TCRLA_Public/061127.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Monday, November 27, 2006, Vol. 7, Issue 235

                          Headlines

A R G E N T I N A

CARLOS D: Deadline for Verification of Claims Is Feb. 19, 2007
CENTRAL PUERTO: Total Sells 63.9% Stake
CLINICA PRIVADA: Verification of Claims Is Until Dec. 20
COMITEE CENTER: Claims Verification Deadline Is Feb. 19, 2007
COMPANIA DE TRANSPORTE: Earns ARS3.9 Mil. in First Nine Months

COMPANIA DE TRANSPORTE: Launches Tender Offer for US$54MM Notes
COMPANIA DE INVERSIONES: S&P Places D Rating on US$20-Mil. Debts
HIDROELECTRICA PIEDRA: Total Sells 41.3% Stake
HORACIO S. DUMAS: Claims Verification Is Until Feb. 22, 2007
IRSA: Shareholders Okay US$200-Million Notes Issuance

RECRUITERS & TRAINERS: Asks for Court OK to Reorganize Business
SANCOR COOP: Adecoagro Acquiring 62.5% Stake for US$120 Million
TELEFONICA DE ARGENTINA: Investing ARS70MM for Patagonia in 2007

B A H A M A S

COMPLETE RETREATS: Increase in Patriot's Holdback Amount Okayed
WINN-DIXIE: Court Enters Findings & Conclusions on Joint Plan
WINN-DIXIE: Five Parties Appeal Confirmation in District Court
WINN-DIXIE: Registers 400 Million Shares of New Common Stock

B E R M U D A

CREATOR CAPITAL: Posts US$1,752,156 Working Capital Deficit
HATTERAS RE: May be Short of Covering Creditors Claims by US$7MM
SEA CONTAINERS: Court Okays Kirkland & Ellis as Special Counsel
SEA CONTAINERS: Court Okays Sidley Austin as Bankruptcy Counsel
SRO RUN-OFF: Discloses Termination of Scheme of Arrangement

B O L I V I A

INTERNATIONAL PAPER: Posts US$201 Mil. 2006 3rd Qtr. Net Income

* BOLIVIA: Government Will Restructure Yacimientos Petroliferos

B R A Z I L

AUTOCAM CORP: May Not Comply with Covenants on December 2006
AUTOCAM CORP: Restructuring Cues S&P to Junk Corp. Credit Rating
BANCO BRADESCO: S&P Changes BB+ Ratings' Outlook to Positive
BANCO DO BRASIL: S&P Changes BB Ratings' Outlook to Positive
BANCO CITIBANK: S&P Changes BB Ratings' Outlook to Positive

BANCO INDUSTRIAL: Demand for US$150-Million Bonds High
BANCO ITAU BBA: S&P Changes BB+ Ratings' Outlook to Positive
BANCO ITAU: S&P Changes BB+ Ratings' Outlook to Positive
BANCO NACIONAL: S&P Changes Credit Ratings' Outlook to Positive
BANCO NORDESTE: S&P Changes Creit Ratings' Outlook to Positive

BANCO SANTANDER: S&P Changes BB Ratings' Outlook to Positive
BANCO SCHAHIN: Raises US$50 Mil. Through Subordinated Debt Issue
BRASIL TELECOM: Acquires Telexis Brasil's Assets
COMPANHIA SIDERURGICA: Corus Acquisition Negative in Short Term
COMPANHIA SIDERURGICA: Says It Is Best Fit for Corus Group

DYNEA INT'L: Sells U.S. Operations to Teacher's Private
DYNEA INT'L: Unit Sale Cues S&P's Developing Watch on B Rating
LAZARD LTD: Selling 12 Million Shares of Class A Common Stock
PETROLEO BRASILEIRO: Expects 2 Mil. Barrels Daily Output in 2007
TAM SA: Receives Authorization to Fly to Italy

* BRAZIL: Rio de Janeiro Will Move Auction Date for Berj

C A Y M A N   I S L A N D S

ASHMORE ENERGY: Shareholders' Scheme Meeting Held on Nov. 21
BLACKROCK SENIOR: Calls Shareholders for Last Meeting on Nov. 30
CMULTI-STRATEGY: Final Shareholders Meeting Is Set for Nov. 30
CAPELLA FUND: Holding Final Shareholders Meeting on Nov. 30
CARLYLE HIGH: Invites Shareholders for Last Meeting on Nov. 30

CDO INVESTMENT: Calls Shareholders for Final Meeting on Nov. 30
CHANNEL ASSETS: Shareholders Convene for Last Meeting on Nov. 30
CHIYODA CREDIT: Shareholders to Have Final Meeting on Nov. 30
DRESDNER FUND: Final Shareholders Meeting Is on Nov. 30
DUESENBERG CSO 2001-3: Final Shareholders Meeting Is on Nov. 30

HSBC REPUBLICAN: Liquidator Presents Wind Up Accounts on Nov. 30
ICE SEA: Invites Shareholders for Final Meeting on Nov. 30
INTER FINANCIAL: Shareholders Gather for Last Meeting on Nov. 30
STAINLESS OVERSEAS: Last Shareholders Meeting Is Set for Nov. 30

C O S T A   R I C A

* COSTA RICA: Recope to Complete Ethanol Pilot Project
* COSTA RICA: World Banks Mulls US$13-Million Loan to Government

C U B A

* CUBA: Oil Experts Tag Oil Deal with Venezuela as Swindle

E C U A D O R

PETROECUADOR: Disclosing Marginal Fields Tender Winners Soon

E L   S A L V A D O R

MILLICOM INT: Moody's Ups Rating on US$550-Million Notes to B2

J A M A I C A

AIR JAMAICA: Government Continuing Financial Support to Airline
CALDON FINANCE: Nicole Ann Fullerton's J$6-Million Bail Extended
COURTS (JAMAICA): Cobalt Takeover Won't Affect Employees
SUGAR COMPANY: Names New Executives for Industrial Relations

M E X I C O

MOVIE GALLERY: Moody's Eyes Downgrade Due to 10-Q Filing Delay
PIER 1 IMPORTS: Sells Pier 1 National Bank to Chase for US$155MM
TV AZTECA: Shareholders Get US$495MM Accumulated Distributions

* BENITO JUAREZ: Moody's Releases Joint Default Analysis
* COALCALCO: Moody's Releases Joint Default Analysis
* COATZACOALCOS: Moody's Releases Joint Default Analysis
* CUAUTITLAN IZCALILI: Moody's Releases Joint Default Analysis
* MUNICIPALITY OF COLIMA: Moody's Issues Joint Default Analysis
* STATE OF CHIAPAS: Moody's Issues Joint Default Analysis

N I C A R A G U A

* NICARAGUA: Aims to Boost Listings on National Stock Exchange

* NICARAGUA: State Firm Mulling Offers for Two Power Projects

P A N A M A

GRUPO BANISTMO: HSBC's Offer Gets 99.85% Acceptance

P A R A G U A Y

MULTICANAL SA: Sees 70% Coverage in Asuncion by End of Next Year

* PARAGUAY: Inks Air Services Accord with United Arab Emirates

P E R U

* PERU: Regulator Orders Fixed Line Service Rates Reduction

P U E R T O   R I C O

MUSICLAND HOLDING: ACE Group & ESIS Balk at Disclosure Statement
MUSICLAND HOLDING: Voting Tabulation for Impaired Classes

T R I N I D A D   &   T O B A G O

BRITISH WEST: Union Says New Airline Employing 500 Workers

U R U G U A Y

* URUGUAY: Launches Web Portal to Group All State Web Sites

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Expenses Totaling US$64 Billion in 2007

* VENEZUELA: Oil Experts Reject Cuba Oil Deal as Swindle
* VENEZUELA: Officially Withdrawing from G-3 Trade Bloc
* TRUMP: The Saga of America's Most Powerful Real Estate Baron


                         - - - - -


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


CARLOS D: Deadline for Verification of Claims Is Feb. 19, 2007
--------------------------------------------------------------
Analia Calvo, the court-appointed trustee for Carlos D. Alesandro-Diego D.
Alesandro Sociedad de Hecho's bankruptcy proceeding, will verify creditors'
proofs of claim until
Feb. 19, 2007.

Under the Argentine bankruptcy law, Ms. Calvo is required to present the
validated claims in court as individual reports.  Court No. 11 in Buenos
Aires will determine if the verified claims are admissible, taking into
account the trustee's opinion and the objections and challenges raised by
Carlos D. and its creditors.

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

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

Carlos D. was forced into bankruptcy at the behest of Solutions SRL, which
it owes US$642.44

Clerk No. 22 assists the court in the proceeding.

The debtor can be reached at:

          Carlos D Alesandro-Diego D Alesandro Sociedad de Hecho
          Venezuela 1110
          Buenos Aires, Argentina

The trustee can be reached at:

          Analia Calvo
          Montevideo 589
          Buenos Aires, Argentina


CENTRAL PUERTO: Total Sells 63.9% Stake
---------------------------------------
French oil group Total SA said it has agreed to sell its power generation
interests in Argentina.

In a statement released Saturday, Total said the move will enable it to
focus on its exploration and production activities in the South American
country.

As part of the move, Total said it is selling its 63.9% stake in Central
Puerto SA, one of Argentina's biggest thermal power producers, and a 41.3%
holding in electricity company Hidroelectrica Piedra de Aguila.

The French company gave no further details on the transactions.

                        *    *    *

Central Puerto SA generates around 9% of Argentina's electricity
consumption.  It reported losses of ARS86,085,121 for the year
ended Dec. 31, 2005.  In 2004, the company registered losses of
ARS26.8 million.

In June 2006, Central Puerto reached an agreement with its creditors to
restructure its debts for US$412 million.  The total amount is comprised of
US$319.6 million in capital plus US$92.6 million in unpaid interests.


CLINICA PRIVADA: Verification of Claims Is Until Dec. 20
--------------------------------------------------------
Raul Alberto Ribotta, the court-appointed trustee for Clinica Privada de la
Familia SRL's bankruptcy proceeding, will verify creditors' proofs of claim
until Dec. 20, 2006.

Under the Argentine bankruptcy law, Mr. Ribotta is required to present the
validated claims in court as individual reports.  A court in Cordoba will
determine if the verified claims are admissible, taking into account the
trustee's opinion and the objections and challenges raised by Clinica
Privada and its creditors.

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

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

The debtor can be reached at:

          Clinica Privada de la Familia S.R.L.
          25 de Mayo 881 Ciudad de Cordoba
          Cordoba, Argentina

The trustee can be reached at:

          Raul Roberto Ribotta
          Rivera Indarte 350, Ciudad de Cordoba
          Cordoba, Argentina


COMITEE CENTER: Claims Verification Deadline Is Feb. 19, 2007
-------------------------------------------------------------
Hector Rodolfo Arzu, the court-appointed trustee for Comitee Center S.A.'s
bankruptcy case, will verify creditors' proofs of claim until Feb. 19, 2007.

Mr. Arzu will present the validated claims in court as individual reports on
Apr. 2, 2007.  A court in Buenos Aires will then determine if the verified
claims are admissible, taking into account the trustee's opinion and the
objections and challenges raised by Comitee Center 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 Comitee Center's accounting and
banking records will follow on May 15, 2007.

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

The trustee can be reached at:

          Hector Rodolfo Arzu
          Junin 55
          Buenos Aires, Argentina


COMPANIA DE TRANSPORTE: Earns ARS3.9 Mil. in First Nine Months
--------------------------------------------------------------
Compania de Transporte de Energia Electrica en Alta Tension earns ARS3.9
million during the first nine months of 2006, compared to a loss of ARS630.4
million from the same period in 2005.  The company has also reported that
between January and September, sales reached ARS323.1 million.

Compania de Transporte de Energia Electrica en Alta Tension --
http://www.transener.com.ar/menu_eng/index.htm-- is the leading company in
the extra high voltage electric power transmission system in the Argentine
Republic.  Transener owns national networks of extra high voltage electric
power transmission lines.

As reported on Nov. 24, 2006, Fitch Ratings upgraded Transener SA's national
scale rating to 'BBB+ (arg)' from 'BBB-(arg)'. In addition, Fitch assigned
these ratings to Transener:

   -- Long-term foreign currency Issuer Default Rating 'B';
   -- Long-term local currency Issuer Default Rating 'B';
   -- US$250 million proposed senior unsecured note offering
      'B/RR4'.


COMPANIA DE TRANSPORTE: Launches Tender Offer for US$54MM Notes
---------------------------------------------------------------
Argentine power transporter Compania de Transporte de Energia Electrica en
Alta Tension or Transener has launched an offer to amend the conditions of
part of its negotiable bonds and to buy back such notes, which amount to
US$54.25 million.

The aim of the amendments is to eliminate restrictive commitments and some
clauses related to the trust fund agreement that rules these notes.

After the restructuring of its defaulted debt in June 2005, the power
transporter issued several kinds of notes. Transener now expects to reduce
its indebtedness with the repurchase.

The latest results of the company show positive figures, so its managers
believe it is time to recover the bonds. Nevertheless, the idea is to cover
part of the repurchase with cash and obtain financing for the rest.

An assembly will take place on November 30 in order to discuss the buy-back.
At least 60% of bondholders will have to attend the meeting.

Compania de Transporte de Energia Electrica en Alta Tension --
http://www.transener.com.ar/menu_eng/index.htm-- is the leading company in
the extra high voltage electric power transmission system in the Argentine
Republic.  Transener owns national networks of extra high voltage electric
power transmission lines.

As reported on Nov. 24, 2006, Fitch Ratings upgraded Transener SA's national
scale rating to 'BBB+ (arg)' from 'BBB-(arg)'. In addition, Fitch assigned
these ratings to Transener:

   -- Long-term foreign currency Issuer Default Rating 'B';
   -- Long-term local currency Issuer Default Rating 'B';
   -- US$250 million proposed senior unsecured note offering
      'B/RR4'.


COMPANIA DE INVERSIONES: S&P Places D Rating on US$20-Mil. Debts
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned a D rating on Compania de
Inversiones de Energia S.A.'s Obligaciones Negociables for US$220,000,000.
The rating action was based on the company's balance sheet at Sept. 30,
2006.


HIDROELECTRICA PIEDRA: Total Sells 41.3% Stake
----------------------------------------------
French oil group Total SA said it has agreed to sell its power generation
interests in Argentina.

In a statement released Saturday, Total said the move will enable it to
focus on its exploration and production activities in the South American
country.

As part of the move, Total said it is selling its 63.9% stake in Central
Puerto SA, one of Argentina's biggest thermal power producers, and a 41.3%
holding in electricity company Hidroelectrica Piedra de Aguila.

The French company gave no further details on the transactions.

                        *    *    *

As reported on Aug. 2, 2006, Fitch Argentina Calificadora de
Riesgo SA rated BB- Hidroelectrica Piedra del Aguila S.A.'s
eight debts:

   -- Obligaciones Negociables Clase I for US$97,300,000,
      included under the program of US$300 million;

   -- Obligaciones Negociables Clase II for US$97,300,000
      included under the program of US$300 million;

   -- Obligaciones Negociables Serie A for US$64,500,000;

   -- Obligaciones Negociables Serie B for US$35,600,000;

   -- Clase III for US$62,500,000 included under the program of
      US$300 million;

   -- Obligaciones Negociables Serie C for US$39,300,000;

   -- Obligaciones Negociables Simples for US$300,000,000;

   -- Program of ONS for US$300 million; and

   -- Obligaciones Negociables Serie D for US$22,800,000.


HORACIO S. DUMAS: Claims Verification Is Until Feb. 22, 2007
------------------------------------------------------------
Carlos Wulff, the court-appointed trustee for Horacio S. Dumas SA's
bankruptcy proceeding, will verify creditors' proofs of claim until Feb. 22,
2007.

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

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

Mr. Wulff will also submit a general report that contains an audit of
Horacio S. Dumas' accounting and banking records.  The report submission
dates have not been disclosed.

Horacio S. Dumas was forced into bankruptcy at the request of Norma Pueyo de
Pezoa, its creditor.

Clerk No. 37 assists the court in the proceeding.

The debtor can be reached at:

          Horacio S. Dumas
          Santiago del Estero 158
          Buenos Aires, Argentina

The trustee can be reached at:

          Carlos Wulff
          Virrey del Pino 2354
          Buenos Aires, Argentina


IRSA: Shareholders Okay US$200-Million Notes Issuance
-----------------------------------------------------
IRSA aka Inversiones y Representaciones Sociedad Anonima's shareholders
approve an issuance of Obligaciones Negociables for up to US$200 million.

The notes will be simple, not convertible into shares and with
or without guarantee for third ones.

The maximum amount in circulation at any stage of the program
would be up to US$300,000,000 or its equivalent in any other
currency.

Created in 1943, Inversiones y Representaciones S.A. aka IRSA is
a leading company with activities in the business of offices,
commercial centers and hotels.  It is the only company in the
industry whose shares are listed on the Bolsa de Comercio de
Buenos Aires and The New York Stock Exchange.  Through its
subsidiaries, IRSA manages an expanding top portfolio of
shopping centers and office buildings, primarily in Buenos
Aires.  The company also develops residential subdivisions and
apartments (specializing in high-rises and loft- style
conversions) and owns three luxury hotels. Additionally, IRSA
owns a 11.8% stake in Banco Hipotecario, Argentina's largest
mortgage supplier in the country which shareholder's equity
amounted to ARS2,247.6 million.

                        *    *    *

Moody's assigned these ratings on IRSA on July 30, 2001:

   -- local currency issuer rating: B3; and
   -- foreign currency issuer rating: Caa1


RECRUITERS & TRAINERS: Asks for Court OK to Reorganize Business
---------------------------------------------------------------
Court No. 23 in Buenos Aires is studying the merits of Recruiter & Trainers
SA's petition to reorganize its business after it stopped paying its
obligations on May 9, 2006.

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

Clerk No. 45 assists the court in the case.

The debtor can be reached at:

         Recruiters & Trainers SA
         Suipacha 190
         Buenos Aires, Argentina


SANCOR COOP: Adecoagro Acquiring 62.5% Stake for US$120 Million
---------------------------------------------------------------
Adecoagro, a firm owned by Hungarian-American businessman George Soros, has
agreed to take a controlling stake in Argentine dairy cooperative SanCor.

The company has signed a letter of understanding, which gives it 90 days for
exclusive negotiations with SanCor.

After a US$120 million capital injection, Adecoagro will receive 62.5% of
the shares of a new company that will be composed of most of the cooperative
's assets and liabilities.  The cooperatives current owners will keep the
remnant 37.5% stake.

If the deal finally takes place, US$70 million will be used to pay off debt
and US$50 million will go to working capital.

SanCor started to look for a partner in mid September, after a long and
complex process.  By late 2003, the directors of the cooperative were
outlining the final details of the restructuring of bank loans for US$167
million.  They made the agreement public in June 2004: they would repay the
debt in eight years, with a two-year grace period.  During the first stage,
they would cancel interests and later on the principal.  However, the
scenario changed completely in 2005.  Export withholdings to the dairy
industry tripled -- from 5 to 15% -- and the government established price
agreements.  In May 2005, SanCor asked the banks to agree on a
"re-restructuring" of the debt.  It had realized that it would not be able
to meet the payments, because the withholdings and frozen prices had made it
lose around US$30 million.

Faced with an increase in the cost of milk, higher salaries and growing
inputs, the Trade Secretary Guillermo Moreno helped SanCor.  He asked banks
to grant SanCor a waiver.  The local banks agreed to Mr. Moreno's proposal,
but the International Financial Corporation refused to help and told SanCor
to look for a partner and make changes in its management.

The situation came to a dead-end in the end of September, when SanCor could
not meet a US$10 million interest and principal payment.  SanCor agreed on a
refinancing of the interest, but had to promise to banks it would find a
partner in order to pay the principal.

Very important companies were interested, but SanCor chose to partner with
Adecoagro, a firm founded in 2002 after the purchase of Perez Companc's
agribusiness assets.

Some business units will be left out of the deal, for example: special baby
milks and a slaughter house.  SanCor would be interested in selling the
Sancor Bebe line and the factory that manufactures these products.  The main
candidate would be Numininco, a Dutch firm, which specialized in this kind
of products.  SanCor intend to obtain US$50 million from this sale.

Headquartered in Santa Fe, Argentina, Sancor is a diary milk cooperative and
one of the largest milk processors and marketers in Argentina.  Annual
revenues for the fiscal year ended June 2006, are ARUS$1.4 billion.

As reported on Oct. 19, 2006, Moody's Investors Service downgraded the
ratings of Sancor to Ca from Caa3.  The National Scale ratings were
downgraded to D.ar from Caa3.ar.  Moody's said the outlook is stable.


TELEFONICA DE ARGENTINA: Investing ARS70MM for Patagonia in 2007
----------------------------------------------------------------
Telefonica de Argentina said in a statement that it will invest ARS70
million next year for the expansion of its infrastructure Patagonia in
southern Argentina.

Business News Americas relates that the investment will be mainly allocated
for the expansion of networks in provinces:

          -- Chubut,
          -- Santa Cruz, and
          -- Tierra del Fuego.

Juan Waehner, Telefonica de Argentina chief executive officer, told
BNamericas that the planned investment for 2007 was 20% higher compared with
investments in the area this year.

BNamericas states that Telefonica de Argentina will invest ARS15 million to
deploy a 470-kilometer fiber optic network from Rio Gallegos in Santa Cruz
to Puerto Natales in Chile.

The network will provide coverage to cities El Calafate and Rio Turbio in
Patagonia, BNamericas reports.

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

                        *    *    *

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




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


COMPLETE RETREATS: Increase in Patriot's Holdback Amount Okayed
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Connecticut authorized
Complete Retreats LLC and its debtor-affiliates to further amend their
debtor-in-possession financing agreement with Ableco Finance LLC, with
regards to The Patriot Group LLC's holdback amount.

Accordingly, the Debtors and Patriot agree to these amendments in the Ableco
DIP Agreement:

   (1) The holdback, or the portion of the prepetition amount
       owed to Patriot as to which repayment will be deferred,
       will be increased from US$2,000,000 to US$3,500,000;

   (2) Patriot will be entitled to a Holdback Exit Fee equal to
       the difference between US$875,000 and the interest
       accruing on the Holdback from the date of the Ableco DIP
       Facility Closing through the date of payment of the
       Holdback.

       If any portion of the Holdback is repaid to Patriot by
       the Debtors on or before November 30, 2006, the Holdback
       Exit will be reduced by an amount equal to 20% of the
       principal portion of the Early Holdback Repayment for a
       maximum US$700,000 potential reduction in the Holdback
       Exit Fee; and

   (3) Subject only to the Carve-out, no fees or expenses of any
       professionals retained by the Debtors or the Official
       Committee of Unsecured Creditors will be paid until the
       Holdback, its interest, and the Holdback Exit Fee have
       been paid in full.

"The additional liquidity afforded by these proposed
modifications to the [Ableco DIP Order] will allow [the Debtors]
to finish their review of investor or purchaser proposals and to
facilitate and consummate their prompt exit from bankruptcy," Jeffrey K.
Daman, Esq., at Dechert LLP, in Hartford, Connecticut, says.

"If the Ableco DIP Financing Facility were consummated without
these modifications, which Ableco Finance, LLC, has not been
willing to do in any event, [the Debtors] would not be able to
fund their operations, including payroll, in the short run and
may not be able to continue as a going concern for more than a
few weeks," Mr. Daman adds.

Mr. Daman points out that the proposed changes are consistent
with the terms of the Ableco DIP Order, which provides that "the
Holdback shall be amended to mean US$2,000,000 or such greater
amount as may agreed to by Patriot."

              Debtors File Updated Cash Flow Forecast

In connection with their proposed amendment to the Ableco DIP
Order, the Debtors delivered to the Court a 10-week budget ending Dec. 29,
2006.

A full-text copy of the 10-Week Budget is available for free at:

      http://bankrupt.com/misc/T&H_Ableco_10wkbudget.pdf

                Previous Ableco DIP Pact Amendment

The Debtors previously obtained Court authority to amend its
DIP Agreement with Ableco.

Pursuant to that previous amendment, Ableco agreed to lend the Debtors an
additional US$2,000,000 so that the Ableco DIP Financing Facility would now
provide up to a total loan of US$82,000,000.  Ableco also agreed to reduce
certain required reserves on availability by approximately US$4,000,000.

In exchange for the additional liquidity, the Debtors agreed to
modify the Ableco DIP Facility so that US$5,000,000 of the DIP loan would
have a higher interest rate than the remaining portion.

The Honorable Alan H.W. Shiff authorized the Debtors to:

   -- incur postpetition indebtedness up to an aggregate
      principal amount of US$82,000,000;

   -- pay interest with respect to a US$5,000,000 portion of the
      Ableco DIP Facility term loan portion at a rate of 20% per
      annum;

   -- amend the definition of the term "Borrowing Base" and the
      release of certain reserves to provide the Debtors with
      approximately US$4,000,000 of incremental liquidity; and

   -- amend the definition of "Holdback" to mean US$2,000,000 or
      a greater amount as may be agreed to by Patriot.

In addition, the Court permitted Ableco, in its sole discretion,
to advance funds or other extensions of credit in excess of any
Budget, Budget Amount, Material Deviation formulae, or other
terms and conditions, provided that the principal amount of thoseadvances
will not exceed US$82,000,000.

The Court, as reported in the Troubled Company Reporter on
Nov. 1, 2006, authorized the Debtors to borrow up to US$80,000,000 from
Ableco as administrative and collateral agent, and certain other lenders, on
a final basis.

A full-text copy of the Final DIP Order on the Ableco DIP
Financing Facility is available for free at:

                http://researcharchives.com/t/s?143f

                  About Complete Retreats

Headquartered in Westport, Connecticut, Complete Retreats LLC operates
five-star hospitality and real estate management businesses.  In addition to
its mainline destination club business, the Debtor also operates an air
travel program for destination club members, a villa business, luxury car
rental services, wine sales services, fine art sales program, and other
amenity programs for members.

Complete Retreats and its debtor-affiliates filed for chapter 11 protection
on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245).  Nicholas H. Mancuso,
Esq. and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in
their restructuring efforts.  Michael J. Reilly, Esq., at Bingham McCutchen
LP, in Hartford, Connecticut, serves as counsel to the Official Committee of
Unsecured Creditors.  No estimated assets have been listed in the Debtors'
schedules, however, the Debtors disclosed US$308,000,000 in total debts.
(Complete Retreats Bankruptcy News, Issue No. 15; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).


WINN-DIXIE: Court Enters Findings & Conclusions on Joint Plan
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida entered on Nov.
16, 2006, its Findings of Fact and Conclusions of Law from the Honorable
Jerry A. Funk with respect to the confirmation of Winn-Dixie Stores Inc. and
its debtor-affiliates' Joint Plan of Reorganization.

Judge Funk explains why it overruled the seven groups of objections to the
confirmation of the Debtors' Joint Plan:

(1) Objecting Landlords

The Objecting Landlords argued that the Court cannot confirm the
Debtors' Plan because the provisions regarding Class 13-Landlord
Claims cause the Plan to be inconsistent with Section 1123(a)(4)
of the Bankruptcy Code.  The Court disagrees with the Objecting
Landlords.

The Court believes the argument proffered by the Objecting
Landlords is a valid argument, but the weight of the evidence
adduced in the record frustrates the Court's ability to agree
with the Objecting Landlords.

The Court rules that the Objecting Landlords are not receiving
unequal treatment under the Plan because they and the landlords
without guarantees had to give up something in exchange for their share.

Judge Funk says it was the Objecting Landlords' burden to prove
to the Court that they were receiving disparate treatment in
violation of Section 1123(a)(4), and the Objecting Landlords
simply failed to meet the burden.

While the Court is pleased with the Objecting Landlords'
ingenuity, unfortunately, Judge Funk says the Court cannot modify the Plan
without evidence of an inequity.  The Court duly noted the Objecting
Landlords' well-placed arguments but based upon the record as a whole, the
Court cannot agree with their assertions and has overruled their objections,
Judge Funk adds.

(2) IRS

The U.S. Internal Revenue Service objected to the treatment of
its general unsecured claim, specifically, its non-compensatory
damages claims, which was placed in Class 20 and receives no
distribution under the Plan.  The Court holds that the Debtors
have provided adequate justification for the allegedly disparate
treatment.

The Court notes that in a Chapter 7 liquidation the IRS would
probably receive the same distribution in Class 20, given the
going-concern value of the Debtors.  As a result, the Court
overrules the objection of the IRS to the differing treatment of
general unsecured claims.

The Court also overrules the IRS' objection to the effective date of the
Debtors' Plan.  Contrary to the IRS' contention, the Court rules that the
conditions set in the Plan concerning the
effective date are adequately definite and many of them have
already been completed.

However, to assuage the IRS' fears that the effective date is too tenuous
and capable of manipulation by the parties, the Court reserves jurisdiction
to impose an effective date.  Thus, the IRS or any other party-in-interest
may file an appropriate motion to impose the effective date if the parties
dawdle.

(3) Insurance Proceeds Proceeding

Bundy New Orleans Co. LLC alleged that the Debtors have absconded with the
insurance proceeds relating to an insurance claim with respect to a
Winn-Dixie store in New Orleans, Louisiana.  Bundy holds a Class 13-Landlord
Claim and an administrative claim against the Debtors.

Objecting under numerous theories, Bundy essentially claimed that the
Debtors' use of the allegedly absconded insurance proceeds is in violation
of Section 1129(a)(1) and (a)(2) of the Bankruptcy Code because neither the
Plan nor the Debtors complies with the applicable provisions of the
Bankruptcy Code.

Bundy also objected on other grounds, but the objections were
immaterial because the Court overruled Bundy's objections.
Without deciding the merits of the underlying adversary
proceeding, Judge Funk says there is ample liquidity to pay Bundy without
affecting feasibility.

Because of the liquidity, if Bundy is victorious in the
underlying adversary proceeding, it will be in a position to
receive all of its allegedly absconded insurance proceeds from
the Debtors.  Thus, all of Bundy's objections are inapposite and
accordingly overruled, Judge Funk declares.

(4) Class 10 Claims

Although the Plan is silent as to the interest rate for Class 10-Secured Tax
Claims, the Debtors propose to pay 7% interest on the claims based on the
approximate amount they will pay their exit financing lender.

The Objecting Class 10 Claimants assert that their claims should
be paid at their respective statutory rates ranging from 10% to
18%, and that the Debtors' proposal to pay anything less violates Section
1129(b)(2).

The Court notes that other than requesting it to take judicial
notice of the statutory rates, the Objecting Class 10 Claimants
presented no evidence as to the appropriate interest rate.

The existence of an efficient market in the Debtors' case coupled with the
Objecting Class 10 Claimants' senior lien position and the consequent low
risk of non-payment leads the Court to conclude that the appropriate
interest rate in providing for deferred payments to the Class 10 Claimants
is 7%.

(5) FTC

The Florida Tax Collectors objected to the Debtors' Plan on
numerous constitutional grounds, including sovereign immunity
defenses, subject matter jurisdiction pursuant to the 10th
Amendment, violations of the Full Faith and Credit Clause, as
well as state law arguments.

Judge Funk holds that the FTC Objections are relevant to the
FTC's other requests to the Court but are not relevant to the
confirmation of the Plan.  The Court has taken the constitutional issues
under advisement, and the Court will separately enter findings of fact and
conclusions of law in due course.

The FTC also objected to the Plan Confirmation under Sections
1129(a)(9)(A) and 1129(a)(1), asserting that the 2006
postpetition ad valorem property taxes must be treated as an
administrative expense and paid in cash on the Effective Date.

The issue was neither addressed at the Confirmation Hearing nor
in the Debtors' Reply to the FTC's Supplemental Memorandum of
Law.  The FTC also raised other objections based on various
provisions of Section 1129.

With respect to the FTC's objections to the Plan being confirmed, all
objections except the issue of whether the 2006 ad valorem property taxes
must be classified as an administrative expense were overruled.

(6) U.S. Trustee

The U.S. Trustee objected to provisions of the Plan providing for the (i)
payment by the Debtors of certain professional fees and expense of the
members of the official committees; (ii) payment by the Debtors of certain
professional fees and expenses of Wilmington Trust Company as the Indenture
Trustee; and (iii) non-Debtor releases.

Based on the testimony at the Confirmation Hearing, Judge Funk
rules that the professionals involved made a substantial
contribution to the Debtors' Chapter 11 cases, thus allowance of
their fees is appropriate.  However, the Court will require the
professionals who seek payment of fees and expenses to file fee
applications.

The Court sustains the U.S. Trustee's objection to the Indenture
Trustee Expenses and directs the Indenture Trustee to file an
expense application.  According to Judge Funk, the Court finds it
ill-advised and is unwilling to sign a blank check for the
Indenture Trustee Expenses.

The Court overrules the U.S. Trustee's objection to the non-
Debtor releases.  Judge Funk explains that the releases under the Plan are
fair and equitable and in the best interests of the
Debtors' estates, and the exculpation clause is appropriate in
light of the significant contributions made to the case by the
beneficiaries of the exculpation clause.

(7) Shareholders

The Court overrules the objections by the shareholders because of the
absolute priority rule, the Plan does not discriminate
unfairly among Classes 18 to 21, and no class or interests junior to these
classes will receive any property on account of their claims or interests.

A full-text copy of the Court's 38-page Findings of Fact
and Conclusions of Law is available free of charge at
http://ResearchArchives.com/t/s?159f

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 60; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


WINN-DIXIE: Five Parties Appeal Confirmation in District Court
--------------------------------------------------------------
Pursuant to 28 U.S.C. Section 158(a) and Rule 8001(a) of the
Federal Rules of Bankruptcy Procedure, various creditors will
take an appeal to the U.S. District Court for the Middle District of Florida
from the Bankruptcy Court's order dated
Nov. 9, 2006, confirming Winn-Dixie Stores Inc. and its debtor-affiliates'
Joint Plan of Reorganization.

The Appellants are:

   (1) Florida Tax Collectors;

   (2) CWCapital Asset Management LLC;

   (3) Liquidity Solutions, Inc.;

   (4) Objecting Landlords, namely E&A Financing II LP, E&A
       Southeast LP, Shields Plaza Inc., Woodberry Plaza (E&A)
       LLC, Villa Rica Retail Properties LLC, Halpern
       Enterprises, and Bank of America as Trustee of Betty
       Holland; and

   (5) ORIX Capital Markets LLC.

CWCapital and ORIX Capital will also take an appeal from Judge
Funk's Findings of Fact and Conclusions of Law dated
Nov. 16, 2006.

The FTC, Liquidity Solutions and E&A Financing filed separate
notices of appeal on Nov. 17, 2006.

The FTC is represented in the Debtors' cases by Brian T. Hanlon,
Esq., of the Office of the Tax Collector in West Palm Beach,
Florida.

Liquidity Solutions is represented by Harley E. Riedel, Esq., and Elena P.
Ketchum, Esq., at Stichter, Riedel, Blain & Prosser, P.A., in Tampa,
Florida.

Kimberly H. Israel, Esq., and Adam N. Frisch, Esq., at Held &
Israel, in Jacksonville, Florida, represent E&A Financing, et al.

CWCapital and ORIX Capital filed separate notices of appeal on
November 20, 2006.  Richard R. Thames, Esq., at Stutsman Thames & Markey
P.A., in Jacksonville, Florida, represents both parties.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 60; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


WINN-DIXIE: Registers 400 Million Shares of New Common Stock
------------------------------------------------------------
Winn-Dixie Stores Inc. filed a Form 8-A12B with the Securities and Exchange
Commission to register up to an aggregate of 400,000,000 shares of common
stock, with a par value of US$0.001 per share, under Section 12(b) of the
Securities Exchange Act of 1934, as amended.

Winn-Dixie's New Common Stock is being issued pursuant to the
Plan, and following the filing of the company's Amended and
Restated Articles of Incorporation with the State of Florida.

The company is subject to certain anti-takeover provisions that
apply to public corporations under Florida law.  Pursuant to
Section 607.0901 of the Florida Business Corporation Act, a
publicly held Florida corporation may not engage in a broad range of
business combinations or other extraordinary corporate
transactions with an "interested shareholder" without the
approval of the holders of two-thirds of the voting shares of the
corporation.  An "interested shareholder" is defined as a person who
together with affiliates and associates beneficially owns more than 10% of a
corporation's outstanding voting shares.

Winn-Dixie is also subject to Section 607.0902 of the Florida Act, which
prohibits the voting of shares in a publicly held Florida corporation that
are acquired in a "control share acquisition" unless the holders of a
majority of the corporation's voting shares -- exclusive of shares owned by
officers of the corporation, employee directors or the acquiring party --
approve the granting of the voting rights as to the shares acquired in the
"control share acquisition."  A control share acquisition is defined as an
acquisition that immediately thereafter entitles the acquiring party to 20%
or more of the total voting power in an election of directors.

The statutory provisions may prevent takeover attempts that might result in
a premium over the market price of the company's common shares.

A full-text copy of Winn-Dixie's registration statement is
available for free at http://ResearchArchives.com/t/s?159c

A full-text copy of Winn-Dixie's Amended and Restated
Articles of Incorporation is available for free at
http://ResearchArchives.com/t/s?159d

A full-text copy of Winn-Dixie's Amended and Restated By-Laws is
available for free at http://ResearchArchives.com/t/s?159e

                 Distribution Record Dates

Holders of Allowed Claims other than holders of Noteholder Claims were
entitled to receive distributions under the Plan on Nov. 15, 2006.

Holders of Allowed Noteholder Claims will be entitled to receive
distributions by Jan. 5, 2007.

The Reorganized Debtors, the Disbursing Agent, the Indenture
Trustee, and each of their agents, successors and assigns will
have no obligation to recognize any transfer of claims occurring
after the applicable Distribution Record Date and will be
entitled instead to recognize and deal for all purposes with only those
record holders stated on the claims registers or transfer ledgers as of the
close of business on the applicable
Distribution Record Date.

The number of shares of New Common Stock to be issued under the
Plan for distribution to the holders of Allowed Unsecured Claims
and to the Common Stock Reserve -- on account of holders of
Disputed Unsecured Claims -- on the initial Distribution Date,
will be 54,000,000 shares.  As provided for in the Plan, the
distribution shares are subject to dilution by grants of shares
or options under the New Equity Incentive Plan.

The initial Distribution Date for Allowed Unsecured Claims will
be no later than Jan. 5, 2007, unless otherwise ordered by the
Court.  The initial Distribution Date has not yet been
established.

As of the Confirmation Date, no holder of an Unsecured Claim is
receiving a recovery that is valued to exceed 100% of the
holder's Allowed Claim based on any change in the Debtors'
reorganization value as estimated in the Disclosure Statement
resulting solely from:

   (1) a decrease in the amount of Administrative Claims,
       Priority Claims, Priority Tax Claims, and Secured Claims
       as determined on the Confirmation Date; or

   (2) an increase in the amount of cash available to the
       Debtors to satisfy the Claims as determined on the
       Confirmation Date.

Therefore, there will be no redistribution of New Common Stock
from any holder to another holder of an Unsecured Claim.

                        Vacant Seat

As previously reported, the Debtors have identified nine
individuals to serve as members of their new board of directors.
However, Ronald E. Elmquist, the president and CEO of Qualserve
Corp. since 2005 and a director of Radio Shack Corp.,
subsequently withdrew his name from consideration for the New
Board.

Cynthia C. Jackson, Esq., at Smith Hulsey & Busey, in
Jacksonville, Florida, tells the Court that Mr. Elmquist's
replacement has not yet been identified, thus one of the
positions on the New Board will be vacant on the Effective Date
of the Debtors' Joint Plan of Reorganization and will be filled
by the New Board, in accordance with the New Winn-Dixie By-laws.

Peter L. Lynch, Evelyn V. Follit, Charles P. Garcia, Jeffrey C.
Girard, Yvonne R. Jackson, Gregory P. Josefowicz, Terry Peets,
and Richard E. Rivera will serve on the New Board as of the
Effective Date.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 60; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).




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


CREATOR CAPITAL: Posts US$1,752,156 Working Capital Deficit
-----------------------------------------------------------
Creator Capital Ltd. reported a US$1,752,156 working capital deficit at
Sept. 30, 2006.  The accruing preferred share dividends payable contributed
substantially to this deficit.

Creator Capital posted an accumulated deficit of US$68,159,588 in the first
nine months of 2006, compared with the US$67,809,637 recorded in the first
nine months of 2005, and the US$67,976,327 in the period ended Dec. 31,
2005.

Creator Capital had negative cash flow from operations during the nine
months ended Sept. 30, 2006.  It has been sufficient to provide the
necessary funds for marketing, for continued development of the company's
products but not adequate to fund payment of the company's dividend
obligations on outstanding preference shares.  Creator Capital negotiated a
restructuring and reduction of certain amounts owed to two of its largest
creditors and to a best effort deferred payment plan on these obligations.
One of creditors has now entered bankruptcy proceedings.

Due to the operating losses of the past years, Creator Capital's continuance
as a going concern is dependent upon its ability to obtain adequate
financing and to reach profitable levels of operation.  It is not possible
to predict whether financing efforts will be successful or if the company
will attain profitable levels of operations in its current business
activities.

At Sept. 30 2006, Creator Capital had not yet achieved profitable
operations.  It accumulated losses of US$68,159,588 since its inception.
Creator Capital, with a US$1,752,156 working capital deficiency, expects to
incur further losses in the development of its business, all of which casts
substantial doubt about the company's ability to continue as a going
concern.  The company's ability to continue as a going concern is dependent
upon its ability to generate future profitable operations and to obtain the
necessary financing to meet its obligations and repay its liabilities
arising from normal business operations when they come due.  Management has
no formal plan in place to address this concern but considers that the
Creator Capital will be able to obtain additional funds by equity financing
and/or related party advances, however there is no assurance of additional
funding being available.

Long-lived assets and intangibles held and used by Creator Capital are
reviewed for possible impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable.  If
changes in circumstances indicate that the carrying amount of an asset that
an entity expects to hold and use may not be recoverable, future cash flows
expected to result from the use of the asset and its disposition must be
estimated.  If the undiscounted value of the future cash flows is less than
the carrying amount of the asset, impairment is recognized.

The Class A preference shares are non-voting and are convertible at any time
into common shares at the option of the holder. Dividends on the Class A
preference shares are cumulative and payable quarterly at an annual dividend
rate of 9%.  The company, at its option, may redeem the Class A preference
shares, in whole or in part, at any time and from time to time, at a
redemption price of US$1,000 per share plus any accrued and unpaid dividends
thereon.  The company is not required to redeem the Class A preference
shares.

Creator Capital exchanged in 1997 a promissory note in the amount of
US$2,737,000 for 2,737 Class A preference shares at US$1,000 per share.  In
1998, the company redeemed 500 of the Class A preference shares at their
redemption price of US$1,000 per share.  As of Dec. 31, 2005, and 2004,
2,237 Class A Preference Stock remained outstanding.

Dividends on the Class A preference shares for the years ended Dec. 31,
2005, 2004 and 2003 were US$201,370, US$201,370, and US$201,370,
respectively.  They remain unpaid and are in arrears.

In 1997, Creator Capital issued Series A and Series B Class B convertible
preference shares which are convertible into common shares of the company.
Dividends are cumulative and may be paid, at the option of the company and
with prior notice, in additional common shares at an annual dividend rate of
8%.  As of Dec. 31, 2002, all Series A and Series B Class B convertible
preference shares as well as cumulative dividends related thereto have been
converted into common shares.

On April 30, 1997, Creator Capital entered into a Consulting Agreement,
whereby the Company issued 586,077 common shares as consideration for
consulting services.  During March 2001, the consulting informed the company
that consulting services were not provided and offered to annul the
Consulting Agreement and return the shares to the company for cancellation.
Creator Capital accepted this offer and the common shares are to be returned
to Treasury.

At Dec. 31, 2005, about 3,525,000 common shares were held in escrow by the
Creator Capital's transfer agent.  The escrow agreement relating to these
shares expired in a prior year.  On Feb. 13, 2006, these shares were
returned to Treasury.

By agreements dated March 7, 2006, Creator Capital issued 484,000 common
shares at US$0.25 to settle accounts payable of US$121,000 (US$100,769
included in accounts payable at
Dec. 31, 2005) and 299,328 common shares at US$0.25 to settle dividends
payable outstanding at Dec. 31, 2005, of US$74,832.

A total of 950,000 share purchase options were outstanding at the beginning
of 2006.

Exercise prices for stock options outstanding at Dec. 31, 2005, and 2004
ranged from US$0.14 to US$4.13.  The weighted average exercise price is
US$0.50 per share.  The weighted average remaining life of the outstanding
stock options is approximately two years.

By agreements dated March 6, 2006, Creator Capital granted 13,700,000 share
purchase options to directors, officers and consultants of the company and
of ETV entitling the holders thereof the right to purchase one common share
of the company at exercise prices ranging from US$0.25 to US$2.00 per share.
These share purchase options vest between 2006 and 2008 and expire on March
6, 2011.

As of Sept. 30, 2006, 3,900,000 of the 13,700,000 shares purchase options
granted on March 6, 2006, had been cancelled.

During the quarter ended Sept. 30, 2006, Creator Capital incurred US$32,348
in consulting fees and expense reimbursements.

Included in the quarter end's accounts payable is US$17,813 due to a company
controlled by the chairperson of Creator Capital.  The amounts due to this
related party represent unpaid consulting fees and expense reimbursements.
During the six months, US$56,410 was assigned to an unrelated company and
subsequently settled pursuant to a debt settlement agreement.

During the nine months ended Sept. 30, 2006, two customers accounted for
89.79% and 10.21% respectively of total sales.  During the period ended
Sept. 30, 2005, the same two customers accounted for 55.17% and 44.83%
respectively of total sales. During the period ended June 30, 2004, four
customers accounted for 39.39%, 00.66%, 28.45% and 31.50% respectively of
total sales.

Investing and financing activities that do not have a direct impact on
current cash flows are excluded from the statements of cash flows.  During
the year ended Dec. 31, 2003, Creator Capital acquired the Chinese Lottery
License for US$115,030, which was paid in the year ended Dec. 31, 2002,
pursuant to an amended investment agreement with Trade Watch.  This
transaction has been excluded from the statements of cash flows.

By a share purchase agreement dated March 6, 2006, Creator Capital acquired
all of the outstanding common shares of ETV Channels on Demand, Inc., a
Panama company, in exchange for 50,000,000 earn-out common shares of the
Creator Capital and one share purchase warrant entitling the holder to
acquire 1,000,000 common shares of the company at US$1.00 per share from
Aug. 15, 2006 to Feb. 15, 2008.  These securities are to be issued on an
earn-out basis as to one share and a proportionate amount of warrants for
each US$1.00 of gross revenues realized through the ETV business.  This
transaction has been included in the Balance Sheet as Goodwill in the amount
of US$7,000,000.   The market value of CCL's common shares as at date of
acquisition was US$0.14.  As a result, the Long Term Debt is US$7,000.000.

A finder's fee of 2,500,000 common shares to be earned-out based upon the
same formula as the acquisition securities are also to be issued.  ETV's
business is in the delivery of interactive video to customers.  Also with
respect to this transaction, the Company intends to increase its authorized
common shares from 100,000,000 to 200,000,000.

During the year ended Dec. 31, 2003, Creator Capital acquired a license to
operate one of two major soccer betting lottery locations in Guangzhou City,
Guangdong Province, People's Republic of China.  The license was recorded at
cost.  During the year ended Dec. 31, 2004, the company abandoned the
license and reduced the carrying value to Nil.

Under Canadian GAAP, effective for fiscal years beginning on or after Jan.
1, 2002, all public companies were required to adopt recommendations of the
Canadian Institute of Chartered Accountants regarding the accounting for
Canadian stock-based compensation.  Under these requirements, all
stock-based payments to non-employees and direct awards of stock to
employees need to be accounted for using the fair value based method of
accounting.  However, the new standard allowed Creator Capital to continue
its existing policy of not recording compensation cost on the grant of stock
options to employees with the addition of pro forma information.  For fiscal
periods prior to Dec. 31, 2002, under US GAAP, the company used the
intrinsic value method as described in APB 25, "Accounting for Stocks Issued
to Employees", to recognize compensation cost on options granted to
directors and employees.  Under this method, the difference between the
market price of the stock on the date of the grant and the exercise price of
the stock options is expensed as compensation cost over the period from the
date of the grant to the date the option is first exercisable.  For options
issued to consultants, Creator Capital adopted the fair value method of
accounting for stock-based compensation.  This requires the option be valued
on the date of grant using the Black-Sholes option pricing method as
prescribed by FAS 123.   Under Canadian GAAP, prior to Jan. 1, 2002, Creator
Capital did not record this stock-based compensation.  As no share purchase
transfers have been granted after Jan. 1, 2002, there is no effect on the
financial statements due to the difference in this policy.

Revenue consists of fees generated from the licensing of the Sky Play PC
based amusement games to the Airline Industry.  Airline clients install the
games on their inflight entertainment systems as part of the inflight
entertainment offered to passengers.  Operations revenue for the nine months
ended
Sept. 30, 2006, was US$40,095 compared to US$65,250 for 2005.

General and administrative expense was US$81,759 in the 2005 period and
US$104,672 in the 2006 period.  Consulting and contract labor expenses
remained at US$39,500 for both periods.  The Legal expense for the first
nine months of 2006 was US$5,559 and US$2,338 for the 2005 period.
Depreciation and amortization expenses was US$7,526 for the 2005 period and
US$7,374 for 2006.  The Expense Recovery of US$38,204 is comprised of two
amounts.  The return of the old escrowed shares to Treasury is reflected
with a charge of US$35,250.  The over-accrual of the
Dec. 31, 2005's audit cost was allocated to this account,

The Investment Recovery pertains to an Investment in Property in Arizona,
USA, over a decade ago.  The auditors of the time deemed the Investment
unrecoverable, non-current, and wrote it off.  During the period, the net
proceeds of the Property's sale were received.

Marketing expense incurred during the first nine months of 2006 was US$494.
None was recorded for 2005.

The net Loss before preferred stock dividends was US$32,647 for the nine
months ended Sept. 30, 2005, compared to a net loss of US$54,462 for the
nine months ended Sept. 30, 2004.

As at the end of September 2006, Creator Capital owed US$17,813 to a
director related entity, of which US$33,348 was incurred during the period.
The amount includes accumulated outstanding expense reimbursements for
various office supplies, services, and computer related costs.  The balance
is included within the accounts payable and accrued liabilities accounts.
About US$56,410 was assigned to an unrelated company and subsequently
settled pursuant to a debt settlement agreement.

By agreements dated March 6, 2006, Creator Capital granted 13,700,000 share
purchase options to directors, officers and consultants of the company and
of ETV entitling the holders thereof the right to purchase one common share
of the company at exercise prices ranging from US$0.25 to US$2.00 per share.
These share purchase options vest between 2006 and 2008 and expire on March
6, 2011.

During the quarter ended September 2006, Creator Capital's Transfer Agent,
Computershare Investor Services Inc., notified the company.  They pointed
out the Escrow Agreement contains a provision for expiry of the Escrowed
Common Shares resulting in the cancellation of said shares.  They stated the
expiry date had come to pass.  These share were returned to Treasury during
the Period.

Creator Capital Ltd. is a Bermuda exempted company, which in June 1997,
changed its name from Sky Games International Ltd. to Interactive
Entertainment Ltd. and on Sept. 27, 2000, changed its name to Creator
Capital.  The company is publicly listed on the Pink Sheets.  The company is
engaged in providing in-flight gaming and entertainment software and
services by developing, implementing and operating or licensing computerized
video gaming and other entertainment software on, but is not limited to the
aircraft of international commercial air carriers.  Gaming software is
marketed using the name Sky Games and the entertainment software is marketed
using the name Sky Play.  Creator Capital expanded its focus in the
entertainment industry by acquiring a subsidiary whose business is the
development and delivery of interactive video entertainment via the
Internet.  Creator Capital was incorporated pursuant to the laws of the
Province of British Columbia on Jan. 28, 1981, under the name Tu-Tahl Petro
Inc.  The company was reincorporated through the continuance of its
corporate existence from the Province of British Columbia to the Yukon
Territory on July 15, 1992.  On Jan. 23, 1995, the company changed its name
to Sky Games International Ltd.  Effective Feb. 22, 1995, the company
continued its corporate existence from the Yukon Territory to Bermuda as an
exempted company under the Companies' Act 1981.


HATTERAS RE: May be Short of Covering Creditors Claims by US$7MM
----------------------------------------------------------------
Hatteras Reinsurance Ltd.'s unsecured creditors may not be fully paid due to
the company's shortfall on funds by about US$7 million or more, Business
Insurance reports.

According to the same report, Hatteras' liquidators -- KPMG Financial
Advisory Services Ltd. in Bermuda -- filed in the U.S. Bankruptcy Court in
the Southern District of New York, a statement that the company's US$152
million investment in the Pamlico Enhanced Cash Trust, its Delaware unit and
largest reported asset, may be worthless.

The filing also claims that an alleged audit opinion from Deloitte & Touche
was included in Hatteras' 2005 financial statement that the accounting firm
denied having ever issued.

According to Business Insurance, Hatteras was declared defunct after
Bermudan regulators moved in earlier this year to liquidate its business.
The regulators discovered another false Deloitte & Touche audit opinion
included in the Pamlico unit.

KPMG filed in the report that the reinsurance clients were able to extract
from trust accounts that were established to pay their claims.  These
accounts were, however, not considered assets of the reinsurance company.

Companies that have done business with Hatteras include:

   -- Armark Corp., which has US$151.8 million in trusts
      accounts that covered two workers company programs;

   -- Electronic Data Systems Corp., which has a US$2.6 million
      account;

   -- a unit of Intercontinental Hotels PLC of Windsor, England,
      which has a US$4.0 million in one account.

These companies are protected by the trust accounts that secure the
reinsurer's obligations.

KPMG is trying to retrieve potential assets of Hatteras.  The liquidators is
considering the US$13 million worth of stocks in The Nottingham Management
Co., that the reinsurance company has reportedly received from owner Frank
P. Meadows III, as initial capital.  Nottingham Management is a privately
held Rocky Mount company controlled by Mr. Meadows.

However, according to Business Insurance, Peter Anderson of Sutherland,
Asbill & Brennan in Atlanta, Mr. Meadows' lawyer, confirmed his client's
statement that the stock was never actually transferred as the reinsurer's
initial capital, nullifying Hatteras' unaudited financial statement that it
is an asset of the estate.

A copy of a June E-mail that Mr. Meadows wrote was filed in court by the
liquidators.  The E-mail claimed that the reinsurer's auditors had banned
the stock to be used as an acceptable form of statutory capital.

Business Insurance continues that KPMG asked the bankruptcy court to order
any sale of the Nottingham shares to be blocked until a definite ownership
is established.

The debtor can be reached at:

          Hatteras Reinsurance Ltd.
          Clarendon House, 2 Church Street,
          Hamilton, HM11, Bermuda

The liquidators can be reached at:

          Michael Morrison
          Charles Thresh
          KPMG Financial Advisory Services Limited
          Crown House, 4 Par la Ville Road
          Hamilton, Bermuda

Frank P. Meadows III's counsel can be reached at:

          Peter J. Anderson
          Sutherland Asbill & Brennan LLP
          999 Peachtree Street, N.E.
          Atlanta, Georgia 30309-3996
          (DeKalb & Fulton Cos.)
          Tel: 404-853-8000
          Fax: 404-853-8806

Hatteras Reinsurance Ltd. is registered in Bermuda as a workers compensation
reinsurer incorporated on July 19, 2004, and licensed as a Class 3
reinsurer.  The company's foreign representatives, Mike Morrison and Charles
Thresh, filed for a Chapter 15 petition on June 8, 2006, at the U.S.
Bankruptcy Court for the Southern District of New York.  Kenneth P. Coleman,
Esq., and Stephen Doody, Esq., at Allen & Overy LLP represent the foreign
representatives.


SEA CONTAINERS: Court Okays Kirkland & Ellis as Special Counsel
---------------------------------------------------------------
Sea Containers and its debtor-affiliates obtained permission from the U.S.
Bankruptcy Court for the District of Delaware to employ Kirkland & Ellis LLP
as their special conflicts litigation counsel for litigation relating to GE
SeaCO SRL, nunc pro tunc to Oct. 15, 2006.

As reported in the Troubled Company Reporter on Nov. 17, 2006, Edwin S.
Hetherington, vice president, general counsel and secretary of Sea
Containers Ltd., explains that the Debtors want Kirkland to prosecute or
defend litigation or contested matters involving GE Capital Corporation and
some of its subsidiaries concerning GE SeaCo and other matters adverse to
GE.

Mr. Hetherington notes that the Debtors' general reorganization
and bankruptcy counsel, Sidley Austin LLP, represents GE in
matters wholly unrelated to the Debtors and their Chapter 11
cases.

Because Sidley also represents the Debtors in connection with all
operational and substantive aspects of the Chapter 11
proceedings, including with respect to issues raised by GE, the
Debtors want Kirkland to serve as their special conflicts
litigation counsel to the limited extent that underlying
litigation or certain contested matters are commenced by GE or
the Debtors during the pendency of the Chapter 11 proceedings.

                    About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 5; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


SEA CONTAINERS: Court Okays Sidley Austin as Bankruptcy Counsel
---------------------------------------------------------------
Sea Containers and its debtor-affiliates obtained authority from the U.S.
Bankruptcy Court for the District of Delaware to employ Sidley Austin LLP as
their general reorganization and bankruptcy counsel, nunc pro tunc to Oct.
15, 2006.

As reported in the Troubled Company Reporter on Nov. 16, 2006, Sidley Austin
is expected to:

   (a) provide legal advice with respect to the Debtors' powers
       and duties as debtors-in-possession in the continued
       operation of their businesses;

   (b) take all necessary action on the Debtors' behalf to
       protect and preserve the Debtors' estates, including
       prosecuting actions on the Debtors' behalf, negotiating
       any and all litigation in which the Debtors are involved,
       and objecting to claims filed against the Debtors'
       estates;

   (c) prepare, on the Debtors' behalf, all necessary motions,
       answers, orders, reports, and other legal papers in
       connection with the administration of the Debtors'
       estates;

   (d) attend meetings and negotiate with representatives of
       creditors and other parties-in-interest, attend court
       hearings, and advise the Debtors on the conduct of their
       Chapter 11 cases;

   (e) perform any and all other legal services for the Debtors
       in connection with their Chapter 11 cases and with the
       formulation and implementation of the Debtors' plan of
       reorganization;

   (f) advise and assist the Debtors regarding all aspects of
       the plan confirmation process, including, but not limited
       to, securing the approval of a disclosure statement,
       soliciting votes in support of plan confirmation, and
       securing confirmation of the plan;

   (g) provide legal advice and representation with respect to
       various obligations of the Debtors and their directors
       and officers;

   (h) provide legal advice and perform legal services with
       respect to matters involving the negotiation of the terms
       and the issuance of corporate securities, matters
       relating to corporate governance and interpretation,
       application or amendment of the Debtors' corporate
       documents, including their certificates or articles of
       incorporation, bylaws, material contracts, and matters
       involving the fiduciary duties of the Debtors and their
       officers and directors;

   (i) provide legal advice and legal services to directors and
       officers, including former directors and officers, of the
       Debtors with respect to the class action securities
       litigation;

   (j) provide legal advice and legal services with respect to
       litigation, tax and other general non-bankruptcy legal
       issues for the Debtors to the extent requested by the
       Debtors; and

   (k) render other services, as agreed upon by Sidley and the
       Debtors.

                   About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 5; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


SRO RUN-OFF: Discloses Termination of Scheme of Arrangement
-----------------------------------------------------------
The Scheme of Arrangement between SRO Run-Off Ltd. and its Scheme Creditors,
which became effective on April 21, 2006, has been fully implemented in
accordance with its terms.

Under the provisions of Clause 8 of the Scheme, it is terminated 14 days
after the last dispatch of the checks and banker's drafts or telegraphic
transfers to Scheme Creditors.

The final payment to Scheme Creditors was dispatched on
Aug. 23, 2006, and the date of the Scheme termination was on Sept. 6, 2006.

SRO Run-Off, in respect of the Scheme Claims, will make no further payments
to Scheme Creditors.

Questions may be directed to:

          Cambridge Integrated Services Group Inc.
          1234 Market Street, Suite 1815
          Philadelphia, PA 19107, USA




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


INTERNATIONAL PAPER: Posts US$201 Mil. 2006 3rd Qtr. Net Income
---------------------------------------------------------------
International Paper Company earned US$201 million of net income on US$5.8
billion of net revenues for the three months ended
Sept. 30, 2006, compared to US$1 billion of net income on
US$5.9 billion of net revenues for the same period in 2005.

At Sept. 30, 2006, the Company's balance sheet showed US$24.6 billion in
total assets and US$18.8 billion in total liabilities.

A full-text copy of the Company's quarterly report is available for free at
http://researcharchives.com/t/s?1597

On Oct. 25, 2006, the Company amended its existing receivables
securitization program that provided up to US$1.2 billion of commercial
paper-based financings with a facility fee of 0.20% and an expiration date
in November 2007, to provide up to US$1 billion of available commercial
paper-based financings with a facility fee of 0.10% and an expiration date
in October 2009.

                         Acquisition

On Oct. 30, 2006, the Company completed its previously announced sale of
approximately 900,000 acres of forestlands in Louisiana, Texas and Arkansas
to an investor group led by TimberStar, a subsidiary of iStar Financial Inc.
The purchase price for this transaction was approximately US$1.13 billion,
approximately US$330 million was paid in cash and US$800 million in
promissory notes.

In addition, the Company, on Nov. 3, 2006, completed its previously
announced sale of approximately 4.2 million acres of forestlands located
across the southern U.S. and Michigan to an investor group led by Resource
Management Service, LLC.  The purchase price is approximately US$4.96
billion, approximately
US$1.04 billion was paid in cash and US$3.92 billion in promissory notes.

                 About International Paper

Based in Stamford, Connecticut, International Paper Company (NYSE: IP) --
http://www.internationalpaper.com/-- is in the forest products industry for
more than 100 years.  The company is currently transforming its operations
to focus on its global
uncoated papers and packaging businesses, which operate and serve customers
in the U.S., Europe, South America and Asia.  Its South American operations
include, among others, facilities
in Argentina, Brazil, Bolivia, and Venezuela.  These businesses are
complemented by an extensive North American merchant distribution system.
International Paper is committed to environmental, economic and social
sustainability, and has a long-standing policy of using no wood from
endangered forests.

                        *    *    *

Moody's Investors Service assigned a Ba1 senior subordinate rating and Ba2
Preferred Stock rating on International Paper Company on Dec. 5, 2005.


* BOLIVIA: Government Will Restructure Yacimientos Petroliferos
---------------------------------------------------------------
Juan Carlos Ortiz -- president of Yacimientos Petroliferos Fiscales
Bolivianos, the state-run oil company of Bolivia -- told Agencia Boliviana
de Informacion that the government will restructure the firm to make it
efficient, agile and transparent.

The government plans Yacimientos Petroliferos to have an executive
president, a chief executive officer, a board and seven national managers.
The strategy is to make the company socially controlled, Business News
Americas relates, citing Mr. Ortiz.

BNamericas underscores that the hydrocarbons minister would preside over the
board, which would be comprised of:

          -- a representative from each of the hydrocarbons-
             producing departments, and

          -- one representative each from the:

             * national defense ministry,
             * hydrocarbons ministry,
             * development planning ministry, and
             * presidential ministry.

According to BNamericas, the seven national managers would supervise:

          -- exploration and production,
          -- transport and storage,
          -- refining,
          -- industrialization and petrochemicals,
          -- distribution,
          -- business and investments, and
          -- legal and administrative issues.

Conape, the government's economic policy committee, is analyzing the
restructuring project, which will be passed to Congress in the next few
days, Agencia Boliviana states.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


AUTOCAM CORP: May Not Comply with Covenants on December 2006
------------------------------------------------------------
Autocam Corp. disclosed in a regulatory filing with the U.S. Securities and
Exchange Commission that based on its current projections, it might be
unable to comply with the financial covenants set in its senior credit
facilities and second lien credit facility as of Dec. 31, 2006.

The Company however said that it was in compliance with the covenants as of
Sept. 30, 2006.  The Company's senior credit facilities and second lien
credit facility's financial covenants are tested at each calendar
quarter-end.

                     Credit Facilities

As of Sept. 30, 2006, the Company says that it borrowed
US$23.1 million under its revolving credit facilities to fund liquidity
needs as cash generated from operations was insufficient to meet the
Company's requirements.  As of
Sept. 30, 2006, the Company had US$17.3 million remaining under its
revolving credit facilities and its senior credit facilities permits the
Company to factor without recourse an additional US$9.5 million of trade
receivables.

Subsequent to Sept. 30, 2006, the Company discloses that it borrowed US$15.8
million of funds available under the revolving credit facilities, and as of
Nov. 13, 2006, had cash holdings of US$13.1 million.  The Company says that
since it only had
US$1.2 million remaining in its revolving credit facilities as of Nov. 13,
2006, the Company's short-term liquidity needs must be met primarily from
cash on hand and cash generated from operations.  The Company relates that
these sources could be insufficient to meet its debt service and day-to-day
operating expenses during the fourth quarter.

The Company discloses that the interest payments on its senior subordinated
notes are due Dec. 15, 2006, while interest payments on its senior credit
facility and second lien credit facility are due Dec. 29, 2006.

Failure to make these payments within the applicable 30-day grace period in
the case of the senior subordinated notes and the applicable five-day grace
period under the senior credit facilities and second lien credit facility,
the Company says, would constitute events of default under these notes and
credit facilities.

                           Options

The Company discloses that in order to improve its near-term liquidity, it
is exploring a variety of options, which include:

    * reducing investment in working capital;
    * selling idle equipment; and
    * securing other sources of capital for its operations.

The Company further discloses that it intends to engage in discussion with
its senior and second lien lenders to seek further amendments to its senior
credit facilities and second lien credit facility to provide for covenant
relief.  It also intends to engage in restructuring discussion with holders
of the Company's senior subordinated notes.

The Company says it cannot assure that the discussions with its lenders will
be successful.  If the Company is not successful, then upon an event of
default, the senior and second lien lenders will have the ability to
exercise all of their rights, including requiring the amounts outstanding
under the senior credit facilities and the second lien credit facility to
become due and payable.

Headquartered in Kentwood, Michigan, Autocam Corp. --
http://www.autocam.com/-- is a wholly owned subsidiary of Titan Holdings,
Inc.  Autocam manufactures extremely close tolerance precision-machined,
metal alloy components, sub-assemblies and assemblies, primarily for
performance and safety critical automotive applications.  The Company
provides these products from its facilities in North America, Europe, Brazil
in South America and Asia to some of the world's largest suppliers to the
automotive industry. These suppliers include Autoliv, Delphi Corporation,
Robert Bosch GmbH, Siemens VDO, TRW Automotive, Inc. and ZF Friedrichshafen
AG.


AUTOCAM CORP: Restructuring Cues S&P to Junk Corp. Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit rating on
Kentwood, Michigan-based Autocam to 'CC' from 'CCC+' and placed the ratings
on CreditWatch with negative implications.

Standard & Poor's also lowered its ratings on the company's senior secured
bank facilities to 'CC' from 'CCC+' and the senior subordinated notes to 'C'
from 'CCC-'.

These actions came after Autocam's statements, in its recent
10-Q filing with the SEC, that it may be unable to meet its
Dec. 15, 2006, interest payment on its US$140 million senior subordinated
notes, that it is engaged in restructuring discussions with holders of its
senior subordinated notes regarding a possible equity swap, that it does not
expect to be in compliance with financial covenants on its senior credit
facilities and second-lien credit facility as of Dec. 31, 2006, and that it
is seeking to amend its senior first-lien credit facilities and its
second-lien credit facility to provide covenant relief.

Autocam is exploring various options to improve liquidity, including selling
assets and securing other sources of capital. The company's balance sheet
debt as of Sept. 30, 2006, totaled US$320 million.

"We would lower the ratings further if the company fails to meet its
contractual debt obligations," said Standard & Poor's credit analyst Nancy
Messer.

"The downgrades reflect Autocam's distressed financial situation and the
increasing possibility that the company will be forced to restructure in the
near term.  We believe it is unlikely that the company will be able to
secure alternative financing in the absence of waivers for its current
covenants or incremental liquidity from its equity sponsors, because of its
very high debt leverage and weak operating results."


BANCO BRADESCO: S&P Changes BB+ Ratings' Outlook to Positive
------------------------------------------------------------
Standard & Poor's Ratings Services maintained the 'BB+' ratings on both of
Banco Bradesco SA's foreign and local currency counterparty credit rating,
however it changed the ratings outlook to positive from stable on both
ratings:

   -- Foreign currency counterparty credit rating

      * to BB+/Positive/B from BB+/Stable/B

   -- Local currency counterparty credit rating

      * to BB+/Positive/B from BB+/Stable/B

   -- Brazil national scale rating

      * to brAA+/Positive/brA-1 from brAA+/Stable/brA-1

This is in connection with Standard & Poor's revised outlook on its
long-term foreign and local currency ratings on 16 Brazilian entities to
positive from stable, following the revision of the foreign and local
currency rating outlooks on the Federative Republic of Brazil.  At the same
time, Standard & Poor's revises its outlook on the Brazil national scale
ratings to positive from stable, following the same action on the sovereign.
In addition, the ratings on all entities were affirmed.

The positive outlooks on the sovereign-owned entities are as follows:

   -- Eletrobras;
   -- Centrais Eletricas Brasileiras;
   -- Banco Nacional de Desenvolvimento;
   -- Economico e Social; and
   -- Banco do Nordeste do Brasil.

This positive outlooks reflect the linkage of the credit quality of these
entities to that of the sovereign.  Standard & Poor's considers these
entities to be closely integrated into the government and its finances, and
that there are strong incentives for the sovereign to support these
companies.  As such, rating actions and outlook revisions on these entities
should continue to mirror those on the sovereign going forward.

"The positive outlooks on the financial services entities reflect our
perception of improvements in industry and economic risks for the banking
industry in Brazil, including the country's reduction in fiscal
vulnerability and external indebtedness," said Standard & Poor's credit
analyst Daniel Araujo.  An upgrade of the banks would depend not only on the
upgrade of the sovereign, but also on the banks' intrinsic creditworthiness,
especially as measured by the quality and sustainability of asset quality
and profitability.

The positive outlooks on the insurance and asset management companies
reflect their role as core subsidiaries of Unibanco and these are:

   -- Uniao de Bancos Brasileiros SA;
   -- Banco Bradesco SA; and
   -- Banco Itau SA.

As core entities, the outlooks on these entities will move in tandem with
those on their parents.


BANCO DO BRASIL: S&P Changes BB Ratings' Outlook to Positive
------------------------------------------------------------
Standard & Poor's Ratings Serviceschanged the ratings outlook on Banco do
Brasil SA to positive from stable, but maintained at 'BB' both of its
foreign and local currencies counterparty credit ratings:

   -- Foreign currency counterparty credit rating

      * to BB/Positive/-- from BB/Stable/--

   -- Local currency counterparty credit rating

      * to BB/Positive/-- from BB/Stable/--

This is in connection with Standard & Poor's revised outlook on its
long-term foreign and local currency ratings on 16 Brazilian entities to
positive from stable, following the revision of the foreign and local
currency rating outlooks on the Federative Republic of Brazil.  At the same
time, Standard & Poor's revises its outlook on the Brazil national scale
ratings to positive from stable, following the same action on the sovereign.
In addition, the ratings on all entities were affirmed.

The positive outlooks on the sovereign-owned entities are as follows:

   -- Eletrobras;
   -- Centrais Eletricas Brasileiras;
   -- Banco Nacional de Desenvolvimento;
   -- Economico e Social; and
   -- Banco do Nordeste do Brasil.

This positive outlooks reflect the linkage of the credit quality of these
entities to that of the sovereign.  Standard & Poor's considers these
entities to be closely integrated into the government and its finances, and
that there are strong incentives for the sovereign to support these
companies.  As such, rating actions and outlook revisions on these entities
should continue to mirror those on the sovereign
going forward.

"The positive outlooks on the financial services entities reflect our
perception of improvements in industry and economic risks for the banking
industry in Brazil, including the country's reduction in fiscal
vulnerability and external indebtedness," said Standard & Poor's credit
analyst Daniel Araujo.  An upgrade of the banks would depend not only on the
upgrade of the sovereign, but also on the banks' intrinsic creditworthiness,
especially as measured by the quality and sustainability of asset quality
and profitability.

The positive outlooks on the insurance and asset management companies
reflect their role as core subsidiaries of Unibanco and these are:

   -- Uniao de Bancos Brasileiros S.A.;
   -- Banco Bradesco S.A.;and
   -- Banco Ita˙ S.A.

As core entities, the outlooks on these entities will move in tandem with
those on their parents.


BANCO CITIBANK: S&P Changes BB Ratings' Outlook to Positive
-----------------------------------------------------------
Standard & Poor's Ratings Services maintained the 'BB' ratings on both of
Banco Citibank SA's foreign and local currency counterparty credit ratings
and changed the ratings outlook to positive form stable:

   -- Foreign currency counterparty credit rating

      * to BB/Positive/B from BB/Stable/B
   -- Local currency counterparty credit rating

      * to BB/Positive/B from  BB/Stable/B

This is in connection with Standard & Poor's revised outlook on its
long-term foreign and local currency ratings on 16 Brazilian entities to
positive from stable, following the revision of the foreign and local
currency rating outlooks on the Federative Republic of Brazil.  At the same
time, Standard & Poor's revises its outlook on the Brazil national scale
ratings to positive from stable, following the same action on the sovereign.
In addition, the ratings on all entities were affirmed.

The positive outlooks on the sovereign-owned entities are as follows:

   -- Eletrobras;
   -- Centrais Eletricas Brasileiras;
   -- Banco Nacional de Desenvolvimento;
   -- Economico e Social; and
   -- Banco do Nordeste do Brasil.

This positive outlooks reflect the linkage of the credit quality of these
entities to that of the sovereign.  Standard & Poor's considers these
entities to be closely integrated into the government and its finances, and
that there are strong incentives for the sovereign to support these
companies.  As such, rating actions and outlook revisions on these entities
should continue to mirror those on the sovereign going forward.

"The positive outlooks on the financial services entities reflect our
perception of improvements in industry and economic risks for the banking
industry in Brazil, including the country's reduction in fiscal
vulnerability and external indebtedness," said Standard & Poor's credit
analyst Daniel Araujo.

An upgrade of the banks would depend not only on the upgrade of the
sovereign, but also on the banks' intrinsic creditworthiness, especially as
measured by the quality and sustainability of asset quality and
profitability.

The positive outlooks on the insurance and asset management companies
reflect their role as core subsidiaries of Unibanco and these are:

   -- Uniao de Bancos Brasileiros SA;
   -- Banco Bradesco SA; and
   -- Banco Itau SA.

As core entities, the outlooks on these entities will move in tandem with
those on their parents.


BANCO INDUSTRIAL: Demand for US$150-Million Bonds High
------------------------------------------------------
Demand for the US$150-million bonds Banco Industrial e Comercial SA issued
on Sept. 21 was high, LatinLawyer Online reports, citing Ana Carolina de
Salles Freire -- a representative of Tozzini, Freire, Teixeira e Silva
Advogados, advisors to UBS.

Ms. de Salles Freire told LatinLawyer, "This shows there is a financial
market for medium sized banks."

According to LatinLawyer, Banco Industrial issued the US$150 million bonds
under its US$500 million medium-term program.  The bonds carry an 8.25%
margin and are payable in 2009.

LatinLawyer relates that Banco Industrial will use funds raised to extend
its loan portfolio for small and medium-sized businesses.  UBS managed the
issuance, with the assitance of Banco Finantia.  Dresdner Bank was the
dealer.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Sept. 5, 2006, Moody's Investors Service assigned a Ba3 long-
term foreign currency rating to Banco Industrial e Comercial
S.A. aka BICBANCO's US$100,000,000 senior unsecured notes, with
final maturity in 2009.  Moody's said the outlook on the rating is stable.


BANCO ITAU BBA: S&P Changes BB+ Ratings' Outlook to Positive
------------------------------------------------------------
Standard & Poor's Ratings Services maintained its BB+ ratings on both of
Banco Itau BBA SA's foreign and local currency counterparty credit ratings
but changed both ratings outlook to positive from stable.

   -- Foreign currency counterparty credit rating

      * to BB+/Positive/B from BB+/Stable/B

   -- Local currency counterparty credit rating

      * to BB+/Positive/B from BB+/Stable/B
   -- Brazil national scale rating

      * to brAA+/Positive/brA-1 from brAA+/Stable/brA-1

This is in connection with Standard & Poor's revised outlook on its
long-term foreign and local currency ratings on 16 Brazilian entities to
positive from stable, following the revision of the foreign and local
currency rating outlooks on the Federative Republic of Brazil.  At the same
time, Standard & Poor's revises its outlook on the Brazil national scale
ratings to positive from stable, following the same action on the sovereign.
In addition, the ratings on all entities were affirmed.

The positive outlooks on the sovereign-owned entities are as follows:

   -- Eletrobras;
   -- Centrais Eletricas Brasileiras;
   -- Banco Nacional de Desenvolvimento;
   -- Economico e Social; and
   -- Banco do Nordeste do Brasil.

This positive outlooks reflect the linkage of the credit quality of these
entities to that of the sovereign.  Standard & Poor's considers these
entities to be closely integrated into the government and its finances, and
that there are strong incentives for the sovereign to support these
companies.  As such, rating actions and outlook revisions on these entities
should continue to mirror those on the sovereign
going forward.

"The positive outlooks on the financial services entities reflect our
perception of improvements in industry and economic risks for the banking
industry in Brazil, including the country's reduction in fiscal
vulnerability and external indebtedness," said Standard & Poor's credit
analyst Daniel Araujo.  An upgrade of the banks would depend not only on the
upgrade of the sovereign, but also on the banks' intrinsic creditworthiness,
especially as measured by the quality and sustainability of asset quality
and profitability.

The positive outlooks on the insurance and asset management companies
reflect their role as core subsidiaries of Unibanco and these are:

   -- Uniao de Bancos Brasileiros SA;
   -- Banco Bradesco SA; and
   -- Banco Itau SA.

As core entities, the outlooks on these entities will move in tandem with
those on their parents.


BANCO ITAU: S&P Changes BB+ Ratings' Outlook to Positive
--------------------------------------------------------
Standard & Poor's Ratings Services maintained its 'BB+' ratings on both of
Banco Itau SA's foreign and local currency conuterparty credit ratings but
changed both ratings outlook to positive from stable:

   -- Foreign currency counterparty credit rating

      * to BB+/Positive/B from BB+/Stable/B

   -- Local currency counterparty credit rating
      * to BB+/Positive/B from  BB+/Stable/B

   -- Brazil national scale rating

      * to brAA+/Positive/brA-1 from  brAA+/Stable/brA-1

This is in connection with Standard & Poor's revised outlook on its
long-term foreign and local currency ratings on 16 Brazilian entities to
positive from stable, following the revision of the foreign and local
currency rating outlooks on the Federative Republic of Brazil.  At the same
time, Standard & Poor's revises its outlook on the Brazil national scale
ratings to positive from stable, following the same action on the sovereign.
In addition, the ratings on all entities were affirmed.

The positive outlooks on the sovereign-owned entities are as follows:

   -- Eletrobras;
   -- Centrais Eletricas Brasileiras;
   -- Banco Nacional de Desenvolvimento;
   -- Economico e Social; and
   -- Banco do Nordeste do Brasil.

This positive outlooks reflect the linkage of the credit quality of these
entities to that of the sovereign.  Standard & Poor's considers these
entities to be closely integrated into the government and its finances, and
that there are strong incentives for the sovereign to support these
companies.  As such, rating actions and outlook revisions on these entities
should continue to mirror those on the sovereign going forward.

"The positive outlooks on the financial services entities reflect our
perception of improvements in industry and economic risks for the banking
industry in Brazil, including the country's reduction in fiscal
vulnerability and external indebtedness," said Standard & Poor's credit
analyst Daniel Araujo.  An upgrade of the banks would depend not only on the
upgrade of the sovereign, but also on the banks' intrinsic creditworthiness,
especially as measured by the quality and sustainability of asset quality
and profitability.

The positive outlooks on the insurance and asset management companies
reflect their role as core subsidiaries of Unibanco and these are:

   -- Uniao de Bancos Brasileiros SA;
   -- Banco Bradesco SA; and
   -- Banco Itau SA.

As core entities, the outlooks on these entities will move in tandem with
those on their parents.


BANCO NACIONAL: S&P Changes Credit Ratings' Outlook to Positive
---------------------------------------------------------------
Standard & Poor's Ratings Services changed the ratings outlook on both of
Banco Nacional de Desenvolvimento Economico e Social SA's foreign and local
currency counterparty credit ratings:

   -- Foreign currency counterparty credit rating

      * to BB/Positive/-- from  BB/Stable/--

   -- Local currency counterparty credit rating

      * to BB+/Positive/-- from BB+/Stable/--

This is in connection with Standard & Poor's revised outlook on its
long-term foreign and local currency ratings on 16 Brazilian entities to
positive from stable, following the revision of the foreign and local
currency rating outlooks on the Federative Republic of Brazil.  At the same
time, Standard & Poor's revises its outlook on the Brazil national scale
ratings to positive from stable, following the same action on the sovereign.
In addition, the ratings on all entities were affirmed.

The positive outlooks on the sovereign-owned entities are as follows:

   -- Eletrobras;
   -- Centrais Eletricas Brasileiras;
   -- Banco Nacional de Desenvolvimento;
   -- Economico e Social; and
   -- Banco do Nordeste do Brasil.

This positive outlooks reflect the linkage of the credit quality of these
entities to that of the sovereign.  Standard & Poor's considers these
entities to be closely integrated into the government and its finances, and
that there are strong incentives for the sovereign to support these
companies.  As such, rating actions and outlook revisions on these entities
should continue to mirror those on the sovereign
going forward.

"The positive outlooks on the financial services entities reflect our
perception of improvements in industry and economic risks for the banking
industry in Brazil, including the country's reduction in fiscal
vulnerability and external indebtedness," said Standard & Poor's credit
analyst Daniel Araujo.  An upgrade of the banks would depend not only on the
upgrade of the sovereign, but also on the banks' intrinsic creditworthiness,
especially as measured by the quality and sustainability of asset quality
and profitability.

The positive outlooks on the insurance and asset management companies
reflect their role as core subsidiaries of Unibanco and these are:

   -- Uniao de Bancos Brasileiros S.A.;
   -- Banco Bradesco S.A.;and
   -- Banco Ita˙ S.A.

As core entities, the outlooks on these entities will move in tandem with
those on their parents.


BANCO NORDESTE: S&P Changes Creit Ratings' Outlook to Positive
--------------------------------------------------------------
Standard & Poor's Ratings Services changed the ratings outlook on both of
Banco Nordeste SA's foreign and local currency counterparty credit ratings:

   -- Foreign currency counterparty credit rating

      * to BB/Positive/B from  BB/Stable/B

   -- Local currency counterparty credit rating

      * to BB+/Positive/B BB+/Stable/B

   -- Brazil national scale rating

      * to brAA+/Positive/-- from brAA+/Stable/--

This is in connection with Standard & Poor's revised outlook on its
long-term foreign and local currency ratings on 16 Brazilian entities to
positive from stable, following the revision of the foreign and local
currency rating outlooks on the Federative Republic of Brazil.  At the same
time, Standard & Poor's revises its outlook on the Brazil national scale
ratings to positive from stable, following the same action on the sovereign.
In addition, the ratings on all entities were affirmed.

The positive outlooks on the sovereign-owned entities are as follows:

   -- Eletrobras;
   -- Centrais Eletricas Brasileiras;
   -- Banco Nacional de Desenvolvimento;
   -- Economico e Social; and
   -- Banco do Nordeste do Brasil.

This positive outlooks reflect the linkage of the credit quality of these
entities to that of the sovereign.  Standard & Poor's considers these
entities to be closely integrated into the government and its finances, and
that there are strong incentives for the sovereign to support these
companies.  As such, rating actions and outlook revisions on these entities
should continue to mirror those on the sovereign going forward.

"The positive outlooks on the financial services entities reflect our
perception of improvements in industry and economic risks for the banking
industry in Brazil, including the country's reduction in fiscal
vulnerability and external indebtedness," said Standard & Poor's credit
analyst Daniel Araujo.  An upgrade of the banks would depend not only on the
upgrade of the sovereign, but also on the banks' intrinsic creditworthiness,
especially as measured by the quality and sustainability of asset quality
and profitability.

The positive outlooks on the insurance and asset management companies
reflect their role as core subsidiaries of Unibanco and these are:

   -- Uniao de Bancos Brasileiros SA;
   -- Banco Bradesco SA; and
   -- Banco Itau SA.

As core entities, the outlooks on these entities will move in tandem with
those on their parents.


BANCO SANTANDER: S&P Changes BB Ratings' Outlook to Positive
------------------------------------------------------------
Standard & Poor's Ratings Services maintained its 'BB' ratings on both of
Banco Santander Banespa SA's foreign and local currency counterparty credit
ratings.

   -- Foreign currency counterparty credit rating

      * to BB/Positive/B from   BB/Stable/B

   -- Local currency counterparty credit rating

      * to BB/Positive/B  from  BB/Stable/B

   -- Brazil national scale rating

      * brAA/Positive/brA-1 from brAA/Stable/brA-1

This is in connection with Standard & Poor's revised outlook on its
long-term foreign and local currency ratings on 16 Brazilian entities to
positive from stable, following the revision of the foreign and local
currency rating outlooks on the Federative Republic of Brazil.  At the same
time, Standard & Poor's revises its outlook on the Brazil national scale
ratings to positive from stable, following the same action on the sovereign.
In addition, the ratings on all entities were affirmed.

The positive outlooks on the sovereign-owned entities are as follows:

   -- Eletrobras;
   -- Centrais Eletricas Brasileiras;
   -- Banco Nacional de Desenvolvimento;
   -- Econ˘mico e Social; and
   -- Banco do Nordeste do Brasil.

This positive outlooks reflect the linkage of the credit quality of these
entities to that of the sovereign.  Standard & Poor's considers these
entities to be closely integrated into the government and its finances, and
that there are strong incentives for the sovereign to support these
companies.  As such, rating actions and outlook revisions on these entities
should continue to mirror those on the sovereign
going forward.

"The positive outlooks on the financial services entities reflect our
perception of improvements in industry and economic risks for the banking
industry in Brazil, including the country's reduction in fiscal
vulnerability and external indebtedness," said Standard & Poor's credit
analyst Daniel Araujo.  An upgrade of the banks would depend not only on the
upgrade of the sovereign, but also on the banks' intrinsic creditworthiness,
especially as measured by the quality and sustainability of asset quality
and profitability.

The positive outlooks on the insurance and asset management companies
reflect their role as core subsidiaries of Unibanco and these are:

   -- Uniao de Bancos Brasileiros S.A.
   -- Banco Bradesco S.A. and
   -- Banco Itau S.A.

As core entities, the outlooks on these entities will move in tandem with
those on their parents.


BANCO SCHAHIN: Raises US$50 Mil. Through Subordinated Debt Issue
----------------------------------------------------------------
Frederico Souza Lima, a Banco Schahin SA executive, told Business News
Americas that the bank has raised US$50 million through a subordinated debt
issue on international markets.

Mr. Lima said that the 10-year issue with a call in five years was the first
time Banco Schahin has placed subordinated debt on the international
markets, BNamericas relates.

Banco Schahin will launch in the first quarter of 2007 a medium-term note
program to raise up to US$200 million on international markets, BNamericas
says, citing Mr. Lima.

According to BNamericas, Banco Schahin made a two-year US$25 million bond
issue on international markets with an 8.5% yearly interest rate in April
2006.

Mr. Lima told BNamericas that Banco Schahin ended the first half of 2006
with BRL18 million in net profits, which was practically the same as that of
the first half of 2005.  The bank's return on equity was 20.8% in the first
half of 2006 and net assets were BRL204 million in June 2006.

BNamericas underscores that Bulltick Capital Markets, a US investment bank,
coordinated the issue as it did in April.

Moody's Investors Service placed its B2 long-term foreign currency rating
with a stable outlook to the issue, and gave Banco Schahin a Ba3 global
local currency deposit rating.

Mr. Lima told BNamericas that Banco Schahin's retail operations focus on:

          -- payroll and retirement loans,
          -- vehicle financing and personal loans, and
          -- loans to cover auto expenses.

Banco Schahin concentrated mainly on middle on middle market commercial
lending four years ago.  However, it is now trying to bring retail lending
up to 80% of its loan portfolio, BNamericas states, citing Mr. Lima.

                        *    *    *

As reported on Jan. 31, 2006, Standard & Poor's Ratings Services
assigned on Jan. 26, 2006, its 'B' foreign-currency long-term
senior unsecured debt rating to Banco Schahin S.A.'s US$20
million notes to be issued on Jan. 30, 2006, under the US$100
million short-term note program.  The issue matures in two years
with semiannual payments.

"The counterparty credit rating on Banco Schahin S.A.
(B/Stable/B) reflects the intrinsic risks of a small bank facing
the challenge of growing its business while maintaining adequate
funding in the increasingly competitive banking market; the weak
credit quality of its remaining wholesale portfolio that,
despite improvement, is still worse than that of its major
peers; and like all the banks that operate in the same market,
the margin pressure related to retail lending," said Standard &
Poor's credit analyst Tamara Berenholc.


BRASIL TELECOM: Acquires Telexis Brasil's Assets
------------------------------------------------
Brasil Telecom Participacoes said in a statement that it has obtained the
assets of Telexis Brasil, Italian car maker Fiat's Brazilian telecoms
business, for an undisclosed amount.

Business News Americas relates that the deal is part of Brasil Telecom's
EUR450-million global contract over five years to supply telecoms services
to Fiat.

Luis Alvarez -- president of Brasil Telecom's operations in Spain, Portugal
and Latin America -- told BNamericas, "The acquisition of the assets of
Telexis Brasil is a further milestone in the fulfillment of the global
contract with Fiat."

According to BNamericas, the deal will also incorporate a number of Brasil
Telecom's foreign clients, of which many have supply chain relationships
with Fiat.

BNamericas underscores that Telexis provides services to both Fiat Group and
external clients.  It reported revenues of around US$2 million and gross
assets of US$640,000 last year.

Brasil Telecom expects its operating revenues to increase around US$100
million this year in Latin America, compared with the US$50 million recorded
in 2005, BNamericas states, citing Mr. Alvarez.

Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA --
http://www.brasiltelecom.com.br-- is a holding company that conducts
substantially all of its operations through its wholly owned subsidiary,
Brasil Telecom SA.  The fixed-line telecommunications services offered to
the company's customers include local services, including all calls that
originate and terminate within a single local area in the region, as well as
installation, monthly subscription, measured services, public telephones and
supplemental local services; intraregional long-distance services, which
include intrastate and interstate calls; interregional and international
long-distance services; network services, including interconnection and
leasing; data transmission services; wireless services, and other services.

                        *    *    *

Brasil Telecom Participacoes' local currency long-term debt carries Fitch's
BB+ rating.


COMPANHIA SIDERURGICA: Corus Acquisition Negative in Short Term
---------------------------------------------------------------
Industry analysts told Business News Americas that the possible acquisition
of Corus Group by Companhia Siderurgica Nacional is negative in the
short-term outlook.

However, the acquisition will be positive for the long-term outlook,
BNamericas says, citing the analyst.

As reported in the Troubled Company Reporter-Latin America on Nov. 21, 2006,
Companhia Siderurgica approached the Board of Corus Group regarding a
proposal to acquire the company at a price of 475 pence per ordinary share
in cash.  Any potential offer is subject to certain pre-conditions, all of
which Companhia Siderurgica reserves the right to waive, including
completion of confirmatory due diligence satisfactory to the company,
finalization of financing arrangements and a recommendation from the Board
of Corus Group.

BNamericas relates that the combined operations of Corus Group and Companhia
Siderurgica would form a top five steel group with annual steel production
of 24 megatons and, by 2010, approximately 50 megatons per year of iron ore
production.

Adriano Blanaru, the head of analysis with Link Corretora, told BNamericas,
"CSN (Companhia Siderurgica) always had an eye for Corus."

Mr. Blanaru said he has written reports in the past saying the chances of
Companhia Siderurgica launching an offer for Corus Group were very small,
BNamericas notes.

According to BNamericas, Companhia Siderurgica and Corus Group tried on a
merger in 2002 but failed.

Mr. Blanaru told BNamericas, "When considering the industrial logic, it
works and makes sense.  CSN has what Corus needs and vice versa."

Companhia Siderurgica boasts iron ore reserves and cheap slab production,
BNamericas says citing Mr. Blanaru.

"In turn, Corus gives CSN access to the European markets, while the
companies would enjoy synergy gains," Mr. Blanaru told BNamericas.

Mr. Blanaru commented to BNamericas that the Corus Group acquisition would
be expensive for Companhia Siderurgica.

"CSN would be much more susceptible to [the volatility of] the steel
market," Mr. Blanaru told BNamericas.

Mr. Blanaru explained to BNamericas that the steel sector goes through
cycles of decline and price increases.

Pedro Galdi, an investment analyst with ABN Amro Real Corretora, told
BNamericas, "CSN's president is a very aggressive investor.  The [Corus]
offer is valued at some 17bn reais [US$7.85bn]... if the acquisition takes
place, CSN could hold net debt of 23bn reais.  In the short term, the
acquisition would be negative, but in the medium to long term, CSN could
create fantastic synergies, since Corus has a different product mix and will
significantly enrich the Brazilian company in the next two to three years."

According to the report, Companhia Siderurgica would pay for the acquisition
of Corus Group through a combination of existing financial resources and
proceeds of new debt facilities to be underwritten by a bank syndicate.  The
financing could result in high volatility of Companhia Siderurgica shares in
the future.

Mr. Galdi explained to BNamericas that Companhia Siderurgica's stock is
having a negative impact when it disclosed its bid for Corus Group, as the
market's immediate reaction to the offer was not positive.

Companhia Siderurgica's stock price decreased up to 6% on
Nov. 17, the day of the Corus bid was disclosed, BNamericas says, citing
Daniel Lemos, an investment analyst with Socopa.

"We knew about CSN's interest in Corus, but no one expected the company to
top the existing Tata offer," Mr. Lemos told BNamericas.

However, Mr. Lemos admitted to BNamericas that the acquisition is positive
in the long term and would likely improve Companhia Siderurgica's rank among
global steelmakers.

"This would be important in this time of consolidation in the industry," Mr.
Lemos commented to BNamericas.

Companhia Siderurgica told BNamericas, "Any potential offer is subject to
certain pre-conditions, all of which CSN reserves the right to waive,
including completion of confirmatory due diligence satisfactory to CSN,
finalization of financing arrangements and a recommendation from the board
of Corus."

The analysts confirmed to BNamericas that Tata Steel is unlikely to abandon
its plan to acquire Corus Group easily.

"I believe CSN is already waiting for a bidding war, and could be willing to
increase its price," Mr. Blanaru told BNamericas.

According to BNamericas, Mr. Blanaru believed there would be a bidding war
if Tata Steel won't increase its offer to a much higher value.

"I believe CSN and Tata will continue to pursue Corus, but I don't know by
how much," Mr. Galdi told BNamericas.

Companhia Siderurgica Nacional is one of the lowest-cost steel
producers in the world, which is a result of its access to
proprietary, high-quality iron ore (at the Casa de Pedra mine);
self-sufficiency in energy; streamlined facilities; and
logistics advantages.  This is in addition to the group's strong
market position in the fairly concentrated steel industry in
Brazil.

                        *    *    *

Standard & Poor's Ratings Services affirmed on Aug. 4, 2006, its
'BB' long-term corporate credit rating on Brazil-based steel
maker Companhia Siderurgica Nacional after the announcement of
its association with US-based steel maker Wheeling-Pittsburgh
Corp. in the US.  S&P said the outlook is stable.

Fitch Ratings viewed the proposed merger of Companhia
Siderurgica Nacional's or CSN North American operations with
those of Wheeling-Pittsburgh Corporation or WPSC to be neutral
to CSN's credit quality.  Fitch's ratings of CSN include:

  -- Foreign currency Issuer Default Rating: 'BB+';
  -- Local currency IDR: 'BBB-';
  -- National scale rating: 'AA (bra)';
  -- Senior unsecured notes 'BB+'; and
  -- Brazilian Real denominated debentures: 'AA (bra)'.


COMPANHIA SIDERURGICA: Says It Is Best Fit for Corus Group
----------------------------------------------------------
"Tata (Steel Ltd.) is a nice fit for Corus (Group Plc), but we think that we
probably are the best fit," Bloomberg reports, citing Jose Marcos Treiger --
Companhia Siderurgica Nacional SA's head of investor relations --  at a
press briefing in Amsterdam on Nov. 23.

Companhia Siderurgica is competing with Tata Steel on the takeover of Corus
Group.

As reported in the Troubled Company Reporter-Latin America on Nov. 21, 2006,
Companhia Siderurgica approached the Board of Corus Group regarding a
proposal to acquire the company at a price of 475 pence per ordinary share
in cash.  Any potential offer is subject to certain pre-conditions, all of
which Companhia Siderurgica reserves the right to waive, including
completion of confirmatory due diligence satisfactory to the company,
finalization of financing arrangements and a recommendation from the Board
of Corus Group.

Meanwhile, Tata Steel offered 455 pence on Oct. 20, Bloomberg relates.

According to the Economic Times, Tata Steel may wait until Companhia
Siderurgica makes a final proposal before increasing its offer for Corus
Group.

Mr. Treiger told Bloomberg, "We (Companhia Siderurgica) are ready to grow
internationally because we need to complement our domestic market.

The will be a lot of synergies between Companhia Siderurgica and Corus,
Bloomberg notes, citing Mr. Treiger.

The board of Tata Steel met on Nov. 23 to discuss alternatives including
raising the offer for Corus Group to fight Companhia Siderurgica's bid,
Bloomberg states.

Companhia Siderurgica Nacional is one of the lowest-cost steel
producers in the world, which is a result of its access to
proprietary, high-quality iron ore (at the Casa de Pedra mine);
self-sufficiency in energy; streamlined facilities; and
logistics advantages.  This is in addition to the group's strong
market position in the fairly concentrated steel industry in
Brazil.

                        *    *    *

Standard & Poor's Ratings Services affirmed on Aug. 4, 2006, its
'BB' long-term corporate credit rating on Brazil-based steel
maker Companhia Siderurgica Nacional after the announcement of
its association with US-based steel maker Wheeling-Pittsburgh
Corp. in the US.  S&P said the outlook is stable.

Fitch Ratings viewed the proposed merger of Companhia
Siderurgica Nacional's or CSN North American operations with
those of Wheeling-Pittsburgh Corporation or WPSC to be neutral
to CSN's credit quality.  Fitch's ratings of CSN include:

  -- Foreign currency Issuer Default Rating: 'BB+';
  -- Local currency IDR: 'BBB-';
  -- National scale rating: 'AA (bra)';
  -- Senior unsecured notes 'BB+'; and
  -- Brazilian Real denominated debentures: 'AA (bra)'.


DYNEA INT'L: Sells U.S. Operations to Teacher's Private
-------------------------------------------------------
Dynea International Oy sold its North American operations to Teacher's
Private Capital on Nov. 21.

The divestment of operations in North America allows Dynea to focus on
growing markets in Eastern Europe and Asia Pacific and to further strengthen
its market position in these areas.

"The divestment of Dynea's North American operations is a logical step in
our strategy to take a leading position in the markets where we operate.
The transaction also gives us the opportunity to create added value by
investing in new technology to support our customers," Roger Carlstedt,
Dynea's president and CEO disclosed.

Dynea's operations in North America include 13 production units with
approximately 700 employees in Canada, the United States and Mexico, and
annual sales of more than EUR450 million.

"This transaction will also give us resources for expansion in our key
growth areas.  With operations in 23 countries, Dynea will continue to help
its customers grow by providing value through our leading resins and
overlays technology world-wide," Filip Frankenhaeuser, Dynea's executive
vice president and CFO added.

               About Teachers' Private Capital

Headquartered in Ontario, Canada, Teachers' Private Capital --
http://www.otpp.com/-- is a private investment arm of the CDN96 billion
Ontario Teachers' Pension Plan, an independent corporation responsible for
investing the fund and administering the pensions of Ontario's 264,000
active and retired teachers.

With more than CDN11 billion in assets, Teachers' Private Capital is one of
Canada's largest private investors, providing equity and mezzanine debt
capital for large and mid-cap companies, venture capital for developing
industries, and financing for a growing portfolio of infrastructure and
timberland assets worldwide.

                   About Dynea International

Headquartered in Helsinki, Finland, Dynea International Oy --
http://www.dynea.com/-- provides adhesion and surfacing solutions.  In
2005, Dynea had revenues of EUR1.2 billion.  After the transaction Dynea has
39 production units and some 2,200 employees in 23 countries in Europe, Asia
Pacific and Brazil in South America.


DYNEA INT'L: Unit Sale Cues S&P's Developing Watch on B Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' long-term corporate rating
on Finnish specialty chemicals company Dynea International Oy on CreditWatch
with developing implications, following Dynea's announcement of the sale of
its U.S. unit.

The CreditWatch developing status means that the rating could be raised,
lowered, or affirmed.

"The outcome will depend on the amount of the sale proceeds, their use, and
the business profile of the remaining assets," said Standard & Poor's credit
analyst Lucas Sevenin.  The company had debt of nearly EUR480 million at
end-September 2006.

The rating could be favorably affected if:

   -- the proceeds are sufficient and used to redeem all or a
      great part of financial debt;

   -- the group obtains sufficient new financing for its
      remaining operations; and

   -- the group's leverage policy is in line with the
      new business profile.

On the other hand, the rating could be negatively affected if the business
profile of the remaining operations is far weaker than at present and
leverage does not decrease sufficiently to compensate, and/or if S&P expects
the leverage to increase to fund potential future acquisitions.
Furthermore, the rating agency expects to evaluate the company's new
business strategy and future financial policy.

The rating could, alternatively, be affirmed, depending on the final mix of
debt reduction and business risk profile.

"From a business standpoint, we view the sale of this main EBITDA
contributor as negative," said Mr. SÚvenin.  "We will resolve the
CreditWatch status once we obtain more clarity on the net amount and uses of
proceeds, future operational strategy, financial policy, and the main
shareholder's position."

The rating on Dynea primarily reflects its high leverage, exposure to very
competitive markets, and concentration in the cyclical construction and
furniture industries.  These factors are somewhat offset by Dynea's strong
market shares in the formaldehyde-based resins industry, and its good
geographic diversification.

With 2005 sales of EUR1.1 billion, Dynea is one of the world's largest
producers of formaldehyde-based resins, key in the manufacture of wood
products -- such as plywood and particle board -- used in the building
industry.


LAZARD LTD: Selling 12 Million Shares of Class A Common Stock
-------------------------------------------------------------
Lazard Ltd. filed a preliminary prospectus supplement with the United States
Securities and Exchange Commission, pursuant to which the company and
certain selling shareholders who hold LAZ-MD exchangeable interests plan to
sell approximately 12,000,000 shares of Lazard Ltd Class A common stock.  Of
the 12,000,000 shares, 6,000,000 are expected to be issued by Lazard Ltd and
6,000,000 are expected to be sold by the selling shareholders.  The company
also has granted the underwriters the option to purchase an additional
1,800,000 shares.

According to reports, gross proceeds from these transactions may amount to
US$632 million.  Half of these will be used to reduce debt and finance
expansion of its asset management and advisory units, after deduction of
expenses and fees.

The value of Lazard's shares almost doubled from its value of US$25 per
share in May 2005, when it was first sold.  In the initial public offering,
the company's current and former managing directors were given stakes in a
holding company but were not allowed to convert the stakes into common stock
until 2008.  The restriction was lifted and the directors were allowed to
sell about 10% of their total holdings in an impending secondary offering.

According to the Financial Times, selling their stakes is a move by the
directors to trim their stakes in the US investment bank and to reduce
exposure to the mergers and acquisitions phase.

There are 5 executive officers and more than 100 current and former managing
directors that are planning to sell their shares in the offering.  Some of
them are:

   -- Kenneth Jacobs, haed of Lazard's North American business,
      is planning to sell 286,331 shares or about US$12.6
      million worth of shares, though he will  still retain
      approximately i.7 million shares.

   -- Vice Chairman Steven Golub is planning to sell 249,622
      shares equivalent to a gain of US$11 million.  He will
      hold about 1.48 million shares after the offering.

   -- President Chuck Ward intends to sell about US$10 million
      worth of stock.

   -- Former Chairman Michel David-Weill is cashing about US$3.5
      million.  After the offering, he will continue to hold
      about 477,000 shares worth US$21 million.

   -- Vernon Jordan, according to Bloomberg, is the only board
      member who filed to sell shares in the offering.  He is
      planning to sell approximately 53,008 shares and will hold
      about 313,423 shares after the offering.

   -- Each of Marcus Argius, head of the London office; Charles
      Ward, chairman of the asset management divisions; Gary
      Parr, top financial services banker; and Jeffrey Rosen
      will sell 220,000 shares for US$10 million.

Bruce Wasserstein, Lazard's chairman and chief executive officer, will not
be among those selling shares for the offering.

Goldman, Sachs & Co. and Lazard Capital Markets will be acting as
underwriters of the offering.  The prospectus and preliminary prospectus
supplement relating to the proposed offering may be obtained by contacting:

          Goldman, Sachs & Co.
          Attn: Prospectus Department
          85 Broad Street
          New York, NY 10004
          Tel: (212) 902-1171

Lazard Ltd. -- http://www.lazard.com/-- one of the world's preeminent
financial advisory and asset management firms, operates from 29 cities
across 16 countries in North America, Europe, Asia, Australia and Brazil.
With origins dating back to 1848, the firm provides services including
mergers and acquisitions advice, asset management, and restructuring advice
to corporations, partnerships, institutions, governments, and individuals.

                        *    *    *

At June 30, 2006, Lazard's balance sheet showed US$2.1 billion in total
assets and US$2.8 billion in total liabilities, resulting in US$745 million
stockholders' deficit.


PETROLEO BRASILEIRO: Expects 2 Mil. Barrels Daily Output in 2007
----------------------------------------------------------------
Almir Barbassa -- chief financial officer of Petroleo Brasileiro SA, the
state-run oil company of Brazil -- told Dow Jones Newswires that the company
sees its domestic oil production to exceed 2 million barrels per day by the
end of 2007.

Mr. Barbassa said that Petroleo Brasileiro expects its Brazil oil output to
average 1.979 million barrels per day during the rest of next year, Dow
Jones relates.

According to Dow Jones, the production would be 5.3% higher in 2007 than
Petroleo Brasileiro's expected 1.88 million barrel per day average domestic
output for 2006.

Dow Jones underscores that the rapid expected boost in oil output next year
comes as Petroleo Brasileiro plans to take in 2007 four new oil rigs on
stream off the Brazilian coast that will have a 480,000 barrel per day
combined production capacity.

Mr. Barbassa told Dow Jones that despite the massive increase in new output,
average production is not expected to grow even faster due to the natural
decline in output at already-producing oil fields.

Dow Jones emphasizes that Petroleo Brasileiro's production was at 1.821
million barrels per day in October.  The company's combined oil and gas
production, both in Brazil and overseas, averaged at 2.343 million barrels
of oil equivalent per day in October.

Petroleo Brasileiro will reach in December its full output capacity at its
180,000 barrel per day P-50 rig that was launched in April.  Production at
the 100,000 barrel per day FPSO Capixaba rig that was started operating in
May will reach its full capacity in 2007, Dow Jones says, citing Mr.
Barbassa.

Mr. Barbassa told Dow Jones that for the 2008 to 2011 period, Petroleo
Brasileiro will take another seven new oil rigs on stream that will add 1.02
million barrels per day to its domestic oil output capacity.

The report says that after the output loss from the natural decline is
included in calculations, Petroleo Brasileiro expects to boost its Brazilian
production to 2.3 million barrels per day in 2010.

Petroleo Brasileiro told Dow Jones that including overseas oil output and
natural gas production both in Brazil and abroad, Petroleo Brasileiro hopes
to reach production of 3.493 million barrels per day of oil equivalent in
2011 and 4.556 million barrels of oil equivalent per day in 2015.

"We will get close to production levels of oil majors such as ExxonMobil
(XOM), which now pumps about 4 million BOE/d (barrels of oil equivalent per
day)," Mr. Barbassa told Dow Jones.

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.


TAM SA: Receives Authorization to Fly to Italy
----------------------------------------------
TAM S.A. received the official authorization from the National Civil
Aviation Agency or ANAC to initiate regular daily flights to Italy.  TAM
obtained this flight based on the increase in the bilateral agreement,
authorized this month by the Italian and Brazilian governments.

The start date and schedule of the new international operation will be
opportunely disclosed by TAM.  All necessary measures to initiate the flight
in the first half of 2007 are already in place.

Milan will be the third destination that TAM flies to in Europe.  This
flight will depart from Sao Paulo. The company already flies to Paris
(currently twice a day and, as of Jan. 12, 2007, three times a day) and
London.

The strategy adopted by TAM in the international segment is to grow
selective in profitable markets.  According to ANAC, TAM ended last October
with 58.2% market share among the Brazilian companies that operate in the
international market.

"The flight to Italy will strengthen our international network because it is
a destination that attracts both business and leisure passengers, and also
is another entrance to Europe," said Marco Antonio Bologna, TAM's CEO.
Brazil has a huge Italian community, composed by 25 million descendants, of
which 15 million live in the State of Sao Paulo.

Also in the international market, TAM:

   -- will start its second daily flight to New York, as of
      Dec. 15,

   -- operates three daily flights to Miami, and

   -- operates one departing from Fortaleza (Ceara) with
      connections in Belem (Para) and Manaus (Amazonas).

Once a week, the flight to Miami that leaves from Sao Paulo stops in
Salvador.  In South America, TAM has 49 weekly flights to Buenos Aires,
Argentina, and will operate the second daily flight to Santiago, Chile as of
Jan. 2.  Through TAM Mercosur, it operates to six other destinations:

   -- Asuncion and Ciudad del Este (Paraguay),
   -- Montevideo and Punta del Este (Uruguay),
   -- Santa Cruz de la Sierra and
   -- Cochabamba (Bolivia).

The company also has a daily flight to Lima, in Peru, through a code-share
operation with Taca.

TAM SA -- http://www.tam.com.br/-- operates regular flights to
47 destinations throughout Brazil.  It serves 72 different
cities in the domestic market through regional alliances.
Additionally, it maintains code-share agreements with
international airline companies that allow passengers to travel
to a large number of destinations throughout the world.  TAM was
the first Brazilian airline company to launch a loyalty program.
The program has over 3.3 million subscribers and has awarded
more than 3.6 million tickets.

                        *    *    *

Fitch assigned on Aug. 8, 2006, foreign currency and local
currency Issuer Default Ratings of 'BB' to TAM SA.  Fitch has
also assigned a national scale rating of 'A+' (bra)' to TAM.
Fitch said the rating outlook is stable.


USINAS SIDERURGICAS: Using Alstom's Gas Emission Control
System ---------------------------------------------------------------
Alstom, France's power generation equipment manufacturer, will design and
supply a gas emission control system for Usinas Siderurgicas de Minas Gerais
SA, Gazeta Mercantil reports.

Gazeta Mercantil relates that the technology will be applied at Usinas
Siderurgica's plant in Ipatinga city in Minas Gerais.

The project is expected to be completed in September 2007, Gazeta mercantil
states.

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.


* BRAZIL: Rio de Janeiro Will Move Auction Date for Berj
--------------------------------------------------------
Local press says that the Rio de Janeiro state government will reschedule
the auction of state bank Berj.

As reported in the Troubled Company Reporter-Latin America on Nov. 24, 2006,
the Berj auction was postponed when no bids were submitted for the bank.
The state government disclosed the auction early in November for a minimum
price of BRL739 million.  Banco Bradesco and Banco Itau subsequently
deposited financial guarantees of at least 25% of the minimum price.
However, both banks did not present bids in the auction on Nov 22.  Banco
Bradesco had filed a motion to postpone the auction until Dec. 1.   A state
court granted the request at first.  However, the chief justice of the state
supreme court later overruled the motion.

"We are going to reevaluate some points and reopen the data room for
potential bidders," Francesco Conte, the Rio Janeiro attorney general, told
Gazeta Mercantil.

Fitch assigned a BB rating with a stable outlook on Brazil's US$1.5 billion
global bond.  Fitch last upgraded Brazil's sovereign ratings (long-term
foreign and local currency Issuer Default Ratings) to BB from BB- in June,
reflecting the improvement in the country's external finances, especially
the sharp reduction in the public sector's external exposure.




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


ASHMORE ENERGY: Shareholders' Scheme Meeting Held on Nov. 21
------------------------------------------------------------
Ashmore Energy International Ltd.'s shareholders convened for a scheme
meeting at 2:00 p.m. on Nov. 21, 2006, at:

          Clifford Chance US LLP
          31 W 52nd Street
          New York, NY 10019

The Grand Court of the Cayman Islands directed the scheme meeting for the
purpose of considering and, if thought fit, approving the Scheme of
Arrangement made between Ashmore Energy and the holders of the Scheme
Shares.

The court had specified that the entitlement to attend and vote at the
Scheme Meeting be determined by reference to the register of members of the
company as at 6:00 p.m. on Nov. 20, 2006.

The court appointed K. George Wasaff, or failing him Brent de Jong, or
failing him, Martin Lang, to act as Chairman of the Scheme Meeting.


BLACKROCK SENIOR: Calls Shareholders for Last Meeting on Nov. 30
----------------------------------------------------------------
Blackrock Senior Income Series III's shareholders will convene for a final
meeting on Nov. 30, 2006, at:

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

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

The liquidators can be reached at:

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


CMULTI-STRATEGY: Final Shareholders Meeting Is Set for Nov. 30
--------------------------------------------------------------
Cmulti-Strategy Equity Master Fund's final saheholders meeting will be at
10:30 a.m. on Nov. 30, 2006, at:

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

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


CAPELLA FUND: Holding Final Shareholders Meeting on Nov. 30
-----------------------------------------------------------
Capella Fund Ltd.'s shareholders will convene for a final meeting on Nov.
30, 2006, at:

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

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

The liquidator can be reached at:

          Mike Hughes
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands


CARLYLE HIGH: Invites Shareholders for Last Meeting on Nov. 30
--------------------------------------------------------------
Carlyle High Yield Partners III, Ltd.'s shareholders will convene for a
final meeting on Nov. 30, 2006, at:

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

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

The liquidators can be reached at:

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


CDO INVESTMENT: Calls Shareholders for Final Meeting on Nov. 30
---------------------------------------------------------------
CDO Investment Fund, Ltd.'s shareholders will convene for a final meeting on
Nov. 30, 2006, at:

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

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

The liquidator can be reached at:

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


CHANNEL ASSETS: Shareholders Convene for Last Meeting on Nov. 30
----------------------------------------------------------------
Channel Assets Ltd.'s shareholders will convene for a final meeting on Nov.
30, 2006, at:

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

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

The liquidator can be reached at:

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


CHIYODA CREDIT: Shareholders to Have Final Meeting on Nov. 30
-------------------------------------------------------------
Chiyoda Credit Management Company, Ltd.'s shareholders will convene for a
final meeting on Nov. 30, 2006, at:

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

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

The liquidators can be reached at:

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


DRESDNER FUND: Final Shareholders Meeting Is on Nov. 30
---------------------------------------------------------------
Dresdner Fund Administration (Cayman) Ltd.'s shareholders will convene for a
final meeting Nov. 30, 2006, at:

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

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

The liquidator can be reached at:

          Mike Hughes
          Maples Finance Limited
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands


DUESENBERG CSO 2001-3: Final Shareholders Meeting Is on Nov. 30
---------------------------------------------------------------
Duesenberg CSO 2001-3, LLC's shareholders will convene for a final meeting
on Nov. 30, 2006, at:

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

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

The liquidators can be reached at:

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


HSBC REPUBLICAN: Liquidator Presents Wind Up Accounts on Nov. 30
----------------------------------------------------------------
The HSBC Republican Latin America Short Duration Income Fund, Ltd.'s final
saheholders meeting will be at 10:00 a.m. on
Nov. 30, 2006, at:

          HSBC Investments (USA) Inc.
          452 Fifth Avenue, New York, NY, 10018

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:

          Ogier
          Attn: Anna Goubault
          Tel: (345) 949 9876
          Fax: (345) 949 1986


ICE SEA: Invites Shareholders for Final Meeting on Nov. 30
----------------------------------------------------------
Ice Sea Shipping Ltd.'s shareholders will convene for a final meeting at
10:00 a.m. on Nov. 30, 2006, at:

          Armada Shipping SA
          Route du Petit-Moncor 1, 1752 Villars-sur Glane
          Switzerland

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

The liquidator can be reached at:

          Steen Ulrich
          c/o Maples and Calder
          P.O. Box 309
          Grand Cayman, Cayman Islands


INTER FINANCIAL: Shareholders Gather for Last Meeting on Nov. 30
----------------------------------------------------------------
Inter Financial Corp.'s final saheholders meeting will be at 10:00 a.m. on
Nov. 30, 2006, at:

          BNP Paribas Bank & Trust Cayman Limited
          3rd Floor Royal Bank House
          Shedden Road, 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:

          Piccadilly Cayman Limited
          Attn: Ellen J. Christian
          c/o BNP Paribas Bank & Trust Cayman Limited
          3rd Floor Royal Bank House
          Shedden Road, George Town
          Grand Cayman, Cayman Islands
          Tel: 345 945 9208
          Fax: 345 945 9210


STAINLESS OVERSEAS: Last Shareholders Meeting Is Set for Nov. 30
----------------------------------------------------------------
Stainless Overseas' final saheholders meeting will be at 10:00 a.m. on Nov.
30, 2006, at:

          BNP Paribas Bank & Trust Cayman Limited
          3rd Floor Royal Bank House
          Shedden Road, 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:

          Piccadilly Cayman Limited
          Attn: Ellen J. Christian
          c/o BNP Paribas Bank & Trust Cayman Limited
          3rd Floor Royal Bank House
          Shedden Road, George Town
          Grand Cayman, Cayman Islands
          Tel: 345 945 9208
          Fax: 345 945 9210




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


* COSTA RICA: Recope to Complete Ethanol Pilot Project
------------------------------------------------------
Recope, the Costa Rican state oil refiner, will be completing its ethanol
pilot project that involves the gradual introduction of ethanol in the
gasoline mixture, first at a 5% concentration then proceeding to 10%, La
Nacion reports.

Recope's President Jose Leon Desanti told La Nacion that the project was on
target and that the company will still evaluate if it should be introduced
to the whole country upon completion.

The same report says that the project will be launched in 64 service
stations in the Pacific.

Mr. Desanti told La Nacion that the Environment and Energy Ministry is
currently doing a research on using other fuel sources like biodiesel.

Minister Roberto Dobles said that if nothing is done to compensate for the
growing demand of fuel, Costa Rica will consume about 20 million barrels of
fuel in 2019 compared with th 16.6 million barrels in 2005.

According to the report, car users in the country have increased to 1
million from 677,833 in 2000 and ethanol consumption could reach
approximately 153 million liters in 2018 from the expected volume of 88
million liters in 2006.

Energias Biodegradables de Costa Rica, the country's biofuels company,
started operating a production plant earlier in the year, BNamericas
relates.

                        *    *    *

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


* COSTA RICA: World Banks Mulls US$13-Million Loan to Government
----------------------------------------------------------------
The World Bank told Business News Americas that its International Bank for
Reconstruction and Development is considering the approval of a
US$13-million loan to the government of Costa Rica for the development of
the nation's telecom sector.

The loan would go to support a four-part project that Aresep, the
environment and energy ministry and national multi-service regulatory
authority, would implemented, BNamericas says, citing the project
information document or PID.

According to BNamericas, the PID predicts that appraisal authorization for
the loan could be granted on Feb. 12, 2007, and board approval granted on
Nov. 15, 2007.

BNamericas underscores that the Costa Rican government would contribute
counterpart financing of US$500,000 of its own money to the projects.

The report says that the loan has four components:

          -- the first component of the loan will allocate up to
             US$1.5 million to support the Costa Rican ministry
             in upgrading its legal and regulatory framework for
             telecommunications, as well as the creation of a
             telecommunications policy unit to provide Aresep
             with policy guidance;

          -- the second component will provide GoCR with up to
             US$1 million for upgrades of ICE, the Costa Rican
             state-owned electricity and telecom firm;

          -- the third component will set aside up to US$5.5
             million for institutional strengthening of Aresep,
             supporting its efforts to improve spectrum use
             efficiency and monitor the use of specialized
             equipment for radio spectrum management and
             monitoring; and

          -- the fourth component would contribute up to US$7.5
             million to a universal service fund aimed mainly at
             extending broadband to rural areas and low-income
             users.

BNamericas relates that the PID indicated that Aresep's telecom activities
were previously limited to regulating ICE's service quality and tariff
prices.  The new national administration would like it to become a modern
regulatory authority for the entire sector.

The third will also support the creation within Aresep of Sutel, a
specialized entity that will handle telecommunications regulation and
implementation of a market opening strategy through the competitive
selection and licensing of new operators, BNamericas notes.

BNamericas emphasizes that Aresep will also take over the radio spectrum
management and monitoring office, which is operating under the interior
ministry.

PID said that telecom improvements are badly needed in Costa Rica, which had
26.5 mobile lines per 100 inhabitants in September 2005, and 2.3 broadband
connections per 1,000 inhabitants in 2004, BNamericas relates.

According to the report, the main telecom problems of Costa Rica include:

          -- low quality of service,
          -- delay in technological and market innovation,
          -- the slow pace of investment in the sector, and
          -- uncertainty in the efficient allocation of scarce
             resources, most notably spectrum.

BNamericas reports that the projects are being proposed in a new general
telecommunications law and public telecom institutions modernization
legislation.  The two bills were presented to the parliament for approval in
October.

The Costa Rican government expects the law to be implemented next year,
BNamericas states.

                        *    *    *

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




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


* CUBA: Oil Experts Tag Oil Deal with Venezuela as Swindle
----------------------------------------------------------
Humberto Calderon Berti and Jose Toro Hardy, Venezuelan oil experts, snubbed
the oil deal between the country and Cuba as a "swindle," El Universal
reports.

The same report says that the experts summarize the deal as a "barter."

Mr. Calderon Berti told El universal that Venezuela has not received
payments from the agreed provision of 53,000 bpd of oil to Cuba that has now
exceed 100,000 bpd.  Moreover, he said that Cuba failed to provide the free
healthcare that was promised to Venezuelans.

Mr. Calderon Berti claimed Cuba's US$55 million long-term debt, with a
three-year grace period and a 15-year repayment term as a bad debt.  This
amount is part of the US$2.2 billion that is due Venezuela from its oil
exports to Cuba, El Universal says.

"Venezuela will never get this money back.  This debt is endorsed by
promissory notes issued by the National Bank of Cuba at a 2 percent interest
rate which mean nothing and have no value," Mr. Calderon Berti related to El
Universal.

Mr. Calderon Berti also stressed out that the remaining US$1.6 billion was
supposed to be paid through Cuba's free healthcares services to Venezuela,
El universal continues.

However, according to Mr. Toro Hardy, the institutions, agencies and
companies of Venezuela will have to pay for Cuban healthcare services under
the first addendum to the agreement dated
Jan. 1, 2006.  This would mean that Cuba is not giving anything to
Venezuela, El Universal says.

                        *    *    *

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




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


PETROECUADOR: Disclosing Marginal Fields Tender Winners Soon
------------------------------------------------------------
A spokesperson of Petroecuador, the state-owned oil firm of Ecuador, told
Business News Americas that the firm's special tender committee will decide
this week on the winners of the Amazonian marginal fields tender.

The marginal fields being tendered include:

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

No bids were submitted for Eno-Ron.

According to BNamericas, the fields' proven reserves totaled 120 million
barrels.  Initial development investment is estimated at US$300 million.

The committee was supposed to disclose the winners for the contracts on Nov.
23.  However, the decision was delayed due to a lack of quorum, BNamericas
reports.

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




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


MILLICOM INT: Moody's Ups Rating on US$550-Million Notes to B2
--------------------------------------------------------------
Moody's Investors Service upgraded the ratings of Millicom International
Cellular.  The ratings upgraded are:

   -- Corporate Family Rating to Ba3 from B1; and
   -- US$550 million senior notes to B2 from B3

The outlook on the ratings is stable.

The upgrade reflects the following:

   (i) the company's continued robust operational and financial
       performance;

  (ii) resolution of uncertainty associated with a potential
       change in ownership following completion of their
       strategic review;

(iii) the company's modest level of debt; e.g. on a nine month
       annualised basis Millicom was leveraged at 1.7x Total
       Debt to reported EBITDA and 0.7x on a Net Debt basis
       (both excluding licence obligations); and

  (iv) Millicom's ability to compensate revenue and EBITDA
       growth despite a loss of its Business Cooperation
       Agreement in Vietnam.

Moody's notes that the company operates in markets which exhibit heightened
political and economic risks endemic to emerging markets; e.g. the majority
of the company's revenue and EBITDA is generated in Central America.  The
second largest and the fastest growing region in terms of revenue and EBITDA
is Africa.
Moody's does not have published ratings on many of Millicom's countries of
operations in Africa.  At the same time, these markets show high growth
momentum in mobile penetration due to limited fixed line coverage, currently
relatively modest mobile penetration levels and improving macroeconomic
conditions.  Moody's believes that Millicom is well positioned to benefit
from anticipated growth in these markets over the medium term.

As of Sept. 31, 2006, the company had US$567.4 million in cash and cash
equivalents.  Moody's believes that the company is likely to use this cash
for organic growth, particularly in light of the recently increased capital
expenditure requirements, and possible buy-out of minority interests.  The
rating does not factor in any material debt financed acquisitions.  Moody's
however recognises that Millicom intends to spend approximately US$200
million over the next three years to finance its investment in Colombia
Movil S.A. through debt incurrence.  Furthermore, consolidation of Colombia
Movil in Q4 2006 will increase Millicom's debt metrics.  At the same time,
Millicom's recently announced sale of Paktel Limited will decrease its
licence obligations going forward.

Millicom is modestly leveraged at approximately 1.7x Total Debt to EBITDA on
an annualised nine months EBITDA basis (excluding approximately US$200
million in unpaid licence fees with the majority of those for Paktel
Limited).  Moody's believes that the company has to retain a relatively
modest leverage to mitigate risks associated with its operations in emerging
markets.

The outlook on the rating is stable reflecting Moody's expectations that the
company will continue to grow its revenue and EBITDA fuelled by subscriber
growth.  Furthermore, the outlook relies on the expectation that the company
will finance its growth mostly with internally generated cash flow.  At the
same time the outlook reflects an increased level of capital expenditure.
Moody's notes that Millicom has recently raised its capital expenditure
guidance for 2006 and 2007; e.g. the company expects to spend over US$700
million in 2006 and higher amount in 2007.

           What Could Change the Rating Up

   -- Continued robust operational and financial performance;
      and

   -- adherence to conservative financial policy.

          What Could Change the Rating Down

   -- Material debt financed acquisitions and shareholder
      distributions resulting in leverage metrics higher than
      2.0x Net Debt to EBITDA (excluding potential licence fees)
      on an extended basis;

   -- incurrence of material licence obligations; and

   -- deterioration in the company's operational performance due
      to risks associated with its countries of operations.

Millicom International Cellular S.A., headquartered in Luxembourg, is a
global telecommunications investor with cellular operations in Latin
America, Africa and Asia. In Q3 2006, the company generated US$402.5 million
in revenue and US$178.7 million in reported EBITDA.




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


AIR JAMAICA: Government Continuing Financial Support to Airline
---------------------------------------------------------------
The Jamaican government will have to continue its financial assistance to
Air Jamaica for sometime, Radio Jamaica reports, citing Dr. Omar Davies, the
finance minister.

Dr. Davies commented to Radio Jamaica, "My position is that we should
determine what the country is willing to put into Air Jamaica because of...
it being a strategic asset.  And then put management to work to provide you
with an airline."

Several tough decisions will have to be made on the way forward for Air
Jamaica, Dr. Davies told Radio Jamaica.  The minister said that the
airline's route structure will be the main area of focus.

Air Jamaica could save over one billion dollars under an upcoming plan to
change its fleet of aircraft, Radio Jamaica says, citing Dr. Davies.

As reported in the Troubled Company Reporter-Latin America on Nov. 8, 2006,
Air Jamaica considered replacing its modern fleet of Airbus aircraft with
old Boeing 737-300s and 757s to reduce costs and stem its losses.  Air
Jamaica planned to replace A320/321s with the 22-year-old 737-300 and 757s.
The airline would retain two A340s, as no 767 replacements are available.
The replacement of aircrafts was part of a plan Air Jamaica presented to the
Cabinet's sub-committee to revive financially troubled Air Jamaica.

Dr. Davies told Radio Jamaica that Air Jamaica expects US$25 million savings
in the region.  The minister assured that the airline's safety record would
not be compromised.

Air Jamaica will present a full report on its future during a meeting with
the Parliamentary Committee this 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.


CALDON FINANCE: Nicole Ann Fullerton's J$6-Million Bail Extended
----------------------------------------------------------------
Nicole Ann Fullerton -- former acting operations manager of
Caldon Merchant, Caldon Finance's main unit -- had her J$6-million bail
extended after appearing in the Corporate Area Resident Magistrate's Court
to answer to an allegation of violating the Jamaican Bail Act, Jamaica
Observer reports.

As reported in the Troubled Company Reporter-Latin America on Nov. 24, 2006,
Ms. Fullerton allegedly tried leaving Jamaica to escape pending court
decision on a fraud complaint filed against her.  Ms. Fullerton allegedly
defrauded Colin Karjohn -- a St. Catherine businessman -- of US$15 million
in 1998, investing it on Caldon Finance.  Mr. Karjohn had given Ms.
Fullerton and her father, former Caldon Finance chief Henry Fullerton, the
amount to invest in government treasury bills.  Ms. Fullerton was found
guilty of three counts of fraud on Nov. 20 and was awaiting sentence set for
Dec. 14, when she was arrested at the Norman Manley International Airport
trying to board a plane headed for the United States.  Ms. Fullerton was
released on Nov. 22.  Senior magistrate Judith Pusey ordered that Ms.
Fullerton surrender her travel documents.  Ms. Pusey also imposed a stop
order.

The Observer relates that Ms. Pusey ordered Ms. Fullerton not to leave
Jamaica before Dec. 14.

Jacqueline Samuels-Brown, the legal representative of Ms. Fullerton, had
argued that a magistrate had ruled that her client be given back her travel
documents.  She said that the police's arrest of Ms. Fullerton was a breach
of her client's rights, The Observer notes.

Ms. Fullerton had successfully applied to the court for her travel documents
to be returned indefinitely on Oct. 23, 2001, and since that time she has
traveled overseas at least 10 times.  Ms. Fullerton had voluntarily given
her travel documents to the police when she was first arrested in 1999, The
Observer says, citing Ms. Samuels-Brown.

According to The Observer, Ms. Samuels-Brown presented documents and court
records before the court.

The Observer underscores that Paula Llewelyn, the senior prosecutor, had
earlier asked the court to hold Ms. Fullerton in custody as she was a flight
risk who had applied for a new passport and visa after she handed her
expired passport to the court's office.

"No report was made by Fullerton that she had a new passport.  Having been
convicted of a serious crime where the presumption of innocence had been
thrown out neither Miss Fullerton nor her attorney had indicated that she
would be traveling the next day," The Observer states, citing Ms. Llewelyn.

Caldon Finance collapsed after Dr. Omar Davies, Jamaica's
Minister of Finance and Planning, suspended the operations of
its main unit -- Caldon Finance Merchant Bank -- and installed a
temporary manager.  Efforts to liquidate Caldon Finance are
still being made.  Reports say that the completion of the
process could take a while due to a number of outstanding court
cases involving the firm's assets.  Raphael Gordon, the
company's liquidator, said that until the issues are dealt with,
the liquidation would remain a work in progress especially as it
relates to secured creditors.


COURTS (JAMAICA): Cobalt Takeover Won't Affect Employees
--------------------------------------------------------
Courts (Jamaica) workers won't be affected by Cobalt Holding Co. Ltd.'s
takeover of the firm's operations, Radio Jamaica reports.

Trinidad and Tobago Express relates that the rights of all Courts (Jamaica)
employees are fully safeguarded.  The company will continue to be run by the
existing management team under the leadership of a regional corporate
executive.

Cobalt Holding told Radio Jamaica that it will operate Courts (Jamaica) as a
long-term going concern, strengthening operational and strategic links with
the Caribbean and developing similar links with its sister operations in
Central America.

Courts (Jamaica) is Courts UK's flagship operation in the Caribbean.  The
parent company, Courts UK, collapsed under the weight of a GBP280-million
debt burden in 2004.  The Courts UK board said in 2004 that it had been
informed that the principal lenders refused to grant waivers for the
covenant breaches likely to occur.  The lenders also decided not to provide
immediate additional funding required.

The losses did not carry over into is operations in 20 nations outside of
the United Kingdom.  The Cohen family -- the principal owners of the Courts
brand -- was removed from the board.   KPMG, the lead administrator, put up
Courts' overseas assets on sale.


SUGAR COMPANY: Names New Executives for Industrial Relations
------------------------------------------------------------
The Sugar Company of Jamaica has appointed a new team of executives to deal
with industrial disputes, in an effort to eliminate disruptions at its sugar
factories, Radio Jamaica reports.

Radio Jamaica relates that the decision was made when Sugar Company
officials and Clarendon Parish Development Committee members met on Nov. 22.

Robert Levy, the chairperson of the Sugar Company, told Radio Jamaica that
five new executives will be named to guarantee that the 2006 and 2007
harvest proceeds smoothly.

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




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


MOVIE GALLERY: Moody's Eyes Downgrade Due to 10-Q Filing Delay
--------------------------------------------------------------
Moody's Investors Service placed the long term ratings of Movie Gallery Inc.
on review for possible downgrade following the company's announcement that
it would not be able to file it third quarter 10-Q with the U.S. Securities
and Exchange Commission on a timely basis.

The on review for downgrade reflects the risk that the company could be
served with a notice of default under its bond indenture as a result of the
delayed filing.

The speculative grade liquidity rating is affirmed at SGL-4.

These ratings are placed on review for possible downgrade:

   -- Corporate family rating at Caa1;
   -- Probability of default rating at B3;
   -- Senior secured credit facilities at B3, LGD-3-41%;
   -- Senior unsecured guaranteed notes at Caa2, LGD5-88%.

This rating is affirmed:

   -- Speculative grade liquidity rating at SGL-4.

On Nov. 14, 2006 the company announced that it is postponing the filing of
its third quarter report on form 10-Q with the SEC as a result of a review
by its independent auditor into its accounting treatment for end of term
store lease obligations to ensure compliance with SFAS 143.

The five-day grace period for the quarterly filing with the SEC expired on
Nov. 20, 2006.  As a result, the company is at risk for receiving notice of
an Event of Default by either the trustee of 25% of the bondholders.  The
company has 45 days to cure such default.  Should the company not be able to
cure the Default within the 45 day grace period it will trigger the
company's cross default provisions in its bank credit agreement resulting in
all the debt becoming due and payable.

Moody's review will focus on the outcome of the independent auditors review,
the timing of the company's filing of its 10Q, and whether the trustee of
25% of the bondholders under the indenture issues a notice of default.

Movie Gallery, headquartered in Dothan, Alabama, is a provider of in-home
movie and game entertainment in the United States. It operates over 4,650
stores in the United States, Canada, and Mexico under the Movie Gallery,
Hollywood Entertainment, Grame Crazy, and VHQ banners.  Pro forma revenues
for fiscal year 2005 were US$2.6 billion.


PIER 1 IMPORTS: Sells Pier 1 National Bank to Chase for US$155MM
----------------------------------------------------------------
Pier 1 Imports Inc., through its subsidiaries, has completed the sale of its
private-label credit card operations to Chase Bank U.S.A. N.A. for
approximately US$155 million.

Under the terms of the purchase and sale agreement, Chase acquired Pier 1
National Bank and its private-label credit card accounts in addition to the
outstanding balances associated with the accounts. The Company received
approximately US$155 million in cash at closing.

Pier 1's private-label credit card portfolio includes receivables of
approximately US$140 million and nearly one million active accounts.  The
Pier 1 Preferred Card will continue to be offered through Chase under the
Pier 1 brand.

In addition, the two companies entered into a long-term agreement in which
Chase will provide credit and customer service benefits to Pier 1
cardholders and will offer special financing terms to Pier 1 customers.  The
Company will receive future ongoing payments based on credit card sales, new
account generation and other credit and account related activities.  Pier 1
and Chase will work together on various marketing initiatives designed to
increase Pier 1's sales and further enhance credit growth and profitability.

Based in Fort Worth, Texas, Pier 1 Imports Inc. (NYSE:PIR)
-- http://www.pier1.com/-- is a specialty retailer of imported decorative
home furnishings and gifts with Pier 1 Imports(R) stores in 49 states,
Puerto Rico, Canada, and Mexico, and Pier 1 kids(R) stores in the United
States.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 26, 2006,
Moody's Investors Service downgraded Pier 1's corporate family rating to B3
from B1 following continued degradation in same store sales, which have
resulted in modest operating results and negative free cash flow.  Moody's
said the rating outlook is stable.


TV AZTECA: Shareholders Get US$495MM Accumulated Distributions
--------------------------------------------------------------
TV Azteca, S.A. de C.V. made a US$22 million cash distribution to
shareholders, equivalent to US$0.007 per CPO.

TV Azteca Shareholders' Meetings held on Feb. 20 and April 28 approved
distributions for a total amount of US$90 million to be paid during 2006,
which includes today's payment and a previous one for US$68 million made on
May 23, 2006.

The cash disbursement is part of the company's ongoing plan to allocate a
substantial portion of TV Azteca's cash generation to shareholder
distributions of over US$500 million within a six-year period that began in
June 2003.

The distributions under the cash-usage plan made to date represent an
aggregate amount of US$495 million, equivalent to a 24% yield based on the
Nov. 21, 2006, CPO closing price.

Previous payments include:

   -- US$125 million on June 30, 2003;
   -- US$15 million on Dec. 5, 2003;
   -- US$33 million on May 13, 2004;
   -- US$22 million on Nov. 11, 2004;
   -- US$130 million on Dec. 14, 2004;
   -- US$59 million on June 9, 2005;
   -- US$21 million on Dec. 1, 2005; and
   -- US$68 million on May 23, 2006.

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

                        *    *    *

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


* BENITO JUAREZ: Moody's Releases Joint Default Analysis
--------------------------------------------------------
In connection with Moody's Investors Service published rating results of the
application of the joint default analysis or JDA methodology for non-U.S.
regional and local governments or RLGs in the Americas, the rating agency
affirmed the Municipality of Benito Juarez's issuer ratings at B2 and
Ba2.mx, with a stable outlook.

The rating is based on:

   -- a BCA of 16,
   -- Ba1 rating on the State of Quintana Roo.
   -- 20% probability of support and
   -- 70% default dependence.

Moody's also affirmed the senior secured debt ratings at Ba1/A1.

In October 2006, Moody's published a Special Comment report, entitled "The
Application of Joint Default Analysis to Regional and Local Governments".
The JDA methodology formally disaggregates the ratings of RLGs into four
components:

   (i) an assessment of the RLG's baseline credit risk
       (on a scale of 1 to 21, where 1 represents the equivalent
       risk of Aaa, 2 represents Aa1 and so forth),

  (ii) the higher-tier or supporting government's domestic
       currency rating,

(iii) an estimate of the default dependence between the RLG and
       the supporting government (expressed as a percentage),
       and

  (iv) an estimate of the likelihood of extraordinary support
       from the supporting government (expressed as a
       percentage).

The application of JDA in the Americas resulted in 24 RLG ratings upgraded,
75 RLG ratings affirmed, and ratings on 2 associated entities upgraded.

As a reflection of the application of JDA to government related issuers
(GRIs), for which certain RLGs are the supporting governments, Moody's also
raised the ratings on 6 GRIs.


* COALCALCO: Moody's Releases Joint Default Analysis
----------------------------------------------------
In connection with Moody's Investors Service published rating results of the
application of the joint default analysis or JDA methodology for non-U.S.
regional and local governments or RLGs in the Americas, the rating agency
affirmed the Municipality of Coacalco's issuer ratings at B1 and Baa2.mx,
with a stable outlook.

The rating is based on:

   -- a BCA of 14,
   -- Ba3 rating on the State of Mexico,
   -- 20% probability of support and,
   -- 90% default dependence.

In October 2006, Moody's published a Special Comment report, entitled "The
Application of Joint Default Analysis to Regional and Local Governments".
The JDA methodology formally disaggregates the ratings of RLGs into four
components:

   (i) an assessment of the RLG's baseline credit risk
       (on a scale of 1 to 21, where 1 represents the equivalent
       risk of Aaa, 2 represents Aa1 and so forth),

  (ii) the higher-tier or supporting government's domestic
       currency rating,

(iii) an estimate of the default dependence between the RLG and
       the supporting government (expressed as a percentage),
       and

  (iv) an estimate of the likelihood of extraordinary support
       from the supporting government (expressed as a
       percentage).

The application of JDA in the Americas resulted in 24 RLG ratings upgraded,
75 RLG ratings affirmed, and ratings on 2 associated entities upgraded.

As a reflection of the application of JDA to government related issuers
(GRIs), for which certain RLGs are the supporting governments, Moody's also
raised the ratings on 6 GRIs.


* COATZACOALCOS: Moody's Releases Joint Default Analysis
--------------------------------------------------------
In connection with Moody's Investors Service published rating results of the
application of the joint default analysis or JDA methodology for non-U.S.
regional and local governments or RLGs in the Americas, the rating agency
affirmed the Municipality of Coazacoalcos' issuer ratings at Ba1 and A1.mx,
with a stable outlook.

The rating is based on:

   -- a BCA of 11,
   -- Ba1 rating on the State of Veracruz,
   -- 20% probability of support and,
   -- 90% default dependence.

In October 2006, Moody's published a Special Comment report, entitled "The
Application of Joint Default Analysis to Regional and Local Governments".
The JDA methodology formally disaggregates the ratings of RLGs into four
components:

   (i) an assessment of the RLG's baseline credit risk
       (on a scale of 1 to 21, where 1 represents the equivalent
       risk of Aaa, 2 represents Aa1 and so forth),

  (ii) the higher-tier or supporting government's domestic
       currency rating,

(iii) an estimate of the default dependence between the RLG and
       the supporting government (expressed as a percentage),
       and

  (iv) an estimate of the likelihood of extraordinary support
       from the supporting government (expressed as a
       percentage).

The application of JDA in the Americas resulted in 24 RLG ratings upgraded,
75 RLG ratings affirmed, and ratings on 2 associated entities upgraded.

As a reflection of the application of JDA to government related issuers
(GRIs), for which certain RLGs are the supporting governments, Moody's also
raised the ratings on 6 GRIs.


* CUAUTITLAN IZCALILI: Moody's Releases Joint Default Analysis
--------------------------------------------------------------
In connection with Moody's Investors Service published rating results of the
application of the joint default analysis or JDA methodology for non-U.S.
regional and local governments or RLGs in the Americas, the rating agency
affirmed the Municipality of Cualitian Izcalili's issuer ratings at Ba3 and
A3.mx, with a stable outlook.

The rating is based on:

   -- a BCA of 13,
   -- Ba3 rating on the state of Mexico,
   -- 20% probability of support and,
   -- 90% default dependence.

In October 2006, Moody's published a Special Comment report, entitled "The
Application of Joint Default Analysis to Regional and Local Governments".
The JDA methodology formally disaggregates the ratings of RLGs into four
components:

   (i) an assessment of the RLG's baseline credit risk
       (on a scale of 1 to 21, where 1 represents the equivalent
       risk of Aaa, 2 represents Aa1 and so forth),

  (ii) the higher-tier or supporting government's domestic
       currency rating,

(iii) an estimate of the default dependence between the RLG and
       the supporting government (expressed as a percentage),
       and

  (iv) an estimate of the likelihood of extraordinary support
       from the supporting government (expressed as a
       percentage).

The application of JDA in the Americas resulted in 24 RLG ratings upgraded,
75 RLG ratings affirmed, and ratings on 2 associated entities upgraded.

As a reflection of the application of JDA to government related issuers
(GRIs), for which certain RLGs are the supporting governments, Moody's also
raised the ratings on 6 GRIs.


* MUNICIPALITY OF COLIMA: Moody's Issues Joint Default Analysis
---------------------------------------------------------------
In connection with Moody's Investors Service published rating results of the
application of the joint default analysis or JDA methodology for non-U.S.
regional and local governments or RLGs in the Americas, the rating agency
affirmed the Municipality of Colima's issuer ratings at Ba3 and A3.mx, with
a stable outlook.

The rating is based on:

   -- a BCA of 13,
   -- the credit risk profile of the State of Colima,
   -- 20% probability of support and,
   -- 90% default dependence.

In October 2006, Moody's published a Special Comment report, entitled "The
Application of Joint Default Analysis to Regional and Local Governments".
The JDA methodology formally disaggregates the ratings of RLGs into four
components:

   (i) an assessment of the RLG's baseline credit risk
       (on a scale of 1 to 21, where 1 represents the equivalent
       risk of Aaa, 2 represents Aa1 and so forth),

  (ii) the higher-tier or supporting government's domestic
       currency rating,

(iii) an estimate of the default dependence between the RLG and
       the supporting government (expressed as a percentage),
       and

  (iv) an estimate of the likelihood of extraordinary support
       from the supporting government (expressed as a
       percentage).

The application of JDA in the Americas resulted in 24 RLG ratings upgraded,
75 RLG ratings affirmed, and ratings on 2 associated entities upgraded.

As a reflection of the application of JDA to government related issuers
(GRIs), for which certain RLGs are the supporting governments, Moody's also
raised the ratings on 6 GRIs.


* STATE OF CHIAPAS: Moody's Issues Joint Default Analysis
---------------------------------------------------------
In connection with Moody's Investors Service published rating results of the
application of the joint default analysis or JDA methodology for non-U.S.
regional and local governments or RLGs in the Americas, the rating agency
affirmed the State of Chiapas' issuer ratings at Ba2 and A2.mx, with a
stable outlook.

The rating is based on:

   -- a BCA of 12,
   -- Baa1 rating on the Government of Mexico,
   -- 54% probability of support and,
   -- 90% default dependence.

In October 2006, Moody's published a Special Comment report, entitled "The
Application of Joint Default Analysis to Regional and Local Governments".
The JDA methodology formally disaggregates the ratings of RLGs into four
components:

   (i) an assessment of the RLG's baseline credit risk
       (on a scale of 1 to 21, where 1 represents the equivalent
       risk of Aaa, 2 represents Aa1 and so forth),

  (ii) the higher-tier or supporting government's domestic
       currency rating,

(iii) an estimate of the default dependence between the RLG and
       the supporting government (expressed as a percentage),
       and

  (iv) an estimate of the likelihood of extraordinary support
       from the supporting government (expressed as a
       percentage).

The application of JDA in the Americas resulted in 24 RLG ratings upgraded,
75 RLG ratings affirmed, and ratings on 2 associated entities upgraded.

As a reflection of the application of JDA to government related issuers
(GRIs), for which certain RLGs are the supporting governments, Moody's also
raised the ratings on 6 GRIs.




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


* NICARAGUA: Aims to Boost Listings on National Stock Exchange
--------------------------------------------------------------
Nicaragua is expanding its capital markets regulation to boost listings on
the national stock exchange, LatinLawyer Online reports.

According to LatinLawyer, a new law that will be implemented on Dec. 15 will
set out rules for previously unregulated areas:

          -- credit rating,
          -- public offerings, and
          -- financing of securitization and investment funds.

Ernesto Rizo Pallais -- a representative of Nunez Rizo Zambrana & Arguello,
who advised the Nicaraguan Stock Exchange during the drafting process --
told LatinLawyer that the law, which was published on Nov. 15, will stir up
interest in Nicaragua's financial markets.

LatinLawyer relates that the Nicaraguan congress accepted in October
President Enrique Bolanos' amendments to the law.  He had vetoed tax havens
for investors in the energy, roads and tourism sectors, as exemptions for
capital market and stock exchange investors would compromise the nation's
program with the International Monetary Fund.

The report says that Mr. Pallais and his team spent some time negotiating
with banks and the stock exchange over some of the law's articles.

"The banks had a problem with tying up repurchase agreements exclusively
through the stock exchange.  In the end it was decided that those agreements
made initially through a public offering should be settled through an
authorized exchange, but those made privately could be dealt with by
financial institutions," Mr. Pallais told LatinLawyer.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

                     Rating     Rating Date

   Long Term          Caa1     June 30, 2003
   Senior Unsecured
   Debt                B3      June 30, 2003


* NICARAGUA: State Firm Mulling Offers for Two Power Projects
-------------------------------------------------------------
Rafael Bermudez -- general manager at Gecsa, the generation unit of
Nicaraguan state power firm Enel -- told Business News Americas that Enel is
analyzing expressions of interest for two power supply projects.

BNamericas relates that two groups presented offers to Enel on Oct. 18,
proposing to supply up to 100 megawatts of power.  Five groups also proposed
to supply 20 megawatts.

Mr. Bermudez told BNamericas that Enel has 10 days to decide on the offers.
The process, however, is taking a bit longer due to Nicaragua's electoral
climate caused by the Nov. 5 presidential and legislative elections.

BNamericas underscores that Enel gave potential bidders three options:

          -- to supply the power via a diesel power supply barge
             at Corinto port on the Pacific;

          -- to supply the power via modular power supply plants
             at Los Brasiles substation; and

          -- to supply the power via plants at Las Brisas in
             Managua department.

According to BNamericas, the groups chose to supply power through the barge.
The contract will run five years with the possibility of extending it for
the same period.  The winner must start power supply within 120 days.  Enel
will buy the power through Gecsa.

BNamericas notes that the 20-megawatt would be supplied from diesel or
bunker sources for one year under a lease accord.  The power, which must
start to be supplied within 60 days, would satisfy peak demand.

The power supply contracts are aimed at alleviating the Nicaragua's energy
crisis, BNamericas states.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

                     Rating     Rating Date

   Long Term          Caa1     June 30, 2003
   Senior Unsecured
   Debt                B3      June 30, 2003




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


GRUPO BANISTMO: HSBC's Offer Gets 99.85% Acceptance
---------------------------------------------------
HSBC said in a press release that its tender offer for 100% of Grupo
Banistmo's outstanding shares has ended with a 99.85% acceptance rate.

Business News Americas relates that HSBC Asia Holding launched on Sept. 20 a
cash tender offer for Grupo Banistmo at US$1.77 billion or US$52.63 per
share.

The acceptance period for the tender offer ended on Nov. 22, BNamericas
reports.

Panamanian bank Primer Banco del Istmo (Banistmo) started
operations in September 1984 under the name Banco del Istmo.
Banistmo is the country's largest bank and also one of the
biggest financial institutions in Central America.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
July 25, 2006, Moody's Investors Service placed the Ba1/Not
Prime long- and short-term deposit ratings of Primer Banco del
Istmo, SA aka Banistmo on review for possible upgrade.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
July 25, 2006, Standard & Poor's Ratings Services placed its
'BB+/B' counterparty credit rating on Primer Banco del Istmo SA
aka Banistmo on CreditWatch with positive implications.  S&P has
also placed its 'BB/B' counterparty credit rating on Banco
Salvadoreno SA on CreditWatch with positive implications and
affirmed its ratings on HSBC Holdings PLC (HSBC) and related
entities, including the 'AA-/A-1+' counterparty credit rating on
HSBC, with a stable outlook.




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


MULTICANAL SA: Sees 70% Coverage in Asuncion by End of Next Year
----------------------------------------------------------------
Guillermo Valente, chief executive officer of Multicanal SA, told Ultima
Hora that the company expects to cover almost 70% of homes in Asuncion,
Paraguay, by the end of 2007.

Multicanal is covering almost 1,000 blocks in Asuncion with cablemodem
technology.  Multicanal is also offering wireless broadband, covering all
metropolitan area although the cost of connection of the service is higher
than the cablemodem service, Business News Americas relates, citing Mr.
Valente.

"We are the only company offering cablemodem technology in Paraguay," Mr.
Valente told BNamericas.

Multicanal SA -- http://www.multicanal.com.ar/-- is an
Argentinean multiple cable systems operator with its principal operations in
Argentina and smaller operations in Uruguay and
Paraguay.  Grupo Clarin SA owns Multicanal.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on July 14, 2006,
the Argentine arm of Standard & Poor's assigned these ratings on Multicanal
SA based on its financial results for the period ended Mar. 31, 2006:

   -- Serie E of Obligaciones Negociables for US$175 million,
      included under the program for US$1.050 billion:

      * Last due: April 15, 2009
      * Rate: raD

   -- Serie J of the ON for US$144 million, included under the
      ON program for US$1.050 billion:

      * Last due: no date
      * Rate: raD

   -- Obligaciones Negociables simples, with due in 10 years for
      US$125 million:

      * Last due: Feb. 1, 2007
      * Rate: raD

   -- Obligaciones Negociables simples, with due in 5 years for
      US$125 million:

      * Last due: Feb. 1, 2002
      * Rate: raD

   -- SERIE C, for US$150 million, under the US$1.05 billion
      program:

      * Last due: April, 15, 2018
      * Rate: raD


* PARAGUAY: Inks Air Services Accord with United Arab Emirates
--------------------------------------------------------------
Paraguay has signed an Open Sky Air Services Agreement or ASA and Memorandum
of Understanding with the United Arab Emirates.

Jesus Cesar Rios Rabello, deputy director of Air Transport and International
Affairs at Paraguay's National Directorate of Civil Aviation signed the
agreement with Ahmed Muhammed Al Hddabi, deputy director general of the
Genearl Civil Aviation Authority or GCAA in the UAE, on the sidelines of the
XVII ordinary Assembly of the Latin American Civil Aviation Commission held
in Panama city from Nov. 6 to 10.

The agreement includes:

          -- unlimited capacities,

          -- numbers of frequencies and routes,

          -- any types of aircraft whether owned or leased that
             are run by designated airlines of both countries
             for passenger and cargo services, and

          -- the practice of the third, fourth, fifth, sixth and
             seventh freedoms on all points without specifying
             or providing any type of air traffic services.

It is known that international air transport is governed by the principle of
national sovereignty, and this places legal restrictions on air traffic.  To
remove these restrictions, liberalization involves establishing a number of
'freedoms' as defined in international agreements.

Mohammed Ghanem Al Ghaith, director general of the GCAA, said the agreement
with the Paraguay government was part of agreements and Memorandum of
Understanding that will be signed with a number of Latin American countries.

Mr. Ghaith stated, "The growth and fast expansion of our national carriers
necessitate that we open new routes that meet the current and future
requirements of our market.  That will encourage the tourism sector and
investments between the UAE and Latin America."

The UAE was the only Arab country invited to take part in the ordinary
Assembly of the Latin American Civil Aviation Commission.  The UAE
delegation presented a detailed view of the development of the civil
aviation and air transport sector in the UAE.

A number of meetings were held between civil aviation officials in Latin
American countries and the president of the ICAO.  The delegation also
hosted a gala dinner to which Latin American civil aviation presidents and
directors of were invited.

                        *    *    *

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: Regulator Orders Fixed Line Service Rates Reduction
-----------------------------------------------------------
Osiptel, the Peruvian government's regulatory agency, told MarketWatch that
it had ordered telephone companies to decrease rates for fixed-line services
in December.

Osiptel told MarketWatch that a basket of rates that includes a monthly
charge and a per-minute charge will need to decrease by at least 2.59% on
average.  Installation charges will drop 2.62% on average, while long
distance charges will decline an average 2.07%.

The rate reductions will benefit 589,000 users, MarketWatch says, citing the
government.

According to MarketWatch, Osiptel ordered the rates reduction in line with a
factor-of-productivity plan that establishes a framework for Telefonica del
Peru, Telefonica SA's Peruvian unit, to promote efficiency.

Telefonica del Peru offers almost all the fixed-line services in Peru.  The
company was created in 1994 after Telefonica purchased the government's
telephone services for US$2 billion, MarketWatch notes.

The government has been applying the factor of productivity in setting rates
since September 2001, MarketWatch states.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 22, 2006, Standard &
Poor's Ratings Services raised its long-term foreign currency sovereign
credit rating on the Republic of Peru to 'BB+' from 'BB' and its long-term
local currency sovereign credit rating to 'BBB-' from 'BB+'.  Standard &
Poor's also raised its short-term local currency sovereign credit rating to
'A-3' from 'B', and affirmed its 'B' short-term foreign currency sovereign
credit rating on the republic.  The outlook on the ratings was revised to
stable from positive.  Standard & Poor's also raised its assessment of the
risk of transfer and convertibility to 'BBB' from 'BBB-'.




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


MUSICLAND HOLDING: ACE Group & ESIS Balk at Disclosure Statement
----------------------------------------------------------------
Pacific Employers Insurance Company, ACE American Insurance
Company and other members of the ACE group of companies provided insurance
coverage to Musicland Holding Corp. and its debtor-affiliates under various
insurance policies from July 1, 2000, through March 1, 2004.  The Policies
were issued pursuant to high deductible program agreements, which required
the insureds' obligations under the Policies to be secured by the
collateral.

The Insurance Policies and Program Agreements required the
Debtors to retain a third-party claims administrator, ESIS, Inc., to
administer, investigate, settle or defend claims.

Karel S. Karpe, Esq., at White & Williams LLP, in New York, contends that
the Second Amended Plan of Liquidation does not explain how the Debtors'
ongoing obligations, including any cure payments, under their Agreements
will be satisfied.

ACE Group and ESIS oppose the Plan to the extent that:

   (a) it does not clearly indicate whether or not their
       Insurance Policies and related Agreements will be assumed
       or rejected;

   (b) there are no provisions, which preserve their rights
       under the Insurance Policies, the related Agreements and
       applicable law;

   (c) the proposed Dispute Resolution Procedures violate their
       duties and the right to defend claims against the Debtors
       and to arbitrate disputes with the Debtors;

   (d) the Plan may prevent them from investigating,
       administering, settling and defending claims that may be
       covered under the Insurance Policies;

   (e) the claim estimation under the Plan may allow estimated
       claim amount under Section 502(c) of the Bankruptcy Code
       to resolve claims under the Insurance Policies, of which
       the Insurance Policies do not provide for; and

   (f) the Plan does not include the language set forth in the
       Disclosure Statement that nothing in the Proposed Plan
       should be deemed to alter or amend the terms and
       conditions of the Insurance Policies.

The Plan should clearly state that ACE Group and ESIS could perform the
related Agreements without violating the release and discharge injunction
provisions, Ms. Karpe asserts.

Thus, ACE Group and ESIS ask the Court to deny the Plan unless the
objections raised are resolved.

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


MUSICLAND HOLDING: Voting Tabulation for Impaired Classes
---------------------------------------------------------
James A. Stempel, Esq., at Kirkland & Ellis LLP, in Chicago,
Illinois, filed with the U.S. Bankruptcy Court for the Southern District of
New York a certification regarding the solicitation and tabulation of votes
in connection with Musicland Holding Corp. and its debtor-affiliates' Second
Amended Joint Plan of Liquidation.

Upon review of the Ballot Tabulation Report submitted by BMC
Group, Inc., with regard to the tabulation of votes to accept or reject the
Plan, Mr. Stempel presents a summary of the voting tabulation for impaired
classes entitled to vote on the Plan:

                          Accept                 Reject

Impaired Class      Votes                   Votes
and Description    Counted     Amount      Counted    Amount

Class 3 Secured       10    US$142,483,707       0        US$0
Trade Claim         (100%)      (100%)        (0%)        (0%)

Class 4 General      552     US$60,311,250     23 US$1,071,255
Unsecured Claim      (96%)      (98%)         (4%)      (2%)
                   =======  ============   =======  ==========

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




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


BRITISH WEST: Union Says New Airline Employing 500 Workers
----------------------------------------------------------
The Aviation Communication and allied Workers Union or ACAWU told Newsday
that the Caribbean Airlines, which will take the place of British West
Indies Airlines or BWIA next year, will hire 500 workers while outsourcing
several operations to other firms.

ACAWU had obtained information indicating that Caribbean Airlines would be a
much smaller airline compared to BWIA, Newsday says, citing Curtis John, the
union's president.

Mr. John explained to Newsday that ACAWU received word from reliable sources
that BWIA's 1,800 workers will be reduced to 500 employees for Caribbean
Airlines.

Caribbean Airlines needs certain key departments to start operating on Jan.
1, 2007, Newsday says, citing Mr. John.  ACAWU believes the 500 workers that
will be retained will mainly include:

          -- engineers,
          -- maintenance staff,
          -- flight attendants,
          -- pilots, and
          -- managers to oversee each of these categories of
             workers.

Mr. John told Newsday that 500 workers were insufficient to successfully
operate a commercial airline.  ACAWU believes Caribbean Airlines plans to
engage the services of contract workers to do some of the former operations
of BWIA.

BWIA has not been meeting with ACAWU to give any details about the ongoing
recruitment exercise for Caribbean Airlines or how many BWIA workers were
rehired for the new airline, Mr. John admitted to Newsday.

Mr. John told Newsday that ACAWU received word that accounting and other
clerical services at BWIA have been contracted out to an Indian firm.
Newspaper advertisements within recent weeks for customer service agents
meant that another firm may have been recruited to provide those services.
There is no word on what is being done with respect to divisions like BWIA's
cargo department.

What is now happening at BWIA is the resurrection of an old plan shelved
during the time of Conrad Aleong -- the former BWIA chief executive
officer -- that considered restructuring BWIA into entities called BWIA
International and BWIA Express but outsourcing the rest of the airline's
operations.

Mr. John told Newsday that the accord between Caribbean Airlines and British
Airways for the latter to begin service from Port-of-Spain to London's
Gatwick Airport from March 28, 2007, meant a loss in revenue.  He said that
the agreement was a bad move as this will bring 40% of revenues that
Caribbean Airlines would have earned on the route to British Airways.

The agreement was something ACAWU had been warning about for some time and
no airline earns money for routes that it does not fly.  The agreement will
also allow British Airways to serve Barbados and Antigua, Newsday states,
citing Mr. John.

The agreement will cause Caribbean Airlines loses in revenues for not flying
Barbados and Antigua routes, Mr. John commented to Newsday.

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

The airline was losing US$1 million a week due to poor operational
management.

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




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


* URUGUAY: Launches Web Portal to Group All State Web Sites
-----------------------------------------------------------
The local government of Uruguay said in a statement that it has worked with
Antel, the nation's state-owned telecom firm, to launch a web portal aimed
at grouping all state websites.

Business News Americas relates that the Web portal will provide people a new
channel of communication with public bodies.  Citizens will be able to pay
for services through Internet, among other services.  Uruguayans will be
able to obtain or renew different documents like identification cards.

According to BNamericas, the portal will have an area for firms and another
one for citizens.

The portal will also entitle different public entities to integrate various
information, the government told BNamericas.

                        *    *    *

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




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


PETROLEOS DE VENEZUELA: Expenses Totaling US$64 Billion in 2007
---------------------------------------------------------------
The quasi-fiscal expenses -- the special funds managed by state-run
Petroleos de Venezuela -- as well as the expenses of the Venezuelan
government's Executive Branch and will amount to US$64 billion next year,
exceeding a 100% increase in four years, El Universal reports.

El Universal relates that Venezuelan revenues will continue to increase in
2007, allowing the Executive Branch to continue to boost expenses.

The Venezuelan government's economic policies in 2007 will be the same with
those in 2006, as expenses will continue to increase and the official
exchange is likely to be adjusted up by 7%, El Universal says, citing
Francisco Vivancos, an economist.

Mr. Vivancos told El Universal that price controls and regulated interest
rates would continue in force.  There will be no changes on the policies.

The Venezuelan economy would continue to increase.  The sectors of banking,
construction and communications are to lead an expansion, El Universal
states, citing Mr. Vivancos.

Petroleos de Venezuela SA -- http://www.pdv.com/-- 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.  The company has a commercial office in China.

                        *    *    *

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


* VENEZUELA: Oil Experts Reject Cuba Oil Deal as Swindle
--------------------------------------------------------
Humberto Calderon Berti and Jose Toro Hardy, Venezuelan oil experts, snubbed
the oil deal between the country and Cuba as a "swindle," El Universal
reports.

The same report says that the experts summarize the deal as a "barter."

Mr. Calderon Berti told El universal that Venezuela has not received
payments from the agreed provision of 53,000 bpd of oil to Cuba that has now
exceed 100,000 bpd.  Moreover, he said that Cuba failed to provide the free
healthcare that was promised to Venezuelans.

Mr. Calderon Berti claimed Cuba's US$55 million long-term debt, with a
three-year grace period and a 15-year repayment term as a bad debt.  This
amount is part of the US$2.2 billion that is due Venezuela from its oil
exports to Cuba, El Universal says.

"Venezuela will never get this money back.  This debt is endorsed by
promissory notes issued by the National Bank of Cuba at a 2 percent interest
rate which mean nothing and have no value," Mr. Calderon Berti related to El
Universal.

Mr. Calderon Berti also stressed out that the remaining US$1.6 billion was
supposed to be paid through Cuba's free healthcares services to Venezuela,
El universal continues.

However, according to Mr. Toro Hardy, the institutions, agencies and
companies of Venezuela will have to pay for Cuban healthcare services under
the first addendum to the agreement dated
Jan. 1, 2006.  This would mean that Cuba is not giving anything to
Venezuela, El Universal says.

                        *    *    *

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


* VENEZUELA: Officially Withdrawing from G-3 Trade Bloc
-------------------------------------------------------
The Venezuelan Foreign Ministry disclosed that the Bolivarian Republic of
Venezuela has officially withdrawn from the regional G-3 trade bloc with
Colombia and Mexico, confirming President Hugo Chavez' decision in May, The
Associated Press reports.

Pres. Chavez announced in May that Venezuela would pull out from the G-3
trade bloc and chose to join the Mercosur trade bloc with Argentina, Brazil,
Paraguay and Uruguay.

According to the AP, Venezuela needed to wait for 180 days before it would
be formally pulled out from the trade bloc.

"This decision that is publicly ratified today permits Venezuela's efforts
to be focused on the integration of Mercosur," said the statement issued by
the Foreign Ministry.

Mexico said that it will seek a replacement for Venezuela and Peru has
voiced its interest in becoming a G-3 trade bloc member, the AP relates.

The AP says that Pres. Chavez along with close counterparts, Fidel Castro of
Cuba and Evo Morales of Bolivia, has formed an anti-capitalist trade bloc
for the region, calling for a regional integration based on socialist
principles.

                        *    *    *

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


* TRUMP: The Saga of America's Most Powerful Real Estate Baron
--------------------------------------------------------------
Author:     Jerome Tuccille
Publisher:  Beard Books
Paperback:  288 pages
List Price: US$34.95

Order your personal copy at
http://www.amazon.com/exec/obidos/ASIN/1587982234/internetbankrupt

This is the remarkable unfinished saga of an extraordinary American.  When
this book was first published in 1985, Donald J. Trump was scarcely into his
fourth decade.

He made the leap from local New York City boy who had made good to a
national and even world-prominent figure.

It all started some 10 years earlier when Trump gambled that New York City
would rebound from its financial morass.  People laughed and scoffed at that
time, but he was right, and he has profited mightily from his faith and
vision.

This is compelling reading about the inside machinations of his glamorous
world.


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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

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

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

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

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

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


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