      * Last due: Nov. 1, 2004
      * Rate: raD

   -- Obligaciones negociables simples for US$21,400,000

      * Last due: Nov. 1, 2004
      * Rate: raD

   -- Obligaciones Negociables emitted for US$9,000,000,
      included under the US$1000 million program.

      * Last due: Dec. 20, 2005
      * Rate: raD


BANCO GALICIA: Third Quarter Results Disappoint Parent Firm
-----------------------------------------------------------
Banco Galicia's third quarter results has offset parent firm
Grupo Financiero Galicia's 25% boost in its third quarter net
profit, Reuters reports.

Grupo Galicia told Reuters that its shares sank as a direct
result over the performance of Banco Galicia.

Francisco Prack, Grupo SBS chief economist, told BNamericas,
"Grupo Financiero Galicia had good earnings thanks to the
revaluation of their holding of Banco Galicia bonds.  However,
if you look at how Banco Galicia did, in reality their main
asset, the results were disappointing."

According to Reuters, Grupo Financiero's net profit increased to
ARS33.2 million in the third quarter of 2006, compared with
ARS26.5 million in the same period in 2005, due to income from
Banco Galicia bonds.  The amount was higher than the estimates
by five analysts, who had projected on average that the company
would post a third-quarter profit of ARS19.1 million.

Grupo Galicia said in a filing with the Buenos Aires Stock
Exchange that Banco Galicia third quarter net profit was ARS8.8
million.

Banco Galicia had seen its deposits increase 31.6% over the last
12 months along with a 39.5% boost in loans and other funding to
the private sector, Grupo Galicia told Reuters.

Shares of Grupo Galicia lost ground in Buenos Aires after Banco
Galicia's results were disclosed, Reuters states.

Headquartered in Buenos Aires, Argentina, Banco de Galicia y
Buenos Aires SA is a private bank that offers a full range of
banking services across the country, to 2.7 million individual
and corporate customers.  Banco Galicia operates an extensive
and diversified distribution network among private sector banks
in Argentina, offering more than 380 points of contact with
customers through its branches and electronic banking
facilities.  Banco Galicia customers also have access to
telephone banking services and e-galicia.com.

                        *    *    *

As reported on Apr. 12, 2006, the Argentine arm of Standard &
Poor's assigned these ratings to Banco de Galicia y Buenos
Aires' debts:

   -- Obligaciones negociables, series 6, issued
      July 19, 2002 for US$73,000,000, emitted under the program
      for US$1000 million

      * Last due: Aug. 3, 2007
      * Rate: raA

   -- Obligaciones Negociables, class 7 for US$43,000,000,
      included under the US$1000 million program

      * Last due: Aug. 3, 2007
      * Rate: raA

   -- Program of obligaciones negociables, media term, for
      US$2,000,000,000

      * Rate: raA

   -- Obligaciones Negociables simples 8-11-93, for
      US$21,400,000

      * Last due: Nov. 1, 2004
      * Rate: raD

   -- Obligaciones negociables simples for US$21,400,000

      * Last due: Nov. 1, 2004
      * Rate: raD

   -- Obligaciones Negociables emitted for US$9,000,000,
      included under the US$1000 million program.

      * Last due: Dec. 20, 2005
      * Rate: raD


BANCO MACRO: Fitch Expects to Rate B-/RR6 on US$150MM Sub. Bonds
----------------------------------------------------------------
Fitch is expected to assign a 'B-/RR6' foreign currency long-
term rating, and an 'A(arg)' national long-term rating to Banco
Macro's forthcoming US$150 million subordinated bonds due 2036.

Fitch currently rates Banco Macro as:

   -- Foreign and local currency long-term Issuer Default
      Rating: 'B+' (Stable Outlook);

   -- Short-term 'B';

   -- Individual 'D';

   -- Support '5';

   -- National long-term 'AA(arg)'; and

   -- National short-term 'A1+(arg)'.

The final ratings on the issue are contingent upon receipt of
final documentation conforming materially to information already
received.  The bonds will mature in 2036 and will be callable on
any interest payment date after 2016, only with funds raised
through the issuance of debt that rank pari passu with or is
junior to the bonds. Interest payments will be deferrable and
non-cumulative.  The bonds are expected to qualify as Tier 1
capital under recent regulatory definitions.

Banco Macro's ratings reflect its strong franchise and growth
potential, its good overall performance and sound liquidity and
capital base.  They also take into account the improvement in
the operating environment, although it remains potentially
volatile.

Banco Macro gained its significant position in the Argentine
financial system through various bank acquisitions since 1996.
Its sound performance is based on strong revenue generation,
income from its securities portfolio and significant recoveries,
mainly from the loan books of the acquired banks.

Banco Macro's lending has grown strongly and its asset quality
has improved significantly since 2002.  Non-performing loans
accounted for 2.3% of total loans at end-September 2006, with
loan loss reserve coverage of 147%.  The exposure to the public
sector, excluding central bank securities held for liquidity
management, fell to 10% of assets and around 63% of equity and
is almost entirely marked to market.

Banco Macro's main funding source is its large retail deposit
base and is accessing the national and international capital
markets in order to diversify and extend the maturity of its
funding.  Its liquidity is strong and its capital base is ample,
boosted by a ARS470 million capital increase done in March 2006.

Banco Macro is 42.5% owned by a group of Argentine individuals
leaded by Jorge Horacio Britto, who is also the bank's chairman
and CEO; the balance is widely held by local and foreign
investors.  Banco Macro is the fourth largest private sector
bank in Argentina by assets and deposits, with market shares of
around 6% and 11%, respectively.  With 437 branches it had the
largest network of the private sector banks.


FAVENIX SA: Verification of Proofs of Claim Is Until Feb. 5
-----------------------------------------------------------
Luis Maria Rementeira, the court-appointed trustee for Favenix
S.A.'s bankruptcy case, will verify creditors' proofs of claim
until Feb. 5, 2007.

Mr. Rementeira will present the validated claims in court as
individual reports on March 21, 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 Favenix 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 Favenix's accounting
and banking records will follow on May 9, 2007.

The debtor can be reached at:

          Favenix S.A.
          Nueva York 4325
          Buenos Aires, Argentina

The trustee can be reached at:

          Luis Maria Rementeira
          Piedras 1319
          Buenos Aires, Argentina


LERDA HERMANOS: Names Susana Martin as Bankruptcy Trustee
---------------------------------------------------------
A court in Bell Ville, Cordoba, appointed Susana Nieves del
Milagro Martin to supervise the reorganiztion proceeding of
Lerda Hermanos SH.  Under bankruptcy protection, control of the
company's assets is transferred to Ms. del Milagro Martin.

As trustee, Ms. del Milagro Martin will:

   -- verify creditors' proofs of claim; and

   -- prepare and present individual and general reports in
      court after the claims are verified.

After the verification phase, the 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 Lerda Hermanos and its creditors.

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

Lerda Hermanos will negotiate a settlement plan with its
creditors in order to avoid a straight liquidation.

The trustee can be reached at:

          Susana Nieves del Milagro Martin
          Rivadavia 66, Bell Ville
          Cordoba, Argentina


LINCALEL SA: Seeks for Court Approval to Reorganize Business
------------------------------------------------------------
Court No. 6 in Buenos Aires is studying the merits of Lincalel
SA's petition to reorganize its business after it stopped paying
its obligations.

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

Clerk No. 11 assists the court in the proceeding.

The debtor can be reached at:

          Lincalel SA
          Tucuman 834
          Buenos Aires, Argentina


MICROOMNIBUS ESTE: Trustee Verifies Proofs of Claim Until Dec. 2
----------------------------------------------------------------
Estudio Stolkiner y Asoc., the court-appointed trustee for
Microomnibus Este S.A.'s insolvency case, verifies creditors'
proofs of claim until Dec. 2, 2006.

Estudio Stolkiner will present the validated claims in court as
individual reports on March 26, 2007.  Court No. 8 in Buenos
Aires will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Microomnibus Este 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 Microomnibus Este's
accounting and banking records will follow on May 11, 2007.

On Sept. 11, 2007, Microomnibus Este's creditors will vote on a
settlement plan that the company will lay on the table.

Clerk No. 16 assists the court in the case.

The debtor can be reached at:

          Microomnibus Este S.A.
          Zelada 7587
          Buenos Aires, Argentina

The trustee can be reached at:

          Estudio Stolkiner y Asoc.
          Avenida Cordoba 1367
          Buenos Aires, Argentina


YPF SA: Parent Acquires 28% Stake in Genghis Khan Oil Field
-----------------------------------------------------------
The consortium, comprised of Repsol YPF (28%), YPF SA's parent
firm, BHP Billiton (44%) and Hess Corp. (28%) has acquired the
Genghis Khan oil field from Anadarko Petroleum Corp.  The field
is situated in deep waters of the Gulf of Mexico, in one of the
most profitable areas for the oil industry.  The total cost of
the transaction amounts to US$1.35 billion, of which Repsol
YPF's investment is US$378 million.

Currently, the Genghis Khan field has two wells and estimated
hydrocarbon reserves of arround 110 million barrels.  The
importance of the Genghis Kan acquisition is based on being an
extension of the Shenzi field, in which Repsol YPF has a 28%
stake, as well as, constituting one of the largest oil fields in
the deep waters of the U.S. Gulf of Mexico. The development of
both projects, in the same area, generates important synergies
for Repsol YPF.

Genghis Khan was discovered in 2005 and is situated in waters,
approximately 4,300 feet deep (1,330 meters).  The future
development of the field contemplates an addition of 6 or 7 new
wells.  The initial production of oil is expected to come mid
2007.

The final close of the transaction will take place upon the
conclusion of the due diligence on behalf of the buyers, once
all the necessary government requirements are obtained.

The deep waters of the Gulf of Mexico is one of World Wide areas
with mayor potential for exploration, with estimated resources
of at least 20 billion barrels.

The area posses not only, an attractive and stable legal
environment, but historically has lent itself to some of the
greatest returns on capital of the offshore oil industry.

Repsol YPF has had an important presence in the Gulf of Mexico
since 2003 and currently participates in 85 blocks situated in
areas of Green Canyon, Atwater Valley, Alamino Canyon and
Mississippi Canyon and operates 45 of them.  The initial
production, with relation to these assets, will begin in 2007.

The acquisition of Genghis Khan falls in line with Repsol YPF's
Strategic Plan in the Gulf of Mexico along with North Africa
(Algeria and Libia) and Trinidad and Tobago.  They constitute
the core business areas outside of Latin America, as well as,
contribute to the consolidation of a solid portfolio of assets
with great potential for the company.

YPF SA is an integrated oil and gas company engaged in the
exploration, development and production of oil and gas and
natural gas and electricity-generation activities (upstream),
the refining, marketing, transportation and distribution of oil
and a range of petroleum products, petroleum derivatives,
petrochemicals and liquid petroleum gas (downstream). Repsol,
which holds 99.04% of YPF's shares, controls YPF.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
June 9, 2006, under the revised foreign currency ceilings,
Moody's Investors Service upgraded YPF Sociedad Anonima's
Foreign Currency Corporate Family Rating to B2 from B3 with
negative outlook.


TELECOM PERSONAL: Posts ARS36MM Third Quarter 2006 Net Profits
--------------------------------------------------------------
Telecom Personal, Telecom Argentina's mobile unit, said in a
statement that its net profits totaled ARS36 million in the
third quarter of 2006, compared with a net loss of ARS32 million
in the third quarter of 2005.

Business News Americas relates that Telecom Personal's revenue
increased by 54% to ARS1.11 billion in the third quarter of
2006, from ARS734 million in the same period in 2005.

Telecom Personal disclosed net profits of ARS44 million in the
first nine months of 2006, compared with a net loss of ARS62
million in the first nine months of 2005, BNamericas notes.

According to BNamericas, Telecom Personal's revenue increased by
56% to ARS3 billion in the first nine months of 2006, from
ARS1.93 billion in the same period of 2005.

Valerio Cavallo, chief financial officer of Telecom Argentina,
said in a conference call, "Telecom continues to invest in its
mobile business as it plans to expand coverage and capacity of
its GSM network."

Telecom Argentina is focusing on expanding mobile telephony
coverage in the south of Argentina, BNamericas says, citing Mr.
Cavallo.

BNamericas states that Personal Telecom saw its client base
increased 45% to 7.7 million subscribers in the first nine
months of 2006, from the year-ago period.  About 65% of the
users are prepaid customers.

The report says that Nucleo -- Telecom Personal's unit in
Paraguay -- said that its users increased 61% to 941,000 in the
first nine months of 2006, compared with the same period of
2005.

Telecom Personal told BNamericas that it invested about ARS390
million in the first nine months of 2006.  The investment was
mainly aimed at expanding coverage and offering value added
services.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Nov. 13, 2006, Fitch Ratings affirmed Telecom Personal SA's
foreign and local currency Issuer Default Rating at 'B', and the
senior unsecured at 'B/RR4', and revised the Rating Outlook of
the international scale IDRs to Positive from Stable.
Approximately US$200 million in debt is affected by the rating
action. Fitch has also upgraded the national scale rating of
Personal to 'A(arg)' from 'BBB+(arg)' with a Stable Rating
Outlook.


VALEANT PHARMA: Investigated for Backdating of Stock Options
------------------------------------------------------------
Keller Rohrback L.L.P. commenced an investigation of Valeant
Pharmaceuticals International and current and former Company
executive officers and directors for potential violations
related to the backdating of stock options.

On Sept. 11, 2006, Valeant disclosed that it was conducting an
internal review of its historical stock option grant practices
and was cooperating with the U.S. Securities and Exchange
Commission's informal inquiry regarding stock options granted by
the Company since Jan. 1, 2000.

On Oct. 20, 2006, Valeant's Board of Directors concluded that,
based on the preliminary report of the special committee
conducting the internal review, options granted in 1997 and
"subsequent years" reflected incorrect measurement dates and
that correcting these measurement dates would result in
restatement of the Company's financial statements for
undetermined periods from 1997 to the present.  The Company
further stated that the special committee's review of Valeant's
stock option grant practices and its analysis regarding the
magnitude of financial restatements is ongoing.

Keller Rohrback's investigation focuses on the extent that the
Company's stock option grant dates and exercise prices of stock
options were manipulated by Valeant's executive officers and
directors in order to boost their value to those who received
them.  Specifically, Keller is looking at whether potential
defendants have breached their fiduciary duties and colluded
with one another to:

   (1) improperly backdate grants of Valeant's stock options to
       various executive officers and directors in violation of
       the Company's shareholder-approved stock option plans;

   (2) improperly record and account for the backdated stock
       options in violation of GAAP;

   (3) improperly take tax deductions based on the backdated
       stock options in violation of the Tax Code; and

   (4) produce and disseminate to the Company's shareholders
       false financial statements and other SEC filings that
       improperly recorded and accounted for the backdated
       option grants thereby concealing the improper backdating
       of stock options.

Current shareholders of Valeant stock may contact paralegal
Jennifer Tuato'o or attorneys Juli Farris, Elizabeth Leland,
Cari Campen Laufenberg, Lynn Sarko or Gary Gotto by telephone,
toll-free at 1-800-776-6044.

To date, more than 100 companies are being investigated by the
U.S. Department of Justice, the Securities and Exchange
Commission, and U.S. Attorney's offices across the country,
resulting in civil and even criminal charges.

                    About Keller Rohrback

Keller Rohrback L.L.P. is a law firm headquartered in Seattle
that has successfully represented shareholders and consumers in
class action cases for over two decades.  Its trial lawyers have
obtained judgments and settlements on behalf of clients in
excess of seven billion dollars.

   CONTACT:  Keller Rohrback L.L.P.
             Jennifer Tuato'o
             Paralegal
             (800) 776-6044

                        About Valeant

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International (NYSE:VRX) -- http://www.valeant.com/is a
research-based specialty pharmaceutical company that discovers,
develops, manufactures and markets products primarily in the
areas of neurology, infectious disease and dermatology.  The
company has offices in Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 26, 2006,
Standard & Poor's Ratings Services placed its ratings on Costa
Mesa, California-based Valeant Pharmaceuticals International,
including Valeant's 'BB-' corporate credit rating, on Credit
Watch with negative implications.


VERIFONE: Exceeds 150,000 Systems Sold for Terminalization Prog.
----------------------------------------------------------------
VeriFone Holdings, Inc., disclosed that the delivery of its
150,000th payment solution for Mexico's terminalization program.
This program is coordinated by FIMPE -- Fund of Infrastructure
of Electronic Payments -- that sponsors a series of actions
aiming to promote the usage of electronic payments under the
name "Boletazo," such as sweepstakes to encourage bank card
usage among cardholders as well as a nationwide program to
provide POS systems to small businesses.  VeriFone's deliveries
exceed the number of merchants that accepted electronic payments
prior to FIMPE's efforts.

Due to the efforts of FIMPE and VeriFone -- its primary supplier
of payment solutions -- both the number of POS transactions and
total sales volume at POS increased 49% during 2005.  This trend
continues in 2006: transactions at POS during the first half of
the year increased 133% compared to the same period in 2003,
according to recent numbers of the Banco de Mexico, Mexico's
Central Bank.

Mexican consumers and merchants are changing and evolving day by
day with the support of leading technology companies like
VeriFone and ambitious programs such as Boletazo.  Thanks to
this program, small-to-medium size businesses have been brought
into the 21st century with state of the art payment solutions by
just dialing a toll-free number to request a POS device.
VeriFone has contributed by providing and installing these
solutions in all sorts of businesses, from public markets to
drugstores, to grocery stores and virtually every business
category.

"If a merchant doesn't accept credit or debit card payment he
can be passing up almost 30% of their actual total sales
potential," said Fernando Lopez, VeriFone vice president and
general manager Latin America and the Caribbean.  "A merchant
who provides different payment options to customers is providing
increased security to his customers and growing his business.'

"Boletazo provides small businesses access to technology
previously limited to larger sized firms.  This way, small
businesses can offer better service to a larger clientele and
are brought closer to the wide array of financial products
offered by banks," said Roberto Isaac RodrĄguez, General
Director and Coordinator of the FIMPE.

                        About FIMPE

FIMPE is a non-profit private fund formed by financial
institutions to promote and extend the benefits of access to the
electronic payments network to small-to-medium size businesses,
and to foster the culture of electronic payments among merchants
and consumers.

                  About VeriFone Holdings

VeriFone Inc. is headquartered in Santa Clara, California, and
is a global market leader in the development and sale of point-
of-sale electronic payment systems.  The company has operations
in Argentina, Australia, Brazil, China, France, India, Malaysia,
Poland, the United Kingdom, the United States, among others.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 29, 2006,
Moody's Investors Service has affirmed the Corporate Family
Rating of B1 of VeriFone and revised the rating outlook to
stable from negative.  At the same time, Moody's assigned
ratings to new bank credit facilities that VeriFone will use to
finance its pending acquisition of Lipman Electronic Engineering
Ltd.




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


* BELIZE: City Council Filing Civil Lawsuit Against Former Mayor
----------------------------------------------------------------
The Belize City Council will file a civil lawsuit against David
Fonseca, former mayor from the People's United Party, Channel 5
Belize reports.

According to Channel 5, the council was infuriated after Kirk
Anderson, the director of public prosecutions, told them that
criminal charges won't be filed against Mr. Fonseca, as
accusations of theft against the latter could not be confirmed.

As Mr. Fonseca has repaid the over US$200,000 he received
through salary advances and loans, the allegations could not be
proven, Channel 5 notes.

Under the law, theft is defined as the intention to permanently
deprive another's property.

Mr. Anderson explained to Channel 5 that it was a breakdown in
internal controls that allowed Mr. Anderson's borrowing to get
out of control.

However, Zenaida Moya, the mayor of Belize City, asserted to
Channel 5 that another bulk sum of taxpayer dollars were issued
to Mr. Fonseca for distribution in a charity donation program.

Mayor Moya told Channel 5, "He has paid for the bounced check
amounts and we ensured that he paid also for the salary
advances."

When asked by Channel 5 regarding the amount, Mayor Moya said,
"Total for both of them was two hundred and eighteen thousand
dollars.  What he has not paid for is the amounts he says was
for the social assistance fund.  We know that at the end of the
day, that all the checks, and we do the checks on hand, and all
the vouchers that showed that all these amounts were in fact
paid to Mayor David Fonseca or Mayor William Fonseca.  In no
instance were these amounts, let's say if it were for medical
attention to K.H.M.H. or for Jane Doe or John Doe.  All the time
if it was for four thousand five hundred, David Fonseca, three
thousand five hundred, William Fonseca, it doesn't matter none
was made to any amount, so we feel pretty confident that there
is no way he can prove that those amounts were in fact made to
charitable donations.  The amounts that were budgeted for
charitable donations were five thousand dollars.  I believe if
my recollection is correct, I think it was a hundred and fifty-
five thousand dollars that was the charitable donations amount
that was in contention no?"

"I must say that no check whatsoever will ever be made in any
Mayor Zenaida Moya name as it pertains to charitable donation.
We have a system whereby any money goes towards charitable
donation it will be made directly to those who may need that
assistance.  So the public can feel very confident that this
will not be happening," Mayor Moya told Channel 5,

                        *    *    *

Moody's Investor Service assigned these ratings to Belize:

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

                        *    *    *

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




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


PANTHER RE: Moody's Rates US$$144MM Mezzanine Term Loans at Ba2
---------------------------------------------------------------
Moody's Investors Service assigned a provisional Baa3 rating to
the US$72 million senior loans and a provisional Ba2 rating to
the US$144 million mezzanine loans of Bermuda-domiciled Panther
Re Bermuda Limited.  Moody's has also assigned a provisional A3
insurance financial strength rating to Panther Re.

The outlook for the ratings is stable.

The rating agency expects to remove the provisional status and
assign definitive ratings at the same level upon review of final
executed documentation, provided the documentation is consistent
with the terms and conditions specified as of Nov. 8, 2006, that
underlie these provisional ratings.

Both term loan facilities will mature in Nov. 2010 and will be
held by financial institutions and other institutional lenders.
The facilities are secured by the capital stock of Panther Re.
The loans are non-amortizing, but allow for voluntary
prepayments and require mandatory prepayments under certain
circumstances.  Under the terms of the facilities, Panther Re's
debt obligations are contractually subordinated to the claims of
its client.

Panther Re is a limited-life, newly-formed Class 3 Bermuda
reinsurer that will enter into a collateralized quota share
reinsurance treaty with its sole client, Lloyd's Syndicate 33,
as managed and underwritten by Hiscox Syndicates Limited.

Syndicate 33 will cede -- and Panther Re will assume -- 40% of
the gross written premiums and losses of Syndicate 33's global
property catastrophe excess-of-loss reinsurance book in
underwriting year 2007 and up to 50% of the said book in
underwriting year 2008.  The transaction requires final approval
from Lloyd's of London.

Initial capitalization for Panther Re is expected to be
US$360 million, comprised of the US$72 million senior term
loans, US$144 million mezzanine term loans, and US$144 million
of common equity.  Panther Re will post its total paid-in
capital, net of transaction expenses, as cash and securities
into a security trust established for the benefit of Syndicate
33.

Further, Panther Re's share of premiums will be held by
Syndicate 33 in its Lloyd's Premium Trust Fund, on Panther Re's
behalf, consistent with Lloyd's practices.  Claims will
initially be paid out of the Lloyd's Premium Trust Funds from
funds withheld on Panther Re's share of premiums, and then from
funds transferred from the security trust.

Panther Re's ratings reflect an analysis of the structural and
contractual features of the Panther Re vehicle, as well as
probabilistic analysis to determine both the probability of loss
and expected severity of loss to Panther Re's senior and
mezzanine debt holders and to its sole client, Syndicate 33.

The ratings for the term loans are supported by Panther Re's
level of capitalization relative to its catastrophe exposure,
certain structural characteristics -- particularly as they
relate to dividend payouts and return of capital -- that serve
to better align the interests of equity and debt investors, and
Syndicate 33's good but volatile historical loss experience,
which was an important consideration when calibrating Panther
Re's catastrophe probability curves.

These positive factors are tempered by four elements of the
transaction.

   -- First, the minimum collateral test, as it is currently
      structured, heightens the possibility of missed interest
      payments owing to the meaningful amounts of assets which
      need to be kept in the trust to provide Syndicate 33 with
      a safeguard against potential adverse loss reserve
      development.  Moody's placed particular emphasis on the
      minimum collateral test, given that the interests of
      equity holders, debt holders, and the reinsured are partly
      aligned through that structural feature.

   -- Secondly, debt holders are exposed to uncertainty
      surrounding the exact amount of liabilities that are owed
      to Syndicate 33 when the liabilities are commuted.

   -- Thirdly, subsequent reinsurance purchased by Syndicate 33
      will not inure to the benefit of Panther Re, although
      Syndicate 33 is obligated to share with Panther Re
      information relating to Syndicate 33's reinsurance
      purchases.  If Panther Re decides not to purchase similar
      reinsurance, this raises the possibility that Panther Re's
      financial results will not mirror those of Syndicate 33's
      relevant book of business.

   -- Lastly, Panther Re is liable for its proportionate share
      of unanticipated losses and expenses that arise from any
      "excess of policy limits awards" or "extra contractual
      obligations", as well as additional levies imposed by
      Lloyd's, underscoring the "follow the fortunes" nature of
      this reinsurance agreement.

Moody's assessment was also impacted by the vehicle's high debt
leverage and parameter risk in the modeling assumptions that
form the basis of the company's capitalization.

The Ba2 rating for the mezzanine loans reflects their more
junior position in the cash waterfall, as borne out by the
modeling results.

Panther Re's A3 insurance financial strength rating reflects the
creditworthiness of Panther Re with respect to its ability to
meet policyholder obligations, which is enhanced by the
establishment of a collateral trust for the benefit of its sole
client.

The ratings contemplate a maximum underwriting period of two
years and assume no additional debt above the US$216 million
term loan facilities.

Going forward, the ratings will reflect updated analysis of the
cumulative performance of the company, its future overall risk-
adjusted capitalization level, and updated probabilistic
analysis of its reinsurance portfolio.  The current ratings do
not anticipate any potential amendments that may be made to the
agreements.  Any future amendments will be evaluated at that
point in time and Moody's will assess the impact on the ratings,
if any.

These provisional ratings have been assigned:

   * Panther Re Bermuda Limited

     -- US$72 million senior term loans due November 2010 at
        Baa3.

   * Panther Re Bermuda Limited

     -- US$144 million mezzanine term loans due November 2010 at
        Ba2.

   * Panther Re Bermuda Limited.

     -- insurance financial strength at A3.

Panther Re Bermuda Limited, based in Bermuda, is a licensed
Class 3 reinsurer that will enter into a collateralized quota
share reinsurance treaty with its sole client, Lloyd's Syndicate
33, as managed and underwritten by Hiscox Syndicates Limited.


PXRE GROUP: Reports US$4.5MM Net Income in Third Quarter 2006
-------------------------------------------------------------
PXRE Group Ltd. reported results for the third quarter ended
Sept. 30, 2006.  Notable items for the quarter included:

   -- On a fully diluted basis, book value per share increased
      during the quarter by US$0.14 to US$6.65 at
      Sept. 30, 2006;

   -- Net income before convertible preferred share dividends
      was US$4.5 million compared with net loss before
      convertible preferred share dividends of US$317.3 million
      in the third quarter of 2005.

Jeffrey L. Radke, President & Chief Executive Officer of PXRE
Group, commented, "Our Board of Directors is continuing to
explore various strategic alternatives that would maximize value
for shareholders and we remain optimistic that we will find a
solution other than runoff.  As discussed in the past, however,
if our Board of Directors concludes that no other alternative
would be in the best interests of our shareholders, it may
determine that the best option is to place PXRE's reinsurance
business into runoff and eventually commence an orderly winding
up of PXRE's operations over some period of time that is not
currently determinable."

For the quarter ended Sept. 30, 2006, net income before
convertible preferred share dividends was US$4.5 million
compared with net loss before convertible preferred share
dividends of US$317.3 million in the third quarter of 2005.  The
increase in net income before convertible preferred shares is
primarily attributable to the absence of any significant loss
events in the quarter as well as favorable development on our
loss reserves, offset by a decrease in net premiums earned due
to the cancellation and non-renewal of the majority of our
reinsurance portfolio following our ratings downgrades in
February 2006.  The net loss before convertible preferred share
dividends for the third quarter of 2005 was primarily driven by
the net impact of Hurricanes Katrina and Rita of US$349.9
million, after tax, reinsurance recoveries on our outwards
reinsurance program and the impact of inwards and outwards
reinstatement and additional premiums.

Net premiums earned for the quarter decreased 92%, or US$63.2
million, to US$5.6 million from US$68.8 million for the year-
earlier period.  This decrease in net premiums earned can be
attributed to the cancellations and non-renewal of the majority
of our reinsurance portfolio following our ratings downgrades by
the major rating agencies in February 2006.

Net premiums written in the third quarter of 2006 decreased 79%,
or US$78.6 million, to US$20.7 million from US$99.3 million for
the same period of 2005.  This decrease in net premiums written
is due to the cancellation and non-renewal of the majority of
our reinsurance portfolio following our ratings downgrades by
the major rating agencies in February 2006.

Net investment income for the third quarter of 2006 increased
8%, or US$1.1 million, to US$14.6 million from US$13.5 million
for the corresponding period of 2005 primarily as a result of a
US$6.2 million increase in income from our fixed maturity and
short-term investment portfolio, offset, in part, by a US$5.5
million decrease in income from our hedge funds.  The increase
in income from our fixed income and short-term investment
portfolio was due to an increase in invested assets attributable
to cash flow principally from the proceeds of capital raising
activities in the fourth quarter of 2005 and from the proceeds
from the redemptions of our hedge fund investments which have
been received during the first nine months of 2006.  The net
return on the fixed maturity and short-term investment
portfolios increased to 5.2% for the quarter, on an annualized
basis, compared with 3.8% during the comparable prior year
period.

PXRE submitted redemption notices for its entire hedge fund
portfolio in February 2006, and as a result income from hedge
funds will continue to decrease in future quarters as we receive
the remaining proceeds from our various hedge fund investments.
As of Sept. 30, 2006, the company has received redemption
proceeds from 91% of the hedge fund assets held on our
Dec. 31, 2005, balance sheet.

PXRE had negative incurred losses for the quarter of US$6.0
million.  This negative incurred loss amount was due to two
factors.  First, the company had US$3.7 million of net favorable
development in its 2006 accident year loss reserves which was
caused by lower than expected reported losses for the 2006
accident year on a year-to-date basis along with the absence of
any significant property catastrophe events in the third
quarter.  Second, the company had net favorable development of
US$2.3 million for prior-year losses and loss expenses during
the quarter.  Losses and loss expenses incurred in the third
quarter of 2005 were US$409.0 million, which was primarily
attributable to Hurricanes Katrina and Rita which occurred
during the third quarter of 2005.

The expense ratio was 232.4% for the third quarter of 2006
compared with 28.8% in the year-earlier quarter due to the
decrease in net premiums earned in 2006 and an increase in
operating expenses of US$4.0 million in 2006.  The increase was
largely related to additional fees to attorneys and financial
advisors which have been incurred as a result of our ratings
downgrades, the Board of Directors' decision to explore
strategic alternatives for the company, the class action
securities lawsuits filed against the company during the second
quarter of 2006 as well as employee severance and retention
expenses.

In the fourth quarter of 2005, PXRE sponsored a catastrophe bond
transaction that was determined to be a derivative and recorded
at fair value on the company's balance sheet.  The increase of
US$4.8 million in other reinsurance related expense was due to
the change in fair value of this derivative during the quarter
ended Sept. 30, 2006.

Operating results reflect a tax benefit of US$32.5 million for
the third quarter of 2005. No tax benefit was recognized during
the third quarter of 2006.

On a fully diluted basis, book value per share increased to
US$6.65 at Sept. 30, 2006, from US$6.51 per share at
June 30, 2006. During the third quarter of 2006, PXRE recorded a
change in net after-tax unrealized appreciation in investments
of US$7.6 million in other comprehensive income, which resulted
in a US$0.10 increase in fully diluted book value per share.
The cause of this increase in value was primarily a decrease in
interest rates during the quarter.

With operations in Bermuda, Europe and the United States, PXRE
-- http://www.pxre.com/-- provides reinsurance products and
services to a worldwide marketplace.  The Company's primary
focus is providing property catastrophe reinsurance and
retrocessional coverage.  The Company also provides marine,
aviation and aerospace products and services.  The Company's
shares trade on the New York Stock Exchange under the symbol
"PXT."

                        *    *    *

PXRE carries Standard & Poor's and A.M. Best's BB- credit
ratings.  The Company's senior unsecured debt has a BB rating
from Fitch.

On May 15, 2006, Fitch retained these ratings on Rating Watch
Negative:

   PXRE Group Ltd.

      -- Issuer Default Rating: 'BB'.

   PXRE Capital Trust I

      -- Trust preferred securities US$100 million 8.85% due
         Feb. 1, 2027: 'B+'.

   PXRE Reinsurance Company
   PXRE Reinsurance Ltd.

      -- IFS: 'BB+'.




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


BANCO DO BRASIL: Earns BRL4.88B for First Nine Months of 2006
-------------------------------------------------------------
Banco do Brasil recorded BRL4.796 billion net income up to
September 2006, an increase of 40.4% when compared with the same
period of 2005.  This result corresponds to annual average
return on shareholders' equity of 35.9%.

The profitable performance in this year is a result of these:

   -- The Loan Portfolio reached BRL118.3 billion, growth of
      24.9% in relation to the same period of the previous year
      and 4.6% in the quarter.  This performance kept Banco do
      Brasil unchallenged leadership in lending in Brazil, with
      a 17.3% market share in the Banking Industry.

   -- The Fee Income totaled BRL6.6 billion in the first nine
      months of 2006, against BRL5.6 billion in the same period
      of 2006;

   -- The Administrative Expenses reached BRL10.1 billion year
      to date, 5.1% increase over the nine first months of 2005.
      Nevertheless, following the inflation rate and the organic
      growth of its business.

Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and over 7,000 points
of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries.  In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.

                        *    *    *

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


BANCO DO BRASIL: Manager Accused of Fraudulent Sale of Stocks
-------------------------------------------------------------
A manager at Banco do Brasil SA was among those arrested for an
averted fraudulent sale of stocks, Bloomberg News reports.

Brazilian police raided last week stock brokerage firms in Sao
Paulo and Rio de Janeiro to stop fraudulent plans to sell shares
for BRL120 million (US$56.1 million), Bloomberg says.  Most of
the shares are those of state-oil company Petroleo Brasileiro
SA.

The year-long investigation of the scheme led to the arrest of
local brokers.  Among those who will be charged with document
falsification and corruption are the bank manager, a computer
hacker, workers at registry offices and lawyers, Bloomberg
relates, citing Agencia Estado.

Banco do Brasil did not comment when asked by Bloomberg
regarding the involvement of one of its managers.

                     About Banco do Brasil

Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and over 7,000 points
of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries.  In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.

                        *    *    *

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


BANCO NACIONAL: Disbursements Reach BRL35.45B in First 10 Months
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES'
disbursements grew 5% from January to October 2006 compared with
the first ten months of previous year, reaching BRL35.448
billion accumulated in the year.  The numbers confirm the trend
already noticed in September when the growth had been 1%, and
indicate a gradual and steady performance by the bank.

In October, the volume released was BRL3.977 billion, which
represented an increase of 48.30% in relation to the same month
in 2005.  This result is partially due to the weak performance
of October last year.

Approvals maintained the increase rhythm, with an expansion of
17% up to October, as compared with the first ten months of
2005.  The result of last month was BRL6.655 billion, and
accumulations in the year reached BRL52.254 billion.
Consultations increased 7%, amounting to BRL76.964 billion until
October 2006 and indicating a higher volume of disbursements
next year.  Eligible financing projects increased 3%, amounting
to BRL71.874 billion in the year and BRL5.982 billion in the
month.

The principal sector in BNDES disbursements was industry, with
an increase, until October, of 16% in relation to same period in
2005.  In the first ten months of 2006, the Bank disbursed
BRL18.4 billion for that sector.  Farming continues dropping,
with a decrease of 19%, amounting to BRL2.6 billion between
January and October.  However, despite being principally
responsible for the bank having failed to obtain a better global
result, farming showed a recovery in September. October data
reflect a progressive reduction in the difficulties for that
sector.

The performance of approvals in the year was positive for the
industrial sector (expansion of 19%), for infrastructure (8%)
and for trade and services (increase of 89% in relation to the
same period of last year).

The North and Northeast regions showed a slight increase in the
relative share on BNDES disbursements.  Releases to the North
region accounted for 4% of total, in the year, over the 3% for
the same period in 2005.  The portion destined to the Northeast
was equivalent to 10% of disbursements made.  Last year, until
October, the Northeast region's share had been 9%.  The
Southeast region remained with 60% of total.  Drops occurred in
the South region (21% in the first ten months of 2005 and 20% in
2006) and Center-West region (7% in 2005 and 6% in 2006).

Disbursements to the social area grew 86% until October, in
relation to the same period in 2005, with a highlight to the
Shared Economy area, especially microcredit.  The volume of
approvals for the program should be the highest since the Bank
started operating with microcredit.  The application plans of
the beneficiaries from BNDES financings indicate that, in next
years, over 550,000 loans should be generated "on the spot."
There was also a significant increase in disbursements (over
100%), for the Social Actions, Urban Development, Regional
Development and Health sectors.  The most significant projects
were:

   -- the financing for the Sao Paulo Subway, in the amount of
      BRL316 million,

   -- the construction of four hospitals in the State of Para,
      in the amount of BRL162 million, and

   -- the Management and Integration Program for Hydric
      Resources of the State of Ceara, in the amount of BRL126
      million.

Bank Bradesco maintained the leadership in handing over BNDES
funds between January and October of current year.  In the
period, the bank released BRL3.985 billion, of which 44.5% went
to micro, small and medium enterprises.  Banco do Brasil ranked
second, with disbursements of BRL3.129 billion, of which 25.5%
were allocated to MSMEs, followed by Unibanco with BRL1.960
billion disbursements, of which 14.1% went to MSMEs, by
Santander with BRL1.172 billion of which 9.7% went to MSMEs, and
by Safra, ranking fifth, with releases of BRL883 million, of
which 40.6% went to MSMEs.

Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank.  It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.

                        *    *    *

As reported by Troubled Company Reporter-Latin America 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.


BANCO NACIONAL: Posts BRL2.40B Third Quarter 2006 Net Profits
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in its
latest financial statement that its net profits increased 276%
to BRL2.40 billion in the third quarter of 2006, from BRL638
million in the same quarter of 2005.

Business News Americas relates that Banco Nacional's net income
for the first nine months of 2006 increased 132% to BRL5.72
billion, from the BRL2.47 billion in the same period of 2005.

Banco Nacional told BNamericas that its total net profit in 2005
was BRL3.20 billion.  The bank's average yearly net profits of
BRL1.42 billion from 2001 to 2005.

According to BNamericas, Banco Nacional's variable-income
investments brought in BRL3.02 billion from January to September
2006 period.  Fixed-income investments returned BRL2.49 billion
in the same period.

Banco Nacional's total lending was BRL138 billion in the first
nine months of 2006, BNamericas notes.

Demian Fioca, chief executive officer of Banco Nacional, told
BNamericas that the bank did not expand lending at the same rate
as the private sector due to the bank's role as a stabilizer in
the local economy.

If Banco Nacional had increased lending as quickly as private
sector banks, the Brazilian central bank would not have been
able to reduce its benchmark Selic interest rate, BNamericas
says, citing Mr. Fiocca.

Mr. Fiocca told BNamericas that Banco Nacional increased lending
an average of 7.1% per year from 2001 to 2005, with a focus on
providing long-term credit at lower costs in the local currency.

Banco Nacional's loans for infrastructure projects increased an
average 12% yearly over the same period, BNamericas says, citing
Mr. Fiocca.

Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank.  It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.

                        *    *    *

As reported by Troubled Company Reporter-Latin America 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.


BANCO PINE: IDB Issues US$1.98 Million Credit Guarantee
-------------------------------------------------------
The Inter-American Development Bank issued a credit guarantee of
US$1, 980,000 for the account of Banco PINE S.A. in Brazil.  The
transaction facilitates the import of wind blades from Brazil to
California.  The wind blades will be used at eolic farms in
California.  Wind power is a renewable form of energy that does
not produce carbon dioxide, the most important of the global
warming pollutants.

The IDB issued this guarantee on Nov. 1 to Unibanco S.A. Grand
Cayman Branch, sharing the risk assumed on the transaction
provided to Banco PINE S.A.

The Trade Finance Facilitation Program was launched by the IDB
in April 2005.  The program promotes economic reactivation and
growth throughout Latin America and the Caribbean by increasing
the availability of funding for international trade.  Under the
program the IDB issues guarantees to confirming banks to
mitigate the risk of issuing banks in export and import
contracts.

Headquartered in Sao Paulo, Brazil, Banco PINE S.A. is a mid-
size bank with over US$1 billion in assets.  It has eleven
branches, located primarily in the south and southeast regions
of Brazil.  The bank provides financial services mainly to
middle market companies and individuals.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 12, 2006,
Moody's Investors Service assigned a bank financial strength
rating of D- to Banco Pine S.A.  Moody's also assigned long- and
short-term foreign- and local-currency deposit ratings of Ba3
and Not Prime, as well as long- and short-term Brazil national
scale deposit ratings of A3.br and BR-2.  The outlook on all
these ratings is stable.

Standard & Poor's Ratings Services assigned on Oct. 3, 2006, its
'B+' foreign-currency long-term senior unsecured debt rating to
Banco Pine S.A.'s upcoming issuance of US$150 million notes with
maturity in 2008.


CIA PARANAENSE: Posts BRL932MM Third Quarter 2006 Net Income
------------------------------------------------------------
Companhia Paranaense de Energia aka Copel reported operating
results for the third quarter 2006.

   -- Net Operating Revenues: BRL3,977 million in the 9M06,
      11% up year-on-year;

   -- Operating Income: BRL1,469 million in the 9M06, versus
      BRL502 million in the same period of 2005;

   -- Net Income: BRL932 million (BRL3.41 per thousand shares)
      in the 9M06, versus BRL309 million in the 9M05;

   -- EBITDA: BRL1,432 million in the 9M06, 77% up on the
      BRL811 million reported in the same period of 2005.
      Excluding the gas purchase reversal effect in May 2006,
      EBITDA would be BRL1,133 million.

   -- Return on Equity: 23% p.a. excluding the reversal effects,
      ROE would have been 13%.

At the new energy auction on October 10, the consortium
established between Copel (51%) and Eletrosul (49%) won the
concession for the construction of the Maua Hydroelectric Plant,
on the Tibagi River in the state of Parana, with an estimated
installed capacity of 361 MW. On the same date, Maua sold 192 MW
(average) for delivery as of January 2011 for 30 years at
BRL112.96/MWh.

Copel Distribuicao's grid market, comprising the captive market
and all free customers within the company's concession area,
grew by 3.3% in the 9M06.  Billed power consumption dipped 0.2%.

Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Paran and has a generating capacity of nearly 4,600 MW,
primarily from hydroelectric plants.  COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services.  The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitly postponed.  In response, COPEL is
re-evaluating its corporate structure.  The government of Parana
controls about 59% of COPEL.

                        *    *    *

Copel's BRL100,000,000 debentures due March 1, 2007, is rated
Ba3 by Moody's.


COMPANHIA PARANAENSE: Posts BRL933 Mil. First Nine-Month Profits
----------------------------------------------------------------
Companhia Paranaense de Energia said in a filing with Bovespa --
the Sao Paulo stock exchange -- that its net profits in the
first nine months of 2006 increased more than threefold to
BRL933 million, from BRL309 million in the same period of 2005.

Business News Americas relates that Companhia Paranaense's gross
operating revenue increased 9.6% to BRL5.51 billion in the first
nine months of 2006, compared with the first nine months of
2005.  The firm's operating expenses dropped 6.5% to BRL2.82
billion.

Companhia Paranaense's net financial revenues were BRL311
million in the first nine months of this year, compared with the
BRL71 million recorded in the same period of 2005.

Companhia de Paranaense told BNamericas that its operating
profits increased 192% to BRL1.47 billion in the first nine
months of 2006.  Its Ebitda grew 77% to BRL1.43 billion.

Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Paran and has a generating capacity of nearly 4,600 MW,
primarily from hydroelectric plants.  COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services.  The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitly postponed.  In response, COPEL is
re-evaluating its corporate structure.  The government of Parana
controls about 59% of COPEL.

                        *    *    *

Copel's BRL100,000,000 debentures due March 1, 2007, is rated
Ba3 by Moody's.


GERDAU SA: Third Quarter Results Were the Best, Says Analyst
------------------------------------------------------------
Pedro Galdi, an investment analyst with ABN Amro Real Corretora,
told Business News Americas that the third quarter results of
Gerdau SA were the best of the local steel sector.

Mr. Galdi told BNamericas, "The company (Gerdau) posted positive
results within Brazil and in the rest of South America."

According to BNamericas, Gerdau reported BRL882 million in
consolidated net profits for the third quarter of 2006, compared
with BRL812 million in the same period of 2005.  Net revenue in
the third quarter of 2006 was BRL6.07 billion, compared with
BRL5.09 billion in the same quarter of 2005.  Ebitda increased
to BRL1.55 billion in this year's third quarter, from BRL1.15
billion in last year's third quarter.

The results were a pleasant surprise among its compatriots.
However, weaker results in Europe and the US offset good results
in other regions where Gerdau has operations, BNamericas says,
citing Mr. Galdi.

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

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

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

                        *    *    *

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

                        *    *    *

As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social 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.


GULFMARK OFFSHORE: Earns US$39.8 Million in 2006 Third Quarter
------------------------------------------------------------
Gulfmark Offshore, Inc. reported a US$39.8 million net income on
US$75.8 million of revenues for the third quarter ended
Sept. 30, 2006, compared with a US$13 million net income on
US$53 million of revenues for the same period in 2005.

The increase in revenue compared to the third quarter a year ago
was primarily the result of increased day rates in all regions
and increased utilization in the company's North Sea and
Southeast Asia regions.  The company disclosed that the third
quarter's net income and revenues figures represent the highest
quarterly net income and revenue in the history of the company.

At Sept. 30, 2006, the company's balance sheet showed
US$699.5 million in total assets, US$287.1 million in total
liabilities, and US$412.4 million in total stockholders' equity.

Full-text copies of Gulfmark Offshore's third quarter financial
statements are available for free at:

               http://researcharchives.com/t/s?14ae

Headquartered in Houston, Texas, Gulfmark Offshore Inc. --
http://www.gulfmark.com/ -- together with its subsidiaries,
provides offshore marine services primarily to companies
involved in offshore exploration and production of oil and
natural gas.  The majority of the company's operations are in
the North Sea with the balance offshore Southeast Asia and
Brazil.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 2, 2006,
Standard & Poor's Ratings Services lowered the corporate credit
rating on Gulfmark Offshore Inc. to 'B+' from 'BB- and the
company's senior unsecured rating to 'B' from 'B+'.  Outlook was
revised to stable from negative.


GULFMARK OFFSHORE: 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 oilfield service and refining and marketing
sectors, the rating agency confirmed its Ba3 Corporate Family
Rating for GulfMark Offshore Inc. and its B1 rating on the
company's 7.75% Senior Unsecured Guaranteed Global Notes Due
2014.  Moody's assigned those debentures an LGD5 rating
suggesting noteholders will experience a 78% loss in case of
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
alphanumeric 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 Houston, Texas, Gulfmark Offshore Inc. --
http://www.gulfmark.com/ -- together with its subsidiaries,
provides offshore marine services primarily to companies
involved in offshore exploration and production of oil and
natural gas.  The majority of the company's operations are in
the North Sea with the balance offshore Southeast Asia and
Brazil.


LUCENT TECHNOLOGIES: U.S. Congress to Probe Alcatel Merger Today
----------------------------------------------------------------
Duncan Hunter, Chairman of the U.S. House Armed Services
Committee, will call Alcatel S.A. and Lucent Technologies Inc.
today to probe into the implication of the companies'
US$10.6-billion merger deal on national security, The Financial
Times says.

The hearing will also include a testimony from government
officials who are reviewing the merger deal, FT adds.  The
Committee on Foreign Investment in the U.S., which scrutinizes
foreign takeovers, is wrapping up its review on the deal.

According to FT, the hearing, which could lead to a wider vet or
a backlash similar to against Dubai Ports World's failed
takeover of five port terminals this year, would pressure both
the deal and White House officials.

Alcatel and Lucent, FT relates, tried earlier to prevent a
congressional probe into the deal by:

   -- launching a lobbying campaign; and

   -- submitting a plan to isolate Lucent's sensitive government
      contracts from Alcatel's operations by forming a separate
      unit -- which would be supervised by three Clinton
      administration defense and intelligence officials.

                        About Alcatel

Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and
NYSE: ALA) -- http://www.alcatel.com/-- provides communications
solutions to telecommunication carriers, Internet service
providers and enterprises for delivery of voice, data and video
applications to their customers or employees.  Alcatel brings
its leading position in fixed and mobile broadband networks,
applications and services, to help its partners and customers
build a user-centric broadband world.  With sales of EUR13.1
billion and 58,000 employees in 2005, Alcatel operates in more
than 130 countries.

                  About Lucent Technologies

Headquartered in Murray Hill, New Jersey, Lucent Technologies
(NYSE: LU) -- http://www.lucent.com/-- designs and delivers the
systems, services and software that drive next-generation
communications networks.  Backed by Bell Labs research and
development, Lucent uses its strengths in mobility, optical,
software, data and voice networking technologies, as well as
services, to create new revenue-generating opportunities for its
customers, while enabling them to quickly deploy and better
manage their networks.  Lucent's customer base includes
communications service providers, governments and enterprises
worldwide.

Lucent also operates in Austria, Belgium, China, Czech republic,
Denmark, France, Germany, India, Ireland, Japan, Korean, Brazil,
CIS, the Netherlands, Poland, Slovak Republic, Spain, Sweden,
Switzerland, Russia, and the United Kingdom.

                        *    *    *

In November 2006, Standard & Poor's Ratings Services said that
its 'BB' long-term corporate credit rating on France-based
Alcatel and its 'B' long-term corporate credit rating on U.S.-
based Lucent Technologies Inc. remain on CreditWatch with
negative and positive implications, respectively, where they
were placed on March 24 on news of the two telecoms equipment
makers' plans to merge.

The ratings will remain on CreditWatch until completion of the
merger and clarification of the ranking and support mechanisms
for the various debt classes within the merged group's capital
structure.  The ratings on the individual debt issues of each
company will be clarified at that time.

Standard & Poor's 'B' and 'B-1' short-term corporate ratings on
Alcatel and Lucent, respectively, are not on CreditWatch and
remain unchanged.

In April 2006, Moody's Investors Service placed Lucent's B1
corporate family rating, B1 senior unsecured rating, B3
subordinated rating, and B3 trust preferred rating under review
for possible upgrade following the company's announcement of a
definitive merger agreement with Alcatel.


PETROLEO BRASILEIRO: Brokers Arrested for Fraudulent Stock Sale
---------------------------------------------------------------
Brazilian police raided last week stock brokerage firms in Sao
Paulo and Rio de Janeiro to stop fraudulent plans to sell shares
for BRL120 million (US$56.1 million), Bloomberg News reports.
Most of the shares are those of state-oil company Petroleo
Brasileiro SA.

The year-long investigation of the scheme led to the arrest of
local brokers.  A manager at Banco do Brasil SA was among those
who will charged with document falsification and corruption.
Other members of the group include a computer hacker, workers at
registry offices and lawyers, Bloomberg relates, citing Agencia
Estado.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA 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.


PETROLEO BRASILEIRO: Will Export Bioethanol to Japan in 2008
------------------------------------------------------------
Petroleo Brasileiro SA will begin exporting automobile-use
bioethanol to Japan in 2008, Kuna reports.

Nekkei Shimbun relates that Petroleo Brasileiro aimed to boost
shipments of the gasoline alternative to 700,000 kiloliters per
year in 2011.  The company has started studying ways to produce
the fuel more efficiently in Brazil in collaboration with Mitsui
and Co., Japan's second biggest trading firm.  Petroleo
Brasileiro and Mitsui will:

          -- study how to better refine sugarcane into
             bioethanol, and

          -- consider ways to expand the infrastructure needed
             to export the biofuel to Japan by securing a
             sufficiently large tanker fleet and laying
             pipelines.

According to Kuna, Shinzo Abe -- the Japanese prime minister --
has aimed to replace 10% of his country's yearly gasoline
consumption with biofuel.  If this is achieved, Petroleo
Brasileiro is expected to provide over 10% of the potential
demand.

Experts told Kuna that the increased use of the gasoline
alternative will make it possible to reduce oil consumption,
which could help prevent global warming.

Kuna underscores that Petroleo Brasileiro exports bioethanol to
Japan for use in drugs and food additives.  It controls 70% of
the Brazilian market for bioethanol.

Petroleo Brasileiro plans to export 3.5 million kiloliters
yearly of bioethanol in five years.  About 20% of the 3.5
million kiloliters would be sent to Japan, Nekkei Shimbun
states.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA 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.


PETROLEO BRASILEIRO: Will Ink Accord with Peru
----------------------------------------------
Petroleo Brasileiro will sign a memorandum of understanding with
Peru for Peruvian oil and gas drilling projects and
petrochemical plant construction, the Associated Press reports,
citing Peru's President Garcia.

President Garcia told AP that Petroleo Brasileiro's Peruvian
operations would never suffer a sudden nationalization similar
to what happened in Bolivia.

"I extend my hand to Petrobras (Petroleo Brasileiro) and give my
word that things won't change," President Garcia told reporters.

Brazil and Peru should boost bilateral energy and economic ties
even though the two countries are members of separate South
American economic blocs, AP notes, citing President Garcia.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA 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.


TELE NORTE: Shareholders Fail to Decide on Restructuring Plan
-------------------------------------------------------------
Published reports say that the corporate restructuring plan of
Tele Norte Participacoes SA was not approved as the Nov. 13
shareholder meeting of Tele Norte Leste Participacoes did not
have quorum.

Business News Americas relates that for a valid decision on the
restructuring plan, Tele Norte needed 50% plus one of
preferential shareholders to attend.

However, only 29.17% of the shareholders turned up for the
meeting, BNamericas notes.

As reported in the Troubled Company Reporter-Latin America on
Nov. 14, 2006, Anatel, the telecoms regulator in Brazil, said in
a statement that it authorized Tele Norte's corporate
restructuring plan.  Once the plan gets the shareholders'
approval at a shareholders meeting, Tele Norte will be able to:

          -- simplify the structure of its three units:

             * Telemar Participacoes,
             * Tele Norte Leste Participacoes, and
             * Telemar Norte Leste; and

          -- bring its shareholders together under one company
             called Oi Particicoes.

The operation would involve a major share exchange program, with
each preferential share (without voting rights) being exchanged
for an ordinary share.

Andre Roche, telecoms analyst at Unibanco Corretora, told
BNamericas, "It will be very difficult to approve the plans."

BNamericas underscores that the share exchange program worried
preferential shareholders.  Several proxy advisory organizations
like the Institutional Shareholders Service have advised Tele
Norte shareholders to reject the restructuring plan.

"This will make it hard for foreign shareholders to support
Telemar (Tele Norte)," Mr. Roche told BNamericas.

Mr. Roche said that major shareholders like BNDES, which hold
preferential and ordinary shares, may have a conflict of
interest, which could result in further legal disputes,
BNamericas says.

"The fact that there wasn't a quorum was not a big surprise,"
BNamericas says, citing Luiz Eduardo Falco, the president of
Tele Norte.

According to BNamericas, the lack of quorum is sufficient
grounds for reconvening the meeting.  Under company bylaws, a
requeast for rescheduling has to be submitted within ten days.

The Tele Norte management can't do much and must rely on the
controlling shareholders for the approval of the restructuring
plan, Mr. Roche told BNamericas.

Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes SA -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America.  The
company markets its services under its Telemar brand name.  Tele
Norte's subsidiaries include:

          -- Telemar Norte Leste SA,
          -- TNL PCS SA,
          -- Telemar Internet Ltda., and
          -- Companhia AIX Participacoes SA.

                        *    *    *

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


USINAS SIDERURGICAS: Companhia Vale Closes Partial Sale of Share
----------------------------------------------------------------
Companhia Vale do Rio Doce has concluded the sale of 5,362,928
common shares of Usinas Siderurgicas de Minas Gerais SA aka
Usiminas at the price of BRL70.59 per common share, which
amounted to BRL378.6 million.

Companhia Vale will keep 6,608,608 Usiminas common shares, which
will be tied to the new 15-year shareholder agreement of
Usiminas, signed on Nov. 6, 2006. Therefore, the remaining
13,839,192 Usiminas common shares that Companhia Vale currently
owns will be sold through a public offer that will be announced
soon.

Such movement is aligned with Companhia Vale's strategy of
promoting the expansion of the Brazilian steel industry and,
simultaneously, allows the reallocation of capital to invest in
its core business. Moreover, this restructuring is associated
with the decision of the Usiminas controlling shareholders to
realize a feasibility study regarding the construction of a slab
plant, maximizing the company's potential to lead the
repositioning of the Brazilian steel industry in the global
scenario.

Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais aka Usiminas is among the world's 20 largest steel
manufacturing complexes, with a production capacity of
approximately 10 million tons of steel.  Usiminas System
companies produces galvanized and non-coated flat steel products
for the automotive, small and large diameter pipe, civil
construction, hydro-electronic, rerolling, agriculture, and road
machinery industries.  Brazil consumes 80% of its products and
the company's largest export markets are the US and Latin
America.

                        *    *    *

Standard & Poor's Ratings Services affirmed on June 7, 2006, its
'BB+' long-term corporate credit rating on Brazil-based steel
maker Usinas Siderurgicas de Minas Gerais SA -- Usiminas.  At
the same time, Standard & Poor's assigned its 'BB+' senior
unsecured debt rating to the forthcoming US$200 million Global
MTNs due June 2016 to be issued by Cosipa Commercial Ltd.  S&P
says the outlook on the corporate credit rating is stable.




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


ATS ARGUS: Shareholders Convene for Final Meeting on Nov. 17
------------------------------------------------------------
ATS Argus Fund Ltd's final shareholders meeting will be at 10:00
a.m. on Nov. 17, 2006, at:

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

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


CB TOPPS: Final Shareholders Meeting Is Set for Nov. 17
-------------------------------------------------------
CB Topps Ltd's final shareholders meeting will be at 11:00 a.m.
on Nov. 17, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Lawrence Edwards
          Attn: Miguel Brown
          P.O. Box 258, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914 8665
          Fax: (345) 949 4590


CPF LTD: Final Shareholders Meeting Is Scheduled for Nov. 17
------------------------------------------------------------
CPF Ltd.'s shareholders will convene for a final meeting on
Nov. 17, 2006, at the company's registered office.

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

The liquidators can be reached at:

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


CYPRESS LANCASHIRE: Last Shareholders Meeting Is on Nov. 17
-----------------------------------------------------------
Cypress Lancashire Partners GP Ltd.'s final shareholders meeting
will be at 2:00 p.m. on Nov. 17, 2006, at the company's
registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

            John Cullinane
            Derrie Boggess
            c/o Walkers SPV Limited
            Walker House
            P.O. Box 908, George Town
            Grand Cayman, Cayman Islands


DORIC KASAGI US: Last Shareholders Meeting Is Set for Nov. 17
-------------------------------------------------------------
Doric Kasagi US Feeder Fund's final shareholders meeting will be
at 1:00 p.m. on Nov. 17, 2006, at the company's registered
office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

            John Cullinane
            Derrie Boggess
            c/o Walkers SPV Limited
            Walker House
            P.O. Box 908, George Town
            Grand Cayman, Cayman Islands


DORIC (FEEDER): Shareholders Gather for Final Meeting on Nov. 17
----------------------------------------------------------------
Doric Kasagi Feeder Fund's final shareholders meeting will be at
12:30 p.m. on Nov. 17, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited
          Walker House
          P.O. Box 908, George Town
          Grand Cayman, Cayman Islands


DORIC KASAGI: Invites Shareholders for Final Meeting on Nov. 17
---------------------------------------------------------------
Doric Kasagi Fund's final shareholders meeting will be at 1:30
p.m. on Nov. 17, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          John Cullinane
            Derrie Boggess
            c/o Walkers SPV Limited
            Walker House
            P.O. Box 908, George Town
            Grand Cayman, Cayman Islands


GLOBAL LONG/SHORT: Final Shareholders Meeting Is on Nov. 17
-----------------------------------------------------------
Global Long/Short Equity Portfolio Ltd.'s shareholders will
convene for a final meeting on Nov. 17, 2006, at the company's
registered office.

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

The liquidators can be reached at:

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


GLOBAL MACRO: Last Shareholders Meeting Is Scheduled for Nov. 17
----------------------------------------------------------------
Global Macro Portfolio Ltd.'s shareholders will convene for a
final meeting on Nov. 17, 2006, at the company's registered
office.

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

The liquidators can be reached at:

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


LONGHORN CDO II: Liquidator Presents Wind Up Accounts on Nov. 17
----------------------------------------------------------------
Longhorn CDO II Ltd's final shareholders meeting will be at
12:00 p.m. on Nov. 17, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

            John Cullinane
            Derrie Boggess
            c/o Walkers SPV Limited
            Walker House
            P.O. Box 908, George Town
            Grand Cayman, Cayman Islands




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


ENDESA CHILE: Will Provide Power Tendered by Local Distributors
---------------------------------------------------------------
Endesa Chile -- along with Colbun, the Chilean generator -- will
supply 73% of the 2010-24 power tendered by local distributors,
Business News Americas reports.

BNamericas says that distributors had tendered the supply of
11.8 terrawatt-hours per year.

Tender information obtained by BNamericas indicated that Endesa
Chile will provide 6.40 terrawatt-hours per year of the 10.9
terrawatt-hours per year that has been and will be awarded for
the period, including at least 50% of each of the distributors'
power needs.

Meanwhile, Colbun will provide a combined 2.20 terrawatt-hours
per year to Saesa and CGE Distribucion pending adjustments as
the firm's offers exceeded both distributors' power needs in
light of Endesa Chile's offer, according to BNamericas.

BNamericas relates that the average price obtained from
generators was US$52.60 per megawatt-hour compared to Chile's
current US$54.20 per megawatt-hour wholesale prices.

Rodrigo Castillo -- director of Empresas Electricas, the
distribution companies' association -- told BNamericas that
distributors were very happy with the prices, which were
competitive.

BNamericas emphasizes that Saesa received the lowest offer at
US$47.04 per megawatt-hour for the 1,500 gigawatt-hours per year
it will buy from Endesa Chile.

The report says that Endesa Chile offered US$50.04 per megawatt-
hour for the 430 gigawatt-hours per year for Chilquinta and
US$50.61 per megawatt-hour for 1.8 terrawatt-hour per year for
Chilectra.

Emel, another power distributor in Chile, said in a statement
that despite road shows in New York and Paris, no new players
participated in the tender process, although firms are hoping
others will in the 2007 tender.

The "second lot" will be developed in 2007.  It will feature
three tenders with a total average yearly supply of 10.1
terrawatt-hours over the same period with a maximum reference
potential of 2.83 terrawatts, BNamericas states.

Empresa Nacional de Electricidad SA aka Endesa Chile and its
subsidiaries generate and supply electricity.  The company owns
and operates generating plants, and offers civil, mechanical,
and electrical engineering, architectural environmental, and
project management services.

                        *    *    *

Moody's Investor Service assigned a Ba1 foreign currency long-
term debt rating to Empresa Nacional de Electricidad SA (Chile)
on Jan. 26, 2005.




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


ARMSTRONG WORLD: Earns US$39.2 Million in 2006 Third Quarter
------------------------------------------------------------
Armstrong World Industries Inc. reported a US$39.2 million net
income on US$973.6 million of net sales for the third quarter
ended Sept. 30, 2006, compared with a US$46.1 million net income
on US$937.0 million of net sales for the same period in 2005.

At Sept. 30, 2006, the company's balance sheet showed
US$4,720.8 million in total assets and US$5,910.3 million in
total liabilities, resulting in a stockholders' deficit of
US$1,189.5 million.

The company's balance sheet at Sept. 30, 2006, also showed
US$1,567.8 million in total current assets available to pay
US$425.6 million in total current liabilities.

Full-text copies of the company's third quarter financial
statements are available for free at:

               http://researcharchives.com/t/s?148d

                        *    *    *

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

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

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

The Bankruptcy Court confirmed AWI's plan on Nov. 18, 2003.  The
District Court Judge Robreno confirmed AWI's Modified Plan on
Aug. 14, 2006.  The Clerk entered the formal written
confirmation order on Aug. 18, 2006.  The company's "Fourth
Amended Plan of Reorganization, as Modified," has become
effective and AWI has emerged from Chapter 11.

                        *    *    *

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


BANCO DEL CAFE: IFC Providing US$200MM for Firm's Acquisition
-------------------------------------------------------------
The International Finance Corp. aka IFC said on its Web site
that it will provide US$200 million for Banco Davivienda to help
fund the latter's purchase of Banco del Cafe.

As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2006, an official of the IFC said that the organization
would help Banco Davivienda in funding its purchase of Banco del
Cafe.  Banco Davivienda would finance its acquisition of Banco
del Cafe through a US$125-million bond issue and a US$175-
million capital increase.

Business News Americas relates that the IFC's proposed financing
package comprises:

          -- US$75 million of direct equity investment into
             Davivienda, and

          -- US$125 million of subordinated debt.

According to BNamericas, the IFC holds a 4.2% stake in bAnco
Davivienda.  The financing plan is expected to go before the IFC
board before Dec. 14.

The Banco del Cafe purchase will increase Banco Davivienda's
brand and automated machine network to 539 and 1,186
respectively as well as boost the bank's geographic presence
from 52 to 132 cities, BNamericas states.

Banco del Cafe was formed by the merging of its assets and part
of Granahorrar, a local mortgage bank, in March 2005.  To save
them from bankruptcy when the country was hit by a financial
crisis in the late 90s, the government had taken control of the
banks.




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


BETONSPORTS: Agrees to Stop Trading in Missouri to Settle Suit
--------------------------------------------------------------
BetonSports Plc has settled the civil legal lawsuit in Missouri
by agreeing not to trade again in the United States and to shut
down its operations in Antigua and Costa Rica, the Evening
Standard reports.

According to the Evening Standard, BetonSports hoped the deal
would mark a major step in its efforts to have criminal charges
against the firm dropped.

BetonSports Plc gave up its United States market and over US$1
billion in bets yearly, St. Louis Post Dispatch reports.

According to The Dispatch, BetonSports agreed in the U.S.
District Court in St. Louis to a civil settlement that promises
refunds to clients and cooperation in a separate criminal case.

The Dispatch notes that BetonSports signed a permanent
injunction promising a ban on accepting US bets through its
hundreds of Web sites and 71 telephone numbers.

The report says that Judge Carol Jackson approved the
settlement.

The Dispatch relates that BetonSports is given seven days to
present to federal investigators a list of assets and company
records that could help prosecutors in the criminal case.

BetonSports must set up toll-free telephone numbers with
information about client refunds, and place prominent notices on
its Web sites that online gambling is illegal in the U.S.,
according to The Dispatch.

The Dispatch says that some of those measures were already
taken.

BetonSports said in a statement that a company subsidiary in
Antigua was handling refunds, but the refunds will depend on
money coming in from debtors.  BetOnSports is not admitting or
contesting any of the federal government's allegations and that
most of the alleged wrongdoing took place before the company
went public in July 2004.

The Dispatch emphasizes that 98% of BetonSports' business came
from U.S. gamblers.  It was a calculated risk.  Although the
firm told clients that its online gambling operations were legal
and licensed, it told investors something different.  Investment
documents indicate that the company knew that a major part of
its business model was illegal, transmitting money from
Americans back and forth.

BetonSports advisers told executives that it would be difficult
to prosecute because the firm and its workers were located
outside the U.S., The Dispatch relates.

The Evening Standard relates that criminal trials against
BetonSports' directors, including British chief executive David
Carruthers, will continue.

BetonSports directors charged with fraud and racketeering
offences go on trial in 2007, the Evening Star states.

BetonSports is an online gaming company publicly trading on the
London Stock Exchange, but has no operations in the United
Kingdom.  Around 80% of the company's business operates in the
United States, where sports betting is illegal except in the
State of Nevada.  The group also has operations in Asia,
Argentina and Mexico.


USG CORP: S&P Assign BB+ Rating on US$500MM Sr. Unsecured Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' debt
rating to the proposed US$500 million senior unsecured notes of
USG Corp. (BB+/Stable/--), due 2016, to be issued under Rule
144a with registration rights.  The rating is based on
preliminary terms and conditions.

Proceeds from the notes offering will be used for debt reduction
and general corporate purposes, which include working capital.

USG expects total debt, including capitalized operating leases,
tax-effected underfunded pension and postretirement benefits,
and asset-retirement obligations, to be US$2.9 billion at
year-end 2006.  The ratings on USG Corp. reflect the Chicago-
based company's leading position in the U.S. gypsum wallboard
and ceiling system markets, competitive cost position, flexible
capital spending needs, and moderate financial policies.  The
ratings also reflect cyclical demand for the company's products.

USG Corp.'s Latin America and Caribbean division markets gypsum
wallboard, joint treatment, industrial gypsum, gypsum wood
fibre, cement board, ceiling tile and grid suspension systems,
insulation and accessories from it's distribution facility in
Miami and operates sales offices in Argentina, Brazil, Chile,
Colombia and Costa Rica.

USG Mexico S.A. markets building systems for commercial and
residential construction including gypsum wallboard, joint
treatment, industrial gypsum, gypsum wood fibre, cement board,
construction metals, acoustical ceiling tile and suspension
systems with manufacturing and distribution facilities in Puebla
and Monterrey.




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


* CUBA: Credit Suisse & UBS Stop Business in Country
----------------------------------------------------
International press reports that UBS and Credit Suisse, two of
Switzerland's largest banks, have stopped business with Cuba.

Business News Americas relates that Credit Suisse said in the
first quarter of 2006 that it had reduced business related to
Cuba and some other nations.

Credit Suisse planned to decrease its exposure further to those
markets due to risk concerns, BNamericas states.

BNamericas didn't say in its report why UBS will stop operating
in Cuba.

                     About Credit Suisse

Credit Suisse Group is a global financial services company based
in Switzerland.  During the year ended Dec. 31, 2005, the
company's activities were managed in six segments: Private
Banking, Corporate & Retail Banking, Institutional Securities,
Wealth & Asset Management, Life & Pensions and Non-Life.  On
May 13, 2005, the two Swiss bank legal entities Credit Suisse
and Credit Suisse First Boston merged.  The merged bank, Credit
Suisse, formed the basis for the integration of the banking
business.  The integrated global bank was launched on
Jan. 1, 2006.  It operates under a single Credit Suisse brand.
In May 2006, the company acquired the United States-based
Guilford Capital Corp., which specializes in the acquisition and
syndication of federal and state tax credits primarily for low-
income housing projects.  As of July 27, 2006, Credit Suisse
Group held a 30% interest in Woori Finance Holdings Co., Ltd.

                         About UBS

UBS AG provides a range of financial services, including
advisory services, underwriting, financing, market making, asset
management, brokerage and retail banking on a global level.
UBS' financial businesses are organized into three Business
Groups and the Corporate Center.  Global Wealth Management &
Business Banking consists of three segments: Wealth Management
International & Switzerland, Wealth Management US and Business
Banking Switzerland.  The Corporate Center consists of two
segments: Corporate Functions and Private Banks & GAM, which was
sold on December 2, 2005.  The Industrial Holdings segment holds
all industrial operations controlled by the Group.  On
Aug. 14, 2006, its subsidiary, UBS Financial Services Inc.,
completed the acquisition of Private Client Services branch
network of Piper Jaffray Companies.  The branch network consists
of financial advisors and branch support personnel in 90 retail
offices in 17 Midwest, Mountain and Western states.

                        *    *    *

Moody's assigned these ratings on Cuba:

      -- CC LT Foreign Bank Deposit, Caa2
      -- CC LT Foreign Currency Debt, Caa1
      -- CC ST Foreign Bank Deposit, NP
      -- CC ST Foreign Currency Debt, NP
      -- Issuer Rating, Caa1


* CUBA: UN General Assembly Urges U.S. to Lift Trade Embargo
------------------------------------------------------------
The United Nations General Assembly voted for the 15th time in
favor of lifting a trade embargo imposed by the United States to
Cuba, AFP news agency reports.  The embargo is in effect now for
four decades since it started in 1961.

The assembly, AFP says, calls on nations to "refrain from
promulgating and applying laws and measures (such as those in
the US embargo) in conformity with their obligations under the
Charter of the United Nations and international law."

Additionally, the UN Assemby urged "states that have and
continue to apply such laws and measures to take the necessary
steps to repeal or invalidate them as soon as possible in
accordance with their legal regime," the AFP relates.

"The economic war unleashed by the US against Cuba, the longest
and most ruthless ever known, qualifies as an act of genocide
and constitutes a flagrant violation of international law and
the Charter of the United Nations," Cuban Foreign Minister
Felipe Perez Roque was quoted by AFP as saying to the Assembly.
"Throughout these 48 years, the US blockade has caused economic
damage to Cuba of over 86 billion dollars," he added. "But more
serious than all that is that the US blockade imposes its
criminal provisions on Cuba's relations with other countries
that make up this General Assembly."

In reply, US representative to the UN said: "We should send a
clear message to the Cuban government that it is not the embargo
but rather its own denial of the basic human rights of its
people that is the cause of their suffering."

Meanwhile, Finnish Ambassador Kirsti Lintonen, speaking on
behalf of the European Union reiterated the United Nations' call
for the US to end the economic sanctions to Cuba.  The
ambassador however, urged Cuba to bring marked improvements in
the field of human rights and politicial freedom.

                        *    *    *

Moody's assigned these ratings on Cuba:

      -- CC LT Foreign Bank Deposit, Caa2
      -- CC LT Foreign Currency Debt, Caa1
      -- CC ST Foreign Bank Deposit, NP
      -- CC ST Foreign Currency Debt, NP
      -- Issuer Rating, Caa1




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


CAP CANA: Completes US$250-Million Corporate Bond Issue
-------------------------------------------------------
Cap Cana has just completed the largest international corporate
bond issue in the history of the Dominican Republic, at the
lowest interest rate ever for a Dominican company in the
international arena.

The company issued US$250 million in 7-year bonds at a rate of
9.62%.  This is the first time that a Dominican company is
financed in the international market at a rate below 10.87%.

In addition, Cap Cana is the only corporate issuer from the
Dominican Republic to receive an international B rating by risk
assessor Fitch Ratings, making it the highest ranking ever
granted to company from this country.  Likewise, Moody's
Investors Services gave it an international rating of B3.

The success and low cost of the bond issue reflect the
perception of reduced risk among foreign investors, the
confidence inspired by its executives and the country's
robustness for the development of world-class projects such as
Cap Cana.

"We are very pleased to see Cap Cana, one of the companies in
our consortium, issue bonds worth US$250 million US dollars,
this demonstrates its unequivocal business drive and its already
well-deserved prediction as a successful project, which can only
be compared to some of the most select destinations in the
world," declared Abraham Hazoury, President of Grupo Abrisa.

"With this new boost of fresh capital, Cap Cana ensures it will
continue on its accelerated rhythm of growth and will certainly
fully achieve its goals," pointed out Ricardo Hazoury, President
of the Cap Cana Board of Directors.

With the funds obtained through this bond issue, Cap Cana will
pay in full its debt to the national banks, by making a payment
of US$62.3 million.  The remaining net funds will be used to
speed up the project's development.

This is a pioneering transaction in many ways.  Cap Cana, along
with financial consultant and bond issue manager, Bear, Stearns
& Co., developed an innovative financing structure with a level
of complexity and sophistication never seen before in
international markets.

The structure provides investors with an important level of
protection by integrating a dynamic system of guarantees, which
adjust as the construction project moves forward.  It provides
Cap Cana an extraordinary level of flexibility that will enable
it to drastically increase its levels of sales, provide better
payment plans for customers, and significantly increase the
project's development speed.

The transaction's main innovation is the effective combination
of securitization processes with project financing.  There is an
important construction component, which enables the creation of
an attractive structure for both the investors and the company.

Funds from the bond issue will be deposited in an escrow account
and will be disbursed for construction purposes, under de
supervision of international firm The Louis Berger Group Inc.,
which will act as an independent engineering company.

"The quality of construction at Cap Cana is at par with the
highest international standards," said Carlos Marcenaro, Senior
Vice-President of The Louis Berger Group Inc.

Interest generated by this transaction, as evidenced by a high
demand of more than US$100 million, enabled an increase in the
bond issue from US$200 million to US$250 million, as well as a
reduction in the interest rate to unprecedented levels for a
Dominican corporate issuer.  This significant success, along
with the innovative financial engineering, has spurred rumors
around international financial circles that it may be nominated
Transaction of the Year in Latin America.

CB Richard Ellis, the largest international real estate services
company in the world, rated the Cap Cana property at US$1.11
billion.  Jorge Hurtado, Director at CB Richard Ellis, pointed
out that "Cap Cana is a development that stands out because of
its ambitious dimensions; the combination of beaches, golf and a
marina, and the indisputable beauty of its surroundings.  The
project's distinctiveness, along with the prices it has
achieved, reflects an impressive proposition of added value
equal to the top destinations in the Caribbean."

Given this high value, even after this bond issue, Cap Cana's
debt levels will remain relatively low, since its total debt
represents less than 30% of the project's worth.

Following its high-profile track of partnering with some of the
most prestigious firms around the world, Cap Cana resorted to
Bear, Stearns & Co. Inc. as the exclusive agent for the bond
issue; and to Simpson, Thacher & Bartlett and Mejia, Armenteros
& Ortiz, as legal counsel in the United States and the Dominican
Republic, respectively.  In turn, Bear Stearns secured the legal
services of Thacher Profit Wood in the United States, and those
of Squire Sanders Dempsey Pena Prieto & Gamundi in the Dominican
Republic.  KPMG Dominican Republic audited the company's
financial statements, validating the data contained in the Offer
Memorandum.

"We feel highly honored to have the opportunity to be part of a
financial milestone in Dominican history," said Jose N. Cardona,
Executive Partner at KPMG.

"My partner John Tonelli and I were always loyal believers in
the Cap Cana Project," expressed Jose Luis Martinez, Managing
Director at Bear Stearns.  "Bear Stearns is extremely proud to
be part of this transaction and we feel this is a great
achievement, not only for Cap Cana but for the country as a
whole."

Located on the Eastern Coast of the Dominican Republic, Cap Cana
is a tourism and real estate project in the Caribbean, spanning
over an area close to 75,000 square miles (120-million sq.
meters), around 3.5 miles (5.5 kilometers) of beaches, and a
series of cliffs bordering its coastline.

                        *    *    *

Fitch Ratings assigned on Nov. 6, 2006, a 'B' rating to Cap
Cana, S.A.'s US$250-million senior secured notes.


* DOMINICAN REPUBLIC: President Urges Aid for Haiti
---------------------------------------------------
Noting the importance of stability on the Caribbean island of
Hispaniola, the Dominican Republic's President Leonel Fernandez
has urged international attention to the problems of Haiti.

The Dominican Republic shares the island of Hispaniola with
Haiti.

Speaking at Counterpart International's headquarters in
Washington DC, President Fernandez said he had urged US
President George W. Bush to help Haiti in any way it can.

President Fernandez stated that a stable and secure Haiti helps
the US better fight illicit drugs, terrorism and threats to
national security.

President Fernandez, a strong supporter of non-governmental
organizations, told leaders of non-profit development
organizations gathered at counterpart headquarters this month
that Haiti is a top priority for the Dominican Republic.
Stressing the importance of a peaceful and democratic Haiti, the
president noted the conflict in Haiti has produced an influx of
Haitians and a conflict of people in the Dominican Republic.

President Fernandez said that Dominican Republic doesn't want to
build a "fence" that would separate his country from Haiti.

Asserting it may have been a mistake to disband the military,
President Fernandez said the police can't handle the security
challenges in Haiti.  He urged the international community to be
more involved because Haiti's President Rene Preval can't do it
alone.

"We hope Haiti can turn around economically.  There is a need
for infrastructure.  The World Bank and the IDB (Inter-American
Development Bank) need to perform on their pledges for Haiti,"
President Fernandez stated.

President Fernandez did praise Brazil's President Lula da Silva
for committing resources to a more active role in Haiti.  He
said, "Tensions had to be dealt with in an intelligent way."

In an effort to normalize relations between the Dominican
Republic and Haiti, President Fernandez and President Preval had
entered bilateral agreements aimed at harmonizing border
control, drug trafficking, and other critical issues.

Commending President Fernandez on his commitment to the
stabilization of Haiti, Lelei LeLaulu -- president of
Counterpart International -- recalled asking the Dominican
leader two years ago to name the three top external priorities
for his new administration.  According to her, President
Fernandez said, "Haiti, Haiti and Haiti."

Haiti remains the poorest country in the Western Hemisphere and
one of the poorest in the world.  Haiti now ranks 153rd of 177
countries in the 2005 United Nations Human Development Index.
About 80% of the population lives in abject poverty.

Counterpart International works closely with FUNGLODE, the
Global Foundation for Democracy and Development, on Coral
Gardens conservation and other programs.  President Fernandez
set up FUNGLODE, a leading non-profit development organization,
when he was a private citizen.

                        *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

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

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

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




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


* HAITI: Dominican Republic's President Urges Aid for Country
-------------------------------------------------------------
Noting the importance of stability on the Caribbean island of
Hispaniola, the Dominican Republic's President Leonel Fernandez
has urged international attention to the problems of Haiti.

The Dominican Republic shares the island of Hispaniola with
Haiti.

Speaking at Counterpart International's headquarters in
Washington DC, President Fernandez said he had urged US
President George W. Bush to help Haiti in any way it can.

President Fernandez stated that a stable and secure Haiti helps
the US better fight illicit drugs, terrorism and threats to
national security.

President Fernandez, a strong supporter of non-governmental
organizations, told leaders of non-profit development
organizations gathered at counterpart headquarters this month
that Haiti is a top priority for the Dominican Republic.
Stressing the importance of a peaceful and democratic Haiti, the
president noted the conflict in Haiti has produced an influx of
Haitians and a conflict of people in the Dominican Republic.

President Fernandez said that Dominican Republic doesn't want to
build a "fence" that would separate his country from Haiti.

Asserting it may have been a mistake to disband the military,
President Fernandez said the police can't handle the security
challenges in Haiti.  He urged the international community to be
more involved because Haiti's President Rene Preval can't do it
alone.

"We hope Haiti can turn around economically.  There is a need
for infrastructure.  The World Bank and the IDB (Inter-American
Development Bank) need to perform on their pledges for Haiti,"
President Fernandez stated.

President Fernandez did praise Brazil's President Lula da Silva
for committing resources to a more active role in Haiti.  He
said, "Tensions had to be dealt with in an intelligent way."

In an effort to normalize relations between the Dominican
Republic and Haiti, President Fernandez and President Preval had
entered bilateral agreements aimed at harmonizing border
control, drug trafficking, and other critical issues.

Commending President Fernandez on his commitment to the
stabilization of Haiti, Lelei LeLaulu -- president of
Counterpart International -- recalled asking the Dominican
leader two years ago to name the three top external priorities
for his new administration.  According to her, President
Fernandez said, "Haiti, Haiti and Haiti."

Haiti remains the poorest country in the Western Hemisphere and
one of the poorest in the world.  Haiti now ranks 153rd of 177
countries in the 2005 United Nations Human Development Index.
About 80% of the population lives in abject poverty.

Counterpart International works closely with FUNGLODE, the
Global Foundation for Democracy and Development, on Coral
Gardens conservation and other programs.  President Fernandez
set up FUNGLODE, a leading non-profit development organization,
when he was a private citizen.

                        *    *    *

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




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


AIR JAMAICA: Managers to Negotiate New Wage with Unions
-------------------------------------------------------
Air Jamaica managers will launch negotiations on a new salary
for the Airline's workers, Radio Jamaica reports.

The Bustamante Industrial Trade Union, which represent various
categories of managers at Air Jamaica, will lead the talks,
Radio Jamaica states.

Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com-- was founded in 1969.  It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America.  Air Jamaica offers vacation packages
through Air Jamaica Vacations.  The company closed its intra-
island services unit, Air Jamaica Express, in October 2005.  The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004.  The
government had owned 25% of the company after it went private in
1994.  The Jamaican government does not plan to own Air Jamaica
permanently.

                        *    *    *

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


AIR JAMAICA: Management Will Discuss with Unions Firm's Future
--------------------------------------------------------------
The Air Jamaica management will meet with officials of the trade
unions representing the airline's workers to address concerns
about the future of the firm, Radio Jamaica reports.

Radio Jamaica relates that the unions requested for the meeting
on fears that the restructuring plan for Air Jamaica could
result to layoffs.

Concerns about Air Jamaica intensified after creditors
confiscated one of its planes in Miami last week, Radio Jamaica
states.

Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com-- was founded in 1969.  It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America.  Air Jamaica offers vacation packages
through Air Jamaica Vacations.  The company closed its intra-
island services unit, Air Jamaica Express, in October 2005.  The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004.  The
government had owned 25% of the company after it went private in
1994.  The Jamaican government does not plan to own Air Jamaica
permanently.

                        *    *    *

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


DIGICEL LTD: Launches Webflex Service
-------------------------------------
Digicel Ltd. has launched a new service called Webflex, which
allows clients to add credit to cellular phones through the
firm's homepage, The Nation Newspaper reports.

Through Webflex, subscribers could add any amount between US$10
and US$250 to their prepaid accounts, The Nation says, citing
Faye Gill, Digicel's head of marketing.

Ms. Gill told The Nation, "Whether they want to add US$10,
US$20.15 or US$212.28, the choice is theirs.  All they need is
Internet access, a valid credit card -- Visa, MasterCard or
Keycard, and an active email address.  To use the service, first
they must register on our website, which they only need to do
once.  Then they follow the instructions online to enter the
phone number, amount to be paid, method of payment, username and
password, to confirm their purchase."

The Nation relates that at the end of the transaction, a payment
confirmation page will be displayed and the transaction is
posted to the account immediately.  After every payment, a
receipt is emailed to the client.

"One of the important features about WebFlex is that the service
can be accessed from overseas.  So if you are travelling and
need to top up, as long as you are registered and have Internet
access, there is no problem," Ms. Gill told The Nation.

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

                        *    *    *

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

                        *    *    *

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




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


ALESTRA: Grupo Iusacell & Unefon Accuse Firm of Fraud
-----------------------------------------------------
Grupo Iusacell and Unefon, has complained to Cofetel -- the
Mexican telecom regulator -- that Alestra, along with Avantel
and Maxcom, has committed fraud, Reforma reports.

Business News Americas relates that Grupo Iusacell and Unefon
claimed that they have received local calls connected by the
three landline operators charged through prepaid international
long distance cards instead of the required 044 calling code.

Ulrich Richter, the legal representative of Grupo Iusacell and
Unefon, told Reforma that the act allows the three landline
firms to complete the call while avoiding the payment of
interconnection tariffs to the mobile operator on the receiving
end.  These practices cost the mobile company over MXN10 million
per month.

Grupo Iusacell and Unefon told BNamericas that they have asked
Cofetel for the cancellation of the three firm's operating
licenses.

Avantel, Alestra and Maxcom told BNamericas that the fraud
allegations are simply a measure of revenge for their refusal to
participate in the long distance and international Calling Party
Pays or CPP regulations Cofetel introduced on Nov. 4.

BNamericas notes that under the CPP guidelines, someone making
an international or long distance call to a mobile phone must
pay the entire MXN3.03-per-minute tariff, while the mobile-
bearing receiver doesn't pay anything.

Eduardo Ruiz Vega, legal commissioner of Cofetel, told El
Universal that landline carriers are using international calling
cards to engage in "bypass" practices so they are only charged
interconnection rates for local calls.

A significant number of complaints have been made against
Avantel, Alestra and Maxcom as well as Axtel for complications
in completing calls under the CPP system, BNamericas says,
citing Gerardo Gonzalez, Cofetel commissioner.

BNamericas underscores that there was a court ruling that
allowed the four firms to temporarily pass up on CPP.

However, Cofetel told BNamericas that the four operators will
eventually adopt the system because a lot of their own traffic
was lost under the previous mobile party pays system.

BNamericas emphasizes that under the old system, the cost of
interconnecting the call was shared between the mobile and fixed
line parties.

As many mobile users in Mexico have prepaid phones, they did not
have the credit to receive the call as so many calls were never
completed, which meant lost revenue, BNamericas says.

Mr. Gonzalez told BNamericas, "We need to find out what is
happening with Avantel.  Their customers (calling mobile phones
long distance) are aware that they will be charged the full
tariff rate, but Avantel is sending back their calls, saying
that the number can't be identified.  This is clearly a blockage
of traffic for its own clients, and has generated lawsuits by
the (consumer protection regulator) Profeco.  We have also
received various complaints here at Cofetel."

According to Notimex, Jaime Osuna -- president of Cofetel -- is
believes that the regulator will resolve the complications with
CPP over next week.

The legislature has approved Cofetel's request to conduct a
federal information program on CPP to facilitate its
implementation, El Norte states.

Headquartered in Mexico City, Mexico, Grupo Iusacell, SA de CV
(BMV: CEL) -- http://www.iusacell.com-- is a wireless cellular
and PCS service provider in Mexico with a national footprint.
Independent of the negotiations towards the restructuring of its
debt, Grupo Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations offering more and better voice
communication and data services through state-of-the-art
technology, including its new 3G network, throughout all of the
regions in which it operate.

Alestra SA is a Mexican broadband, data and voice services
provider Alestra that operates under the AT&T brand.

                        *    *    *

Fitch Ratings placed these ratings on Alestra, SA de CV

          -- B- long-term issuer default rating; and
          -- B- local currency long-term issuer default rating.

Fitch said the outlook is negative.


AMERICAN TOWER: Special Committee Reports Stock Grants Findings
---------------------------------------------------------------
American Tower Corp. reported total revenues increased 26% to
US$333.5 million and rental and management segment revenues
increased 25% to US$326.4 million, of which US$113.2 million was
attributable to SpectraSite.

Rental and Management Segment Gross Margin increased 26% to
US$245.4 million, of which US$79.4 million was attributable to
SpectraSite.  Services Segment revenue and Gross Margin
increased to US$7.1 million and US$4.1 million, respectively.

Total selling, general, administrative and development expense
was US$42.4 million for the quarter ended Sept. 30, 2006.  The
Company's selling, general, administrative and development
expense for the quarter includes estimated stock-based
compensation expense of US$10.7 million and US$8.2 million of
additional costs related to the review of stock option granting
practices and related legal and governmental proceedings.

Free Cash Flow was US$148.9 million, of which US$47.5 million
was attributable to SpectraSite.  The Company also disclosed the
completion of the construction of 38 towers and the installation
of 3 in-building systems during the quarter.

The financial results for the third quarter ended Sept. 30,
2006, due to its internal stock option review, only includes
selected financial results.  The Company says it will release
full financial results for the third quarter and financial
reports for prior periods after it finalizes its financial
statements with respect to the Special Committee's findings.

              Stock Option Grant Investigation

As reported in the Troubled Company Reporter on Sept. 22, 2006,
the special committee of the Company's Board of Directors is
investigating its stock option grants and the Company has
determined that it will need to restate its financial
statements.

On Nov. 6, 2006, the Special Committee reported to the Company's
Board of Directors regarding its findings.

The Special Committee's key findings are:

   -- The grant dates reported by the Company for accounting and
      financial reporting purposes for most stock option grants
      during the period from June 1998 and into 2005 were
      incorrect because they did not reflect the dates on which
      the grants were legally effective.

   -- From June 1998 through 2004, for certain large annual
      grants and many other individual grants, certain members
      of management chose past dates as grant dates so as to use
      a lower exercise price.

   -- The option grants involving lookbacks were inconsistent
      with the Company's disclosures that option grants were
      made at fair market value, were not accounted for properly
      and, to the extent they involved incentive stock options,
      violated the requirement under the Company's 1997 Stock
      Option Plan that they be at fair market value.

   -- Stock options were granted by management pursuant to
      authority they believed had been delegated by the
      Compensation Committee, but that delegation was not
      adequately documented, and therefore the necessary legal
      approval of some grants did not occur until they were
      subsequently approved by the Compensation Committee.

   -- The process by which members of the Compensation Committee
      formally approved option grants involved the signing of
      unanimous written consents that included schedules of
      option grants approved by management for the preceding
      quarter.  The Company used the date in the schedules as
      the option grant date.  However, all necessary corporate
      action had not been taken until the written consents were
      actually signed by all committee members, which did not
      happen until later.

   -- The Company's flawed option practices began with past
      management.  The evidence does not indicate that
      management at the time in question was aware that the
      Company was failing to take necessary accounting charges
      or acting contrary to the Company's disclosures.  However,
      certain members of past management who initiated and were
      involved with the option practices should have been aware
      of the accounting or legal issues or sought legal and
      accounting advice as to the practice.

   -- Current management's efforts to improve and formalize
      procedures for option grants eliminating the practice of
      lookbacks.  In addition, the evidence does not indicate
      intentional misconduct by any member of current
      management.

   -- One or more outside lawyers for the Company were told of
      the lookback practice and did not advise the Company of
      the accounting and legal problems with the practice.

   -- The Board of Directors and the Compensation Committee
      failed to adopt adequate procedures to ensure that
      Compensation Committee members understood the Company's
      1997 Stock Option Plan and that it was properly
      administered.

   -- From 1998 through 2005, the Company's processes,
      procedures and controls were inadequate.

   -- The Company also had inadequate controls relating to, and
      failed to account properly for, certain modifications of
      outstanding stock option rights.

The Special Committee will recommend to the Company's Board of
Directors a remediation plan to address the issues raised by its
findings.

                    Financing Highlights

The Company further disclosed that it has temporarily suspended
its stock repurchase program while the review of its stock
option granting practices is ongoing.  Prior to the suspension
of the stock repurchase program, the Company had repurchased a
total of 11.8 million shares of its Class A common stock for
approximately US$358.4 million.

During the quarter ended September 30, 2006, the Company
repurchased a total of US$15.5 million principal amount of its
7.25% Senior Subordinated Notes due 2011 for approximately
US$15.9 million.  In addition, the Company repurchased a total
of US$23.5 million principal amount of its 5% Convertible Notes
due 2007 for approximately US$23.4 million.  Subsequent to the
end of the quarter, the Company repurchased an additional US$8.6
million principal amount of its 7.25% Notes for approximately
US$9 million.

Headquartered in Boston, Massachusetts, American Tower Corp.
(NYSE: AMT) -- http://www.americantower.com/-- is an
independent owner, operator and developer of broadcast and
wireless communications sites in North America.  American Tower
owns and operates over 22,000 sites in the United States,
Mexico, and Brazil.  Additionally, American Tower manages
approximately 2,000 revenue producing rooftop and tower sites.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 21, 2006
Standard & Poor's Ratings Services' ratings for Boston-based
wireless tower operator American Tower Corp. and its related
entities remained on CreditWatch with negative implications,
including the 'BB+' corporate credit rating.  The '1' recovery
ratings for the company's bank loans are not on CreditWatch.

As reported in the Troubled Company Reporter on Sept. 4, 2006
Moody's Investor Service lowered American Tower Corporation's
Speculative Grade Liquidity Rating to SGL-3 from SGL-1 and
affirmed all long term ratings of AMT, American Tower Inc. and
Spectrasite Communications Inc., including AMT's Ba2 Corporate
Family Rating.  At the same time, Moody's changed the outlook to
developing from stable.


GENERAL MOTORS: Plans US$1.5 Bil. Secured Loan by Year-End 2006
---------------------------------------------------------------
General Motors Corp. plans to execute a US$1.5 billion senior
secured term loan facility with a seven-year maturity.

The facility is intended to further enhance GM's liquidity
position and take advantage of robust market conditions.  GM's
ability under some of its existing bond indentures to pledge
U.S. property, plant and equipment is likely to be affected in
the future by new rules applicable to pension and OPEB
accounting, which could cause GM's shareholders' equity in its
year-end 2006 financial statements to be negative.

Under the proposed terms, the lenders under the facility will
receive a first priority security interest in machinery and
equipment and special tools located at GM's U.S. manufacturing
facilities.

J.P. Morgan Securities Inc. and Credit Suisse Securities (USA)
LLC are the arrangers of the facility, and JPMorgan Chase Bank,
N.A. is the administrative agent.

GM anticipates that the execution of this facility will be
completed by year-end.  Completion of the transaction is subject
to final documentation and other conditions, and there is no
assurance regarding timing or successful completion of the
transaction.

                    About General Motors

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


GENERAL MOTORS: Fitch Rates US$1.5 Billion Term Loan at 'BB/RR1'
----------------------------------------------------------------
Fitch Ratings has assigned a 'BB/RR1' rating to General Motors
Corp.'s new US$1.5 billion, seven-year senior secured term loan.
General Motors' new term loan is also placed on Rating Watch
Negative, where it stands with its 'B' Issuer Default Rating and
'B/RR4' senior unsecured debt pending resolution of the Delphi
situation.

The new senior secured loan will be secured by perfected, first-
priority liens on machinery, equipment and special tools at
principal U.S. manufacturing facilities.  The loan is
overcollateralized and full recovery is expected under a default
scenario.  The loan is also subject to a collateral value test
with collateral value required to be at least 2.5x the amount of
the loan outstanding.

The new secured term loan brings total secured debt facilities
to US$7.5 billion.  Under Fitch's recovery analysis, the new
term loan would move the estimated recovery value for unsecured
debtholders to the very bottom of the 'RR4' range (estimated
recovery of 30-50%).  As a result, any changes to Fitch's
assumptions or to General Motors's liability structure could
result in a downgrade of the unsecured debt rating.

The new facility provides a very modest boost to liquidity,
which remains adequate to fund near-term negative cash flows.
Cash flows remain negative due to operating results, working
capital drains and restructuring costs. Liquidity is expected to
be boosted substantially by the pending sale of a controlling
interest in General MotorsAC.

Operating results have benefited from the rollout of the General
MotorsT-900 series SUV products, and will further benefit from
the rollout of the refreshed pickup lineup.  However, industry
sales declines in these categories are likely to continue due to
changing customer tastes, the impact of higher gas prices and
the impact of slower growth, casting doubt on the sustainability
of revenues in the latter part of 2007.  The realization of cost
savings from restructuring efforts should become more evident,
although high commodity costs, restructuring costs and working
capital outflows will likely result in continued negative cash
outflows in 2007.  The Delphi situation, further stresses in the
supply base, and the September 2007 UAW contract talks also pose
event risk over the near-term.

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


GENERAL MOTORS: Moody's Rates Proposed US$1.5 Bil. Loan at Ba3
--------------------------------------------------------------
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
proposed US$1.5 Billion secured term loan of General Motors
Corp.  The term loan is expected to be secured by a first
priority perfected security interest in all of the US machinery
and equipment, and special tools of GM and Saturn Corporation.

The rating reflects the favorable asset protection and recovery
potential that would be afforded to this instrument relative to
the company's unsecured obligations, as reflected in the LGD1
assessment, and LGD rate of 9%.

Moody's expects that the proceeds will be retained by GM and
used to enhance its liquidity position.  Bruce Clark, Senior
Vice President with Moody's said, "GM is going to need
considerable liquidity in order to fund the large cash
requirements resulting from its aggressive employee buy-out
program, its participation in any resolution of the Delphi
reorganization, the operating losses that will continue until
its restructuring program takes hold, and challenges posed by
the 2007 UAW negotiations.  The company also has to be prepared
for any potential slowdown in the US economy."

"GM clearly recognizes the importance of maintaining sound
liquidity and it's making notable progress in this area. The
company currently has about US$20 billion in cash, it recently
closed on a US$4.5 billion secured revolving credit facility,
and the term loan would give it an additional US$1.5 billion. A
more significant boost to its liquidity would be the US$10
billion expected from the GMAC sale which GM expects to complete
by year end," Clark added.

GM's B3 Corporate family rating, Ba3, LGD1, 9% secured revolving
credit facility rating, Caa1, LGD4, 59% senior unsecured rating,
SGL-3 Speculative Grade Liquidity rating, and negative outlook
remain unchanged.

Despite GM's continuing progress in establishing a sizable
liquidity cushion, the company continues to face daunting
operational and competitive challenges.  The increasingly
competitive position of Asian manufacturers and the shift in
consumer preference toward more fuel efficient vehicles will
continue to severely pressure the company's share position.

This share pressure could limit GM's ability to generate
meaningful intermediate-term improvement in key credit metrics
despite its aggressive initiatives to reduce capacity and lower
costs.  As a result, the rating outlook remains negative.

General Motors Corp., headquartered in Detroit, Michigan, is the
world's largest automotive manufacturer.


GENERAL MOTORS: Wants to Boost Production Capacity in Thailand
--------------------------------------------------------------
General Motors Corp. plans to expand its production capacity in
Thailand, The Nation reports, adding, however, that the company
is still awaiting the decision from the Board of Investment of
Thailand.

According to the report, representatives from GM Thailand and
Deputy Industry Minister Piyabutr Cholvijarn met on
Oct. 8, 2006, regarding the planned expansion.

Mr. Piyabutr told The Nation that GM asked the Government to
lower the excise tax for automobiles produced in Thailand.

Moreover, the representatives asked whether the government would
continue to support the eco-car policy and asked for more
details about the eco-car policy and a clearer definition of
"sufficiency economy", the paper relates.

At present, GM has a production capacity of 120,000 units per
year, which is the company's second-largest plant in Asia, after
its Chinese factory, The Nation notes.

Mr. Piyabutr said that the company is planning to increase its
local production capacity up to 80%, from 40%-50% at present.

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 TCR-Europe on Oct. 11, 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 TCR 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.

In a TCR-Europe report on June 22, 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 Corporation, 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.


GRUPO IUSACELL: Accuses National Fixed Line Operators of Fraud
--------------------------------------------------------------
Grupo Iusacell, along with Unefon, has complained to Cofetel --
the Mexican telecom regulator -- that Avantel, Alestra and
Maxcom have committed fraud, Reforma reports.

Business News Americas relates that Grupo Iusacell and Unefon
claimed that they have received local calls connected by the
three landline operators charged through prepaid international
long distance cards instead of the required 044 calling code.

Ulrich Richter, the legal representative of Grupo Iusacell and
Unefon, told Reforma that the act allows the three landline
firms to complete the call while avoiding the payment of
interconnection tariffs to the mobile operator on the receiving
end.  These practices cost the mobile company over MXN10 million
per month.

Grupo Iusacell and Unefon told BNamericas that they have asked
Cofetel for the cancellation of the three firm's operating
licenses.

Avantel, Alestra and Maxcom told BNamericas that the fraud
allegations are simply a measure of revenge for their refusal to
participate in the long distance and international Calling Party
Pays or CPP regulations Cofetel introduced on Nov. 4.

BNamericas notes that under the CPP guidelines, someone making
an international or long distance call to a mobile phone must
pay the entire MXN3.03-per-minute tariff, while the mobile-
bearing receiver doesn't pay anything.

Eduardo Ruiz Vega, legal commissioner of Cofetel, told El
Universal that landline carriers are using international calling
cards to engage in "bypass" practices so they are only charged
interconnection rates for local calls.

A significant number of complaints have been made against
Avantel, Alestra and Maxcom as well as Axtel for complications
in completing calls under the CPP system, BNamericas says,
citing Gerardo Gonzalez, Cofetel commissioner.

BNamericas underscores that there was a court ruling that
allowed the four firms to temporarily pass up on CPP.

However, Cofetel told BNamericas that the four operators will
eventually adopt the system because a lot of their own traffic
was lost under the previous mobile party pays system.

BNamericas emphasizes that under the old system, the cost of
interconnecting the call was shared between the mobile and fixed
line parties.

As many mobile users in Mexico have prepaid phones, they did not
have the credit to receive the call as so many calls were never
completed, which meant lost revenue, BNamericas says.

Mr. Gonzalez told BNamericas, "We need to find out what is
happening with Avantel.  Their customers (calling mobile phones
long distance) are aware that they will be charged the full
tariff rate, but Avantel is sending back their calls, saying
that the number can't be identified.  This is clearly a blockage
of traffic for its own clients, and has generated lawsuits by
the (consumer protection regulator) Profeco.  We have also
received various complaints here at Cofetel."

According to Notimex, Jaime Osuna -- president of Cofetel -- is
believes that the regulator will resolve the complications with
CPP over next week.

The legislature has approved Cofetel's request to conduct a
federal information program on CPP to facilitate its
implementation, El Norte states.

Headquartered in Mexico City, Mexico, Grupo Iusacell, SA de CV
(BMV: CEL) -- http://www.iusacell.com-- is a wireless cellular
and PCS service provider in Mexico with a national footprint.
Independent of the negotiations towards the restructuring of its
debt, Grupo Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations offering more and better voice
communication and data services through state-of-the-art
technology, including its new 3G network, throughout all of the
regions in which it operate.

As of Dec. 31, 2005, Grupo Iusacell's stockholders' deficit
widened to MXN2,076,000,000 from a deficit of MXN1,187,000,000
at Dec. 31, 2004.

Grupo Iusacell filed for bankruptcy protection on June 18 under
Mexican Law to prevent creditors from disrupting its debt
restructuring talks.  On July 14, 2006, Gramercy Emerging
Markets Fund, Pallmall LLC and Kapali LLC, owed an aggregate
amount of US$55,878,000 filed an Involuntary Chapter 11 Case
against Grupo Iusacell's operating subsidiary, Grupo Iusacell
Celular, SA de CV (Bankr. S.D.N.Y. Case No. 06-11599).  Alan M.
Field, Esq., at Manatt, Phelps & Phillips, LLP, represents the
petitioners.  Iusacell Celular then filed for bankruptcy
protection under Mexican Law on July 18.


KANSAS CITY SOUTHERN: Offering US$150MM of Senior Notes Due 2013
----------------------------------------------------------------
Kansas City Southern de Mexico SA de CV, a wholly owned
subsidiary of Kansas City Southern, intends to offer
approximately US$150.0 million in aggregate principal amount of
senior notes due 2013.  The company intends to use the net
proceeds of the offering to purchase or satisfy and discharge
its outstanding 10.25% Senior Notes due 2007 and repay
outstanding term loan indebtedness.

The Senior Notes will be offered to qualified institutional
buyers under Rule 144A and to persons outside the United States
under Regulation S.  The Senior Notes will not be registered
under the Securities Act of 1933, as amended, and, unless so
registered, may not be offered or sold in the United States
except pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act
and applicable state securities laws.

Headquartered in Kansas City, Mo., KCS is a transportation
holding company that has railroad investments in the U.S.,
Mexico and Panama.  Its primary U.S. holdings include The Kansas
City Southern Railway Company, serving the central and south
central U.S. Its international holdings include Kansas City
Southern de Mexico, S.A. de C.V., serving northeastern and
central Mexico and the port cities of Lazaro Cardenas, Tampico
and Veracruz, and a 50 percent interest in Panama Canal Railway
Company, providing ocean-to-ocean freight and passenger service
along the Panama Canal.  KCS' North American rail holdings and
strategic alliances are primary components of a NAFTA Railway
system, linking the commercial and industrial centers of the
U.S., Mexico and Canada.

                        *    *    *

As reported in the Troubled Company Reporter on May 22, 2006,
Standard & Poor's Ratings Services lowered its preferred stock
ratings on Kansas City Southern to 'D' from 'C' and removed the
ratings from CreditWatch where they were initially placed on
March 23, 2006; ratings were previously lowered on April 4 and
May 1 and maintained on CreditWatch with negative implications.

Standard & Poor's other ratings on Kansas City Southern,
including its 'B' corporate credit rating, remain on CreditWatch
with negative implications, where they were initially placed
April 4, 2006.  Ratings were lowered on April 10 and maintained
on CreditWatch.


KANSAS CITY SOUTHERN: Moody's Rates Sr. Unsecured Notes at B3
-------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to Kansas City
Southern de Mexico S.A de C.V.'s issue of senior unsecured notes
due 2013.  Moody's will withdraw the rating on the company's
10.25% senior unsecured notes due 2007.  Also, Moody's changed
the ratings outlook to stable from negative for Kansa City
Southern de Mexico, Kansas City Southern Railway Company and
Kansas City Southern.

Kansas City Southern de Mexico is highly leveraged compared to
other railroad competitors, with credit metrics that are
consistent with other issuers at the B3 rating level.  The
company operates a geographically attractive railway concession
in Mexico and has shown strong recent improvement in operating
performance, somewhat lagging the trend of the rest of the
industry however.  Kansa City Southern de Mexico is highly
sensitive to conditions in the Mexican economy and to Mexican
regulation and has a particularly high exposure to local
automotive production levels.  In addition, "Kansas City
Southern de Mexico has significant ongoing capital spending
requirements, especially for locomotives, which will likely
limit sustained improvement in credit metrics" according to Bob
Jankowitz, Senior Vice President at Moody's.

Kansas City Southern de Mexico's debt level will not change as
proceeds of the 2013 Notes will pay for the 10.25% Notes
tendered under the company's current Tender Offer.  Because a
substantial portion (about 97%) of the 10.25% Notes has been
tendered to date, Moody's will withdraw the rating on these
notes.

However, issuing the 2013 Notes at this time will ease the near
term refinancing risk considerably, particularly since a
condition of Kansas City Southern de Mexico's bank facility
requires the outstanding 10.25% Notes to be refinanced in March,
2007 at the latest.  In addition, the company is expected to
renegotiate its bank term loan to extend out the amortization
schedule (final maturity in October, 2008, but begins to
amortize during 2007).

These financing actions at Kansas City Southern de Mexico,
combined with much better operating performance at both
railroads and management's efforts to control the cash position,
have improved liquidity for both Kansa City Southern de Mexico
and Kansas City Southern Railway.  Moody's expectations of
adequate near-term liquidity and some further operating
improvement drove the revision in the rating outlook to stable
from negative.

Moody's notes that Kansas City Southern de Mexico's 2013 Notes
will not be guaranteed by either Kansas City Southern Railway
(the US railroad) or Kansas City Southern (the ultimate parent).
Similarly, the Kansas City Southern Railway debt is not
guaranteed by Kansas City Southern de Mexico.

Kansas City Southern de Mexico owns the concession to operate
Mexico's northeast railway.


KANSAS CITY SOUTHERN: S&P Puts B- Rating on US$150MM Sr. Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' rating to
the US$150 million senior unsecured notes being issued by Kansas
City Southern de Mexico S.A. de C.V. (B/Negative/--), the
Mexican subsidiary of Kansas City Southern (B/Negative/--).

The debt, which is being issued under Rule 144A, will be used to
repurchase US$150 million of Kansa City Southern de Mexico
senior unsecured notes due 2007.  Ratings on Kansas City
Southern de Mexico are determined by the consolidated credit
quality of Kansas City Southern, which includes the operations
of Kansas City Southern de Mexico as well as those of U.S.
subsidiary Kansas City Southern Railway Co. (B/Negative/--)

"Ratings on Kansas City Southern reflect its constrained
liquidity, highly leveraged capital structure, and challenges
associated with the integration of Kansas City Southern de
Mexico, which was acquired in April 2005," said Standard &
Poor's credit analyst Lisa Jenkins. Offsetting these risks
somewhat are the favorable characteristics of the U.S. freight
railroad industry and Kansas City Southern's strategically
located rail network.

Ratings incorporate an expectation that favorable industry
conditions will enable Kansas City Southern to strengthen its
currently extended financial profile and improve its liquidity
position over the near to intermediate term.

                         Ratings List

Kansas City Southern
  Corporate Credit Rating              B/Negative/--

Kansas City Southern Railway Co.
  Corporate Credit Rating              B/Negative/--

Kansas City Southern de Mexico S.A. de C.V.
  Corporate Credit Rating              B/Negative/--

Ratings Assigned

Kansas City Southern de Mexico S.A. de C.V.
  US$150 Million Senior Unsecured Notes           B-


* STATE OF HIDALGO: Moody's Assigns Ba2 Local Currency Rating
-------------------------------------------------------------
Moody's Investors Service has assigned issuer ratings of A2.mx
(Mexico National Scale) and Ba2 (Global scale, local currency)
to the State of Hidalgo.

The ratings incorporate the state's debt ratios, which are above
the average for other Mexican states rated by Moody's.  The debt
burden is mitigated by a manageable debt service.  The ratings
also reflect a trend of financing deficits in the last five
years, a result of the substantial borrowing for capital
projects.  The state's economic indicators reflect a low GDP per
capita compared to that of the nation and an economy that will
likely continue to expand.

At the end of 2006, the state's debt is expected to represent
15.5% of the revenues anticipated for the year.  This marks a
change from a debt level of just 3.8% of total revenues in 2001,
as the state has used debt to cover its infrastructure needs
during this time.  All of the state's debt is paid by a trust
with a pledge of federal participation revenues. The state plans
to refinance its debt by year's end, aiming to lower debt
service costs and postponing final maturity.  Debt service is
very manageable absorbing less than 2% of the total budget for
the past five years.  The debt service payment for 2006 is
expected to reach 4% of revenues, given that the state has
included in debt service costs the amounts deposited into the
principal reserve funds for the four credits being paid through
a trust.

The state's main contingent liability stems from the water and
sewer operator CASSIM -- Comision de Agua y Alcantarillado y
Sistemas Intermunicipales de Pachuca -- but it is not considered
significant.  In addition, Hidalgo's pension situation appears
to now be under control, as in 2002 the state transferred
pension responsibilities for approximately half of its workers
to the federal ISSSTE.  The state's responsibility with regards
to these workers is to pay the monthly premiums to ISSSTE, which
in 2005 amounted to less than 1% of operating expenditures.

The state has registered negative financing results in every
year since at least 2001, ranging from -3% of revenue in 2001 to
-7% in 2005.  Operating margins have generally been positive,
averaging 8% of operating revenues over the past five years,
indicating that the financing deficits are a product of
increases in capital spending over the years, and the state's
inability to generate sufficient cash after operations to self
fund a good portion of these projects.

Increases in fee revenues (derechos) observed since 2003 are
mainly to the incorporation the revenues of decentralized
entities (such as CASSIM and the housing institute) into the
financial accounting of the state.  Although the own-source
revenue almost doubled since then, this does not provide
additional flexibility because this revenue is returned to the
decentralized entities as a transfer on the expenditure side.
Current spending has comprised approximately 87% of the total
budget over the last five years.  Of this, personnel spending
makes up 56% of the operating budget.  Spending on capital
infrastructure has averaged 13% of the total budget, above the
9.7% registered for other Mexican states rated by Moody's,
though most of this spending has been achieved with borrowing.

The state's liquidity is quite narrow. In each of the last five
years, year-end current liabilities have exceeded cash on hand
and the cash position has been negative, representing anywhere
from one to 2.5 months (in 2004) of revenues.  The cash position
seems to have stabilized in 2005.

The state of Hidalgo has approximately 2.4 million inhabitants
in its 84 municipalities.  The capital and largest city,
Pachuca, has approximately 275,000 of the total population.
Although traditionally Hidalgo has been an agricultural state,
today, the southern portion comprises primarily the service,
industrial, and manufacturing sectors.  The combined service
sector makes up approximately 50% of the economic activity,
while manufacturing comprises another 25%.  The GDP per capita
that is less than 60% of the national average but job growth, as
measured by the number of workers registered at the IMSS has,
however, in recent years surpassed that of the nation.




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


CHIQUITA BRANDS: Obtains Permanent Amendment to Credit Facility
---------------------------------------------------------------
Chiquita Brands International, Inc. has amended its credit
agreement dated as of June 28, 2005, with a syndicate of banks
and financial institutions.

On Nov. 8, 2006, the company obtained a permanent amendment to
cure the covenant violations that would have otherwise occurred
when the temporary waiver expired.

The amendment revised certain covenant calculations relating to
financial ratios for leverage and fixed charge coverage,
established new levels for compliance with those covenants to
provide additional financial flexibility, and includes interest
rates on the Revolving Credit Facility of LIBOR plus a margin
ranging from 1.25% to 3%, and on the Term Loans of LIBOR plus a
margin ranging from 2% to 3%, in each case depending on the
company's consolidated leverage ratio.  Initially, the interest
rates on both the Revolving Credit Facility and the Term Loans
will be LIBOR plus 3%.  In addition, Chiquita Brands L.L.C. is
required to pay a fee on the daily unused portion of the
Revolving Credit Facility of 0.25% to 0.50% per annum.

Under the amended CBL Facility, CBL may distribute cash to CBII
for routine CBII operating expenses, interest payments on CBII's
7 1/2% and 8 7/8% Senior Notes and payment of certain other
specified CBII liabilities.  Until Chiquita meets certain
financial ratios and elects to become subject to a reduced
maximum leverage ratio,

   (i) CBL's distributions to CBII for other purposes, such
       as dividend payments to Chiquita shareholders
       and repurchases of CBII's common stock, warrants
       and senior notes, are prohibited; and

  (ii) the ability of CBL and its subsidiaries to
       incur debt, dispose of assets, carry out mergers
       and acquisitions, and make capital expenditures
       is further limited than under the original
       CBL Facility.

The amendment to the credit agreement, effective Nov. 8, 2006,
among Chiquita Brands LLC, Chiquita Brands International, Inc.,
certain financial institutions as lenders, and Wachovia Bank,
N.A., as administrative agent, was filed [Thurs]day as an
exhibit to the company's Quarterly Report on Form10-Q.

                         Background

The company and Chiquita Brands L.L.C., the main operating
subsidiary of the company, have a secured credit facility with a
syndicate of bank lenders comprised of two term loans and a
revolving credit facility.

In June 2006, the CBL Facility was amended to modify certain
financial covenants.  In connection with the amendment, the
Revolving Credit Facility was increased by US$50 million to
US$200 million.

At Sept. 30, 2006, no borrowings were outstanding under the
Revolving Credit Facility; however, US$23 million of credit
availability was used to support issued letters of credit,
leaving US$177 million of credit available under the Revolving
Credit Facility.  The company borrowed US$14 million under the
revolver in early November 2006.

On Oct. 5, 2006, the company obtained a temporary waiver from
compliance, for the period ended Sept. 30, 2006, with certain
financial covenants in the CBL Facility, with which the company
otherwise would not have been in compliance.  The temporary
waiver was effective through Dec. 15, 2006.

As previously reported in the TCR-Europe on Oct. 12, Chiquita
Brands International Inc. and Chiquita Brands LLC, its main
operating subsidiary, entered into Waiver Letter No. 1 with the
lenders under the credit agreement dated as of June 28, 2005, on
Oct. 5, 2006.

In accordance with the terms and conditions under the waiver
letter, compliance with certain financial covenant provisions in
the Credit Agreement has been waived through Dec. 15, 2006.

                       About Chiquita

Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- markets and
distributes fresh food products including bananas and nutritious
blends of green salads.  The company markets its products under
the Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks.  Chiquita employs approximately 25,000
people operating in more than 70 countries worldwide Panama

                        *    *    *

As reported in the TCR-Europe on Nov. 8, Moody's Investors
Service downgraded the ratings for Chiquita Brands L.L.C., as
well as for its parent Chiquita Brands International, Inc.
Moody's said the outlook on all ratings is stable.

This rating action follows the company's announcement that had
incurred a US$96 million net loss for its 2006 third quarter.

Standard & Poor's Ratings Services also lowered its ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc.,
including its corporate credit rating, from 'B+' to 'B'.

S&P said the ratings remain on CreditWatch with negative
implications where they were placed on Sept. 26.


CHIQUITA BRANDS: S&P Affirms B Rating After Covenant Amendment
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on Cincinnati, Ohio-based
Chiquita Brands International Inc. and Chiquita Brands LLC.  The
ratings were removed from CreditWatch with negative implications
where they were placed on Sept. 26, 2006, after the company's
report that third quarter operating performance was expected to
be weak.

Ratings were subsequently lowered by one notch on Nov. 3, 2006.
Chiquita recently received an amendment to its credit facility
to relax covenants over multiple quarters.  As indicated in our
CreditWatch update on Nov. 3, 2006, ratings would be affirmed
and withdrawn from CreditWatch upon receipt of such an
amendment.

The outlook is negative.  Total debt outstanding at the company
was about US$990 million as of Sept. 30, 2006.

"The ratings on Chiquita reflect the company's high debt
leverage, weak credit measures, and its product concentration in
bananas," said Standard & Poor's credit analyst Alison Sullivan.

Also, the company competes in the mature fruit and vegetable
industry, which faces uncontrollable factors such as global
supply, world trade policies, political risk, currency swings,
weather, and disease.

Chiquita is a leading producer, marketer, and distributor of
bananas and other fresh and processed foods sold under the
Chiquita brand name and other brand names.  The company has the
No.1 banana market position in Europe and the No. 2 position in
North America.

In addition to bananas, the company's fresh products include
tropical fruits such as mangoes, pineapples, melons, and kiwi
fruits.  The June 2005 acquisition of Fresh Express added
packaged salad products.




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


* PARAGUAY: IDB Grants US$1.8MM to Promote Tourism in Guarani
-------------------------------------------------------------
The Inter-American Development Bank's Multilateral Investment
Fund approved grants for a total of US$1.8 million for a program
to promote tourism to the former Jesuit and Franciscan missions
in Guarani World in Paraguay.

The area known as Guarani World involves the open towns of the
Franciscan trail and a route linking seven Jesuit missions built
during the XVI century.  The area is today considered the heart
of Guarani culture in Paraguay.

"The Franciscan and Jesuit worlds are where the Indigenous and
Spanish cultures merged," said MIF Team Leader Santiago Soler.
"They produced an extraordinary example of a mestizo society in
the Americas.  The resulting civilization and its
diversification is what is valuable to the current and potential
tourism industry."

"The Franciscan churches located in the center of large plazas
show the humility of this religious group and its adaptation to
the environment of the indigenous culture and are still open for
worship to this day," added Mr. Soler.  "UNESCO declared two of
the 'reducciones' or Jesuit settlements as World Heritage Sites.
The Jesuit mission route starts 226 kilometers east from
Asuncion, capital of Paraguay."

The program will help develop a sustainable tourism activity in
the missions area and better position it as a tourism
destination both nationally and internationally.  All aspects of
the route and trail concept will be designed, a package of
tourism products and a network of enterprises in the missions
area will be built to help promote this destination in South
America.

For this purpose, at least 180 stakeholders in the public and
private sectors will be incorporated to:

   -- the route/trail concept;

   -- 300 new and existing micro, small and medium-sized
      enterprises will participate in the program; and

   -- the awareness of at least 2,000 firms located in the area
      will be increased.

At least 40 public sector representatives will work on tourism
product development and 500 people will be trained in relevant
job skills.

The program will have two non-governmental executing agencies --
The Paraguayan Touring and Automobile Club will receive more
than a US$1 million in financing.  Fundacion Tierranuestra will
receive a US$795,000 grant.

MIF, an autonomous fund administered by the IDB, supports
private sector development in Latin America and the Caribbean,
focusing on microenterprise and small business.

                        *    *    *

Moody's assigned these ratings on Paraguay:

     -- CC LT Foreign Bank Deposit, Caa2
     -- CC LT Foreign Currency Debt, Caa1
     -- CC ST Foreign Bank Deposit, NP
     -- CC ST Foreign Currency Debt, NP
     -- LC Currency Issuer Rating, Caa1
     -- FC Currency Issuer Rating, Caa1
     -- Local Currency LT Debt, WR

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

     -- Foreign Currency LT Debt B-
     -- Local Currency LT Debt   B-
     -- Foreign Currency ST Debt C
     -- Local Currency ST Debt   C




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


* PERU: Will Ink Accord with Petroleo Brasileiro
------------------------------------------------
Peru will sign a memorandum of understanding with Petroleo
Brasileiro for Peruvian oil and gas drilling projects and
petrochemical plant construction, the Associated Press reports,
citing Peru's President Garcia.

President Garcia told AP that Petroleo Brasileiro's Peruvian
operations would never suffer a sudden nationalization similar
to what happened in Bolivia.

"I extend my hand to Petrobras (Petroleo Brasileiro) and give my
word that things won't change," President Garcia told reporters.

Brazil and Peru should boost bilateral energy and economic ties
even though the two countries are members of separate South
American economic blocs, AP notes, citing President Garcia.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA 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.

                        *    *    *

Fitch Ratings assigned these ratings on Peru:

                     Rating     Rating Date

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




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


INTERLINE BRANDS: Names CEO Michael Grebe as Board Chairman
-----------------------------------------------------------
Interline Brands, Inc., disclosed that Ernest Jacquet, Managing
Partner, Parthenon Capital, has resigned as Chairman of the
Board effective at the end of the year, but will continue to
serve on the Board as a Director and member of the Nominating &
Governance Committee.  At that time, Interline's President and
CEO, Michael J. Grebe, will take on the additional role of
Chairman.

As part of this transition, the Board has created the position
of lead independent director.  John J. (Jack) Gavin has served
as the Chairman of the company's Nominating & Governance
Committee since 2004, and will serve in this new role.

"We are deeply grateful for Ernest's service and invaluable
guidance as Chairman over the past two years, and the company is
very pleased that he plans to continue to actively serve on our
Board," said Mr. Grebe.  "Ernest's contributions to the
development of Interline Brands have been significant, and we
truly appreciate his leadership and support."

"Having just reported very strong results for our eighth quarter
as a public company, this is an appropriate time for me to step
down as Chairman so that I can personally focus additional time
on philanthropic pursuits that have become a significant part of
my life," said Mr. Jacquet.  "I have worked closely with Michael
and Jack for a combined 10 years and have every confidence in
their ability to lead the Company and the Board.  I look forward
to continuing to serve on the Board, and assisting Interline in
achieving its growth objectives in the years ahead."

Headquartered in Jacksonville, Florida, Interline Brands, Inc.
-- http://www.interlinebrands.com/-- is a leading national
distributor and direct marketer of maintenance, repair and
operations products to approximately 160,000 professional
contractors, facilities maintenance professionals, and specialty
distributors across North America and Puerto Rico.

                        *    *    *

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
confirmed its B1 Corporate Family Rating for Interline Brands
Inc., as well as its B3 rating on the company's $200 million
8.125% Senior Subordinate Notes due 2014.  Those debentures were
assigned an LGD5 rating suggesting noteholders will experience
an 82% loss in the event of default.

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

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   $100m Sr. Sec.
   Revolver Due
   2012                   Ba3      Ba2     LGD2        29%

   $100m Sr. Sec.
   Term Loan Due
   2013                   Ba3      Ba2     LGD2        29%

   $130m Sr. Sec.
   Delayed Draw
   Term Loan Due
   2013                   Ba3      Ba2     LGD2        29%


MUSICLAND HOLDING: Files 2nd Amended Joint Plan of Liquidation
--------------------------------------------------------------
Musicland Holding Corp. and its 14 debtor-affiliates delivered a
Second Amended Joint Plan of Liquidation and accompanying
Disclosure Statement, reflecting changes taken up at the
Oct. 12, 2006, Disclosure Statement hearing.

The Revised Plan documents were filed as an attachment to a
letter James A. Stempel, Esq., at Kirkland & Ellis, LLP, the
Debtors' counsel, sent to Judge Bernstein on Oct. 13, 2006.

The Plan contains immaterial modifications and reflects the
Court-approved Voting Record Date, Voting Deadline, Confirmation
Objection Deadline and Confirmation Hearing Date.

The Court previously approved the Revised Disclosure Statement
as containing adequate information pursuant to Section 1125 of
the Bankruptcy Code.

A blacklined copy of Musicland's Second Amended Joint Plan of
Liquidation is available for free at

               http://researcharchives.com/t/s?14e3

A blacklined copy of the Disclosure Statement explaining
Musicland's Second Amended Plan is available for free at:

               http://researcharchives.com/t/s?14e4

On Nov. 8, 2006, Musicland filed supplements to the 2nd
Amended Plan.

A. Administrative Budget

   Musicland proposed a budget as of November 1, 2006, to cover
   the period from January 2007 to 2008.

                       Musicland Holding Corp.
                       Administrative Budget
                            2007 to 2008

      Consulting (former employees)               US$85,000

      Professionals
         Kirkland & Ellis                          25,000
         Paul Weiss                               120,000
         BMC                                      215,000
         Walker Truesdell                         285,000
                                              -----------
                                                  645,000

      Other Fees/Costs
         US Trustee                                40,000
         Rent/Occupancy                             5,000
         Offsite Storage/Documents                 15,000
         Miscellaneous                             75,000
                                              -----------
                                                  135,000

      Taxes
         Withdrawal Fees                           15,000
         All other taxes                          120,000
                                              -----------
                                                  135,000

         Worst Case                            US$1,000,000
         Less: Adjustments for
               Best Case Reduction in Costs      (250,000)
                                              -----------
         Best Case                               US$750,000

      A full-text copy of Musicland's 2007-2008 Administrative
      Budget is available for free at:

        http://researcharchives.com/t/s?14e5

B. Post-Effective Date Agreement

   Musicland will enter into a Post-Effective Date Agreement
   with Hobart G. Truesdell to provide for the appointment of
   Mr. Truesdell as the Responsible Person, as the term is
   defined in the 2nd Amended Plan, and as the sole officer and
   sole director of Reorganized Musicland.

   The Responsible Person will cause Reorganized Musicland to
   pay all Allowed Claims in accordance with the terms and
   conditions of the Plan, the Post-Effective Date Agreement and
   orders of the Court.

   In his capacity as the Responsible Person, Mr. Truesdell
   will, among others:

      (a) invest the Debtors' Cash, including, but not limited
          to, the Cash held in the Reserves;

      (b) calculate and pay all distributions to be made under
          the Plan, the Agreement and other orders of the Court
          to holders of Allowed Administrative Claims, Allowed
          Priority Tax Claims, Allowed Other Priority Claims,
          Allowed Other Secured Claims, Allowed Secured Trade
          Claims and Allowed Unsecured Claims;

      (c) employ, supervise and reasonably compensate
          professionals retained to represent the interests,
          and serve on behalf, of Reorganized Musicland;
          provided, however, the Responsible Person will attempt
          to negotiate with his or her selected counsel the
          prosecution of Unsecured Transferred Actions on a
          contingency fee or reduced blended fee arrangement;

      (d) make and file tax returns for the Debtors or
          Reorganized Musicland;

      (e) object to Claims or Interests filed against the
          Debtors' Estate on any appropriate basis;

      (f) seek estimation of contingent or unliquidated claims
          under Section 502(c) of the Bankruptcy Code;

      (g) seek determination of tax liability under Section 505
          of the Bankruptcy Code;

      (h) except as provided under the Plan, prosecute avoidance
          actions under Sections 544, 545, 547, 548, 549 and 553
          of the Bankruptcy Code;

      (i) except as provided under the Plan, prosecute turnover
          actions under Sections 542 and 543;

      (j) except as provided under the Plan, prosecute any other
          Claims or Causes of Action of the Debtors or
          Reorganized Musicland;

      (k) dissolve Reorganized Musicland;

      (l) exercise all powers and rights, and take all actions,
          contemplated by the Agreement;

      (m) appoint and reasonably compensate any agents or
          representatives to carry out the duties of the
          Responsible Person; and

      (n) take any and all other actions necessary or
          appropriate to implement or consummate the Plan and
          the provisions of the Agreement.

   Mr. Truesdell will be entitled to receive as compensation for
   services performed in connection with the Agreement an hourly
   rate of US$300, plus reasonable, documented out-of-pocket
   expenses.  He will also be paid an incentive fee of 5% of
   amounts distributed to holders of Secured Trade Claims in
   excess of US$50,000,000.

   Mr. Truesdell will pay an 2% incentive fee of amounts
   distributed to holders of Secured Trade Claims in excess of
   US$42,000,000 to Craig G. Wassenaar and Vladmir Bogdanov for
   services rendered and to be rendered by them.

   In addition, other personnel of Walker, Truesdell, Radick &
   Associates made available by the Responsible Persion will be
   entitled to receive compensation at these hourly rates:

            Personnel                 Compensation
            ---------                 ------------
            Principals                    US$300
            Associates                    US$275
            Junior Associates             US$250
            Paraprofessionals             US$75

   The Agreement will terminate on the later of:

      (i) 30 days after the exhaustion of the assets of the
          Estate and Reorganized Musicland; and

     (ii) the filing of a certificate of termination with the
          Court.

   The Certificate will not be filed until all distributions
   required to be made pursuant to the Plan and the Agreement
   have been made.

   A full-text copy of Post-Effective Date Agreement with
   Truesdell is available for free at:

     http://researcharchives.com/t/s?14e6

C. Members of the Plan Committee

   The Plan provides that a Plan Committee will be formed
   consisting of two Persons designated by the Official
   Committee of Unsecured Creditors and two Persons designated
   by the Informal Committee of Secured Trade Vendors.

   As of Nov. 8, 2006, the Creditors Committee has designated
   Ron Tucker of Simon Property Group, LP, to serve on the Plan
   Committee.  The Informal Committee of Secured Trade Vendors
   has designated Nick DeLeonardis of UBS Willow Fund, LLC, to
   serve on the Plan Committee.

   The Committees will supplement the disclosure on or before
   the Confirmation Hearing.

D. Schedule of Avoidance Actions

   Musicland lists current and potential defendants to Avoidance
   Actions which have or may be commenced by Mr. Truesdell, on
   behalf of the Debtors, or the Plan Committee pursuant to the
   2nd Amended Plan.

   The Defendants received transfers totaling more than
   US$200,000, in the aggregate.

   A list of the Avoidance Action Defendants is available for
   free at http://researcharchives.com/t/s?14e7

E. Security Bond

   Pursuant to the terms of the Plan, Mr. Truesdell will obtain
   a US$5,000,000 bond to secure the funds to be disbursed under
   the Plan.

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 22; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


MUSICLAND HOLDING: Iowa Revenue Opposes Second Amended Plan
-----------------------------------------------------------
The Iowa Department of Revenue asserts that Musicland Holding
Corp. and its debtor-affiliates' 2nd Amended Plan of Liquidation
failed to comply with Section 1129(a)(9)(c) of the Bankruptcy
Code.

Section 1129(a)(9)(c) provides that priority tax claimants will
receive regular installment payments equal to the allowed amount
of their claim over a period ending not later than five years
after the date of the order for relief.  Present value is
achieved by adding an appropriate interest rate to any deferred
payment.

Iowa has filed proofs of claim for unpaid prepetition
corporation income taxes for US$328,586, including priority
claims under Section 507(a)(8)(A) of the Bankruptcy Code
totaling US$298,803, John Waters, Esq., in Des Moines, Iowa,
relates.

Mr. Waters argues that the Amended Plan fails to comply with
Section 1129(a)(9)(c) because it does not provide:

   -- an appropriate rate of interest; and

   -- any interest during the time between the effective date
      and allowance of the claim.

Pursuant to Section 421.7 of the Iowa Code and Iowa
Administrative Rule 701-10.2(25), the current statutory rate for
unpaid taxes is 8% per year.  Beginning Jan. 1, 2007, the Iowa
statutory rate will be increased to 10% per year.

Mr. Waters contends that the Plan must be amended to provide for
interest at the statutory rate in effect during the month when
the Plan is to be confirmed.

The Plan provides for options for the repayment of priority
creditors in cash, and in quarterly payments with interest from
the effective date until the claim is paid.  "Regardless of the
payment option selected by the Debtors, priority tax creditors
with unresolved claims will have their payments deferred but
will not receive the interest required by Section
1129(a)(9)(C)," Mr. Waters points out.

Iowa asks the U.S. Bankruptcy Court for the Southern District of
New York to deny confirmation of the Debtors' Plan.

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 22; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


NBTY INC: Third Quarter 2006 Net Income Up 230% to US$38MM
----------------------------------------------------------
NBTY, Inc. reported results for the fiscal fourth quarter and
fiscal year ended Sept. 30, 2006, and preliminary unaudited net
sales results for the month of October 2006.

For the fiscal fourth quarter ended Sept. 30, 2006, net sales
increased US$33 million, or 8%, to US$468 million compared with
net sales of US$435 million for the fiscal fourth quarter ended
Sept. 30, 2005.

Net income for the fiscal fourth quarter ended Sept. 30, 2006,
was US$38 million, or US$0.54 per diluted share, an increase of
230%, compared with US$11 million, or US$0.17 per diluted share,
for the fiscal fourth quarter ended Sept. 30, 2005.

The rise in net income for the fiscal fourth quarter resulted
from the aforementioned sales increase of US$33 million, an
improvement in gross profit, greater manufacturing efficiencies,
the continued profitability in the North American Retail
operations and a decrease in interest expense.

For the year ended Sept. 30, 2006, net sales increased US$143
million, or 8%, to US$1.9 billion, compared with net sales of
US$1.7 billion for the prior like period.  Net income for the
year ended Sept. 30, 2006 was US$112 million, or US$1.62 per
diluted share, an increase of 43% as compared with US$78
million, or US$1.13 per diluted share, for the year ended Sept.
30, 2005.  Included in the results for the year ended Sept. 30,
2006 and 2005 were non-cash charges, primarily asset and
goodwill impairment, of US$0.15 and US$0.14 per diluted share
respectively.  Without these non-cash charges, earnings per
diluted share for the year ended Sept. 30, 2006, and 2005 would
have been US$1.77 and US$1.27 respectively.  In fiscal 2006, the
company also benefited from the Homeland Investment Act's
treatment of the repatriation of foreign earnings, which allowed
the company to lower its effective tax rate from 35% to 27%.

At Sept. 30, 2006, NBTY had working capital of US$392 million
and total assets of US$1.3 billion.  During fiscal 2006, the
company decreased inventory by US$137 million while still
providing uninterrupted product supply to customers.

The company's strong cash flow in fiscal 2006 allowed for the
accelerated repayment of US$236 million of long-term debt.
Effective Nov. 3, 2006, the company put into place a US$325
million bank revolving credit agreement to provide funds, if
needed, for future growth.  Presently, there are no borrowings
under this agreement.

           Operations for the Fiscal Fourth
             Quarter Ended Sept. 30, 2006

Sales for the Wholesale/US Nutrition division, which markets
Nature's Bounty, Sundown and Solgar brands, increased US$21
million, or 10%, to US$217 million, from US$197 million for the
prior like quarter.

Product returns for the fiscal fourth quarter were US$8 million,
compared with US$11 million for the fiscal fourth quarter 2005.
Total product returns for the year ended Sept. 30, 2006 were
US$28 million, a 36% decrease as compared with US$44 million for
the previous year.

Gross margin in the Wholesale operation increased to 35%,
compared with 30% for the fiscal fourth quarter of 2005.  During
2005, gross margins were hampered by aggressive promotional
incentives, competitive pricing for the joint care category and
high prices paid for certain raw materials.  That year, the
company purchased raw materials that were in short supply.
Market prices for these raw materials decreased during fiscal
2006 as the supply shortage dissipated.

The US Nutrition/Wholesale division continues to utilize
valuable consumer preference sales data generated by the
company's Vitamin World retail stores and Puritan's Pride Direct
Response/E-Commerce operations to empower its wholesale
customers with this latest information.  The Vitamin World
stores are effectively used as a laboratory for new ideas and
have become a significant tool for determining and monitoring
consumer preferences.  This information, as well as scanned
sales data from the Vitamin World stores, is shared with NBTY's
wholesale customers.

The North American Retail operation continued to achieve
profitability in the fiscal fourth quarter 2006.  The division's
sales remained constant at US$56 million, even though there were
71 fewer stores.  Vitamin World closed a total of 75
underperforming stores and opened 9 new stores during fiscal
2006.  At the end of the fiscal fourth quarter, the North
American Retail division operated a total of 572 stores with 476
stores in the United States and 96 in Canada.  It is anticipated
that approximately 20 under-performing stores will be closed in
fiscal 2007.

Same store sales for Vitamin World increased 7% from the prior
like quarter.  These results reflect continued improvements in
the retail environment.

European Retail sales for the fiscal fourth quarter ended
Sept. 30, 2006, increased US$8 million or 6% to US$142 million
from US$134 million for the fiscal fourth quarter ended
Sept. 30, 2005.  In local currency, same store sales increased
3% from the prior like period.

The European Retail business continues to leverage its premier
status, high street locations and brand awareness. The European
Retail business is comprised of 498 Holland & Barrett and 32 GNC
stores in the UK, 19 Nature's Way stores in Ireland and 68
DeTuinen stores in the Netherlands.

During the fiscal fourth quarter ended Sept. 30, 2006, the
European Retail division opened 3 stores and closed 2 stores.
For the year ended Sept. 30, 2006, the European Retail operation
opened 11 stores and closed 6. A total of 617 stores were in
operation at Sept. 30, 2006.

Revenues from Direct Response/Puritan's Pride operations for the
fiscal fourth quarter of 2006 increased US$4 million or 9% from
the comparable like period.  The average order size increased to
US$73 from US$70. Online sales constituted 34% of total Direct
Response/E-Commerce sales. NBTY remains the leader in the direct
response and e-commerce sectors.

NBTY Chairman and CEO, Scott Rudolph, said, "We are pleased with
our results which lend further credence to our ability to drive
sales, increase profitability and enhance our dominant market
share position. We remain confident in the long-term outlook for
NBTY as we continue to strive to grow the business while
controlling costs and increasing long-term shareholder value."

Headquartered in Bohemia, New York, NBTY, Inc. (NYSE: NTY) --
http://www.NBTY.com/-- manufactures, markets and distributes
nutritional supplements in the United States and throughout the
world.  As of September 30, 2005, it operated 542 Vitamin World
and Nutrition Warehouse retail stores in the United States,
Guam, Puerto Rico, and the Virgin Islands.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 14, 2006,
Standard & Poor's Ratings Services raised its bank loan rating
for NBTY Inc., to 'BB+' from 'BB', and raised the recovery
rating to '1' from '2'.  At the same time, Standard & Poor's
revised its outlook to stable from negative and affirmed the
'BB' corporate credit rating and all other ratings on NBTY.

The '1' recovery rating indicates the expectation of a full
recovery of principal in the event of a default.  Approximately
US$227.4 million of total debt was outstanding at June 30, 2006.


SUNCOM WIRELESS: Selling Domestic Tower Assets to SBA Comms
-----------------------------------------------------------
SunCom Wireless Holdings, Inc., has agreed to sell 69 wireless
communications towers to SBA Towers II LLC, a wholly owned
subsidiary of SBA Communications, for US$18.0 million.  Subject
to customary closing conditions, the transaction is expected to
close in the first quarter of 2007.

The towers are located throughout SunCom's markets of North
Carolina, South Carolina, and eastern Tennessee.

As part of the sale agreement, SunCom and SBA will also sign at
closing 10-year site lease agreements for each of the 69 towers,
with four 5-year lease renewal options.

After giving effect to this transaction, SunCom will no longer
own any wireless communications towers in its continental U.S.
markets.  Upon closing, SunCom has agreed to prepay the first
four years' rent to SBA.

Media Capital Advisors, Inc., a West Chester, Pennsylvania-based
investment banking firm, represented SunCom in the transaction.

SBA currently owns or manages approximately 5,400 wireless
communications towers and other communications sites.

Based in Berwyn, Pennsylvania, SunCom Wireless Holdings Inc.
(NYSE: TPC) -- http://www.suncom.com/-- offers digital wireless
communications services to more than one million subscribers in
the southeastern United States, Puerto Rico and the U.S. Virgin
Islands.  SunCom is committed to delivering Truth in Wireless by
treating customers with respect, offering simple,
straightforward plans and by providing access to the largest GSM
network and the latest technology choices.

SunCom Wireless' balance sheet showed a stockholders' deficit of
US$378,099,000 at Sept. 30, 2006, compared with a deficit of
US$338,223,000 at June 30, 2006.




================================
S T  K I T T S  A N D  N E V I S
================================


DIGICEL: Investing US$100,000 in St. Kitts to Improve Coverage
--------------------------------------------------------------
Digicel Ltd., the fastest growing mobile telecommunications
provider in the Caribbean, recently strengthened its network
coverage at the St. Kitts Marriott Resort & the Royal Beach
Casino -- with an investment of US$100,000 in the state of the
art solution.

"The innovative design provides excellent GSM coverage
throughout the entire hotel compound including, the main lobby
area, the Royal Beach Casino, executive offices, and staff
service areas," Tony Hanley, chief technical officer for Digicel
commented.

"The unobtrusive solution implemented by Digicel has discretely
located antennas with no visible cabling and has been completed
without any impact on the hotel structure," Mr. Hanley added.

Digicel is the only GSM operator on St. Kitts that provides
coverage throughout the entire hotel and casino grounds.
Tourists and visitors to the hotel will enjoy full network
access with Digicel, making communication whilst traveling even
simpler.   Employees of the hotel and casino will enjoy
unrivaled coverage and a first class quality service throughout
the entire facility.

Kevin Edwards, Market Manager -- Digicel St. Kitts and Nevis
remarked, "The investment and upgrade of our network inside the
Hotel ensures an enhanced mobile experience for every visitor
and user of the St. Kitts Marriott Resort.  As we all know St.
Kitts and Nevis is shifting more focus to tourism as source of
economic growth; Digicel is committed to the Federation and see
this investment as a means of doing our part as a responsible
Corporate Citizen."

On hearing the news of this recent investment in the Federation,
State Minister in the Ministry of Finance, Sustainable
Development, Information and Technology, the Hon. Nigel Carty
said; "We are heartened by Digicel's continued commitment to
improving the quality of service that it delivers not just to
the residents of the Federation, but also the many visitors who
make St. Kitts their favorite vacation island, and a need to
have mobile tele-communication at their fingertips."

"This latest move by Digicel we consider to be one in the right
direction so that St. Kitts & Nevis can continue to build a
reputation for the highest quality service and experience for
those visitors and users of the St. Kitts Marriott Resort & the
Royal Beach Casino," Minister Carty continued.

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

The company is the lead sponsor of Caribbean sports teams
including the West Indies Cricket Team, Special Olympics teams
across the Caribbean and is the title sponsor of the Digicel
Caribbean Football Union Cup, which involves over 30 Caribbean
countries and is an important qualifier towards the CONCACAF
Gold Cup.

                        *    *    *

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

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




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


DELTA AIR: Launches New Nonstop Service to Trinidad & Tobago
-------------------------------------------------------------
Delta Air Lines Inc. has launched a new weekly nonstop service
between the airline's largest hub at Atlanta and Trinidad and
Tobago's Crown Point International Airport, effective on
Feb. 17, 2007.

The new flights complement Delta Air's recently disclosed
service between Atlanta and Port of Spain, Trinidad and Tobago
-- both new routes are subject to foreign government approval.

Bob Cortelyou, vice president of Delta Air, said, "Our
customers' response to Delta's rapid international expansion has
been overwhelming and we're pleased to continue adding
convenient nonstop service to the markets where our customers
most want to travel.  With the new routes Delta is adding this
winter, we will operate service to more than 20 destinations in
the Caribbean, making it even easier for customers to head to
sun-drenched islands."

The new flights build upon Delta Air's ongoing expansion into
Latin America and the Caribbean, where the airline has added
over 40 new routes.

Delta Air and the Delta Connection carriers offer customers
access to over 400 weekly flights to 48 destinations in Latin
America and the Caribbean.  From its global hub in Atlanta,
Delta Air will inaugurate in December service to new Caribbean
cities including:

          -- Port of Spain, Trinidad and Tobago;
          -- Pointe a Pitre, Guadeloupe;
          -- Puerto Plata, Dominican Republic; and
          -- Fort de France, Martinique.

To celebrate its ongoing international expansion, Delta Air is
offering a special low fare for travel to its newest Caribbean
destination.

Headquartered in Atlanta, Georgia, Delta Air Lines --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading US carrier across
the Atlantic, offering daily flights to 502 destinations in 88
countries on Delta, Song, Delta Shuttle, the Delta Connection
carriers and its worldwide partners.  The company and 18
affiliates filed for chapter 11 protection on Sept. 14, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-17923).  Marshall S. Huebner,
Esq., at Davis Polk & Wardwell, represents the Debtors in their
restructuring efforts.  Timothy R. Coleman at The Blackstone
Group L.P. provides the Debtors with financial advice.  Daniel
H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump
Strauss Hauer & Feld LLP, provide the Official Committee of
Unsecured Creditors with legal advice.  John McKenna, Jr., at
Houlihan Lokey Howard & Zukin Capital and James S. Feltman at
Mesirow Financial Consulting, LLC, serve as the Committee's
financial advisors.  As of June 30, 2005, the Company's balance
sheet showed US$21.5 billion in assets and US$28.5 billion in
liabilities.




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


PETROLEOS DE VENEZUELA: Eni Sues Over Halt of Dacion Operations
---------------------------------------------------------------
Eni, an Italian oil company, told El Universal that it has began
a legal arbitration process against the government of Venezuela,
after the latter terminated an operational accord between
Petroleos de Venezuela -- the state-run oil firm of Venezuela --
and Eni on the Dacion oilfield.

Eni told Reutes, "Eni has started today (Nov. 10) arbitration
processes against Venezuela at the International Center for
Settlement of Investment Disputes (Icsid)."

Petroleos de Venezuela confiscated in April the Dacion oilfield
from Eni, as the two firms failed to reach an agreement on the
latter's migration from operational accord to a joint venture
where the Venezuelan state would hold a majority stake, El
Universal reports.

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.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Nov. 3, 2006, Standard & Poor's Ratings Services revised the
CreditWatch implications on its 'B+' long-term foreign currency
corporate credit rating on Petroleos de Venezuela SA to positive
from developing.

The revision of the CreditWatch status on Petroleos de Venezuela
reflects S&P's expectations that downgrade risk has receded, and
the issuer credit rating will either be raised and equalized
with the rating on Petroleos de Venezuela's owner, the
Bolivarian Republic of Venezuela (BB-/Positive/B), or affirmed
at 'B+'.


* Bermuda Accountants Must Conform to Int'l Reporting Standards
---------------------------------------------------------------
Robin Holder, writing for The Royal Gazette, says the adoption
of International Financial Reporting Standards in Canada will
greatly affect reporting standards for Bermuda firms.

"International Financial Reporting Standards (IFRS) will replace
Canadian Generally Accepted Accounting Principles (GAAP) over
the next five years," Kevin Dancey, the new president and chief
executive officer of the Canadian Institute of Chartered
Accountants, was quoted by the Gazette as saying.

Mr. Dancey added that the industry is also introducing mandatory
professional liability insurance, mandatory continued
professional development and is improving the consistency of
disciplinary procedures, the Gazette relates.

The Gazette says a large number of Bermuda firms use Canadian
GAAP and a change in reporting standards will have direct effect
on reporting standards followed in Bermuda.

"Financial reporting and business is complicated and reporting
standards for the insurance industry is also complicated. Making
one global standard is big step to simplicity," ICAB Council
chairman Tom Conyers was quoted by the Gazette as saying.

According to Mr. Conyers, the growth of the reinsurance industry
in Bermuda means that public accounting firms are under a big
strain to meet the demand for qualified and trained resources to
comply with rules such as Sarbanes Oxley and how to evaluate
internal controls and report, the Gazette relates.

"There is a great career ahead for Bermudians entering this
profession on the Island and obtain training and experience as
good as anywhere else in the world," the Gazette reports, citing
Mr. Conyers.


* Cadwalader Names Special Counsel Across Practices and Offices
---------------------------------------------------------------
Cadwalader, Wickersham & Taft LLP, disclosed the promotion of 24
attorneys to the position of Special Counsel.

"Cadwalader has long recognized the need to develop and retain
its most valuable asset - our attorneys," Robert O. Link, Jr.,
Cadwalader's Chairman, states.  "The position of Special Counsel
supports this effort and provides recognition and incentive for
our experienced attorneys who have demonstrated excellent legal
and management skills and expertise in their area of practice.
Above and beyond that, these attorneys have worked very hard,
have excellent working relationships with clients, train and
mentor junior staff, and have made significant contributions to
our pro bono, diversity, recruiting and marketing efforts.  We
are very fortunate to have so many talented and deserving
lawyers to promote this year.  We congratulate them on their
achievements and look forward to their continued success with
us."

Aaron Benjamin, an attorney in the Capital Markets Department in
Charlotte, focuses on structured finance, derivative products,
other innovative limited-recourse lending transactions, secured
transaction law and the federal securities laws.  He received
his J.D. from the University of Toronto Law School and his
undergraduate degree, with high honors, from Carleton
University.  He is admitted to practice in the State of New
York.

Resident in the New York Litigation Department, Jeffrey S.
Burman concentrates in the resolution of reinsurance disputes,
including litigation, arbitration and mediation, and the
representation of insurers, reinsurers, banks, investment banks,
hedge funds, and private equity funds in insurance and
reinsurance based transactions.  He received his undergraduate
degree from the University of Delaware, and his law degree from
Rutgers University School of Law, where he was an editor of the
Rutgers Law Journal.  Following law school, he served as a
judicial clerk for The Honorable James M. Havey, Presiding Judge
of the Appellate Division of the Superior Court of New Jersey.
He is a member of the bars of the States of New York and New
Jersey and is admitted to practice before the United States
District Courts for the Southern District of New York and the
District of New Jersey.

Elizabeth Butler, based in the New York Litigation Department,
advises clients in a variety of areas of commercial law,
including banking, insurance and reinsurance, contracts,
antitrust, torts and fraud.  She graduated cum laude and Phi
Beta Kappa from the University of Minnesota and received her
J.D. from Northwestern University School of Law.  She is a
member of the New York State bar.

Anderson D. Caperton, resident in Charlotte, concentrates his
practice in the area of real estate finance and securitization.
A member of the Global Finance Department, he represents
national, international, and regional financial institutions,
investment banks, pension funds, and investors in connection
with the financing, acquisition, disposition and leasing of
commercial office buildings, regional shopping malls, shopping
centers, hotels, industrial warehouses, merchandise marts,
multifamily housing, and residential and planned unit
developments.  He received his undergraduate degree from
University of Virginia, and his J.D. from University of North
Carolina School of Law, where he was a member of the University
of North Carolina Law Review and the founder of the North
Carolina Banking Institute.  He is admitted to practice in
the State of North Carolina.

Holly Marcille Chamberlain, also in the Global Finance
Department in the Charlotte office, practices in the area of
real estate finance and securitization.  She represents
national, international, and regional financial institutions,
investment banks, pension funds, and investors in connection
with the financing, acquisition, disposition and leasing of
commercial office buildings, regional shopping malls, shopping
centers, hotels, industrial warehouses, merchandise marts,
multifamily housing, and residential and planned unit
developments.  She received her J.D. from New York Law School
and her B.A. from Binghamton University.  She is admitted to
practices in New York, North Carolina and Massachusetts.

Matthew Fenster focuses on litigation for a wide array of health
care organizations involving general commercial matters, complex
fraud, and health care reimbursement.  He earned a B.S.
from Cornell University and received his J.D. from New York
University School of Law, where he was an editor of the NYU
Journal of International Law & Politics.  He is admitted to
practice in the courts of the States of New York and New Jersey,
and before the United States Court of Appeals for the Second
Circuit and the United States District Courts for the Southern
and Eastern Districts of New York.

David Gingold, a member of the Capital Markets Department in New
York, is experienced in corporate and capital markets
transactions, including public and private debt and equity
offerings (including synthetic CDOs and securitizations), public
and private mergers and acquisitions, equity and credit
derivatives, and various types of structured financings.  He
received his J.D. from the University of Michigan Law School and
his B.A., with honors, from Williams College.  He is admitted to
practice in the State of New York.

Nathan Haynes, a restructuring attorney in New York, has played
significant roles in numerous chapter 11 cases, including
Northwest Airlines, Lodgian, Inc., Casual Male Corp. and
Bradlees Stores Inc.  He is experienced in commercial litigation
in state and federal bankruptcy court and with issues involving
debtor and creditor rights, the enforcement of contractual
obligations, loan work-outs, banking and insurance coverage.  He
is a magna cum laude graduate of Pace Law School, where he was
Editor-in-Chief of the Pace Law Review, and a cum laude graduate
of Northeastern University.  He is admitted in New York and
Massachusetts.

Resident in the Global Finance Department in New York, Gerard
Hefner represents institutional lenders in the real estate
finance area, including in the origination of commercial
mortgage loans and mezzanine loans secured by office buildings,
apartment complexes, shopping malls, hotels, healthcare
facilities and cell towers.  He received his law degree from St.
John's University School of Law, where he was a St. Thomas More
Scholar and Associate Editor of the St. John's University
Law Review.  He received his undergraduate degree, summa cum
laude, also from St. John' s University.  He is admitted to
practice in New York and the District of Columbia.

Richard Jensen, resident in the New York office, concentrates in
the area of asset securitization, with particular emphasis on
the securitization of prime, alt-A and sub-prime residential
mortgage loans.  Clients he regularly represents include major
mortgage, investment and commercial banks.  He received his
undergraduate degree from Villanova University and earned his
law degree from St. John's University School of Law.  He is
admitted to practice in New York.

Robert Kim, a New York capital markets lawyer, has developed
expertise in every aspect of the commercial mortgaged-backed
securities practice, including public and private CMBS
offerings, real estate CDO transactions and structured mortgage
and mezzanine loan participation transactions.  He received his
J.D. from Boston University School of Law and his A.B. from
Harvard University.  He is admitted to practice in the State of
New York.

A New York-based litigator, Stacey Lara concentrates in the
areas of complex commercial and securities litigation, and
antitrust related matters.  She received her undergraduate
degree from New York University and her J.D. from St. John's
University School of Law, where she also served on the Moot
Court Honor Society.  She is admitted to practice in New York
State and before the United States District Court for the
Southern District of New York.

Jeffrey Legault, a corporate lawyer in New York, represents
large corporate entities as well as global investment banks in
domestic and cross-border mergers and acquisitions, private
placements and joint ventures.  He received his undergraduate
degree from Queen's University in Kingston, Ontario, Canada and
his LL.B. from the Faculty of Law of the University of Toronto.
He is admitted in New York and Canada.

Ivan Loncar, an attorney in the Capital Markets Department in
New York, focuses his practice on fixed income and credit
derivatives and structured financial products.  He represents
dealers, banks and other financial institutions in connection
with interest rate, total return, and credit default swaps and
other structured financial products that combine securitization
techniques and derivative products.  He received his LL.B. from
University of Belgrade School of Law and his LL.M. from Columbia
University School of Law.  He is admitted to practice in the
State of New York.

Michael C. Macchiarola, resident in New York, concentrates his
practice on structured products transactions on behalf of
investment banks, domestic and foreign commercial banks ,
and large hedge funds.  He has experience with equity-linked and
hedge-fund linked products as well as derivatives, particularly
equity derivatives.  He also advises on prime brokerage and
stock loan matters.  He received his J.D. from New York
University School of Law, an M.B.A. from Columbia Business
School, and an A.B. from The College of The Holy Cross.  He is
licensed to practice in New York.

Geoffrey R. Maibohm, a Capital Markets attorney in Charlotte,
handles all aspects of commercial mortgage-backed securities
transactions, representing issuers, underwriters, servicers and
subservicers, as well as co-lenders and participants in loans.
He also has significant experience dealing with ongoing
servicing issues.  He graduated magna cum laude from the
Syracuse University College of Law, where he was a member of the
Law Review, and his B.A. from the State University of New York
at Geneseo.  He is admitted in North Carolina and New York.

Richard Nugent, an attorney in the Tax Department, is resident
in New York.  A transactional lawyer with significant expertise
in the tax aspects of public and private corporate mergers,
acquisitions, and spin-offs, he also has experience advising
clients on cross-border tax planning strategies, the tax
consequences of restructurings and bankruptcies, and financing
transactions.

He received his B.A., summa cum laude, from Saint Peter's
College, his J.D., with honors, from Rutgers School of Law, and
his LL.M., with distinction, from Georgetown University Law
Center.  Following law school, he clerked for The Honorable
Robert P. Ruwe of the United States Tax Court and The Honorable
Richard F. Suhrheinrich of the United States Court of Appeals
for the Sixth Circuit.  He is admitted in New York.

Matthew Robertson, resident in the Charlotte Global Finance
Department, represents national, international and regional
financial institutions, investment banks, and investors in
connection with the financing of a wide range of commercial
properties, including multi-state, multi-property mortgage loans
and large, sophisticated financings involving multiple lenders
and various levels of mortgage and mezzanine debt as well as the
sale and transfer of various types of commercial loans.  He
received his B.A., with honors, from the University of Delaware,
and his J.D. from Duke University School of Law.  He is admitted
in North Carolina.

Jason Salman, resident in London, has worked on a wide range of
corporate and restructuring matters throughout Europe and in
Australia, including mergers and acquisitions, reorganizations
and restructurings and general corporate governance and
regulatory matters.  He received his Bachelor of Economics
degree and Bachelor of Laws degree from Murdoch University in
Western Australia.  He is admitted to practice in England and
Wales and as a solicitor of the Supreme Court of Western
Australia.

Michelle R. Seltzer, a lawyer in the Business Fraud and Complex
Litigation Group in Cadwalader's Washington, D.C. office,
advises clients on a wide range of complex civil litigation
matters and on a variety of criminal and regulatory issues,
including Foreign Corrupt Practices Act, securities and other
white collar crime matters.  She received a B.A., with highest
honors, from the University of Texas at Austin, and a J.D. from
the Duke University School of Law.  Following law school, she
served as a clerk to United States District Court Judge John F.
Nangle in the Southern District of Georgia.  She is admitted to
practice in the District of Columbia and in Georgia.

Thomas Stimson, a member of the Business Fraud and Complex
Litigation Group, resident in Washington, represents
corporations and individuals in a wide variety of white collar
criminal, regulatory, and complex civil litigation matters,
including international corruption (arising under the Foreign
Corrupt Practices Act), money laundering, securities, antitrust
and intellectual property cases.  He also conducts internal
investigations and advises clients with regard to compliance and
corporate governance issues.  He received a B.A., with honors,
from Iowa State University, and a J.D. from the University of
Virginia, where he was a member of the Journal of Law &
Politics.  He is a member of the District of Columbia Bar and
the Virginia State Bar.

An attorney in Cadwalader's Capital Markets Department, Laura
Swihart concentrates in commercial mortgage-backed securities,
representing mortgage loan sellers, issuers and underwriters.
She received her J.D. from New York University School of Law and
her B.A., with honors, from the University of Connecticut.  She
is admitted to practice in the State of New York.

Jackson Taylor, a member of the Financial Restructuring practice
in London, advise creditors, insolvency practitioners, debtor
companies and directors on a range of contentious and
consensual insolvency processes as well as institutional
creditors and ad hoc creditors' committees on restructuring
financially distressed companies outside of formal insolvency
proceedings.  He graduated with double degrees, with honors,
from The University of Melbourne, where he also obtained a
Master of Laws degree.  He also holds a Certificate of
Proficiency in Insolvency from the UK Insolvency Practitioners
Association.  He is qualified as a barrister and solicitor.

Joshua R. Weiss, a New York-based litigator, has experience in
various areas of complex commercial litigation and arbitration,
including banking and finance, swaps and derivatives,
securities, contract, employment, trade secrets and unfair
competition, bankruptcy, copyright and trademark, and insurance
coverage litigation.  He also has been involved in numerous
international, multi-jurisdictional disputes.  He received his
undergraduate degree from The Johns Hopkins University, and his
J.D., cum laude, from The Benjamin N. Cardozo School of
Law, Yeshiva University.  He is admitted to practice in New York
State and before the United States District Courts for the
Southern and Eastern Districts of New York.

             About Cadwalader, Wickersham & Taft LLP

Cadwalader, Wickersham & Taft LLP -- http://www.cadwalader.com/
-- established in 1792, is one of the world's leading
international law firms, with offices in New York, London,
Charlotte, Washington and Beijing.  Cadwalader serves a diverse
client base, including many of the world's top financial
institutions, undertaking business in more than 50 countries in
six continents.  The firm offers legal expertise in antitrust,
banking, business fraud, corporate finance, corporate
governance, environmental, healthcare, insolvency, insurance and
reinsurance, litigation, mergers and acquisitions, private
client, private equity, real estate, securities and financial
institutions regulation, securitization, structured finance, and
tax.


* WB Says Developing Nations' Remittance Flows May Reach US$200B
----------------------------------------------------------------
The expanding magnitude and development impact of remittances
was highlighted in new data released by the World Bank as part
of the Nov. 13-14 Second International Conference on Migrant
Remittances at County Hall.

"Counting just recorded remittances sent home by migrants from
developing countries we anticipate a rise to US$199 billion in
2006, up from US$188 billion in 2005," explained Dilip Ratha,
Senior Economist in the Development Prospects Group of the World
Bank.

"Including unrecorded flows through formal and informal
channels, the true size of remittances is even larger, making
them the largest source of external financing in many developing
countries,"  Mr. Ratha continued.

According to the new World Bank brief on remittance trends,
worldwide flows of remittances, including those to high-income
countries, grew to an estimated US$268 billion in 2006.

In nominal dollar terms, Latin America and the Caribbean region
remains the largest recipient of (recorded) remittances.
However, as a share of gross domestic product, remittances are
highest in the Middle East and North Africa region.  Due to a
lack of data, remittance flows to Sub-Saharan Africa are grossly
underestimated.  Recorded remittance flows grew robustly in
virtually every region, although most quickly in Europe and
Central Asia and in East Asia and the Pacific.

The World Bank brief reports a doubling of recorded worldwide
remittances over the past five years, from US$132 billion in
2000 to an estimated US$268 million this year.  Mr. Ratha et al
speculate that this is a result of:

   -- increased scrutiny of flows since the terrorist attacks
      of September 2001;

   -- reduction in remittance costs and expanding networks in
      the remittance industry;

   -- the depreciation of the U.S. dollar (which raises the
      value of remittances denominated in other currencies); and

   -- growth in the migrant stock and incomes.


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

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