TCRLA_Public/061227.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Wednesday, December 27, 2006, Vol. 7, Issue 256

                          Headlines

A R G E N T I N A

BALLY TECHNOLOGIES: Sells 9,000 Units of Gaming Devices
BANCO BISEL: Reorganization Proceeding Concluded
BOTAR SA: Bellani Named as Trustee for Bankruptcy Proceeding
CELESTINO F. SPAHN: Claims Verification Ends on Feb. 7, 2007
COPYL SA: Asks for Court Approval to Reorganize Business

EMPRESA CONSTRUCTORA: General Reports Due in Court on March 7
SUN MICROSYSTEMS: Brazilian Unit Eyes 20% Boost in 2007 Revenue
EUSAR SRL: Sets March 7 as Proofs of Claim Filing Deadline
VALEANT PHARMA: Ardea Biosciences Acquires Firm's Assets

* ARGENTINA: Not Obliged to Repay EUR770,000 to German Citizen

B A H A M A S

DYNAMIC LEISURE: Division Launches Winter Savings for Clients

B E R M U D A

CONVERIUM HOLDING: Closes US$295MM Sale of North American Assets
SEA CONTAINERS: Posts US$50.9 Million Net Loss in October 2006
SEA CONTAINERS: Files Schedules of Assets and Liabilities
TOP OF THE HILL: Final General Meeting Is Set for Jan. 10, 2007

B O L I V I A

* BOLIVIA: S&P Affirms B- Long-Term Sovereign Credit Ratings

B R A Z I L

AUTOCAM CORPORATION: Fails to Make December 15 Interest Payment
AUTOCAM CORP: Interest Non-Payment Cues S&P's Default Rating
AUTOCAM CORP: Moody's Changes Probability of Default Rating to D
DURA AUTOMOTIVE: Says Utilities Are Adequately Assured
DURA AUTO: Wants De Minimis Claims Settlement Protocol Approved

MRS LOGISTICA: S&P Affirms BB Local & Foreign Credit Ratings
USIMINAS: Nippon Steel Boosts Shares in Nippon Usiminas to 50.9%
USIMINAS: S&P Revises Outlook on BB Credit Ratings to Positive
VARIG: Leaving Star Alliance Group on Jan. 31, 2007

C A Y M A N   I S L A N D S

LATIN AMERICAN: Proofs of Claim Filing Is Until Dec. 28
MORE SOUTHWEST: Proofs of Claim Filing Is Until Dec. 28
PAX V: Deadline for Proofs of Claim Filing Is Set for Dec. 28
REPACKAGED ASIAN: Proofs of Claim Filing Is Until Dec. 28
SENECA CBO: Deadline for Proofs of Claim Filing Is on Dec. 28

SENECA CBO II: Deadline for Proofs of Claim Filing Is Dec. 28
SENECA CBO II LP: Proofs of Claim Filing Deadline Is Dec. 28
TETRIX FUND: Deadline for Proofs of Claim Filing Is on Dec. 28

C H I L E

CLAXSON INTERACTIVE: Selling Radio Chile Shares to Grupo Latino

C O L O M B I A

BANCOLOMBIA: Acquiring Banagricola & Subsidiaries for COP2,003MM

E C U A D O R

* ECUADOR: Bond's Price Fell on Default Threat

G U A T E M A L A

GOODYEAR & TIRE: Agrees on New Master Contract with Union

M E X I C O

AMERICAN TOWER: Board OKs Stock Option-Related Remediation Plan
BALLY TOTAL: Grants Stock Options to New Employees
CINRAM INTERNATIONAL: Launches Small Unitholder Selling Program
DAIMLERCHRYSLER: Truck Unit Eyes US$300 Million Plant in Mexico
DELTA AIR: Plan Filing Decision Wins Committee's Support

DELTA AIR: Classification & Treatment of Claims Under Plan
DELTA AIR: Enterprise Value Estimated at US$18.2-US$20.8 Billion
DELTA AIR: US Airways Rejection Will Not Affect S&P's D Rating
FEDERAL-MOGUL: Bankruptcy Court Okays Ernst & Young as Advisors
FEDERAL-MOGUL: Trizec to Serve on Asbestos Claimants Panel

FORD MOTOR: Expects to Become No. 3 as Toyota Gains No. 2 Rank
GLOBAL POWER: Committee Hires Schulte Roth as Counsel
GLOBAL POWER: Hires Alvarez & Marsal as Financial Advisor
GUESS?: Maurice Marciano Implements Trading Plan
MERIDIAN AUTO: Assumption of 43 Contracts & Leases Approved

METROFINANCIERA: Inks US$52.5 Million Credit Guarantee with IDB
NORTEL NETWORKS: Eastman Kodak Renews Three-Year Management Pact

P A N A M A

CLIENTLOGIC CORP: SITEL Corp. Amends Merger Agreement

* PANAMA: Inks Free Trade Agreement with the United States

P U E R T O   R I C O

ADELPHIA COM: Judge Gerber Defers Decision on Plan Confirmation
DEVELOPERS DIVERSIFIED: Reports Dividends on Classes H & I Stock
MAXXAM INC: Says Federal Deposit Tries to Evade Court Sanction

T R I N I D A D   &   T O B A G O

DIRECTV HOLDINGS: Fitch Affirms Issuer Default Rating at BB

U R U G U A Y

ABN AMRO: Moody's Ups Long-Term Foreign-Currency Rating to B2
BANCO DE LA REPUBLICA: Moody's Ups Foreign-Currency Rating to B2
BANCO HIPOTECARIO: Moody's Ups Foreign-Currency Rating to B2
BANCO SANTANDER: Moody's Raises Foreign-Currency Rating to B2
BANKBOSTON (URUGUAY): Moody's Ups Foreign-Currency Rating to B2

CREDIT URUGUAY: Moody's Ups Foreign-Currency Rating to B2
LLOYDS (URUGUAY): Moody's Ups Foreign-Currency Rating to B2
NAVIOS MARITIME: Negotiating Acquisition of Kleimar Shares

* URUGUAY: IMF Concludes Final Reviews Under Stand-By Agreement

V E N E Z U E L A

PETROLEOS DE VENEZUELA: Joining Chaco Gas Fields Dev. in Bolivia


                         - - - - -


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


BALLY TECHNOLOGIES: Sells 9,000 Units of Gaming Devices
-------------------------------------------------------
Bally Technologies, Inc., reported sales of approximately 9,000 gaming
devices, excluding OEM sales for the first half of fiscal year 2007,
compared with 6,500 in the first half of fiscal year 2006, at higher
average selling prices compared with the prior year.  Gross margins are
expected to improve in 2007.

Bally Technologies has filed form 10-Q for first two quarters of fiscal
year 2006.  The company discloses:

    -- A record number of gaming device purchase commitments
       from this year's G2E trade show in November 2006.

    -- 1,200 units currently installed on a participation basis
       at the Yonkers Raceway in New York and expectation of
       another 1,600 units to be operational by February 2007
       when expansion construction is expected to be completed.

    -- Increase in the current installed base of the Hot Shot
       Progressive game to 1,400 participation units.  The
       company also plans to introduce three new participation
       products by the fourth quarter of fiscal year 2007.

    -- Growth in the Systems business as a result of a number of
       new contracts and go-lives which are expected to drive
       revenue to more than US$65 million in the first half of
       fiscal year 2007 compared to US$46 million in the first
       half of fiscal 2006.  Gross margins on Systems revenue in
       the first half of fiscal year 2007 are expected to be
       lower than the first half of fiscal year 2006 due to the
       mix of hardware and software sales.

    -- Interest expense for the first half of fiscal year 2007
       is expected to be approximately US$17.5 million,
       reflecting higher market interest rates and fees on bank
       facilities.

    -- The increase in costs associated with impact of the
       reduction in the depreciable lives of certain leased
       products in fiscal year 2006 will decrease significantly
       in the second quarter of fiscal year 2007 and is not
       anticipated to have an impact on future financial
       results.

Richard Haddrill, chief executive officer of Bally Technologies, said,  "I
am pleased with the customer response at the recent G2E trade show in Las
Vegas and the continued progress we are making on our strategic and
profitability plans.  In the first half of our fiscal 2007, we are
beginning to see the benefits of our efforts."

Bally Technologies filed its Form 10-Qs for the quarters ended Sept. 30
and Dec. 31, 2005.  The company expects to file its Form 10-Q for the
quarter ended March 31, 2006, and its Form
10-K for the fiscal year ended June 30, 2006, before
March 15, 2007.  While the company believes it can achieve this filing
schedule, there can be no assurance that the schedule will be met.  As
previously disclosed, the company has not filed its Form 10-Q for the
quarter ended Sept. 30, 2006, and the company anticipates the filing of
its Form 10-Q for the quarter ending Dec. 31, 2006, will also be delayed.

Robert C. Caller, chief financial officer of Bally Technologies, stated,
"We are pleased to have completed these quarterly reports and continue to
work diligently on the remaining filings for fiscal 2006 and for the first
quarter of fiscal 2007.  I am also pleased that we continued our product
retooling during the six months ended Dec. 31, 2005, without a material
negative impact to our working capital."

Bally Technologies was undergoing a major product retooling during the
first half of fiscal year 2006 and recorded a loss of US$0.33 per share.
The loss includes US$0.07 per share related to stock compensation expense
and US$0.22 per share of expenses related to inventory obsolescence,
increased depreciation on participation games as a result of shortening
the estimated useful lives of those assets, accrual for the probable
settlement of class action litigation and higher than normal expenses
related to accounting and legal matters.

Total revenues for the second quarter of fiscal year 2006 increased to
US$128.4 million compared to total revenues of US$106.4 million for the
first quarter of fiscal year 2006 and US$124.5 million for the second
quarter of fiscal year 2005.

The average selling price of gaming devices in the first half of fiscal
year 2006 increased to approximately US$10,800 per unit compared to
approximately US$10,400 per unit in the first half of fiscal year 2005
reflecting a shift in the mix of Bally Technologies' gaming devices to its
new Alpha-based products.  Total gaming devices sold in the first half of
fiscal year 2006, excluding OEM units, totaled 6,463 units.

Selling, general and administrative costs increased US$4.4 million in the
first half of fiscal year 2006 compared to the first half of fiscal year
2005 reflecting the impact of increased legal and accounting costs related
to the restatement of financial information and other matters.

Interest expense increased US$5.4 million in the first half of fiscal year
2006 compared with the first half of fiscal year 2005 due to higher
interest rates and fees associated with Bally Technologies' bank facility.

As previously disclosed, the reduction in the depreciable lives of certain
of Bally Technologies' leased gaming equipment negatively impacted
financial results for its gaming operations business beginning in the
second quarter of fiscal 2006.   Gross margin for gaming operations of 39%
in the second quarter of fiscal year 2006 includes US$5.8 million of
depreciation related to this change.  This change has also negatively
affected the gross margin for gaming operations in the third and fourth
quarters of fiscal year 2006.

Gross margin for the systems business in the first half of fiscal 2006 was
82% compared with 79% for the first half of fiscal year 2005, reflecting a
higher mix of software versus hardware sales.

Cash and cash equivalents were US$24.6 million at Dec. 31, 2005, a
decrease from a balance of US$33.2 million at June 30, 2005.  Working
capital and debt levels remained relatively unchanged despite the Bally
Technologies' retooling efforts.  Accounts and notes receivable increased
US$24.1 million and deferred revenue increased US$26.4 million from June
30, 2005, to Dec. 31, 2005.

Bally Technologies anticipates reporting a net loss per diluted share of
between US$0.66 and US$0.76 for the year ended
June 30, 2006.  This estimated net loss includes stock compensation
expense of approximately US$0.16 per share and also includes charges of
approximately US$0.52 per share related to inventory obsolescence,
increased depreciation on participation games as a result of shortening
the estimated useful lives of those assets, accrual for the probable
settlement of class action litigation, write offs of certain other assets,
and higher than normal expenses related to accounting and legal matters.
It also includes an impairment charge on certain of Bally Technologies'
intangible assets of approximately US$0.11 per share.  In addition, as
previously reported, the company experienced lower gross margins on newer
gaming products in fiscal year 2006 as a result of introductory pricing
and high initial production costs.

As of Dec. 31, 2005, and Sept. 30, 2005, Bally Technologies was in
compliance with its financial covenants consisting of a leverage ratio, a
fixed charges coverage ratio and a minimum of Earnings Before Interest,
Taxes, Depreciation and Amortization (EBITDA).

As previously disclosed, Bally Technologies amended its bank facility to
extend the due date for the delivery of the company's Form 10-Q for the
quarter ended March 31, 2006, and its Form 10-K for the fiscal year ending
June 30, 2006, to
March 15, 2007.

Headquartered in Las Vegas, Nevada, Bally Technologies, Inc. (NYSE: BYI)
-- http://www.BallyTech.com/-- designs, manufactures, operates, and
distributes advanced gaming devices, systems, and technology solutions
worldwide.  Bally's product line includes reel-spinning slot machines,
video slots, wide-area progressives and Class II lottery and central
determination games and platforms.  Bally Technologies also offers an
array of casino management, slot accounting, bonus, cashless, and table
management solutions.  The company also owns and operates Rainbow Casino
in Vicksburg, Miss.  The company's South American operations are located
in Argentina.  The company also has operations in Macau, China, and India.

                        *    *    *

As reported in the Troubled Company Reporter on Aug. 16, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Technologies Inc., including the 'B' corporate credit rating, on
CreditWatch with negative implications.


BANCO BISEL: Reorganization Proceeding Concluded
------------------------------------------------
Banco Bisel SA concluded its reorganization process, according to data
released by Infobae on its Web site.  The conclusion came after a court in
Rosario, Santa Fe, approved the debt restructuring plan signed between
Banco Bisel and its creditors.


BOTAR SA: Bellani Named as Trustee for Bankruptcy Proceeding
------------------------------------------------------------
Court No. 6 in Buenos Aires has appointed Marcela Adriana Bellani to
supervise the bankruptcy proceeding of Botar SA.  Under bankruptcy
protection, control of the company's assets is transferred to Ms. Bellani.

As trustee, Ms. Bellani will:

   -- verify creditors' proofs of claim;

   -- prepare and present individual and general reports in
      court after the claims are verified; and

   -- administer Botar's assets under court supervision
      and take part in their disposal to the extent established
      by law.

Botar SA was forced into bankruptcy at the behest of Cooperativa Los
Olivos Ltda., which it owes US$8,468.06.

Clerk No. 11 assists the court in the proceeding.

The debtor can be reached at:

          Botar SA
          Maipu 26
          Buenos Aires, Argentina

The trustee can be reached at:

          Marcela Adriana Bellani
          Marcelo Torcuato de Alvear 1364
          Buenos Aires, Argentina


CELESTINO F. SPAHN: Claims Verification Ends on Feb. 7, 2007
------------------------------------------------------------
Carlos Guillermo Ingino, the court-appointed trustee for Celestino F.
Spahn SRL's reorganization proceeding, will verify creditors' proofs of
claim until Feb. 7, 2007.

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

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

Mr. Ingino will also submit a general report that contains an audit of
Celestino F. Spahn’s accounting and banking records.  The report
submission dates have not been disclosed.

Celestino F. Spahn's creditors will vote on a settlement plan that the
company will lay on the table.

The debtor can be reached at:

          Celestino F. Spahn SRL
          Obispo Boneo 4612
          Ciudad de Santa Fe
          Santa Fe, Argentina

The trustee can be reached at:

          Carlos Guillermo Ingino
          San Martin 3537
          Ciudad de Santa Fe
          Santa Fe, Argentina


COPYL SA: Asks for Court Approval to Reorganize Business
--------------------------------------------------------
Court No. 9 in Buenos Aires is studying the merits of Copyl SA’s petition
to reorganize its business after it stopped paying its obligations.

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

The court is assisted by Clerk No. 17.

The debtor can be reached at:

         Copyl SA
         Quesada 2132
         Buenos Aires, Argentina


EMPRESA CONSTRUCTORA: General Reports Due in Court on March 7
-------------------------------------------------------------
Court-appointed trustee Julio Cesar Pastor will on
March 7, 2007, present a general report on the reorganization of Empresa
Constructora Americana SA.

Mr. Pastor stopped verifying claims from Constructora Americana's
creditors on Nov. 7, 2006.  The verified claims were used as basis in
creating individual reports, which were presented in court on Dec. 21,
2006.

An informative assembly is set for May 23, 2007.

Constructora Americana started reorganization after a court in Puerto
Madryn in Chubut approved its petition to reorganize.

The debtor can be reached at:

         Empresa Constructora Americana SA
         9 de Julio 132
         Puerto Madryn, Chubut
         Argentina

The trustee can be reached at:

         Julio Cesar Pastor
         Mosconi 80
         Puerto Madryn, Chubut
         Argentina


SUN MICROSYSTEMS: Brazilian Unit Eyes 20% Boost in 2007 Revenue
---------------------------------------------------------------
Andre Echeveria -- marketing director of Sun Brasil, Sun Microsystems'
Brazilian subsidiary -- told Business News Americas that the firm expects
20% revenue growth next year, almost matching forecasts for 2006.

Meanwhile, Sun Brasil expects that its revenue would be 23% higher this
year, compared with last year, BNamericas says, citing Mr. Echeverria.

Mr. Echeverria told BNamericas that independent research implies that Sun
Microsystems has yearly revenues of over US$200 million in Brazil, and
this may reach US$250 million at the next assessment by analysts.

Sun Brasil expects to secure around 55% of its revenues from products and
45% from services in 2006, BNamericas notes, citing Mr. Echeverria.

BNamericas underscores that about 60% of revenues come from servers, while
40% come from storage.  Services revenues are divided between mission
critical support and professional client solutions, like integration
projects, and education or training activities.

Mr. Echeverria told BNamericas that the professional customer solutions
area is expected to increase.

The report says that Sun Microsystems landed a one-year, multi-million
dollar contract in October 2006 with Banco do Brasil to provide software
and integrate a portal.

Mr. Echeverria commented to BNamericas, "We hope that this milestone deal
with BB (Banco do Brasil) will change the history of our company... We
expect to win new contracts on the back of this deal by the end of June
[the end of Sun Microsystems' fiscal year]."

According to BNamericas, Sun Microsystems expects to grow in the low-end
server market with its Niagara product and partnership with AMD.

BNamericas emphasizes that Sun Microsystems invested over US$5 million in
the last three years in two data centers in Rio de Janeiro, as well as a
joint StorageTek-Sun Microsystems center in Sao Paulo.

Mr. Echeverria told BNamericas, "The center in Sao Paulo opened two weeks
ago."

BNamericas notes that Sun Microsystems bought storage solutions specialist
StorageTek in 2005 for US$4.1 billion.  StorageTek now accounts for about
one third of Sun Microsystem's revenues in Brazil.

Sun Microsystems has 350 workers in Brazil, including 100 StorageTek
employees.  It is likely to raise the workforce in June 2007, BNamericas
states, citing Mr. Echeverria.

Headquartered in Santa Clara, California, Sun Microsystems Inc.
-- http://www.sun.com/-- provides network computing
infrastructure solutions that include computer systems, data
management, support services and client solutions and
educational services.  It sells networking solutions, including
products and services, in most major markets worldwide through a
combination of direct and indirect channels.

Sun Microsystems conducts business in 100 countries around the globe,
including Latin America: Chile, Colombia, Brazil, Argentina, Mexico and
Venezuela.

                        *    *    *

As reported in the TCR-Europe on Oct. 26, Moody's Investors
Service has confirmed its Ba1 Corporate Family Rating for Sun
Microsystems Inc. in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the U.S. Technology Hardware
sector.

Sun Microsystems, Inc.'s 7-1/2% Senior Notes due Aug. 15, 2006,
and 7.65% Senior Notes due Aug. 15, 2009, carry Moody's
Investors Service's Ba1 rating and Standard & Poor's BB+ rating.


EUSAR SRL: Sets March 7 as Proofs of Claim Filing Deadline
----------------------------------------------------------
Court-appointed trustee Norma Fistzen will stop validating claims against
bankrupt company Eusar SRL after March 7, 2007.

Ms. Fistzen will present the validated claims in court as individual
reports.  The trustee will also submit a general report on the case.  The
report submission dates have not been disclosed.

Court No. 12 handles the company's bankruptcy case, with the assistance of
Clerk No. 23.

Eusar SRL entered bankruptcy at the behest of Silvia Altimari, after
failing to pay US$78,628.48.

The debtor can be reached at:

         Eusar SRL
         Estados Unidos 2002
         Buenos Aires, Argentina

The trustee can be reached at:

         Norma Fistzen
         Viamonte 1446
         Buenos Aires, Argentina


VALEANT PHARMA: Ardea Biosciences Acquires Firm's Assets
--------------------------------------------------------
Ardea Biosciences, Inc., fka IntraBiotics Pharmaceuticals, Inc., has
acquired significant intellectual property and other assets from Valeant
Pharmaceuticals International and hired a new senior management team.

With these developments, Ardea Biosciences will pursue three
pharmaceutical programs focused on the development of novel treatments for
HIV, cancer and inflammatory diseases.  The company changed its name to
Ardea Biosciences, Inc. effective Dec. 21, 2006, and expects that its
common stock will be traded under the new name and a new ticker symbol (to
be assigned by Nasdaq) in the near future.

On Dec. 21, 2006, Ardea Biosciences signed a definitive asset purchase
agreement with Valeant Pharmaceuticals.  Under this agreement, Ardea
Biosciences acquired substantially all of the assets, including
intellectual property, preclinical data, product inventory, and research
equipment, necessary for the company to pursue three distinct
pharmaceutical research and development programs.  The three programs are:

          -- 800 Series Program.  The 800 Series Program is
             Ardea Biosciences 's lead program, currently in
             late preclinical development, and is directed
             toward the discovery of non-nucleoside reverse
             transcriptase inhibitors (NNRTIs) for the potential
             treatment of HIV.  The lead clinical candidate from
             the program is AR806.  In vitro preclinical tests
             of AR806 have shown it to be a potent inhibitor of
             a wide range of HIV viral isolates, including
             isolates that are resistant to efavirenz
             (Sustiva(R), Bristol-Myers Squibb) and other
             currently available NNRTIs.  Based on early in
             vitro and in vivo preclinical data, the company
             anticipates that this compound could have a
             pharmacokinetics profile that would support
             formulation as a once-daily oral drug, may have
             limited pharmacokinetic interactions with other
             drugs, and may be readily co-formulated with other
             HIV antiviral drugs.  The company plans to initiate
             a Phase I clinical study of AR806 in the second
             quarter of 2007.

          -- 900 Series Program.  Ardea Biosciences 's 900
             Series Program, which is in early preclinical
             development, is also directed toward the discovery
             of NNRTIs for the potential treatment of HIV.  The
             compounds in the 900 Series Program are from a
             chemical class that is distinct from the chemical
             class being investigated in the 800 Series Program.
             Based on early preclinical data, the company
             believes that the compounds in the 900 Series
             Program may have the potential to improve the
             positive attributes of the compounds in the 800
             Series Program.  They appear to have greater
             activity against a wide range of drug-resistant
             viral isolates, may have the potential for once-
             daily oral dosing, and may be readily co-formulated
             with other HIV antiviral drugs.  The company hopes
             to be able to select a development candidate from
             this program in early 2007 and to initiate a Phase
             I clinical study of this candidate in the fourth
             quarter of 2007.

          -- 100 Series Program.  Ardea Biosciences' 100 Series
             Program, which is in preclinical development, is
             directed toward the discovery of small-molecule
             kinase inhibitors for the potential treatment of
             cancer and vinflammation.  AR119 is the company's
             lead development candidate from the 100 Series
             Program.  In early preclinical tests, AR119 has
             shown potential as a potent and selective inhibitor
             of MEK (Mitogen-activated ERK Kinase), which is
             believed to play an important role in cancer cell
             proliferation, apoptosis and metastasis as well as
             inflammatory cell signaling.  Preclinical data
             suggest that AR119 may have favorable
             pharmaceutical properties, including the potential
             for once-daily oral dosing.  The company hopes to
             initiate a Phase I clinical study of AR119 in the
             third quarter of 2007.

In connection with the launch of the research and development programs,
Ardea Biosciences has hired three key individuals to form a newly
constituted management team.  To support this new management team, the
company is in the process of hiring approximately 50 additional people,
many of whom used to work on the acquired programs at Valeant
Pharmaceuticals.

Once this hiring process is complete in early January 2007, Ardea
Biosciences expects to have a fully integrated research and development
organization.

Ardea Biosciences is moving its corporate headquarters to San Diego, CA,
and its research facilities will be located in Costa Mesa, CA.  The
company's new management team brings together extensive experience in the
development and commercialization of pharmaceutical products for the
treatment of HIV and cancer.  The team is comprised of:

          -- Barry D. Quart, as president, chief executive
             officer and director.  Dr. Quart has also been
             elected to Ardea Biosciences' board of directors.
             Dr. Quart has been President of Napo
             Pharmaceuticals, Inc. since 2002, which went public
             on the London Stock Exchange in July 2006.  Before
             Napo, Dr. Quart was senior vice president at Pfizer
             Global Research and Development and the director of
             Pfizer's La Jolla Laboratories.  Prior to Pfizer's
             acquisition of the Warner-Lambert Co., Dr. Quart
             was president of research and development at
             Agouron Pharmaceuticals, Inc., a division of the
             Warner-Lambert Co.  Dr. Quart joined Agouron in
             1993 and was instrumental in the development and
             registration of nelfinavir (Viracept(R)), which
             went from the lab bench to NDA approval in 38
             months.  Before Agouron, Dr. Quart spent over ten
             years at Bristol-Myers Squibb and was actively
             involved in the development and registration of
             important drugs for the treatment of HIV and
             Cancer, including paclitaxel (Taxol(R)), didanosine
             (Videx(R)), and stavudine (Zerit(R)).

          -- Zhi Hong, Ph.D., as executive vice president of
             research and chief scientific officer.  Dr. Hong
             was previously vice president of research at
             Valeant Pharmaceuticals, which he joined in 2000.
             During his tenure with Valeant Pharmaceuticals, Dr.
             Hong directed both the virology and
             cancer/immunology programs and held leadership
             positions on the HBV, HCV and HIV project teams
             that led to four US investigational new drug (IND)
             applications in six years.  Before joining Valeant
             Pharmaceuticals, Dr. Hong was with Schering-Plough
             Research Institute.  He is an expert in viral
             replication and a renowned investigator in the
             mechanism of action of ribavirin and interferon.

          -- Kimberly J. Manhard, as senior vice president of
             regulatory affairs and operations.  Ms. Manhard has
             been president of her own consultancy since 2003,
             specializing in the development of small molecules
             intended for antiviral, oncology, central nervous
             system, and gastrointestinal indications, and was
             responsible for filing five initial US INDs and
             multiple clinical trial applications in the
             European Union and Canada.  Prior to starting her
             consultancy, Ms. Manhard was vice president of
             regulatory affairs for Exelixis, Inc.  Previously,
             she was head of regulatory affairs for Agouron
             Global Commercial Operations (a Pfizer Company),
             supporting marketed HIV products.  She joined
             Agouron in 1996 as director of regulatory affairs
             and was responsible for anticancer and antiviral
             products, including nelfinavir.  Prior to Agouron,
             she was with Bristol-Myers Squibb for over 5 years
             in regulatory affairs.

          -- Denis Hickey, as chief financial officer.  Mr.
             Hickey has resigned as Ardea Biosciences' chief
             executive officer and will continue as chief
             financial officer.  Mr. Hickey had been the
             company's chief executive officer since June 2005,
             when the company ceased all operations, and was
             subsequently appointed as chief financial officer.
             Mr. Hickey is a founding principal of Hickey &
             Hill, Inc., a firm that specializes in the
             Management of companies in transition.  Mr. Hickey
             has served as chief executive officer, chief
             financial officer or controller for a number of
             companies.  Mr. Hickey also has public accounting
             and consulting experience with Touch Ross & Co.
             (now Deloitte & Touche, LLP).

Ardea Biosciences believes that there is a significant market opportunity
for its products, should they be successfully developed, approved and
commercialized.

In 2005, the worldwide market for HIV antivirals was estimated at
approximately US$8.0 billion, according to data from IMS Health
Incorporated's Retail Drug Monitor.  While the treatment of HIV has
improved dramatically over the past decade, there remains a need for new
treatments that are effective against drug-resistant virus, well tolerated
and convenient to take.  Ardea Biosciences believes that its 800 and 900
Series NNRTIs have the potential to meet this market need.

Ardea Biosciences believes that there is a growing interest in the
potential for targeted therapies, including kinase inhibitors, in the
treatment of both cancer and inflammatory disease.  In 2005, the worldwide
market for targeted therapies for cancer was US$7.5 billion, according to
Datamonitor plc, and the worldwide market for targeted therapies for
inflammatory diseases was more than US$8 billion, according to data from
IMS Health Incorporated.  Given the role that MEK appears to play in
cancer and inflammatory diseases and the increasing preference for oral
therapies, the company believes that AR119, if successfully developed,
approved and commercialized, could participate in these growing markets.

In consideration for the purchased assets from Valeant Pharmaceuticals,
subject to certain conditions, Valeant has the right to receive
development-based milestone payments and sales-based royalty payments from
Ardea Biosciences.

Assuming the successful commercialization of a product incorporating a
compound from the 800 Series Program or the 900 Series Program, these
milestone payments could total US$25 million.  For the 100 Series Program,
milestone payments could total US$17 million, assuming the successful
commercialization of a product from that program.  For each program,
milestones are paid only once regardless of how many compounds are
developed or commercialized.  In each program, the first milestone payment
would be due after the completion of a proof-of-concept clinical study in
patients, and more than half of the total milestone payments would be due
after regulatory approval.  The royalty rates on all products are in the
mid-single digits.  Ardea Biosciences agreed to further develop the
programs with the objective of obtaining marketing approval in the United
States, the United Kingdom, France, Spain, Italy and Germany.

Valeant Pharmaceuticals also has the right to exercise a one-time option
to repurchase commercialization rights in territories outside the US and
Canada for Ardea Biosciences' first NNRTI derived from the acquired
intellectual property to advance to Phase 3.  If Valeant Pharmaceuticals
exercises this option, which it can do following the completion of Phase
2b but prior to the initiation of Phase 3, Ardea Biosciences would be
responsible for completing the Phase III studies and for the registration
of the product in the US and European Union.

Valeant Pharmaceuticals would pay Ardea Biosciences a US$10 million option
fee, up to US$21 million in milestone payments based on regulatory
approvals, and a mid-single digit royalty on product sales in the Valeant
Pharmaceuticals territories.

Ardea Biosciences also has entered into a research services agreement with
Valeant Pharmaceuticals under which it will advance a preclinical program
in the field of neuropharmacology on behalf of Valeant Pharmaceuticals.
Under the agreement, which has a one-year term with an option to extend,
Valeant Pharmaceuticals will pay Ardea Biosciences up to US$3.5 million
annually to advance the program, and Ardea Biosciences is entitled to
development-based milestone payments of up to US$1.0 million.  Valeant
Pharmaceuticals will own all intellectual property under this research
program.

Ardea Biosciences is focusing its development efforts on disease areas in
which it believes it can reach clinical proof-of-concept relatively
quickly.  For 2007, the company hopes to achieve the following clinical
milestones:

    * Commence Phase 1 clinical trials with AR806 in the second
      quarter of 2007,

    * Commence Phase 1 clinical trials with AR119 in the third
       quarter of 2007,

    * Commence Phase 1 clinical trials with an NNRTI from the
      900 Series in the fourth quarter of 2007,

    * Commence a Phase 2a, proof-of-concept study with AR806
      before the end of 2007

Ardea Biosciences projects that it will have cash, cash equivalents, and
short-term investments of approximately US$48.3 million on Dec. 31, 2006,
a reduction of US$0.7 million from Sept. 30, 2006.  For 2007, Ardea
Biosciences expects to use approximately US$16-20 million in net cash
resources to fund operations and expects to end 2007 with approximately
US$28-32 million in cash, cash equivalents, and short-term investments.

Ardea Biosciences expects its current cash resources to fund operations
through 2008.  These projections exclude any potential impact of any
future business development activity.

                  About Ardea Biosciences

Ardea Biosciences is focused on the discovery, development and
commercialization of novel treatments for HIV, cancer and inflammatory
diseases.

               About Valeant Pharmaceuticals

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International (NYSE:VRX) -- http://www.valeant.com/is a
research-based specialty pharmaceutical company that discovers,
develops, manufactures and markets products primarily in the
areas of neurology, infectious disease and dermatology.  The
company has offices in Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 20, 2006, Standard &
Poor's Ratings Services lowered its ratings on Costa Mesa,
California-based Valeant Pharmaceuticals International.  The corporate
credit rating was lowered to 'B+' from 'BB-'.  The ratings remain on
CreditWatch with negative implications, where they were placed Oct. 24,
2006, to reflect the ongoing uncertainty regarding the company's inability
to file its Form 10-Q for the third quarter and the consequences if the
company is not able to resolve the situation in 60 days.


* ARGENTINA: Not Obliged to Repay EUR770,000 to German Citizen
--------------------------------------------------------------
Germany's Constitutional Court in Karlsruhe ruled that Argentina was not
obliged to repay EUR770,000 to a German citizen, citing diplomatic
immunity for Argentine government assets in Germany.

The American Task Force Argentina or ATFA then expressed disappointment
over the German court's decision rejecting a request for Argentina to
repay over US$1 million owed to a German citizen holding delinquent
Argentine bonds.

Dr. Robert Shapiro, co-chairperson in ATFA, commented, "This court
decision may reinforce Argentina's defiance when it comes to honoring its
sovereign debt obligations.  Governments should make it clear that
Argentina's refusal to honor its debts will only further damage its
prospects of attracting international investment and weaken confidence in
its economic future."

Argentina defaulted on more than US$95 billion in sovereign debt in
December of 2001, the largest such default in history. According to recent
analysis, the default and the subsequent restructuring cost investors and
taxpayers worldwide about US$140 billion.  More than US$20 billion in
bonds remain outstanding.

ATFA, through a variety of events and research initiatives, works to
encourage the United States government and other Argentine debt
stakeholders to take action on behalf of American and foreign taxpayers,
businesses and bondholders harmed by the default and restructuring.

ATFA's website, http://www.atfa.org,serves as a clearinghouse for news
and information related to Argentina's restructuring and the ATFA's
efforts.

Made up of major creditor groups, the ATFA is co-chaired by The
Honorable Robert J. Shapiro, former Under Secretary of Commerce for
Economic Affairs in the Clinton Administration, and Ambassador Nancy
Soderberg, Ambassador at the U.S. Mission to the United Nations in New
York from 1997 to 2001.

                        *    *    *

Fitch Ratings assigned these ratings on Argentina:

                     Rating     Rating Date

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




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


DYNAMIC LEISURE: Division Launches Winter Savings for Clients
-------------------------------------------------------------
Changes in L'Attitudes, a division of Dynamic Leisure Corp., is
introducing New Year's savings.  Packages start at US$479 per person for 4
days or 3 nights at the Nassau Palm Resort in the Bahamas.  Other popular
destinations throughout the Caribbean are available and are designed to
fit any traveler's style.

Bahamas      Viva Wyndam     from US$479   All-inclusive resort
             Fortuna Beach   per person

Jamaica      Sunset Jamaica  from US$529   All-inclusive resort
             Grande          per person,
                             price includes
                             transfers

Dominican    Breezes Puerto  from US$557   All-inclusive resort
Republic     Plata           per person,
                             price includes
                             transfers

St. Lucia    Coco Kreol      from US$599

Package prices are based on double-occupancy and mid-week, economy round
trip air from New York -- for 4 days or 3 nights.  Includes hotel
accommodations, hotel taxes and service fees.  Air fees, fuel surcharges
and other taxes do not apply.  Packages available from all gateways.
Travel based on fall/winter availability and rates subject to change
without notice.

                    Going Concern Doubt

Salberg & Company, PA, expressed substantial doubt about
Dynamic Leisure's ability to continue as a going concern after
it audited the company's financial statements for the year ended
Dec. 31, 2005.  The auditing firm pointed to the company's
losses, working capital deficit, accumulated deficit,
stockholders' deficit and loan defaults.

                   About Dynamic Leisure

Headquartered in Tampa, Florida, Dynamic Leisure Corp. --
http://www.dylicorp.com/-- operates as an international online
travel package technology company.  It provides packaged
domestic and international vacations to travel agencies and
other travel resellers using proprietary packaging computer
software and broadband communication technology.  Its featured
destinations include the Caribbean, Mexico, and Europe, as well
as leisure U.S. destinations, such as Florida, California, and
Las Vegas.




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


CONVERIUM HOLDING: Closes US$295MM Sale of North American Assets
----------------------------------------------------------------
Converium Holding AG disclosed, following the receipt of all necessary
regulatory approvals, the closing of the sale of its North American
operations to National Indemnity Company.

Inga Beale, chief executive officer, said: "With the announcement, we have
achieved finality on our North American operations.  The closing of the
transaction meets a major condition for a ratings upgrade by Standard &
Poor's."

The company disclosed, on Oct. 17, 2006, that it has signed a definitive
agreement to sell its North American operations to National Indemnity
Company for a total consideration of
US$295 million comprised of US$95 million in cash and US$200 million in
assumption of debt.

The closing of the sale will reduce the company's exposure significantly
as National Indemnity Company will assume all of the North American
operations' reinsurance liabilities of
US$1.06 billion as of June 30, 2006, as well as US$200 million of debt
issued by Converium Holdings (North America) Inc.

              About National Indemnity Company

National Indemnity Company is a property/casualty member of the Berkshire
Hathaway group of insurance companies, which focuses on commercial auto
and general liability market.

                 About Converium Holding AG

Headquartered in Zug, Switzerland, Converium Holding AG
(NYSE: CHR) -- http://www.converium.com/-- provides treaty and individual
coverage for risks including accident and health, credit and surety,
e-commerce, third party and professional liability, life, and special
casualty.   The company also operates in Germany, United Kingdom, France,
Malaysia, Singapore, Australia, Japan, Bermuda, Argentina, U.S.A., Brazil
and Canada.

                        *    *    *

In October 2006, Fitch Ratings placed Swiss-based Converium AG's Insurer
Financial Strength BBB- rating on Rating Watch Positive. The agency has
also placed other ratings within the Converium group on RWP.

Converium group ratings are: Converium AG's IFS BBB- on RWP; Converium
AG's Issuer Default rating BBB- on RWP; Converium Insurance (U.K.)
Limited's IFS BBB- on RWP; Converium Ruckversicherungs (Deutschland) AG's
IFS BBB- on RWP; Converium Holding AG's IDR BB on RWP; and Converium
Finance S.A.'s US$200 million subordinated debt due 2032 BB+ on RWP.


SEA CONTAINERS: Posts US$50.9 Million Net Loss in October 2006
--------------------------------------------------------------

                     Sea Containers, Ltd.
                    Unaudited Balance Sheet
                    As of October 31, 2006

                            Assets

Current Assets
   Cash and cash equivalents                      US$52,084,064
   Trade receivables, less allowances
     for doubtful accounts                            1,197,118
   Due from related parties                          10,077,614
   Prepaid expenses and other current assets          4,369,498
                                                   ------------
      Total current assets                           67,728,294

Fixed assets, net                                             -

Long-term equipment sales receivable, net                     -
Investment in group companies                                 -
Intercompany receivables                                      -
Investment in equity ownership interests            199,120,137
Other assets                                          3,454,797
                                                   ------------
Total assets                                     US$270,303,229
                                                   ============

             Liabilities and Shareholders' Equity

Current Liabilities
   Accounts payable                                     $14,462
   Accrued expenses                                  24,978,283
   Current portion of long-term debt                 26,042,311
   Current portion of senior notes                  385,040,923
                                                   ------------
      Total current liabilities                     436,075,980

Total shareholders' equity                         (165,772,752)
                                                   ------------
Total liabilities and shareholders' equity       US$270,303,228
                                                   ============

                     Sea Containers, Ltd.
               Unaudited Statement of Operations
             For the Month Ended October 31, 2006

Revenue                                            US$2,938,790

Costs and expenses:
   Operating costs                                      407,541
   Selling, general and administrative expenses      (8,560,523)
   Charges to provide against
     intercompany accounts                          (39,630,334)
   Depreciation and amortization                         58,700
                                                   ------------
      Total costs and expenses                      (47,724,616)
                                                   ------------
Loss on sale of assets                               (1,681,276)
                                                   ------------
Operating (loss) income                             (46,467,102)

Other income (expense)
   Interest income                                      141,572
   Foreign exchange gains (losses)                       26,875
   Interest expense, net                             (4,554,537)
                                                   ------------
(Loss) Income before taxes                          (50,853,192)
Income tax expense                                     (100,000)
                                                   ------------
Net (loss)                                       (US$50,953,192)
                                                   ============

A full-text copy of the Debtors' schedules of cash receipts and
disbursements is available for free at
http://ResearchArchives.com/t/s?1776

   http://bankrupt.com/misc/SeaContainers

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

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

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 7; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


SEA CONTAINERS: Files Schedules of Assets and Liabilities
---------------------------------------------------------

A.   Real Property                                         none

B.   Personal Property
B.1  Cash on Hand                                          none
B.2  Bank Accounts
        Bank of America - London, UK
           Acct# *****015                             US$89,522
           Acct# *****023                                     -
        Bank of Bermuda
           Acct# *****52590                              27,029
           Acct# *****5539                                1,865
        Bank of Scotland - Leeds, UK
           Acct# *****001                                     -
           Acct# *****242                                 1,143
           Acct# *****USD01                                 435
        Barclays Bank PLC - London, UK                       27
        Barclays - London, UK                           464,750
        Commerce Bank - Delaware, USA                   250,970
        JPMorgan Chase Bank - London, UK
           Acct# *****501                                79,770
           Acct# *****702                                     -
           Acct# *****704                                40,906
           Acct# *****705                                     -
           Acct# *****706                                32,148
        JPMorgan Chase Bank - New York, USA
           Acct# *****382                                40,700
           Acct# *****705                                15,302
        HSBC - NY                                       131,685
        NatWest PLC - London, UK                          6,749
        Societe Generale & Investment Bank           48,915,946
        Societe Generale - London, UK                     2,671
B.3  Security Deposits                                     none
B.4  Household goods                                       none
B.5  Book, art work & collectibles                         none
B.6  Wearing apparel                                       none
B.7  Furs and jewelry                                      none
B.8  Firearms and sporting goods                           none
B.9  Interests in Insurance Policies                    unknown
B.10 Annuities                                             none
B.11 Interests in retirement plans                         none
B.12 Stock and Interests                                   none
B.13 Stocks and Interests in Businesses                 unknown
B.14 Interests in Partnerships or Joint Ventures
        Orca Line - less than 50% ownership              65,741
        West Star - less than 50% ownership               2,289
        Sociate Bananiere de Motobe SA                  unknown
        Alliance Reefer Container Line                  unknown
B.15 Bonds                                                 none
B.16 Accounts Receivable
        Trade
           Containerships, Ltd. OY                       88,932
           Havana Club International SA                  87,003
           Islamic Republic of Iran                   1,269,761
           JSV Logicstic SL                              57,841
           Naviera Pinillos SA                          114,018
           Nenufar Shipping SA                           87,025
           Orient Express Hotels Ltd.                   215,336
           Reef Shipping Ltd.                            57,096
           Servinaves Panama SA                         773,977
           Others                                       455,317
        Unallocated Cash                               (830,269)
        Unpaid Commissions to Container Lease Agents     (9,933)
        Unpaid Commissions
           to be written off in Oct. 2006              (156,488)
        Provisions for Bad Debt                      (1,549,921)
        Advance Billings                               (320,429)
        GE SeaCo                                     10,104,217
        Pescara                                         450,000
        SNAV                                             96,879
        Deposits                                        651,653
        Share Option Loans                               59,309
        Insurance Recovery                               44,681
        Other                                             2,188
B.17 Alimony                                               none
B.18 Other liquidated debts owed                           none
B.19 Equitable and future interests                        none
B.20 Contingent Interests                                  none
B.21 Other Contingent & Unliquidated Claims                none
B.22 Intellectual Property                              unknown
B.23 General Intangibles                                unknown
B.24 Customer Lists                                        none
B.25 Automobiles                                           none
B.26 Boats                                                 none
B.27 Aircraft                                              none
B.28 Office Equipment                                      none
B.29 Machinery, furniture and fixtures                     none
B.30 Inventory                                             none
B.31 Animals                                               none
B.32 Crops                                                 none
B.33 Farm Equipment & Implements                           none
B.34 Farm Supplies                                         none
B.35 Other Personal Property
        Prepaid Expenses
           Annual Government Fees                        46,238
           Insurance                                     65,031
           Professional Advisors                        370,000
           Other Prepayments                              1,610
        Long-term asset sales receivables                     -

     TOTAL SCHEDULED ASSETS                       US$62,400,718
     ==========================================================

C.   Property Claimed as Exempt                  not applicable

D.   Secured Claim                                         none

E.   Unsecured Priority Claims                             none

F.   Unsecured Non-priority Claims
        Atlantic Maritime Services                 US$3,184,811
        Contender 2                                   5,116,079
        James B. Sherwood                             1,435,961
        Marine Container Insurance Co. Limited       11,709,727
        S C Iberia                                    5,896,016
        SC Finland Services                          18,306,919
        SC Holdings                                  17,052,664
        Sea Containers Australia Ltd.                 7,451,487
        Sea Containers Ports & Ferries Ltd           80,680,292
        Sea Containers UK                           953,472,122
        Societe Bananiere De Motobe                   1,532,743
        SPCP                                         19,556,914
        Superseacat 2 Ltd.                            1,697,564
        The Bank of New York                         19,200,000
        The Bank of New York                        103,000,000
        The Illustrated London News Group            17,553,770
        U.S. Trust Company of New York              115,000,000
        U.S. Trust Company of New York              149,800,000
        Yorkshire Marine Containers Ltd.             13,030,555
        Others                                          706,459

     TOTAL SCHEDULED LIABILITIES               US$1,545,384,083
     ==========================================================

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

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

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 7; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


TOP OF THE HILL: Final General Meeting Is Set for Jan. 10, 2007
---------------------------------------------------------------
Top of the Hill Ltd.'s final general meeting will be at 10:00 a.m. on Jan.
10, 2007, or as soon as possible, at the liquidator's place of business.

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

The liquidator can be reached at:

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




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


* BOLIVIA: S&P Affirms B- Long-Term Sovereign Credit Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B-' long-term sovereign
credit ratings on the Republic of Bolivia.  Standard & Poor's also
affirmed its 'C' short-term sovereign credit ratings on the republic.  The
outlook on the long-term ratings remains negative.

According to Standard & Poor's sovereign analyst Sebastian Briozzo,
despite the recent improvement in most of the country's indicators,
Bolivia's ratings continue to be severely constrained by a weak political
situation that is characterized by strong and growing divisions among
regional, social and ethnic lines.

"Increasing political polarization, even in the context of good economic
indicators, highlights the dimension of the challenges ahead," Mr. Briozzo
said.  "The government will have to deal with a fragile political
environment within a context of less-favorable—albeit still high—commodity
prices expected over the next two years, further enhancing the challenges
facing Bolivia and supporting the continuation of the negative outlook on
the ratings," he added.

Mr. Briozzo explained that after nearly two years of strong political
instability, the election of Evo Morales as Bolivia's president in
December 2005 presented a new opportunity for a country highly immersed in
a deep political crisis.  "While Morales was elected by a significant
majority, the dominant factors currently under political debate are
exacerbating the divisions in the country rather than contributing to its
stabilization," added Mr. Briozzo.  "These factors include the request for
greater autonomy in some regions, the debate on the relevance to be paid
to the Constitutional Assembly regarding the rebuilding of the country's
institutional framework, prospects for land reform, and measures for
nationalizing Bolivia's hydrocarbon sector," he said.

Standard & Poor's said that sustaining basic levels of governability will
remain a challenging task for Bolivia's administration.  The government's
political agenda in recent months has been directed more toward containing
political and social discontent than regaining political momentum and
promoting a basic consensus that could stabilize the political situation
in the country and help rebuild its institutions.

The economy is performing very well despite the country's politics,
although it continues to be highly dependent upon high oil and metal
prices.  An estimated real GDP growth of 4.1% for 2006 will lead to three
consecutive years of growth at that level, and growth could still reach a
level close to 3% by 2008 if the political situation does not worsen.
Bolivia's fiscal position has strengthened substantially, backed by strong
fiscal revenue flows coming from both high prices on hydrocarbons and the
increase on the tax burden on the foreign companies operating in the
sector and the continuation of debt relief initiatives.

"Bolivia's ability to honor its domestically issued government bonds could
be threatened if political developments worsen, and signs of a further
deterioration in governability might trigger a downgrade," noted Mr.
Briozzo.

"Conversely, the emergence of a solution to the country's immediate
political agenda that has sufficient support across political parties and
social groups and further improvement in Bolivia's vulnerability
indicators could stabilize the country.  Such a political agreement would
therefore constitute a positive rating factor, and might lead to a
revision of the outlook back to stable," he concluded.




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


AUTOCAM CORPORATION: Fails to Make December 15 Interest Payment
---------------------------------------------------------------
Autocam Corporation, in a regulatory filing with the U.S. Securities and
Exchange Commission, disclosed that it failed to make the semi-annual
interest payment of US$7.6 million due
Dec. 15, 2006, under its US$140 million of outstanding 10.875% senior
subordinated notes due June 2014.

The company says that the non-payment of interest due on the Notes
triggers a 30-day grace period during which payment can be made before
triggering an event of default under the indenture governing the Notes and
cross-default provisions under agreements covering its senior secured
credit facilities and its second lien credit facility.

                    Noteholders' Proposal

The company says that on Dec. 14, 2006, it received a proposal signed by
the holders of 85% of the Notes concerning the terms of a possible
recapitalization of Autocam.  As part of the proposed recapitalization,
the company's Noteholders would purchase US$85 million of newly issued
equity securities in the form of a payment-in-kind preferred stock and
convert the Notes into 100% of the common equity of Autocam.  As of Dec.
14, 2006, the company had US$108.1 million in borrowings outstanding under
its senior secured credit facilities and US$77.6 million in borrowings
outstanding under its second lien credit facility, including accrued
paid-in-kind interest.

The proposal anticipates that the indebtedness under the company's second
lien credit facility will be repaid in full with proceeds of the PIK
Preferred Equity and any excess would be used to satisfy expenses of the
transaction and increase working capital.  It is also anticipated that the
company's senior secured credit facilities would be reinstated or
refinanced on market terms.  After completion of the recapitalization, it
is anticipated that the company would have approximately US$110.0 million
of funded secured indebtedness.

The company relates that the proposal would significantly enhance its
financial strength and operational flexibility, which would benefit all of
its stakeholders.  The recapitalization would improve short- and long-term
liquidity on a global basis, allowing the company to better serve its
customers, meet its debt service and working capital requirements and fund
capital expenditures for new programs.

The company discloses that the proposal is subject to approval by its
board of directors and equity holders and is subject to final
negotiations, documentation and customary conditions of closing.

                   About Autocam Corporation

Autocam Corporation, headquartered in Kentwood, Michigan, is a
manufacturer of extremely close tolerance precision-machined,
metal alloy components, sub-assemblies and assemblies, primarily
for performance and safety critical automotive applications.
Revenues in 2005 were approximately US$350 million from operations in
North America, Europe, and Brazil.


AUTOCAM CORP: Interest Non-Payment Cues S&P's Default Rating
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its 'CC' corporate credit and
'C' subordinated note ratings on Autocam Corp. to 'D'.

At the same time, the 'CC' rating and '2' recovery rating on the senior
secured credit facilities were withdrawn, because the company reported
that it expects to reinstate or refinance its senior secured credit
facilities.  In addition, all ratings were removed from CreditWatch with
negative implications where they were placed on Nov. 22, 2006.

The ratings actions follow the company's failure to pay its semi-annual
US$7.6 million interest payment due on
Dec. 15, 2006, on its US$140 million senior subordinated notes.

Following the nonpayment of interest, Autocam received a recapitalization
proposal from the note holders under which they offered to purchase newly
issued PIK preferred equity securities and convert their notes into 100%
of the common equity of Autocam.  Indebtedness under the company's
second-lien credit facility would, under the proposal, be repaid in full
with proceeds of the PIK preferred equity.  The senior secured credit
facilities would be reinstated or refinanced.


AUTOCAM CORP: Moody's Changes Probability of Default Rating to D
----------------------------------------------------------------
Moody's Investors Service lowered Autocam Corporation's Probability of
Default Ratings to D from Ca.

Ratings on Autocam's senior secured first lien facilities and senior
subordinated notes were confirmed although the expected loss rates on
those issues have increased from the assumed higher probability of
default.

The company's Speculative Grade Liquidity rating was also affirmed at
SGL-4.  The actions comes after the disclosure by Autocam in an 8-K filing
on Dec. 15 that it had failed to pay interest on its subordinated notes on
Dec. 15, and it had entered into a 30 day grace period under that
obligation.  Autocam further disclosed in the filing it had received a
proposal signed by 85% of its subordinated note holders to recapitalize
the company.

The rating is stable at the new PDR.

Rating changed:

   * Autocam Corp.

      -- Probability of Default, D from Ca

Ratings confirmed:

   * Autocam Corp.

      -- Corporate Family Rating, Ca
      -- First lien revolving credit, Caa1 LGD2, 20%
      -- First lien term loan, Caa1 LGD2, 20%
      -- Senior Subordinated Notes, C LGD5, 85%

Ratings Affirmed:

   * Autocam France SARL

      -- Speculative Grade Liquidity rating, SGL-4
      -- First lien revolving credit, Caa1 LGD2, 20%
      -- First lien term loan, Caa1, LGD2, 20%

The last rating action was on Nov. 27, 2006 at which time ratings were
lowered and placed under review for possible further downgrade.

Approximately US$7.6 million of interest on Autocam's subordinated notes
was due on Dec. 15 and was not paid.  Interest payments of roughly US$2.7
million on Autocam's US$77.6 million second lien credit facility plus
interest on US$108.1 million of senior secured bank debt are due on Dec.
31, 2006.  In mid-November, Autocam disclosed it had approximately US$13
million of consolidated cash and US$1.2 million of remaining availability
under its revolving credit facilities.

The Probability of Default rating of D signifies an elevated risk profile
flowing from the company's failure to make a payment when due under its
subordinated notes.  In the absence of resolution during the applicable
30-day grace period, holders of the subordinated notes could accelerate
their claims.  Autocam faces challenges from approaching interest payments
on its secured credit facilities as well as obtaining requisite approvals
and satisfying the conditionality of the proposed recapitalization to
avoid default on its other obligations.

While higher expected loss percentages result from the change in the
probability of default, they remain within the range for their respective
ratings at both the Corporate Family level and for the rated obligations.
Hence, existing long-term ratings have been confirmed.  The Caa1 rating on
the secured bank debt continues to reflect the benefits of a first lien
priority and the amount of junior capital beneath their claims.  The C
rating on the subordinated notes incorporates this junior position and
resultant loss experience in default scenarios.  The second lien credit
facility is not rated.

The SGL-4 rating continues to represent a poor liquidity profile arising
from the pending default which may arise should there be no resolution
during the grace period, limited, if any, remaining external liquidity,
prospective covenant compliance issues noted in the company's November SEC
filing, and an unlikely ability to arrange any incremental sources of
alternative liquidity given the extensive amount of secured obligations in
its existing capital structure.

Autocam Corporation, headquartered in Kentwood, Michigan, is a
manufacturer of extremely close tolerance precision-machined, metal alloy
components, sub-assemblies and assemblies, primarily for performance and
safety critical automotive applications. Revenues in 2005 were
approximately US$350 million from operations in North America, Europe, and
Brazil.


DURA AUTOMOTIVE: Says Utilities Are Adequately Assured
------------------------------------------------------
The Honorable Kevin J. Carey of U.S. Bankruptcy Court for the District of
Delaware granted, on an interim basis, the request of DURA Automotive
Systems Inc. to:

     (i) prohibit utility companies from altering, refusing, or
         discontinuing any utility services to the Debtors;

    (ii) determine that utility companies have adequate
         assurance of payment within the meaning of Section 366
         of the Bankruptcy Code, without the need for payment of
         additional deposits or security; and

   (iii) establish the procedures for resolving requests by
         utility companies for additional or different
         assurances of future payment.

In the operation of their facilities, the Debtors incur utility expenses
for water, sewer service, electricity, natural gas, and telephone service
in the ordinary course of business.

Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, discloses that as of
Oct. 26, 2006, approximately US$700,000 in utility costs were outstanding,
and the Debtors do not owe any past due amounts.

Mr. Collins informs the Court that should the utility companies refuse or
discontinue service, even for a brief period, the Debtors' business
operations will be severely disrupted.  An interruption of utility
services would negatively impact the Debtors' business operations,
customer relationships, revenue and profits, seriously jeopardizing the
Debtors' reorganization efforts.

                 Proposed Adequate Assurance

The Debtors propose to provide an interim adequate assurance to the
utility companies by making a deposit equal to two weeks of utility
service, calculated as a historical average over the past 12 months, to
those utility companies with average monthly service charges of US$500 or
greater.

Based on a review of the their books and records, the Debtors believe that
with respect to those utility companies with average monthly service
charges less than US$500 -- the De Minimis Providers -- all accounts are
current and no Prepetition amounts are owed.  Accordingly, the Debtors
propose to provide notice to the De Minimis Providers that they will not
receive an adequate assurance deposit unless agreed to by the Debtors or
ordered by the Court.

             Requests for Additional Assurances

Pursuant to Section 366 of the Bankruptcy Code, for the first 30 days
after the bankruptcy filing, a utility is barred from discontinuing
service to a debtor solely on the basis of the bankruptcy filing or the
non-payment of a prepetition debt. Following that period, however,
utilities may discontinue services if the debtor does not provide adequate
assurance of future performance of its postpetition obligations.

The Debtors are concerned that the utility companies may discontinue
service, without warning, 30 days after the bankruptcy filing, if they
claim they have not yet received a "satisfactory" adequate assurance
payment.

Accordingly, the Debtors propose they will entertain requests for
additional adequate assurance in the form of a deposit or other security,
subject to these procedures:

    (a) The request must be in writing and set forth:

        (1) the location for which the utility services are
            provided,

        (2) a summary of the Debtors' payment history relevant
            to the affected accounts, including any security
            deposits; and

        (3) explanation why the utility company believes the
            proposed adequate assurance is not sufficient
            adequate assurance of future payment;

    (b) The request for additional adequate assurance must be
        served on the Debtors on these three addresses to be
        deemed valid:

          * Dura Automotive Systems, Inc.
            2791 Research Drive
            Rochester Hills, Michigan 48309
            Attn: Keith Marchiando

          * Counsel to the Debtors
            Kirkland & Ellis LLP
            200 East Randolph Drive
            Chicago, Illinois 60601
            Attn: Roger J. Higgins and Ryan B. Bennett

          * Office of the United States Trustee
            for the District of Delaware
            844 King Street
            Suite 2207, Lockbox 35
            Wilmington, Delaware 19801

    (c) If a utility company timely files a request that the
        Debtors believe is unreasonable, the Debtors will file a
        motion for determination of adequate assurance of
        payment and schedule a hearing as soon as practicable
        after receiving the request and discussing the request
        with the utility company; and

    (d) Any utility company that does not timely file a request
        will be prohibited from discontinuing, altering, or
        refusing service to the Debtors and will be deemed to
        have adequate assurance.

               Utilities Covered in the Request

The Debtors have identified more than 125 utility companies that provide
them with services through over 350 accounts.  They reserve the right to
identify additional utilities.

A 24-page list of Dura's Utility Service Providers is available for free
at http://ResearchArchives.com/t/s?1734

The Debtors will serve a copy of the Utility Injunction Order to all the
utility companies.

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 Del. 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. 3; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTO: Wants De Minimis Claims Settlement Protocol Approved
---------------------------------------------------------------
DURA Automotive Systems Inc. and its debtor affiliates ask the U.S.
Bankruptcy Court for the District of Delaware to approve uniform
procedures for settling certain de minimis claims and causes of action
brought by or against the Debtors in a judicial, administrative, arbitral,
or other proceeding.

The Debtors propose to settle De Minimis Claims that do not exceed
US$1,000,000.

Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, explains that the Debtors seek the authority to
negotiate and determine prepetition claim amounts of the De Minimis
Claims, not the authority to make payment or distributions on account of
those claims.

According to Mr. DeFranceschi, in the ordinary course of business, the
Debtors may hold various claims and causes of action against third
parties, and third parties may hold claims against the Debtors, that they
have asserted or will assert through litigation, administrative action or
arbitration in appropriate forums.  The Debtors' creditor matrix contains
approximately 85,000 parties.

Mr. DeFranceschi asserts that if the Debtors had to obtain prior Court
approval to settle each De Minimis Claim, they would incur significant
costs associated with preparing, filing and serving separate motions for
each proposed settlement, especially considering the expected number of
parties that will request notice and service papers in the Debtors'
Chapter 11 cases.

Accordingly, the Debtors propose to establish omnibus procedures that will
allow them to enter into settlements on a more cost- effective and
expeditious basis while preserving an oversight function for key
parties-in-interest.

               Proposed Omnibus Settlement Procedures

    (a) With respect to any settled amount equal to or less than
        US$250,000, the affected Debtor may agree to settle a
        claim or cause of action on any reasonable terms.  The
        Debtor may enter into, execute and consummate a written
        settlement agreement that will be binding on it and its
        estate without notice to any third party or further
        Court action;

    (b) With respect to any settled amount greater than
        US$250,000 but does not exceed US$1,000,000, the Debtor
        may agree to settle the claim or cause of action only if
        it provides written notice to, and the terms are not
        objected by:

          * the United States Trustee for the District of
            Delaware;

          * counsel to the agent for the Debtors' prepetition
            first lien secured lenders;

          * counsel to the agent for the Debtors' postpetition
            second lien secured lenders;

          * counsel to the ad hoc committee of senior
            subordinated noteholders; and

          * any official committee appointed by the U.S. Trustee
            in the Debtors' Chapter 11 cases;

    (c) If any of the notice parties objects to any settlement
        agreement, and the affected Debtor still desires to
        enter into agreement with the settling party, the
        execution of the settlement will not proceed except
        upon:

          * resolution of the objection by the parties; and

          * further Court order after a hearing; and

    (d) any settlement unauthorized pursuant to the proposed
        Omnibus Procedures or to any Court order will be
        authorized only upon separate Court order on a motion of
        the appropriate Debtor served on the necessary parties-
        in-interest.

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. 3;
Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


MRS LOGISTICA: S&P Affirms BB Local & Foreign Credit Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' local- and
foreign-currency corporate credit ratings on Brazil-based railroad company
MRS Logística S.A.

MRS's total on-balance-sheet debt was US$332 million in September 2006.

Standard & Poor's also said that the outlook on MRS remains stable.

The ratings on MRS reflect:

   -- some client concentration, with reliance on iron ore
      captive cargoes;

   -- limited scope of its assets (comparatively a short
      railroad); and

   -- the capital-intensive nature of the railroad business in
      the context of the fast-growing strategy developed in
      recent years.

The company's relatively high financial leverage (as adjusted to include
the net present value of operating leases and concession obligations,
which in September 2006 added US$604 million to MRS's total debt) is also
a risk factored into the ratings.  These aspects are partially offset by
MRS's favorable tariff model with its main captive-cargo clients, which
allow the company to pass on cost increases and maintain strong
profitability and cash flows.  In addition, its main cargo, iron ore, is
export-oriented and fairly independent from economic conditions in Brazil
and is expected to continue growing in a strong pace in the next several
years.  Furthermore, its debt profile has a long term, with 21 years for
the concession payments, and the railroad's condition has improved, with a
focus on efficiency after investments in automation and railroad revamp,
debottlenecking, and the acquisition of new locomotives and wagons.

The strong demand for seaborne iron ore is expected to continue
indirectly benefiting MRS's results.  MRS should remain concentrated on
iron ore (currently contributing about 70% of the total volume) during the
next several years.  Even though volumes in first-quarter 2006 slightly
decreased compared with the same period of 2005 because of an accident in
one of its main clients -- demonstrating MRS's client concentration -- MRS
has already managed to recover growth through third-quarter 2006 and
should be able to continue reporting strong volume growth in 2006 and
2007.  Growth prospects also factor in the company's fast-growing
strategy, with continuous improvements in its operational efficiency and
investments in new systems to increase capacity and productivity, allowing
for growing volumes despite its relatively short railroad.


USIMINAS: Nippon Steel Boosts Shares in Nippon Usiminas to 50.9%
----------------------------------------------------------------
Nippon Steel Corp. increased its holding in Nippon Usiminas, which owns
21.6% of Usiminas aka Usinas Siderurgicas de Minas Gerais SA, Brazil's
second-largest steelmaker, to 50.9% from 14.4%.

Nippon Steel holds a direct 1.7% stake in Usinas Siderurgicas.  In a
statement, the company disclosed it is now the top shareholder in Nippon
Usiminas, which in turn is the largest shareholder in Usiminas.  Nippon
Steel, the world's second-largest producer, made 32 million tons of steel
in 2005.

Published reports say the terms of the deal were not disclosed.

The Japanese company's investment is aimed at protecting itself from a
future takeover.

The investment "is not just to boost steel production overseas, but to
protect itself from being a takeover target," Hitoshi Yamamoto, who
manages the equivalent of US$1 billion in Japanese equities as president
of Commerz International Capital Management (Japan) Ltd., was quoted by
Bloomberg News as saying.  "Nippon Steel wants to boost the company's
value."

"The steel industry is consolidating globally, this is a natural move,"
Yuki Iriyama, managing director at Nippon Steel's overseas business
development unit, told Bloomberg.  "The market in South America is
steadily growing, and it's becoming more attractive."

Mr. Iriyama added that Nippon Steel would buy more shares in Nippon
Usiminas if holders wished to sell, Bloomberg says.

                 About Usinas Siderurgicas

Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais SA is among the world's 20 largest steel
manufacturing complexes, with a production capacity of
approximately 10 million tons of steel.  Usiminas System
companies produces galvanized and non-coated flat steel products
for the automotive, small and large diameter pipe, civil
construction, hydro-electronic, rerolling, agriculture, and road
machinery industries.  Brazil consumes 80% of its products and
the company's largest export markets are the US and Latin
America.  The company also sells in China and Japan.

                        *    *    *

Standard & Poor's Ratings Services affirmed on June 7, 2006, its
'BB+' long-term corporate credit rating on Brazil-based steel
maker Usinas Siderurgicas de Minas Gerais SA -- Usiminas.  At
the same time, Standard & Poor's assigned its 'BB+' senior
unsecured debt rating to the forthcoming US$200 million Global
MTNs due June 2016 to be issued by Cosipa Commercial Ltd.  S&P
says the outlook on the corporate credit rating is stable.


USIMINAS: S&P Revises Outlook on BB Credit Ratings to Positive
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Brazil-based
steelmaker Usinas Siderurgicas de Minas Gerais S.A. aka Usiminas to
positive from stable.

Standard & Poor's also said that it affirmed its 'BB+' local and foreign
currency corporate credit ratings on Usiminas.

"The outlook revision reflects the improved operating and economic
environment in Brazil for Usiminas to implement its significant
capital-expenditures program in the next years," explained Standard &
Poor's credit analyst Reginaldo Takara.  "This reinforces our expectations
that the company will sustain its currently very sound financial profile."

Even assuming that Usiminas's cash-flow protection measures could weaken
under less-favorable market conditions and because of additional leverage
to finance investments, we expect them to remain strong for the rating
category.

Funding for the investments to be made in the next years, partly already
secured, is expected to be favorable and not jeopardize the company's
current sound debt-maturity schedule. Uncertainties about the company's
larger capacity expansion plans (the so-called second wave of investments,
which include a new steel mill and are currently under study) remain as a
limiting rating factor in the short term, but those could be resolved as
more clarity is obtained as to the company's ultimate capital structure
and cash-flow implications.  We expect that Usiminas's prudent financial
policy will support the positive trend for the company's credit quality.

The ratings on Usiminas reflect its exposure to the cyclical and volatile
global steel sector, its reliance on the economic and operating
environment of its home market of Brazil, the increasing competition
within the Brazilian steel industry, and the risks associated with the
company's significant capital-expenditures program.  These risks are
tempered by Usiminas's sound financial profile, with total debt levels and
liquidity currently very conservative; a solid business profile, made
evident by a very competitive cost structure; resilient operating
profitability and robust free cash generation through economic cycles; and
a favorable market position in the
fairly concentrated flat carbon steel sector in Brazil, in particular in
the higher end, quality products segments.

The positive outlook reflects our expectations that the programmed capital
expenditures already approved and associated financing debt will not cause
the company's credit measures to weaken substantially from current robust
levels, allowing them to remain stronger than those consistent with the
rating category.  The ratings could be raised if uncertainties about
Usiminas's second wave of investments are dissipated in the medium term,
provided that financial policies remain sound.  S&P believes Usiminas is
well positioned to manage Brazil's country risks, but a potential upgrade
would also require further scrutiny about the company's vulnerabilities to
such risks under a stress scenario.  On the other hand, the outlook could
be revised back to stable if a deterioration in the company's favorable
business fundamentals -- coupled with a shift from current prudent
financial policies -- cause debt levels to rise and liquidity to decline
significantly in connection with the heavy cycle of capital investments.


VARIG: Leaving Star Alliance Group on Jan. 31, 2007
---------------------------------------------------
Viacao Aerea Rio-Grandense S.A. will no longer be a member of Star
Alliance as of Jan. 31, 2007.  This decision was prompted by the current
restructuring of the airline in which "old" VARIG continued to be a Star
Alliance member, operating a reduced flight schedule on behalf of a new
company, VRG Linhas Aereas S.A.  With "new" VARIG now having been granted
an official air operator’s certificate (CHETA -- Certificado de
Homologacao de Empresa de Transporte Aereo) by the Brazilian authorities,
"old" VARIG will in future no longer fulfill the pre-requisites for Star
Alliance membership.

"In order to deliver the Star Alliance benefits, products and services to
customers around the globe on a consistent basis, our member carriers work
to certain standards and processes.  Unfortunately, "old" VARIG will no
longer operate as a network airline and will therefore have to give up its
membership in the alliance," said Jaan Albrecht, Star Alliance chief
executive officer.

Star Alliance and its member carriers will ensure that the impact of this
decision on international travellers will be kept to a minimum.

"Star Alliance continues to offer the most intercontinental flights
serving more cities in Brazil than any other alliance and will continue to
expand its services in this important and growing aviation market," Jaan
Albrecht added.

Star Alliance member carriers Air Canada, Lufthansa, South African
Airways, SWISS, TAP Portugal and United together provide more than 270
weekly flights to Africa, Europe and North America from six destinations
in Brazil.  In parallel the alliance is exploring various options to
secure a wider presence in the region.

Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin America.  VARIG's
principal business is the transportation of passengers and cargo by air on
domestic routes within Brazil and on international routes between Brazil
and North and South America, Europe and Asia.  VARIG carries approximately
13 million passengers annually and employs approximately 11,456 full-time
employees, of which approximately 133 are employed in the United States.

The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a competitive
landscape, high fuel costs, cash flow deficit, and high operating
leverage.

The Debtors may be the first case under the new law, which took effect on
June 9, 2005.  Similar to a chapter 11 debtor-in-possession under the U.S.
Bankruptcy Code, the Debtors remain in possession and control of their
estate pending the Judicial Reorganization.  Sergio Bermudes, Esq., at
Escritorio de Advocacia Sergio Bermudes, represents the carrier in Brazil.

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts.




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


LATIN AMERICAN: Proofs of Claim Filing Is Until Dec. 28
-------------------------------------------------------
Latin American Sovereign Repackaged Notes Ltd.'s creditors are required to
submit proofs of claim by Dec. 28, 2006, to the company's liquidator:

          Simon Wetherell
          Deutsche Bank (Cayman) Ltd.
          P.O. Box 1984GT, George Town, Grand Cayman

Creditors who are not able to comply with the Dec. 28 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Latin America’s'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.


MORE SOUTHWEST: Proofs of Claim Filing Is Until Dec. 28
-------------------------------------------------------
More Southwest Inc.'s creditors are required to submit proofs of claim by
Dec. 28, 2006, to the company's liquidators:

          Richard Gordon
          Joshua Grant
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Dec. 28 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

More Southwest'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.


PAX V: Deadline for Proofs of Claim Filing Is Set for Dec. 28
-------------------------------------------------------------
Pax V, LLC's creditors are required to submit proofs of claim by Dec. 28,
2006, to the company's liquidators:

          Jan Neveril
          Richard Gordon
          Maples Finance Limited, P.O. Box 1093GT
          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.

Pax V's shareholders agreed on Nov. 14, 2006, for the company's voluntary
liquidation under Section 135 of the Companies Law (2004 Revision) of the
Cayman Islands.


REPACKAGED ASIAN: Proofs of Claim Filing Is Until Dec. 28
---------------------------------------------------------
Repackaged Asian Jurisdiction Assets Ltd.'s creditors are required to
submit proofs of claim by Dec. 28, 2006, to the company's liquidator:

          Simon Wetherell
          Deutsche Bank (Cayman) Limited
          P.O. Box 1984GT, George Town, Grand Cayman

Creditors who are not able to comply with the Dec. 28 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Repackaged Asian '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.


SENECA CBO: Deadline for Proofs of Claim Filing Is on Dec. 28
-------------------------------------------------------------
Seneca CBO II Ltd.'s creditors are required to submit proofs of claim by
Dec. 28, 2006, to the company's liquidator:

          David Dyer
          Deutsche Bank (Cayman) Limited
          P.O. Box 1984GT, George Town, Grand Cayman

Creditors who are not able to comply with the Dec. 28 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Seneca CBO'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.


SENECA CBO II: Deadline for Proofs of Claim Filing Is Dec. 28
-------------------------------------------------------------
Seneca CBO II GP Co. Ltd. 's creditors are required to
submit proofs of claim by Dec. 28, 2006, to the company's liquidator:

          David Dyer
          Deutsche Bank (Cayman) Limited
          P.O. Box 1984GT, George Town, Grand Cayman

Creditors who are not able to comply with the Dec. 28 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Seneca CBO II GP'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.


SENECA CBO II LP: Proofs of Claim Filing Deadline Is Dec. 28
------------------------------------------------------------
Seneca CBO II LP Co. Ltd.'s creditors are required to submit proofs of
claim by Dec. 28, 2006, to the company's liquidators:

          David Dyer
          Deutsche Bank (Cayman) Limited
          P.O. Box 1984GT, George Town, Grand Cayman

Creditors who are not able to comply with the Dec. 28 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Seneca CBO II LP'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.


TETRIX FUND: Deadline for Proofs of Claim Filing Is on Dec. 28
--------------------------------------------------------------
Tetrix Fund Ltd.'s creditors are required to submit proofs of claim by
Dec. 28, 2006, to the company's liquidators:

          Joshua Grant
          Jan Neveril
          Maples Finance Limited, P.O. Box 1093GT
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Dec. 28 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Tetrix Fund'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.




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


CLAXSON INTERACTIVE: Selling Radio Chile Shares to Grupo Latino
---------------------------------------------------------------
Claxson Interactive Group, Inc., has entered into an agreement to sell the
shares of its subsidiary, IberoAmerican Radio Chile, SA, to Grupo Latino
de Radiodifusion -- an affiliate of Union Radio, which is owned by Prisa
Group.

Grupo Latino will then own all the radio networks of IberoAmerican Radio
Chile, which include:

          -- Pudahuel FM,
          -- Rock & Pop,
          -- Corazon,
          -- FM Dos,
          -- Concierto,
          -- Futuro,
          -- FM Hit, and
          -- Imagina.

The price for the sale of the radio company is US$75 million, minus the
financial debt under certain syndicated credit facility held by Radio
Chile as of the closing date.  Closing of the transaction is subject to
regulatory approval by the anti-trust tribunal in Chile.

Roberto Vivo, Claxson Interactive's chief executive officer and
chairperson, said, "We are very pleased about this agreement with the
Prisa Group.  IberoAmerican Radio Chile's management has not only
generated excellent results and brand positioning, creating shareholder
value, but has also enhanced the Chilean radio industry as a whole.  We
believe the interest of Prisa Group, who operates radio businesses in
different markets, is a recognition to the management of IberoAmerican
Radio Chile, with whom I am proud to have worked all these years."

Claxson Interactive intends to commence a process to analyze strategic
alternatives with respect to its remaining assets, and may consider taking
the company private.

Claxson Interactive Group Inc. distributes content through pay
and broadcast television, radio, and the Internet. It owns or
distributes interests in more than a dozen pay TV channels,
including Playboy TV Latin America (81%).  The company also owns
a handful of Internet businesses (under the El Sitio name).
Claxson, which operates throughout North and South America, was
formed by the 2001 merger of El Sitio and Ibero-American Media
Partners, a joint-venture between the Cisneros Group of
Companies and HM Capital Partners.  CGC and HM Capital together
own about 60% of the company.

Headquartered in Buenos Aires, Argentina, and Miami, Florida,
Claxson has a presence in the United States and all key Ibero-
American countries, including without limitation, Argentina,
Mexico, Chile, Brazil, Spain and Portugal. Claxson's principal
shareholders are the Cisneros Group of Companies and funds
affiliated with Hicks, Muse, Tate & Furst Inc.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Fitch Argentina Calificadora de Riesgo assigned a BB rating on
Claxson Interactive Group Inc.'s US$41.3 million debt.




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


BANCOLOMBIA: Acquiring Banagricola & Subsidiaries for COP2,003MM
----------------------------------------------------------------
Bancolombia has reached a definitive agreement with a group of controlling
shareholders, to acquire its 52.9% controlling interest and up to 100% of
the outstanding shares of Conglomerado Financiero Internacional
Banagricola SA aka Banagricola and its subsidiaries for a total
consideration of COP2,003,600 million in cash.

Bancolombia will acquire Banagricola through its wholly owned subsidiary,
Bancolombia Panama.  The transaction will include all of Banagricola's
subsidiaries, including the commercial and retail banking, insurance,
pension funds and brokerage activities.

Bancolombia Panama will conduct a tender offer for Banagricola's
outstanding common stock (18,865,000 shares) for approximately US$47 per
share, in a dual process to be carried simultaneously in Panama and El
Salvador.  The tender offers will be executed as soon as all required
regulatory approvals are obtained.  The transaction is anticipated to
close during the second quarter of 2007.

Banagricola has a strong franchise in the Salvadoran financial market:

          i) important retail bank in El Salvador through
             subsidiary Banco Agricola with 29% market share in
             terms of loans and deposits;

         ii) significant pension fund manager through subsidiary
             AFP Crecer with 52% market share in terms of
             affiliates; and

        iii) largest insurer in El Salvador through subsidiary
             Asesuisa with 23% market share.

Banagricola has a loan portfolio of over US$2.3 billion and a solid and
growing client base of over one million clients who are served through a
network in El Salvador of 122 branches, 347 ATMs and 133 additional points
of sale.

The transaction will position Bancolombia as a key player in Central
America.  Due to El Salvador's high credit rating status, its dollarized
economy and Banagricola's solid financial performance, Bancolombia will
not only boost its income generation, but also diversify its loan
portfolio mix, reducing risk and exposure concentration.

Banagricola's low cost, broad and diversified retail deposit base coupled
with efficient cost controls give Banagricola key competitive advantages.
In addition, potential synergies from this transaction like improvement in
international funding for Bancolombia, transfer of know how, best
practices and cross selling opportunities, are expected to further enhance
Bancolombia's earnings.  This transaction is expected to be accretive to
earnings from 2007 onwards, excluding any effect of potential synergies
and one-off charges.

Jorge Londono, president of Bancolombia, said, "Banagricola is the ideal
acquisition for Bancolombia's first international incursion because of its
location, size, quality and cultural affinity.  Central America has been a
region of significant interest to Bancolombia and the possibility to
become part of this market is of great importance to us."

Sergio Restrepo, executive vice president of corporate development of
Bancolombia, noted, "Banagricola's leading market share in a stable
investment grade country will strongly support Bancolombia's long term
growth strategy and will deliver strong value creation to our
shareholders.  This transaction will establish a platform for us to grow
in the region."

Rodolfo Schildknecht, president of Banagricola, commented, "We consider
that this offer represents a very attractive proposal for our
shareholders.  This transaction provides great potential to our employees
and clients, due to the cultural affinity with Bancolombia and the
excellent growth and execution ability demonstrated throughout the years,
which are consistent with that of our employees."

UBS Investment Bank was the financial advisor to Bancolombia on this
transaction.  Sullivan & Cromwell acted as Bancolombia's legal counsel
coordinator, supported by law firms Consortium - Delgado & Cevallos in El
Salvador and Icaza, Gonzales-Ruiz & Aleman in Panama.

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

Bancolombia is Colombia's largest full-service financial institution,
formed by a merger of three leading Colombian financial institutions.
Bancolombia's market capitalization is over US$5.5 billion, with US$13.8
billion asset base and US$1.4 billion in shareholders' equity as of Sept.
30, 2006.  Bancolombia is the only Colombian company with an ADR level III
program in the New York Stock Exchange.

                        *    *    *

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

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




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


* ECUADOR: Bond's Price Fell on Default Threat
----------------------------------------------
Lester Pimentel and Helen Murphy, at Bloomberg News, report that Ecuador's
bonds had their biggest-ever decline after the incoming finance minister,
Ricardo Patino, said the government may restructure its US$11 billion debt
in a way similar to Argentina, which defaulted on US$95 billion in 2001.

Mr. Patino's statement caused Ecuador's benchmark 10% bonds due 2030 to
tumble, according to Bloomberg.  He added that president-elect Rafael
Correa's administration will meet with bondholders next month to discuss a
plan that "may be more like what happened in Argentina," Bloomberg says.

"Slowly the market is starting to realize that they mean what they say,"
Alberto Ramos, a senior Latin America economist with Goldman Sachs Group
Inc., was quoted by Bloomberg as saying of Ecuador's leadership.  "This is
an ideological view.  This is about a willingness to pay."

The bond's price fell 11.75 cents on the dollar to 76.25 cents, its
largest decline since the government issued the security in 2000.

                        *    *    *

Fitch assigned these ratings on Ecuador:

                     Rating     Rating Date

   Country Ceiling     B-      Aug. 29, 2005
   Long Term IDR       B-      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005




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


GOODYEAR & TIRE: Agrees on New Master Contract with Union
---------------------------------------------------------
Goodyear Tire & Rubber Co. has reached a tentative agreement with United
Steelworkers or USW on a new master contract covering about 12,600
employees at 12 tire and engineered products plants in the United States.
The USW is expected to schedule ratification votes at all plants in the
coming days.

The previous three-year labor agreement expired July 22, 2006.  The
Goodyear Tire employees who are USW members have been on strike since Oct.
5, 2006.

The tentative agreement, which covers workers at 12 tire and engineered
products plants in the United States, gives Goodyear & Tire the ability to
reduce excess high-cost manufacturing capacity, reduce legacy costs,
improve productivity and reduce labor costs consistent with the four point
cost reduction plan that was announced to investors in 2005.  The
tentative agreement:

          -- Secures retiree medical benefits through an
             independently administered Voluntary Employees'
             Beneficiary Association (VEBA) to be launched with
             an up front US$1 billion contribution from Goodyear
             & Tire to consist of US$700 million in cash and up
             to US$300 million in additional cash or common
             stock at the company's option.  Subject to court
             and regulatory approvals, the VEBA would assume
             full responsibility for providing retiree medical
             benefits to all present and future Goodyear USW
             retirees;

          -- Consistent with Goodyear & Tire's previously
             disclosed plans to exit certain segments of the
             private label tire business, provides for the
             closing of the Tyler, Texas, facility
             after Dec. 31, 2007;

          -- Delivers substantial improvements in labor costs
             and productivity through redesign of incentive
             systems and immediate implementation of market-
             based wage and benefit levels for all new hires;

          -- Improves job security and provides capital
             investments in USW plants of at least US$550
             million over the life of the agreement.

The 12 master contract plants covered by the tentative agreement are:

          -- Akron, Ohio;
          -- Buffalo, New York;
          -- Danville, Va.;
          -- Fayetteville, North Carolina;
          -- Gadsden, Alabama;
          -- Lincoln, Nebraska;
          -- Marysville, Ohio;
          -- St. Marys, Ohio;
          -- Sun Prairie, Wisconsin;
          -- Topeka, Kansas;
          -- Tyler, Texas; and
          -- Union City, Tennessee.

Goodyear & Tire will hold a conference call in January for investors,
financial analysts and media to discuss specifics of the new contract if
the tentative agreement is ratified by the USW membership.  The timing of
that call will be announced at a later date.

Goodyear & Tire said that its tentative agreement with USW supports its
strategy to significantly reduce costs and improve competitiveness in its
North American operations.

"Our goal was always to reach a fair agreement that improves our ability
to compete and win with customers.  This agreement would accomplish that
goal," said Robert J. Keegan, chairperson and chief executive officer of
Goodyear & Tire.

Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company.  The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries.  Goodyear Tire has marketing operations in almost
every country around the world including Chile, Colombia and
Guatemala in Latin America.  Goodyear employs more than 80,000
people worldwide.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 21, 2006, Fitch
Ratings has assigned debt and Recovery Ratings of 'CCC+/RR6' to US$1
billion of new private placement notes issued by The Goodyear Tire &
Rubber Company.  All ratings remain on Rating Watch Negative.

Moody's Investors Service also assigned a B2, LGD4, 63% rating to Goodyear
Tire & Rubber Company's new US$1 billion offering of unsecured notes.  At
the same time, the rating agency affirmed Goodyear's Corporate Family
Rating of B1 and negative outlook and revised its Speculative Grade
Liquidity rating to SGL-2.




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


AMERICAN TOWER: Board OKs Stock Option-Related Remediation Plan
---------------------------------------------------------------
The Board of Directors of American Tower Corp. has approved the
remediation plan presented by the Special Committee that conducted a
review of the Company's historical stock option granting practices and
related accounting.

The company had reported the Special Committee's key findings, including
that there were a number of deficiencies in the company's stock option
granting practices in November.  These deficiencies contributed to the
restatement of the company's historical financial statements, which were
filed with the Securities and Exchange Commission on Nov. 29, 2006.

At that time, the company reported that the Special Committee was
preparing a remediation plan to address the issues raised by its findings.
The following is a summary of the key aspects of the remediation plan
approved by the Board:

   -- The Company has requested, and each of its present senior
      officers and members of its Board of Directors has agreed,
      to eliminate any benefit received by such individuals from
      options having been granted to them at prices below the
      fair market value of the Company's Class A common stock on
      the legal grant date, as determined by the Special
      Committee.  This will be accomplished by increasing the
      exercise price of unexercised options to such fair market
      value and, for exercised options, by such individuals
      compensating the Company for the amount of such benefit,
      after reduction for any taxes paid, either through a cash
      payment or canceling vested options having an in-the-money
      value equal to the amount of the payment.  The aggregate
      value of eliminating the benefit for the eight individuals
      with options subject to such remediation is approximately
      US$7.5 million, prior to any adjustment for taxes paid.

   -- The Company plans to take steps to similarly eliminate any
      benefit received by certain former officers from the grant
      to them of options at below fair market value.  The
      aggregate value of eliminating the benefit for the three
      individuals with options subject to such remediation is
      approximately US$7.6 million, prior to any adjustment for
      taxes paid.

   -- The Company's Chief Executive Officer will continue the
      assessment and re-evaluation of the Company's management
      organizational structure, focusing on the capabilities of
      the legal, human resources and accounting functions,
      including whether the responsibilities of any members of
      current management should be modified.

  -- The Company's revised procedures for approval and
     administration of stock options, which were approved by the
     Compensation Committee in August 2006, will be
     independently evaluated for adequacy and then monitored for
     effective implementation and compliance as part of the
     internal audit function.

  -- Additional training will be put in place with respect to
     governance, risk management and compliance, including as to
     stock option administration policies and procedures and
     compliance with the Company's code of conduct.

  -- The Company will evaluate and enhance its risk assessment
     activities and the adequacy of its administrative resources
     and communication of roles, responsibilities and
     accountability.  The Company will also assess, with Board-
     level oversight, the organization's attitude toward a
     culture of compliance and an effective internal control
     environment.

The company is continuing to cooperate with both the Department of Justice
and the Securities and Exchange Commission in their respective inquiries
regarding the Company's historical stock option granting practices.

            Resumption of Stock Repurchase Program

As reported, the company temporarily suspended its stock repurchase
program in May 2006 in connection with the review
of its stock option granting practices.  Now that the Special Committee
has reported on its findings and the Board has approved a remediation
plan, the Board has approved the resumption of the Company's stock
repurchase program.

"We are pleased to have completed the review of the Company's historical
stock option granting practices" Jim Taiclet, American Tower's Chief
Executive Officer stated.  "By resuming our stock repurchase program, we
are renewing our commitment to return cash to shareholders in accordance
with our long term financial and operational strategy."

Under the repurchase program, announced in November 2005, the Company was
authorized to repurchase up to US$750 million of its Class A common stock
during the period November 2005 through December 2006.  Prior to the
suspension of the stock repurchase program, the Company had repurchased a
total of 11.8 million shares of its Class A common stock for approximately
US$358.3 million.  The Board has authorized the Company to repurchase the
remaining US$391.7 million under this program through the end of February
2007.

The company expects to complete the remaining US$391.7 million under the
program by the end of February 2007, utilizing cash from operations,
borrowings under its credit facilities and cash on hand to fund the
repurchase program. Under the program, management is authorized to
purchase shares from time to time in open market purchases or privately
negotiated transactions at prevailing market prices.  To facilitate
repurchases, the Company's Board has authorized the Company to make
purchases pursuant to a Rule 10b5-1 plan, which will allow the Company to
repurchase its shares during periods when it otherwise might be prevented
from doing so under insider trading laws or because of self-imposed
trading blackout periods.  The Company expects that it will evaluate the
size and timing of future share repurchases prior to or upon completion of
this program.

Headquartered in Boston, Massachusetts, American Tower Corporation (NYSE:
AMT) -- http://www.americantower.com/-- is an independent owner, operator
and developer of broadcast and wireless communications sites in North
America.  American Tower owns and operates over 22,000 sites in the United
States, Mexico, and Brazil.  Additionally, American Tower manages
approximately 2,000 revenue producing rooftop and tower sites.

                        *     *     *

As reported in Troubled Company Reporter Dec 13, 2006, Moody's Investors
Service placed the ratings of American Tower Corporation' corporate family
at Ba2 under review for possible upgrade.


BALLY TOTAL: Grants Stock Options to New Employees
--------------------------------------------------
Bally Total Fitness granted stock options under its Inducement Plan
adopted in 2005 to new employees Jerry Rezabek and Stephanie Burnham.

Mr. Rezabek will be Bally Total's assistant vice president in accounting,
while Ms. Burnham will be the firm's senior director in market research.

Mr. Rezabek received 5,000 stock options and Ms. Burnham received 4,000
stock options.  These inducement stock options vest in three equal annual
installments on the anniversary of the grant date and are subject to
forfeiture in the event of resignation or termination for cause prior to
vesting.

Under the New York Stock Exchange (NYSE) Rule 303A.08, these inducement
stock option grants require a public announcement of the awards and
written notice to the NYSE.

Bally Total Fitness Holding Corp. --
http://www.Ballyfitness.com/-- is a commercial operator of
fitness centers in the U.S., with nearly 390 facilities and 30
franchises and joint ventures located in 29 states, Mexico,
Canada, Korea, China and the Caribbean.  Bally also sells
Bally-branded apparel, nutritional products, fitness-related
merchandise and its licensed portable exercise equipment is sold
in more than 10,000 retail outlets.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 19, 2006,
Moody's Investors Service affirmed the Caa1 rating on Bally
Total Fitness Holding Corp.'s US$235 million 10.5% senior
unsecured notes (guaranteed) due 2011 and the Caa3 rating on the
company's US$300 million 9.875% senior subordinated notes due
2007.  Moody's said the rating outlook remains negative.


CINRAM INTERNATIONAL: Launches Small Unitholder Selling Program
---------------------------------------------------------------
Cinram International Income Fund has launched a small unitholder selling
program that enables registered and beneficial unitholders who owned 99 or
fewer units of the Fund as at
Dec. 20, 2006, to sell their units without incurring any brokerage
commission.  The program's aim is to reduce unitholder servicing and other
related costs.

Cinram International retained Georgeson Shareholder Communications Canada
Inc. to manage the program and to handle transactions and payment.  The
sale of units will be executed through the Toronto Stock Exchange.

The voluntary program begins on Dec. 22, 2006, and will expire at 5:00
p.m. on Feb. 20, 2007, unless it is extended.  The program is designed to
assist eligible registered holders (and beneficial holders of units held
in nominee form) in selling their units without incurring any brokerage
commissions.  Payment for units sold under the Program will be mailed
approximately five business days after the sale.  More information about
the Program, including participation documents, will be forwarded to
eligible unitholders in the coming weeks.

All units received through the program will be gathered into board lots
(100 or more units) and sold no later than 12:00 p.m. on the next business
day on the TSX.  The price of the units will be set at the average price
received for all units sold on a given day.  For the convenience of
unitholders who are residents of the United States, the proceeds will be
converted into US funds at the prevailing conversion rate at the time of
sale.

Cinram International is pleased to make the program available to its
unitholders.  However, the firm makes no recommendation as to whether
eligible unitholders should participate in the program.  The decision to
participate should be based upon the unitholders' particular
circumstances.  Eligible unitholders may wish to obtain advice from their
financial advisor before participating.

Cinram International Inc. (TSX: CRW.UN) - http://www.cinram.com/
-- an indirect wholly owned subsidiary Cinram International
Income Fund, provides pre-recorded multimedia products and
related logistics services.  With facilities in North America
and Europe, Cinram International Inc. manufactures and
distributes pre-recorded DVDs, VHS video cassettes, audio CDs,
audio cassettes and CD-ROMs for motion picture studios, music
labels, publishers and computer software companies around the
world.  The company has sales offices in Mexico.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 16, 2006,
Standard & Poor's Ratings Services said it revised its outlook
on Cinram International Inc., a wholly owned indirect subsidiary
of Cinram International Income Fund, to negative from stable.
At the same time, Standard & Poor's affirmed its 'BB-' long-term
corporate credit rating and its 'BB-' bank loan rating, with a
recovery rating of '4', on prerecorded multimedia manufacturer
Cinram.


DAIMLERCHRYSLER: Truck Unit Eyes US$300 Million Plant in Mexico
---------------------------------------------------------------
Freightliner LLC, the truck division of DaimlerChrysler AG, plans to build
a US$300 million truck manufacturing plant in Coahuila, Mexico, Terry
Kosdrosky writes for Dow Jones Newswires.

The 740-acre facility is Freightliner's second plant in Mexico after
building the Santiago Tianguistenco plant.  It could produce up to 30,000
trucks a year and employ up to 1,600 production and management personnel,
Dow Jones reports.  The company plans to begin production of its
Freightliner and Sterling trucks in the new site by early 2009.

The company's announcement came after Freightliner disclosed of plans to
cut up to 4,000 jobs in North America due to the expected downturn in
heavy truck building, Dow Jones relates.  According to the report, buyers
have been prompted to push its truck orders this year as new emission
regulations would go into effect in 2007, which will add costs to
commercial truck production.

Freightliner president and chief executive Chris Patterson wants to
prepare for a surge in demand, which could come before 2010 when the next
round of new emissions regulations goes into effect.

"Frankly, we were not able to produce what we could have sold in 2006 due
to capacity constraints," Mr. Patterson said.

Truck buyers in all markets are showing hesitation to purchase trucks
equipped with the new engine technology necessary to meet the diesel
exhaust emissions standards that go into effect in Canada and the United
States on Jan. 1, 2007.

Depending on specification and weight class, Freightliner LLC
vehicles are subjected to price increases ranging from US$4,600
to US$12,500, before application of taxes, for the new engines.
It is clear that all residents of North America benefit from the
cleaner atmosphere that will ultimately result, but it is
equally obvious that the costs associated with this worthy
initiative are borne almost entirely by the truck manufacturing
industry's employees, suppliers, shareholders, and dealers.

                  About Freightliner LLC

Headquartered in Portland, Ore., Freightliner LLC --
http://www.freightliner.com/-- is a medium- and heavy-duty
truck manufacturer in North America.  Freightliner produces and
markets Class 3-8 vehicles and is a company of DaimlerChrysler.

                  About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and
Dodge brand names.  It also sells parts and accessories under the MOPAR
brand.

The Chrysler Group is facing a difficult market environment in the United
States with excess inventory, non-competitive legacy costs for employees
and retirees, continuing high fuel prices and a stronger shift in demand
toward smaller vehicles.  At the same time, key competitors have further
increased margin and volume pressures -- particularly on light trucks --
by making significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and cut costs
in the short term are being examined at all stages of the value chain, in
addition to structural changes being reviewed as well.


DELTA AIR: Plan Filing Decision Wins Committee's Support
--------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in Delta Air Lines
Inc. and its debtor affiliates' Chapter 11 cases supported Delta's
decision to file its proposed Plan of Reorganization and accompanying
Disclosure Statement with the U.S. Bankruptcy Court for the Southern
District of New York on Dec. 20, 2006.

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 (OTC: DALRQ)
-- http://www.delta.com/-- is the world's second-largest airline in terms
of passengers carried and the leading U.S. 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: Classification & Treatment of Claims Under Plan
----------------------------------------------------------
Delta Air Lines, Inc., and its debtor-affiliates filed a standalone Plan
and a related Disclosure Statement with the U.S. Bankruptcy Court for the
Southern District of New York and intends to emerge from Chapter 11 in the
spring of 2007, related the Troubled Company Reporter on Dec. 20, 2006.

The Debtors' Plan of Reorganization is premised upon the limited
and separate consolidation of:

   (i) the estates of the Delta Debtors, which comprise:

        -- ASA Holdings, Inc.,
        -- Crown Rooms, Inc.,
        -- DAL Aircraft Trading, Inc.,
        -- DAL Global Services, LLC,
        -- DAL Moscow, Inc.,
        -- Delta Air Lines, Inc.,
        -- Delta Benefits Management, Inc.,
        -- Delta Corporate Identity, Inc.,
        -- Delta Loyalty Management Services, LLC,
        -- Delta Technology, LLC,
        -- Delta Ventures III, LLC,
        -- Epsilon Trading, LLC,
        -- Kappa Capital Management, Inc., and
        -- Song, LLC

  (ii) the estates of the Comair Debtors, which consist of:

        -- Comair, Inc.,
        -- Comair Holdings, LLC,
        -- Comair Services, Inc.,
        -- Delta AirElite Business Jets, Inc., and
        -- Delta Connection Academy, Inc.

Each consolidation will be effected solely for purposes of
actions associated with the confirmation of the Plan and the
occurrence of the Effective Date, including voting, confirmation
and distribution.

If one or more Delta Debtors and one or more Comair Debtors are
obligated for a given Claim, the holder thereof will be deemed to have one
Claim against the Delta Debtors and one Claim against the Comair Debtors
for purposes of Confirmation and
distributions.

The Debtors note that if the Court does not approve one or both
Plan Consolidations:

   (a) the Claims against the relevant Debtors will be treated
       as separate Claims with respect to the relevant Debtor's
       estate for all purposes, and will be administered as
       provided in the applicable Plan Consolidation; and

   (b) the Debtors will not, or will they be required to,
       re-solicit votes with respect to the Plan or any
       applicable Plan Consolidation.  The votes will be counted
       as a vote in a single, respective, separate Class with
       respect to the appropriate Plan Consolidation.

Consistent with the requirements of the Bankruptcy Code, Delta's
Plan of Reorganization generally provides for holders of Allowed
Administrative Claims to receive cash in an amount equal to those Claims.

Allowed Priority Tax Claims will be paid:

   (a) a single Cash distribution equal to that Claim;

   (b) equal Cash payments on the fifth and the sixth
       anniversary of the date of assessment in an aggregate
       amount equal to that Claim, together with interest
       compounded semi-annually from the Effective Date on any
       outstanding balance calculated at a rate equal to the
       yield published in The Wall Street Journal, Eastern
       Edition on the Effective Date for a United States
       Treasury note with a maturity closest to five years; or

   (c) other recovery as may be determined by the Court to
       provide the claimholder deferred Cash payments having a
       value, as of the Effective Date, equal to that Claim.

The classification and treatment of other claims against the
Delta Debtors under the Plan of Reorganization are summarized as:

Class  Description   Recovery   Claim Treatment
-----  -----------   --------   ---------------
  1    Other Priority  100%     Payment in full in Cash, or
       Claims                   other treatment that will render
                                the Claim unimpaired.

                                Unimpaired.  Deemed to accept.

  2    Secured         100%     (a) Payment in full in Cash;
       Aircraft                 (b) Reinstatement of the legal,
       Claims                       equitable and contractual
                                    rights of the claimholder;
                                (c) payment of the proceeds of
                                    the sale or disposition of
                                    the Collateral securing the
                                    Claim to the extent of the
                                    value of the holder's
                                    secured interest in the
                                    Collateral;
                                (d) return of Collateral
                                    securing the Claim; or
                                (e) other treatment rendering
                                    the Claim unimpaired.

                                Unimpaired.  Deemed to accept.

  3    Other Secured   100%     (a) Payment in full in Cash;
       Claims                   (b) Reinstatement of the legal,
                                    equitable and contractual
                                    rights of the claimholder;
                                (c) payment of the proceeds of
                                    the sale or disposition of
                                    the Collateral securing the
                                    Claim to the extent of the
                                    value of the holder's
                                    secured interest in the
                                    Collateral;
                                (d) return of Collateral
                                    securing the Claim; or
                                (e) other treatment rendering
                                    the Claim unimpaired.

                                Unimpaired.  Deemed to accept.

  4    General        63%-80%   New Delta Common Stock equal to
       Unsecured                pro rata share of Delta
       Claims                   unsecured Allocation.
                                Opportunity to participate in
                                New Equity Investment Rights
                                Offering.

                                Impaired.  Entitled to vote.

  5    Non-           63%-80%   (a) New Delta Common Stock equal
       Convenience                  to pro rate share of Delta
       Class Retiree                Unsecured Allocation; or
       Claims                   (b) if elected on Ballot, Cash
                                    proceeds from sale of pro
                                    rata share of Delta
                                    Unsecured Allocation.

                                Impaired.  Entitled to vote.

  6    Convenience    63%-80%   Cash determined with reference
       Class Claims             to the midpoint of the range of
                                recovery estimates for General
                                Unsecured Claims against the
                                Delta Debtors.

                                Impaired.  Entitled to vote.

  7a   Interests         0%     No distribution.
       in Delta                 Impaired.  Deemed to reject.

  7b   Interests     Retained   Reinstatement of Interests.
       in the Delta             Unimpaired.  Deemed to accept.
       Subsidiary
       Debtors

  8    Securities        0%     No distribution.
       Litigation               Impaired.  Deemed to reject.
       Claims

The projected recovery range for Delta Classes 4, 5 and 6 is
based on:

   (i) a consolidated valuation of the Delta Debtors together
       with the Comair Debtors; and

  (ii) estimated total Allowed Unsecured Claims of
       US$15,000,000,000 against the Delta Debtors and Comair
       Debtors.

According to the Debtors, Delta Classes 4, 5 and 6's recovery
range is subject to change based, inter alia, on:

   (a) the fact that actual recoveries to holders of Unsecured
       Claims will be based on separate valuations of the Comair
       Debtors and the Delta Debtors, and separate estimates of
       Allowed Claims against each;

   (b) the possible dilutive effects of the Compensation
       Programs; and

   (c) further refinements to the estimates of total Allowed
       Claims as the Debtors Claims reconciliation and objection
       process continues.

The Debtors define "Non-Convenience Class Retiree Claim" as a
Claim against Delta in an amount greater than US$2,000 but less
than or equal to US$100,000 arising from:

    -- the modification of retiree health or welfare benefits as
       reflected in a Retiree Term Sheet; or

    -- the termination of any non-qualified defined benefit
       pension plan of the Debtors.

A "Convenience Class Claim" is a Claim, other than a Claim based
on an Old Note, against any of the Debtors that would otherwise
be a General Unsecured Claim, and is greater than US$0 and less
than or equal to US$2,000 in Allowed amount.  A General Unsecured Claim or
a Non-Convenience Class Retiree Claim originally Allowed in an amount in
excess of US$2,000 may not be sub-divided into multiple Claims of US$2,000
or less for purposes of receiving treatment as a Convenience Class Claim.

The classification and treatment of other claims against the
Comair Debtors under the Plan of Reorganization are summarized
as:

Class  Description   Recovery   Claim Treatment
-----  -----------   --------   ---------------
  1    Other Priority  100%     Payment in full in Cash, or
       Claims                   other treatment that will render
                                the Claim unimpaired.

                                Unimpaired.  Deemed to accept.

  2    Secured         100%     (a) Payment in full in Cash;
       Aircraft                 (b) Reinstatement of the legal,
       Claims                       equitable and contractual
                                    rights of the claimholder;
                                (c) payment of the proceeds of
                                    the sale or disposition of
                                    the Collateral securing the
                                    Claim to the extent of the
                                    value of the holder's
                                    secured interest in the
                                    Collateral;
                                (d) return of Collateral
                                    securing the Claim; or
                                (e) other treatment rendering
                                    the Claim unimpaired.

                                Unimpaired.  Deemed to accept.

  3    Other Secured   100%     (a) Payment in full in Cash;
       Claims                   (b) Reinstatement of the legal,
                                    equitable and contractual
                                    rights of the claimholder;
                                (c) payment of the proceeds of
                                    the sale or disposition of
                                    the Collateral securing the
                                    Claim to the extent of the
                                    value of the holder's
                                    secured interest in the
                                    Collateral;
                                (d) return of Collateral
                                    securing the Claim; or
                                (e) other treatment rendering
                                    the Claim unimpaired.

                                Unimpaired.  Deemed to accept.

  4    General          --      New Delta Common Stock equal to
       Unsecured                pro rata share of Comair
       Claims                   Unsecured Allocation.
                                Opportunity to participate in
                                New Equity Investment Rights
                                Offering.

                                Impaired.  Entitled to vote.

  5    Convenience      --      Cash determined with reference
       Class Claims             to the midpoint of the range of
                                recovery estimates for General
                                Unsecured Claims against the
                                Delta Debtors.

                                Impaired.  Entitled to vote.

  6    Interests      Retained  Reinstatement of Interests.
       in the Comair            Unimpaired.  Deemed to accept.
       Debtors

  7    Securities        0%     No distribution.
       Litigation               Impaired.  Deemed to reject.
       Claims

The Debtors clarify that the projected recovery range for Comair
Classes 4 and 5 will be included in a revised Plan and Disclosure
Statement to be filed with the Court prior to the Disclosure Statement
hearing.

The Comair Classes 4 and 5's projected recovery range will be
based on a separate valuation of the Comair Debtors and a
separate estimate of Allowed Claims against the Comair Debtors.

The projected recovery range for holders of Unsecured Claims
against the Comair Debtors may differ substantially from:

   (i) the projected recovery range for Delta Classes 4, 5 and
       6; or

  (ii) any subsequently revised projected recovery range for
       Unsecured Claims against the Delta Debtors.

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 U.S. 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 Lines Bankruptcy News, Issue No. 53; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELTA AIR: Enterprise Value Estimated at US$18.2-US$20.8 Billion
----------------------------------------------------------------
The Blackstone Group, L.P., Delta Air Lines, Inc., and its
debtor-affiliates' financial advisor, has undertaken a valuation analysis
for purposes of:

   (i) estimating value available for distribution to creditors
       pursuant to the Debtors' Joint Plan of Reorganization,
       filed on Dec. 19, 2006, and to analyze the relative
       recoveries to creditors thereunder; and

  (ii) evaluating whether the Plan meets the so-called best
       interests test under Section 1129(a)(7) of the Bankruptcy
       Code.

According to Blackstone, the adjusted enterprise value of the
consolidated Reorganized Debtors is estimated to range from
US$18,200,000,000 to US$20,800,000,000.  This estimated Consolidated
Adjusted Enterprise Value range assumes an Effective Date of April 30,
2007, and reflects the going concern value of the Reorganized Debtors
after giving effect to the implementation of the Plan.

The common equity value of the consolidated Reorganized Debtors
is estimated to range from approximately US$9,400,000,000 to
US$12,000,000,000.  The Consolidated Equity Value range reflects
the difference between the Consolidated Adjusted Enterprise Value and the
total amount of net debt that is estimated to be
outstanding at the Effective Date after giving effect to the
Plan.

Based on the Consolidated Equity Value estimates and an estimated
consolidated pool of Unsecured Claims for the Debtors of
US$15,000,000,000, Blackstone estimates the recovery to the holders of
consolidated Debtors Unsecured Claims to be 63% to 80%.  These recoveries
do not take into account any dilution or other financial effects that may
occur pursuant to implementation of the Compensation Programs.

The Consolidated Valuation is based on numerous qualifications
and contingencies, including but not limited to:

   (i) the Debtors' ability to achieve all aspects of their
       Financial Projections,

  (ii) the state of the capital and credit markets as of the
       Effective Date,

(iii) the Debtors' ability to raise and maintain sufficient
       capital to implement the business plan on which the
       Financial Projections are based,

  (iv) no material adverse change to the industry or in the
       Debtors' operations due to economic slowdowns,

   (v) volatility in fuel prices, and

  (vi) the effect of exogenous events, including terrorist
       attacks and the Debtors' ability to maintain and utilize
       net operating losses, as well as other unexpected events
       not forecasted by the Debtors.

A copy of the Valuation Analysis is available for free at:

                http://ResearchArchives.com/t/s?176d

                        *    *    *

Prior to the hearing to approve the Disclosure Statement
accompanying the Plan, the Debtors intend to submit a revised
valuation analysis that will include separately valuation
analysis with respect to the Delta Debtors and valuation analysis with
respect to the Comair Debtors.

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 U.S. 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 Lines Bankruptcy News, Issue No. 53; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELTA AIR: US Airways Rejection Will Not Affect S&P's D Rating
--------------------------------------------------------------
Delta Air Lines Inc. has filed a proposed plan of reorganization,
targeting emergence from bankruptcy in 2007 as an independent entity.

Delta disclosed also that its Board of Directors had rejected an
acquisition proposal by US Airways Group Inc.

Standard & Poor's Ratings Services said its ratings on Delta, including
the 'D' corporate credit rating, are not affected. Ratings on enhanced
equipment trust certificates remain on CreditWatch with developing
implications, excepting 'AAA' rated, insured EETCs, which are not on
CreditWatch.

If Delta is successful in its proposed plan of reorganization, ratings on
EETCs that are on CreditWatch would likely be affirmed or raised, as the
airline plans to affirm or repay aircraft obligations securing the
certificates.  If Delta enters into a merger, the effect on ratings of
EETCs would depend on the credit quality of the combined airline and its
decisions as to whether to affirm the aircraft financings.

"Delta's proposed reorganization plan involves less risk than US Airways'
merger proposal in that it would not face antitrust review by the
Department of Justice, would not involve potentially difficult labor
integration, and would not require the issuance of $4 billion in
acquisition debt," said Standard & Poor's credit analyst Philip Baggaley.

"However, Delta's stand-alone plan foregoes potentially significant merger
synergies and, like US Airways' acquisition forecast, rests on
assumptions, some of which appear overly optimistic."

Delta's reorganization plan estimates an equity value of
US$9.4 billion to US$12 billion, and a recovery to unsecured creditors of
63 cents to 80 cents on the dollar.  The estimated valuation is somewhat
above the alternative US Airways' offer worth about US$8.6 billion.  Delta
disclosed also its analysis of the US Airways' proposal, challenging some
of the synergy assumptions.

Delta's five-year forecast included in a disclosure statement
accompanying the proposed plan of reorganization projects much improved
earnings and cash flow, and a substantially reduced debt burden achieved
through the bankruptcy process.  Based on changes achieved in bankruptcy
and recent earnings and cash flow trends, it is reasonable to anticipate
substantially improved operating performance.  Still, some of Delta's
forecast assumptions and plans carry risks.

In particular, the assumptions that Delta will fully close its historical
gap in revenue generation against peer "legacy carriers" may prove
challenging, given that its disproportionate exposure to competitive
domestic leisure markets and ongoing improvements at its competitors.

Also, Delta foresees further reductions in its non-fuel expenses,
maintaining its lead as the lowest-cost of the legacy carriers.  Still,
Delta should emerge with greatly reduced debt and leases, which would
leave it with more manageable financial burden than it would carry in the
partly debt-financed acquisition by US Airways.

The competing proposals will be considered by Delta's unsecured creditors'
committee, which will make a recommendation to unsecured creditors.  It is
possible that either Delta or US Airways may amend their proposals, or
that another airline could make a competing bid for Delta if it appears
that unsecured creditors favor a sale of the company.

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 U.S. 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 Lines Bankruptcy News, Issue No. 53; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


FEDERAL-MOGUL: Bankruptcy Court Okays Ernst & Young as Advisors
---------------------------------------------------------------
The Honorable Judith K. Fitzgerald of the U.S. Bankruptcy Court for the
District of Delaware approved Ernst & Young LLP's continued employment as
Federal-Mogul Corp. and its debtor-affiliates' accounting, tax, valuation,
and actuarial advisors, and independent auditors.

The Debtors asked the Court to clarify that the scope of Ernst & Young
LLP's continued employment as their independent auditors and as
accounting, tax, valuation, and actuarial advisors encompasses the
services similar to what the firm has provided in previous years:

   -- international tax advisory services,
   -- individual employee tax compliance,
   -- international assignment services, and
   -- international assignment compliance advisory tax services.

The Debtors also want Ernst & Young to provide their non-Debtor affiliates
with certain international assignment compliance and advisory tax
services, which encompass the preparation of tax returns, annual tax
reimbursement calculations, tax gross-ups, estimated tax payment requests,
and tax return extension requests.  The services will be provided to and
paid for by certain non-Debtor affiliates located outside of the United
States, and will be rendered by member firms of Ernst & Young's global
network.

Ernst & Young has asked the Debtors to seek Court approval for those
services to the non-Debtor affiliates to preclude any contention that its
services somehow conferred a benefit on the Debtors that required
retention under Section 327(a) of the Bankruptcy Code.

Ernst & Young's fees for the Continued Services will be billed in
specified amounts and at its current rates, which, in some instances,
reflect ordinary course adjustments to the firm's previous hourly rates.

Headquartered in Southfield, Michigan, Federal-Mogul Corp.
-- http://www.federal-mogul.com/-- is an automotive parts company with
worldwide revenue of some $6 billion.  The Company filed for chapter 11
protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582).  Lawrence J.
Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley
Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang,
Ziehl, Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from their
creditors, they listed $10.15 billion in assets and $8.86 billion in
liabilities.  Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is
based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein
Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq.,
and Eric M. Sutty, Esq., at The Bayard Firm represent the Official
Committee of Unsecured Creditors. (Federal-Mogul Bankruptcy News, Issue
No. 117; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


FEDERAL-MOGUL: Trizec to Serve on Asbestos Claimants Panel
----------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3, appoints
Trizec Properties Inc. to serve on the Official Committee of Asbestos
Property Damage Claimants in Federal-Mogul Corp. and its
debtor-affiliates' chapter 11 cases.

According to Andrew R. Vara, Assistant United States Trustee, two members
voluntarily resigned from the Asbestos PD Committee:

   (a) The Hill School, effective Oct. 30, 2006; and

   (b) Richard Blythe, effective Dec. 6, 2006.

Moxie Real Estate is also out of the Asbestos PD Committee because it is
no longer eligible to serve on the committee.  Moxie's asbestos property
damage claim was expunged, and it is no longer a creditor by virtue of a
Court order dated
June 13, 2006, which sustained the Debtors' objection to asbestos property
damage claims that failed to comply with the Court's Bar Date Order.

The Asbestos PD Committee is now composed of:

   (1) Anderson Memorial Hospital
       c/o Speights & Runyan
       Attn: Daniel A. Speights
       P. O. Box 685
       200 Jackson Avenue, East
       Hampton, South Carolina 29924
       Tel: 803-943-4444
       Fax: 803-943-4599

   (2) Jacksonville College
       c/o Dies & Hile, LLP
       Attn: Martin W. Dies
       1009 West Green Avenue
       Orange, Texas 77630
       Tel: 409-883-4394
       Fax: 409-883-4814

   (3) Trizec Properties, Inc.
       c/o Philip J. Goodman
       280 N. Old Woodward, Ste 407
       Birmingham, Michigan 48009
       Tel: 248-647-9300
       Fax: 248-647-8481

Headquartered in Southfield, Michigan, Federal-Mogul Corp.
-- http://www.federal-mogul.com/-- is an automotive parts company with
worldwide revenue of some US$6 billion.  The Company filed for chapter 11
protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582).  Lawrence J.
Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley
Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang,
Ziehl, Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from their
creditors, they listed US$10.15 billion in assets and US$8.86 billion in
liabilities.  Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is
based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein
Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq.,
and Eric M. Sutty, Esq., at The Bayard Firm represent the Official
Committee of Unsecured Creditors. (Federal-Mogul Bankruptcy News, Issue
No. 122; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


FORD MOTOR: Expects to Become No. 3 as Toyota Gains No. 2 Rank
--------------------------------------------------------------
Ford Motor Co. expects to become the No. 3 company in U.S. auto sales as
early as January 2007, according to its sales forecast.  Ford has held the
No. 2 position in the American car market since the 1920s.

Rival Toyota Motor Corp. will gain the No. 2 spot behind General Motors as
it introduces its new Tundra truck in showrooms in February, published
reports say.

According to its own projections, Edmunds.com, which provides advice on
American car market, says light vehicle sales in 2007 will be near the
2006 levels of 16.5 million.

According to ConsumerAffairs.Com, Toyota will be close to unseating
General Motors as the world's biggest auto manufacturer because of high
demand from Brazil, Russia, India, and China.

                    About Ford Motor Co.

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

                        *    *    *

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

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

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


GLOBAL POWER: Committee Hires Schulte Roth as Counsel
-----------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware allowed the
Official Committee of Unsecured Creditors appointed in Global Power
Equipment Group Inc. and its debtor-affiliates' chapter 11 cases, to
employ Schulte Roth & Zabel LLP as its counsel.

Schulte Roth is expected to:

   a) assist and advise the Committee in its consultations with
      the Debtors, other committees, if any, and other parties-
      in-interest relative to the overall admnistration of the
      estates;

   b) represent the Committee at hearings to be held before the
      Court and communicate with the Committee regarding the
      matters heard and issues raised, as well as the decisions
      and considerations of the Court;

   c) assist and advise the Committee in its examination and
      analysis of the Debtors' financial affairs;

   d) review and analyze all applications, orders, operating
      reports, schedules and statements of financial affairs
      filed or to be filed with the Court by the Debtors or
      other interested parties in the Debtors' cases; advise the
      Committee as to the necessity and propriety of the
      foregoing and their impact on the rights of unsecured
      creditors, and upon the cases generally; and after
      consultation with and approval from the Committee or its
      designee(s), consent to appropriate orders on its behalf;

   e) assist the Committee in preparing appropriate legal
      pleadings and proposed orders as may be required in
      support of positions taken by the Committee and preparing
      witnesses and reviewing relevant documents;

   f) coordinate the receipt and dissemination of information
      prepared by and received from the Debtors' attorneys,
      accountants, financial advisors or other professionals
      retained in the Debtors' cases, as well as any information
      as may be received from other professionals engaged by the
      Committee and other committees;

   g) advise the Committee in connection with the Debtors'
      solicitation and filing with the Court of acceptances or
      rejections of any proposed plan or plans of
      reorganizations or liquidation; and

   f) perform all other necessary legal services and provide
      for, and all other necessary legal advice to, the
      Committee in these chapter 11 cases.

Jeffrey S. Sabin, Esq., at Schulte Roth, discloses that the firm's
professionals bill:

          Designation                 Hourly Rate
          -----------                 -----------
          Partners                  US$580 - US$800
          Special Counsel               US$550
          Associates                US$225 - US$525
          Legal Assistants          US$130 - US$265

Mr. Sabin assures the Court that his firm is a "disinterested person" as
that term is defined in Section 101(14) of the Bankruptcy Code.

Headquartered in Tulsa, Oklahoma, Global Power Equipment Group
Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides
power generation equipment and maintenance services for its
customers in the domestic and international energy, power and
infrastructure and service industries.  The Company designs,
engineers and manufactures a range of heat recovery and auxiliary
equipment primarily used to enhance the efficiency and facilitate the
operation of gas turbine power plants as well as for other industrial and
power-related applications.  The Company has facilities in Plymouth,
Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia;
Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The
Netherlands.

The Company and 10 of its affiliates filed for chapter 11
protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045).
Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the
Debtors.  The Official Committee of Unsecured Creditors appointed in the
Debtors' cases has selected Landis Rath & Cobb LLP as its counsel.  As of
Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and
total debts of US$123,221,000.  The Debtors' exclusive period to filed a
chapter 11 plan expires on Jan. 26, 2007.


GLOBAL POWER: Hires Alvarez & Marsal as Financial Advisor
---------------------------------------------------------
Global Power Equipment Group Inc. and its debtor-affiliates obtained
authority from the U.S. Bankruptcy Court for the District of Delaware to
employ Alvarez & Marsal LLC, as their financial advisor and restructuring
advisor, nunc pro tunc to the Sept. 28, 2006.

The firm will:

     a) assist with the analysis, evaluation and negotiation of
        the financial terms and structure of an amendment to the
        senior credit facility;

     b) assist with finding new sources of funding if necessary;

     c) assist with the evaluation and pursuit of a sales
        transaction;

     d) assist with the evaluation of the Debtors' businesses,
        including a potential sale of certain of the assets of
        the Debtors and its subsidiaries;

     e) assist with the evaluation of the Debtors' current
        business plan an preparation of a revised operating plan
        an cash flow forecast;

     f) assist with the identification of cost reduction and
        operations improvement opportunities;

     g) assist with development of a restructuring and
        reorganization plan for the Debtors;

     h) assist with the preparation of financial related
        disclosures required by the Court, including the monthly
        operating reports;

     i) assist with information and analyses required pursuant
        to any debtor-in-possession financing for the Debtors;

     j) assist with identification and implementation of short-
        term cash management procedures;

     k) assist with the response to and tracking of calls
        received from supplies;

     l) provide advisory assistance in connection with the
        development and implementation of key employee
        compensation and other critical employee benefit
        programs;

     m) assist with the identification of executory contracts
        and leases and performance of cost evaluations with
        respect to the affirmation or rejection of each;

     n) assist with the coordination of resources related to the
        ongoing reorganization effort;

     o) assist with the preparation of financial information for
        distribution to creditors and others, including, but not
        limited to, cash flow projections and budgets, cash
        receipts and disbursements analysis, analysis of various
        assets and liability accounts, and analysis of proposed
        transaction for which Court approval is sought;

     p) attend meetings and assist with discussions with
        potential investors, banks and other secured lenders,
        any official committee appointed in the Debtors' chapter
        11 cases, the U.S. Trustee, other parties in interest
        and professionals hired by the same;

     q) assist with the preparation of information and analysis
        necessary for the confirmation of a plan of
        reorganization in the Debtors' chapter 11 cases,
        including information contained in the disclosure
        statement;

     r) provide litigation advisory services with respect to
        accounting and tax matters, along, with expert witness
        testimony on case related issues as required by the
        Debtors; and

     s) render general business consulting or assistance as the
        Debtors' management or counsel may deem necessary that
        are consistent with the role of a financial advisor and
        not duplicative of services provided by other
        professionals in this proceeding;

The Debtors have agreed to pay the firm through:

     a) payment of an amendment success fee at the closing of an
        amendment to the senior credit facility, and at the
        closing of an amendment to the securities purchase
        agreement;

     b) payment of a senior refinancing success fee at the
        closing of a replacement senior credit facility,
        including DIP financing;

     c) payment of a junior refinancing success fee at the
        closing of a refinancing for junior capital raised;

     d) payment of a sales transaction success fee at the
        closing of any sales transaction, whether within the
        term of the firm engagement, within 12 months of the end
        of the term of the firm engagement if the firm
        meaningfully facilitated and contributed to the
        consummation, or later if within 12 months of the end of
        the term of the firm engagement an agreement is entered
        into that subsequent results in a sales transaction to
        which the firm meaningfully facilitated and contributed;

     e) payment of a restructuring transaction fee at the
        consummation of any restructuring into an agreement to
        effect a plan of reorganization that is also
        consummated.

To the best of the Debtors' knowledge, Alvarez & Marsal does not hold any
interest adverse to their estates or creditors.

Headquartered in Tulsa, Oklahoma, Global Power Equipment Group
Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides
power generation equipment and maintenance services for its
customers in the domestic and international energy, power and
infrastructure and service industries.  The Company designs,
engineers and manufactures a range of heat recovery and auxiliary
equipment primarily used to enhance the efficiency and facilitate the
operation of gas turbine power plants as well as for other industrial and
power-related applications.  The Company has facilities in Plymouth,
Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia;
Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The
Netherlands.

The Company and 10 of its affiliates filed for chapter 11
protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045).
Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the
Debtors.  The Official Committee of Unsecured Creditors appointed in the
Debtors' cases has selected Landis Rath & Cobb LLP as its counsel.  As of
Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and
total debts of US$123,221,000.  The Debtors' exclusive period to filed a
chapter 11 plan expires on Jan. 26, 2007.


GUESS?: Maurice Marciano Implements Trading Plan
------------------------------------------------
Guess?, Inc., reported that on Dec. 15, 2006, Maurice Marciano,
co-chairperson and co-chief executive officer in the firm, executed a plan
to sell shares of the company's common stock in accordance with Rule
10b5-1 under the Securities Exchange Act of 1934.

Under the plan, Mr. Marciano will sell under pre-arranged terms up to
300,000 shares held through a trust in open market transactions through
Feb. 9, 2007.

Rule 10b5-1 permits insiders to implement a written plan to sell stock
when they are not in possession of material non-public information and
continue to sell shares on a regular basis even if they receive such
information subsequently.  Such plans establish predetermined trading
parameters that do not permit the person adopting the plan to exercise any
subsequent influence over how, when or whether to effect trades.  Using
these plans, insiders can gradually diversify their investment portfolios,
spread stock trades out over an extended period of time to reduce market
impact and avoid concerns about transactions occurring at a time when they
might possess inside information.

Sales of common stock by Mr. Marciano pursuant to the terms of the plan or
otherwise will be disclosed publicly through Form 144 and Form 4 filings
with the Securities and Exchange Commission.

Guess?, Inc., -- http://www.guess.com-- designs, markets,
distributes and licenses a lifestyle collection of contemporary
apparel, accessories and related consumer products.  The company
owns and operates retail stores in the United States, Canada and
Mexico.  The company also distributes its products through
better department and specialty stores around the world.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on Dec. 8,
2006, Standard & Poor's Ratings Services raised its ratings on Los
Angeles-based specialty apparel retailer Guess? Inc. to 'BB' from 'BB-'.
S&P said the outlook is positive.


MERIDIAN AUTO: Assumption of 43 Contracts & Leases Approved
-----------------------------------------------------------
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 assume 43 Contracts and Leases.  Judge Walrath
directs the Debtors to pay cure amounts in connection with their
assumption of the Contracts and Leases.

A list of the Cure Amounts to be paid for each Contract or Lease
is available at no charge at http://ResearchArchives.com/t/s?1755

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).


METROFINANCIERA: Inks US$52.5 Million Credit Guarantee with IDB
---------------------------------------------------------------
Metrofinanciera, SA de CV, has signed a US$52.5-million equivalent partial
credit guarantee with the Inter-American Development Bank aka IDB.

The IDB partial credit guarantee covers US$175 million equivalent of
UDI-denominated notes that were issued today by Metrofinanciera and
subscribed by Deutsche Bank and its affiliates.  This mortgage warehouse
facility will be used by Metrofinanciera to originate and accumulate
mortgage pools prior to their securitization in the domestic or
international markets.

The guarantee was signed by:

          -- Armando Guzman Gonzalez, Metrofinanciera’s chief
             executive officer;

          -- Hiroshi Toyoda, the manager of the IDB’s private
             sector department;

          -- representatives of Banco Invex, the Security
             Trustee; and

          -- Deutsche Bank Trust Co. Americas, the Note Trustee.

Mr. Guzman said, "This warehouse facility will provide resources for Metro
to continue its strong growth in the individual mortgage market and,
through the MBS issues the facility will generate, enhance Metro’s
presence in the local and international capital markets.  The involvement
of the IDB was essential for us to be able to obtain this financing from
Deutsche Bank."

"Not only this is one of the first cross-border local currency Mexican
mortgage warehouse facilities, the partial credit guarantee provided by
the IDB enabled us to achieve the highest rating S&P has ever given to a
non-wrapped Latin American securitization," Brigitte Posch, who leads the
project team at Deutsche Bank, stated.

Hans Schulz, the head of the Financial Markets Team of the IDB’s private
sector department noted, "This transaction is the first signed project
that utilizes our new capacity to fully denominate guarantees in local
currency.  We are experiencing substantial demand for this product as it
allows the IDB to better address the needs of the region for local
currency financing solutions."

"During its term, the facility could finance mortgages for the purchase of
up to 25,000 low and middle-income homes and support the issuance of
US$800 million of mortgage-backed securities, providing both a major
social benefit for Mexico and stimulating the development of the capital
markets," Rahul Desai, IDB project team leader, commented.

The privately held Metrofinanciera is Mexico's fourth largest specialized
housing lending company, with a portfolio of MXN13.3 billion (USUS$1.25
billion) under administration at the end of 2005.  Founded in 1996 by
local businessmen, the Monterrey-based lender has developed a network of
six regional offices and 50 branches that operates nationwide.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on April 11,
2006, Fitch Ratings assigned the following ratings to
Metrofinanciera, a Mexican mortgage lender:

   -- Foreign Currency Long-term Issuer Default Ratings 'BB-';
   -- Foreign Currency Short-term IDR 'B';
   -- Local Currency Long-term IDR 'BB-';
   -- Local Currency Short-term IDR 'B';
   -- Individual Rating 'D';
   -- Support Rating '5'.

Fitch said the rating outlook is stable.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on April 3,
2006, Standard & Poor's Ratings Services assigned a 'BB-' long-term
counter party credit rating to Metrofinanciera SA de C.V. Sociedad de
Objeto Limitado.  S&P said the outlook is stable.


NORTEL NETWORKS: Eastman Kodak Renews Three-Year Management Pact
----------------------------------------------------------------
Eastman Kodak Company has agreed to a three-year renewal of an existing
agreement with Nortel Networks Corp. for management of its U.S. voice
network.

The renewal, calls for Nortel to continue managing Kodak's U.S. network of
PBXs and telephone services through 2008 and also includes upgrading an
existing Meridian SL-100 switch to an
IP-enabled Communication Server 2100.  The upgrade will allow the company
to provide VoIP capability when cost-effective for requirements like
worker mobility.

The company disclosed that it has outsourced its voice network to Nortel
since 1995 and will continue to benefit from Business Made Simple through
lower capital and operating costs.  Kodak will also gain an infrastructure
better prepared for future technologies without sacrificing previous
investments.

"We will continue to provide cost savings by operating and managing
Kodak's U.S. network," Nortel Global Services president Dietmar Wendt
said.

"And we'll work with Kodak to address both current and future needs -
including migration to VoIP if and when it makes sense - without requiring
them to take on the costs associated with buying, implementing and
operating new equipment."

Nortel provides network management and maintenance for the company's voice
network, including remote fault monitoring with proactive network
surveillance, customer-defined service level agreements for response and
resolution, moves and changes, comprehensive customer reporting, and
dedicated service management.

                    About Eastman Kodak

Headquartered in Rochester, New York, Eastman Kodak Co.
-- http://www.kodak.com/-- develops, manufactures, and markets digital
and traditional imaging products, services, and solutions to consumers,
businesses, the graphic communications market, the entertainment industry,
professionals, healthcare providers, and other customers.

                       About Nortel

Headquartered in Ontario, Canada, Nortel Networks Corp.
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.
Nortel does business in more than 150 countries including Mexico and Brazil.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service upgraded its B3 Corporate Family Rating for
Nortel Networks Corp. to B2.




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


CLIENTLOGIC CORP: SITEL Corp. Amends Merger Agreement
-----------------------------------------------------
SITEL Corp. and ClientLogic Corp. have entered into an amendment to the
previously announced Agreement and Plan of Merger among SITEL, ClientLogic
and Stagecoach Acquisition Corporation, dated Oct. 12, 2006.

Under the terms of the amendment, SITEL stockholders will receive US$4.25
in cash for each outstanding share of common stock of SITEL held, which
represents an increase of $0.20 per share in cash from the price of
US$4.05 per share in cash previously agreed with ClientLogic.

The Board of Directors of SITEL has unanimously approved the amendment to
the Merger Agreement.  The transaction is expected to be completed in the
first quarter of 2007 and remains subject to customary closing conditions,
including the approval of SITEL's stockholders.

On December 6, prior to SITEL entering into the amendment with
ClientLogic, The Gores Group, LLC and The Calgary Group, LLC and Jefferies
Capital Partners IV LLC revised their previously announced proposal to
acquire all of the outstanding shares of common stock of SITEL to lower
the proposed price of US$4.50 to US$4.25 per share in cash.

The amendment with ClientLogic required SITEL to terminate the existing
discussions with Gores/Calgary/Jefferies although it continues to permit
SITEL to respond to additional proposals from third parties in the event
the Board of Directors of SITEL determines in good faith after considering
advice from its outside advisors that failure to do so would be
inconsistent with its fiduciary obligations.

In addition, the amendment increases the expense reimbursement portion of
the amount payable by SITEL upon termination of the Merger Agreement in
circumstances involving an alternative acquisition proposal by US$1
million.

In connection with the proposed merger with ClientLogic, SITEL has set
Jan. 12, 2007, as the date of its 2006 Annual Meeting of Stockholders at
which SITEL will seek, among other things, stockholder approval of the
Merger Agreement, as amended.  Holders of record of SITEL common stock as
of 5:00 p.m., New York time, on Dec. 5, 2006 will be entitled to vote at
the meeting.  The meeting will be held at the Marriott Regency hotel,
10220 Regency Circle, in Omaha, Nebraska.

The US$4.25 to be paid in cash in the merger for each SITEL share
represents an approximate 37.5% premium over the volume-weighted average
closing price of SITEL common stock on the New York Stock Exchange for the
thirty days prior to the public announcement of the execution and delivery
of the Merger Agreement.

                     About ClientLogic

ClientLogic Corp. -- http://www.clientlogic.com/-- is a business process
outsourcing provider in the customer care and back office processing
industries.  ClientLogic's footprint spans 49 facilities in 13 countries:
Austria, Canada, France, Germany, India, Ireland, Mexico, Morocco,
Netherlands, Panama, Philippines, United Kingdom and the United States.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 18, 2006, Moody's
Investors Service placed ClientLogic Corporation's B3 corporate family
rating on review for possible upgrade after the company's disclosure of
its revised plan to merge with SITEL Corporation and SITEL's recent return
to filing timely financial statements with the SEC.


* PANAMA: Inks Free Trade Agreement with the United States
----------------------------------------------------------
Panama and the United States have inked a free-trade agreement on Dec. 19,
ending export tariffs and opening investment opportunities on both sides
once the pact is ratified by the US Congress.

The accord came two months after a US$5.3 billion expansion of the Panama
Canal was approved.  According to Bloomberg News, the pact would guarantee
American companies to have an opportunity to help build the canal
expansion.

Under the treaty, Panamanian construction firms are assured of at least
10% slice in the project, allaying local companies' fears of losing out to
foreign firms.

                        *    *    *

As reported on Dec. 14, 2006, Fitch Ratings affirmed the Republic of
Panama's long-term foreign currency issuer default rating of BB+.  Fitch
also affirmed the sovereign's long-term local currency IDR of BB+, the
short-term foreign currency IDR of B and the country ceiling of BBB+.
Fitch said the rating outlook is stable.




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


ADELPHIA COM: Judge Gerber Defers Decision on Plan Confirmation
---------------------------------------------------------------
The Honorable Robert J. Gerber, the United States Bankruptcy Judge for the
Southern District of New York overseeing the Adelphia Communications Corp.
reorganization case, disclosed additional information on the timing of a
decision regarding the confirmation of Adelphia's First Modified Fifth
Amended Joint Chapter 11 Plan of Reorganization.

Judge Gerber noted that a decision regarding confirmation would not be
rendered by Dec. 22, 2006, the deadline for the Effective Date contained
in Section 12.2(c) of the Plan.  Judge Gerber further noted that a
decision may not be rendered by
Dec. 31, 2006.  The Judge requested that the Settlement Parties let him
know whether they will execute a waiver of the deadline for the Effective
Date contained in Section 12.2(c).

As reported in yesterday's Troubled Company Reporter, the company filed
proposed changes to the Plan with the Court on Dec. 19, 2006, marked to
show changes against the version filed with the 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.

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.


DEVELOPERS DIVERSIFIED: Reports Dividends on Classes H & I Stock
----------------------------------------------------------------
Developers Diversified has declared its fourth quarter 2006 Preferred
Class H and Class I stock dividends.

    -- Fourth Quarter Preferred Class H Stock Dividend:
       US$0.460938 per depository share

Each Class H Depositary Share is equal to one twentieth of a share of
Developers Diversified's 7.375% Class H Cumulative Redeemable Preferred
Stock.  This dividend covers the period beginning on Oct. 15, 2006 and
ending on Jan. 14, 2007.  The declared Preferred Class H Dividend is
payable Jan. 16, 2007,
to shareholders of record at the close of business on
Dec. 29, 2006.

    -- Fourth Quarter Preferred Class I Stock Dividend: $0.46875
       per depository share

Each Class I Depositary Share is equal to one twentieth of a share of
Developers Diversified's 7.5% Class I Cumulative Redeemable Preferred
Stock.  This dividend covers the period beginning on Oct. 15, 2006, and
ending on Jan. 14, 2007.  The declared Preferred Class I Dividend is
payable Jan. 16, 2007, to shareholders of record at the close of business
on
Dec. 29, 2006.

Based in Beachwood, Ohio, Developers Diversified Realty Corporation --
http://www.ddr.com/-- currently owns and manages
over 500 retail operating and development properties in 44 states, plus
Puerto Rico and Brazil, totaling 118 million square feet.  The Company is
a self-administered and self-managed real estate investment trust
operating as a fully integrated real estate company which acquires,
develops and leases shopping centers.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 31, 2006,
Fitch Ratings affirmed Developers Diversified Realty Corporation's BB+
preferred stock rating.


MAXXAM INC: Says Federal Deposit Tries to Evade Court Sanction
--------------------------------------------------------------
MAXXAM Inc. said in a brief filed with the U.S. Court of Appeals for the
5th Circuit that the recent appeal of Federal Deposit Insurance Corp. aka
FDIC is an attempt to prolong the inevitable and avoid paying US$72
million in court-ordered sanctions to MAXXAM and Charles Hurwitz, its
chairperson.

The FDIC's appeal flies in the face of three prior conclusions
-- by a Federal Judge, an Office of Thrift Supervision (OTS)
Administrative Law Judge, and a U.S. Congressional Task Force
-- which have found that the FDIC's decade-long claims against MAXXAM and
Mr. Hurwitz were meritless and were improperly brought for political
purpose.

J. Kent Friedman, general counsel of MAXXAM, commented, "The FDIC
continues to disregard its numerous rebukes for wasting taxpayer dollars
in pursuit of its politically motivated and meritless litigation against a
private citizen.  We are confident that the end result of this appeal will
be complete exoneration for both Charles Hurwitz and MAXXAM with full
recognition that the FDIC has squandered its public trust by pursuing a
political claim while abandoning any semblance of fairness or
responsibility."

The ongoing legal battle results from a well-documented series of events
in the mid-1990s.  Environmental groups, Clinton administration officials
and the FDIC concocted a scheme to create a more than US$1-billion-dollar
lawsuit as leverage to force MAXXAM to trade to the government 4,000 acres
of old growth redwoods in Northern California owned by a subsidiary -- a
"debt for nature" swap.  Using frivolous claims, and despite warnings from
its internal legal counsel, the FDIC and the OTS sued Mr. Hurwitz and
MAXXAM in two separate legal proceedings, seeking in excess of US$1
billion.

OTS Administrative Law Judge Arthur Shipe issued a decision in
September 2001 in which he recommended that all charges against MAXXAM and
Mr. Hurwitz be dismissed.  In the wake of Judge Shipe's opinion, the OTS
settled with MAXXAM and Mr. Hurwitz in October 2002 for US$206,000.
MAXXAM and Mr. Hurwitz made no admission of wrongdoing.  The OTS
settlement caused the FDIC to drop its related lawsuit against Mr. Hurwitz
in November 2002.

In August 2005, U.S. District Judge Lynn Hughes issued a scathing rebuke
of the FDIC's case, ordering the FDIC to pay MAXXAM and Mr. Hurwitz US$72
million in legal fees.  Judge Hughes found that MAXXAM and Mr. Hurwitz
will recover their costs because the record reveals corrupt individuals
within a corrupt agency with corrupt influences on it, bringing this
litigation.  "

This is the final stage in a suit that should have never happened," Judge
Hughes said.

"The FDIC board and inspector general need to take a hard look at the
FDIC's past conduct as well as its current practices to make certain that
it is not abusing its power in an attempt to cover up its misdeeds," Mr.
Friedman stated.

The general counsel of MAXXAM, Inc., can be reached at:

          J. Kent Friedman
          8707 Pasture View Lane
          Houston, TX 77024
          USA
          Phone: 713-664-9787

Headquartered in Houston, Texas, MAXXAM Inc. (AMEX: MXM) operates
businesses ranging from aluminum and timber products to real estate and
horse racing.  MAXXAM's top revenue source is Kaiser Aluminum, which has
been in Chapter 11 bankruptcy since 2002.  MAXXAM's timber subsidiary,
Pacific Lumber, owns about 205,000 acres of old-growth redwood and Douglas
fir timberlands in Humboldt County, California.  MAXXAM's real estate
interests include commercial and residential properties in Arizona,
California, Texas, and Puerto Rico.  The Company also owns the Sam Houston
Race Park, a horseracing track near Houston.  Its chairperson and chief
executive officer, Charles Hurwitz, controls 77% of MAXXAM.




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


DIRECTV HOLDINGS: Fitch Affirms Issuer Default Rating at BB
-----------------------------------------------------------
Fitch has revised the rating outlook for DIRECTV Holdings LLC to stable
from positive.  These ratings have been affirmed:

   -- Issuer Default Rating at BB;
   -- Senior secured at BB+;
   -- Senior unsecured at BB.

DIRECTV is a wholly owned subsidiary of DIRECTV Group, Inc.  Approximately
US$3.4 billion of debt as of Sept. 30, 2006, is affected.

Fitch's Outlook revision follows the announcement that News Corp. and
Liberty Media Corp. have entered into a definitive agreement where NWS
will exchange its 38.4% ownership stake in DTVG (among other
considerations) for Liberty's ownership stake in NWS.  The transaction is
expected to close mid 2007.  From Fitch's perspective, the transaction and
the resultant change of DTVG's largest shareholder elevate the event risk
attributable to DIRECTV's credit profile.  Fitch believes that over time
Liberty's influence over DIRECTV's financial and operational strategy will
become stronger.  Initially, it is expected that Liberty will appoint 3
members to DTVG's board of directors replacing the board seats currently
held by NWS.  The rating outlook revision reflects the uncertain direction
of DTVG's future financial policies that will be driving the capital
structure of the company as well as the company's operating strategies
under the influence of Liberty.  Fitch points out that a large amount of
capacity exists under DIRECTV's loan agreement and bond indentures to
incur additional debt and that the cash flow from DIRECTV to DTVG is not
materially restricted.  These factors can provide Liberty with sufficient
flexibility to consider several alternatives when determining DIRECTV and
DTVG's ultimate capital structure.

Overall the ratings reflect the size and scale of DIRECTV's operations as
the second largest multichannel video-programming distributor in the
United States.  The ratings acknowledge the company's strong credit
protection metrics relative to its rating category, which is primarily
attributable to the company's improved operating profile and an accounting
change related to the treatment of customer premise equipment.
Additionally, Fitch notes that DIRECTV's EBITDA and free cash flow metrics
have in part been positively impacted by the slower pace of gross
additions.  Rating concerns center on DIRECTV's lack of revenue diversity
and narrow product offering relative to its cable MSO competition.  From
Fitch's perspective the company is in a weak competitive position to
respond to the service bundling strategy utilized by the cable MSOs and
eventually the telephone companies. Fitch believes that the confluence of
service offerings offered from the cable MSOs and the telephone companies
and the changes to the competitive landscape will increase the business
risks related to DIRECTV's credit profile.  As competition for subscribers
increase, Fitch believes that the DBS operators' (including DIRECTV and
Echostar Communications Corporation) market share is most at risk, and
Fitch would expect that DIRECTV may have to spend more SAC to acquire
subscribers and increase retention costs to retain existing subscribers
resulting in pressure on EBITDA margins and the company's ability to
sustain stable generation of free cash flow.




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


ABN AMRO: Moody's Ups Long-Term Foreign-Currency Rating to B2
-------------------------------------------------------------
Moody's Investors Service has upgraded the long-term foreign-currency
deposit ratings of several Uruguayan banks after raising Uruguay's country
ceiling for foreign currency bank deposits to B2, from Caa1. Uruguay's
country ceiling for foreign currency bonds and notes went to B1, up from
B3.

Moody's added that the outlooks on all of the ratings are stable.

The national scale ratings of foreign currency deposits were also upgraded
to A3.uy from their Ba2.uy level.  In addition, Banco Hipotecario's
national scale rating for its foreign currency debt was raised to A2.uy
from Baa2.uy after the sovereign action.

The foreign-currency deposit ratings of the following banks were upgraded
to B2 from Caa1.  National scale ratings of their foreign currency
deposits were also upgraded to A3.uy from Ba2.uy.

   -- ABN AMRO Bank N.V. Montevideo Branch
   -- BankBoston N.A. (Uruguay)
   -- Credit Uruguay Banco S.A.
   -- Lloyds TSB Bank plc (Uruguay)
   -- Banco Santander S.A. (Uruguay)
   -- Banco de la Republica Oriental del Uruguay
   -- Banco Hipotecario del Uruguay

Additionally, Moody's upgraded the bank financial strength rating of
Credit Uruguay Banco S.A.; Banco Santander S.A. (Uruguay) and Banco de la
República Oriental del Uruguay (BROU) to E+ from E because of improvements
in the banks' financial performance, during a relatively better operating
environment.

The outlooks on the BFSRs of Credit Uruguay Banco y Banco Santander are
positive, based on the expectation of further improvements in core
earnings.  Meanwhile, the banks are consolidating each franchise in the
midst of a very challenging market.  The outlook on the BFSR of Banco
República Oriental del Uruguay is stable based on the challenges that the
bank may face due to the still-pending restructuring of Banco Hipotecario,
the mortgage government bank, which may affect BROU's performance.

These ratings were affected:

ABN AMRO Bank N.V. Montevideo Branch

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

BankBoston N.A. (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Lloyds TSB Bank plc (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Credit Uruguay Banco S.A.

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Santander S.A. (Uruguay)

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco de la República Oriental del Uruguay

   -- Bank financial strength rating: up to E+, with a stable
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Hipotecario del Uruguay

   -- Foreign currency deposit rating: up to B2 from Caa1,
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

   -- National scale foreign currency debt rating: up to A2.uy
      from Baa2.uy


BANCO DE LA REPUBLICA: Moody's Ups Foreign-Currency Rating to B2
----------------------------------------------------------------
Moody's Investors Service has upgraded the long-term foreign-currency
deposit ratings of several Uruguayan banks after raising Uruguay's country
ceiling for foreign currency bank deposits to B2, from Caa1. Uruguay's
country ceiling for foreign currency bonds and notes went to B1, up from
B3.

Moody's added that the outlooks on all of the ratings are stable.

The national scale ratings of foreign currency deposits were also upgraded
to A3.uy from their Ba2.uy level.  In addition, Banco Hipotecario's
national scale rating for its foreign currency debt was raised to A2.uy
from Baa2.uy after the sovereign action.

The foreign-currency deposit ratings of the following banks were upgraded
to B2 from Caa1.  National scale ratings of their foreign currency
deposits were also upgraded to A3.uy from Ba2.uy.

   -- ABN AMRO Bank N.V. Montevideo Branch
   -- BankBoston N.A. (Uruguay)
   -- Credit Uruguay Banco S.A.
   -- Lloyds TSB Bank plc (Uruguay)
   -- Banco Santander S.A. (Uruguay)
   -- Banco de la Republica Oriental del Uruguay
   -- Banco Hipotecario del Uruguay

Additionally, Moody's upgraded the bank financial strength rating of
Credit Uruguay Banco S.A.; Banco Santander S.A. (Uruguay) and Banco de la
República Oriental del Uruguay (BROU) to E+ from E because of improvements
in the banks' financial performance, during a relatively better operating
environment.

The outlooks on the BFSRs of Credit Uruguay Banco y Banco Santander are
positive, based on the expectation of further improvements in core
earnings.  Meanwhile, the banks are consolidating each franchise in the
midst of a very challenging market.  The outlook on the BFSR of Banco
República Oriental del Uruguay is stable based on the challenges that the
bank may face due to the still-pending restructuring of Banco Hipotecario,
the mortgage government bank, which may affect BROU's performance.

These ratings were affected:

ABN AMRO Bank N.V. Montevideo Branch

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

BankBoston N.A. (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Lloyds TSB Bank plc (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Credit Uruguay Banco S.A.

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Santander S.A. (Uruguay)

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco de la República Oriental del Uruguay

   -- Bank financial strength rating: up to E+, with a stable
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Hipotecario del Uruguay

   -- Foreign currency deposit rating: up to B2 from Caa1,
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

   -- National scale foreign currency debt rating: up to A2.uy
      from Baa2.uy


BANCO HIPOTECARIO: Moody's Ups Foreign-Currency Rating to B2
------------------------------------------------------------
Moody's Investors Service has upgraded the long-term foreign-currency
deposit ratings of several Uruguayan banks after raising Uruguay's country
ceiling for foreign currency bank deposits to B2, from Caa1. Uruguay's
country ceiling for foreign currency bonds and notes went to B1, up from
B3.

Moody's added that the outlooks on all of the ratings are stable.

The national scale ratings of foreign currency deposits were also upgraded
to A3.uy from their Ba2.uy level.  In addition, Banco Hipotecario's
national scale rating for its foreign currency debt was raised to A2.uy
from Baa2.uy after the sovereign action.

The foreign-currency deposit ratings of the following banks were upgraded
to B2 from Caa1.  National scale ratings of their foreign currency
deposits were also upgraded to A3.uy from Ba2.uy.

   -- ABN AMRO Bank N.V. Montevideo Branch
   -- BankBoston N.A. (Uruguay)
   -- Credit Uruguay Banco S.A.
   -- Lloyds TSB Bank plc (Uruguay)
   -- Banco Santander S.A. (Uruguay)
   -- Banco de la Republica Oriental del Uruguay
   -- Banco Hipotecario del Uruguay

Additionally, Moody's upgraded the bank financial strength rating of
Credit Uruguay Banco S.A.; Banco Santander S.A. (Uruguay) and Banco de la
República Oriental del Uruguay (BROU) to E+ from E because of improvements
in the banks' financial performance, during a relatively better operating
environment.

The outlooks on the BFSRs of Credit Uruguay Banco y Banco Santander are
positive, based on the expectation of further improvements in core
earnings.  Meanwhile, the banks are consolidating each franchise in the
midst of a very challenging market.  The outlook on the BFSR of Banco
República Oriental del Uruguay is stable based on the challenges that the
bank may face due to the still-pending restructuring of Banco Hipotecario,
the mortgage government bank, which may affect BROU's performance.

These ratings were affected:

ABN AMRO Bank N.V. Montevideo Branch

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

BankBoston N.A. (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Lloyds TSB Bank plc (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Credit Uruguay Banco S.A.

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Santander S.A. (Uruguay)

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco de la República Oriental del Uruguay

   -- Bank financial strength rating: up to E+, with a stable
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Hipotecario del Uruguay

   -- Foreign currency deposit rating: up to B2 from Caa1,
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

   -- National scale foreign currency debt rating: up to A2.uy
      from Baa2.uy


BANCO SANTANDER: Moody's Raises Foreign-Currency Rating to B2
-------------------------------------------------------------
Moody's Investors Service has upgraded the long-term foreign-currency
deposit ratings of several Uruguayan banks after raising Uruguay's country
ceiling for foreign currency bank deposits to B2, from Caa1. Uruguay's
country ceiling for foreign currency bonds and notes went to B1, up from
B3.

Moody's added that the outlooks on all of the ratings are stable.

The national scale ratings of foreign currency deposits were also upgraded
to A3.uy from their Ba2.uy level.  In addition, Banco Hipotecario's
national scale rating for its foreign currency debt was raised to A2.uy
from Baa2.uy after the sovereign action.

The foreign-currency deposit ratings of the following banks were upgraded
to B2 from Caa1.  National scale ratings of their foreign currency
deposits were also upgraded to A3.uy from Ba2.uy.

   -- ABN AMRO Bank N.V. Montevideo Branch
   -- BankBoston N.A. (Uruguay)
   -- Credit Uruguay Banco S.A.
   -- Lloyds TSB Bank plc (Uruguay)
   -- Banco Santander S.A. (Uruguay)
   -- Banco de la Republica Oriental del Uruguay
   -- Banco Hipotecario del Uruguay

Additionally, Moody's upgraded the bank financial strength rating of
Credit Uruguay Banco S.A.; Banco Santander S.A. (Uruguay) and Banco de la
República Oriental del Uruguay (BROU) to E+ from E because of improvements
in the banks' financial performance, during a relatively better operating
environment.

The outlooks on the BFSRs of Credit Uruguay Banco y Banco Santander are
positive, based on the expectation of further improvements in core
earnings.  Meanwhile, the banks are consolidating each franchise in the
midst of a very challenging market.  The outlook on the BFSR of Banco
República Oriental del Uruguay is stable based on the challenges that the
bank may face due to the still-pending restructuring of Banco Hipotecario,
the mortgage government bank, which may affect BROU's performance.

These ratings were affected:

ABN AMRO Bank N.V. Montevideo Branch

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

BankBoston N.A. (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Lloyds TSB Bank plc (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Credit Uruguay Banco S.A.

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Santander S.A. (Uruguay)

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco de la República Oriental del Uruguay

   -- Bank financial strength rating: up to E+, with a stable
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Hipotecario del Uruguay

   -- Foreign currency deposit rating: up to B2 from Caa1,
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

   -- National scale foreign currency debt rating: up to A2.uy
      from Baa2.uy


BANKBOSTON (URUGUAY): Moody's Ups Foreign-Currency Rating to B2
---------------------------------------------------------------
Moody's Investors Service has upgraded the long-term foreign-currency
deposit ratings of several Uruguayan banks after raising Uruguay's country
ceiling for foreign currency bank deposits to B2, from Caa1. Uruguay's
country ceiling for foreign currency bonds and notes went to B1, up from
B3.

Moody's added that the outlooks on all of the ratings are stable.

The national scale ratings of foreign currency deposits were also upgraded
to A3.uy from their Ba2.uy level.  In addition, Banco Hipotecario's
national scale rating for its foreign currency debt was raised to A2.uy
from Baa2.uy after the sovereign action.

The foreign-currency deposit ratings of the following banks were upgraded
to B2 from Caa1.  National scale ratings of their foreign currency
deposits were also upgraded to A3.uy from Ba2.uy.

   -- ABN AMRO Bank N.V. Montevideo Branch
   -- BankBoston N.A. (Uruguay)
   -- Credit Uruguay Banco S.A.
   -- Lloyds TSB Bank plc (Uruguay)
   -- Banco Santander S.A. (Uruguay)
   -- Banco de la Republica Oriental del Uruguay
   -- Banco Hipotecario del Uruguay

Additionally, Moody's upgraded the bank financial strength rating of
Credit Uruguay Banco S.A.; Banco Santander S.A. (Uruguay) and Banco de la
República Oriental del Uruguay (BROU) to E+ from E because of improvements
in the banks' financial performance, during a relatively better operating
environment.

The outlooks on the BFSRs of Credit Uruguay Banco y Banco Santander are
positive, based on the expectation of further improvements in core
earnings.  Meanwhile, the banks are consolidating each franchise in the
midst of a very challenging market.  The outlook on the BFSR of Banco
República Oriental del Uruguay is stable based on the challenges that the
bank may face due to the still-pending restructuring of Banco Hipotecario,
the mortgage government bank, which may affect BROU's performance.

These ratings were affected:

ABN AMRO Bank N.V. Montevideo Branch

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

BankBoston N.A. (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Lloyds TSB Bank plc (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Credit Uruguay Banco S.A.

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Santander S.A. (Uruguay)

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco de la República Oriental del Uruguay

   -- Bank financial strength rating: up to E+, with a stable
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Hipotecario del Uruguay

   -- Foreign currency deposit rating: up to B2 from Caa1,
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

   -- National scale foreign currency debt rating: up to A2.uy
      from Baa2.uy


CREDIT URUGUAY: Moody's Ups Foreign-Currency Rating to B2
---------------------------------------------------------
Moody's Investors Service has upgraded the long-term foreign-currency
deposit ratings of several Uruguayan banks after raising Uruguay's country
ceiling for foreign currency bank deposits to B2, from Caa1. Uruguay's
country ceiling for foreign currency bonds and notes went to B1, up from
B3.

Moody's added that the outlooks on all of the ratings are stable.

The national scale ratings of foreign currency deposits were also upgraded
to A3.uy from their Ba2.uy level.  In addition, Banco Hipotecario's
national scale rating for its foreign currency debt was raised to A2.uy
from Baa2.uy after the sovereign action.

The foreign-currency deposit ratings of the following banks were upgraded
to B2 from Caa1.  National scale ratings of their foreign currency
deposits were also upgraded to A3.uy from Ba2.uy.

   -- ABN AMRO Bank N.V. Montevideo Branch
   -- BankBoston N.A. (Uruguay)
   -- Credit Uruguay Banco S.A.
   -- Lloyds TSB Bank plc (Uruguay)
   -- Banco Santander S.A. (Uruguay)
   -- Banco de la Republica Oriental del Uruguay
   -- Banco Hipotecario del Uruguay

Additionally, Moody's upgraded the bank financial strength rating of
Credit Uruguay Banco S.A.; Banco Santander S.A. (Uruguay) and Banco de la
República Oriental del Uruguay (BROU) to E+ from E because of improvements
in the banks' financial performance, during a relatively better operating
environment.

The outlooks on the BFSRs of Credit Uruguay Banco y Banco Santander are
positive, based on the expectation of further improvements in core
earnings.  Meanwhile, the banks are consolidating each franchise in the
midst of a very challenging market.  The outlook on the BFSR of Banco
República Oriental del Uruguay is stable based on the challenges that the
bank may face due to the still-pending restructuring of Banco Hipotecario,
the mortgage government bank, which may affect BROU's performance.

These ratings were affected:

ABN AMRO Bank N.V. Montevideo Branch

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

BankBoston N.A. (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Lloyds TSB Bank plc (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Credit Uruguay Banco S.A.

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Santander S.A. (Uruguay)

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco de la República Oriental del Uruguay

   -- Bank financial strength rating: up to E+, with a stable
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Hipotecario del Uruguay

   -- Foreign currency deposit rating: up to B2 from Caa1,
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

   -- National scale foreign currency debt rating: up to A2.uy
      from Baa2.uy


LLOYDS (URUGUAY): Moody's Ups Foreign-Currency Rating to B2
-----------------------------------------------------------
Moody's Investors Service has upgraded the long-term foreign-currency
deposit ratings of several Uruguayan banks after raising Uruguay's country
ceiling for foreign currency bank deposits to B2, from Caa1. Uruguay's
country ceiling for foreign currency bonds and notes went to B1, up from
B3.

Moody's added that the outlooks on all of the ratings are stable.

The national scale ratings of foreign currency deposits were also upgraded
to A3.uy from their Ba2.uy level.  In addition, Banco Hipotecario's
national scale rating for its foreign currency debt was raised to A2.uy
from Baa2.uy after the sovereign action.

The foreign-currency deposit ratings of the following banks were upgraded
to B2 from Caa1.  National scale ratings of their foreign currency
deposits were also upgraded to A3.uy from Ba2.uy.

   -- ABN AMRO Bank N.V. Montevideo Branch
   -- BankBoston N.A. (Uruguay)
   -- Credit Uruguay Banco S.A.
   -- Lloyds TSB Bank plc (Uruguay)
   -- Banco Santander S.A. (Uruguay)
   -- Banco de la Republica Oriental del Uruguay
   -- Banco Hipotecario del Uruguay

Additionally, Moody's upgraded the bank financial strength rating of
Credit Uruguay Banco S.A.; Banco Santander S.A. (Uruguay) and Banco de la
República Oriental del Uruguay (BROU) to E+ from E because of improvements
in the banks' financial performance, during a relatively better operating
environment.

The outlooks on the BFSRs of Credit Uruguay Banco y Banco Santander are
positive, based on the expectation of further improvements in core
earnings.  Meanwhile, the banks are consolidating each franchise in the
midst of a very challenging market.  The outlook on the BFSR of Banco
República Oriental del Uruguay is stable based on the challenges that the
bank may face due to the still-pending restructuring of Banco Hipotecario,
the mortgage government bank, which may affect BROU's performance.

These ratings were affected:

ABN AMRO Bank N.V. Montevideo Branch

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

BankBoston N.A. (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Lloyds TSB Bank plc (Uruguay)

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Credit Uruguay Banco S.A.

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: B2, up from Caa1, with a
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Santander S.A. (Uruguay)

   -- Bank financial strength rating: up to E+, with a positive
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco de la República Oriental del Uruguay

   -- Bank financial strength rating: up to E+, with a stable
      outlook

   -- Foreign currency deposit rating: up to B2 from Caa1, with
      a stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

Banco Hipotecario del Uruguay

   -- Foreign currency deposit rating: up to B2 from Caa1,
      stable outlook

   -- National scale rating for foreign currency deposits: up to
      A3.uy from Ba2.uy, with a stable outlook

   -- National scale foreign currency debt rating: up to A2.uy
      from Baa2.uy


NAVIOS MARITIME: Negotiating Acquisition of Kleimar Shares
----------------------------------------------------------
Navios Maritime Holdings Inc. has entered into an agreement providing for
an exclusive period to negotiate a definitive agreement to acquire all of
the shares of Kleimar NV.

Kleimar is a maritime transportation company focused primarily on the
capesize sector with an extensive contract of affreightment business
transporting cargo to China.

There can be no assurance that the parties will successfully negotiate and
execute a mutually acceptable definitive agreement.  Even if such an
agreement is executed, it is anticipated that closing would be subject to
additional conditions.

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: IMF Concludes Final Reviews Under Stand-By Agreement
---------------------------------------------------------------
The executive board of the International Monetary Fund aka IMF has
completed the fifth and sixth reviews under the three-year, US$1.15
billion Stand-By Arrangement for Uruguay.

As part of the reviews, the IMF executive board also granted waivers for
nonobservance of performance criteria, and completed a financing
assurances review.

On Nov. 8, 2006, the Uruguayan authorities disclosed that they would
shortly repay all outstanding obligations to IMF and cancel the Stand-By
Arrangement.  Full repayment of the equivalent of US$1.1 billion was made
on Nov. 30, 2006.

The Uruguayan authorities indicated that they wanted the arrangement to be
cancelled shortly after the completion of the fifth and sixth reviews.
They do not intend to make any disbursement associated with the reviews.

Murilo Portugal, deputy managing director and acting chairperson of IMF,
said, "The recovery of the Uruguayan economy from the crisis of 2002 has
exceeded all expectations, paving the way for an early exit from Fund
(IMF) financial support.  Sound policies and a supportive external
environment have delivered a sharp economic recovery and low inflation, a
declining debt ratio and rollover risk, and a vastly improved external
position.  The banking system, once at the center of the crisis, is now
substantially stronger-better capitalized and with tighter prudential
regulations to internalize risks from high financial dollarization."

"Continued policy efforts are needed to entrench macroeconomic stability,
deepen structural reforms, and further reduce vulnerabilities.  In the
fiscal policy area, the intention to pursue policies in 2007 consistent
with the medium-term primary surplus target of 4% of GDP (gross domestic
product), while maintaining appropriate levels of investment and social
spending, is welcomed, as high primary surpluses should remain at the core
of the strategy to reduce the debt burden and anchor policy credibility.
With the recent passage of the tax reform, a major milestone in the reform
agenda, preparations for its implementation in July 2007 need to proceed
vigorously.  It will also be important to move ahead with reform plans for
the budget, customs, the social security bank, and the specialized pension
schemes," Mr. Portugal noted.

Mr. Portugal commented, "While inflation is relatively low, the
authorities should stand ready to adjust policies should inflation
pressures emerge.  Continued central bank buildup of foreign exchange
reserves, consistent with exchange rate flexibility and the inflation
objectives, would help increase reserve coverage, which is not as high as
in other dollarized economies."

"In the financial sector, vulnerabilities need to be reduced further.
Passage and implementation of the financial sector law in 2007 will be key
to enhance central bank independence and strengthen the supervisory and
bank resolution frameworks.  Completing the restructuring of the housing
bank (BHU) into a viable institution in the near term will also be
important," Mr. Portugal stated.

                        *    *    *

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




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


PETROLEOS DE VENEZUELA: Joining Chaco Gas Fields Dev. in Bolivia
----------------------------------------------------------------
Petroleos de Venezuela SA and Yacimientos Petroliferos Fiscales Bolivianos
are awaiting approval from Bolivian energy authorities for the joint
development of the Chaco gas fields believed to hold 15 trillion cubic
feet of natural gas.

“We have been evaluating the possibility of joint certification and
exploitation of reserves ... in the Chaco area,” Venezuelan energy
minister and president of Petroleos de Venezuela, Rafael Ramirez, was
quoted by Reuters as saying.

"There are excellent possibilities," the minister said, adding the fields
are believed to contain "around 15 trillion cubic feet" of reserves,
Reuters relates.

The Venezuelan government has been a staunch supporter of Bolivia's
nationalization of its hydrocarbons sector.  The move is in line with
President Hugo Chavez's campaign to make Latin America self-sufficient and
free from the United States' influence.

Bolivia currently has around 49 trillion cubic of natural gas reserves,
Reuters says.

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+'.


                        ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
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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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