TCRLA_Public/061219.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

          Tuesday, December 19, 2006, Vol. 7, Issue 251

                          Headlines

A R G E N T I N A

BELL MICROPRODUCTS: Commences Cash Tender Offer for 3-3/4% Notes
GAS DEL NORTE: Gov. Places ARS588 Mln in Bonds to Fund Expansion
GAS DEL SUR: Gov't Places ARS588 Mil. in Bonds to Fund Expansion
IMAX CORP: Focusing on Worldwide IMAX Network Growth
LA ESTAMPERIA: Verification of Claims Is Until Feb. 22, 2007

PHARMANET: Appoints M. Di Ianni as President, Early Stage Dev't
TELEFONICA DE ARGENTINA: Stock Reduction Is Effective on Dec. 22
SOCCI MARTA: Reorganization Proceeding Concluded
SUCESION DE ENRIQUE: Asks for Court Approval to Restructure Debt
TELECOM ARGENTINA: Investing ARS2MM for New Network in Nordelta

ZONDA COLOR: Reorganization Proceeding Concluded

* ARGENTINA: Places ARS588MM Bonds to Fund Gas Firms' Expansions

B E R M U D A

MONTPELIER RE: Declares US$0.075 Per Share Quarterly Dividend
MONTPELIER RE: AM Best Affirms BB+ Rating on Subordinated Debt
REFCO INC: Seven Claimants Want Temporary Allowance on Claims
REFCO INC: Parties Ink Pact Resolving Alqahtani's Claim

B R A Z I L

ALCATEL-LUCENT: Begins Consent Solicitation for Conv. Debentures
BANCO NACIONAL: Oil & Gas Firms Seek More Loans
BRASKEM: Names Carlos Fadigas de Souza Filho as New CFO
COMPANHIA DE SANEAMENTO: Paying Interest on Own Capital
CIA SIDERURGICA: Wheeling-Pitt Confirms Terminated Merger Pact

DURA AUTOMOTIVE: Eight Vendors Want to Reclaim Prepetition Goods
PETROLEO BRASILEIRO: Distributing Interest on Own Capital
PETROLEO BRASILEIRO: Authorizes Share Repurchase Program
PETROLEO BRASILEIRO: Approves Petros Plan Subscription Reopening
SANMINA-SCI: Delays Form 10-K Filing for FY Ended Sept. 30, 2006

TELE NORTE: Shareholders Reject Restructuring Plan

C A Y M A N   I S L A N D S

ALBARAKA DOW: Liquidator to Present Wind Up Accounts on Dec. 20
AL-SAFWA: Invites Shareholders for Final Meeting on Dec. 20
BBVA AMERICA: Final Shareholders Meeting Is Set for Dec. 21
BBVA INVESTMENT: Final General Meeting Is Set for Dec. 21
CHESS INC: Calls Shareholders for Final Meeting on Dec. 21

CTMP II: Shareholders to Convene for Final Meeting on Dec. 20
ESPIRITO SANTO: Shareholders to Gather for Dec. 20 Final Meeting
GLADIATOR OFFSHORE: Final Sahreholders Meeting Is on Dec. 21
GLOBAL TRADING: Calls Shareholders for Final Meeting on Dec. 22
GLOBAL TRADING II: Final General Meeting Is Set for Dec. 22

HCI HEALTHCARE: Proofs of Claim Filing Is Until Dec. 21
HCI HEALTHCARE: Invites Shareholders for Dec. 21 Final Meeting
HIGHBRIDGE SPECIAL: Proofs of Claim Filing Is Until Dec. 21
LONDON CREDIT: Last Shareholders Meeting Is Set for Dec. 21
MEDICI OFFSHORE: Calls Shareholders for Final Meeting on Dec. 21

MEZZANINE CAPITAL: Proofs of Claim Filing Deadline Is Dec. 22
MOUNTCASHEL FUND: Last Shareholders Meeting Is on Dec. 21
MVI MEDICAL: Deadline for Proofs of Claim Filing Is on Dec. 21
MVI MEDICAL: Liquidator Presenting Wind Up Accounts on Dec. 21
PENDRAGON EXCALIBUR: Sets Final Shareholders Meeting on Dec. 21

PENDRAGON MERLIN: Final General Meeting Is on Dec. 21
RANGER MULTI-STRATEGY: Last Shareholders Meeting Is on Dec. 21
RANGER (NON ENHANCED): Final General Meeting Is Set for Dec. 21
SAPIC-98 (17): Proofs of Claim Filing Deadline Is on Dec. 21
SAPIC-98 (41): Filing of Proofs of Claim Is Until Dec. 21

SAPIC-98 (B-II): Creditors Must File Proofs of Claim by Dec. 21
SHIPPING INVESTMENT: Final Shareholders Meeting Is on Dec. 21
TRITON FUND: Shareholders to Gather for Final Meeting on Dec. 21
VERITY GLOBAL: Final Shareholders Meeting Is Set for Dec. 20

C H I L E

DELL INC: Receives NASDAQ Delisting Notice
FALCONBRIDGE: Xstrata's Chilean Union Snubs Wage Offer
VTR GLOBALCOM: Secures US$750MM Loans in First Leveraged Deal

C O L O M B I A

CENTRAL PARKING: Declares US$0.015 Per Share Cash Dividend

C U B A

SHERRITT INT'L: DBRS Holds Sr. Unsec. Debt Rating's at BB (high)

E C U A D O R

DEL MONTE: Declares US$0.04 Per Share Cash Dividend

E L   S A L V A D O R

CUSCATLAN DE EL SALVADOR: Fitch Puts BB IDR on Watch Positive

G U A T E M A L A

CENTRAL AMERICAN: Moody's Lifts Rating on 9% Senior Notes to B1
UNIVERSAL CORPORATION: Plans To Sell Non-Tobacco Businesses

* GUATEMALA: IMF Says Economic Performance Has Improved
* GUATEMALA: IDB Grants US$30 Mil. to Conserve Mayan Biosphere

H O N D U R A S

CONTINENTAL AIRLINES: Starts Nonstop Service to Honduras

M E X I C O

AVAYA INC: Earns US$48 Million in Fiscal Quarter Ended Sept. 30
BANCO DEL BAJIO: Fitch Assigns BB+ Issuer Default Rating
CONTINENTAL AIR: Schedules US$292-Mil. 4th Qtr. Debt Payments
DIRECTV INC: Discloses Terms of DVB-S2 Licensing Offer
GENERAL MOTORS: Expects US$1 Million of Truck Sales in 2007

KRISPY KREME: Delays Filing Report for Third Qtr. Ended Oct. 29
SATELITES MEXICANOS: Loses US$38.9-Mil. Lawsuit Against Boeing
UNITED RENTALS: Appoints Jenne Britell to Board of Directors
VISTEON CORP: Names Two Chief Officers to Board of Directors
WERNER LADDER: Court Okays Expansion of PwC's Duties as Auditor

WERNER LADDER: Wants to Implement Union Workers' Severance Plan

* MEXICO: JBIC Provides Guarantee for Syndicated Loan to PEMEX

N I C A R A G U A

* NICARAGUA: Legislators Okay US$37MM Central American Bank Loan

P A N A M A

BANCO LATINOAMERICANO: Posts US$11.2MM Third Quarter Net Income
SOLO CUP: Elects Four New Members to Board of Directors

P E R U

BANCO CONTINENTAL: IDB Signs US$30MM Subordinated Loan for Firm

P U E R T O   R I C O

ADELPHIA COM: Rigases Want US$600,000 as Additional Defense Cost
ADELPHIA COMMS: Wants Lucent to Produce Withheld Documents
CARIBE INFORMATION: Moody's Affirms B2 Corporate Family Rating
NEWCOMM WIRELESS: Has Until Dec. 22 to File Schedules

T R I N I D A D   &   T O B A G O

MIRANT CORP: Bankruptcy Court Approves New York Tax Settlement
ROYAL CARIBBEAN: Names Steve Shaiken VP of Onboard Revenue

U R U G U A Y

* URUGUAY: IDB Approves US$220 Million Conditional Credit Line
* URUGUAY: State Firm Hiking Power Rates 5.5% in January 2007

V E N E Z U E L A

PETROLEOS DE VENEZUELA: May Bring in US$6.9B to Treasury in 2007
PETROLEOS DE VENEZUELA: Inks Lubricants Supply Pact with Alba
PETROLEOS DE VENEZUELA: Oil Purchase Averages 703,000 Barrels
SHAW: China Picks Westinghouse Consortium to Build Nuclear Plant

* IDB Approves Realignment of Basic Organization
* Large Companies with Insolvent Balance Sheets


                         - - - - -


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


BELL MICROPRODUCTS: Commences Cash Tender Offer for 3-3/4% Notes
----------------------------------------------------------------
Bell Microproducts Inc. has commenced a tender offer to purchase
for cash, any and all of its US$109,850,000 outstanding 3-3/4 %
Convertible Subordinated Notes, Series B due 2024 at a purchase
price equal to US$1,000.00 per US$1,000.00 of the principal
amount of the Notes, plus accrued and unpaid interest to the
date on which the Notes are purchased.

The tender offer will expire at 9:00 a.m., New York City time,
on Jan. 18, 2007, unless extended or earlier terminated.
Payments of the tender consideration for Notes validly tendered
and not withdrawn on or prior to the expiration date and
accepted for purchase will be made as soon as practicable after
the expiration date.

Separately, Bell Micro commenced, on Dec. 7, 2006, a
solicitation of consents to an amendment to the indenture
covering the Notes and a waiver of defaults arising from the
failure to file all reports and other information and documents
which it is required to file with the U.S. Securities and
Exchange Commission and, within fifteen days after it files the
SEC Reports with the SEC, to file copies of the SEC Reports with
the trustee.

The proposed amendment would amend the indenture to eliminate
any provision that would trigger a default for the failure to
file or deliver any reports required to be filed with the SEC or
the trustee.  The proposed amendment and waiver requires
approval of holders of a majority of the outstanding principal
amount of Notes.  The consent fee is US$5.00 in cash per
US$1,000.00 in principal amount of Notes as to which consents
have been provided.

Bell Micro has amended the Consent Solicitation.  Pursuant to
the terms of the amended Consent Solicitation:

   (1) The Consent Date is extended to 5:00 p.m. New York City
       time on Dec. 14, 2006.

   (2) The definition of Eligible Tender Offer has been amended
       to require that Bell Micro have commenced the tender
       offer for the Notes, held the tender offer open for at
       least twenty business days and consummated the repurchase
       of the Notes at a price of US$1000.00 for each US$1000.00
       principal amount of Notes prior to Feb. 28, 2007.

   (3) If Bell Micro receives the Required Consents, the
       indenture governing the notes will be amended to provide
       that, if Bell Micro fails to commence, hold open and
       consummate an Eligible Tender Offer, Bell Micro will make
       a one-time special interest payment equal to 8.5% of the
       outstanding principal amount of Notes to Holders of the
       Notes on the next interest payment date following the
       failure of Bell Micro to commence and hold open an
       Eligible Tender Offer.

   (4) No Second Consent Fee will be paid.

The tender offer referred to above is intended to qualify as an
Eligible Tender Offer as defined in the consent solicitation
statement.

The consummation of the tender offer is conditioned upon, among
other things, receipt of the consent of the holders of a
majority in aggregate principal amount of the subordinated notes
to the proposed waiver of default under and amendment to the
indenture governing the notes, availability of financing and
other customary closing conditions.  If any of the conditions
are not satisfied, Bell Micro is not obligated to accept for
payment, purchase or pay for, or may delay the acceptance for
payment of, any tendered Notes, and may terminate the tender
offer.

Credit Suisse will act as the Dealer Manager for the tender
offer for the Notes.  Questions regarding the tender offer may
be directed to:

      Credit Suisse
      Tel: (800) 820-1653 (toll-free)
           (212) 325-7596

Global Bondholder Services Corporation will act as the
Information Agent for the tender offer for the subordinated
notes.  Requests for documents related to the tender offers may
be directed to:

      Global Bondholder Services Corporation
      Information Agent
      Tel: (866) 736-2200 (toll free)
           (212) 430-3774

                 About Bell Microproducts

Bell Microproducts Inc. (Nasdaq: BELM) --
http://www.bellmicro.com/-- is an international, value-added
distributor of high-tech products, solutions and services,
including storage systems, servers, software, computer
components and peripherals, as well as maintenance and
professional services.  Bell is a Fortune 1000 company that has
operations in Argentina, Brazil, Chile and Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 22, 2006,
Bell Microproducts, Inc., received a Nasdaq Staff Determination
notice stating that the company is not in compliance with the
filing requirements for continued listing as set forth in Nasdaq
Marketplace Rule 4310(c)(14).

The company has also received notices of default from Wells
Fargo Bank, N.A., with respect to its 3-3/4% Convertible
Subordinated Notes due 2024 and its 3-3/4% Convertible
Subordinated Notes, Series B due 2024 because of the delay in
filing its Form 10-Q for the period ended Sept. 30, 2006.  Wells
Fargo serves as the trustee for the holders of the Notes.


GAS DEL NORTE: Gov. Places ARS588 Mln in Bonds to Fund Expansion
----------------------------------------------------------------
The government of Argentina has started placing ARS588 million
in bonds to fund expansions of Transportadora de Gas del Norte
and Transportadora de Gas del Sur, Telam reports.

Business News Americas relates that the bonds are part of the
government's Fideicomiso de Gas I trust fund.  Banco Galicia is
the placing agent.

According to BNamericas, the trustees include:

          -- Banco de la Nacion Argentina,
          -- Pan American Energy,
          -- Wintershall Energia,
          -- YPF SA,
          -- Total Austral, and
          -- Ledesma SAAI, and
          -- Citrusvil.

The bonds will pay quarterly interest beginning April 2007.  It
will have an interest rate equal to the Badlar rate -- the
average interest rate that banks pay for deposits of over ARS1
million -- plus an additional margin defined in the Dutch
auction, 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%), Organización
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: Gov't Places ARS588 Mil. in Bonds to Fund Expansion
----------------------------------------------------------------
The Argentine government has started placing ARS588 million in
bonds to fund expansions of Transportadora de Gas del Sur and
Transportadora de Gas del Norte, Telam reports.

Business News Americas relates that the bonds are part of the
government's Fideicomiso de Gas I gas trust fund.  Banco Galicia
is the placing agent.

According to BNamericas, the trustees include:

          -- Banco de la Nacion Argentina,
          -- Pan American Energy,
          -- Wintershall Energia,
          -- YPF SA,
          -- Total Austral, and
          -- Ledesma SAAI, and
          -- Citrusvil.

The bonds will pay quarterly interest beginning April 2007.  It
will have an interest rate equal to the Badlar rate -- the
average interest rate that banks pay for deposits of over ARS1
million -- plus an additional margin defined in the Dutch
auction, BNamericas states.

             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.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Dec. 14, 2006, Fitch does not expect the proposed early
redemption of US$130 million of debt to affect its existing
ratings for Transportadora de Gas del Sur SA aka TGS.  Fitch
currently rates TGS as follows:

   -- Local Currency Issuer Default Rating: 'B';
   -- Foreign Currency Issuer Default Rating: 'B';
   -- Senior Unsecured Debt 'B/RR4';
   -- National Scale Rating 'A-(arg)'.

Fitch said all ratings have stable outlook.


IMAX CORP: Focusing on Worldwide IMAX Network Growth
----------------------------------------------------
IMAX Corp. reported that after an extensive period of review of
potential strategic alternatives to enhance shareholder value,
it has determined that a sale or merger of the company at this
time will not achieve this objective.  Accordingly, the Board of
Directors and management believe that focusing on the growth of
the worldwide IMAX network and strategic business initiatives
are the best means at present to grow IMAX's value to
shareholders.

"While IMAX received interest from multiple parties in our
process of exploring a potential sale or merger of the company,
none ultimately indicated a willingness to acquire the company
at an acceptable valuation," said IMAX Co-Chairmen and Co-Chief
Executive Officers Richard L. Gelfond and Bradley J. Wechsler.
"As we reported at the end of this year's third quarter, we are
confident about our ability to profitably grow the global IMAX
network, and to succeed with our new business initiatives
designed to expand the IMAX footprint, such as our pursuit of
joint venture opportunities around the world and our development
of an IMAX digital projector, targeted for introduction in
2008."

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

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 1, 2006,
Moody's Investors Service affirmed the B3 corporate family
rating for IMAX Corp., as well as the Caa1 rating on its senior
notes.  Moody's said the outlook remains stable.


LA ESTAMPERIA: Verification of Claims Is Until Feb. 22, 2007
------------------------------------------------------------
Ester Alicia Ferrara, the court-appointed trustee for La
Estamperia SA's bankruptcy proceeding, verifies creditors'
proofs of claim until Feb. 22, 2007.

Ms. Ferrara will present the validated claims in court as
individual reports on Apr. 11, 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 La Estamperia 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 La Estamperia's
accounting and banking records will follow on May 24, 2007.

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

The debtor can be reached at:

         La Estemparia SA
         Ugarteche 3146
         Buenos Aires, Argentina

The trustee can be reached at:

         Esmeralda Alicia Ferrara
         Esmeralda 960
         Buenos Aires, Argentina


PHARMANET: Appoints M. Di Ianni as President, Early Stage Dev't
---------------------------------------------------------------
PharmaNet Development Group, Inc., appointed Mark Di Ianni
president, early stage development.  Mr. Di Ianni's new role
will include responsibility for the company's early stage
clinical development business.  He will retain the position of
executive vice president, strategic initiatives.

"This will allow us to apply the breadth and depth of Mark's
experience and proven record of operational excellence to our
early clinical operations," commented Jeffrey P. McMullen,
president and CEO.

Mr. Di Ianni joined PharmaNet Development Group, Inc. in April
2006 as executive vice president, strategic initiatives.  Prior
to joining the company as an employee, Mr. Di Ianni had provided
consulting services to PharmaNet Development Group from 2005 to
2006.  From 2002 through 2005, Mr. Di Ianni was chief operating
officer of Synarc, Inc., a medical imaging provider to the
clinical trial industry.  From 1996 to 2001, Mr. Di Ianni served
as chief operating officer and executive vice president of
SCIREX Corporation, a contract research and clinical site
management organization.  From 1995 to 1996, he served as chief
operating officer of Millennium 3 Research, a clinical site
management organization.  From 1979 to 1995, Mr. Di Ianni held
numerous positions of increasing responsibility at Corning
Pharmaceutical Services (now Covance).  Prior to 1979, Mr. Di
Ianni held positions as a research scientist, clinical research
associate and test engineer.

Headquartered in Princeton, New Jersey, PharmaNet Development
Group, Inc. (NASDAQ: PDGI) -- http://www.pharmanet.com/ -- is
an international drug development services company offering a
comprehensive range of clinical development, clinical and
bioanalytical laboratory, and consulting services to the branded
pharmaceutical, biotechnology, generic drug and medical device
industries.  The company has more than 30 offices, facilities
and laboratories with more than 2,000 employees strategically
located throughout the world including the Argentina, Brazil and
Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 9, 2006,
Standard & Poor's Ratings Services affirmed its ratings on
Princeton, N.J.-based contract research services provider
PharmaNet Development Group Inc., formerly known as SFBC
International Inc., including the 'B+' corporate credit rating.
The ratings were removed from CreditWatch, where they were
placed with negative implications on May 11, 2006.  The outlook
is negative.


TELEFONICA DE ARGENTINA: Stock Reduction Is Effective on Dec. 22
----------------------------------------------------------------
Telefonica de Argentina SA notifies its shareholders that the
voluntary capital stock reduction of US$1,047,630,044.4, which
was approved by the Comision Nacional de Valores and the Bolsa
de Comercio de Buenos Aires, will become effective starting
Dec. 22, 2006.

The US$1,047,630,044.4 capital stock reduction is composed of
US$655,108,302 Class A shares and US$392,521,742.4 Class B
shares and represents 60% of the capital stock and the change of
the share par value from PV 1 to PV 0.10.

Consequently, US$0.60 will be paid in cash and the number of
four new shares of PV 0.10 will be delivered per share of PV 1
held by each shareholder prior to the Capital Stock Reduction.

The capital stock, following the Capital Stock Reduction, will
amount to US$698,420,029.6 (consisting of 4,367,388,680 Class A
shares of PV 0.10 amounting to US$436,738,868 and 2,616,811,616
Class B shares of PV 0.10 amounting to US$261,681,161.6).

The company ensures that all the shareholders will keep their
status as is.

Caja de Valores S.A. will make the relevant registrations
relative to the Capital Stock Reduction and the change of the
share par value and will make the payment to the shareholders
from the funds applicable to each case as resolved by the
company.  The payment will be made at:

           Caja de Valores SA
           25 de mayo 362
           Buenos Aires City, Argentina

and in its branches from 10 a.m. to 3 p.m.

In turn, payments corresponding to holders of American
Depositary Shares or ADS of the company will be made at
Citibank, N.A. in its capacity as Depository under the Deposit
Agreement dated Feb. 3, 1994, starting on Dec. 22, 2006.

Each ADS will represent 40 shares of US$0.10 par value.
Citibank, N.A. will make the relevant registrations in order to
reflect the capital stock reduction and the change of the share
par value as stated above.

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

                        *    *    *

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

                        *    *    *

Standard & Poor's Ratings Services affirmed on Aug. 10, 2006,
its 'B' long-term foreign currency corporate credit rating on
the Argentine telecom incumbent Telefonica de Argentina S.A.,
following the company's announcement of a proposal from its
Board of Directors of a capital reduction of ARS1,048 million
(equivalent to approximately US$340 million) to optimize its
capital structure.  This transaction is subject to the approval
of the Argentine Stock Exchange and the Securities Exchange
Commission (Comision Nacional de Valores).  S&P said the outlook
is stable.


SOCCI MARTA: Reorganization Proceeding Concluded
------------------------------------------------
Socci Marta Silvia y Stancato Oscar Leonardo S.H.'s
reorganization proceeding has ended.  Data published by Infobae
on its Web site indicated that the process was concluded after a
court in Cordoba approved the debt agreement between the company
and its creditors.


SUCESION DE ENRIQUE: Asks for Court Approval to Restructure Debt
----------------------------------------------------------------
Court No. 22 in Buenos Aires is studying the merits of Sucesion
de Enrique Giannattasio y Sucesion de Nemesia Arcancholi's
petition to restructure its debt after it stopped paying its
obligations on August 1996.

The petition, once approved by the court, will allow Sucesion de
Enrique to negotiate a settlement plan with its creditors in
order toa void a straight liquidation.

Clerk No. 44 assists the court in the case.

The debtor can be reached at:

          Sucesion de Enrique Giannattasio y
          Sucesion de Nemesia Arcancholi
          Cabrera 3386
          Buenos Aires, Argentina


TELECOM ARGENTINA: Investing ARS2MM for New Network in Nordelta
---------------------------------------------------------------
Telecom Argentina will invest ARS2 million to install a next
generation network in Nordelta, Infobae reports.

Nordelta is one of several private urban development projects in
northern Buenos Aires.

Business News Americas relates that Telecom Argentina has
deployed a fiber optic network replacing a 7,600-meter cable
network.

Telecom Argentina told BNamericas that the network allows
television services over Internet transmission.  Residents will
have access to higher speed Internet services.

According to BNamericas, Telecom Argentina, reaching 100,000
next generation lines, deployed similar projects in provinces
like:

          -- Tucuman,
          -- Santa Fe,
          -- Cordoba, and
          -- Salta.

BNamericas underscores that Nordelta's network will have 10 new
generation network access nodes allowing the connection of the
network with all urban residents.

Some 74% of homes have a telephone line in Nordelta, Infobae
notes.  About 50% of this amount has a broadband penetration
rate in Argentina.

As reported in the Troubled Company Reporter-Latin America on
Oct. 6, 2006, Telecom Argentina would invest ARS1 billion for
the expansion of its broadband infrastructure and services.
Gerardo Werthein, the vice president of Telecom Argentina, said
that the investment would boost Telecom Argentina's image and
sound quality in the broadband service.  Carlos Felices, the
chief executive officer of Telecom Argentina, stated, "We are
transforming the company from a telecoms service company to a
next generation services company."

Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina.  It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo.  France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein.  Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake.  Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).

                        *    *    *

As reported in the Troubled Company Reporter on April 27, 2006,
Fitch Ratings made these changes on Telecom Argentina's ratings:

   Foreign Currency

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

  Local Currency

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

  US$1.5 billion, Senior Unsecured Notes due 2011 and 2014

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

                        *    *    *

As reported in the Troubled Company Reporter on April 26, 2006,
Standard & Poor's Ratings Services raised its foreign and local
currency corporate credit ratings on several Argentine entities
and removed them from CreditWatch, where they were placed with
positive implications on March 23, 2006.  Telecom Argentina
S.A.'s rating was upgraded to B from B-.

The rating actions followed the upgrade on the global foreign
and local currency ratings on the Republic of Argentina to 'B'
from 'B-' and the ratings on Argentina's national scale to
'raAA-' from 'raA'.


ZONDA COLOR: Reorganization Proceeding Concluded
------------------------------------------------
Zonda Color SA's reorganization proceeding has ended.  Data
published by Infobae on its Web site indicated thatthe process
was concluded after Court No. 4 with assistance from Clerk
No. 8, approved the debt agreement signed between the company
and its creditors.

The debtor can be reached at:

          Zonda Color SA
          Moreno 794
          Buenos Aires , Argentina

The trustee can be reached at:

          Adolfo Jorge Frutos
          Junin 55
          Buenos Aires, Argentina


* ARGENTINA: Places ARS588MM Bonds to Fund Gas Firms' Expansions
----------------------------------------------------------------
The Argentine government has started placing ARS588 million in
bonds to fund expansions of Transportadora de Gas del Sur and
Transportadora de Gas del Norte, Telam reports.

Business News Americas relates that the bonds are part of the
government's Fideicomiso de Gas I gas trust fund.  Banco Galicia
is the placing agent.

According to BNamericas, the trustees include:

          -- Banco de la Nacion Argentina,
          -- Pan American Energy,
          -- Wintershall Energia,
          -- YPF SA,
          -- Total Austral, and
          -- Ledesma SAAI, and
          -- Citrusvil.

The bonds will pay quarterly interest beginning April 2007.  It
will have an interest rate equal to the Badlar rate -- the
average interest rate that banks pay for deposits of over ARS1
million -- plus an additional margin defined in the Dutch
auction, BNamericas states.

                     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%), Organización
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 Ratings assigned these ratings on Argentina:

                     Rating     Rating Date

   Country Ceiling     RD      Dec. 14, 2005
   Long Term IDR       B       Dec. 14, 2005
   Short Term IDR      B-      Jun.  3, 2005
   Local Currency
   Long Term Issuer
   Default Rating      B       Jun.  3, 2005




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


MONTPELIER RE: Declares US$0.075 Per Share Quarterly Dividend
-------------------------------------------------------------
Montpelier Re Holdings Ltd.'s board of directors has declared a
quarterly dividend of US$0.075 per Common Share. The dividend is
payable on Jan. 16, 2007, to shareholders of record on
Dec. 29, 2006.

Headquartered in Bermuda, Montpelier Re Holdings Ltd., through
its operating subsidiary Montpelier Reinsurance Ltd., is a
premier provider of global property and casualty reinsurance and
insurance products.  During the year ended Dec. 31, 2005,
Montpelier underwrote US$978.7 million in gross premiums
written.  Shareholders' equity at Dec. 31, 2005, was US$1.1
billion.

                        *    *    *

On Jan. 4, 2006, Moody's Investors Service assigned Ba1 rating
on Montpelier Re Holdings Ltd.'s subordinated shelf and Ba2
rating on preferred shelf.  Moody's said the outlook for the
ratings is stable.


MONTPELIER RE: AM Best Affirms BB+ Rating on Subordinated Debt
--------------------------------------------------------------
A.M. Best Co. has affirmed the financial strength rating of A-
and the issuer credit rating of "a-" of Montpelier Reinsurance
Ltd.  Concurrently, A.M. Best has affirmed the ICR of "bbb-" and
all existing debt ratings of Montpelier Re Holdings Ltd.  The
outlook for the ratings has been revised to stable from
negative.

The affirmations and revised outlook follow A.M. Best's review
of Montpelier's improved risk management and underwriting
control systems following the 2005 catastrophe season,
strengthening of risk-based capitalization and tangible
reduction in the company's risk profile.  Further supporting the
ratings is Montpelier's highly experienced management team,
customer-oriented focus and well-established presence within the
catastrophe market.

Montpelier has implemented a prudent underwriting strategy to
better manage the potential accumulation of losses from a single
large catastrophic event.  The underwriting strategy includes
the reduction in writings of more volatile lines of business,
purchasing more retrocessional protection, tightening aggregate
policy limit constraints and reducing the company's net exposure
to its modeled 1 in 250 year catastrophe events.  Montpelier's
management monitors theses underwriting constraints relative to
capital based limits established by its Board of Directors and
diversifies the company's exposure around the world to achieve
an optimal spread of risk.

Furthermore, as part of its risk mitigation strategy, Montpelier
formed Champlain Limited during 2006.  Champlain Limited
provides reinsurance protection to Montpelier through a two-
tranche US$75 million catastrophe bond for exposures to first
event U.S. or Japanese earthquakes.

Montpelier exhibits significant financial flexibility with
access to both equity and debt markets.  Montpelier's current
financial leverage measures remain in line with its rating
levels. A.M. Best expects the company to maintain financial
leverage as measured by debt and preferred-to-total capital at
25% or below, while fixed charge coverage for low catastrophe
years is expected to remain in the low double-digit range.

Going forward, Montpelier will be challenged to maintain its
competitive position as new capital enters the market and
pricing begins to soften.  A.M. Best will closely monitor the
effectiveness of Montpelier's improved risk management controls
and procedures with each catastrophic event relative to its
market share and peer group.

The FSR of A- and the ICR of "a-" have been affirmed for
Montpelier Reinsurance Ltd.

The ICR of "bbb-"has been affirmed for Montpelier Re Holdings
Ltd.

This debt rating has been affirmed:

   -- "bbb-" on US$250 million 6.125% senior unsecured notes,
       due 2013.

These indicative ratings have been affirmed under the shelf
registration:

   Montpelier Re Holdings Ltd.

   -- "bbb-" on senior unsecured debt;
   -- "bb+" on subordinated debt; and
   -- "bb" on preferred stock.

   MRH Capital Trust I and II (guaranteed by Montpelier Re
   Holdings Ltd.)

   -- "bb" on preferred securities.


REFCO INC: Seven Claimants Want Temporary Allowance on Claims
-------------------------------------------------------------
Pursuant to Rule 3018(a) of the Federal Rules of Bankruptcy
Procedure, seven claimants separately ask the U.S. Bankruptcy
Court for the Southern District of New York for temporary
allowance of their claims for purposes of voting on Refco,
Inc.'s Chapter 11 Plan.

The Claimants are:

Claimant                    Claim Amount   Asserted Claim Status
--------                    ------------   ---------------------
West Loop Associates, LLC    US$77,753,268   Unsecured

PlusFunds Group, Inc.          220,000,000   Unsecured

Gerald M. Sherer                10,597,620   Admin. Expense

Stephen Grady                    2,069,916   Admin. Expense

Nomura International plc         1,406,696   RCM Class 3 FX/
                                             Unsecured Claim

RBC Dexia Investor Services      2,999,113   RCM Class 3 FX/
Espana, S.A.                                 Unsecured Claim

Ixis Corporate & Investment      4,673,994   RCM Class 3 FX/
Bank                                         Unsecured Claim

PlusFunds asserts that it is entitled to an amount precisely
equal to a preference cash plus its so-called "enterprise value"
of US$220,000,000 and unliquidated damages in an amount to be
determined at trial related to PlusFunds' lost management fees.

PlusFunds contends that its claim reflects the actual amounts
owed by the Debtors arising from breach of contract, fraud and
related torts committed by the Debtors and their officers and
directors.

PlusFunds asks the Court for voting ballots for:

   * Class 5(a) Contributing Debtors General Unsecured Claims,
   * Class 5(a) FXA General Unsecured Claims, and
   * Class 3 RCM FX/Unsecured Claims.

West Loop asserts:

   -- a US$9,949,142 claim arising under the rejection of Refco
      Group Ltd.'s lease with West Loop; and

   -- a US$67,695,652 damage incurred upon its purchase of
      property in reliance on misrepresentations by RGL and
      other Debtors, including in an estoppel certificate that
      predated the Debtors' filing for bankruptcy.

Ixis and Nomura ask Judge Drain to clarify that their votes will
be for voting purposes only and will not affect the ultimate
determination and treatment of their claims, and that the
elections will apply regardless of the ultimate claims
classification.  Ixis and Nomura received FX/Unsecured Ballots.

The Claimants further insist that allowance of their Claims
solely for voting purposes will foster the goals of the
Bankruptcy Code by encouraging creditor voting, and will not
prejudice any party.

To be entitled to vote, a creditor must hold an allowed claim or
interest.  Bankruptcy Rule 3018(a), however, provides a
mechanism to enable a creditor to vote to accept or reject a
debtor's plan, prior to allowance of its claim.  Rule 3018(a)
provides that notwithstanding objection to a claim or interest,
the court after notice and hearing may temporarily allow the
claim or interest in an amount which the court deems proper for
the purposes of accepting or rejecting a plan.

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


REFCO INC: Parties Ink Pact Resolving Alqahtani's Claim
-------------------------------------------------------
Pursuant to a stipulation approved by the U.S. Bankruptcy Court
for the Southern District of New York, Saeed Abdulrahman
Alqahtani and Refco F/X Associates agree that FXA will
immediately pay US$2,300,000, in cash, to Mr. Alqahtani, by wire
transfer.

Mr. Alqahtani will waive and release all claims, rights,
remedies and causes of action that he has or may assert against
FXA or any of the other debtors or estates in the Debtors'
consolidated Chapter 11 cases or their professionals.

Before Refco, Inc., and its debtor-affiliates filed for
bankruptcy, Mr. Alqahtani initiated a US$3,000,000 wire transfer
from his account at Bank Albilad in Riyadh, Saudi Arabia, to a
bank account maintained by FXA at Bank of America.

J.P. Morgan Chase, the intermediary bank, wired the Funds to
BofA through the Fedwire Funds Service, a settlement system
administered by Federal Reserve Bank for participating banks.

According to the wire transfer detail, JPMorgan issued the
applicable payment order to FRB at 9:02 p.m. on Oct. 17, 2005,
less than three hours before FXA's commencement of its Chapter
11 case at 11:54 p.m.  The Funds were subsequently credited to
FXA's BofA account.  In a payment advice to FXA, BofA showed
acknowledgement of receipt of the Funds in FXA's account at 7:00
a.m. on Oct. 18, 2006.

Mr. Alqahtani continued to use FXA's Web site to execute trades
postpetition.  As a result of those trades, Mr. Alqahtani
asserts, the value of his FXA account as of May 25, 2006, was
about US$5,865,000.

Mr. Alqahtani has filed an administrative expense priority claim
against FXA in the full amount of the value of his FXA account.

FXA does not dispute the asserted claim amount.  However, it
disputes that the claim is entitled to administrative expense
priority and to treatment as a general unsecured prepetition
claim, for which Mr. Alqahtani would receive a pro rata
distribution like other FXA customers.

Mr. Alqahtani and FXA agree on the claim amount, but disagree
over whether his claims are entitled to priority as an
administrative expense.

Mr. Alqahtani argues that his US$3,000,000 FXA deposit occurred
postpetition and that his claim for its return is entitled to
postpetition treatment as an administrative expense.  He also
contends that his trading gains of US$2,865,000 during the
Debtors' Chapter 11 case are entitled to administrative expense
priority because:

   -- his claim for the deposit is entitled to that treatment;
      and

   -- FXA permitted continued trading in customers' foreign
      exchange accounts after the Chapter 11 filing and,
      therefore appeared to continue to conduct its business in
      the ordinary course under Section 1108.

Furthermore, Mr. Alqahtani avers that even if his deposit was
made prepetition -- so that his initial account balance was
entitled to be allowed as a general unsecured claim -- his
postpetition trading gains were incurred in FXA's continued
operations in the ordinary course of business, and are therefore
entitled to administrative expense priority.

However, FXA argues that Mr. Alqahtani's deposit actually
occurred when JPMorgan sent the wire to BofA, about three hours
prepetition, and that, therefore his deposit claim is a general
unsecured prepetition claim.  FXA also states that any
postpetition foreign exchange trading gains that customers made
as a result of FXA keeping the computer trading platform open
are entitled only to the same priority as the claims with which
the customers traded -- that is, the general unsecured
prepetition claims resulting from the prepetition deposits --
and that they should be netted against the customers' Petition
Date account balances to arrive at a prepetition claim amount.

Mr. Milmoe says that if Mr. Alqahtani is successful in asserting
priority for both portions of his claim, the estate would be
obligated to pay him more than US$5,800,000 in cash.  Even if he
is successful in asserting priority for only one of the two
portions of his claim, the estate would be obligated to pay him
from US$2,800,000 to US$3,000,000 in cash as an administrative
expense claim, and a partial distribution on the balance of his
claim, which is estimated at 10% to 35%, for a total cash
distribution of US$3,080,000 to US$4,050,000.

On the other hand, Mr. Milmoe notes, if FXA is successful in
defeating Mr. Alqahtani's claim for priority, FXA would make a
partial distribution on the Claim, of US$580,000 to
US$2,030,000.  There would also be litigation expense for both
sides and substantial delay for Mr. Alqahtani in receiving any
distribution, Mr. Milmoe says.

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




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


ALCATEL-LUCENT: Begins Consent Solicitation for Conv. Debentures
----------------------------------------------------------------
Alcatel-Lucent commenced a solicitation of consents from holders
of record as of Dec. 14, 2006, of Lucent's 2.75% Series A
Convertible Senior Debentures due 2023 and 2.75% Series B
Convertible Senior Debentures due 2025 to amend the Indenture
for the Debentures.  The amendment would allow Alcatel-Lucent to
provide the holders of the Debentures such information,
documents and other reports that are required to be filed by the
company pursuant to sections 13 and 15(d) of the U.S. Securities
Exchange Act of 1934, instead of having to produce separate
information, documents and reports for Lucent.

Under the terms of the consent solicitation, if Alcatel-Lucent
receives the required consents, the company will:

   1) issue a full and unconditional subordinated guaranty of
      the Debentures;

   2) increase the interest payable on the principal amount of
      the Debentures by 12.5 basis points per year;

   3) provide a one-time upward adjustment to the conversion
      rate to 59.7015 ADSs for each US$1,000 in principal amount
      of Series A Debentures and to 65.1465 ADSs for each
      US$1,000 principal amount of Series B Debentures; and

   4) add a provision to the Indenture that will cause an upward
      adjustment to the conversion rate upon cash dividends or
      distributions on the Alcatel-Lucent ordinary shares in
      excess of EUR0.08 per share per year.

The details regarding the terms of the consent solicitation can
be found in the consent solicitation statement/prospectus, dated
Dec. 15, 2006, which supercedes the joint solicitation
statement/prospectus and supplement dated, Nov. 14, 2006, and
Nov. 27, 2006, respectively.

All holders of the Debentures who have previously delivered
consents must redeliver the consents.

The consent solicitation will expire at 1:00 p.m. Eastern Time
on Dec. 29, 2006, unless extended.  The adoption of the proposed
amendments to the Indenture requires the consent of the holders
of a majority in aggregate principal amount of each series of
Debentures.

Holders of the Debentures can obtain copies of the consent
solicitation statement/prospectus, the related letter of consent
and other related materials from:

          D.F. King & Co.
          Information Agent
          Tel: +1 (888) 887-0082 (US toll-free)
               +1 (212) 269-5550 (for banks and brokers)

Bear, Stearns & Co. Inc. is acting as the Solicitation Agent for
the consent solicitation and can be contacted at +1 (877) 696-
BEAR (toll-free).

                   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.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 13, 2006,
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.


BANCO NACIONAL: Oil & Gas Firms Seek More Loans
-----------------------------------------------
Claudia Prates -- the head of Banco Nacional de Desenvolvimento
Economico e Social's oil, gas and renewable energy department,
told Business News Americas that the bank has faced increased
demand for loans from oil and gas firms.

Ms. Prates explained to BNamericas, "The bank (Banco Nacional)
is now financing more companies in the sectors aside from
Petrobras (Petroleo Brasileiro), which has had most of the
financing up to now."

Business News Americas relates that bank disbursements for oil
and gas projects increased to BRL2.4 billion on Dec. 12, 2006,
compared with BRL2.2 billion in the rest of 2005.  The
disbursements excluded platforms, which are funded through
another department.

The gas department's disbursement for the rest of 2006 should
increase mainly due to disbursement for projects to construct
platform support vessels, BNamericas notes.

According to BNamericas, industry information indicated that the
firms has begun seeking funding from Banco Nacional now that
their exploration work is starting to yield results and enter
development.  Investments commitments by the oil and gas sector
will surpass US$100 billion for the next five years.

BNamericas underscores that Banco Nacional has a BRL60-billion
lending budget for this year.  The bank is the main source of
funding for long-term projects in Brazil, as it offers below-
market rates and loan maturities of 12 years.

Banco Nacional said in a statement that total disbursement in
the first 11 months of this year was BRL43 billion.

BNamericas emphasizes that disbursement through Dec. 12, 2006,
for gas transport projects was BRL811 million, plus BRL700
million for refineries, BRL345 million for gas distribution
firms and BRL532 million for support shipping projects.

The report says that funding for support vessels increased 125%
from BRL236 million last year.

BNamericas reports that Petroleo Brasileiro still had the
biggest share of funding mainly due to the 1,400-kilometer
Gasene gas pipeline project and the 385-kilometer Coari-Manaus
pipeline.

Banco Nacional disbursed money for other initiatives like the
Manati gas production project, in which Queiroz Galvao is the
operator, BNamericas says.

Banco Nacional disbursed loans to private gas distribution firms
like CEG, Comgas and Gas Natural SPS, BNamericas states.

Banco Nacional also disbursed money to state-controlled firms
like Compagas and SCGAS.  Lending to state companies is
restricted due to fiscal legislation, Mr. Prates 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/--


BRASKEM: Names Carlos Fadigas de Souza Filho as New CFO
-------------------------------------------------------
Braskem SA named Carlos Jose Fadigas de Souza Filho as its new
CFO and Investor Relations Director, as of January 2007,
replacing Paul Altit, who will take over new responsibilities at
Construtora Norberto Odebrecht.

Mr. Altit played a key role in Braskem's performance since its
creation in 2002, resulting in major contributions to the
strengthening of the company's financial position, and to the
completion of its corporate integration process.

Mr. Fadigas, graduated Business Administration from Unifacs,
Bahia, and holds an MBA degree from the Institute for Management
Development in Switzerland.  He started his career at Citibank
in 1990 and served in several positions at OPP and Trikem,
companies that were merged into Braskem.  Since 2002, he has
been the CFO of CNO, and participated in important transactions
in the local and international capital markets.

Mr. Fadigas' appointment is a good example of the company's
commitment to adequately employ its best talents, promoting a
natural turnover of its leading executives.

"Mr. Fadigas has a sound experience in the financial and
petrochemical areas and a good knowledge of international
markets, and will certainly make a major contribution to the
company's process of growth with value creation, accelerating
its internationalization process," says CEO Jose Carlos
Grubisich.  "His mission will be to give continuity to the
excellent job so far developed by Paul Altit, who is recognized
by the entire financial sector as having been decisive in
consolidating Braskem as a world-class company," says Mr.
Grubisich.

The commitment to creating value for all shareholders by
increasing its strategic flexibility and reducing the cost of
capital, will remain a key priority for Braskem's financial
management.

"The company's growth strategy will continue to be based on a
consistent investment policy, combined with capital discipline,
thus ensuring adequate return on capital employed," says Mr.
Fadigas.

Braskem -- http://www.braskem.com.br/-- is a thermoplastic
resins producer in Latin American, and is among the three
largest Brazilian-owned private industrial companies.  The
company operates 13 manufacturing plants located throughout
Brazil, and has an annual production capacity of 5.8 million
tons of resins and other petrochemical products.

                        *    *    *

Standard & Poor's Ratings Services assigned on Sept. 22, 2006,
its 'BB' senior unsecured debt rating to the proposed up to
US$275 million bonds due Jan. 2017 to be issued by Brazil-based
petrochemical company Braskem S.A. (BB/Stable/--).  The bonds
will rank pari passu with the company's other senior unsecured
notes.

Fitch assigned on Sept. 20, 2006, a rating of 'BB+' to Braskem
S.A.'s proposed issuance of US$275 million senior unsecured
notes due to 2017.  The notes are being offered under Rule 144A
Regulation S.  The proceeds of the offering are expected to be
used to prepay existing debts and extend debt maturities. Fitch
also maintains foreign currency and local currency Issuer
Default Ratings of 'BB+' and a national scale rating of
'AA(bra)' for Braskem.  Fitch said the Rating Outlook is Stable.


COMPANHIA DE SANEAMENTO: Paying Interest on Own Capital
-------------------------------------------------------
Companhia de Saneamento Basico do Estado de Sao Paulo's board of
directors approved the declaration of payment of dividends in
the form of Interest on Own Capital, referring to the fourth
quarter of 2006 to the shareholders on the reference date of
Dec. 27, 2006.

The Dividends as Interest on Own Capital, totaling
BRL141,258,706.02 corresponding to BRL4.96 per thousand common
shares, will be paid no later than 60 days after the 2007 Annual
Shareholders' Meeting.

Income tax shall be withheld from payment of dividends as
interest on own capital, pursuant to the laws in force, except
for the immune or exempt shareholders proving such condition
until March 31, 2007, and corresponding documents shall be sent
to the Company's headquarters.

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

                        *    *    *

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


CIA SIDERURGICA: Wheeling-Pitt Confirms Terminated Merger Pact
--------------------------------------------------------------
Wheeling-Pittsburgh Corp. confirmed Companhia Siderurgica
Nacional's announcement that it has terminated the merger
agreement dated Oct. 24, 2006, between the two companies.

Wheeling-Pittsburgh Corp. Chairman and Chief Executive Officer
James P. Bouchard, commenting on the recent development said,
"Wheeling-Pittsburgh Corporation appreciates the hard work and
interest showed by Companhia Siderurgica to improve the
prospects of Wheeling-Pitt.  Companhia Siderurgica will continue
to be a valuable customer and supplier of Wheeling-Pitt in the
near term, and we believe will also be an important commercial
partner to us as we achieve our vision for the future."

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.


DURA AUTOMOTIVE: Eight Vendors Want to Reclaim Prepetition Goods
----------------------------------------------------------------
Eight vendors ask DURA Automotive Systems Inc., pursuant to
Sections 503 and 546 of the Bankruptcy Code and applicable non-
bankruptcy law, to return certain goods that are subject to
reclamation:

       Vendor                          Value of Goods
       ------                          --------------
   Freedom Technologies Corp.             US$164,576

   S&S Porcelain Metals, LLC                 144,449

   Dexon Computer, Inc.                       23,930

   Sharon Tube Company                        40,148

   Metco Industries, Inc.                     54,065

   Steadfast Engineered Products, LLC         15,531

   ACK Controls Inc.                         169,260

   Supreme Machined Products Co., Inc.
     of Spring Lake, Michigan                 23,391

The Vendors inform the Honorable Kevin J. Carey of the U.S.
Bankruptcy Court for the District of Delaware that the reclaimed
goods were sold in the ordinary course of their businesses and
delivered to the Debtors during the 45 days before they filed
for bankruptcy.  The Vendors believe that the Debtors were
insolvent at the time that they received the goods.

Steadfast Engineered Products requests for an inventory of the
goods it delivered to the Debtors.

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).


PETROLEO BRASILEIRO: Distributing Interest on Own Capital
---------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras approved remuneration
distribution to its shareholders in the form of interest on
self-owned capital.  The value to be distributed, totaling
BRL1,974 million, corresponds to a gross value of BRL0.45 per
ordinary and preferred share.  The sum will be accrued in the
accounting statements for Dec. 31, 2006, and is expected to be
disbursed by March 31, 2007, based on the shareholding position
on Dec. 28, 2006.  As of Jan. 2, 2007, the shares will start
being traded ex-interest on self-owned capital.

If the payment is made after Dec. 31, 2006, it will be added to
the SELIC rate variation accumulated between Dec. 31 and the
actual payment date.  This interest on self-owned capital must
be discounted from the remuneration that is distributed at the
end of the 2006 fiscal year and is subject to 15% (fifteen
percent) withholding tax, except for shareholders who declare
immunity or exemption.

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

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

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

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

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

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


PETROLEO BRASILEIRO: Authorizes Share Repurchase Program
--------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras authorized the repurchase
of its preferred shares in circulation for future cancellation,
using profit reserve resources under these conditions:

   a) Objective: Reduce excess cash flow and adjust the capital
      structure, contributing to reducing Petrobras' capital
      cost;

   b) Amount: Up to 91,500,000 preferred shares, corresponding
      to 4.9% of this class of shares currently in circulation,
      which sums up to 1,850,364,700;

   c) Price: The acquisition will be made via Stock Exchanges,
      for share market value on the acquisition dates during the
      repurchase term;

   d) Intermediating financial institutions:

      * Bradesco SA. Corretora de Titulos e Valores Mobiliarios,

      * Citigroup GMB CCTVM,

      * Citigroup Global Markets,

      * Credit Suisse Brasil SA. Corretora de TÝtulos e Valores
        Mobiliarios,

      * Itau Corretora de Valores,

      * JP Morgan CCVM SA,

      * JP Morgan Securities Inc.,

      * Morgan Stanley Dean Witter CTVM SA,

      * Morgan Stanley & CO. Incorporated, and

      * Santander Brasil Corretora de Titulos e Valores
        Mobiliarios;

   e) Term: Up to 365 days beginning Dec. 15, 2006.

Pursuant to its share repurchase policy, the Board of Directors
concluded that the current cash flow situation allows a program
for this purpose to be deployed without compromising the
company's investment program or substituting for dividend
payments, while preserving the operational and financial goals
set forth by the Strategic Planning.  The Board also believes
there are signs share prices are outdated, considering the
company's growth and profitability perspectives.

In the past three years, there was a marked improvement in
Petrobras' financial indicators.  The leverage index (net
indebtedness/net liabilities) in the Brazilian corporate
legislation fell from 53% in December 2002 to 17% in September
2006 (55% to 18% in the American corporate legislation), while
the Strategic Planning financial goals point to a 25% baseline
for this indicator.  This significant improvement in the
company's liquidity is also reflected by its risk classification
by Moody's.  After being reduced to the Ba2 level in August
2002, it was successively increased to Ba1 in September 2004,
and Baa2 in October 2005, a classification already considered as
investment grade.

In October 2006, the company rose US$500 million in funds in the
international market, for ten years, offering a yield of 6.185%
a year, only 1.55% above the American Government's bonds for
similar terms.  With these rates in mind, and considering the
company's growth perspectives compared with the current market
valuing of its shares, and from the viewpoint of the conditions
currently in effect and projected for the international oil
market, among other alternatives that were analyzed, the Board
of Directors considered share repurchase as the most efficacious
way to reduce Petrobras' short-term financial cost.

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

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

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

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

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

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


PETROLEO BRASILEIRO: Approves Petros Plan Subscription Reopening
----------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras' board of directors
approved the reopening of the subscription process for the new
Petros Plan regulation, with an extension term stipulated
through Feb. 28, 2007, and with a new minimum adhesion goal set
for 2/3 of the Petros Plan participants.

The process had been terminated as there was a mandatory
condition for massive individual participant adhesion, seeking
the near totality of the employees and assisted parties.
Adhesion had been about 53% (46% among retirees and pensioners,
and 62% of the active employees) in the process held between
July and August this year.

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

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

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

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

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

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


SANMINA-SCI: Delays Form 10-K Filing for FY Ended Sept. 30, 2006
----------------------------------------------------------------
Sanmina-SCI Corp. is filing a notification with the U.S.
Securities and Exchange Commission under Rule 12b-25 because it
will be unable to file its annual report on Form 10-K for the
fiscal year ended Sept. 30, 2006, on a timely basis.  The
company is completing its preparation of, and its outside
independent accounting firm is in the process of auditing the
company's Form 10-K.  The company intends to file its Form 10-K
as soon as practicable, and in any event within the 15-day
extension period afforded by SEC Rule 12b-25 under the
Securities Exchange Act of 1934, as amended.

The company's board of directors formed an independent special
committee to review certain matters concerning the company's
stock option administration policies and practices dating back
to Jan. 1, 1997, and the related accounting implications.  Based
on the final report and recommendations of the special
committee, the company issued a press release on Oct. 12, 2006,
stating that a restatement of the company's historical financial
results would be necessary in order to record additional stock-
based compensation expenses.

The company filed on Dec. 13, 2006, its Form 10-Q for the period
ended July 1, 2006.  The financial statements, and related
footnotes and disclosures have been adjusted to reflect the
results of the investigation.

Headquartered in San Jose, California, Sanmina-SCI Corp. is one
of the largest electronics contract manufacturing services
companies providing a full spectrum of integrated, value added
solutions.  In Europe, the company has operations in Finland,
France, Ireland, Germany, Sweden, Hungary, and Spain. In Latin
America, it operates in Brazil and Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 20, 2006,
Standard & Poor's Ratings Services assigned its 'BB-' rating to
Sanmina-SCI Corp.'s US$600 million senior unsecured term loan,
which matures Jan. 31, 2008.  In addition, this rating was
placed on CreditWatch with negative implications.


TELE NORTE: Shareholders Reject Restructuring Plan
--------------------------------------------------
Tele Norte Leste Participacoes SA said in a filing with the U.S.
Securities and Exchange Commission that it has failed to get the
shareholders' approval for its planned restructuring at a
meeting on Dec. 15.

Tele Norte previously suspended a shareholders meeting set for
Nov. 27 as Comissao de Valores Mobiliarios, the securities
regulator of Brazil, requested more details about the voting
process, as ordered by a Rio de Janeiro civil court.  Tele Norte
had been unable to vote on its corporate restructuring plan on
Nov. 13 and Nov. 24 as the shareholders meeting failed to reach
quorum.

Tele Norte's proposed restructuring involves:

          -- simplifying the structure of its three units:

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

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

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

According to published reports, 36.9% of the shareholders voted
against the restructuring plan, while 28.9% supported it.

Luiz Eduardo Falco told Reuters, "I am frustrated, sure.  At the
moment there is no possibility of reformulating the proposal."

Business News Americas relates that Tele Norte could now focus
on future operation plans.

"We want to enter the content market, with IPTV, TV and cable,
although there are still regulatory limitations," Mr. Falco told
O Globo.

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

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

                        *    *    *

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




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


ALBARAKA DOW: Liquidator to Present Wind Up Accounts on Dec. 20
---------------------------------------------------------------
Albaraka Dow Jones Islamic Index Fund's final shareholders
meeting will be at 10:30 a.m. on Dec. 20, 2006, at the company's
registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          K.D. BLAKE
          S.L.C. Whicker
          Attn: Blair Houston
          P.O. Box 493, George Town
          Grand Cayman, Cayman Islands
          Tel: 345-949-4800
               345-945-4334
          Fax: 345-949-7164


AL-SAFWA: Invites Shareholders for Final Meeting on Dec. 20
-----------------------------------------------------------
Al-Safwa International Equity Fund's final shareholders meeting
will be at 11:00 a.m. on Dec. 20, 2006, at the company's
registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          K.D. BLAKE
          S.L.C. Whicker
          Attn: Blair Houston
          P.O. Box 493, George Town
          Grand Cayman, Cayman Islands
          Tel: 345-949-4800
               345-945-4334
          Fax: 345-949-7164


BBVA AMERICA: Final Shareholders Meeting Is Set for Dec. 21
-----------------------------------------------------------
BBVA America Fund Manager's final shareholders meeting will be
at 10:00 a.m. on Dec. 21, 2006, at the company's registered
office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          S.L.C. Whicker
          K.D. Blake
          Attn: Gundega Tamane
          P.O. Box 493
          Grand Cayman, Cayman Islands
          Tel: 345-945-4309
               345-949-4800
          Fax: 345-949-7164


BBVA INVESTMENT: Final General Meeting Is Set for Dec. 21
---------------------------------------------------------
BBVA Investment Program Fund Ltd's final shareholders meeting
will be at 11:30 a.m. on Dec. 21, 2006, at the company's
registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          S.L.C. Whicker
          K.D. Blake
          Attn: Gundega Tamane
          P.O. Box 493
          Grand Cayman, Cayman Islands
          Tel: 345-945-4309
               345-949-4800
          Fax: 345-949-7164


CHESS INC: Calls Shareholders for Final Meeting on Dec. 21
----------------------------------------------------------
Chess Inc.'s final shareholders meeting will be at 10:00 a.m. on
Dec. 21, 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:

          K.D. Blake
          Attn: Blair Houston
          P.O. Box 493, Grand Cayman KY1-1106
          Cayman Islands
          Tel: 345-949-4800
               345-914-4334
          Fax: 345-949-7164


CTMP II: Shareholders to Convene for Final Meeting on Dec. 20
-------------------------------------------------------------
CTMP II Funding Corp.'s final shareholders meeting will be at
10:00 a.m. on Dec. 20, 2006, at:

          Caledonian House, 69 Dr. Roy's Drive
          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:

          Bernard McGrath
          Caledonian House
          P.O. Box 1043 GT, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 0050
          Fax: (345) 949 8062


ESPIRITO SANTO: Shareholders to Gather for Dec. 20 Final Meeting
----------------------------------------------------------------
Espirito Santo Overseas Ltd.'s final shareholders meeting will
be at 11:30 a.m. on Dec. 20, 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:

          K.D. Blake
          S.L.C. Whicker
          Attn: Gundega Tamane
          P.O. Box 493
          Grand Cayman, Cayman Islands
          Tel: 345-949-4800
               345-945-4309
          Fax: 345-949-7164


GLADIATOR OFFSHORE: Final Sahreholders Meeting Is on Dec. 21
------------------------------------------------------------
Gladiator Offshore Ltd.'s final shareholders meeting will be at
9:00 a.m. on Dec. 21, 2006, at:

          Savoy Capital International, Ltd.
          Suite108, 513-8th Avenue SW
          Calgary, Alberta, Canada

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:

          Gene Vollendorf
          Savoy Capital International, Ltd.
          Suite108, 513-8th Avenue SW
          Calgary, Alberta, Canada
          Tel: (403) 517 2151
          Fax: (403) 517 2159


GLOBAL TRADING: Calls Shareholders for Final Meeting on Dec. 22
---------------------------------------------------------------
Global Trading Fund Ltd.'s final shareholders meeting will be on
Dec. 22, 2006, at:

         Kroll (Cayman) Limited
         4th Floor, Bermuda House
         Dr. Roy's Drive
         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:

          Gordon I. Macrae
          Attn: Korie Drummond
          Kroll (Cayman) Limited
          4th Floor, Bermuda House
          Dr. Roy's Drive
          Grand Cayman, Cayman Islands
          Tel: (345) 946-0081
          Fax: (345) 946-0082


GLOBAL TRADING II: Final General Meeting Is Set for Dec. 22
-----------------------------------------------------------
Global Trading Fund II Ltd.'s final shareholders meeting will be
on Dec. 22, 2006, at:

         Kroll (Cayman) Limited
         4th Floor, Bermuda House
         Dr. Roy's Drive
         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:

          Gordon I. Macrae
          Attn: Korie Drummond
          Kroll (Cayman) Limited
          4th Floor, Bermuda House
          Dr. Roy's Drive
          Grand Cayman, Cayman Islands
          Tel: (345) 946-0081
          Fax: (345) 946-0082


HCI HEALTHCARE: Proofs of Claim Filing Is Until Dec. 21
-------------------------------------------------------
HCI Healthcare Investments Ltd's creditors are required to
submit proofs of claim by Dec. 21, 2006, to the company's
liquidator:

          John Arnold
          c/o Colin Shaw & Co
          Second Floor, Alamander Way
          Grand Pavilion, West Bay Road
          PO Box 10173 APO
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Dec. 21 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


HCI HEALTHCARE: Invites Shareholders for Dec. 21 Final Meeting
--------------------------------------------------------------
HCI Healthcare Investments Ltd's final shareholders meeting will
be on Dec. 21, 2006, at offices of HBM Bioventures Ltd., located
at:

           HBM Bioventures (Cayman) Ltd.
           3rd Floor Centennial Towers
           2454 West Bay Road
           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:

          John Arnold
          c/o Colin Shaw & Co
          2nd Floor, Alamander Way, Grand Pavilion
          West Bay Road
          P.O. Box 10173APO
          Grand Cayman, Cayman Islands
          Tel: (345) 946-8002
          Fax: (345) 946-8003


HIGHBRIDGE SPECIAL: Proofs of Claim Filing Is Until Dec. 21
-----------------------------------------------------------
Highbridge European Special Situation Fund Ltd.'s creditors are
required to submit proofs of claim by Dec. 21, 2006, to the
company's liquidators:

          Lawrence Edwards
          P.O. Box 258, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Dec. 21 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Highbridge European's shareholders agreed on Nov. 17, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

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


LONDON CREDIT: Last Shareholders Meeting Is Set for Dec. 21
-----------------------------------------------------------
London Credit Fund Ltd.'s final shareholders meeting will be at
11:00 a.m. on Dec. 21, 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:

          K.D BLAKE
          Attn: Nick Seaman
          P.O. Box 493
          Grand Cayman, Cayman Islands
          Tel: 345-949-4800
               345-914-4320
          Fax: 345-949-7164
               345-949-7164


MEDICI OFFSHORE: Calls Shareholders for Final Meeting on Dec. 21
----------------------------------------------------------------
Medici Offshore Healthcare Fund, Ltd's final shareholders
meeting will be at 10:30 a.m. on Dec. 21, 2006, at:

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

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Linburgh Martin
          Attn: Thiry Gordon
          Close Brothers (Cayman) Limited
          Fourth Floor, Harbour Place
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8455
          Fax: (345) 949 8499


MEZZANINE CAPITAL: Proofs of Claim Filing Deadline Is Dec. 22
-------------------------------------------------------------
Mezzanine Capital Corporation (Managers) Ltd.'s creditors are
required to submit proofs of claim by Dec. 22, 2006, to the
company's liquidators:

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

Creditors who are not able to comply with the Dec. 22 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Mezzanine Capital's shareholders agreed on Nov. 16, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

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


MOUNTCASHEL FUND: Last Shareholders Meeting Is on Dec. 21
---------------------------------------------------------
Mountcashel Fund's final shareholders meeting will be at 10:00
a.m. on Dec. 21, 2006, at:

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

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Linburgh Martin
          Attn: Thiry Gordon
          Close Brothers (Cayman) Limited
          Fourth Floor, Harbour Place
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8455
          Fax: (345) 949 8499


MVI MEDICAL: Deadline for Proofs of Claim Filing Is on Dec. 21
--------------------------------------------------------------
MVI Medical Venture Investment Ltd's creditors are required to
submit proofs of claim by Dec. 21, 2006, to the company's
liquidator:

          John Arnold
          c/o Colin Shaw & Co
          Second Floor, Alamander Way
          Grand Pavilion, West Bay Road
          PO Box 10173 APO,
          Grand Cayman, Cayman Island

Creditors who are not able to comply with the Dec. 21 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


MVI MEDICAL: Liquidator Presenting Wind Up Accounts on Dec. 21
--------------------------------------------------------------
MVI Medical Venture Investments Ltd's final shareholders meeting
will be on Dec. 21, 2006, at:

           HBM Bioventures (Cayman) Ltd.
           3rd Floor Centennial Towers
           2454 West Bay Road
           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:

          John Arnold
          c/o Colin Shaw & Co
          Second Floor, Alamander Way
          Grand Pavilion, West Bay Road
          P.O. Box 10173 APO, Grand Cayman


PENDRAGON EXCALIBUR: Sets Final Shareholders Meeting on Dec. 21
---------------------------------------------------------------
Pendragon (Excalibur) Fund Ltd's final shareholders meeting will
be at 10:00 a.m. on Dec. 21, 2006, at:

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

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Linburgh Martin
          Attn: Thiry Gordon
          Close Brothers (Cayman) Limited
          Fourth Floor, Harbour Place
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8455
          Fax: (345) 949 8499


PENDRAGON MERLIN: Final General Meeting Is on Dec. 21
-----------------------------------------------------
Pendragon (Merlin) Fund Ltd.'s final shareholders meeting will
be at 10:00 a.m. on Dec. 21, 2006, at:

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

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Linburgh Martin
          Attn: Thiry Gordon
          Close Brothers (Cayman) Limited
          Fourth Floor, Harbour Place
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8455
          Fax: (345) 949 8499


RANGER MULTI-STRATEGY: Last Shareholders Meeting Is on Dec. 21
--------------------------------------------------------------
Ranger Multi-Strategy LLC's final shareholders meeting will be
at 10:00 a.m. on Dec. 21, 2006, at:

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

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Linburgh Martin
          Attn: Thiry Gordon
          Close Brothers (Cayman) Limited
          Fourth Floor, Harbour Place
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8455
          Fax: (345) 949 8499


RANGER (NON ENHANCED): Final General Meeting Is Set for Dec. 21
---------------------------------------------------------------
Ranger Multi-Strategy Non Enhanced Ltd's final shareholders
meeting will be at 10:00 a.m. on Dec. 21, 2006, at:

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

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Linburgh Martin
          Attn: Thiry Gordon
          Close Brothers (Cayman) Limited
          Fourth Floor, Harbour Place
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8455
          Fax: (345) 949 8499


SAPIC-98 (17): Proofs of Claim Filing Deadline Is on Dec. 21
------------------------------------------------------------
Sapic-98 Reference Fund (17) Ltd.'s creditors are required to
submit proofs of claim by Dec. 21, 2006, to the company's
liquidators:

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

Creditors who are not able to comply with the Dec. 21 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sapic-98's shareholders agreed on Nov. 17, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Jodi Jones
          P.O. Box 258, Goerge Town
          Grand Cayman, Cayman Islands
          Tel: 345-914-8694
          Fax: 345-949-4237


SAPIC-98 (41): Filing of Proofs of Claim Is Until Dec. 21
---------------------------------------------------------
Sapic-98 Refernce Fund (41) Ltd's creditors are required to
submit proofs of claim by Dec. 21, 2006, to the company's
liquidators:

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

Creditors who are not able to comply with the Dec. 21 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sapic-98's shareholders agreed on Nov. 17, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Jodi Jones
          P.O. Box 258, George Town
          Grand Cayman, Cayman Islands
          Tel: 345-914-8694
          Fax: 345-949-4237


SAPIC-98 (B-II): Creditors Must File Proofs of Claim by Dec. 21
---------------------------------------------------------------
Sapic-98 Reference Fund (B-II)'s creditors are required to
submit proofs of claim by Dec. 21, 2006, to the company's
liquidators:

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

Creditors who are not able to comply with the Dec. 21 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Sapic-98's shareholders agreed on Nov. 17, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Jodi Jones
          P.O. Box 258, George Town
          Grand Cayman, Cayman Islands
          Tel: 345-914-8694
               345-949-4800
          Fax: 345-945-4237


SHIPPING INVESTMENT: Final Shareholders Meeting Is on Dec. 21
-------------------------------------------------------------
Shipping Investment Ltd.'s final shareholders meeting will be at
9:30 a.m. on Dec. 21, 2006, at the company's registered office:

          Caledonian House
          69 Dr.Roy's Drive,
          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:

          Bernard McGrath
          Caledonian House
          P.O. Box 1043 GT
          George Town, Grand Cayman
          Tel: (345) 949 0050
          Fax: (345) 949 8062


TRITON FUND: Shareholders to Gather for Final Meeting on Dec. 21
----------------------------------------------------------------
Triton Fund Ltd's final shareholders meeting will be at 10:00
a.m. on Dec. 21, 2006, at at:

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

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Linburgh Martin
          Attn: Thiry Gordon
          Close Brothers (Cayman) Limited
          Fourth Floor, Harbour Place
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 8455
          Fax: (345) 949 8499


VERITY GLOBAL: Final Shareholders Meeting Is Set for Dec. 20
------------------------------------------------------------
Verity Global Offshore Fund, Ltd.'s final shareholders meeting
will be at 9:30 a.m. on Dec. 20, 2006, at the company's
registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          K.D. BLAKE
          S.L.C. Whicker
          Attn: Blair Houston
          P.O. Box 493, George Town
          Grand Cayman, Cayman Islands
          Tel: 345-949-4800
               345-945-4334
          Fax: 345-949-7164




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


DELL INC: Receives NASDAQ Delisting Notice
------------------------------------------
Dell Inc. received a NASDAQ Staff Determination letter on
Dec. 15, 2006, indicating that the company is not in compliance
with the NASDAQ continued listing requirements set forth in
Marketplace Rule 4310(c) (14).  The Determination letter relates
to the company's Form 10-Q for the fiscal third quarter ended
Nov. 3, 2006.

The company previously announced the receipt of a NASDAQ Staff
Determination letter on Sept. 15, 2006, indicating that the
Company was not in compliance with the NASDAQ continued listing
requirements set forth in Marketplace Rule 4310(c) (14) due to
the delay in the filing of its Form 10-Q for the fiscal second
quarter ended Aug. 4, 2006.  On Nov. 2, 2006, the Company
appeared before the NASDAQ Listing Qualifications Panel to
present a plan for regaining compliance and to request continued
listing on The NASDAQ Stock Market.  The panel has not yet
rendered a decision.

The U.S. Securities and Exchange Commission and the company's
Audit Committee are conducting investigations into certain
accounting and financial reporting matters, including the
possibility of misstatements in prior period financial reports,
and the company previously received a related subpoena from the
United States Attorney for the Southern District of New York.
The company is delaying the filing of the Form 10-Q for its
fiscal third quarter ended Nov. 3, 2006 because of questions
raised in connection with those ongoing investigations.  The
company is committed to resolving the issues raised in
connection with the investigations, and regaining compliance
with all SEC filing requirements (including the filing of its
Forms 10-Q for the fiscal second and third quarters of 2007) and
all NASDAQ listing requirements, as soon as possible.

Headquartered in Round Rock, Texas, Dell Inc. (NASDAQ: DELL) --
http://www.dell.com/-- designs, develops, manufactures,
markets, sells, and provides support for various computer
systems and services to customers worldwide.  Dell Inc.'s global
presence includes operations in Chile.


FALCONBRIDGE: Xstrata's Chilean Union Snubs Wage Offer
------------------------------------------------------
A Chilean union at Xstratata plc, the parent firm of
Falconbridge Ltd., rejected a wage offer presented by management
in a bid to prevent a strike this week.

Falconbridge owned Altonorte before the firm was purchased by
Xstrata this year.

According to Bloomberg News, workers at the Altonorte copper
smelter refused a wage increase of 1 percentage point to 4
percentage points above inflation.

Altonorte produced 297,567 tons of almost pure copper in 2005,
Bloomberg says.  Union members make up 70% of the smelter's
workforce.

                        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.


VTR GLOBALCOM: Secures US$750MM Loans in First Leveraged Deal
-------------------------------------------------------------
VTR Globalcom SA got a US$750 million in the first leveraged
deal in Chile's banking sector, LatinLawyer Online reports.

LatinLawyer relates that VTR Globalcom received a three-layered
credit facility from local and international bank syndicates.

Citibank, Agencia en Chile and Banco Santander Chile granted VTR
Globalcom US$225 million and set up a revolving credit facility
worth US$25 million.  Foreign banks led by Toronto Dominion Bank
lent US$475 million, LatinLawyer says.

LatinLawyer underscores that the funds will be used to repay a
previous financing worth US$327 million and other intercompany
loans.  It will also be used to fund VTR Globalcom's future
capital requirements.

The deal is Latin America's first term B loan and first cross-
currency swap, as well as being the largest corporate syndicated
credit facility ever granted by local banks in Chile,
LatinLawyer notes.

"These factors required a lot of creativity when solving the
complexities that arose during structuring and completion,"
Pablo Iacobelli -- a representative from Carey y Cia, advisers
to VTR Globalcom -- told LatinLawyer.

VTR Globacom's advisers can be reached at:

          Jaime Martinez T.
          Pablo Iacobelli
          Carey y Cia
          Miraflores 222, 24th Floor
          Santiago, Chile
          Phone: (56-2) 365 7200
          Fax: (56-2) 633 1980

VTR Globalcom is the largest provider of broadband Internet
access in Chile.  It holds 86% of the cable television market.
It is also the second largest provider of residential telephone
service.  VTR Globalcom has over 2.2 million residential
subscribers, with 1.2 million digital cable television
subscribers, 300,000 Internet subscribers and 400,000 IP
telephony subscribers.  It is owned by the Liberty Media
conglomerate.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Aug. 1, 2006, Standard & Poor's Ratings Services assigned its
'B' long-term corporate credit ratings to VTR GlobalCom S.A.,
the largest Chilean cable TV operator.  The outlook is stable.

At the same time, Sandard & Poor's is assigning a 'B' senior
secured debt rating to the forthcoming senior secured credit
facilities for up to US$725 million, which consist of:

   -- Facility A for up to CLP124.5 billion (approximately
      US$225 million) with final maturity in 2013;

   -- Facility B for US$475 million (denominated in U.S.
      dollars) with final maturity in 2014; and

   -- A revolver facility for CLP13.8 billion (approximately
      US$25 million) with a final maturity 6.5 years after the
      first drawdown date.




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


CENTRAL PARKING: Declares US$0.015 Per Share Cash Dividend
----------------------------------------------------------
Central Parking Corp.'s board of directors has declared a
regular quarterly cash dividend of US$0.015 per share for the
company's common stock.  The quarterly cash dividend will have a
record date of Dec. 29, 2006 and will be distributed to
shareholders on Jan. 16, 2007.  Central Parking Corporation has
approximately 32 million shares of common stock outstanding.

Headquartered in Nashville, Tennessee, Central Parking Corp.
(NYSE: CPC) provides parking and transportation-related
services.  As of Sept. 30, 2006, the Company operated
approximately 3,100 parking facilities containing approximately
1.5 million spaces at locations in 37 states, the District of
Columbia, Canada, Puerto Rico, the United Kingdom, the Republic
of Ireland, Chile, Colombia, Peru, Spain, Switzerland, and
Greece.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Standard & Poor's Ratings Services placed its ratings on
Nashville, Tennessee-based Central Parking Corp., including the
'B+' corporate credit rating, on CreditWatch with negative
implications.  The company had about US$209.4 million of total
debt at June 30, 2006.




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


SHERRITT INT'L: DBRS Holds Sr. Unsec. Debt Rating's at BB (high)
----------------------------------------------------------------
Dominion Bond Rating Service confirmed the ratings of Sherritt
International Corporation, with the Senior Unsecured Debt rated
at BB (high) and the Convertible Subordinated Debentures at BB.
The trends are Stable.  The confirmation incorporates Sherritt's
excellent financial performance that has benefited from higher
pricing reflective of top-of the-cycle conditions in the
Company's businesses.  While the majority of Sherritt's earnings
base is volatile, the Company nonetheless has a diversified
product mix that has helped generate a consistent profitability
record and lower earnings volatility over time.

In June 2006, Sherritt, along with its partner, the Ontario
Teachers' Pension Plan, spun off the thermal Coal Prairie mines
assets, generating proceeds of US$128 million.  Sherritt
continues to operate the assets and maintains a 41.2% interest
in the divested entity, the Royal Utilities Income Fund.

The asset sale proceeds and primarily continued strong earnings
have enabled Sherritt to progressively de-leverage its balance
sheet and effectively attain its targeted capital structure;
gross debt-to-total capital improved from 53% as of year-end
2002 to 27% as of Sept. 30, 2006.

Leverage and other credit metrics of Sherritt are readily above
those normally associated with the assigned ratings, which
remain constrained by the Company's significant presence in
Cuba; the resulting uncertainty over that nation's transitioning
government and future direction further compound the issue.

Notwithstanding the RUIF spinoff, the Company maintains vast
coal assets in western Canada and remains committed to
developing new applications for these reserves, such as coal
gasification.  Similarly, in Oil and Gas, enhanced recovery
technologies are continuously being explored.  Sherritt is also
pursuing ambitious growth objectives in the Power and Metals
businesses; details are provided in the linked report in the
Description of Operations section.

Capital expenditures associated with the above growth
initiatives will be readily absorbed by strong cash flows, with
Sherritt continuing to accumulate cash.  Accordingly, the
Company repurchased 5 million common shares in 2005 and recently
announced another offer, expiring on Dec. 22, 2006, to
potentially repurchase a further 7.5 million shares.

Given the present consolidation activity in the mining industry,
another potential use of cash could be in the form of some
acquisition; Sherritt's Cuban operations render it a somewhat
unlikely target for acquisition.




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


DEL MONTE: Declares US$0.04 Per Share Cash Dividend
---------------------------------------------------
Del Monte Foods Co.'s board of directors has declared a cash
dividend on its common stock of US$0.04 per share.  The dividend
is payable on Feb. 1, 2007 to stockholders of record as of the
close of business on Jan. 18, 2007.

Headquartered in San Francisco, Calif., Del Monte Foods Co.
-- http://www.delmonte.com/-- produces and distributes
processed vegetables, fruit and tomato products, and pet
products.  The products are sold under Del Monte, Contadina,
S&W, Starkist, College Inn, 9Lives, Kibbles 'n Bits, Meow Mix,
Milk-Bone, Pup-Peroni, Snausages, Pounce, and Meaty Bone.  The
Group has food-processing plants in South America and has
subsidiaries in Venezuela, Colombia, Ecuador and Peru.  The
production facilities are operated in California, the Midwest,
Washington and Texas, as well as 7 distribution centers.

                        *    *    *

Standard & Poor's Ratings Services assigned on April 26, 2006,
its 'BB' bank loan ratings and '1' recovery ratings to Del Monte
Corp.'s proposed US$975 million add-on to its existing senior
secured term loan facilities, indicating the expectation of full
(100%) recovery of principal in the event of a payment default.

At the same time, Standard & Poor's affirmed its 'BB-' long-term
and 'B-1' short-term corporate credit ratings.  S&P said the
ratings outlook is negative.

                        *    *    *

Fitch Ratings revised on March 21, 2006, the Ratings Outlook for
Del Monte Food Company and Del Monte Corp. to Negative from
Stable.  The ratings have been affirmed as:

  Del Monte Foods Company (Parent):

    -- Issuer default rating 'BB'

  Del Monte Corp. (Operating Subsidiary):

    -- IDR 'BB'
    -- Senior secured bank facility 'BB+'
    -- Senior subordinated notes 'BB-'

Fitch's rating actions affect Del Monte's US$1.3 billion of debt
outstanding as of Jan. 29, 2006.




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


CUSCATLAN DE EL SALVADOR: Fitch Puts BB IDR on Watch Positive
-------------------------------------------------------------
Fitch Ratings placed the ratings of various Cuscatlan
subsidiaries on Rating Watch Positive, following the
announcement that Citigroup will acquire these companies from
Panama's Corporacion UBC Internacional.

These ratings of Banco Cuscatlan were placed on Rating Watch
Positive:

Banco Cuscatlan de El Salvador:

   -- Long-term Issuer Default rating 'BB';

   -- Short-term foreign currency rating 'B'; and

   -- Support '5'.

At the same time, the Outlook on the following national-scale
ratings of UBCI's subsidiaries in Panama and Honduras was
revised to Positive from Stable:

Banco Cuscatlan de Panama:

   -- National scale long term rating 'A';

   -- Local corporate bonds 'A' and 'A'.

Banco Cuscatlan de Honduras:

   -- National scale long term rating 'A+';

   -- Local corporate bonds 'A+'.

After receiving regulatory approvals, Citigroup will acquire
most UBC International's subsidiaries, including those mentioned
above.  Upon conclusion of the transaction, Cuscatlan's
subsidiaries will benefit from the strong potential support of
the new and highly rated shareholder Citigroup.  With a
successful closing of the proposed transaction, estimated to
take place early in 2007, BCES' IDR will likely be upgraded to
El Salvador's country ceiling at 'BBB-', while the short term
and support ratings would also be increased to 'F2' and '2',
respectively.  In turn, the national scale ratings of Banco
Cuscatlan de Panama and Banco Cuscatlan de Honduras will likely
be upgraded to 'AAA' and 'AAA', respectively.

Banco Cuscatlan de El Salvador's Individual rating remains at
'D' due to bank's challenges in terms of capital adequacy, asset
quality and profitability.  This rating could also benefit over
time from the integration into Citigroup, depending on the scope
and timeframe of measures implemented to enhance Banco Cuscatlan
de El Salvador's risk management and its financial profile.

Fitch considers that the acquisition will provide Citigroup with
a robust franchise in Central America.  Cuscatlan's
subsidiaries, mostly focused on commercial and corporate
banking, will complement the recently announced acquisition of
Grupo Financiero Uno, prominently focused on retail lending,
especially through credit cards.  Overall prospects continue to
be positive for the region.




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


CENTRAL AMERICAN: Moody's Lifts Rating on 9% Senior Notes to B1
---------------------------------------------------------------
Moody's upgraded the rating for The Central American Bottling
Corp. aka CABCORP's 9% senior unsecured notes, due 2009, to B1
from B2, and assigned a corporate family rating of B1.  The
rating outlook is stable.

"The upgrade reflects CABCORP's relatively healthy credit
metrics and financial policies, and its solid operating
performance since the company was first rated by Moody's in
February 2004," said Moody's analyst Sebastian Hofmeister.

CABCORP's B1 CFR is based on the company's valuable beverage
franchises and its role as PepsiCo's anchor bottler in Central
America.  In the context of Moody's Rating Methodology for the
Global Soft Beverage Industry, CABCORP receives Baa scores on
market position, product innovation and product diversity, which
are supported by consistent local market execution and the
access to PepsiCo's broad brand portfolio.  Scores of Ba and Baa
for credit metrics as well as Ba for profitability also support
the rating.

Offsetting these strengths are CABCORP's limited, single-B type
scale, its modest track record of free cash flow generation and
a pronounced emerging markets exposure.  The latter two factors
explain most of the gap between the B1 CFR and the Ba2 yielded
by Moody's Soft Beverage Rating Methodology.

Headquartered in Guatemala City, Guatemala, The Central American
Bottling Corporation is the anchor bottler for PepsiCo (rated
Aa3, positive) in the Central American countries of Guatemala,
its largest market in terms of sales and earnings, Nicaragua,
Honduras and El Salvador.  CABCORP generates most its volume
from carbonated soft drinks or CSD but continues to grow its
non-CSD categories such as beer, juice, nectars and isotonic and
energy drinks, which currently account for about 14% of total
sales volume when including joint ventures.  For the 12 months
ended Sept. 30, 2006, sales reached about US$401 million.


UNIVERSAL CORPORATION: Plans To Sell Non-Tobacco Businesses
-----------------------------------------------------------
Universal Corp. disclosed that as part of its strategy for
enhancing shareholder value, it has adopted a plan to sell its
remaining non-tobacco agri-products businesses.  Those
businesses include a U.K. trading company that handles nuts,
dates, and apricots; trading companies in Richmond, Virginia,
and Seattle, Wash., which handle nuts and dried fruits; and a
California nut processing company.  In the fiscal year that
ended on March 31, 2006, these businesses reported combined
revenues of about US$325 million and a combined operating loss
of approximately US$6 million.

The businesses to be sold do not fit the company's renewed
strategic focus on its core tobacco business, and will be
reported as discontinued operations in the company's financial
statements for the third fiscal quarter, which will end on
Dec. 31, 2006.  The company will use the proceeds from the sales
to strengthen its balance sheet. The divestiture plan, which is
expected to be completed within the next six to twelve months,
will allow the company to focus its financial and management
resources on its tobacco business.

Based in Richmond, Virginia, Universal Corp., (NYSE:UVV) --
http://www.universalcorp.com/-- has operations in tobacco and
agri-products.  The company, through its subsidiaries, is one of
two leading independent tobacco merchants in the world.
Universal Corp.'s gross revenues for the fiscal year that ended
on March 31, 2006, were approximately US$3.5 billion, which
included US$1.4 billion related to operations that were sold on
Sept. 1, 2006.

Universal Corp. has operations in India, Brazil, Argentina, the
United States, Guatemala, Brazil, the Netherlands, Belgium and
other countries in Europe.

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy,
Natural Product Processors, Packaged Food Processors and
Agricultural Cooperative sectors, the rating agency confirmed
its Ba1 Corporate Family Rating for Universal Corporation, and
downgraded its Ba1 rating to Ba2 on the company's US$563 million
MTN.  Moody's assigned an LGD5 rating to the debt obligation,
suggesting noteholders will experience a 73% loss in the event
of a default.


* GUATEMALA: IMF Says Economic Performance Has Improved
-------------------------------------------------------
An IMF mission visited Guatemala during Oct. 16 to 27 and Dec.
12 to 15 to hold the 2006 Article IV discussions with Guatemala,
to review economic developments, and the authorities' policy
plans.  The mission met with Central Bank Governor Maria
Antonieta de Bonilla, Finance Minister Hugo Beteta,
Superintendent of Banks Willy Zapata, other senior public sector
officials, political leaders, and representatives of congress,
the private sector, banks, and social organizations.

Gabriel Lopetegui, Deputy Division Chief in the Western
Hemisphere Department, led the staff mission and issued this
statement:

"Economic performance and prospects in Guatemala have improved
markedly since last year's consultation.  Growth is increasing,
to 4-1/2% in 2006; inflation is expected, for the first time in
several years, to decline below 6%; fiscal performance has been
better than originally envisaged; and net international reserves
have increased to over 4 months of imports of goods and
services.

"These gains partly reflect the prudent macroeconomic policy
framework, anchored in low debt and deficits, but also the
important progress that has been made in many areas of
structural reform, including access to CAFTA-DR, in last July.
The resolution of Bancafe, a large bank that was hurt by
financial problems in its offshore affiliate following the
failure of Refco in 2005, has proceeded relatively smoothly.

"Looking ahead, the macroeconomic outlook is positive, and the
mission's work focused on steps to strengthen the financial
system.  The mission supported the authorities' plans to
continue strengthening regulation and supervision of banks and
made a number of technical recommendations.  In the fiscal area,
the main challenge is to secure the passage of a tax reform that
brings in resources to address important social objectives.
Regarding monetary and exchange-rate policies, the mission made
recommendations to continue improving the inflation-targeting
regime, including allowing more exchange-rate flexibility to
facilitate liquidity control and economic adjustment to shocks.

"The mission's recommendations are summarized in a brief
concluding statement that was left with the authorities.  The
mission will be preparing a report that will be considered by
the IMF's Executive Board in early 2007."

                        *    *    *

As reported on the Troubled Company Reporter on Oct. 30, 2006,
Standard & Poor's Ratings Services affirmed its 'BB' long-term
foreign and 'BB+' long-term local currency sovereign credit
ratings on the Republic of Guatemala.  Standard & Poor's also
affirmed its 'B' short-term sovereign credit ratings on the
republic.  S&P said the outlook on the ratings remains stable.

Fitch also maintained an Issuer Default rating to the Republic
of Guatemala at 'BB+' (local and foreign currency) with a stable
outlook, while the country ceiling is 'BBB-'.  This is in
connection with the recent intervention of Guatemala's fourth
largest bank, Bancafe and the potential implications for the
national banking system.


* GUATEMALA: IDB Grants US$30 Mil. to Conserve Mayan Biosphere
--------------------------------------------------------------
The Inter-American Development Bank today approved a US$30
million loan to Guatemala for a sustainable development program
in the department of El Peten to promote the conservation of the
Mayan Biosphere Reserve.

El Peten, Guatemala's northernmost department, is home to
Central America's largest protected area, the Mayan Biosphere
Reserve.  The 21,130-km2 reserve, which covers 20 percent of the
country's territory, has a complex system of natural forests,
magnificent archeological sites and a unique cultural heritage.

The reserve, however, is under assault due to:

   -- a proliferation of illegal settlements,
   -- deforestation,
   -- forest fires,
   -- oilfields,
   -- smuggling of rare woods,
   -- wildlife and archeological pieces;
   -- unsustainable farming,
   -- ranching and logging; and
   -- the extreme poverty of a large portion of El Peten's
      population.

Guatemala's Ministry of the Environment and Natural Resources
will carry out the new program, which takes into account the
lessons learned, builds on the positive results and counters the
limited effectiveness of an outdated model of conservation that
largely excluded local stakeholders.

The program is based on a strategy for participative and
inclusive conservation for El Peten, which was shaped in a
process of broad consultations and workshops with local
communities, NGOs and municipal leaders, and endorsed by a high-
level interagency commission.

Loan resources will help finance investments in El Peten's
protected areas to strengthen participative conservation as well
as in buffer zones, where they will generate alternative sources
of income for the population.  They will also support
investments to improve the environmental management and reduce
pollution in the Lake Peten Itza watershed.

In order to promote El Peten as Guatemala's top tourism
destination and to generate economic alternatives to reduce the
pressure of agricultural expansion on the Mayan Biosphere
Reserve and protected areas in the south of El Peten, the
program will finance the creation of five tourism circuits
backed by the Guatemalan Tourism Institute, involving and
benefiting local communities.

In addition the program will support the construction and
equipment of museums and a school of community tourism, the
restoration of archeological sites and a road signage plan for
highways and tourism circuits in El Peten.

The program will also provide resources to strengthen
participating ministries, municipal governments and civil
society organizations in El Peten in order to increase their
management capabilities and ensure their continued presence in
the region.

Grants from Spanish, Finnish and Canadian funds supported the
preparation of the program.  In parallel, a complementary
project of the Global Environmental Facility was prepared.  This
project, which is pending approval, could provide US$4.1 million
in grant funds to finance technical assistance, training and
investments in projects in protected areas, providing incentives
for conservation and the sustainable use of biodiversity.

The program will be carried out over six years.  The loan is for
25 years, at a variable interest rate.

                        *    *    *

Fitch Ratings assigned these ratings on Guatemala:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BB+      Feb. 22, 2006
   Long Term IDR      BB+      Feb. 22, 2006
   Short Term IDR     B        Feb. 22, 2006
   Local Currency
   Long Term Issuer
   Default Rating     BB+      Feb. 22, 2006

Fitch also rated Guatemala's senior unsecured bonds:

Maturity Date          Amount        Rate       Ratings
-------------          ------        ----       -------
Aug. 3, 2007        US$150,000,000     8.5%         BB+
Nov. 8, 2011        US$325,000,000    10.25%        BB+
Aug. 1, 2013        US$300,000,000     9.25%        BB+
Oct. 6, 2034        US$330,000,000     8.125%       BB+




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


CONTINENTAL AIRLINES: Starts Nonstop Service to Honduras
--------------------------------------------------------
Continental Airlines begins new nonstop Saturday service from
its New York hub at Newark Liberty International Airport to
Roatan, Honduras, and to Bonaire, Netherlands Antilles.

Continental will operate a Boeing 737-700 with space for 12
customers in first class and 112 in coach on each of the
Saturday-only flights.

Roatan, located on the northern coast of Honduras, is a favorite
among scuba, golf and sport-fishing enthusiasts, and is a
popular gateway for eco-tourism in the diverse tropical region.
The flight is scheduled to depart New York/Newark at 9:50 a.m.
and arrive in Roatan at 1:35 p.m. The return flight will leave
Roatan at 2:25 p.m., arriving in New York/Newark at 8:10 p.m.

Bonaire, an island located in the southern Caribbean, is known
for its nature preserves, excellent scuba diving and
windsurfing, among other activities.  The new flight to Bonaire
will depart New York/Newark at 11:55 p.m. on Saturdays, arriving
in Bonaire at 5:40 a.m. on Sundays. The return flight will
depart Bonaire at 7 a.m. on Sundays and will arrive in New
York/Newark at 10:45 a.m.

The flights to Roatan and Bonaire are timed to allow for
convenient connections for passengers at Newark Liberty.
Continental also offers year-round service to Roatan and Bonaire
from Houston, Texas.

Continental Airlines serves 77 destinations in Latin America and
the Caribbean.

Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline.  Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout Mexico, Europe and Asia,
serving 154 domestic and 138 international destinations.  More
than 400 additional points are served via SkyTeam alliance
airlines.  With more than 43,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 61 million passengers
per year.  Continental consistently earns awards and critical
acclaim for both its operation and its corporate culture.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 10, 2006
Moody's Investors Service assigned ratings of Caa1, LDG5-75% to
the US$200 million of senior unsecured notes issued by
Continental Airlines, Inc.'s.  Moody's affirmed the B3 corporate
family rating.  Moody's said the outlook is stable.

As reported in the Troubled Company Reporter on Oct. 23, 2006,
Standard & Poor's Ratings Services affirmed its ratings,
including the 'B' long-term and 'B-3' short-term corporate
credit ratings, on Continental Airlines Inc.  The outlook is
revised to stable from negative.  Continental has about US$17
billion of debt and leases.

At the same time, Fitch Ratings has upgraded Continental
Airlines Inc.'s Issuer Default Rating (IDR) to 'B-' from 'CCC'
and Senior Unsecured Debt to 'CCC/RR6' from 'CC/RR6'.  Fitch
said the rating outlook was stable.




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


AVAYA INC: Earns US$48 Million in Fiscal Quarter Ended Sept. 30
---------------------------------------------------------------
Avaya Inc. reported a net income of US$48 million for the fourth
fiscal quarter ended Sept. 30, 2006.  Avaya's fourth fiscal
quarter 2006 revenues increased five percent to US$1.364 billion
compared to US$1.296 billion in the same period last year.

For the fourth fiscal quarter last year, the company reported a
US$660 million net income.  Those results included a tax benefit
of US$577 million from the reversal of the company's deferred
tax valuation allowance, restructuring charges and a charge for
in-process research and development.

At Sept. 30, 2006, the company reported US$5.2 billion in total
assets, US$3.1 billion in total liabilities, and US$2.1 billion
in total stockholders' equity.

The company reported a US$75 million operating income for the
fourth quarter of 2006 and, excluding the restructuring charges,
US$137 million.  In the year ago quarter, operating income was
US$82 million and excluding restructuring charges and a charge
for in-process research and development, US$107 million.

"We finished fiscal 2006 with a strong quarter," said Lou
D'Ambrosio, president and CEO, Avaya.  "The transition by
enterprises to IP telephony and Intelligent Communications
continued to drive growth in product sales and IP line
shipments.  Also in the quarter, we captured operating leverage
from our revenue growth and generated strong cash flow.  And we
took action to more effectively align our resources to capture
market opportunities and to improve our cost structure.

"As we move forward in fiscal 2007, we are focused on driving
growth and extending our market leadership around Intelligent
Communications, tenacious execution and productivity
enhancements to deliver sustained value creation," Mr.
D'Ambrosio said.

During the fourth fiscal quarter of 2006, Avaya incurred
restructuring charges of US$62 million pre-tax, primarily
related to workforce reductions in the United States and Europe.
Avaya also said it expects to incur additional restructuring
charges in the range of approximately US$65 million to US$75
million in the first half of fiscal 2007 related to workforce
reductions.  The savings from the fourth quarter of fiscal 2006
and first half of fiscal 2007 actions will be used to offset
increased compensation-related expenses and to enhance and
upgrade the company's workforce skills, reinvest in the business
to strengthen Avaya's competitiveness and support revenue
growth.

Once the company has completed these additional restructuring
actions, the company believes it should be able to reasonably
estimate and make an addition to its reserve for future post
employment benefits pursuant to Financial Accounting Standards
No. 112, relating to its European operations, of up to
approximately US$70 million.

For fiscal year 2006, Avaya reported net income of US$201
million  compared to net income of US$921 million in fiscal
2005, which result included a tax benefit of US$676 million.
The company generated operating cash flow of US$647 million in
fiscal 2006 compared to US$334 million in fiscal 2005.

Fiscal 2006 revenues were US$5.148 billion compared to fiscal
2005 revenues of US$4.902 billion.

Year-over-year revenues increased in both the company's products
and services segments, as well as across all geographic regions.
Worldwide product sales rose nine percent compared to the same
period last year, with IP line shipments increasing in the high
20 percent range.

Headquartered in Basking Ridge, New Jersey, Avaya, Inc.
(NYSE:AV) -- http://www.avaya.com/-- designs, builds and
manages communications networks for more than one million
businesses worldwide, including more than 90% of the FORTUNE
500(R).  The company's Latin American operations are located in
Mexico, Brazil and Argentina.   Avaya is a world leader in
secure and reliable Internet Protocol telephony systems and
communications software applications and services.

                         *     *     *

As reported in the Troubled Company Reporter on Jan. 21, 2005,
Moody's Investors Service upgraded the senior implied rating of
Avaya, Inc., to Ba3 from B1.  Moody's said the ratings outlook
is positive.


BANCO DEL BAJIO: Fitch Assigns BB+ Issuer Default Rating
--------------------------------------------------------
Fitch Ratings has assigned these ratings to Banco del Bajio,
with a Stable Rating Outlook:

   -- Long-term foreign currency Issuer Default Rating at 'BB+';

   -- Short-term foreign currency rating at 'B';

   -- Long-term local currency Issuer Default Rating at 'BB+';

   -- Short-term local currency rating at 'B';

   -- Individual at 'C/D';and

   -- Support at '5'.

At the same time, Fitch has affirmed Banco del Bajio's long term
and short term national-scale ratings at 'A+' and 'F1,
respectively.  The Outlook on the long-term national scale
remains Stable.

The ratings assigned to Banco del Bajio reflect steady
improvements in profitability and capitalization, while
maintaining sound asset quality despite robust loan growth.  The
ratings are constrained by a relatively concentrated funding
base, limited revenue diversification and its modest franchise
among Mexican banks.  The support rating reflects Fitch's belief
that external support, although possible, cannot be relied upon.

Created in 1994 in Leon Guanajuato, Banco del Bajio was
initially focused on SME and agriculture financing within its
region.  It has grown increasingly diversified both in terms of
business lines and geographical regions.  Its loan portfolio is
well balanced among companies, individuals and financial
entities.  A large portion of total lending has some type of
guarantees, which explains the bank's low portion of past due
loans and historically modest charge-offs.

Capital levels have grown in line with balance sheet expansion,
underpinned by retained earnings, capital contributions from
controlling owners and the incorporation of institutional
shareholders.

Profitability has steadily improved due to higher business
volumes and strengthening efficiency ratios, while it also
reflects significant non-recurring revenues in 2006.  Liquidity
remains somewhat limited due to rapid loan growth and a
relatively concentrated funding base.  In addition to improve
the funding mix, the bank's main challenges are to enhance
revenue diversification and to sustain asset quality following
dramatic asset growth in recent years.

Banco del Bajio is the eighth largest bank in Mexico with an
overall market share of roughly 2% of loans and deposits.
However, it is one of the largest and fastest growing regional
banks in Mexico.  Three groups of national investors own a 49%
stake in the bank, Sabadell and the IFC control 20% and 10%,
respectively, and the balance is widely held.  Banco del Bajio
has entered into the mortgage and construction sectors through
the acquisition of two specialized mortgage lenders in 2004 and
2005.  These companies and a factoring entity are Banco del
Bajio's sole subsidiaries, while it also has a 50% stake in the
pension fund management company Afore Afirme Bajio, created in
2005.  As of September, Bajio had roughly US$3.9 billion in
assets, loans for US$3 billion and equity of US$418 million.


CONTINENTAL AIR: Schedules US$292-Mil. 4th Qtr. Debt Payments
-------------------------------------------------------------
Continental Airlines Inc. disclosed that its scheduled debt and
capital lease principal payments for the fourth quarter 2006 are
estimated to be approximately US$292 million.

The company also disclosed that it had hedged, as of Dec. 11,
approximately 36% of its projected fuel requirements for the
fourth quarter, using petroleum swap contracts, with a weighted
average price of US$72.36 per barrel, and another 3% with zero
cost collars on jet fuel.  The company had also hedged about 18%
of its projected fuel requirements for the first quarter 2007,
using petroleum swap contracts with a weighted average price of
US$67.46, and another 8% with zero cost collars on heating oil.

                   Fourth Quarter Outlook

The company expects to record income of approximately US$26
million for the full year 2006 related to the tax sharing
agreement with ExpressJet.

Pension plans contributions of the company totaled US$246
million and estimates its non-cash pension expense will be
approximately US$159 million for calendar year 2006, which
excludes year-to-date settlement charges of US$37 million
related to lump-sum distributions from the pilot's frozen
defined benefit plan.

The company also expects to record stock option expense of
US$6 million for the fourth quarter and US$26 million for the
full year 2006.

Cargo, mail and other revenue is estimated by the company to be
between US$280 million and US$290 million for the fourth quarter
2006.

The company further disclosed that it anticipates ending the
year 2006 with an unrestricted cash and short-term investments
balance of between US$2.4 and US$2.5 billion.

Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline.  Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout Mexico, Europe and Asia,
serving 154 domestic and 138 international destinations.  More
than 400 additional points are served via SkyTeam alliance
airlines.  With more than 43,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 61 million passengers
per year.  Continental consistently earns awards and critical
acclaim for both its operation and its corporate culture.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 10, 2006
Moody's Investors Service assigned ratings of Caa1, LDG5-75% to
the US$200 million of senior unsecured notes issued by
Continental Airlines Inc.'s.  Moody's affirmed the B3 corporate
family rating.  Moody's said the outlook is stable.

As reported in the Troubled Company Reporter on Oct. 23, 2006,
Standard & Poor's Ratings Services affirmed its ratings,
including the 'B' long-term and 'B-3' short-term corporate
credit ratings, on Continental Airlines Inc.  The outlook is
revised to stable from negative.  Continental has about US$17
billion of debt and leases.

At the same time, Fitch Ratings has upgraded Continental
Airlines Inc.'s Issuer Default Rating to 'B-' from 'CCC' and
Senior Unsecured Debt to 'CCC/RR6' from 'CC/RR6'.  Fitch said
the raating outlook was stable.


DIRECTV INC: Discloses Terms of DVB-S2 Licensing Offer
------------------------------------------------------
The DIRECTV Group, RAI and ESA, the holders of key DVB (Digital
Video Broadcasting)-S2 intellectual property rights, disclosed
the fundamental terms of a comprehensive licensing offering
under their combined patent rights for DVB-S2 standardized
technology.

The offering will set limits on cumulative royalties paid for
the licensing of intellectual property rights in order to speed
adoption of the DVB-S2 standard. DVB-S2 is the second-generation
DVB system for broadband satellite communications, covering
digital TV and HDTV broadcasting, interactive services, and
professional links by satellite.

The three rights holders will jointly offer a license under
their combined portfolios of intellectual property rights
necessary for the implementation of DVB-S2.  For consumer
applications, such as satellite television set-top box
receivers, a license under the combined portfolios will not
exceed US$0.50 per product in quantities exceeding 500,000 over
the term of the license and not to exceed US$1.00 per product in
lower quantities.  Licenses for consumer applications will be
granted for five-year terms.  Renewals will be granted on fair
and reasonable terms based on then-current market conditions.

Free-to-air and pay-TV broadcasters will not be required to pay
a separate service license fee to broadcast to licensed
receivers.  The per product royalties and the arrangements for
broadcasters are geared to help launch DVB-S2 technology and
follow the commitment of the rights holders to offer licenses on
fair, reasonable and non-discriminatory terms.

"We feel that it is important to confirm to the marketplace that
the cumulative royalties for the licensing of known essential
IPRs will indeed be fair and reasonable," said Dr. Alberto
Morello, Director of the RAI Research Centre.

"DIRECTV developed essential DVB-S2 coding technology to
significantly expand the capacity of its direct-to-home
broadcast business.  By confirming that a license under the
DIRECTV, RAI and ESA patents will not exceed US$0.50 per
consumer product -- with no additional service royalties or
other service fees owed by free-to-air and pay-TV broadcasters -
- manufacturers and service providers will now be able to set
their business models to take advantage of this important
technology," added Romulo Pontual, Executive Vice President and
Chief Technology Officer of DIRECTV.

"We expect that these conditions will foster a rapid adoption of
this innovative standard by the global satellite broadcast and
telecommunication industry," concluded Giuseppe Viriglio, ESA
Director of Telecommunication and Navigation.

The licensing model under the combined portfolio for interactive
and professional applications such as pay-TV, data
broadcasting/internet access and satellite news gathering will
be announced shortly. DIRECTV, RAI and ESA, however, confirmed
that the cumulative royalties for the related equipment (e.g.,
modulators, demodulators, etc.) are not expected to exceed 1-2%
of the equipment cost.

For broadcast applications (using QPSK and 8PSK modulations
only) the licensing program will be administered by DIRECTV.
Inquiries may be directed to John T. Whelan at
john@baysidelaw.com.

For other cases, including, for example,
professional/interactive applications and advanced broadcasting
using 16APSK and 32APSK, the program will be administered by
each entity.  Inquiries maybe directed to:

          -- DIRECTV: John T. Whelan at john@baysidelaw.com;
          -- RAI: Alberto Morello, at a.morello@rai.it;
          -- ESA: Luz Becker at luz.becker@esa.int.

The rights holders are nearing completion of work on a form of
license agreement. Entities that believe they hold patents
essential to the DVB-S2 technology are encouraged to contact Mr.
Whelan at john@baysidelaw.com.

                         About RAI

RAI (Radiotelevisione Italiana) is the Italian public
broadcaster for radio and television over the air, via satellite
and cable, or any other means.  It provides program production
and network operation for three national analog television
channels broadcast in VHF/UHF bands. These programs are re-
broadcast in digital format by satellite and in two terrestrial
bouquets, including a growing number of thematic channels in
clear.  It provides also production and network operation for
three radio channels, broadcast in MW and FM, and international
radio programs in SW.

                         About ESA

The European Space Agency is an international organization, with
17 member states, set up to provide for and to promote, for
exclusively peaceful purposes, cooperation among European states
in space research and technology and their space applications.
ESA draws up a European space plan and has the task of carrying
it out.  Its activities span the fields of space science, Earth
observation, telecommunications, satellite navigation, human
spaceflight, microgravity research, exploration and space
transportation systems.  ESA has its headquarters in Paris,
France, with establishments in The Netherlands, Germany, Italy
and Spain; a launch base in Kourou, French Guiana; and offices
in Washington, Moscow and Brussels.

                      About DIRECTV

The DIRECTV Group, Inc., formerly Hughes Electronics
Corp., headquartered in El Segundo, California, is a
world-leading provider of multi-channel television
entertainment, and broadband satellite networks and services.
The DIRECTV Group, Inc. with sales in 2004 of approximately
USUS$11.4 billion is 34% owned by Fox Entertainment Group, Inc.,
which is owned by News Corp.  DIRECTV is currently
available in Latin American countries: Argentina, Brazil, Chile,
Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras,
Mexico, Nicaragua, Panama, Puerto Rico, Trinidad & Tobago,
Uruguay, Venezuela and several Caribbean island nations.

                        *    *    *

On June 8, 2005, Moody's assigned a Ba2 rating to DIRECTV's
USUS$1 billion senior unsecured notes.  Moody's said the rating
outlook is stable.


GENERAL MOTORS: Expects US$1 Million of Truck Sales in 2007
-----------------------------------------------------------
General Motors Corp. anticipates selling more than US$1 million
pickup trucks in the North America market next year, Reuter
reports.

According to the source, analysts predict that unstable gasoline
prices and slow housing would strike pickup sales in 2007.  In
addition, GM's competitors Ford Motor Co. and DaimlerChrysler
AG's Chrysler Group, are offering heavy discounting and big
incentives on their older models.

GM product chief Bob Lutz told Reuters that the level of pickups
discounting is new territory and said that incentives of
US$7,000 to US$8,000 per vehicle are not sustainable.   Mr. Lutz
remains confident that GM will able to sell its vehicles at a
very good profit.

Reuters discloses that GM launched the Chevrolet Silverado and
the GMC Sierra in November.  Mr. Lutz expects the two models,
which boast industry-leading fuel saving features, to sell at a
good price for a few months.  The company offered cash rebates
of US$4,000 on its 2006 Silverados and Sierras.

Reuters relates that the company plans to recover from a US$10.6
billion loss in 2005 by job layoffs and plants shutdown.
Improving new products and pickup trucks sales are another step
at recovery, Reuter adds.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 327,000
people around the world including Brazil and Mexico in Latin
America.  It has manufacturing operations in 33 countries and
its vehicles are sold in 200 countries.  GM sells cars and
trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 16, 2006,
Standard & Poor's Ratings Services assigned its 'B+' bank loan
rating to General Motors Corp.'s proposed US$1.5 billion senior
term loan facility, expiring 2013, with a recovery rating of
'1'.  The 'B+' rating was placed on Creditwatch with negative
implications, consistent with the other issue ratings of General
Motors, excluding recovery ratings.

As reported in the Troubled Company Reporter on Nov. 14, 2006,
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
proposed US$1.5 billion secured term loan of General Motors
Corp.  The term loan is expected to be secured by a first
priority perfected security interest in all of the US machinery
and equipment, and special tools of General Motors and Saturn
Corp.


KRISPY KREME: Delays Filing Report for Third Qtr. Ended Oct. 29
---------------------------------------------------------------
Krispy Kreme Doughnuts Inc. will be unable to timely file a
quarterly report on Form 10-Q for the third quarter ended
Oct. 29, 2006.

The company's filing with the Securities and Exchange Commission
on Dec. 11, 2006, disclosed that the delay is due to the
substantial resources devoted in completing its annual report on
Form 10-K for fiscal 2006, filed on Oct. 31, 2006, and its
quarterly reports on Form 10-Q for the first three quarters of
fiscal 2006, filed on Nov. 9, 2006.

In addition, the company has also been devoting substantial
resources to complete its quarterly reports on Form 10-Q for the
first two quarters of fiscal 2007.  Due to the substantial
resources devoted to these reports, the Company was unable to
finalize its quarterly report on Form 10-Q for the third quarter
of fiscal 2007 before the filing deadline of Dec. 8, 2006.

Michael C. Phalen, chief financial officer, also disclosed that
the company has not yet filed its Quarterly Reports on Form 10-Q
for the first two quarters of fiscal 2007 or the third quarter
of fiscal 2005 or its Annual Reports on Form 11-K for the
periods ended Dec. 31, 2005, and 2004.

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.

The U.S. District Court for the Middle District of North
Carolina has set Feb. 7, 2007, as the hearing date for the final
approval of the terms of the settlement of the shareholder
derivative action entitled Wright v. Krispy Kreme Doughnuts
Inc., et al.


SATELITES MEXICANOS: Loses US$38.9-Mil. Lawsuit Against Boeing
--------------------------------------------------------------
Published reports say that Satelites Mexicanos, SA de CV, aka
Satmex lost a US$38.9 million lawsuit against Boeing Satellite
Services, a US aerospace company.

Satmex sought for US$38.9 million in damages against Boeing
Satellite after the loss of the former's Solidaridad I satellite
in 2000, seeking to share the responsibility.  Boeing Satellite
had manufactured Solidaridad I.

Business News Americas relates that the Solidaridad I suffered
technical problems that shut it down after its launch.

BNamericas underscores that judges presiding over the case ruled
that Satmex must pay Boeing Satellite's legal fees for the suit.

The fees are estimated around US$3.89 million or 10% of the
damages claim, El Norte notes.

Thomas Heather, the restructuring advisor of Satmex, told La
Jornada that the company does not expect that the court ruling
will affect its financial status.

Satmex received in 2001 a US$250-million insurance payment for
Solidaridad I from insurer Comercial America, BNamericas states.

The restructuring advisor can be reached at:

          Thomas S. Heather
          White & Case, S.C.
          Torre del Bosque - PH
          Blvd. Manuel Avila Camacho #24
          Col Lomas de Chapultepec
          11000 Mexico, D.F.
          Mexico
          Phone: 5255 5540 9600
          Fax: 5255 5540 9699

Satelites Mexicanos, SA de CV, provides fixed satellite services
in Mexico.  Satmex provides transponder capacity via its
satellites to customers for distribution of network and cable
television programming, direct-to-home television service, on-
site transmission of live news reports, sporting events and
other video feeds.  Satmex also provides satellite transmission
capacity to telecommunications service providers for public
telephone networks in Mexico and elsewhere and to corporate
customers for their private business networks with data, voice
and video applications.  Satmex also provides the government of
the United Mexican States with approximately 7% of its satellite
capacity for national security and public purposes without
charge, under the terms of the Orbital Concessions.

The Debtor filed for chapter 11 petition on Aug. 11, 2006,
(Bankr. S.D.N.Y. Case No. 06-11868).  Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings.  Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice
in the Debtor's Mexican Bankrutpcy proceedings.  UBS Securities
LLC and Valor Consultores, SA de CV, give financial advice to
the Debtor.  Steven Scheinman, Esq., Michael S. Stamer, Esq.,
and Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld
LLP give legal advice to the Ad Hoc Existing Bondholders'
Committee.  Dennis Jenkins, Esq., and George W. Shuster, Jr.,
Esq., at Wilmer Cutler Pickering Hale and Dorr LLP give legal
advice to Ad Hoc Senior Secured Noteholders' Committee.  As of
July 24, 2006, the Debtor has US$905,953,928 in total assets and
US$743,473,721 in total liabilities.

On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the Company (Bankr. S.D.N.Y. Case No. 05-13862).  On
June 29, 2005, Satmex filed a voluntary petition for a Mexican
reorganization, known as a Concurso Mercantil, which was
assigned to the Second Federal District Court for Civil Matters
for the Federal District in Mexico City.

On Aug. 4, 2005, Satmex filed a petition, pursuant to Section
304 of the Bankruptcy Code that commenced a case ancillary to
the Concurso Proceeding and a motion for injunctive relief that
sought among other things, to enjoin actions against Satmex or
its assets (Bankr. S.D.N.Y. Case No. 05-16103).

Satmex concluded its reorganization efforts on Nov. 30, 2006,
and emerged from its U.S. bankruptcy case.  The company
consummated its U.S. chapter 11 plan of reorganization, which
was confirmed by the United States Bankruptcy Court for the
Southern District of New York by order dated Oct. 26, 2006, and
implemented the restructuring approved in Satmex's Mexican
Concurso Mercantil proceeding by the Concurso Plan Order issued
on July 14, 2006.


UNITED RENTALS: Appoints Jenne Britell to Board of Directors
------------------------------------------------------------
United Rentals, Inc., appointed Jenne K. Britell, Ph.D., to the
company's board of directors.  Dr. Britell is chairman and chief
executive officer of Structured Ventures, Inc., advisors to
private equity and venture capital firms.  She has served in
this capacity since 2001.

Dr. Britell is a former senior executive of GE Capital, the
Financial Services subsidiary of General Electric.  At GE
Capital, she most recently served as the executive vice
president of Global Consumer Finance and president of Global
Commercial and Mortgage Banking. Previously, she was president
and chief executive officer of GE Capital, Central and Eastern,
Europe based in Vienna.  Before joining GE Capital, she held
significant management positions with Dime Bancorp, Inc.,
HomePower, Inc., Citicorp, and Republic New York Corporation.
Earlier, she was the founding chairman and chief executive
officer of the Polish-American Mortgage Bank in Warsaw, Poland.

Dr. Britell is a director of three NYSE companies:

   -- Crown Holdings, Inc.,
   -- Quest Diagnostics, Inc., and
   -- West Pharmaceutical Services, Inc.,

Dr. Britell is also a director of the US-Russia Investment Fund,
a sustaining trustee of the Fox Chase Cancer Center, and is
involved in other not-for-profit organizations.  She holds a
Ph.D. and Master of Science degrees from Columbia University,
and Bachelor of Arts and Master of Arts degrees from Harvard
University.

Bradley Jacobs, chairman of United Rentals, said, "We are
delighted to welcome Jenne Britell to our board, which now has
13 members, and look forward to benefiting from her wealth of
business experience."

Greenwich, Conn.-based United Rentals Inc. (NYSE: URI) --
http://unitedrentals.com/-- is an equipment rental company,
with an integrated network of more than 760 rental locations in
48 states, 10 Canadian provinces, and Mexico.  The company's
13,900 employees serve construction and industrial customers,
utilities, municipalities, homeowners and others. The company
offers for rent over 20,000 classes of rental equipment.  United
Rentals is a member of the Standard & Poor's MidCap 400 Index
and the Russell 2000 Index(R).

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 12, 2006,
Moody's Investors Service upgraded the ratings of United Rentals
Inc. -- corporate family rating to B1 from B2; senior secured to
B1 from B2; senior unsecured to B2 from B3; senior subordinate
to B3 from Caa1; quarterly income preferred securities to Caa1
from Caa2; and, speculative grade liquidity rating to SGL-2 from
SGL-3.  Moody's said the rating outlook is stable.

As reported in the Troubled Company Reporter on Aug. 29, 2006,
Standard & Poor's Ratings Services removed the ratings,
including its 'BB-' corporate credit rating, on equipment rental
company United Rentals (North America) Inc. and on its parent,
United Rentals Inc., from CreditWatch with developing
implications.


VISTEON CORP: Names Two Chief Officers to Board of Directors
------------------------------------------------------------
Visteon Corp. elected Richard J. Taggart, executive
vice president and chief financial officer for Weyerhaeuser Co,
and Donald J. Stebbins, Visteon president and chief operating
officer, to the company's board of directors, effective
Dec. 15, 2006.

Mr. Taggart has spent nearly 30 years in positions of increasing
responsibility at Weyerhaeuser, North America's largest forest
products company with 2005 revenue of US$22.6 billion.  Mr.
Taggart was named to his current position at Weyerhaeuser in
2003 after serving as vice president, finance; vice president
and treasurer; and vice president, investor relations.

"Richard Taggart is an insightful business leader with strong
financial knowledge and background," said Michael F. Johnston,
Visteon chairman and chief executive officer.  "He will bring a
wealth of experience to serve our shareholders well."

Mr. Stebbins brings more than 20 years business experience in a
number of financial and operational roles.  He joined Visteon in
2005 from Lear Corp., where he last served as president and
chief operating officer of the company's operations in Europe,
Asia and Africa.  During his tenure at Lear, Mr. Stebbins
progressed through a variety of senior leadership roles,
including serving as senior vice president and chief financial
officer.

"Don's solid understanding of the business dynamics that Visteon
must address to succeed has led to significant improvements in
our operations," Mr. Johnston said.  "He will add valuable
perspective to the board as we continue to execute our three-
year plan to position Visteon for sustainable success."

Visteon also disclosed that Marla C. Gottschalk will be stepping
down from the board.  Ms. Gottschalk, chief executive officer of
The Pampered Chef, Inc., has been a Visteon director since March
2003.

"Marla has been a valued member of our board, and Visteon has
benefited from her contributions," Johnston said.

As Visteon's board of directors continues to evaluate its
composition, it expects to increase its size to accommodate
another addition to the board in 2007.

Headquartered in Van Buren Township, Michigan, Visteon Corp.
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers.  With corporate offices in
the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the
company has more than 170 facilities in 24 countries, including
Mexico, and employs approximately 50,000 people.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 5, 2006,
Standard & Poor's Ratings Services affirmed its bank loan and
recovery ratings on auto supplier Visteon Corp.'s senior secured
bank facility, following the announcement that the company will
increase its term loan to US$1 billion from US$800 million.

The secured loan rating is 'B' and the recovery rating is '2',
indicating the expectation for substantial (80%-100%) recovery
of principal in the event of a payment default.


WERNER LADDER: Court Okays Expansion of PwC's Duties as Auditor
--------------------------------------------------------------
The Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the
District of Delaware granted the request of Werner Holding
Co. (DE), Inc., aka Werner Ladder Company, and its debtor-
ffiliates to expand the scope of PricewaterhouseCoopers LLP's
employment as their tax advisors and auditors, subject to the
terms and conditions of the two engagement letters dated
Sept. 7, 2006, between the Debtors and PwC.

As reported in the Troubled Company Reporter on Nov. 21, 2006,
PwC agreed to provide these additional services:

   (1) audit the Werner Holding Co. (DE), Inc., Employee Savings
       Plan as required by the Employees Retirement Income
       Security Act of 1974, as subsequently amended;

   (2) audit the Retirement Plan for Employees of Werner Holding
       (DE), as required by ERISA; and

   (3) perform all other tax and auditing services as may be
       requested by the Debtors in their Chapter 11 cases.

Under the supplement application, the Debtors will pay for the
Additional Services based on the hourly rates of PwC's
personnel:

            Designation                   Hourly Rate
            -----------                   -----------
            Partner                          US$600
            Manager                          US$280
            Senior Associate                 US$200
            Associate                        US$130
            Intern                           US$100
            Administrative Staff              US$80

The Debtors will also reimburse PwC for its reasonable expenses
incurred in connection with the provision of the Additional
Services.

Judge Carey rules that if the Debtors seek to retain PwC to
provide other tax and auditing services, no later than 10
business days of an engagement, the Debtors will file a notice
with the Court either:

   (a) annexing a copy of the engagement letter; or

   (b) summarizing the services to be performed and serve the
       notice on the U.S. Trustee, counsel to the Official
       Committee of Unsecured Creditors, counsel to the Ad Hoc
       Committee of Second Lien Note Holders, and counsel to the
       DIP Lenders.

If an objection to the other services is filed within 10 days of
the service of the notice, Judge Carey directs the Debtors to
seek the Court's approval of the engagement, provided that PwC
will be entitled to receive compensation and reimbursement, also
subject to Court approval.

If no objection to the notice is timely filed, the Debtors will
submit for Court approval, under certification of counsel, an
order authorizing the further retention of PwC.

Judge Carey further rules that PwC will be compensated in
accordance with the procedures under Sections 330 and 331 of the
Bankruptcy Code, and other applicable Bankruptcy Rules and Local
Rules of the Court.

Judge Carey instructs PwC to submit time records in a summary
format that will describe the services rendered by each of the
firm's professional and the amount of time spent on each date,
in half-hour or whole-hour increments.

Judge Carey also authorizes the Debtors to indemnify PwC in
accordance with the PwC Agreements, but not for any claim in
connection with PwC's postpetition performance of any services
other than the services under the PwC Agreements unless the
services and indemnification are approved by the Court.

Judge Carey notes that the Debtors have no obligation to
indemnify PwC or provide contribution or reimbursement for any
claim or expense that is either:

   (a) judicially determined to have arisen from PwC's gross
       negligence or willful misconduct; or

   (b) settled prior to a judicial determination as to PwC's
       gross negligence or willful misconduct, but determined
       by the Court to be a claim or expense for which PwC
       should not receive indemnity, contribution or
       reimbursement under the terms of the Supplemental
       Application and the PwC Agreements, as modified by the
       Court.

If before the earlier of the confirmation of the Debtors'
Chapter 11 plan and the closing of the Debtors' Chapter 11
cases, PwC believes that it is entitled to the payment of any
amounts by the Debtors on account of indemnification,
contribution or reimbursement obligations under the PwC
Agreements and the Supplemental Application, Judge Carey says
PwC must file an application with the Court and the Debtors may
not pay the amounts to PwC until the Court approves the payment.

Brian W. Smith, a partner at PwC, reiterates that the firm is a
disinterested person as the term is defined Sections 101(14) and
1107(b) of the Bankruptcy Code, and that the firm represents no
interest adverse to the Debtors and their estates.

Headquartered in Greenville, Pennsylvania, Werner Co.
-- http://www.wernerladder.com/-- manufactures and distributes
ladders, climbing equipment and ladder accessories.  The company
has a manufacturing facility in Mexico.  The company and three
of its affiliates filed for chapter 11 protection on
June 12, 2006 (Bankr. D. Del. Case No. 06-10578).

The firm of Willkie Farr & Gallagher LLP serves as the Debtors'
counsel.  Kara Hammond Coyle, Esq., Matthew Barry Lunn, Esq.,
and Robert S. Brady, Esq., Young, Conaway, Stargatt & Taylor,
LLP, represents the Debtors as its co-counsel.  The Debtors have
retained Rothschild Inc. as their financial advisor.  Greenberg
Traurig LLP is counsel to the Official Committee of Unsecured
Creditors.  Jefferies & Co serves as the Committee's financial
advisor.

At March 31, 2006, the Debtors reported total assets of
US$201,042,000 and total debts of US$473,447,000.  (Werner
Ladder Bankruptcy News, Issue No. 14; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


WERNER LADDER: Wants to Implement Union Workers' Severance Plan
---------------------------------------------------------------
Werner Holding Co. (DE), Inc., aka Werner Ladder Company, and
its debtor-affiliates seek authority from U.S. Bankruptcy Court
for the Southern District of New York to implement a severance
plan for hourly union employees at their facility in Chicago,
Illinois, who will permanently lose their jobs.

In 2005, the Debtors decided to transfer their operations from
the relatively high cost Chicago Facility to their facility in
Juarez, Mexico.  At the end of the transition, the Chicago
Facility will be closed and substantially all of the employees
will be terminated.  The Debtors anticipate their operational
restructuring to be completed in the first quarter of 2007.

Currently, there are about 432 hourly employees at the Chicago
Facility, of which 429 are members of the Allied Production
Workers Union Local No. 12, AFL, CIO.  To insure the continued
productivity at the Chicago Facility, the Debtors and the
Chicago Union had entered into a new collective bargaining
agreement to replace their original CBA that expired on
July 17, 2006.  The new CBA took effect on July 18, 2006.

According to Joel A. Waite, Esq., at Young, Conaway, Stargatt &
Taylor, LLP, in Wilmington, Delaware, neither the Original CBA
nor the Current CBA provided the Chicago Union Employees with a
contractual right to severance payments.

Mr. Waite says that pursuant to a Final Settlement and
Recommendation dated Aug. 8, 2006, between the Debtors and the
Chicago Union, the Debtors agreed that in the event of a notice
of mass layoff or plant shutdown under the Worker Adjustment and
Retraining Act of 1998, they would negotiate to implement a
severance program for the Chicago Union Employees.

In September 2006, the Debtors notified their employees at the
Chicago Facility of their intention to cut up to 230 jobs by
November.  In October 2006, the Debtors sent another notice
indicating their intention to eliminate up to 100 additional
employees beginning Dec. 17, 2006.

           Chicago Union Employee Severance Program

Under the Chicago Union Employee Severance Program, as
negotiated by the parties, calculation of the severance payments
due at the time of separation would be done by multiplying the
number of completed years of service by the appropriate
severance multiplier.

           Years of Service      Severance Multiplier
           ----------------      --------------------
                    <2                    US$0
                   2-4                   US$75
                   5-7                   US$75
                  8-14                  US$100
                 15-24                  US$135
             > or = 25                  US$175

According to Mr. Waite, the total maximum cost of the Chicago
Severance Program would be around US$751,240 for the 429 Chicago
Union Employees.

Mr. Waite notes that the Chicago Union Employees are a critical
part of the operational restructuring that is currently
underway, and the most effective way to incentivize them to
continue working for the Debtors is to provide the Severance
Payments upon their termination.

The Debtors also believe that making the Severance Payments to
the employees who will lose their jobs in the near future is
necessary to sustain the morale of the remaining employees who
otherwise might leave during the critical stage of the Debtors'
bankruptcy cases.

                    About Werner Ladder

Headquartered in Greenville, Pennsylvania, Werner Co. --
http://www.wernerladder.com/-- manufactures and distributes
ladders, climbing equipment and ladder accessories.  The company
has a manufacturing facility in Mexico.  The company and three
of its affiliates filed for chapter 11 protection on
June 12, 2006 (Bankr. D. Del. Case No. 06-10578).

The firm of Willkie Farr & Gallagher LLP serves as the Debtors'
counsel.  Kara Hammond Coyle, Esq., Matthew Barry Lunn, Esq.,
and Robert S. Brady, Esq., Young, Conaway, Stargatt & Taylor,
LLP, represents the Debtors as its co-counsel.  The Debtors have
retained Rothschild Inc. as their financial advisor.  Greenberg
Traurig LLP is counsel to the Official Committee of Unsecured
Creditors.  Jefferies & Co serves as the Committee's financial
advisor.

At March 31, 2006, the Debtors reported total assets of
US$201,042,000 and total debts of US$473,447,000.


* MEXICO: JBIC Provides Guarantee for Syndicated Loan to PEMEX
--------------------------------------------------------------
Japan Bank for International Cooperation signed an agreement on
Dec. 14 to provide a guarantee for the syndicated loan to
Petroleos Mexicanos aka PEMEX totaling up to US$600 million with
13 commercial institutions in Japan(including Mizuho Corporate
Bank (lead arranger)).

The proceeds of this syndicated loan will meet the financial
needs of the oil field development project undertaken by PEMEX
in the Ku-Maloob-Zaap oil field, the second largest oil field in
Mexico.  By utilizing the guarantee facility as a means of
support for Japanese financial institutions, which are driving
its business development and expansion in Mexico, JBIC is
supplementing and encouraging the development of Japanese
financial business operations there.  The utilization of the
guarantee also assists PEMEX in securing stable and long-term
funds, thus further cementing their ties with JBIC.

With the Japan-Mexico Economic Partnership Agreement coming into
effect in April 2005, Japanese firms now enjoy the same national
treatment as their Mexican counterparts for the procurement of
goods and services by Mexican government agencies including
PEMEX.  It is expected that the loan will help to create and
expand business opportunities for Japanese firms in oil, gas,
and other projects executed by PEMEX and other Mexican
government entities in the coming years.

As the world is gripped by tight resource supply and prices
continue to rise sharply, Japan's New Energy Strategy executed
in May 2006, advocates comprehensive ties with the energy
producing countries to be strengthened as a national strategy to
secure resources.  Under such circumstances, providing this loan
with JBIC's guarantee facility will contribute not only to the
mitigation of tight crude oil supplies across the world, but
also to strengthening ties with Mexico, the 5th largest oil
producing country.  JBIC will continue to support the
development of Japanese firms' overseas business, and seek to
enhance relationships with resource-producing countries by
making use of a variety of its financial tools.

                        *    *    *

As reported in the Troubled Company Reporter on April 17, 2006,
Standard & Poor's Ratings Services placed an mxBB+ long-term
rating with stable outlook on the state of Mexico.




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


* NICARAGUA: Legislators Okay US$37MM Central American Bank Loan
----------------------------------------------------------------
Published reports say that the legislative assembly of Nicaragua
has ratified a US$37-million loan from the Central American Bank
for Economic Integration aka Cabei for the 17-megawatt
Larreynaga hydro project.

Business News Americas relates that Enel, the state-run power
firm of Nicaragua, is responsible for the Larreynaga project,
which is expected to boost the nation's power supply by almost
3%.

According to BNamericas, the Larreynaga project would be
situated in Jinotega on the Viejo river downstream from Enel's
50-megawatt CentroAmerica plant.  Construction would take a
little longer than two years.

Enel will launch an international tender for the plant's
construction after President-elect Daniel Ortega takes office on
Jan. 10, 2007, BNamericas states.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

                     Rating     Rating Date

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




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


BANCO LATINOAMERICANO: Posts US$11.2MM Third Quarter Net Income
---------------------------------------------------------------
Banco Latinoamericano de Exportaciones, SA, aka Bladex reported
that its net income increased 26% to US$11.2 million in the
third quarter of 2006, compared with the same quarter in 2005.

The boost in Bladex's income was driven by increased operating
income and a higher reversal of provisions for credit losses.

Bladex's year-to-date net income decreased 42% to US$36.8
million, compared with the previous year, due to lower credit
provision reversals, as Bladex has collected 92% of its
restructured portfolio.

Bladex's operating income for the third quarter of 2006
increased 19% to US$8.7 million, from the previous quarter.
This reflected increases in net interest income and fee income,
as well as improving Treasury results.

Year-to-date operating income rose 27% to US$25.2 million,
compared with the same period in 2005.

Fee income for the quarter grew by 35% on a sequential basis, to
US$1.7 million, and 13% year-on-year.

Jaime Rivera, chief executive officer of Bladex, stated, "The
figures for the third quarter speak for themselves; it was an
all-around solid performance.  More significantly, the results
confirm and strengthen the positive trend in our financial
performance, as we execute the strategy that we outlined two
years ago.  Our revenue is now diversified across an expanding
suite of products and clients, geared towards a growing
corporate segment and proprietary Treasury operations.  The
expansion of our intermediation business is yielding
particularly promising results, as the commercial portfolio
continues to grow an average rate of close to 20% p.a.  As we
grow, we continue managing risk based on a sound and flexible
portfolio, 80% of which remains trade financing in nature, while
77% matures within the next 12 months."

"During the fourth quarter, we expect to book our first cross
border leasing transactions, yet another niche where we enjoy
competitive advantages in terms of origination and risk
management, and which allows Bladex to support a growing need on
the part of our clients for specialized financing.  In summary,
our efforts remain focused on sustaining the growth in Operating
Income and on gaining further efficiency, with the ultimate aim
of improving ROE (return on equity) levels," the chief executive
officer said.

Headquartered in Panama City, Panama, Banco Latinoamericano de
Exportaciones, SA aka Bladex -- http://www.bladex.com-- is a
supranational bank originally established by the Central Banks
of Latin American and Caribbean countries to promote trade
finance in the Region.  The bank's shareholders include central
banks and state- owned entities in 23 countries in the Region,
as well as Latin American and international commercial banks,
along with institutional and retail investors.  Through Dec. 31,
2005, Bladex had disbursed accumulated credits of over US$135
billion.

                        *    *    *

As reported on April 7, 2006, Moody's affirmed these ratings for
Bladex:

   -- Bank Financial Strength Rating: D-minus, change to
      positive outlook from stable;

   -- Long Term Foreign Currency Deposit Rating: Baa3, with
      stable outlook;

   -- Short Term Foreign Currency Deposit Rating: Prime-3;

   -- Foreign Currency Senior Unsecured Rating: Baa3, with
      stable outlook; and

   -- Foreign Currency Issuer Rating: Baa3, with stable outlook.


SOLO CUP: Elects Four New Members to Board of Directors
-------------------------------------------------------
Solo Cup Co. elected four new members to its Board of Directors.
The election increases the size of the Solo Cup Board of
Directors from seven members to 11.

The newly elected Board members are:

   -- Peter W. Calamari,
   -- Jack M. Feder,
   -- Jeffrey W. Long and
   -- Kevin A. Mundt,

all of whom are employees of Vestar Capital Partners, a private
equity firm that owns a minority interest in the company.  Of
the 11 board members, six are appointed by Vestar.  In addition,
the Board named Mr. Mundt as chairman, replacing long-time
chairman Robert L. Hulseman, who will remain on the Board and
will also serve as chairman emeritus.  John Hulseman will serve
as vice chairman Emeritus.

"On behalf of Solo's leadership team, I would like to welcome
our new Board members.  Their considerable experience in
enhancing the performance of a variety of companies will be of
great value to Solo as we pursue our Performance Improvement
Program," said Robert M. Korzenski, the company's chief
executive officer.

"Robert Hulseman had the vision and the expertise to bring
plastics into the world of disposable foodservice products.  He
was instrumental in creating a number of products that consumers
embrace as a regular part of their daily lives," said Dan
O'Connell, chief executive officer of Vestar Capital Partners.
"We are honored to play a role in helping move this company
forward on behalf of the Hulseman family and Solo's employees."

Mr. Mundt is a managing director at Vestar Capital Partners,
where he also heads Vestar Resources, the firm's portfolio
monitoring and advisory group.  He has consulted for more than
23 years with major multinational corporations on strategic
issues affecting shareholder value growth.  Previously, Mr.
Mundt was co-founder and director of strategic consultancy
Corporate Decisions Inc., which merged with Mercer in 1997.  He
currently serves as a director of Birds Eye Foods, Sunrise
Medical, Duff and Phelps, MediMedia and Fiorucci, SpA. Mr. Mundt
began his career at Bain & company.

Mr. Long is a managing director in Vestar Resources.  He
previously spent 12 years at McKinsey and company, Inc.,
advising industrial clients on enhanced strategy and marketing,
supply chain management, manufacturing and capital discipline.
Prior to that, he served as a cavalry officer in the U.S. Army
for 14 years. Mr. Long is a director on the Boards of ArgoTech
and St. John Knits.

Mr. Feder is general counsel at Vestar Capital Partners.  Before
joining Vestar, Mr. Feder was a senior corporate partner in the
private equity group of Kirkland & Ellis.

Mr. Calamari is a vice president of Vestar Capital Partners.
Prior to joining Vestar, he was a member of the Mergers &
Acquisitions group at Merrill Lynch.

Headquartered in Highland Park, Illinois, Solo Cup Company --
http://www.solocup.com/-- manufactures disposable paper and
plastic food and beverage containers used in the foodservice and
retail consumer markets.  Products include cups, lids, straws,
napkins, cutlery, and plates.  The Company was established in
1936 and has a global presence with facilities in Asia, Canada,
Europe, Mexico, Panama and the United States.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 20, 2006
Moody's Investors Service is continuing the review for possible
downgrade of Solo Cup Company first initiated on Aug. 16, 2006,
and reiterated on Sept. 15, 2006.  Although Solo Cup has met its
obligation to file financial statements and has completed its
previously announced review of accounting issues, Moody's
continues to have concerns regarding liquidity and ongoing
business strategy.

Moody's held B2 ratings on US$150 million senior secured
revolving credit facility maturing Feb. 27, 2010, and on US$635
million senior secured term loan B due Feb. 27, 2011; Caa1
rating on US$80 million senior secured second lien term loan due
Feb. 27, 2012; Caa2 rating on US$325 million 8.5% subordinated
notes due Feb. 15, 2014.

Moody's expects to conclude the review by the end of January
2007.




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


BANCO CONTINENTAL: IDB Signs US$30MM Subordinated Loan for Firm
---------------------------------------------------------------
The Inter-American Development Bank signed a US$30 million
subordinated loan to BBVA Banco Continental, S.A. in Peru.

The loan constitutes the second component of a long-term
financing facility approved last week by the IDB for Banco
Continental to provide comprehensive support for mortgage
origination and asset growth.  The first portion, a US$100
million senior A/B Loan was signed last week.

The loan agreement was signed by the General Manager of Banco
Continental, Mr. Jaime Saenz de Tejada Pulido and its Finance
Manager, Mr. Eduardo Avila Zaragoza and for the IDB -- Mr.
Christof Kuechemann, the bank's Representative in Peru and Mr.
Hans Schulz, Head of the Financial Markets Team of IDB's Private
Sector Department.

"This subordinated loan, which is structured to qualify as Tier
II capital, is an innovative and efficient instrument that
supports our growth strategy and contributes to the development
of the Peruvian economy," said Mr. Saenz de Tejada Pulido.

IDB President Luis Alberto Moreno noted, from Washington, the
significance of this financing package for the implementation of
the broader private sector strategy of the IDB, "We will be
looking for similar opportunities to support the competitiveness
of the local financial markets with creatively structured and
innovative transactions that address specific growth
constraints, maximizing the IDB's value-added.

BBVA Banco Continental is the second largest commercial bank in
Peru.  As of September 2006, had total loans of US$3.6 billion
and total deposits of US$4.1 billion.  It has built an extensive
network throughout the country with 215 branches, 342 ATMs and
2,868 employees.

                        *    *    *

Fitch Ratings assigned on Dec. 6, 2006, these ratings to BBVA
Banco Continental:

   -- Individual rating of 'C/D';
   -- Support rating of '2';
   -- Long-term local currency Issuer Default Rating of 'BBB';
   -- Long-term foreign currency IDR of 'BBB-'; and
   -- Short-term foreign and local currency ratings of 'F3'.




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


ADELPHIA COM: Rigases Want US$600,000 as Additional Defense Cost
----------------------------------------------------------------
James Rigas and Michael Rigas ask the U.S. Bankruptcy Court for
the Southern District of New York to permit Associated
Electric & Gas Services Limited to advance another US$600,000 in
defense costs from the Adelphia Communications Corporation and
its debtor affiliates' Directors' and Officers' Liability
Insurance Policies.

James Rigas and Michael Rigas seek US$300,000 each to cover the
past due invoices for legal fees, consulting fees, and vendor
fees.

The Rigases further ask the Court to permit AEGIS to advance to
Pete Metros, Erland Kailbourne, Les Gelber, and Dennis Coyle an
additional US$300,000 each for Defense Costs pursuant to the
terms of the interim funding agreements between AEGIS and those
four individuals.

As reported in the Troubled Company Reporter on Oct. 12, 2006,
the Honorable Robert E. Gerber of the U.S. Bankruptcy Court for
the Southern District of New York permitted Associated Electric
to advance an additional US$300,000 for James Rigas and
US$300,000 for Michael Rigas to cover Defense Costs pursuant to
the terms of the Agreement between the Rigases and AEGIS.

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


ADELPHIA COMMS: Wants Lucent to Produce Withheld Documents
----------------------------------------------------------
Adelphia Communications Corp. asks the U.S. Bankruptcy Court for
the Southern District of New York to direct Lucent Technologies
Inc. to:

    (1) immediately produce all documents withheld as attorney
        work product that predated May 2002 because there was no
        pending or anticipated litigation during that period
        between Lucent and Devon Mobile Communications L.P.;

    (2) immediately produce all 29 Pacchia Documents because
        they are not protected by the attorney-client privilege
        or the work product doctrine;

    (3) immediately produce all withheld documents identified as
        being sent or received by "Unknown" because Lucent has
        not established that the documents are privileged or
        protected by the work product doctrine;

    (4) revise the Lucent Privilege Log to provide sufficient
        and meaningful descriptions;

    (5) produce those remaining documents to the Court for an in
        camera inspection; and

    (6) to the extent the Court determines that any of the
        remaining documents is privileged, the Court should
        review those documents in camera to determine whether
        the privilege has been waived pursuant to the "at issue"
        doctrine.

Lucent previously filed a claim for US$44,721,520 against the
Debtor, seeking recovery for millions of dollars allegedly owed
by ACOM under a contract between Lucent and Devon Mobile
Communications L.P.

On May 4, 2006, ACOM served its first request for production of
documents on Lucent.

On Oct. 13, 2006, Lucent furnished ACOM a Privilege Log, which
listed 89 withheld claims.

Rona J. Rosen, Esq., at Klehr, Harrison, Harvey, Branzburg &
Ellers LLP, in Philadelphia, Pennsylvania, asserts that the
descriptions of all 89 withheld documents fail to meet the
requirements of Rule 26(b)(5) of the Federal Rules of Civil
Procedures:

    (a) Lucent does not describe the withheld items in
        sufficient detail so as to permit ACOM to assess the
        applicability of the alleged privilege;

    (b) Eight of the withheld documents lists the sender or
        recipient as "Unknown";

    (c) About 29 withheld documents lists the sender or the
        recipient as Anthony Pacchia, an employee at Traxi LLC.
        Ms. Rosen relates that the Lucent Privilege Log states
        that Traxi employees are "consultants hired by Lucent
        and used in connection with this Matter" in an attempt
        to
        extend the privilege to Mr. Pacchia; and

    (d) All of the documents withheld as attorney work product
        predate May 2002.  Devon was current on the payment of
        all of its Lucent invoices through April 15, 2002.
        Credit terms under the Lucent/Devon General Agreement
        were net 30 days after receipt of an invoice.  The
        period of "anticipation of litigation" cannot reasonably
        be said to commence until invoices are unpaid and
        reasonable collection efforts have failed.

Ms. Rosen contends that Mr. Pacchia and Traxi were hired by
Lucent in the ordinary course of business to manage Lucent's
credit risks generally and to otherwise assist Lucent's Global
Assets Recovery group.  Mr. Pacchia was not hired specifically
to manage Lucent's credit risks under the Lucent/Devon General
Agreement.  Ms. Rosen adds that Mr. Pacchia was not also hired
to assist Lucent's attorneys in advising Lucent on the Devon
credit risk.  Thus, she says, any Lucent communication to Mr.
Pacchia is not privilege because he is not a Lucent employee.

Ms. Rosen asserts there is no evidence that Mr. Pacchia or Traxi
was engaged at a time when there was any anticipated or ongoing
litigation between Lucent and Devon.

Ms. Rosen relates Lucent refused to provide supplemental
descriptions to enable ACOM to assess the applicability of the
invoked privileges.

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


CARIBE INFORMATION: Moody's Affirms B2 Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service has affirmed Caribe Information
Investment Inc.'s Corporate Family rating and changed the rating
outlook to developing from stable following its parent company,
Local Insight Media LLC, announcement that it has executed a
definitive agreement to combine its business with CBD Media
Holdings LLC.

The ratings affirmed comprise:

   -- Corporate Family rating: B2;
   -- PDR: B2;
   -- Sr. Secured revolver loan due 2012: B1, LGD3, 36%; and
   -- Sr. Senior secured term loan due 2013: B1, LGD3, 36%.

The rating outlook was changed to developing from stable.

The impact on the company's capital structure is curently
unclear, but Moody's stated that it expects to refresh ratings
once it has reviewed the combined entity's capital structure.

Caribe Information Investment Inc., based in Puerto Rico, is a
holding company with two Caribbean directory publishing
operating subsidiaries, Verizon Information Services-Puerto
Rico, 60% owned, and Verizon Information Services-Dominican
Republic, 100% owned.  Moody's notes that the remaining 40%
ownership in Verizon Information Services-Puerto Rico, belongs
to World Directories.


NEWCOMM WIRELESS: Has Until Dec. 22 to File Schedules
-----------------------------------------------------
NewComm Wireless Services, Inc., has until Friday to file its
schedules of assets and liabilities with the U.S. Bankruptcy
Court for the District of Puerto Rico.

The Debtor says it needs the extension given the size and
complexity of its business.  Newcomm Wireless has about two
thousand creditors and parties-in-interest.

Newcomm adds that since the filing of its bankruptcy case, most
of its time is devoted in preparing for and negotiating an asset
purchase agreement.  Furthermore more, the Debtor says it hasn't
received and entered some invoices into its financial systems.

The Debtor believes that the extension until Friday would give
it ample time to accurately collate and prepare the schedules
and statements.

Headquartered in Guaynabo, Puerto Rico, NewComm Wireless
Services, Inc., is a PCS company that provides wireless service
to the Puerto Rico market.  The company is a joint venture
between ClearComm, L.P. and Telefonica Larga Distancia.  The
company filed for chapter 11 protection on Nov. 28, 2006 (Bankr.
D. P.R. Case No. 06-04755).  Carmen D. Conde Torres, Esq., at C.
Conde & Assoc. and Peter D. Wolfston, Esq., at Sonnenschein Nath
& Rosenthal LLP represent the Debtor in its restructuring
efforts.  When the Debtor filed for protection from its
creditors, it reported assets and liabilities of more than
US$100 million.




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


MIRANT CORP: Bankruptcy Court Approves New York Tax Settlement
--------------------------------------------------------------
Mirant Corp. disclosed that the United States Bankruptcy Court
for the Northern District of Texas has approved a settlement
among certain of its New York subsidiaries still in bankruptcy
and various local jurisdictions of disputed property taxes for
Mirant's Bowline and Lovett electric generating facilities.

The settlement resolves pending disputes regarding refunds
sought by Mirant for property taxes paid for 1995 through 2003
and unpaid taxes assessed for 2003 through 2006.  Property taxes
paid for 1995 through 2003 and unpaid taxes assessed for 2003
through 2006 were previously expensed by Mirant for financial
reporting purposes.  Under the settlement, Mirant will receive
refunds totaling approximately US$163 million for 1995 through
2003, and will pay unpaid taxes of approximately US$115 million
for 2003 through 2006, resulting in Mirant receiving a net cash
amount of US$48 million.  As a result of the refunds and the
reduction in unpaid taxes under the settlement, Mirant will
recognize in the fourth quarter of 2006 a gain of approximately
US$244 million.

Headquartered in Atlanta, Georgia, Mirant Corp. (NYSE: MIR)
-- http://www.mirant.com/-- is an energy company that produces
and sells electricity in North America, the Caribbean, and the
Philippines.  Mirant's investments in the Caribbean include
three integrated utilities and assets in Jamaica, Grand Bahama,
Trinidad and Tobago and Curacao.  Mirant owns or leases more
than 18,000 megawatts of electric generating capacity globally.
Mirant Corporation filed for chapter 11 protection on July 14,
2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of
a confirmed Second Amended Plan on Jan. 3, 2006.  Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.  When the Debtors filed for
protection from their creditors, they listed US$20,574,000,000
in assets and US$11,401,000,000 in debts.  The Debtors emerged
from bankruptcy on Jan. 3, 2006.

                        *    *    *

Moody's Investors Service assigned its B2 corporate family
rating, effective July 13, 2006, on Mirant Corp.


ROYAL CARIBBEAN: Names Steve Shaiken VP of Onboard Revenue
----------------------------------------------------------
Royal Caribbean International has named seasoned retail
executive Steve Shaiken as vice president of Onboard Revenue.
Mr. Shaiken will be responsible for enhancing and promoting
Royal Caribbean's onboard revenue products, including casino
operations, retail boutiques, art auctions, and the ShipShape
Day Spa and salon, in addition to multiple other onboard revenue
streams.

"We are delighted to have someone of Steve's caliber join the
Royal Caribbean executive team," said Michael Bayley, senior
vice president of Hotel Operations.  "His breadth of retail
management experience makes him ideally suited for this vital
role."

Mr. Shaiken joined the team on December 18.

Most recently, Mr. Shaiken served as president of museum retail
operations for Smithsonian Business Ventures for the Smithsonian
Institution.  Before that, Mr. Shaiken spent 17 years in senior
leadership positions in retail and merchandising for Fortune
1000 companies such as GE's Universal Parks & Resorts; Starwood
Hotels and Resorts Worldwide; and Hilton Hotels Corporation.

Royal Caribbean Cruises Ltd. -- http://www.royalcaribbean.com
-- is a global cruise company that operates Royal Caribbean
International and Celebrity Cruises with a combined total of 29
ships in service and six under construction.  The company also
offers unique land-tour vacations in Alaska, Canada and Europe
through its cruise-tour division.

                        *    *    *

Moody's Investors Service has assigned on June 7, 2006, a Ba1
rating on Royal Caribbean's US$700 million senior unsecured
notes issuance and affirmed all existing long-term ratings.




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


* URUGUAY: IDB Approves US$220 Million Conditional Credit Line
--------------------------------------------------------------
The Inter-American Development Bank approved a US$220 million
conditional credit line for investment projects for investments
in sanitation and storm drainage infrastructure in the
department of Montevideo in Uruguay.  The IDB also announced the
first individual loan, under the credit line, for US$118.6
million.

The Municipal Government of Montevideo will execute the project
following its sanitation master plan.  The master plan defines
investment priorities and schedules works to be executed in the
period 2007-2022.  The cost is projected to be US$260 million.

"The CCLIP will help the Municipal Government of Montevideo to
expand the coverage of sanitary sewer and storm drainage systems
in the department, increase the amount of sewage that is
adequately disposed of, and improve the management of sanitation
and storm drainage services," said IDB Team Leader Kleber
Machado.  "The first loan will reduce pollution in the
Montevideo bay and adjacent beaches in the western part of the
department, and protect the beaches that have already been
cleaned in the eastern part of the department," added Mr.
Machado.

The project supports the IDB's Uruguay country strategy by
seeking to improve the standard of living through greater
coverage of sanitation services and by reducing pollution in the
bay of Montevideo, as well as strengthening the municipality's
Sanitation Division.

This initiative follows several previous IDB-financed operations
supporting the sanitation and drainage of the department of
Montevideo for a total of US$244.4 million.  These operations
have permitted the Municipal Government to gradually increase
service coverage, increase the amount of sewage that is
adequately disposed of, and improve management and environmental
quality of the coastal zone, allowing for safe swimming in the
beaches located on the eastern part of the department.

The first individual loan is for a 25-year term, with a six-year
grace period, at a variable interest rate.

                        *    *    *

On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018, at 'B+'.


* URUGUAY: State Firm Hiking Power Rates 5.5% in January 2007
-------------------------------------------------------------
Beno Ruchansky, president of state power firm UTE, told the
local press that the company will raise power rates over 5.5% in
January 2007 due to higher generation costs.

UTE will have to increase rates more than the June 5.5%
increase.  The firm would try to make January the only increase
next year, Business News Americas relates, citing Mr. Ruchansky.

According to published reports, UTE budgeted US$140 million in
2006 for generation activities using liquid fuels.  However, the
firm will have to spend US$400 million by the end of the year.

The 2007 minimum to be spent on generation using liquid fuels as
feedstock will be US$200 million, reports say.

                        *    *    *

On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018, at 'B+'.




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


PETROLEOS DE VENEZUELA: May Bring in US$6.9B to Treasury in 2007
----------------------------------------------------------------
Petroleos de Venezuela, the state-run oil firm of Venezuela, is
expected to deposit US$6.9 billion to the Venezuelan treasury
next year, El Universal reports, citing Rodrigo Cabeza, head of
the National Assembly Finance Committee.

El Universal relates that the government, Central Bank and
Petroleos de Venezuela will continue to implement measures in
2007 to curb liquidity.  Once extraordinary revenues start next
year, Petroleos de Venezuela is expected to make new deposits in
a special account of the treasury.

Mr. Cabeza told El Universal, "These funds will not be monetized
(will not be delivered to central bank), but they will be sold
when extraordinary expenses need to be afforded."

According to El Universal, the Venezuelan oil sector has made
transfers to the special account over the last quarter of 2006
to prevent the funds from affecting liquidity.

Authorities decided to boost the legal reserve and implement
liquidity absorption measures by issuing deposit slips, to lead
financial institutions into giving more funds to loans, El
Universal states.

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

                        *    *    *

Standard & Poor's Ratings Services revised the CreditWatch
implications on its 'B+' long-term foreign currency corporate
credit rating on Petroleos de Venezuela SA to positive from
developing.

The revision of the CreditWatch status on Petroleos de Venezuela
reflects S&P's expectations that downgrade risk has receded, and
the issuer credit rating will either be raised and equalized
with the rating on Petroleos de Venezuela's owner, the
Bolivarian Republic of Venezuela (BB-/Positive/B), or affirmed
at 'B+'.


PETROLEOS DE VENEZUELA: Inks Lubricants Supply Pact with Alba
-------------------------------------------------------------
Petroleos de Venezuela, the state-owned oil firm of Venezuela,
told Business News Americas that PDV Caribe, its fuel
distribution subsidiary, has signed a lubricants supply accord
with Alba Petroleos de El Salvador.

BNamericas relates that PDV Caribe and Enepasa, an El
Salvadorian municipalities association, created Alba Petroleos
earlier this year to distribute Venezuelan crude and fuels in El
Salvador.

Petroleos de Venezuela said in a statement that the agreement
covers 27 types of lubricants and falls under the Petrocaribe
energy cooperation model.

The first shipment will arrive in El Salvador in two weeks and
initially will be distributed at service stations and sector
companies in capital San Salvador and the country's west and
east, according to a Petroleos de Venezuela statement.

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

                        *    *    *

Standard & Poor's Ratings Services revised the CreditWatch
implications on its 'B+' long-term foreign currency corporate
credit rating on Petroleos de Venezuela SA to positive from
developing.

The revision of the CreditWatch status on Petroleos de Venezuela
reflects S&P's expectations that downgrade risk has receded, and
the issuer credit rating will either be raised and equalized
with the rating on Petroleos de Venezuela's owner, the
Bolivarian Republic of Venezuela (BB-/Positive/B), or affirmed
at 'B+'.


PETROLEOS DE VENEZUELA: Oil Purchase Averages 703,000 Barrels
-------------------------------------------------------------
Petroleos de Venezuela SA, the state-owned oil firm of
Venezuela, said in a filing with the U.S. Securities and
Exchange Commission that it has purchased 703,000 barrels per
day on average in 2004 from other companies to keep its
refineries producing.

A strike that began on December 2002 at Petroleos de Venezuela's
refining plants weakened its operations, reducing the company's
output by as much as 90%.  The national strike unsuccessfully
sought for the resignation of President Hugo Chavez, resulting
in the dismissal of at least 18,000 Petroleos de Venezuela
workers.

Business News Americas relates that Petroleos de Venezuela
supplied its plants in Venezuela and abroad with 2.15 million
barrels of crude daily.  The firm refined about 2.85 million
barrels per day in 2004 at wholly or partially owned refineries.

Petroleos de Venezuela said in the SEC filing that Venezuela
satisfied 75% of the crude demanded at the refineries in 2004.
The company was able to meet 78% of demand in 2003, and 81% in
2002.

According to BNamericas, the global refining capacity of
Petroleos de Venezuela is currently at 3.3 million barrels per
day.

Petroleos de Venezuela told BNamericas that it will no longer
file reports with SEC, saying that it violates Venezuela's
sovereignty.

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.


SHAW: China Picks Westinghouse Consortium to Build Nuclear Plant
----------------------------------------------------------------
The Shaw Group Inc. disclosed that the People's Republic of
China's State Nuclear Power Technology Company or SNPTC has
selected the Westinghouse/Shaw Consortium and Westinghouse's
AP1000 passive Generation III technology as the basis for four
new nuclear power plants to be constructed in China.  The AP1000
Consortium will begin working closely with SNPTC to negotiate
final contract details with implementation of the new build
program expected to begin in early 2007.

J.M. Bernhard, Jr., Chairman, President and Chief Executive
Officer of Shaw, said, "We are exceptionally pleased to be a
part of the AP1000 Consortium and with our role in supporting
China's growing energy needs with the safe, modular and
economical AP1000 technology.  These first four "next
generation" units will provide a sustainable source of
critically needed power generation for the citizens and the
government of the People's Republic of China and we are
delighted to be partnered with Westinghouse Electric Company in
these significant projects.  This project also represents the
beginning of a major construction program for China to add at
least 20,000 megawatts of nuclear power over the next 15 years.
We look forward to a long and mutually beneficial relationship
with our Chinese clients for these and future nuclear units."

Richard F. Gill, Chairman of the Executive Committee and Interim
President of Shaw's Power Division, added, "It has been a
tremendous honor to work with President Chen Zhaobo and SNPTC on
this most important initiative. We thank them for the extremely
professional and courteous manner in which the negotiations for
this selection have been handled.  We believe this venture will
become a benchmark for future projects and an example of how our
countries can successfully work together on very complex
industrial projects.  Shaw is committed to upholding this spirit
of collaboration and innovation as we work together with the
People's Republic of China to finalize contract terms on these
first four nuclear projects."

As part of the AP1000 Consortium, Shaw will provide engineering,
procurement, commissioning, and management services for the four
Chinese nuclear generation units.  The projects are expected to
spur significant economic opportunity in China, as well as in
the United States with skilled engineering jobs being created in
Shaw offices in Massachusetts, New Jersey, North Carolina and
Louisiana as a result.

Shaw is a pioneer in the nuclear services industry and has a
long-standing relationship with its partner, Westinghouse.  Shaw
and Westinghouse collaborated to build the first commercial
nuclear generating plant in the United States at Shippingport,
Pennsylvania in the 1950s. Shaw has performed as architect-
engineer on 17 domestic nuclear units and is presently
completing the construction restart of Tennessee Valley
Authority's Browns Ferry Unit #1 in Alabama, the largest nuclear
construction project currently underway in the western
hemisphere.  Shaw is a leader in providing nuclear modifications
and maintenance services, with 40% of the nation's market share.
The company is certified by ASME to both engineer and fabricate
piping systems for nuclear power facilities.  Shaw is also a 20%
owner of Westinghouse.

The selection of Westinghouse and Shaw to supply new nuclear
plants in China is the most recent in a series of positive
announcements regarding the AP1000 passive Generation III
technology and new nuclear construction.  The AP1000 technology
obtained Design Certification from the United States Nuclear
Regulatory Commission and is the current technology selection
for at least 12 proposed new units in the United States.
Westinghouse and Shaw are working closely to support this
proposed growth in the domestic nuclear power sector.

Westinghouse Electric Company is the world's pioneering nuclear
power company and is a leading supplier of nuclear plant
products and technologies to utilities throughout the world.
Currently, Westinghouse technology forms the basis for
approximately one-half of the world's operating nuclear plants.

The Shaw Group Inc. -- http://www.shawgrp.com/-- is a leading
global provider of technology, engineering, procurement,
construction, maintenance, fabrication, manufacturing,
consulting, remediation, and facilities management services for
government and private sector clients in the energy, chemical,
environmental, infrastructure and emergency response markets.
Headquartered in Baton Rouge, Louisiana, with over US$3 billion
in annual revenues, Shaw employs approximately 20,000 people at
its offices and operations in Venezuela, Chile, North America,
Europe, the Middle East and the Asia-Pacific region.

                        *    *    *

As reported on the Troubled Company Reporter on Oct 06, 2006,
Standard & Poor's Ratings Services placed its 'BB' corporate
credit rating and other ratings for The Shaw Group Inc. on
CreditWatch with negative implications.

"The CreditWatch placement followed the company's announced
agreement to take a 20% ownership interest in the US$5.40
billion acquisition, led by Toshiba Corp. (BBB/Watch Neg/A-2),
of Westinghouse Electrical Company Co. from British Nuclear
Fuels Ltd.," said Standard & Poor's credit analyst Dan
Picciotto.


* IDB Approves Realignment of Basic Organization
------------------------------------------------
Inter-American Development Bank's board of directors approved a
realignment of the IDB's organization in order to respond more
efficiently to the challenges of development in Latin America
and the Caribbean.

The purpose of the overhaul, presented by IDB President Luis
Alberto Moreno, is to enhance the effectiveness of the Bank so
that it can better respond to these challenges.  To this end,
the IDB will deepen its country focus and sector expertise and
enhance its effectiveness with a renewed emphasis on risk
management and attainment of results.

"This is a major change in the way the IDB faces the challenges
that lie ahead.  We want to bring the Bank closer to the
countries, to both its national and regional constituencies.
And above all we want the Bank to be an agent of real change in
the lives of people in Latin America and the Caribbean," said
Mr. Moreno.

During its annual meeting held in Belo Horizonte, Brazil, in
April, the IDB's Board of Governors endorsed the Bank's new
vision for the coming years.  According to this vision, the Bank
should:

   -- help reduce poverty and inequality by promoting growth
      and sustainable development;

   -- foster social cohesion by creating opportunities for the
      majority;

   -- support private sector development and job creation; and

   -- promote regional integration.

The new organization, the success of which will depend to a
great extent on changing the Bank's institutional culture, is
designed to increase the Bank's responsiveness by strengthening
its strategic and technical capacity and organizing its
activities under four vice-presidencies:

   -- Vice-president of Countries;

   -- Vice-president of Sectors and Knowledge;

   -- Vice-president of Private Sector and Non-sovereign
      Guaranteed Operations; and

   -- Vice-president of Finance and Administration.

These vice-presidents will report to the President and to the
Executive Vice-president of the Bank.

"The IDB has the professional knowledge and human resources to
address the challenges of the 21st century.  What we needed was
a realignment of its organization so that it can leverage and
deploy these competencies and capabilities effectively in
benefit of the region," said Mr. Moreno.

Among the strategic areas in which the Bank's knowledge and
technical expertise will be deepened are these:

   * Expanding opportunities for the majority, which includes
     developing policies, strategies and programs that provide
     greater access to housing, financial services, basic
     infrastructure, jobs, information and communication
     technologies, and further the identification and
     registration of the undocumented population.  Such
     activities will improve living conditions and economic and
     social participation by the majority of the population in
     the countries of the region.

   * Achieving the Millennium Development Goals by implementing
     effective social policies that are conducive to poverty
     reduction, human capital development and better living
     conditions for the neediest segments of the population.

   * Supporting development of science and technology and their
     application in productive processes, to raise productivity
     and promote innovation.

   * Boosting investment in infrastructure to attract additional
     investments, make the region more competitive and enhance
     its physical and energy interconnection, improving
     prospects for integration within the region and with the
     broader world.

   * Developing clean, sustainable energy sources, by promoting
     the production and use of biofuels, expanding other
     renewable sources, and integrating national networks.

   * Promoting private sector development and job creation, by
     implementing the Bank's expanded mandate to lend to
     private initiatives in all sectors, and to state-owned
     enterprises and sub-national entities without sovereign
     guarantees.

The IDB will pay special attention to supporting the countries
in Latin America and the Caribbean in achieving environmentally
sustainable and socially inclusive development with good
governance, eradicating corruption and supporting cooperation
and regional integration.

Implementation of the new organizational model will begin
immediately.


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------

                                Total
                                Shareholders  Total
                                Equity        Assets
Company                 Ticker  (US$MM)       (US$MM)
-------                 ------  ------------  -------
Kuala                    ARTE3     (33.57)       11.86
Kuala-Pref               ARTE4     (33.57)       11.86
Bombril                  BOBR3    (781.53)      473.67
Bombril-Pref             BOBR4    (781.53)      473.67
CIC                      CIC    (1,883.69)   22,312.12
Telefonica Holding       CITI   (1,010.00)      861.00
Telefonica Holding       CITI5  (1,010.00)      861.00
SOC Comercial PL         COME     (732.78)      461.86
CIMOB Partic SA          GAFP3     (44.34)      121.74
CIMOB Part-Pref          GAFP4     (44.34)      121.74
DOC Imbituba             IMBI3     (19.84)      192.80
DOC Imbitub-Pref         IMBI4     (19.84)      192.80
IMPSAT Fiber Networks    IMPTQ     (17.16)      535.01
Kepler Weber             KEPL3     (22.20)      478.81
Paranapanema SA          PMAM3     (53.36)    3,268.96
Paranapanema-PREF        PMAM4     (53.36)    3,268.96
Telebras-CM RCPT         RCTB30    (59.79)      228.35
Telebras-PF RCPT         RCTB40    (59.79)      228.35


                         ***********


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, Francois Albarracin, and Christian Toledo,
Editors.

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

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

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

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


              * * * End of Transmission * * *