TCRLA_Public/061220.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

         Wednesday, December 20, 2006, Vol. 7, Issue 252

                          Headlines

A R G E N T I N A

AGILENT TECHNOLOGIES: Completes Acqiris & PXIT Acquisitions
AGILENT TECHNOLOGIES: Moody's Lifts Corp. Family Rating to Ba1
AGILENT TECHNOLOGIES: Strategic Actions Cue S&P's Positive Watch
AMEE SRL: Concludes Reorganization Process After Debt Pact OK
ANFLER SRL: Claims Verification Is Until February 27, 2007

BANCO HIPOTECARIO: S&P Places D Rating on US$500-Million Debt
BANCO RIO: Lines Up ARS140MM Issue of Asset-Backed Securities
BRATANICH GABRIEL: Reorganization Proceeding Concluded
CARRYSON SA: Deadline for Claims Verification is Feb. 23, 2007
CLINICA PRIVADA: Last Day for Claims Verification Is on Dec. 22

COMITTE CENTER: Claims Verification Deadline Is Feb. 19, 2007
COMPANIA DE TRANSPORTE: Issues US$220 Million in Debts
COMPANIA DE TRANSPORTE: Majority of Debtholders Tender Notes
COMPANIA GENERAL: Verification of Claims Is Until Feb. 23, 2007
DROGUERIA SIGMA: Claims Verification Is Until March 3, 2007

EL CIEBAL: Trustee Verifies Proofs of Claim Until Feb. 2, 2007
FOMEC SA: Verification of Proofs of Claim Is Until Feb. 28, 2007
HUMBOLT 550: Claims Verification Deadline Is on Feb. 28, 2007
SANCOR: Letter of Intent with Adecoagro Cancelled
TARTAGAL CEREALES: Reorganization Proceeding Concluded

TELECOM PERSONAL: Mobile Firms Testing Multimedia Messaging
UNILAB SA: Deadline for Claims Verification Is on March 19, 2007
VALEANT PHARMA: Moody's Lowers Corporate Family Rating to B2


B A H A M A S

SUISSE SECURITY: Court Orders Liquidation of Business


B E L I Z E

* BELIZE: Launches Debt Exchange Offer


B E R M U D A

GLOBAL CROSSING: Finance Unit to Offer GBP52-Mln Sr. Sec. Notes
REFCO INC: Plan Satisfies 13 Steps for Confirmation, Court Rules
SEA CONTAINERS: Gov't Invites Bidders for GNER's Franchise
STARVEST GLOBAL: Proofs of Claim Filing Is Until Jan. 3, 2007
STARVEST GLOBAL: Final General Meeting Is Set for Jan. 19, 2007

TK ALUMINUM: Posts EUR22-Mln 3Q Loss; May Breach Bond Covenant
TK ALUMINUM: S&P Cuts Rating to CCC- on Possible Covenant Breach


B O L I V I A

INTERNATIONAL PAPER: Discloses Tender Offer Consideration

* BOLIVIA: Denies Juan Ortiz's Resignation as Oil Firm Head


B R A Z I L

BANCO DO BRASIL: Eyes 30% Boost in Lending Next Year
BANCO NACIONAL: Okays BRL48.0 Million in Microcredit Operations
BANCO NACIONAL: Okays BRL570-Mil. Loan for Sao Salvador Project
COMPANHIA SIDERURGICA: U.K. Regulator May Auction Corus in 2007
EMBRATEL PARTICIPACOES: Inks Agreement with Electronic Data

FOSTER WHEELER: Secures Boiler Contract from Votorantim Metais
HEXION SPECIALTY: ACC Completes Review of Orica Acquisition
PETROLEO BRASILEIRO: Buying Back 91.5 Million Non-Voting Shares
PETROLEO BRASILEIRO: P-34 Platform Starts Operations in Jubarte
PETROLEO BRASILEIRO: Wins US$846-Mln Supply Pact From Prosafe

SANMINA-SCI CORP: S&P Holds BB- Rating on CreditWatch Negative

* BRAZIL: IDB to Create Inter-American Ethanol Commission


C A Y M A N   I S L A N D S

168 HOLDINGS: Shareholders to Convene for Dec. 27 Final Meeting
ACH ACQUISITION: Calls Shareholders for Final Meeting on Dec. 27
AREMET GLOBAL: Shareholders to Gather for Dec. 27 Final Meeting
AREMET (OFFSHORE): Final General Meeting Set on December 27
CRYSTAL BLUE: Liquidator to Present Wind Up Accounts on Dec. 27

DALAV LIMITED: Shareholders to Gather for Dec. 27 Final Meeting
DE CAPITAL: Invites Shareholders for Final Meeting on Dec. 27
DE CAPITAL GENERAL: Sets Final Shareholders Meeting on Dec. 27
DE CAPITAL (MASTER): Final General Meeting Is Set for Dec. 27
GLOBAL STANDARD: Final Shareholders Meeting Is Set for Dec. 27

INTEGRAL TRADE: Sets Final General Meeting for December 27
INTEGRAL (MASTER): Last Sahreholders Meeting Is on December 27
JOFI YOKOHAMA: Shareholders to Gather for Dec. 27 Last Meeting
MARINE OPERATOR: Invites Shareholders for Dec. 27 Final Meeting
N KAKIGARA: Shareholders to Convene for Dec. 27 General Meeting

POLAR CAPITAL: Liquidator to Present Wind Up Accounts on Dec. 28
SBP CAPITAL: Final Shareholders Meeting Is Set for December 27
VTC CORPORATE: Invites Shareholders for Final Meeting on Dec. 27
ZANETT LOMBARDIER: Final Shareholders' Meeting Set for Dec. 27


C H I L E

REVLON: Declares Subscription Price & Terms of US$100MM Offering


C O L O M B I A

BANCOLOMBIA: Board OKs Issuance of Bonds and Subordinated Bonds
BBVA COLOMBIA: Sister Firms Managing Debtors' Insurance Policies
BRIGHTPOINT INC: Buying CellStar's Latin American Operations
SITEL CORPORATION: Earns $7.4 Million in 2006 Second Quarter

* COLOMBIA: Selling 51.9% Stake in Acerias Paz for COP425.9 Bil.


C O S T A   R I C A

* COSTA RICA: IDB Grants US$20MM to Promote Sustainable Tourism


D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINETAL: Law Firm Dumps Luis Renta for Lack of Pay
BANCO INTERCONTINENTAL: Luis Renta Says Own Money Used in Bank


E L   S A L V A D O R

CORPORACION UBC: S&P Withdraws BB-/B Counterparty Credit Rating


G U A T E M A L A

CENTRAL AMERICAN: Moody's Lifts Sr. Notes' Rating to B1 from B2


H A I T I

DYNCORP INT'L: Secures US$4.6B Linguistic Contract from US Army


H O N D U R A S

BANCO CUSCATLAN: Seguros Launches Operations in Honduras
BANCO CUSCATLAN: S&P Places BB/B Rating on Positive Watch


J A M A I C A

AIR JAMAICA: Denied of Tax Benefits Due to Poor Performance
AIR JAMAICA: Will Increase Flights During Christmas Season
DIGICEL LTD: Launches BlackBerry Connect for Sony Ericsson P990
NATIONAL WATER: Suspends Service to St. Andrew Due to Repairs


M E X I C O

ALESTRA: Adopts Long Distance Calling Party Pays Billing Scheme
ALLIS-CHALMERS: Closes Acquisition of Oil & Gas Rental's Assets
CELLSTAR CORP: Selling LatAm & Mexican Operations to Brightpoint
FORD MOTOR: Cooper-Standard to Purchase ACH's Mexican Operations
GEOKINETICS INC: Posts Record Backlog of US$324MM in November

GEOKINETICS: Closes US$110MM Second Priority Sr. Notes Offering
HIPOTECARIA CREDITO: Moody's Rates Series B Certificates at Ba2
MAXCOM: Adopts Long Distance Calling Party Pays Billing Scheme
NORTEL NETWORKS: Amends IS$750 Million Master Facility Agreement
STEELCASE: Posts US$802MM Revenue for Third Quarter FY 2007

VALASSIS COMM: In Talks with ADVO to Settle Litigation


N I C A R A G U A

PETROLEOS DE VENEZUELA: Joint Venture in Nicaragua Opens Office

* NICARAGUA: Joint Venture with Venezuela Opens Managua Office


P A N A M A

CLIENTLOGIC: Raises Sitel Stockholders' Price to US$4.25 a Share
CLIENTLOGIC CORP: Revised Merger Plan Cues Moody's Rating Review


P E R U

DOE RUN: Extends Consent Date for 11.75% Sr. Notes Until Dec. 22


P U E R T O   R I C O

ADELPHIA COMM: ACC Noteholders Want US$5 Bil. Secured Debt Paid
NEWCOMM WIRELESS: Can Access US$16 Million of DIP Financing
NEWCOMM WIRELESS: Selling Assets to PR Wireless for US$103.2MM
R&G FINANCIAL: Victor Galan Leaves Chief Executive Officer Post


T R I N I D A D   &   T O B A G O

BRITISH WEST: Sells Landing Rights for TT$63 Million
BRITISH WEST: Workers Hired at New Airline Upset over Contract


V E N E Z U E L A

DAIMLERCHRYSLER: Unit Ordered to Pay US$350MM in US Fraud Case
PETROLEOS DE VENEZUELA: Cancels Tenders for Supply Contract


                            - - - - -


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


AGILENT TECHNOLOGIES: Completes Acqiris & PXIT Acquisitions
-----------------------------------------------------------
Agilent Technologies Inc. completed the acquisition of Acqiris
SA and PXIT Inc.  Financial details of these two transactions
were not disclosed.  All of Acqiris and PXIT's employees have
joined Agilent.

Acqiris is a privately held company that provides high-speed
digitizers and analyzers used in commercial, industrial and
government electronics markets.  Acqiris' products include a
broad offering of digitizers, time-to-digital converters and
waveform analyzers with high resolution and high-speed
performance.  The company also offers software, integration and
development support as well as long-term maintenance and
support.

PXIT is a privately held company that provides signal integrity
testing systems for broadband optical transceiver manufacturers.

Agilent Technologies Inc. (NYSE: A) -- http://www.agilent.com/
-- is the world's premier measurement company and a technology
leader in communications, electronics, life sciences and
chemical analysis.  The company's 20,000 employees serve
customers in more than 110 countries.  Agilent had net revenue
of $5.1 billion in fiscal 2005.


AGILENT TECHNOLOGIES: Moody's Lifts Corp. Family Rating to Ba1
--------------------------------------------------------------
Moody's Investors Service upgraded the ratings of Agilent
Technologies Inc. to Ba1 from Ba2 and revised the outlook to
positive.

The upgrade to Ba1 reflects the completion of the final phase of
Agilent Technologies' multi-year strategic repositioning and
transition to a business model that has the propensity to
deliver enhanced operating margins and consistently higher
levels of positive free cash flow compared to prior periods and
its peers.

Over the past year, Agilent Technologies reduced infrastructure
costs by 35% to better align its workforce and operating
facilities with a smaller revenue base after the disposition of
its Semiconductor Products Group in 2005 and Semiconductor Test
assets earlier this year.

The rating action also considered Agilent Technologies' more
focused business strategy in less volatile business segments
affording increased growth opportunities in Agilent's core
electronic and bio-analytical test and measurement businesses.

Moody's also took into account recent research and development
as well as investment efforts that were refocused to align
Agilent Technologies' business with new market opportunities to
capture market share and deliver above-average revenue growth.  
The upgrade also factored the company's improved credit metrics.

The positive outlook reflects Moody's expectation that Agilent
Technologies will demonstrate improving revenue growth in
conjunction with higher margins driven by new product
introductions, increased market penetration, favorable product
mix, continued cost containment measures and significantly
reduced restructuring charges.

The outlook also factors our expectations that Agilent
Technologies' electronic measurement business, which accounts
for 70% of total revenues, will demonstrate operating margins
that are comparable to its peers in this business segment.

These ratings were upgraded:

   -- Corporate Family Rating to Ba1 from Ba2
   -- Probability of Default Rating to Ba1 from Ba2

This rating was affirmed:

   -- Speculative Grade Liquidity Rating at SGL-1

Agilent Technologies, Inc. -- http://www.agilent.com-- is a  
measurement company that provides core bio-analytical and
electronic measurement solutions to the communications,
electronics, life sciences and chemical analysis industries.  It
has operations in India, Argentina and Luxembourg.


AGILENT TECHNOLOGIES: Strategic Actions Cue S&P's Positive Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB+' corporate
credit rating on Palo Alto, California-based Agilent
Technologies Inc. on CreditWatch with positive implications.

Ben Bubeck, Standard & Poor's credit analyst, said, "The
CreditWatch action was taken following the recent completion of
various strategic actions, which have resulted in the
transformation of Agilent into a pure-play measurement company."

Over the past five quarters, Agilent Technologies has divested
its semiconductor products group, sold its stake in the Lumileds
joint venture, and most recently, spun off Verigy Ltd., which
constituted portions of its automated test business.  Proceeds
from these actions were used to call a US$1.1 billion
convertible note and largely funded US$4.5 billion of share
repurchases.

Agilent Technologies has also taken cost containment actions
including headcount reductions and consolidation of various
sites, targeted at building the cost structure around the
remaining business.

Agilent Technologies' remaining measurement business segments,
bio-analytical measurement and electronic measurement, posted
total revenues of nearly US$5 billion during fiscal 2006, ended
October, representing a leading market position in the test and
measurement industry.

Standard & Poor's expect that Agilent Technologies' business
risk profile will benefit from the lower volatility of these
remaining segments.  As of Oct. 31, 2006, Agilent Technologies'
funded debt was limited to US$1.5 billion, which is offset by
US$1.6 billion of restricted investments.  Net cash balances
were about US$2.3 billion.

Resolution of the CreditWatch listing will consider the
improvement to Agilent Technologies' business profile, while
taking into consideration management's financial policies and
growth strategy.

                          *     *     *

Agilent Technologies, Inc. -- http://www.agilent.com-- is a  
measurement company that provides core bio-analytical and
electronic measurement solutions to the communications,
electronics, life sciences and chemical analysis industries.  It
has operations in India, Argentina and Luxembourg.


AMEE SRL: Concludes Reorganization Process After Debt Pact OK
-------------------------------------------------------------
AMEE SRL's reorganization proceeding has ended.  Data published
by Infobae on its Web site indicated that the process was
concluded after a court in San Rafael approved the debt
agreement signed between the company and its creditors.

The debtor can be reached at:

          AMEE SRL
          Saavedra 56, San Rafael
          Mendoza, Argentina

The trustee can be reached at:

          Gerardo Dario Canales
          Coronel Suaerz 725, San Rafael
          Mendoza, Argentina  


ANFLER SRL: Claims Verification Is Until February 27, 2007
----------------------------------------------------------
Hector Pedro Bazzini, the court-appointed trustee for Anfler
SRL's bankruptcy proceeding, will verify creditors' proofs of
claim until Feb. 27, 2007.

Under the Argentine bankruptcy law, Mr. Bazzini is required to
present the validated claims in court as individual reports.  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 Anfler and its creditors.

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

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

The trustee can be reached at:

          Hactor Pedro Bazzini
          Uruguay 662
          Buenos Aires, Argentina


BANCO HIPOTECARIO: S&P Places D Rating on US$500-Million Debt
-------------------------------------------------------------
Standard & Poor's assigned these ratings to Banco Hipotecario
SA's debts:

   -- Series en Default for US$500,000,000, included under the   
      Global program of Cedulas Hipotecarias, D; and

   -- Program Obligaciones Negociables for US$1,200,000,000,
      raA+.

The rating action was based on the company's balance sheet at
Sept. 30, 2006.


BANCO RIO: Lines Up ARS140MM Issue of Asset-Backed Securities
-------------------------------------------------------------
Banco Rio del Plata has placed up to ARS140-million issue of
asset-backed securities on the local market.

Business News Americas relates that the RIO Personales I
securitization will be supported by a pool of Banco Rio's
unsecured loans.  It has a duration of 18 months.

Banco Rio told BNamericas that the subscription period ended on
Dec. 15 and that the securities will be offered to institutional
and retail investors.

According to BNamericas, the securitization's A series will be
issued for up to ARS119 million, with a variable rate.  It will
mature in September 2009.  

Meanwhile, the series B securities mature in November 2011 and
will be issued for up to ARS21 million, BNamericas notes.

RIO Personales I issue will yield a 1.25% monthly interest rate
plus Argentina's CER inflation coefficient, BNamericas states.

Headquartered in Buenos Aires, Argentina, Banco Rio de la Plata
is an Argentinean private bank providing a range of financial
services, including retail, corporate, and merchant banking,
insurance, credit cards and fund management, to individuals,
companies of all sizes, financial institutions and the public
sector (both provincial and national).  The company has a
network of approximately 280 branches and employs over 5,000
serving over 1 million customers.  It is part of the Latin
American franchise of Banco Santander Central Hispano, which
holds over 80% of the bank's share capital.

                        *    *    *

On June 29, 2005, Moody's Investor Service assigned Caa1 ratings
on Banco Rio de la Plata's Issuer and Long-Term Bank Deposits
Ratings.


BRATANICH GABRIEL: Reorganization Proceeding Concluded
------------------------------------------------------
Bratanich Gabriel Gerardo y Alvarez Fabian E. SH's
reorganization proceeding has ended.  Data published by Infobae
on its Web site indicated that the process was concluded after a
court in Quilmes approved the debt agreement signed between the
company and its creditors.


CARRYSON SA: Deadline for Claims Verification is Feb. 23, 2007
--------------------------------------------------------------
Francisco Guerreato, the court-appointed trustee for Carryson
SA's bankruptcy proceeding, will verify creditors' proofs of
claim until Feb. 23, 2007.

Under the Argentine bankruptcy law, Mr. Guerreteato is required
to present the validated claims in court as individual reports.  
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 Carryson and its
creditors.

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

The trustee can be reached at:

          Francisco Guerreato
          Maipu 631
          Buenos Aires, Argentina


CLINICA PRIVADA: Last Day for Claims Verification Is on Dec. 22
---------------------------------------------------------------
Jorge Ricardo Lofiego, the court-appointed trustee for Clinica
Privada Parque SRL's reorganization proceeding, will verify
creditors' proofs of claim until Dec. 22, 2006.

Mr. Lofiego will present the validated claims in court as
individual reports on March 15, 2007.  A court in Buenos Aires
will then determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Clinica Privada 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 Clinica Privada's
accounting and banking records will follow on April 16, 2007.

The trustee can be reached at:

          Jorge Ricardo Lofiego
          Bolivar 691
          Buenos Aires, Argentina   


COMITTE CENTER: Claims Verification Deadline Is Feb. 19, 2007
-------------------------------------------------------------
Hector Adolfo Arzu, the court-appointed trustee for Comitte
Center SA's bankruptcy proceeding, will verify creditors' proofs
of claim until Feb. 19, 2007.

Under the Argentine bankruptcy law, Mr. Arzu is required to
present the validated claims in court as individual reports.  
Court No. 5 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 Comitte Center and
its creditors.

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

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

Comitte Center was forced into bankruptcy at the behest of
Aseguradora de Creditos aka Garantias SA, which it owes
US$636,350.75.

Clerk No. 9 assists the court in the proceeding.

The debtor can be reached at:

          Comitte Center SA
          Hipolito Yrigoyen 986
          Buenos Aires, Argentina  

The trustee can be reached at:

          Hector Adolfo Arzu
          Junin 55
          Buenos Aires, Argentina


COMPANIA DE TRANSPORTE: Issues US$220 Million in Debts
------------------------------------------------------
Compania de Transporte de Energia Electrica en Alta Tension aka
Transener SA, the main electrical transport company in
Argentina, has issued debts for US$220 million: Obligaciones
Negociables due in 10 years time with an 8.8% annual fixed rate.

According to sources close to the Dolphin group, which controls
Transener, the demand from investors was three times larger than
the amount finally placed.

The transaction was aimed at restructuring a debt issued last
year when Dolphin took hold of the company and negotiated the
conditions in order to lift the company from a default status.

The new debt pays a lower interest rate and has a longer
maturity than the old one.  

The revenue from the bond issue will be used for operational
investments, a spokesperson of Transener told Business News
Americas.

Compania de Transporte de Energia Electrica en Alta Tension aka
Transener owns the national network of high-voltage power
transmission lines, which consist of nearly 8,800 kilometers of
lines together with the approximately 5,500 kilometers in its
Transba subsidiary's network.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 5, 2006,
Fitch Argentina Calificadora de Riesgo SA rated Transener
SA's debts at:

   -- Obligaciones Negociables Class 3 for US$1,300,000, D

   -- Obligaciones Negociables Class 6, at same price, with
      public offer of up to US$100,000,000, BBB

   -- Obligaciones Negociables Class 7, with discount, public
      offer, for up to US$245,000,000, BBB-

   -- Obligaciones Negociables Class A for US$822,000, D

   -- Obligaciones Negociables Class B for US$3,100,000, amount
      in circulation: US$1,395,000, BBB-

The rating action was based on the company's financial status at
June 30, 2006.


COMPANIA DE TRANSPORTE: Majority of Debtholders Tender Notes
------------------------------------------------------------
Compania de Transporte de Energia Electrica en Alta Tension
Transener SA aka Transener reported that the expiration of its
tender offer and proxy solicitation made under the Offer to
Purchase and Proxy Solicitation Memorandum dated Nov. 8, 2006,
as amended on Nov. 21, 2006, at 5:00 p.m. New York City time
(7:00 p.m. Buenos Aires time), was on Dec. 15, 2006.

As of the Expiration Date, US$32,067,427 of the nominal
principal amount outstanding of the Listed Notes (consisting of
the Par Listed Regulation S Notes due 2016 and the Par Listed
Restricted Notes due 2016), representing 71.04% of the Listed
Notes outstanding, had been validly tendered, and US$9,113,969
of the nominal principal amount outstanding of the Unlisted
Notes (consisting of the Par Definitive Notes due 2016 and the
Par Unlisted Regulation S Notes due 2016), representing 100.00%
of the Unlisted Notes outstanding, had been validly tendered.

The settlement date for the Offer is expected to be
Dec. 20, 2006.

A duly constituted meeting of holders of Listed Notes was held
at 10:00 a.m., Buenos Aires time (8:00 a.m. New York City time),
on Dec. 14, 2006, at:

          Av. Del Libertador 420
          1st Subsoil, Salon de la Castellana
          Hotel Emperador
          Buenos Aires, Argentina

A majority of the nominal principal amount outstanding of the
holders of Listed Notes present in person or by proxy at the
Listed Noteholders' Meeting voted in favor of amending the
indenture governing the Listed Notes as per the terms of the
proposed amendments as described in the Offer to Purchase
Memorandum.

At a duly constituted meeting of holders of Unlisted Notes (the
Unlisted Noteholders' Meeting), held at 12:00 p.m., Buenos Aires
time (10:00 a.m. New York City time), on Dec. 14, 2006, all of
the nominal principal amount outstanding of the holders of
Unlisted Notes present in person or by proxy at the Unlisted
Noteholders' Meeting voted in favor of amending the indenture
governing the Unlisted Notes as per the terms of the proposed
amendments as described in the Offer to Purchase Memorandum.

Compania de Transporte de Energia Electrica en Alta Tension aka
Transener owns the national network of high-voltage power
transmission lines, which consist of nearly 8,800 kilometers of
lines together with the approximately 5,500 kilometers in its
Transba subsidiary's network.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 5, 2006,
Standard & Poor's Ratings Services assigned its 'B' rating to
the proposed bond for up to US$250 million to be issued by
Argentina's largest power transmission company, Compania de
Transporte de Energia Electrica en Alta Tension Transener SA.  
At the same time, Standard & Poor's affirmed the 'B' corporate
credit rating on the company.  The outlook is stable.


COMPANIA GENERAL: Verification of Claims Is Until Feb. 23, 2007
---------------------------------------------------------------
Mario Armando Lopez, the court-appointed trustee for Compania
General de Publicidad SA's reorganization proceeding, will
verify creditors' proofs of claim until Feb. 23, 2007.

Mr. Lopez will present the validated claims in court as
individual reports on April 13, 2007.  A court in Buenos Aires
will then determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Compania General and its creditors.

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

Submission of a general report, which contains an audit of
Compania General's accounting and banking records, will follow
on May 31, 2007.

On Nov. 29, 2007, Compania General's creditors will vote on a
settlement plan that the company will lay on the table.

The trustee can be reached at:

    Mario Armando Lopez    
    Juan D. Peron 1610
    Buenos Aires, Argentina


DROGUERIA SIGMA: Claims Verification Is Until March 3, 2007
-----------------------------------------------------------
Ines Etelvina Clos, the court-appointed trustee for Drogueria
Sigma SA's bankruptcy proceeding, will verify creditors' proofs
of claim until March 3, 2007.

Ms. Clos will present the validated claims in court as
individual reports on May 10, 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 Drogueria Sigma and its creditors.

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

Submission of a general report that contains an audit of
Drogueria Sigma's accounting and banking records will follow on
June 25, 2007.

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

The debtor can be reached at:

         Drogueria Sigma SA.       

The trustee can be reached at:

         Ines Etelvina Clos
         Sarmiento 944
         Buenos Aires, Argentina


EL CIEBAL: Trustee Verifies Proofs of Claim Until Feb. 2, 2007
--------------------------------------------------------------
Mirta Haydee Addario, the court-appointed trustee for El Ciebal
SRL's bankruptcy proceeding, verifies creditors' proofs of claim
until Feb. 2, 2007.

Ms. Addario will present the validated claims in court as
individual reports on March 2, 2007.   A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by El Ciebal 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 EL Ciebal' accounting
and banking records will follow on April 14, 2007.

Ms. Addariois also in charge of administering El Ciebal's assets
under court supervision and will take part in their disposal to
the extent established by law.
        
The trustee can be reached at:

         Mirta Haydee Addario
         Lavalle 1454
         Buenos Aires, Argentina  


FOMEC SA: Verification of Proofs of Claim Is Until Feb. 28, 2007
----------------------------------------------------------------
Mario Daniel Krasnansky, the court-appointed trustee for Fomec
SA's bankruptcy proceeding, will verify creditors' proofs of
claim until Feb. 28, 2007.

Mr. Krasnansky will present the validated claims in court as
individual reports on April 23, 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 Fomec SA 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 Fomec SA's accounting
and banking records will follow on June 15, 2007.

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

The trustee can be reached at:

         Mario Daniel Krasnansky
         Viamonte 1785  
         Buenos Aires, Argentina  


HUMBOLT 550: Claims Verification Deadline Is on Feb. 28, 2007
-------------------------------------------------------------
Adolfo Jorge Santos, the court-appointed trustee for Humbolt 550
SA's bankruptcy proceeding, will verify creditors' proofs of
claim until Feb. 28, 2007.

Under the Argentine bankruptcy law, Mr. Santos is required to
present the validated claims in court as individual reports.  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 Humbolt 550 and its
creditors.

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

Mr. Santos will also submit a general report that contains an
audit of Humbolt 550's accounting and banking records.  The
report submission dates have not been disclosed.

The trustee can be reached at:

          Adolfo Jorge Santos
          Junin 55
          Buenos Aires, Argentina


SANCOR: Letter of Intent with Adecoagro Cancelled
-------------------------------------------------
As a result of an accord inked between SanCor and Banco de
Desarrollo Economico y Social de Venzuela -- Bandes, a letter of
intent between the cooperative and Adecoagro is no longer in
effect.

As previously reported, Bandes will provide US$80 million to
SanCor for the restructuring of the cooperative's debt, plus an
additional US$55 million line of credit to be used as working
capital.  

One of the conditions for the Venezuelan loan was that SanCor
keep its cooperative status and rule out the possibility of
becoming a corporation.  Though SanCor's Board of Administration
has to approve the agreement, it is said that it would have a
huge acceptance among cooperatives that are part of the company.

The funds granted by Bandes will be used to restructure SanCor's
US$200 million debt.  Most of it belongs to foreign creditors,
such as the International Finance Corp., Rabobank and Citibank,
which will be the first beneficiaries of the loan, since they
will be paid before the end of the month.

Regarding the local banks, such as Nacion, Ciudad, Credicoop and
Supervielle, they are expected to "cooperate" with the new
situation of the company and accept to refinance their debts
with longer repayment terms and lower interest rates.

SanCor will pay a Libor interest rate (5.24% annual) for the
loan, which is supposed to be 2 points below the rate charged by
banks.

SanCor will not repay with cash but with powdered milk, which it
will supply to Venezuela for 15 years.  During the first three
years, the supply will be 3,000 tons per year.  But the amount
will grow every 12 months, until reaching 18,000 annual tons.
The total of the contract is for 90,000 tons.  Besides, SanCor
will contribute with technology so that Venezuela can develop
its own dairy industry.

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

                        *     *     *

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


TARTAGAL CEREALES: Reorganization Proceeding Concluded
------------------------------------------------------
Tartagal Cereales SH's reorganization proceeding has ended.  
Data published by Infobae on its Web site indicated that the
process was concluded after a court in Tartagal approved the
debt agreement signed between the company and its creditors.


TELECOM PERSONAL: Mobile Firms Testing Multimedia Messaging
-----------------------------------------------------------
Guillermo Rivaben, Telecom Personal marketing director, told El
Cronista that mobile firms in Argentina are testing the
technical interoperability of multimedia messaging services
among different operators.

The service would be available for mobile clients of all firms
in the first quarter of 2007, Business News Americas relates,
citing Mr. Rivaben.

According to BNamericas, the service allows the subscriber to
send and receive text messages including images and other
multimedia content.

BNamericas notes that Telecom Argentina, the parent firm of
Telecom Personal, disclosed plans to invest ARS500 million in
offering third generation services, a technology that permits
more advanced multimedia services over mobile.  

Mr. Rivaben told BNamericas that some 50% of Telecom Personal
clients have mobile devices capable of running third generation
services.

Telecom Personal will offer these services in Buenos Aires,
Cordoba and Rosario by June 2007, BNamericas reports.

Telecom Personal is the wireless provider of Telecom Argentina
SA, providing services in Argentina and Paraguay over a GSM
network.  The company has 7.7 million users, with an estimated
30% market share in Argentina and a customer mix of 66% prepaid
and 34% postpaid as of June 30, 2006.

                        *    *    *

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


UNILAB SA: Deadline for Claims Verification Is on March 19, 2007
----------------------------------------------------------------
Alfonso Raul Badaracco, the court-appointed trustee for Unilab
SA's bankruptcy proceeding, will verify creditors' proofs of
claim until March 19, 2007.

Under the Argentine bankruptcy law, Mr. Badaracco is required to
present the validated claims in court as individual reports.  
Court No. 2 in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Unilub SA and its
creditors.

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

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

Unilab SA was forced into bankruptcy at the behest of Juan Enoc
Richards, whom it owes US$213,089,56.

Clerk No. 4 assists the court in the proceeding.

The debtor can be reached at:

          Unilab SA
          Sarmiento 1469
          Buenos Aires, Argentina  

The trustee can be reached at:

          Alfonso Raul Bradaracco
          Esmeralda 980
          Buenos Aires, Argentina


VALEANT PHARMA: Moody's Lowers Corporate Family Rating to B2
------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Valeant Pharmaceuticals International to B2 from B1, and kept
Valeant's ratings under review for possible further downgrade.
Moody's initially placed the ratings under review for possible
downgrade on Oct. 23, 2006.

This rating action follows the company's recent announcement
that the trustee for the holders of its 3% convertible notes due
2010 has declared a notice of default related to Valeant's late
filing of its Form 10-Q for the quarter ended Sept. 30.  

According to the indentures governing US$300-million of
Valeant's senior notes, US$240 million of convertible notes due
2010 and US$240-million of convertible notes due 2013, failure
to file timely SEC reports constitutes a covenant violation.  If
the trustee or holders of 25% of the respective series of notes
or convertibles declares a default, Valeant must cure the
violation within 60 days or the trustee or holders may declare
the debt immediately due and payable.

The full amount of the potential debt acceleration is
approximately US$780 million.  Valeant reported cash and short-
term investments of US$253 million as of June 30, 2006.  Valeant
does not currently maintain committed credit facilities.

In addition, the rating downgrade reflects several challenges
that Valeant faces in its core pharmaceutical business that
could hinder an improvement in cash flow.  These challenges
include:

   (1) boosting sales of newly launched products without a
       substantial increase in promotional spending; and

   (2) entering favorable co-development agreements with
       external partners for several late-stage pipeline
       products.  Valeant's newly launched products include
       elapar (for Parkinson's disease) and Cesamet (a synthetic
       cannabinoid for chemotherapy-induced nausea and
       vomiting).  Zelapar faces competition from Teva
       Pharmaceutical's new Parkinson's product (Agilect).
       Meanwhile, Valeant and Par Pharmaceuticals recently
       terminated a co-promotion arrangement for Cesamet.

Valeant's late-stage pipeline products include Viramidine and
retigabine.  For both of these products, Moody's believes that
Valeant would be challenged to fully fund the remaining clinical
trials without the financial resources of a co-development
partner.  Based on setbacks this year in the Viramidine clinical
development program, Moody's does not anticipate a launch prior
to 2010 or 2011, even with a co-development partner.

Moody's acknowledges several recent positive developments,
including:

   (1) ongoing progress at cost-restructuring initiatives; and

   (2) an out-licensing agreement with Schering-Plough
       Corporation for Pradefovir in which Valeant will receive
       US$19.2 million upfront and milestones potentially
       totaling US$65 million, plus royalties on any future
        sales.

Moody's ongoing rating review will primarily focus on Valeant's
ability to avoid an acceleration of its debt maturities due to
its late 10-Q filing.  Moody's currently believes that by mid-
January the ratings could be downgraded further unless one of
the following events occurs:

   (1) Valeant cures the default by filing its Form 10-Q;

   (2) Valeant obtains waivers from the holders of the senior
       notes and convertible notes waiving the default or the
       provision related to debt acceleration; or

   (3) Valeant obtains committed credit facilities for the full
       amount of its potentially accelerated debt maturities.  
       If one of those events does not occur, the ratings could
       be subject to a multi-notch downgrade.

Ratings downgraded and left under review for possible further
downgrade:

    * Valeant Pharmaceuticals International

      -- Corporate Family Rating to B2 from B1
      -- Probability of default rating to B1 from Ba3

Rating left under review for possible further downgrade:

    * Valeant Pharmaceuticals International

       -- senior unsecured notes of US$300 million due 2011: Ba3
          (LGD3, 39%)

The Ba3 rating on Valeant's senior unsecured notes due 2011 is
not being downgraded at this time, but remains under review for
downgrade.  Although the expected loss on these notes has
widened as a result of the downgrade of the Corporate Family
Rating, the expected loss is still within the range applicable
for the Ba3 rating specified in Moody's Loss Given Default
Methodology.

Moody's does not rate Valeant's 3% convertible subordinated
notes of US$240-million due 2010 or its 4% convertible
subordinated notes of US$240 million due 2013.

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International [NYSE: VRX] is a global specialty pharmaceutical
company with US$823 million of 2005 revenues.




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


SUISSE SECURITY: Court Orders Liquidation of Business
-----------------------------------------------------
The Supreme Court of the Commonwealth of The Bahamas ordered on
Nov. 13, 2006, the liquidation of Suisse Security Bank & Trust
Ltd.'s business.  In this connection, Raymond Winder of Deloitte
& Touche was appointed as the official liquidator.

The liquidator can be reached at:

          Raymond Winder
          Deloitte & Touche
          P.O. Box N-7526
          2nd Terrace West, Centreville
          Nassau, Bahamas   




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


* BELIZE: Launches Debt Exchange Offer
--------------------------------------
The government of Belize made an offer to exchange the country's
outstanding commercial indebtedness in return for new U.S.
dollar bonds to be issued by Belize.  The New Bonds have these
financial terms:

          -- a final maturity falling due in 2029;

          -- equal semi-annual principal amortizations  
             commencing in 2019, and

          -- a step-up coupon structure with annual interest
             payments set at 4.25% for the first three years
             after issuance of the New Bonds, 6.00% for years
             four and five, rising to 8.50% in year seven
             through to maturity.

The exchange offer was preceded by four months of intensive
consultations with the affected creditors by the Belizean
authorities.

Said Musa, Prime Minister of Belize, stated, "On its existing
terms, Belize's stock of external commercial debt is visibly
unsustainable.  Through this transaction, Belize will have
consolidated the debt into a single new series of bonds,
improved liquidity for the creditors, stretched out maturities
and significantly lowered the average rate of interest on the
debt.  Over the next five years, this transaction will save an
estimated US$301 million in debt service costs for Belize in
comparison with existing terms."

The National Assembly of Belize approved last week the launching
of the transaction.

Mark Espat, the Minister of National Development of Belize,
said, "This operation has been carried out with a strict
adherence to the principle of transparency and respect for
intercreditor equity.  We have worked in a cooperative manner
with our creditors and we look forward to their strong support
for the transaction."

Tenders by the creditors are due not later than Jan. 26, 2007.

The transaction is expected to close during the third week of
February 2007, when the New Bonds will also be issued.

Information concerning the offer may be obtained from the
Information Agent at:

          D.F. King & Co., Inc.
          48 Wall Street, New York, NY
          Phone: 212-269-5550
          Fax: 212-709-3279

Houlihan Lokey Howard & Zukin are acting as financial advisers
to the government of Belize in the transaction.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 11, 2006,
Standard & Poor's Ratings Services revised its long-term foreign
currency sovereign credit rating on Belize to 'SD' from 'CC/C'.

Standard & Poor's also said that it revised to 'D' its long-term
foreign currency ratings on the rated bonds that are included in
a proposed exchange.

In addition, Standard & Poor's affirmed its 'CCC+/C' local
currency sovereign credit rating on Belize.




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


GLOBAL CROSSING: Finance Unit to Offer GBP52-Mln Sr. Sec. Notes
---------------------------------------------------------------
Global Crossing (UK) Finance Plc, a wholly owned finance
subsidiary of Global Crossing (UK) Telecommunications Ltd.
(GCUK), intends to offer, subject to market and other
conditions, up to GBP52 million aggregate principal amount of
its 11.75% Senior Secured Notes due 2014.

The Notes will be issued under the indenture, dated as of
Dec. 23, 2004, pursuant to which Global Crossing (UK) Finance
Plc issued its dollar-denominated 10.75% Senior Secured Notes
due 2014 and its sterling-denominated 11.75% Senior Secured
Notes due 2014.

The Notes are being sold only to qualified institutional buyers
in the United States under Rule 144A and to qualified investors
outside the United States that are non-US.  Persons under
Regulation S and have not been and will not be registered under
the U.S. Securities Act of 1933, as amended, or any other
applicable securities laws.  The Notes may not be offered or
sold in the United States absent registration or an applicable
exemption from registration requirements.

The net proceeds of the offering would be used to acquire
Fibernet and its subsidiaries from Global Crossing Acquisitions
(UK) Ltd., an acquisition vehicle under common control with GCUK
that acquired Fibernet pursuant to an offer that was declared
wholly unconditional on Oct. 11.  Upon completion of the
acquisition, Fibernet and its subsidiaries will guarantee all
obligations under the indenture.  GCUK expects to launch the
offering on Dec. 14.

                         About GCUK

Global Crossing (UK) Telecommunications Ltd. provides a full
range of managed telecommunications services in a secure
environment ideally suited for IP-based business applications.  
The company provides managed voice, data, Internet and e-
commerce solutions to the strong and established commercial
customer base, including more than 100 UK government
departments, as well as systems integrators, rail sector
customers and major corporate clients.  In addition, GCUK
provides carrier services to national and international
communications service providers.

Global Crossing (UK) Telecommunications operates a high-capacity
UK network comprising over 5,600 route miles of fiber optic
cable connecting 150 towns and cities and reaching within just
over one mile of 64% of UK businesses.  The UK network is linked
into the wider Global Crossing network that connects more than
300 major cities and 30 countries worldwide, and delivers
services to more than 600 cities, 60 countries and 6 continents
around the globe.

                     About Global Crossing

Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
-- http://www.globalcrossing.com/-- provides telecommunication  
services over the world's first integrated global IP-based
network, which reaches 27 countries and more than 200 major
cities around the globe including Bermuda, Argentina, Brazil,
and the United Kingdom.  Global Crossing serves many of the
world's largest corporations, providing a full range of managed
data and voice products and services.  The company filed for
chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No.
02-40188).  When the Debtors filed for protection from their
creditors, they listed US$25,511,000,000 in total assets and
US$15,467,000,000 in total debts.  Global Crossing emerged from
chapter 11 on Dec. 9, 2003.

At Sept. 30, 2006, Global Crossing Ltd.'s balance sheet
reflected a US$131 million stockholders' deficit.  At
June 30, 2006, the company reported US$1.87 billion in total
assets and US$1.95 billion in total liabilities, resulting to a
stockholders' deficit of US$86 million.  It also reported a
US$173 million stockholders' deficit on Dec. 31, 2005.


REFCO INC: Plan Satisfies 13 Steps for Confirmation, Court Rules
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
confirmed Refco, Inc., and its debtor-affiliates' Modified Joint
Chapter 11 Plan on Dec. 15, 2006.

Marc S. Kirschner, the Chapter 11 Trustee for Refco Capital
Markets, Ltd.; and the Official Committee of Unsecured Creditors
and the Additional Committee are co-proponents of the Plan.

           Plan Satisfies 16 Steps Toward Confirmation

Judge Drain finds that the Plan satisfies the 16 statutory
requirements necessary to confirm a plan pursuant to Section
1129 of the Bankruptcy Code:

A. The Plan complies with the applicable provisions of Section
   1129(a)(l), which encompasses the requirements of Sections
   1122 and 1123 governing classification of claims and
   interests and contents of the Plan.

   The Plan provides for (i) the impairment of certain classes
   of claims and interests, while leaving others unimpaired,
   hence modifying the rights of certain holders of claims and
   interests and leaving the rights of others unaffected, and
   (ii) the assumption and assignment or rejection of executory
   contracts and unexpired leases to which the Debtors are
   parties.

   In addition, in accordance with Section 1123(b)(6), the Plan
   includes additional appropriate provisions that are
   consistent with applicable provisions of the Bankruptcy Code,
   including, but not limited to:

      * the Plan provisions governing distributions on account
        of Allowed Claims;

      * the Plan provisions establishing that confirmation will
        not discharge claims against the Debtors;

      * the preservation of rights of action and the creation of
        the Litigation Trust to pursue the Contributed Claims;

      * the disposition of executory contracts and unexpired
        leases;

      * retention of jurisdiction by the Court over certain
        matters after the Plan Effective Date; and

      * the means for implementation of the Plan.

B. Refco has complied with the Section 1129(a)(2) requirements
   regarding solicitation of acceptances of the Plan.

   Judge Drain concludes that the impact of the proposed
   settlement between the Plan Proponents and the Ad Hoc
   Committee of Equity Security Holders on those Classes that
   were solicited to vote is not "material" or "adverse" enough
   to warrant re-solicitation.  Judge Drain notes that no value
   was attributed to the Litigation Trust Interests in the
   original Disclosure Statement.  Any speculation as to the
   value of those interests was expressly disavowed by the
   Plan's liquidation analysis.  As a result, none of the
   Claimholders in Classes receiving Tranche A Litigation Trust
   Interests could possibly have predicated its vote for the
   Plan on a precise estimate of the value of its Litigation
   Trust recovery.

C. The Plan has been proposed in good faith, with the legitimate
   and honest purposes of maximizing the value of the Debtors'
   estates and the recovery to Claimholders.  The Plan also
   provides for the distribution of the Debtors' assets and the
   wind-down of the Debtors' corporate affairs.  Accordingly,
   the Plan complies with Section 1129(a)(3).

D. Any payment made or to be made by the Plan Proponents, or by
   a person issuing securities or acquiring property under the
   Plan, for services or for costs and expenses in or in
   connection with the Debtors' Chapter 11 case, or in
   connection with the Plan and incident to the Debtors' case,
   has been approved by, or is subject to the approval of, the
   Court as reasonable, thereby satisfying Section 1129(a)(4).

   Pursuant to interim application procedures established under
   Section 331, the Court has authorized and approved the
   payment of certain fees and expenses of professionals in the
   Debtors' cases, which fees remain subject to final review by
   a fee committee and the Court for reasonableness.

E. The manner of selection of (i) a Plan administrator, who will
   be the sole officer and director or manager, as applicable,
   of the Reorganized Debtors, and (ii) an RCM Trustee -- as the
   party responsible for the administration of the RCM estate --
   is appropriate.  Accordingly, the selection process satisfies
   Section 1129(a)(5) because the Plan Administrator will be
   appointed by the Joint Sub-Committee, and the RCM Trustee was
   appointed by Court order.  The RCM Trustee is to wind down
   the RCM Estate in accordance with the RCM Settlement
   Agreement.

F. The Plan satisfies Section 1129(a)(6) because it does not
   provide for any change in rates over which a governmental
   regulatory commission has jurisdiction.

G. In accordance with Section 1129(a)(7), the Plan satisfies the
   "best interests" test as to each Class of Impaired Claims and
   Interests because the estimated Plan recovery percentage for
   all creditors is not less than, and in most cases greater
   than, recoveries under a hypothetical Chapter 7 liquidation.

H. Holders of Class 7 Subordinated Claims against one or more of
   the Contributing Debtors and Class 8 Old Equity Interests,
   Holders of Class 7 FXA Subordinated Claims against FXA and
   Holders of Class 9 RCM Subordinated Claims against RCM are
   deemed to have rejected the Plan because they are not
   entitled to receive or retain any Distribution or property
   under the Plan on account of their Claims or Interests.  
   Holders of FXA Class 5(a) Claims voted to reject the Plan.

   Although Section 1129(a)(8) has not been satisfied with
   respect to FXA Class 5(a) and the Rejecting Classes, the Plan
   is confirmable because the Plan satisfies Section 1129(b)
   with respect to those Classes.  Section 1129(b) provides that
   the Court may cram down a plan over a dissenting vote of
   impaired classes of Claims or Interests as long as a plan
   does not "discriminate unfairly" and is "fair and equitable"
   with respect to the dissenting class.

   Judge Drain holds that the Plan Proponents presented
   uncontroverted evidence at the Confirmation Hearing that the
   Plan does not discriminate unfairly and is fair and equitable
   with respect to the Rejecting Classes as required by the
   "cramdown" requirements of Section 1129(b)(1).  Accordingly,
   Judge Drain says, upon Confirmation and the occurrence of the
   Effective Date, the Plan will be binding upon the members of
   the Rejecting Classes and FXA Class 5(a).

I. The Plan meets the requirements under Section 1129(a)(9)
   because it provides for:

      (1) payment by the Debtors of Administrative Claims, in
          full, in cash;

      (2) payment of the unpaid portion of the Non-Tax Priority
          Claims in full, in cash;

      (3) each Allowed Priority Tax Claimholder to receive:

             * cash equal to the unpaid portion of the Allowed
               Priority Tax Claim;

             * treatment in any other manner such that the
               Allowed Priority Tax Claims will not be impaired
               pursuant to Section 1124; or

             * other treatment as agreed upon in writing.

J. At least one Class of Claims against each Debtor has voted to
   accept the Plan.  Judge Drain notes that:

      (a) all impaired voting Classes have voted to accept the
          Plan with respect to each of the Contributing Debtors;

      (b) Classes 4 and 6 have voted to accept the Plan with
          respect to Refco F/X Associates, LLC; and

      (c) all impaired voting Classes have voted to accept the
          Plan with respect to RCM.

   Accordingly, the requirement under Section 1129(a)(10) has
   been met.

K. The Plan is feasible and meets the requirements of Section
   1129(a)(11) because it includes a means for liquidating a
   debtor's property.

L. All fees payable under 28 U.S.C. Section 1930 have been paid
   or will be paid on the Effective Date, thereby satisfying
   Section 1129(a)(12).

M. Under the Plan, all benefit plans, policies and programs of
   the Debtors applicable to their retirees and the retirees of
   its subsidiaries are treated as executory contracts that are
   subject to rejection.  Accordingly, the requirements of
   Section 1129(a)(13) are satisfied.

N. Refco is not required by a judicial or administrative order,
   or by statute, to pay a domestic support obligation.  Section
   1129(a)(14) is, therefore, inapplicable.

0. Refco is not an individual, and accordingly, Section
   1129(a)(15) is inapplicable.

P. Refco is a moneyed, business, or commercial corporation, and
   Section 1129(a)(16) is, thus, inapplicable.

A full-text copy of the Court's Findings of Fact, Conclusions of
Law, and Order Confirming the Modified Joint Chapter 11 Plan is
available at no charge at http://researcharchives.com/t/s?174e

                    Admin. Claims Bar Date Set

Unless previously paid before the Plan's Confirmation Date, all
requests for payment of Administrative Claims against all
Debtors and RCM that were not previously filed must be submitted
no later than 30 days after the Effective Date or be forever
barred.


The Reorganized Debtors and the RCM Trustee will have until the
later of (i) 60 days after the Effective Date or (ii) 30 days
after the filing of the Administrative Claim, to object to those
claims.

                       RCM Case Conversion

Judge Drain finds that if RCM's Chapter 11 case is converted to
a Chapter 7 case, all aspects of the Plan relating to RCM,
including all settlements, compromises and releases, will
nonetheless be and remain binding with full force and effect as
a settlement between the RCM Chapter 7 estate and the Debtors'
estates.  The Plan Effective Date will constitute the effective
date of the settlement between the RCM Chapter 7 estate and the
Estates of other Debtors.  The conversion of RCM's Chapter 11
case before the Effective Date will not impair the Effective
Date occurring with respect to the other Debtors.

                Other Plan Provisions Are Approved

Judge Drain rules that the remaining property of the Debtors'
estates, other than the Contributed Claims, which will be
transferred to and vest in the Litigation Trust, will not revest
in the Debtors or RCM on or following the Confirmation Date or
Effective Date, but will remain property of the Estates and
continue to be subject to the Court's jurisdiction until
distributed to Allowed Claimholders.

The Court also appoints RJM LLC, a New Jersey Limited Liability
Company, as the Plan Administrator.  RJM was designated by the
Joint Subcommittee.

In the event that, after the Effective Date RJM determines that
it is appropriate, each of the Affiliate Debtors will be
dissolved or merged with and into Refco Inc., with the parent
company as the surviving entity.

The Affiliate Debtors and FXA -- until they are wound up and
potentially merged with and into Refco -- will continue to exist
as Reorganized Refco, Reorganized FXA or the applicable
Reorganized Affiliate Debtor, after the Effective Date.

On the Effective Date, all executory contracts or unexpired
leases of the Debtors will be deemed rejected in accordance with
Sections 365 and 1123.

Moreover, Judge Drain rules that on the Effective Date, the
Reorganized Debtors and Post-Confirmation RCM will fund a
segregated bank account consisting of 110% of:

   (x) the amount of any holdbacks on previously billed and paid
       amounts, provided, however, that the 10% holdback of fees
       is released and may be remitted to certain professionals;
       and

   (y) the amount of estimated additional fees and expenses
       expected to be incurred by each Professional through the
       Effective Date.

All settlements of disputes embodied in the Plan are approved as
fair, equitable, reasonable and in the best interests of the
Debtors, the Reorganized Debtors and their estates.

Notwithstanding the transfer of claims to the Litigation Trust,
Judge Drain clarifies that the claims will not be merged into a
single entity, but will be deemed asserted on behalf of each
applicable Estate holding that claim immediately prior to
contribution, and will remain separate and distinct from other
Estates in connection with the prosecution.

Pursuant to Section 1123(b)(3), Judge Drain approves the Plan
Proponents' appointment of Mr. Kirschner as Litigation Trustee
to represent each of the Estates.  The Litigation Trustee will
be deemed the successor-in-interest to each of the Contributing
Debtors, FXA, and the RCM Trustee.

In addition, Mr. Kirschner will also act as trustee in the
Private Actions Trust to hold certain claims and causes of
action against third parties owned by holders of Claims or
Interests against RCM or the Debtors, and which claims, even
after contribution, are not assets of the Estates.

             Court Addresses Confirmation Objections

Judge Drain rules that all Plan confirmation objections that
have not been withdrawn, waived, or settled are overruled on the
merits.

(1) Director and Officer Indemnification Objections

Judge Drain says timely filed Claims arising in favor of present
or former officers or directors under contract, statute, or
entity governance documents of any of the Debtors, will entitled
to be asserted against the estate of each and every Debtor to
the same extent as provided for under applicable law.

Nothing in the Plan or Confirmation Order will (i) permit
Officer and Director Claims to be treated as Subordinated Claims
or otherwise subordinated, or (ii) be construed to prevent
present or former directors and officers of the Debtors from
seeking and obtaining coverage and payments from insurance
policies of Refco Inc. or from insurance policies of any other
Refco Entity.

(2) New York Financial and Hillier Capital Objections

Judge Drain directs RCM to transfer to the FXA Estate
US$2,000,000 on the Effective Date to settle the dispute.

Judge Drain also directs the Plan Administrator to form a
committee of FXA customers who did not do business with FXA in
Japan to oversee and direct the litigation involving FXA assets
in Japan.  New York Financial will serve as the chair of the
committee; Hillier Capital is appointed as member of that
committee.

Judge Drain says the Non-Japan FXA Customer Committee will have
consent rights with respect to any settlement regarding the
litigation involving FXA assets in Japan.  Furthermore, all
reasonable expenses born in connection with the role of chair of
the Non-Japan FXA Customer Committee will be born by the FXA
Estate.

New York Financial and Hillier Capital are granted an Allowed
Administrative Expense Claim against the FXA Estate pursuant to
Section 503(b) in an aggregate collective amount not to exceed
US$200,000.

(3) West Loop Objection

Judge Drain notes that West Loop Associates, LLC, will be paid
US$3,750,000 in cash by the Refco LLC estate on or before the
Effective Date.  West Loop will release all claims against the
Debtors and against Refco LLC.

In addition, West Loop will be barred from bringing any action
against any third party as to the potential matters set forth in
the Plan.  However, West Loop will expressly retain all rights
to bring actions against Mark Goodman & Associates; 550 West
Jackson Associates Limited Liability Company; Mark Goodman;
Phillip R. Bennett; Santo Maggio; and Grant Thornton.

The Court grants West Loop a US$20,000,000 Claim against Refco
Group Ltd.  The Claim will be satisfied in full by distribution
of the Litigation Trust Interests allocable to the Claim.  
However, Judge Drain says, all Litigation Trust Interests
distributable on account of West Loop's Allowed Claim will be
deemed to have been assigned by West Loop to the Contributing
Debtors for distribution to Holders of Allowed Contributing
Debtors General Unsecured Claims.

The Contributing Debtors will transfer US$1,875,000 from
Contributing Debtors Cash Distribution to the RCM Trustee for
addition to the RCM Cash Distribution.

(4) Securities Plaintiff Objection

Judge Drain clarifies that nothing in the Plan or the
Confirmation Order will be deemed to release, enjoin or bar any
claims or the prosecution of any claims asserted in In re Refco
Securities Litigation, Case No. 05-civ-8626 (SDNY), against:

   -- any of the Secured Lender Releasees that acted as an
      underwriter, book running manager or initial purchaser in
      connection with the underwriting, offering, distribution,
      or sale of the 9% Senior Subordinated Notes due 2012
      issued by certain of the Debtors or of any equity
      securities of Refco Inc., with respect to any act or
      failure to act by any Secured Lender Releasee; and

   -- other non-Debtor defendants in the Securities Litigation,
      except the Released Parties identified in the Plan,
      the Contributing Non-Debtor Affiliates, and the
      Contributing Non-Debtor Affiliate Management, to the
      extent that the Lead Plaintiffs or the putative class
      members receive a distribution under the Modified Plan.

(5) FXCM Objection

Judge Drain also clarifies that nothing in the Plan will impair
the right of FXCM Sellers from arguing that they are entitled to
an equitable remedy of rescission of RGL's purchase of the FXCM
Equity Stake.  However, any action seeking that remedy will be
heard by the Bankruptcy Court unless it has permitted the FXCM
Sellers to bring that action in a different forum.

                   Allocation of BAWAG Proceeds

The Court authorizes the Debtors to utilize the BAWAG P.S.K.
Bank fur Arbeit und Wirtschaft und Osterreichische Postsparkasse
Aktiengesellschaft  Proceeds in accordance with the Plan and the
BAWAG Allocation Order.  The BAWAG Proceeds may be used to pay
the obligations owing to RCM under the Cash Management Advance
Agreement dated Oct. 16, 2006, and to implement the other
Distributions contemplated in the Plan.  For purposes of making
Cash Distributions, the BAWAG Contingent Proceeds will be used
to satisfy the Senior Subordinated Note Distribution to the
extent the funds are available to the Estates prior to the
payment in full of the Senior Subordinated Note Distribution.

                          About Refco Inc.

Based in New York, Refco Inc. (OTC: RFXCQ) --
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 US 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).


SEA CONTAINERS: Gov't Invites Bidders for GNER's Franchise
----------------------------------------------------------
The UK government has invited participants to bid for Great
North Eastern Railways's franchise on the main London to
Edinburgh route, BBC News reports.

As reported in the TCR-Europe on Dec. 11, the government decided
to end GNER's GBP1.3-billion franchise agreement to operate the
East Coast main line railway.

A GNER spokesman told BBC that the company, or its bankrupt
parent, Sea Containers Ltd., is likely to bid for the contract.  
Other possible bidders, analysts say, could include First Group
and Virgin Trains.

As previously reported, the UK Department of Transport
temporarily authorized GNER to run the East Coast main line
railway for up to two years on a new, fixed management-contract
basis, as a temporary solution.

In 1996 Sea Containers entered into a franchise agreement with
the Strategic Rail Authority of the British Government to
operate the GNER carrying passengers on high-speed trains along
the East Coast main line in Great Britain, United Kingdom.  Sea
Containers and the Transport Department entered into a new 10-
year contract in April 2005, under which the Debtor agreed to
pay the British Government GBP1.3 billion over the course of the
franchise.

London-based The Times said GNER is reportedly close to
breaching the liquidity ratio legally required to its franchise
agreement.

Robert Mackenzie, Sea Containers CEO & GNER chairman, asserts
that the rail company did not breach its franchise agreement.  
It would be, however, unable to meet payments that were due to
start in May, BBC relates.

Some rail operators have expressed difficulty in turning in
profits because of the government's high revenue expectations,
BBC relates.

According to the report, GNER was unable to meet a 10% revenue
growth requirement in 2005, stipulated under the terms of its
franchise agreement.

                  About Great North Eastern

Headquartered in London, United Kingdom -- Great North Eastern
Railway (GNER) Limited -- http://www.gner.co.uk/-- operates  
high-speed express train services on the East Coast Main Line.  
Most of their trains run between London King's Cross and either
Edinburgh Waverley or Leeds.

                     About Sea Containers

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

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

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.


STARVEST GLOBAL: Proofs of Claim Filing Is Until Jan. 3, 2007
-------------------------------------------------------------
Starvest Global Technology Fund Ltd.'s creditors are given until
Jan. 3, 2007, to prove their claims to Jennifer Y. Fraser, the
company's liquidator, or be excluded from receiving any
distribution or payment.

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

Starvest Global's shareholders agreed on Dec. 8, 2006, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.

The liquidator can be reached at:

         Jennifer Y. Fraser
         Canon's Court, 22 Victoria Street
         Hamilton, Bermuda


STARVEST GLOBAL: Final General Meeting Is Set for Jan. 19, 2007
---------------------------------------------------------------
Starvest Global Technology Fund Ltd.'s final general meeting
will be at 9:00 a.m. on Jan. 19, 2007, or as soon as possible,
at the liquidator's place of business.

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

The liquidator can be reached at:

             Jennifer Y. Fraser
             Canon's Court, 22 Victoria Street
             Hamilton, Bermuda


TK ALUMINUM: Posts EUR22-Mln 3Q Loss; May Breach Bond Covenant
--------------------------------------------------------------
TK Aluminum Ltd. released its financial results for the third
quarter and nine months ended Sept. 30, 2006.

The company reported EUR22 million in net losses against
EUR243.5 million in revenues for the third quarter of 2006,
compared with EUR9 million in net losses against EUR229 million
in revenues for the same period in 2005.

TK Aluminum posted EUR35.7 million in net losses against
EUR799.8 million in revenues for the third quarter of 2006,
compared with EUR40.9 million in net loss against EUR747.4
million in revenues for the same period in 2005.

"Our results continue to be adversely affected by the
challenging automotive environment," reported Jake Hirsch, CEO
of Teksid Aluminum, said.  "However, we have made significant
progress in supporting the Company and shareholder strategy with
respect to the anticipated business model.  In addition to the
previously announced definitive agreement to sell certain assets
to Nemak, we also can now announce the execution of a non-
binding letter of intent to sell the Company's interest in
France, Italy and Germany to one or more affiliates of BAVARIA
Industriekapital AG."

                        Tender Offer

Concurrently, and in support of that strategy, the Company is
pursuing additional sources of liquidity and announcing the
termination of the Tender Offer and Consent Solicitation.

"We decided to proactively seek to access the debt market in an
effort to strengthen the Company's capital structure, and obtain
greater financial flexibility and additional liquidity prior to
the sale of certain assets to Nemak and BAVARIA," Jon Smith,
Interim Chief Financial Officer of Teksid Aluminum, said.  "The
Company is currently examining its options with respect to the
terms of the Tender Offer and Consent Solicitation and intends
to recommence an offer on terms and conditions to be
determined."

               Liquidity and Covenants Compliance

The company has historically funded its working capital needs,
capital expenditures and debt service requirements with cash
flows from operations and existing cash resources, including
borrowings under our Senior Credit Facility and proceeds from
the sale of receivables under our current factoring
arrangements.  

As of Nov. 30, 2006, the company had cash and cash reserves of
EUR25 million plus available factoring lines of EUR41 million
and has utilized our availability under its Senior Credit
Facility.

The Company was in full compliance with the financial covenants
of its Senior Credit Agreement and with its Second Lien
Agreement with respect to the period ended Sept. 30, 2006.  

                     Covenant Default

However, the company is currently in default of certain non-
financial covenants under the Senior Credit Facility and Second
Lien Facility owing to failure to notify the lenders prior to
certain amendments to the organizational documents of certain of
its subsidiaries.  It also failed to provide the lenders with a
perfected security interest in its Argentine assets within the
time period specified in the Senior Credit Facility and Second
Lien Facility.

The company is in discussions with the agents to the lenders
under such facilities to waive the defaults.  There can be no
assurance that the company will be able to obtain a waiver on
terms acceptable, or at all.  In addition, the company expects
that it may not comply with the financial covenants in our
Senior Credit Facility and Second Lien Facility for the quarter
ending Dec. 31, 2006.

Following a failure to comply with these financial covenants,
any available borrowings under the Senior Credit Facility would
not be permitted without agreement from our lenders.  In
addition, following the failure to comply, the senior and second
lien lenders would have the ability to exercise all of their
rights including requiring the amounts due under the Senior
Credit Facility and Second Lien Facility to become due and
payable.  In the event of acceleration under such facilities,
bondholders would be entitled to declare the aggregate principal
and unpaid interest outstanding under the senior notes to be due
and payable pursuant to the cross default provisions of the
senior notes indenture.

"In order to assure sufficient access to capital to fund
operations in the near term, the company is exploring a variety
of options to improve our near term liquidity," the company
said.  "We have obtained definitive commitments from certain
customers related to favorable payment terms and the company is
negotiating with a third party to provide the Company with a
loan to be used to fund the Company's liquidity needs."

In addition, the consummation of the Nemak transaction will
provide cash, which will be used to repay a portion of our
outstanding debt obligations.  The deterioration of the
automotive market, unfavorable foreign exchange movements, and
new third party financing will adversely affect the amount of
funds available for the repurchase of our Senior Notes, which
was contemplated at the time of announcement of the Nemak
transaction.

As previously announced, the consummation of the Nemak
transaction is subject to various conditions, including the
receipt of certain consents and waivers from our bondholders and
other customary conditions, including regulatory approvals.   
There can be no assurance that we will be successful in
obtaining additional capital resources or that the Nemak
transaction will be consummated within the time period necessary
to provide us with sufficient liquidity to fund operations, or
at all.  Should the Nemak transaction not be consummated, and
the Company is not successful in obtaining additional third
party financing, the Company intends to pursue all available
options in light of its liquidity needs.

Headquartered in Turin, Italy, TK Aluminum Ltd. --
http://www.teksidaluminum.com/-- manufactures light metal  
castings for the automotive industry.  The company's core
products are cylinder heads and blocks, and transmission and
suspension components produced with a wide range of
technologies: semipermanent mold gravity casting, high-pressure
die casting, low pressure, precision sand core and lost foam.

The company also operates in France, Poland, U.S.A., Mexico,
Brazil, Argentina and China.


TK ALUMINUM: S&P Cuts Rating to CCC- on Possible Covenant Breach
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating to 'CCC-' from 'CCC+' on Bermuda-
incorporated TK Aluminum Ltd., a manufacturer of
aluminum auto parts.  

The rating remains on CreditWatch with developing implications,
where it was placed on Nov. 6, 2006.  The developing
implications mean that the rating could be raised, lowered, or
affirmed.

"The downgrade follows the company's announcement that it may
not be in compliance with the financial covenants on its senior
and second-lien credit facilities at Dec. 31, 2006," said
Standard & Poor's credit analyst Barbara Castellano.

TKA is actively negotiating to increase its near-term liquidity
sources.  The tender offer for the senior notes due in 2011 has
been terminated unsuccessfully, and a new tender offer for these
notes should be launched shortly.  This delay could be reflected
in the closure date of TKA's deal to sell its operations in
North and South America, China, and Poland to Tenedora
Nemak S.A. de C.V., thereby increasing liquidity needs to
sustain operating activity for a longer period of time.

"We are now concerned that TKA might not respect the payments
contractually due on its financial debt, and that there is
increasing risk of a solution that would include agreements to
either reduce or postpone the scheduled payments, which would
trigger a default according to our criteria," said Ms.
Castellano.

TKA has also announced the execution of a non-binding letter of
intent to sell its assets in France, Italy, and Germany to
BAVARIA Industriekapital AG.  If such deal is completed, TKA
will have sold all of its operating activities.

TKA's net financial debt for the nine months ended Sept. 30,
2006, totaled about EUR540 million, adjusted for leases and
pension liabilities.





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


INTERNATIONAL PAPER: Discloses Tender Offer Consideration
---------------------------------------------------------
International Paper disclosed the applicable reference yields
and tender offer consideration for its debt tender offer.  

The company has offered to purchase a portion of its debt
securities, subject to a total purchase price of US$2.35
billion, excluding accrued interest, fees and expenses.  The
full terms and conditions of the tender offer are set forth in
the company's offer to purchase dated Nov. 22, 2006, and related
letter of transmittal.

The total tender offer consideration for each series of notes
subject to the tender offer is based on the applicable reference
yield plus a fixed spread.  

The applicable reference yields were determined on Dec. 18,
2006, at 2 p.m., New York City time, by the joint dealer
managers.  Holders of notes who properly submitted and accepted
by the early tender date (5 p.m. New York City time, on Dec. 6,
2006) will receive the total tender offer consideration.  
Holders of notes who properly submitted and accepted after the
early tender date but before the expiration of the tender offer
will receive the late tender offer consideration.  The late
tender offer consideration is the applicable full tender offer
consideration minus the applicable early tender premium.  All
payments for notes accepted for purchase in the tender offer
will include accrued and unpaid interest, on the principal
amount tendered up to, but not including, the settlement date
for the tender offer, which is expected to be Dec. 21, 2006,
unless extended by the company.

The amount of each series of bonds that are purchased in the
tender offer will be determined in line with the priorities
identified in the column "Acceptance Priority Level."  The
tender offer will expire at 12 midnight, New York City time, on
Dec. 20, 2006, unless extended by the company.

Banc of America Securities LLC, Citigroup Global Markets Inc.,
and J.P. Morgan Securities Inc. are the joint dealer managers of
the tender offer, while Barclays Capital Inc., Deutsche Bank
Securities Inc. and Morgan Stanley are serving as co-dealer
managers for the tender offer.  Global Bondholder Services Corp.
has been retained to serve as the depositary and information
agent.

Persons with questions regarding the tender offer should
Contact:

          Banc of America Securities LLC
          Tel: (866) 475-9886  (toll-free)

                    -- or --

          Citigroup Global Markets Inc.
          Tel: (800) 558-3745 (toll- free)

                    -- or --

          J.P. Morgan Securities Inc.
          Tel: (866) 834-4666 (toll-free)

Questions regarding the tendering of notes or requests for
copies of the offer to purchase, letter of transmittal and
related materials should be directed to:

           Global Bondholder Services Corporation
           Tel: (212) 430-3774
                (866) 470-4200 (toll- free)

                     International Paper
              Notes Subject To The Tender Offer

               Acceptance          Reference
Title of       Priority         U.S. Treasury         Reference
Security        Level             Security              Yield
--------      ----------        -------------         ---------
7.75%
Debentures                     4.50% U.S. Treasury
due 2025            1          Note due Feb. 15, 2036    4.720%

7.35% Debentures               4.50% U.S. Treasury
due 2025            2          Note due Feb. 15, 2036    4.720%

6.875% Debentures              4.50% U.S. Treasury
due 2029            3          Note due Feb. 15, 2036    4.720%

7.20% Debentures               4.50% U.S. Treasury
due 2026            4          Note due Feb. 15, 2036    4.720%

7.15% Debentures               4.50% U.S. Treasury
due 2027            5          Note due Feb. 15, 2036    4.720%

6.875% Debentures              4.50% U.S. Treasury
due 2023            6          Note due Feb. 15, 2036    4.720%

10.0% Debentures               4.625% U.S. Treasury
due 2011            7          Note due Oct. 31, 2011    4.580%

8.875% Debentures              4.625% U.S. Treasury
due 2012            8          Note due Nov. 15, 2016    4.599%

3.80% Notes                    4.875% U.S. Treasury
due 2008            9          Note due Oct. 31, 2008    4.757%

9.25% Debentures               4.625% U.S. Treasury
due 2011           10          Note due Oct. 31, 2011    4.580%

6.75% Notes                    4.625% U.S. Treasury
due 2011           11          Note due Oct. 31, 2011    4.580%

5.50% Notes                    4.625% U.S. Treasury
due 2014           12          Note due Nov. 15, 2016    4.599%

5.85% Notes                    4.625% U.S. Treasury
due 2012           13          Note due Nov. 15, 2016    4.599%


                      Total Tender   Late Tender
                         Offer          Offer         Accrued
                      Consideration  Consideration  Interest per
             Fixed    per US$1,000   per US$1,000   US$1,000
             Spread   Principal      Principal      Principal
Title of    (basis   Amount of      Amount of      Amount of
Security    points)  Notes          Notes          Notes
--------    -------  ---------      ------------   ---------
7.75%
Debentures
due 2025      168     US$1,145.83    US$1,120.83      US$23.68

7.35%
Debentures
due 2025      168     US$1,103.08    US$1,078.08      US$10.21

6.875%
Debentures
due 2029      163     US$1,062.06    US$1,037.06      US$12.60

7.20%
Debentures
due 2026      168     US$1,089.12    US$1,064.12      US$10.00

7.15%
Debentures
due 2027      173     US$1,079.87    US$1,054.87      US$1.19

6.875%
Debentures
due 2023      165     US$1,051.63    US$1,026.63      US$9.55

10.0%
Debentures
due 2011       63     US$1,182.90    US$1,172.90      US$18.33

8.875%
Debentures
due 2012       68     US$1,170.44    US$1,160.44      US$41.91

3.80% Notes
due 2008       50       US$982.16      US$977.16       US$8.44

9.25%
Debentures
due 2011       58     US$1,149.68    US$1,139.68      US$35.97

6.75% Notes
due 2011       53     US$1,067.59    US$1,057.59      US$20.63

5.50% Notes
due 2014       95       US$997.12       US$987.12     US$23.83

5.85% Notes
due 2012       58     US$1,033.46     US$1,023.46      US$8.29

Accrued interest assumes settlement on Dec. 21, 2006.

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

                        *    *    *

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


* BOLIVIA: Denies Juan Ortiz's Resignation as Oil Firm Head
-----------------------------------------------------------
The government of Bolivia has denied to El Sentinel that Juan
Carlos Ortiz -- the head of Yacimientos Petroliferos Fiscales
Bolivianos, the nation's state oil firm -- filed his
resignation.

According to La Prensa, Mr. Ortiz had resigned due to lack of
support from the government and published a copy of his
resignation letter.

The letter dated Dec. 13 that was published in La Prensa quoted
Mr. Ortiz as saying, "This is because I lack sufficient support
to move forward with urgent and indispensable measures."  

According to Prensa Latina, Mr. Ortiz was referring to contracts
with the multinational oil firms.

El Sentinel underscores that Bolivia's top oil executive
conducted the last phase of negotiations for new contracts with
foreign companies that were signed on Oct. 28.

Carlos Villegas, the energy minister said in a press conference
that Mr. Ortiz never presented a resignation letter.

Mr. Ortiz met with Bolivia's President Evo Morales and Vice
President Alvaro Garcia Linera on Dec. 16 and denied that he
submitted his resignation to the head of state, El Sentinel
notes, citing Minister Villegas.

Mr. Ortiz became president of Yacimientos Petroliferos on
Aug. 28, replacing Jorge Alvarado, who resigned after being
accused of signing a contract that ignored the principles of the
energy nationalization program that President Morales decreed in
May.

Beginning Jan. 1, 2007, Yacimientos Petroliferos would hold the
monopoly for marketing Bolivia's energy resources under the
terms of the nationalization initiative, Minister Villegas told
the press.  

The Hydrocarbons Administration will disappear, but a new agency
will be created to regulate and supervise the industry, El
Sentinel says, citing Minister Villegas.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO DO BRASIL: Eyes 30% Boost in Lending Next Year
----------------------------------------------------
Banco do Brasil expects a 30% boost in its lending in 2007 after
it increased 25% this year, Agencia Estado reports.

"This expansion is fully feasible because the proportion of
lending to GDP is growing and the economy is expanding," Antonio
Francisco de Lima Neto, interim chief executive officer of Banco
do Brasil, told Agencia Estado.

Banco do Brasil plans retail expansion in 2007, including
increased vehicle financing operations and additional financial
services accords with retailers and other non-bank partners,
Business News Americas relates, citing Mr. Neto.

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

                        *    *    *

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


BANCO NACIONAL: Okays BRL48.0 Million in Microcredit Operations
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that it has approved BRL48.0 million in microcredit
operations this year.

According to Business News Americas, Banco Nacional granted
BRL16.0 million in new microcredit loans this year and will
likely hand out a total of BRL17.0 million before next year.

BNamericas relates that the microcredit program of Banco
Nacional includes BRL80.0 million in:

          -- loans approved,
          -- loan requests submitted, and
          -- loan requests currently under analysis.

Loans granted or in the contract phase represent BRL75.3 million
of the BRL80.0-million total, BNamericas notes.

BNamericas underscores that Banco Nacional disclosed that it had
ratified a BRL12-million loan to DesenBahia -- Bahia's
development agency -- and a BRL1-million loan to Ceape,
Pernambuco's small business support agency, for microcredit
operations.

Banco Nacional expects microcredit operations at BRL400 million
within the next five years, BNamericas states.

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/--


BANCO NACIONAL: Okays BRL570-Mil. Loan for Sao Salvador Project
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that it has approved a BRL570-million loan for the
construction of the 243-megawatt Sao Salvador hydroelectric
project.

Sao Salvador is located on the river Tocantins in northern
Brazil.

Business News Americas relates that Tractebel, a unit of Suez
Energy, will construct and run the plant through CSS, a special
purpose firm.

Banco Nacional told BNamericas that total investment in the Sao
Salvador project is estimated at BRL848 million.

According to BNamericas, Tractebel will launch commercial
operations at Sao Salvador in 2011.

Most future power generation from Sao Salvador was contracted at
a government-organized auction in October 2006, when Tractebel
sold 148 megawatts of firm power for an average price of BRL135
per megawatt-hour.  The sale has guaranteed revenues that will
be used as a guarantee to pay back funding, BNamericas reports.

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/--


COMPANHIA SIDERURGICA: U.K. Regulator May Auction Corus in 2007
---------------------------------------------------------------
The contest between Tata Steel U.K. Limited and CSN Acquisitions
Ltd. to acquire Corus Group Plc may turn into an auction if the
company fails to name its buyer by Jan. 30, 2007, Bloomberg News
reports.

The Panel on Takeovers and Mergers said that it requires an
auction procedure to determine Corus' buyer if the "competitive
situation" between Tata Steel and CSN remains unresolved by the
given date.

                           CSN Bid

As reported in the TCR-Europe on Dec. 13, CSN increased its
purchase offer for Corus to US$9.6 billion or 515 pence a share,
topping Tata Steel's 500 pence per share offer.

Companhia Siderurgica's proposed purchase of Corus will be
funded through a BP4.35 billion of debt underwritten by Barclays
Plc, ING Groep NV and Goldman Sachs Group Inc., Bloomberg says,
citing Chief Financial Officer Otavio Lazcano as saying.  
Meanwhile, Companhia Siderurgica promised to pay BP138 million
to fund the deficit in the Corus Engineering Steels Pension
Scheme, Bloomberg says.  Also, the steelmaker will raise the
contribution rate on the British Steel Pension Scheme to 12%
from 10% until March 31, 2009.  The company's success in
acquiring Corus hinges on the unions' support, according to
published reports.

                           Tata Offer

As reported in the TCR-Europe on Dec. 11, the Boards of
Directors of Tata Steel Ltd. and Corus Group plc have agreed the
terms of an increased recommended revised acquisition at a price
of 500 pence in cash per Corus share.

Under the terms of the Revised Acquisition, Corus shareholders
will be entitled to receive 500 pence in cash for each Corus
Share.  This represents a price of 1,000 pence in cash for each
Corus ADS.

The terms of the Revised Acquisition value the entire existing
issued and to be issued share capital of Corus at approximately
GBP4.7 billion and the Revised Price represents:

   -- an increase of approximately 10% compared with 455 pence,
      being the Price under the original terms of the
      Acquisition;

   -- on an enterprise value basis, a multiple of approximately
      7.5x EBITDA from continuing operations for the 12 months
      to Sept. 30, 2006 (excluding the non-recurring pension
      credit of GBP96 million) and a multiple of approximately
      5.9x EBITDA from continuing operations for the year ended
      Dec. 31, 2005;

   -- a premium of approximately 38.7% to the average closing
      mid-market price of 360.5 pence per Corus Share for the
      12 months ended Oct. 4, 2006, being the last business day
      before the announcement by Tata Steel that it was
      evaluating various opportunities including Corus; and

   -- a premium of approximately 22.7% to the closing mid-market
      price of 407.5 pence per Corus Share on Oct. 4, 2006,
      being the last business day before the announcement by
      Tata Steel that it was evaluating various opportunities
      Including Corus.

The terms of the Revised Acquisition remain subject to the
conditions and do not affect Tata Steel's intentions regarding
the business of Corus, its management, employees and locations,
nor the proposals relating to Corus's pension schemes, the Corus
Share Schemes, Convertible Bonds or cancellation of the Deferred
Shares.

                        About Tata Steel

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

                       About Corus Group

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

Six years ago, the group suffered from the crisis in British
manufacturing, which prompted it to shake up management, close
plants, cut jobs, and sell assets to lower debt.  Its debt was
thought to stand at GBP1.6 billion in 2002.

After posting a net loss of GBP458 million in 2003, it embarked
on a restructuring program, signed a new EUR1.2 billion banking
facility, and issued GBP307 million worth of shares.  It
returned to operating profit in the first quarter of 2004.  The
recent recovery of steel prices and the strength of the euro are
expected to help it achieve relatively strong earnings.

              About Companhia Siderurgica Nacional

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Portugal and the U.S.

                        *    *    *

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

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

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


EMBRATEL PARTICIPACOES: Inks Agreement with Electronic Data
-----------------------------------------------------------
EDS Brasil -- the Brazilian unit of Electronic Data Systems, an
information technology firm in the United States -- said in a
statement that it has signed an accord with Embratel
Participacoes SA to supply systems applications for the latter.

Business News Americas relates that Electronic Data will upgrade
Embratel Participacoes' the revenue system and implement
middleware through a TIBCO BW platform.  It will also use supply
project management software to help Embratel Participacoes
implement best practices.

Chau Tung, the general manager of EDS Brasil, told BNamericas
that Electronic Data has been targeting the telecommunications
sector as one of most important verticals, along with the
finance, energy and manufacturing sectors.

Mr. Tung commented to BNamericas, "Applications and maintenance
account for about 28% of the company's revenues in Brazil this
year... It is one of the areas we expect to grow the most in
2007."

EDS Brasil, after over 19 years of operation, has become the
second largest provider of information technology services in
Brazil with a 5% market share, Electronic Data said on its Web
site.

Embratel Participacoes SA offers a range of complete
telecommunications solutions to the market all over Brazil,
including local, long distance domestic and international
telephone services, data, video and Internet transmission, and
is present all over the country with its satellite solutions.
Embratel is the market leader in revenues with Long Distance,
Domestic and International calls.

Embratel Participacoes is rated by Moody's:

       * local currency issuer rating -- B1; and
       * senior unsecured debt -- B2.


FOSTER WHEELER: Secures Boiler Contract from Votorantim Metais
--------------------------------------------------------------
Foster Wheeler Ltd.'s subsidiary Foster Wheeler Energia Oy,
which is part of its Global Power Group, has been awarded a
contract by Votorantim Metais Niquel SA to design and supply a
circulating fluidized-bed or CFB boiler island adjacent to
Votorantim Metais' plant located in Acampamento Macedo,
Niquelandia city near Brazilia, Brazil's capital.

Votorantim Metais is a company of Votorantim Group, one of the
largest private industrial conglomerates in Brazil with
consolidated net revenues of BRL19 billion in 2005, and the
leading producer of electrolyte nickel in Latin America.

The terms of the award, which were included in the company's
third-quarter bookings, were not disclosed.

Foster Wheeler's scope includes the design and supply of a
petroleum coke-fired 150-megawatt thermal CFB boiler, auxiliary
equipment, instrumentation and a burner management and boiler
protection system, boiler house steel construction, and advisory
services for erection and commissioning.  The boiler island,
which will generate electricity and process steam to be used in
the production of nickel, is scheduled to commence commercial
operation in November 2008.

James E. Stone, chief executive officer of Foster Wheeler Power
Group Europe, commented, "We are delighted with this award,
which is our second CFB win in Brazil during the last twelve
months.  This award confirms our client's confidence in our
leading CFB technology, which is ideally suited to burning
petroleum coke efficiently and with low emissions.  The boiler
will also be capable of firing up to 10 percent biomass."

"This is an important project for Votorantim Metais as it is our
first CFB investment.  We decided to select the best technology
available on the market with a reliable partner for project
execution," Jose Roberto Piagentini, general manager of
engineering at Votorantim Metais SA, stated.

Headquartered in Hamilton, Bermuda, Foster Wheeler Ltd. --
http://www.fwc.com/-- offers a broad range of engineering,  
procurement, construction, manufacturing, project development
and management, research and plant operation services.  Foster
Wheeler serves the refining, upstream oil and gas, LNG and gas-
to-liquids, petrochemical, chemicals, power, pharmaceuticals,
biotechnology and healthcare industries.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 18, 2006,
Standard & Poor's Ratings Services revised its outlook on Foster
Wheeler Ltd. to positive from stable.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the Clinton, New Jersey-based
engineering and construction company.  The company had about
US$217 million of total debt at Sept. 29, 2006.


HEXION SPECIALTY: ACC Completes Review of Orica Acquisition
-----------------------------------------------------------
Hexion Specialty Chemicals has been notified that the Australian
Competition and Consumer Commission or ACCC has completed its
review of the company's intent to acquire the resin and
adhesives business of Orica Ltd.  The ACCC does not propose to
intervene in the transaction and has not attached any conditions
to its decision.

Based upon the successful completion of this regulatory review,
Hexion Specialty anticipates closing of the transaction will
occur in mid-January 2007.  Hexion Specialty had reached an
agreement with Orica Ltd. to buy its adhesives and resins
business, which manufactures formaldehyde and formaldehyde-based
binding resins in Australia and New Zealand used primarily in
the forest products industry.

In Latin America, the company has operations in Argentina,
Brazil and Colombia.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 23, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Hexion Specialty Chemicals Inc. to 'B' from 'B+'.  The
outlook is stable.  S&P also lowered the rating on the existing
US$225 million first-lien senior secured revolving credit
facility to 'B' from 'B+'.

As reported in the Troubled Company Reporter on Oct. 19, 2006,
Moody's Investors Service assigned B3 ratings to the new
guaranteed senior secured second lien notes due 2014 of Hexion
Specialty Chemicals Inc.


PETROLEO BRASILEIRO: Buying Back 91.5 Million Non-Voting Shares
---------------------------------------------------------------
Petroleo Brasileiro SA, the state-run oil firm of Brazil, said
in a filing with Bovespa, the Sao Paulo stock exchange, that it
will buy back 91.5 million non-voting shares over the coming
year to adjust its cash flow and capital structure.

Business News Americas relates that Petroleo Brasileiro has 1.85
billion non-voting shares.  Some 14.2% of those shares are being
held by small investors in Brazil and abroad as depositary
receipts, while about 36.2% of those shares are traded on the
New York Stock Exchange as ADRS.  The federal government owns
15.5% of preferred shares but exercises its control through a
67% voting-right stake.  Preferred shares traded in Brazil are
valued at BRL47, while ADRs are valued at US$88.

Petroleo Brasileiro said in a statement that its board has
ratified the buyback operation.  The preferred shares that will
be purchased back will represent 4.9% of Petroleo Brasileiro's
total stock.  The shares' value will be determined in the market
during the period of the buyback transaction, which will last
365 days.  

According to a statement, the board approved plans to hire 10
banks to monitor the operation.

The buyback operation would not affect the company's 2007-11
US$87-billion strategic investment program, BNamericas states,
citing Petroleo Brasileiro.

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: P-34 Platform Starts Operations in Jubarte
---------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras disclosed that the P-34
platform has started operations, beginning the Phase 1 of
production at the Jubarte field.

The Jubarte-4 horizontal well will produce 15,000 barrels per
day of heavy oil, with API gravity of 17 degrees.  Three other
wells will constitute a contribution to P-34 to achieve its
nominal capacity of 60 thousand barrels per day in the coming
months.  The second producer well, ESS-110, is estimated to
start producing by the end of 2006.  When the P-34 production
reaches its peak, the Espirito Santo Business Unit (UN-ES) is
expected to attain a production of 135,000 bpd, contributing
more significantly to the increase of the national oil
production.

The start of production of the P-34 platform represents another
important step towards the achievement of Petrobras' petroleum
production goals set in its Strategic Plan.

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: Wins US$846-Mln Supply Pact From Prosafe
-------------------------------------------------------------
Petroleo Brasileiro SA has awarded Norway's Prosafe ASA a nine-
year, US$846 million charter contract to supply oil and gas
production ship to the company, the Associated Press reports.

Prosafe told AP that it will be responsible for engineering,
construction and operation of the floating production and
storage vessel.

The initial lease contract will last for nine years with the
possibility of a six-year extension, business news Americas
relates, citing Prosafe.

According to BNamericas, the vessel will go to produce gas in a
deepwater field in Brazil.  The vessel will have capacity to
process 10 million cubic meters per day of natural gas and
35,000 barrels per day of oil.  The ship's delivery is set for
2009.

A Petroleo Brasileiro spokesperson told BNamericas, "The FPSO
(natural gas floating production, storage and offloading vessel)
will be allocated to a field when needed."

BNamericas states that under to Petroleo Brasileiro's program,
three new gas production fields in the Campos, Espirito Santo
and Santos basins could begin operations in 2009 to 2010.

Prosafe told AP that it will convert a very large crude carrier
or VLCC that it already owns into a vessel for offshore
production and storage.  The ship will be designed to operate in
up to 1,500 meters of water.

A spokesperson of Petroleo Brasileiro told BNamericas that the
FPSO that the company contracted with Prosafe is an opportunity
lease contract.

"Prosafe sees the award as an important strategic achievement
and a confirmation of the company's strong technical
capabilities," Prosafe said in a news release.

                       About Prosafe

Prosafe ASA is a Norway-based company active within the oil and
gas industry.  The company is engaged in the provision of
support services and ancillary solutions to the industry through
the operation of its fleet.  The fleet is comprised of eight
semi-submersible service and accommodation rigs; multi-service
rigs, which offer subsea construction and well intervention;
floating production storage offloading (FPSO), and floating
storage offloading (FSO) vessels, which provide the engineering
of in-house technology, project management, operation and
maintenance services.  Prosafe is operational primarily in the
North Sea, providing drilling services along the Norwegian
continental shelf.  Prosafe is also engaged in activities in the
waters around Southeast Asia, India, Egypt and West Africa, as
well as the Gulf of Mexico.

                 About Petroleo Brasileiro

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

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

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 CORP: S&P Holds BB- Rating on CreditWatch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services left its 'BB-' corporate
credit and other ratings on San Jose, California-based Sanmina-
SCI Corp. on CreditWatch with negative implications, where they
were placed on Aug. 14, 2006.

While Sanmina-SCI filed its 10-quarter for the period ending
July 1, 2006, by the Dec. 14, 2006, deadline, the company has
filed for a 15-day extension to file its 2006 10-K, now due
Dec. 29, 2006.

"Should the company be unable to file within that deadline, we
will review the reaction of the bondholders and creditors under
the October 2006 term loan to determine any rating impact," said
Standard & Poor's credit analyst Lucy Patricola.

Sanmina-SCI's securitization programs and lenders under the
company's revolving credit have granted waivers to file through
Jan. 10, 2007, and possibly longer depending on any extension
granted by the bondholders.  The rating could be lowered to the
'CCC' category if extensions to file financial statements are
not granted by the company's remaining bondholders or lenders,
reflecting heightened concerns of debt acceleration.

In the process of reviewing stock option grants, Sanmina-SCI
uncovered several other accounting irregularities.  Upon receipt
and review of the company's 10-K, Standard & Poor's will
evaluate the impact of additional restatements, the company's
compliance with Sarbannes-Oxley requirements relating to
internal controls, and additional involvement of the SEC or
other judicial authorities, and operational performance over the
last two quarters to determine the final impact on the rating.


* BRAZIL: IDB to Create Inter-American Ethanol Commission
---------------------------------------------------------
Luis Alberto Moreno, president of the Inter-American Development
Bank aka IDB, joined public and private sector officials from
the United States and Brazil at a press conference to disclose a
plan to create the Inter-American Ethanol Commission.

Mr. Moreno collaborated with Florida Governor Jeb Bush and
Roberto Rodrigues, president of the Superior Council of
Agribusiness of the Sao Paulo State Federation of Industries or
FIESP, in announcing the initiative to create the Commission.  

The press conference was also attended by:

          -- Carlos Guedes, Brazil's Minister of Agriculture;

          -- Linneu Carlos da Costa Lima, the country's deputy
             minister of production and agroenergy;

          -- senior government and private sector officials; and

          -- representatives of Brazilian and US agricultural
             and trade associations.

Mr. Moreno, Governor Bush and Mr. Rodrigues said that the
initiative will seek to foster awareness of the benefits of
renewable fuels to economies throughout the Americas, and to
promote the creation of a hemispheric marketplace for ethanol.  
It will sponsor research and policy dialogue with the goal of
encouraging foreign and domestic investment in environmentally
sound renewable fuels and related infrastructure.

Mr. Moreno stated, "This initiative complements the IDB's
existing strategy of assisting countries that wish to diversify
their energy sources, lower their dependence in imported fuels,
and expand the use of renewable energy.  We see ethanol in as
particularly promising opportunity for some of our member
countries, and we have been providing technical assistance to
several governments that are laying the groundwork for ethanol
programs."

As an example, Mr. Moreno cited an IDB-financed study
commissioned by the Mexican government to determine the
feasibility of launching a domestic biofuels industry.  The
study, released earlier this month, found that Mexico has the
potential to replace 10 percent of its domestic gasoline
consumption with ethanol by planting sugar cane on marginal
lands that are currently not used for food crops.  In such a
scenario, Mexico could generate an estimated 400,000 new jobs in
rural areas and save approximately $2 billion per year that it
currently spends to import gasoline and gasoline additives.

"Ethanol has the potential to attract investment, generate jobs,
and jump-start development in depressed rural areas.  A dynamic
regional ethanol market would have the added benefit of
strengthening trade and energy cooperation between the US, Latin
America and the Caribbean," Mr. Moreno noted.

Mr. Moreno said that to better focus its activities in this
sector, the IDB has launched a Sustainable Energy and Climate
Change Initiative that will focus on four areas:

   -- Assist member countries that wish to better exploit
      opportunities for renewable energy and energy efficiency.

   -- Accelerate the development of new biofuel industries by
      helping governments with viability studies, policy
      development, technology adoption and special financing.

   -- Rapidly expand the use of carbon finance in the region
      through the Kyoto Protocol's Clean Development Mechanism,
      while helping governments to remove market and policy
      barriers that discourage new investment in renewable
      energy.

   -- Facilitate the adoption of comprehensive mitigation and
      adaptation strategies in countries that are vulnerable to
      impact of climate change.

Mr. Moreno also said that the IDB is in discussions with
Brazilian government authorities regarding possible financing to
expand Brazil's ethanol production, build transport and
processing infrastructure necessary to expand ethanol exports,
and transfer Brazilian technology and know-how to other
countries with ethanol producing potential.

The IDB has lent US$17 billion to energy projects in Latin
America and the Caribbean since it began operations in 1961.  
Most of these have been concentrated in electricity generation,
but the Bank has also financed geothermal, wind, and solar
energy, along with cleaner production and landfill gas projects.  
More than 25 years ago, the IDB helped to fund the early stages
of Brazil's pioneering biofuels program.

                        *    *    *

As reported on Nov. 24, 2006, Standard & Poor's Ratings Services
revised its outlook on its long-term ratings on the Federative
Republic of Brazil to positive from stable.  Standard & Poor's
also affirmed these ratings on the Republic of Brazil:

   -- 'BB'for long-term foreign currency credit rating,
   -- 'BB+' for long-term local currency credit rating, and
   -- 'B' for short-term currency sovereign credit rating.




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


168 HOLDINGS: Shareholders to Convene for Dec. 27 Final Meeting
---------------------------------------------------------------
168 Holdings Ltd.'s final shareholders meeting will be at 10:00
a.m. on Dec. 27, 2006, at the company's registered office.

These agenda 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:

          Royhaven Secretaries Limited
          Attn: Lesley Walker
          c/o PO Box 707, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 945-4777
          Fax: (345) 945-4799


ACH ACQUISITION: Calls Shareholders for Final Meeting on Dec. 27
----------------------------------------------------------------
ACH Acquisition Co.'s final shareholders meeting will be at
10:00 a.m. on Dec. 27, 2006, at:

          ACH Acquisition Co.
          77 Glenmoor Drive, Englewood
          Colorado, 80113-7116 U.S.A.

These agenda 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:

          Frederick Arnold Vierra
          77 Glenmoor Drive
          Englewood, Colorado
          80113-7116 U.S.A


AREMET GLOBAL: Shareholders to Gather for Dec. 27 Final Meeting
---------------------------------------------------------------
Aremet Global Energy Fund Ltd's final shareholders meeting will
be at 10:15 a.m. on Dec. 27, 2006, at:

          Attorneys, Queensgate House
          South Church Street
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Ogier
          Attn: Alric lindsay
          Tel: (345) 949 9876
          Fax: (345) 949 1986


AREMET (OFFSHORE): Final General Meeting Set on December 27
-----------------------------------------------------------
Aremet Energy Offshore, Ltd.'s final shareholders meeting will
be at 10:30 a.m. on Dec. 27, 2006, at:

          Attorneys, Queensgate House
          South Church Street
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Ogier
          Attn: Alric Lindsay
          Tel: (345) 949 9876
          Fax: (345) 949 1986


CRYSTAL BLUE: Liquidator to Present Wind Up Accounts on Dec. 27
---------------------------------------------------------------
Crystal Blue Funding Corp.'s final shareholders meeting will be
on Dec. 27, 2006, at:
         
          Maples Finance Ltd.
          P.O. Box 1093 GT, Queensgate House
          SouthChurch Street, George Town
          Grand Cayman, Cayman Islands

These agenda 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:

          Mark Wanless
          Liam Jones
          c/o Maples Finance Jersey Limited
          2nd Floor, Le Masurier House
          La Rue Le Masurier
          St. Helier, Jersey JE2 4YE


DALAV LIMITED: Shareholders to Gather for Dec. 27 Final Meeting
---------------------------------------------------------------
Dalav Limited's final shareholders meeting will be on Dec. 27,
2006, at:

          Coutts House, 1446 West Bay Road
          P.O. Box 707, George Town
          Grand Cayman, Cayman Islands

These agenda 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:

          Royhaven Secretaries Limited
          Attn: Lesley Walker
          c/o PO Box 707, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 945-4777
          Fax: (345) 945-4799


DE CAPITAL: Invites Shareholders for Final Meeting on Dec. 27
-------------------------------------------------------------
De Capital International Fund's final shareholders meeting will
be on Dec. 27, 2006, at the liquidator's place of business.

These agenda 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:

          Mark Wanless
          Liam Jones       
          Maples Finance Jersey Limited
          2nd Floor, La Masurier House
          La Rue Le Masurier, St. Helier
          Jersey, JE2 4YE


DE CAPITAL GENERAL: Sets Final Shareholders Meeting on Dec. 27
-------------------------------------------------------------
De Capital General Partner Ltd.'s final shareholders meeting
will be on Dec. 27, 2006, at the liquidator's place of business.

These agenda 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:

          Mark Wanless
          Liam Jones       
          Maples Finance Jersey Limited
          2nd Floor, La Masurier House
          La Rue Le Masurier, St. Helier
          Jersey, JE2 4YE


DE CAPITAL (MASTER): Final General Meeting Is Set for Dec. 27
-------------------------------------------------------------
De Capital International Master Fund's final shareholders
meeting will be on Dec. 27, 2006, at the liquidator's place of
business.

These agenda 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:

          Mark Wanless
          Liam Jones       
          Maples Finance Jersey Limited
          2nd Floor, La Masurier House
          La Rue Le Masurier, St. Helier
          Jersey, JE2 4YE


GLOBAL STANDARD: Final Shareholders Meeting Is Set for Dec. 27
--------------------------------------------------------------
Global Standard Financial Group Ltd.'s final shareholders
meeting will be at 10:00 a.m. on Dec. 27, 2006, at:

          Rawlinson & Hunter
          One Capital Place, George Town
          Grand Cayman, Cayman Islands

These agenda 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:

          William Walmsley
          P.O. Box 897, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949-7576
          Fax: (345) 949-8295


INTEGRAL TRADE: Sets Final General Meeting for December 27
----------------------------------------------------------
Integral Trade fund Ltd's final shareholders meeting will be at
10:00 a.m. on Dec. 27, 2006, at:

          Ogier
          Attorneys, Queensgate House
          South Church Street
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Ogier
          Attn: Colin MacKay
          Tel: (345) 949 9876
          Fax: (345) 949 1986


INTEGRAL (MASTER): Last Sahreholders Meeting Is on December 27
--------------------------------------------------------------
Integral Trade Master Fund SPC's final shareholders meeting will
be at 10:15 a.m. on Dec. 27, 2006, at:

           Ogier
           Attorneys, Queensgate House
           South Church Street
           Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Ogier
          Attn: Collin Mackay
          Tel: (345) 949 9876
          Fax: (345) 949 1986


JOFI YOKOHAMA: Shareholders to Gather for Dec. 27 Last Meeting
--------------------------------------------------------------
Jofi Yokohama-Aoba Holding Ltd.'s final shareholders meeting
will on Dec. 27, 2006, at:

          Maples Finance Ltd
          P.O. Box 1093 GT, Queensgate House
          South Church Street, George Town
          Grand Cayman, Cayman Islands

These agenda 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:

          Liam Jones
          Mark wanless
          c/o Maples Finance Jersey Limited
          2nd Floor, Le Masurier House
          La Rue Le Masurier, St. Helier
          Jersey JE2 4YE          


MARINE OPERATOR: Invites Shareholders for Dec. 27 Final Meeting
---------------------------------------------------------------
Marine Operator Two Ltd.'s final shareholders meeting will be at
10:30 a.m. on Dec. 27, 2006, at:

          NCB Consulting Ltd.
          P.O. Box 1168GT
          3rd Floor Harbour Place
          103 South Church Street, George Town
          Grand Cayman, Cayman Islands

These agenda 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:

          David A. Bodden
          c/o M&C Corporate Services Limited
          P.O. Box 309, George Town
          Grand Cayman, Cayman Islands


N KAKIGARA: Shareholders to Convene for Dec. 27 General Meeting
---------------------------------------------------------------
N Kakigara Corp.'s final shareholders meeting will be on
Dec. 27, 2006, at:

          Maples Finance Ltd.
          P.O. Box 1093 GT, Queensgate House
          South Church Street, George Town
          Grand Cayman, Cayman Islands

These agenda 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:

          Liam Jones
          Mark Wanless
          c/o Maples Finance Jersey Limited
          2nd Floor, Le Masurier House
          La Rue Le Masurier, St. Helier
          Jersey JE2 4YE


POLAR CAPITAL: Liquidator to Present Wind Up Accounts on Dec. 28
----------------------------------------------------------------
Polar Capital European Market Neutral Absolute Return Fund
Ltd.'s final shareholders meeting will be at 10:00 a.m. on
Dec. 28, 2006, at the company's registered office.

These agenda 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:

          Q & H Nominees Ltd.
          Attn: Greg Link
          P.O. Box 1348, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 4123
          Fax: (345) 949 4647


SBP CAPITAL: Final Shareholders Meeting Is Set for December 27
--------------------------------------------------------------
SBP Capital, Ltd.'s final shareholders meeting will be at 10:00
a.m. on Dec. 27, 2006, at:

          Ogier
          Attorneys, Queensgate House
          South Church Street
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Ogier
          Attn: Alric Lindsay
          Tel: (345) 949 9876
          Fax: (345) 949 1986


VTC CORPORATE: Invites Shareholders for Final Meeting on Dec. 27
----------------------------------------------------------------
VTC Corporate Services's final shareholders meeting will be on
Dec. 27, 2006, at:
       
          Vontobel Cayman
          Grand Pavilion Commercial Centre
          West Bay Road, Grand Cayman
          Cayman Islands

These agenda 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:

          Margaret Thompson
          Baverly Lorimer
          PO Box 32301 SMB, Grand Cayman
          Cayman Islands
          Tel: (345) 945 9200
          Fax: (345) 945 9201
  

ZANETT LOMBARDIER: Final Shareholders' Meeting Set for Dec. 27
--------------------------------------------------------------
Zanett Lombardier Ltd.'s final shareholders meeting will be at
11:00 a.m. on Dec. 27, 2006, at:

          Williams House
          20 Reid Street
          Hamilton HM 11, Bermuda

These agenda 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:

          Peter D. Liabotis
          Olympia Capital (Cayman) Limited
          Williams House, 20 Reid Street
          Hamilton HM 11, Bermuda




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


REVLON: Declares Subscription Price & Terms of US$100MM Offering
----------------------------------------------------------------
Revlon Inc., in conjunction with its US$100 million rights
offering, disclosed the subscription price and the number of
shares of Revlon Class A common stock that can be purchased
pursuant to each subscription right.

In line with the rights offering, Revlon will distribute, at no
charge, one transferable subscription right for each share of
Class A common stock and Class B common stock held by each
stockholder of record as of 5:00 p.m. New York City time, on
Dec. 11, 2006.  Each subscription right will enable rights
holders to purchase 0.2308 of a share of Revlon's Class A common
stock.  Fractional shares of Class A common stock will not be
issued.  The subscription price for each share of Class A common
stock is US$1.05 per share.

The subscription rights include an over-subscription privilege
pursuant to which each rights holder that exercises its basic
subscription privilege in full (as described in the prospectus
supplement being mailed on or about Dec. 18, 2006, to
stockholders of record as of the Record Date) may also subscribe
for additional shares at the same subscription price of US$1.05
per share, to the extent that other rights holders (other than
MacAndrews & Forbes) do not exercise their subscription rights
in full.  If a sufficient number of shares are not available to
fully satisfy the over-subscription privilege requests, the
available shares will be sold pro-rata among subscription rights
holders who exercised their over-subscription privilege, based
on the number of shares each subscription rights holder
subscribed for under the basic subscription privilege.

Approximately US$50 million of the proceeds from the rights
offering are expected to be used to redeem approximately US$50
million principal amount of the 8-5/8% Senior Subordinated Notes
due 2008 of Revlon Consumer Products Corp., its wholly-owned
operating subsidiary, with the remainder of such proceeds
expected to be used to repay indebtedness outstanding under
Revlon Cosumer's US$160 million multi-currency revolving credit
facility, without any permanent reduction in that commitment,
after paying fees and expenses incurred in connection with the
rights offering.

While Revlon cannot provide assurances that a trading market
will develop, the subscription rights are expected to trade on
the NYSE under the symbol "REV RT" beginning approximately
Dec. 20, 2006, until Jan. 18, 2007, the last business day prior
to the scheduled Jan. 19, 2007 expiration date of the rights
offering (subject to Revlon's right to extend the rights
offering subscription period).

MacAndrews & Forbes Holdings, Inc. and its affiliates other than
Revlon, which is Revlon's parent company and which is wholly-
owned by Ronald O. Perelman, has agreed not to exercise its
basic subscription privilege.  Instead, pursuant to a Stock
Purchase Agreement between MacAndrews & Forbes and Revlon,
MacAndrews & Forbes has agreed to purchase, in a private
placement directly from Revlon, its pro rata share of the US$100
million of Class A common stock covered by the rights offering,
which share MacAndrews & Forbes would otherwise have been
entitled to subscribe for in the rights offering pursuant to its
basic subscription privilege (equal to approximately 60% of the
shares available for purchase under the subscription rights
distributed in the rights offering, or approximately US$60
million).

MacAndrews & Forbes has also agreed not to exercise its over-
subscription privilege in the rights offering, which will
maximize the shares available for purchase by other stockholders
pursuant to their over-subscription privilege. However, pursuant
to its existing backstop obligation, if any shares remain
following the exercise of the basic subscription privilege and
the over-subscription privilege by other rights holders,
MacAndrews & Forbes will backstop US$75 million of the rights
offering by purchasing, also in a private placement directly
from Revlon, such number of remaining shares of Class A common
stock offered but not purchased by other rights holders as is
sufficient to ensure that the aggregate gross proceeds from

   (i) this rights offering,

  (ii) MacAndrews & Forbes' purchase of the shares that it would
       otherwise have been entitled to subscribe for pursuant to
       its basic subscription privilege and

(iii) if necessary, the backstop, total US$75 million.

The rights offering materials, including a prospectus supplement
and the subscription rights certificates, are being mailed on or
about Dec. 18, 2006, to stockholders of record as of the Record
Date.  The prospectus supplement will contain important
information about the rights offering.  Stockholders are urged
to read the prospectus supplement when it becomes available.  
The expiration date of the rights offering will be Jan. 19,
2007, unless extended by Revlon.

Revlon also announced that Revlon Consumer has entered into a
third amendment to its existing US$87.0 million 2004 Senior
Unsecured Line of Credit from MacAndrews & Forbes (which is
currently undrawn and which would otherwise have terminated
pursuant to its terms upon the consummation of the rights
offering) which provides that, upon the consummation of the
rights offering, US$50.0 million of the line of credit will
continue through Jan. 31, 2008 on substantially the same terms.

Revlon, Inc. (NYSE:REV) -- http://www.revloninc.com/-- is a
worldwide cosmetics, skin care, fragrance, and personal care
products company.  The company's vision is to deliver the
promise of beauty through creating and developing the most
consumer preferred brands.  The company's brands include
Revlon(R), Almay(R), Vital Radiance(R), Ultima(R), Charlie(R),
Flex(R), and Mitchum(R).  The company's Latin American
operations are located in Argentina, Brazil, Chile, Mexico and
Venezuela.

At March 31, 2006, the company's balance sheet showed
US$1,085,400,000 in total assets and US$2,127,500,000 in total
liabilities, resulting in a stockholders' deficiency of
US$1,042,100,000.




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


BANCOLOMBIA: Board OKs Issuance of Bonds and Subordinated Bonds
---------------------------------------------------------------
Bancolombia SA's board of directors approved the issuance of
bonds or "bonos ordinaries" in an aggregate principal amount of
up to COP1,500,000,000,000 or its US dollar equivalent and the
issuance of subordinated bonds or "bonos ordinarios
subordinados" in an aggregate principal amount of up to
COP1,000,000,000,000 or its US dollar equivalent as follows:

   1. The bonds will be offered in Colombia in multiple and
      successive issuances subject to a total limit and that
      should be done in a maximum term of five years.  According
      to the regulations that were approved, the issuances of
      the bonds may have various series with financial
      conditions and maximum interests established by the Board
      of Directors for each issuance.  The President was
      authorized to do the offer of each issuance in accordance
      with the conditions determined in the regulations.

   2. The subordinated bonds may be sold in Colombia and/or
      outside Colombia depending on specific markets conditions
      and authorizations of the applicable governmental
      authorities and of the Board of Directors who will approve
      the regulations and will establish the conditions of the
      securities including the term, the interest rates and the
      capital amortization.

The bonds and the subordinated bonds have not been registered
under the U.S. Securities Act of 1933, and may not be offered in
the United States or to US persons except pursuant to an
exemption from the registration requirements of the Act.

Bancolombia will use the proceeds of this issuance in the
development of activities that constitute its main purpose,
which consists in carrying out all the operations and business
legally authorized to banking institutions.

Headquartered in Medellin, Colombia, Bancolombia SA --
http://www.bancolombia.com.co-- operates as a commercial bank.
It organizes its activities into three primary divisions: Retail
and Small and Medium-Sized Enterprises (SMEs) Banking, Corporate
Banking, and Mortgage & Building Banking.  The bank offers
traditional banking products and services, like checking
accounts, saving accounts, time deposits, lending (including
overdraft facilities), mortgage loans, personal and corporate
loans, credit cards and cash management services.  It also
offers non-traditional products and services, like pension
banking, bancassurances, international transfers, fiduciary and
trust services, brokerage services and investment banking.

                        *    *    *

The Troubled Company Reporter-Latin America reported on
April 28, 2006, that Moody's Investors Service upgraded
Bancolombia's bank financial strength ratings to D+ from D with
a stable outlook.

Moody's added that the action concludes the review for possible
upgrade that was announced on Oct. 13, 2005.  Moreover,
Bancolombia's Ba3/Not Prime long-and short-term foreign currency
deposit ratings were affirmed.  Moody's said the outlook on all
ratings is stable.


BBVA COLOMBIA: Sister Firms Managing Debtors' Insurance Policies
----------------------------------------------------------------
BBVA Colombia has awarded the contract to manage its debtors'
insurance policies next year to sister companies BBVA Seguros de
Vida Colombia and BBVA Seguros Colombia, Business News Americas
reports.

BBVA Colombia said in a filing with Superfinanciera -- the
Colombian financial regulator -- that it has awarded its
debtors' group life policies to life insurer BBVA Seguros de
Vida, while the car and fire and earthquake contract went to P&C
insurer BBVA Seguros Colombia.

BBVA Colombia had invited local insurers to bids for the
insurance contracts on Dec. 5, BNamericas states.

Headquartered in Bogota, Colombia, BBVA Colombia --
http://www.bbva.com.co/-- is engaged in the holding and  
accomplishment of all operations, acts and contracts of banking
establishments.  It is 95.16% owned by Banco Bilbao Vizcaya
Argentaria.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
March 13, 2006, Moody's Investors Service assigned a 'Ba3' long-
term foreign currency deposit rating on BBVA Colombia.  Moody's
changed the outlook to stable from negative.


BRIGHTPOINT INC: Buying CellStar's Latin American Operations
------------------------------------------------------------
CellStar Corp. has entered into an agreement to sell
substantially all of the assets of its US and Miami-based Latin
American operations to a wholly owned subsidiary of Brightpoint,
Inc.  The company also entered into an agreement to sell all of
its Mexico operations to Soluciones Inalambricas SA de CV and
Prestadora de Servicios en Administracion y Recursos Humanos, SA
de CV.  

The closings of the proposed transactions are expected to occur
simultaneously in late March or early April of 2007.  The two
transactions are not dependent on each other.  The transactions
do not include the company's operations in Chile, and the
company is currently exploring alternatives related to those
operations.

Robert Kaiser, chairperson of the board and chief executive
officer of CellStar, said, "After much deliberation and
consideration, our Board of Directors has determined that these
transactions are in the best interest of our stockholders.  We
are working with the acquiring companies to ensure smooth
transitions.  Although the company has improved its financial
performance significantly during the last three quarters, we are
finding it more and more difficult to compete in the marketplace
and to maintain a position as a major distributor in the
industry. These transactions will allow our customers and
vendors to continue to receive the same high level of service
and performance they have come to expect from CellStar.  We plan
to keep you updated periodically during the next several
months."

     Overview of the Proposed Transaction with Brightpoint

CellStar has entered into a definitive agreement with a wholly
owned subsidiary of Brightpoint to sell substantially all of the
assets of its operations in the US and its Miami-based Latin
American operations and for the buyer to assume certain
liabilities related to those operations.  The company's
operations in Mexico and Chile and other businesses or
obligations are excluded from the proposed transaction.

The boards of directors of Brightpoint and CellStar have
unanimously approved the proposed transaction. The proposed
closing of the transaction is subject to certain conditions,
including approval by CellStar's stockholders and certain
regulatory approvals.  Under the terms of the proposed
transaction, Brightpoint will pay CellStar US$88 million in
cash, subject to adjustment based on net assets.

        Overview of the Proposed Mexican Transaction

CellStar has entered into a definitive agreement with Soluciones
Inalambricas SA de CV and Prestadora de Servicios en
Administracion y Recursos Humanos, SA de CV, two affiliated
Mexican companies, to sell its operations in Mexico.  The
proposed purchase is a stock acquisition of all of the
outstanding shares of the company's three Mexican subsidiaries,
and will include the company's interest in Comunicacion
Inalambrica Inteligente SA de CV, a joint venture with
Soluciones Inalambricas.

The board of directors of CellStar has unanimously approved the
proposed transaction set forth in the definitive agreement.  The
closing of the proposed transaction is subject to certain
conditions, including approval by CellStar's stockholders.  At
the closing, the company expects to receive between US$20.0 to
US$22.0 million in cash, based on the 2007 operating performance
of the operations up to the closing date.

                       Next Steps

In January 2007, CellStar expects to file a proxy statement with
the U.S. Securities and Exchange Commission relating to the
stockholders' meeting to vote on the two transactions.  In
February 2007, the company expects to mail the proxy statement
to stockholders.  The stockholders' meeting is expected to occur
in late March or early April 2007, and if approved, the
transactions are expected to close shortly thereafter.

The net proceeds available for distribution to the stockholders
will depend upon the amount of cash received from each of the
proposed transactions and the amount of liabilities the company
must satisfy. Among other things, the company will pay in full
the amounts it owes at the time of the closing under its loan
agreements with Wells Fargo Foothill and CapitalSource Finance.  
Following the closing of the two transactions, the company may
retain certain assets and liabilities. Once the company has sold
those assets and satisfied those liabilities it will, as
promptly as possible, distribute the remaining proceeds to the
stockholders.  At this time, the company has not set a
distribution date and cannot estimate the amount of net proceeds
that will be distributed to stockholders.  However, the company
estimates that the amount distributed will not exceed US$3.25
per share and may be substantially less.  The proxy statement
the company will send to stockholders in connection with the
stockholders' meeting will contain more information with respect
to the estimated distribution amount and timing.

Raymond James acted as financial advisor to CellStar in
connection with the proposed transactions.  Raymond James and
Southwest Securities, Inc. provided fairness opinions to the
Board of Directors of the company in connection with the
proposed transactions.

                  About Brighpoint Inc

Headquartered in Plainfield, Indiana, Brightpoint, Inc.
-- http://www.brightpoint.com/-- engages in the distribution of
wireless devices and accessories, as well as provision of
customized logistic services to the wireless industry.  The
Company primarily operates in Australia, Colombia, Finland,
Germany, India, New Zealand, Norway, the Philippines, the Slovak
Republic, Sweden, United Arab Emirates and the United States.  
The Company's customers include mobile operators, mobile virtual
network operators, resellers, retailers and wireless equipment
manufacturers.  Brightpoint was incorporated in 1989 under the
name Wholesale Cellular USA, Inc. and changed its name to
Brightpoint Inc. in 1995.

                        *    *    *

On April 12, 2006, Standard & Poor's placed the Company's long-
term local and foreign issuer credit ratings at BB- with a
stable outlook.

                  About CellStar Corp

Headquartered at Coppell, Texas, CellStar Corp. --
http://www.cellstar.com/-- provides logistics and distribution  
services to the wireless communications industry.  CellStar
Corp. has operations in North America and Latin America, and
distributes handsets, related accessories and other wireless
products from manufacturers to a network of wireless service
providers, agents, MVNOs, insurance/warranty providers and big
box retailers.  CellStar Corp. specializes in logistics
solutions, repair and refurbishment services, and in some of its
markets, provides activation services.

                        *    *    *

CellStar Corp.'s 5% Convertible Subordinated Notes due 2002
carry Moody's Investors Service's Ca2 rating.


SITEL CORPORATION: Earns $7.4 Million in 2006 Second Quarter
------------------------------------------------------------
Sitel Corp. reported $7.4 million of net income on $278.3
million of revenues for the quarter ended June 30, 2006,
compared with $2.6 million of net income on $251.8 million of
revenues for the same period in 2005.

Revenue increased $26.5 million, mainly due to the $23.7 million
increase in European revenue and the $4.3 million increase in
Latin America revenue, offset by a $1.4 million decrease in Asia
Pacific revenue.

North American revenue in the first quarter of 2006 remained
consistent compared to the same period in 2005.  A decrease of
$24.3 million of revenue resulting from the loss of General
Motors was offset by $24.2 million of revenue growth primarily
in customer acquisition, technical support and risk management.  
The weakening of the U.S. dollar versus the Canadian dollar
resulted in $600,000 of the increase.

European revenue increased $23.7 million for the three months
ended June 30, 2006 compared to the same period in 2005.  Higher
sales volumes from new and existing clients resulted in an
increase in revenue of $24.2 million for the three months ended
June 30, 2006 compared to the same period in 2005.  The
strengthening of the U.S. dollar versus the British pound and
Euro partially offset this increase by $500,000.

Latin America revenue increased $4.3 million for the three
months ended June 30, 2006 compared to the same period in 2005.  
Higher sales volumes from new and existing clients resulted in
an increase in revenue of $3.4 million, while the weakening of
the US dollar versus the Brazilian Real resulted in the
remaining $900,000 of the increase.

Asia Pacific revenue decreased $1.4 million for the three months
ended June 30, 2006 compared to the same period in 2005.   Lower
sales volumes with existing clients resulted in a decrease in
revenue of $300,000, while the strengthening of the U.S. dollar
versus the New Zealand and Australian dollars resulted in the
remaining $1.1 million of the decrease.

The $4.8 million increase in net income is primarily due to the
$26.5 million increase in revenues, the $6 million gain on
settlement with a business partner, the $1.1 million decrease in
interest expense, the $1.3 million increase in equity in
earnings of affiliates, and the $549,000 increase in other
income, offset by the $28.4 million increase in operating
expenses(excluding the effects of the $6 million settlement
gain).  The increase in operating expenses is primarily due to
the $25.1 million increase in direct labor and
telecommunications expense.

Interest expense decreased $1.1 million or 34.0% due to a gain
of $1.4 million for a reduction in interest on a Brazil tax
obligation being recorded as a reduction of these expenses.  
This gain was partially offset by higher amortization of debt
acquisition costs.  

Equity in earnings of affiliates increased $1.3 million for the
three months ended June 30, 2006 compared to the same period in
2005 primarily due to the $1.2 million in insurance proceeds
received by the company's India joint venture related to flood
damage in 2005.

Other income increased primarily as a result of fluctuations in
foreign currency remeasurement gains arising from monetary
assets and liabilities denominated in currencies other than a
business unit's functional currency.

The increase in direct labor and telecommunications expense was
primarily the result of higher ramp-up costs of new client
programs, particularly in Europe, and a change in the mix of
services provided in the three months ended June 30, 2006
compared to the same period in 2005.

At June 30, 2006, the company's balance sheet showed $429.2
million in total assets, $288.5 million in total liabilities,
$5.8 million in minority interests, and $134.9 million in total
stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2006, are available
for free at http://researcharchives.com/t/s?1733

              Merger Agreement with ClientLogic Corp.

On Oct. 13, 2006, the company and ClientLogic Corporation
disclosed that they have signed a definitive merger agreement.
Under the terms of the agreement, a newly formed subsidiary of
ClientLogic will merge with the company and pay $4.05 per share
in cash for all of the outstanding common stock of the company.  
The board of directors of each company has unanimously approved
the transaction.  The transaction is expected to be completed in
the first quarter of 2007 and is subject to customary closing
conditions, including approval of the company's shareholders and
regulatory clearances.  The company's board of directors has
recommended to its shareholders that they vote in favor of the
transaction.  

                         About Sitel Corp.

Sitel Corp.(NYSE:SWW) -- http://www.sitel.com/-- provides  
outsourced customer support services.  On behalf of many of the
world's leading organizations, SITEL designs and improves
customer contact models across its clients' customer
acquisition, retention and development cycles.  SITEL manages
approximately two million customer interactions per day via the
telephone, e-mail, Internet and traditional mail.   SITEL has
over 42,000 employees in 101 global contact centers, utilizing
more than 32 languages and dialects to serve customers in 56
countries.

In Latin America, Sitel has business units in Argentina, Brazil,
Colombia, Mexico and Panama.

                           *     *     *  

Sitel Corp. carries Standard & Poor's Rating Services 'B'
corporate credit rating.


* COLOMBIA: Selling 51.9% Stake in Acerias Paz for COP425.9 Bil.
----------------------------------------------------------------
The government of Colombia and shareholder groups said in a
filing with the securities regulator that they will sell their
combined 51.9% stake in Acerias Paz del Rio SA for a minimum of
COP425.9 billion.

Dow Jones Newswires relates that the government, which owns
9.15% of Acerias Paz, and a group of 6,700 workers and former
workers of the firm, which own a 33.89% stake, decided to
auction both stakes to a private company.

According to the filing, the shareholders will sell a total of
8.19 billion shares in Acerias Paz at an auction in January
2007, setting a minimum price of COP52 per share.

Dow Jones emphasizes that the bidder offering the highest amount
per share will win control of Acerias Paz.

The report says that the minimum price of the Acerias Paz stake
is 9.6% lesser than the share's closing price on Dec. 14, which
was COP57.5.  

Arcelor-Mittal and Gerdau SA asked the Colombian antitrust
regulator for prior approval of a possible takeover of Acerias
Paz, expressing their intention to bid, Dow Jones notes.

Dow Jones underscores that no other firm has shown interest in
the Acerias Paz shares.

According to Dow Jones, another group of unidentified
shareholders disclosed in November that they would also join the
sale, increasing the stake to be auctioned to 51.9%.

The auction will probably take place in the middle of January
2007.  Other minority shareholders may still join the process,
boosting the stake of Acerias Paz to be sold, Miguel Reyna -- a
representative from local investment bank Latinvestco, which is
handling the sale -- told Dow Jones.

                        *    *    *

On July 25, 2006, Fitch rated the Republic of Colombia's US$1
billion issue of fixed-rate Global Bonds maturing Jan. 27, 2017,
'BB'.  The rating is in line with Fitch's long-term foreign
currency rating on Colombia.  Fitch said the Rating Outlook is
Positive.



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


* COSTA RICA: IDB Grants US$20MM to Promote Sustainable Tourism
---------------------------------------------------------------
A US$20 million loan from the Inter-American Development Bank
will support a program to promote sustainable tourism in
protected wilderness areas in Costa Rica.

The program seeks to boost revenues for the National
Conservation Areas System or SINAC, the state agency responsible
for Costa Rica's 157 protected wilderness areas.

The program's strategy consists of raising the quality of
tourism in protected areas by investing in infrastructure and
improving the information and services provided to visitors.  At
the same time it will promote local development in the micro
regions around the protected areas and improve inter-agency
coordination, particularly between SINAC and the Costa Rican
Institute of Tourism.

One of the program's goals is to promote sustainable tourism in
a larger number of protected areas in order to reduce the burden
on the six areas that draw a vast majority of visitors.

The loan will help finance investments in infrastructure and
environmental conservation in 10 protected areas:

   -- Manuel Antonio,
   -- Corcovado,
   -- Braulio Carrillo,
   -- Volcan Poas,
   -- Cahuita,
   -- Volcan Arenal,
   -- Irazu,
   -- Tortuguero,
   -- Rincon de la Vieja and
   -- Cano Negro.

Seven of these areas are in regions where poverty levels exceed
the national average.

A total of 28 municipalities around these protected areas may
obtain financing for projects such as improving access roads,
hillside stabilization and drainage.  The program also aims to
involve the private sector in developing local tourism.

Additionally, the program will help strengthen SINAC's
administrative and financial management as well as provide
resources for training its staff in tourism.

The loan is for 20 years, with a five-year grace period and a
variable interest rate.

                        *    *    *

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




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


BANCO INTERCONTINETAL: Law Firm Dumps Luis Renta for Lack of Pay
----------------------------------------------------------------
Shook Hardy & Bacon -- one of the law firms that represented
Luis Alvarez Renta, a Dominican financier who was indicted in
the Banco Intercontinental fraud case -- has asked the United
States District judge Jose E. Martinez's permission to withdraw
from the case because Mr. Renta has not paid them, Dominican
Today reports.

According to Dominican Today, Richard Smith, one of Shook
Hardy's attorneys, had represented Mr. Renta against the
Dominican state -- represented by Matias Dorta of Tew Cardenas
law firm in a lawsuit that closed last year.  Mr. Renta was
found guilty for illegal bank transfer from Dominican Republic
to the United States and was sentenced to pay over US$150
million in damages.

Shook Hardy told Clave Digital that Mr. Renta and the Wadeville
firm owed it significantly in excess of US$400,000 as of
Oct. 5, 2006.

Dominican Today relates that Shook Hardy also stated in their
request for withdrawal irreconcilable differences that make the
continuation of the representation difficult, preventing a joint
effort.

Mr. Martinez gave Shook Hardy permission to withdraw from the
Banco Intercontinental case, Dominican Today reports.

Shook Hardy can be reached at:

          Richard C. Smith (Dick)
          Partner
          Shook Hardy & Bacon
          Miami Center
          201 S. Biscayne Blvd. Suite 2400
          Miami, Florida 33131-4332
          USA
          Direct Phone: 305-960-6924
          Main Phone: 305-358-5171
          Fax: 305-358-7470

The Dominican state's counsel can be reached at:

          Matias Dorta
          Attorney at Law
          Tew Cardenas LLP
          Four Seasons Tower, 15th Floor
          1441 Brickell Avenue
          Miami, Florida 33131-3407
          USA
          Phone: (305) 539-2135
          E-mail: mrd@tewlaw.com  

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


BANCO INTERCONTINENTAL: Luis Renta Says Own Money Used in Bank
--------------------------------------------------------------
Luis Alvarez Renta, a financier who is one of the defendants in
the Banco Intercontinental fraud case, presented before the
National District First Collegiate Court of the Dominican
Republic evidence that for six years he deposited over US$127
million of his own money in the bank and in its affiliated
firms, Dominican Today reports.

As reported in the Troubled Company Reporter-Latin America on
Dec. 14, 2006, the defense presented in court documents proofs
that Mr. Renta deposited US$127 million to Banco
Intercontinental from 1997 to 2003.  The court discarded charges
against Mr. Renta regarding the operation of a parallel bank in
Banco Continental.  The defense said that the court has also
decided to reject accusations not included in the original
indictment.  Eric Raful, the defense coordinator, said that the
judges' decision eliminates 34 of the 41 arguments the central
bank's lawyers introduced surreptitiously without any base to
sustain them.  The decision was in strict adherence to what
Penal Procedural Code establishes.  

According to Dominican Today, Mr. Renta said that his inclusion
in the Banco Intercontinental scandal was a clumsy act of
corruption supported by Jose Lois Malkun, the former central
bank chief.  

The move was aimed at transferring to third parties the duty
free shops that he had legitimately acquired from Ramon Baez
Figueroa, the former president of Banco Intercontinental,
Dominican Today says, citing Mr. Renta.

According to the report, Mr. Renta presented documents with
declarations by Mr. Malkun and Zunilda Paniagua, the Banco
Intercontinental Liquidator Commission director, where both
admitted that they didn't have evidence that would incriminate
Mr. Renta was behind the operations that would have caused Banco
Intercontinental's collapse.

Manuel Rubio, the former legal adviser of the central bank who
was responsible for assembling the Banco Intercontinental case,
declared under oath that he specifically indicated to Mr. Malkun
that there was no evidence against Mr. Renta, Dominican Today
notes, citing the latter.

Mr. Renta told Dominican Today that he had always wanted an
opportunity to appear in court so that the truth be known, after
three years of being humiliated through a public opinion
campaign supported by the central bank.

Mr. Renta described the persecution against him as vile and
perverse.  According to him, Hector Valdez Albizu -- the current
central bank governor -- and the monetary authorities included
lawsuits in the United States against his children and former
spouses to create pressures that limit his capacity to suitably
exert his defense in the case, Dominican Today notes.  

Meanwhile, the trial against Mr. Figueroa was reinitiated in the
court, Dominican Today notes.  

Also present in the hearing were former Banco Intercontinental
officials and co-defendants:

          -- Jesus Maria Troncoso,
          -- Marcos Baez Cocco, and
          -- Vivian Lubrano.

The defense counsel can be reached at:

          Eric Raful
          Leon & Raful, S.A.
          Avenida Independencia #630
          Santo Domingo, Dominican Republic
          Phone: 688-6222/688-6761
          Fax: 686-6488
          E-Mail: leonyraful@verizon.net.do
                  yo.hamburguesa@codetel.net.do

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




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


CORPORACION UBC: S&P Withdraws BB-/B Counterparty Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB/B'
counterparty credit rating on Banco Cuscatlan SA on CreditWatch
with positive implications.  At the same time, withdrew 'BB-/B'
counterparty credit rating on Corporacion UBC Internacional SA
aka Subsidiarias at the company's request.  At the time of the
withdrawal, the outlook was stable.  There is no rated
outstanding debt.
     
These rating actions follow the Dec. 13, 2006 announcement that
Citigroup Inc. has signed an agreement to acquire shares,
assets, and liabilities of the subsidiaries of UBC for US$1.51
billion in cash and shares of Citigroup Inc. Corporacion UBC
holds 97.32% of Cuscatlan.  The transaction is expected to be
completed during the first half of 2007, subject to regulatory
approval of the Fed and local regulators in Central America and
at the acceptance of the agreement by the common shareholders
meeting of UBC that will be held on Dec. 26, 2006.
      
"The CreditWatch listing on Banco Cuscatlan reflects our
expectations that the bank will benefit from support from its
prospective owner in terms of financial flexibility, credit risk
management, and operational processes," said Standard & Poor's
credit analyst Leonardo Bravo.  

Also, it will benefit from Citigroup's know-how, products,
international distribution network, and experience in emerging
markets.  The CreditWatch will be resolved once the regulatory
approvals are provided and we meet with the banks to learn
further details about Citigroup's strategy for its new
subsidiary.

      


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


CENTRAL AMERICAN: Moody's Lifts Sr. Notes' Rating to B1 from B2
---------------------------------------------------------------
Moody's Investors Service upgraded the rating for The Central
American Bottling Corporation'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 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 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.




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


DYNCORP INT'L: Secures US$4.6B Linguistic Contract from US Army
---------------------------------------------------------------
The United States Army has awarded a contract for management of
translation and interpretation services in support of Operation
Iraqi Freedom or OIF to Global Linguistic Solutions LLC, a joint
venture formed by DynCorp International and McNeil Technologies.  
The five-year contract, with a maximum value of US$4.645
billion, was awarded by the Intelligence and Security Command or
INSCOM.  Full contract performance will begin in March 2007.

Under the contract, Global Linguistic will provide foreign-
language interpretation and translation services to the United
States Army and other U.S. government agencies supporting OIF,
including embedded Iraqi translators who will operate with U.S.
forces.  Global Linguistic will employ up to 6,000 locally-hired
translators and up to 1,000 United States citizens with security
clearances who are native speakers of languages spoken in Iraq.

DynCorp International and McNeil Technologies have combined
their core competencies through Global Linguistic to offer
INSCOM an innovative management-services solution for its
linguist program.  Dyncorp has a sixty-year history supporting
and sustaining large-scale personnel deployments in high-threat
zones, including its current experience in recruiting and
sustaining 2,500 employees, including linguists, in Iraq.

McNeil has 21 years' experience in recruiting, deploying, and
sustaining linguists, including in Iraq.  It possesses unique
language research, development, and testing capabilities in
less-commonly taught languages, including all languages required
by the contract.  McNeil also conceived -- and then helped
design, implement, and operate -- Federal Deployment Centers at
Ft. Belvoir and Kuwait City, which deployed more than 10,000
individuals to support the Coalition Provisional Authority in
Iraq.

DynCorp International is the managing partner of Global
Linguistic with a 51% ownership interest.  The president of
Global Linguistic, U.S. Army Maj. Gen. (Ret.) James "Spider"
Marks, has broad experience in managing large, complex personnel
deployments and sustainment operations-including linguists-in
high-threat environments.  He was responsible for the Iraq
Language Program in 2003 as the chief of intelligence for the
Coalition Forces Land Component Command.  He will be assisted by
Global Linguistic Vice President Michael Simone, former
commandant of the Defense Language Institute.

"The ability to communicate effectively with the Iraqi people is
critical to a successful outcome in Iraq, and we are very aware
of the trust that has been placed in us," said DynCorp
International CEO Herbert J. Lanese.  "McNeil and DynCorp
International are a formidable team to carry out this mission.
Our two companies have strong track records in supporting our
armed forces, and we have combined our capabilities in a way
that will give our troops the mission support they need."

                 About McNeil Technologies

McNeil Technologies, Inc. established a strong presence within
the Department of Defense and the intelligence community through
its four primary business centers: Intelligence and Languages,
Information Management, Security, and Program Management.

                About DynCorp International

Headquartered in Irving, Texas, DynCorp International Inc.
(NYSE: DCP) -- http://www.dyn-intl.com/-- provides specialized
mission-critical outsourced technical services to civilian and
military government agencies.  The Company specializes in law
enforcement training and support, security services, base
operations, aviation services and operations, and logistics
support.  The company has more than 14,400 employees in 33
countries including Haiti.  DynCorp International, LLC, is the
operating company of DynCorp International Inc.

                        *    *    *

As reported in the Troubled Company Reporter on June 19, 2006,
Standard & Poor's Ratings Services raised its ratings, including
the corporate credit rating to 'BB-' from 'B+', on DynCorp
International LLC. The ratings were removed from CreditWatch
where they were placed with positive implications on
Oct. 3, 2005.  S&P said the outlook is stable.

As reported in the Troubled Company Reporter on June 13, 2006,
Moody's Investors Service upgraded DynCorp International LLC's
US$90 million senior secured revolver maturing Feb. 11, 2010, to
Ba3 from B2; US$345 million senior secured term loan B due
Feb. 11, 2011, to Ba3 from B2; US$320 million 9.5% senior
subordinated notes due Feb. 15, 2013, to B3 from Caa1; Corporate
Family Rating, to B1 from B2; and Speculative Grade Liquidity
Rating, to SGL-2 from SGL-3.  Moody's said the ratings outlook
is stable.


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


BANCO CUSCATLAN: Seguros Launches Operations in Honduras
--------------------------------------------------------
Seguros Cuscatlan -- an insurance unit of Grupo Cuscatlan -- has
launched operations in Honduras.

As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Citigroup Inc. reached a definitive agreement to
acquire the subsidiaries of Grupo Cuscatlan from Corporacion UBC
Internacional for US$1.51 billion in cash and stock.

Corporacion UBC runs Banco Cuscatlan in Honduras.  

Business News Americas relates that Seguros Cuscatlan will
initially operate through one branch in Tegucigalpa.  The entry
into Honduras' insurance market is the first step towards the
regionalization of Corporacion UBC's insurance interests.  

Corporacion UBC has applied for a multi-line insurance license
in Guatemala and Panama.  In El Salvador, Corporacion UBC
operates the largest insurer SISA and pension fund manager AFP
Confia, BNamericas states.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
July 4, 2006, Standard & Poor's Ratings Services assigned these
ratings on Banco Cuscatlan SA:

   -- credit rating: BB/Stable/B;
   -- counterparty credit rating: BB/Stable/B; and
   -- certificate of deposit: BB/B.

                        *    *    *

Fitch Ratings assigned these ratings on Banco Cuscatlan:

          -- BB long-term issuer default rating;
          -- B short-term rating;
          -- BBB local currency long-term rating;
          -- F3 local currency short-term rating;
          -- NR (SLV) national long-term rating;
          -- NR (SLV) national short-term rating;
          -- Outlook is Stable.


BANCO CUSCATLAN: S&P Places BB/B Rating on Positive Watch
---------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB/B'
counterparty credit rating on Banco Cuscatlan SA on CreditWatch
with positive implications.  At the same time, withdrew 'BB-/B'
counterparty credit rating on Corporacion UBC Internacional SA
aka Subsidiarias at the company's request.  At the time of the
withdrawal, the outlook was stable.  There is no rated
outstanding debt.
     
These rating actions follow the Dec. 13, 2006 announcement that
Citigroup Inc. has signed an agreement to acquire shares,
assets, and liabilities of the subsidiaries of UBC for US$1.51
billion in cash and shares of Citigroup Inc. Corporacion UBC
Internacional SA aka Subsidarias holds 97.32% of Cuscatlan.  The
transaction is expected to be completed during the first half of
2007, subject to regulatory approval of the Fed and local
regulators in Central America and at the acceptance of the
agreement by the common shareholders meeting of UBC that will be
held on Dec. 26, 2006.
      
"The CreditWatch listing on Banco Cuscatlan reflects our
expectations that the bank will benefit from support from its
prospective owner in terms of financial flexibility, credit risk
management, and operational processes," said Standard & Poor's
credit analyst Leonardo Bravo.  Also, it will benefit from
Citigroup's know-how, products, international distribution
network, and experience in emerging markets.  The CreditWatch
will be resolved once the regulatory approvals are provided and
we meet with the banks to learn further details about
Citigroup's strategy for its new subsidiary.




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


AIR JAMAICA: Denied of Tax Benefits Due to Poor Performance
-----------------------------------------------------------
Air Jamaica has been denied of tax benefits despite its
accumulation of over US$220 million in tax credits, due to its
poor financial performance, the Jamaica Gleaner reports.

The Gleaner relates that a note to Air Jamaica's financials for
the year ending Dec. 31, 2005, stated, "The company (Air
Jamaica) has a potential tax asset of US$220.2 million.  
However, this amount has not been recognized in these financial
statements, as it is not probable that taxable profits will be
available against which deductible temporary differences can be
utilized."

According to The Gleaner, Air Jamaica has until 2015 to utilize
US$596.5 million of tax losses accumulated in the past decade,
assuming it can return a profit during the period.

However, it seemed unlikely that Air Jamaica's accountants will
be called on anytime soon to use the provisions to keep profit
in shareholder's hands, with Air Jamaica's accumulated losses of
US$953 million and no clear indication of it performing "in the
black" in the short-term, The Gleaner notes.

The Gleaner underscores that Air Jamaica's 2005 financials,
which was released in November 2006, showed that it has three
years of tax freedom -- 15 years less the expired period under
the 1994 concession accord that the Jamaican government had
reached with the Air Jamaica Acquisition Group at privatization
of the airline.  The airline then is exempted from corporate tax
on any profits or gains made in the period.   At expiration of
the concession period in 2009, it has six years to 2015 to
utilize the tax losses.

According to the report, some US$64 of tax losses accumulated
before privatization are available for set-off against future
taxable profits.  However, the amount can be carried forward
indefinitely.  

Air Jamaica's financial losses of US$119.9 million for 2005 were
almost equal to the accumulated tax assets, The Gleaner says.

The Gleaner reports that the losses, which were puffed up by a
one-time charge of US$29 million for restructuring after the
government's reacquisition of Air Jamaica from the Gordon
'Butch' Stewart-led management, were partly counterbalanced by a
US$20.95 million grant the government injected into the airline.  
The amount is below the US$30 million cap on new funds committed
yearly for five years to service the airline's debts.

The US$642.8 million total liabilities of Air Jamaica were also
partly offset by a US$6.8 million write-off of its debts last
year, after settlements with creditors, and the conversion of
US$416.8 million of debt to 12.84 billion preference shares
issued June 2005 boosting Air Jamaica's share capital to
US$564.1 million in the review year (2004: US$147.3 million),
The Gleaner relates.

The Gleaner states that US$1.84 million of debt is due for
conversion to redeemable preference shares, but were unissued at
balance sheet date.

The report says that the government, which is the sole
shareholder of Air Jamaica, has chosen to take zero returns on
its preference A shares up to Dec. 31, 2008, after which it will
earn a coupon of 3.0% up to year 2013 and beyond 8.0%, but only
if all previous losses have been removed through profits.  
Finance minister Dr. Omar Davies, who has direct portfolio
responsibility for the airline, has the option of converting the
shares after 2008.

The Gleaner emphasizes that Air Jamaica's liabilities comprise
US$336.7 million of new borrowings, including:

          -- US$125-million loan floating rate loan from RBTT
             Merchant Bank repayable at LIBOR plus 5.5% (the
             2005 rate amounted 9.7%);

          -- US$200 million of amortizing notes at 9.375% backed
             by government guarantee;

          -- 7.0% loan of US$11.71 million, the source of which
             was unspecified but which is repayable in three
             years up to Jan. 1, 2008.

The report says that all these loans were repaid during the 2004
review year:

          -- other outstanding loans totaling US$65 million plus
             interest that was owed to the National Commercial
             Bank,

          -- US$15 million owed to CLICO Investment Bank Ltd. of
             Trinidad, and

          -- US$4 million plus accrued interest owed to the
             National Insurance Fund, totaling US$7.33 million.

According to Air Jamaica's income/expenditure statement, finance
costs for the year was US$39.3 million.

The Gleaner notes that as for Air Jamaica's financial
performance, its largest earner passenger revenues that totaled
US$342 million decreased 19% (2004: US$421.7 million),
indicating a loss of market share.   Net revenues decreased by
US$57 million or 16%, ending the 2005 financial year at US$305.5
million, compared with 2004's US$362.4 million.

Air Jamaica cut 10% off operating expenditures.  Its US$72.6-
million operating losses in 2005, however, were still higher
than in 2004 by 1.4% or US$978,000, The Gleaner underscores.

Air Jamaica's US$222 million current liabilities was almost two
times higher than current assets of US$130 million, resulting in
a current ratio of 0.58, which indicated that Air Jamaica can
only cover 58 cents of each dollar of current liability, if
pressed by creditors.  However, that outturn is substantially
better than the 2004 position when the ratio was 0.27, The
Gleaner states.

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

                        *    *    *

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


AIR JAMAICA: Will Increase Flights During Christmas Season
----------------------------------------------------------
Air Jamaica will increase the number of flights it operates out
of select destinations in the Christmas season, the Jamaica
Gleaner reports.

The Gleaner relates that starting Jan. 10, 2007, flight JM021 --
which originates in Kingston, Jamaica -- will leave the Norman
Manley International Airport at 6:35 a.m.  

According to The Gleaner, the aircraft will pick up passengers
at Sangster International Airport for Miami and depart at 7:45
a.m., arriving in Miami at 9:00 a.m.

The Gleaner underscores that Air Jamaica has moved to fill the
void left by American Airlines after it stopped offering the
sole early morning flight out of Montego Bay into Miami months
ago.  The report says that the region has since been left with a
noon departure into South Florida and this has been an
inconvenience for business travelers, who want to get into that
state early, conduct business and get out by late afternoon.

Lorna Pitter, manager of Tropical Travel Service, told The
Gleaner, "We have been having a lot of queries regarding an
early morning flight from the people who wants to travel at that
time."

It was a good move by Air Jamaica and a welcome addition to the
current flight schedule, The Gleaner says, citing Ms. Pitter as
saying.

Vee Redpath, Premier Travel's managing director, commented to
The Gleaner, "We are very excited by this news."

Ms. Redpath admitted to The Gleaner that the revamping of the
schedule is badly needed, as she herself has had challenges
connecting passengers on to ongoing flights due to the late
arrival options that they are now faced with.

Paul Pennicook, Air Jamaica senior vice-president of marketing,
told The Gleaner that there will be one extra round-trip flight
daily between the John F. Kennedy or JFK airport in New York and
Kingston, Jamaica, on Dec. 19, 20, 22 and 23.  The New York
flight will depart JFK at 7:00 a.m. to arrive in Kingston at
10:40 a.m.  The aircraft will then left Kingston at 11:30 a.m.
to arrive JFK at 3:30 p.m.

To accommodate the demand on the Toronto-Kingston route, there
will be an extra round trip flight each day on Dec. 21 and 22.  
Air Jamaica will operate three charters from Toronto and Miami
to accommodate farm and hotel workers who are returning home for
the holidays, Jamaica Gleaner states.

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

                        *    *    *

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


DIGICEL LTD: Launches BlackBerry Connect for Sony Ericsson P990
---------------------------------------------------------------
Digicel Ltd. and Research In Motion aka RIM introduced
BlackBerry Connect for the Sony Ericsson P990 to customers in
nine Caribbean markets.

The Sony Ericsson P990 with BlackBerry Connect allows customers
to choose and enjoy the phone's comprehensive features and
stylish design together with RIM's popular BlackBerry services.  
Supported BlackBerry features include push-based wireless email
access, wireless email reconciliation and attachment viewing
through BlackBerry Enterprise Server and BlackBerry Internet
Service.  Additional features supported through BlackBerry
Enterprise Server include:

   -- wireless calendar synchronization;
   -- remote look-up of corporate email addresses;
   -- Triple DES encryption; and
   -- IT policy enforcement and commands (such as remotely
      disabling or wiping data from a device in the event it is
      lost or stolen).
    
According to Marketing Director for Digicel Group, Ben Atherton,
"As the Caribbean's fastest growing mobile provider, Digicel is
proud to be the first to introduce BlackBerry Connect for the
Sony Ericsson P990 to the region.  The stylish and feature-rich
P990 phone, together with BlackBerry Connect, offers customers a
powerful wireless solution."

BlackBerry Connect for the Sony Ericsson P990 is available
immediately from Digicel in:

   -- Barbados,
   -- Bermuda,
   -- Cayman Islands,
   -- the Dutch Caribbean islands of Aruba, Bonaire, Curacao,
   -- Jamaica,
   -- Trinidad & Tobago and
   -- Turks & Caicos;

with plans to expand the offering across all of Digicel's 22
markets.

"More and more people are recognizing and embracing the personal
and professional benefits of wireless email and we are very
pleased to be expanding our relationship with Digicel to extend
BlackBerry services to a wider range of customers in the
Caribbean market," said Mark Guibert, Vice President, Corporate
Marketing at Research In Motion.

For corporate customers, BlackBerry Enterprise Server software
tightly integrates with Microsoft Exchange and IBM Lotus Domino
and works with existing enterprise systems to enable secure,
push-based wireless access to email and other corporate data.  
For individuals and smaller businesses, BlackBerry Internet
Service allows users to access up to ten corporate and personal
email accounts (including most popular ISP email accounts) from
a single device.

                 About Research In Motion

Research In Motion is a leading designer, manufacturer and
marketer of innovative wireless solutions for the worldwide
mobile communications market.  Through the development of
integrated hardware, software and services that support multiple
wireless network standards, RIM provides platforms and solutions
for seamless access to time-sensitive information including
email, phone, SMS messaging, Internet and intranet-based
applications.  RIM technology also enables a broad array of
third party developers and manufacturers to enhance their
products and services with wireless connectivity to data.

                    About Digicel

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

                        *    *    *

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

                        *    *    *

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


NATIONAL WATER: Suspends Service to St. Andrew Due to Repairs
-------------------------------------------------------------
The National Water Commission of Jamaica has suspended service
to sections of St. Andrew, as the company will be conducting
repairs to a leak on the Ginger River pipeline, Radio Jamaica
reports, citing the firm.

According to Radio Jamaica, the suspension of service will
affect:

          -- Stony Hill,
          -- Golden Spring,
          -- Jack's Hill,
          -- Bridge Mount, and
          -- Sunset Avenue.

Customers of the National Water were encouraged to store water
during the period of the lock-off, Radio Jamaica states.

                        *    *    *

As reported in the Troubled Company Reporter on Feb. 7, 2006,
the National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses.  For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion.  The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.




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


ALESTRA: Adopts Long Distance Calling Party Pays Billing Scheme
---------------------------------------------------------------
Cofetel, the telecoms regulator of Mexico, said in a statement
that Alestra SA, along with Maxcom Telecomunicaciones, has
adopted the domestic and international long distance calling
party pays billing scheme for fixed to mobile calls.

Business News Americas relates that the firms received temporary
injunctions to avoid having to adopt the scheme, along with
telcos:

          -- Protel,
          -- Avantel, and
          -- Bestel.

According to BNamericas, the scheme was implemented on Nov. 4.

BNamericas underscores that Alestra and Maxcom join mobile
operators Telcel, Iusacell and Unefon and fixed line incumbent
Telmex in accepting the calling party pays plan.

Cofetel said in a statement that the holdouts are still mulling
legal specifications of calling party pays.  No estimation was
given whether or when they would accept the measure.

The calling party pays will amount to increased savings for
users, BNamericas notes, citing Cofetel.  Customers could have
11% savings next year and 34% accumulated savings by 2010.

Mexico as a whole would benefit from calling party pays due to
the large quantity of traffic coming from the United States,
which will be paid by the US-based calling parties, Cofetel told
BNamericas.

                About Maxcom Telecomunicaciones

Headquartered in Mexico City, Mexico, Maxcom Telecomunicaciones,
SA de CV, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory.  Maxcom Telecomunicaciones
launched commercial operations in May 1999 and is currently
offering Local, Long Distance and Internet & Data services in
greater metropolitan Mexico City, Puebla and Queretaro.  

                       About Alestra SA

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

                        *    *    *

Fitch Ratings placed these ratings on Alestra, SA de CV

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

Fitch said the outlook is negative.


ALLIS-CHALMERS: Closes Acquisition of Oil & Gas Rental's Assets
---------------------------------------------------------------
Allis-Chalmers Energy Inc. completed its acquisition of
substantially all the assets of Oil & Gas Rental Services, Inc.,
a Louisiana-based corporation that provides rental tools to both
offshore and onshore exploration and production companies.  

The purchase price consisted of US$291.0 million in cash and 3.2
million shares of Allis-Chalmers common stock.  In connection
with this acquisition, Allis-Chalmers entered into an investor
rights agreement with Oil & Gas Rental that, among other things,
grants Oil & Gas Rental Services the right to designate one
nominee for election to the Allis-Chalmers board of directors.

The Oil & Gas Rental Services assets include an extensive
inventory of premium rental equipment, including drill pipe,
spiral heavy weight drill pipe, tubing work strings, landing
strings, blow out preventors, choke manifolds and various valves
and handling tools for oil and natural gas drilling.  Included
in this acquisition were Oil & Gas Rental Services' facilities
in:

   -- Morgan City,
   -- Louisiana and
   -- Victoria, Texas.

Historically, Oil & Gas Rental Services has also provided rental
equipment internationally in Malaysia, Colombia, Russia, Mexico
and Canada.

Micki Hidayatallah, Allis-Chalmers' Chairman and Chief Executive
Officer stated, "We are delighted to have completed this
acquisition and are eager to integrate the Oil & Gas Rental
Services assets into our organization.  I am as confident as
ever that on a combined basis, we can increase the utilization
of Oil and Gas Rental Services' extensive inventory of premium
equipment and drill pipe and continue to grow our operations.  
As we remain focused on balancing our service offerings, these
assets will make an important contribution to our rental
services for offshore projects and deep land wells, which we
expect are less likely to be affected negatively by any
potential softening of oil and gas prices."

In connection with this acquisition, RBC Capital Markets acted
as exclusive financial advisor to Allis-Chalmers, and Simmons &
Company International advised Oil & Gas Rental Services.

Based in Houston, Texas, Allis-Chalmers Energy Inc. (AMEX: ALY)
-- http://www.alchenergy.com/-- provides oilfield services and  
equipment to the oil and gas exploration and development
companies primarily in Texas, Louisiana, New Mexico, Colorado,
and Oklahoma; offshore in the United States Gulf of Mexico; and
offshore and onshore in Mexico.  The company offers directional
drilling, compressed air drilling, casing and tubing, rental
tools, and production services.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 27, 2006,
Moody's Investors Service confirmed Allis-Chalmers Energy Inc.'s
B3 Corporate Family Rating and B3 rating on the company's 9%
Senior Unsecured Guaranteed Global Notes Due 2014.


CELLSTAR CORP: Selling LatAm & Mexican Operations to Brightpoint
----------------------------------------------------------------
CellStar Corp. has entered into an agreement to sell
substantially all of the assets of its US and Miami-based Latin
American operations to a wholly owned subsidiary of Brightpoint,
Inc.  The company also entered into an agreement to sell all of
its Mexico operations to Soluciones Inalambricas SA de CV and
Prestadora de Servicios en Administracion y Recursos Humanos, SA
de CV.  

The closings of the proposed transactions are expected to occur
simultaneously in late March or early April of 2007.  The two
transactions are not dependent on each other.  The transactions
do not include the company's operations in Chile, and the
company is currently exploring alternatives related to those
operations.

Robert Kaiser, chairperson of the board and chief executive
officer of CellStar, said, "After much deliberation and
consideration, our Board of Directors has determined that these
transactions are in the best interest of our stockholders.  We
are working with the acquiring companies to ensure smooth
transitions.  Although the company has improved its financial
performance significantly during the last three quarters, we are
finding it more and more difficult to compete in the marketplace
and to maintain a position as a major distributor in the
industry. These transactions will allow our customers and
vendors to continue to receive the same high level of service
and performance they have come to expect from CellStar.  We plan
to keep you updated periodically during the next several
months."

     Overview of the Proposed Transaction with Brightpoint

CellStar has entered into a definitive agreement with a wholly
owned subsidiary of Brightpoint to sell substantially all of the
assets of its operations in the US and its Miami-based Latin
American operations and for the buyer to assume certain
liabilities related to those operations.  The company's
operations in Mexico and Chile and other businesses or
obligations are excluded from the proposed transaction.

The boards of directors of Brightpoint and CellStar have
unanimously approved the proposed transaction. The proposed
closing of the transaction is subject to certain conditions,
including approval by CellStar's stockholders and certain
regulatory approvals.  Under the terms of the proposed
transaction, Brightpoint will pay CellStar US$88 million in
cash, subject to adjustment based on net assets.

        Overview of the Proposed Mexican Transaction

CellStar has entered into a definitive agreement with Soluciones
Inalambricas SA de CV and Prestadora de Servicios en
Administracion y Recursos Humanos, SA de CV, two affiliated
Mexican companies, to sell its operations in Mexico.  The
proposed purchase is a stock acquisition of all of the
outstanding shares of the company's three Mexican subsidiaries,
and will include the company's interest in Comunicacion
Inalambrica Inteligente SA de CV, a joint venture with
Soluciones Inalambricas.

The board of directors of CellStar has unanimously approved the
proposed transaction set forth in the definitive agreement.  The
closing of the proposed transaction is subject to certain
conditions, including approval by CellStar's stockholders.  At
the closing, the company expects to receive between US$20.0 to
US$22.0 million in cash, based on the 2007 operating performance
of the operations up to the closing date.

                       Next Steps

In January 2007, CellStar expects to file a proxy statement with
the U.S. Securities and Exchange Commission relating to the
stockholders' meeting to vote on the two transactions.  In
February 2007, the company expects to mail the proxy statement
to stockholders.  The stockholders' meeting is expected to occur
in late March or early April 2007, and if approved, the
transactions are expected to close shortly thereafter.

The net proceeds available for distribution to the stockholders
will depend upon the amount of cash received from each of the
proposed transactions and the amount of liabilities the company
must satisfy. Among other things, the company will pay in full
the amounts it owes at the time of the closing under its loan
agreements with Wells Fargo Foothill and CapitalSource Finance.  
Following the closing of the two transactions, the company may
retain certain assets and liabilities. Once the company has sold
those assets and satisfied those liabilities it will, as
promptly as possible, distribute the remaining proceeds to the
stockholders.  At this time, the company has not set a
distribution date and cannot estimate the amount of net proceeds
that will be distributed to stockholders.  However, the company
estimates that the amount distributed will not exceed US$3.25
per share and may be substantially less.  The proxy statement
the company will send to stockholders in connection with the
stockholders' meeting will contain more information with respect
to the estimated distribution amount and timing.

Raymond James acted as financial advisor to CellStar in
connection with the proposed transactions.  Raymond James and
Southwest Securities, Inc. provided fairness opinions to the
Board of Directors of the company in connection with the
proposed transactions.

                  About Brighpoint Inc

Headquartered in Plainfield, Indiana, Brightpoint, Inc.
-- http://www.brightpoint.com/-- engages in the distribution of
wireless devices and accessories, as well as provision of
customized logistic services to the wireless industry.  The
Company primarily operates in Australia, Colombia, Finland,
Germany, India, New Zealand, Norway, the Philippines, the Slovak
Republic, Sweden, United Arab Emirates and the United States.  
The Company's
customers include mobile operators, mobile virtual
network operators, resellers, retailers and wireless equipment
manufacturers.  Brightpoint was incorporated in 1989 under the
name Wholesale Cellular USA, Inc. and changed its name to
Brightpoint Inc. in 1995.

                        *    *    *

On April 12, 2006, Standard & Poor's placed the Company's long-
term local and foreign issuer credit ratings at BB- with a
stable outlook.

                  About CellStar Corp

Headquartered at Coppell, Texas, CellStar Corp. --
http://www.cellstar.com/-- provides logistics and distribution  
services to the wireless communications industry.  CellStar
Corp. has operations in North America and Latin America, and
distributes handsets, related accessories and other wireless
products from manufacturers to a network of wireless service
providers, agents, MVNOs, insurance/warranty providers and big
box retailers.  CellStar Corp. specializes in logistics
solutions, repair and refurbishment services, and in some of its
markets, provides activation services.

                        *    *    *

CellStar Corp.'s 5% Convertible Subordinated Notes due 2002
carry Moody's Investors Service's Ca2 rating.


FORD MOTOR: Cooper-Standard to Purchase ACH's Mexican Operations
----------------------------------------------------------------
Ford Motor Company entered into a Memorandum of Understanding
for Cooper-Standard Automotive's purchase of the Automotive
Components Holdings or ACH's fuel rail manufacturing operations
at its El Jarudo, Mexico, plant.

The El Jarudo Plant is a North American maquiladora plant and
producer of automotive fuel rails.  The plant employs about 500
people.  It is part of Automotive Components Holdings, a Ford-
managed temporary company formed in October 2005.

"The acquisition of this facility will be a key step in
expanding our ability to provide a broad array of fluid
subsystems and modules in North America," said Jim McElya, CEO,
Cooper-Standard Automotive.  "The ACH facility has excellent
quality levels and will be a strong addition to our
manufacturing footprint."

"This transaction provides the ability to expand our product
offering with fuel rails.  The layout of the facility gives us
the opportunity to optimize our manufacturing in North America,
and further enhance our competitive position," said Larry Beard,
president, Fluid Systems, Cooper-Standard Automotive.

"This MOU represents more progress as our North American Way
Forward plan moves into high gear," said Mark Fields, president
of The Americas and Ford executive vice president.  "This is
another positive sign of progress toward our commitment to sell
selected operations by the end of 2008."

"I am delighted to be announcing our second MOU this month,"
said Al Ver, CEO and COO, Automotive Components Holdings, and
Ford vice president. "Cooper-Standard has a strong focus on the
business and the people."

                        About ACH

Automotive Components Holdings produces automotive and
architectural
glass, and automotive interior, climate, chassis and powertrain
components at 10 plants in the U.S. and three in Mexico.

                   About Cooper-Standard

Cooper-Standard Automotive Inc., headquartered in Novi, Mich.,
is a leading global automotive supplier specializing in the
manufacture and marketing of systems and components for the
automotive industry. Products include body-sealing systems,
fluid handling systems, and NVH control systems.  Cooper-
Standard Automotive employs more than 16,000 people across 61
facilities in 14 countries.  Cooper-Standard Automotive is a
privately held portfolio company of The Cypress Group and
Goldman Sachs Capital Partners Funds.

                     About Ford Motor

Headquartered in Dearborn, Michigan, Ford Motor Company
(NYSE: F) -- http://www.ford.com/-- manufactures and
distributes automobiles in 200 markets across six continents.
With more than 324,000 employees worldwide, including Mexico,
the company's core and affiliated automotive brands include
Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury
and Volvo.  Its automotive-related services include Ford Motor
Credit Company and The Hertz Corp.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co. after the company
increased the size of its proposed senior secured credit
facilities to between US$17.5 billion and US$18.5 billion, up
from US$15 billion.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of
both the secured facilities and the senior unsecured convertible
notes being offered.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3 billion of senior convertible notes
due 2036.


GEOKINETICS INC: Posts Record Backlog of US$324MM in November
-------------------------------------------------------------
Geokinetics Inc. disclosed a record backlog of US$324 million
that supports orders to substantially increase its seismic data
recording equipment capacity.  This increase reflects the
company's strategy to continue investing in state-of-the-art
recording equipment to meet the growing demand for services in
North America and selected international markets.

The company has placed orders to double its I/O System IV
VectorSeis station count to over 6,000 stations and to acquire
4,000 channels of Sercel 428 recording equipment to increase
capacity in the company's Canadian division.  In addition, the
U.S. Gulf Coast division will add increased capacity of 6,000
stations of I/O RSR recording equipment to meet the additional
demand for the use of this type of system in the environmentally
challenging and permit restrictive areas within the region.

During the fourth quarter of 2006, the company plans to mobilize
two new seismic crews for start-up in the first quarter of 2007,
bringing the total seismic crews in operation to 22.  The
company plans to operate two large VectorSeis crews in Canada
during the first quarter of 2007.  The initial deployment of the
Sercel crew is also planned on a multi-year service contract in
Canada beginning the first quarter of 2007.

David Johnson, Geokinetics' President and CEO, commented on this
activity, "We achieved a record backlog of US$324 million in
November, and this capacity increase is evidence of continued
success in implementing our growth strategy and plan to address
our clients' needs in an increasing demand environment.  For the
twelve months ended Sept. 30, 2006, on a pro forma combined
basis (to reflect the acquisitions of Grant Geophysical, Inc. in
September 2006 and Trace Energy Services Ltd. in December 2005),
the company's revenues were US$313.1 million which demonstrates
our increased size and scale resulting from these acquisitions."

Geokinetics Inc., based in Houston, Texas, is a leading global
leader of seismic acquisition and high-end seismic data
processing and interpretation services to the oil and gas
industry.  Geokinetics provides seismic data acquisition
services in North America, South America, Africa, Asia,
Australia and the Middle East.  Geokinetics operates in some of
the most challenging locations in the world from the Arctic to
mountainous jungles to the transition zone environments.

                        *    *    *

Moody's Investors Service assigned on Dec. 6, 2006, a B3
corporate family rating and probability of default rating to
Geokinetics Inc., and a SGL-3 speculative liquidity rating.  
Moody's also assigned a B3, LGD 4 (53%) rating to Geokinetics'
proposed offering of US$100 million second priority senior
secured floating rate notes due 2012. The outlook is stable.  
Proceeds from the notes will be used to retire an existing
US$100 million senior loan.

Standard & Poor's Ratings Services also assigned its 'B-'
corporate credit rating to Houston, Texas, based seismic company
Geokinetics Inc. At the same time, Standard & Poor's assigned
its 'CCC+' rating and '3' recovery rating to Geokinetics' US$100
million in second lien floating rate notes.


GEOKINETICS: Closes US$110MM Second Priority Sr. Notes Offering
---------------------------------------------------------------
Geokinetics Inc. closed an offering US$110 million Second
Priority Senior Secured Floating Rate Notes due 2012 on
Dec. 15, 2006.  The notes are guaranteed by Geokinetics'
principal domestic subsidiaries.  The company intends to use the
net proceeds from this offering to repay a portion of the
indebtedness incurred in the acquisition of Grant Geophysical,
Inc.

Headquartered in Houston, Texas, Geokinetics Inc. is a leading
global leader of seismic acquisition and high-end seismic data
processing and interpretation services to the oil and gas
industry.  Geokinetics provides seismic data acquisition
services in North America, South America, Africa, Asia,
Australia and the Middle East.  Geokinetics operates in some of
the most challenging locations in the world from the Arctic to
mountainous jungles to the transition zone environments.

                        *    *    *

Moody's Investors Service assigned on Dec. 6, 2006, a B3
corporate family rating and probability of default rating to
Geokinetics Inc., and a SGL-3 speculative liquidity rating.  
Moody's also assigned a B3, LGD 4 (53%) rating to Geokinetics'
proposed offering of US$100 million second priority senior
secured floating rate notes due 2012. The outlook is stable.  
Proceeds from the notes will be used to retire an existing
US$100 million senior loan.

Standard & Poor's Ratings Services also assigned its 'B-'
corporate credit rating to Geokinetics Inc. At the same time,
Standard & Poor's assigned its 'CCC+' rating and '3' recovery
rating to Geokinetics' US$100 million in second lien floating
rate notes.



HIPOTECARIA CREDITO: Moody's Rates Series B Certificates at Ba2
---------------------------------------------------------------
Moody's de Mexico SA de CV assigned a rating of Aaa.mx and Baa1
to the Series A certificates CREYCB 06U and a rating of A1.mx
and Ba2 to the Series B certificates CREYCB 06-2U from
Hipotecaria Credito aka Casa, SA de CV, Sociedad Financiera de
Objeto Limitado aka CyC.  The certificates were issued by Banco
Invex SA, acting solely in its capacity as trustee.

The certificates represent CyC's first issuance under the BORHIS
Fungibles program sponsored by Sociedad Hipotecaria Federal.  
Contrasting to other Mexican MBS transactions rated by Moody's,
this transaction under the BORHIS Fungibles program allows for
pre-funding of receivables, of up to 40% of the issuance amount.  
In addition, during the first year the transaction is subject to
subsequent re-openings to issue additional certificates, which
are fungible with those already issued.

Interest and principal to certificate holders will be primarily
payable with cash flow from low-income housing mortgage loans
originated by CyC and assigned to the trust, which will be
established under the laws of Mexico.

The ratings assigned to the Series A and Series B certificates
are primarily based on:

   1. The credit quality of the underlying mortgage pool, which  
      is comprised of UDI-denominated, fixed-rate, first-lien
      mortgage loans secured by low-income houses located in
      Mexico.  The mortgage pool is comprised of 3,395 mortgage
      loans for approximately UDI 327 million. The pool's
      weighted average current LTV is 82.7%;

   2. The eligibility criteria for the mortgage loans to be     
      transferred to the trust during the pre-funding period
      and in future re-openings of the transaction. The
      eligibility criteria are expected to help maintain
      the credit profile of the mortgage pool consistent with
      that of the original pool. Among other requirements,
      loans to be transferred to the trust must have a minimum
      excess spread of 3.2% and be current, with the exception
      of 10% that can be less than 30 days past due;

   3. An initial credit enhancement of 1% of the original
      pool balance, in the form of overcollateralization (OC).
      The Series A certificates will be supported by additional
      credit enhancement provided by the subordination of the
      Series B certificates, which represent 10% of the pool
      balance.

   4. The excess spread, which is expected to be available to
      cover losses and amortize the certificates until a target
      OC of 4.7% is reached. Typically, in other Mexican MBS
      transactions rated by Moody's, the OC is calculated over
      an asset base that includes mortgage loans up 90 days
      past due. In this transaction, the OC level will be
      calculated including loans up to 180 days past due.
      On a relative basis, in a scenario of deteriorating pool
      quality, this feature could delay the structure's ability
      to capture excess spread in anticipation of pipeline
      losses;

   5. A negative carry reserve account, which is expected to
      mitigate the negative carry generated by cash in the
      pre-funding account. The negative carry reserve account
     will be initially funded by CyC;

   6. The first-loss mortgage insurance provided by Sociedad
      Hipotecaria Federal, rated Aaa.mx by Moody's;

   7. The UDI -- minimum wage swap provided by SHF;

   8. The origination standards of CyC, which are in line with
      Mexican market standards, and its role as servicer of the   
      mortgage pool;and

   9. The well-established laws and regulations governing
      mortgage securitization in Mexico.

With a market share of approximately 13%, CyC is currently the
third largest mortgage Sofol in Mexico in terms of total
mortgage portfolio.  The company focuses on extending mortgages
to low-income individuals under the auspices of SHF's financing
programs, and providing construction financing to developers of
low-income housing.  CyC is headquartered in Culiacan, Sinaloa,
and had a serviced portfolio of approximately MXN22 billion as
of Sept. 30, 2006.

The complete rating action is as follows:

Issuer: Banco Invex, SA, Institucion de Banca Multiple, Invex
Grupo Financiero, acting solely as trustee.

   -- Series A certificates CREYCB 06U for UDIs 430,350,000,
      rated Aaa.mx and Baa1; and

   -- Series B certificates CREYCB 06-2U for UDIs 48,350,000,
      rated A1.mx and Ba2.


MAXCOM: Adopts Long Distance Calling Party Pays Billing Scheme
--------------------------------------------------------------
Cofetel, the telecoms regulator of Mexico, said in a statement
that Maxcom Telecomunicaciones, along with Alestra SA, has
adopted the domestic and international long distance calling
party pays billing scheme for fixed to mobile calls.

Business News Americas relates that the firms received temporary
injunctions to avoid having to adopt the scheme, along with
telcos:

          -- Protel,
          -- Avantel, and
          -- Bestel.

According to BNamericas, the scheme was implemented on Nov. 4.

BNamericas underscores that Alestra and Maxcom join mobile
operators Telcel, Iusacell and Unefon and fixed line incumbent
Telmex in accepting the calling party pays plan.

Cofetel said in a statement that the holdouts are still mulling
legal specifications of calling party pays.  No estimation was
given whether or when they would accept the measure.

The calling party pays will amount to increased savings for
users, BNamericas notes, citing Cofetel.  Customers could have
11% savings next year and 34% accumulated savings by 2010.

Mexico as a whole would benefit from calling party pays due to
the large quantity of traffic coming from the United States,
which will be paid by the US-based calling parties, Cofetel told
BNamericas.

                       About Alestra SA

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

                About Maxcom Telecomunicaciones

Headquartered in Mexico City, Mexico, Maxcom Telecomunicaciones,
SA de CV, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory.  Maxcom Telecomunicaciones
launched commercial operations in May 1999 and is currently
offering Local, Long Distance and Internet & Data services in
greater metropolitan Mexico City, Puebla and Queretaro.  

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Nov. 29, 2006, Standard & Poor's Ratings Services assigned its
'B' long-term corporate credit rating to Mexico City-based
Maxcom Telecomunicaciones SA de CV.  The outlook is stable.

At the same time, Standard & Poor's assigned its 'B' rating to
Maxcom's proposed transaction of up to US$200 million 144-A
senior unsecured notes maturing in 2016.  The notes will be
guaranteed by substantially all of Maxcom's subsidiaries.  
Proceeds from the proposed offering of notes will be used to
refinance all the existing indebtedness, including vendor
financing, and to prefund approximately US$84 million of capital
expenditures for additional growth.


NORTEL NETWORKS: Amends IS$750 Million Master Facility Agreement
----------------------------------------------------------------
Nortel Networks Ltd., Nortel Networks Corp.'s principal
operating subsidiary, has amended its master facility agreement
with Export Development Canada.  The amendment extends the
maturity date of the Facility for an additional year to
Dec. 31, 2008.

The total Facility is maintained at US$750 million, including
the existing US$300 million of committed support for performance
bonds and similar instruments.

                     About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corp.
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology  
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.  
Nortel does business in more than 150 countries including Mexico
in Latin America.

                         *     *     *

As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.


STEELCASE: Posts US$802MM Revenue for Third Quarter FY 2007
-----------------------------------------------------------
Steelcase Inc. reported that its revenue increased 6.8% to
US$802.0 million in the third quarter of fiscal year 2007,
compared with US$750.7 million in the prior fiscal year quarter,
due to strong growth of 19.2% in the international segment.

Third quarter revenue in fiscal year 2007 included US$9.9
million from currency translation and US$9.8 from acquisitions.  
These items add the net effect of increasing revenue by 2.6%.

Steelcase reported net income of US$32.8 million, or US$0.22 per
share, for the third quarter of fiscal year 2007 driven by
better than expected operating and non-operating performance.  
This compares with net income of US$19.1 million, or US$0.13 per
share, in the same quarter of the previous fiscal year.  The
reported results for the current quarter were higher than
company estimates of US$0.14 to US$0.19 per share.

Included in third quarter results were net restructuring charges
totaling US$(3.6) million after-tax, in line with company
expectations.  The charges primarily related to facility
rationalization in the company's North America segment.  Net
restructuring charges were US$(4.6) million after-tax in the
prior fiscal year quarter.

James P. Hackett, president and chief executive officer of
Steelcase, stated, "We are particularly pleased to recognize our
International segment this quarter.  The strength of its
performance is not only a significant factor in the company's
increased revenue but also signals the potential impact this
segment can have moving forward."

Cost of sales was reduced by 90 basis points to 68.5% in the
third quarter, driven by a 290 basis point improvement in the
International segment and a 170 basis point improvement in the
North America segment.  Volume was a key contributor to
International's improved cost of sales while improved pricing
yield and the benefits of prior restructuring actions
contributed to the improvements in North America.  Some of these
improvements were offset by unfavorable shifts in business mix
within the Steelcase Design Partnership segment.

Gross margin, which includes restructuring costs, was 30.8% in
the third quarter of fiscal year 2007 and improved 100 basis
points from 29.8% in the same quarter of the previous fiscal
year.

Operating expenses as a% of revenue increased to 25.8% in the
fiscal year 2007 from 25.2% in the prior fiscal year.  Higher
variable compensation expense and investments in growth
initiatives contributed to the increase.

Reported operating income of US$40.5 million, or 5.0% of
revenue, in the fiscal year 2007, compared with US$32.7 million,
or 4.4% of revenue in the prior fiscal year year.  Operating
income without restructuring charges was US$46.2 million, or
5.7% of revenue in the current quarter compared with US$40.0
million, or 5.4% of revenue in the prior fiscal year.

Other income, net increased by US$11.3 million driven primarily
by higher interest income and a gain on the completion of a
dealer ownership transition.

Steelcase has reduced its year-to-date effective tax rate to
36.4%.  As a result, the effective tax rate for the quarter
decreased to 33.5%.

Cash decreased to US$525.0 million from US$707.0 million at the
end of the previous quarter of fiscal year 2007, reflecting
US$250.0 million of cash used to redeem term notes scheduled to
mature in November 2006.  Net of the redemption payment, total
cash and cash equivalents increased by US$68.0 million.  Debt at
the end of the quarter was US$256.1 million.  As part of its
share repurchase authorization, Steelcase repurchased 592,000
shares in the third quarter at a total cost of US$9.7 million.

Year to date, net income almost doubled to US$77.6 million from
US$39.6 million for the same period last year.

David C. Sylvester, chief financial officer of Steelcase, noted,
"Our third quarter earnings per share is at its highest point in
six years, which sustains our enthusiasm over the company's
performance.  These results would not be possible without the
passion for continual improvement exemplified by all of our
employees.  Our balance sheet continues to strengthen and we
will continue to focus intently on expense control and revenue
growth."

                        Outlook

Steelcase expects the fiscal year 2007 fourth quarter revenue to
increase 4% to 8% over the prior year quarter.  International
order rates remained strong throughout the third quarter.  North
America orders rates improved from unseasonably low levels in
August and backlog rebounded by the end of the quarter.

Steelcase expects to report earnings between US$0.14 and US$0.19
per share and estimates after-tax restructuring charges of
US$(2) to US$(4) million in the fourth quarter of fiscal year
2007.  The earnings estimate includes a projected net income
impact of US$0.02 per share related to the anticipated extension
of the U.S. Research tax credit.  The company reported earnings
of US$0.06 per share in the fourth quarter of the prior year.

Steelcase has updated its three-year plan and continues to
target gross margins of 35%, operating expenses of 25% and
operating income of 10% of revenue.

"We are demonstrating that changes to our industrial model have
enabled us to sustain and improve profits despite moderating
growth.  We expect to build on this momentum as we intensify our
attention on growth initiatives within our newly re-defined
organizational units," Mr. Hackett said.

Headquartered in Grand Rapids, Michigan, Steelcase, Inc.,
(NYSE: SCS) -- http://www.steelcase.com/-- designs and
manufactures architecture, furniture and technology products.
Founded in 1912, Steelcase serves customers through a network of
more than 800 independent dealers and approximately 13,000
employees worldwide including Brazil and Mexico in Latin
America.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
Oct. 4, 2006, 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
sector, the rating agency confirmed its Ba1 Corporate Family
Rating for Steelcase, Inc. and its Ba1 rating on the company's
US$250 million senior unsecured notes.  Additionally, Moody's
assigned an LGD4 rating to those bonds, suggesting noteholders
will experience a 59% loss in the event of a default.


VALASSIS COMM: In Talks with ADVO to Settle Litigation
------------------------------------------------------
Valassis Communications Inc. and ADVO, Inc., are in discussions
to settle the ongoing litigation between the companies.  The
trial in the Court of Chancery for New Castle County, Delaware,
has been recessed for a day pending the outcome of these
discussions.  There can be no assurance that any settlement will
result.

Valassis Communications filed suit on Aug. 30, 2006, seeking to
rescind its US$1.3 billion merger agreement with ADVO based on
fraud and material adverse changes.

As reported in the Troubled Company Reporter on July 7, 2006,
Valassis Communications signed a definitive merger agreement
with ADVO under which it will acquire all of the outstanding
common shares of ADVO stock for US$37 per share in cash in a
merger.  The fully financed transaction was valued at US$1.3
billion, including US$125 million in existing ADVO debt that
Valassis planned to refinance.

Valassis Communications subsequently sued ADVO in the Delaware
Chancery Court to rescind the merger agreement based on fraud
and material adverse changes, alleging that ADVO management
materially misrepresented the financial health of the company
and failed to reveal internal control deficiencies.

                         About ADVO

Based in Windsor, Conn., ADVO, Inc. -- http://www.ADVO.com/--  
is a direct mail media company, with annual revenues of US$1.4
billion.  Serving 17,000 national, regional and local retailers,
the company reaches 114 million households, more than 90% of the
nation's homes, with its ShopWise(R) shared mail advertising.  
ADVO employs 3,700 people at its 23 mail processing facilities,
33 sales offices.

                       About Valassis

Headquartered in Livonia, Michigan, Valassis Communications Inc.
(NYSE: VCI) -- http://www.valassis.com/-- provides marketing
services to consumer-packaged goods manufacturers, retailers,
technology companies and other customers with operations in the
United States, Europe, Mexico and Canada.  Valassis
Communications' products and services portfolio includes:
newspaper-delivered promotions and advertisements such as
inserts, sampling, polybags and on-page advertisements; direct-
to-door advertising and sampling; direct mail; Internet-
delivered marketing; loyalty marketing software; coupon and
promotion clearing; and promotion planning and analytic
services.  Valassis Communications has been listed as one of
FORTUNE magazine's "Best Companies to Work For" for nine
consecutive years.  Valassis subsidiaries include Valassis
Canada, Promotion Watch, Valassis Relationship Marketing
Systems, LLC and NCH Marketing Services, Inc.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 1, 2006,
Moody's Investors Service downgraded Valassis Communications,
Inc.'s senior unsecured note ratings to Ba1 from Baa3.  Moody's
also assigned a Ba1 Corporate Family Rating, Ba1 Probability of
Default Rating, and LGD4 loss given default assessments to
Valassis' debt securities.  The ratings remain on review for
a likely downgrade.




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


PETROLEOS DE VENEZUELA: Joint Venture in Nicaragua Opens Office
---------------------------------------------------------------
Albanic -- Venezuelan state oil Petroleos de Venezuela's joint
venture with Amunic, Nicaragua's municipal government
association -- has opened an office in Managua, Business News
Americas reports, citing the Managua municipality.

BNamericas relates that Petroleos de Venezuela and Amunic formed
Albanic earlier in 2006 to distribute Venezuelan crude and fuels
in Nicaragua.

According to BNamericas, Albanic received its first shipment of
1,800 barrels of diesel in October.  The diesel was used to fuel
the Las Brisas thermo plant in Managua to relieve Nicaragua's
energy shortages.

Albanic can buy 10 million barrels per year of hydrocarbons
under the same special conditions allowed to members of
Petrocaribe, the energy cooperation Venezuela is promoting,
BNamericas reports.

Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad.  The company has a commercial office in China.

                        *    *    *

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


* NICARAGUA: Joint Venture with Venezuela Opens Managua Office
--------------------------------------------------------------
Albanic -- Venezuelan state oil Petroleos de Venezuela's joint
venture with Amunic, Nicaragua's municipal government
association -- has opened an office in Managua, Business News
Americas reports, citing the Managua municipality.

BNamericas relates that Petroleos de Venezuela and Amunic formed
Albanic earlier in 2006 to distribute Venezuelan crude and fuels
in Nicaragua.

According to BNamericas, Albanic received its first shipment of
1,800 barrels of diesel in October.  The diesel was used to fuel
the Las Brisas thermo plant in Managua to relieve Nicaragua's
energy shortages.

Albanic can buy 10 million barrels per year of hydrocarbons
under the same special conditions allowed to members of
Petrocaribe, the energy cooperation Venezuela is promoting,
BNamericas reports.

                About Petroleos de Venezuela

Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad.  The company has a commercial office in China.

                        *    *    *

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




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P A N A M A
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CLIENTLOGIC: Raises Sitel Stockholders' Price to US$4.25 a Share
----------------------------------------------------------------
Sitel Corp. and ClientLogic Corp. had entered into an amendment
to a previous Agreement and Plan of Merger among Sitel,
ClientLogic and Stagecoach Acquisition Corp., dated
Oct. 12, 2006.  Under the terms of the amendment, Sitel
stockholders will receive US$4.25 in cash for each outstanding
share of common stock of SITEL held, which represents an
increase of US$0.20 per share in cash from the price of US$4.05
per share in cash previously agreed with ClientLogic.  The Board
of Directors of Sitel has unanimously approved the amendment to
the Merger Agreement.  The transaction is expected to be
completed in the first quarter of 2007 and remains subject to
customary closing conditions, including the approval of Sitel's
stockholders.

On Dec. 6, prior to Sitel entering into the amendment with
ClientLogic, The Gores Group, LLC and The Calgary Group, LLC and
Jefferies Capital Partners IV LLC revised their previously
announced proposal to acquire all of the outstanding shares of
common stock of Sitel to lower the proposed price of US$4.50 to
US$4.25 per share in cash.  The amendment with ClientLogic
required Sitel to terminate the existing discussions with
Gores/Calgary/Jefferies although it continues to permit Sitel to
respond to additional proposals from third parties in the event
the Board of Directors of Sitel determines in good faith after
considering advice from its outside advisors that failure to do
so would be inconsistent with its fiduciary obligations.  In
addition, the amendment increases the expense reimbursement
portion of the amount payable by Sitel upon termination of the
Merger Agreement in circumstances involving an alternative
acquisition proposal by US$1 million.

In connection with the proposed merger with ClientLogic, Sitel
has set Jan. 12, 2007, as the date of its 2006 Annual Meeting of
Stockholders at which Sitel will seek, among other things,
stockholder approval of the Merger Agreement, as amended, and
the transactions contemplated thereby.

Holders of record of Sitel common stock as of 5:00 p.m., New
York time, on Dec. 5, 2006, will be entitled to vote at the
meeting.  The meeting will be held at:

         Marriott Regency Hotel
         10220 Regency Circle
         Omaha, Nebraska

The meeting will begin at 1:00 p.m., local time, on Jan. 12.
The definitive proxy statement and related materials will be
mailed on or about Dec. 13, 2006, to stockholders of record on
the record date.

The US$4.25 to be paid in cash in the merger for each Sitel
share represents an approximate 37.5% premium over the volume-
weighted average closing price of Sitel common stock on the New
York Stock Exchange for the thirty days prior to the public
announcement of the execution and delivery of the Merger
Agreement.

                     About Sitel Corp.

Sitel -- http://www.sitel.com/-- provides outsourced customer
support services.  Sitel designs and improves customer contact
models across its clients' customer acquisition, retention, and
development cycles.  Sitel has over 42,000 employees in 101
global contact centers located in 26 countries.

                     About ClientLogic

ClientLogic Corp. -- http://www.clientlogic.com/-- is a
business process outsourcing provider in the customer care and
back office processing industries.  ClientLogic's footprint
spans 49 facilities in 13 countries: Austria, Canada, France,
Germany, India, Ireland, Mexico, Morocco, Netherlands, Panama,
Philippines, United Kingdom and the United States.


CLIENTLOGIC CORP: Revised Merger Plan Cues Moody's Rating Review
----------------------------------------------------------------
Moody's Investors Service placed ClientLogic Corp.'s B3
corporate family rating on review for possible upgrade after the
company's disclosure of its revised plan to merge with Sitel
Corp. and Sitel's recent return to filing timely financial
statements with the U.S. Securities and Exchange Commission.

As part of its review, Moody's will focus on resolution of the
ClientLogic's merger plan, including the combined firm's
prospective capitalization, client contract performance, expense
reduction, and free cash flow.

Under the terms of the proposed merger, a newly formed
subsidiary of ClientLogic will merge with Sitel and pay US$4.25
per share in cash for all of the outstanding common stock of
SITEL.  The transaction, which ClientLogic expects to be
completed in the first quarter of 2007, is subject to customary
closing conditions, including shareholder approval and
regulatory clearances.

In connection with the proposed merger, Sitel has set
Jan. 12, 2007, as the date of its 2006 Annual Meeting of
Stockholders at which SITEL will seek, among other things,
stockholder approval of the merger.

Headquartered in Nashville, Tennessee, ClientLogic Corporation
provides outsourced call center services worldwide including
Austria, France, Germany, Ireland, Netherlands, and the
United Kingdom.




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P E R U
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DOE RUN: Extends Consent Date for 11.75% Sr. Notes Until Dec. 22
----------------------------------------------------------------
The Doe Run Resources Corp. has extended the Consent Date for
its offer to purchase and consent solicitation with regard to
any and all of its outstanding 11.75% senior notes due 2008 to
12:00 p.m., New York City time, on Dec. 22, 2006.

The Consent Date, which is the date prior to which notes must be
validly tendered (or a notice of guaranteed delivery must be
received by the depositary) for a holder to receive a total
consideration of US$1,002.50 for each US$1,000 principal amount
of notes validly tendered (including the consent payment) was
previously Dec. 19, 2006, 5:00 p.m., New York City time.  The
Consent Date is being extended to provide additional time for
holders to locate and validly tender the notes, which are held
in certificated form (or provide a notice of guaranteed delivery
thereof to the depositary).

All other terms of the offer to purchase and consent
solicitation remain unchanged.  The offer to purchase will
expire at 5:00 p.m., New York City time, on Jan. 4, 2007, unless
extended.

Holders who validly tender notes will also be paid accrued and
unpaid interest up to but not including the date of payment for
the notes.  Holders tendering their notes will be deemed to have
delivered their consent to certain proposed amendments to the
indenture governing the notes, which will eliminate
substantially all of the restrictive covenants and certain
provisions relating to events of default and amend certain other
related provisions.

The terms of the offer to purchase and consent solicitation,
including the conditions to the company's obligations to accept
the notes tendered and consents delivered and pay the purchase
price and consent payments, are stated in the company's offer to
purchase and consent solicitation statement, dated Dec. 5, 2006.  
The offer to purchase and consent solicitation are subject to
certain conditions, including the receipt of the requisite
number of consents required to amend the indenture, the
execution of the supplemental indenture and the company having
raised funds from a private offering of new notes in an
aggregate principal amount of approximately US$200,000,000.  The
company may amend, extend or terminate the offer to purchase and
consent solicitation at any time in its sole discretion without
making any payments with respect thereto.

The dealer manager and solicitation agent for the offer to
purchase and the consent solicitation is Wachovia Securities.  
Questions regarding the terms of the tender offer or consent
solicitation may be directed to:

           Wachovia Securities
           Tel: (866) 309-6316 (toll-free)
                (704) 715-8341 (collect)

The depositary is U.S. Bank National Association and the
information agent for the offer is D.F. King & Co., Inc.  
Requests for documentation may be directed to:

           D.F. King & Co.
           Tel: (800) 758-5378 (toll-free)
                (212) 269-5550 (collect).

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

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

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

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

              Doe Run Peru Going Concern Doubt

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

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

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

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




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


ADELPHIA COMM: ACC Noteholders Want US$5 Bil. Secured Debt Paid
---------------------------------------------------------------
The ACC Senior Noteholders ask the U.S. Bankruptcy Court for the
Southern District of New York to reconsider its deferral of
their motion to order Adelphia Communications Corp. and its
debtor-affiliates to immediately pay in full approximately
US$5,000,000,000 in principal amount of senior secured debt, in
light of the adjournment of the hearing on the Disclosure
Statement Supplement.

The ACC Senior Noteholders want the ACOM Debtors to immediately
pay in full the principal amount of senior secured debt
currently outstanding, and any accrued but unpaid interest,
under the:

    -- Olympus Co-Borrowing Facility,
    -- Century Co-Borrowing Facility,
    -- UCA/HHC Co-Borrowing Facility, and
    -- FrontierVision Prepetition Credit Agreement.

The ACC Senior Noteholders also ask the Court to schedule a
hearing on their motion as soon as possible.

The ACC Senior Noteholders are:

    -- Aurelius Capital Management, LP;
    -- Banc of America Securities, LLC;
    -- Catalyst Investment Management Co., LLC;
    -- Drawbridge Global Macro Advisors, LLC;
    -- Drawbridge Special Opportunities Advisors, LLC;
    -- Elliott Associates, LP;
    -- Farallon Capital Management, LLC;
    -- Noonday Asset Management, LP;
    -- Perry Capital LLC; and
    -- Viking Global Investors, LP.

Martin J. Bienenstock, Esq., at Weil, Gotshal & Manges LLP in
New York contends that, en route toward solicitation and
confirmation of a plan of reorganization, Adelphia
Communications Corp. is spending more than US$41,000,000 per
month in unnecessary postpetition interest on the Bank Debt.

The significant erosion of ACOM's estate requires the Court's
immediate action, Mr. Bienenstock contends.

The ACC Senior Noteholders including Aurelius Capital Management
LP, Banc of America Securities LLC, and Catalyst Investment
Management Co. LLC, relate that at the scheduling conference
held on Sept. 26, 2006, the Court found that:

    -- their motion to direct the ACOM Debtors to immediately
       pay in full the US$5,000,000,000 in principal amount of
       senior secured debt "deserves to be heard," but declined
       to set the motion for hearing; and

    -- temporarily adjourning their motion will, among other
       things, "avoid[] interference with the solicitation
       process."

Mr. Bienenstock notes that in excess of US$1,500,000,000 has
been paid as adequate protection interest payments on certain
secured bank debt in the ACOM Debtors' Chapter 11 cases.

Mr. Bienenstock tells the Court that after the sale of
substantially all of the ACOM Debtors' assets, repayment of
their postpetition financing, and consummation of the Joint
Venture Plan of Reorganization for the Parnassos Debtors and
Century-TCI Debtors, the ACOM Debtors are holding in excess of
US$17,500,000,000 in value, approximately US$12,500,000,000 in
cash.

Mr. Bienenstock contends that each day's delay in satisfying the
Bank Debt further diminishes the value available to satisfy
unsecured claims in the ACOM Debtors' cases.

Specifically, Mr. Bienenstock points out, parties-in-interest
have been told that the "burn rate" is approximately
US$1,300,000 per day or up to US$40,000,000 a month, minus the
limited amount that the ACOM Debtors may earn on their
investments in accordance with applicable investment guidelines.

Mr. Bienenstock notes that the ACOM Debtors' Revised Fifth
Amended Plan of Reorganization proposes to treat the Bank Debt
by payment of outstanding principal amount and interest accrued
on the Plan's Effective Date, subject to the right of
disgorgement.

Mr. Bienenstock relates that the ACC Senior Noteholders noted in
open court their intention to oppose the ACOM Plan.

Mr. Bienenstock asserts that since all of the ACOM Debtors'
assets have been sold and the ACOM Plan is a liquidation plan
under the guise of a chapter 11 plan, the Court and all parties
should take whatever steps necessary and appropriate "to cease
the needless incurrence of interest in the Bank Debt and the
hemorrhaging of value that occurs daily."

Mr. Bienenstock further argues that:

    (a) holders of the Bank Debt are entitled to adequate
        protection payments consistent with the Court's prior
        conclusion regarding the oversecured status of the Bank
        Debt;

    (b) the ACOM Debtors have a fiduciary duty to maximize their
        estates' value;

    (c) Section 105 of the Bankruptcy Code authorizes the Court
        to enter orders in furtherance of adequate protection
        and maximizing value;

    (d) the ACC Senior Noteholders' request for the Bank Debt
        payment is substantially similar to those requests
        granted in:

           * In re Calpine Corp., Case No. 05-60200 (BRL); and
           * In re Wabash Valley Power Assoc., Inc., 167 B.R.
             885 (S.D. Ind. 1994);

    (e) the duty to maximize value and Sections 361 and 105 of
        the Bankruptcy Code mandate payment of the Bank Debt to
        stop the erosion of the ACOM Debtors' estates; and

    (f) the ACOM Plan should not be used as leverage.

           Non-Agent Committee Supports Immediate Payment

The Ad Hoc Committee of Non-Agent Secured Lenders supports the
ACC Senior Noteholders' request.

On behalf of the Non-Agent Committee, Richard L. Wynne, Esq., at
Kirkland & Ellis LLP, in New York, contends that allowing the
immediate payment of the Bank Debt will:

    (1) reduce the need to confirm the ACOM Plan on an expedited
        basis;

    (2) substantially narrow Bank Lender issues with respect to
        the ACOM Plan confirmation;

    (3) eliminate the inappropriate and improper coercive
        provisions of the ACOM Plan; and

    (4) subject to the same disgorgement provisions previously
        approved by the Court and provided by the ACOM Plan,
        eliminate the need for the estate to pay contract
        interest to the Lenders until confirmation, and will not
        be prejudicial to any parties-in-interest given the
        disgorgement provisions that would apply.

Based in Coudersport, Pa., Adelphia Communications Corporation
(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.


NEWCOMM WIRELESS: Can Access US$16 Million of DIP Financing
-----------------------------------------------------------
NewComm Wireless Services, Inc., sought and obtained approval
from the U.S. Bankruptcy Court for the District of Puerto Rico
to draw US$16 million from a US$38 million debtor-in-possession
credit facility.

The Debtor will use the postpetition financing to:

   -- upgrade its network;

   -- satisfy license-related obligations for US$7.8 million
      owed to the U.S. Federal Communications Commission; and

   -- pay its budgeted operating expenses and other chapter 11
      administrative expenses.

The Debtor says the DIP facility is an integral component in a
fully integrated transaction involving the stalking horse
purchaser of Newcomm's business assets.

PR Wireless, Inc., has offered to purchase Newcomm's assets for
US$103.2 million, subject to various adjustments.  The sale
agreement is structured so that the net proceeds will be
sufficient to pay for the DIP loan, among others, the Debtor
says.

The Debtor underscores that part of the DIP loan will be used to
fund build-out and upgrade of its telecommunications network, an
esential element of its chapter 11 case.  Once the upgrade is
completed, the Debtor says it will be able to service far-flung
areas not reached by its competitors.

To secure the DIP lenders' interest, they will be given
perfected, first-priority security interests and liens upon all
unencumbered Newcomm property.

The DIP lenders are represented by:

Headquartered in Guaynabo, PR, 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.


NEWCOMM WIRELESS: Selling Assets to PR Wireless for US$103.2MM
--------------------------------------------------------------
NewComm Wireless Services, Inc., asks the U.S. Bankruptcy Court
for the District of Puerto Rico authority to sell substantially
all of its assets to PR Wireless, Inc., for US$103.2 million,
subject to higher and better offers.

Under the asset purchase agreement, PR Wireless is liable to pay
US$3 million if it wins the bidding but fails to consummate the
sale, while it stands to get US$3.3 million break-up fee if it
loses to another bidder.

Proceeds from the sale will be used to pay NewComm's secured
prepetition debt and fund its network upgrade project that would
give it a competitive advantage.

The Debtor further asks the Court to approve an auction in
Feb. 13, 2007.  The sale transaction is expected to close by
April 15, 2007.

A copy of the APA's pertinent points is available free of charge
at:

http://bankrupt.com/misc/NewcommWirelessAPA.pdf

A copy of the bidding procedures is available free of charge at:

http://bankrupt.com/misc/NewcommWirelessBiddingRules.pdf

Headquartered in Guaynabo, PR, 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.


R&G FINANCIAL: Victor Galan Leaves Chief Executive Officer Post
---------------------------------------------------------------
R&G Financial Corp. said in a press release that Victor Galin,
its largest shareholder, will leave his chief executive officer
post in the company in connection with the treatment of certain
mortgage loan sales as true sales.

Business News Americas relates that Rolando Rodriguez, president
and chief executive officer of R&G Financial's Florida-based
unit R-G Crown Bank, will take the place of Mr. Galan, effective
Jan. 1, 2007.

According to BNamericas, Mr. Galan will continue as chairperson
of the board until June 30, 2007.  After that, he will remain as
a board member.

R&G Financial is preparing its restated consolidated financial
statements for the years ending 2002 through 2004.  The firm
expects to file the reports in the first quarter of next year,
BNamericas states.

Headquartered in Hato Rey, Puerto Rico, R&G Financial Corp.
(NYSE: RGF) -- http://www.rgonline.com/-- is a diversified
financial holding company with operations in Puerto Rico and the
United States, providing banking, mortgage banking, investments,
consumer finance and insurance through its wholly owned
subsidiaries, R-G Premier Bank, R-G Crown Bank, R&G Mortgage
Corporation, Puerto Rico's second largest mortgage banker, R-G
Investments Corporation, the Company's Puerto Rico broker-
dealer, and R-G Insurance Corporation, its Puerto Rico insurance
agency.  At June 30, 2006, the Company operated 37 bank branches
in Puerto Rico, 35 bank branches in the Orlando, Tampa/St.
Petersburg and Jacksonville, Florida and Augusta, Georgia
markets, and 49 mortgage offices in Puerto Rico, including 37
facilities located within R-G Premier Bank's banking branches.

                        *    *    *

Fitch Ratings lowered on Oct. 30, 2006, these ratings of R&G
Financial Corp.
and its subsidiaries:

  R&G Financial Corp.

      -- Long-term IDR to 'BB' from 'BBB-';
      -- Preferred stock to 'B' from 'BB'; and
      -- Individual to 'D' from 'C'.

   R-G Premier Bank

      -- Long-term IDR to 'BB' from 'BBB-';
      -- Short-term issuer to 'B' from 'F3';
      -- Long-term deposit obligations to 'BB+' from 'BBB';
      -- Short-term deposit obligations to 'B' from 'F3'; and
      -- Individual to 'C/D' from 'C'.

  R-G Crown Bank

      -- Long-term IDR to 'BB' from 'BBB-';
      -- Short-term issuer to 'B' from 'F3';
      -- Long-term deposit obligations to 'BB+ from 'BBB'; and
      -- Individual to 'C/D' from 'C'

  R&G Mortgage

      -- Long-term IDR to 'BB' from 'BBB-'.

Fitch said the rating outlook is negative.




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


BRITISH WEST: Sells Landing Rights for TT$63 Million
----------------------------------------------------
British West Indies Airlines aka BWIA has sold its landing
rights, along with its "seven coveted slot pairs", for TT$63
million, Newsday reports.

Newsday relates that the sale and the final selling price have
been criticized by both sides of the opposition, procurement
experts, and travelers.

The report says that after the TT$2 billion that the Trinidad
and Tobago government injected into BWIA is spent to close down
the airline and to launch the Caribben Airlines, BWIA will take
its final flight on Dec. 31 from Paramaribo, Suriname, to Piarco
Airport.  It is predicted that Caribbean's most profitable
airline assets will also meet its demise a few months after.

British Airways, which bought BWIA's landing rights, will charge
travelers an average of TT$1,165 more than BWIA for the Trinidad
and Tobago-Heathrow trip, Newsday notes.  

Newsday underscores that Lenny Saith, public administration and
information minister, indicated that the cabinet found it best
to sell to British Airways.

Mitra Mahabir, former vice president of procurement at BWIA,
questioned the Trinidad government's decision and expressed
dismay over the price at which the slots were sold, Newsday
says.

Mr. Mahabir told Newsday, "Five million pounds (equivalent to
TT$63 million) is... peanuts!  If you are being nominal, you
should get about six million pounds per slot and we had seven
pairs.  People have sold their slots, for much more and others
like Aer Lingus (the Irish National Airline) value these slots
in the billions.  A flight going into Heathrow is going to be
valued at much less than Gatwick.  Those landing rights are the
only major asset that the airline had and you can't get that
back, it is a strategic asset.  You must value revenue earning
capacity and that was a major point."

According to the report, Aer Lingus had said that Qantas Airways
paid close to 20 million pounds for two pairs of slots in late
2003.  Meanwhile, the National Economic Research Associates
report said that landing and take-off positions at Heathrow are
among the most coveted assets in world aviation.

The Times reported in May that at Heathrow, landing rights could
change hands for 10 million pounds.

An aviation expert told Newsday that the sale was a waste of
taxpayers' investments, as the Trinidad government has injected
many funds to stop BWIA from collapsing.

Mr. Mahabir explained to Newsday, "Consider this, we have paid
millions of taxpayers dollars to bail out BWIA and then we sell
it for less than we spent.  We are giving it away."

Meanwhile, Junior Finance Minister Conrad Enill, told Newsday
that the five million pounds was the actual value of the seven
slot pairs.  The Trinidad and Tobago-Heathrow route is
unprofitable for BWIA, as most passengers come from the UK and
fly to Barbados.

Though Caribbean Airlines will initially take over the Piarco to
London route, the airline will stop serving Trinidad from
Heathrow.  It will instead operate a codeshare with British
Airways on flights to Gatwick from March 27, 2007.

However, Chandresh Sharma, Parliamentary Representative of
Fyzabad, commented to Newsday that the slots, if put up for bid,
could have earned as much as 42 million pounds.  Mr. Sharma
questioned why the coveted slots were not put up for bid to get
the best possible price.

"If you are selling the slots you have to sell them to the
highest bidder, but this was not a bid it was a deal.  Every
other airline that has sold their slots at Heathrow has earned
more money.  Why have we earned the least.  Flights to and from
Heathrow are among the most expensive, both in terms of the
price paid by the passenger and the price of rights to land.  
Nobody who runs the Heathrow route loses anything and there is a
very heavy lobby for the slots," Mr. Sharma told Newsday.

Newsday emphasizes that Mr. Sharma compared the presence of BWIA
at Heathrow to the appearance of the national football team in
the World Cup, saying, "We were the smallest country at
Heathrow.  Other than Carnival we are BWIA.  The Caribbean was
known for this where we go we have the airline.  We had a
goldmine there.  All of Europe, Africa and the rest of the world
connects at Heathrow so, it was a big deal to have it."

The financial decisions were made by the BWIA board.  The
ability of Trinidad and Tobago to connect with its source
markets is paramount and was satisfied the codeshare agreement
with British Airways would redound to the benefit of the nation,
Newsday states, citing Howard Chin, the tourism minister.

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

The airline has reportedly been losing US$1 million a week due
to poor operational management.

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


BRITISH WEST: Workers Hired at New Airline Upset over Contract
--------------------------------------------------------------
Workers of British West Indies Airlines aka BWIA who secured
employment in Caribbean Airlines, which will take the place of
BWIA next year, were allegedly disappointed over details of
their new contract, the Jamaica Gleaner reports.

The Gleaner relates that some 1,800 BWIA employees lost their
jobs, as BWIA prepares to close down operations to make way for
Caribbean Airlines.  

Many of BWIA's 1,800 workers were served voluntary separation
from employment letters.  Those who have not gotten their
voluntary separation letters remained uncertain about their
future, according to Newsday.

Curtis John, the head of Allied Communication and Aviation
Workers Union or ACAWU, told Newsday that the union didn't know
how many BWIA workers were served termination letters.  

BWIA is still refusing to tell ACAWU how many of the 20,000
applications to Caribbean Airlines were BWIA workers and how
many were successful, Newsday notes, citing Mr. John.  The union
head claimed that the majority of those workers who got jobs
with the new carrier were unhappy with their contracts.  He said
the information available to him suggests the workers were
offered six-month contracts with terms and conditions that were
inferior to those they had at BWIA.  Most of the workers had
rejected the contracts.  

Meanwhile, the United States Securities and Exchange Commission
will be making a decision about a request from the Trinidad and
Tobago Stock Exchange to delist BWIA from the market and what
will happen to the airline's shares, Newsday states.

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

The airline has reportedly been losing US$1 million a week due
to poor operational management.

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




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


DAIMLERCHRYSLER: Unit Ordered to Pay US$350MM in US Fraud Case
--------------------------------------------------------------
The Multnomah County Circuit Court has ordered DaimlerChrysler
North American Holding Corp. and its heavy truck subsidiary,
Freightliner LLC, to pay US$350 million in damages in connection
with a multinational fraud case, CNNMoney reports.

The Court found DaimlerChrysler liable for US$280 million of the
punitive damages, with the remaining US$70 million asserted
against Freightliner, reports say.  The Oregon Court found that
Freightliner transferred assets between its divisions in an
effort to avoid a legal judgment.

The U.S. Court's ruling follows a British Court order handed
down last year, compelling Freightliner to pay approximately
US$489 million to German truck maker MAN AG, CNNMoney adds.

DaimlerChrysler intends to appeal the jury ruling.  A company
spokesperson has reiterated that Freightliner had never sought
to hide assets from MAN.

                     About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,   
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.  
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.

                         *     *     *

As reported in the Troubled Company Reporter on Oct. 31, 2006,
Standard & Poor's Ratings Services removed from CreditWatch and
affirmed its ratings on Doral Financial Corp., including its
'B+' counterparty rating.  The ratings were placed on
CreditWatch with negative implications on April 19, 2005.  S&P
said the outlook is negative.


PETROLEOS DE VENEZUELA: Cancels Tenders for Supply Contract
-----------------------------------------------------------
Market sources told Reuters that Petroleos de Venezuela, the
state-owned oil firm of Venezuela called off three tenders for
one-year contracts on supply of fuel oil, aviation fuel and
diesel.

Petroleos de Venezuela reversed an invitation of the tenders
days after the bidding was made, Reuters says, citing the
sources.

El Universal relates that Petroleos de Venezuela had offered
monthly shipments for one year of:

          -- 1.8 million barrels of high-sulfur fuel oil to be
             sold to China,

          -- 240,000 barrels of low-sulfur diesel for Europe,
             and

          -- 720,000 barrels of aviation fuel for Europe.

Petroleos de Venezuela did not explain the cancellation of the
tenders, operators told El Universal.

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.

The company has a commercial office in China.

                        *    *    *

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+'.


                            ***********


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
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Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella
Mae Hechanova, and Christian Toledo, Editors.

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

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