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        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

          Friday, December 22, 2006, Vol. 7, Issue 254

                          Headlines

A R G E N T I N A

AES CORP: Entering Into Electric Transmission Business
AGILENT TECH: Acquires Chemiluminescence Product Line from GE
ATEX SA: Trustee Verifies Proofs of Claim Until Feb. 19, 2007
BIZ MAKERS: Claims Verification Deadline Is on March 28, 2007
COMPANIA EXPORTADORA: Asks for Court Nod to Restructure Debts

CUISINART SA: Claims Verification Deadline Is on April 10, 2007
FLEJHIL SRL: Verification of Claims Is Until March 12, 2007

* PROVINCE OF BUENOS AIRES: Fitch Affirms & Withdraws Ratings

B A H A M A S

PINNACLE ENTERTAINMENT: Unable to Secure Phil. Gaming License
WINN-DIXIE: Court Approves Ohio Casualty Insurance Settlement

B O L I V I A

* BOLIVIA: Renegotiating Gas Export Price to Cuiaba with Brazil
* BOLIVIA: Gets US$120MM Loan to Improve Northern Corridor Road

B R A Z I L

ALCATEL-LUCENT: Supports "T-City" as Exclusive Premium Partner
BANCO BRADESCO: Handling Santa Catarina Payroll for Five Years
BANCO ITAU: Loses Santa Catarina Auction to Banco Bradesco
BANCO NACIONAL: Allots BRL1 Million for Microcredit Operations
BANCO NACIONAL: Grants BRL570 Mil. to Sao Salvador Hydro Plant

BANCO NACIONAL: Grants BRL1.53 Million Loan to Credimais
BRASIL TELECOM: Paying BRL228.1 Mil. Interest on Own Capital
BRASIL TELECOM: Will Extend Fixed Line Infrastructure Next Year
DURA AUTO: Wants to Enter Into Senior Executive Employment Pact
DURA AUTOMOTIVE: Gets Final Nod to Pay Non-Debtor Affiliates

DURA AUTOMOTIVE: Ch. 11 Filing Cues Moody's to Withdraw Ratings
JABIL CIRCUIT: Posts US$3.2B Net Revenue for Qtr. Ended Nov. 30
PETROLEO BRASILEIRO: Output Drops to 1.94MM Barrels in November
PETROLEO BRASILEIRO: Renegotiating Gas Export Price to Cuiaba
PETROLEO BRASILEIRO: Confirms Purchase Talks in Okinawa Refinery

SENSATA TECH: Completes Purchase of Honeywell's FTAS Business
TIMKEN CO: Sells Automotive Steering Biz to DriveSol Worldwide

* BRAZIL: Market for Plastics in Food & Beverage Packaging Grows

C A Y M A N   I S L A N D S

4711 LIMITED: Shareholders to Convene for Dec. 28 Final Meeting
ACOS ARBITRAGE: Proofs of Claim Filing Is Until Dec. 27
ACOS ARBITRAGE MASTER: Proofs of Claim Filing Is Until Dec. 27
AMERICAN EGALE: Shareholders to Gather for Dec. 28 Final Meeting
ASSET TRUST: Proofs of Claim Filing Deadline Is on Dec. 27

BEACH DISCRETIONARY: Final Shareholders Meeting Is on Dec. 28
BEACH FUND: Invites Shareholders for Final Meeting on Dec. 28
BEACH SYSTEMATIC: Calls Shareholders for Dec. 28 Final Meeting
BROWN SIMPSON: Creditors Must File Proofs of Claim by Dec. 27
BROWN SIMPSON STRATEGIC: Filing of Proofs of Claim Ends Dec. 27

DE CAPITAL: Last Day for Proofs of Claim Filing Is on Dec. 27
DE CAPITAL GENERAL: Proofs of Claim Must be Submitted by Dec. 27
DE CAPITAL INT'L: Proofs of Claim Filing Deadline Is Dec. 27
DISTRESSED RECOVERY: Proofs of Claim Must be Filed by Dec. 27
DISTRESSED RECOVERY MASTER: Proofs of Claim Filing Ends Dec. 27

EASTERN INVESTMENTS: Final Shareholders Meeting Is on Dec. 28
FIRST QUADRANT: Creditors Must File Proofs of Claim by Dec. 27
FRUSTRATED LTD: Shareholders Final Meeting Is Set for Dec. 28
HALIOTIS LTD: Final Shareholders Meeting Is Set for Dec. 28
INFORMATION SECURITY: Proofs of Claim Filing Is Until Dec. 27

JOFI NISHI-SHINJUKU: Last Day to File Proofs of Claim Is Dec. 27
JOFI OTSUKA: Deadline for Proofs of Claim Filing Is on Dec. 27
JOFI YOKOHAMA: Deadline for Filing of Proofs of Claim Is Dec. 27
MOUNTCASHEL FUND: Crediotrs Must File Proofs of Claim by Dec. 27
POWER FUNDING: Deadline for Filing of Proofs of Claim Is Dec. 27

P.T. COMPANY: Liquidator to Present Wind Up Accounts on Dec. 28
VIVACE TWO: Shareholders to Convene for Final Meeting on Dec. 28
XMARK FUND: Creditors Have Until Dec. 27 to File Proofs of Claim

C H I L E

ARAMARK INC: Shareholders Approve Investors' Buyout of Firm
QUEBECOR WORLD: Completes Equipment Lease Financing

C O L O M B I A

ECOPETROL: Planning Exploration Work in Indigenous Lands
MILLICOM INTERNATIONAL: Colombia Movil Selling 9.25MM Shares

C O S T A   R I C A

SAMSONITE: Tender Offer for 8-7/8% Notes Expired

* COSTA RICA: IDB Grants US$50MM Loan to Alleviate Urban Poverty

D O M I N I C A N   R E P U B L I C

CLOROX CO: To Buy Colgate's Canada & Latin America Bleach Assets

E C U A D O R

PETROECUADOR: Inks Crude-for-Derivatives Pact with Enap
PETROECUADOR: Pareja Assures Safety of Foreign Oil Investments

G U A T E M A L A

TECO ENERGY: Completes Redemption of 8.5% Trust Pref. Securities

J A M A I C A

COURTS (JAMAICA): Regal Forest Secures 96% of Shares in Firm
DYOLL GROUP: Letter to Stock Exchange Doesn't Affect Stock Price

M E X I C O

ALERIS INT'L: S&P Affirms Corporate Credit Rating at B+
ALLIS-CHALMERS: David Wilde Resigns as President & CFO
DELTA AIR: Creditors' Committee Supports Plan Filing Decision
DELTA AIR: US Airways Responds to Creditors' Committee Comment
DELTA AIR: Accepting Pilot Applications in 2007

GREENBRIER: Provides Earnings Outlook for Quarter Ended Nov. 30
GRUPO MEXICO: Southern Copper Spending US$20 Mil. on Exploration
MERIDIAN AUTOMOTIVE: Ct. OKs Rejection of 18 Contracts & Leases
MERIDIAN AUTOMOTIVE: Assumes 107 Contracts and Leases
SHOSHONE SILVER: Williams & Webster Raises Going Concern Doubt

SMITHFIELD FOODS: Moody's Lowers Corporate Family Rating to Ba3
SWIFT & COMPANY: Moody's Places Ratings on Review for Upgrade

* MEXICO: Market for Plastics in Food & Beverage Packaging Grows

N I C A R A G U A

* NICARAGUA: Has Made Considerable Economic Progress, IMF Says
* NICARAGUA: Comision Nacional Inks Pact with Direccion General

P A R A G U A Y

* PARAGUAY: Secures US$69.5M Loan for Power Transmission Program

P E R U

GRAN TIERRA: Awarded License Contract for Block 128 in Peru

* PERU: IDB Provides US$486 Million Conditional Credit Line

P U E R T O   R I C O

ADELPHIA COMMS: Files Proposed Changes to Plan of Reorganization
APARTMENT INVESTMENT: Declares Dividend on Class A Common Stock
SAN JUAN: Moody's Affirms Low B Ratings
SUNCOM WIRELESS: Begins Over-the-Counter Trading
SUNSET BRANDS: Posts US$9.1 Mil. Net Loss in 2006 Third Quarter

U R U G U A Y

NAVIOS MARITIME: Completes US$300 Million Senior Notes Offering

* URUGUAY: State Bank Posts UYU1.96B 11-Month Profits
* URUGUAY: State Firm Resolving Power Failures Caused by Storm

V E N E Z U E L A

CITGO PETROLEUM: Fitch Raises Issuer Default Rating to BB
PETROLEOS DE VENEZUELA: Exploring Boyaca 5 Block with Petronas
PETROLEOS DE VENEZUELA: Production & Processing Cost US$5/Barrel
REVLON INC: Unit Completes Credit Agreement Refinancing


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A R G E N T I N A
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AES CORP: Entering Into Electric Transmission Business
------------------------------------------------------
The AES Corp. is entering the electric transmission business as
part of its overall growth strategy for North America.  Through
a new wholly owned subsidiary, AES said it has acquired the
development pipeline and trade name from Trans-Elect, LLC, a
leading transmission developer.  In addition, AES disclosed that
the new subsidiary has entered into an agreement with Trans-
Elect's former management team to jointly develop projects
across North America to extend and improve the nation's
electricity grid.

"We see significant potential for transmission development in
North America with grid investment expected to nearly double by
2010.  Increasing congestion costs in many high demand areas of
the country, the growing development of renewable generation
located far from load centers, and enhanced regulatory support
at the state, regional, and federal levels are driving this
growth," said David Gee, President of AES North America.  
"Independent electric transmission is a natural complement to
our existing generation development business. We also see
significant synergy and opportunity in working with Trans-
Elect's development team as they are proven and respected in the
transmission business."

Trans-Elect was formed in 1999 as the first independent
transmission company in North America to pursue the development
of independently owned electric transmission with the goal of
increasing the reliability of the system and lowering costs to
consumers.  Since 2002, Trans-Elect has acquired an interest in
the AltaLink transmission system in Alberta, Canada, purchased
Consumers Energy's Michigan transmission system and secured
financing to construct the expansion of the Path 15 transmission
line in California.  Before being sold to third parties, these
assets totaled 12,600 miles of transmission assets under
management.

"Trans-Elect is proud to have pioneered independent electric
transmission ownership and new transmission development in this
country," said Bob Mitchell, Chief Executive Officer of Trans-
Elect Development, LLC, and a former executive at Trans-Elect.  
"We are excited about this new relationship with AES as they
have been a creative force in developing independent generation
in the US. Additionally, we believe that AES's development
skills, industry relationships, and financing capabilities will
enhance our efforts to meet the nation's electricity needs."

Transmission investment in the United States has increased
dramatically since the late 1990's from US$2.5 billion in 1998
to US$5.5 billion in 2005. According to the Edison Electric
Institute, transmission investment could reach US$8.0 billion
per year by 2008 and US$10.0 billion or more by 2010.

AES Corp. -- http://www.aes.com/-- is a global power company.   
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries.  Generating 44,000 megawatts of
electricity through 124 power facilities, the company delivers
electricity through 15 distribution companies.

AES Corp.'s Latin America business group is comprised of
generation plants and electric utilities in Argentina, Brazil,
Chile, Colombia, Dominican Republic, El Salvador, Panama and
Venezuela.  Fuels include biomass, diesel, coal, gas and hydro.  
The group also pursues business development activities in the
region.  AES has been in the region since May 1993, when it
acquired the CTSN power plant in Argentina.

                        *    *    *

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 20, 2006, Moody's Investors Service's downgraded its B1
Corporate Family Rating for AES Corporation in connection with
the implementation of its new Probability-of-Default and Loss-
Given-Default rating methodology.  Additionally, Moody's revised
its probability-of-default ratings and assigned loss-given-
default ratings on the company's loans and bond debt obligations
including the B1 rating on its senior unsecured notes 7.75% due
2014, which was also given an LGD4 loss-given default rating,
suggesting noteholders will experience a 55% loss in the event
of a default.


AGILENT TECH: Acquires Chemiluminescence Product Line from GE
-------------------------------------------------------------
Agilent Technologies Inc. has acquired the chemiluminescence
product line -- including a sulfur detector and a nitrogen
detector -- from General Electric or GE Analytical Instruments,
a division of GE Water & Process Technologies.  Agilent will
offer the acquired products as add-ons to its gas
chromatographs.

The acquisition includes intellectual property, sales, marketing
and manufacturing assets.  Financial details were not disclosed.

The Sievers 355 Sulfur Chemiluminescence Detector and Sievers
255 Nitrogen Chemiluminescence Detector products will be
integrated into Agilent's Chemical Analysis Solutions unit
within its Life Sciences and Chemical Analysis business.

The newly acquired product line is targeted to the energy and
petrochemical industries.  Sulfur detection is one of the
fastest growing sub-segments in the petrochemical market based
largely on increasing regulation of sulfur monitoring in fuels
worldwide.  Growth in Asia is outpacing the rest of the world
market.

The SCD and NCD detectors expand the portfolio of sulfur and
nitrogen measurement offerings that Agilent currently provides
such as -- the flame photometric detector and the nitrogen
phosphorus detector.

"The Sievers 355 SCD is widely recognized as the market leader
in sulfur detection," said Shanya Kane, Agilent vice president
and general manager of GC and Workflow Automation Systems.  
"With this acquisition, Agilent is pleased to be able to offer
this important, complementary sulfur solution to our customers."

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 including Argentina.  
Agilent had net revenue of US$5.1 billion in fiscal 2005.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 20, 2006,
Moody's Investors Service upgraded the ratings of Agilent
Technologies Inc. to Ba1 from Ba2 and revised the outlook to
positive.

Standard & Poor's Ratings Services placed its 'BB+' corporate
credit rating on Agilent Technologies Inc. on CreditWatch with
positive implications.


ATEX SA: Trustee Verifies Proofs of Claim Until Feb. 19, 2007
-------------------------------------------------------------
Luis Gabriel Plizzo, the court-appointed trustee for Atex SA's
bankruptcy proceeding, verifies creditors' proofs of claim until
Feb. 19, 2007.

Mr. Plizzo will present the validated claims in court as
individual reports on April 3, 2007.   A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and
challenges raised by Atex 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 Atex SA's accounting
and banking records will follow on May 18, 2007.

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

The debtor can be reached at:

         Atex SA
         Uriburu 353
         Buenos Aires, Argentina

The trustee can be reached at:

         Luis Gabriel Plizzo
         Avenida Roque Saenz Pena
         Buenos Aires, Argentina


BIZ MAKERS: Claims Verification Deadline Is on March 28, 2007
-------------------------------------------------------------
Luis Alberto Cortes, the court-appointed trustee for Biz Makers
SA's bankruptcy proceeding, will verify creditors' proofs of
claim until March 28, 2007.

Under the Argentine bankruptcy law, Mr. Cortes is required to
present the validated claims in court as individual reports.  
Court No. 15 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 Biz Makers and its
creditors.

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

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

Biz Makers was forced into bankruptcy at the request of Mega
Cooperativa Ltda., which it owes US$10,277.

Clerk No. 29 assists the court in the proceeding.

The debtor can be reached at:

          Biz Makers S.A.
          San Martin 1137
          Buenos Aires, Argentina  

The trustee can be reached at:

          Luis Alberto Cortes
          Avenida Cordoba 1646
          Buenos Aires, Argentina


COMPANIA EXPORTADORA: Asks for Court Nod to Restructure Debts
-------------------------------------------------------------
A court in Buenos Aires is studying the merits of Compania
Exportadora Agrominera S.A.'s petition to restructure its debts
after it stopped paying its obligations.

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


CUISINART SA: Claims Verification Deadline Is on April 10, 2007
---------------------------------------------------------------
Jose Luis Sebastian Ciccociopo, the court-appointed trustee for
Cuisinart SA's bankruptcy proceeding, verifies creditors' proofs
of claim until April 10, 2007.

Mr. Ciccociopo will present the validated claims in court as
individual reports on May 29, 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 Cuisinart 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 Cuisinart SA's
accounting and banking records will follow on July 13, 2007.

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

The debtor can be reached at:

         Cuisinart SA
         Avda Leandro N. Alem 424
         Buenos Aires, Argentina

The trustee can be reached at:

         Jose Sebastian Ciccociopo
         Vidal 3375
         Buenos Aires, Argentina  


FLEJHIL SRL: Verification of Claims Is Until March 12, 2007
-----------------------------------------------------------
Ana Maria Blugerman, the court-appointed trustee for Flejhil
SRL's bankruptcy proceeding, verifies creditors' proofs of claim
until March 12, 2007.

Ms. Blugerman will present the validated claims in court as
individual reports on May 9, 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 Flejhil SRL 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 Flejhil SRL's
accounting and banking records will follow on JUNE 25, 2007.

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

The trustee can be reached at:

         Ana Maria Blugerman
         Paran 774
         Buenos Aires, Argentina  


* PROVINCE OF BUENOS AIRES: Fitch Affirms & Withdraws Ratings
-------------------------------------------------------------
Fitch Ratings affirms and simultaneously withdraws the ratings
on Province of Buenos Aires as:

   -- Long Term Issuer Default Rating at 'D';

   -- Local Currency Long Term Issuer Default Rating at 'D';

   -- Eurobonds offered by PBA to exchange defaulted Euro
      medium-term bonds;

   -- Long Term Foreign Currency at 'CCC+'; and

   -- Long Term Local Currency at 'CCC+'.

Fitch will no longer provide analytical coverage of this issuer.




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B A H A M A S
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PINNACLE ENTERTAINMENT: Unable to Secure Phil. Gaming License
-------------------------------------------------------------
Pinnacle Entertainment, Inc., disclosed that the company was not
awarded one of two gaming licenses granted in the city of
Philadelphia by the Pennsylvania Gaming Control Board.

"We're disappointed that we were not chosen by the Pennsylvania
Gaming Control Board," said Daniel R. Lee, Pinnacle's Chairman
and Chief Executive Officer.  "We're proud of our effort in
Philadelphia, where we believe we offered a well-designed
concept in the right location.  We wish the city of Philadelphia
the best of luck with its endeavor."

Headquartered in Las Vegas, Nevada, Pinnacle Entertainment,
Inc., (NYSE: PNK) -- http://www.pnkinc.com/-- owns and operates  
casinos in Nevada, Louisiana, Indiana and Argentina, owns a
hotel in Missouri, receives lease income from two card club
casinos in the Los Angeles metropolitan area, has been licensed
to operate a small casino in the Bahamas, and owns a casino site
and has significant insurance claims related to a hurricane-
damaged casino previously operated in Biloxi, Mississippi.  
Pinnacle opened a major casino resort in Lake Charles, Louisiana
in May 2005 and a new replacement casino in Neuquen, Argentina
in July 2005.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 4, 2006,
Moody's Investors Service's confirmed Pinnacle Entertainment,
Inc.'s B2 Corporate Family Rating.

At the same time, Standard & Poor's Ratings Services affirmed
its 'BB-' rating and '1' recovery rating following Pinnacle
Entertainment Inc.'s US$250 million senior secured bank facility
add-on.


WINN-DIXIE: Court Approves Ohio Casualty Insurance Settlement
-------------------------------------------------------------
The Honorable Jerry A. Funk of the U.S. Bankruptcy Court for the
Middle District of Florida approved Winn-Dixie Stores Inc. and
its debtor-affiliates' settlement and compromise with The Ohio
Casualty Insurance Company.

The Debtors will undertake and assume the liabilities and
obligations under the Ohio Casualty Indemnity Agreement,
exclusive of any post-cancellation premiums with respect to Ohio
Casualty's continuing exposure under the Bonds and the fees and
expenses arising in connection with the bankruptcy cases through
the Plan Effective Date.

The undertaking of the liabilities and obligations under the
Ohio Casualty Indemnity Agreement is implicitly acknowledged in
the Final Insurance Order and supported by the provisions in the
Debtors' Plan.

The Debtors, in connection with the operation of their business,
must post, or have a surety post, bonds or other forms of
security to comply with certain state workers compensation
insurance regulations allowing them to operate as self-insured
employers for workers' compensation purposes in those states.

In connection with the Debtors' qualification as a self-insured
employer for workers' compensation purposes in Mississippi, Ohio
Casualty issued two surety bonds, each amounting to $500,000,
before the Debtors filed for bankruptcy:

   Bond No.         Principal                    Obligee
   --------         ---------                    -------
   3-696-391   Winn-Dixie Louisiana, Inc.   State of Mississippi
   3-696-392   Winn-Dixie Montgomery, Inc.  State of Mississippi

Ohio Casualty issued the Bonds in reliance upon the Debtors'
execution of the Ohio Casualty Indemnity Agreement pursuant to
which the Debtors agreed, among other things, to pay Ohio
Casualty upon demand:

   (i) amounts sufficient to reimburse Ohio Casualty for all
       loss and expense, including reasonable attorneys' fees,
       incurred by Ohio Casualty by reason of having executed
       any bond or bonds;

  (ii) amounts sufficient to reimburse Ohio Casualty on account
       of any breach of the Ohio Casualty Indemnity Agreement by
       the Debtors;

(iii) amounts sufficient to discharge any claim made against
       Ohio Casualty on any bond, whether issued on behalf of
       Any of the Debtors; and

  (iv) any premium due for any bond or bonds, including renewal
       premiums with respect to the Bonds until proof
       satisfactory to Ohio Casualty is furnished demonstrating
       Ohio Casualty's discharge from liability under the Bonds.

Additionally, under the Ohio Casualty Indemnity Agreement, the
Debtors are required to procure the discharge of Ohio Casualty
from any bond and all liability accruing or to accrue by reason
thereof, and in support, deposit collateral with Ohio Casualty
to cover its exposure under its Bonds.

Recognizing the importance of their insurance programs,
including the self-insurance workers' compensation programs
supported by surety bonds, on Feb. 22, 2005, the Debtors filed a
request to continue their prepetition insurance and workers
compensation programs, and pay prepetition premiums in relation
to the programs.  The Court approved the Insurance Motion on a
final basis on March 15, 2005.

Ohio Casualty issued the Bonds effective May 3, 2002.  Ohio
Casualty provided the Debtors with notice of cancellation of the
Bonds on Jan. 28, 2005, which, under a 60-day notice of
cancellation provision under the Bonds, means that the effective
date of cancellation for the Bonds occurred March 28, 2005.

The Ohio Casualty's cancellation did not terminate the
enforceability of the Bonds; rather, the Bonds remain in force
from the date of issuance to the effective date of cancellation.  
Thus, the Debtors qualify as self-insured employers for workers'
compensation purposes in Mississippi during the Effective
Period.  As a result, the Debtors and Ohio Casualty, as surety,
continue to be exposed to liability for workers' compensation
claims that arise during the Effective Period.

When the Debtors filed for bankruptcy, Bonds in the aggregate
amount of $1,000,000 remained outstanding.

As a result of its continuing exposure under its Bonds despite
their cancellation, Ohio Casualty filed Claim Nos. 9993 and 9994
against Winn-Dixie Stores and certain of its subsidiaries,
alleging contingent claims of up to $1,000,000, plus attorneys'
fees, expenses and including bond premiums arising with respect
to the Bonds.  Ohio Casualty further asserted that it was the
holder of secured claims against the Debtors pursuant to:

   (i) compensation liens or preference and priority claims and
       interests with respect to and in the assets of the
       Debtors under Miss. Code Ann. Section 71-3-45 (1990); and

  (ii) its rights of equitable subrogation.

In furtherance of the obligations and programs assumed pursuant
to the Final Insurance Order, the Debtors proposed in their
Joint Plan of Reorganization to pay all Workers Compensation
Claims that are determined to be valid under applicable state
law and the corresponding programs they maintained, and in
accordance with the terms and conditions of the state law and
the programs.

The Debtors' Plan also provides that a "Workers Compensation
Claim" means a "Claim held by an employee of the Debtors for
workers compensation coverage under the workers compensation
program applicable in the particular state in which the employee
is employed by the Debtors."  By its terms, the Plan
contemplates payment of the workers compensation obligations
that, if not satisfied by the Debtors, would impair their
qualification under Mississippi and other state workers'
compensation regulations, and possibly prevent an effective
reorganization.

Pursuant to the Settlement, the Debtors agreed to compromise
Ohio Casualty's claims for payment of post cancellation premiums
with respect to its continuing exposure under its Bonds.

The Debtors also agreed to compromise Ohio Casualty's claims for
fees and expenses arising in connection with the bankruptcy
cases through Nov. 21, 2006, the effective date of the Plan.

Ohio Casualty's claims will be disallowed, without prejudice to
the insurer's right to file an administrative claim within the
time allowed in the event of a default by the Debtors under the
Ohio Casualty Indemnity Agreement before Nov. 21, 2006.

In exchange for the release of its claims for post-cancellation
premiums and attorneys' fees and expenses, Ohio Casualty has
requested a more formal acknowledgment by the Debtors of their
obligations under the Ohio Casualty Indemnity Agreement.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.  
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts.  The Honorable Jerry A. Funk
confirmed Winn-Dixie's Joint Plan of Reorganization on Nov. 9,
2006.  Winn-Dixie emerged from bankruptcy on Nov. 21, 2006.  
(Winn-Dixie Bankruptcy News, Issue No. 61; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).




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B O L I V I A
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* BOLIVIA: Renegotiating Gas Export Price to Cuiaba with Brazil
---------------------------------------------------------------
Representatives of the Bolivian government will be renegotiating
with their Brazilian counterparts the gas export price to Cuiaba
in Mato Grosso, Brazil, Business News Americas reports.

According to Agencia Boliviana de Informacion, Cuiaba is home to
the 480-megawatt Cuiaba combined cycle power plant, in which
Anglo-Dutch firm Shell and US energy company Prisma Energy hold
stakes.  The city receives 1.2 million cubic meters per day of
natural gas at a price of US$1.09 per million British thermal
unit.

Prisma said on its Web site that the Cuiaba plant receives its
gas from a 630-kilometer pipeline branching off from the 3,000-
kilometer Bolivia-Brasil gas pipeline.

BNamericas relates that the representatives will meet in Santa
Cruz, Bolivia, along with officials from:  

          -- Bolivian state oil Yacimientos Petroliferos
             Fiscales Bolivianos,

          -- Brazil's state owned firm Petroleo Brasileiro,

          -- Shell, and

          -- Prisma Energy.

Brazil and Bolivia have been trying to reach an agreement on a
new gas export price.  Bolivia wants to raise the price to some
US$5 per million British thermal unit, which is the same price
it renegotiated with Argentina.

In the meeting held in Brasilia, Silas Rondeau -- Brazil's
energy mines minister -- said that the Brazilian government has
decided not to take the matter to court, BNamericas notes.

Carlos Villegas, the Bolivian hydrocarbons minister, told
Agencia Boliviana that Brazil and Bolivian would continue
negotiations in the second half of January 2007 for his
country's purchase of a majority participation in the Gualberto
Villarroel and Guillermo Elder refineries from Petroleo
Brasileiro.

BNamericas states that Yacimientos Petroliferos and Petroleo
Brasileiro want to discuss joint projects including:

          -- industrialization of Bolivian gas,

          -- a gas chemical hub,

          -- the installation of a thermoelectric plant in San
             Ignacio,

          -- analyses of biofuels programs, and

          -- technical cooperation between both ministries.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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


* BOLIVIA: Gets US$120MM Loan to Improve Northern Corridor Road
---------------------------------------------------------------
The Inter-American Development Bank approved a US$120 million
loan to Bolivia for a program to improve the Northern Corridor
highway in the Santa Barbara-Rurrenabaque section.

The program will contribute to national and regional physical
integration and improve the accessibility and physical
continuity of the Northern Corridor from La Paz to Rurrenabaque.  
It will also facilitate transportation for people living in the
departments of Beni and La Paz.

"Bolivia's 2006-2010 National Development Plan and its general
economic policy, known as 'Bolivia Productiva,' seek to reform
and reactivate the country's productive sectors," said IDB Team
Leader Rafael Acevedo. "A core strategy of the policy is to
build a network of linkages within the country with a focus on
the expansion of the road network and improvements in general
transportation conditions."

"This initiative will reduce travel times along the Santa
Barbara-Rurrenabaque and Yucumo-San Borja roads, lower vehicle
operating costs and provide continuous access throughout the
year with better road safety conditions," said Mr. Acevedo.  "It
will facilitate economic and productive activities in the
region, linking zones with agricultural and ranching potential
to some of the main centers of commercial activity," added Mr.
Acevedo.

The IDB has considerable experience in working with Bolivia's
Northern Corridor, where it has participated in six operations
for a total of around US$225 million.

This loan from the IDB Fund for Special Operations is for a 40-
year period, with a 10-year grace period with an interest rate
of 1% during the grace period and 2% thereafter.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


ALCATEL-LUCENT: Supports "T-City" as Exclusive Premium Partner
--------------------------------------------------------------
Alcatel-Lucent is supporting Deutsche Telekom's "T-City"
competition as an exclusive premium partner.  Under the terms of
a five-year contract concluded at the end of November, Alcatel-
Lucent will support Deutsche Telekom in the development and
introduction of innovative integrated telecommunication
solutions.

Alcatel-Lucent will also make its expertise in the development
and introduction of new services available for the "T-City"
program.  

Alcatel-Lucent has found that close and direct cooperation
between end-users, service providers and solution suppliers
considerably accelerates the development and implementation of
new solutions.  Thus the citizens, local authorities,
organizations and enterprises of the future "T-City" will find
their service needs met with an unprecedented "quality of
experience".

A total of 52 cities entered the "T-City" competition.  The
winning concept will be realized -- with regards to
telecommunications solutions and applications by Deutsche
Telekom, Alcatel-Lucent as the Premium partner and -- if needed
-- additional non-premium partners. The participants share the
expectation that an advanced technical infrastructure, the
applications running on it and the degree of networking among
municipal institutions will provide a basis for a sustained
increase in the quality of life for their citizens.

Of the 52 cities that participated in the initial round of the
competition, an independent jury selected ten cities to go
forward to the final round:

   -- Arnsberg,
   -- Coburg,
   -- Frankfurt (Oder),
   -- Friedrichshafen,
   -- Gorlitz,
   -- Kamp-Lintfort,
   -- Kaiserslautern,
   -- Neuruppin,
   -- Osterholz-Scharmbeck and
   -- Schwabisch-Hall.

The winner will be the city that has made the best municipal
application to use the modern telecommunications technology to
meet the specific tasks and challenges a 21st century community
faces (e.g. the interaction between citizens and the municipal
administration).  The future T-City will act as a role model for
other cities, and will be selected in February 2007.

Deutsche Telekom will implement the innovative ideas of the
future T-City jointly with Alcatel-Lucent as its premium partner
in defined product and cooperative areas.  Deutsche Telekom may
recruit additional partners to implement other areas, which are
not covered by the premium partnership with Alcatel-Lucent.

"We are pleased with having won Alcatel-Lucent as a strong
technology and premium partner for a quite demanding T-City
project.  We are looking forward to use our joint know-how for
giving birth to an exemplary, networked city of the future",
Joerg Bollow, project leader T-City, Deutsche Telekom AG.

Hans-Burghardt Ziermann, an executive with Alcatel-Lucent's
operations in Germany, is a member of the 11-strong jury, which
selected the ten finalists at the end of November.

"This exclusive partnership in the "T-City" project represents a
continuation of our long-lasting and successful partnership with
Deutsche Telekom", says Hans-Burghardt Ziermann.  "We are happy
to be able to help a city become a more attractive place for
living and as an industrial location thanks to a modern
telecommunications network."

                    About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that   
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users.  With 79,000 employees and operations in more than 130
countries, including Brazil, Alcatel-Lucent is a local partner
with global reach.  Through its operations in fixed, mobile and
converged broadband networking, Internet protocol (IP)
technologies, applications, and services, Alcatel-Lucent offers
the end-to-end solutions that enable communications services for
people at home, at work and on the move.

On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.

                        *    *    *

As reported in the TCR-Europe on Dec. 14, following the
completion of Alcatel S.A.'s merger with Lucent
Technologies Inc., at which time Alcatel was renamed Alcatel-
Lucent, Fitch Ratings downgraded and removed Alcatel from Rating
Watch Negative:

   -- Issuer Default Rating to BB from BBB-; and
   -- Senior unsecured debt to BB from BBB-.

Alcatel's F3 short-term rating has also been withdrawn.

The Rating Outlook for Alcatel-Lucent is Stable.

Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:

   -- Issuer Default Rating BB-;
   -- Senior unsecured debt BB-;
   -- Convertible subordinated debt B; and
   -- Convertible trust preferred securities B.

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

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

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

Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006 research update.

The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed.  S&P said the outlook is positive.


BANCO BRADESCO: Handling Santa Catarina Payroll for Five Years
--------------------------------------------------------------
Banco Bradesco said in a statement that it has won a state
auction to handle the payroll for Santa Catarina state with a
BRL210 million bid.

According to Business News Americas, Santa Catarina has 122,000
workers and retirees on its payroll, which moves BRL288 million
per month.

BNamericas relates that Banco Bradesco's bid came in almost 50%
above the state's minimum price of BRL141 million.

Published reports say that Banco Bradesco initially offered
BRL200 million.  However, the bank raised it to BRL210 million
after the local unit of Spain's Santander increased its bid to
BRL210mn from BRL146 million.

According to the reports, Banco Itau presented a BRL142-million
bid, while the local unit of UK bank HSBC offered BRL141
million.

BNamericas underscores that new central bank rules allowing
state workers to choose the bank where they receive their
paychecks, regardless of any contract between the state and a
financial institution, will take effect soon.

Larger banks in Brazil consider handling public payrolls as an
important cross-selling opportunity, particularly for payroll
and retirement loans, BNamericas states.

                   About Banco Bradesco

Headquartered in Sao Paulo, Brazil, Banco Bradesco SA --
http://www.bradesco.com.br/-- prides itself on serving low-and
medium-income individuals in Brazil since the 1960s. Bradesco is
Brazil's largest private bank, with more than 3,000 banking
branches, and also a leader in insurance and private pension
management.  Bradesco has branches throughout Brazil as well as
one in New York, and Japan.  Bradesco offers Internet banking,
insurance, pension plans, annuities, credit card services
(including football-club affinity cards for the soccer-mad
population), and Internet access for customers.  The bank also
provides personal and commercial loans, along with leasing
services.

                        *    *    *

As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
maintained the 'BB+' ratings on both of Banco Bradesco SA's
foreign and local currency counterparty credit rating, however
it changed the ratings outlook to positive from stable on both
ratings:

   -- Foreign currency counterparty credit rating

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

   -- Local currency counterparty credit rating

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

   -- Brazil national scale rating

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

This is in connection with Standard & Poor's revised outlook on
its long-term foreign and local currency ratings on 16 Brazilian
entities to positive from stable, following the revision of the
foreign and local currency rating outlooks on the Federative
Republic of Brazil.


BANCO ITAU: Loses Santa Catarina Auction to Banco Bradesco
----------------------------------------------------------
Banco Itau Holding Financeira SA has lost the Santa Catarina
auction to Banco Bradesco SA, Business News Americas reports.

Banco Itau presented a BRL142-million bid to handle the payroll
for Santa Catarina state, published reports say.

However, Banco Bradesco offered BRL210 million, beating Banco
Itau in the auction, BNamericas says.

According to BNamericas, Santa Catarina has 122,000 workers and
retirees on its payroll, which moves BRL288 million per month.

BNamericas relates that Banco Bradesco's bid came in almost 50%
above the state's minimum price of BRL141 million.

The reports say that Banco Bradesco initially offered BRL200
million.  However, the bank raised it to BRL210 million after
the local unit of Spain's Santander increased its bid to
BRL210mn from BRL146 million.  Meanwhile, the local unit of UK
bank HSBC offered BRL141 million.

BNamericas underscores that new central bank rules allowing
state workers to choose the bank where they receive their
paychecks, regardless of any contract between the state and a
financial institution, will take effect soon.

Larger banks in Brazil consider handling public payrolls as an
important cross-selling opportunity, particularly for payroll
and retirement loans, BNamericas states.

                    About Banco Bradesco

Headquartered in Sao Paulo, Brazil, Banco Bradesco SA --
http://www.bradesco.com.br/-- prides itself on serving low-and
medium-income individuals in Brazil since the 1960s. Bradesco is
Brazil's largest private bank, with more than 3,000 banking
branches, and also a leader in insurance and private pension
management.  Bradesco has branches throughout Brazil as well as
one in New York, and Japan.  Bradesco offers Internet banking,
insurance, pension plans, annuities, credit card services
(including football-club affinity cards for the soccer-mad
population), and Internet access for customers.  The bank also
provides personal and commercial loans, along with leasing
services.

                     About Banco Itau

Banco Itau Holding Financeira SA -- http://www.itau.com.br/--   
is a private bank in Brazil.  The company has four principal
operations: banking -- including retail banking through its
wholly owned subsidiary, Banco Itau SA (Itau), corporate banking
through its wholly owned subsidiary, Banco Itau BBA SA (Itau
BBA) and consumer credit to non-account hold customers through
Itaucred -- credit cards, asset management and insurance,
private retirement plans and capitalization plans, a type of
savings plan.  Itau Holding provides a variety of credit and
non-credit products and services directed towards individuals,
small and middle market companies and large corporations.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
March 9, 2006, Standard & Poor's Ratings Services assigned a
'BB' currency credit rating on Banco Itau SA.

                        *    *    *

Fitch affirmed on Aug. 28, 2006, the ratings of the Itau Group
of banks and the National Long- and Short-term ratings of
BankBoston Banco Multiplo SA and its subsidiary, BankBoston
Leasing SA -- Arrendamento Mercantil (BankBoston Leasing).  This
followed the conclusion of the agreement between Banco Itau
Holding Financeira with Bank of America Corp. to acquire BAC's
Brazilian operations (spearheaded by BKB) and its Latin American
subsidiaries.  Central Bank of Brazil approved the BKB
transaction on Aug. 22, 2006, and the acquisition of the local
subsidiaries of BAC is contingent on approval by the Chilean and
Uruguayan regulatory authorities.

The affected ratings of Banco Itau were:

   Banco Itau Holding Financeira

      -- Foreign currency IDR affirmed at 'BB+', Stable Outlook

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

      -- Local currency IDR affirmed at 'BBB-' (BBB minus),
         Stable Outlook

      -- Short-term local currency rating affirmed at 'F3'

      -- Individual rating affirmed at 'B/C'

      -- National Long-term rating affirmed at 'AA+(bra)',
         Stable Outlook

      -- National Short-term rating affirmed at 'F1+(bra)'

      -- Support rating affirmed at '4'


BANCO NACIONAL: Allots BRL1 Million for Microcredit Operations
--------------------------------------------------------------
Banco Nacional do Desenvolvimento Economico e Social aka BNDES
approved a credit operation of BRL1 million to the Support
Center for Small Entrepreneurs of the State of Pernambuco.  This
is aimed at enabling new productive microcredit operations in 46
municipalities, of which 44, in Pernambuco, and two, in Bahia.  
It will benefit individual and legal entities that operate in
small-sized productive activities.

The total microcredit project amounts to BRL1.176 million and
Ceape will allocate BRL176,000 with its own resources.  
Throughout the next five years, with BNDES's financing and other
available resources, the institution intends to loan about
BRL98.4 million.

Considering that, for each BRL1,000 loaned, the institution's
average is a generation or maintenance of 0.12 jobs.  It is
expected that within five years, 11,800 jobs will be created.

Ceape is a non-profit institution, classified by the Ministry of
Justice as a "Civil Society Organizations for Public Interest",
which grants credit to microentrepreneurs, individual or legal
entities, in partnership with Sebrae, Federation of Industry and
Commerce of Pernambuco, Camara de Dirigentes Lojistas [Chamber
of Shopkeepers] and other entities.

The institution has been operating for 14 years with microcredit
directed to entrepreneurs of small-sized productive activities.  
During this term, it has carried out almost 120,000 credit
operations, which totaled roughly to BRL131.5 million.  It has
an active portfolio of BRL4.2 million, with 3,7000 active
clients.

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: Grants BRL570 Mil. to Sao Salvador Hydro Plant
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a BRL570 million financing to Companhia Energetica Sao
Salvador aka CESS for the construction of a hydroelectric plant
and transmission and subtransmission lines associated to the
National Interlinked System. The new plant will have 243.2-
megawatt installed capacity, an average of 148.5 MW of
guaranteed energy and will be built in Tocantins River.

Tractebel Energia SA will be responsible for the operation and
maintenance of the plant.  CESS is a Specific Purpose Enterprise
to build and operate the Sao Salvador plant, which is controlled
by Suez Energy South America Participacoes Ltda., a Brazilian
arm of the French-Belgium group Suez-Tractebel.

BNDES' share is equivalent to 67.25% of the project's total
investment, which is BRL847.7 million.  A portion of the funds
approved by the Bank -- BRL380,1 million -- will be handed over
through five financial agents:

   -- Unibanco,
   -- Bradesco,
   -- Itau BBA,
   -- Santander and
   -- Votorantim.

BNDES's direct share will be 22,42% of total investment
forecasted, contributing to a reduction in the Bank's direct
exposure to the sector, without restricting its sectoral
financing capacity.

During the plant construction, it is expected that the project
will generate 1,600 direct and 2,000 indirect jobs in civil
works and equipment assembling.  Other merits of the project are
the improvement in regional infrastructure and local labor
qualification.  In addition, the investments will include
programs of income generation and social insertion to the
population involved, with the consequent improvement in the
Human Development Index of neighbor municipalities.

Within the last four years, BNDES approved financings of BRL10
billion to 84 energy generation projects, equivalent to 11,600
MW and resulting in total investments of BRL23 billion.  For the
construction of 7,000 km transmission lines, the financing
approvals were BRL3.9 billion (BRL6.1 billion total investment)
and to the distribution sector the financings approved by the
Bank amounted to BRL2.6 billion, which accounted for investments
of BRL4.6 billion.  BNDES portfolio for the energy sector,
including operations not yet approved, amounts to financings of
BRL15.2 billion, equivalent to investments of BRL32 billion,
which will generate 15,000 MW.

Companhia Energetica Sao Salvador will make its energy available
to the National Interlinked System.  For purposes of trading
energy, the project has been qualified as an endeavor of
generating the so-called new energy.  Therefore, the energy
generated will be traded at the Regulated Trading Environment
through energy auctions promoted by Camara de Comercializacao de
Energia Eletrica.

At the third energy auction held in October 2006, CESS sold all
the energy guaranteed of average 148.5 MW at the price of
BRL135.01 MWh, and the delivery is forecasted to begin in 2011.  
Energy purchase and sell agreements in the regulated environment
are effective for 30 years.

Sao Salvador hydroelectric plant's reservoir will have a water
area of 104 km, with a length of about 80 km and a perimeter of
312 km.  The volume stored will not affect the river's
seasonality, that is, it will not be possible to change its dry
and flood flows.

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: Grants BRL1.53 Million Loan to Credimais
--------------------------------------------------------
Banco Nacional do Desenvolvimento Economico e Social aka BNDES
approved a credit operation to the Institution of Popular
Productive Credit, Credimais, for BRL1.53 million.  The project
aims to expand the productive microcredit supply in the
influence area of Rio Verde municipality located in the
southeast region of Goias.

The total microcredit project reaches BRL1.8 million and
Credimais will allocate BRL270,000 with its own resources, to
benefit individual and legal entities who operate in small-sized
productive activities.  With BNDES's financing, the institution
of the State of Goias, which also operates in the municipalities
of Montividiu and Santa Helena, wants to expand its activities
to other cities of the region, in partnership with city halls,
community associations, class entities and other public or
private bodies.

Credimais is a non-profit institution, classified by the
Ministry of Justice as a "Civil Society Organizations for Public
Interest".  Since its establishment in 1998, it has already
offered over 10,000 credits, operating a total superior to BRL16
million.  Currently, its active portfolio amounts BRL1.5
million, with roughly 600 clients.

Regarding the entrepreneurs's profile, the commerce is
responsible for 56% of microcredit operations, followed by the
service sector, which carried out 27% of the loans.  Almost the
totality of financings (93%) involves amounts inferior to
BRL5,000, although there are clients who carry out operations of
up to BRL20,000.

For each new microcredit operation, the institution forecasts a
creation or maintenance of one work post.  The current position
is of 5 thousand jobs already created or preserved by the
credits released in last eight years.  It is expected that 5,390
microcredit operations will be created and Credimais estimates
to generate 5,390 jobs in next four years with this project.

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/--


BRASIL TELECOM: Paying BRL228.1 Mil. Interest on Own Capital
------------------------------------------------------------
Brasil Telecom Participacoes SA's senior management deliberated,
following a delegation from the board of directors specified on
a meeting held on Dec. 14, 2006, the appropriation of Interest
on Own Capital in the amount of BRL228,100,000.00.  This
corresponds to a gross amount of BRL0.629261492 per one thousand
shares or an amount net of income tax of BRL0.534872268 per one
thousand shares, common and preferred.

Income tax of 15% will be withheld from the amount of Interest
on Own Capital, except for the shareholders proven to have
fiscal exemption or with differentiated taxation who prove such
condition.

The credit of Interest on Shareholders Equity, in the total
amount of BRL228,100,000.00, in the books of Brasil Telecom will
occur on Dec. 29, 2006.

As of Dec. 27, 2006, the company's shares will trade "Ex-
Interest on Own Capital," considering the shares deposited on
Dec. 26, 2006.

Legal persons that are exempted from the income tax or with
differentiated taxation, in compliance with the current law,
must prove this condition until Dec. 29, 2006, to the custodian
bank at:

          Banco ABN Amro Real SA
          Gerenciamento de Acionistas de Teceiros
          Avenida Brigadeitro Luiz Antonio, Bela Vista       
          Sao Paulo, Brazil


Date Of    Brazilian   Total           Gross Amt    Amt Net of
the        Ex-Date     Appropriated    Per 1,000    Income Tax  
Credit                 (R$)            Shares (R$)  Per 1,000
                                                    Shares  
06/30/2006 07/11/2006  185,300,000.00  0.511188752  0.434510439
12/29/2006 12/27/2006  228,100,000.00  0.629261492  0.534872268

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

                        *    *    *

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


BRASIL TELECOM: Will Extend Fixed Line Infrastructure Next Year
---------------------------------------------------------------
Brasil Telecom Participacoes said in a statement that beginning
Jan. 1, 2007, it will extend fixed line infrastructure to cities
with over 300,000 residents within its area of coverage.

Business News Americas relates that the installation of the
infrastructure is part of Aice, telecoms regulator Anatel's
universal access program aimed at providing fixed line services
to cities with over 300,000 inhabitants in January and cities
with over 100,000 in July.

According to BNamericas, Brasil Telecom operates in central and
southern Brazil.  Since June 2006, it has been deploying fixed
line telecom services for low-income families in cities with
over one million residents.

Preliminary data from Anatel indicated that mobile phone lines
in service increased 18% to 97.3 million in November 2006,
compared with 82.3 million in November 2005, Agencia Estado
notes.

Anatel disclosed net additions of 690,000 mobile phones in
November 2006, which was the lowest number for a single month
since January 2004, BNamericas states.

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

                        *    *    *

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


DURA AUTO: Wants to Enter Into Senior Executive Employment Pact
---------------------------------------------------------------
DURA Automotive Systems Inc. and its debtor affiliates seek
authority from the U.S. Bankruptcy Court for the District of
Delaware to enter into an employment agreement with a senior
executive who will report to their chief executive officer.

Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger,
P.A., in Wilmington, Delaware, relates that the Debtors have
discussed the need to retain the senior executive, and the
contemplated terms of employment with the ad hoc committee of
certain of the Prepetition Second Lien Lenders, and the Official
Committee of Unsecured Creditors.  The Debtors have also
discussed their request to employ a senior executive with the
U.S. Trustee.

Pursuant to Section 107(b) of the Bankruptcy Code, as amended,
and Rule 9018 of the Federal Rules of Bankruptcy Procedure, the
Debtors also ask Judge Carey to enter a protective order
authorizing them to file their Employment Agreement Motion and
related documents under seal.

Mr. DeFranceschi explains that the Employment Agreement Motion
and its exhibits contain confidential information that, if
revealed, could jeopardize the Debtors' ability to effectively
recruit and implement effective management -- a critical
component of their efforts to reorganize.

In addition, the Debtors ask the Court to set an expedited
hearing on their request to enter into the Employment Agreement.
Mr. DeFranceschi tells Judge Carey that the senior executive
will fill an unidentified void in Dura's senior management
structure, thereby materially assisting with ongoing
restructuring efforts.  

                      U.S. Trustee Objects To
                  Seal Motion & Motion to Shorten

Kelly Beaudin Stapleton, the United States Trustee for Region 3,
says, other than convenience and the Debtors' desire to control
the dissemination of information related to the timing of the
announcement of the hiring, there does not appear to be any
valid reason for the lack of disclosure.  In fact, she avers,
the Debtors most likely will disclose the information in a
future filing with the Securities and Exchange Commission or
otherwise.

The U.S. Trustee believes that the Seal Motion:

   (i) is not supported by the Bankruptcy Code and the Federal
       Rules of Bankruptcy Procedure; and

  (ii) violates the policy of public access to bankruptcy
       proceedings and records.

William K. Harrington, trial attorney at the Office of the U.S.
Trustee, notes, among others, In Nixon v. Warner Communications,
Inc., 435 U.S. 589, 591 (1978), the Supreme Court stated, "[i]t
is clear that the courts of this country recognize a general
right to inspect and copy public records and documents,
including judicial records and documents."

Mr. Harrington also notes, pursuant to Section 107(b) of the
Bankruptcy Code, "On request of a party in interest, the
bankruptcy court . . . may (1) protect an entity; with respect
to a trade secret or confidential research, development, or
commercial information; or (2) protect a person with respect to
scandalous or defamatory matter contained in a paper filed in a
case under this title."

In addition, Rule 9018 of the Federal Rules of Bankruptcy
Procedure provides, " . . . governmental matters that are made
confidential by statute or regulation" to the type of matters
subject to seal.

There is no showing that any of the information sought to be
protected falls within any of the enumerated categories under
Bankruptcy Rule 9018 and Section 107(b), Mr. Harrington points
out.

Mr. Harrington asserts that the entirety of the Employment
Agreement should not be sealed when a carefully circumscribed
redaction of the appropriate provisions of the Agreement may
protect the items falling within the purview of the applicable
Code Section or Rule.

The U.S. Trustee also opposes the Debtors' request to have their
Employment Motion heard on four days' notice.  Mr. Harrington
notes that (i) the Seal Motion and Motion are devoid of any
information necessary for the parties-in-interest to properly
evaluate the relief sought in the Employment Motion; and (ii)
the Debtors have provided no evidence that there is any critical
urgency to have their request heard on an expedited basis.

Accordingly, the U.S. Trustee insists that the Motion to Shorten
should be vacated so all parties-in-interest will have an
opportunity to properly digest the information contained in the
Debtors' request.

The U.S. Trustee is cognizant of the Debtors' need to
effectively recruit qualified individuals for their management
team and has no general objection to the Debtors' request to
hire a senior executive.  The U.S. Trustee, however, believes
that certain specific terms of the Employment Agreement run
afoul of the limitations provided for in Section 503(c)(1) and
(2) of the Bankruptcy Code.

While the U.S. Trustee has been provided copies of the
Employment Motion and the Employment Agreement, the Debtors
filed the documents under seal and provided the documents to the
U.S. Trustee on a confidential basis under Section 107(c).

The Court has not yet ruled on the seal issue.  Accordingly, in
lieu of filing her response under seal, the U.S. Trustee
reserves her right to raise substantive issues related to the
specific terms of the Employment Agreement at the hearing.

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

The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D.
Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M.
Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are
the Debtors' co-counsel.  Baker & McKenzie acts as the Debtors'
special counsel.  Togut, Segal & Segal LLP is the Debtors'
conflicts counsel.  Miller Buckfire & Co., LLC is the Debtors'
investment banker.  Glass & Associates Inc., gives financial
advice to the Debtor.  Kurtzman Carson Consultants LLC handles
the notice, claims and balloting for the Debtors and Brunswick
Group LLC acts as their Corporate Communications Consultants for
the Debtors.  As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total
liabilities.  (Dura Automotive Bankruptcy News, Issue No. 7;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Gets Final Nod to Pay Non-Debtor Affiliates
------------------------------------------------------------
DURA Automotive Systems Inc. and its debtor affiliates' request
to pay their prepetition payables to foreign non-debtor
affiliates were granted, on a final basis, by the Honorable
Kevin J. Carey of the United States Bankruptcy Court for the
District of Delaware.

The Debtors owed prepetition payables to the Foreign Non-Debtor
Affiliates of approximately US$625,000.  The Prepetition
Payables are the result of inter-company transactions made in
the ordinary course of business, including receipts from
customers accepted by the Debtors on behalf of Foreign Non-
Debtor Affiliates and payments for services rendered or products
supplied by the Foreign Non-Debtor Affiliates to the Debtors.

The Court also authorized the Debtors to loan estate property to
the foreign non-debtor affiliates provided that:

   (a) the amounts loaned will be recorded on the Debtors' books
       and records as loans; and

   (b) the Debtors will provide three business days' written
       notice to the U.S. Trustee and the Official Committee of
       Unsecured Creditors prior to transferring any funds to
       the Foreign Non-Debtor Affiliates.

The Court rules that the amounts recorded as loans should not,
at any time, exceed US$10,000,000 in aggregate amounts
outstanding.  The loan periods should not exceed 120 days.

Judge Carey directs the Debtors and their advisors to cooperate
with the Creditors Committee, the Committee of Second Lien
Lenders, and their advisors, to provide reasonable information
to assist with understanding the Foreign Non-Debtor Affiliates'
financial information and business plans.

The Debtors' equity interests in, and intercompany claims
against, the Foreign Non-Debtor Affiliates are some of the most
valuable assets of their estates, Daniel J. DeFranceschi, Esq.,
at Richards, Layton & Finger, P.A., in Wilmington, Delaware,
related.  The Debtors project the Foreign Non-Debtor Affiliates'
aggregate 2006 EBITDA will be approximately US$81,000,000.

Due to country-specific restrictions and procedures, the Foreign
Non-Debtor Affiliates may be unable to transfer funds, including
where short-term financing is required by a Foreign Non-Debtor
Affiliate, between and amongst themselves on a timely basis or
upon short notice.  "If one or more of those Foreign Non-Debtor
Affiliates does not receive required short-term financing on a
timely basis from either the Debtors or other Foreign Non-Debtor
Affiliates, it could become subject to foreign insolvency
proceedings, thereby endangering the Debtors' valuable equity
interests in the Foreign Non-Debtor Affiliates," Mr.
DeFranceschi said.

Without that short-term financing, especially in the event of
foreign insolvency proceedings, Mr. DeFranceschi says, the
Foreign Non-Debtor Affiliates could be unable to satisfy their
commitments to existing original equipment manufacturers and
first-tier supplier customers.  "Any such inability would, aside
from endangering the value of the Debtors' equity interests in
the Foreign Non-Debtor Affiliates, jeopardize the Debtors'
relationships with OEMs and first-tier supplier customers
worldwide."

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

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


DURA AUTOMOTIVE: Ch. 11 Filing Cues Moody's to Withdraw Ratings
---------------------------------------------------------------
Moody's Investors Service withdrew the ratings for of Dura
Automotive Systems, Inc. and Dura Operating Corp. in conjunction
with the company and its U.S. and Canadian subsidiaries having
filed for Chapter 11 protection of the U.S Bankruptcy Code on
Oct. 30, 2006.

Moody's has withdrawn the rating because the issuer has entered
bankruptcy.

Ratings withdrawn:

   * Dura Automotive Systems, Inc.

      -- Corporate Family Rating, Ca; and,
      -- Probability-of-Default, D.

Outlook is Stable.

SGL-4 Speculative Grade Liquidity Rating.

   * Dura Operating Corp.

      -- US$150 million guaranteed senior secured second-lien
         term loan due 2011, Caa2, LGD2, 23%;

      -- US$75 million guaranteed senior secured second-lien
         add-on term loan due 2011, Caa2, LGD2, 23%;

      -- US$400 million of 8.625% guaranteed senior unsecured
         notes due 2012, Ca , LGD4, 52%;

      -- US$456 million of 9% guaranteed senior subordinated
         notes due 2009, C, LGD5, 89%;

      -- EUR100 million of 9% guaranteed senior subordinated
         notes due 2009, C, LGD5, 89%.

Outlook is Stable.

   * Dura Automotive Systems Capital Trust

      -- US$55.25 million of 7.5% convertible trust preferred
         securities due 2028, C, LGD6, 98%

Outlook is Stable.

Dura Automotive's US$175 million guaranteed senior secured
first-lien asset-based revolving credit is not rated by Moody's.

The last rating action was on Oct. 18, 2006, when the ratings
were lowered.

Dura Automotive, headquartered in Rochester Hills, Michigan,
designs and manufactures components and systems primarily for
the global automotive industry including driver control systems,
structural door modules, glass systems, seating control systems,
exterior trim systems, and mobile products.  Annual revenues
approximate US$2.2 billion.


JABIL CIRCUIT: Posts US$3.2B Net Revenue for Qtr. Ended Nov. 30
---------------------------------------------------------------
Jabil Circuit, Inc., reported that unaudited net revenue for the
first quarter of fiscal 2007 ended Nov. 30, 2006, increased 34%
to US$3.2 billion compared with US$2.4 billion for the same
period of fiscal 2006.

            Fiscal First Quarter 2007 details

   * Sales cycle for the quarter was 23 days;

   * Annualized inventory turns for the quarter were eight
     turns;

   * First quarter capital expenditures were approximately
     US$72 million.

   * Cash and cash equivalent balances were US$658 million at
     the end of the first quarter; and

   * A US$0.07 quarterly dividend was paid on Dec. 1, 2006.

                    Restructuring Update

Jabil previously announced realignment of manufacturing capacity
and estimated the associated costs to be in a range of US$200 to
US$250 million.  The cash cost of these charges is estimated to
be in a range of US$150 to US$200 million over the next two
fiscal years.  Discussions with impacted employees and their
representatives are underway and the company is complying with
all required statutory and consultation periods.

                      Capacity Update

Jabil previously announced that the company will be constructing
new sites in Poland, the Ukraine and India during fiscal 2007.  
Capital expenditures are expected to be in the range of US$200
to US$250 million for fiscal year 2007.

                     Acquisition Update

Shareholders controlling over 50% of Taiwan Green Point have
tendered their shares and Jabil expects the acquisition to be
completed during the company's second or third fiscal quarter,
depending upon the timing of government approvals.

                      Guidance Update

The company said it expects revenue growth of approximately 20%
for fiscal 2007 and provided revenue guidance of US$2.75 to
US$2.85 billion for its second fiscal quarter.

                       Other Matters

As previously disclosed, Jabil is involved in several lawsuits
and has received inquiries from the government in connection
with certain historical stock option grants.  Jabil previously
announced that it had concluded that it would need to restate at
least its 2005 financial statements and related disclosures, and
that it had not conclusively determined if financial statements
for other time periods might need to be restated nor the exact
amount of required restatements.

A Special Review Committee of Jabil's Board of Directors was
appointed to review the allegations in certain of the derivative
lawsuits filed.  The Special Review Committee has largely
completed that review and authorized Jabil to announce that the
Special Review Committee had concluded that there was no merit
to the allegations in the State Court derivative complaints that
Jabil's officers issued themselves backdated stock options or
attempted to cause others to issue them.

Jabil also disclosed on Dec. 8, 2006, that its review of its
historical stock option practices and the related accounting was
ongoing and that Jabil's Audit Committee was reviewing unrelated
matters.  As a result of information revealed in these reviews,
Jabil's Audit Committee has determined that it will review, with
the assistance of independent legal counsel, the recognition of
certain revenue by Jabil in the fourth quarter of fiscal year
1999 and the third quarter of fiscal year 2001.  At this stage
of the Audit Committee's review of these additional matters, it
is not yet in a position to reach any conclusions.  The Audit
Committee will continue to evaluate the company's historical
recognition of revenue in a manner and for such periods as it
determines may be appropriate.  Jabil will not be in a position
to determine the timing of the filing of its 2006 Form 10-K
until the evaluation of its historical financial statements has
been completed and its independent registered public accounting
firm is able to complete its audit of the financial statements
to be included in such Form 10-K.  Jabil does not anticipate
having any additional comment on these topics until it makes its
next filing with the SEC.

Jabil Circuit, Inc. (NYSE:JBL) -- http://www.jabil.com/-- is an  
electronic product solutions company providing comprehensive
electronics design, manufacturing and product management
services to global electronics and technology companies.  Jabil
Circuit has more than 50,000 employees and facilities in 20
countries, including Brazil, Mexico, Europe and Asia.

                        *    *    *

Standard & Poor's Ratings Services placed a BB+ preliminary
rating on Jabil Circuit's US$1.5 billion senior and subordinated
debts on Aug. 19, 2005.


PETROLEO BRASILEIRO: Output Drops to 1.94MM Barrels in November
---------------------------------------------------------------
Petroleo Brasileiro SA, the state-owned oil firm of Brazil, said
in a statement that its domestic and international output has
decreased 0.89% to 1.94 million barrels per day in November
2006, compared with 1.96 million barrels per day in October
2006.

Business News Americas relates that Petroleo Brasileiro's
domestic production declined 0.4% to 1.81 million barrels per
day in November 2006 from 1.82 million barrels per day in
October 2006.  Meanwhile, international output in eight nations
decreased 6.5% to 128,700 barrels per day, compared with 137,700
barrels per day.

According to BNamericas, Petroleo Brasileiro's domestic
production increased 4.6% while its international output
declined 19% in November 2006, compared with November 2005.

The report says that Petroleo Brasileiro's production in the
first 11 months of this year increased 3.8% to 1.92 million
barrels per day, from 1.85 million barrels per day in the whole
of 2005.

BNamericas underscores that including natural gas output,
Petroleo Brasileiro's domestic and international production
decreased 0.8% to 2.32 million barrels oil equivalent per day in
November 2006, compared with 2.34 million barrels oil equivalent
per day in October 2006.

Petroleo Brasileiro told BNamericas that its daily output in the
first 11 months of 2006 increased 3.5% to 2.29 million barrels
oil equivalent per day, compared with 2.22 million barrels oil
equivalent per day for the rest of 2005.

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.

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: Renegotiating Gas Export Price to Cuiaba
-------------------------------------------------------------
Officials of Petroleo Brasileiro, the state-run oil company of
Brazil, will be joining a meeting with representatives of the
Bolivian government and their Brazilian counterparts to
renegotiate the gas export price to Cuiaba in Mato Grosso,
Brazil, Business News Americas reports.

According to Agencia Boliviana de Informacion, Cuiaba is home to
the 480-megawatt Cuiaba combined cycle power plant, in which
Anglo-Dutch firm Shell and US energy company Prisma Energy hold
stakes.  The city receives 1.2 million cubic meters per day of
natural gas at a price of US$1.09 per million British thermal
unit.

Prisma said on its Web site that the Cuiaba plant receives its
gas from a 630-kilometer pipeline branching off from the 3,000-
kilometer Bolivia-Brasil gas pipeline.

BNamericas relates that the representatives will meet in Santa
Cruz, Bolivia, along with officials from:  

          -- Bolivian state oil Yacimientos Petroliferos
             Fiscales Bolivianos,

          -- Shell, and

          -- Prisma Energy.

Brazil and Bolivia have been trying to reach an agreement on a
new gas export price.  Bolivia wants to raise the price to some
US$5 per million British thermal unit, which is the same price
it renegotiated with Argentina.

In the meeting held in Brasilia, Silas Rondeau -- Brazil's
energy mines minister -- said that the Brazilian government has
decided not to take the matter to court, BNamericas notes.

Carlos Villegas, the Bolivian hydrocarbons minister, told
Agencia Boliviana that Brazil and Bolivian would continue
negotiations in the second half of January 2007 for his
country's purchase of a majority participation in the Gualberto
Villarroel and Guillermo Elder refineries from Petroleo
Brasileiro.

BNamericas states that Yacimientos Petroliferos and Petroleo
Brasileiro want to discuss joint projects including:

          -- industrialization of Bolivian gas,

          -- a gas chemical hub,

          -- the installation of a thermoelectric plant in San
             Ignacio,

          -- analyses of biofuels programs, and

          -- technical cooperation between both ministries.

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.

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: Confirms Purchase Talks in Okinawa Refinery
----------------------------------------------------------------
Almir Barbassa, Petroleo Brasileiro SA's chief financial
officer, confirmed to MarketWatch that the firm is negotiating
to purchase a stake in Nansei Sekiyu KK -- a refinery in
Okinawa, Japan.

"We have staff there talking to them," Mr. Barbassa told Dow
Jones Newswires.

Nansei Sekiyu has a capacity of 100,000 barrels per day and is
87.5% owned by Exxon Mobil Corp. through its Japanese unit
TonenGeneral Sekiyu KK.  Sumitomo Corp. holds the remaining
stake.

Petroleo Brasileiro could reach a deal for Nansei Sekiyu in one
or two months, MarketWatch says, citing Mr. Barbassa.

Mr. Barbassa told MarketWatch, "In any case, we will have a
decision during 2007."

Petroleo Brasileiro would seek to upgrade Nansei Sekiyu to
refine heavy Brazilian crude and boost its production capacity,
MarketWatch relates, citing Mr. Barbassa.

According to MarketWatch, Petroleo Brasileiro is trying to
acquire more refining capacity outside Brazil to add value to
its exports and to be able to sell refined products instead of
crude oil.  Most Brazilian oil is very heavy and sells at a
considerable discount to lighter varieties.  Nansei Sekiyu could
serve as a base to export refined products to several Asian
nations.

Mr. Barbassa told MarketWatch, "Okinawa is an export hub.  From
there, you can export to several countries such as China or
South Korea."

Petroleo Brasileiro is negotiating to buy refinery stakes in
several countries.  It could purchase into more than one
overseas refinery, MarketWatch notes, citing Mr. Barbassa.  
However, the firm is mainly considering smaller plants that
could cost it up to US$2 billion.

Mr. Barbassa denied to MarketWatch that Petroleo Brasileiro is
seeking to purchase a refinery in China.  However, he said that
the company seeks to transfer technology to refine heavy
Brazilian crude to Chinese firms to boost its export chances.

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.

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.


SENSATA TECH: Completes Purchase of Honeywell's FTAS Business
-------------------------------------------------------------
Sensata Technologies B.V. has closed the acquisition of
Honeywell's First Technology Automotive and Special Products or
FTAS business.

Concurrently, Sensata completed a EUR73 million financing in
support of the transaction through an incremental facility under
its existing Credit Agreement.  Terms were in line with the
original issuance.

FTAS designs, develops and manufactures high-value automotive
sensor and electromechanical control solutions.  Its products
are sold to automotive OEMs, Tier I automotive suppliers, large
vehicle and off-road OEMs, and industrial manufacturers.  For
the year ended Dec. 31, 2005, FTAS had sales of approximately
US$69 million.

"We are pleased to have completed the divestiture of both non-
core First Technology businesses in 2006," said Dave Cote,
Honeywell Chairman and CEO.  "With the sale of FTAS today and
First Technology Safety and Analysis earlier this year, we have
finalized acquisition of the First Technology Gas Sensing
business at an attractive valuation in an industry with great
growth prospects.  We continue to execute on integrating the
business into Honeywell Analytics and establishing our position
as a world leader in gas detection technologies."

FTAS was acquired by Honeywell as part of its acquisition of
First Technology plc earlier this year.  Honeywell completed its
acquisition of First Technology plc on March 24, and the sale of
First Technology Safety and Analysis on May 19.

Formerly the Sensors & Controls business of Texas Instruments,
Sensata Technologies was acquired by Bain Capital, LLC, a
leading global private investment firm, in April, 2006.  Sensata
is a leading designer and manufacturer of sensors and controls
for global leaders in the automotive, appliance, aircraft,
industrial and HVAC markets.  It has nine technology and
manufacturing centers in eight countries, and sales offices
throughout the world.  Revenues for 2005 were approximately
US$1.1 billion.

                       About Honeywell

Honeywell International is a US$31 billion diversified
technology and manufacturing leader, serving customers worldwide
with aerospace products and services; control technologies for
buildings, homes and industry; automotive products;
turbochargers; and specialty materials. Based in Morris
Township, N.J., Honeywell's shares are traded on the New York,
London, Chicago and Pacific Stock Exchanges.

                 About Sensata Technologies

Sensata designs and manufactures sensors and electrical and
electronic controls and has business and technology development
centers in Attleboro, Massachusetts, Holland and Japan and
manufacturing operations in Brazil, China, Korea, Malaysia, and
Mexico, as well as sales offices around the world.  Revenues for
the trailing twelve months ended June 30, 2006, were
approximately US$1.1 billion.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 13, 2006,
Moody's Investors Service affirmed Sensata Technologies B.V.'s
B2 corporate family and probability of default ratings.

Moody's rating affirmation pertains to Sensata's pending
acquisition of First Technology Automotive and Special Products
from Honeywell and its subsequent financing via a US$95 million
add-on to Sensata's existing senior secured Term Loan B.


TIMKEN CO: Sells Automotive Steering Biz to DriveSol Worldwide
--------------------------------------------------------------
The Timken Company has completed the sale of its automotive
steering business, which operates facilities in Watertown,
Connecticut, and Nova Friburgo, Brazil, to DriveSol Worldwide,
Inc.  The terms of the sale were not disclosed.

"The sale of this business, which has not been profitable in
recent quarters, is part of the structural changes we are
pursuing to improve our ability to create shareholder value,"
said Timken President and Chief Executive Officer James W.
Griffith.

The steering business employs approximately 600 people at the
Watertown plant and about 300 people in Brazil and had 2005
sales of US$110 million.

DriveSol, which is an affiliate of Sun Capital Partners, Inc.,
will continue to manufacture steering tilt shafts, intermediate
shafts and steering components at the Watertown plant and
steering columns at the Nova Friburgo plant.  The products at
both facilities are focused on tube forming, coating, painting
and precision assembly.

"As a result of our focus on driving innovation in the core
areas of friction management and power transmission, we have
decided to exit this non-strategic business," said Jacqueline A.
Dedo, president of Timken's Automotive Group.  "In addition to
our previously announced restructuring programs, we are
continuing to examine and implement further actions to improve
financial performance in our Automotive Group."

The Blackstone Group advised Timken on this transaction.

                   About The Timken Company

Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR)
-- http://www.timken.com/-- manufactures highly engineered   
bearings and alloy steels.  It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial, and railroad industries.  The Company has
operations in 27 countries, including Brazil, and employs 27,000
employees.

                          *     *     *

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


* BRAZIL: Market for Plastics in Food & Beverage Packaging Grows
----------------------------------------------------------------
Consumers, producers, and distributors in the Brazilian and
Mexican food and beverage packaging market are increasingly
opting for plastics.  Plastic's appeal mainly stems from its
ability to increase shelf life of packaged food and offer cost
savings on transport due to its lightweight.

New analysis from Frost & Sullivan (http://www.food.frost.com),  
Brazilian and Mexican Markets for Plastics in Food and Beverage
Packaging, reveals that the market earned revenues of US$5.27
billion in 2005 and estimates this to reach US$7.22 billion in
2012.

Plastic is steadily replacing traditional food packaging
materials such as glass, metal, paper and board, yielding
substantial revenues across various segments.  It is
outstripping competition through its inherent features of being
shatterproof and providing transparency for inspection of
contents, besides the sheer convenience and portability of the
packaging.

These benefits of plastic packaging are creating growth
opportunities in the high-growth mineral and flavored water
segment, the export segment for fruits and vegetables, as well
as the ready-to-eat food segment in the Brazilian and Mexican
markets.  To leverage this demand, industry participants are
deploying advanced packaging technologies.

"One such technology is modified atmospheric packaging," say
Frost & Sullivan Research Analyst Tamara Dvoskin.  "It helps in
preserving the original composition of food by eliminating the
need for chemical additives."

Another recent and notable advancement is coextrusion
technology.  This invention enables plastic processors to
produce multi-layer films, which provide optimum film
performance for various new applications in the food packaging
market.

Meanwhile, the novel 'intelligent packaging' system, which
offers auto cooling or auto heating features, helps deliver food
products at proper temperatures.  Such technological advances
also enable faster filing rates and packaging of hot foodstuff,
giving plastic a competitive edge over traditional packaging
materials.

Another concern for manufacturers are the newly developed
superior plastics, which diminish the gauge of plastic films and
plastic weight.

"This down gauging of plastic films implies a significant
reduction in plastic consumption and is a restraint to the
growth of packaging markets," notes Ms. Dvoskin.

To overcome these challenges in a price-sensitive market,
packaging manufacturers need to reframe growth strategies.

"While collaboration with suppliers of core raw materials such
as resin can help hedge the risk of price fluctuations,
strategic innovations can ensure entry into newer segments,"
concludes Frost & Sullivan Research Analyst Victoria Verdier.  
"Moreover, establishing manufacturing agreements with food
companies would prove to be a tactical move to sustain high
returns for market participants."

Frost & Sullivan, a global growth consulting company, has been
partnering with clients to support the development of innovative
strategies for more than 40 years.  The company's industry
expertise integrates growth consulting, growth partnership
services, and corporate management training to identify and
develop opportunities. Frost & Sullivan serves an extensive
clientele that includes Global 1000 companies, emerging
companies, and the investment community by providing
comprehensive industry coverage that reflects a unique global
perspective and combines ongoing analysis of markets,
technologies, econometrics, and demographics.

                        *    *    *

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
===========================


4711 LIMITED: Shareholders to Convene for Dec. 28 Final Meeting
---------------------------------------------------------------
Eastern Investments (Cayman) Ltd.'s final shareholders meeting
will be on Dec. 28, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


ACOS ARBITRAGE: Proofs of Claim Filing Is Until Dec. 27
-------------------------------------------------------
Acos Arbitrage Fund, Ltd's creditors are required to submit
proofs of claim by Dec. 27, 2006, to the company's liquidators:

          dms Corporate Services, Ltd.
          20 Genesis Close, Second Floor Ansbacher House
          P.O. Box 31910 SMB, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Acos Arbitrage's shareholders agreed on Nov. 15, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Angela Nightangle
          Ansbacher House
          P.O. Box 31910 SMB
          Grand Cayman, Cayman Islands
          Tel: (345) 946 7665
          Fax: (345) 946 7666


ACOS ARBITRAGE MASTER: Proofs of Claim Filing Is Until Dec. 27
--------------------------------------------------------------
Acos Arbitrage Master Fund, Ltd.'s creditors are required to
submit proofs of claim by Dec. 27, 2006, to the company's
liquidator:

          dms Corporate Services, Ltd.
          20 Genesis Close, Second Floor Ansbacher House
          P.O. Box 31910 SMB, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Acos Arbitrage Master's shareholders agreed on Nov. 15, 2006,
for the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Angela Nightangle
          Ansbacher House
          P.O. Box 31910 SMB
          Grand Cayman, Cayman Islands
          Tel: (345) 946 7665
          Fax: (345) 946 7666


AMERICAN EGALE: Shareholders to Gather for Dec. 28 Final Meeting
----------------------------------------------------------------
American Egale Co. Ltd.'s final shareholders meeting will be at
10:00 a.m. on Dec. 28, 2006, at:

          1818 Market Street
          Philadelphia, PA 19103, USA

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Scott Fast
          American Egale Co. Ltd.
          c/o Day & Zimmermann
          1818 Market Street
          Philadelphia, PA 19103, USA
          Tel: 215-299-2371
          Fax: 215-299-2400


ASSET TRUST: Proofs of Claim Filing Deadline Is on Dec. 27
----------------------------------------------------------
Asset Trust's creditors are required to submit proofs of claim
by Dec. 27, 2006, to the company's liquidators:

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

Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Asset Trust's shareholders agreed on Nov. 15, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


BEACH DISCRETIONARY: Final Shareholders Meeting Is on Dec. 28
-------------------------------------------------------------
Beach Discretionary Fund (Cayman SPC) Ltd.'s final shareholders
meeting will be at 2:30 p.m. on Dec. 28, 2006, at the company's
registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Lawrence Edwards
          Attn: Jyoti Choi
          P.O. Box 258, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914 8657
          Fax: (345) 945 4237


BEACH FUND: Invites Shareholders for Final Meeting on Dec. 28
-------------------------------------------------------------
The Beach Fund (Cayman SPC) Ltd.'s final shareholders meeting
will be at 2:00 p.m. on Dec. 28, 2006, at the company's
registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Lawrence Edwards
          Attn: Jyoti Choi
          P.O. Box 258, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914 8657
          Fax: (345) 945 4237


BEACH SYSTEMATIC: Calls Shareholders for Dec. 28 Final Meeting
--------------------------------------------------------------
Beach Systematic Fund (Cayman SPC) Ltd.'s final shareholders
meeting will be at 2:15 p.m. on Dec. 28, 2006, at the company's
registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Lawrence Edwards
          Attn: Jyoti Choi
          P.O. Box 258, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914 8657
          Fax: (345) 945 4237


BROWN SIMPSON: Creditors Must File Proofs of Claim by Dec. 27
-------------------------------------------------------------
Brown Simpson Partners I, Ltd.'s creditors are required to
submit proofs of claim by Dec. 27, 2006, to the company's
liquidators:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited
          Walker House, 87 Mary Street, George Town
          Grand Cayman KY1-9002, Cayman Islands
          
Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Brown Sinmpson's shareholders agreed on Nov. 9, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


BROWN SIMPSON STRATEGIC: Filing of Proofs of Claim Ends Dec. 27
---------------------------------------------------------------
Brown Simpson Strategic Growth Fund, Ltd.'s creditors are
required to submit proofs of claim by Dec. 27, 2006, to the
company's liquidators:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited
          Walker House, 87 Mary Street, George Town,
          Grand Cayman KY1-9002, Cayman Islands,
           
Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Brown Simpson's shareholders agreed on Nov. 9, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


DE CAPITAL: Last Day for Proofs of Claim Filing Is on Dec. 27
-------------------------------------------------------------
De Capital International Fund's creditors are required to submit
proofs of claim by Dec. 27, 2006, to the company's liquidators:

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


Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

De Capital International's shareholders agreed on August 29,
2006, for the company's voluntary liquidation under Section 135
of the Companies Law (2004 Revision) of the Cayman Islands.


DE CAPITAL GENERAL: Proofs of Claim Must be Submitted by Dec. 27
----------------------------------------------------------------
De Capital General Partner,Ltd.'s creditors are required to
submit proofs of claim by Dec. 27, 2006, to the company's
liquidators:

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

Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

De Capital General's shareholders agreed on Aug. 29, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


DE CAPITAL INT'L: Proofs of Claim Filing Deadline Is Dec. 27
------------------------------------------------------------
De Capital International Master Fund's creditors are required to
submit proofs of claim by Dec. 27, 2006, to the company's
liquidators:

          Mark Wanless
          Steven Wilderspin
          Maples Finance Jersey Limited
          2nd FloorLe Masurier House
          La Rue Le Masurier
          St. Helier, Jersey JE2 4YE

Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

De Capital International's shareholders agreed on Aug. 29, 2006,
for the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


DISTRESSED RECOVERY: Proofs of Claim Must be Filed by Dec. 27
-------------------------------------------------------------
Distressed Recovery Fund, Ltd.'s creditors are required to
submit proofs of claim by Dec. 27, 2006, to the company's
liquidators:

          Lyster Watson Management, Inc.
          888 Seventh Avenue, 40th Floor
          New York, N.Y. 10019
          United States of America

Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Quin & Hampson
          P.O. Box 1348
          Grand Cayman, Cayman Islands
          Tel: (+1) 345 949 4123
          Fax: (+1) 345 949 4647


DISTRESSED RECOVERY MASTER: Proofs of Claim Filing Ends Dec. 27
---------------------------------------------------------------
Distressed Recovery Master Fund, Ltd.'s creditors are required
to submit proofs of claim by Dec. 27, 2006, to the company's
liquidator:

          Lyster Watson Management, Inc.
          888 Seventh Avenue, 40th Floor
          New York, N.Y.10019
          United States of America
          
Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Quin & Hampson
          c/o P.O. Box 1348
          Grand Cayman, Cayman Islands
          Tel: (+1) 345 949 4123
          Fax: (+1) 345 949 4647


EASTERN INVESTMENTS: Final Shareholders Meeting Is on Dec. 28
-------------------------------------------------------------
Eastern Investments (Cayman) Ltd.'s final shareholders meeting
will be on Dec. 28, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


FIRST QUADRANT: Creditors Must File Proofs of Claim by Dec. 27
--------------------------------------------------------------
First Quadrant Premier U.S Market Neutral Equity Funds, Ltd.'s
creditors are required to submit proofs of claim by
Dec. 27, 2006, to the company's liquidator:

          Q&H Nominees Ltd.
          Third Floor, Harbour Centre
          P.O. Box 1348
          Grand Cayman, Cayman Island
          
Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

First Quadrant's shareholders agreed on Oct. 4, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Quin & Hampson
          c/o P.O. Box 1348
          Grand Cayman, Cayman Islands
          Tel: (+1) 345 949 4123
          Fax: (+1) 345 949 4647


FRUSTRATED LTD: Shareholders Final Meeting Is Set for Dec. 28
-------------------------------------------------------------
Frustrated Ltd.'s final shareholders meeting will be at 9:00
a.m. on Dec. 28, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          C.I. Directors Ltd.
          P.O. Box 1110, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 7212
          Fax: (345) 949 0993


HALIOTIS LTD: Final Shareholders Meeting Is Set for Dec. 28
-----------------------------------------------------------
Haliotis Ltd.'s final shareholders meeting will be at 9:00 a.m.
on Dec. 28, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          C.I. Directors Ltd.
          P.O. Box 1110, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 949 7212
          Fax: (345) 949 0993


INFORMATION SECURITY: Proofs of Claim Filing Is Until Dec. 27
-------------------------------------------------------------
Information Security One, Ltd.'s creditors are required to
submit proofs of claim by Dec. 27, 2006, to the company's
liquidators:

          Simon Whicker
          KPMG P.O. Box 493
          Grand Cayman, Cayman Islands

            -- and --

          Edward Middleton
          Jacky Muk
          KPMG 27th Floor, Alexandra House
          18 Chater Road, Central, Hong Kong

Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Information Security's shareholders agreed on Nov. 8, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

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


JOFI NISHI-SHINJUKU: Last Day to File Proofs of Claim Is Dec. 27
----------------------------------------------------------------
Jofi Nishi-Shinjuku Holding, Ltd.'s creditors are required to
submit proofs of claim by Dec. 27, 2006, to the company's
liquidators:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited
          Walker House, 87 Mary Street, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Dec. 27deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


JOFI OTSUKA: Deadline for Proofs of Claim Filing Is on Dec. 27
--------------------------------------------------------------
Jofi Otsuka Holding, Ltd's creditors are required to submit
proofs of claim by Dec. 27, 2006, to the company's liquidators:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited
          Walker House, 87 Mary Street, George Town
          Grand Cayman, Cayman Islands

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

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


JOFI YOKOHAMA: Deadline for Filing of Proofs of Claim Is Dec. 27
----------------------------------------------------------------
Jofi Yokohama-Nishiguchi's creditors are required to submit
proofs of claim by Dec. 27, 2006, to the company's liquidators:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited
          Walker House, 87 Mary Street, George Town
          Grand Cayman, Cayman Islands
          
Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


MOUNTCASHEL FUND: Crediotrs Must File Proofs of Claim by Dec. 27
----------------------------------------------------------------
Mouncashel Fund's creditors are required to submit proofs of
claim by Dec. 27, 2006, to the company's liquidators:

          Linburgh Martin
          John Sutlic
          P.O. Box 1034, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

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


POWER FUNDING: Deadline for Filing of Proofs of Claim Is Dec. 27
----------------------------------------------------------------
Power Funding (Cayman Islands), Ltd.'s creditors are required to
submit proofs of claim by Dec. 27, 2006, to the company's
liquidators:

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

Creditors who are not able to comply with the Dec. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Power Funding's shareholders agreed on Nov. 15, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.


P.T. COMPANY: Liquidator to Present Wind Up Accounts on Dec. 28
---------------------------------------------------------------
P.T. Company Ltd.'s final shareholders meeting will be on
Dec. 28, 2006, at the company's registered office.

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


VIVACE TWO: Shareholders to Convene for Final Meeting on Dec. 28
----------------------------------------------------------------
Vivace Two Ltd.'s final shareholders meeting will be on
Dec. 28, 2006, at:

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

These agendas will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


XMARK FUND: Creditors Have Until Dec. 27 to File Proofs of Claim
----------------------------------------------------------------
Xmark Fund, Ltd.'s creditors are required to submit proofs of
claim by Dec. 27, 2006, to the company's liquidators:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited
          Walker House, 87 Mary Street, George Town
          Grand Cayman, Cayman Islands

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

Xmark Fund's shareholders agreed on Nov. 9, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.




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


ARAMARK INC: Shareholders Approve Investors' Buyout of Firm
-----------------------------------------------------------
ARAMARK Corp. voted at a special meeting to adopt the merger
agreement entered into on Aug. 8, 2006, providing for the
acquisition of ARAMARK by an investor group led by Joseph
Neubauer and investment funds managed by GS Capital Partners,
CCMP Capital Advisors and J.P. Morgan Partners, Thomas H. Lee
Partners and Warburg Pincus LLC.

Adoption of the merger agreement was subject to two votes.  
Under Delaware law, the merger agreement was required to be
adopted by shareholders holding at least a majority in combined
voting power of the company's common stock outstanding on the
record date of Nov. 3, 2006.  In addition to the vote required
under Delaware law, the transaction was required to be approved
by a majority of the combined voting power of the company's
common stock voted at the special meeting.  For purposes of the
second vote, each share of Class A common stock beneficially
owned by Mr. Neubauer and other members of the company's
management committee was counted as only one vote, rather than
the ten votes to which each such share is otherwise entitled.

Based on the preliminary tally of shares voted, for purposes of
the vote required under Delaware law, 606 million votes were
cast at the special meeting, representing 88% of the total
voting power of ARAMARK's outstanding voting shares.  Of those
votes cast, 592 million votes were cast in favor of the adoption
of the merger agreement, representing 86% of the total voting
power of ARAMARK's outstanding voting shares and 97% of the
votes cast.  For the purposes of the second vote, 375 million
votes were cast at the special meeting.  Of those votes cast,
360 million votes were cast in favor of the adoption of the
merger agreement, representing 96 percent of the total votes
cast at the meeting.

Under the terms of the merger agreement, ARAMARK shareholders
will receive US$33.80 in cash for each share of ARAMARK common
stock held. Subject to the satisfaction of customary closing
conditions, the transaction is anticipated to close at the end
of January 2007.

Headquartered in Philadelphia, ARAMARK Corp. --
http://www.aramark.com/-- is a leader in professional services,
providing food services, facilities management, and uniform and
career apparel to health care institutions, universities and
school districts, stadiums and arenas, and businesses around the
world.  It has approximately 240,000 employees serving clients
in 20 countries, including Mexico, Brazil and Chile.

                        *    *    *

Standard & Poor's Ratings Services lowered on Aug. 8, 2006, its
ratings on Philadelphia-based ARAMARK Corp. and its subsidiary,
ARAMARK Services Inc., including its corporate credit rating to
'BB+' from 'BBB-'.

Fitch downgraded on Aug. 8, 2006, the Issuer Default Rating
and senior unsecured debt ratings for both ARAMARK Corporation
and its wholly owned subsidiary, ARAMARK Services, Inc., to
'BB-' from 'BBB'.  The ratings remain on Rating Watch Negative.

Moody's Investors Service downgraded on Sept. 20, 2006, the 5%
senior notes due 2012 of ARAMARK Services, Inc., to B2 from
Baa3, confirmed the Baa3 ratings on the senior notes due 2007
and 2008, and assigned a corporate family rating of Ba3 to
ARAMARK Corp., ARAMARK Services' holding company parent.  The B2
rating on the 5% senior notes due 2012 and the Ba3 corporate
family rating are under review for possible downgrade.


QUEBECOR WORLD: Completes Equipment Lease Financing
---------------------------------------------------
Quebecor World Inc. has entered into a long term equipment lease
financing transaction with various financial institutions to
fund approximately US$86 million of state-of-the-art equipment
currently being installed in the company's US platform to better
serve its customers.  The new lease agreement allows the company
to further diversify its funding sources.  The proceeds from the
financing will serve to reduce indebtedness.

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

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 14, 2006,
Standard & Poor's Ratings Services assigned its 'B+' long-term
debt rating to Quebecor World Inc.'s proposed US$400 million
senior unsecured notes due 2015.  At the same time, Standard &
Poor's affirmed all other ratings, including the 'B+' long-term
corporate credit rating, on the company.  The proceeds of the
new notes will be largely used to refinance existing debt.  S&P
said the outlook is negative.




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


ECOPETROL: Planning Exploration Work in Indigenous Lands
--------------------------------------------------------
A spokesperson of Ecopetrol, the state-run oil company of
Colombia, told Business News Americas that the firm will conduct
exploration and production work in Boyaca and Norte de Santander
departments, which belong to the U'wa natives.

According to BNamericas, work would begin with a seismic data
program starting in the first half of 2008.

An Ecopetrol spokesperson told BNamericas that a study of
environmental handling must first take place before seismic work
starts.

The U'wa have been against oil exploration and production
activities on their land, El Tiempo states.

Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government.  The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products.  Ecopetrol is Latin America's
fourth-largest integrated-oil concern.  Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas.

On June 27, 2006, Fitch Ratings revised the rating outlook of
the long-term foreign currency issuer default rating of
Ecopetrol SA to Positive from Stable.  This rating action
follows the recent revision in the Rating Outlook to Positive
from Stable of the 'BB' foreign currency IDR of the Republic of
Colombia.  Ecopetrol's IDR remain strongly linked with the
credit profile of the Republic of Colombia.


MILLICOM INTERNATIONAL: Colombia Movil Selling 9.25MM Shares
-----------------------------------------------------------
Tigo fka Colombia Movil SA, which has been acquired by Millicom
International Cellular, said in a filing with the Colombian
securities regulator that it will sell 9.25 million shares in
the local stock market.

The total number of shares includes preferred and non-voting
preferred shares, MarketWatch relates, citing Tigo.  The company
didn't say what percentage the 9.25 million shares represent.

Officials of Tigo told MarketWatch that they planned to sell at
least a 15% stake by the end of February 2007.

Tigo shareholders will meet next week to decide the price of
each share, MarketWatch says, citing Leyla Ponce de Leon, the
firm's press officer.

Millicom International Cellular S.A. -- http://www.millicom.com/
-- is a global telecommunications investor with cellular
operations in Asia, Latin America and Africa.  It currently has
cellular operations and licenses in 16 countries.  The Group's
cellular operations have a combined population under license of
approximately 391 million people.

The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras.  The population under
license in Central America at December 2005 is 26.4 million.
The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay.  The population under license in South
America at December 2005 is 15.2 million.

                        *    *    *

Millicom International's 10% senior notes due 2013 carry Moody's
B3 rating and Standard & Poor's B- rating.

                        *    *    *

Standard & Poor's Ratings Services affirmed on July 4, 2006, its
'B+' long-term corporate credit and 'B-' senior unsecured debt
ratings on Millicom International Cellular S.A.  The ratings
were removed from CreditWatch with developing implications,
where they had been placed on Jan. 20, 2006, on the initiation
of a strategic review that could have led to a transaction such
as the sale of all or part of the company.  S&P said the outlook
is stable.




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


SAMSONITE: Tender Offer for 8-7/8% Notes Expired
------------------------------------------------
Samsonite Corp.'s offer to purchase any and all of the
US$164,970,000 outstanding 8-7/8% Senior Subordinated Notes due
2011 and EUR100,000,000 outstanding Floating Rate Senior Notes
due 2010 expired on Dec. 21, 2006.  The Offers and the related
consent solicitations are described in Samsonite's Offers to
Purchase and Consent Solicitation Statement, dated
Nov. 20, 2006.

As of Dec. 20, 2006, US$164,710,000 in aggregate principal
amount, or approximately 99.84% of the outstanding Senior
Subordinated Notes, and EUR85,254,000 in aggregate principal
amount, or approximately 85.25% of the outstanding Floating Rate
Notes have been validly tendered.

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

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 14, 2006,
Standard & Poor's Ratings Services assigned its loan and
recovery ratings to Samsonite Corp.'s US$530 million senior
secured credit facility.  The facility consists of an US$80
million six-year revolving credit and a US$450 million seven-
year term loan B.  The loan is rated 'BB-' with a recovery
rating of '3', indicating the expectation for meaningful
recovery of principal in the event of a payment default.


* COSTA RICA: IDB Grants US$50MM Loan to Alleviate Urban Poverty
----------------------------------------------------------------
The Inter-American Development Bank approved a US$50 million
loan to Costa Rica for an urban poverty alleviation program
combining investments in basic infrastructure, social services
and land tenure regularization in some 31 marginal
neighborhoods.

The investments are expected to benefit some 9.000 poor families
by expanding their access to better quality social services and
infrastructure improvements in their communities, which in turn
will raise the value of their property and integrate the
settlements into the formal city.

The state-owned mortgage bank Banco Nacional Hipotecario de la
Vivienda and Fundacion Costa Rica-Canada will carry out the
program.  The foundation is one of the organizations with most
experience in handling housing subsidies for poor families
lacking access to credit.

The program reflects lessons learned in more than 20 years of
IDB involvement in comprehensive urban upgrade programs.  From
those experiences the Bank has concluded that there are critical
aspects for these programs to succeed, such as the need to adopt
a participative approach based on community decisions at every
stage of the projects.

The program will also strengthen the participating agencies,
ranging from the Housing Ministry and Banco Nacional Hipotecario
to the municipalities where projects will be carried out.

The loan is for 25 years, with a 5.5-year grace period and a
variable interest rate.  Costa Rica will provide $8,409,00 to
finance the program.  Swedish technical cooperation resources
were used to prepare the program.

                        *    *    *

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
===================================


CLOROX CO: To Buy Colgate's Canada & Latin America Bleach Assets
----------------------------------------------------------------
The Clorox Co. entered into a definitive agreement to purchase
Colgate-Palmolive Co.'s bleach businesses in Canada, Colombia,
Dominican Republic, Ecuador, Uruguay and Venezuela for an
aggregate price of US$126 million plus inventory.

"These acquisitions extend our position as the bleach market
leader in the Americas," said Don Knauss, Clorox's chairman and
chief executive officer.  "They provide a platform for growth
with proven laundry and home cleaning products and provide a
great opportunity to further build our health-and-wellness
platform."

Included in the transaction are:

   -- Javex bleach in Canada,
   -- the Nevex brand in Venezuela and
   -- the Agua Jane brand in Uruguay.

Additionally, Colgate is granting to Clorox a license to their
Ajax trademark for bleach for a transition period in Colombia,
the Dominican Republic and Ecuador.  The brands, which will
generate estimated sales of about US$77 million for the calendar
year ending Dec. 31, 2006, are the branded category leaders in
each of these countries, with the exception of Colombia where
Clorox holds the No. 1 market position for bleach.  Clorox will
acquire two manufacturing facilities, one in Alberta, Canada,
and one in Venezuela; and employees at these facilities will
transfer to Clorox.  Colgate will provide transition services to
Clorox for varying periods of time in each country to ensure a
smooth transition.

Reuben Mark, Colgate's Chairman and CEO said, "As with the sale
of our detergent businesses, this move divests a non-core
business in favor of our oral and personal care businesses,
which have more than double the rate of sales and profit growth
in the countries affected."

The sale is subject to regulatory and other customary approvals
in Colombia.  The transaction is expected to close in Canada
during fourth quarter 2006.  In the Latin American countries,
the transaction is expected to close during first quarter 2007,
although the sale of the Colombian business will be subject to
regulatory approval.  It is estimated that these bleach business
sales will result in a cumulative after tax gain of
approximately US$70 million and will be fully offset by
previously disclosed restructuring charges under the company's
2004 Restructuring Program in all periods.

Mr. Mark concluded, "This simplification of our portfolio will
improve gross profit margins in our Latin American and North
American divisions and should facilitate the stronger growth of
our highly profitable oral and personal care businesses."

The transaction will be structured as an all cash acquisition.  
The companies anticipate closing the purchase and sale of the
Canada business later this month and the Latin America
businesses in the first calendar-year quarter of 2007.  The
purchase is subject to regulatory and other customary approvals
and closing conditions.

Clorox anticipates the transaction will be modestly dilutive to
earnings for a period of 12-18 months as the company invests to
transition and revitalize the brands.  Specifically, Clorox
anticipates the acquisition will reduce diluted earnings per
share in a range of 3-4 cents in the second half of its current
fiscal year, which ends June 30, 2007.  The earnings impact of
this transaction was not included in the company's outlook
communicated on Nov. 1, 2006.

                   About Colgate-Palmolive

Colgate-Palmolive is a leading global consumer products company,
tightly focused on Oral Care, Personal Care, Home Care and Pet
Nutrition. Colgate sells its products in over 200 countries and
territories around the world under such internationally
recognized brand names as Colgate, Palmolive, Mennen, Softsoap,
Irish Spring, Protex, Sorriso, Kolynos, Elmex, Tom's of Maine,
Ajax, Axion, Soupline, and Suavitel, as well as Hill's Science
Diet and Hill's Prescription Diet pet foods.

                    About The Clorox Co.

Headquartered in Oakland, California, The Clorox Company --
http://www.thecloroxcompany.com/-- provides household cleaning   
products and reaches beyond bleach.  Although best known for
bleach (leader worldwide), Clorox makes laundry and cleaning
items (Formula 409, Pine-Sol, Tilex), cat litter (Fresh Step),
car care products (Armor All, STP), the Brita water-filtration
system (in North America), and charcoal briquettes (Kingsford).

In Latin America, Clorox has manufacturing facilities in Costa
Rica, Dominican Republic, Panama, Peru and Colombia, among
others.

At June 30, 2006, Clorox's balance sheet showed total assets of
US$3,616 million and total liabilities of US$3,772 million
resulting in a stockholders' deficit of US$156 million.  The
company reported a stockholders' deficit of US$553 million at
June 30, 2005.




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


PETROECUADOR: Inks Crude-for-Derivatives Pact with Enap
-------------------------------------------------------
PetroEcuador, the state oil firm of Ecuador, said in a statement
that it has signed a crude-for-derivatives accord with Enap, its
Chilean counterpart.

Business News Americas relates that under the agreement, Enap
will receive monthly crude shipments through future tenders
PetroEcuador launched.  PetroEcuador will buy refined products
and liquefied petroleum gas from Enap's plants and supply Enap
with low-octane naphtha.

According to BNamericas, the accord includes advances in studies
to develop Enap and PetroEcuador exploration and production
joint ventures and possible funding methods.

PetroEcuador said in a statement that the exploration and
production projects cover Chile and other nations.

BNamericas underscores that Chile's reserves remain unquantified
and largely undeveloped.  However, Enap has 230,000 barrels per
day refining capacity at its three plants and roughly 10% of
derivatives are directed to international markets.

Meanwhile, Ecuador doesn't have enough refining capacity to
support its oil output.  The nation has previously held
discussions with Venezuela for a crude-for-derivatives swap
agreement, BNamericas states.

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


PETROECUADOR: Pareja Assures Safety of Foreign Oil Investments
--------------------------------------------------------------
Carlos Pareja, the soon-to-be head of PetroEcuador, told
Bloomberg News that foreign oil investors in Ecuador need not
fear for their investments in the country.  

Ecuador's legal dispute with Occidental Petroleum Corp.,
according to Mr. Pareja, is not indicative of how the incoming
government of Rafael Correa will deal with foreign firms,
Bloomberg says.  

The incoming chief underscores that the government's move to
revoke Occidental Petroleum's contract was all in accordance
with law.  

Occidental sold early this year 40% of EnCana, its Canadian oil
company, without the permission of the Ecuadorian government.  
This lead to the cancellation of Occidental's operating contact
in Ecuador.

Occidental, in turn, sued the Ecuadorean government seeking more
than US$1 billion in damages.  

PetroEcuador produces about 40% of Ecuador's daily output of
approximately 530,000 barrels.  Mr. Pareja told Bloomberg
production has fallen by 25,000 barrels a day over the past year
and that without improvements to the country's refineries,
output might by another 10,000 barrels a day in 2007.

Meanwhile, Mr. Pareja said that Ecuador might apply for
membership in the Organization of Petroleum Exporting Countries
next year after the government completes a study, Bloomberg
relates.

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




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


TECO ENERGY: Completes Redemption of 8.5% Trust Pref. Securities
----------------------------------------------------------------
TECO Energy, Inc., has completed its previously announced early
redemption of the remaining US$100 million aggregate liquidation
amount of the 8.5% trust preferred securities of TECO Capital
Trust I.

TECO Energy initiated the redemption of the trust preferred
securities by redeeming the remaining aggregate principal amount
of its underlying 8.5% junior subordinated notes due 2041.  The
trust preferred securities were redeemed in accordance with
their terms at US$25 per trust preferred security plus
accumulated but unpaid distributions to the Dec. 20, 2006,
redemption date.  The total aggregate redemption price for the
trust preferred securities was approximately US$101.18 million,
including approximately US$1.18 million of accumulated but
unpaid distributions.  Holders of the securities received
US$25.30 per redeemed security on Dec. 20, 2006.  As a result of
this redemption, no trust preferred securities of TECO Capital
Trust I remain outstanding and they will therefore be
deregistered, suspending TECO Capital Trust I's reporting
obligations under the Securities Exchange Act of 1934, as
amended.  In addition, the trust preferred securities of TECO
Capital Trust I will no longer be listed nor trade on the New
York Stock Exchange.

TECO Energy, Inc. -- http://www.tecoenergy.com/-- is an    
integrated energy-related holding company with regulated utility  
businesses, complemented by a family of unregulated businesses.  
Its principal subsidiary, Tampa Electric Company, is a regulated  
utility with both electric and gas divisions (Tampa Electric and  
Peoples Gas System).  Other subsidiaries are engaged in
waterborne transportation, coal and synthetic fuel production
and electric generation and distribution in Guatemala.

                        *    *    *   

As reported in the Troubled Company Reporter on Jan. 9, 2006,  
Fitch Ratings has affirmed the senior unsecured ratings of TECO  
Energy, Inc. at 'BB+' and subsidiary Tampa Electric Company at  
'BBB+'.  The Rating Outlooks for both TECO and Tampa are Stable.




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


COURTS (JAMAICA): Regal Forest Secures 96% of Shares in Firm
------------------------------------------------------------
Regal Forest Holdings -- the parent firm of Cobalt Holding Co.,
which was created to acquire courts Plc's 12 Caribbean
operations -- has secured over 96% of the shares in Courts
(Jamaica) Ltd., the Jamaica Gleaner reports.

The Gleaner underscores that Cobalt Holdings started offering on
Nov. 21 to buy out shareholders of Courts (Jamaica) at US$4.25 a
share, or US$156 million for 100% of the stock.

As reported in the Troubled Company Reporter-Latin America on
Dec. 12, 2006, Mayberry Investments Ltd., the lead broker of the
deal, said that over 90% of Courts (Jamaica) shareholders
pledged their shares to Cobalt Holding.  Having received over
90% of Courts (Jamaica) shares meant that Cobalt Holding could
exercise its right under the Companies Act of Jamaica to
compulsorily acquire the remaining shares including those who
expressly dissented or failed to respond to the offer.  
Shareholders who pledged their shares before Dec. 6 would be
paid by Dec. 20 in either Jamaican or United States currency.  
Shareholders who pledged by Dec. 18 would also have the option
of being paid in either currency.  After Dec. 18, Courts
(Jamaica) would be delisted from the Jamaica Stock Exchange, as
Cobalt Holdings does not included publicly listed firms in its
portfolio.

Cobalt Holding said in a press release that it would start
issuing payment to shareholders who took up the US$4.25 per
share offer by Dec. 6.

Cobalt Holding told The Gleaner that for shareholders who
accepted after Dec. 6, "Payments will become available on Dec.
29," Cobalt said.

The Gleaner relates that the remaining 4% of stockholders,
covering 95 million of the outstanding shares listed on the
stock exchange, will have to wait until after the mandatory
acquisition process is concluded before they get paid.  The
process could be completed in April of May of next year.

All disbursements will be made at the offices of Mayberry
Investments Ltd., starting mid-afternoon, The Gleaner states.

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

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


DYOLL GROUP: Letter to Stock Exchange Doesn't Affect Stock Price  
----------------------------------------------------------------
"There is no relation between share price movement and the
letter we wrote to the (Jamaican) Stock Exchange," the Jamaica
Observer reports, citing Dr. Damien King, chairperson of Dyoll
Group.

The Observer relates that Dyoll Group issued on Dec. 18 an
advisory regarding ongoing cash flow problems, saying, "The
company is experiencing ongoing cash flow problems arising from
the demise of its insurance subsidiary and although it had sold
another of its subsidiaries, Dyoll/Wataru Coffee Company, those
proceeds were used to manage the daily activities of the
company."

Dyoll Group also said in the notice to the Stock Exchange that
company directors Dawn Azan, Hayden Singh and Aubrey Garcia,"
the notice stated.

On Dec. 19, Dyoll Group's share price moved to US$1.5 from
US$1.70 on Dec. 14 and US$0.82 on Nov. 20.  The share price was
at US$0.55 on Oct. 19, the report says.  Investors traded an
average of 30,000 Dyoll Group's shares in October.  By November,
the volume ranged from 50,000 to 125,000 shares.  The volume
traded peaked at 895,000 shares on Dec. 5 with volumes slowing
to 60,700 on Dec. 18.  On the Dec. 19 trading, 800 Dyoll Group
shares "crossed the floor".

According to The Observer, the value of Dyoll Group shares fell
to US$1.45 from US$1.70 after the advisory.

Mr. King told The Observer, "The information in our letter to
the Stock Exchange is not new.  Investors are aware of the
problems that Dyoll has had in recent times.  In terms of what
is moving the share price; I don't know.  It [the stock market]
is a thin market.  All it takes is a keen buyer to purchase a
share that is trading at a low value.  The movement is not big
in actual value but because the price is so low, the percent
change is big.  All we have done is advise the Jamaica Stock
Exchange as we are obligated to do.  Whenever there is a change
that could impact the value of the company, we must advise the
JSE (Jamaica Stock Exchange)."

A broker explained to The Observer, "Clients bought the stock at
US$0.60 because they said it has clearly hit the bottom in terms
of price.  My clients said that they didn't think that the
problems at Dyoll could get any worse, so they bought.  The
share price has come off a bit, but not much, because not a lot
of clients know about the cash flow warning or even care about
the significance of the warning."

Another broker told The Observer, "The future of Dyoll is very
gray.  They have stated that there are plans to go into real
estate, but it is still just a plan."

Dyoll Group was trying to liquidate judgment debt on the Drax
Hall property, The Observer says, citing Mr. King.  He said, "We
haven't been able to do so, and so our plans to do property
development and management are coming along very slowly.  In
fact, there is nothing new to report since the last annual
general meeting."

According to the report, Dyoll Group reported a loss of US$4.5
million for the nine-month period ending Sept. 30, 2006, which
is an improvement over the loss of US$30 million for the same
period in 2005.  For the first nine months of 2006, the company
had an operating income of US$679,000 and interest and dividend
income of US$6.8 million.  However, these eroded the firm's
revenue base:

          -- US$11 million operating expenses,
          -- US$3.7 million interest expense, and
          -- a loss of foreign exchange eroded the company's
             revenue base.

As indicated in Dyoll Group's balance sheet for the period
ending Sept. 30, 2006, the company had no working capital as its
net current asset position was a negative US$31 million.  The
company had a US$150-million long-term receivable on its books
related to the Drax Hall judgment, The Observer notes.

The Observer underscores that Dyoll Group lost Dyoll Insurance
Co., its major unit, on March 4, 2005, when the Financial
Services Commission appointed a temporary manager for the
insurance firm after the damage caused by Hurricane Ivan in
September 2004 in the Cayman Islands, and the high level of
property and motor vehicle insurance claims that have been
leveled on firms securing properties in that nation.

Dyoll Insurance's Jamaican portfolio was sold to Jamaica
International Insurance Co., a GraceKennedy subsidiary, The
Observer relates.  

Lance Thomas, a member of the Dyoll Insurance liquidation
management team, told The Observer, "This company is still in
liquidation and is separate and apart from the Dyoll Group."

Dyoll Group Ltd. is a Jamaica-based company that is principally
engaged in the insurance business.  Jamaica's Financial Services
Commission has assumed temporary management of Dyoll Insurance
Co. Ltd. in Mar. 7, 2005, in order to establish the true
position of the Company, address the matter of settlement to its
claimants and ensure that its policies will remain in force
after a high level of insurance claims were levelled on the
company as a result of the hurricane Ivan.  Kenneth Tomlison was
appointed temporary manager.  Jamaica's Supreme Court ordered
for the distribution of a US$653 million fund held by the FSC in
accordance with the Insurance Act 2001, section 59, which says
that the prescribed deposit, on the winding up of an insurance
company, should be applied first to settle the claims of local
policyholders.




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


ALERIS INT'L: S&P Affirms Corporate Credit Rating at B+
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' loan and
'2' recovery ratings on the senior secured first-lien term loan
of Aleris International Inc., after the report that the company
increased the term loan by US$125 million.

With the add-on, the total amount of the facility is now
US$1.23 billion.  The secured loan rating is the same as the
'B+' corporate credit rating on Aleris, and the '2' recovery
rating indicates the expectation of substantial recovery of
principal in the event of a payment default.

The term loan is a part of US$2.2 billion in financings being
used to fund the purchase of Aleris by Texas Pacific Group.

Ratings List:

   * Aleris International Group

      -- Corporate Credit Rating at B+/Stable/
      -- Senior Secured B+


ALLIS-CHALMERS: David Wilde Resigns as President & CFO
------------------------------------------------------
Allis-Chalmers Energy Inc. disclosed the resignation of David
Wilde, its President and Chief Operating Officer.  Mr. Wilde
resigned to pursue other opportunities after over six years of
service at Allis-Chalmers and its subsidiary, Strata Directional
Technology.

Allis-Chalmers also announced the appointment of Burt A. Adams,
as its new President and Chief Operating Officer. Mr. Adams
joined Allis-Chalmers on Dec. 18, 2006, upon completion of its
acquisition of substantially all the assets of Oil & Gas Rental
Services, Inc., where he served as President and Chief Executive
Officer from 1996 through 2006.

Micki Hidayatallah, Allis-Chalmers' Chairman and Chief Executive
Officer stated, "We are saddened by the departure of Dave Wilde,
and thank him for his tremendous contributions to our success
over the last six years.  Dave joined Allis-Chalmers when we
acquired our directional drilling business, and his
relationships, insight and vision helped us grow our
consolidated revenues from US$32 million for the year ended
Dec. 31, 2003, to US$193 million for the nine months ended
Sept. 30, 2006.  We worked together on everything including
acquisitions, operating strategies and the strengthening of our
management team.  Dave felt that as our company grew, it was
time for him to pursue opportunities concentrating in marketing
and operations.  We expect that Dave will continue to provide
our directional drilling business with marketing and consulting
services.  Our company's achievements are testimony to Dave's
talents, and we wish him Godspeed in his new endeavors." Mr.
Hidayatallah went on to congratulate Burt Adams on his
appointment as the new President and Chief Operating Officer,
and said, "We are thrilled that our board has appointed Burt to
this important leadership position at a crucial time in our
company's history.  Burt has proven his executive abilities
through his success at Oil & Gas Rental Services, Inc. and we
look forward to Burt's guidance and leadership as we continue to
execute on our growth strategy through strategic acquisitions
and organic expansion.  I am delighted and highly optimistic
about collaboration with Burt as the newest key member of our
management team."

In addition, Allis-Chalmers disclosed that on Dec. 11, 2006, it
acquired Tanus, a processor of drilling fluids and chemicals in
Argentina.  Regarding this acquisition, Mr. Hidayatallah said,
"DLS, our international drilling subsidiary, is Tanus' sole
customer for drilling fluids and chemicals.  I look forward to
tremendous opportunities in terms of potential expansion of our
customer base for these products in both our air drilling and
production services segments in our domestic market."

"I am also extremely excited with the prospect of creating an
international distribution network and expanding the drilling
chemicals and production chemicals for the worldwide market."
    
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.


DELTA AIR: Creditors' Committee Supports Plan Filing Decision
-------------------------------------------------------------
The Official Creditors' Committee appointed in the Delta Air
Lines Chapter 11 cases supported Delta's decision to file its
proposed Plan of Reorganization and accompanying Disclosure
Statement yesterday with the United States Bankruptcy Court for
the Southern District of New York.

A number of issues, including those left open in the Plan of
Reorganization, will be the focus of continuing discussions
between the Committee and Delta over the coming weeks.

At the same time, the Committee will continue to consider
potential alternatives in order to maximize the ultimate
recoveries for the unsecured creditors in the Delta bankruptcy.

Headquartered in Atlanta, Georgia, Delta Air Lines --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading US carrier across
the Atlantic, offering daily flights to 502 destinations in 88
countries on Delta, Song, Delta Shuttle, the Delta Connection
carriers and its worldwide partners.  The company and 18
affiliates filed for chapter 11 protection on Sept. 14, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-17923).  Marshall S. Huebner,
Esq., at Davis Polk & Wardwell, represents the Debtors in their
restructuring efforts.  Timothy R. Coleman at The Blackstone
Group L.P. provides the Debtors with financial advice.  Daniel
H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump
Strauss Hauer & Feld LLP, provide the Official Committee of
Unsecured Creditors with legal advice.  John McKenna, Jr., at
Houlihan Lokey Howard & Zukin Capital and James S. Feltman at
Mesirow Financial Consulting, LLC, serve as the Committee's
financial advisors.  As of June 30, 2005, the Company's balance
sheet showed US$21.5 billion in assets and US$28.5 billion in
liabilities.


DELTA AIR: US Airways Responds to Creditors' Committee Comment
--------------------------------------------------------------
US Airways Group, Inc., issued a response to a statement from
Delta's Creditors' Committee regarding the filing of Delta's
Plan of Reorganization.

"As expected, the Committee's statement makes clear that it has
not decided to endorse Delta's Plan of Reorganization and is
continuing to evaluate our proposal.  With the filing of Delta's
Plan, the process is moving forward.  We will continue to work
with the Creditors' Committee as it evaluates the value created
by our proposal compared with Delta's standalone plan."

Headquartered in Atlanta, Georgia, Delta Air Lines --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading US carrier across
the Atlantic, offering daily flights to 502 destinations in 88
countries on Delta, Song, Delta Shuttle, the Delta Connection
carriers and its worldwide partners.  The company and 18
affiliates filed for chapter 11 protection on Sept. 14, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-17923).  Marshall S. Huebner,
Esq., at Davis Polk & Wardwell, represents the Debtors in their
restructuring efforts.  Timothy R. Coleman at The Blackstone
Group L.P. provides the Debtors with financial advice.  Daniel
H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump
Strauss Hauer & Feld LLP, provide the Official Committee of
Unsecured Creditors with legal advice.  John McKenna, Jr., at
Houlihan Lokey Howard & Zukin Capital and James S. Feltman at
Mesirow Financial Consulting, LLC, serve as the Committee's
financial advisors.  As of June 30, 2005, the Company's balance
sheet showed US$21.5 billion in assets and US$28.5 billion in
liabilities.


DELTA AIR: Accepting Pilot Applications in 2007
-----------------------------------------------
Delta Air Lines will officially begin accepting applications for
new-hire pilots in anticipation of exhausting its pilot furlough
list in 2007.  Interviews for new Delta first officer positions
are scheduled to begin in January.

"Starting the hiring process again is a significant milestone
for our pilot group," said Steve Dickson, vice president of
Flight Operations and a 757/767 Captain.  "It signifies the
likely return of our last furloughed pilot, and provides hope
for growth and career advancement for current pilots."

Delta recently disclosed that it would need approximately 200
additional pilots during 2007 in order to meet the demands of
the flying schedule due to network restructuring and
international expansion.  These pilots will come from a
combination of pilots returning from furlough and new hire
pilots.

"Clearly, this announcement, coupled with our recently announced
order for new Boeing 737 and 777 aircraft as well as the planned
acquisition of 13 Boeing 757s, shows that Delta's plan is
working and the future for the Delta pilot group looks bright,"
Mr. Dickson said.

Delta's call for new pilots marks the first time since 2001 that
the airline has accepted applications from prospective pilots.  
During 2006, Delta has offered recall to more than 340 pilots,
in addition to recalls of 900 maintenance professionals and
1,200 flight attendants. The company continues to hire in its
Airport Customer Service and Reservations divisions.

Delta continues to make significant progress in all areas of its
restructuring including filing its plan of reorganization, which
would have Delta emerge from Chapter 11 during spring 2007 as a
stand-alone carrier.

Headquartered in Atlanta, Georgia, Delta Air Lines --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading US carrier across
the Atlantic, offering daily flights to 502 destinations in 88
countries on Delta, Song, Delta Shuttle, the Delta Connection
carriers and its worldwide partners.  The company and 18
affiliates filed for chapter 11 protection on Sept. 14, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-17923).  Marshall S. Huebner,
Esq., at Davis Polk & Wardwell, represents the Debtors in their
restructuring efforts.  Timothy R. Coleman at The Blackstone
Group L.P. provides the Debtors with financial advice.  Daniel
H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump
Strauss Hauer & Feld LLP, provide the Official Committee of
Unsecured Creditors with legal advice.  John McKenna, Jr., at
Houlihan Lokey Howard & Zukin Capital and James S. Feltman at
Mesirow Financial Consulting, LLC, serve as the Committee's
financial advisors.  As of June 30, 2005, the Company's balance
sheet showed US$21.5 billion in assets and US$28.5 billion in
liabilities.


GREENBRIER: Provides Earnings Outlook for Quarter Ended Nov. 30
---------------------------------------------------------------
The Greenbrier Companies disclosed that earnings for its first
fiscal quarter ended Nov. 30, 2006 will fall below expectations,
due principally to weaker than anticipated results in the
company's North American new railcar manufacturing units.  The
company expects to report operating earnings for its first
fiscal quarter ended Nov. 30, 2006, of US$.10 to US$.13 per
diluted share. Greenbrier plans to release its first quarter
results on Jan. 9, 2007.

New railcar manufacturing margins and results for the quarter
were adversely impacted by production difficulties and
inefficiencies on the introduction of certain conventional
railcar types.  The results for the quarter also include a
write-off of unamortized loan fees of US$.04 per diluted share
and foreign exchange losses, a non-cash item, of US$.03 per
diluted share.  The loan fee write-off occurred as the company
refinanced its North American revolving credit facility during
the quarter with a new US$300 million, five-year facility.

A number of other factors adversely impacted results for the
quarter, including:

   (i) lower than anticipated gains on equipment sales,

  (ii) a delay in the timing of revenue recognition on a marine
       barge order, and
(iii) a lesser number of business days included in actual first
       quarter results from the Meridian Rail Services and
       RailCar America acquisitions than previously anticipated.

During the first quarter, Greenbrier lowered its double-stack
intermodal railcar production rates and produced a higher mix of
conventional railcars.  This shift in mix was the result of
weaker near term demand for double-stack railcars.  Some
production of double-stack railcars during the first two
quarters will be sold later in the year.

Headquartered in Lake Oswego, Ore., The Greenbrier Cos. --
http://www.gbrx.com/-- supplies transportation equipment and
services to the railroad industry.  The Company builds new
railroad freight cars in its manufacturing facilities in the US,
Canada, and Mexico and marine barges at its U.S. facility.  It
also repairs and refurbishes freight cars and provides wheels
and railcar parts at 30 locations (post Meridian acquisition)
across North America.  Greenbrier builds new railroad freight
cars and refurbishes freight cars for the European market
through both its operations in Poland and various subcontractor
facilities throughout Europe.  Greenbrier owns approximately
9,000 railcars, and performs management services for
approximately 136,000 railcars.

                        *    *    *

As reported in the Troubled Company Reporter on May 18, 2006,
Standard & Poor's Ratings Services assigned its 'B+' rating to
The Greenbrier Companies Inc.'s proposed US$85 million
convertible note offering, which will mature in 2026.  At the
same time, Standard & Poor's affirmed its ratings on the Lake
Oswego, Oregon-based railcar manufacturer, including its 'BB-'
corporate credit rating.  S&P said the outlook is stable.


GRUPO MEXICO: Southern Copper Spending US$20 Mil. on Exploration
----------------------------------------------------------------
Oscar Gonzalez Rocha -- the chief executive officer of Southern
Copper, which is controlled by Grupo Mexico -- told CPN that the
firm will spend US$20 million on exploration in both Chile and
Mexico in 2007.

Mr. Rocha explained to Business News Americas, "Both in Chile
and in Mexico there is a probable investment of about US$20
million, which is higher than the US$15 million we will invest
[in exploration] in Peru."

Southern Copper wants to speed up exploration in Chile and
Mexico, hoping that it could identify important deposits to
develop, BNamericas notes, citing Mr. Rocha.

BNamericas relates that Southern Copper has two deposits under
development in Peru:

          -- Tia Maria, and
          -- Las Chancas.

Southern Copper will invest US$250 million next year in
completing the modernization of its Ilo smelter, engineering
studies for Tia Maria and Las Chancas, possible mine expansions,
and machinery renewals, Mr. Rocha told BNamericas.

                   About Southern Copper

Southern Copper Corporation is an integrated producer of copper,
molybdenum, zinc and silver.  All of the Company's mining,
smelting and refining facilities are located in Peru and in
Mexico, and it conducts exploration activities in those
countries and Chile.  With the acquisition of Minera Mexico in
April 2005, the Company focuses on three segments: Peruvian
operations, which include the Toquepala and Cuajone mine
complexes, and the smelting and refining plants, industrial
railroad and port facilities, which service both facilities;
Mexican open-pit operations, which combined two units of Minera
Mexico, Mexcobre and Mexcananea that includes La Caridad and
Cananea mine complexes, and smelting and refining plants and
support facilities servicing both complexes, and Mexican
underground operations known as IMMSA unit, which includes five
underground mines that produce zinc, lead, copper, silver and
gold, a coal and coke mine.

                  About Grupo Mexico

Grupo Mexico SA de CV -- http://www.grupomexico.com/--   
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.

                        *    *    *

Fitch Ratings assigned these ratings to Grupo Mexico SA de CV:

     -- foreign currency long-term debt, BB; and
     -- local currency long-term debt, BB.


MERIDIAN AUTOMOTIVE: Ct. OKs Rejection of 18 Contracts & Leases
---------------------------------------------------------------
The Honorable Mary F. Walrath of the U.S. Bankruptcy Court for
the District of Delaware authorized Meridian Automotive Systems
Inc. and its debtor-affiliates to reject 18 Contracts and Leases
with these counterparties:

     * Ashland Inc.
     * Bayer Material Science LLC
     * ChemProtect Inc.
     * Craig Shatzer
     * David White
     * Du Pont Herberts Automotive Systems
     * Du Pont Performance Coatings
     * E.I. Du Pont De Nemours and Co.
     * Fran LeVeque
     * Gary Milburn
     * Randy Wacaser
     * Richard Newsted
     * Solvay Engineered Polymers
     * Steve McKenzie
     * Superior Oil Company, Inc.
     * Tom Eggebeen
     * Z Technologies Corporation

The Court also permits the Debtors to reject the Additional
Contracts and Leases, except their Heavy Lift Truck lease with
GE Capital.

Headquartered in Dearborn, Mich., Meridian Automotive Systems
Inc. -- http://www.meridianautosystems.com/-- supplies  
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.  
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens.  When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.  Judge
Walrath has confirmed the Revised Fourth Amended Reorganization
Plan of Meridian. (Meridian Bankruptcy News, Issue No. 46;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


MERIDIAN AUTOMOTIVE: Assumes 107 Contracts and Leases
-----------------------------------------------------
The Honorable Mary F. Walrath of the U.S. Bankruptcy Court for
the District of Delaware permitted Meridian Automotive Systems
Inc. and its debtor-affiliates to assume approximately 107 of
the 234 Contracts and Leases with no associated cure amounts.

A 9-page list of the 107 Contracts & Leases to be assumed is
available for free at http://ResearchArchives.com/t/s?1754

Judge Walrath also permitted the Debtors to assume 11 Additional
Contracts and Leases with:

   ACE                    Foreign Liability
   Global Aerospace       Non-owned Aircraft Liability
   Great American         Umbrella including Punitive Wrap
   Liberty Mutual         Auto Liability (Canada)
   Liberty Mutual         Auto Liability (U.S.)
   Liberty Mutual         General Liability (Canada)
   Liberty Mutual         General Liability (U.S.)
   Liberty Mutual         Workers' Compensation
   Midwest Employers      Workers' Compensation (MI & OH Excess)
   XL Specialty           Non-owned Aircraft Liability
   Zurich                 Excess including Punitive Wrap

Headquartered in Dearborn, Mich., Meridian Automotive Systems
Inc. -- http://www.meridianautosystems.com/-- supplies  
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.  
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176).  James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts.  Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors.  The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens.  When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.  Judge
Walrath has confirmed the Revised Fourth Amended Reorganization
Plan of Meridian.  (Meridian Bankruptcy News, Issue No. 46;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


SHOSHONE SILVER: Williams & Webster Raises Going Concern Doubt
--------------------------------------------------------------
Shoshone Silver Mining Co. Inc. filed its financial statements
for the year ended Dec. 31, 2005 with the U.S. Securities and
Exchange Commission on Dec. 4, 2006.

Williams & Webster, PS, in Spokane, Washington, raised
substantial doubt about Shoshone Silver Mining Company Inc.'s
ability to continue as a going concern after auditing the
company's financial statements for the years ended Dec. 31, 2005
and 2006.  The auditing firm pointed to the company's
significant operating losses.

Shoshone Silver Mining Company Inc. reported an US$84,681 net
loss on US$1,373 of revenues for the year ended Dec. 31, 2005,
compared with a US$567,085 net loss on US$131,249 of revenues
for the prior year.  None of the company's properties are in
production, and consequently the company reported zero operating
income.

The decrease in net loss is primarily due to the US$566,000
decrease in operating expenses and the US$54,000 increase in net
gain on sale of securities.

At Dec. 31, 2005, the company's balance sheet showed US$1.3
million in total assets, US$1,461 in total liabilities, and
US$1.3 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2005, are available for
free at http://researcharchives.com/t/s?1756

                    About Shoshone Silver

Headquartered in Idaho's Silver Valley, Shoshone Silver Mining
Company Inc. (Other OTC: SHSH.PK) --
http://www.shoshonesilvermining.com/-- has a core portfolio of  
silver projects in North Idaho's Lakeview District supplemented
by a silver project in Mexico's historic Zacatecas Silver
district and a variety of platinum group metal, gold and uranium
projects located in the western United States.

Shoshone Silver Mining operated its three Lakeview District
Mines and Lakeview Mill successfully producing silver, gold and
base metals for much of the two decades following the company's
founding in 1969.  As silver prices declined into the early
1990's, Shoshone closed much of its production and shifted its
policy towards acquiring new properties and diversifying its
interest.

The company's activities have been limited to exploring and
acquiring rights to explore properties which the company
believes are prospective for platinum group metals.  None of the
company's properties are in production.  


SMITHFIELD FOODS: Moody's Lowers Corporate Family Rating to Ba3
---------------------------------------------------------------
Moody's Investors Service today downgraded the ratings of
Smithfield Foods' senior unsecured debt to Ba3 from Ba2, its
senior subordinated notes to B1from Ba2, and its corporate
family rating to Ba2 from Ba1.  Moody's also affirmed
Smithfield's SGL-3 speculative grade liquidity rating.  The
outlook on all ratings is negative.

The downgrade reflects the deterioration in the company's debt
protection measures, caused by a combination of relatively weak
operating performance combined with higher debt levels due to
heavy debt-financed acquisition activity.  The downgrade also
reflects the increased integration risk the company faces as it
seeks to consolidate recent acquisitions, as well as continuing
event risk of additional acquisitions as the company pursues its
growth strategy.

The affirmation of Smithfield's SGL-3 reflects the company's
adequate liquidity, characterized by an increased reliance on
external financing to fund its growth initiatives, and weak
cushion within financial covenants.  Smithfield could find it
necessary to seek amendments to financial covenants in its bank
facilities or privately placed debt should the company's debt
increase or operating performance weaken further.

The negative outlook reflects the challenges Smithfield faces in
integrating its recent acquisitions and managing a more complex
business portfolio while simultaneously attempting to reduce
debt and increase financial flexibility.  It also reflects the
continued event risk of additional leveraged acquisitions as the
company pursues its global growth strategy.

Moody's notes that Smithfield's ratings and negative outlook
anticipate closure of the Premium Standard Farms acquisition for
equity as outlined, and reflect our views of the company's post
PSF business and credit profile.  Should that acquisition with
equity not close as anticipated or -- lacking closure of that
transaction -- a material near-term equity issuance not be
completed, Smithfield's corporate family ratings will likely be
downgraded to Ba3.

Moody's considers Smithfield's Ba2 corporate family rating as
reflecting the company's high leverage, somewhat volatile
earnings and cash flow stream, aggressive acquisition strategy,
and increasingly complex business structure.  It also reflects
the integration risks as Smithfield must consolidate a series of
acquisitions made over the past year, as well as higher-than-
average event risk of additional leveraged acquisitions within
the consolidating protein industry.  Smithfield's ratings are
supported by the company's large size, very strong market
position, solid brand in the US pork industry.

Smithfield Foods, Inc., headquartered in Smithfield, Virginia,
is the largest vertically integrated producer and marketer of
fresh pork and processed meat in the US and has operating
subsidiaries and joint ventures in France, Poland, Romania, the
UK, Brazil, Mexico, and China.


SWIFT & COMPANY: Moody's Places Ratings on Review for Upgrade
-------------------------------------------------------------
Moody's Investors Service placed Swift & Company's B3 senior
unsecured rating, its Caa1 senior subordinated rating, and B2
corporate family rating under review for possible downgrade.  

The review for downgrade was prompted by the continuing
challenges in the US beef industry, and the possibility that
these challenges could slow Swift's ability to improve its
operating performance and restore its debt protection measures
to levels acceptable for its current rating.

The review will focus on the company's ability to improve
operating performance and reduce debt in the near term, and to
maintain its financial flexibility in the light of continued
challenging industry conditions.

It will also focus on the impact -- if any -- that recent raids
on Swift facilities by the US Immigration and Customs
Enforcement Bureau and related temporary plant disruptions and
slowdowns will have on Swift's operating performance and future
labor profile and cost structure.

Ratings placed under review for possible downgrade:

   -- Corporate family rating at B2;
   -- Probability of default rating at B2;
   -- Senior unsecured notes at B3, LGD4, 61%; and,
   -- Senior subordinated notes at Caa1, LGD5, 77%.

Swift & Company, headquartered in Greeley, Colorado, is a major
processor of beef and pork, with operations in the US and
Australia.  It has sales offices in Mexico.


* MEXICO: Market for Plastics in Food & Beverage Packaging Grows
----------------------------------------------------------------
Consumers, producers, and distributors in the Brazilian and
Mexican food and beverage packaging market are increasingly
opting for plastics.  Plastic's appeal mainly stems from its
ability to increase shelf life of packaged food and offer cost
savings on transport due to its lightweight.

New analysis from Frost & Sullivan (http://www.food.frost.com),  
Brazilian and Mexican Markets for Plastics in Food and Beverage
Packaging, reveals that the market earned revenues of US$5.27
billion in 2005 and estimates this to reach US$7.22 billion in
2012.

Plastic is steadily replacing traditional food packaging
materials such as glass, metal, paper and board, yielding
substantial revenues across various segments.  It is
outstripping competition through its inherent features of being
shatterproof and providing transparency for inspection of
contents, besides the sheer convenience and portability of the
packaging.

These benefits of plastic packaging are creating growth
opportunities in the high-growth mineral and flavored water
segment, the export segment for fruits and vegetables, as well
as the ready-to-eat food segment in the Brazilian and Mexican
markets.  To leverage this demand, industry participants are
deploying advanced packaging technologies.

"One such technology is modified atmospheric packaging," say
Frost & Sullivan Research Analyst Tamara Dvoskin.  "It helps in
preserving the original composition of food by eliminating the
need for chemical additives."

Another recent and notable advancement is coextrusion
technology.  This invention enables plastic processors to
produce multi-layer films, which provide optimum film
performance for various new applications in the food packaging
market.

Meanwhile, the novel 'intelligent packaging' system, which
offers auto cooling or auto heating features, helps deliver food
products at proper temperatures.  Such technological advances
also enable faster filing rates and packaging of hot foodstuff,
giving plastic a competitive edge over traditional packaging
materials.

Another concern for manufacturers are the newly developed
superior plastics, which diminish the gauge of plastic films and
plastic weight.

"This down gauging of plastic films implies a significant
reduction in plastic consumption and is a restraint to the
growth of packaging markets," notes Ms. Dvoskin.

To overcome these challenges in a price-sensitive market,
packaging manufacturers need to reframe growth strategies.

"While collaboration with suppliers of core raw materials such
as resin can help hedge the risk of price fluctuations,
strategic innovations can ensure entry into newer segments,"
concludes Frost & Sullivan Research Analyst Victoria Verdier.  
"Moreover, establishing manufacturing agreements with food
companies would prove to be a tactical move to sustain high
returns for market participants."

Frost & Sullivan, a global growth consulting company, has been
partnering with clients to support the development of innovative
strategies for more than 40 years.  The company's industry
expertise integrates growth consulting, growth partnership
services, and corporate management training to identify and
develop opportunities. Frost & Sullivan serves an extensive
clientele that includes Global 1000 companies, emerging
companies, and the investment community by providing
comprehensive industry coverage that reflects a unique global
perspective and combines ongoing analysis of markets,
technologies, econometrics, and demographics.

                        *    *    *

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




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


* NICARAGUA: Has Made Considerable Economic Progress, IMF Says
--------------------------------------------------------------
Director of the Western Hemisphere Department of the
International Monetary Fund Anoop Singh congratulated the
political leaders on the ongoing smooth political transition in
Nicaragua.

Mr. Singh said that under the leadership of President Enrique
Bolanos, Nicaragua has made considerable economic progress,
exemplified by the successful completion of the PRGF program.  
Macroeconomic stability has been strengthened; fiscal
consolidation has been sustained; poverty-reduction spending has
been expanded; and important progress has been made with
structural reforms.  Helped by support of the Fund and
international community, including debt relief, these policies
have raised growth and improved social indicators.

"President-elect Ortega has emphasized to me his commitment to
prudent macroeconomic policies and intensifying poverty
reduction.  In particular, the President-elect expressed his
intention to work with the Fund towards an early new economic
program that would entrench stability in Nicaragua, and move
ahead with reforms critical for raising investment and
sustainable growth, and accelerating employment creation and
poverty reduction.  We at the IMF look forward to working
closely with the incoming authorities to support their
objectives," Mr. Singh added.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

                     Rating     Rating Date
                     ------     -----------
   Long Term          Caa1     June 30, 2003
   Senior Unsecured
   Debt                B3      June 30, 2003


* NICARAGUA: Comision Nacional Inks Pact with Direccion General
---------------------------------------------------------------
Comision Nacional de Energia, the national energy commission of
Nicaragua, told Business News Americas that it has signed an
accord with Direccion General de Bomberos aka DBG, the nation's
firefighters agency, to ensure rural power service.

BNamericas relates that DGB will authorize electricity
installations through low-cost inspections.

Comision Nacional said in a statement that the accord will help
provide electricity to over 75% of Nicaragua's 5.1 million
residents after two years.

Nicaragua's power coverage is up to 68%.  The coverage increase
will cost US$10 million, which will come from donating
organizations and nations as well government funds, Ernesto
Espinoza, president of Comision Nacional, told BNamericas.

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

                     Rating     Rating Date
                     ------     -----------
   Long Term          Caa1     June 30, 2003
   Senior Unsecured
   Debt                B3      June 30, 2003




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


* PARAGUAY: Secures US$69.5M Loan for Power Transmission Program
----------------------------------------------------------------
The Inter-American Development Bank approved a US$69.5 million
loan to Paraguay for the first phase of a two-phase power
transmission program.

The National Electricity Administration -- ANDE, Paraguay's
public power company, will be in charge of the program, that due
to its long-term objectives will be developed in a sequential,
two-phase approach.

ANDE's strategy and the program's objective is to meet growing
demand for electricity in a sustainable manner by expanding and
upgrading the transmission grids and reducing power loss levels.  
The program will help modernize the power sector and transform
ANDE into a more modern and efficient public utility company.

The project is expected to make the productive sector more
competitive and raise the standard of living of the population
through the efficient use of the country's large available
electric power generation capacity.

This program follows IDB's Paraguay strategy, which focuses on
boosting the competitiveness of the productive sector and gives
priority to upgrading infrastructure while ensuring financial
sustainability.

The loan will be for a 25-year term, with a four-year grace
period, at an adjustable interest rate.  Local counterpart funds
for the first phase will total US$36.38 million.

                        *    *    *

Moody's assigned these ratings on Paraguay:

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

                        *    *    *

Standard & Poor's assigned these ratings on Paraguay:

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




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


GRAN TIERRA: Awarded License Contract for Block 128 in Peru
-----------------------------------------------------------
A license contract for the Exploration and Exploitation of
Hydrocarbons covering Block 128 in Peru between Gran Tierra
Energy Peru and PeruPetro S.A. was signed and ratified on
Dec. 12, 2006, by Supreme Decree, and is now effective.  With a
100% working interest, Gran Tierra Energy is operator of the
block.

Block 128 is adjacent to Gran Tierra's existing acreage in Block
122, which was awarded to the company earlier in 2006.  The two
blocks are located on the eastern flank of the Maranon Basin in
northern Peru, on the crest of the Iquitos Arch.  Block 128
covers 2.2 million acres. Together with Block 122, the Company
now has a 100% working interest in 3.2 million acres over the
Iquitos Arch, the largest landholding on this trend.

The license contract for Block 128 defines a seven-year
exploration term divided into four periods, each involving a
minimum work/financial commitment.  The minimum commitment for
the first work period, which is mandatory, is US$0.5 million.  
The potential commitment over the seven-year period is US$3.6
million and includes technical studies, seismic acquisition and
the drilling of one exploration well.  The license contract
defines an exploitation term of thirty years for commercial
discoveries of oil.

Dana Coffield, President and Chief Executive Officer of Gran
Tierra, stated, "This second transaction marks the completion of
our exploration land acquisition in a significant new
exploration play in Peru.  We now have the dominant acreage
position in this play, and will begin work in 2007 towards
maturing this land to define seismic acquisition programs and
future drilling opportunities."

                     About Gran Tierra

Gran Tierra Energy Inc., fka Goldstrike Inc., is an independent
international energy company involved in oil and natural gas
exploration and exploitation.

Gran Tierra's current activities in Argentina and Colombia have
been established via acquisitions.  The Company has also signed
a license contract in Peru and has offered to purchase a mix of
producing and prospective assets in Argentina.

                    Going Concern Doubt

As reported in the Troubled Company Reporter-Latin America on
July 27, 2006, Deloitte & Touche LLP expressed substantial doubt
about the ability of Gran Tierra Energy Inc. fka Goldstrike Inc.
to continue as a going concern after auditing the Company's
financial statements for the year ending Dec. 31, 2005.  The
auditing firm said that the company's ability to continue as a
going concern is dependent upon obtaining the necessary
financing to acquire oil and natural gas interests and generate
profitable operations from the company's oil and natural gas
interests in the future.  The company incurred a US$2.2 million
net loss for the period ended Dec. 31, 2005, negative cash flows
from operations of US$1.9 million, and, as of Dec. 31, 2005, had
an accumulated deficit of US$2.2 million.


* PERU: IDB Provides US$486 Million Conditional Credit Line
-----------------------------------------------------------
The Inter-American Development Bank approved a US$486 million
conditional credit line for investment projects or CCLIP and a
US$100 million loan to Peru to improve its national roads
network.

The IDB financing will help Peru increase the percentage of good
roads through the rehabilitation and improvement of paved and
unpaved roads. Maintenance targets will be expanded, regional
integration will be boosted and Provias Nacional, the agency
responsible for the national roads network, will be
strengthened.

The resources will also contribute to the financially and
technically sustainable conservation of Peru's roadways as well
as to improve road safety and the competitiveness of the
Peruvian economy.  The program will also finance the second
stage of an intermodal transportation plan focused on logistics.

Local counterpart resources will include US$169.8 million for
the CCLIP and US$35.13 million for the loan program.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 22, 2006,
Standard & Poor's Ratings Services raised its long-term foreign
currency sovereign credit rating on the Republic of Peru to
'BB+' from 'BB' and its long-term local currency sovereign
credit rating to 'BBB-' from 'BB+'.  Standard & Poor's also
raised its short-term local currency sovereign credit rating to
'A-3' from 'B', and affirmed its 'B' short-term foreign currency
sovereign credit rating on the republic.  The outlook on the
ratings was revised to stable from positive.  Standard & Poor's
also raised its assessment of the risk of transfer and
convertibility to 'BBB' from 'BBB-'.




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


ADELPHIA COMMS: Files Proposed Changes to Plan of Reorganization
----------------------------------------------------------------
Adelphia Communications Corp. filed proposed changes to the
First Modified Fifth Amended Joint Chapter 11 Plan of
Reorganization with the U.S. Bankruptcy Court for the Southern
District of New York on Dec. 19, 2006, marked to show changes
against the version filed with the Bankruptcy Court on
Dec. 12, 2006.

The proposed modifications reflect additional discussions with
the interested parties as well as certain changes resulting from
the hearing to consider confirmation of the Plan.  The Plan is
subject to approval of the Bankruptcy Court.  The Confirmation
Hearing commenced on Dec. 7, 2006 and ended on Dec. 19, 2006.

A full-text copy of the proposed revisions to the Plan are
available for free at http://ResearchArchives.com/t/s?1770

Based in Coudersport, Pa., Adelphia Communications Corp.
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth-largest    
cable television company in the country.  Adelphia serves
customers in 30 states and Puerto Rico, and offers analog and
digital video services, high-speed Internet access and other
advanced services over its broadband networks.  The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002.  Those cases
are jointly administered under case number 02-41729.  Willkie
Farr & Gallagher represents the ACOM Debtors.  
PricewaterhouseCoopers serves as the Debtors' financial advisor.  
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642).  Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.


APARTMENT INVESTMENT: Declares Dividend on Class A Common Stock
---------------------------------------------------------------
Apartment Investment and Management Company aka Aimco's board of
directors declared a quarterly dividend of US$0.60 per share on
its Class A Common Stock for the quarter ended Dec. 31, 2006.  
The dividend is payable on Jan. 31, 2007, to shareholders of
record on Dec. 31, 2006.

Aimco's regular fourth quarter dividend has generally been
declared in January and paid in February, however, the Aimco
Board declared the regular quarterly dividend a month early in
order to offset gains from 2006 property sales that would
otherwise result in Aimco being subject to REIT excise tax.

Headquartered in Denver, Colorado, Aimco is a real estate
investment trust that owns and operates a geographically
diversified portfolio of apartment communities through 19
regional operating centers.  Aimco, through its subsidiaries,
operates 1,320 properties, including approximately 230,000
apartment units, and serves approximately one million residents
each year.  Aimco's properties are located in 47 states, the
District of Columbia and Puerto Rico.

                        *    *    *

As reported in the Troubled Company Reporter on June 9, 2006,
Fitch affirmed these ratings for Apartment Investment and
Management Company:

  AIMCO:

    -- US$900 million preferred stock 'BB+'

  AIMCO Properties L.P.:

-- US$850 million bank credit facility 'BBB-'


SAN JUAN: Moody's Affirms Low B Ratings
---------------------------------------
Moody's affirmed San Juan's B2 corporate family rating, stable
outlook and B2 probability of default rating as well as the B1
first lien rating and the Caa1 second lien rating.  The
company's recent change in capital structure did not alter
Moody's opinion of the corporate family rating and did not lead
to changes in the ratings of individual securities.

The corporate family rating continues to reflect San Juan's high
financial risk with leverage on an LTM basis in the mid 7 times
range, fixed charge coverage in the low 1 times range and
expectations that the company will remain cash flow neutral
through 2007, as well as geographic concentration and lack of
scale.  San Juan also faces execution risk as management
undertakes an aggressive rollout of high-speed data, advanced
video services and telephony in the near term.  The potential
for substantial cash flow growth, the attractive asset value of
San Juan's upgraded network in a relatively less competitive
market and primarily success-based capital expenditures,
however, support the ratings.

Moody's affirmed these ratings:

   -- B2 Corporate Family Rating;

   -- B2 Probability of Default Rating;

   -- B1, LGD3, 38% Senior Secured 1st Lien Term Loan;

   -- B1, LGD3, 38% Senior Secured 1st Lien Revolving
      Credit Facility;

   -- Caa1, LGD5, 89% Senior Secured 2nd Lien Term Loan; and

   -- Stable Outlook.

San Juan Cable is the leading provider of cable television
services in Puerto Rico with approximately 140,000 subscribers.
Its LTM revenue through September 30, 2006, was approximately
US$132 million.


SUNCOM WIRELESS: Begins Over-the-Counter Trading
------------------------------------------------
SunCom Wireless Holdings, Inc., has started trading over-the-
counter on Dec. 19, 2006, under the ticker SWSH, after being
de-listed from the New York Stock Exchange or NYSE as of the
close of trading on Dec. 18, 2006.

Rose Cummings, director of corporate communications at SunCom
Wireless, told Business News Americas that the company was
notified several months ago that it was not meeting the NYSE's
market cap requirements.  It was given a deadline to provide a
plan that showed it was taking the necessary steps to meet the
requirements.  The necessary paperwork was filed but not
accepted.

As previously disclosed, SunCom Wireless plans to appeal the
NYSE's de-listing decision.

Ms. Cummings told BNamericas that the period of appeal was 30
working days.  She expects that the process would be resolved
quickly.

SunCom Wireless had not really suffered any ill effects from the
news during the year and from an operational standpoint, income
had been good quarter-on-quarter and with strong client growth
in Puerto Rico, BNamericas says, citing Ms. Cummings.

SunCom Wireless' total revenue in the third quarter of 2006
increased 2.13% to US$219 million, from US$214 million in the
third quarter of 2005.  Its subscribers increased to 1.04
million from 942,3278, BNamericas states.

Based in Berwyn, Pennsylvania, SunCom Wireless Holdings Inc.
(NYSE: TPC) -- http://www.suncom.com/-- offers digital wireless
communications services to more than one million subscribers in
the southeastern United States, Puerto Rico and the U.S. Virgin
Islands.  SunCom is committed to delivering Truth in Wireless by
treating customers with respect, offering simple,
straightforward plans and by providing access to the largest GSM
network and the latest technology choices.

SunCom Wireless' balance sheet showed a stockholders' deficit of
US$378,099,000 at Sept. 30, 2006, compared with a deficit of
US$338,223,000 at June 30, 2006.


SUNSET BRANDS: Posts US$9.1 Mil. Net Loss in 2006 Third Quarter
---------------------------------------------------------------
Sunset Brands Inc. incurred a US$9.1 million net loss on
US$3.9 million of net revenues for the three months ended
Sept. 30, 2006, compared with a US$3.2 million net loss on zero
revenues for the same period in 2005.

The company's balance sheet at Sept. 30, 2006, showed
US$11.3 million in total assets and US$20.3 million in total
liabilities resulting in an US$8.9 million stockholders'
deficit.  The company's accumulated deficit stood at US$31.9
million at Sept. 30, 2006.

As of Sept. 30, 2006, the company's balance sheet also showed
strained liquidity with US$2.3 million in total current assets
available to pay US$14.7 million in total current liabilities.

Full-text copies of the company's third quarter financials are
available for free at http://researcharchives.com/t/s?1769

                     IBF's Acquisition

On Oct. 23, 2006, IBF Liquidating Fund LLC acquired all rights,
title and interests in the company's note and revolving credit
facility with CapitalSource Finance LLC.  Later, IBF Liquidating
filed an emergency motion in the U.S. Bankruptcy Court for the
Southern District of New York seeking a temporary restraining
order against the company and all persons acting on its behalf
from taking any actions on U.S. Mills' behalf, or with respect
to U.S. Mills' property or that may interfere in any way with
IBF Liquidating Fund LLC's exercise of its contractual rights
with respect to U.S. Mills, including its rights to replace U.S.
Mills' board of directors or IBF Liquidating Fund LLC's efforts
to sell the U.S. Mills business.  In addition, that the company
be required to seek approval of the Court prior to taking any
actions on behalf of U.S. Mills or in respect of any property of
U.S. Mills.  The company chose not to oppose the motion and the
requested preliminary injunction was granted on Oct. 30, 2006.  
The company is currently in settlement discussions with IBF
Liquidating Fund LLC and is cooperating on the potential sale of
the U.S. Mills business.

The company was previously in default of several financial
covenants under the Credit Agreement and, accordingly,
US$8,066,667 of long-term notes payable have been classified as
current liabilities.  On June 7, 2006, the company entered into
a Forbearance and Amendment agreement with CapitalSource whereby
CapitalSource agreed to forbear from exercising its rights and
remedies under the previously executed loan agreements through
Aug. 28, 2006 or upon the occurrence of any event of default
other than the existing forbearance defaults.  In addition,
CapitalSource agreed to amend and restate the financial
covenants.  At Sept. 30, 2006, the company was in compliance
with the financial covenants of the loan agreement.

                     Going Concern Doubt

As reported in the Troubled Company Reporter on June 27, 2006,
Hansen, Barnett & Maxwell in Salt Lake City, Utah, raised
substantial doubt about Sunset Brands, Inc.'s ability to
continue as a going concern after auditing the Company's
consolidated financial statements for the years ended
Dec. 31, 2005, and 2004.  The auditor pointed to the Company's
losses from operations, negative cash flows, and working capital
and accumulated deficiencies.

                    About Sunset Brands

Based in Los Angeles, California, Sunset Brands, Inc. --
http://www.sunsetbrands.com/-- intends to capitalize on the    
growing demand for healthy foods.  The Company wants to become a
category leader in this field through expanded marketing of
existing products under brands owned or licensed by US Mills and
the introduction of new products.  US Mills, Inc., sells
natural, organic and specialty ready-to-eat cereals, hot
cereals, cookies and crackers.  US Mills sells five brands --
Uncle Sam Cereal, Erewhon, New Morning, Farina, and Skinner's
Raisin Bran -- in all 50 states, Canada, and Puerto Rico.




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


NAVIOS MARITIME: Completes US$300 Million Senior Notes Offering
---------------------------------------------------------------
Navios Maritime Holdings Inc. completed the sale of US$300
million aggregate principal amount of 9-1/2% Senior Notes due
2014.  The Notes were sold in the United States only to
qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended, and in offshore transactions
to non-United States persons in reliance on Regulation S under
the Securities Act.

The Notes will initially be fully and unconditionally guaranteed
by all of Navios' existing subsidiaries, other than Corporacion
Navios Sociedad Anonima.  Navios intends to use the net proceeds
of the offering to repay amounts currently outstanding under its
senior secured credit facility.

The Notes and related guarantees have not been registered under
the Securities Act or the securities laws of any other
jurisdiction and may not be offered or sold in the United States
or to or for the benefit of U.S. persons unless so registered
except pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities
Act and applicable securities laws in other jurisdictions.

                    About Navios Maritime

Navios Maritime Holdings Inc. (Nasdaq: BULK, BULKU, BULKW) --
http://www.navios.com/-- is a vertically integrated global  
seaborne shipping company, specializing in the worldwide
carriage, trading, storing, and other related logistics of
international dry bulk cargo transportation.  The company also
owns and operates a port/storage facility in Uruguay and has in-
house technical ship management expertise.  It maintains offices
in Piraeus, Greece, South Norwalk, Connecticut and Montevideo,
Uruguay.

                        *    *    *

In November 2006, Standard & Poor's Ratings Services assigned
its 'BB-' long-term corporate credit rating to Greece-based
dry-bulk shipping company Navios Maritime Holdings Inc.  At the
same time, Standard & Poor's assigned its preliminary 'B' debt
rating to Navios' proposed US$300-million senior unsecured
bonds.  S&P said the outlook is stable.


* URUGUAY: State Bank Posts UYU1.96B 11-Month Profits
-----------------------------------------------------
Uruguayan central bank figures indicate that profits of Banco
Republica, the nation's state-run bank, has increased by 42.0%
to UYU1.96 billion from January to November 2006, compared with
the same period in 2005, Business News Americas reports.

BNamericas relates that Banco Republica's return on equity was
13.1% in the 11 months of 2006, compared with 6.26% in the same
period last year.  Its return on assets increased to 0.99% from
0.46%.

Banco Republica's net lending rose 18.3% to UYU106 billion as of
Nov. 30, 2006, compared with the same time in 2005, BNamericas
notes.  The past-due loan ratio improved to 3.77% from 7.28%.

According to BNamericas, the assets of Banco Republica increased
14.7% to UYU141 billion in November 2006, compared with November
2005.  Its liabilities including deposits rose 13.9% to 129bn
pesos.

Banco Republica has 40% of total assets in the Uruguayan banking
system, BNamericas states.

                        *    *    *

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


* URUGUAY: State Firm Resolving Power Failures Caused by Storm
--------------------------------------------------------------
A source from UTE, the state power firm of Uruguay, told
Business News Americas that the company was due to have resolved
by Dec. 19 all service failures resulting from the storm on
Dec. 17.

The storm left at least 17,800 customers without power,
BNamericas says, citing the source.

The source said that UTE resolved 95% of the reported service
failures by midday of Dec. 17, while as of noon on
Dec. 16, the company had resolved 73% of the service failures,
BNamericas notes.

According to the report, the power failure affected southern
Uruguay, mostly in departments:

          -- Rio Negro,
          -- Colonia,
          -- San Jose,
          -- Canelones, and  
          -- Montevideo.

The outage was related to the distribution network.  None of the
higher-voltage transmission lines were damaged, the source told
BNamericas.

                        *    *    *

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




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


CITGO PETROLEUM: Fitch Raises Issuer Default Rating to BB
---------------------------------------------------------
Fitch Ratings raised the rating of CITGO Petroleum Corp.'s
Issuer Default Rating to 'BB' from 'BB-'.  Fitch also raised the
ratings on the company's senior secured revolving credit
facilities, term loan, and fixed rate Industrial Revenue Bonds
from 'BB+' to 'BBB-'.  The Rating Outlook is Stable.  Fitch
rates the debt of CITGO:

   -- IDR 'BB';

   -- US$1.15 billion senior secured revolving credit
      facility maturing in 2010 'BBB-';

   -- US$700 million secured term-loan B maturing in
      2012 'BBB-'; and

   -- Fixed-rate IRBs 'BBB-'.

The main drivers behind the upgrade include: the continued
strength of U.S. refining margins, CITGO's competitive position
as the owner of three heavy-conversion capacity refineries, and
record-high market valuations for refining assets, which
enhances CITGO's secured facilities.  Fitch's ongoing concerns
with CITGO's ratings revolve primarily around the link between
CITGO and the Bolivarian Republic of Venezuela.  CITGO currently
sends most of its excess cash to its parent, something that
could limit CITGO's financial flexibility during an industry
downturn.  For the most recent 12 months ending Sept. 30, 2006,
CITGO paid US$1.94 billion in distributions to its parent.  A
significant part of this distribution was paid for from the
company's recent sale of its 41.25% stake in the CITGO-Lyondell
joint-venture refinery in Houston.

CITGO's variable-rate Internal Revenue Bonds are supported by
letters of credit under the company's current credit facilities
and are not rated by Fitch.  CITGO's secured facilities are
backed by the company's current assets as well as the Lake
Charles, Louisiana and Corpus Christi, Texas refineries.  
Covenants include a maximum debt-to-capitalization of 55% and a
minimum EBITDA-to-interest coverage of 3.00 to 1.00.  The
agreements also contain a carve-out provision to allow for
additional debt totaling the greater of US$200 million or 10% of
CITGO's net worth as well as a US$250 million accounts
receivable securitization program.

Under existing covenants, Venezuela can upstream net proceeds of
up to US$3.0 billion from asset sales by CITGO, excluding the
Lake Charles and Corpus Christi refineries.  While the value of
the working capital as well as Lake Charles and Corpus Christi
provide significant collateral coverage for the secured lenders,
CITGO's ratings are also supported by the company's overall
diverse and complex refining base.  Given the strategic
importance of CITGO's refineries to Venezuela, the continued
strong refining margin environment, and limits created by
existing covenants, Fitch's current ratings assume that the
Lemont refinery will not be sold in the near term.

CITGO's refineries have the capacity to process a high
percentage of heavy sour crude, primarily from Venezuela.  Heavy
crudes typically sell at a 25% to 35% discount to lighter crudes
such as the benchmarks West Texas Intermediate and Brent.  
CITGO's discounts, however, are limited somewhat by the crude
contracts with Venezuela which account for approximately 50% of
CITGO's crude throughput.  CITGO remains a critical piece of
PDVSA's integrated oil strategy.

In addition to the Venezuelan related concerns, CITGO remains
subject to other industry-wide risks.  The company is making
significant investments to meet ongoing regulations including
low sulfur fuels as well as its recent consent decrees to reduce
emissions from its refineries.  A key risk for CITGO lies in its
decision to defer investments needed to meet ultra low sulfur
diesel specifications at its Corpus Christi and Lemont
refineries until later in the decade.  Any unanticipated
acceleration of construction costs or schedules could make it
difficult for the company to complete its projects on time and
under budget.  The company also remains subject to both planned
and unplanned shutdowns of its refineries, and with two of three
refineries located on the Gulf coast, hurricanes are also a
concern.

CITGO is one of the largest independent crude oil refiners in
the U.S. with three modern, highly complex crude oil refineries
and two asphalt refineries.  Following the sale of its stake in
the CITGO-Lyondell joint-venture refinery in Houston, CITGO now
owns 859,000 barrels per day of crude refining capacity.  CITGO
branded fuels are marketed through more than 11,000
independently owned and operated retail sites. CITGO is owned by
PDV America, an indirect, wholly owned subsidiary of Petroleos
de Venezuela S.A. (PDVSA), the state-owned oil company of
Venezuela.  The long-term foreign currency rating of both PDVSA
and Venezuela is 'BB-' with a Stable Rating Outlook.

Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,   
wholly owned subsidiary of Petroleos de Venezuela SA, the state-
owned oil company of Venezuela.


PETROLEOS DE VENEZUELA: Exploring Boyaca 5 Block with Petronas
--------------------------------------------------------------
Petroleos de Venezuela SA, the state-owned oil company of
Venezuela, said in a statement that it will explore and possibly
produce in the Boyaca 5 block of the Orinoco extra-heavy oil
belt with Petronas, its counterpart in Malaysia.

Business News Americas relates that Petronas will have to join
Venezuela's "magna reserva" initiative, which involves Petroleos
de Venezuela and partners determining Orinoco oil reserves.

According to BNamericas, Petronas would then have to determine
Boyaca 5 reserves.  If amounts are found to be commercial, the
company would have the first choice to perform exploration and
production in the block with Petroleos de Venezuela.

BNamericas states that other firms involved in the "magna
reserva" projects are from:

          -- Russia,
          -- China,
          -- Spain,
          -- India,
          -- Iran,
          -- Argentina,
          -- Uruguay,
          -- Brazil,
          -- Belarus, and
          -- Venezuela.

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

                        *    *    *

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

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


PETROLEOS DE VENEZUELA: Production & Processing Cost US$5/Barrel
----------------------------------------------------------------
Venezuelan President Hugo Chavez told Agencia Bolivariana de
Noticias that it costs Petroleos de Venezuela SA, the state-run
oil firm of Venezuela -- US$1 to produce a barrel of oil and
another US$4 to process.

Business News Americas relates that officials of Petroleos de
Venezuela have been cautious about disclosing production costs,
citing figures of approximately US$10 per barrel.

According to BNamericas, the export basket price of Venezuela
has averaged US$56 per barrel in 2006.  The country recorded its
highest weekly average in history of almost US$66 per barrel in
August.

President Chavez invited Datuk Seri Abdullah Ahmad Badawi,
Malaysia's prime minister, to halt oil output in Malaysia and
work in partnership with Venezuela, where extraction is cheaper
and more plentiful.  Venezuela has also made a similar offer to
Brazil, BNamericas notes.

President Chavez told BNamericas, "We propose to [countries]
that lack vast reserves to come to Venezuela and stop exploiting
their own reserves in order to extend their production lives."

The Venezuelan leader said that Malaysian reserves would last 20
years longer at current output rates, BNamericas says.

"Imagine how much it costs Malaysia or Brazil to extract a
barrel of crude 1,500 meters below the sea," President Chavez
told BNamericas.

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

                        *    *    *

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

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


REVLON INC: Unit Completes Credit Agreement Refinancing
-------------------------------------------------------
Revlon, Inc., disclosed that its wholly owned operating
subsidiary, Revlon Consumer Products Corp. had consummated the
previously announced refinancing of its existing bank credit
agreement.  Among other things, the new credit facilities will
result in significant annual interest savings due to lower
interest margins and provide the Company with greater financial
and other covenant flexibility, as well as extend the maturity
dates for Revlon Cosumer's bank credit agreement to January
2012.

Commenting on the announcement, Revlon President and CEO David
Kennedy stated, "I am delighted with this demonstration of
support by our lenders.  This new credit agreement provides us
with additional liquidity and flexibility as we enter 2007
focused on our core Revlon, Almay and Mitchum brands, while
seeking to continue to improve our cash flow."

As part of this refinancing, Revlon Consumer entered into a new
5-year US$840 million term loan facility, replacing the US$800
million term loan under Revlon Consumer's 2004 bank credit
agreement.  Revlon Consumer also amended its existing US$160
million multi-currency revolving credit facility under its 2004
bank credit agreement and extended its maturity through the same
5-year period.

The company indicated that the proceeds from the 2006 Credit
Facilities were used to repay in full approximately US$800
million of outstanding indebtedness under the term loan facility
of Revlon Consumer's 2004 bank credit agreement, plus accrued
interest and a prepayment fee, with the balance of the proceeds
being available for general corporate purposes, after paying
fees and expenses incurred in connection with consummating the
2006 Credit Facilities.

The interest rate on the 2006 Term Loan Facility, which was
fully drawn at the closing, was reduced from LIBOR plus 6.0% to
LIBOR plus 4.0%. The interest rate on the 2006 Revolving Credit
Facility, of which approximately US$57 million was drawn at the
closing, was reduced from LIBOR plus 2.5% to LIBOR plus 2.0%.  
The 2006 Term Loan Facility is guaranteed and secured by
substantially the same collateral package and guarantees that
secured the term loan facility of Revlon Consumer's 2004 bank
credit agreement, and the 2006 Revolving Credit Facility
continues to be guaranteed and secured by its existing
collateral package and guarantees.

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.


                         ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella
Mae Hechanova, Francois Albarracin, and Christian Toledo,
Editors.

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

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