TCRLA_Public/061228.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
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


                         - - - - -


=================
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 Log°stica 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
-------------------------------------------------------------
New York, December 22, 2006

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 Rep£blica 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 Rep£blica 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 Rep£blica 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
----------------------------------------------------------------
New York, December 22, 2006

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 Rep£blica 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 Rep£blica 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 Rep£blica 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
------------------------------------------------------------
New York, December 22, 2006

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 Rep£blica 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 Rep£blica 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 Rep£blica 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
-------------------------------------------------------------
New York, December 22, 2006

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 Rep£blica 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 Rep£blica 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 Rep£blica 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
---------------------------------------------------------------
New York, December 22, 2006

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 Rep£blica 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 Rep£blica 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 Rep£blica 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
---------------------------------------------------------
New York, December 22, 2006

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 Rep£blica 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 Rep£blica 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 Rep£blica 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
-----------------------------------------------------------
New York, December 22, 2006

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 Rep£blica 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 Rep£blica 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 Rep£blica 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
----------------------------------------------------------
sheryl, Dec. 22 /PRNewswire

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
---------------------------------------------------------------
December 22, 2006
Sheryl
Imf cpr

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+'.


                            ***********


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

Troubled Company Reporter - Latin America is a daily newsletter
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Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella
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Copyright 2006.  All rights reserved.  ISSN 1529-2746.

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           * * * End of Transmission * * *