TCRLA_Public/061213.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Wednesday, December 13, 2006, Vol. 7, Issue 247

                          Headlines

A R G E N T I N A

BANCO NACIONAL: Funding Argentine Natural Gas Transport Project
BANCO NACIONAL: Turning to Capital Markets for Project Funding
GAS DEL NORTE: Expanding Argentine Natural Gas Transport System
GAS DEL SUR: Inks NatGas Transport System Expansion in Nation
POWER COLD: Deadline for Verification of Claims Is on Feb. 13

PROPHOS SA: Claims Verification Deadline Is on Feb. 20, 2007
PROSYS SRL: Trustee Verifies Proofs of Claim Until Feb. 12, 2007
PRIVATE ARGENTINA: Claims Verification Is Until Feb. 12, 2007
ROUTIER AUTOMOTORES: Reorganization Proceeding Concluded
SANCOR: Venezuelan Gov. Loans US$80MM to Prevent Foreign Buyout

TIMKEN CO: Sells Latrobe Steel to Watermill, et al. for US$215MM
YPF SA: Repsol Inks Exploration & Production Pact for Tamberias

B A H A M A S

COMPLETE RETREATS: US Trustee Supports Panel's Fairfax Retention

B E R M U D A

PXRE CORP: S&P Withdraws Ratings on Lack of Public Statements
QUANTA CAPITAL: Appoints Mark Bridges to Board of Directors
REFCO INC: BDO Stoy Appointed as Refco Trading's Liquidator
REFCO INC: Ch. 11 Trustee Wants US$101MM JPMorgan Claim Settled
SEA CONTAINERS: GNER's UK East Coast Operation Franchise Ceased

SEA CONTAINERS: Wants Richards Butler as Special Foreign Counsel
TOP OF THE HILL: Proofs of Claim Filing Is Until Jan. 3, 2007

B O L I V I A

BANCO BISA: Moody's Ups Financial Strength Rating to E+ from E
BANCO GANADERO: Moody's Ups Bank Financial Strength Rating to E+
BANCO MERCANTIL: Moody's Raises Financial Strength Rating to E+
BANCO NACIONAL: Moody's Upgrades Financial Strength Rating to E+
GULFMARK OFFSHORE: Names Bruce A. Streeter as Chief Executive

PETROLEO BRASILEIRO: Bolivia Must Hire Auditors to Assess Plants
PETROLEOS DE VENEZUELA: Forms Petroandina Gas with Yacimientos

* BOLIVIA: Firm Must Hire Auditors to Assess Plants, Says Brazil
* BOLIVIA: State Firm Forms Petroandina Gas Venture with PDVSA

B R A Z I L

ALCATEL-LUCENT: Closed Merger Cues Moody's to Cut Rating to Ba2
BANCO DO BRASIL: Lima Neto Named Interim Chief Executive Officer
COMPANHIA DE BEBIDAS: OKs Interest Distribution on Own Capital
COMPANHIA ENERGIA: Moody's Lifts Corporate Family Rating to Ba2
COMPANHIA SIDERURGICA: Ups Corus Bid to US$9.6 Billion

COMPANHIA SIDERURGICA: Corus Chairman Favors Bid Over Tata's
COMPANHIA SIDERURGICA: S&P Holds BB Rating on CreditWatch
CORUS GROUP: Companhia Siderurgica Ups Bid to 515 Pence a Share
CORUS GROUP: Chairman Favors Companhia Siderurgica's Bid
DURA AUTOMOTIVE: Court Gives Final Nod on Vendor Claims Payment

DURA AUTOMOTIVE: Court Okays Prepetition Shipping Claims Payment
LUCENT: Moody's Lifts Sr. Debt Rating to Ba3 from B1 on Merger
PETROLEO BRASILEIRO: Hires DeGolyer to Audit New Finds
PETROLEO BRASILEIRO: Says Piranema Field Startup Delayed
PETROLEO BRASILEIRO: Regulator Approves SubSea Conceptual Plan

C A Y M A N   I S L A N D S

ALBARAKA DOW: Last Day for Proofs of Claim Filing Is on Dec. 15
AL-SAFWA: Deadline for Proofs of Claim Filing Is Set for Dec. 15
AXIA OFFSHORE: Proofs of Claim Filing Deadline Is on Dec. 15
BIOHEDGE LIMITED: Final Shareholders Meeting Is Set for Dec. 15
CITIGROUP ALTERNATIVE: Last Shareholders Meeting Is on Dec. 15

CITIGROUP (INSTITUTIONAL): Last Shareholders Meeting Is Dec. 15
CZ KAPOK: Invites Shareholders for Final Meeting on Dec. 15
CZ SKYLARK: Shareholders to Gather for Final Meeting on Dec. 15
INTERPOOL FINANCE: Sets Final Shareholders Meeting on Dec. 15
JB ALPHA: Liquidator to Present Wind Up Accounts on Dec. 15

JB ALPHA (MASTER): Final Shareholders Meeting Is Set for Dec. 15
LIBRAN GLOBAL: Calls Shareholders for Final Meeting on Dec. 15
METIS OPPORTUNITIES: Last Shareholders Meeting Is on Dec. 15
PLATINUM INTERNATIONAL: Final Shareholders Meeting Is on Dec. 15
SAL 93A: Shareholders to Convene for Final Meeting on Dec. 15

SAL-SP 96: Calls Shareholders for Final Meeting on Dec. 15
SWING LIMITED: Shareholders to Gather for Dec. 15 Final Meeting
TAURUS FUND: Last Shareholders Meeting Is Set for Dec. 15
TDA EMERGING: Shareholders to Gather for Last Meeting on Dec. 15
WINGS IV: Shareholders to Gather for Final Meeting on Dec. 15

C H I L E

QUEBECOR WORLD: To Offer Approx. US$400MM of Sr. Unsecured Notes
QUEBECOR WORLD: Moody's Rates US$400MM Sr. Notes Due 2015 at B2

C O S T A   R I C A

DENNY'S CORP: Plans to Terminate Trans Fats from Menu Items
SAMSONITE CORP: Moody's Puts Ba3 Rating on US$450MM Term Loan B

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Defense Accuses State of Persecution
FALCONBRIDGE: Xstrata Guarantees Notes & Preferred Shares
TAG-IT PACIFIC: Earns US$13.4 Million in Third Quarter of 2006

* DOMINICAN REPUBLIC: Urges US to Approve Initiatives for Haiti

E C U A D O R

BANCO DE LOS ANDES: Regulator Orders Bank's Liquidation
GRAHAM PACKAGING: Warren Knowlton Replaces Philip Yates as CEO
GRAHAM PACKAGING: Posts US$15MM Net Loss in 2006 Third Quarter

E L   S A L V A D O R

PERRY ELLIS: Repurchases License from Parlux for US$63 Million

G U A T E M A L A

BANCO G&T: Regulator Says It Won't Take Control of Bank
SBARRO INC: Earns US$2.1 Million in 12-Weeks Ended Oct. 8

G U Y A N A

BRITISH WEST: Caribbean Airlines Makes First Landing in Guyana

* GUYANA: Inks Palm Oil Processing Pact with Integrated Bio

H A I T I

* HAITI: Dominican Republic Urges US to Ratify Haiti Initiatives

J A M A I C A

AIR JAMAICA: Launching Executive Business Class Service in 2007
AIR JAMAICA: May Merge with Caribbean Airlines
AIR JAMAICA: Michael Conway Says Airline Will Do Better
BRITISH WEST: Caribbean Air May Merge with Air Jamaica
SUGAR COMPANY: Eyes 10% Boost in Sugar Crop Production

M E X I C O

DESARROLLADORA HOMEX: Discloses Guidance for 2007
GRUPO TMM: Acquires Almacenadora de Deposito for US$9 Million
HERBALIFE LTD: Names Jean Marie Cacciatore VP of Human Resources
KRISPY KREME: Expects to Post US$117MM Revenues for 3rd Quarter
KRISPY KREME: District Ct. Sets Feb. 7 for Settlement Hearing

PORTOLA INC: Moody's Affirms Caa1 Corporate Family Rating
SENSATA TECH: Moody's Affirms B2 Rating with Stable Outlook
MERIDIAN AUTO: Posts US$17 Million Net Loss in October 2006
VITRO SA: Shareholders Approve Merger of Vitro Plan & Vimexico

N I C A R A G U A

* NICARAGUA: IMF Completes Final Review on PRGF Arrangement

P E R U

PERU ENHANCED: S&P Rates A-1 & A-2 Sr. Unsecured Notes at BB
PRIDE INTERNATIONAL: Names Kenneth Burke to Board of Directors

P U E R T O   R I C O

ADELPHIA COMMS: Files October 2006 Monthly Operating Report
HORIZON LINES: Renews Principal Agreements with Maersk
HORIZON LINES: Moody's Affirms B2 Corporate Family Rating
MUSICLAND HOLDING: Truesdell Files Affidavit in Support of Plan
ORIENTAL FINANCIAL: Repositions Sale Investment Portfolio

PILGRIM'S PRIDE: Declares New Price for Gold Kist's Senior Notes

S U R I N A M E

* SURINAME: S&P Raises Foreign Currency Sovereign Rating to B

U R U G U A Y

BANCO ITAU: Mulling Capital Raise for Uruguayan & Chilean Units
WORLDSPAN LP: S&P Assigns B Rating on US$1B Credit Facility

V E N E Z U E L A

DAIMLERCHRYSLER: Freightliner Will Lay Off 800 Employees
DAIMLERCHRYSLER: YTD Sales in Latin America Climbs 23%
PEABODY: COALSALES Inks Coal Supply Pact with Tennessee Valley

* VENEZUELA: Willing to Refine Petroleum from Ecuador
* VENEZUELA: Loans US$80MM to Prevent Foreign Buyout of Sancor
* IDB Invests US$3MM to Provide Microinsurance Ventures in LatAm


                         - - - - -


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


BANCO NACIONAL: Funding Argentine Natural Gas Transport Project
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social, along with local
pension funds, will fund the works for a planned expansion of Argentina's
natural gas transport system, Business News Americas reports.

Published reports say that Transportadora de Gas del Sur has signed
contracts with Transportadora de Gas del Norte and Odebrecht and the
Argentine government to expand the natural gas transport system capacity by
22.2 million cubic meters per day.

BNamericas relates that the 17% transport capacity boost will be carried out
through 2009.  About 8 million cubic meters per day of the new capacity will
be used for generation activities.

Of the 2,600 kilometers planned for the pipeline extensions, 1,860
kilometers corresponds to Gas del Norte's system with the remainder for Gas
del Sur, BNamericas notes.

The expansion works also involve a boost in gas pressure, BNamericas states.

            About Transportadora de Gas del Norte

Transportadora de Gas del Norte SA has the exclusivity for the
transport and operation of the gas pipes in the north and center
regions of Argentina for 35 years (until Dec. 28, 2027) to be
extended for 10 more years.  Gas del Norte is controlled by Gasinvest SA,
with a participation of the 70.04%, Totalfinaelf
(27.2%), Compania General de Combustibles (27.2%), Organizaci˘n
Techint (27.2%) and Petroliam Nasional Berhad (18.4%).  CMS Gas Argentina
Company has a 29.96% stake in the company.

            About Transportadora de Gas del Sur

Headquartered in Buenos Aires, Argentina, Transportadora de Gas del Sur
SA -- http://www.tgs.com.ar-- is a transporter of natural gas; having a
7,419-kilometer (4,610 miles) pipeline system with a firm contracted
capacity of 62.5 million cubic meters per day (MMm3/d) with an installed
power of 538.220 horsepower.  Substantially all of Transportadora de Gas'
capacity is subscribed for under firm long-term transportation contracts.
Transportadora de Gas is also a processor of natural gas and marketer of
natural gas liquids in Argentina.  The company operates the General Cerri
gas processing complex and the associated Galvan loading and storage
facility in Bahia Blanca in the Buenos Aires Province (the Cerri Complex)
where natural gas liquids are separated from gas transported through the
Company's pipeline system and stored for delivery.  Transportadora de Gas is
engaged in midstream activities and the provision of telecommunication
services in Argentina.  The company operates the largest pipeline
transmission system in Argentina, which accounts for roughly 60% of the
country's total natural gas consumption.

                     About Banco Nacional

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

                        *    *    *

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/--


BANCO NACIONAL: Turning to Capital Markets for Project Funding
--------------------------------------------------------------
Alvio Gaspar, an official of Banco Nacional de Desenvolvimento Economico e
Social, told Valor Economico that the bank is preparing to turn to capital
markets to provide financing for water and sanitation projects.

Banco Nacional is looking to use debentures, receivables funds known as
FIDCs, and special purpose companies to raise more financing and not depend
so heavily on government budgets, Business News Americas relates, citing Mr.
Gaspar.

According to BNamericas, Banco Nacional is structuring a debenture for
Copasa, a Minas Gerais waterworks firm, for up to BRL600 million, to be
issued in the start of 2007.

One of Banco Nacional's priorities is to work more closely with water
utilities in these types of operations to free up more finances to boost
access to water and wastewater treatment services, Mr. Gaspar told
BNamericas.

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

                        *    *    *

As reported on Nov. 27, 2006, 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/--


GAS DEL NORTE: Expanding Argentine Natural Gas Transport System
---------------------------------------------------------------
Transportadora de Gas del Norte has signed contracts with Transportadora de
Gas del Sur and Odebrecht and the government of Argentina to expand the
nation's natural gas transport system capacity by 22.2 million cubic meters
per day, published reports say.

Business News Americas relates that the 17% transport capacity boost will be
carried out through 2009.  About 8 million cubic meters per day of the new
capacity will be used for generation activities.

Of the 2,600 kilometers planned for the pipeline extensions, 1,860
kilometers corresponds to Gas del Norte's system with the remainder for Gas
del Sur, BNamericas states.  The expansion works also involve a boost in gas
pressure.

Banco Nacional de Desenvolvimento Economico e Social and local pension funds
will fund the works, BNamericas reports.

                     About Banco Nacional

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

            About Transportadora de Gas del Sur

Headquartered in Buenos Aires, Argentina, Transportadora de Gas del Sur
SA -- http://www.tgs.com.ar-- is a transporter of natural gas; having a
7,419-kilometer (4,610 miles) pipeline system with a firm contracted
capacity of 62.5 million cubic meters per day (MMm3/d) with an installed
power of 538.220 horsepower.  Substantially all of Transportadora de Gas'
capacity is subscribed for under firm long-term transportation contracts.
Transportadora de Gas is also a processor of natural gas and marketer of
natural gas liquids in Argentina.  The company operates the General Cerri
gas processing complex and the associated Galvan loading and storage
facility in Bahia Blanca in the Buenos Aires Province (the Cerri Complex)
where natural gas liquids are separated from gas transported through the
Company's pipeline system and stored for delivery.  Transportadora de Gas is
engaged in midstream activities and the provision of telecommunication
services in Argentina.  The company operates the largest pipeline
transmission system in Argentina, which accounts for roughly 60% of the
country's total natural gas consumption.

           About Transportadora de Gas del Norte

Transportadora de Gas del Norte SA has the exclusivity for the
transport and operation of the gas pipes in the north and center
regions of Argentina for 35 years (until Dec. 28, 2027) to be
extended for 10 more years.  Gas del Norte is controlled by Gasinvest SA,
with a participation of the 70.04%, Totalfinaelf
(27.2%), Compania General de Combustibles (27.2%), Organizaci˘n
Techint (27.2%) and Petroliam Nasional Berhad (18.4%).  CMS Gas Argentina
Company has a 29.96% stake in the company.

                        *    *    *

Fitch Argentina assigned D ratings on Transportadora de Gas del
Norte SA's three debts:

   -- the program of Obligaciones Negociables of up to US$300
      million;

   -- program of Obligaciones Negociables of up to US$320
      million; and

   -- Obligaciones Negociables for US$175 million.

The ordinary shares have been included in category 4.


GAS DEL SUR: Inks NatGas Transport System Expansion in Nation
-------------------------------------------------------------
Transportadora de Gas del Sur has signed contracts with Transportadora de
Gas del Norte and Odebrecht and the government of Argentina to expand the
nation's natural gas transport system capacity by 22.2 million cubic meters
per day, published reports say.

Business News Americas relates that the 17% transport capacity boost will be
carried out through 2009.  About 8 million cubic meters per day of the new
capacity will be used for generation activities.

Of the 2,600 kilometers planned for the pipeline extensions, 1,860
kilometers corresponds to Gas del Norte's system with the remainder for Gas
del Sur, BNamericas states.

BNamericas notes that the expansion works also involve a boost in gas
pressure.

Banco Nacional de Desenvolvimento Economico e Social and local pension funds
will fund the works, BNamericas reports.

                     About Banco Nacional

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

                     About Gas del Norte

Transportadora de Gas del Norte SA has the exclusivity for the
transport and operation of the gas pipes in the north and center
regions of Argentina for 35 years (until Dec. 28, 2027) to be
extended for 10 more years.  Gas del Norte is controlled by Gasinvest SA,
with a participation of the 70.04%, Totalfinaelf
(27.2%), Compania General de Combustibles (27.2%), Organizaci˘n
Techint (27.2%) and Petroliam Nasional Berhad (18.4%).  CMS Gas Argentina
Company has a 29.96% stake in the company.

                     About Gas del Sur

Headquartered in Buenos Aires, Argentina, Transportadora de Gas del Sur
SA -- http://www.tgs.com.ar-- is a transporter of natural gas; having a
7,419-kilometer (4,610 miles) pipeline system with a firm contracted
capacity of 62.5 million cubic meters per day (MMm3/d) with an installed
power of 538.220 horsepower.  Substantially all of Transportadora de Gas'
capacity is subscribed for under firm long-term transportation contracts.
Transportadora de Gas is also a processor of natural gas and marketer of
natural gas liquids in Argentina.  The company operates the General Cerri
gas processing complex and the associated Galvan loading and storage
facility in Bahia Blanca in the Buenos Aires Province (the Cerri Complex)
where natural gas liquids are separated from gas transported through the
Company's pipeline system and stored for delivery.  Transportadora de Gas is
engaged in midstream activities and the provision of telecommunication
services in Argentina.  The company operates the largest pipeline
transmission system in Argentina, which accounts for roughly 60% of the
country's total natural gas consumption.

                        *    *    *

Fitch made rating changes to Transportadora de Gas del Sur SA in conjunction
with the roll out of Issuer Default Ratings and Recovery Ratings for Latin
America Corporates:

   Foreign Currency

     -- Previous Rating: 'B-'
     -- New RR: 'B', Rating Outlook Stable

   Local Currency

     -- Previous Rating: 'B-'
     -- New RR: 'B', Rating Outlook Stable

   US$614 million, Senior Unsecured Notes due 2010 and 2013

     -- Previous Rating: 'B-'
     -- New IDR: 'B/RR4'


POWER COLD: Deadline for Verification of Claims Is on Feb. 13
-------------------------------------------------------------
Analia Fernanda Calvo, the court-appointed trustee for Power Cold SA's
reorganization proceeding, will verify creditors' proofs of claim until Feb.
13, 2007.

Ms. Calvo will present the validated claims in court as individual reports
on March 27, 2007.   A court in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion and the
objections and challenges raised by Power Cold 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 Power Cold's accounting and
banking records will follow on May 8, 2007.

On Oct. 8, 2007, Power Cold's creditors will vote on a settlement plan that
the company will lay on the table.

The trustee can be reached at:

         Analia Fernanda Calvo
         Montevideo 589
         Buenos Aires, Argentina


PROPHOS SA: Claims Verification Deadline Is on Feb. 20, 2007
------------------------------------------------------------
Estudio Rego-Saavedra, the court-appointed trustee for Prophos SA's
reorganization proceeding, will verify creditors' proofs of claim until Feb.
20, 2007.

Estudio Rego-Saavedra will present the validated claims in court as
individual reports on Apr. 3, 2007.   A court in Buenos Aires will determine
if the verified claims are admissible, taking into account the trustee's
opinion and the objections and challenges raised by Prophos 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 Prophos' accounting and banking
records will follow on May 17, 2007.

On Nov. 2, 2007, Power Cold's creditors will vote on a settlement plan that
the company will lay on the table.

The trustee can be reached at:

         Estudio Rego-Saavedra
         Uruguay 660
         Buenos Aires, Argentina


PROSYS SRL: Trustee Verifies Proofs of Claim Until Feb. 12, 2007
----------------------------------------------------------------
Ernesto Oscar Calello, the court-appointed trustee for Prosys SRL's
bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 12,
2007.

Mr. Callelo will present the validated claims in court as individual reports
on Mar. 26, 2007.   A court in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion and the
objections and challenges raised by Prosys 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 Prosys' accounting and banking
records will follow on May 10, 2007.

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

The debtor can be reached at:

         Prosys SRL
         Ladislao Martinez 324 Martinez
         Partido de San Isidro
         Buenos Aires, Argentina

The trustee can be reached at:

         Ernesto Oscar Callelo
         Avenida Centenario 725, San Isidro
         Buenos Aires, Argentina


PRIVATE ARGENTINA: Claims Verification Is Until Feb. 12, 2007
-------------------------------------------------------------
Isabel A. Ramirez, the court-appointed trustee for Private Argentina SRL's
bankruptcy proceeding, will verify creditors' proofs of claim until Feb. 12,
2007.

Ms. Ramirez will present the validated claims in court as individual reports
on Apr. 16, 2007.   Court No. 2 in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Private Argentina 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 Private Argentina's accounting
and banking records will follow on May 30, 2007.

Ms. Ramirez is also in charge of administering Private Argentina's assets
under court supervision and will take part in their disposal to the extent
established by law.

Private Argentina was forced into bankruptcy at the request of Huberto
Roviralta, whom it owes US$68,382.33.

Clerk No. 3 assists the court in the case.

The debtor can be reached at:

         Private Argentina SRL
         Ayacucho 267
         Buenos Aires, Argentina

The trustee can be reached at:

         Isabel A. Ramirez
         Tte. Gral. Juan D. Peron 2082
         Buenos Aires, Argentina


ROUTIER AUTOMOTORES: Reorganization Proceeding Concluded
--------------------------------------------------------
Routier Automotores SA's reorganization proceeding has ended.  Data
published by Infobae on its Web site indicated that the process was
concluded after a court in Buenos Aires approved the debt agreement signed
between the company and its creditors.


SANCOR: Venezuelan Gov. Loans US$80MM to Prevent Foreign Buyout
---------------------------------------------------------------
The Venezuelan government granted Monday a US$80 million loan to Argentinean
Sancor Cooperative, in order to give the company an alternative and prevent
a foreign takeover of the firm, El Universal reports.

Sancor groups about 2,100 milk producers in about 70 primary cooperatives in
the provinces of Santa Fe and Cordoba.  Reuters says the cooperative will
repay the debt by sending annually to Venezuela 20,000 tons of powdered
milk.

El Universal adds that in addition to the loan, which will be used to
refinance the corporate debt, Venezuela and the firm will negotiate new,
future grants as working capital.  The deal also involves transfer of
technology.

In September, the cooperative failed to repay US$10 million interest and
principal payments.  The company has signed a letter of understanding with
Adecoagro, a firm owned by Hungarian-American businessman George Soros,
which gives it 90 days for exclusive negotiations with SanCor.

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.


TIMKEN CO: Sells Latrobe Steel to Watermill, et al. for US$215MM
----------------------------------------------------------------
The Timken Company completed the sale of its subsidiary, Latrobe Steel, to a
group of investors led by the Watermill Group, Hicks Holdings and Sankaty
Advisors, for approximately US$215 million in cash.

The proceeds provide resources for general corporate purposes, including
strategic growth initiatives and pension funding.

"We are taking actions across our portfolio to increase the ability to
generate consistent profitable growth," James W. Griffith, president and
chief executive officer, said.  "We believe the divestment of Latrobe Steel
will create new opportunities for us to invest in key industrial markets
that have the potential to generate greater value for our shareholders over
time."

Steven E. Karol, founder and managing partner of the Watermill Group said,
"Watermill has a long history of buying and helping businesses improve.
Latrobe Steel is attractive to us due to its position in growing and
profitable markets and a strong management team.  Latrobe has manufacturing
and distribution facilities that are up-to-date, well maintained and which
will support the company's continued growth.  We look forward to partnering
with Hicks, Sankaty and local management in this endeavor."

"As with our recent sale of the precision steel components business in
Europe and our intention to exit the tubing business in the United Kingdom,
the sale of Latrobe Steel reinforces our focus on the alloy steel business,"
Salvatore J. Miraglia, Jr., president of Timken's Steel Group, said.  "We
invested in our alloy steelmaking capabilities during 2006, adding a new
induction heat-treat line and expanding large bar capacity, and will
continue to look for opportunities to strengthen our portfolio in this core
area going forward."

                      About Latrobe Steel

Headquartered in Latrobe, Pa., Latrobe Steel through its two primary
business units, Latrobe Steel Manufacturing and Latrobe Steel Distribution,
produces and distributes more than 300 grades of specialty steels for use in
aerospace applications, high performance cutting tools, aluminum casting
dies, extrusion and thread roll dies and other demanding applications.
Latrobe Steel has more than 800 associates across the United States,
including approximately 530 in Latrobe, Pa.

                   About The Watermill Group

The Watermill Group -- http://www.watermill.com-- is a private strategic
investment firm that focuses on acquiring middle-market companies in which
it can add value through strategic and operational guidance as well as
investment capital.

                    About Hicks Holdings LLC

Dallas, Tex.-based Hicks Holdings LLC is a private investment firm that
makes corporate acquisitions as well as owns and manages assets in sports
and real estate.  The firm's strategy is based on the "buy build" concept
pioneered by Tom Hicks in the mid-1980s. Examples of the buy build strategy
include Dr Pepper/7-Up, International Home Foods and Chancellor/Clear
Channel.

                     About Sankaty Advisors

Sankaty Advisors, LLC, the credit affiliate of Bain Capital, LLC, is a
private manager of high yield debt obligations.  With approximately US$13
billion in assets, Sankaty invests in a variety of securities, including
leveraged loans, high-yield bonds, stressed debt, distressed debt, mezzanine
debt, structured products and equity investments.

                   About The Timken Company

Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR)
-- http://www.timken.com/-- manufactures highly engineered bearings and
alloy steels.  It also provides related components and services such as
bearing refurbishment for the aerospace, medical, industrial, and railroad
industries.  The company has operations in Argentina, Brazil and Mexico,
among other nations in South America.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 30, 2006,
Moody's Investors Service confirmed The Timken Company's Ba1
Corporate Family Rating and the Ba1 rating on the company's
US$300 Million Unsecured Medium Term Notes Series A due 2028 in connection
with the rating agency's implementation of its new Probability-of-Default
and Loss-Given-Default rating methodology.


YPF SA: Repsol Inks Exploration & Production Pact for Tamberias
---------------------------------------------------------------
Argentina's San Juan provincial government said in a statement that it
signed with Repsol, the parent company of YPF SA, an exploration and
production contract for Tamberias.

According to a statement, Jose Luis Gioja, San Juan province governor,
supervised the signing of the contract.

San Juan added in the statement that YPF first explored the
3,825-square-kilometer block for oil in 1981 with 325 kilometers of 2D
seismic.  Another firm conducted 384 kilometers of 2D seismic in 1990.
Repsol could complete 2D seismic studies by the end of 2007.

Repsol will invest US$7 million on exploration of the block over the next
six years, Business News Americas reports.

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

                        *    *    *

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




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


COMPLETE RETREATS: US Trustee Supports Panel's Fairfax Retention
----------------------------------------------------------------
Diana Adams, the acting United States Trustee for the District of
Connecticut, notifies the U.S. Bankruptcy Court for the District of
Connecticut that she has no objection to the retention of The Fairfax Group
as forensic advisor to the Official Committee of Unsecured Creditors in
Complete Retreats LLC and its debtor-affiliates' bankruptcy cases.

As reported in the Troubled Company Reporter on Nov. 8, 2006, the Committee
sought the Court's authority to retain Fairfax Group as its forensic
advisor, nunc pro tunc to Sept. 11, 2006.

Committee Chair Joel S. Lawson III told the Court that the Committee formed
a subcommittee of its members to interview and evaluate candidates qualified
to perform the type of forensic accounting and investigatory due diligence
services required in the Debtors' cases.  After soliciting qualification
materials from, and rigorously interviewing various candidates, the
subcommittee recommended the retention of Fairfax as the Committee's
forensic advisor.

Mr. Lawson noted that Fairfax employs and has working
professional relationships with some of the world's leading
experts in compliance, investigations and security.  Fairfax's
past engagements have included rendering service in the areas of
corporate internal investigations; due diligence; asset tracing
and anti-money laundering; electronic evidence-gathering and
preservation; witness identification and interview; documentary
evidence gathering and research of corporate and individual
histories.

Fairfax will, among others, perform forensic accounting and
investigatory due diligence concerning the Debtors; the Debtors'
businesses and operations; and any individuals or entities with
whom the Debtors, their officers, directors, shareholders, agents and
employees, have done business or may decide to do business.  Fairfax will
also analyze all relevant information from the time of the Debtors'
formation through and including the present.

The Committee reserves its rights to augment or authenticate the
work of XRoads Solutions Group, or any other professionals
conducting forensic analysis, where it deems that the additional
work is necessary to maximize the recovery of unsecured
creditors.

The Debtors will pay Fairfax for its services according to its
customary hourly rates.  The hourly rates charged by Fairfax
professionals differ based on, among other things, the individual
professional's experience.  The customary rates for Fairfax personnel in
year 2006 range from US$275 to US$400 per hour.

Fairfax will provide a phased budget, which will contain explicit fee
limitations for each phase of its investigation.

The Debtors will reimburse Fairfax's out-of-pocket expenses
reasonably incurred in connection with services it renders to the Committee.

Michael J. Hershman, president of the Fairfax Group, assured the
Court that the firm has no connection with the Debtors, their
creditors, the U.S. Trustee or any other party in interest in the Chapter 11
cases.

Mr. Hershman further assured the Court that Fairfax is a "disinterested
person" as that term is defined in Section 101(14) of the Bankruptcy Code,
and does not hold or represent any interest adverse to the Debtors' estates
with respect to the matters for which it is to be retained.

                  About Complete Retreats

Complete Retreats, LLC, Preferred Retreats, LLC, and their
subsidiaries were founded in 1998.  Owned by Robert McGrath and
four minority owners, the companies operate a five-star
hospitality and real estate management business and are a
pioneer and market leader of the "destination club" industry.
Under the trade name "Tanner & Haley Resorts," Complete
Retreats, et al.'s destination clubs have numerous individual
and company members.

Destination club members pay up-front membership deposits,
annual dues, and daily usage fees.  In return, members and their
guests enjoy the use of first-class private residences, and
receive an array of luxurious services and amenities in certain
exotic vacation destinations in the United States and locations
around the world, including: Abaco, Bahamas; Cabo San Lucas,
Mexico; Nevis, West Indies; Telluride, Colorado; and Jackson
Hole, Wyoming.

Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245
through 06-50306).  Nicholas H. Mancuso, Esq., Jeffrey K. Daman,
Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A.
Stieglitz Jr., Esq., at Dechert LLP, are representing the
Debtors in their restructuring efforts.  Xroads Solutions Group,
LLC, is the Debtors financial and restructuring advisor.  When
the Debtors filed for chapter 11 protection, they listed total
debts of US$308,000,000.  (Complete Retreats Bankruptcy News, Issue No. 17;
Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).




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


PXRE CORP: S&P Withdraws Ratings on Lack of Public Statements
-------------------------------------------------------------
Standard & Poor's Ratings Services said it withdrew its 'B+' counterparty
credit rating on PXRE Corp.  In addition, Standard & Poor's withdrew its
'CCC+' rating on PXRE's Capital Trust I preferred stock, supported by
deferrable subordinated debt from PXRE Corp.

The ratings were withdrawn because PXRE Corp., a subsidiary of PXRE Group
Ltd., does not provide public financial statements.  Accordingly, Standard &
Poor's does not have adequate information to maintain surveillance on the
company.

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


QUANTA CAPITAL: Appoints Mark Bridges to Board of Directors
-----------------------------------------------------------
Quanta Capital Holdings Ltd. appointed Mark Bridges as a director following
the resignation of W. Russell Ramsey as a director of the company.

Mr. Bridges currently serves as the President of Rosemont Reinsurance Ltd.,
a specialty property and marine reinsurer that is currently in run-off.  He
previously served in several capacities at Overseas Partners Ltd. including
during its run-off phase.  Prior to his service at Overseas Partners Ltd. he
was a partner and head of the reinsurance practice at KPMG Peat Marwick in
Bermuda.

James J. Ritchie, the company's Chairman commented, "I thank Russ Ramsey for
his many contributions and as one of the founders of our company and for his
service on our board.  As we continue to execute the run-off plan during the
coming years, we look forward to Mark Bridges' contribution to our board.
We believe that his skills, particularly those pertaining to insurance
companies in run-off are an excellent match to the company's current needs
and I am confident that he will be very helpful in providing oversight and
practical insight to Peter Johnson, our CEO, and his management team.  On
behalf of the Board, I am pleased that he has agreed to join us."

Headquartered in Hamilton, Bermuda, Quanta Capital Holdings Ltd.
(NASDAQ: QNTA) -- http://www.quantaholdings.com/-- operates its
Lloyd's syndicate in London and its environmental consulting
business through Environmental Strategies Consulting in the
United States.  The Company is in the process of running off its
remaining business lines.  The Company maintains offices in
Bermuda, the United Kingdom, Ireland and the United States.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 15, 2006,
Quanta Capital Holdings Ltd. continues to work with its lenders
regarding an amendment to its credit facility and an extension
to its waiver period, which expired Aug. 11, 2006.

On June 7, 2006, A.M. Best Co. downgraded the financial strength
ratings to B from B++ and the issuer credit ratings to bb from
bbb for the insurance/reinsurance subsidiaries of Quanta Capital
Holdings Ltd.  These rating actions apply to Quanta Reinsurance
Ltd., its subsidiaries and Quanta Europe Ltd.  A.M. Best also
downgraded Quanta's ICR to b from bb and the securities rating
to ccc from b+ for its US$75 million 10.25% Series A non-
cumulative perpetual preferred shares.  All ratings have been
removed from under review with negative implications and
assigned a negative outlook.

The company disclosed that the A.M. Best rating action triggered
a default under Quanta's credit facility.


REFCO INC: BDO Stoy Appointed as Refco Trading's Liquidator
-----------------------------------------------------------
Simon Michaels and Malcom Cohen of BDO Stoy Hayward LLP were appointed Joint
Liquidators of Refco Trading Services Ltd. at the company's Extraordinary
Meeting on Aug. 22 for the members' voluntary winding-up procedure.

The Company's Directors made a Statutory Declaration that:

   -- a full inquiry has been launched into the Company's
      affairs; and

   -- the Company would be able to pay its debts in full within
      12 months from the commencement if the winding-up.

The Joint Liquidators can be reached at:

         BDO Stoy Hayward LLP
         8 Baker Street
         London W1U 3LL
         Phone: 020 7486 5888
         Fax: 020 7487 3686
         E-mail: london@bdo.co.uk
         Web: http://www.bdostoyhayward.co.uk/

                       About BDO Stoy

BDO Stoy Hayward -- http://www.bdo.co.uk/-- focuses on business assurance
(audit), corporate advisory, tax, and investment management services,
specializing in such industries as charities, educational institutions,
family businesses, financial services, leisure, and hospitality.  The
company is the U.K. arm of BDO International and has offices in more than 15
cities throughout the U.K.

                      About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified
financial services organization with operations in 14 countries and an
extensive global institutional and retail client base.  Refco's worldwide
subsidiaries are members of principal U.S. and international exchanges, and
are among the most active members of futures exchanges in Chicago, New York,
London and Singapore.  In addition to its futures brokerage activities,
Refco is a major broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and international
equities, emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11 protection on Oct.
17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Luc A. Despins, Esq., at Milbank, Tweed, Hadley &
McCloy LLP, represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts to the
Bankruptcy Court on the first day of its Chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC, is a
regulated commodity futures company that has businesses in the United
States, London, Asia and Canada.  Refco, LLC, filed for bankruptcy
protection in order to consummate the sale of substantially all of its
assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc.
Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal
LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital
Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner is represented by Bingham
McCutchen LLP.  RCM is Refco's operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management LLC, Refco
Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11
protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through
06-11262).


REFCO INC: Ch. 11 Trustee Wants US$101MM JPMorgan Claim Settled
---------------------------------------------------------------
Marc S. Kirschner, the Chapter 11 trustee for the estate of Refco Capital
Markets Ltd., asks the Court to approve a Settlement Agreement and Mutual
Release dated Nov. 20, 2006, with JPMorgan Chase Bank N.A.

JPMC serves as custodian, and cleared and settled trades for RCM.  JPMC also
provides monthly valuations of securities held in custody for RCM's account.

In December 2005, JPMC, through its counsel, served a letter
setting forth the basis for its claims against the RCM estate
together with supporting documentation.  JPMC asserted claims
aggregating US$101,547,404, comprised of:

   (i) a balance outstanding for amounts loaned in the principal
       amount of US$79,500,000, plus fees and interest.  The
       loan is secured by a perfected security interest in RCM
       securities in and cash in the possession of JPMC in an
       aggregate approximate amount of US$780,000,000; and

  (ii) a net overdraft totaling US$22,047,404 in RCM's foreign
       currency accounts at JPMC.

Mr. Kirschner relates that there is a US$21,947,767 credit due RCM from JPMC
as a result of the liquidation of certain repurchase agreements and cash
collateral previously posted with JPMC in connection with forward and swap
contracts with RCM.

JPMC timely filed a formal proof of claim -- Claim No. 4796 --
setting forth the same bases for the JPMC Claims and attaching
supporting documentation.

According to Mr. Kirschner, the conflicts counsel to the Official Committee
of Unsecured Creditors -- and later, the counsel for the Additional
Committee -- began analyzing the validity and amount of the JPMC Claims and
the attachment, perfection and priority of the Security Interest, and to
determine whether there exist any viable defenses thereto, in December 2005.
The probe continued after the RCM Trustee was appointed in April 2006.

After arm's-length negotiations with business persons at JPMC,
the RCM Trustee, on RCM's behalf, agrees to pay JPMC the
principal amount of the Loan together with 70% of non-default
interest, calculated at the daily opening Federal Funds Rate plus 50 basis
points, without compounding.

The amount, Mr. Kirschner explains, represents a 200 basis point
discount from the contractual default rate alleged by JPMC to
apply, and an additional 30% discount to the non-default contract rate of
interest.  The total potential savings to the estate from this concession,
Mr. Kirschner says, by JPMC is approximately US$5,500,000 as of December 12,
2006.

The Settlement Agreement also provides for the US$22,041,280 Debit Balance
to be set off against US$21,968,247 of credits RCM alleges are due to it
from JPMC.  The Bank will waive its rights to assert a claim for the
US$99,636 difference between the two
amounts.

RCM will also pay JPMC's reasonable attorneys fees as required by the
underlying agreements, which are currently in the estimated amount of
US$1,175,000 as of October 31, 2006, together with US$26,135 of fees that
are due and owing with respect to the monthly transaction charges and fees
for the movement of securities and value of the Portfolio in RCM's
securities account at JPMC.  The final amount of the attorneys' fees is to
be determined on the day before the effectiveness of the Settlement
Agreement.

In addition, the Settlement Agreement provides for an exchange of mutual
releases between the parties and the expungement of JPMC's proof of claim
against RCM.

The Settlement Agreement further contains terms providing for RCM to utilize
JPMC for future securities custody accounts and dealer services, and to
provide valuations of the securities and other financial assets held by the
RCM estate as contemplated by the settlement agreement between the RCM
Trustee and certain
customers and creditors of RCM, for appropriate fees, as well as
other customary terms.

Mr. Kirschner notes that pursuant to the Court-approved RCM
Settlement Agreement, the RCM Trustee is required to engage one
or more independent persons of recognized standing to act as a
valuation expert with respect to RCM customer property.  As
custodian, JPMC has become familiar with many of the securities
in the RCM portfolio.  In addition, the Portfolio Management
Advisory Committee has advised the RCM Trustee that JPMC is
experienced and highly regarded in trading emerging market debt,
which comprises a large percentage of the RCM portfolio.

JPMC has a Client Valuation Group, which provides independent
valuation services to its clients.  Mr. Kirschner believes that
valuations prepared by the Client Valuation Group, in
consultation with the emerging markets trading desk, will result
in a fair and independent valuation of customer property pursuant to the RCM
Settlement Agreement.

The RCM Trustee also asks the Court to approve the retention of
JPMC to provide the valuations under the RCM Settlement
Agreement.

"I believe that any objection to the JPMC Claims and Security
Interest has very little likelihood of success, and submit that
the Settlement Agreement therefore is fair and equitable and
falls well within the range of reasonableness," Mr. Kirschner
tells Judge Drain.

                      About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in 14 countries
and an extensive global institutional and retail client base.  Refco's
worldwide subsidiaries are members of principal U.S. and international
exchanges, and are among the most active members of futures exchanges in
Chicago, New York, London and Singapore.  In addition to its futures
brokerage activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government securities,
domestic and international equities, emerging market debt, and OTC financial
and commodity products.  Refco is one of the largest global clearing firms
for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc A. Despins,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official
Committee of Unsecured Creditors.  Refco reported US$16.5 billion in assets
and US$16.8 billion in debts to the Bankruptcy Court on the first day of its
chapter 11 cases.

On Oct. 6, 2006, the Debtors filed their Amended Plan and
Disclosure Statement.  On Oct. 16, 2006, the gave its tentative
approval on the Disclosure Statement and on Oct. 20, 2006, the
Court Clerk entered the written disclosure statement order.

The hearing to consider confirmation of Refco, Inc., and its
debtor-affiliates' plan is set for Dec. 15, 2006.  Objections to
the plan, if any, must be in by Dec. 1, 2006.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC, is a
regulated commodity futures company that has businesses in the United
States, London, Asia and Canada.  Refco, LLC, filed for bankruptcy
protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital
Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner is represented by Bingham
McCutchen LLP.  RCM is Refco's operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management LLC, Refco
Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11
protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through
06-11262).

Refco Commodity Management, Inc., formerly known as CIS
Investments, Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436).  RCMI's exclusive period to file a chapter 11 plan
expires on Feb. 13, 2007.

(Refco Bankruptcy News, Issue No. 49; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


SEA CONTAINERS: GNER's UK East Coast Operation Franchise Ceased
---------------------------------------------------------------
The British Government ended Great North Eastern Railway's
GBP1,300,000,000 franchise agreement to operate the East Coast
main line railway, London-based The Times reported.

The U.K. Department for Transport will re-let the franchise but
has agreed to allow GNER to run the line for up to two years on a new, fixed
management-contract basis, as a temporary solution.

In 1996, Sea Containers Ltd., GNER's parent, entered into a
franchise agreement with the Strategic Rail Authority of the
British Government to operate the GNER carrying passengers on
high-speed trains along the East Coast main line in Great
Britain, United Kingdom.  Sea Containers and the Transport
Department entered into a new 10-year contract in April 2005,
under which the Debtor agreed to pay the British Government
GBP1,300,000,000 over the course of the franchise.

The Times reports that talks are underway between the Transport
Department and Sea Containers to come up with terms for the new
arrangement.  Under the new arrangement, GNER is expected to
continue running the East Coast line between 18 and 24 months
until a new train operating company is selected.

According to The Times, an agreement is expected given that
GNER's financial situation is unsustainable under the terms of
the current franchise.  Christopher Garnett, GNER's former chief
executive, had previously admitted that GNER had overbid.

GNER is said to be close to breaching the liquidity ratio legally required
to its franchise agreement, The Times relates.

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


SEA CONTAINERS: Wants Richards Butler as Special Foreign Counsel
----------------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates ask permission from the U.S.
Bankruptcy Court for the District of Delaware to employ Richards Butler LLP
as special counsel for certain foreign legal matters, nunc pro tunc to Oct.
15, 2006.

Richards Butler has served as the Debtors' outside counsel on
legal matters in the United Kingdom and France as well as matters involving
their interests in their non-debtor subsidiary Great North Eastern Railway,
Ltd., since 1987, relates Edwin S.
Hetherington, vice president, general counsel, and secretary of
Sea Containers Ltd.

Mr. Hetherington discloses that the firm's professionals have
become very familiar with the Debtors and their business affairs, and have
gained extensive experience in most aspects of the Debtors' general legal
work and needs outside the United States.

As the Debtors' Special Foreign Counsel, Richards Butler will
continue to advise and represent the Debtors with respect to the
foreign legal matters as well as other non-bankruptcy related
matters, which may arise in the Debtors' Chapter 11 cases in the
ordinary course of business.

Richards Butler's services will be paid in accordance with its
customary hourly rates:

         Professional                  Hourly Rate
         ------------                  -----------
         Partners                      US$522 - US$997
         Associates                    US$360 - US$740
         Paraprofessionals             US$295 - US$360

The firm will also be reimbursed for necessary out-of-pocket
expenses.

Mr. Hetherington tells the Court that Richards Butler has
received a replenishing prepetition retainer, with a remaining
balance of US$150,461, for providing the Debtors with
representation on certain of the foreign legal matters prior to
the Petition Date.  In addition, Richards Butler also received
US$4,412,000 from the Debtors within one year prior to the Petition Date for
services rendered to certain Foreign Legal Matters.

Jonathan Yorke, Esq., a partner at Richards Butler LLP, assures
the Court that his firm does not hold or represent any interests
adverse to the Debtors, or to their estates in matters upon which his firm
is to be engaged.

The counsel can be reached at:

          Jonathan Yorke, Esq.
          Richards Butler LLP
          LLP Beaufort House
          15 St. Botolph Street
          London EC3A 7EE

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


TOP OF THE HILL: Proofs of Claim Filing Is Until Jan. 3, 2007
-------------------------------------------------------------
Top of the Hill Ltd.'s creditors are given until Jan. 3, 2007, to prove
their claims to Nicholas Hoskins, the company's liquidator, or be excluded
from receiving any distribution or payment.

In their proofs of claim, creditors must indicate their full names,
addresses, the full particulars of their debts or claims, and the names and
addresses of their lawyers, if any.

A final general meeting will be held at the liquidator's place of business
on Jan. 10, 2006, at 10:00 a.m., or as soon as possible.

Top of the Hill's shareholders will determine during the meeting, through a
resolution, the manner in which the books, accounts and documents of the
company and of the liquidator will be disposed.

Top of the Hill's shareholders agreed on Nov. 8, 2006, to place the company
into voluntary liquidation under Bermuda's Companies Act 1981.

The liquidator can be reached at:

         Nicholas Hoskins
         Wakefield Quin, Chancery Hall
         52 Reid Street
         Hamilton, Bermuda




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


BANCO BISA: Moody's Ups Financial Strength Rating to E+ from E
--------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength ratings of
Banco Mercantil Santa Cruz S.A., Banco Bisa S.A. and Banco Nacional S.A. to
E+ from E and assigned a positive outlook to these ratings.

The rating action reflects the relative improvement in the Bolivian
operating and regulatory environment, as well as the slow but steady
recovery of these banks' financial performance.

Andrea Manavella, Vice President Senior Analyst, noted that "these banks
have gradually improved their franchises, despite the strong competition in
the market, either by acquisitions or expansion of their product and client
base".  Moreover, Ms. Manavella said these banks have worked on gradually
reducing their non-performing loans and repossessed assets, while enhancing
provisioning levels, as core earnings generation has improved.

Moody's noted, however, that the Bolivian banks are challenged to improve
their asset quality and solvency and to maintain profit margins in a still
unstable operating environment.  Moody's pointed out that the positive
outlook reflects the expectation of further improvements in the banks' core
earnings and asset quality.


BANCO GANADERO: Moody's Ups Bank Financial Strength Rating to E+
----------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength rating of
Banco Ganadero S.A. to E+ from E. Moody's also upgraded the foreign currency
deposit rating to Caa1 from Caa2 on the global scale to align it with those
of other rated Bolivian banks.  Moody's also upgraded to A3.bo from Baa1.bo
the foreign currency national scale rating.  The global short-term rating
was maintained at Not Prime.  The outlook on all the ratings is stable.

Moody's noted that in light of Ganadero's B3 global local currency rating,
the Caa1 foreign currency rating is constrained by the country ceiling for
deposits.

The rating agency said that the BFSR upgrade reflected the relative
improvement in the Bolivian operating and regulatory environment, as well as
in Ganadero's financial metrics, including its solvency and asset quality.
The rating action reflects the bank specific challenge in developing its
franchise in a highly competitive environment.

These ratings were upgraded:

   -- Bank financial strength rating: E+ from E, stable outlook;

   -- Foreign currency deposit rating: Caa1 from Caa2, stable
      Outlook; and

   -- National scale rating foreign currency deposits: A3.bo
      from Baa1.bo, stable outlook.


BANCO MERCANTIL: Moody's Raises Financial Strength Rating to E+
---------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength ratings of
Banco Mercantil Santa Cruz S.A., Banco Bisa S.A. and Banco Nacional S.A. to
E+ from E and assigned a positive outlook to these ratings.

The rating action reflects the relative improvement in the Bolivian
operating and regulatory environment, as well as the slow but steady
recovery of these banks' financial performance.

Andrea Manavella, Vice President Senior Analyst, noted that "these banks
have gradually improved their franchises, despite the strong competition in
the market, either by acquisitions or expansion of their product and client
base".  Moreover, Ms. Manavella said these banks have worked on gradually
reducing their non-performing loans and repossessed assets, while enhancing
provisioning levels, as core earnings generation has improved.

Moody's noted, however, that the Bolivian banks are challenged to improve
their asset quality and solvency and to maintain profit margins in a still
unstable operating environment.  Moody's pointed out that the positive
outlook reflects the expectation of further improvements in the banks' core
earnings and asset quality.


BANCO NACIONAL: Moody's Upgrades Financial Strength Rating to E+
----------------------------------------------------------------
Moody's Investors Service upgraded the bank financial strength ratings of
Banco Mercantil Santa Cruz S.A., Banco Bisa S.A. and Banco Nacional S.A. to
E+ from E and assigned a positive outlook to these ratings.

The rating action reflects the relative improvement in the Bolivian
operating and regulatory environment, as well as the slow but steady
recovery of these banks' financial performance.

Andrea Manavella, Vice President Senior Analyst, noted, "these banks have
gradually improved their franchises, despite the strong competition in the
market, either by acquisitions or expansion of their product and client
base".  Moreover, Ms. Manavella said that these banks have worked on
gradually reducing their non-performing loans and repossessed assets, while
enhancing provisioning levels, as core earnings generation has improved.

Moody's noted, however, that the Bolivian banks are challenged to improve
their asset quality and solvency and to maintain profit margins in a still
unstable operating environment.  Moody's pointed out that the positive
outlook reflects the expectation of further improvements in the banks' core
earnings and asset quality.


GULFMARK OFFSHORE: Names Bruce A. Streeter as Chief Executive
-------------------------------------------------------------
GulfMark Offshore, Inc.'s board of directors elected Bruce A. Streeter as
Chief Executive Officer of the company.

Mr. Streeter will continue to serve as President of GulfMark, a position he
has held since 1990, and as a Director of the Company, having first been
elected in 1997.  Mr. Streeter currently serves as a Board Member and is the
past President of the International Support Vessel Owner's Association.
Prior to his involvement with the Company, he was General Manager of the
offshore marine division of Offshore Logistics.  Mr. Streeter graduated from
the University of North Carolina in 1970 and obtained a Masters degree from
Providence College in 1977.  He served in the U.S. Navy from 1970-1977 and
remained in the Naval Reserve retiring as a Captain.

Mr. David Butters, Chairman of the Board, said, "Bruce has been instrumental
in taking a small regional owner of supply boats and transforming it into an
operator of one of the most modern fleets of sophisticated offshore vessels
in the industry.  Bruce's appointment as Chief Executive Officer represents
not only a recognition of his past success in positioning GulfMark in a
commanding position within the offshore industry, but also reaffirms
GulfMark's intent to build and expand the company to accommodate the current
strong demand for its offshore services."

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

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 15, 2006, In connection
with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors, the rating agency confirmed its Ba3 Corporate Family
Rating for GulfMark Offshore Inc. and its B1 rating on the
company's 7.75% Senior Unsecured Guaranteed Global Notes Due
2014.  Moody's assigned those debentures an LGD5 rating
suggesting noteholders will experience a 78% loss in case of default.

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


PETROLEO BRASILEIRO: Bolivia Must Hire Auditors to Assess Plants
----------------------------------------------------------------
Jose Gabrielli -- chief executive officer of Petroleo Brasileiro, the state
oil company of Brazil, told reporters that Yacimientos Petroliferos Fiscales
Bolivianos, its counterpart in Bolivia, must hire independent auditors to
appraise the value of the former's two refineries in Bolivia to conclude
bilateral talks.

Business News Americas relates that Petroleo Brasileiro's two plants in
Bolivia are:

          -- 40,000-barrel per day Gualberto Villaruel in the
             Cochabamba department, and

          -- 20,000-barrel per day Guillermo Elder in Santa
             Cruz.

Petroleo Brasileiro is negotiating with Yacimientos Petroliferos on the
value of a 51% stake in the two plants, which were transferred to Bolivian
control under the hydrocarbons nationalization decree, BNamericas notes.

Mr. Gabrielli told BNamericas, "There is no deadline to conclude these
negotiations."

Yacimientos Petroliferos would pay Petroleo Brasileiro the operating costs
to pay for the transfer of control of the plants as well as a return for the
latter's investments, BNamericas reports.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA aka Petrobras -- http://www2.petrobras.com.br/-- 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.


PETROLEOS DE VENEZUELA: Forms Petroandina Gas with Yacimientos
--------------------------------------------------------------
Petroleos de Venezuela SA, the state-owned oil company of Venezuela, has
formed a joint venture called Petroandina Gas with Yacimientos Petroliferos
Fiscales Bolivianos, its Bolivian counterpart, Business News Americas
reports.

BNamericas relates that Petroandina Gas will construct the US$100-million
Yacuiba gas-liquids separation plant in the Tarija department in Bolivia.

Saul Escalera, chief of hydrocarbons industrialization at Yacimientos
Petroliferos, told BNamericas that the plant will process 300 million cubic
feet per day of natural gas to produce 309 tons per day of liquefied
petroleum gas and 854 barrels per day of natural gasoline.

The construction of the Yacuiba plant will be tendered next year.  Works
will start in the second half of the year with production expected to start
up in June 2008, BNamericas notes, citing Mr. Escalera.

According to BNamericas, the plant will send the products with added value
to Argentina.

Mr. Escalera told BNamericas that the plant is the first of two stages
Yacimientos Petroliferos planned.  The second would start in 2009 and
relates to the development of a similar project in either Rio Grande or
Villamontes in Bolivia.

The second plant would need US$70 million in investment, Agencia Boliviana
de Informacion reports.

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.


* BOLIVIA: Firm Must Hire Auditors to Assess Plants, Says Brazil
----------------------------------------------------------------
Yacimientos Petroliferos Fiscales Bolivianos, Bolivia's state oil firm, must
hire independent auditors to appraise the value the two refineries of
Petroleo Brasileiro -- its Brazilian counterpart -- in Bolivia to conclude
bilateral talks, Jose Gabrielli, the former's chief executive officer, told
reporters.

Business News Americas relates that Petroleo Brasileiro's two plants in
Bolivia are:

          -- 40,000-barrel per day Gualberto Villaruel in the
             Cochabamba department, and

          -- 20,000-barrel per day Guillermo Elder in Santa
             Cruz.

Petroleo Brasileiro is negotiating with Yacimientos Petroliferos on the
value of a 51% stake in the two plants, which were transferred to Bolivian
control under the hydrocarbons nationalization decree, BNamericas notes.

Mr. Gabrielli told BNamericas, "There is no deadline to conclude these
negotiations."

Yacimientos Petroliferos would pay Petroleo Brasileiro the operating costs
to pay for the transfer of control of the plants as well as a return for the
latter's investments, BNamericas reports.

                About Petroleo Brasileiro

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA aka Petrobras -- http://www2.petrobras.com.br/-- was founded in 1953.
The company explores, produces, refines, transports, markets, distributes
oil and natural gas and power to various wholesale customers and retail
distributors in Brazil.

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

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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


* BOLIVIA: State Firm Forms Petroandina Gas Venture with PDVSA
--------------------------------------------------------------
Yacimientos Petroliferos Fiscales Bolivianos, the state-owned oil company of
Bolivia, has formed a joint venture called Petroandina Gas with Petroleos de
Venezuela SA, its Venezuelan counterpart, Business News Americas reports.

BNamericas relates that Petroandina Gas will construct the US$100-million
Yacuiba gas-liquids separation plant in the Tarija department in Bolivia.

Saul Escalera, chief of hydrocarbons industrialization at Yacimientos
Petroliferos, told BNamericas that the plant will process 300 million cubic
feet per day of natural gas to produce 309 tons per day of liquefied
petroleum gas and 854 barrels per day of natural gasoline.

The construction of the Yacuiba plant will be tendered next year.  Works
will start in the second half of the year with production expected to start
up in June 2008, BNamericas notes, citing Mr. Escalera.

According to BNamericas, the plant will send the products with added value
to Argentina.

Mr. Escalera told BNamericas that the plant is the first of two stages
Yacimientos Petroliferos planned.  The second would start in 2009 and
relates to the development of a similar project in either Rio Grande or
Villamontes in Bolivia.

The second plant would need US$70 million in investment, Agencia Boliviana
de Informacion reports.

               About Petroleos de Venezuela

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.

                        *    *    *

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
===========


ALCATEL-LUCENT: Closed Merger Cues Moody's to Cut Rating to Ba2
---------------------------------------------------------------
Moody's Investors Service has downgraded to Ba2 from Ba1 the Corporate
Family Rating of Alcatel, which has completed its merger with Lucent
Technologies and was renamed to Alcatel-Lucent.  The ratings for senior debt
of Alcatel were equally lowered to Ba2 from Ba1 and its Not-Prime rating for
short-term debt was affirmed.

At the same time, Moody's raised the ratings for senior debt of Lucent to
Ba3 from B1 reflecting both the standalone credit profile of Lucent and,
given the strategic importance of Lucent to round-off the group's product
range and regional presence, expected financial support from Alcatel-Lucent,
although this is not formally committed at this time.  The ratings for the
other legacy debt of Lucent were raised to B2 from B3 for subordinated debt
and trust preferreds, and to P(B3) from P(Caa1) for preferred stock issuable
under its shelf registration.

Moody's has withdrawn Lucent's Corporate Family Rating of B1, assuming that
management of the two entities will be fully integrated over the next
several months and all of Lucent's non-US activities merged with their
Alcatel counterparts.  This should result in a rapid convergence of the
credit risks of the affected companies.  The outlook for all these ratings
is stable.  This rating action concludes the rating reviews initiated on
April 3, 2006.

Wolfgang Draack, Senior Vice President and lead analyst for Alcatel-Lucent,
summarized, "The rating downgrade reflects execution challenges related to
the integration of two large companies while keeping major customers, market
share and key personnel in an increasingly competitive telecommunication
equipment market, but also the broad market position of Alcatel-Lucent and
the potential for realizing and retaining substantial cost-savings that
could drive EBITA-margins into the high single-digits medium-term.  While
the outlook for the ratings is stable, we would see potential for a rating
upgrade if the company were to keep sales growth above 5% and to reach
EBITA-margins during 2007 close to double-digit levels, all while
maintaining a strong and liquid capital structure."

The Ba2 corporate family rating reflects:

   (i) Alcatel-Lucent's strong customer relationships and the
       large installed base supporting its market shares;

  (ii) the broadest offering of all telecom equipment providers
       with very advanced technology allowing the company to
       service its customers for their feature-rich
       telecommunications and convergence strategies;

(iii) the potential for realizing synergy savings targeted at
       about EUR1.4 billion by management;

  (iv) the strengthening credit profile of Alcatel on a
       standalone basis providing the financial basis for the
       combination; and

   (v) as a result of the for-share merger, a strong liquidity
       position with a relatively moderately levered capital
       structure (Moody's estimates pro-forma net debt/EBITDA
       for calendar year 2005 at 2.8-times initially after the
       merger and the Thales transaction, which involves selling
       Alcatel's transportation, security and space activities
       to Thales in return for an additional 11.5% stake in the
       company and about EUR710 million cash) of the combined
       group.

These credit positives, however, are balanced by:

   (i) the challenges related to the integration of two
       corporate cultures and various technology platforms;

  (ii) execution risk for realizing and retaining the bulk of
       the targeted synergy benefits in an increasing price
       competitive equipment market;

(iii) a relatively weak fiscal 2006 performance of Lucent in
       its core markets -- although the fourth fiscal quarter
       showed some improvement,

  (iv) a complex technology roadmap in 3rd generation (3G)
       wireless telephony; and

   (v) modest pro-forma calendar year 2005 profitability  and
       interest coverage initially after adjusting EBIT for
       amortization of acquired intangibles particularly and
       after the Thales transaction..

The outlook for Alcatel-Lucent's Ba2 CFR is stable.  It anticipates:

   -- mid-single digit growth for the company;

   -- measurable progress on the integration and realization of
      synergy benefits in 2007;

   -- modest improvements in profitability during 2007; but

   -- no further material M&A activity in the integration phase
      even though opportunities may well present themselves.

The last rating action on April 3, 2006, placed the Ba1 senior debt ratings
for Alcatel on review for possible downgrade and the B1 unsecured debt
ratings of Lucent on review for possible upgrade following the merger
announcement.

Downgrades:

   Alcatel-Lucent

   -- Corporate Family Rating, Downgraded to Ba2 from Ba1;

   -- Senior Unsecured Bank Credit Facility, Downgraded to Ba2
      from Ba1

   -- Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to
      Ba2 from Ba1;

   -- Senior Unsecured Medium-Term Note Program, Downgraded to
      Ba2 from Ba1; and

   -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ba2
      from Ba1.

Upgrades:

   Lucent Technologies Capital Trust I

   -- Preferred Stock Preferred Stock, Upgraded to B2 from B3

   Lucent Technologies, Inc.

   -- Multiple Seniority Shelf, Upgraded to a range of (P)B3 to
      (P)Ba3 from a range of (P)Caa1 to (P)B1;

   -- Subordinate Conv./Exch. Bond/Debenture, Upgraded to B2
      from B3;

   -- Senior Unsecured Conv./Exch. Bond/Debenture, Upgraded to
      Ba3 from B1; and

   -- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3
      from B1.

Outlook Actions:

   Alcatel-Lucent

   -- Outlook, Changed To Stable From Rating Under Review

   Lucent Technologies Capital Trust I

   -- Outlook, Changed To Stable From Rating Under Review

   Lucent Technologies, Inc.

   -- Outlook, Changed To Stable From Rating Under Review

Withdrawals:

   Lucent Technologies, Inc.

   -- Speculative Grade Liquidity Rating, Withdrawn, previously
      rated SGL-2

   -- Corporate Family Rating, Withdrawn, previously rated B1.

                   About Alcatel-Lucent

Alcatel-Lucent provides solutions that enable service providers, enterprises
and governments worldwide, to deliver voice, data and video communication
services to end-users.  As a leader in fixed, mobile and converged broadband
networking, IP technologies, applications, and services, Alcatel-Lucent
offers the end-to-end solutions that enable compelling communications
services for people at home, at work and on the move.  With 79,000 employees
and operations in more than 130 countries, Alcatel-Lucent is a local partner
with global reach.  Alcatel-Lucent achieved proforma combined revenues of
EUR18.6 billion in 2005, and is incorporated in France, with executive
offices located in Paris.

                 About Lucent Technologies

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


BANCO DO BRASIL: Lima Neto Named Interim Chief Executive Officer
----------------------------------------------------------------
Banco do Brasil said in a statement that Guido Mantega, the finance minister
of Brazil, has appointed Antonio Francisco de Lima Neto as the bank's
interim chief executive officer.

Business News Americas relates that Mr. de Lima Neto was Banco do Brasil's
vice-president of retail and distribution.  He started working at Banco do
Brasil in 1979.  He had served as vice president of wholesale and
international business at the bank from 2004 to 2005.

Mr. de Lima Neto will be replacing Rossano Maranhao, who asked to leave
Banco do Brasil to take up a job in the private sector, BNamericas states.

As reported in the Troubled Company Reporter-Latin America on Nov. 29, 2006,
Rossano Maranhao was supposed to remain as Banco do Brasil's chief executive
officer for up to three months.

Published reports say that Mr. Maranhao met with Brazil's President Luiz
Inacio Lula da Silva on Dec. 11 and outlined Banco do Brasil's objectives
for the next four years.

Mr. Maranhao told the local press, "I've competed a cycle.  I've fulfilled
the instructions of the president, the finance ministry and the bank's
board."

The change at chief executive officer would not cause any great changes at
Banco do Brasil due to the board's strategy and the government's economic
policies, BNamericas notes, citing Jose Francisco Cataldo, a local analyst.

Aldemir Bendine now becomes vice president of retail and distribution,
BNamericas reports.

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

                        *    *    *

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


COMPANHIA DE BEBIDAS: OKs Interest Distribution on Own Capital
--------------------------------------------------------------
Companhia de Bebidas SA aka Ambev's board of directors resolved by unanimous
vote to approve the distribution of interest on own capital, on account of
profits of 2006, to be attributed to mandatory dividends for the year 2006,
at BRL7.9000 per lot of thousand common shares and BRL8.6900 per lot of
thousand preferred shares.

The distribution will be taxed pursuant to prevailing laws, which will
result in a net distribution of BRL6.7150 per lot of thousand common shares
and BRL7.3865 per lot of thousand preferred shares.

The referred payments will be made on Dec. 28, 2006, subject to the approval
of the next Ordinary General Meeting, based on the shareholding as of Dec.
19, 2006, and record date for ADRs on Dec. 22, 2006, without incurring
monetary restatement.  Shares and ADRs will be traded ex-dividends as of
Dec. 20, 2006.

Based in Sao Paulo, Brazil, AmBev -- http://www.ambev.com.br/
-- is the largest brewer in Latin America and the fifth largest brewer in
the world.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 4, 2006, Moody's
Investors Service upgraded to Ba1 from Ba2 the foreign currency issuer
rating of Companhia de Bebidas das Americas aka AmBev to reflect the upgrade
of Brazil's foreign currency country ceiling to Ba1 from Ba2.  AmBev's
global local currency issuer rating of Baa3 and the foreign currency rating
of Baa3 for its debt issues remain on review for possible upgrade.


COMPANHIA ENERGIA: Moody's Lifts Corporate Family Rating to Ba2
---------------------------------------------------------------
Moody's America Latina upgraded the corporate family rating of Companhia
Paranaense de Energia aka Copel to Ba2 from Ba3 on its global scale and to
Aa2.br from A3.br on its Brazilian national scale.  The rating outlook is
stable.  This rating action concludes the review process initiated on July
26, 2006.

Moody's upgraded thses ratings:

   -- Corporate Family Rating: to Ba2 from Ba3 (Global Local
      Currency) and to Aa2.br from A3.br (Brazilian National
      Scale);

   -- BRL500 million Senior Unsecured Guaranteed Debentures due
      2007: to Ba2 from Ba3 (Global Local Currency) and to
      Aa2.br from A3.br (Brazilian National Scale); and

   -- BRL400 million Senior Secured Guaranteed Debentures due
      2009: to Ba1 from Ba2 (Global Local Currency) and to
      Aa1.br from A1.br (Brazilian National Scale).

The upgrade reflects Moody's view of Copel's improved credit risk profile
based on sustainable cash flow metrics, which include RCF to Total Adjusted
Debt of 53% and FFO to Interest of 6.1x at Sept. 30, 2006.  In addition, the
upgrade factored in the significantly reduced contingency liabilities
following the end of the dispute with El Paso regarding the Araucaria power
plant.

With 59% of its voting shares owned by the State of Parana, Copel is
considered a government-related issuer in accordance with Moody's rating
methodology entitled "The Application of Joint Default Analysis to
Government-Related Issuers".

Moody's methodology for GRIs systematically incorporates into the rating the
company's stand-alone credit risk profile or Baseline Credit Assessment or
BCA as well as the likelihood that a government would provide extraordinary
support for the company's debt obligations.

The ratings of Copel result from the application of joint-default analysis
using the company's BCA, the rating of the State of Parana, Moody's view of
high dependence, and low probability of extraordinary support from the
controlling shareholder. The BCA of a GRI is expressed on a 1-21 scale,
corresponding to the 21 ratings ranging from Aaa to C.  Copel's ratings
incorporate a BCA that is currently in the 11-13 range.

Copel has reported consistent improvements in debt protection and liquidity
metrics on a consolidated basis in the past years following the energy
rationing in 2001 to 2002, reflecting the recovery of energy demand and
tariff adjustments, combined with a prudent financial management.  The
improvements were achieved despite interference by the controlling
shareholder, the State of Parana, whose policy of extending tariff discounts
to a considerable portion of Copel's clients since 2003 has resulted in less
detrimental impacts to the company's cash flow than originally anticipated
by Moody's.  FFO to Total Adjusted Debt of 58% and Total Adjusted Debt to
Capitalization of 29% at September 30, 2006 compare positively with most
peers rated in the Ba category, such as Rio Grande Energia and Furnas
Centrais Eletricas.  Copel has maintained a substantial cash position that
when combined with historically strong free cash flows has provided adequate
financial flexibility.   Refinancing needs for 2007 have already been
addressed through the issuance in October 2006 of BRL600 million debentures
due in 2011.

The favorable settlement of the dispute with El Paso regarding the Araucaria
thermal power plant, and the successful renegotiation of the related gas
supply agreements have significantly reduced Copel's contingent liabilities.
These gas supply agreements involve Companhia Paranaense de Gas aka Compagas
and Petroleo Brasileiro SA aka Petrobras.

Copel's ratings continue to be supported by its essentially monopolistic
position to distribute electricity in its concession territory with
attractive demographics and fully regulated activities.  Revenues from power
generation and transmission are generated under long-term contracts approved
by the regulator.  In general, Moody's regards regulated activities as
benefiting from more stable and predictable revenues and cash flows.
Although Moody's recognizes that the Brazilian regulatory framework for the
energy sector has supported a more stable environment for the industrial
players, there are still significant uncertainties regarding the current
regulatory environment.  The lack of track record for the execution of
guarantees within the regulated market and substantial interference power of
the Federal Government remain concerns at the present time.  In accordance
with Moody's global rating methodology for regulated electric utilities,
Copel is viewed as being in the lowest third of the high industry risk
category with the supportiveness of the Brazilian regulatory environment
classified as 4.

The stable outlook reflects Moody's expectation that the company will
continue to benefit from increasing demand for electricity, while prudently
managing its investments in order to maintain adequate debt coverage metrics
for the rating category, including a ratio of FFO to Total Adjusted Debt
above 30%.

Headquartered in Curitiba - Brazil, Companhia Paranaense de Energia -- Copel
is an integrated energy utility with revenues of approximately BRL5,248
million (USD 2,385 million) in the last twelve months through Sept. 30,
2006.  Copel operates 17 hydroelectric plants and two thermal power plants
with total capacity of 5,145 MW, in addition to about 7,000 km of
transmission lines and 165,576 km of distribution lines serving a total of
3.3 million clients.


COMPANHIA SIDERURGICA: Ups Corus Bid to US$9.6 Billion
------------------------------------------------------
Brazillian steelmaker Companhia Siderurgica Nacional increased its purchase
offer for Corus Group Plc to US$9.6 billion or 515 pence a share, topping
Tata Steel Ltd.'s 500 pence per share offer.

Companhia Siderurgica's move pushed Corus's stock to rise as high as 529.5
pence, signaling that investors expect another bid, Bloomberg News says.

Regardless of who wins the bidding war, a merger with Corus would result to
the fifth largest steel firm in the world.

Companhia Siderurgica and Corus have held merger talks in 2002 but
competition issues and unfavorable conditions in the steel industry hindered
negotiations.

Companhia Siderurgica's proposed purchase of Corus will be be funded through
a BP4.35 billion of debt underwritten by Barclays Plc, ING Groep NV and
Goldman Sachs Group Inc., Bloomberg says, citing Chief Financial Officer
Otavio Lazcano.

Meanwhile, Companhia Siderurgica promised to pay BP138 million to fund the
deficit in the Corus Engineering Steels Pension Scheme, Bloomberg says.
Also, the steelmaker will up the contribution rate on the British Steel
Pension Scheme to 12% from 10% until March 31, 2009.  The company's success
in acquiring Corus hinges on the unions support, according to published
reports.

Shares of Corus rose Monday to 27.25 pence, or 5.5%, to 527.25 pence in
London.  Companhia Siderurgica's stock dropped 1% to BRL63.9 in Sao Paulo.

Tata shares are the worst performers on India's benchmark index in the past
three months, according to Bloomberg.  The stock slumped 29 rupees, or 6%,
to 453.4 rupees in Mumbai on Monday, the sharpest decline since June 26.

                      About Tata Steel

Established in 1907, Tata Steel is Asia's first and India's largest private
sector steel company. Tata Steel is among the lowest cost producers of steel
in the world and one of the few select steel companies in the world that is
EVA+ (Economic Value Added).

                     About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its name to Corus
Group after acquiring most of Dutch rival Koninklijke Hoogovens.  Corus
makes coated and uncoated strip products, sections and plates, wire rod,
engineering steels, and semi-finished carbon steel products.  It also
manufactures primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product manufacturing
industries.

                 About Companhia Siderurgica

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.

                        *    *    *

As reported on Nov. 21, 2006, Standard & Poor's Ratings Services placed its
'BB' corporate credit rating on Brazil-based steel maker Companhia
Siderurgica Nacional on Credit Watch with negative implications after the
company announced its intention to acquire Corus Group Plc.


COMPANHIA SIDERURGICA: Corus Chairman Favors Bid Over Tata's
------------------------------------------------------------
Jim Leng, Corus Group Plc's chairman, gave his approval to the 515 pence a
share offer presented by Companhia Siderurgica Nacional, The Times of India
reports.

The chairman believes that the merger with the Brazilian steelmaker is
desirable because "the combination of the two businesses will create a
strong platform from which to compete and grow in an increasingly global
market."

The Times said Corus shareholders are expected to cast their votes on Dec.
20.

Corus indicated Monday that Companhia Siderurgica's offer has been sweetened
by talks of cost savings and easy access to high quality, low-cost iron ore,
the Times relates.

Companhia Siderurgica's Chairman and Chief Executive Officer Benjamin
Steinbruch was quoted by the Times as saying: "The strategic impetus for
this combination is growth-growth in Brazil, in Europe and for our combined
workforces. Our goal is to unlock the value of our iron ore assets through
Corus, transforming them into cost-effective, high-quality steel products
using Corus' engineering capabilities and its excellent European
distribution platform.  This is a winning combination for all stakeholders."

Companhia Siderurgica seems to be covering all bases and leaves Tata with no
room to maneuver.

                      About Tata Steel

Established in 1907, Tata Steel is Asia's first and India's largest private
sector steel company. Tata Steel is among the lowest cost producers of steel
in the world and one of the few select steel companies in the world that is
EVA+ (Economic Value Added).

                     About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its name to Corus
Group after acquiring most of Dutch rival Koninklijke Hoogovens.  Corus
makes coated and uncoated strip products, sections and plates, wire rod,
engineering steels, and semi-finished carbon steel products.  It also
manufactures primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product manufacturing
industries.

                 About Companhia Siderurgica

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.

                        *    *    *

As reported on Nov. 21, 2006, Standard & Poor's Ratings Services placed its
'BB' corporate credit rating on Brazil-based steel maker Companhia
Siderurgica Nacional on Credit Watch with negative implications after the
company announced its intention to acquire Corus Group Plc.


COMPANHIA SIDERURGICA: S&P Holds BB Rating on CreditWatch
---------------------------------------------------------
Standard & Poor's Ratings Services said its 'BB' long-term corporate credit
ratings on Brazil-based steel maker Companhia Siderurgica Nacional remain on
CreditWatch with negative implications following the announcement of an
increase in its conditional all-cash bid for Corus Group PLC (Corus;
BB/Watch Dev/B) to 515 pence per share, up from its initial offer of 475 per
share.  Companhia Siderurgica's counterbid announced today follows Tata
Steel Ltd.'s proposal to raise its offer for Corus to 500 pence per share,
which was announced on Dec. 10, 2006.

Standard & Poor's understand that, apart from the change in the proposed
acquisition price, the characteristics of the transaction remain unchanged,
such as the conditional aspects of the proposal, including completion of
confirmatory due diligence satisfactory to Companhia Siderurgica,
finalization of financing arrangements, and a recommendation from Corus's
board.  The rating agency also understand the financial package negotiated
by Companhia Siderurgica with its partner banks to fund the acquisition
already incorporates a potential change in the final acquisition price, and
that it still includes debt instruments primarily non-recourse to the
company's assets in Brazil.

Standard & Poor's emphasizes its concerns about the impact of the proposed
transaction on Companhia Siderurgica's financial profile, as the company has
indicated its intention to use part of its cash holdings for the transaction
and that it does not envision an equity issuance to finance the acquisition.
While it is unclear whether Tata Steel would revise its offer and, in that
case, whether Companhia Siderurgica would consider another counterbid, the
eventual acquisition price and cash outflow from the company in its offer
for Corus could have an adverse impact on its consolidated financial
profile.

The resolution of the CreditWatch continues to be subject to the
developments of the transaction, including progress of offers made by both
Companhia Siderurgica and Tata, and further clarity on the resulting
financial profile for the consolidated new entity.


CORUS GROUP: Companhia Siderurgica Ups Bid to 515 Pence a Share
---------------------------------------------------------------
Brazillian steelmaker Companhia Siderurgica Nacional increased its purchase
offer for Corus Group Plc to US$9.6 billion or 515 pence a share, topping
Tata Steel Ltd.'s 500 pence per share offer.

Companhia Siderurgica's move pushed Corus's stock to rise as high as 529.5
pence, signalling that investors expect another bid, Bloomberg News says.

Regardless of who wins the bidding war, a merger with Corus would result to
the fifth largest steel firm in the world.

Companhia Siderurgica and Corus have held merger talks in 2002 but
competition issues and unfavorable conditions in the steel industry hindered
negotiations.

Companhia Siderurgica's proposed purchase of Corus will be be funded through
a BP4.35 billion of debt underwritten by Barclays Plc, ING Groep NV and
Goldman Sachs Group Inc., Bloomberg says, citing Chief Financial Officer
Otavio Lazcano.

Meanwhile, Companhia Siderurgica promised to pay BP138 million to fund the
deficit in the Corus Engineering Steels Pension Scheme, Bloomberg says.
Also, the steelmaker will up the contribution rate on the British Steel
Pension Scheme to 12% from 10% until March 31, 2009.  The company's success
in acquiring Corus hinges on the unions support, according to published
reports.

Shares of Corus rose Monday to 27.25 pence, or 5.5%, to 527.25 pence in
London.  Companhia Siderurgica's stock dropped 1% to BRL63.9 in Sao Paulo.

Tata shares are the worst performers on India's benchmark index in the past
three months, according to Bloomberg.  The stock slumped 29 rupees, or 6%,
to 453.4 rupees in Mumbai on Monday, the sharpest decline since June 26.

                       About Tata Steel

Established in 1907, Tata Steel is Asia's first and India's largest private
sector steel company. Tata Steel is among the lowest cost producers of steel
in the world and one of the few select steel companies in the world that is
EVA+ (Economic Value Added).

                   About Companhia Siderurgica

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.

                      About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its name to Corus
Group after acquiring most of Dutch rival Koninklijke Hoogovens.  Corus
makes coated and uncoated strip products, sections and plates, wire rod,
engineering steels, and semi-finished carbon steel products.  It also
manufactures primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product manufacturing
industries.  The company has sales offices in Brazil and Mexico.


                        *    *    *

As reported in the Troubled Company Reporter on Oct. 25, 2006,
Moody's Investors Service placed Corus Group plc's Ba2 Corporate
Family and other ratings under review.

In March 2006, Standard & Poor's Ratings Services placed its
'BB-' long-term corporate credit rating for Corus Group on
CreditWatch.

At the same time, Fitch Ratings changed Corus Group's outlook
to Positive from Stable and affirmed its Issuer Default Rating at BB-.


CORUS GROUP: Chairman Favors Companhia Siderurgica's Bid
--------------------------------------------------------
Jim Leng, Corus Group Plc's chairman, gave his approval to the 515 pence a
share offer presented by Companhia Siderurgica Nacional, The Times of India
reports.

The chairman believes that the merger with the Brazilian steelmaker is
desirable because "the combination of the two businesses will create a
strong platform from which to compete and grow in an increasingly global
market."

The Times said Corus shareholders are expected to cast their votes on Dec.
20.

Corus indicated Monday that Companhia Siderurgica's offer has been sweetened
by talks of cost savings and easy access to high quality, low-cost iron ore,
the Times relates.

Companhia Siderurgica's Chairman and Chief Executive Officer Benjamin
Steinbruch was quoted by the Times as saying: "The strategic impetus for
this combination is growth-growth in Brazil, in Europe and for our combined
workforces. Our goal is to unlock the value of our iron ore assets through
Corus, transforming them into cost-effective, high-quality steel products
using Corus' engineering capabilities and its excellent European
distribution platform. This is a winning combination for all stakeholders."

Companhia Siderurgica seems to be covering all bases and leaves Tata with no
room to maneuver.

                      About Tata Steel

Established in 1907, Tata Steel is Asia's first and India's largest private
sector steel company. Tata Steel is among the lowest cost producers of steel
in the world and one of the few select steel companies in the world that is
EVA+ (Economic Value Added).

                 About Companhia Siderurgica

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.

                     About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its name to Corus
Group after acquiring most of Dutch rival Koninklijke Hoogovens.  Corus
makes coated and uncoated strip products, sections and plates, wire rod,
engineering steels, and semi-finished carbon steel products.  It also
manufactures primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product manufacturing
industries.  The company has sales offices in Brazil and Mexico.


                        *    *    *

As reported in the Troubled Company Reporter on Oct. 25, 2006,
Moody's Investors Service placed Corus Group plc's Ba2 Corporate
Family and other ratings under review.

In March 2006, Standard & Poor's Ratings Services placed its
'BB-' long-term corporate credit rating for Corus Group on
CreditWatch.

At the same time, Fitch Ratings changed Corus Group's outlook
to Positive from Stable and affirmed its Issuer Default Rating at BB-.


DURA AUTOMOTIVE: Court Gives Final Nod on Vendor Claims Payment
---------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District
of Delaware approved on a final basis DURA Automotive Systems, Inc. and its
debtor affiliates request to direct all applicable banks and other financial
institutions to receive, process, honor and pay any and all checks and fund
transfer requests made by the Debtors related to Critical Vendor Claims or
Priority Vendor Claims.

Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, relates that certain parties supply goods or services
critical to the continued operation of the Debtors' business.

The Debtors are the sole manufacturers of certain essential component parts
and vehicle systems used by major automobile original equipment
manufacturers, including Ford Motor Company, General Motors Corporation and
DaimlerChrysler Corporation, as well as a number of tier one automotive
parts suppliers.  If outside suppliers are needed, the Debtors typically
contract with one vendor for a particular component and rely on that vendor
as their sole source supplier.

In general, the Critical Vendors fall into two main categories:

    (1) The materials vendors supply, among other things, bulk
        raw materials like coil steel, wire, bulk resins, and
        flat glass; components and parts directly assembled into
        the Debtors' products; production materials like welding
        wire and lubricants; and other materials consumed in the
        production process.

    (2) The maintenance vendors provide parts, materials, and
        services to the Debtors' specialized manufacturing
        equipment and machinery.

Without timely shipments from their sole-source suppliers, the
Debtors' manufacturing facilities would lack the requisite goods necessary
for their operational needs, and in some instances, could be forced to shut
down certain facilities shortly after a missed shipment, Mr. Collins says.

By this motion, the Debtors seek the Court's authority to pay the
prepetition claims of certain critical vendors and administrative
claimholders, subject to these cap amounts:

                            Estimated       Interim       Final
                            Payables        Relief        Relief
                            as of 10/26     Sought        Sought
                            -----------     -------       ------
Critical Vendor Claims US$28,830,384 US$9,250,000 US$29,000,000
    Priority Vendor Claims 24,321,404    9,250,000    25,000,000

Priority Vendors are vendors who sold or transferred goods to the Debtors in
the ordinary course of their business during the
20-day period prior to the bankruptcy filing date.  Priority Vendor Claims
are entitled to administrative expense priority under Section 503(b)(9) of
the Bankruptcy Code.

The Debtors estimate that the claims of about 500 vendors constitute
Critical Vendor Claims.

The Debtors also ask the Court to approve a procedure for addressing those
vendors who repudiate and refuse to honor their postpetition contractual
obligations to the Debtors.

                Identifying Critical Vendors

The Debtors, in conjunction with Glass & Associates, Inc., closely reviewed
their accounts payable and prepetition vendor lists and consulted with
facility management and others throughout the Debtors' management and
purchasing operations to identify those creditors most essential to their
operations.

The criteria considered included whether:

    (a) a particular vendor is a "sole-source" provider;

    (b) certain quality control requirements of the OEMs prevent
        the Debtors from replacing the vendor;

    (c) the Debtors currently receive advantageous pricing or
        other terms from a vendor; and

    (d) a vendor additionally might face its own liquidity
        crisis, due to that vendor's operational or cash flow
        issues, if the Debtors do not immediately pay its
        prepetition claim.

The Debtors also considered whether a vendor would make good on its threat
to stop shipping goods and whether an amount less than the full amount of a
vendor's claim could induce continuation of shipments.

The Debtors propose to condition payment to Critical Vendors and
Priority Vendors upon agreement to continue supplying goods and services to
the Debtors on terms that are acceptable to the Debtors with an awareness of
industry trade terms between the parties.  The Debtors reserve the right to
negotiate trade terms with any vendor demanding terms less favorable to
them.

The Debtors seek the Court's authority to enter into Trade
Agreements with certain Critical Vendors, if and at the time the
Debtors determine in their discretion that the agreement is necessary to
their postpetition operations.

The Debtors also seek the Court's authority to make payments on account of a
Critical/Priority Vendor's claims in the event that no Trade Agreement has
been reached, if the Debtors determine, in their business judgment, that
failure to pay the Critical/Priority Vendor Claim is likely to result in
irreparable harm to their business operations.

The Debtors will maintain a matrix summarizing, as of the
date of bankruptcy filing:

    1. the name of each Critical/Priority Vendor;

    2. the amount each Critical/Priority Vendor was been paid on
       account of its Critical/Priority Vendor Claims; and

    3. the goods and/or services provided by each
       Critical/Priority Vendor.

Mr. Collins maintains that the Debtors have anticipated access to sufficient
DIP financing to pay all Critical Vendor Claims and Priority Vendor Claims
as the amounts become due in the ordinary course of their businesses.

Rochester Hills, Mich.-based DURA Automotive Systems, Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and
manufacturer of driver control systems, seating control systems, glass
systems, engineered assemblies, structural door modules and exterior trim
systems for the global automotive industry.  The company is also a supplier
of similar products to the recreation vehicle and specialty vehicle
industries.  DURA sells its automotive products to North American, Japanese
and European original equipment manufacturers and other automotive
suppliers.

The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton
& Finger, P.A. Attorneys are the Debtors' co-counsel.  Baker & McKenzie acts
as the Debtors' special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors' investment
banker.  Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and balloting for
the Debtors and Brunswick Group LLC acts as their Corporate Communications
Consultants for the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities.
(Dura Automotive Bankruptcy News, Issue No. 6; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Court Okays Prepetition Shipping Claims Payment
----------------------------------------------------------------
DURA Automotive Systems, Inc., sought and obtained authority from the U.S.
Bankruptcy Court for the District of Delaware to continue to pay, in the
ordinary course of business, prepetition claims of Shippers, Warehousemen
and Lien Claimants.

The payments will be subject to these caps:

                       Estimated       Interim        Final
                       Payables        Relief         Relief
                       as of 10/26     Sought         Sought
                       -----------     -------        ------
    Shippers &        US$735,963     US$740,000     US$740,000
    Warehousemen Claims

    Statutory Lien     2,548,109      2,600,000      2,600,000
    Claims (includes
             Tooling)
                      -----------    ----------    ----------
                     US$3,284,072   US$3,340,000   US$3,340,000
                      ===========    ==========    ==========

The Debtors' supply and delivery system depends upon the use of reputable
domestic common carriers, shippers, truckers and customs agents, as well as
a network of third-party warehouses to store goods while in transit, Mark D.
Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware,
states.

The Debtors employ Chieftain Logistics, Inc., as their primary third party
logistics coordinator for in-bound, out-bound, and inter-facility transport
of goods.  Generally, the Debtors pay Chieftain, and Chieftain subsequently
pays the Shippers and Warehousemen.

The Debtors also routinely transact business with a number of other third
parties who can assert liens against the Debtors and their customers'
property, if the Debtors fail to pay for the goods or services rendered,
according to Mr. Collins.  These third parties perform various services,
including manufacturing and repair of tooling, dies, molds and other
equipment and producing parts necessary for the Debtors' product programs.

The Debtors anticipate that the Shippers and Warehousemen will demand
immediate payment for their services and may refuse to deliver or release
goods in their possessions until their claims are satisfied and their liens
redeemed.

Also, as of the date of bankruptcy filing, a substantial number of Lien
Claimants may not have been paid for certain prepetition goods and services,
Mr. Collins relates.  This may result in many of the Lien Claimants having a
right to assert and perfect, mechanics' or artisans' liens against the
Debtors' property notwithstanding the automatic stay, Mr. Collins continues.

As a result, certain Lien Claimants may also refuse to perform their ongoing
obligations under their existing agreements with the Debtors.  Additionally,
the existence and perfection of those Mechanics' Liens could possibly place
the Debtors out of compliance under their various leases and customer
agreements,
Mr. Collins points out.

Moreover, many states provide certain Tool Makers and Tool Users with liens
on tooling manufactured for the Debtors or their customers and on the
products manufactured.  The Statutory Liens often allow the parties to
retain possession of the tools, or impair title of the tool by filing a
security interest, until the Debtors satisfy the outstanding amounts owed,
Mr. Collins avers.  The Statutory Liens may also be unaffected by the
automatic stay.

Mr. Collins asserts that the Debtors' request is necessary or appropriate
to:

    (a) obtain release of critical or valuable goods, tooling or
        equipment that may be subject to liens;

    (b) maintain a reliable, efficient and smooth distribution
        system; and

    (c) induce critical Shippers, Warehousemen, and other Lien
        Claimants to continue to carry goods, tooling and
        equipment and make timely delivery.

The Debtors propose to condition the payment of Lien Claims, in their sole
discretion, on the written acknowledgment of the individual Lien Claimants
to continue supplying goods and services to the Debtors.

The Debtors further ask the Court to direct all applicable banks and other
financial institutions to receive, process, honor, and pay all checks and
all electronic payment requests made by the Debtors related to their
prepetition obligations to the Shippers, Warehousemen and Lien Claimants.

"Paying the Shipping and Warehousing Charges and the Lien Claimant Claims
that accrued before the [bankruptcy filing date] is critical to [the
Debtors'] reorganization efforts," Mr. Collins says.

"If the Debtors' business operations are to continue, the Debtors must be
able to maintain their highly effective supply and delivery system in which
each of the Shippers and Warehousemen and the Lien Claimants are a vital
link," Mr. Collins adds

Rochester Hills, Mich.-based DURA Automotive Systems, Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and
manufacturer of driver control systems, seating control systems, glass
systems, engineered assemblies, structural door modules and exterior trim
systems for the global automotive industry.  The company is also a supplier
of similar products to the recreation vehicle and specialty vehicle
industries.  DURA sells its automotive products to North American, Japanese
and European original equipment manufacturers and other automotive
suppliers.

The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr.
District of Delaware Case No. 06-11202).  Richard M. Cieri, Esq., Marc
Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq.,
of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy
proceedings.  Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason
M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the
Debtors' co-counsel.  Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.  Miller Buckfire
& Co., LLC is the Debtors' investment banker.  Glass & Associates Inc.,
gives financial advice to the Debtor.  Kurtzman Carson Consultants LLC
handles the notice, claims and balloting for the Debtors and Brunswick Group
LLC acts as their Corporate Communications Consultants for the Debtors.  As
of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and
US$1,730,758,000 in total liabilities.  (Dura Automotive Bankruptcy
News, Issue No. 6; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


LUCENT: Moody's Lifts Sr. Debt Rating to Ba3 from B1 on Merger
--------------------------------------------------------------
Moody's Investors Service has downgraded to Ba2 from Ba1 the Corporate
Family Rating of Alcatel, which has completed its merger with Lucent
Technologies and was renamed to Alcatel-Lucent.  The ratings for senior debt
of Alcatel were equally lowered to Ba2 from Ba1 and its Not-Prime rating for
short-term debt was affirmed.

At the same time, Moody's raised the ratings for senior debt of Lucent to
Ba3 from B1 reflecting both the standalone credit profile of Lucent and,
given the strategic importance of Lucent to round-off the group's product
range and regional presence, expected financial support from Alcatel-Lucent,
although this is not formally committed at this time.  The ratings for the
other legacy debt of Lucent were raised to B2 from B3 for subordinated debt
and trust preferreds, and to P(B3) from P(Caa1) for preferred stock issuable
under its shelf registration.

Moody's has withdrawn Lucent's Corporate Family Rating of B1, assuming that
management of the two entities will be fully integrated over the next
several months and all of Lucent's non-US activities merged with their
Alcatel counterparts.  This should result in a rapid convergence of the
credit risks of the affected companies.  The outlook for all these ratings
is stable.  This rating action concludes the rating reviews initiated on 3
April 2006.

Wolfgang Draack, Senior Vice President and lead analyst for Alcatel-Lucent,
summarized, "The rating downgrade reflects execution challenges related to
the integration of two large companies while keeping major customers, market
share and key personnel in an increasingly competitive telecommunication
equipment market, but also the broad market position of Alcatel-Lucent and
the potential for realizing and retaining substantial cost-savings that
could drive EBITA-margins into the high single-digits medium-term.  While
the outlook for the ratings is stable, we would see potential for a rating
upgrade if the company were to keep sales growth above 5% and to reach
EBITA-margins during 2007 close to double-digit levels, all while
maintaining a strong and liquid capital structure."

The Ba2 corporate family rating reflects :

   (i) Alcatel-Lucent's strong customer relationships and the
       large installed base supporting its market shares;

  (ii) the broadest offering of all telecom equipment providers
       with very advanced technology allowing the company to
       service its customers for their feature-rich
       telecommunications and convergence strategies;

(iii) the potential for realizing synergy savings targeted at
       about EUR1.4 billion by management;

  (iv) the strengthening credit profile of Alcatel on a
       standalone basis providing the financial basis for the
       combination; and

   (v) as a result of the for-share merger, a strong liquidity
       position with a relatively moderately levered capital
       structure (Moody's estimates pro-forma net debt/EBITDA
       for calendar year 2005 at 2.8-times initially after the
       merger and the Thales transaction, which involves selling
       Alcatel's transportation, security and space activities
       to Thales in return for an additional 11.5% stake in the
       company and about EUR710 million cash) of the combined
       group.

These credit positives, however, are balanced by:

   (i) the challenges related to the integration of two
       corporate cultures and various technology platforms;

  (ii) execution risk for realizing and retaining the bulk of
       the targeted synergy benefits in an increasing price
       competitive equipment market;

(iii) a relatively weak fiscal 2006 performance of Lucent in
       its core markets -- although the fourth fiscal quarter
       showed some improvement,

  (iv) a complex technology roadmap in 3rd generation (3G)
       wireless telephony; and

   (v) modest pro-forma calendar year 2005 profitability  and
       interest coverage initially after adjusting EBIT for
       amortization of acquired intangibles particularly and
       after the Thales transaction..

The outlook for Alcatel-Lucent's Ba2 CFR is stable.  It anticipates:

   -- mid-single digit growth for the company;

   -- measurable progress on the integration and realization of
      synergy benefits in 2007;

   -- modest improvements in profitability during 2007; but

   -- no further material M&A activity in the integration phase
      even though opportunities may well present themselves.

The last rating action on April 3, 2006 placed the Ba1 senior debt ratings
for Alcatel on review for possible downgrade and the B1 unsecured debt
ratings of Lucent on review for possible upgrade following the merger
announcement.

Downgrades:

   Alcatel-Lucent

   -- Corporate Family Rating, Downgraded to Ba2 from Ba1;

   -- Senior Unsecured Bank Credit Facility, Downgraded to Ba2
      from Ba1

   -- Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to
      Ba2 from Ba1;

   -- Senior Unsecured Medium-Term Note Program, Downgraded to
      Ba2 from Ba1; and

   -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ba2
      from Ba1.

Upgrades:

   Lucent Technologies Capital Trust I

   -- Preferred Stock Preferred Stock, Upgraded to B2 from B3

   Lucent Technologies, Inc.

   -- Multiple Seniority Shelf, Upgraded to a range of (P)B3 to
      (P)Ba3 from a range of (P)Caa1 to (P)B1;

   -- Subordinate Conv./Exch. Bond/Debenture, Upgraded to B2
      from B3;

   -- Senior Unsecured Conv./Exch. Bond/Debenture, Upgraded to
      Ba3 from B1; and

   -- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3
      from B1.

Outlook Actions:

   Alcatel-Lucent

   -- Outlook, Changed To Stable From Rating Under Review

   Lucent Technologies Capital Trust I

   -- Outlook, Changed To Stable From Rating Under Review

   Lucent Technologies, Inc.

   -- Outlook, Changed To Stable From Rating Under Review

Withdrawals:

   Lucent Technologies, Inc.

   -- Speculative Grade Liquidity Rating, Withdrawn, previously
      rated SGL-2

   -- Corporate Family Rating, Withdrawn, previously rated B1.

                   About Alcatel-Lucent

Alcatel-Lucent provides solutions that enable service providers, enterprises
and governments worldwide, to deliver voice, data and video communication
services to end-users.  As a leader in fixed, mobile and converged broadband
networking, IP technologies, applications, and services, Alcatel-Lucent
offers the end-to-end solutions that enable compelling communications
services for people at home, at work and on the move.  With 79,000 employees
and operations in more than 130 countries, Alcatel-Lucent is a local partner
with global reach.  Alcatel-Lucent achieved proforma combined revenues of
EUR18.6 billion in 2005, and is incorporated in France, with executive
offices located in Paris.

                 About Lucent Technologies

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


PETROLEO BRASILEIRO: Hires DeGolyer to Audit New Finds
------------------------------------------------------
Guilherme Estrella -- exploration and production director of Petroleo
Brasileiro, the Brazilian state-run oil firm -- told Business News Americas
that the company has hired DeGolyer & McNaughton, an international auditing
firm, to audit new discoveries in Brazil.

According to BNamericas, Petroleo Brasileiro wants the audit performed
before declaring the discoveries commercially feasible.

Petroleo Brasileiro will disclose commercial feasibility of at least three
new offshore fields in Brazil by the end of 2006, BNamericas notes.

BNamericas underscores that two of the offshore fields are gas fields close
to the existing Golfinho gas field in the northern region of Espirito Santo
basin.

The third field is in the Campos basin's northern region, close to the
Jubarte heavy crude field, BNamericas states.

The auditing firm can be reached at:

          DeGolyer & McNaughton
          5151 San Felipe
          Houston, TX 77056

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA aka Petrobras -- http://www2.petrobras.com.br/-- was founded in 1953.
The company explores, produces, refines, transports, markets, distributes
oil and natural gas and power to various wholesale customers and retail
distributors in Brazil.

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

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

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

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

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


PETROLEO BRASILEIRO: Says Piranema Field Startup Delayed
--------------------------------------------------------
The Piranema field startup has been delayed, Business News Americas reports,
citing Guilherme Estrella -- exploration and production director of Petroleo
Brasileiro, the state oil firm of Brazil.

BNamericas relates that Petroleo Brasileiro had expected to begin production
at Piranema by the end of 2006.

Petroleo Brasileiro leased the round hull, 30,000 barrels per day SSP
Piranema from Sevan Marine -- a Norwegian oil services company -- as part of
the US$420-million Piranema project.

Mr. Estrella told the press that Petroleo Brasileiro expects the SSP
Piranema vessel to arrive in Brazil in January 2007.

The floating production, storage and offloading (FPSO) vessel, which will
serve the light-crude Piranema field in northern Brazil, would arrive in the
middle of this month, Petroleo Brasileiro had told BNamericas.

However, the FPSO is still in Europe and needs good weather conditions and
environmental licensing from Brazilian officials before it can set off for
Brazil, BNamericas says, citing Mr. Estrella.

Sevan Marine said that planners are seeking places to anchor the vessel in
Brazil while it awaits licensing, BNamericas notes.

Mr. Estrella told BNamericas, "We have to wait for good weather conditions
for the FPSO to cross the Gulf of Biscay.  We also are holding meetings with
environmental authorities to speed up the licensing process."

Petroleo Brasileiro is preparing to drill two fields in Piranema before
starting production, BNamericas says, citing Mr. Estrella.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA aka Petrobras -- http://www2.petrobras.com.br/-- was founded in 1953.
The company explores, produces, refines, transports, markets, distributes
oil and natural gas and power to various wholesale customers and retail
distributors in Brazil.

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

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

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

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

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


PETROLEO BRASILEIRO: Regulator Approves SubSea Conceptual Plan
--------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras disclosed that its Conceptual Plan for
the subsea development of Cascade and Chinook fields has received approval
from the United States Minerals Management Service or MMS.  It is the first
approval at this level of a plan that includes the deployment of a Floating,
Production, Storage and Offloading or FPSO facility in the Gulf of Mexico.

MMS is an agency of the United States Government that manages the natural
gas, oil and other mineral resources on the outer continental shelf.  The
application of new Petrobras technologies will allow a fast tracked,
development approach, with start of oil production scheduled for 2009.
Petrobras has an extensive experience in the use of FPSO since 1979, with
fifteen units currently under operation offshore Brazil, and another nine
under construction to be deployed in that area.

The proposed solution has a proven track record of improving the
capabilities of developing oil and gas reserves in deep and ultra deepwater
environments.  Petrobras has proposed the use of six technologies that are
new to the US Gulf of Mexico including a disconnectable turret buoy allowing
the FPSO to move offsite during hurricanes and severe weather, crude
transportation via shuttle tanker, free-standing hybrid risers, subsea
electric submersible pumps, torpedo pile vertical loaded anchors and
polyester mooring systems.

The plan consists of the installation and operation of a FPSO vessel in
approximately 8,200 feet of water.  The plan provides for at least two
subsea wells in Cascade and one subsea well in Chinook, each drilled to an
approximate depth of 27,000 feet and to be tied back to the FPSO.  Based on
reservoir performance, the development plan could be expanded to include
additional wells on each unit.  More detailed engineering studies will now
be carried out, including the preparation of the Deepwater Operations Plan
which will include all technical details demonstrating that these
technologies will meet or exceed the current requirements for operations in
the Gulf of Mexico.

Petrobras is the operator of the Cascade and Chinook Units owning 50% and
66.67% respectively.  Devon Energy Corporation owns the remaining 50% of
Cascade Unit and Total E&P USA, Inc, a subsidiary of Total SA, owns 33.33%
of Chinook Unit.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
SA aka Petrobras -- http://www2.petrobras.com.br/-- 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.




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


ALBARAKA DOW: Last Day for Proofs of Claim Filing Is on Dec. 15
---------------------------------------------------------------
Albaraka Dow Jones Islamic Index Fund's creditors are required to submit
proofs of claim by Dec. 15, 2006, to the company's liquidators:

          K.D. Blake
          S.L.C. Whicker
          KPMG
          P.O. Box 493, George Town
          Century Yard, Cricket Square
          Grand Cayman, Cayman Islands

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

Albaraka Dow's shareholders agreed on Sept. 10, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

          Blair Houston
          P.O. Box 493
          Grand Cayman, Cayman Islands
          Tel: 345-914-4334
               345-949-4800
          Fax: 345-949-7164


AL-SAFWA: Deadline for Proofs of Claim Filing Is Set for Dec. 15
----------------------------------------------------------------
Al-Safwa International Equity Fund's creditors are required to submit proofs
of claim by Dec. 15, 2006, to the company's liquidators:

          K.D. Blake
          S.L.C. Whicker
          KPMG
          P.O. Box 493, George Town
          Century Yard, Cricket Square
          Grand Cayman, Cayman Islands

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

Al-Safwa's shareholders agreed on Sept. 10, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

          Blair Houston
          P.O. Box 493
          Grand Cayman, Cayman Islands
          Tel: 345-914-4334
               345-949-4800
          Fax: 345-949-7164


AXIA OFFSHORE: Proofs of Claim Filing Deadline Is on Dec. 15
------------------------------------------------------------
Axia Offshore Partners, Ltd.'s creditors are required to submit proofs of
claim by Dec. 15, 2006, to the company's liquidators:

          Kenneth M. Krys
          Simone Tomkins
          RSM Cayman Islands
          P.O. Box 1370, George Town
          Grand Cayman, Cayman Islands

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

Axia Offshore's shareholders agreed on Oct. 11, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.

Parties-in-interest may contact:

          Simone Tomkins
          P.O. Box 1370, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7100
          Fax: (345) 949-7120


BIOHEDGE LIMITED: Final Shareholders Meeting Is Set for Dec. 15
---------------------------------------------------------------
Biohedge Limited's shareholders will convene for a final meeting at 10:00
a.m. on Dec. 15, 2006, at:

           Colin Shaw & Co.
           Alamander Way, Grand Pavilion
           West Bay Road
           Grand Cayman, Cayman Islands

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

The liquidator can be reached at:

           John Arnold
           c/o Colin Shaw & Co
           Alamander Way
           Grand Pavilion, West Bay Road
           P.O. Box 10173APO
           Grand Cayman, Cayman Islands
           Tel: (345) 946-8002
           Fax: (345) 946-8003


CITIGROUP ALTERNATIVE: Last Shareholders Meeting Is on Dec. 15
--------------------------------------------------------------
Citigroup Alternative Investments Archer Investors Ltd.'s final shareholders
meeting will be at 10:00 a.m. on Dec. 15, 2006, at the company's registered
office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


CITIGROUP (INSTITUTIONAL): Last Shareholders Meeting Is Dec. 15
---------------------------------------------------------------
Citigroup Alternative Investments Archer Institutional Investors Ltd.'s
final shareholders meeting will be at 10:00 a.m. on
Dec. 15, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


CZ KAPOK: Invites Shareholders for Final Meeting on Dec. 15
-----------------------------------------------------------
CZ Kapok Ltd.'s shareholders will convene for a final meeting at 10:00 a.m.
on Dec. 15, 2006, at:

           Trident Trust Company (Cayman) Limited
           Fourth Floor, One Capital Place
           P.O. Box 847, 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:

           Trident Directors (Cayman) Ltd.
           Attn: Kimbert Solomon
           P.O. Box 847, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949 0880
           Fax: (345) 949 0881


CZ SKYLARK: Shareholders to Gather for Final Meeting on Dec. 15
---------------------------------------------------------------
CZ Skylark Ltd.'s shareholders will convene for a final meeting at 10:00
a.m. on Dec. 15, 2006, at:

           Trident Trust Company (Cayman) Limited
           Fourth Floor, One Capital Place
           P.O. Box 847, 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:

           Trident Directors (Cayman) Ltd.
           Attn: Kimbert Solomon
           P.O. Box 847, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949 0880
           Fax: (345) 949 0881


INTERPOOL FINANCE: Sets Final Shareholders Meeting on Dec. 15
-------------------------------------------------------------
Interpool Finance Corp.'s final shareholders meeting will be on Dec. 15,
2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          James F. Walsh
          c/o Campbells
          4th Floor, Scotia Centre
          P.O. Box 884, George Town
          Grand Cayman, Cayman Islands


JB ALPHA: Liquidator to Present Wind Up Accounts on Dec. 15
-----------------------------------------------------------
JB Alpha FX Trading Fund's final shareholders meeting will be at 10:00 a.m.
on Dec. 15, 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: Nicole Ebanks
          Deloitte
          P.O. Box 1787, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7500
          Fax: (345) 949-8258


JB ALPHA (MASTER): Final Shareholders Meeting Is Set for Dec. 15
----------------------------------------------------------------
JB Alpha FX Trading Master Fund's final shareholders meeting will be at
10:30 a.m. on Dec. 15, 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: Nicole Ebanks
          Deloitte
          P.O. Box 1787, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7500
          Fax: (345) 949-8258


LIBRAN GLOBAL: Calls Shareholders for Final Meeting on Dec. 15
--------------------------------------------------------------
Libran Global Macro Fund's final shareholders meeting will be at 11:00 a.m.
on Dec. 15, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


METIS OPPORTUNITIES: Last Shareholders Meeting Is on Dec. 15
------------------------------------------------------------
Metis Opportunities Fund Ltd.'s shareholders will convene for a final
meeting at 11:00 a.m. on Dec. 15, 2006, at:

           Deloitte
           Fourth Floor, Citrus Grove
           P.O. Box 1787, 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:

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


PLATINUM INTERNATIONAL: Final Shareholders Meeting Is on Dec. 15
----------------------------------------------------------------
Platinum International Finance Ltd.'s shareholders will convene for a final
meeting at 10:00 a.m. on Dec. 15, 2006, at:

           Butterfield House
           Fort Street, 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:

           RN Forster
           P.O. Box 705, George Town
           Grand Cayman, Cayman Islands


SAL 93A: Shareholders to Convene for Final Meeting on Dec. 15
-------------------------------------------------------------
SAL 93A Limited's shareholders will convene for a final meeting at 10:00
a.m. on Dec. 15, 2006, at:

           Trident Trust Company (Cayman) Limited
           Fourth Floor, One Capital Place
           P.O. Box 847, 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:

           Trident Directors (Cayman) Ltd.
           Attn: Kimbert Solomon
           P.O. Box 847, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949 0880
           Fax: (345) 949 0881


SAL-SP 96: Calls Shareholders for Final Meeting on Dec. 15
----------------------------------------------------------
SAL-SP 96's shareholders will convene for a final meeting at 10:00 a.m. on
Dec. 15, 2006, at:

           Trident Trust Company (Cayman) Limited
           Fourth Floor, One Capital Place
           P.O. Box 847, 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:

           Trident Directors (Cayman) Ltd.
           Attn: Kimbert Solomon
           P.O. Box 847, George Town
           Grand Cayman, Cayman Islands
           Tel: (345) 949 0880
           Fax: (345) 949 0881


SWING LIMITED: Shareholders to Gather for Dec. 15 Final Meeting
---------------------------------------------------------------
Swing Limited's shareholders will convene for a final meeting at 9:00 a.m.
on Dec. 15, 2006, at:

           Butterfield House
           Fort Street, 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:

           RN Forster
           P.O. Box 705, George Town
           Grand Cayman, Cayman Islands


TAURUS FUND: Last Shareholders Meeting Is Set for Dec. 15
---------------------------------------------------------
Taurus Fund Ltd.'s final shareholders meeting will be at 1:30 p.m. on Dec.
15, 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


TDA EMERGING: Shareholders to Gather for Last Meeting on Dec. 15
----------------------------------------------------------------
TDA Emerging Europe Investments' final shareholders meeting will be at 10:30
a.m. on Dec. 15, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


WINGS IV: Shareholders to Gather for Final Meeting on Dec. 15
-------------------------------------------------------------
Wings IV Limited's shareholders will convene for a final meeting at 9:30
a.m. on Dec. 15, 2006, at:

           Butterfield House
           Fort Street, 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:

           RN FORSTER
           P.O. Box 705, George Town
           Grand Cayman, Cayman Islands




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


QUEBECOR WORLD: To Offer Approx. US$400MM of Sr. Unsecured Notes
----------------------------------------------------------------
Quebecor World Inc. plans to offer approximately US$400 million aggregate
principal amount of new Senior Notes due 2015.  The terms of the new Senior
Notes will be settled between Quebecor World Inc. and the initial purchasers
of the notes.

The Senior Notes will be issued by the company and will be unconditionally
guaranteed on a senior unsecured basis by:

   -- Quebecor World Capital ULC,
   -- Quebecor World (USA) Inc. and
   -- Quebecor World Capital LLC,

all wholly owned subsidiaries of the company.  The proceeds from the sale of
the Senior Notes will be used to reduce indebtedness, including to
repurchase up to US$125 million of the company's 8.54% senior notes due
2015, 8.69% senior notes due 2020, 8.42% senior notes due 2010 and 8.52%
senior notes due 2012 under the cash tender offers commenced by Quebecor
World (USA) Inc. on Nov. 30, 2006, to repay in full the company's US$150
million 7.25% senior debentures due in January 2007 and to repay borrowings
under the company's revolving credit facility.

The balance of the proceeds, if any, will be used for general corporate
purposes.  Concurrent with this proposed offering, the company obtained
temporary accommodation of certain covenants under its bank credit
facilities in order to provide itself with greater financial flexibility.

Quebecor World Inc. -- http://www.quebecorworld.com/-- provides
print solutions to publishers, retailers, catalogers and other
businesses with marketing and advertising activities.  Quebecor
World has approximately 29,000 employees working in more than 120 printing
and related facilities in the United States, Canada, Argentina, Austria,
Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru,
Spain, Sweden, Switzerland and the United Kingdom.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 11, 2006, Standard &
Poor's Ratings Services affirmed its ratings, including its 'B+' long-term
corporate credit rating, on printing company Quebecor World Inc.  At the
same time, Standard & Poor's removed the ratings from CreditWatch with
negative implications, where they were placed Sept. 28, 2006.  The outlook
is negative.

Moody's Investors Service also downgraded Quebecor World Inc.'s Corporate
Family Rating as well as Quebecor World Capital Corp. and Quebecor World
Capital ULC's Senior Unsecured rating to B2 from B1, and also lowered
Quebecor World (USA) Inc.'s Senior Subordinated rating to Caa1 from B3.  The
outlook for all ratings remains negative.


QUEBECOR WORLD: Moody's Rates US$400MM Sr. Notes Due 2015 at B2
---------------------------------------------------------------
Moody's Investors Service assigned a B2 senior unsecured rating to the
pending US$400 million Senior Notes issue due 2015 of Quebecor World Inc.,
while the family Probability of Default rating remains B2 and the Loss Given
Default of the new issue has been assigned as LGD4.  The outlook for the
rating is negative.

On Dec. 8, 2006, Moody's downgraded Quebecor World Inc.'s Corporate Family
Rating to B2 from B1.

Quebecor World Inc. -- http://www.quebecorworld.com/-- provides
print solutions to publishers, retailers, catalogers and other
businesses with marketing and advertising activities.  Quebecor
World has approximately 29,000 employees working in more than 120
printingand related facilities in the United States, Canada, Argentina,
Austria,Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico,
Peru,Spain, Sweden, Switzerland and the United Kingdom.




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


DENNY'S CORP: Plans to Terminate Trans Fats from Menu Items
-----------------------------------------------------------
In a major step forward in the fight against trans fats, Denny's Corp.
disclosed an aggressive plan for eliminating trans fat from its menu items.
The plan includes changing its frying oil as well as the margarine products
used in food preparation in restaurants, and working with processed food
manufacturers.  Based on final testing that is now underway, the company
anticipates systemwide roll out of a non-trans fat alternative fry
shortening in its more than 1,500 restaurants as early as the first half of
2007.

"As the nation's largest family restaurant company, we are unwavering in our
commitment to doing what is right for our millions of guests.  We have been
working diligently to address the important issue of trans fat in the foods
we serve," said Peter Gibbons, Denny's Vice President of Product
Development.  "In just the past six months, we have made significant
progress on the elimination of trans fats in our fry shortening while
maintaining the flavor and texture of the foods prepared in our kitchens."

Mr. Gibbons said the company's goal is to eliminate trans fat from the
entire array of products served in Denny's restaurants.  Once the fry
shortening and margarine products used in menu preparation have been
converted, Denny's intends to complete work currently underway with its
suppliers to adjust processing and ingredients to further eliminate trans
fats.

"Our comprehensive approach to eliminate trans fats from products --
wherever they may be introduced in the supply chain -- is another
demonstration of Denny's commitment to our guests," Mr. Gibbons said.

Mr. Gibbons noted that Denny's is among the first to extend the elimination
of trans fats to include margarine products.  He said the company is
currently in the initial phase of testing on reformulated trans-fat free
margarines, and is planning to begin the second phase of alternative
margarine product testing in 2007.

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

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 22, 2006, Moody's
Investors Service raised Denny's Holdings, Inc., corporate family rating to
B1 from B2 and assigned Ba2 ratings to Denny's, Inc.'s proposed US$350
million senior secured credit facility consisting of a US$50 million
revolver, a US$260 million term loan B and a US$40 million synthetic letter
of credit facility.  At the same time, the senior unsecured notes at
Holdings were upgraded to B3 from Caa1.  The proceeds of the proposed bank
facilities will pay off Denny's existing 1st lien credit facility and the
2nd lien term loan.  Accordingly, Moody's expects to withdraw the ratings on
these issues once the proposed credit facility is closed.  The rating
outlook remains stable. Moody's noted that the rating assignments are
subject to a review of the final documentation.


SAMSONITE CORP: Moody's Puts Ba3 Rating on US$450MM Term Loan B
---------------------------------------------------------------
Moody's Investors Service confirmed the B1 corporate family rating for
Samsonite Corporation.  Moody's also assigned Ba3 ratings to the proposed
US$80 million senior secured revolving credit facility and US$450 million
term loan B.  Proceeds from the new facilities, along with a portion out
outstanding cash balances, will be used to fund a special dividend and debt
repurchase, and pay associated fees and premiums.  The outlook is positive.
This concludes the review for possible upgrade that commenced on Sept. 13,
2006.

The confirmation reflects Moody's concern that the proposed US$175 million
special dividend, which was announced as part of a series of transactions in
November 2006, will significantly increase leverage and weaken credit
metrics to a level that is inconsistent with an upgrade at this time.
Moody's estimates that pro forma leverage would exceed 6 times upon
completion of the transaction, up from 4.1 times for the LTM period ending
July 30, 2006.  The positive rating outlook reflects Moody's expectation
that the company will continue its profitable growth, both organically and
through further investment, while improving free cash flow generation and
rapidly reducing leverage.  A ratings upgrade would likely occur if leverage
approaches 4.5 times while maintaining positive free cash flow and EBITA
margins of over 10% by the end of FYE January 2008.

On Nov. 21, 2006, Samsonite announced a series of transactions including:

   1) an offer to purchase for cash any and all of its
      outstanding 8-7/8% Senior Subordinated Notes due 2011 and
      Floating Rate Senior Notes due 2010;

   2) the conversion of at least 90% of the company's
      outstanding shares of convertible preferred stock into
      shares of its common stock;

   3) the entering into a new credit facility consisting of an
      approximately US$450 million term loan facility and an
      approximately $80 million revolving credit facility; and

   4) the distribution of $175 million in cash in the form of a
      special dividend to the company's stockholders.

Moody's assigned and confirmed these ratings:

   -- US$80 million senior secured revolving credit facility at
      Ba3 (LGD 2, 25%);

   -- US$450 million senior secured term loan at Ba3 (LGD 2,
      25%); and

   -- Corporate Family Rating at B1.

Moody's downgraded these ratings:

   -- EUR100 million senior unsecured notes to B1 from Ba3; and
   -- US$205 million 8.875% subordinated to Caa1 from B3;

The ratings on both instruments will be withdrawn upon completion of the
transaction.

Samsonite's ratings are supported by the global strength of its brands,
strong global market share, good geographic and distribution diversity, and
solid cash flow generation and liquidity.  However, the ratings are
currently constrained by high pro forma leverage and weak proforma credit
metrics as a result of the proposed special dividend, its small size
relative to other global consumer products companies, and limited product
diversification.

The new revolver and term loan are secured by substantially all assets of
Samsonite Corporation and all wholly owned domestic direct and indirect
subsidiaries.  The obligations of Samsonite Europe N.V. will be secured by a
first priority lien on those same assets and by a first priority pledge of a
portion of the equity of SC International Holdings C.V. and all of the
equity of SC Denmark ApS and Samsonite Europe N.V. However, a portion of the
Samsonite's assets are pledged as security to the Pension benefit Guaranty
Corporation under a 2003 agreement.  Both the revolver and term loan are
guaranteed by the U.S. subsidiaries, while borrowings from Samsonite Europe
N.V. also benefit from additional guarantees by Samsonite Corporation, SC
International Holdings C.V. and SC Denmark ApS.  A mechanism in the credit
facilities will provide for pari passu sharing of collateral between the
lenders to Samsonite Corporation and Samsonite Europe N.V.  The facilities
will include one financial covenant limiting the level of total debt to
EBITDA at levels to be determined.

Samsonite Corp. -- http://www.samsonite.com-- manufactures,
markets and distributes luggage and travel-related products.
The company's owned and licensed brands, including Samsonite,
American Tourister, Trunk & Co, Sammies, Hedgren, Lacoste and
Timberland, are sold globally through external retailers and 284
company-owned stores.  Executive offices are located in London.  The company
has global locations in Aruba, Australia, Costa
Rica, Indonesia, India, Japan, and the United States among
others.




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


BANCO INTERCONTINENTAL: Defense Accuses State of Persecution
------------------------------------------------------------
Lawyers of Luis Alvarez Renta -- the indicted financier of Banco
Intercontinental -- and Vivian Lubrano de Castillo, one of the former vice
presidents of the bank, accused the state of engaging in a persecution
campaign against their clients before the National District First Collegiate
Tribunal, Dominican Today reports.

Dominican Today relates that Antonio Salvador Catrein, Mr. Renta's legal
representative, alleged that the state and civil authorities fabricated
evidence in the money laundering case against his client.

Mr. Catrein told Dominican Today, "The authorities' fury with Alvarez Renta
is evident, as is their interest discrediting and condemning him publicly
through media campaigns."

Dominican Today underscores that Rolando de la Cruz Bello, Ms. de Castillo's
lawyer, claimed that his client is being judged for honorably refusing to
accuse her co-defendants, which include:

     -- Ramon Baez Figueroa, the former president of the bank,

     -- Marcos Baez Cocco, also the bank's former vice
        president, and

     -- businessman Jesus Maria Troncoso Ferrua, who can be
        reached at mt@troncoso-caceres.com.

The defense lawyers of Messrs. Figueroa and Cocco had admitted that their
clients were guilty of breaking financial and monetary law, Dominican Today
notes.

Mr. de la Cruz Bello told Dominican Today, "She (Ms. de Castillo) refused to
make accusations and one of them asked her to do this in my presence."

Messrs. Catrein and de la Cruz Bello reiterated their clients' pleas of
innocence, Dominican Today states.

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


FALCONBRIDGE: Xstrata Guarantees Notes & Preferred Shares
---------------------------------------------------------
Falconbridge Ltd. disclosed that its parent company, Xstrata plc, has fully
and unconditionally guaranteed its Notes and its cumulative redeemable
preferred shares, Series 2, Series 3 and Series H.

Falconbridge will not file interim financial statements for the nine months
ended Sept. 30, 2006, as it has obtained an order from Canadian securities
regulators permitting Falconbridge to satisfy its continuous disclosure
obligations as a reporting issuer by filing Xstrata's UK disclosure
documents in place of disclosure documents relating solely to Falconbridge.

These senior debt of Falconbridge has been guaranteed by Xstrata:

   (i) US$250 million principal amount of 6.2% notes due
       June 15, 2035;

  (ii) US$250 million principal amount of 5.5% notes due
       June 15, 2017;

(iii) US$350 million principal amount of 6% notes due
       Oct. 15, 2015;

  (iv) US$250 million principal amount of 5.375% notes due
       June 1, 2015;

   (v) US$250 million principal amount of 7.35% notes due
       June 5, 2012;

  (vi) US$300 million principal amount of 7.25% notes due
       July 15, 2012;

(vii) US$300 million principal amount of 8.375% notes due
       Feb. 15, 2011; and

(viii) CAD175 million principal amount of 8.5% debentures due
       Dec. 8, 2008.

The guarantee of Falconbridge's Notes was implemented by amending the trust
indentures pursuant to which the Notes were issued.  Pursuant to the terms
of the Note Indentures, as amended by supplemental indentures to implement
the guarantees, Xstrata has fully and unconditionally guaranteed the
payment, within 15 days of when due, of the principal and interest owing by
Falconbridge to the holders of the Notes. Computershare Trust Company of
Canada is the trustee for the holders of the Notes under the terms of the
Note Indentures.

The guarantee of the Preferred Shares is governed by the terms of a
guarantee indenture entered into by Xstrata, Falconbridge and Computershare
Trust Company of Canada, as guarantee trustee.  Pursuant to the terms of the
Guarantee Indenture, Xstrata has fully and unconditionally guaranteed in
favour of the holders of the Preferred Shares the payment, within 15 days of
when due, of all financial liabilities and obligations of Falconbridge to
such holders under the terms of the Preferred Shares, whether in respect of:

   -- any accrued and unpaid dividends on the Preferred Shares,
      regardless of the ability of Falconbridge to satisfy any
      financial or legal condition to the declaration or payment
      of dividends;

   -- the redemption price and all accrued and unpaid dividends
      to the date of redemption with respect to the Preferred
      Shares called for redemption; or

   -- the liquidation amount payable on the Preferred Shares
      upon a voluntary or involuntary dissolution, liquidation
      or winding up of Falconbridge, without regard to the
      amount of assets of Falconbridge available for
      distribution.

Xstrata's obligation to make a guarantee payment may be satisfied by direct
payment of the required amounts by Xstrata to the holders of Preferred
Shares entitled to those payments or by causing Falconbridge to pay those
amounts to the holders.

                 Structural Subordination

Xstrata's guarantees of the Notes and the Preferred Shares constitute
unsecured obligations of Xstrata

The terms of the guarantees do not limit the ability of Xstrata to incur
additional indebtedness, nor do they limit the ability of Xstrata's
subsidiaries or joint ventures to incur additional secured or unsecured
indebtedness.  Xstrata's obligations under the guarantees will be
effectively subordinate to all indebtedness and other liabilities of
Xstrata's subsidiaries and joint ventures, except to the extent Xstrata is a
creditor of such subsidiaries or joint ventures ranking at least pari passu
with such other creditors.

                        Credit Rating

The Notes and the Preferred Shares, as guaranteed by Xstrata, have been
rated by these rating agencies as follows:

                                    Notes     Preferred Shares
Rating Agency                      Rating               Rating
-------------                      ------               ------
Moody's Investors Service           Baa2            not rated
Standard & Poor's                   BBB+                 BBB-
Dominion Bond Rating Service
Limited                           BBB(high)          Pfd-3(high)

Holders of the Notes and the Preferred Shares should consult the Rating
Agencies with respect to the interpretation of the foregoing ratings and
their implications.

The credit ratings accorded to the Notes and the Preferred Shares by the
Rating Agencies are not recommendations to purchase, hold or sell the Notes
or the Preferred Shares inasmuch as such ratings do not comment as to market
price or suitability for a particular investor. There is no assurance that
the ratings will remain in effect for any period of time or that the ratings
will not be revised or withdrawn entirely by one or more of the Rating
Agencies at any time in the future if, in the judgment of one or more of the
Rating Agencies, circumstances so warrant.

       Tax Consequences of Guarantee of Preferred Shares

The guarantee of the Preferred Shares constitutes a "guarantee agreement"
for purposes of subsection 112(2.2) of the Income Tax Act (Canada).
Accordingly, a dividend received on a Preferred Share of a particular series
by a holder of Preferred Shares that is a corporation resident in Canada for
purposes of the Tax Act generally will not be deductible in computing the
taxable income of the corporation unless the Preferred Share is of a class
or series of shares of the capital stock of Falconbridge that is listed on a
prescribed stock exchange (which includes the Toronto Stock Exchange) and
the corporation, and persons with which the corporation does not deal at
arm's length, or any partnership or, in certain circumstances, trust of
which the corporation or any such person is a member or beneficiary, do not,
at the time the dividend is received, receive dividends in respect of more
than 10 per cent of the issued and outstanding shares to which the guarantee
agreement applies.  Holders of Falconbridge Preferred Shares to which these
provisions may be relevant are urged to consult their own tax advisors.

,                   Guarantee of Payment

Each guarantee constitutes a guarantee of payment and not of collection.
This means that legal proceedings may be brought directly against Xstrata to
enforce its obligations under each guarantee without first instituting a
legal proceeding against Falconbridge.  The guarantees of the Notes will not
be discharged except by payment in full of Falconbridge's obligations to the
holders of the Notes.  The guarantee of the Preferred Shares will not be
discharged except by payment of the related guaranteed payments in full to
the extent not paid by Falconbridge or upon the cancellation of the
Preferred Shares.

                 Amendments and Assignment

The guarantees of the Notes may not be amended without the prior approval of
the holders of the Notes in accordance with the terms of the Note
Indentures, provided that no approval of the holders of the Notes is
required for certain changes that do not adversely affect the rights of
holders of the Notes.

The guarantee of the Preferred Shares may not be amended without the prior
approval of the holders representing not less than a majority of the
aggregate liquidation amount of the outstanding Preferred Shares, or, in the
event that a meeting is held to obtain the consent of the holders of the
Preferred Shares, representing not less than a majority of the aggregate
liquidation amount of the outstanding Preferred Shares held by holders of
the Preferred Shares present at the meeting, provided that no approval of
the holders of the Preferred Shares is required for certain changes that do
not adversely affect the rights of holders of the Preferred Shares.  For
purposes of the guarantee, a meeting of the holders of the Preferred Shares
requires a quorum consisting of holders of the Preferred Shares holding at
least 25% of the aggregate liquidation amount of the outstanding Preferred
Shares.

The guarantees of the Notes and the Preferred Shares will be binding on the
successors and assigns of Xstrata and will enure to the benefit of the
holders of the Notes and Preferred Shares then outstanding.

                         Termination

The guarantee of the Notes will terminate upon the repayment in full and
discharge of all Notes.  The guarantee of the Preferred Shares will
terminate and be of no further force and effect upon full payment of the
applicable redemption price of all Preferred Shares, including any accrued
and unpaid dividends at the time of redemption.

                       Governing Law

The guarantees of the Notes (other than the C$175 million 8.5% debentures
due 2008) are governed by and construed in accordance with the laws of the
State of New York except with respect to the rights, powers, duties and
responsibilities of the Note Trustee under the Note Indentures, which are
governed by the laws of the Province of Ontario.

The guarantees of the CDN$175 million 8.5% debentures due 2008 and the
Preferred Shares are governed by and construed in accordance with the laws
of the Province of Ontario.

             Consent to Jurisdiction and Service

Xstrata has appointed CT Corporation System, 111 Eighth Avenue, New York,
New York, as its agent for service of process in any suit, action or
proceeding arising out of or relating to its guarantee of the Notes (other
than the CAD175 million 8.5% debentures due 2008) and for actions brought
under United States federal or state securities laws brought in any federal
or state court located in the City of New York and submits to such
jurisdiction.

Xstrata has appointed Falconbridge as its agent for service of process in
any suit, action or proceeding arising out of or relating to its guarantee
of the Preferred Shares or the CAD175 million 8.5% debentures due 2008 and
for actions brought under provincial securities laws brought in any court
located in the City of Toronto and submits to such jurisdiction.

           Information Concerning the Trustee

Computershare Trust Company of Canada is the Note Trustee under the terms of
the Note Indentures and is the guarantee trustee for the holders of the
Preferred Shares.  The terms of the Guarantee Indenture and the terms of the
Note Indentures provide that, except in certain circumstances, no action may
be brought against Xstrata to enforce the guarantees except by the Trustee.

     Changes to Falconbridge Continuous Disclosure Reporting

In connection with Xstrata's guarantees of the Notes and the Preferred
Shares, the securities commissions of each Canadian province (other than
Prince Edward Island) and territory have granted Falconbridge an exemption
from certain requirements of the securities legislation that will permit
Falconbridge to satisfy its continuous disclosure obligations as a reporting
issuer by filing Xstrata's UK disclosure documents, including Xstrata's
annual and interim financial statements, in place of disclosure documents
relating solely to Falconbridge.

As a result of this relief, in lieu of the quarterly interim financial
statements that Falconbridge has historically filed, Falconbridge will file
on SEDAR Xstrata's annual and half-yearly financial statements, prepared in
accordance with International Financial Reporting Standards.

As a result, Falconbridge will not be filing interim financial statements
for the nine months ended September 30, 2006. The terms of the exemption
require that Falconbridge file on SEDAR copies of all documents filed by
Xstrata pursuant to the continuous disclosure requirements of the United
Kingdom.

Falconbridge will file Xstrata's financial statements on SEDAR at the same
time they are filed in the United Kingdom.  The continuous disclosure
requirements of the United Kingdom require that Xstrata file its financial
statements as soon as possible after they have been approved, with annual
financial statements filed no later than six months after its Dec. 31 year
end and half yearly financial statements filed no later than 90 days after
the end of the six month period ending June 30.  Xstrata generally publishes
its annual financial statements in March and its half yearly financial
statements in August.

The availability of the exemption is subject to Falconbridge and Xstrata
satisfying a number of other conditions that are set forth in the decision
of the securities commissions.  A copy of the decision is available on the
website of the Ontario Securities Commission at www.osc.gov.on.ca.

To obtain copies of the supplemental indentures to the Note Indentures or
the Guarantee Indenture, Holders of Notes and Preferred Shares may contact:

          Computershare Trust Company of Canada
          100 University Avenue
          9th Floor, North Tower
          Toronto, Ontario, M5J 2Y1
          Tel: 416-505-4600

Copies of the supplemental indentures and the Guarantee Indenture have also
been publicly filed by Falconbridge and are available at
http://www.sedar.com

                        About Xstrata

Xstrata plc -- http://www.xstrata.com/-- is a major global
diversified mining group, listed on the London and Swiss stock
exchanges.  The Group is and has approximately 24,000 employees
worldwide, including contractors.

Xstrata does business in six major international commodities
markets: copper, coking coal, thermal coal, ferrochrome,
vanadium and zinc, with additional exposures to gold, lead and
silver.  The Group's operations and projects span four
continents and nine countries: Australia, South Africa, Spain,
Germany, Argentina, Peru, Colombia, the United Kingdom and
Canada. Xstrata holds a 97% stake in Falconbridge.

                     About Falconbridge

Headquartered in Toronto, Ontario, Falconbridge Ltd.
(TSX:FAL.LV)(NYSE:FAL) -- http://www.falconbridge.com/-- is a
leading copper and nickel company with investments in fully
integrated zinc and aluminum assets.  Its primary focus is the
identification and development of world-class copper and nickel
ore bodies.  It employs 14,500 people at its operations and
offices in 18 countries, including Malaysia.  The Company owns
nickel mines in Canada and the Dominican Republic and operates a
refinery and sulfuric acid plant in Norway.  It is also a major
producer of copper (38% of sales) through its Kidd mine in
Canada and its stake in Chile's Collahuasi mine and Lomas Bayas
mine.  Its other products include cobalt, platinum group metals,
and zinc.

                        *    *    *

Falconbridge's CAD150 million 5% convertible and callable bonds
due April 30, 2007, carry Standard & Poor's BB+ rating.


TAG-IT PACIFIC: Earns US$13.4 Million in Third Quarter of 2006
--------------------------------------------------------------
Tag-it Pacific Inc. reported a US$339,117 of net income on
US$13.4 million of net sales for the third quarter ended
Sept. 30, 2006, compared with a US$10.3 million net loss on US$9.5 million
of net sales for the same period in 2005.

The increase in sales for the three months ended Sept. 30, 2006, as compared
with the same period in 2005 was due to double-digit revenue growth in all
of the company's product categories, despite lower sales of trim products in
Mexico and the shift of both U.S. and Mexico production from these areas to
Asia and other worldwide markets.

Sales in the three months ended Sept. 30, 2005, was negatively impacted by
the business restructuring that began in the third quarter of 2005 closing
the Mexican assembly and U.S. manufacturing facilities, including the
discontinuance of the thread product line in said period.

Operations in the third quarter of 2006 was positively affected by lower
cost of sales and interest expenses in the third quarter of 2006, compared
with the same period in 2005.  Cost of sales was US$9.2 million or US$2.3
million less than cost of sales for the same period in 2005, attributable to
costs associated with sales volume changes, improved product margins,
reduced distribution charges since more products are now sourced and
delivered within the same market place, reduced manufacturing and assembly
overhead costs, and lower provisions for obsolescence as inventory levels
have been reduced and turns accelerated.

Interest expense decreased by approximately US$106,000 for the three months
ended Sept. 30, 2006, as compared with the same period in 2005, due
primarily to lower average borrowings.

Cash and cash equivalents for the nine months ended Sept. 30, 2006,
increased US$1,449,000 from Dec. 31, 2005, principally arising from cash
generated by operating activities, net of payments on notes payable and
capital leases.

At Sept. 30, 2006, the company's balance sheet showed
US$27.7 million in total assets, US$26.1 million in total liabilities, and
US$1.5 million in total stockholders' equity.

Full-text copies of the company's third quarter financials are available for
free at http://researcharchives.com/t/s?1606

                    Going Concern Doubt

As reported in the Troubled Company Reporter on June 7, 2006,
Singer Lewak Greenbaum & Goldstein, LLP, in Los Angeles, Calif.,
raised substantial doubt about Tag-It Pacific, Inc.'s ability to
continue as a going concern after auditing the Company's
consolidated financial statements for the year ended
Dec. 31, 2005.  The auditor pointed to the Company's incurred net losses and
accumulated deficiencies.

                    About Tag-It Pacific

Tag-It Pacific, Inc., -- http://www.tagitpacific.com/--  
distributes apparel items to fashion manufacturers United
States, Hong Kong, Mexico, the Dominican Republic, and Central
and South America.  Also it offers formed wire metal zippers for
the jeans and sportswear industries.


* DOMINICAN REPUBLIC: Urges US to Approve Initiatives for Haiti
---------------------------------------------------------------
Carlos Morales Troncoso, the foreign minister of the Dominican Republic,
told DR1 Newsletter that the visiting mission of the United States
congressional leaders should work on ratifying initiatives for the
improvement of Haiti's situation.

The US congress has had a bill aimed at assisting Haitian exports pending
approval for the past four years, DR1 notes, citing Minister Troncoso.

According to DR1, the measure would make Haiti more attractive for foreign
investors.

DR1 underscores that a similar bill had been approved for African nations.
This time, however, the congress has not ratified the bill for Haiti.

Minister Troncoso invited the visiting mission of US congressional leaders
to look at the situation of Haitian immigrants in the Dominican Republic,
DR1 states.

                        *    *    *

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

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

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

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

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

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

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

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

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

Fitch also affirmed these ratings:

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

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

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

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




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


BANCO DE LOS ANDES: Regulator Orders Bank's Liquidation
-------------------------------------------------------
The financial regulator of Ecuador posted on its Web site that it has
ordered the liquidation of Banco de los Andes due to the latter's financial
woes.

Business News Americas relates that Banco de los Andes ranked 21st among the
Ecuador's 25 banks in September 2006 with 0.24% of system assets.

According to BNamericas, the financial sector regulator will release a
report on the financial condition of Banco de los Andes within the next 60
days, starting from Dec. 7.

Banco de los Andes' assets as of September 2006 totaled US$26.8 million.  It
reported equity of US$2.89 million, BNamericas states.


GRAHAM PACKAGING: Warren Knowlton Replaces Philip Yates as CEO
--------------------------------------------------------------
Graham Packaging Holdings Company disclosed that Warren D. Knowlton has been
named as the company's chief executive officer, effective Dec. 4, 2006,
replacing Philip R. Yates, who has retired.  Mr. Knowlton will also join the
company's board of directors.
Mr. Knowlton, served as chief executive officer and executive director of
Morgan Crucible PLC, from December 2002 to
August 2006.  Morgan Crucible is a specialty manufacturer of carbon and
ceramic products.  Prior to joining Morgan Crucible, he was an executive
director of a glassmaker Pilkington PLC.  With Pilkington, he first served
as president of Global Building Products and then as president of Global
Automotive.  Mr. Knowlton joined Pilkington in 1997.  Since 2000, Mr.
Knowlton has served as a non-executive director of Smith & Nephew PLC,
Filtrona PLC, and Ameriprise Financial.

Philip R. Yates, who has been with Graham Packaging for more than 30 years
and has served as chief executive officer since 1998, has agreed to continue
with the company as chairman of the board.  Mr. Yates will continue to be
involved in the oversight of the company's operations.  Mr. Yates already
serves on the Board and the company expects he will be named chairman at the
next meeting.

            Appointment of Mark Burgess as CFO

Mark Burgess has been named chief financial officer, succeeding John E.
Hamilton, who is leaving after a 22-year career with Graham Packaging to
pursue other interests, including his family's business.

Mr. Burgess served as president and chief executive officer, as well as
chief financial officer, of Anchor Glass Container Corporation, from May
2005 until September 2006, where he led the company through a successful
financial restructuring.  He previously served as executive vice president
and chief financial officer of Clean Harbors Environmental Services, Inc.,
from May 2003 until May 2005 and prior to that he served as executive vice
president and chief financial officer at JL French Automotive Castings, Inc,
from November 2000 to May 2003.

Chinh Chu, senior managing director of The Blackstone Group, majority owner
of Graham Packaging, said, "Warren Knowlton and Mark Burgess are extremely
talented and experienced executives, and we are excited to have them join
Graham Packaging.  We would also like to thank Phil Yates and John Hamilton
for their many dedicated years of service to Graham Packaging.  We are
pleased that Phil will be remaining as the company's chairman."

              About Graham Packaging Holdings

Graham Packaging Holdings Company is a Pennsylvania limited partnership.
Graham Packaging Company, L.P., Holdings' wholly-owned subsidiary is a
worldwide leader in the design, manufacture and sale of customized blow
molded plastic containers for the branded food and beverage, household,
personal care/specialty and automotive lubricants product categories and, as
of the end of September 2006, operated 85 manufacturing facilities
throughout North America, Europe and South America.

In South America, the company has operations in Argentina, Brazil, Ecuador,
Mexico and Venezuela.

The Blackstone Group, an investment firm, holds 78.6 percent equity in
Graham Packaging Holdings Company. MidOcean Capital Investors, L.P., holds
4.1 percent.  A group of management executives holds 2.3 percent. The family
of Graham Packaging founder Donald Graham holds 15 percent.

                        *    *    *

Graham Packaging Holdings Company carries Standard & Poor's B rating for
both its LT Foreign Issuer Credit and LT Local Issuer Credit.


GRAHAM PACKAGING: Posts US$15MM Net Loss in 2006 Third Quarter
--------------------------------------------------------------
Graham Packaging Holdings Company reported a US$15 million net loss on
US$643 million of sales for the third quarter ended Sept. 30, 2006, compared
with a US$2.2 million net loss on US$615.1 million of sales in the same
period in 2005.

At Sept. 30, 2006, the company's balance sheet showed
US$2.52 billion in total assets and US$3.05 billion in total liabilities,
resulting in a US$526.1 million total partners' deficit.

The increase in net loss is primarily due to the decrease in gross profits
to US$69.1 million in the third quarter of 2006, from US$79.2 million in the
third quarter of 2005.

Net sales for the three months ended Sept. 30, 2006, increased US$27.9
million to US$643.0 million from US$615.1 million for the three months ended
Sept. 30, 2005.  The increase in sales was primarily due to an increase in
resin pricing and volume, net of changes in mix and price erosion.

The decrease in gross profit was primarily due to a reduction to
depreciation expense in 2005 related to finalizing the fixed asset valuation
for O-I Plastic of US$11.5 million, a net increase in project costs of
US$1.6 million and a net decrease in gross profit related to ongoing
business of US$3.4 million, partially offset by a decrease in non-recurring
charges of US$2.7 million, a favorable impact from changes in foreign
currency exchange rates of US$0.5 million and a net decrease in the loss on
disposal of fixed assets of US$3.2 million.

Interest expense increased US$900,000 to US$48.3 million for the three
months ended Sept. 30, 2006, from US$47.4 million for the three months ended
Sept. 30, 2005.  The increase was primarily related to an increase in
interest rates.

Income tax provision increased US$2 million to US$6.6 million for the three
months ended Sept. 30, 2006, from US$4.6 million for the three months ended
Sept. 30, 2005.  The increase was primarily related to the establishment of
a valuation allowance on a portion of the tax benefit due to taxable losses
and tax credits in North America, partially offset by decreased earnings in
North America and Europe.

Full-text copies of the company's consolidated financial statements for the
third quarter ended Sept. 30, 2006, are available for free at:
http://researcharchives.com/t/s?1633

               About Graham Packaging Holdings

Graham Packaging Holdings Company is a Pennsylvania limited partnership.
Graham Packaging Company, L.P., Holdings' wholly-owned subsidiary is a
worldwide leader in the design, manufacture and sale of customized blow
molded plastic containers for the branded food and beverage, household,
personal care/specialty and automotive lubricants product categories and, as
of the end of September 2006, operated 85 manufacturing facilities
throughout North America, Europe and South America.

In South America, the company has operations in Argentina, Brazil, Ecuador,
Mexico and Venezuela.

The Blackstone Group, an investment firm, holds 78.6 percent equity in
Graham Packaging Holdings Company. MidOcean Capital Investors, L.P., holds
4.1 percent.  A group of management executives holds 2.3 percent. The family
of Graham Packaging founder Donald Graham holds 15 percent.

                        *    *    *

Graham Packaging Holdings Company carries Standard & Poor's B rating for
both its LT Foreign Issuer Credit and LT Local Issuer Credit.




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


PERRY ELLIS: Repurchases License from Parlux for US$63 Million
--------------------------------------------------------------
Perry Ellis International Inc. has signed a definitive agreement and
re-acquired from Parlux Fragrances Inc. all rights, titles, interests,
intangible assets and inventory that Parlux had pursuant to a global license
agreement to manufacture and distribute perfumery, fragrances, lotions,
toiletries and cosmetics under the Perry Ellis brand.

The agreement to re-acquire the Perry Ellis fragrance license
and related inventory in a cash transaction of approximately
US$63 million is effective as of Dec. 6, 2006, subject to potential closing
price adjustments for confirmation and valuation of inventory levels.  Perry
Ellis will fund this acquisition

George Feldenkreis, Chairman and Chief Executive Officer of Perry Ellis,
commented: "We believe this agreement will allow our company to strengthen
and further develop these important product categories for future growth.
We have had a long partnership with Parlux and acknowledge their
contribution to the development of these categories.  We believe that this
action will assist us in providing future shareholder value and at this
point will be carefully evaluating various alternatives including possible
licensing of these categories."

Perry Ellis International Inc., based in Miami, Florida, designs, sources,
markets and licenses a portfolio of brands including Perry Ellis, Jantzen,
John Henry, Cubavera, Munsingwear, Original Penguin and Farah.  The company
also operates 38 retail locations including 3 Original Penguin locations.
The company has sourcing offices in Indonesia, India, Korea, Thailand, Peru,
Nicaragua, and El Salvador.

                        *     *     *

In October 2006, Moody's Investors Service's confirmed its B1 Corporate
Family Rating for Perry Ellis International, Inc., and its B3 rating on the
company's US$150 million senior subordinated notes.

Additionally, Moody's assigned an LGD5 rating to those bonds, suggesting
noteholders will experience a 78% loss in the event
of a default.




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


BANCO G&T: Regulator Says It Won't Take Control of Bank
-------------------------------------------------------
An official from Superintendencia de Bancos, the Guatemalan banking
regulator, told Business News Americas that Banco G&T Continental is in no
danger of being intervened.

Business News Americas relates that there were rumors of intervention
circulating by the end of November, just a few weeks after Banguat, the
central bank, disclosed the intervention of Bancafe.

Edgar Balsells, a consultant at the UN Economic Commission for Latin America
and the Caribbean, told BNamericas, "At present, the Guatemalan financial
system is suffering a severe credibility crisis, proof of which were several
deposit withdrawals [at G&T] caused by a false alarm."

Banco G&T posted unconsolidated assets of GTQ17.1 billion and equity of
GTQ1.26 billion as of October 2006, BNamericas states.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on Nov. 13, 2006,
Standard & Poor's Ratings Services assigned its 'BB-/B' counterparty credit
and CD ratings to Banco G&T Continental SA.  The outlook is stable.  At the
same time, Standard & Poor's assigned its 'BBB-' survivability assessment to
G&T Continental.


SBARRO INC: Earns US$2.1 Million in 12-Weeks Ended Oct. 8
---------------------------------------------------------
Sbarro Inc. reported US$2.1 million of net income on US$80 million of total
revenues for the twelve weeks ended
Oct. 8, 2006, compared with a US$323,000 net loss on US$79.3 million of
total revenues for the same period ended
Oct. 9, 2005.

Sales by quick service restaurants and consolidated other concept
restaurants increased 1.3% to US$75.5 million for the twelve weeks ended
Oct. 8, 2006, from US$74.5 million for the twelve weeks ended Oct. 9, 2005.
The increase in sales for the third quarter of 2006 is the result of US$1.5
million or 2.1% of higher sales in the company's quick service restaurants,
with comparable restaurant sales increasing by 4.8% offset, in part by fewer
company owned quick service restaurants in operation during 2006 and
slightly lower restaurant sales of the company's consolidated other concepts
as a result of the sale of a joint venture and two company owned
restaurants.

Franchise related revenues increased to US$3.3 million for the third quarter
of 2006 from US$2.9 million in the third quarter of 2005, attributable to
additional locations opened during the last twelve months (net of closed
locations).

Real estate and other revenues decreased by US$700,000 in the third quarter
of 2006 from US$1.9 million in the third quarter of 2005, primarily
attributable to a reduction in rental income in one of the subsidiaries
resulting from a tenant bankruptcy and a decrease in certain food rebates
the company receives based on franchisee's level of purchase.

Cost of food and paper products as a percentage of restaurant sales improved
by 1.2 percentage points to 19.3% for the twelve weeks ended Oct. 8, 2006,
from 20.5% for the twelve weeks ended Oct. 9, 2005.  The cost of cheese in
the third quarter of 2006 averaged approximately US$1.40 per pound compared
to an average of approximately US$1.68 per pound for the third quarter of
2005.  This US$0.28 per pound improvement in cheese cost accounted for
US$600,000 of the improvement.  Improved operational controls, combined with
selective price increases implemented in 2005, were the primary reasons for
the remainder of the improvement in cost of sales as a percentage of
restaurant sales.

Payroll and other employee benefits as a percentage of restaurant sales was
26.5% in the third quarter of 2006 compared to 28.3% in the third quarter of
2005.  Payroll costs decreased US$1.1 million as compared to the third
quarter of 2005 as a result of improved efficiencies and improved sales.

Other operating costs increased by US$200,000 for the twelve weeks ended
Oct. 8, 2006, from the third quarter of 2005 and, as a percentage of
restaurant sales, decreased to 35.1% from 35.4%, primarily attributable to
an increase in bonus expense partially offset by lower repairs and
maintenance.

General and administrative expenses were US$6.7 million for the third
quarter of 2006 compared to US$5.6 million the third quarter of 2005,
primarily due to upgrades and additions to corporate and franchise personnel
and an increase in a long-term executive bonus plan accrual.

Interest expense of US$7 million for the third quarters of both 2006 and
2005 relates primarily to the 11%, US$255 million senior notes the company
issued to finance its going private transaction in 1999 and the 8.4%, US$16
million mortgage loan on its corporate headquarters building.

Equity in the net income of unconsolidated affiliates in other concept
restaurants in which the company has a 50% or less ownership interest
increased by US$200,000 in the third quarter of 2006 from the third quarter
of 2005 as a result of improved performance.

In the third quarter of 2006 the company had an income tax credit of
US$100,000 for changes in taxable income projections in states that do not
recognize Subchapter S corporation status of the Internal Revenue Code,
pursuant to which substantially all taxes on income are paid by
shareholders.  Tax expense of US$500,000 for the third quarter of 2005 was
for taxes owed to jurisdictions that do not recognize S corporation status
or that tax entities based on factors other than income and for taxes
withheld at the source of payment on foreign franchise income related
payments.

At Oct. 8, 2006, the company's balance sheet showed US$378.4 million in
total assets, US$312.2 million in total liabilities, and US$66.2 million in
total stockholders' equity.

                  Sources and Uses of Cash

The company has not historically required significant working capital to
fund existing operations and has financed capital expenditures and
investments in joint ventures through cash generated from operations.

Net cash used in operating activities was US$4.0 million for the forty weeks
ended Oct. 8, 2006, compared to US$11.2 million used during the forty weeks
ended Oct. 9, 2005.  The decrease in net cash used in operating activities
was primarily attributable to a lower net loss combined with a lower
increase in prepaid expenses partially offset by an accounts payable
decrease.

Net cash used in investing activities was US$900,000 higher in the forty
weeks ended Oct. 8, 2006, increasing to US$9.0 million from US$8.1 million
for the forty weeks ended Oct. 9, 2005.  The increase was primarily due to
increased restaurant remodeling partially offset by proceeds from the sale
of restaurant property and equipment and capital contributions from partners
to consolidated joint ventures.

Full-text copies of the company's consolidated balance sheet for the twelve
week period ended Oct. 8, 2006, are available for free at
http://researcharchives.com/t/s?16a4

                           Merger

As disclosed in the Troubled Company Reporter on Nov. 30, 2006, Sbarro has
disclosed the terms of its merger agreement with MidOcean SBR Holdings, LLC,
and MidOcean SBR Acquisition Corp. Under the merger agreement MidOcean
Acquisition will be merged with and into Sbarro Inc., with Sbarro Inc.
continuing as the surviving corporation.

Under the Merger Agreement, the stockholders of Sbarro will
receive, in the aggregate:

    (i) cash consideration of US$417 million less adjusted debt;

   (ii) a distribution of certain cash of Sbarro in
        consideration for the delivery to Sbarro of certain
        shares of common stock of Sbarro Inc.; and

  (iii) a preferred interest in Holdings comprised of 33,000
        Class A Units, each with an initial stated value of
        US$1,000.

                      About Sbarro Inc.

Headquartered in Melville, New York, Sbarro, Inc. is a quick
service restaurant chain that serves Italian specialty foods.  As of Oct. 8,
2006, the company owned and operated 479 and franchised 476 restaurants
worldwide under brand names such as "Sbarro," "Umberto's," and "Carmela's
Pizzeria".  The company also operated 25 other restaurant concepts and joint
ventures under various brand names.  The company announced on
June 19, 2006, its internationalexpansion by opening more than 25
restaurants in Guatemala, El Salvador, Honduras, The Bahamas and Romania.

                        *     *     *

As reported in the Troubled Company Reporter on Nov. 30, 2006, Moody's
Investors Service affirmed Sbarro Inc.'s Caa1 corporate family and senior
unsecured ratings and changed the outlook to developing from positive3
following the announcement that it had entered into an agreement to be
acquired by private entity firm, MidOcean Partners, LLC for cash
consideration of US$417 million less adjusted debt.




===========
G U Y A N A
===========


BRITISH WEST: Caribbean Airlines Makes First Landing in Guyana
--------------------------------------------------------------
An aircraft of Caribbean Airlines, which will succeed British West Indies
Airlines aka BWIA next year, has made an unexpected landing at the Cheddi
Jagan International Airport in Guyana, to fly out stranded passengers,
Caribbean Net News reports.

Caribbean Net relates that a door of the BWIA aircraft that carried the
passengers had malfunctioned.

According to Caribbean Net, airport officials at Cheddi Jagan were surprised
at the arrival of the Caribbean Airlines aircraft since the new airline is
expected to replace BWIA on
Jan. 1, 2007.

Caribbean Net underscores that Caribbean Airlines will be based at the
Piarco International Airport in Trinidad and Tobago, and will provide
regional air transport within the Caribbean and to major international
cities.

Caribbean Airlines will extend its engineering capability to include the
ability to undertake heavy maintenance and repair checks on its turboprop
aircraft.  It also plans to service other carriers, Caribbean Net states.

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

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

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


* GUYANA: Inks Palm Oil Processing Pact with Integrated Bio
-----------------------------------------------------------
The general consensus of producing oil above ground, rather then spending
millions on drilling holes was the prevailing impetus that allowed
Integrated Bio-Energy Resources, Inc., and Government of Guyana to come to
an agreement in the processing and refining of palm oil into Bio-Diesel and
Bio-Fuel.

The agreement provides for the commencement of farming and the creation of
the first plant and refinery.  As part of the plan, Integrated Bio-Energy
will have a 100-acre parcel with Atlantic Ocean access for the building of
the first plant and refinery.  Integrated Bio-Energy officials will return
to Guyana accompanied by the engineering team within the first two weeks of
January to begin the project.  Both parties look forward to mutual growth
and success.  The company will keep shareholders abreast of continuing
projects with updates in the coming days.

Chilmark Entertainment Group, Inc. has merged with Integrated Bio-Energy
Resources, Inc. and the company will change the name and the symbol to
reflect the true business of the company in the near future.




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


* HAITI: Dominican Republic Urges US to Ratify Haiti Initiatives
----------------------------------------------------------------
The visiting mission of the United States congressional leaders should work
on ratifying initiatives for the improvement of Haiti's situation, Carlos
Morales Troncoso, the foreign minister of the Dominican Republic, told DR1
Newsletter.

The US congress has had a bill aimed at assisting Haitian exports pending
approval for the past four years, DR1 notes, citing Minister Troncoso.

According to DR1, the measure would make Haiti more attractive for foreign
investors.

DR1 underscores that a similar bill had been approved for African nations.
This time, however, the congress has not ratified the bill for Haiti.

Minister Troncoso invited the visiting mission of US congressional leaders
to look at the situation of Haitian immigrants in the Dominican Republic,
DR1 states.

                        *    *    *

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




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


AIR JAMAICA: Launching Executive Business Class Service in 2007
---------------------------------------------------------------
Air Jamaica will replace its first class service with its new executive
business class service on Jan. 1, 2007, Caribbean Net News reports.

As reported in the Troubled Company Reporter-Latin America on Sept. 8, 2006,
Air Jamaica planned to replace its first class service with executive
business on Oct. 29, 2006.

Caribbean Net relates that the new service will offer passengers the highest
level of comfort at exceptional value.  Customers will enjoy:

          -- more comfortable seats with extra legroom,
          -- gourmet cuisine,
          -- champagne,
          -- fine wines,
          -- premium liquors on all flights,
          -- exclusive check-in areas,
          -- three pieces of checked luggage,
          -- priority luggage handling,
          -- use of Lovebird Executive Lounges, and
          -- earning double 7th Heaven Rewards Miles every time
             they fly and earn their next trip faster.

"With the introduction of Air Jamaica's executive business class, we are now
able to offer customers our superior standard of service at an exceptionally
affordable price.  We recently introduced this service on our London route
and the response has been overwhelming.  Now all our customers will be
pleasantly surprised at this incredible value for money and we invite you to
fly with us and experience this new service," Paul Pennicook, senior vice
president of marketing and sales at Air Jamaica, told Caribbean Net.

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

                        *    *    *

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


AIR JAMAICA: May Merge with Caribbean Airlines
----------------------------------------------
Air Jamaica might join forces with Caribbean Airlines, which will take the
place of British West Indies Airlines next year, to form a regional carrier
that serves the needs of the Caribbean islands, Adfero reports, citing Dr.
Omar Davies, the finance minister of Jamaica.

Dr. Omar told the Jamaica Gleaner that he had investigated the possibility
of a merger between the two airlines.  He suggested that the Jamaican
government immediately explore the possibility.

The main benefit of a merger would be a combined frequent-flier program and
superior regional links between Caribbean destinations, Adfero states,
citing Mike Henry, spokesperson on transport for the opposition in Jamaica.

                         About BWIA

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

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

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

                      About Air Jamaica

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

                        *    *    *

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


AIR JAMAICA: Michael Conway Says Airline Will Do Better
-------------------------------------------------------
Michael Conway, chief executive officer of Air Jamaica told the Jamaica
Observer that Air Jamaica will post better results during the holiday
season.

The Observer relates Mr. Conway said before the parliamentary committee, "We
expect this holiday season will be substantially better than the summer
period, because we do expect our spare levels to be up to where we do not
expect that we will have the cancellation issue we have had over the last
few months."

Air Jamaica experienced cancellations earlier because the carrier was unable
to estimate when airplanes, which have been sent out for maintenance will
return to the fleet, The Observer notes, citing Mr. Conway.

As reported in the Troubled Company Reporter-Latin America on Dec. 11, 2006,
Mr. Conway blamed Air Jamaica's poor maintenance schedule for the
cancellation of flights.

Mr. Conway told The Observer, "Bearing in mind that most passengers buy
their tickets, say, 60 days in advance, when you send an airplane out, what
you do know is the date you are sending the airplane to do a major check,
and in some cases we send it to Bordeaux, France or Hamburg in Germany.
What you don't know is the day it is coming back."

There were some issues involved when the major checks were being done.  One
of which was the amount of extra time needed to address corrosion issues and
making sure all the problems are taken care of before the aircraft is put
back into service, The Observer says, citing Mr. Conway.

Mr. Conway told The Observer, "So when you send an airplane out, you are
already selling tickets based on when you think it is going to return.  If
that airplane does not come back on that day, then you are short an airplane
and that's what triggers some of the cancellations.  When you have one or
two of those situations occurring at the same time, you are not only
operating without a spare aircraft, in fact, you are one aircraft down.  We
will not dispatch an airplane, under any circumstances, unless that airplane
is 100% safe and efficient in our view."

According to The Observer, Mr. Conway admitted that loyalty factor was one
of the main hopes for the recovery of Air Jamaica.

"As an airline, we (Air Jamaica) are blessed with a loyalty factor that is
the envy of most airlines in the world.  That does not mean that we haven't
lost some customers, but I will tell you that the loyalty factor is still
extremely high," Mr. Conway told The Observer.

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.


BRITISH WEST: Caribbean Air May Merge with Air Jamaica
------------------------------------------------------
Caribbean Airlines, which will take the place of British West Indies
Airlines next year, might join forces with Air Jamaica, to form a regional
carrier that serves the needs of the Caribbean islands, Adfero reports,
citing Dr. Omar Davies, the finance minister of Jamaica.

Dr. Omar told the Jamaica Gleaner that he had investigated the possibility
of a merger between the two airlines.  He suggested that the Jamaican
government immediately explore the possibility.

The main benefit of a merger would be a combined frequent-flier program and
superior regional links between Caribbean destinations, Adfero states,
citing Mike Henry, spokesperson on transport for the opposition in Jamaica.

                      About Air Jamaica

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.

                         About BWIA

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

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

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


SUGAR COMPANY: Eyes 10% Boost in Sugar Crop Production
------------------------------------------------------
The Sugar Company of Jamaica is expecting that production will increase 10%
to 109,000 tons during the 2006-07 sugar crop, compared with last season,
the Jamaica Observer reports.

The increase in output was based on production forecasts of the factories
that were very realistic, The Observer notes, citing Dr. Richard Harrison,
Sugar Company president and chief executive officer.

The Observer relates that enhanced farming practices and maintenance
programs attributed to estimated increase in sugar cane output.

Mr. Harrison told The Observer that the Frome factory was expected to
produce 46,500 tons of sugar from 570,000 tons of cane from the crop season
Dec. 7 to May 11; the Monymusk Factory in Clarendon was predicted to deliver
19,000 tons of sugar from 214,100 tons of cane, from Jan. 10 to May 16;
Bernard Lodge in St Catherine was expected to produce 20,000 tons of sugar
from 246,000 tons of cane for the crop period Jan. 8 to May 28; the St
Thomas factory was expected to produce 11,000 tons of sugar from 160,000
tons of cane from Jan. 8 to July 28; and Long Pond in Trelawny was predicted
to produce 12,500 tons of sugar from 165,000 tons of cane from Jan. 8 to
July 16.

Better farming practices and maintenance programs being set up should lead
to more increases for the 2007/2008 crop season, The Observer says, citing
Mr. Harrison.

Roger Clarke, agriculture and lands minister, told The Observer, "I must
report to you today, that what is happening at this point in time, is that
the government and the opposition, we are working together as one to make
sure that we chart a path that can have a successful sugar industry."

Minister Clarke said that a meeting was planned between government and
opposition members, along with the chairperson of the Sugar Company, to
discuss in detail the future of the sugar sector, The Observer relates.  The
meeting was the first step in ensuring bi-partisan consensus on what needed
to be done to move the sector forward.

Minister Clarke praised the sugar workers' commitment plead for the
termination of the illegal burning of cane.  He called for an improvement in
agricultural practices within the sector, and said that privatization of the
sector was not being considered at this time, The Observer states.

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
===========


DESARROLLADORA HOMEX: Discloses Guidance for 2007
-------------------------------------------------
Desarrolladora Homex, S.A.B. de C.V. disclosed guidance for the housing
sector in 2007.

"The housing market in Mexico continues to be strong and I believe the
ratifications announced last week of Mr. Carlos Gutierrez as President of
the National Housing Commission or CONAVI, and Mr. Victor Borras as CEO of
Mexican Workers' Housing Fund Institute or INFONAVIT, provide further
certainty to market outlook," commented David Sanchez-Tembleque, Homex's
Chief Executive Officer.  "President Calderon is outspoken in his support of
the housing market and foresees continued strength in the industry during
his presidency. This support and the increasing participation of commercial
banks in the mortgage market will help to fuel industry grown.  In fact,
CONAVI estimates that the Federal Government Workers' Housing Fund or
FOVISSSTE, INFONAVIT and the Federal Mortgage Financing Institution or SHF,
along with the private sector, will finance approximately 5.5 million homes
in Mexico during the next six years.  We believe Homex is well-positioned to
benefit from the favorable trends."

In 2007, Homex expects revenues to increase 17% to 20% in real terms, while
maintaining an efficient operation.  The company forecasts an improved 2007
EBITDA margin of approximately 24.0%.  In addition, Homex expects to
continue reporting neutral to positive free cash flow after capex and land
acquisition for 2007.

Desarrolladora Homex -- http://www.homex.com.mx-- is a vertically
integrated home development company focused on affordable entry-level and
middle-income housing in Mexico.  It is one of the most geographically
diverse homebuilders in the country.  Homex is the largest homebuilder in
Mexico, based on revenues, number of homes sold and net income.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on Sept. 26,
2006, Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit
ratings on Desarrolladora Homex SAB de C.V.  S&P also said that it affirmed
its 'BB-' rating on Homex's US$250 million, 7.5% senior unsecured notes due
2015.  S&P said the outlook on Homex remains stable.


GRUPO TMM: Acquires Almacenadora de Deposito for US$9 Million
-------------------------------------------------------------
Grupo TMM, SA has acquired Almacenadora de Deposito Moderno SA de CV aka
Ademsa, the fourth largest warehousing system in Mexico for a combination of
cash and debt of US$9.0 million.  With successful earn outs and other
incentives in place the approximate total purchase price could be US$13.0
million in a combination of cash and debt.  Grupo TMM expects this
acquisition to contribute at least US$2.9 million in EBITDA during its first
year of operation and US$15.0 million in revenues.

Javier Segovia said, "The acquisition of this warehouse company will produce
a continued revenue growth in the Logistics division as all types of
synergies are created with our existing customer base, and moreover,
customers will be given one more component to help them in their total
supply chain distribution needs."

Headquartered in Mexico City, Grupo TMM SA (NYSE: TMM)(MEX
VALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin American multimodal
transportation and logistics company.  Through its branch offices and
network of subsidiary companies, TMM provides a dynamic combination of ocean
and land transportation services.

                        *    *    *

Standard & Poor's Ratings Services raised its corporate credit rating on
Grupo TMM SA to 'B-' from 'CCC.'  The rating was removed from Creditwatch,
where it was placed on Dec. 15, 2004. S&P said the outlook is positive.


HERBALIFE LTD: Names Jean Marie Cacciatore VP of Human Resources
----------------------------------------------------------------
Herbalife Ltd. appointed Jean Marie Cacciatore as vice president of human
resources for the company's South America and Southeast Asia region.  She
will be based in the company's offices in Torrance, Calif., and report to
Rob Levy, the region's senior vice president and managing director.

Ms. Cacciatore will be responsible for human resource programs for the
region's employees who are based in 16 locations, including the U.S.
Additionally, Cacciatore will be responsible for real estate planning for
the region.

Ms. Cacciatore has over two decades experience in human resources.  Most
recently, she served as director, international human resources of Warner
Brothers Entertainment, Inc., where her areas of responsibilities included
global mobility, compensation and benefits, with emphasis on retention
issues.

Ms, Cacciatore spent ten years in The Walt Disney Company's human resources
department, ultimately directing the international HR function for corporate
headquarters in Europe, Asia and Latin America, where she led a global team
to implement best practices across regions and businesses.  Other positions
include vice president, human resources at DMX Music Inc.  and global human
resources director for Mast Industries Inc./The Limited Corporation, where
she helped to build teams within the Mast organization in Columbus, Ohio,
Asia and Latin America.

Ms. Cacciatore holds a Bachelor of Arts degree from West Virginia
University, and completed the human resources executive program of the
University of Michigan Business School, in Hong Kong.

Herbalife Limited -- http://www.herbalife.com/-- is a global
network marketing company that sells weight-management,
nutritional supplements and personal care products intended to
support a healthy lifestyle.  Herbalife products are sold in 62
countries through a network of more than one million independent
distributors.  The company supports the Herbalife Family
Foundation -- http://www.herbalifefamily.org/-- and its Casa
Herbalife program to bring good nutrition to children.

Herbalife, now in its 26th year, conducts business in 62
countries.  The company does business with several manufacturers
worldwide and has its own manufacturing facility in Suzhou,
China as well as major distribution centers in Venray,
Netherlands, Los Angeles, Calif., Memphis, Tenn., and
Guadalajara, Mexico.

                        *    *    *

Standard & Poor's Ratings Services rated Herbalife Ltd.'s long-
term foreign and local issuer credit ratings at BB+.


KRISPY KREME: Expects to Post US$117MM Revenues for 3rd Quarter
---------------------------------------------------------------
Krispy Kreme Doughnuts, Inc., disclosed that on a preliminary basis it
expects to report revenues of approximately US$117 million for the third
quarter of fiscal 2007, which ended
Oct. 29, 2006, compared with revenues of approximately US$129 million for
the third quarter of fiscal 2006.  The decrease in revenues reflects a
decline in the number of company stores as well as lower sales to
franchisees by the company's Manufacturing and Distribution segment.

Systemwide sales fell approximately 9% in the third quarter of fiscal 2007
compared with the third quarter of the prior year primarily due to an
approximately 17% decrease in the number of factory stores to 293 (total
stores, including satellites, decreased approximately 8%). Average weekly
sales per factory store (which is computed by dividing sales from all
factory and satellite stores by the number of factory stores in operation)
increased approximately 16% and 12% in company stores and systemwide,
respectively, compared with the third quarter of fiscal 2006.

Average weekly sales per store (which is computed by dividing sales from all
factory and satellite stores by the aggregate number of all such stores in
operation) increased approximately 14% for company stores and decreased
approximately 0.5% systemwide, compared with the third quarter of fiscal
2006.

Systemwide average sales per store decreased slightly while company average
sales per store rose principally because the growth in satellite stores,
which have lower average sales than factory stores, largely has been
concentrated in franchise stores and not in company stores.  The average
sales per unit data reflect, among other things, store closures and the
related shift in off-premises doughnut production into a smaller number of
stores.  Systemwide sales data include sales at all company and franchise
locations.

"While we still have a way to go in Krispy Kreme's turnaround, we are
encouraged by our progress in the third quarter," said Daryl Brewster,
President and Chief Executive Officer.  "The company has agreed to settle
the class action lawsuit and most of the shareholder derivative litigation.
Average unit volumes rose at company-owned stores.  Krispy Kreme continued
its international expansion while filling several key management positions
critical to achieving sustained growth."

The company noted that its financial results continue to be adversely
affected by the substantial costs associated with the legal and regulatory
matters previously disclosed by the company.  The company expects to report
a net loss for the third quarter of fiscal 2007.

                    Financial Position

The company believes that cash flow from operations and existing cash
balances will be sufficient to meet its liquidity needs.  As of Oct. 29,
2006, the company's cash balance was approximately US$35 million and its
indebtedness was approximately US$119 million (including capital lease
obligations), compared with approximately US$16 million and US$123 million,
respectively, at Jan. 29, 2006.  The January amounts exclude amounts
relating to Glazed Investments, the company's consolidated franchisee at the
time.  As of
Oct. 29, 2006, the company had no consolidated franchisees.

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded
specialty retailer of premium quality doughnuts, including the
company's signature Hot Original Glazed.  There are currently
approximately 323 Krispy Kreme stores and 79 satellites operating systemwide
in 43 U.S. states, Australia, Canada, Mexico, the Republic of South Korea
and the United Kingdom.

The company generates revenues from three distinct sources: company-owned
stores, franchise fees and royalties from franchise stores, and a vertically
integrated supply chain.

Freedom Rings, LLC, company's franchisee in Eastern Pennsylvania, Delaware
and Southern New Jersey, filed on
Oct. 16, 2005 for Chapter 11 protection with the Delaware Bankruptcy Court
(Bankr. D. Del. Case No. 05-14268).  Following closure of its four remaining
stores, the Bankruptcy Court confirmed Freedom Rings' plan of liquidation on
April 20, 2006, and its operations have been substantially wound up.

KremeKo, Inc., Krispy Kreme's Canadian franchisee, filed for restructuring
on April 15, 2005, pursuant to the Companies' Creditors Arrangement Act with
the Ontario Superior Court of Justice.  Krispy Kreme Doughnut Corp. agreed
to pay approximately US$9.3 million to two secured creditors to settle its
obligations with respect to its guarantees pertaining to certain indebteness
and related equipment agreements.  In exchange, a newly formed subsidiary of
Krispy Kreme Doughnut Corp. acquired substantially all of the operating
assets of KremeKo, as authorized by the Ontario Court.

Glazed Investments, LLC, company's franchisee in Colorado, Minnesota and
Wisconsin, filed for Chapter 11 protection on
Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06-00932).  Subsequent to this
filing, Glazed Investments sold its remaining 12 Krispy Kreme stores to
Western Dough, Krispy Kreme's area developer for Nevada, Utah, Idaho,
Wyoming and Montana, for appoximately US$10 million.  This sale was
facilitated by the Chapter 11 filing, by permitting the assets to be sold
free and clear of all liens, claims and encumbrances.

Under the plan of liquidation filed by Glazed Investments, it will be
dissolved after distribution of the sale proceeds to creditors, and Krispy
Kreme will not receive any payment on account of its ownership in Glazed
Investments.  While a substantial portion of Glazed Investments' debts were
retired from the sale proceeds and liquidation of other assets, Krispy Kreme
paid approximately US$1 million of its franchisee's debt which was
guaranteed by it.


KRISPY KREME: District Ct. Sets Feb. 7 for Settlement Hearing
-------------------------------------------------------------
The U.S. District Court for the Middle District of North Carolina issued an
Order setting Feb. 7, 2007, as the hearing date for final approval of the
terms of the settlement of the shareholder derivative action entitled Wright
v. Krispy Kreme Doughnuts, Inc., et al.

The Order also approved the form of notice to shareholders, which provides
details regarding the hearing, the lawsuit, the settlement and the right of
shareholders to object to the settlement.

As reported in the Troubled Company Reporter on Nov. 6, 2006, the company
has entered into a Stipulation and Settlement Agreement with the lead
plaintiffs in the pending securities class action, the plaintiffs in the
pending derivative action and all defendants named in the class action and
derivative action, except for the company's former chairman and chief
executive officer, providing for the settlement of the securities class
action and the derivative action.

Both the class action and derivative action settlements are subject to
preliminary and final approval of the U.S. District Court for the Middle
District of North Carolina.

A full text-copy of the Notice of Proposed Settlement may be viewed at no
charge at http://ResearchArchives.com/t/s?1699

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded specialty
retailer of premium quality doughnuts, including the
Company's signature Hot Original Glazed.  There are currently
approximately 320 Krispy Kreme stores and 80 satellites operating systemwide
in 43 U.S. states, Australia, Canada, Mexico, the Republic of South Korea
and the United Kingdom.

Headquartered in Winston-Salem, North Carolina, Freedom Rings LLC is a
majority-owned subsidiary and franchisee partner of Krispy Kreme Doughnuts,
Inc., in the Philadelphia region.  Freedom Rings operates six out of the
approximately 360 Krispy Kreme stores and 50 satellites located worldwide.
The Company filed for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del.
Case No. 05-14268).  M. Blake Cleary, Esq., Margaret B. Whiteman, Esq., and
Matthew Barry Lunn, Esq., at Young Conaway Stargatt & Taylor, LLP, represent
the Debtor in its restructuring efforts.  When the Debtor filed for
protection from its creditors, it estimated US$10 million to US$50 million
in assets and debts.

Headquartered in Oak Brook, Illinois, Glazed Investments, LLC, is a
97%-owned unit of Krispy Kreme.  Glazed filed for chapter 11 protection on
Feb. 3, 2006 (Bankr. N.D. Ill. Case No.
06-00932).  The bankruptcy filing will facilitate the sale of 12 Krispy
Kreme stores, as well as the franchise development rights for Colorado,
Minnesota and Wisconsin, for approximately US$10 million to Westward Dough,
the Krispy Kreme area developer for Nevada, Utah, Idaho, Wyoming and
Montana.  Daniel A. Zazove, Esq., at Perkins Coie LLP represents Glazed in
its restructuring efforts.  When Glazed filed for protection from its
creditors, it estimated assets and debts between US$10 million to US$50
million.

KremeKo, Inc., Krispy Kreme's Canadian franchisee, is currently
restructuring under the Companies' Creditors Arrangement Act.
Pursuant to the Court's Initial Order, Ernst & Young Inc. was
appointed as Monitor in KremeKo's CCAA proceedings.  The Monitor
is attempting to sell the KremeKo business.


PORTOLA INC: Moody's Affirms Caa1 Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service changed the outlook for the ratings of Portola
Packaging, Inc., to stable from negative and concurrently affirmed existing
ratings including the Caa1 Corporate Family Rating.

The change of the ratings outlook to stable from negative acknowledges the
improvements realized by Portola's restructuring efforts, which have served
to buoy its operations and financial metrics.  Moreover, liquidity has
remained adequate during difficult periods and is expected to remain
adequate throughout the near term.

The stable outlook also recognizes the consistency of its dairy, juice, and
water businesses, long-term customer relationships coupled with a high
percent of business under contract.  Anticipated improvement in resin costs
and the company's ability to pass through cost increases to customers with
moderate lag effects also contribute to the stability of the ratings
outlook.  There is an expectation of modestly higher spending on research
and development as well as a reallocation of and potential increase in
capital expenditures to support growth and manufacturing projects.  The
stable outlook also incorporates the expectation of no material litigation
during fiscal 2007 and includes some likely increase in working capital
requirements primarily due to the timing of larger projects late in fiscal
2006 that run into 2007.

Should the company continue to perform according to expectations, Moody's
believes that a positive outlook change could be considered during the near
term.  Specifically, sustained improvement in free cash flow to debt in the
mid-single digits coupled with EBIT coverage of interest expense in excess
of 1 time, and modest improvement in margins and returns above current
levels could trigger a more favorable change in the outlook and/or the
ratings.

Given Portola's weak, albeit improved, financial profile, there is little
tolerance for negative variance under operating and financial expectations.
Any deterioration in performance, change in business strategy, or meaningful
reduction in liquidity could put negative pressure on the outlook and
ratings.

The affirmation of the Portola's Caa1 CFR reflects Portola's ongoing
business challenges in many of its segments which pressure volume and
margins due to weak demand in the cosmetics/fragrances/toiletries markets at
Tech, general mix and volume concerns globally, and inflationary costs.
While acknowledging that major restructuring is likely behind Portola for
most of its businesses, certain segments remain impaired and in need of
further realignment -- namely Tech, the UK, and to a lesser extent, the
Mexican operations.

The application of Moody's Global Packaging Manufacturers Rating Methodology
yields a Caa1 indicated CFR, which is consistent with the actual rating.
Weak scores in Financial Leverage and Interest Coverage as well as in
Competitive Position are the principal drivers of the rating.

Moody's affirmed these ratings:

   -- B1 rating for the US$60 million Guaranteed Senior Secured
      Revolver, LGD-2, 11%

   -- Caa2 rating for the $180 million Guaranteed Senior
      Unsecured Notes due 2012, LGD-4, 65%;

   -- Caa1 Corporate Family Rating; and

   -- Caa1 Probability of Default Rating.

The ratings outlook changed to stable from negative.

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


SENSATA TECH: Moody's Affirms B2 Rating with Stable Outlook
-----------------------------------------------------------
Moody's Investors Service affirmed Sensata Technologies B.V.'s B2 corporate
family and probability of default ratings.

Moody's rating affirmation pertains to Sensata's pending acquisition of
First Technology Automotive and Special Products from Honeywell and its
subsequent financing via a US$95 million add-on to Sensata's existing senior
secured Term Loan B.

Moody's also affirmed all other ratings for Sensata.

The rating outlook remains stable.

The ratings reflect Sensata's high leverage, low interest coverage,
relatively low free cash flow relative to debt levels and limited tangible
asset protection.

Additionally, Moody's notes that Sensata's highly levered capital structure
and short operating history as a stand-alone company creates additional
concerns.

The primary factors supporting Sensata's ratings are:

   -- its track record of stable cash flow generation and margin
      expansion;

   -- long standing customer relationships;

   -- significant barriers to entry in Sensata's core markets;
      and

   -- above-average revenue visibility and significant
      enterprise value support.

Moody's believes that the US$90 million FTAS transaction is relatively small
and the US$95 million of increased debt does not materially affect credit
risk.  Synergies appear to be a major driver for the acquisition.

Additionally, Moody's believes that FTAS's higher growth steering angle
sensors and fuel level sensor product platforms compliment Sensata existing
product portfolio.

While the transaction will be financed entirely with debt, Moody's does not
believe that it will result in a material change to the company's leverage.
If presumed synergies materialize towards the latter end of the rating
horizon, the transaction would result in increased cash flow and could
facilitate slightly faster debt reduction than originally contemplated when
Moody's first rated the company in April 2006.

Sensata designs and manufactures sensors and electrical and electronic
controls and has business and technology development centers in Attleboro,
Massachusetts, Holland and Japan and manufacturing operations in Brazil,
China, Korea, Malaysia, and Mexico, as well as sales offices around the
world.  Revenues for the trailing twelve months ended June 30, 2006, were
approximately US$1.1 billion.


MERIDIAN AUTO: Posts US$17 Million Net Loss in October 2006
-----------------------------------------------------------

             Meridian Automotive Systems - Composites
                 Operations, Inc. and Subsidiaries
               Unaudited Consolidated Balance Sheet
                      As of October 31, 2006
                          (In Thousands)

CURRENT ASSETS:
    Cash                                                       -
    Accounts receivable, net                           US$77,998
    Intercompany receivable                               15,308
    Inventories                                           61,875
    Tooling costs in excess of billings and others        27,702
                                                      ----------
       TOTAL CURRENT ASSETS                              182,883
                                                      ----------
    Property, plant and equipment, net                   201,358
    Intangible assets                                     15,179
    Investment in subsidiaries                            23,863
    Other assets                                           8,404
                                                      ----------
       TOTAL ASSETS                                   US$431,687
                                                      ==========

CURRENT LIABILITIES NOT SUBJECT TO COMPROMISE:
    Current portion of long term debt                  US$61,722
    Accounts payable                                      44,463
    Accrued expenses                                      41,874
    Tooling billings in excess of costs                    6,229
                                                      ----------
       TOTAL CURRENT LIABILITIES                         154,288
                                                      ----------

    Liabilities subject to compromise                    810,672

    Non-Current Liabilities Not Subject to Compromise:
       Other long-term liabilities                         8,764
       Accumulated post-retirement benefit obligation     23,383
                                                      ----------
       TOTAL LIABILITIES                                 997,107
       SHAREHOLDERS' EQUITY                            (565,420)
                                                      ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY            US$431,687
                                                      ==========

              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
                 Unaudited Statement of Operations
                        October 1 to 31, 2006
                           (In Thousands)

Net sales                                              US$59,126
Cost of sales                                             60,697
                                                      ----------
Gross profit                                             (1,571)

Selling, general and administrative expenses               2,543
Restructuring charges                                      2,241
                                                      ----------
Operating income (loss)                                  (6,355)

Interest expense, net                                      9,062
Other (expense) income                                        15
Chapter 11 and related reorganization items                1,565
                                                      ----------
Loss before provision for income taxes                  (16,967)
(Benefit) Provision for income taxes                          56
                                                      ----------
NET LOSS                                             (US$17,023)
                                                      ==========

              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
                 Unaudited Statement of Cash Flows
                        October 1 to 31, 2006
                           (In Thousands)

OPERATING ACTIVITIES:
    Net loss                                         (US$17,023)
    Adjustments required to reconcile net loss to net
     cash provided by (used in) operating activities:
       Depreciation, amortization, and impairment          4,374
       Change in working capital and other operating
        items                                              8,939
                                                      ----------
     Net cash provided by (used for) operating
      activities before reorganization items             (3,710)
                                                      ----------
     Operating cash flows from reorganization items:
        Chapter 11 and related reorganization items        1,565
        Payments on Chapter 11 and related reorg items     (515)
                                                      ----------
     Net cash provided by Chapter 11 and related
      reorg items                                          1,050

     Net cash provided by (used for) operating
      activities                                         (2,660)

INVESTING ACTIVITIES:
    Additions to property and equipment                  (1,230)
    Proceeds from sale or property and equipment              40
                                                      ----------
    Net cash used for investing activities               (1,190)
                                                      ----------

FINANCING ACTIVITIES:
    Proceeds from prepetition borrowings                       -
    Repayments of prepetition borrowings                       -
    Proceeds from DIP credit facility                     35,000
    Repayments of DIP credit facility                   (31,000)
    Repayments on prepetition long-term debt                   -
    Deferred financing costs capitalized                   (150)
                                                      ----------
Net cash (used for) provided by financing activities       3,850
                                                      ----------
Net increase (decrease) in cash                                -
                                                      ----------
Cash and Cash Equivalents, beginning of period                 -

Cash and Cash Equivalents, end of period                       -
                                                      ==========

Headquartered in Dearborn, Mich., Meridian Automotive Systems
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and other interior
systems to automobile and truck manufacturers.  Meridian operates 22 plants
in the United States, Canada and Mexico, supplying Original Equipment
Manufacturers and major Tier One parts suppliers.  The Company and its
debtor-affiliates filed for chapter 11 protection on April 26, 2005 (Bankr.
D. Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan, Esq., Larry
J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan Guzina, Esq., at Sidley
Austin Brown & Wood LLP, and Robert S. Brady, Esq., Edmon L. Morton, Esq.,
Edward J. Kosmowski, Esq., and Ian S. Fredericks, Esq., at Young Conaway
Stargatt & Taylor, LLP, represent the Debtors in their restructuring
efforts.  Eric E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also hired Ian
Connor Bifferato, Esq., at Bifferato, Gentilotti, Biden & Balick, P.A., to
prosecute an adversary proceeding against Meridian's First Lien Lenders and
Second Lien Lenders to invalidate their liens.  When the Debtors filed for
protection from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.  (Meridian Bankruptcy
News, Issue No. 45; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


VITRO SA: Shareholders Approve Merger of Vitro Plan & Vimexico
--------------------------------------------------------------
Vitro SAB de CV disclosed that the merger of its subsidiary Vitro Plan, SA
de CV in Vimexico SA de CV, a former creditor of Vitro Plan and a 100
percent owned subsidiary of the company, was approved at a General
Extraordinary Shareholders Meeting of Vitro Plan on second call.

Through this merger Vitro Plan will reduce its debt by US$135 million
significantly reducing its debt to EBITDA ratio from 4.5 to 3.2 times. The
merger will strengthen the Flat Glass business unit's financial position.

"This initiative allows us to strengthen our relationships with customers
and suppliers.  A stronger financial structure allows Flat Glass to improve
its competitive position in Mexico and all the countries in which we
operate.  Vitro Plan will be a stronger company," commented Hugo Lara,
Chairman and CEO of Vitro Plan.

With the approval of this merger, Vitro will own 91.8% of Vimexico and its
partner Pilkington shall own the remaining 8.2%.  Pilkington opposed the
adoption of the shareholder resolution.

Headquartered in Nuevo Leon, Mexico, Vitro, S.A. de C.V. --
http://www.vitro.com/-- (NYSE: VTO; BMV: VITROA), through its subsidiary
companies, is one of the world's leading glass producers.  Vitro is a major
participant in three principal businesses: flat glass, glass containers and
glassware.  Its subsidiaries serve multiple product markets, including
construction and automotive glass; food and beverage, wine, liquor,
cosmetics and pharmaceutical glass containers; glassware for commercial,
industrial and retail uses.  Vitro also produces raw materials and equipment
and capital goods for industrial use, which are vertically integrated in the
Glass Containers business unit.

Founded in 1909, Monterrey, Mexico-based Vitro has joint ventures with major
world-class partners and industry leaders that provide its subsidiaries with
access to international markets, distribution channels and state-of-the-art
technology.  Vitro's subsidiaries have facilities and distribution centers
in eight countries, located in North, Central and South America, and Europe,
and export to more than 70 countries worldwide.

                        *    *    *

As reported in the Troubled Company Reporter on Mar. 27, 2006,
Standard & Poor's Ratings Services lowered its long-term local and foreign
currency corporate credit ratings assigned to glass manufacturer Vitro SA de
CV and its glass containers subsidiary Vitro Envases Norteamerica SA de CV
(Vena) to 'B-' from 'B'.

Standard & Poor's also lowered the long-term national scale corporate credit
rating assigned to Vitro to 'mxBB+' from 'mxBBB-' with negative outlook.

Standard & Poor's also lowered the rating assigned to Vitro's notes due 2013
and Servicios y Operaciones Financieras Vitro SA de CV notes due 2007 (which
are guaranteed by Vitro) to 'CCC' from 'CCC+'.  Standard & Poor's also
lowered the rating assigned to Vena's notes due 2011 to 'B-' from 'B'.




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


* NICARAGUA: IMF Completes Final Review on PRGF Arrangement
-----------------------------------------------------------
The Executive Board of the International Monetary Fund has completed the
eleventh and final review of Nicaragua's performance under the Poverty
Reduction and Growth Facility or PRGF arrangement.  In completing the
review, the Executive Board approved Nicaragua's request for waivers of
performance criteria.  In addition, the Executive Board completed the
financing assurances review under Nicaragua's PRGF arrangement.

The completion of the review makes available SDR13.9 million (about US$21
million) for disbursement.  Nicaragua's three-year PRGF arrangement
amounting to SDR97.5 million (about US$147.5 million) was approved in
December 2002 and further extended in February 2006.

After the Executive Board's discussion of Nicaragua, Mr. Murilo Portugal,
Deputy Managing Director and Acting Chair, issued this statement:

"Nicaragua's performance under the PRGF arrangement continues to be
satisfactory, reflecting the authorities' prudent and pro-active management.
Notwithstanding the challenging circumstances of an election year,
macroeconomic stability has been maintained.  Growth has remained positive,
inflation has begun to decline, and the overall external position has been
strengthened.  International reserves have remained stable and the decline
in deposits experienced in the run up to the elections is being reversed.
However, progress on structural reforms has been slow and fraught with
political difficulty.

"The authorities have sought to strengthen further the macro-policy
framework by preparing a prudent 2007 budget that would lower the
consolidated public sector deficit while increasing the level of poverty
reducing expenditure.  This will underpin stability, while setting a good
base for sustained growth, supported by public investment.  The new
government will need to exercise vigilance with respect to pressures for
higher public sector wages and subsidies, which could adversely affect
stability and competitiveness, and should be prepared to implement
offsetting measures, if needed.  It will also be important to repeal the
fiscally unsustainable pension reform Law 539 approved last year.

"The new administration is encouraged to advance early and quickly with the
remaining agenda of structural reforms.  Strengthening the regulatory
framework for the energy sector should be a priority, in order to bolster
financial stability and attract needed new investment in the sector.  Road
maps have already been prepared for critical reforms of the pension and
fiscal responsibility frameworks, as well as draft laws to reform the fiscal
decentralization process.  It will be essential to reach a political
consensus in favor of these reforms in the period ahead so that they can
move forward.

"The legacy of broadly strong performance under the current PRGF-supported
program sets a good base for additional structural reforms to cement
stability, boost growth, and reduce poverty," Mr. Portugal said.

                        *    *    *

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 E R U
=======


PERU ENHANCED: S&P Rates A-1 & A-2 Sr. Unsecured Notes at BB
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary ratings to Peru
Enhanced Pass-Through Finance Ltd.'s US$742 million class A-1 senior secured
notes due 2018 and US$455 million class A-2 senior secured notes due 2025 at
BB.

The preliminary ratings are based on information as of
Dec. 11, 2006.  Subsequent information may result in the assignment of final
ratings that differ from the preliminary ratings.

The preliminary ratings reflect:

   -- The sound legal and financial structure of the
      transaction including the true sale of the underlying
      assets;

   -- The 'BB+' foreign currency rating on the government of
      Peru;

   -- The unconditional and irrevocable payment obligation of
      the government of Peru under the certificados de
      reconocimiento derechos del pago anual por obras; and

   -- The 'AAA' rating assigned to Inter-American Development
      Bank.

The preliminary ratings also address the timely payment of principal and
interest.


PRIDE INTERNATIONAL: Names Kenneth Burke to Board of Directors
--------------------------------------------------------------
Pride International, Inc., appointed Kenneth M. Burke to the Board of
Directors upon the recommendation of Pride's Nominating and Corporate
Governance Committee.  Mr. Burke was also appointed to the company's Audit
Committee.

Mr. Burke is a retired partner of Ernst & Young, LLP, where over the course
of a 31-year career he served in various positions, including National
Director of Energy Services, Managing Partner of Assurance and Advisory
Business Services for the Gulf Coast Area, and Coordinating Partner for
energy and oilfield service companies.  Mr. Burke currently serves as a
director of Trico Marine Services, Inc.

Headquartered in Houston, Texas, Pride International, Inc. --
http://www.prideinternational.com/-- is a drilling contractor.
The Company provides onshore and offshore drilling and related
services in more than 25 countries, operating a diverse fleet of
278 rigs, including two ultra-deepwater drillships, 12
semi submersible rigs, 28 jackup rigs, 18 tender-assisted, barge
and platform rigs, and 218 land rigs.  Pride also provides a
variety of oilfield services to customers in Argentina,
Venezuela, Bolivia and Peru.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on contract driller Pride International Inc. and
removed the rating from CreditWatch with negative implications.
The outlook is stable.  As of June 30, 2006, Houston, Texas-
based Pride had US$1.01 billion in adjusted debt.

As reported in the Troubled Company Reporter on Aug. 17, 2006,
Fitch Ratings raised Pride International's Issuer Default Rating
to 'BB' from 'BB-'.  Fitch also raised the ratings on Pride's
senior secured revolving credit facility, senior unsecured notes
and their convertible senior notes.




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


ADELPHIA COMMS: Files October 2006 Monthly Operating Report
-----------------------------------------------------------

          Adelphia Communications Corporation, et al.
           Consolidated Statement of Net Liabilities
                  In Liquidation (Unaudited)
                     As of October 31, 2006
                     (Dollars in thousands)

                            ASSETS

Cash and cash equivalents                           US$5,969,114
Restricted cash                                           33,742
Short-term investments                                 3,268,660
Proceeds from Sale Transaction held in escrow            734,628
TWC Class A Common Stock                               5,475,208
Other assets                                             259,593
                                                     -----------
Total Assets                                       US$15,740,945
                                                     ===========

        LIABILITIES AND NET LIABILITIES IN LIQUIDATION

Accounts payable                                        US$1,034
Income and other taxes payable                           512,221
Accrued liquidation costs                                192,215
Other accrued liabilities                                295,554
Liabilities subject to compromise                     16,488,549
                                                     -----------
Total liabilities                                  US$17,489,573
                                                     -----------
Net Liabilities in Liquidation                    (US$1,748,628)
                                                     ===========

           Adelphia Communications Corporation, et al.
           Unaudited Consolidated Statement of Changes
                In Net Liabilities In Liquidation
                  Month Ended October 31, 2006
                     (Dollars in thousands)

Net liabilities in liquidation
at Sept. 30, 2006, as previously reported         (US$2,951,144)

Changes in net liabilities in liquidation at
September 30, 2006:
   Change in estimate of net realizable value of
      TWC Class A Common Stock                           756,173
   Reversal of adjustment of liabilities subject
      to compromise to face value                        181,594
   Changes to accrual for liquidation costs              118,504
   Adjustments to gain on Sale Transaction, net
      of taxes                                            45,000
   Interest income from affiliates                        13,884
                                                     -----------
Total change to net liabilities in liquidation
   at September 30, 2006                               1,115,155
                                                     -----------
Net liabilities in liquidation at
Sept. 30, 2006, as revised                           (1,835,989)
                                                     -----------
Changes in net liabilities in liquidation:
   Settlement of liabilities subject to compromise        83,164
   Changes in estimate of net realizable value of
      assets                                             (2,943)
   Change in estimate of accrued liquidation costs         (617)
   Interest income                                        42,819
   Interest income from affiliates                         7,411
   Interest expense                                     (42,473)
                                                     -----------
Net change in net liabilities in liquidation              87,361
                                                     -----------
Net liabilities in liquidation                       (1,748,628)
                                                     ===========

Janet Dickinson, Adelphia Communications Corp.'s chief accounting officer,
states that ACOM's unaudited consolidated
Monthly Operating Report for the month of October 2006 reflects
adjustments to its previously reported net liabilities in
liquidation at Sept. 30, 2006.

The adjustments represent certain items which were reflected in
ACOM's quarterly report on Form 10-Q for the period ended
Sept. 30, 2006, which had not been reported in ACOM's
previous monthly operating reports, Ms. Dickinson explains.

Based in Coudersport, Pa., Adelphia Communications Corp.
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth-largest cable
television company in the country.  Adelphia serves customers in 30 states
and Puerto Rico, and offers analog and digital video services, high-speed
Internet access and other
advanced services over its broadband networks.  The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002.  Those cases
are jointly administered under case number 02-41729.  Willkie Farr &
Gallagher represents the ACOM Debtors.  PricewaterhouseCoopers serves as the
Debtors' financial advisor.  Kasowitz, Benson, Torres & Friedman, LLP, and
Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of the Rigas
family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11 protection on March
31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642).  Their cases
are jointly administered under Adelphia Communications and its
debtor-affiliates chapter 11 cases.  (Adelphia Bankruptcy News, Issue No.
150; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


HORIZON LINES: Renews Principal Agreements with Maersk
------------------------------------------------------
Horizon Lines, Inc., has renewed and extended through 2010, all of its
principal commercial and operating arrangements with the AP Moller Maersk
Group.

Horizon Lines and Maersk are parties to a number of agreements that include
cargo space charters, terminal services, equipment sharing, and sales agency
services.  The agreements, previously scheduled to expire at the end of
2007, have been extended through 2010 and include extension options at the
mutual agreement of both parties.

"We are very pleased to extend our commercial and operating agreements with
Maersk for an additional three years," said Chuck Raymond, Chairman,
President and Chief Executive Officer.  "Horizon Lines and Maersk have been
partners since our company began operations on Dec. 10, 1999.  These various
agreements provide operational and financial benefits to Horizon Lines and
Maersk, and truly represent a 'win-win' for both companies."

"This is a new milestone in an important and mutually beneficial
partnership," said Russ Bruner, President and Chief Executive Officer of
Maersk Inc.  "This agreement will continue a long lasting and well
established relationship that has been a key element of the excellent
container shipping services provided by both companies over the last seven
years."

Headquartered in Charlotte, North Carolina, Horizon Lines, Inc.
-- http://www.horizonlines.com/-- is the U.S.'s leading Jones
Act container shipping and integrated logistics company and is
the ultimate parent company of Horizon Lines Holding Corp., and
Horizon Lines LLC.  The Company accounts for approximately 37%
of total U.S. marine container shipments from the continental
U.S. to the three non-contiguous Jones Act markets, Alaska,
Hawaii and Puerto Rico, and to Guam.

                        *    *    *

As reported in the Troubled Company Reporter on March 2, 2006,
Standard & Poor's Ratings Services revised its outlook on
Horizon Lines Inc., a cargo shipping company based in Charlotte,
North Carolina, to positive from stable.  At the same time, the
'B' corporate credit rating was affirmed.


HORIZON LINES: Moody's Affirms B2 Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service affirmed the ratings of H-Lines Finance Holding
Corp.'s Corporate Family Rating of B2, and has changed the ratings outlook
to positive from stable.

The ratings reflect expectations of generally stable revenues over the
intermediate term from broad-based demand for Horizon's containership
services with the potential for a modest improvement in the operating margin
from productivity gains.  Horizon's substantial market share within each of
its Jones Act trade lanes, low revenue concentration, the oligopoly
structure of the company's markets and high barriers to entry due to Jones
Act protections suggest that Horizon's revenue is expected to be somewhat
more stable over the economic cycle.  Retained Cash Flow to Net Debt and
Debt to EBITDA improved steadily to levels that are more consistent with the
rating, due to better profits during the cycle as well as from the repayment
of debt with the proceeds of a primary equity offering.  Nonetheless,
operational and execution risks associated with the redeployment of higher
capacity vessels across the company's trade routes, and exposure to regional
economic cycles could temper further improvement in the credit profile, as
could one or more debt-financed acquisitions.

Debt will increase during 2007 as the long-term bare-boat charters for five
new vessels begin, increasing annual lease financing expense by US$32
million.  Moody's capitalizes the lease expense for shipping companies at
8x, so the additional charters would increase debt by US$256 million to
about US$1.3 billion.  Nonetheless, Moody's notes the positive development
in that Horizon has begun to address the long term fleet replacement issue.
Also considered in the ratings is the still very old vintage of Horizon's
Jones Act qualified vessels, which have higher operating and maintenance
costs relative to modern tonnage, and for which the potential cost of
replacement is sizable, partly because of the requirement that the vessels
be constructed in US yards.

The change in outlook to positive reflects Moody's view that the recent
improvements in leverage and coverage realized since December 31, 2005 could
be sustained in the current range over the intermediate term.  As well,
Moody's believes that Horizon should execute the upcoming redeployment of
vessels and route changes with minimal disruption to service levels, which
should support stability of earnings.

"While adjusted debt will increase in 2007 upon the capitalization of the
bare-boat charters, it is possible for Debt to EBITDA to increase only
modestly from the most recent 4.4x, and remain at the B1 level of that
sub-factor of Moody's Global Shipping Rating Methodology.  The successful
redeployment of the fleet, the realization of expected cost savings from
process improvements, and continuing supportive demand, will be important
determinants of operating results and resultant credit metrics in 2007,"
said Jonathan Root, Moody's Shipping Analyst.

Ratings could be upgraded if Horizon was to sustain an EBIT margin in the
low double-digit range or was to reduce balance sheet debt to offset the
incremental debt resulting from the new bare-boat charters, to produce a
sustainable leverage below 4.5x or EBIT to Interest Coverage above 2.0x.

The ratings could be downgraded if Horizon's operating performance weakens
materially, resulting in EBIT to Interest being sustained below 1.5x or if
Debt to EBITDA were to be sustained above 5.5x. One or more acquisitions
resulting in meaningfully higher debt levels would likely place downward
pressure on the ratings, as would a debt-financed program to replace the
Jones Act qualified vessels in the fleet.

H-Lines Finance Holding Corp.

Ratings and Assessment Affirmed:

   -- Corporate Family at B2;
   -- Probability of Default at B2; and
   -- Senior Unsecured Discount Notes at Caa1 (LGD6, 94%).

Outlook Action:

   -- Outlook, Changed to Positive from Stable.

Horizon Lines, LLC:

Rating Affirmed and Assessment Revised:

   -- Senior Secured at Ba2 (LGD2, to 18% from 20%)

Rating and Assessment Affirmed:

  -- Senior Unsecured Notes at B3 (LGD4, 69%)

Outlook Action:

   -- Outlook, Changed to Positive from Stable.

Headquartered in Charlotte, North Carolina, Horizon Lines, Inc.
-- http://www.horizonlines.com/-- is the U.S.'s leading Jones
Act container shipping and integrated logistics company and is
the ultimate parent company of Horizon Lines Holding Corp., and Horizon
Lines LLC.  The Company accounts for approximately 37% of total U.S. marine
container shipments from the continental U.S. to the three non-contiguous
Jones Act markets, Alaska, Hawaii and Puerto Rico, and to Guam.


MUSICLAND HOLDING: Truesdell Files Affidavit in Support of Plan
---------------------------------------------------------------
Hobart G. Truesdell, as the Responsible Person under Musicland Holding Corp.
and its debtor-affiliates' Joint Plan of Liquidation, asserts that the U.S.
Bankruptcy Court for the Southern District of New York should confirm the
Plan because it complies with Section 1129(a)(1) of the Bankruptcy Code.

According to Mr. Truesdell, he is familiar with the Debtors' financial
affairs and the terms and provisions of the Plan.

The Plan is the result of negotiations between the Debtors, the
Official Committee of Unsecured Creditors and the Informal
Committee of Secured Trade Vendors, Mr. Truesdell relates.  "The
Plan was filed to effectuate an orderly distribution of the
Debtors' liquidated assets to facilitate the resolution of the remaining
claims of and by the Debtors' estates and in an effort to provide the most
value to the Debtors' creditors."

Mr. Truesdell contends that the classification of Claims and
Interests in the Plan complies with Section 1122 of the
Bankruptcy Code because the classification is based on the similar nature of
claims or interests contained in each Class.

The Plan complies with Section 1123(a) of the Bankruptcy Code,
Mr. Truesdell avers, because:

   -- the Plan provides that Claims in Classes 1 and 2 are
      unimpaired under the Plan;

   -- the Plan specifies the treatment of each impaired Class of
      Claims and Interests;

   -- the Plan provides similar treatment of each Class or
      Interest of a particular Class;

   -- the Plan sets forth the means for implementation of the
      Plan including the appointment of the Responsible Person
      and the formation of the Plan Committee; and

   -- the Plan describes the means and manner of distribution of
      the assets and dissolution of the Debtors.

Mr. Truesdell attests that:

   (a) the Plan was proposed in good faith with the legitimate
       and honest purpose of liquidating the Debtors' remaining
       assets and providing for the orderly distribution to all
       holders of the Allowed Claims;

   (b) the Debtors and their agents have solicited votes on the
       Plan in good faith;

   (c) the Debtors have paid the fees, costs and expenses in
       connection with the Chapter 11 Cases in a manner
       consistent with the Court's order;

   (d) the Plan does not contemplate any ongoing business
       operation, and does not provide for any rate charges over
       which a governmental regulatory commission has
       jurisdiction;

   (e) all persons holding impaired Claims will receive property
       having a value of at least as much or more under the Plan
       than in a Chapter 7 liquidation;

   (f) the Plan is fair and equitable, and does not discriminate
       unfairly against the deemed rejecting Class;

   (g) the Plan provides for the full payment, on the Effective
       Date, of all Allowed Administrative Expense Claims,
       Priority Tax Claims, Other Priority Claims and Other
       Secured Claims; and

   (h) the voting classes of creditors has voted overwhelmingly
       in favor of the Plan.

              Post-Effective Date Agreement Amended

The Debtors presented to the Court a copy of their Post-effective Date
Agreement with Hobart Truesdell, dated
Nov. 27, 2006, with certain modifications:

   (a) If a claimholder's distribution is returned as
       undeliverable, no further distributions to the
       claimholder will be made unless and until the Responsible
       Person, Hobart G. Truesdell, is notified of the
       claimholder's then current address, at which time all
       missed distributions will be made to the claimholder
       without interest.

   (b) All funds or other undeliverable distributions returned
       to Mr. Truesdell and held in the Unclaimed Distributions
       Reserve but not claimed within six months of return will
       be with respect to Claims in Classes 3 and 4 distributed
       to the other creditors of Classes 3 and 4, in accordance
       with the provisions of the Plan applicable to
       distributions to that Class.

   (c) Mr. Truesdell will have no obligation to make a
       distribution on account of an Allowed Claim from any
       Reserve or account to any holder of an Allowed Claim if
       the aggregate amount of all distributions authorized to
       be made from all those Reserves or accounts on the
       Distribution Date in question is less than US$250,000.

   (d) Proceeds recovered from the Prosecution of the Unsecured
       Transferred Actions will be distributed in accordance
       with the terms of the Plan.

A full-text copy of November 27 Post-Effective Date Agreement is available
for free at http://researcharchives.com/t/s?16ad

          Schedule of Avoidance Actions Also Amended

The Debtors amend the schedule of current and potential defendants to
Avoidance Actions, which have or may be commenced by Hobart G. Truesdell, on
behalf of the Debtors, or the Plan Committee pursuant to the Second Amended
Plan of Liquidation.

The Defendants, as amended, received transfers totaling more than US$50,000.

An amended list of the Avoidance Action Defendants is available for free at
http://researcharchives.com/t/s?16ae

The hearing to consider confirmation of the Debtors' Plan of
Liquidation began on Nov. 28, 2006.  As noted in the transcript of the
November 28 hearing, the Court has yet to rule on the "feasibility" of the
Plan.

Headquartered in New York, New York, Musicland Holding Corp., is a specialty
retailer of music, movies and entertainment-related products.  The Debtor
and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis, represents the
Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from their
creditors, they estimated more than US$100 million in assets and debts.
(Musicland Bankruptcy News, Issue
No. 24; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000)


ORIENTAL FINANCIAL: Repositions Sale Investment Portfolio
---------------------------------------------------------
Oriental Financial Group Inc. has completed a review of its available for
sale investment portfolio in light of asset/liability management
considerations and changing market conditions, and has strategically
repositioned this portfolio to benefit the Group going forward.

This repositioning involved the following recently executed transactions:

   (i) open market sale of approximately US$865 million of
       securities with a weighted average book yield of 4.60%;

  (ii) open market purchase of approximately US$860 million of
       triple-A securities with a weighted average yield of
       approximately 5.55%;

(iii) restructuring of short-term borrowings of US$900 million
       having a weighted average rate paid of 5.25% into 5-year
       structured repurchase agreements with a weighted average
       rate paid of approximately 4.25%; and

  (iv) termination of interest rate swap agreements with an
       aggregate notional amount of US$475 million in which
       Oriental was paying an average fixed rate of 4.52% and
       receiving short term LIBOR rates.

Oriental anticipates a pre-tax loss from these transactions of approximately
US$16 million, or about US$0.67 per share on a diluted basis, for the fourth
quarter ending Dec. 31, 2006.  The resulting realized losses on the sale of
the securities were already reflected as unrealized losses within
accumulated other comprehensive loss in the stockholders' equity section of
Oriental's consolidated statement of financial condition at the time of the
sale.  Accordingly, total stockholders' equity will not change as a result
of these transactions.

Oriental also expects the repositioning of the available for sale portfolio
to result in an increase in net interest income in 2007 of approximately
US$16 million (US$0.67 per share on a diluted basis), and that net interest
margin in 2007 will improve as a result of an improved yield on the
investment portfolio and the reduction in the cost of borrowings.  In
addition, the modified duration of the transacted investment portfolio was
reduced from approximately 3.8 years to approximately 2.2 years, and for the
US$900 million in borrowings that were structured, the modified duration was
increased from approximately 0.15 years to approximately 1.85 years.  The
aforementioned transactions have the effect of reducing the duration profile
of the Group's statement of financial condition.

The Group's regulatory capital ratios will continue to be significantly
above adequacy guidelines for a well-capitalized institution.  At Sept. 30,
2006, the Leverage Capital Ratio was 8.96% (2.2 times the minimum of 4.00%),
Tier 1 Risk-Based Capital Ratio was 28.18% (7.0 times the minimum of 4.00%),
and Total Risk-Based Capital Ratio was 28.68% (3.6 times the minimum of
8.00%).

"This repositioning is in line with the Group's strategic plan," said Jose
Rafael Fernandez, the Group's President and CEO.  "With an anticipated
payback in a short period of approximately one year, a reduction in interest
rate sensitivity of our liabilities, and no negative effect on stockholders'
equity, we view the repositioning of our available for sale portfolio as
being very beneficial for Oriental.  These transactions help position our
balance sheet favorably, given the current interest rate scenario, and
provide us with increased profitability to grow our loan portfolio as we
transform our business."

Oriental Financial Group Inc. (NYSE: OFG) --
http://www.OrientalOnline.com/-- is a diversified financial
holding company operating under U.S. and Puerto Rico banking
laws and regulations.  Oriental provides comprehensive financial
services to its clients throughout Puerto Rico and offers third
party pension plan administration through its wholly owned
subsidiary, Caribbean Pension Consultants, Inc.  The Group's
core businesses include a full range of mortgage, commercial and
consumer banking services offered through 24 financial centers
in Puerto Rico, as well as financial planning, trust, insurance,
investment brokerage and investment banking services.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 13, 2006,
Standard & Poor's Ratings Services assigned its 'BB+' long-term
counterparty credit rating to Oriental Financial Group.  S&P
also assigned its 'BBB-' counterparty rating to Oriental's
principal operating subsidiary, Oriental Bank & Trust.  S&P said
the outlook for both entities is negative.


PILGRIM'S PRIDE: Declares New Price for Gold Kist's Senior Notes
----------------------------------------------------------------
Pilgrim's Pride Corp. disclosed new pricing in its previously announced cash
tender offer for, and consent solicitation with respect to, any and all of
Gold Kist Inc.'s outstanding 10-1/4% Senior Notes due March 15, 2014 (CUSIP
No. 380616AB8, ISIN US380616AB82).

The tender offer and consent solicitation are being made in connection with
Pilgrim's Pride's tender offer for all of Gold Kist's outstanding common
shares.  Pilgrim's Pride's obligation to accept for purchase and to pay for
Notes properly tendered and not withdrawn is subject to the satisfaction of
certain conditions that are described in the Offer to Purchase and Consent
Solicitation Statement Dated Sept. 29, 2006, including the satisfaction or
waiver of all conditions to the tender offer for Gold Kist's common shares.

On Nov. 30, 2006, Pilgrim's Pride announced that it was extending the tender
offer expiration date to 5:00 p.m., New York City time, on Dec. 27, 2006,
unless further extended.

Pilgrim's Pride had received the requisite consents to the proposed
amendments to the Notes and the indenture under which the Notes were issued
from holders of approximately 99.9% of the aggregate principal amount of the
outstanding Notes.  Pursuant to the terms of the offer, as a result of the
extension of the Expiration Date, the consideration payable to holders of
Gold Kist Notes has been calculated using a new Price Determination Date of
Dec. 11, 2006, which is the eleventh business day preceding the scheduled
Expiration Date.

Based on an assumed payment date of Jan. 2, 2007, holders who validly
tendered Notes with consents at or prior to 5:00 p.m., New York City time,
on Oct. 13, 2006, are eligible to receive US$1,152.41 for each US$1,000
principal amount of the Notes.  The Total Consideration includes a consent
payment equal to US$30 in cash per US$1,000 principal amount of the Notes.
The Consent Payment is payable only to holders of Notes validly tendered
with consents and not validly withdrawn on or prior to the Consent Date.

Holders who validly tendered Notes with consents after the Consent Date but
at or prior to 5:00 p.m., New York City time, on the Expiration Date are
eligible to receive US$1,122.41 for each US$1,000 principal amount of the
Notes.  In addition to the Total Consideration or the Tender Offer
Consideration payable in respect of Notes purchased in the offer, Pilgrim's
Pride will pay accrued and unpaid interest from the last interest payment
date to, but not including, the Payment Date.

The "Payment Date" is expected to be promptly after the Expiration Date and
immediately prior to the closing of the transactions contemplated by the
tender offer for Gold Kist's common shares.

The Total Consideration and the Tender Offer Consideration were determined
as of 10:00 a.m., New York City time on
Dec. 11, 2006, based on the Reference Yield of 4.571% for the Notes, and a
Fixed Spread of 50 basis points for the Notes, using an assumed Jan. 2,
2007, Payment Date for calculation purposes.  The offer is currently
scheduled to expire at 5:00 p.m. New York City Time on Dec. 27, 2006.  If
the Expiration Date is extended for more than 10 business days following the
Expiration Date, a new price determination date will be established (to be
10:00 a.m. New York City time on the eleventh business day immediately
preceding the new Expiration Date) and the Tender Offer Consideration and
the Total Consideration will be redetermined as of such new price
determination date.

Information regarding the pricing, tender and delivery procedures, the
conditions to the tender offer and consent solicitation relating to the
Notes and the proposed amendments to the Notes and Gold Kist indenture are
contained in the Offer to Purchase.

Pilgrim's Pride has engaged Lehman Brothers Inc. to serve as the Dealer
Manager for the tender offer and the Solicitation Agent for the consent
solicitation.  Mellon Investor Services LLC has been retained to serve as
the Depository and Innisfree M&A Incorporated has been retained to serve as
the Information Agent for the tender offer and consent solicitation.

Requests for documents may be directed to:

          Innisfree M&A Incorporated
          501 Madison Avenue, 20th Floor
          New York, NY 10022
          Tel: (877) 687-1874 (toll free in the U.S. and Canada)
               (212) 750-5833 (call collect)

Questions regarding the tender offer and consent solicitation may be
directed to:

          Lehman Brothers Inc.
          Tel: (800) 438-3242 (toll free in the U.S.)
               (212) 528-7581 (call collect)

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

                        *    *    *

Moody's Investors Service's implementation of its new Probability-of-Default
and Loss-Given-Default rating methodology for the U.S. Consumer Products
sector, the rating agency held its Ba2 Corporate Family Rating for Pilgrim's
Pride Corp.  In addition, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on the company's note
issues, including an LGD6 rating on its US$100 million 9.25% Sr. Sub. Global
Notes Due Nov. 15, 2013, suggesting noteholders will experience a 95% loss
in the event of a default.




===============
S U R I N A M E
===============


* SURINAME: S&P Raises Foreign Currency Sovereign Rating to B
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign currency
sovereign credit rating on the Republic of Suriname to 'B' from 'B-'.
Standard & Poor's also raised its long-term local currency on the republic
to 'B+' from 'B', and affirmed its 'B' short-term sovereign credit ratings.
The outlook on the foreign currency rating remains positive, while the
outlook on the local currency rating was revised to positive from stable.

According to Standard & Poor's credit analyst Helena Hessel, the upgrades
reflect the strengthening of Suriname's debt-management practices, which
resulted in the restructuring and repayment of long-standing arrears on
bilateral debts.

"The government also eliminated small technical arrears to multilateral
creditors," said Ms. Hessel.  "It also plans to address some other remaining
arrears on bilateral debt in 2007 and in 2008," she added.

The rating upgrades are also supported by increased policy flexibility
resulting from the strong performance of the economy and ongoing commitment
to prudent fiscal and monetary policies.   Standard & Poor's expects
Suriname's general government fiscal balance to be in small surplus and
inflation to fall to single digits notwithstanding a recent 10% public
sector wage hike.

"The ratings continue to be constrained by unduly large and often
inefficient and costly state involvement in the real economy, by relatively
weak, liquidity position and remaining bilateral arrears," noted Ms. Hessel.
"The positive outlook reflects Standard & Poor's expectation that the
government's recent focus on restoring its payment credibility will last.
The clearance of bilateral arrears, combined with maintained macroeconomic
stability, would put upward pressure on the government's ratings," she
concluded.




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


BANCO ITAU: Mulling Capital Raise for Uruguayan & Chilean Units
---------------------------------------------------------------
Banco Itau Holding Financeira said in a statement that it has called a
shareholders' meeting for Dec. 26 to discuss a capital increase for
BankBoston Chile and BankBoston Uruguay.

Business News Americas relates that Banco Itau proposed to increase capital
for the Chilean unit by BRL1.16 billion through the issue of 17.4 million
shares.  The company also wanted to raise capital for BankBoston Uruguay by
BRL209 million through the issue of 3.13 million common shares.

As reported in the Troubled Company Reporter-Latin America on Dec. 12, 2006,
Banco Itau would apply a BRL440 million acquisition charge to its fourth
quarter 2006 financial statements.  The charge stems from Banco Itau's
BankBoston purchase earlier this year, as well as the acquisition of OCA,
Uruguay's largest credit card issuer.

Banco Itau Holding Financeira SA -- http://www.itau.com.br/--  
is a private bank in Brazil.  The company has four principal
operations: banking -- including retail banking through its
wholly owned subsidiary, Banco Itau SA (Itau), corporate banking
through its wholly owned subsidiary, Banco Itau BBA SA (Itau
BBA) and consumer credit to non-account hold customers through
Itaucred -- credit cards, asset management and insurance,
private retirement plans and capitalization plans, a type of
savings plan.  Itau Holding provides a variety of credit and
non-credit products and services directed towards individuals,
small and middle market companies and large corporations.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
March 9, 2006, Standard & Poor's Ratings Services assigned a
'BB' currency credit rating on Banco Itau SA.

                        *    *    *

Fitch affirmed on Aug. 28, 2006, the ratings of the Itau Group
of banks and the National Long- and Short-term ratings of
BankBoston Banco Multiplo SA and its subsidiary, BankBoston
Leasing SA -- Arrendamento Mercantil (BankBoston Leasing).  This
followed the conclusion of the agreement between Banco Itau
Holding Financeira with Bank of America Corp. to acquire BAC's
Brazilian operations (spearheaded by BKB) and its Latin American
subsidiaries.  Central Bank of Brazil approved the BKB
transaction on Aug. 22, 2006, and the acquisition of the local
subsidiaries of BAC is contingent on approval by the Chilean and
Uruguayan regulatory authorities.

The affected ratings of Banco Itau were:

   Banco Itau Holding Financeira

      -- Foreign currency IDR affirmed at 'BB+', Stable Outlook

      -- Short-term foreign currency rating affirmed at 'B'

      -- Local currency IDR affirmed at 'BBB-' (BBB minus),
         Stable Outlook

      -- Short-term local currency rating affirmed at 'F3'

      -- Individual rating affirmed at 'B/C'

      -- National Long-term rating affirmed at 'AA+(bra)',
         Stable Outlook

      -- National Short-term rating affirmed at 'F1+(bra)'

      -- Support rating affirmed at '4'


WORLDSPAN LP: S&P Assigns B Rating on US$1B Credit Facility
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned ratings to Worldspan L.P.'s
proposed US$1 billion secured credit facility.  The revolver and first-lien
term loan are rated 'B', the same as the corporate credit rating, and are
assigned a recovery rating of '2', indicating expectations of substantial
recovery of principal in the event of a payment default.

The US$750 million facility consists of a US$50 million revolver due 2012
and a US$700 million term loan due 2013.  The US$250 million second-lien
term loan that matures in 2014 is rated 'CCC+', and assigned a recovery
rating of '5', indicating expectations of negligible recovery of principal
in the event of a payment default.

The bank loan ratings have been placed on CreditWatch with developing
implications; the recovery ratings are not on CreditWatch.

Proceeds from the proposed credit facility and a US$250 million
payment-in-kind (PIK) loan from Travelport Inc. will be used
to refinance the company's existing debt and pay its owners a dividend.

Worldspan has also entered into a merger agreement with Travelport.  Upon
closing of the proposed credit facility, the 'B' ratings on Worldspan's
existing US$490 million secured credit facility and US$300 million secured
floating rate notes will be withdrawn.  Existing ratings on Worldspan remain
on CreditWatch with developing implications, where they were placed on Dec.
7, 2006, based on announcements of its proposed merger with Travelport and
its recapitalization.

"A combination with Travelport is expected to result in new revenue
opportunities as well as US$50 million of operating synergies for the
combined entity, which could result in Worldspan's corporate credit rating
being raised to 'B+', the same as Travelport's, depending on how the
combined entity is capitalized," said Standard & Poor's credit analyst Betsy
Snyder.  "If a larger-than-expected portion of Worldspan's business were to
migrate to its competitors, resulting in a weaker operating performance,
ratings could be lowered, although we consider this outcome less likely."

Affirmation of ratings at the current level is another possible outcome.
Completion of the merger will depend on approval by government regulatory
authorities.  Standard & Poor's will assess synergies from the proposed
merger as well as the effect of the recapitalization on Worldspan's
financial profile in resolving the CreditWatch.

The ratings on Worldspan reflect its weak financial profile and limited
financial flexibility after several recapitalizations, in which debt was
used to redeem preferred stock held by the company's owners and to pay them
a dividend of approximately US$600 million.  Worldspan does benefit from its
leading position in processing on-line travel bookings, the fastest-growing
segment of the travel distribution industry.  This segment accounts for
approximately 45% of Worldspan's revenues.

Headquartered in Atlanta, Georgia, Worldspan, L.P. --
http://www.worldspan.com/-- is a leader in travel technology
services for travel suppliers, travel agencies, e-commerce sites
and corporations worldwide.  Utilizing some of the fastest, most
flexible and efficient networks and computing technologies,
Worldspan provides comprehensive electronic data services
linking approximately 800 travel suppliers around the world to a
global customer base.  Worldspan offers industry-leading Fares and
Pricingtechnology such as Worldspan e-Pricing(R), hosting
solutions, and customized travel products.  Worldspan enables
travel suppliers, distributors and corporations to reduce costs
and increase productivity with technology like Worldspan
Go!(R) and Worldspan Trip Manager(R) XE.  The company's Latin
Americanoperations are in Argentina, The Bahamas, Brazil, Jamaica, Mexico,
Peru, Puerto Rico, Uruguay and Venezuela.




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


DAIMLERCHRYSLER: Freightliner Will Lay Off 800 Employees
--------------------------------------------------------
Freightliner LLC, a subsidiary of DaimlerChrysler AG, announced plans for
production rate adjustments at its truck manufacturing plant in St. Thomas,
Ontario.  Eight hundred employees will be idled as a result.  These changes
are the first in a series of such measures that will affect all the
company's vehicle and component assembly plants during the first quarter of
2007.  As many as 4,000 production and related workers may be affected.

All manufacturers of heavy and medium trucks, as well as the suppliers of
components used in their assembly, are facing a dramatic reduction in
volumes presently.  Truck buyers in all markets are showing hesitation to
purchase trucks equipped with the new engine technology necessary to meet
the diesel exhaust emissions standards that go into effect in Canada and the
United States on Jan. 1, 2007.

Depending on specification and weight class, Freightliner LLC vehicles are
subjected to price increases ranging from US$4,600 to US$12,500, before
application of taxes, for the new engines.  It is clear that all residents
of North America benefit from the cleaner atmosphere that will ultimately
result, but it is equally obvious that the costs associated with this worthy
initiative are borne almost entirely by the truck manufacturing industry's
employees, suppliers, shareholders, and dealers.

"Workforce reductions are always the last thing any of us want to do,"
Freightliner LLC president and chief executive officer Chris Patterson said.
"Unfortunately it has become necessary at this point as the entire industry
is dealing with an extraordinary market situation.

"We will continue to monitor the market closely and make adjustments
accordingly but we anticipate further reductions of up to 3,200 workers in
the first few months of 2007.  We are anticipating that demand will begin to
recover in the second half of the year, as our customers gain confidence in
the new technology, and their existing vehicles suffer the effects of aging.
We expect to be able to make some positive workforce adjustments at that
time."

Affected employees in St. Thomas were already notified.

The St. Thomas plant, operated by Freightliner Canada Ltd., produces the
company's Sterling-brand heavy- and medium-duty trucks.

                   About Freightliner LLC

Headquartered in Portland, Ore., Freightliner LLC --
http://www.freightliner.com/-- is a medium- and heavy-duty truck
manufacturer in North America.  Freightliner produces and markets Class 3-8
vehicles and is a company of DaimlerChrysler.

                   About DaimlerChrysler

DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- develops,
manufactures, distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.  It
primarily operates in four segments: Mercedes Car Group, Chrysler Group,
Commercial Vehicles, and Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge
brand names.  It also sells parts and accessories under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in the United
States with excess inventory, non-competitive legacy costs for employees and
retirees, continuing high fuel prices and a stronger shift in demand toward
smaller vehicles.  At the same time, key competitors have further increased
margin and volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest rates caused
higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and cut costs in
the short term are being examined at all stages of the value chain, in
addition to structural changes being reviewed as well.

In Latin America, DaimlerChrysler has operations in Argentina, Brazil and
Venezuela.


DAIMLERCHRYSLER: YTD Sales in Latin America Climbs 23%
------------------------------------------------------
DaimlerChrysler AG's Chrysler Group operations outside North
America, November sales gains marked the milestone of 18
consecutive months of year-over-year sales gains; and with one
full month left, year-to-date sales have already surpassed the
total for all of 2005.

This month was the best November sales for Chrysler Group's
International operations in 10 years, and the sale of 18,900 units marked an
increase of 17% over the same month last year.  Dodge Caliber sales
accounted for much of the growth in November with 2,867 units sold (15,042
units year-to-date), while top-selling vehicles, such as Jeep(R) Grand
Cherokee and Chrysler 300C, continued to perform well.

"We are confident that we made a sound decision by increasing the number of
vehicles equipped to meet the needs of customers outside North America,"
executive director of international sales and marketing Thomas Hausch said.

"This works hand-in-hand with our long-standing initiative to
continuously improve customer experience, and our dealers'
performance this year has been a major factor in our success."

Chrysler Group's year-to-date sales outside North America climbed 14%
compared with the same time period last year with 186,080 units sold.  All
three of Chrysler Group's brands contributed to this gain, with Chrysler
brand sales up 6% (82,142 units), Jeep brand up 1% (77,220 units) and Dodge
brand up 176% (26,718 units).

"All three brands working together to reach customers with very
diverse needs [are] responsible for boosting sales.  However,
despite the significant gains we've made in some of our key
markets, the competition is intense, and we must continue to work hard to
maintain sales growth," Mr. Hausch said.

Western and Central European sales, which account for the largest part of
Chrysler Group's sales outside North America, have reached 100,583 units, a
20% increase over the region's 2005 sales through November.  The top-three
markets, Italy, U.K, and Germany respectively, are all in Western Europe and
continued to experience double-digit sales improvement.

Growth in Latin America has been another driving force in the sales
increases, with year-to-date sales climbing 23% (33,202 units) so far in
2006.  Venezuela, the highest-volume market for Chrysler Group in Latin
America, ranks as the Company's number four market outside North America,
and has seen 33% growth so far in 2006.

For the year, the Jeep Grand Cherokee led product sales with
35,558 units sold year-to-date.  It was closely followed by the
Chrysler Voyager (32,616 units) and the Jeep Cherokee (24,733
units).  The significant sales growth for the Chrysler 300C, 130
percent year-to-date, has landed the vehicle in the number four
position with 23,283 units sold outside North America.

"We anticipate continued positive results as more new products
reach dealerships in the local markets.  By the end of this year, we are
confident that a double-digit increase in performance is a lofty, yet
attainable goal," Mr. Hausch said.

"It means, however, that we cannot let up, and must remain
dedicated to the business and needs of customers outside North
America."

Chrysler Group sells and services vehicles in more than 125
countries around the world, and Chrysler Group sales outside North America
currently account for approximately eight percent of the Company's total
global sales.  Vehicles available range across all three Chrysler Group
brands, with limited availability on some trucks and SUV models.  The
Company's operations outside North America have been experiencing
year-over-year sales increases since 2004, and will continue to increase the
number of product offerings, powertrain options and RHD availability through
2007.

                    About DaimlerChrysler

DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- engages
in the development, manufacture, distribution, and sale of various
automotive products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.  It primarily operates in four segments: Mercedes Car
Group, Chrysler Group, Commercial Vehicles, and Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge
brand names.  It also sells parts and accessories under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in the United
States with excess inventory, non-competitive legacy costs for employees and
retirees, continuing high fuel prices and a stronger shift in demand toward
smaller vehicles.  At the same time, key competitors have further increased
margin and volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest rates caused
higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and cut costs in
the short term are being examined at all stages of the value chain, in
addition to structural changes being reviewed as well.

In Latin America, DaimlerChrysler has operations in Argentina, Brazil and
Venezuela.


PEABODY: COALSALES Inks Coal Supply Pact with Tennessee Valley
--------------------------------------------------------------
Peabody Energy disclosed that its COALSALES, LLC, subsidiary has entered
into a 10-year coal supply agreement with Tennessee Valley Authority to
supply 6 million tons per year of Illinois Basin coal.  The coal supplied
under this agreement is expected to be sourced from a combination of
existing and future Illinois Basin mines.  Coal sales under the first five
years of the agreement are expected to be in excess of US$1 billion.  The
agreement represents the continuation of a mutually beneficial relationship
between COALSALES, LLC and Tennessee Valley.

"We are pleased to strengthen our valued customer relationships through
long-term coal supply agreements with key customers like Tennessee Valley,"
said Peabody Executive Vice President and Chief Marketing Officer Richard M.
Whiting.  "Peabody has a long tradition as a reliable supplier and offers
the strength of vast resources and flexibility of sourcing through multiple
mines, thanks to our unmatched 10 billion ton reserve portfolio."

Peabody currently has a customer backlog of more than one billion tons
through long-term coal supply contracts.

Tennessee Valley is the nation's largest public power provider.
It provides power to large industries and 158 power distributors that serve
approximately 8.7 million consumers in seven southeastern states.  Tennessee
Valley also manages the Tennessee River and its tributaries to provide
multiple benefits, including flood damage reduction, navigation, water
quality and recreation.

Peabody Energy is the world's largest private-sector coal company, with 2005
sales of 240 million tons of coal and $4.6 billion in revenues. Its coal
products fuel approximately 10 percent of all U.S. electricity generation
and 3 percent of worldwide electricity.

Headquartered in St. Louis, Missouri, Peabody Energy Corp.,
(NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's
largest private-sector coal company, with 2005 sales of 240
million tons of coal and US$4.6 billion in revenues.  Its coal
products fuel 10% of all US and 3% of worldwide electricity.
The company has coal operations in Venezuela.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 15, 2006,
Standard & Poor's Rating Services assigned its 'BB' rating to
Peabody Energy Corp.'s proposed US$2.75 billion of senior
unsecured credit facilities, consisting of a US$1.8 billion
revolving credit facility and US$950 million Term Loan A.  S&P
said the rating outlook is stable.


* VENEZUELA: Willing to Refine Petroleum from Ecuador
-----------------------------------------------------
"We are willing to start refining Ecuadorian petroleum right now," said
President of the Bolivarian Republic of Venezuela, Hugo Chavez, when
answering on bilateral matters that he could evaluate with his Ecuadorian
counterpart, Rafael Correa.

Pres. Chavez explained that Venezuelan refineries are available to the
southern nation for processing of hydrocarbons, since it is an exporting
country that lacks the necessary industry to process derivatives such as
gasoline, which generates expenditure to the nation.

In the same fashion, Pres. Chavez highlighted the position of the new
Ecuadorian President of joining the Organization of Oil Producing Countries
or OPEC.  Similarly, he clarified that the Great Gas Pipeline of the South
project is an initiative for all countries of the region. However, only
Venezuela, Brazil, Argentina, Uruguay, Paraguay and Bolivia have been
convened for this first stage.

The Venezuelan President also explained that the energy alliance in the
hydrocarbons and gas area, as well as the support for the industrialization
process in Venezuela, will be among the topics he will evaluate with its
Brazilian counterpart, Luiz Inacio Lula da Silva.

Pres. Chavez explained that the Amazonian government has expressed its
willingness to collaborate with the industrialization process being
implemented in Venezuela based on endogenous development.  In exchange for
this cooperation, Venezuela ratifies its willingness to provide energy
support for the enlargement of the Carioca nation, for strengthening the
economic and environmental capabilities of the country.

The President also highlighted that the South American Union is oriented in
that direction, with a geopolitical and geostrategic definition.

When consulted on the measures taken by the United States government of
freezing bank accounts of residents of the tri-border region, Argentina,
Paraguay and Brazil, who they assure have contact with the Hezbollah pro
Palestine movement, the President said that even though he does not know the
measures taken, he rejects unilateral and interventionist actions from any
government.

President Chavez also talked with media representatives covering this
activity on the interest Caracas has of using its energy potential to
support the development of the south.  He made this statement after
reiterating that the energy topic will be one of the topics he will review
with his Brazilian counterpart and his ministerial delegations in the work
meeting they will hold in the Planalto Palace, seat of the Brazilian
President.

Mr. Chavez highlighted that the delegations working in the Great Pipeline of
the South project have made progress with regards to budget and
environmental matters, among others.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 20, 2006, Fitch Ratings
affirmed Venezuela's long-term foreign and local currency Issuer Default
Ratings at 'BB-'.  At the same time, the agency also affirmed the short-term
foreign currency IDR at 'B' and the Country Ceiling at 'BB-'.  The Outlook
on the ratings remains Stable.


* VENEZUELA: Loans US$80MM to Prevent Foreign Buyout of Sancor
--------------------------------------------------------------
The Venezuelan government granted Monday a US$80 million loan to Argentinean
Sancor Cooperative, in order to give the company an alternative and prevent
a foreign takeover of the firm, El Universal reports.

Sancor groups about 2,100 milk producers in about 70 primary cooperatives in
the provinces of Santa Fe and Cordoba.  Reuters says the cooperative will
repay the debt by sending annually to Venezuela 20,000 tons of powdered
milk.

El Universal adds that in addition to the loan, which will be used to
refinance the corporate debt, Venezuela and the firm will negotiate new,
future grants as working capital.  The deal also involves transfer of
technology.

In September, the cooperative failed to repay US$10 million interest and
principal payments.  The company has signed a letter of understanding with
Adecoagro, a firm owned by Hungarian-American businessman George Soros,
which gives it 90 days for exclusive negotiations with SanCor.

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.

                        *    *    *

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


* IDB Invests US$3MM to Provide Microinsurance Ventures in LatAm
----------------------------------------------------------------
The Inter-American Development Bank disclosed that its Multilateral
Investment Fund or MIF will invest US$3 million in ParaLife, a new
micro-insurance venture established to provide life insurance to people with
disabilities, low-income families and microentrepreneurs in Latin America.

The micro-insurance project reflects the principles of the IDB's
Opportunities for the Majority initiative, which seeks to expand low-income
people's access to wealth-building tools and services such as:

   -- microcredit,
   -- housing,
   -- job-training and
   -- entrepreneurship opportunities.

According to IDB estimates, there are more than 50 million people with
disabilities in this region.  They tend to have lower incomes, less formal
education and higher levels of unemployment than the rest of the population.
As a group they also have less access to formal financial services.

The new project will bring together seasoned insurance professionals,
multilateral agencies, emerging market oriented investment funds and private
investors interested in the development of efficient microfinance services
for the benefit of disadvantaged people.

ParaLife, which plans to begin its operations in Mexico and later to expand
to other countries in the region, will provide term life insurance products
designed for segments of the population that are particularly vulnerable to
risks such as natural disasters, severe illnesses and accidents, which can
cause huge financial and economic setbacks for these households.

In addition to offering affordable life insurance to the disadvantaged,
ParaLife will provide micro-entrepreneurship opportunities to people with
disabilities with the necessary training made available through a system of
ParaLife foundations.

ParaLife was founded by Rolf Hüppi, a former CEO and chairman of Zurich
Financial Services.  The ParaLife Group will include a reinsurance vehicle
and partnerships with local insurance distribution organizations and leading
local insurance companies in each of its markets.  It is also supported by a
leading global reinsurance company.

The MIF, an autonomous fund administered by the IDB, promotes private sector
development and investment in Latin America and the Caribbean, with an
emphasis on microenterprises and small businesses.

Since its establishment in 1992, the MIF has invested in equity or supported
with loans and grants many of this region's leading microfinance
institutions, as well as innovative microfinance investment funds,
microleasing and factoring ventures.


                        ***********


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

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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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