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        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Friday, January 5, 2007, Vol. 8, Issue 4

                          Headlines

A R G E N T I N A

CINTRA SRL: Names Luis Malanchino as Trustee for Bankruptcy Case
ESTABLECIMIENTO MADERERO: Claims Verification Is Until March 26
FRUTILLAAR SRL: Reorganization Proceeding Concluded
FUNDACION BANCO: Court Converts Reorganization to Bankruptcy
GAPEREN SAIFEI: Verification of Claims Is Until March 19

GOANA EXPRESS: Deadline for Verification of Claims Is March 20
GOMERIA LA BOUTIQUE: Asks for Court Okay to Reorganize Business
JUAN XIFRA: Names Eduardo Zalutzky as Bankruptcy Trustee
KF SRL: Last Day for Verification of Claims Is on Feb. 2
LA SUPERIOR: Asks for Court Approval to Reorganize Business

LAS QUINTAS: Reorganization Proceeding Concluded
PICKED SRL: Claims Verification Deadline Is Set for Feb. 13
RIO PERSONALES: Moody's LatAm Rates Class A Debt at Ba1
YPF SA: Parent Firm Inks Accord to Supply Argentina with Petcoke

* BUENOS AIRES: Senate Okays Tax Breaks for Small Enterprises

B E R M U D A

ALEA GROUP: Discloses 173,788,126 of Voting Rights
INTELSAT LTD: Unit to Redeem Outstanding US$1B Floating Notes
REFCO INC: Seeks to Reject 1997 Deal with SunGard Financial
REFCO INC: Court Okays Sale of Refco Global Shares to Bank Frick
WARNER CHILCOTT: Joins Foamix to Develop Treatment for Acne

B O L I V I A

BANCO ECONOMICO: Moody's Assigns E+ Financial Strength Rating
BANCO SOLIDARIO: Moody's Assigns E+ Financial Strength Rating
INTERNATIONAL PAPER: Completes Sale of Kraft Papers Business

B R A Z I L

BANCO NACIONAL: Grants Fixed Rate Financing for Procaminhoneiro
BANCO NACIONAL: Okays BRLMM Funding to Bago Revitalization
CENTRAIS ELECTRICAS: Seeks to Consolidate Units Into One Company
CENTRAIS ELECTRICAS: Chief Executive Officer Ready to Leave Post
CENTRAIS ELECTRICAS: Spending US$22B in Transmission, Generation

COMPANHIA PARANAENSE: Inks Power Plant Pact with Petrobras
DURA AUTOMOTIVE: Hires Kurtzman Carson as Claims & Notice Agent
DURA AUTOMOTIVE: Trustee Appoints HSBC Bank to Creditors' Panel
DURA AUTOMOTIVE: Wants to Pay US$1.1 Mil. Prepetition Tax Claims
GOL LINHAS: PN Shares Included in Ibovespa Index

GOL LINHAS: Fitch Assigns BB+ Issuer Default Ratings
INDUSTRIA E COMERCIO: Fitch Assigns B+ Issuer Default Ratings
INDUSTRIA E COMERCIO: S&P Assigns B Corporate Credit Rating
MCDERMOTT INT'L: Completes US$355 Million Settlement Payments
METSO OYJ: Finalizes Metso Powdermet AB's Sale to Sandvik AB

NRG ENERGY: Closes Sale of Red Bluff & Chowchilla II Power Plant
PETROLEO BRASILEIRO: Inks Power Plant Pact with Copel
PETROLEO BRASILEIRO: Reports Oil & Gas Viability in 3 Basins
TAM LINHAS: Fitch Assigns BB Issuer Default Ratings
UNIVERSAL CORP: Court Reduces Plaintiff Jury Award to US$1.25MM

C A Y M A N   I S L A N D S

ALPHA NOVA: Last Day to File Proofs of Claim Is on Jan. 11
APPLE BLOSSOM: Deadline for Proofs of Claim Filing Is Jan. 11
ARANCUS LTD: Proofs of Claim Filing Deadline Is on Jan. 11
BLUE BAY: Creditors Have Until Jan. 11 to File Proofs of Claim
BRANDERVIEW INVESTMENTS: Proofs of Claim Filing Is Until Jan. 11

CRABTREE LTD: Claims Filing Deadline Is Set for Jan. 11
EXIS HOLDINGS: Proofs of Claim Filing Deadline Is on Jan. 11
GOLDEN KEY: Creditors Have Until Jan. 11 to File Proofs of Claim
GOLDRIVER INVESTMENTS: Proofs of Claim Filing Is Until Jan. 11
GRAND DYNAMICS: Creditors Must Submit Proofs of Claim by Jan. 11

INSURCO INTERNATIONAL: Proofs of Claim Filing Is Until Jan. 11
KENBOW CO: Shareholders to Gather for Jan. 11 Final Meeting
LQ GOLFERS: Last Day for Proofs of Claim Filing Is on Jan. 11
MISUBA LTD: Last Day to File Proofs of Claim Is on Jan. 11
ONE'S MALL: Proofs of Claim Filing Deadline Is on Jan. 11

PRIMA INVESTMENTS: Last Day to File Proofs of Claim Is Jan. 11
REFLET LTD: Creditors Must File Proofs of Claim by Jan. 11
SCO PROPERTY: Deadline for Proofs of Claim Filing Is on Jan. 11

C H I L E

AES GENER: Presenting Environmental Study for Alto Maipo
BLOCKBUSTER INC: Subscriber Base Reaches Two Million at Year-End
ROCK-TENN: Discloses Coated Recycled Paperboard Price Increase

C O L O M B I A

GRAN TIERRA: James Hart Resigns as Chief Financial Officer
ECOPETROL: President Alvaro Uribe Okays Bill for Stake Sale

C O S T A   R I C A

GNC CORP: Supports Passage of Adverse Event Reports Bill

D O M I N I C A N   R E P U B L I C

BANCO INTERCONTINENTAL: Luis Alvarez Renta Discloses Assets

* DOMINICAN REPUBLIC: Placing DOP500MM Investment Certificates

G U A T E M A L A

GOODYEAR TIRE: S&P Affirms B+ Rating on New Labor Contract

H A I T I

* HAITI: CHF Secures Job Creation & Infrastructure Programs

M E X I C O

ALLIS-CHALMERS: Offers US$225MM Sr. Notes in Private Placement
ALLIS-CHALMERS: Offering 4.5 Million Shares of Common Stock
ADVANCED MARKETING: Case Summary & 40 Largest Unsec. Creditors
CONSTELLATION BRANDS: Affirms Joint Venture with Grupo Modelo
CONTINENTAL AIRLINES: Posts 79.5% December 2006 Load Factor

FEDERAL-MOGUL: Won't Transfer Mexican Unit's Equity Interest
FORD MOTOR: US December Sales Down 13%, Full 2006 Sales Down 8%
GENERAL MOTORS: US December Sales Down 9.6%, 2006 Sales Down 9%
NORTEL NETWORKS: Deploys CDMA to Telefonica O2 Czech Republic
SAFETY-KLEEN: Discloses Strategic Organizational Realignment

WILLIAMS SCOTSMAN: Expands Fleet Operations in Mexico

N I C A R A G U A

XEROX CORP: Names John McDermott Chief Information Officer

P E R U

COMVERSE TECHNOLOGY: S&P Retains Negative Watch on BB- Ratings
DOE RUN: Expects Nine Air Monitors to Meet National Standard
PHELPS DODGE: New Cerro Verde Starts Copper Concentrate Output
SAN IGNACIO: Completes Debt Repayment Process

P U E R T O   R I C O

BRIGHTPOINT INC: Partner Launching Services in Puerto Rico
CHATTEM INC: Closes US$410 Million Purchase of Five J&J Brands
FIRST BANCORP: Declares Payment of Preferred Dividends

T R I N I D A D   &   T O B A G O

BRITISH WEST: Injunction Against Disposal of Assets Withdrawn

U R U G U A Y

* URUGUAY: State Firm Inks Pact with National Land Settlement

V E N E Z U E L A

CITGO PETROLEUM: Former Gas Station Liable to Pollution
PETROLEOS DE VENEZUELA: Refining Ecuadorian Crude in February


                          - - - - -


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


CINTRA SRL: Names Luis Malanchino as Trustee for Bankruptcy Case
----------------------------------------------------------------
A court in Santa Fe appointed Luis Antonio Malanchino to supervise the
bankruptcy proceeding of Cintra SRL.  Under bankruptcy protection, Mr.
Malanchino takes control of the company's assets.


As trustee, Mr. Malanchino will:

   -- verify creditors' proofs of claim;

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

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

The trustee can be reached at:

            Luis Antonio Malanchino
            Santa Fe 1123, Rosario
            Santa Fe, Argentina


ESTABLECIMIENTO MADERERO: Claims Verification Is Until March 26
---------------------------------------------------------------
Alfredo Alberto A. Figliomeni, the court-appointed trustee for
Establecimiento Maderero El Bayano SA's bankruptcy proceeding, verifies
creditors' proofs of claim untl March 26, 2007.

Mr. Figliomeni will present the validated claims in court as individual
reports on May 28, 2007.   A court in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Establecimiento Maderero and
its creditors.

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

A general report that contains an audit of Establecimiento Maderero's
accounting and banking records will follow on
July 27, 2007.

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

The debtor can be reached at:

         Establecimiento Maderero El Bayano SA
         Avelino Diaz 42
         Buenos Aires, Argentina

The trustee can be reached at:

         Alfredo Alberto A. Figliomeni
         Agrelo 4240
         Buenos Aires, Argentina


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


FUNDACION BANCO: Court Converts Reorganization to Bankruptcy
------------------------------------------------------------
Fundacion Banco Almafuerte's creditors did not approve the settlement plan
that the company laid on the table, prompting a court in Buenos Aires to
covert its reorganization proceeding into a bankruptcy case.

Under bankruptcy protection, all of the debtor's assets will be liquidated
and proceeds distributed to creditors.

Ms. Marta Lucena will:

   -- verify creditors' proofs of claim;

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

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

The trustee can be reached at:

          Marta C. Lucena
          Parana 774
          Buenos Aires, Argentina


GAPEREN SAIFEI: Verification of Claims Is Until March 19
--------------------------------------------------------
Salvador Lamarchina, the court-appointed trustee for Gaperen SAIFeI's
bankruptcy proceeding, will verify creditors' proofs of claim until March
19, 2007.

Under the Argentine bankruptcy law, Salvador Lamarchina is required to
present the validated claims in court as individual reports.  A Court in
Buenos Aires will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and challenges
raised by Gaperen SAIFeI and its creditors.

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

Salvador Lamarchina will also submit a general report that contains an
audit of Gaperen SAIFeI's accounting and banking records.  The report
submission dates have not been disclosed.

The trustee can be reached at:

          Salvador Lamarchina
          Esmeralda 847
          Buenos Aires, Argentina


GOANA EXPRESS: Deadline for Verification of Claims Is March 20
--------------------------------------------------------------
Natalio Kinsbrunner, the court-appointed trustee for Goana Express SA's
bankruptcy proceeding, will verify creditors' proofs of claim until March
20, 2007.

Under the Argentine bankruptcy law, Natalio Kinsbrunner is required to
present the validated claims in court as individual reports.  A Court in
Buenos Aires will determine if the verified claims are admissible, taking
into account the trustee's opinion and the objections and challenges
raised by Goana Express and its creditors.

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

Natalio Kinsbrunner will also submit a general report that contains an
audit of Goana Express' accounting and banking records.  The report
submission dates have not been disclosed.

The trustee can be reached at:

          Natalio Kinsbrunner
          Marcelo T. de Alvear 1671
          Buenos Aires, Argentina


GOMERIA LA BOUTIQUE: Asks for Court Okay to Reorganize Business
---------------------------------------------------------------
Court No. 1 in Buenos Aires is studying the merits of Gomeria La Boutique
SRL's petition to reorganize its business after it stopped paying its
obligations on Nov. 30, 2006.

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

The debtor can be reached at:

         Gomeria La Boutique SRL
         Cordoba 1255
         Buenos Aires, Argentina


JUAN XIFRA: Names Eduardo Zalutzky as Bankruptcy Trustee
--------------------------------------------------------
A court in Buenos Aires appointed Eduardo Salomon Zalutzky to supervise
the bankruptcy proceeding of Juan Xifra e Hijos SRL.  Under bankruptcy
protection, control of the company's assets is transferred to Mr. Marin.

As trustee, Mr. Zalutzky will:

   -- verify creditors' proofs of claim;

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

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

The trustee can be reached at:

          Eduardo Salomon Zalutzky
          Lavalle 1523
          Cordoba, Argentina


KF SRL: Last Day for Verification of Claims Is on Feb. 2
--------------------------------------------------------
Maria C. Amandule, the court-appointed trustee for KF SRL's bankruptcy
proceeding, verifies creditors' proofs of claim until Feb. 2, 2007.

Ms. Amandule will present the validated claims in court as individual
reports on Mar. 16, 2007.   A court in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by KF SRL and its creditors.

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

A general report that contains an audit of KF SRL's accounting and banking
records will follow on May 3, 2007.

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

The trustee can be reached at:

         Maria C. Amandule
         Urquizo 1133
         Buenos Aires, Argentina


LA SUPERIOR: Asks for Court Approval to Reorganize Business
-----------------------------------------------------------
Court No 16 in Buenos Aires is studying the merits of La Superior SRL's
petition to reorganize its business after it stopped paying its
obligations on April 27, 2006.

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

The debtor can be reached at:

         La Superior SRL
         Heredia 207
         Buenos Aires, Argentina


LAS QUINTAS: Reorganization Proceeding Concluded
------------------------------------------------
Las Quintas SRL's reorganization proceeding has ended. Data published by
Infobae on its Web site indicated that the process was concluded after a
court in Tucuman approved the debt agreement signed between the company
and its creditors.


PICKED SRL: Claims Verification Deadline Is Set for Feb. 13
-----------------------------------------------------------
Ana Beatriz Bravo, the court-appointed trustee for Picked SRL's bankruptcy
proceeding, will verify creditors' proofs of claim until Feb. 13, 2007.

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

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

Ms. Bravo will also submit a general report that contains an audit of
Picked SRL's accounting and banking records.  The report submission dates
have not been disclosed.

Picked SRL was forced into bankruptcy at the behest of Nicanor Meza, whom
it owes US$19,125.

Clerk No. 4 assists the court in the proceeding.

The debtor can be reached at:

          Picked SRL
          Uruguay 1125
          Buenos Aires, Argentina

The trustee can be reached at:

          Ana Maria Beatriz
          25 de Mayo 596
          Buenos Aires, Argentina


RIO PERSONALES: Moody's LatAm Rates Class A Debt at Ba1
-------------------------------------------------------
Moody's Latin America has assigned a rating of Aaa.ar and of Ba1 to the
Class A Debt Securities of Fideicomiso Financiero Rio Personales I, issued
by Equity Trust Company SA acting solely in its capacity as issuer and
trustee.

The underlying assets of the trust are constituted by a pool of personal
loans originated by Banco Rio de la Plata S.A.  The ratings are based on
the following factors:

   -- The credit quality of the underlying assets;

   -- The initial subordination of 15% and the turbo-sequential
      payment structure;

   -- The interest rate swap, provided by Banco Rio de la
      Plata SA;

   -- The strong origination and underwriting procedures of
      Banco Rio;

   -- The ability of Banco Rio to act as servicer of the pool;

   -- The ability of Equity Trust to act as trustee
      in the transaction; and

   -- The legal structure of the transaction.

Equity Trust Company S.A. issued one class of floating-rate securities
(VRDA), and one class of subordinated Certificates, all denominated in
Argentine pesos.  The Class B Certificates will not receive any payments
until the VRDA are paid in full.

The rated securities are payable from the cash flow coming from the assets
of the trust, which is an amortizing pool of about 16,584 eligible
personal loans denominated in Argentine pesos, bearing fixed interest
rates, originated by Banco Rio SA, in an aggregate amount of ARL$
140,003,627.

The VRDA will bear a floating interest rate of CER plus 125 basis points.
The VRDA's interest rate has a ceiling of 25% p.a. and a floor of 6%.  The
trustee has entered in an interest swap agreement with Banco Rio, in order
to mitigate the mismatch between the interest rate of the assets and
liabilities.  According to the terms of the swap agreement, the fixed
interest rate to be paid by the trust under the swap will be 10.5%

Overall credit enhancement is comprised of an aggregate 15% subordination,
various reserve funds and excess spread.

Banco Rio is owned by Grupo Santander, which holds 99.33% of the voting
rights.  In line with its global and regional strategy, Santander provides
management, technological, and financial support to the Argentine
subsidiary, and its management coordinates the financial and marketing
activities on a centralized basis.

Banco Rio has a Ba2/Aaa.ar rating for local currency deposits.  In May
2006, Moody's upgraded the bank's financial strength rating to D- from E.
The upgrade reflects Rio's recovery from the financial crisis of 2001 and
underpins its successful efforts at cleaning its balance sheet.  The
upgrade also incorporates Rio's improving franchise and core earnings
potential.  Banco Rio is the private bank in Argentina with the largest
origination volume of personal loans as of October 30, 2006.

                       Rating Action

Originator: Banco Rio de la Plata SA.

   -- ARS$119,000,000 in VRDA of "Fideicomiso Financiero Rio
      Personales I", rated Aaa.ar and Ba1

Issuer: Fideicomiso Financiero Rio Personales I

   -- VRDA, Assigned Ba1


YPF SA: Parent Firm Inks Accord to Supply Argentina with Petcoke
----------------------------------------------------------------
Repsol, the parent company of YPF SA, has signed an agreement with the
Argentine federal planning, investment and services ministry and the
mining secretariat to supply 16,000 tons per month of petcoke to lime
producers, the secretariat said in a statement.

The secretariat told El Cronista that the agreement lasts for four years
and includes a special rate for small-scale lime producers.

The deal took effect on Jan. 1, El Cronista states, citing the secretariat.

YPF SA is an integrated oil and gas company engaged in the
exploration, development and production of oil and gas and
natural gas and electricity-generation activities (upstream),
the refining, marketing, transportation and distribution of oil
and a range of petroleum products, petroleum derivatives,
petrochemicals and liquid petroleum gas (downstream). Repsol,
which holds 99.04% of YPF's shares, controls YPF.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on
June 9, 2006, under the revised foreign currency ceilings,
Moody's Investors Service upgraded YPF Sociedad Anonima's
Foreign Currency Corporate Family Rating to B2 from B3 with
negative outlook.


* BUENOS AIRES: Senate Okays Tax Breaks for Small Enterprises
-------------------------------------------------------------
The Buenos Aires senate has ratified a series of benefits for small and
medium-sized enterprises, including tax breaks on their logistics and
software expenses, Infobae reports.

Business News Americas relates that the benefits are part of an industrial
promotion regime for small and medium-sized firms to be implemented this
year.

According to BNamericas, the benefits are:

          -- exemption of all provincial taxes for up to 10
             years,

          -- access to financing, and

          -- preferential conditions for bidding in provincial
             tenders.

Infobae underscores that small and medium-sized enterprises setting up new
plants in Buenos Aires will qualify for exemption from regular income tax.

The benefits are aimed at promoting the installation of new small and
medium-sized enterprises in Buenos Aires, as well as helping them to
obtain loans, BNamericas states.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on Nov. 16,
2006, in connection with Moody's Investors Service published rating
results of the application of the joint default analysis or JDA
methodology for non-US regional and local governments or RLGs in the
Americas, the rating agency affirmed the City of Buenos Aires' debt rating
at B1 and Aa2.ar, with a stable outlook.

                        *    *    *

Fitch Ratings upgraded the global scale foreign and local currency
unsecured debt ratings, including the euro medium-term note program, of
the City of Buenos Aires to 'B' from 'B-'.
Fitch has also upgraded the city's foreign and local currency issuer
default ratings from 'B-' to 'B'.  The Rating Outlook is
Stable.




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


ALEA GROUP: Discloses 173,788,126 of Voting Rights
--------------------------------------------------
In conformity with the Transparency Directive's transitional provision 6,
Alea Group Holdings (Bermuda) Ltd. notifies the market that as of Dec. 22,
2006, the issued share capital and voting rights of the company consisted
of 173,788,126 common US$0.01 shares each with voting rights attached (one
vote per common share).

There are no shares held in Treasury.

Therefore the total number of voting rights in Alea Group Holdings
(Bermuda) Ltd. is 173,788,126.

                        *    *    *

On Feb. 1, 2006, A.M. Best Co. downgraded the financial strength
rating to B from B++ and the issuer credit rating to "bb" from
"bbb" of the insurance and reinsurance operating subsidiaries of
Alea Group Holdings (Bermuda) Ltd. (collectively referred to as
Alea Group or Alea).

Subsequently, A.M. Best withdrew all ratings and assigned an
NR-4 (Company Request) to the Alea Group companies.

The downgrade followed significant deterioration in the
company's consolidated risk-adjusted capitalization as a result
of worse than anticipated performance in 2005 due to run-off
charges, catastrophe losses and further adverse reserve
development.  A.M. Best believed that the company is likely to
continue to be affected by high expenses related to the
transition of Alea Group into run off and the continuing
possibility of adverse reserve development.


INTELSAT LTD: Unit to Redeem Outstanding US$1B Floating Notes
-------------------------------------------------------------
Intelsat, Ltd., disclosed that Intelsat Subsidiary Holding Company, Ltd.
intends to redeem all of its outstanding US$1 billion Floating Rate Senior
Notes due 2012.

Intelsat Subsidiary Holding Company, Ltd., has issued a notice of
redemption pursuant to the indenture for the Notes stating that it intends
to redeem all of the Notes on Feb. 2, 2007, at a redemption price equal to
101% of the principal amount of the Notes plus accrued and unpaid interest
thereon to the Redemption Date.  The redemption of the Notes is
conditioned upon Intelsat Subsidiary Holding Company, Ltd., receiving
sufficient funds on the Redemption Date from a term loan borrowing by its
parent Intelsat (Bermuda), Ltd.  The term loan borrowing is expected to be
made pursuant to a new unsecured credit agreement that Intelsat (Bermuda),
Ltd. intends to enter into to fund the Redemption Payment, which borrowing
will be guaranteed by Intelsat Subsidiary Holding Company, Ltd. and the
same subsidiaries of Intelsat Subsidiary Holding Company, Ltd. that
guarantee the Notes.

Intelsat, Ltd. - http://www.intelsat.com/-- offers telephony,
corporate network, video and Internet solutions around the globe
via capacity on 25 geosynchronous satellites in prime orbital
locations.  Customers in approximately 200 countries rely on
Intelsat's global satellite, teleport and fiber network for
high-quality connections, global reach and reliability.

On June 12, 2006, Moody's Investor Service affirms Intelsat
(Bermuda) Ltd.'s ratings:

      -- New Guaranteed Sr. Notes: Assigned B2,

      -- New Sr. Notes: Assigned Caa1, and

      -- Sr. Discount Notes, due 2015: Downgraded to Caa1 from
         B3 (these notes will be moved to Intelsat Intermediate
         Holding Company Ltd. Upon closing of the merger).


REFCO INC: Seeks to Reject 1997 Deal with SunGard Financial
-----------------------------------------------------------
Refco Inc. and its debtor-affiliates seek U.S. Bankruptcy
Court for the Southern District of New York's authority to reject a May
1997 Remote Processing Agreement between SunGard Financial Systems Inc.,
and Refco Group Ltd., LLC, effective as of March 31, 2007.

J. Gregory St. Clair, Esq., at Skadden, Arps, Slate, Meagher
& Flom LLP, in New York, relates that the software provided
pursuant to the SunGard Contract was utilized by Refco Capital
Markets, Ltd., and Refco Securities, LLC, in trading operations
of the Debtors' businesses.  The software was also generally used for
booking trades against the Debtors' stock records and
supplying the general ledger with accounting information
regarding sale proceeds and other receipts, like redemptions,
interest and dividend payments.

Monthly charges under the SunGard Contract total approximately
US$300,000.  The SunGard Contract currently terminates on
Oct. 31, 2008.

Mr. St. Clair tells Judge Drain that since the Debtors are in the final
stages of winding up their operations, the services
provided pursuant to the SunGard Contract will no longer be
needed after the Rejection Date.

Mr. St. Clair continues that subsequent to confirmation of the
Debtors' Chapter 11 Plan, only RCM will utilize the services to
complete any processing and reporting of trades necessary to
liquidate its securities portfolio and wind up its affairs.
After RCM's securities portfolio is substantially liquidated, the primary
use for services provided under the SunGard Contract will relate to the
storage of historical records and access to
archived customer account information, he adds.

By the Rejection Date, the Debtors expect that they will hold few open
securities positions.  As the remaining securities are
liquidated, the Debtors will track the liquidation of those
positions using a spreadsheet and will manually input accounting
information into the general ledger.

The Debtors believe that they will be able to access archived
data through a replicated database in a different software
system, which they are currently utilizing for their schedules
and claims analysis.

To the extent that SunGard seeks to assert a rejection damage
claim resulting from the rejection of the SunGard Contract, the
breach giving rise to those damages will be deemed to have
occurred immediately before December 1, 2006.

The Debtors ask the Court to establish the deadline for filing
the Rejection Damage Claim as 30 days after the Motion is
granted.

                      About Refco Inc.

Headquartered in New York City, Refco Inc. (OTC: RFXCQ) --
http://www.refco.com/-- is a diversified financial services organization
with operations in 14 countries and an extensive global institutional and
retail client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the most active
members of futures exchanges in Chicago, New York, London and Singapore.
In addition to its futures brokerage activities, Refco is a major broker
of cash market products, including foreign exchange, foreign exchange
options, government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.  Refco is
one of the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11 protection on
Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts to the
Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).

Refco Commodity Management, Inc., formerly known as CIS Investments, Inc.,
a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436).  (Refco Bankruptcy News, Issue No. 51; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                        Plan Update

On Sept. 14, 2006, Refco, Inc., and 25 of its subsidiaries, along with
Marc S. Kirschner, the Chapter 11 Trustee for the estate of Refco Capital
Markets, Ltd., delivered a Chapter 11 plan of reorganization and
accompanying Disclosure Statement to the Court.

On Oct. 10, 2006, the Debtors filed an Amended Plan and Disclosure
Statement and on Oct. 13, filed a Modified Amended Disclosure Statement.
On Oct. 16, 2006, the Court gave its tentative approval on the Disclosure
Statement and the Court Clerk entered an order on Oct. 20, 2006.

On Dec. 15, the Modified Joint Chapter 11 Plan of Refco Inc. and
certain of its direct and indirect subsidiaries, including Refco
Capital Markets, Ltd., and Refco F/X Associates LLC, was confirmed by the
Court.  That Plan became effective on
Dec. 26, 2006.


REFCO INC: Court Okays Sale of Refco Global Shares to Bank Frick
----------------------------------------------------------------
The Hon. Robert Drain of the U.S. Bankruptcy Court for the
Southern District of New York in Manhattan approved the Restated Share
Sale and Purchase Agreement, dated Nov. 30, 2006, between Refco Global
Finance Ltd. and Bank Frick & Co. Aktiengesellschaft.

Pursuant to the Restated Purchase Agreement, Refco Global will
sell 80 registered shares to Bank Frick for US$1,350,000.

The Shares, with restricted transferability and each with a nominal value
of CHF10,000, constitute 4% of outstanding share capital of Bank Frick.

Refco Global will assign and transfer to Bank Frick all of the seller's
rights, title, and interest in and to the Shares, free and clear of all
liens, claims, and encumbrances as permitted by Section 363 of the
Bankruptcy Code.

                      About Refco Inc.

Headquartered in New York City, Refco Inc. (OTC: RFXCQ) --
http://www.refco.com/-- is a diversified financial services organization
with operations in 14 countries and an extensive global institutional and
retail client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the most active
members of futures exchanges in Chicago, New York, London and Singapore.
In addition to its futures brokerage activities, Refco is a major broker
of cash market products, including foreign exchange, foreign exchange
options, government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.  Refco is
one of the largest global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11 protection on
Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts to the
Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).

Refco Commodity Management, Inc., formerly known as CIS Investments, Inc.,
a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436).  (Refco Bankruptcy News, Issue No. 51; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                        Plan Update

On Sept. 14, 2006, Refco, Inc., and 25 of its subsidiaries, along with
Marc S. Kirschner, the Chapter 11 Trustee for the estate of Refco Capital
Markets, Ltd., delivered a Chapter 11 plan of reorganization and
accompanying Disclosure Statement to the Court.

On Oct. 10, 2006, the Debtors filed an Amended Plan and Disclosure
Statement and on Oct. 13, filed a Modified Amended Disclosure Statement.
On Oct. 16, 2006, the Court gave its tentative approval on the Disclosure
Statement and the Court Clerk entered an order on Oct. 20, 2006.

On Dec. 15, the Modified Joint Chapter 11 Plan of Refco Inc. and
certain of its direct and indirect subsidiaries, including Refco
Capital Markets, Ltd., and Refco F/X Associates LLC, was confirmed by the
Court.  That Plan became effective on
Dec. 26, 2006.


WARNER CHILCOTT: Joins Foamix to Develop Treatment for Acne
-----------------------------------------------------------
Warner Chilcott Co., Inc., and Foamix Ltd. have signed an agreement to
jointly develop an antibiotic foam for the treatment of acne.

Under the terms of this agreement, Foamix will be responsible for
developing the foam formulations and Warner Chilcott will have an option
to continue definitive development and worldwide commercialization of the
product.  Additional terms were not disclosed.

"We believe that Foamix foam offers an appealing way to deliver treatment
to patients with acne," said Roger Boissonneault, Chief Executive Officer
and President of Warner Chilcott.

"We are very proud to partner with an industry leader such as Warner
Chilcott," said Foamix CEO Dr. Dov Tamarkin.  "Foam offers properties that
increase usability, encourage compliance and boost user satisfaction.
Foamix foams are alcohol-free and able to effectively deliver a broad
range of actives.  Together with Warner Chilcott, we are working to create
a premium foam product that will be suitable for the treatment of facial
acne, as well as acne of the chest and back."

Headquartered in Hamilton, Bermuda, Warner Chilcott Ltd. --
http://www.warnerchilcott.com/-- is the holding company for a host of
pharmaceutical makers.  Women's health care products, including hormone
therapies (femhrt and Estrace Cream) and contraceptives (Estrostep,
Loestrin, and OvCon), are the company's largest segment.  Other products
include dermatology treatments for acne (Doryx) and psoriasis (Dovonex and
Taclonex).  US subsidiary Warner Chilcott, Inc. makes prescription drugs
for dermatology and women's health; other subsidiaries provide services in
data management systems, pharmaceutical development, manufacturing, and
chemical development.

                        *    *    *

Standard & Poor's Ratings Services raised on Sept. 27, 2006, its ratings
on Warner Chilcott Corp.  The corporate credit rating was raised to 'B+'
from 'B'.  At the same time, the ratings were removed from CreditWatch,
where they were placed with positive implications on June 13, 2006,
following the company's announcement that it was planning an IPO, with the
bulk of proceeds to be used for debt reduction.  The rating outlook is
stable.

Moody's Investors Service revised on Oct. 9, 2006, the rating outlook on
Warner Chilcott Company, Inc., and related entities to positive from
stable, and affirmed the existing ratings, including the B2 corporate
family rating.  At the same time, Moody's upgraded the speculative grade
liquidity rating to SGL-2 from SGL-3.  In addition, Moody's withdrew the
B1 senior secured term loan rating on Warner Chilcott Holdings Company
III, Limited following the repayment of this tranche of debt.




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


BANCO ECONOMICO: Moody's Assigns E+ Financial Strength Rating
-------------------------------------------------------------
Moody's Investors Service assigned first-time ratings to Banco Economico SA:

   -- a bank financial strength rating of E+;

   -- long- and short-term global local-currency deposit
      ratings of B3 and Not Prime.

Moody's also assigned long- and short- term global foreign-currency
deposit ratings of Caa1 and Not Prime to Economico.  Moreover, first-time
national scale ratings for local-currency deposits of Aa3.bo and A2.bo for
foreign-currency were assigned as well.  The outlook on all of these
ratings is stable.

Moody's said that the bank financial strength rating for Economico
incorporates the entity's good capitalization and liquidity levels,
although the agency noted that the bank holds only a relatively small
market position in the banking business.  The low BFSR also reflects the
improving -- but still uncertain  -- operating environment in Bolivia,
Moody's added, as well as the increasing competition in the bank's core
market.

The local-currency deposit ratings signify the high level of dollarization
of the Bolivian economy.   Moreover, the foreign-currency deposit ratings
are constrained by the Bolivian country ceiling for foreign currency
deposits.  The foreign-currency national scale rating is much lower than
the rating for the local-currency national scale because it reflects
foreign currency transferability and convertibility risk.

Founded in 1991 in Santa Cruz, the richest part of Bolivia, Banco
Economico SA, was initially conceived as a bank for small and medium-sized
enterprises.  Since 1999, the institution has also been developing retail
and corporate franchises, and its management is engaged in increasing the
bank's market presence.

The following ratings were assigned to Banco Economico S.A.:

   -- Bank Financial Strength Rating: E+, stable outlookp;

   -- Long-Term Global Local-Currency Deposit Rating:
      B3, stable outlook;

   -- Short-Term Local-Currency Deposit Rating: Not Prime,
      stable outlook;

   -- Long -Term Foreign-Currency Deposit Rating:
      Caa1, stable outlook;

   -- Short -Term Foreign-Currency Deposit
      Rating: Not Prime, stable outlook;

   -- National Scale Rating for Local-Currency Deposits:
      Aa3.bo stable outlook; and

   -- National Scale Rating for Foreign-Currency
      Deposits: A2.bo, stable outlook.


BANCO SOLIDARIO: Moody's Assigns E+ Financial Strength Rating
-------------------------------------------------------------
Moody's Investors Service assigned first-time ratings to Banco Solidario SA:

   (1) a bank financial strength rating of E+ with positive
       outlook; and

   (2) a long- and short-term global local currency deposit
       ratings of B1 and Not Prime.

Moody's also assigned long- and short-term global foreign-currency deposit
ratings of Caa1 and Not Prime to Banco Solidario SA.  Moreover, first-time
national scale ratings for local-currency deposits of Aa1.bo and A1.bo for
foreign-currency were assigned, as well.  The outlook on the deposit
ratings is stable.

Moody's said that the E+ bank financial strength rating for Banco
Solidario reflects good solvency and efficiency, in addition to its
adequate financial metrics and strong market position as a leader of the
microfinance segment.  Banco Solidario's outlook is related to its growth
potential in this vibrant business niche -- one that has grown strongly in
recent years -- boosted by credit demands that have not been yet
satisfied.

However, at E+, the BFSR is still low.  Moody's said that this reflects
the improving, but still uncertain operating environment in Bolivia and
the growing competition within the microfinance segment.

The local-currency deposit ratings incorporate the difficulties inherent
in Bolivian economy's high level of dollarization.  The foreign-currency
deposit ratings are constrained by Bolivia's country ceiling for foreign
currency deposits.  The foreign-currency national scale rating is much
lower than the rating for the local- currency national scale because it
reflects foreign currency transferability and convertibility risk.

Founded in 1995, Banco Solidario is one of the leading microfinance
lenders in Latin America and it is first such grant-based NGO to be turned
into a commercial bank.  Banco Solidario remains a main reference within
its niche, as the bank provides financing to numerous small clients that
would not be served otherwise.

The following ratings were assigned to Banco Solidario SA:

   -- Bank Financial Strength Rating: E+, positive outlook;

   -- Long- Term Global Local-Currency Deposit Rating:
      B1, stable outlook;

   -- Short- Term Local- Currency Deposit Rating: Not Prime,
      stable outlook;

   -- Long -Term Foreign-Currency Deposit Rating: Caa1,
      stable outlook;

   -- Short -Term Foreign-Currency Deposit Rating: Not Prime,
      stable outlook;

   -- National Scale Rating for Local-Currency Deposits: Aa1.bo
      stable outlook; and

   -- National Scale Rating for Foreign-Currency Deposits:
      A1.bo, stable outlook.


INTERNATIONAL PAPER: Completes Sale of Kraft Papers Business
------------------------------------------------------------
International Paper closed on the sale of its Kraft papers business to
Stone Arcade Acquisition Corp. for approximately US$155 million and two
payments totaling up to US$60 million, payable five years from the close
of the transaction, contingent upon business performance.  The Kraft
papers business includes the Roanoke Rapids, N.C., mill and the Fordyce,
Ark., Ride Rite dunnage bag plant.

The Kraft papers business, which will now be known as KapStone Paper and
Packaging Corporation, produces approximately 400,000 tons of Kraft
papers, used in a variety of end-use products including approximately 9
million Ride Rite dunnage bags.  The business employs approximately 700
people.

                      About Stone Arcade

Founded in 2005, Stone Arcade Acquisition Corporation is a publicly traded
specific purpose acquisition corporation.  Stone was formed for the
purpose of identifying and effecting an asset acquisition or business
combination with an unidentified business in the paper, packaging, forest
products and related industries.

                    About International Paper

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

                        *    *    *

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




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


BANCO NACIONAL: Grants Fixed Rate Financing for Procaminhoneiro
---------------------------------------------------------------
Banco Nacional Desenvolvimento Economico e Social aka BNDES approved an
important change in the Procaminhoneiro, a financing program for truck
drivers, that will increase the program's benefits.  From now on, besides
the alternative of interest rate entailed to the fluctuations of the
long-term interest rate or TJLP, the self-employed cargo transporters will
also be financed under fixed interest rates.

The main advantage brought by the alteration, besides enabling a better
installment payment planning, is the reduction of the installments' amount
in the initial amortization period in relation to the previous system.
With the new credit modality, the first installment payment of a
BRL100,000 financing, for example, would be BRL1,804.57, an amount
inferior to the BRL2,215.03 paid under the previous financing system, with
variable rates.  Despite that advantage be reduced throughout the
financing payment period, the modality is a good option for clients that
long for predictability.

For this financing system, BRL300 million was determined respecting the
total program resource limit of BRL1 billion.  The effective interest rate
is of up to 13.5% per year, given that 5.5% per year is towards
compensation of the accredited financial institution, which acts as
transferring agent, and the rest equals the 6.5% TJLP per year, plus 1.5%
belonging to BNDES.

Launched by the Bank on March 2006, the Procaminhoneiro was created to
finance the acquisition of trucks, truck chassis and wagons produced in
Brazil with up to eight years of manufacturing.  The main objective of the
program is to broaden the access to credit on the trucker's side and at
the same time strengthen the productive chain of capital goods,
contributing for the improvement of economic efficiency through the
reduction of the Brazilian truck fleet average used life.  The financing
payment limit continues to be up to 84 months and the participation in the
credit is of up to 100%.

Up to the end of December 2006, the Bank approved 252 operations related
to the Procaminhoneiro program, equivalent to financings of BRL30.2
million.  From that total, BRL20.3 million corresponds to new vehicles,
BRL5.9 million to trucks with up to eight years of manufacturing and the
remaining balance relates to equipment, such as chassis.  Furthermore,
approximately 200 operations are under analysis of financial agents,
totaling BRL26 million.

In October this year, BNDES's Board of Directors had already approved
alterations in the program.  Among the main changes, one finds the
authorization so that micro-companies from the highway cargo
transportation segment and from lessor companies could have access to the
financing, besides having the possibility to be eligible to financings of
more than one complete unit (chassis and wagon) per beneficiary.

Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank.  It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.

                        *    *    *

As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook on both of Banco Nacional de
Desenvolvimento Economico e Social SA's foreign and local
currency counterparty credit ratings:

   -- Foreign currency counterparty credit rating
      * to BB/Positive/-- from  BB/Stable/--

   -- Local currency counterparty credit rating
      * to BB+/Positive/-- from BB+/Stable/--


BANCO NACIONAL: Okays BRLMM Funding to Bago Revitalization
----------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA aka BNDES has
approved a BRL1.3-million funding to the cultural revitalization of the
city of Bage in Rio Grande do Sul.

Of the BRL1.3 million, BRL800,000 will be destined to the cultural project
Restoration of Bage's Mayor's Office Administrative Center and a total of
up to BRL500,000 towards the recovery of the Culture Office that is
established in the Pedro Osorio Palace.

The project designed for Bage's Mayor's Office Administrative Center
purposes the recovery of the old railway station of the city.  The
building is located in an area of great visibility and is found decayed by
the actions of time and by the numerous internal modifications done
throughout the years, which caused the original plant of the old railway
station to lose its characteristics.  The actions aim at its use as a
space reserved for the arts to be named BNDES Exhibit Room.  The
restoration integrates a group of urban revitalization and historical
patrimony actions, planned and implemented by the Mayor's Office.

It is also part of the project the reformation and revitalization of the
entrance hall space.  There, it will be carried out an impermeabilization
work and works directed to the structure, roofs and flooring, besides wall
tiles, frames, water installations, sewage, pluvial elevators, outside
walls, glasses and restrooms.

The edifice of the old railway station was built in 1929, after a fire
that destroyed the first station, built back in 1884.  Comprising two
floors with glass marquises supported by crafted iron, the building
started to integrate the city's scenery through the motion generated by
the cargo and passenger transportation, alluring people to the train
departures and arrivals.  In 1970, the train tracks left the downtown area
of the city and the building was turned to the auspices of the Mayor's
Office of Bage.

The project provides the restoration of the Pedro Osorio Palace, in which
spaces for the community will be opened purposing the development of
several cultural activities guided towards the plastic and scenic arts and
towards music.  It provided the installation of the municipal picture
gallery collection and the adaptation of Dr. Pedro Osorio's office,
purposing to render it attractive to public visits.

Internal floorings and mortar beds will be recovered, as well as internal
and external wall tiles of decaying walls, roofs, partial coverage, and
part of the electric and telephone installations.  The auditorium will be
prized with lighting apparels and chairs.

The palace harbors students from the state school situated in the area and
always provides space for meetings, lectures and gatherings for up to 300
people.  Besides being the headquarters of the administrative sector of
the Municipal Culture Office, one finds handicraft and acoustic guitar
workshops being offered in its facilities.  The cultural use of its spaces
cannot be more widely used due to the poor conditions of the building.

The support provided by BNDES took under consideration the wide public
benefits yielded by the projects, the connection with cultural, education,
social, urban or tourism programs, the sustainability of the plan and the
situation of the surrounding area.

The city of Bage was founded in 1811 and is located in the Southwest
region of the State of Rio Grande do Sul, bordering Uruguay. The economic
sustaining activity of the municipality is agriculture and cattle raising,
but currently endures a transitional period to trade and services. The
city possesses strong cultural tradition.  There one finds two major music
and dance festivals: the "Galponeira da Cancao" and the "Danca Bage".

Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank.  It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.

                        *    *    *

As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook on both of Banco Nacional de
Desenvolvimento Economico e Social SA's foreign and local
currency counterparty credit ratings:

   -- Foreign currency counterparty credit rating
      * to BB/Positive/-- from  BB/Stable/--

   -- Local currency counterparty credit rating
      * to BB+/Positive/-- from BB+/Stable/--


CENTRAIS ELECTRICAS: Seeks to Consolidate Units Into One Company
----------------------------------------------------------------
Aloisio Vasconcelos, chief executive officer of Centrais Electricas
Brasileiras SA, told Business News Americas that the company wants to
increase control of its subsidiaries to operate as a single firm.

BNamericas relates that the move would make Centrais Electricas more agile
and competitive in the coming years, helping it boost investments in power
generation and transmission.

According to BNamericas, Centrais Electricas wants to dilute the autonomy
and reduce the role of political influence in nominating top management in
its four main units:

          -- Chesf,
          -- Eletronorte,
          -- Eletrosul, and
          -- Furnas.

Mr. Vasconcelos told BNamericas, "I cannot have a cohesive group without
absolute control over finances, cash flow and investment decisions.  The
idea would be to professionalize management by setting minimum
requirements for nomination to top jobs."

Mr. Vasconcelos said that the move would require a change in Centrais
Electricas' bylaws or a commitment from the Brazilian government to stop
political nominations, BNamericas notes.

Mr. Vasconcelos explained to BNamericas that Centrais Electricas proposed
that the units be renamed Eletrobras Northeast, North, South and Southwest
respectively, according to where most of their operations are located.
This would help reduce operational costs, ease access to subsidiaries and
strengthen the group's brand.

BNamericas underscores that as part of the strategy, Centrais Electricas
has developed its New Eletrobras restructuring proposal aimed at loosening
political control of the firm and boost corporate governance.

A company spokesperson told BNamericas that New Eletrobras aims to
accelerate the decision-making processes and bring the company closer to
financial markets.

Mr. Vasconcelos told BNamericas, "Eletrobras (Centrais Electricas) is an
elephant because of its slowness.  Although it won't be a hare, it could
be as agile as a tiger."

The report says that accelerating decision-making in Centrais Electricas
may require a change in legislation.

Meanwhile, acquisitions as small as purchasing personal computers must be
made through public tenders, which can take several months, BNamericas
states.

According to the report, the proposal has been handed over to Silas
Rondeau, the Brazilian mining and energy minister, for review.

Mr. Vasconcelos could not tell BNamericas how long it would take the
Brazilian government to accept the proposal but Centrais Electricas'
2007-11 strategic investment proposal includes workgroups to prepare for
New Eletrobras.

"It's now in the hands of the government," Mr. Vasconcelos told BNamericas.

Mr. Vasconcelos said that the 2007-11 investment proposal would be
Centrais Electricas' first multi-year strategic plan that would combine
the projects of subsidiaries into one investment package, BNamericas
relates.

Centrais Electricas is also waiting for the government to send to congress
a bill allowing the firm to offer its services abroad, including the
construction of transmission lines and hydroelectric projects, BNamericas
reports.

Headquartered in Brasilia, Brazil, Centrais Electricas
Brasileiras SA aka Eletrobras -- http://www.eletrobras.gov.br/
-- operates in the electric power sector.  The objective of
Eletrobras is to perform activities involving studies, projects,
construction and operation of electric power plants,
transmission and distribution lines as well as underlying trade
operations.  Eletrobras has also an objective to assist the
Ministry of Mines and Energy in designing Brazil's electric
energy policy.  It engages areas involving granting loans and
financing, providing guarantees, locally or abroad, and
acquiring debentures of companies and holders of public electric
power services under their control; providing loans and
guarantees, locally or abroad, for technical and scientific
research institutions; and promoting and supporting researches
relating to the power sector, linked the generation,
transmission and distribution of electric power, as well as
studies involving the exploitation of hydrographical basins for
various purposes.

                        *    *    *

On Feb. 28, 2006, Standard & Poor's assigned these ratings to
Centrais Electricas Brasileiras SA:

     * Long-Term Foreign Issuer Credit, BB; and
     * Long-Term Local Issuer Credit, BB+.


CENTRAIS ELECTRICAS: Chief Executive Officer Ready to Leave Post
----------------------------------------------------------------
Aloisio Vasconcelos, Centrais Electricas Brasileiras SA's chief executive
officer, told Business News Americas that he is ready to leave the company
and return to the private sector if Brazilian President Luiz Inacio Lula
da Silva decides to replace him.

Mr. Vasconcelos told BNamericas, "As I come from the private sector, I can
go back to work in a private company."

Mr. Vasconcelos was appointed as the Centrais Electricas chief executive
officer in July 2005, BNamericas notes.  Mr. Vasconcelos was previously
Centrais Electricas' director of special projects and technological
development.  He has worked for:

     -- Cemig, the Minas Gerais state government power firm;
     -- the regional unit of German equipment maker Siemens; and
     -- was congressman to the democratic movement party.

Mr. Vasconcelos explained to BNamericas, "From Jan. 2, the first term of
the Lula government ends and the commitments made for this government also
end, so it is a natural time for change."

The report says that the speculation about changes in Centrais Electricas'
top management comes as Mr. Vasconcelos proposes changes to lessen
political influence in the nomination of top posts in the firm.

BNamericas underscores that President Lula da Silva is preparing to
announce at the end of January a cabinet reshuffle to accommodate more
political allies in top posts for his second term.  The reshuffle could
affect federal firms as well.

"I prefer not say anything about changes [in management].  I prefer to
wait for orders from above," Mr. Vasconcelos told BNamericas.

Published reports say that President Lula da Silva will replace Mr.
Vasconcelos with Arcilba da Rocha, the administrative director of Centrais
Electricas.

Mr. da Rocha was reportedly named by Senator Ney Suassuna of the
democratic movement party, which has negotiated a bigger presence in the
federal government in exchange for political support in congress, the
local press states.

Headquartered in Brasilia, Brazil, Centrais Electricas
Brasileiras SA aka Eletrobras -- http://www.eletrobras.gov.br/
-- operates in the electric power sector.  The objective of
Eletrobras is to perform activities involving studies, projects,
construction and operation of electric power plants,
transmission and distribution lines as well as underlying trade
operations.  Eletrobras has also an objective to assist the
Ministry of Mines and Energy in designing Brazil's electric
energy policy.  It engages areas involving granting loans and
financing, providing guarantees, locally or abroad, and
acquiring debentures of companies and holders of public electric
power services under their control; providing loans and
guarantees, locally or abroad, for technical and scientific
research institutions; and promoting and supporting researches
relating to the power sector, linked the generation,
transmission and distribution of electric power, as well as
studies involving the exploitation of hydrographical basins for
various purposes.

                        *    *    *

On Feb. 28, 2006, Standard & Poor's assigned these ratings to
Centrais Electricas Brasileiras SA:

     * Long-Term Foreign Issuer Credit, BB; and
     * Long-Term Local Issuer Credit, BB+.


CENTRAIS ELECTRICAS: Spending US$22B in Transmission, Generation
----------------------------------------------------------------
Centrais Electricas Brasileiras SA's chief executive Aloisio Vasconcelos
told Business News Americas that the firm wants to invest at least US$22
billion in power transmission and generation over the next 10 years.

BNamericas relates that the investment program is equivalent to up to 50%
of the Brazilian government's US$56-billion 2006-15 expansion plan.
Government investments are considered essential to meet increasing power
demand through 2015.

According to BNamericas, Centrais Electricas is preparing a 2007-11
investment program aimed at new generation and transmission concessions
and minority stakes in power generation projects other firms control.

Mr. Vasconcelos told BNamericas that the 2007-11 plan would come on top of
investments in the seven projects it won concessions for in the past two
years.  Mr. Vasconcelos did not specify how much would be invested in the
period.

The report says that Centrais Electricas will start in this year the
construction of new power generation projects through subsidiaries that
have obtained project stakes or won build-and-operate concessions.

Mr. Vasconcelos commented to BNamericas, "Over coming years, we want to
invest more than we plan for 2007."

According to BNamericas, Centrais Electricas will invest BRL5.6 billion
this year.

BNamericas underscores that the 2007-11 plan would set aside resources to
invest in some of Brazil's strategic projects like:

         -- 6,450-megawatt, BRL20-billion Madeira hydro complex;

         -- 11,000-megawatt, BRL5 to BRL6-billion Belo Monte
            hydro project; and

         -- 1,350-megawatt Angra III nuclear generator.

BNamericas notes that the Brazilian government wants to offer a concession
for the Madeira complex in May to begin operations in 2011.  However,
Madeira -- along with Belo Monte -- still need authorization from
environmental authorities.  While the Madeira environmental impact study
could be ratified early this year, Belo Monte's licensing will be more
complex since it could affect politically sensitive indigenous
reservations in the Amazon forest.

Mr. Vasconcelos told BNamericas, "Our 2007 budget does yet not include the
Madeira nor Angra III."

According to the report, the government has been holding talks about
whether to continue its nuclear program, which would begin with the
conclusion of its third nuclear reactor Angra III for US$2 billion.

Mr. Vasconcelos explained to BNamericas, "As soon as the government
decides to go ahead with its nuclear program, Eletrobras (Centrais
Electricas) is ready to invest."

BNamericas states that Centrais Electricas will start this year the
construction of the 855-megawatt Foz do Chapeco and the 210-megawatt Serra
do Facao hydro projects.  Both projects are in held by private entities,
though Centrais Electricas purchased a minority stake to overcome hurdles.

Mr. Vasconcelos told BNamericas that the strategy to collaborate with
private firms to help them overcome environmental and technical barriers
will continue.  Centrais Electricas will continue to negotiate the
acquisition of stakes of up to 49% in stalled projects.

Centrais Electricas can't own a majority stake in projects, as it is a
federal firm, according to BNamericas.  However, as a minority partner,
its know-how helps advance projects.

"We will do all we can to make up for lost time," Mr. Vasconcelos told
BNamericas.

About 17 out of 38 existing hydro projects that have secured concessions
in past years are behind schedule due to licensing or funding problems,
BNamericas reports, citing Aneel, the Brazilian power regulator.

Headquartered in Brasilia, Brazil, Centrais Electricas
Brasileiras SA aka Eletrobras -- http://www.eletrobras.gov.br/
-- operates in the electric power sector.  The objective of
Eletrobras is to perform activities involving studies, projects,
construction and operation of electric power plants,
transmission and distribution lines as well as underlying trade
operations.  Eletrobras has also an objective to assist the
Ministry of Mines and Energy in designing Brazil's electric
energy policy.  It engages areas involving granting loans and
financing, providing guarantees, locally or abroad, and
acquiring debentures of companies and holders of public electric
power services under their control; providing loans and
guarantees, locally or abroad, for technical and scientific
research institutions; and promoting and supporting researches
relating to the power sector, linked the generation,
transmission and distribution of electric power, as well as
studies involving the exploitation of hydrographical basins for
various purposes.

                        *    *    *

On Feb. 28, 2006, Standard & Poor's assigned these ratings to
Centrais Electricas Brasileiras SA:

     * Long-Term Foreign Issuer Credit, BB; and
     * Long-Term Local Issuer Credit, BB+.


COMPANHIA PARANAENSE: Inks Power Plant Pact with Petrobras
----------------------------------------------------------
Companhia Paranaense de Energia aka COPEL, signed on
Dec. 28, 2006, these agreements with Petroleo Brasileiro SA aka Petrobras:

   1. A Rental Agreement for the Araucaria Gas-powered
      Thermoelectric Plant, established between UEG Araucaria
      and Petrobras, terminating on Dec. 31, 2007 and extendable
      for up to 12 months thereafter should both parties so
      wish.

      The monthly rental charge, which will cover UEG
      Araucaria's costs and taxes, will contain a fixed and a
      variable component.

      The fixed charge will be BRL13.14 per MWh multiplied by
      the reference capacity (428.35 MW) and by the number of
      hours per month.

      The variable charge of BRL33.23 per MWh will be calculated
      in line with the actual amount of electricity generated.

   2. An operational and maintenance service agreement for the
      UEG Araucaria, established between COPEL Geracao and
      Petrobras, terminating on Dec. 31, 2008, or until the
      termination of the Rental Agreement, whichever occurs
      first.

      The monthly value of the services provided will be
      BRL5.86 per MWh multiplied by the reference capacity
      (428.35 MW) and by the number of hours per month.

                         About Copel

Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Paran and has a generating capacity of nearly 4,600 MW,
primarily from hydroelectric plants.  COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services.  The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitly postponed.  In response, COPEL is
re-evaluating its corporate structure.  The government of Parana
controls about 59% of COPEL.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 13, 2006, Moody's
America Latina upgraded the corporate family rating of Companhia
Paranaense de Energia aka Copel to Ba2 from Ba3 on its global scale and to
Aa2.br from A3.br on its Brazilian national scale.

                       About Petrobras

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

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

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

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

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


DURA AUTOMOTIVE: Hires Kurtzman Carson as Claims & Notice Agent
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware allowed DURA
Automotive Systems, Inc. and its debtor affiliates to employ Kurtzman
Carson Consultants, LLC, as their notice, claims and balloting agent.

The Debtors have approximately 84,000 potential creditors.  The office of
the Clerk of the Bankruptcy Court for the District of Delaware is not
equipped to efficiently and effectively serve notice on the large number
of creditors and parties-in-interest and administer claims during the
Debtors' Chapter 11 cases.  "The sheer size and magnitude of the Debtors'
creditor body makes it impracticable for the Clerk's Office to undertake
that task," Keith Marchiando, chief financial officer, says.

Kurtzman Carson is expected to:

   (a) prepare and serve required notices in the Debtors'
       Chapter 11 cases:

          * a notice of the commencement of the Reorganization
            Cases and the initial meeting of creditors under
            Section 341(a) of the Bankruptcy Code;

          * a notice of the claims bar date;

          * notices of objections to claims;

          * notices of any hearings on a disclosure statement
            and confirmation of a plan or plans of
            reorganization; and

          * other miscellaneous notices as the Debtors or the
            Court may deem necessary or appropriate for an
            orderly administration of the Debtors' Chapter 11
            cases;

   (b) within three business days after the service of a
       particular notice, prepare for filing with the Clerk's
       Office a certificate or affidavit of service that
       includes an alphabetical list of persons on whom the
       notice was served, along with their addresses, and the
       date and manner of service;

   (c) maintain copies of all proofs of claim and proofs of
       interest filed;

   (d) maintain official claims registers by docketing all
       proofs of claim and proofs of interest in a claims
       database that includes this information for each claim or
       interest asserted:

          * the name and address of the claimant or interest
            holder and any agent thereof, if the proof of claim
            or proof of interest was filed by an agent;

          * the date the proof of claim or proof of interest was
            received by Kurtzman and the Court;

          * the claim number assigned to the proof of claim or
            proof of interest; and

          * the asserted amount and classification of the claim;

   (e) implement necessary security measures to ensure the
       completeness and integrity of the claims registers;

   (f) transmit to the Clerk's Office a copy of the claims
       registers on a weekly basis unless requested more or less
       frequently by the Clerk's Office;

   (g) maintain an up-to-date mailing list for all entities that
       have filed proofs of claim or proofs of interest and make
       that list available upon request to the Clerk's Office or
       any party-in-interest;

   (h) provide access to the public for examination of copies of
       the proofs of claim or proofs of interest filed without
       charge during regular business hours;

   (i) record all transfers of claims pursuant to Rule 3001(e)
       of the Federal Rules of Bankruptcy Procedure and, if
       directed by the Court, provide notice of those transfers
       as required by Bankruptcy Rule 3001(e);

   (j) comply with applicable federal, state, municipal, and
       local statutes, ordinances, rules, regulations, orders,
       and other requirements;

   (k) provide temporary employees to process claims as
       necessary;

   (l) promptly comply with further conditions and requirements
       as the Clerk's Office or the Court may at any time
       prescribe;

   (m) provide other claims processing, noticing, balloting, and
       related administrative services as may be requested from
       time to time by the Debtors; and

   (n) act as balloting agent, which may include some or all of
       these services:

          * printing of ballots, including the printing of
            creditor and shareholder specific ballots;

          * preparing voting reports by plan class, creditor, or
            shareholder and amount for review and approval by
            the client and its counsel;

          * coordinating the mailing of ballots, disclosure
            statement, and plan of reorganization to all voting
            and non-voting parties, and provide affidavit of
            service;

          * establishing a toll-free "800" number to receive
            questions regarding voting on the plan; and

          * receiving ballots at a post office box, inspecting
            ballots for conformity to voting procedures, date
            stamping and numbering ballots consecutively, and
            tabulating and certifying the results.

In addition, at the Debtors' request, Kurtzman will assist the
Debtors with, among other things:

   (1) preparing and mailing customized proofs of claim to the
       creditors listed on the Debtors' Schedules of
       Liabilities,

   (2) preparing, mailing, and tabulating ballots of certain
       creditors for the purpose of voting to accept or reject
       the plan or plans of reorganization; and

   (3) any other additional services requested by the Debtors.

Kurtzman will bill:

   Professional                                    Hourly Rate
   ------------                                    -----------
   Clerical -- data input                         US$40 - US$65

   Project Specialist -- document management
   and case administration                        US$75 - US$115

   Consultant -- general consulting;
   document and data review                      US$125 - US$210

   Senior Consultant -- general consulting;
   document and data review                      US$225 - US$250

   Technology and Programming Consultant
   -- KCC Case View maintenance and support      US$115 - US$195

The firm will send copies of its monthly invoices to the United
States Trustee.

With its appointment as notice, claims and balloting agent,
Kurtzman:

    -- is not and will not be employed by any federal or state
       agency and will not seek any compensation from the
       Government;

    -- by accepting employment in the Debtors' cases, waives any
       right to receive compensation from the Government;

    -- is not an agent of the Government and is not acting on
       behalf of the Government;

    -- will not misrepresent any fact to the public; and

    -- will not employ any past or present employees of the
       Debtors for work involving the Chapter 11 cases.

Eric Kurtzman, chief executive officer of Kurtzman Carson
Consultants LLC, assures the Court that to the best of his knowledge, the
officers and employees of his firm:

   (a) do not have any adverse connection with the Debtors, the
       Debtors' creditors or any other party-in-interest or
       their attorneys and accountants, the United States
       Trustee, or any person employed by the office of the U.S.
       Trustee; and

   (b) do not hold or represent an interest adverse to the
       Debtors' estates.

Mr. Kurtzman attests that his firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code, as modified by
Section 1107(b).

Prior to the Debtors' bankruptcy filing, Kurtzman performed certain
professional services for the Debtors.  The Debtors provided the firm with
a US$100,000 advance payment retainer.  Mr. Marchiando states the Debtors
do not owe Kurtzman any amount for services performed or expenses incurred
prior to the Petition Date.

Kurtzman's original Retention Agreement provided for limitations of
liability and indemnification.  The Court, however, modified the Retention
Agreement to remove that provision.

A full-text copy of Kurtzman's Fee Structure is available for free at
http://ResearchArchives.com/t/s?17d6

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 Oct. 30, 2006 (Bankr.
District of Delaware Case No. 06-11202).  Richard M. Cieri, Esq., Marc
Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett,
Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy
proceedings.  Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and
Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the
Debtors' co-counsel.  Baker & McKenzie acts as the Debtors' special
counsel.  Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.  Glass &
Associates Inc., gives financial advice to the Debtor.  Kurtzman Carson
Consultants LLC handles the notice, claims and balloting for the Debtors
and Brunswick Group LLC acts as their Corporate Communications Consultants
for the Debtors.  As of July 2, 2006, the Debtor had US$1,993,178,000 in
total assets and US$1,730,758,000 in total liabilities.  (Dura Automotive
Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Trustee Appoints HSBC Bank to Creditors' Panel
---------------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3, has added
HSBC Bank USA, National Association, to the Official
Committee of Unsecured Creditors in DURA Automotive Systems, Inc. and its
debtor affiliates' Chapter 11 cases.

The Creditors Committee now comprises:

     (1) Wilfrid Aubrey LLC
         Attn: Nicholas W. Walsh
         100 William Street
         Suite 1850
         New York, NY 10038
         Phone: 212-675-4906
         Fax: 212-675-3626

     (2) BNY Trust Company Midwest
         Attn: Robert H. Major
         6525 W. Campus Oval
         New Albany, OH 43054
         Phone: 614-775-5278
         Fax:614-775-5636

     (3) US Bank National Association
         Attn: James E. Murphy
         100 Wall Street
         Suite 1600
         New York, NY 10005
         Phone: 212-361-6174
         Fax: 212-514-6841

     (4) International Union, UAW
         Attn: Niraj Ganatra, Esq.
         8000 East Jefferson Avenue
         Detroit, MI 48214
         Phone: 313-926-5216
         Fax: 313-926-5240

     (5) Pension Benefit Guaranty Corporation
         Attn: William McCarron, Jr.
         1200 K Street N.W.
         Washington, D.C. 20005
         Phone: 202-326-4000, ex. 3471
         Fax: 202-326-4112

     (6) Johnson Electric N.A., Inc.
         Attn: Douglas G. Eberle
         47660 Halyard Drive
         Plymouth, MI 48170
         Phone: 734-392-5308
         Fax: 734-392-5388

     (7) Thompson I.G., LLC
         Attn: Christine Maria DeSonia
         3196 Thompson Rd.
         Fenton, MI 48430
         Phone: 810-629-9558
         Fax: 810-629-8342

     (8) HSBC Bank USA, National Association
         Attn: Robert A. Conrad
         452 Fifth Avenue
         New York, NY 10018
         Phone: 212-525-1314
         Fax: 212-525-1300

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


DURA AUTOMOTIVE: Wants to Pay US$1.1 Mil. Prepetition Tax Claims
----------------------------------------------------------------
DURA Automotive Systems, Inc. and its debtor affiliates seek authority
from the U.S. Bankruptcy Court for the District of Delaware to pay, in
their sole discretion, the undisputed prepetition claims of certain
governmental units in respect to real and personal property taxes in an
aggregate amount not to exceed US$1,100,000.

The Debtors further request that all their banks and other financial
institutions be authorized and directed, upon their request, to receive,
process, honor and pay any and all checks drawn on their accounts to pay
the Prepetition Property Tax Claims.

Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, relates that the Debtors own real and personal
property in at least 12 U.S. states and Canadian provinces.  Under
applicable law, state, provincial, and local governments in the
jurisdictions where the properties are located are granted the authority
to levy taxes against the real and personal property.

The Debtors typically pay taxes on their Owned Properties in the ordinary
course as the taxes are invoiced, which typically covers taxes for the
prior year, or quarter, depending on how the applicable tax is assessed.
Thus, as of the bankruptcy filing date, the Debtors owed taxes that
accrued with respect to the Owned Properties for some portions of the 2006
calendar year.

Mr. DeFranceschi tells the Honorable Kevin J. Carey of the U.S. Bankruptcy
Court for the District of Delaware, that while the Bankruptcy Code does
not require the Debtors to pay the Property Taxes at this time, nonpayment
or late payment of certain prepetition Property Taxes will, among others:

   (i) likely subject the Debtors to above-market interest rates
       and penalties in certain circumstances;

  (ii) cause Taxing Authorities' county or municipal to suffer a
       significant gross revenue cutback, in turn leading to
       reduced funding of public schools, fire and police
       departments, and other municipal services from which the
       Debtors and their employees enjoy the benefits;

(iii) unnecessarily divert the Debtors' attention away from the
       operations of their businesses and the reorganization
       process in the event the Taxing Authorities would cause
       the Debtors to be audited; and

  (iv) result in the creation of statutory liens on the Owned
       Properties, which creation and perfection does not
       violate the automatic stay under Section 362 of the
       Bankruptcy Code.

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

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


GOL LINHAS: PN Shares Included in Ibovespa Index
------------------------------------------------
GOL Linhas Aereas Inteligentes SA's PN shares have been added to the
Ibovespa index.

The GOL PN shares are included in the Ibovespa index for the four-month
period between January and April 2007 with a 1.05% weight.  The Bovespa
Index is the main indicator of the Brazilian stock market's average
performance.  The Ibovespa's relevance comes from two facts:

   -- it reflects the variation of BOVESPA's most traded stocks
      and

   -- it has maintained the integrity of its historical series
      without any methodological change since its inception in
      1968.

In order to be part of the Ibovespa theoretical portfolio, shares have to
meet these criteria, with respect to the last twelve months:

   (i) be included in the group of shares whose negotiability
       indexes added represent 80% of the total value of all
       individual negotiability indexes;

  (ii) have a trading value participation higher than 0.1% of
       the total; and

(iii) have a trading session presence of more than 80%.

Headquartered in Sao Paulo, Brazil, Gol Linhas Areas
Inteligentes S.A. -- http://www.voegol.com.br-- through its
subsidiary, Gol Transportes Aereos S.A., provides airline
services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay.
The company's services include passenger, cargo, and charter
services.  As of March 20, 2006, Gol Linhas provided 440 daily
flights to 49 destinations and operated a fleet of 45 Boeing 737
aircraft.  The company was founded in 2001.

                        *    *    *

On March 21, 2006, Moody's Rating Services assigned a Ba2 rating
on Gol's Long-Term Corporate Family Rating.

On June 14, 2006, Fitch Ratings assigned a rating of 'BB' to GOL
Linhas' outstanding US$200 million 8.75% perpetual
bond.  In addition, Fitch assigned:

   -- National Scale Rating of 'AA-(bra)' with Stable Outlook,
      and

   -- Local Currency Issuer Default Rating of 'BB+'- with
      Stable Outlook.


GOL LINHAS: Fitch Assigns BB+ Issuer Default Ratings
----------------------------------------------------
Fitch Ratings Services has assigned these ratings on
GOL Linhas Aereas Inteligente SA:

   -- Foreign Currency Issuer Default Rating 'BB+';
   -- Local Currency IDR 'BB+'; and
   -- National Rating 'AA-(bra)'.

The Rating Outlook is Stable.

Fitch has been following the recent developments in the Brazilian civil
aviation crisis and their possible impact on the credit quality of the
main Brazilian airline companies, GOL Linhas Aereas Inteligente SA and TAM
Linhas Aereas SA.

Fitch believes that the current crisis and its adverse effects will
encourage important changes in the sector as they have highlighted the
need for more government infrastructure investments and continued
efficiency improvements on behalf of the operating companies.  Due to the
crisis, the agency expects the profitability of Brazilian airline
companies to slightly deteriorate during the fourth quarter of 2006; for
the full year, nonetheless, both operators should post their best results
ever.

However, Fitch understands that TAM and GOL, the two main Brazilian
airlines, have benefited from their position as dominant companies in the
national airline sector and the only ones with a truly integrated national
network.  Moreover, they enjoy competitive cost structures even compared
to international standards, and present a solid financial profile and
significant cash resources, mitigating short-term risks and sector
turbulence.  Fitch will continue to monitor the performance of the sector
and the evolution of the credit profile of the two companies mentioned
above, expecting that they will continue to report robust cash generation
and credit ratios compatible with the rating category assigned.

Going forward, sustained growth in the sector, which over the past three
years averaged 18% per year, will only be possible if substantial
management measures and investments are implemented over the long run and
are not just limited to temporary measures to smooth the current crisis.
Should the current scenario continue, airline companies might see their
credit profile affected due to frustrated growth expectations and the
incurrence of additional costs, with a consequent deterioration in future
earnings.

The Brazilian airline sector has lived through an abnormal situation
during these past three months, and at several occasions being described
as chaotic by passengers and airline operators.  Among the factors that
contributed to such a scenario is a problem already well known in Brazil,
the "infrastructure bottleneck."  The lack of investments was once again
evident in Brazilian airports, where the scarcity of efficient
infrastructure to support accelerated growth was observed.

In turn, the introduction of new operating methods by Brazilian airline
companies to improve utilization of their aircraft and the reduction in
market share of an important company in the sector contributed to further
aggravating the crisis at the end of 2006.  The largest airline companies
utilize their highly interconnected route network to obtain operational
efficiency, maximizing aircraft flightime.  Once this network is
restricted and interconnections limited, the system becomes inefficient,
with flight delays and cancellations generating negative repercussions of
economic and social nature.

Fitch's priority is to seek to identify the possible effects on the credit
profile of the companies that are assessed by the agency, should this
scenario continue, rather than issue an opinion on the causes of the
collapse in the Brazilian air transport system of recent weeks.
Nevertheless, the recent events show the consequence of reduced government
investments in infrastructure and that the sector operates with limited
investments in equipment and manpower.

The rapid growth in the Brazilian aviation market observed over the past
three years has caused such fragilities to become more evident.
Regardless of whether or not the present problems are solely due to the
absence of adequate technical operating conditions, attributable to a lack
of investments, or a combination of that and the airline companies'
inefficiency in properly serving the strong demand observed, the fact is
that the national airline sector is experiencing a time of crisis that has
to be resolved in a responsible manner.

Before the crisis scenario, companies in the sector anticipated a growth
of between 12% and 15% for 2007, continuing the strong expansion observed
in recent years.  The companies have prepared for this growth and invested
heavily to expand their aircraft fleet.  The factors produced by the
sectorial crisis conflict with the national airlines basic strategies:
reducing costs and maximizing daily aircraft usage.

The flight delays and cancellations observed in recent months are
discouraging passengers, many of whom have already made alternative travel
plans, with a possible impact on projections for aircraft load factors.
In addition, they involve added costs, relative to passenger-related
expenses that were not forecasted, the costs incurred with aircraft on the
ground waiting for permission to take off, additional personnel expenses
and eventual indemnifications that may be sought through judicial
measures.  The prolonging of this turbulent environment is expected to
have a negative impact on the companies' image and operating margins.

The Brazilian civil aviation market has presented strong growth since
2004, increasing from 28 million passengers that year to 36 million in the
first 11 months of 2006.  This number would tend to be even more relevant
when the month of December is included, since the year-end holidays have a
significant weight in sector seasonality.  In 2006, demand grew 12.9%
versus an increased seating capacity of 10.7%.

In terms of load factor, GOL and TAM continued to present an improvement
in this indicator for the accumulated 11-month period in 2006.  However,
for the crisis months of October and November, GOL presented an average
load factor decline of around 4 percentage points; TAM reckons that the
crisis would reduced load factors by 2%.  The effects of crisis are still
not available for December.  Given the significant volume of cancellations
and delays, the impact on the companies is expected to be relevant, mainly
for TAM, the company with the largest number of canceled and delayed
flights, but not immediately impacting its credit profile.

For 2007, Fitch expects that competition will intensify in the sector with
the return of Varig, more aggressive positioning by Oceanair and BRA,
companies that still have limited activities but relevant expansion plans
underway, and the delivery of aircraft ordered by TAM and GOL.  An
increase in competition resulting in companies being tempted to engage in
a harmful fare war, coupled with lower aircraft load factors, would
inevitably impact the strong credit profile of the Brazilian airline
companies.


INDUSTRIA E COMERCIO: Fitch Assigns B+ Issuer Default Ratings
-------------------------------------------------------------
Fitch Ratings has assigned local currency and foreign currency Issuer
Default Ratings of 'B+' to Industria e Comercio de Carnes Minerva Ltda.
and a national scale rating of 'BBB'.  Fitch has also assigned an issue
rating of 'B+' as well as a recovery rating of 'RR4' to up to US$150
million of notes due 2017 to be issued by Minerva. Proceeds will be used
to refinance existing short-term debt and for general corporate purposes.
The Outlook for all ratings is Stable.

The ratings are supported by Minerva's business position as the third
largest Brazilian exporter of fresh beef, its low cost structure, high
grade of product customization and diversified and growing export revenue
base.  The ratings also reflect Minerva's highly leveraged capital
structure and large future capital expenditure needs, which will pressure
credit protection measures despite expected growth.

The ratings consider that the proposed transaction will extend the debt
maturity profile and mitigate refinancing risks, as 75% of the proceeds
will repay short-term debt maturities.  The ratings also reflect Minerva's
exposure to the volatility of raw material costs and of domestic and
international beef prices, supply and demand imbalances in the protein
market due to factors such as disease and adverse weather conditions,
unfavorable global economic conditions, changes in beef consumption
habits, government-imposed sanitary and trade restrictions, and
competitive pressures from other Brazilian or international beef producers
and exporters.

The company's activities are significantly export-oriented, with 80% of
net revenues earned from foreign markets during 2005.  The export revenue
base is well diversified, with sales to approximately 80 countries.
Minerva's favorable business position is underscored by Brazil's vast
competitive advantages in cattle grazing and beef production.

Brazil is the world's largest beef producer and in recent years has
emerged as the world's largest beef exporter, increasing its share of
world beef exports to 30% in 2005 from 5% in 1997.  Cattle raising costs
in Brazil are the lowest worldwide due to favorable geographic and weather
conditions, availability and low cost of grazing land, and low cattle
feeding costs.  Other inputs such as energy and labor are also abundant
and attractively priced.  These advantages highlight the rapid growth over
the past several years of Minerva's exports, which more than tripled to
US$335 million in 2005 from US$93 million in 2002.

Product diversification is low, as sales are concentrated in one product,
fresh meat, with low value added in the production chain.  Exports of
processed beef products account for less than 3% of revenues.  The
company, however, offers more than 4,000 different fresh meat cuts, a key
feature of its strategy to provide customized service to clients'
preferences.  Minerva plans to grow exports of processed beef products
with the construction of a new cooked frozen beef plant over the next two
years.

Industry fundamentals are strong.  Beef consumption is expected to
continue to grow robustly driven by population growth and higher income
per capita in East and Southeast Asia, Latin America, and the Middle East.
Brazil should continue to lead the world's expansion of beef production
and beef exports.  The country possesses the world's largest commercial
herd and one of the lowest slaughter rates, which means that it has vast
potential to expand beef production by using more intensive methods.

Over the past several years, the company's revenues have grown robustly
driven primarily by higher exports, despite a strong appreciation in the
value of the Brazilian currency during the same time period.  During the
first nine months of 2006, revenues grew by 14% and the EBITDA margin
improved to 10.6% from 8% during the prior comparable period as a result
of higher export volumes, higher international prices, cost controls and
efficiency gains from new modern plant facilities, including the
incorporation of the newly built Palmeiras plant during 2005.

EBITDA is expected to double in 2006 to approximately US$50 million from
US$23 million in 2005.  Notwithstanding, the company has reported negative
free cash flows over the past several years due to growing working capital
requirements, tax payments on exports and capital expenditures.  These
cash flow needs have been funded with short-term debt, pressuring leverage
indicators.  At Dec. 31, 2006, the company is expected to have
approximately US$220 million of debt, a ratio of total debt to EBITDA of
approximately 4.4 times and a ratio of net debt to EBITDA of 3.6x.

The company's capital structure is highly leveraged and concentrated in
short-term funding.  The liquidity position, US$36 million in cash and
marketable securities at Sept. 30, 2006, is weak in relation to short-term
debt commitments of US$143 million and total debt of $203 million. The
company will use 75% of proceeds form the proposed transaction to
refinance short term debt, which will lengthen the maturity profile and
lessen refinancing risks.

The company plans to continue to invest in productive capacity to attend
growing world demand.  Capital expenditures planned for the two-year
period 2007-2008 total approximately US$60 million, primarily for the
construction of a new cooked frozen beef plant and a new slaughter plant.
The company plans to fund these investments with a mix of long-term
government development agency debt and internal cash.  Although Fitch
expects that Minerva will continue to benefit from favorable fundamentals
in the global beef industry, associated leverage with planned capital
expenditures and high working capital requirements may pressure credit
protection measures from current levels and could potentially affect the
ratings.  Under volatile industry conditions, ensuring sufficient cash
flows to cover operational and investments needs and generating free cash
for the service and repayment of the bond will be a critical challenge for
the company.

Minerva is one of Brazil's largest producers of beef and beef by-products
and the country's third largest exporter of fresh and chilled beef.  The
company slaughters and debones cattle to produce chilled beef, aged and
frozen beef, cooked cubed beef, frozen beef variety meats, wet blue
leather and other by-products, largely for the export markets, which
account for approximately 80% of net revenues.  In 2005 Minerva had sales
of US$394 million and exports of US$335 million to approximately 80
countries.  The company began operations in 1993 as a slaughterhouse and
is privately owned by the Queiroz family.


INDUSTRIA E COMERCIO: S&P Assigns B Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term corporate
credit rating to Brazil-based beef processing company Industria e Comercio
de Carnes Minerva Ltda.  At the same time, the rating agency assigned 'B'
credit rating to the proposed 10-year US$150 million notes offered by
Minerva Overseas Ltd., a wholly owned subsidiary of Minerva based in
Cayman Islands.  The notes will be unconditionally and irrevocably
guaranteed by Minerva.  The outlook on the corporate credit rating is
stable.

Proceeds from the proposed 10-year US$150 million unsecured bonds should
be mostly used to refinance short-term maturities, and to fund part of the
company's capital expenditures projected for the next two years.
Minerva's total debt outstanding at September 2006 amounted to US$215
million.

Minerva is a privately held company owned by the Vilela de Queiroz family,
which has been involved with the livestock business for almost 50 years.
Minerva's first slaughterhouse dates to 1992.  The company operates four
slaughtering facilities located in the states of Sao Paulo, Mato Grosso do
Sul, and Goias, and two distribution centers in the state of Sao Paulo.

Minerva is the fourth-largest fresh and frozen beef exporter in Brazil,
maintaining a focus on tailor-made beef products.  In 2005, Minerva's beef
production reached about 200,000 tons, with an additional 23,000 tons of
wet-blue leather produced.  "We expect total meat revenues and volumes to
reach about US$520 million and 230,000 tons, respectively, in 2006,
representing an increase of about 37% and 15%, respectively, compared to
2005," said Standard & Poor's credit analyst Vivian
Zietemann.

The company's business strategy essentially comprises the sale of fresh
meat on a made-to-order basis, which provides the company with some
product differentiation and customer loyalty.  European and Arabian
countries comprise most of the company's international customer base, with
60% as the most relevant destination of exports in the first six months of
2006.

Minerva was forced to redirect a relevant part of its production to
alternative markets after some of the major meat-importing countries
imposed embargos to Brazilian fresh meat due to the foot-and-mouth disease
outbreak at the end of 2005.  Standard and Poor's expects Minerva to
maintain a more diversified client base, which would partly reduce its
exposure to potential sanitary issues in the future.

Minerva presents volatile operating margins due to the cyclical and
volatile nature of the global meat-processing industry, and the foreign
exchange risks associated with its export sales.  In addition, Minerva's
processing plants are concentrated in few Brazilian states, which
increases its exposure to potential sanitary issues.  Indeed Minerva's
performance was significantly affected by the Foot-and-mouth Disease event
at the end of 2005 in Brazil, as a result of the geographic concentration
of Minerva's processing plants, its high concentration on fresh meat
products, and its high dependence on exports to Russia and Chile at the
time of the outbreak.

In addition to its own slaughtering capacity, Minerva also maintains a
strategy of purchasing meat parts from other slaughterhouses, which
increases its operational flexibility, but also results in higher
dependence on supply from third parties.

The stable outlook on the rating reflects our expectation that the company
will be able to benefit from its low-cost position and the favorable
environment for local meat producers, which should contribute to stronger
cash flow generation and EBITDA margins consistently above 10% in the next
few years.  We expect the company's improving operational performance to
gradually result in stronger cash flow generation to support its projected
growth and debt maturities from 2008 on.

The rating and outlook could be revised downward if the company reports
weaker cash flow protection measures, given its already very aggressive
financial profile.  The ratings on Minerva could also be negatively
affected by a major sanitary issue in Brazil that affects the company or
the regions where it operates.  Also, the ratings will remain exposed to
the volatilities associated with global demand and prices for meat
products.

A review of the ratings or outlook would depend on the company's ability
to improve its financial risk profile, reporting stronger margins and more
robust cash flow generation.  Among other ratios, an upward review of the
ratings would depend on the company's capacity of reporting total
debt-to-EBITDA ratios below 4.0x and minimum funds from
operations-to-total debt ratio of at least 15% on a consistent manner.


MCDERMOTT INT'L: Completes US$355 Million Settlement Payments
-------------------------------------------------------------
McDermott International, Inc., and its subsidiaries completed ahead of
schedule its remaining financial obligations it was required to make under
The Babcock & Wilcox Company's plan of reorganization and settlement
agreement to fund the B&W asbestos trust.

On Dec. 21, 2006, McDermott paid the US$355 million contingent payment
right from cash on hand.  On Dec. 1, 2006, the company retired the US$250
million contingent promissory note utilizing proceeds from B&W's credit
facility.  The contingent payment right and contingent note vested on Dec.
1, 2006, as a result of the Fairness in Asbestos Injury Resolution Act of
2005, or other similar legislation, failing to become law by Nov. 30,
2006.

"By completing all payments owed to the asbestos trust ahead of schedule
and during this calendar year, the company accelerates the tax benefit
associated with these payments," indicated Frank Kalman, Executive Vice
President and Chief Financial Officer.  "We currently expect to receive a
cash tax refund of approximately US$250 million, most likely in late 2007
or early 2008, subject to the resolution of open IRS tax audits.  In
addition, with the completion of these payments, the company has satisfied
all of its financial obligations to the B&W asbestos trust."

To retire the contingent promissory note, B&W used the term loan feature
under its credit facility.  The new term debt matures on Feb. 22, 2012,
and bears interest at the LIBOR plus 3%.  McDermott may prepay this loan
at any time without penalty.

"We intend to retire this loan during 2007 if B&W is able to
simultaneously increase its capacity under its revolving credit facility,"
continued Mr. Kalman.

As a result of the contingent note retirement, McDermott expects it will
incur a charge of approximately US$5 million during the fourth quarter of
2006.

                Consolidation of U.S. Operations

Additionally, McDermott disclosed its intention to combine the company's
two groups of U.S. legal entities, McDermott Incorporated, the indirect
parent company of B&W and BWX Technologies, Inc., and J. Ray McDermott
Holdings, LLC., currently, the holding company of J. Ray McDermott, S.A.'s
U.S. operations, into a single U.S. consolidated group.  This
reorganization will return the Company to a more tax-efficient U.S. legal
structure now that the B&W asbestos issues have been resolved.  After
completion of the proposed consolidation, the company expects at least
US$275 million of net operating losses to be available to offset the
combined future taxable income generated by the single consolidated group.
McDermott expects that this combination will be completed by Dec. 31,
2006, and that it will likely result in the reversal of a substantial
portion of the company's federal deferred tax asset valuation allowance,
which will increase net income by the amount reversed.

                    About McDermott Int'l

Headquartered in Houston Texas, McDermott International, Inc. (NYSE:MDR)
-- http://www.mcdermott.com/-- through its subsidiaries, operates as an
energy services company worldwide.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 6, 2006,
Moody's Investors Service's confirmed its B1 Corporate Family Rating for
McDermott International Inc.


METSO OYJ: Finalizes Metso Powdermet AB's Sale to Sandvik AB
------------------------------------------------------------
Metso Oyj finalized on Dec. 29, 2006, the divestment of the shares of
Metso Powdermet AB in Sweden to Sandvik AB following the regulatory
approvals.

                        About Metso

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology
corporation with 2005 net sales of approximately EUR4.2 billion.
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.

The company's principal production plants are located in Brazil, China,
Finland, France, Germany, India, Italy, South Africa, Sweden, the United
Kingdom and the United States.

                        *     *     *

As reported in the TCR-Europe on April 11, Standard & Poor's Ratings
Services revised its outlook on Finland-based machinery and engineering
group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating.  The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.


NRG ENERGY: Closes Sale of Red Bluff & Chowchilla II Power Plant
----------------------------------------------------------------
NRG Energy, Inc., completed the sale of the Red Bluff and Chowchilla II
power plants to an entity controlled by Wayzata Investment Partners LLC
for an undisclosed sum.

Both of these northern California-based facilities are natural gas-fueled,
with a generating capacity of 45 MW and 49 MW, respectively. NRG continues
to maintain a presence in southern California, focusing its resources in
this region on redeveloping its coastal plants, including its El Segundo,
Encina and Long Beach plants.

Headquartered in Princeton, New Jersey, NRG Energy, Inc. owns
and operates power generating facilities, primarily in Texas and
the northeast, south central and western regions of the United
States.  NRG also owns generating facilities in Australia,
Brazil, and Germany.

                        *    *    *

As reported in the Troubled Compay Reporter on Nov. 14, 2006, Fitch
Ratings assigned a rating of 'B+/RR3' on NRG Energy's issuance of US$1.1
billion senior notes due 2011.  This issue will rank equally with NRG's
other senior unsecured obligations.  Fitchs said the rating outlook is
stable.


PETROLEO BRASILEIRO: Inks Power Plant Pact with Copel
-----------------------------------------------------
Companhia Paranaense de Energia aka COPEL, signed on
Dec. 28, 2006, these agreements with Petroleo Brasileiro SA aka Petrobras:

   1. A Rental Agreement for the Araucaria Gas-powered
      Thermoelectric Plant, established between UEG Araucaria
      and Petrobras, terminating on Dec. 31, 2007 and extendable
      for up to 12 months thereafter should both parties so
      wish.

      The monthly rental charge, which will cover UEG
      Araucaria's costs and taxes, will contain a fixed and a
      variable component.

      The fixed charge will be BRL13.14 per MWh multiplied by
      the reference capacity (428.35 MW) and by the number of
      hours per month.

      The variable charge of BRL33.23 per MWh will be calculated
      in line with the actual amount of electricity generated.

   2. An operational and maintenance service agreement for the
      UEG Araucaria, established between COPEL Geracao and
      Petrobras, terminating on Dec. 31, 2008, or until the
      termination of the Rental Agreement, whichever occurs
      first.

      The monthly value of the services provided will be
      BRL5.86 per MWh multiplied by the reference capacity
      (428.35 MW) and by the number of hours per month.

                        About Copel

Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Paran and has a generating capacity of nearly 4,600 MW,
primarily from hydroelectric plants.  COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services.  The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitly postponed.  In response, COPEL is
re-evaluating its corporate structure.  The government of Parana
controls about 59% of COPEL.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 13, 2006, Moody's
America Latina upgraded the corporate family rating of Companhia
Paranaense de Energia aka Copel to Ba2 from Ba3 on its global scale and to
Aa2.br from A3.br on its Brazilian national scale.

                       About Petrobras

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

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

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

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

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


PETROLEO BRASILEIRO: Reports Oil & Gas Viability in 3 Basins
------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras has sent commercial viability
statements relative to 19 new areas (16 offshore and 3 onshore) in the
Espirito Santo, Campos, and Santos Basins to the National Petroleum,
Natural Gas, and Biofuel Agency.  A few of them have become new oil and/or
natural gas fields, while others have been incorporated into existing
neighboring fields.

Although the 19 areas are still subject to more detailed technical
assessments for the area development process, it is estimated that
Petrobras' share of the recoverable volumes will top-out at some 2.1
billion barrels of oil equivalent of oil and gas in the three basins.

Three areas Petrobras operates in the old BS-500 block, in the Santos
Basin, were declared commercially viable, resulting in the Tambuata,
Pirapitanga and Carapia oil and natural gas fields, while one area in the
old BS-400 block was annexed to Mexilhao Field.  It is estimated there are
recoverable volumes of some 560 million barrels of oil equivalent in these
areas.

Meanwhile, four new offshore and three new onshore areas have been defined
in the Espirito Santo Basin, all of which operated by Petrobras.  The new
Carapo and Camarupim gas fields, and two other natural gas and light oil
areas that will be annexed to the Golfinho and Canapu fields, have been
declared commercially viable.  It is estimated there are recoverable
volumes of some 168 million barrels of oil equivalent in these areas.

Three new fields Saira, Seriema, and Tabuiaia, have been defined onshore.
Although they have slightly more modest volumes compared to the basin's
offshore portion, these finds are nonetheless greatly important to
maintain the Espirito Santo Basin's onshore production.

Finally, eight new areas have been declared commercially viable in the
Campos Basin:

   -- the Maromba field, in the old BC-20 block, operated by
      Petrobras in association with Chevron;

   -- the Caratai and Carapicu fields, in the old BC-30 block;
      and

   -- in the old BC-60 block, the Catua, Cacharel, Manganga, and
      Pirambu fields,

in addition to one area to be annexed to the Baleia Azul Field.

The recoverable volumes are believed to top-out at about 1.37 million boe
there.

The new discoveries show the precision of the company's exploratory
program.  Petrobras has a diversified concession, technology and
investment portfolio, over and beyond a qualified technical staff, which
allows it to increase both oil and natural gas reserves and production on
an ongoing basis.

Additionally, in the old BS-4 block, in the Santos Basin, facing the Rio
de Janeiro coast, Shell, as the operator, declared two new fields
commercially viable.  Petrobras holds 40% of the rights for these fields.


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

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

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

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

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


TAM LINHAS: Fitch Assigns BB Issuer Default Ratings
---------------------------------------------------
Fitch Ratings Services has asiigned these ratings to TAM Linhas Aereas SA:

   -- Foreign Currency IDR 'BB';
   -- Local Currency IDR 'BB'; and
   -- National Rating 'A+.

Fitch Ratings has been following the recent developments in the Brazilian
civil aviation crisis and their possible impact on the credit quality of
the main Brazilian airline companies, GOL Linhas Aereas Inteligente SA and
TAM Linhas Aereas SA.  A complete ratings list follows at the end of this
comment.

Fitch believes that the current crisis and its adverse effects will
encourage important changes in the sector as they have highlighted the
need for more government infrastructure investments and continued
efficiency improvements on behalf of the operating companies.  Due to the
crisis, the agency expects the profitability of Brazilian airline
companies to slightly deteriorate during the fourth quarter of 2006; for
the full year, nonetheless, both operators should post their best results
ever.

However, Fitch understands that TAM and GOL, the two main Brazilian
airlines, have benefited from their position as dominant companies in the
national airline sector and the only ones with a truly integrated national
network.  Moreover, they enjoy competitive cost structures even compared
to international standards, and present a solid financial profile and
significant cash resources, mitigating short-term risks and sector
turbulence.  Fitch will continue to monitor the performance of the sector
and the evolution of the credit profile of the two companies mentioned
above, expecting that they will continue to report robust cash generation
and credit ratios compatible with the rating category assigned.

Going forward, sustained growth in the sector, which over the past three
years averaged 18% per year, will only be possible if substantial
management measures and investments are implemented over the long run and
are not just limited to temporary measures to smooth the current crisis.
Should the current scenario continue, airline companies might see their
credit profile affected due to frustrated growth expectations and the
incurrence of additional costs, with a consequent deterioration in future
earnings.

The Brazilian airline sector has lived through an abnormal situation
during these past three months, and at several occasions being described
as chaotic by passengers and airline operators.  Among the factors that
contributed to such a scenario is a problem already well known in Brazil,
the 'infrastructure bottleneck'.  The lack of investments was once again
evident in Brazilian airports, where the scarcity of efficient
infrastructure to support accelerated growth was observed.

In turn, the introduction of new operating methods by Brazilian airline
companies to improve utilization of their aircraft and the reduction in
market share of an important company in the sector contributed to further
aggravating the crisis at the end of 2006.  The largest airline companies
utilize their highly interconnected route network to obtain operational
efficiency, maximizing aircraft flightime.  Once this network is
restricted and interconnections limited, the system becomes inefficient,
with flight delays and cancellations generating negative repercussions of
economic and social nature.

Fitch's priority is to seek to identify the possible effects on the credit
profile of the companies that are assessed by the agency, should this
scenario continue, rather than issue an opinion on the causes of the
collapse in the Brazilian air transport system of recent weeks.
Nevertheless, the recent events show the consequence of reduced government
investments in infrastructure and that the sector operates with limited
investments in equipment and manpower.

The rapid growth in the Brazilian aviation market observed over the past
three years has caused such fragilities to become more evident.
Regardless of whether or not the present problems are solely due to the
absence of adequate technical operating conditions, attributable to a lack
of investments, or a combination of that and the airline companies'
inefficiency in properly serving the strong demand observed, the fact is
that the national airline sector is experiencing a time of crisis that has
to be resolved in a responsible manner.

Before the crisis scenario, companies in the sector anticipated a growth
of between 12% and 15% for 2007, continuing the strong expansion observed
in recent years.  The companies have prepared for this growth and invested
heavily to expand their aircraft fleet.  The factors produced by the
sectorial crisis conflict with the national airlines basic strategies:
reducing costs and maximizing daily aircraft usage.

The flight delays and cancellations observed in recent months are
discouraging passengers, many of whom have already made alternative travel
plans, with a possible impact on projections for aircraft load factors.
In addition, they involve added costs, relative to passenger-related
expenses that were not forecasted, the costs incurred with aircraft on the
ground waiting for permission to take off, additional personnel expenses
and eventual indemnifications that may be sought through judicial
measures.  The prolonging of this turbulent environment is expected to
have a negative impact on the companies' image and operating margins.

The Brazilian civil aviation market has presented strong growth since
2004, increasing from 28 million passengers that year to 36 million in the
first 11 months of 2006.  This number would tend to be even more relevant
when the month of December is included, since the year-end holidays have a
significant weight in sector seasonality.  In 2006, demand grew 12.9%
versus an increased seating capacity of 10.7%.

In terms of load factor, GOL and TAM continued to present an improvement
in this indicator for the accumulated 11-month period in 2006.  However,
for the crisis months of October and November, GOL presented an average
load factor decline of around 4 percentage points; TAM reckons that the
crisis would reduced load factors by 2%.  The effects of crisis are still
not available for December.  Given the significant volume of cancellations
and delays, the impact on the companies is expected to be relevant, mainly
for TAM, the company with the largest number of canceled and delayed
flights, but not immediately impacting its credit profile.

For 2007, Fitch expects that competition will intensify in the sector with
the return of Varig, more aggressive positioning by Oceanair and BRA,
companies that still have limited activities but relevant expansion plans
underway, and the delivery of aircraft ordered by TAM and GOL.  An
increase in competition resulting in companies being tempted to engage in
a harmful fare war, coupled with lower aircraft load factors, would
inevitably impact the strong credit profile of the Brazilian airline
companies.


UNIVERSAL CORP: Court Reduces Plaintiff Jury Award to US$1.25MM
---------------------------------------------------------------
Universal Corporation disclosed that a California court has substantially
reduced punitive damages previously awarded to plaintiffs in the case
captioned Rosemary Valladares, et al v. Madera Quality Nut, Inc., et al.
Compensatory damages awarded in the case were about US$200,000, and
punitive damages have been reduced by the trial court to approximately
US$1.25 million from the original jury award of US$25 million.  Under this
court order, the total cost to the company and its subsidiaries would be
about US$1.45 million plus a portion of the plaintiffs' legal costs, in
addition to its own legal costs.  The case arose from an employment matter
involving the company's Madera Quality Nut subsidiary, and was tried in
the Superior Court of the State of California in the County of Madera.

The company is reviewing the final order from the court and considering
its options, which could include appeal.  In the six months that ended on
Sept. 30, 2006, the company accrued an estimate of the liability, which
was not material to its consolidated financial statements.  The final
order does not exceed the amount accrued.

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

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

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




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


ALPHA NOVA: Last Day to File Proofs of Claim Is on Jan. 11
----------------------------------------------------------
Alpha Nova Offshore Partners, Ltd.'s creditors are required to submit
proofs of claim by Jan. 11, 2007, to the company's liquidators:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited
          Walker House
          87 Mary Street, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914-6305

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


APPLE BLOSSOM: Deadline for Proofs of Claim Filing Is Jan. 11
-------------------------------------------------------------
Apple Blossom Ltd.'s creditors are required to submit proofs of claim by
Jan. 11, 2007, to the company's liquidator:

          Buchanan Ltd.
          P.O. Box 1170, Grand Cayman
          KY1-1102 Cayman Islands

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Francine Jennings
          P.O. Box 1170, Grand Cayman KY1-1102
          Cayman Islands
          Tel: (345) 949-0355
          Fax: (345) 949-0360


ARANCUS LTD: Proofs of Claim Filing Deadline Is on Jan. 11
----------------------------------------------------------
Arancus Ltd.'s creditors are required to submit proofs of claim by Jan.
11, 2007, to the company's liquidators:

          Buchanan Ltd.
          P.O. Box 1170, Grand Cayman KY1-1102
          Cayman Islands

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Francine Jennings
          P.O. Box 1170, Grand Cayman KY1-1102
          Cayman Islands
          Tel: (345) 949-0355
          Fax: (345) 949-0360


BLUE BAY: Creditors Have Until Jan. 11 to File Proofs of Claim
--------------------------------------------------------------
Blue Bay Marine Management, Ltd.'s creditors are required to submit proofs
of claim by Jan. 11, 2007, to the company's liquidators:

          Rayamond Whittaker
          FCM Ltd., Grand Pavilion Commercial Centre
          Main Entrance, PO Box 1982, George Town
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Blue Bay's shareholders agreed on Nov. 20, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004
Revision) of the Cayman Islands.


BRANDERVIEW INVESTMENTS: Proofs of Claim Filing Is Until Jan. 11
----------------------------------------------------------------
Branderview Investments Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidator:

          Buchanan Ltd.
          P.O. Box 1170, Grand Cayman
          KY1-1102 Cayman Islands

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Timothy Haddleton
          P.O. Box 1170, Grand Cayman KY1-1102
          Cayman Islands
          Tel: (345) 949-0355
          Fax: (345) 949-0360


CRABTREE LTD: Claims Filing Deadline Is Set for Jan. 11
-------------------------------------------------------
Crabtree Ltd.'s creditors are required to submit proofs of claim by Jan.
11, 2007, to the company's liquidators:

          Buchanan Ltd.
          P.O. Box 1170, Grand Cayman KY1-1102
          Cayman Islands

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Francine Jennings
          P.O. Box 1170, Grand Cayman KY1-1102
          Cayman Islands
          Tel: (345) 949-0355
          Fax: (345) 949-0360


EXIS HOLDINGS: Proofs of Claim Filing Deadline Is on Jan. 11
------------------------------------------------------------
Exis Holdings, Ltd.'s creditors are required to submit proofs of claim by
Jan. 11, 2007, to the company's liquidators:

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

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

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


GOLDEN KEY: Creditors Have Until Jan. 11 to File Proofs of Claim
----------------------------------------------------------------
Golden Key Co. Ltd.'s creditors are required to submit proofs of claim by
Jan. 11, 2006, to the company's liquidators:

          Buchanan Limited
          P.O. Box 1170
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Francine Jennings
          P.O. Box 1170
          Grand Cayman, Cayman Islands
          Tel: (345) 949-0355
          Fax: (345) 949-0360


GOLDRIVER INVESTMENTS: Proofs of Claim Filing Is Until Jan. 11
--------------------------------------------------------------
Goldriver Investments Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidators:

          Buchanan Ltd.
          P.O. Box 1170
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Timothy Haddleton
          P.O. Box 1170
          Grand Cayman, Cayman Islands
          Tel: (345) 949-0355
          Fax: (345) 949-0360


GRAND DYNAMICS: Creditors Must Submit Proofs of Claim by Jan. 11
----------------------------------------------------------------
Grand Dynamics Ltd.'s creditors are required to submit proofs of claim by
Jan. 11, 2007, to the company's liquidators:

          Buchanan Ltd.
          P.O. Box 1170
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Francine Jennings
          P.O. Box 1170
          Grand Cayman, Cayman Islands
          Tel: (345) 949-0355
          Fax: (345) 949-0360


INSURCO INTERNATIONAL: Proofs of Claim Filing Is Until Jan. 11
--------------------------------------------------------------
Insurco International Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2006, to the company's liquidators:

          Jonathan Marshall
          Michael Skehan
          Chesterfield House, First Floor
          7-13 Victoria Street Douglas, Isle of Man,
          IM1 2LR, British Isles

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

Insurco International's shareholders agreed on Dec. 5, 2006, for the
company's voluntary liquidation under Section 135 of the Companies Law
(2004 Revision) of the Cayman Islands.

Parties-in-interest may contact:

          Susan Taber
          c/o Ogier
          P.O. Box 1234
          Grand Cayman, Cayman Islands
          Tel: (345) 949 1689
          Fax: (345) 949 1986


KENBOW CO: Shareholders to Gather for Jan. 11 Final Meeting
-----------------------------------------------------------
Kenbow Co. Ltd.'s final shareholders meeting will be on
Jan. 11, 2007, at:

          Maples Finance Ltd.
          Queensgate House, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidators can be reached at:

          Wendy Ebanks
          Joshua Grant
          Maples Finance Ltd
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands


LQ GOLFERS: Last Day for Proofs of Claim Filing Is on Jan. 11
-------------------------------------------------------------
LQ Golfers Ltd.'s creditors are required to submit proofs of claim by Jan.
11, 2007, to the company's liquidators:

          Buchanan Ltd.
          P.O. Box 1170
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Francine Jennings
          P.O. Box 1170, Grand Cayman KY1-1102
          Cayman Islands
          Tel: (345) 949-0355
          Fax: (345) 949-0360


MISUBA LTD: Last Day to File Proofs of Claim Is on Jan. 11
----------------------------------------------------------
Misuba Ltd.'s creditors are required to submit proofs of claim by Jan. 11,
2007, to the company's liquidators:

          Buchanan Ltd.
          P.O. Box 1170
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Francine Jennings
          P.O. Box 1170
          Grand Cayman, Cayman Islands
          Tel: (345) 949-0355
          Fax: (345) 949-0360


ONE'S MALL: Proofs of Claim Filing Deadline Is on Jan. 11
---------------------------------------------------------
One's Mall Investors, Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2006, to the company's liquidators:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited
          Walker House
          87 Mary Street, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914-6305

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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


PRIMA INVESTMENTS: Last Day to File Proofs of Claim Is Jan. 11
--------------------------------------------------------------
Prima Investments Ltd's creditors are required to submit proofs of claim
by Jan. 11, 2007, to the company's liquidators:

          Buchanan Ltd.
          P.O. Box 1170
          Grand Cayman, Cayman Islands

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Timothy Haddleton
          P.O. Box 1170
          Grand Cayman, Cayman Islands
          Tel: (345) 949-0355
          Fax: (345) 949-0360


REFLET LTD: Creditors Must File Proofs of Claim by Jan. 11
----------------------------------------------------------
Reflet Ltd.'s creditors are required to submit proofs of claim by Jan. 11,
2007, to the company's liquidators:

          Buchanan Ltd.
          P.O. Box 1170, Grand Cayman KY1-1102
          Cayman Islands

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

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

Parties-in-interest may contact:

          Francine Jennings
          P.O. Box 1170, Grand Cayman KY1-1102
          Cayman Islands
          Tel: (345) 949-0355
          Fax: (345) 949-0360


SCO PROPERTY: Deadline for Proofs of Claim Filing Is on Jan. 11
---------------------------------------------------------------
SCO Property, Ltd.'s creditors are required to submit proofs of claim by
Jan. 11, 2006, to the company's liquidators:

          John Cullinane
          Derrie Boggess
          c/o Walkers SPV Limited
          Walker House
          87 Mary Street, George Town
          Grand Cayman, Cayman Islands
          Tel: (345) 914-6305

Creditors who are not able to comply with the Jan. 11 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.

SCO Property's shareholders agreed on Dec. 12, 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
=========


AES GENER: Presenting Environmental Study for Alto Maipo
--------------------------------------------------------
Published reports say that AES Gener and Aguas Andinas will present this
year an environmental impact study for their US$500-million Alto Maipo
hydro project in the Metropolitan Region's Maipo river basin.

Alvaro Rojas, the agriculture minister of Chile, told the press that AES
Gener and Aguas Andinas will probably present the EIS in the first half of
the year.

Business News Americas relates that AES Gener and Aguas Andinas will start
the construction of the project in 2008.  The project will start operating
in five years.

Alto Maipo would include construction of two plants on the Maipo and
Colorado rivers, BNamericas states.

AES Gener is the second-largest electricity generation group in
Chile in terms of generating capacity (20% market share) with an
installed capacity of 2,428 megawatts.  Gener serves both the
Central Interconnected System or SIC and the Northern
Interconnected System or SING through various subsidiaries and
related companies, including affiliate Guacolda and the
TermoAndes subsidiary.  TermoAndes has a generation capacity of
642.8 megawatts, which while located in Argentina serves Chile's
SING via InterAndes transmission line.  Gener also participates
in electricity generation in Colombia through Chivor
hydroelectric plant of 1,000 megawatts, and a 25% participation
in Itabo's facilities in the Dominican Republic (432.5
megawatts).  Gener is 91.2% owned by AES (IDR rated 'B+' by
Fitch).

                        *    *    *

On June 16, 2006, Fitch Ratings upgraded the local and foreign
currency Issuer Default Ratings of AES Gener SA to 'BB+' from
'BB'.  Fitch also upgraded Gener's senior unsecured debt rating,
which consists of US$400 million senior notes due 2014, to
'BB+'.  Moreover, Fitch revised Gener's Rating Outlook to
Positive from Stable.

On May 24, 2006, Moody's Investors Service upgraded the senior
unsecured debt of AES Gener to Ba1 from Ba3, concluding a review
for possible upgrade.  Moody's said the rating outlook is
stable.


BLOCKBUSTER INC: Subscriber Base Reaches Two Million at Year-End
----------------------------------------------------------------
Blockbuster Inc. disclosed that the company ended the year with
approximately 2.2 million online rental subscribers, including
approximately 2 million paying subscribers.

"We are pleased that we achieved our year-end goal of 2 million
subscribers, an addition of more than 500,000 paying subscribers since the
end of the third quarter.  We credit our success to BLOCKBUSTER Total
Access, which gives our online customers the option of returning their
DVDs through the mail or exchanging them at a participating BLOCKBUSTER
store for free in-store movie rentals," said John Antioco Blockbuster
Chairman and CEO.  "The strong consumer appeal of Blockbuster Total Access
has translated into significant subscriber growth and was accomplished
without any broadcast media except in a handful of test markets."

Under the Blockbuster Total Access program for each online rental
exchanged in the store, customers can receive a free in-store movie
rental.  Blockbuster Total Access also offers subscribers faster shipping
cycles.  When subscribers return their online rental to a participating
Blockbuster store, the store check-in process automatically initiates the
process of shipping the next available movie(s) in the subscriber's rental
queue, so customers generally receive their online movie a day faster than
if they had dropped the return movies in the mail themselves.  In-store
movies are still subject to store rental terms, including due dates, and
must be returned to the store from which they were rented.

"Thanks to Blockbuster Total Access, customers no longer have to choose
between renting online or renting in-store, and they never have to be
without a movie," said Mr. Antioco.  "We believe this compelling and
unique offering will make blockbuster.com the fastest growing online DVD
rental service in 2007."

Blockbuster Inc. (NYSE: BBI, BBI.B) -- http://www.blockbuster.com/--  
provides in-home movie and game entertainment, with more than 8,500 stores
throughout the Americas, Europe, Asia, and Australia.  The company
operates in Puerto Rico, Argentina, Brazil and Chile.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 18, 2006, Standard &
Poor's Ratings Services revised its outlook on video rental retailer
Blockbuster Inc. to stable from negative.  The ratings on the Dallas-based
company, including the 'B-' corporate credit rating, were affirmed.


ROCK-TENN: Discloses Coated Recycled Paperboard Price Increase
--------------------------------------------------------------
Rock-Tenn Co. disclosed a US$25 per ton price increase on coated recycled
paperboard.  The price change will become effective with shipments on Feb.
1, 2007.  Caliper and sheeting upcharges will remain at current levels.

Headquartered in Norcross, Georgia, Rock-Tenn Company, provides
marketing and packaging solutions to consumer products companies
from operating locations in the United States, Canada, Mexico,
Argentina and Chile.

                        *    *    *

Moody's Investors Service confirmed on Dec. 11, 2006, these ratings of
Rock-Tenn Company:

   * Corporate Family Rating: Confirmed at Ba2
   * Senior Unsecured Bank Credit Facility: Confirmed at Ba2
   * Senior Unsecured Regular Bond/Debenture: Confirmed at Ba3

Moody's restored the outlook to stable.  The rating action concludes a
review initiated on Feb. 13.  In turn, "the review was prompted by ongoing
margin pressure that, given the background of increased debt levels as a
consequence of an acquisition that was completed last year, has caused
credit protection measures to lag those appropriate for the current
rating".




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


GRAN TIERRA: James Hart Resigns as Chief Financial Officer
----------------------------------------------------------
Gran Tierra Energy Inc. accepted the resignation of James Hart
from his position as the company's Chief Financial Officer and Vice
President, Finance.  Effective Jan. 2, 2007, the Board elected Martin H.
Eden to fill the position of Chief Financial Officer, filling the vacancy
created by Mr. Hart's resignation.  Mr. Eden began full time employment
with the company on Jan. 2.  Mr. Hart will continue to serve the company
in a business development position.

Mr. Eden has over 26 years experience in accounting and finance in the
energy industry in Canada and overseas.  He was Chief Financial Officer of
Artumas Group Inc., a publicly listed Canadian oil and gas company from
April 2005 to December 2006 and was a director from June to October 2006.
He has been president of Eden and Associates Ltd., a financial consulting
firm, from 1999 to present.  From 2004 to 2005 he was CFO of Chariot
Energy Inc., a Canadian private oil and gas company. During 2004 he was
also CFO of Assure Energy Inc., a publicly traded oil and gas company
listed in the United States.  From 2001 to 2002 he was CFO of Geodyne
Energy Inc., a publicly listed Canadian oil and gas company.  From 1997 to
2000 he was Controller and subsequently CFO of Kyrgoil Corporation, a
publicly listed Canadian oil and gas company with operations in Central
Asia.  He spent nine years with Nexen Inc. (1986-1996), including three
years as Finance Manager for Nexen's Yemen operations and six years in
Nexen's financial reporting and special projects areas in its Canadian
head office.  Mr. Eden has worked in public practice including two years
as an audit manager for Coopers & Lybrand in East Africa.

Mr. Eden holds a B.Sc. in Economics from Birmingham University, England,
an MBA from Henley Management College/Brunel University, England, and is a
member of the Institute of Chartered Accountants of Alberta and the
Institute of Chartered Accountants in England and Wales.

Dana Coffield, President and Chief Executive Officer of Gran Tierra,
stated, "The addition of Mr. Eden to the executive team, with his
extensive financial leadership experience with international E&P companies
in diverse public and private environments, significantly strengthens the
existing management team of Gran Tierra Energy."

Gran Tierra Energy Inc. (OTCBB: GTRE.OB) --
http://www.grantierra.com/-- is an international oil and gas
exploration and development company headquartered in Calgary,
Canada, incorporated and traded in the United States and
operating in South America.  The company currently holds
interests in producing and prospective properties in Argentina,
Colombian and Peru.

                        *    *    *

Management disclosed that the company's ability to continue as a
going concern is dependent upon obtaining the necessary
financing to acquire oil and natural gas interests and
generating profitable operations from its oil and natural gas
interests in the future. The company incurred a net loss of
US$1.9 million for the nine-month period ended Sept. 30, 2006,
and, as at Sept. 30, 2006, had an accumulated deficit of US$4.1
million.


ECOPETROL: President Alvaro Uribe Okays Bill for Stake Sale
-----------------------------------------------------------
Colombian President Alvaro Uribe has signed into law a bill for the sale
of up to 20% of Ecopetrol, the state-run oil firm, SNE reports.

Business News Americas relates that the shares will be available for sale
later this year.

As previously reported, shares would be sold in three separate rounds:

          -- in the first and second rounds, the stake would be
             offered to:

             * pension funds,
             * cooperatives,
             * Ecopetrol workers and pensioners,
             * local governments, and
             * individual Colombians; and

          -- in the third round, shares would be available for
             institutional investors.

Individual investors can't purchase over COP2 billion in shares, while
institutional buyers can't buy over 3%.

According to a statement, the capitalization will allow Ecopetrol to
conduct an investment plan that calls for spending almost to US$2.5
billion yearly.

The Colombian government will retain its 80% stake in Ecopetrol.

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

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




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


GNC CORP: Supports Passage of Adverse Event Reports Bill
--------------------------------------------------------
GNC Corp. supported the passage of the Dietary Supplement and
Nonprescription Drug Consumer Act, also known as the Adverse Event Reports
or AER bill.  The Act requires the distributors of dietary supplement and
over-the-counter drug products to submit any serious adverse event report
attributed to their products to the United States Food and Drug
Administration within 15 business days of receiving the report.  This new
law becomes effective one year after its passage Dec. 26.

GNC applauds the lawmakers who drafted and supported the passage of this
bill believing that it will highlight the safety of dietary supplements
and over-the-counter drugs, and that such additional federal oversight
will further increase consumer confidence in these products.  GNC is
committed to helping people Live Well and recognizes that product safety
is a pillar of that commitment.

"We already have a system in place for reporting adverse events and we
will we continue to build upon that system in 2007 to ensure it complies
with the new law," stated Susan Trimbo, PhD, Sr. Vice President of
Scientific Affairs.  "This kind of legislation improves the industry as a
whole through accountability which, in turn, increases consumer confidence
in dietary supplements.  We stand behind the quality of our products and
our manufacturing standards."

General Nutrition Centers, Inc., with headquarters in
Pittsburgh, Pennsylvania, retails and manufactures vitamins,
minerals, and nutritional supplements domestically and
internationally through about 5850 company-operated and
franchised stores.  Revenue for the twelve months ended September 2006
approached US$1.5 billion.  GNC's Latin American operations are in the
Bahamas, Cayman Islands, Chile, Colombia, Costa Rica, among others.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 20, 2006, Moody's
Investors Service downgraded the corporate family rating of GNC Parent
Corporation to B3 and the US$425 million holding company note issue to
Caa2.




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


BANCO INTERCONTINENTAL: Luis Alvarez Renta Discloses Assets
-----------------------------------------------------------
Luis Alvarez Renta, a financier of Banco Intercontinental and one of the
defendants in the bank's fraud case, disclosed that his only properties
are a Jarabacoa farm and an unspecified amount of corporate shares
offshore, Dominican Today reports, citing Matias Dorta, one of the legal
representatives of the financial and monetary authorities of the Dominican
Republic.

The value of those assets was unknown and the authorities are taking the
necessary steps for the Banco Intercontinental Liquidation Commission to
take possession of them, Mr. Dorta told Clave Digital.

Despite that from 20 to 25 bank accounts of companies supposedly linked to
Mr. Renta have been identified, the amounts are not significant, Clave
Digital says, citing Mr. Dorta.

US judge Jose E. Mrtinez ruled on Nov. 23, 2005, that Mr. Renta must pay
US$176.9 million to the Banco Intercontinental Liquidation Commission
after a jury declared Mr. Renta guilty of violating the law Racketeer
Influenced and Corrupt Organization Act.

Dominican Today relates that Mr. Renta filed an appeal for the decision.
However, it doesn’t detain the compliance of the sentence.

Mr. Dorta told Dominican Today that quantifying and establishing the
whereabouts of Mr. Renta’s assets has been a very difficult process, as
the former Banco Intercontinental financier has several properties in the
name of different corporations, many of them with very similar names.

Authorities have up to 25 years to come up with a sentence, Dominican
Today notes, citing Mr. Dorta.

As previously reported, Mr. Renta has complained about an alleged
persecution against him and his relatives on the part of the authorities.

Dominican Today underscores that Mr. Renta claimed that a house of one of
his daughters was brought under scrutiny and reclamation.  He stressed
that the US$300,000 house in Coral Gables, Miami, belongs to his daughter.

However, Mr. Dorta told Dominican Today that according to the data from
the authorities, the house is owned by a firm where a company that Mr.
Renta controlled has shares.

Mr. Dorta explained to Dominican Today, "Wadeville Investments LTD,
controlled by Alvarez Renta and against which we have a sentence, has
shares in the holding company of the house; we have the duty to recover
those assets.  We have also seen that Wadeville Investments LTD had as
intention to keep a bank account in Miami to receive funds, a large part
diverted from Baninter.  If Wadeville Investments makes fraudulent
transfers to buy a house, then we can present actions against that company
because it received fraudulently transferred funds."

According to Dominican Today, Mr. Renta's assets will still be debated in
court.

Mr. Dorta commented to Dominican Today, "In the hearing scheduled for
January we expect that the judge orders Wadeville Investments to transfer
several shares of which it is owner, to the Baninter (Banco
Intercontinental) Liquidation Commission."

A yacht that authorities suspect belongs to Mr. Renta will also be
discussed in the hearing, Dominican Today says, citing Mr. Dorta.

Mr. Dorta told Dominican Today, "It’s about who is the owner of a yacht
manufactured in Florida, which according to some people is valued at two
million dollars; we don’t know what is the cost, we will see what value
that yacht has and to who it really belongs."

The report says that a villa in the exclusive Punta Cana resort would also
be debated in court.

Mr. Dorta affirmed to Dominican Today that Mr. Renta declared under oath
that he lives with loans.  Mr. Dorta said, "He spoke of a friend Najri who
loaned him 5 or 600,000 dollars."

Dominican Today underscores that on Dec. 22, Mr. Dorta appeared in the
First Collegiate Court for the Banco Intercontinental trial.  However, the
lawyers of Mr. Renta requested Mr. Dorta's removal.  The judge overruled
the motion.

The Dominican monetary and financial authorities' legal representative can
be reached at:

          Matias Dorta
          Tew Cardenas LLP
          Four Seasons Tower, 15th Floor
          1441 Brickell Avenue
          Miami, Florida 33131-3407
          USA
          Phone: (305) 536-1112
          Fax: (305) 536-1116

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


* DOMINICAN REPUBLIC: Placing DOP500MM Investment Certificates
--------------------------------------------------------------
The central bank of the Dominican Republic will place DOP500 million in
investment certificates, Dominican Today reports.

Dominican Today relates that financial entities like multiple banking,
credit corporations and savings and loan co-ops may participate, as well
as institutional investors, insurance companies, private and public
investment funds, stock exchange, and other non-financial entities and the
general public.

According to Dominican Today, the terms for investment are 35, 89, 182 and
364 days.  The minimum amount for offers is DOP100,000.

Forms for those interested in bidding are available at the central bank's
Web page at: http://www.bancentral.gov.do/

                        *    *    *

The Troubled Company Reporter-Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:

   -- Long-term foreign currency Issuer Default Rating
      to B from B-;

   -- Country ceiling upgraded to B+ from B-;

   -- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;

   -- Foreign currency Brady bonds due 2009 to B/RR4
      from B-/RR4;

   -- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;

   -- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;

   -- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and

   -- Foreign currency collateralized Brady bonds due 2024
      to B+/RR3 from B/RR3.

Fitch also affirmed these ratings:

   -- Long-term local currency Issuer Default Rating: B; and
   -- Short-term Issuer Default Rating: B.

Additionally, Fitch assigned a debt and Recovery Rating to this
issue:

   -- Foreign currency bonds due 2027: B/RR4.

Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.




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


GOODYEAR TIRE: S&P Affirms B+ Rating on New Labor Contract
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' corporate credit and
other ratings on Goodyear Tire & Rubber Co. and removed them from
CreditWatch where they were placed with negative implications on Oct. 16,
2006, as a result of the labor dispute at several of the company's North
American plants.

The affirmation follows the announcement that Goodyear and the United
Steel Workers Union, representing about 12,600 employees at 12 plants in
the U.S. and Canada, have reached an agreement on a new contract and union
members have ratified the agreement. The outlook is stable.

Pro forma for US$1 billion of new debt sold in the fourth quarter --
partly to refinance US$515 million of debt coming due in the next six
months, some of which was repaid in December --Goodyear has total debt of
about US$12 billion.

The new contract should enable Goodyear to achieve substantial cost
savings over the three-year contract term.  The company estimates that
compared with 2006 prestrike levels, savings are expected to total US$70
million in 2007, US$240 million in 2008, and US$300 million in 2009.
These savings are comprised of capacity-related savings, reduced legacy
costs, and savings from increased productivity.

Significant terms of the new three-year contract include:

   -- the elimination of Goodyear's responsibility for all
      current and future retiree health care liabilities for the
      company's USW workforce in return for the creation of a
      VEBA trust with US$1 billion in initial funding, a portion
      of which could be funded with Goodyear's common equity.
      Resulting OPEB expense savings are estimated at
      US$110 million and cash savings at US$145 million annually
      compared with 2006.  Goodyear's total unfunded OPEB
      liability was US$2.6 billion at the end of 2005, of which
      about half was the USW OPEB liability.

   -- the closure of the Tyler, Texas-based plant after the end
      of 2007.  This closure will eliminate 9 million units of
      higher-cost capacity and save an estimated US$50 million
      annually.

   -- lower-cost wages and benefits for new hires during the
      first three years of employment.  The level of savings
      will depend partly on the attrition rate of the existing
      workforce.




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


* HAITI: CHF Secures Job Creation & Infrastructure Programs
-----------------------------------------------------------
CHF International has been awarded funding for a 4-year job creation and
infrastructure program in Haiti by the United States Agency for
International Development or USAID.  The program relies on the commitment
of its key partners, the Government of Haiti, local partners, and the
communities.  These stakeholders will drive the identification,
implementation and maintenance of large-scale employment- generating
projects in the five target cities of:

   -- Port-au-Prince,
   -- Gonaives,
   -- St. Marc,
   -- Petit Goave and
   -- Cap Haitien.

The integrated approach will assist an estimated 86,100 people through
employment over the life of the program, including at least 1,400 people
who will receive their first paycheck within the first 60 days.

The program comes at a critical time, given Haiti's formal unemployment
rate of more than 60%, frequent natural disasters, and lack of basic
infrastructure, which have left many struggling to survive. Known for its
commitment to stability in fragile states and strong community-based
approach, CHF International has already had extensive meetings with
government bodies and communities to identify projects that can begin
immediately.

"The linkages this program will create among the private sector, the local
authorities, and the communities are pivotal," said William Holbrook,
CHF/Haiti's Chief of Party for the JOBS Program, who has extensive
knowledge of the country.  He added, "We are fostering a space in the
economy for everyday citizens to participate, reinforcing economic
opportunity, which is the country's best prospect to achieve long-term
stability and peace."

Along with creating employment through key infrastructure projects, the
program will leverage private sector resources with workforce development
training, to ensure that the program creates and sustains at least 10,000
long-term, durable jobs.  CHF's demand-driven and flexible approach is
anticipated to build stability in the five key volatile urban areas
through job creation and strategic infrastructure investments that will be
operated, maintained and sustained by the Haitian stakeholders, and
benefit over 600,000 people.

CHF International, a leading organization in international humanitarian
assistance, has had an active presence in Haiti for over two decades,
managing environmental job creation programs and tropical storm
reconstruction initiatives.

Founded in 1952, CHF International's mission is to be a catalyst for long-
lasting positive change in low- and moderate-income communities around the
world, helping families improve their economic circumstances, environment
and infrastructure.  CHF has worked in nearly 100 countries worldwide
since its inception.

                        *    *    *

Haiti is currently seeking international help to spur economic
development in the country.  President Rene Preval submitted
that the country's poverty, widespread unemployment and the
dilapidated state of infrastructure will be alleviated with
increased international assistance.




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


ALLIS-CHALMERS: Offers US$225MM Sr. Notes in Private Placement
--------------------------------------------------------------
Allis-Chalmers Energy Inc. intends to offer, subject to market and other
conditions, US$225 million aggregate principal amount of its senior notes
due 2017 in a private placement.  Allis-Chalmers plans to use the net
proceeds of this offering to repay a portion of the debt outstanding under
its US$300 million bridge loan facility, which was incurred to finance
Allis-Chalmers' recent acquisition of substantially all the assets of Oil
& Gas Rental Services, Inc.

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

                        *    *    *

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


ALLIS-CHALMERS: Offering 4.5 Million Shares of Common Stock
-----------------------------------------------------------
Allis-Chalmers Energy Inc. intends to offer 4.5 million shares of its
common stock in an underwritten public offering.

Allis-Chalmers plans to grant the underwriters a 30-day option to purchase
up to an additional 675,000 shares to cover over-allotments, if any.

Allis-Chalmers plans to use the net proceeds of this offering to repay a
portion of the debt outstanding under its US$300 million bridge loan
facility, which was incurred to finance Allis-Chalmers' recent acquisition
of substantially all the assets of Oil & Gas Rental Services, Inc., and
for general corporate purposes.

RBC Capital Markets Corp. is serving as lead underwriter and sole
book-running manager of the offering.  The co-managers of the offering are
Johnson Rice & Company L.L.C., Morgan Keegan & Company, Inc. and Pritchard
Capital Partners, LLC.

The offering of these securities will be made only by means of a
prospectus and related prospectus supplement.  When available, copies of
the prospectus and preliminary prospectus supplement relating to the
offering may be obtained from:

          RBC Capital Markets Corp.
          60 South 6th Street
          17th Floor, Minneapolis, MN 55402
          Tel: (612) 371-2818
          Fax: (612) 371-2837)

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

                        *    *    *

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


ADVANCED MARKETING: Case Summary & 40 Largest Unsec. Creditors
--------------------------------------------------------------
Lead Debtor: Advanced Marketing Services, Inc.
             5880 Oberlin Drive
             San Diego, CA 92121


Bankruptcy Case No.: 06-11480

Debtor affiliates filing separate chapter 11 petitions:

      Entity                                     Case No.
      ------                                     --------
      Publishers Group Incorporated              06-11481
      Publishers Group West Incorporated         06-11482

Type of Business: Advanced Marketing  provides customized
                  merchandising, wholesaling, distribution and
                  publishing services, currently primarily to
                  the book industry.  The company has operations
                  in the U.S., Mexico, the United Kingdom and
                  Australia and employs approximately 1,200
                  people Worldwide.  See http://www.advmkt.com/

Chapter 11 Petition Date: December 29, 2006

Court: District of Delaware (Delaware)

Judge: Christopher S. Sontchi

Debtors' Counsel: Chun I. Jang, Esq.
                  Mark D. Collins, Esq.
                  Paul Noble Heath, Esq.
                  Richards, Layton & Finger, P.A.
                  920 North King Street
                  P.O. Box 551
                  Wilmington, DE 19899
                  Tel: (302) 651-7700
                  Fax: (302) 651-7701

                          Estimated Assets       Estimated Debts
                          ----------------       ---------------
Advanced Marketing        More than              More than
  Services, Inc.          US$100 Million          US$100 Million

Publishers Group          US$1 Million to        US$1 Million to
  Incorporated            US$100 Million         US$100 Million

Publishers Group          US$1 Million to        US$1 Million to
  West Incorporated       US$100 Million         US$100 Million

Debtors' Consolidated List of 40 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Random House                  Trade Debt           US$43,347,815
1540 Broadway
New York, NY 10036
Attn: Bill Sinnott
Tel: (410) 386-7480
Fax: (410) 386-7439

Simon & Schuster Inc.         Trade Debt           US$26,457,886
1230 Avenue of the Americas
New York, NY 10020
Attn: David England
Tel: (212) 689-7022
Fax: (212) 698-1258

Penguin Putnam, Inc.          Trade Debt           US$24,614,829
375 Hudson Street
New York, NY 10014
Attn: Michelle Cangialosi
Tel: (201) 767-2916
Fax: (201) 767-5162

Hachette Book Group USA       Trade Debt           US$22,569,624
dba Hachette and Time
Warner Publishing
Three Center Plaza
Boston, MA 02108-2084
Attn: Steve Mubarek
Tel: (617) 263-1949
Fax: (617) 263-2978

HaperCollins US               Trade Debt           US$18,029,249
3030 Robinson Road
Jefferson City, MO 65111
Attn: John Shearer
Tel: (570) 941-1244
Fax: (570) 941-1590

Publications International    Trade Debt           US$12,546,943
7373 North Cicero Avenue
Lincolnwood, IL 60712-1613
Attn: Jeff Coyle
Tel: (847) 329-5355
Fax: (847) 329-5810

VHPS                          Trade Debt            US$9,597,108
175 Fifth Avenue
20th Floor
New York, NY 10010
Attn: Peter Garabedian
Tel: (646) 307-5451
Fax: (917) 302-7466

Andrews McMeel Publishing     Trade Debt            US$8,658,324
4520 Main Street
Kansas City, MO 64111
Attn: Thom Thorton
Tel: (816) 932-6700
Fax: (816) 932-6735

John Wiley & Sons, Inc.       Trade Debt            US$6,030,223
One Wiley Drive
Somerset, NJ 08875-1272
Attn: Dean Karrel
Tel: (201) 748-6275
Fax: (201) 748-8641

Leisure Arts                  Trade Debt            US$4,685,334
80 Willow Park Road
Menlo Park, CA 94025
Attn: Rich Smeby
Tel: (650) 324-5505
Fax: (650) 324-1532

Workman Publishing Company    Trade Debt            US$4,403,889
225 Varick Street
New York, NY 10014-4381
Attn: Phil Gerace
Tel: (212) 614-7565
Fax: (212) 254-8098

Rich Publishing LLC           Trade Debt            US$4,380,171
6611 North 64th Place
Paradise Valley, AZ 85253
Attn: Sharon Lechter
Tel: (480) 607-1940
Fax: (480) 949-6085

Chronicle Books               Trade Debt            US$4,344,797
275 Fifth Street
San Francisco, CA 94103
Attn: Jack Jensen
Tel: (415) 777-7240
Fax: (415) 777-8887

Meredith Corporation          Trade Debt            US$4,333,958
1716 Locust Street
Des Moines, IA 50309
Attn: Ken Zagor
Tel: (515) 284-2282
Fax: (515) 284-3947

Houghton Mifflin Trade Div.   Trade Debt            US$2,564,958
222 Berkeley Street
Boston, MA 02116
Attn: Gary Gentel
Tel: (617) 351-5927
Fax: (617) 351-1185

Avalon Publishing Group       Trade Debt            US$2,297,489
1400 65th Street
Suite 250
Emeryville, CA 94608
Attn: Susan Reich
Tel: (510) 595-3664
Fax: (510) 595-4228

United States Playing         Trade Debt            US$2,015,057
Card Co.
2510 Reliable Parkway
Chicago, IL 60686-0025
Attn: Amy Bruno
Tel: (800) 542-7430 ext. 7507
Fax: (513) 396-5878

Zondervan                     Trade Debt            US$2,002,239
5300 Patterson Avenue, SE
Grand Rapids, MI 49530
Attn: Verne Kenney
Tel: (616) 698-6548
Fax: (616) 698-3313

Global Book Publishing        Trade Debt            US$1,747,737
Level 8, 15 Orion Road
Lane Cove, NSW
Australia 2066
Attn: Cheryl Perry
Tel: (+612) 9425-5800
Fax: (+612) 9967-5891

Cook Illustrated              Trade Debt            US$1,483,506
17 Station Street
Brookline, MA 02445
Attn: Demee Gambulos
Tel: (617) 232-1000
Fax: (617) 232-1572

Client Distribution Service   Trade Debt            US$1,443,775
378 Park Avenue South
12th Floor
New York, NY 10016
Attn: Tom Allen
Tel: (212) 340-8130
Fax: (212) 340-8105

National Book Network         Trade Debt            US$1,137,465
15200 NBN Way
Blue Ridge Summit, PA 17214
Attn: Jeff Harris
Tel: (717) 794-3807
Fax: (717) 794-3804

New World Library             Trade Debt            US$1,122,419
14 Pamaron Way
Novato, CA 94949
Attn: Munro Magruder
Tel: (415) 884-2100 Ext. *8+21
Fax: (415) 884-2199

Grove/Atlantic                Trade Debt            US$1,079,889
841 Broadway, 4th Floor
New York, NY 10003-4793
Attn: Eric Price
Tel: (212) 614-7907
Fax: (212) 614-7886

Hugh L. Levin Associates      Trade Debt            US$1,029,831
9 Burr Road
Westport, CT 06880
Attn: Hugh Levin
Tel: (203) 227-6422
Fax: (203) 227-6717

Good Books                    Trade Debt              US$969,723
P.O. Box 419
7195 Grayson Road
Intercourse, PA 17534
Attn: Merle Good
Tel: (800) 762-7171 Ext. 250
Fax: (800) 762-7171

Amber-Allen Publishin Inc.    Trade Debt              US$957,356
68 Mitchell Boulevard
Suite 215
San Rafael, CA 94903
Attn: Karen Krieger
Tel: (415) 499-4657
Fax: (415) 499-3174

Millennium House              Trade Debt              US$909,552
52 Bolwarra Road
Elanora Heights, NSA
Australia 2101
Attn: Gordon Cheers
Tel: (612) 9970-6850
Fax: (612) 9970-8136

Tyndale House Publishing      Trade Debt              US$852,719
370 Executive Drive
Carol Stream, IL 60188
Attn: Everett O'Brian
Tel: (603) 668-8300 Ext. 258
Fax: (630) 668-8905

Hinkler Books Pty. Ltd.       Trade Debt              US$841,780
17-23 Redwood Drive
Dingley Village, Victoria
Australia 3172
Attn: Stephen Ungerer
Tel: (613) 9552-1313
Fax: (613) 9558-2566

Becker & Mayer                Trade Debt              US$818,449
11010 Northup Way
Bellevue, WA 98004
Attn: Jim Becker
Tel: (425) 827-7120 Ext. 111
Fax: (425) 828-9659

Banta Book Group              Trade Debt              US$808,329
675 Brighton Beach Road
Menasha, WI 54950
Attn: Stephanie Streeter
Tel: (920) 751-7777
Fax: (920) 751-7799

Avalanche Publishing          Trade Debt              US$797,215
15262 Pipeline Lane
Huntington Beach, CA 92649
Attn: Ray Sharabba
Tel: (800) 888-6421
Fax: (714) 898-2450

Harcourt Brace & Company      Trade Debt              US$792,490
525 B. Street, Suite 1900
San Diego, CA 92101
Attn: Dan Farley
Tel: (619) 699-6816
Fax: (619) 699-6596

Rodale Press Inc.             Trade Debt              US$772,899
733 Third Avenue
New York, NY 10017
Attn: Liz Perl
Tel: (212) 573-0226
Fax: (212) 682-2237

Anness Publishing Inc.        Trade Debt              US$763,854
Hermes House
88/89 Blackfriars Road
London, England SEI 8HA
Attn: Paul Anness
Tel: +44207754400
Fax: 011-44-207-633-9499

Triumph Books                 Trade Debt              US$755,611
601South LaSalle Street
Suite 500
Chicago, IL 60605
Attn: Phil Springstead
Tel: (941) 351-5060
Fax: (312) 663-3557

Anova Books Co. Ltd.          Trade Debt              US$734,976
Promotional Reprint Co. Ltd.
151 Freston Road
London, England W10 6TH
Attn: Robin Wood
Tel: 39-0161/294203
Fax: 44-020-7314-1584

Gallup Inc.                   Trade Debt              US$654,050
901 F Street, Northwest
Washington, DC 20004
Attn: Piotr Juszkiewicz
Tel: (402) 938-6176
Fax: (402) 938-5920

Black Dog & Leventhal         Trade Debt              US$630,127
Publisher
151 West 19th Street
New York, NY 10011
Attn: J.P. Leventhal
Tel: (212) 647-9336 Ext. 101
Fax: (212) 647-9332


CONSTELLATION BRANDS: Affirms Joint Venture with Grupo Modelo
-------------------------------------------------------------
Crown Imports LLC, a beer importation and marketing joint venture owned by
Grupo Modelo, S. A. de CV and Constellation Brands, Inc., disclosed that
joint venture is operational as scheduled.  The joint venture will import
to the United States these brands from Grupo Modelo:

   -- Corona Extra,
   -- Corona Light,
   -- Negra Modelo,
   -- Modelo Especial and
   -- Pacifico

in addition to Tsingtao from China and St. Pauli Girl from Germany.

This marks the first time since the 1978 introduction of Grupo Modelo
brands into the U.S. that they have been imported and marketed by a single
entity.

The Crown Imports LLC joint venture is headquartered in Chicago and will
be led by Bill Hackett, formerly president of Constellation's Barton
Beers, and it will have a board of directors half from Grupo Modelo and
half from Constellation Brands.  The joint venture's Internet Web site is:
http://www.crownimportsllc.com.

                    About Grupo Modelo

Founded in 1925, Grupo Modelo is the leader in the production and
marketing of beer in Mexico, with 62.8% of the total (domestic and export)
market share, as of Dec. 31, 2005.  The company has seven brewing plants
in Mexico, with a total annual installed capacity of 60 million
hectoliters.  Grupo Modelo currently brews and distributes 12 brands;
Corona Extra, the number one Mexican beer in the world, Corona Light,
Modelo Especial, Victoria, Pacifico, Negra Modelo among others. The
company exports five brands with a presence in more than 150 countries,
and it is the exclusive importer of Anheuser-Busch products in Mexico.


CONTINENTAL AIRLINES: Posts 79.5% December 2006 Load Factor
-----------------------------------------------------------
Continental Airlines reported a December consolidated load factor of 79.5%
in December 2006, 1.8 points above the December 2005 consolidated load
factor.  Its mainline load factor of 79.9% in December 2006, about 1.9
points above the December 2005 mainline load factor, and a domestic
mainline load factor of 81.8% -- 2.1 points above December 2005.  All
three were records for the month.

Continental Airlines had an international mainline load factor of 77.5% in
December 2006, 1.7 points above December 2005.

During the month, Continental recorded a US Department of
Transportation on-time arrival rate of 73.4% and a December mainline
completion factor of 99.6%.

In December 2006, Continental Airlines flew 7.5 billion consolidated
revenue passenger miles or RPMs and 9.4 billion consolidated available
seat miles or ASMs, resulting in a traffic increase of 6.9% and a capacity
increase of 4.4% as compared to December 2005.  In December 2006,
Continental Airlines flew 6.6 billion mainline RPMs and 8.3 billion
mainline ASMs, resulting in a mainline traffic increase of 7.1% and a 4.6%
increase in mainline capacity as compared to December 2005.  Domestic
mainline traffic increased 5.4% to 3.7 billion RPMs in December 2006,
compared with December 2005.  Domestic mainline capacity increased 2.8% to
4.5 billion ASMs in December 2006 from December 2005.

For December 2006, consolidated passenger revenue per available seat mile
or RASM is estimated to have increased between 3.5% and 4.5% compared with
December 2005.  Mainline passenger RASM is estimated to have increased
between 5.5% and 6.5% in December 2006, compared with December 2005.

For November 2006, consolidated passenger RASM increased 3.3% compared
with November 2005, while mainline passenger RASM increased 4.6% from
November 2005.

Continental Airlines estimates fourth quarter consolidated RASM to have
increased between 4.1% and 4.4% in 2006, compared with the fourth quarter
2005.  Fourth quarter cost per available seat mile or CASM is expected to
be in line with its most recently provided guidance.  As a result, the
company expects to report a modest loss for the quarter, excluding special
charges.

Continental Airlines ended the fourth quarter of 2006 with unrestricted
cash and short-term investments of approximately US$2.48 billion.

December 2006 sales at continental.com increased 19.0% over
December 2005.

Continental Airlines' regional operations had a record December load
factor of 77.0% in December 2006, 1.6 points above the December 2005 load
factor.  Regional RPMs were 864.7 million and regional ASMs were 1,122.5
million in December 2006, resulting in a traffic increase of 5.8% and a
capacity increase of 3.6% versus December 2005.

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

                        *    *    *

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

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

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


FEDERAL-MOGUL: Won't Transfer Mexican Unit's Equity Interest
------------------------------------------------------------
Federal-Mogul Corp. and its debtor affiliates withdrew their request to
transfer the equity interests of Servicio de Componente Automotrices, S.A.
de C.V. and Servicios Administrativos Industriales, S.A. de C.V. to
non-debtor subsidiary Cooperatief Federal-Mogul Dutch Investments
U.A.

The Debtors dropped their transfer plan with respect to the Mexican units
in response to an informal objection raised by a party-in-interest.  The
Debtors did not disclose the identity of the objecting party.

Accordingly, the Court only grants the Debtors' request with respect to
the transfer of equity interests in Federal-Mogul
Holding Deutschland GmbH to F-M Dutch HoldCo.

            Inter-company Equity Interest Transfers

The Debtors secured an approval from the U.S. Bankruptcy Court for the
District of Delaware for the inter-company transfers of equity interests
in Federal-Mogul Holding Deutschland GmbH and certain Mexican subsidiaries
to Cooperatief Federal-Mogul Dutch Investments U.A., a non-Debtor
subsidiary.

The equity interests are currently held either directly by
Debtors Federal-Mogul Corporation, FM International LLC, and
Federal-Mogul Ignition Company, or indirectly through their non-
debtor affiliates.

The proposed Transfers are part of an international
restructuring that the Debtors intend to consummate before year-
end to maximize the tax-efficiency of their corporate structure
going forward.

The restructuring will ultimately result in many of the Debtors'
foreign subsidiaries being owned through the F-M Dutch HoldCo
structure.  F-M Dutch HoldCo, which was formed in connection
with the Court-authorized French and Italian Recap, is a Dutch
holding company with no current material liabilities and whose
only significant assets are its indirect equity holdings in
Federal-Mogul Holding Italy S.r.L.

The Transfers will result in an estimated annual tax savings
aggregating US$28,000,000, and will preserve a larger portion of
post-tax funds that are repatriated through the F-M Dutch HoldCo
structure.

                      German Transfers

F-M Germany is currently a wholly owned subsidiary of Federal-
Mogul Corp., and is the parent of a number or subsidiaries that
constitute about 60% of the Debtors' operations in Europe.

The Debtors proposed to transfer ownership of F-M Germany from
Federal-Mogul Corp., resulting in F-M Dutch HoldCo directly
holding a 90% equity interest in F-M Germany with the remaining
10% held indirectly through a newly formed German partnership.

The German Transfer allows the Debtors to effectuate their
international restructuring and move funds up the corporate
ownership chain to their United States parent companies.

The German Transfer must be completed by the end of 2006 to
allow the Debtors to take advantage of a number of beneficial
tax attributes that are anticipated to result in an aggregate
tax savings of approximately US$26,000,000.

                      Mexican Transfers

The Debtors' Mexican operations consist of 10 directly and
indirectly held subsidiaries.  None of the Mexican subsidiaries
are Debtors in the Chapter 11 proceedings.

Servicio de Componente Automotrices, S.A. de C.V., is the
principal holding company for the Mexican businesses.  The
current shareholders of SEDECA are:

   (1) Debtor F-M International with a current interest of
       25.52% interest in SEDECA;

   (2) Debtor F-M Ignition with a 70.74% interest in SEDECA; and

   (3) non-Debtor Federal-Mogul Canada Ltd., which is wholly
       owned by Federal-Mogul Corp., with a 3.74% interest in
       SEDECA.

SEDECA directly or indirectly holds 100% of all of the SEDECA
Subsidiaries except:

   * Servicios Administrativos Industriales, S.A. de C.V.;

   * Camshafts Castings de Mexico S. de R.L.; and

   * Federal-Mogul S.A. de C.V.

The Debtors previously proposed to transfer the equity interests of SEDECA
and SAISA to F-M Dutch HoldCo, which will permit the Debtors to avail
themselves of certain tax advantages under Dutch and Mexican law.

As part of the Mexican Transfer, the shareholders of the Mexican
Subsidiaries will indirectly contribute their ownership interests in the
Mexican Subsidiaries to F-M Dutch HoldCo in
exchange for equity interests in F-M Dutch HoldCo.

The Mexican Transfer is part of the Debtors' overall tax
planning efforts to reduce the tax liability related to their
Mexican operations.  The Debtors estimated that the Mexican
Transfers will result in an ownership structure that will confer
a net US$2,000,000 annual savings in taxes.

Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's largest
automotive parts companies 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: US December Sales Down 13%, Full 2006 Sales Down 8%
---------------------------------------------------------------
Ford Motor Company's dealers delivered 233,621 new vehicles to U.S.
customers in December, down 13% compared with a year ago. Lower F-Series
sales (down 21% compared with last December's near-record month) and lower
sales for the discontinued Taurus and Freestar minivan more than accounted
for the decline.

Full year sales totaled 2.9 million, down 8% compared with full year 2005.
Car sales were 5% higher than a year ago.  It was the second year in a
row of higher car sales and the first back-to-back increase since
1993-1994.  Ford's new mid-size sedans were the major factors behind the
increase as combined sales for the Ford Fusion, Mercury Milan, and Lincoln
MKZ totaled 211,469. Awareness and demand for these award-winning products
continues to grow.  In December, Fusion sales were up 67%, Milan sales
were up 36%, and MKZ sales were up 78%.  MKZ sales of 3,795 were the
highest for any month.

Full year truck sales were down 14% as higher gasoline prices and
long-term demographic trends drove SUV sales lower and a soft housing
industry weighed on full-size truck sales.  Ford believes these factors
will continue to weigh on these segments in 2007. New products should help
mitigate these factors.  The company's new full-size SUVs, Ford Expedition
and Lincoln Navigator, closed 2006 by posting higher sales each month in
the fourth quarter.  The company will soon introduce a new Super Duty
F-Series pickup truck.  This model accounts for about 40% of total
F-Series sales.

Conversely, passenger car sales and crossover utility vehicles should
continue to benefit from demographic trends (notably the aging of the baby
boomer generation) and higher gasoline prices. In December, the company
expanded its CUV line with the introduction of the Ford Edge and Lincoln
MKX.  In addition, the company will introduce a redesigned Ford Escape and
Mercury Mariner early this year.  Escape has been the best-selling CUV
since it was introduced in late 2000.

Land Rover was the company's only brand to post higher sales in 2006.
Land Rover's full year sales totaled 47,774 -- a new calendar year sales
record.  Although Lincoln's overall sales were down 2%, sales to
individual retail customers rose 4%.

                   U.S. Inventories Lower

At the end of December, Ford, Lincoln and Mercury inventories were
estimated at 590,000 units.  This level is 143,000 units lower than a year
ago.  The company estimates less than 10% of the total inventory is 2006
models.

                    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.


GENERAL MOTORS: US December Sales Down 9.6%, 2006 Sales Down 9%
---------------------------------------------------------------
General Motors Corp. dealers in the United States delivered 341,327
vehicles in December, an increase of 10% (43,771) compared with November,
but a reduction of 9.6% on a sales-day adjusted basis compared with a
strong year-ago December.  GM's total annual U.S. sales of 4.1 million
vehicles in 2006 were down 9% compared with last year's 4.5 million, due
to planned reductions in daily rental and other marginally profitable
sales.

"December was a very solid sales month for GM, exceeding our expectations,
especially in full-size trucks and SUVs," said Mark LaNeve, vice
president, GM North American Sales, Service and Marketing.

"In 2006, despite challenging conditions, we stuck to the game plan and
achieved our stated goals in support of Rick Wagoner's turnaround plan for
North America.

"Specifically, we exceeded 3 million retail sales and stabilized market
share, improved residual values and transaction prices, lowered daily
rental sales, and we accomplished all of this while being the only major
manufacturer to substantially lower incentive spending (down US$700).

"For 2007, we'll continue our plans to stabilize retail volume, improve
our mix, reduce sales to the daily rental market, exercise strategic and
tactical incentive programs and strengthen average transaction prices.

"We will continue to provide customers with the best coverage in the
industry, including our 5 year/100,000 mile limited powertrain warranty
with roadside assistance and courtesy transportation.

"As we move to the next phase of the turnaround plan, we plan to win by
offering our customers the best products with industry-leading value and
dealer service," Mr. LaNeve added.

"So we are optimistic as we introduce exceptional new vehicles -- such as
the GMC Acadia and Sierra, Saturn Aura and Outlook, Buick Enclave,
Chevrolet Silverado and the all-new Cadillac CTS."

December sales were up 10% compared with November, driven by a surge in
full-size trucks that offer outstanding fuel economy and value.
Highlights include:

   * Best sales month of the year for Cadillac (22,715 vehicles)
     with a 65% increase in truck sales compared with December
     2005,

   * Saturn total December sales up 42%

   * Saab total and retail sales were up 33%

   * Saturn and Saab saw car sales increases, and total GM car
     sales in December were up 2% on a sales-day adjusted basis.

For calendar year 2006, GM noted several significant achievements that
point to strong consumer acceptance of its new products:

   * Including the GMC Sierra, GMC Canyon and Chevrolet
     Colorado, GM sold more than a million pickup trucks in
     2006.  GM moved the much-anticipated launch of the all-new
     full size 2007 Chevrolet Silverado and GMC Sierra pickup
     trucks ahead 13 weeks.

   * Sales of the Chevrolet Equinox and HHR, Pontiac Torrent and
     Saturn VUE drove GM's small utility and crossover sales up
     27% in 2006, with 346,952 total deliveries.

   * HUMMER had a record sales year with 71,524 deliveries, up
     26%.  H3 sales were up 63%, to 54,052 deliveries, compared
     with 2005.

   * Saturn sales for 2006 totaled a record 226,375 vehicles, a
     6% increase on a sales-day adjusted basis compared with
     2005.  The Aura, Sky and VUE led this improvement.  The new
     Saturn Outlook crossover is being launched now.

   * Pontiac G6 had a 26% sales increase in 2006, compared with
     2005.  Chevrolet Impala sales were up 18%, with 289,868
     vehicles sold.  Chevrolet HHR sold 101,298 vehicles and
     Buick Lucerne sold 96,515 vehicles in 2006, each building
     on their launch momentum.

As GM executes the North America turnaround plan, much media attention has
focused on the sales races between GM and its competitors.

"We are obviously competing in a fiercely contested global marketplace,"
Mr. LaNeve said.

"We're optimistic that our newest generation of products will continue to
drive revenue growth and brand image."

                  Certified Used Vehicles

December 2006 sales for all certified GM brands, including GM Certified
Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified
Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER
Certified Pre-Owned Vehicles, were 41,800 units, down nearly 6% from last
December.

GM Certified Used Vehicles, the industry's top selling certified brand,
posted December sales of 35,774 units, down 8%.  Cadillac Certified
Pre-Owned Vehicles posted strong December sales of 3,948 units, up 18%.
Saturn Certified Pre-Owned Vehicles sold 1,341 units in December, down
nearly 18%.  Saab Certified Pre-Owned Vehicles sold 607 units, up 9%, and
HUMMER Certified Pre-Owned Vehicles sold 130 units.

Total 2006 sales for all certified GM brands were 520,189 units, down 2%
from last year's total.  Annual sales for GM Certified Used Vehicles, the
industry's top-selling manufacturer-certified brand, were 449,461 units,
down 1% from its category record sales results in 2005, while Chevrolet
again finished the year as the industry's top-selling single-make
certified used vehicle brand.

Cadillac Certified Pre-Owned finished 2006 with sales of 42,143 units, up
9% over the previous year.  Saab Certified Pre-Owned Vehicles sold 8,330
units in 2006, down nearly 4%, while Saturn Certified Pre-Owned Vehicles
sold 19,244 units, down 35%.  HUMMER Certified Pre-Owned Vehicles sold
1,011 units in its first year of operation.

"Cadillac Certified Pre-Owned Vehicles posted another strong month, with
December sales of 3,948 units, up 18% from last December, and total annual
2006 sales up 9% from 2005," Mr. LaNeve said.

"GM Certified Used Vehicles finished 2006 as the industry's top-selling
certified brand for the fifth consecutive year, while Chevrolet ranked as
the top-selling single-line make certified used vehicle brand.  Certified
GM brands, including GM Certified Used Vehicles, Cadillac, Saturn, Saab
and HUMMER Pre-Owned Vehicles, again led all manufacturers with total 2006
sales of 520,189 units."

               GM North America Reports December and
                  2006 Fourth-Quarter Production

In December, GM North America produced 319,000 vehicles (125,000 cars and
194,000 trucks).  This is down 42,000 vehicles or 12% compared to December
2005 when the region produced 361,000 vehicles (139,000 cars and 222,000
trucks).  (Production totals include joint venture production of 16,000
vehicles in December 2006 and 24,000 vehicles in December 2005.)

Also, GM North America built 1.107 million vehicles (447,000 cars and
660,000 trucks) in the fourth quarter of 2006.  This is down 174,000
vehicles or 14% compared to the fourth quarter of 2005 when the region
produced 1.281 million vehicles (483,000 cars and 798,000 trucks).

Additionally, the region's 2007 first-quarter production forecast is
revised at 1.120 million vehicles (455,000 cars and 665,000 trucks), down
20,000 vehicles from last month's guidance.  The majority of the
production decrease is attributed to GM's ongoing efforts to reduce
low-margin daily rental fleet sales.  The remainder of the cuts is
attributed to shifting production to the company's new full-size pickups
and the ongoing management of inventories.

                  2006 Revised Fourth Quarter and
              2007 First Quarter Production forecasts

GM Europe

The region's 2006 fourth-quarter production forecast is revised at 443,000
vehicles.  This is down 2,000 vehicles compared with last month's
guidance.  In the fourth quarter of 2005 the region built 443,000
vehicles.  The region's 2007 first-quarter production forecast remains
unchanged at 508,000 vehicles.  In the first quarter of 2006 the region
built 494,000 vehicles.

GM Asia Pacific

GM Asia Pacific's 2006 fourth-quarter production forecast is revised at
507,000 vehicles, up 3,000 vehicles from last month's guidance.  In the
fourth quarter of 2005 the region built 420,000 vehicles.  The region's
2007 first-quarter production forecast is revised at 531,000 vehicles,
down 8,000 vehicles from last month's guidance.  In the first quarter of
2006 the region built 472,000 vehicles.

GM Latin America, Africa, and the Middle East

The region's 2006 fourth-quarter production estimate is revised at 216,000
vehicles, up 1,000 vehicles from last month's guidance.  In the fourth
quarter of 2005 the region built 188,000 vehicles. The region's 2007
first-quarter production forecast remains unchanged at 214,000 vehicles.
In the first quarter of 2006, the region built 194,000 vehicles.

                  About General Motors Corp.

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

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with negative implications, where
they were placed March 29, 2006.  S&P said the outlook is
negative.

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


NORTEL NETWORKS: Deploys CDMA to Telefonica O2 Czech Republic
-------------------------------------------------------------
Nortel Networks Corp. and Telefonica O2 Czech Republic, the largest
provider of wireless voice and data services in the Czech Republic, have
teamed to show how operators can use broadband wireless spectrum more
efficiently.

The two companies successfully demonstrated Europe's first CDMA2000
1xEV-DO Rev A call in the Telefonica O2 Czech Republic network at 450 MHz
radio spectrum.  This broadband capability is expected to enable
Telefonica O2 Czech Republic to deliver more IP wireless services such as
mobile music and interactive 3D gaming, VoIP, and high-speed file
transfers; and support real-time interactive access to services such as
push-to-talk, mobile television and video telephony.

"We are glad that the 1xEV-DO Rev A deployment pilot has been successfully
accomplished," said Pavel Kolar, Chief Network Infrastructure Officer,
Telefonica O2 Czech Republic.  "We have experienced significant
improvement on the throughput and latency of Rev A data transfer.  It
clearly demonstrates that the latest CDMA2000 technology evolution, in
combination with excellent radio propagation in the 450 MHz band, delivers
improved customer benefits."

"Nortel's 11-year experience with CDMA is helping us develop leading-edge
solutions which benefit wireless operators by increasing revenue potential
and enhancing the subscriber experience," said Wim Te Niet, president
Central Region EMEA, NorTel: "With Telefonica O2 Czech Republic we're
showing how Nortel's unique blend of broadband access products, IP core
experience, network services and ability to deliver simple network
upgrades helps to get the best from the wireless spectrum."

The call was enabled by a simple upgrade from 1xEV-DO Rev 0 to Rev A
technology. Using the same 1.25 MHz channel, CDMA2000 1xEV-DO Rev A
provides both forward and reverse links with more capacity and higher data
rates, with up to 3.1 Mbps in the forward link and 1.8 Mbps in the reverse
link.  These faster data rates combined with Quality of Service and low
latency, enables the provision of 3.5G services such as wireless gaming,
streaming audio and video, and high performance push-to-talk capabilities.
In addition to the Nortel upgrade, the demonstration was achieved using
an ADU-500A CDMA EV-DO Rev A wireless modem from AnyDATA.

Nortel CDMA 450 equipment creates networking efficiencies that help drive
reduced capital and operating costs.  The 1xEV-DO Rev A implementation
only required one hardware addition -- the Rev A channel card -- on the
Telefonica O2 Czech Republic network to enable the new service and
maximize the operator's existing investment in 450 MHz spectrum and core
network equipment.

Nortel has provided EV-DO equipment to 21 of the 37 commercial networks
with leading operators worldwide including Verizon Wireless and Sprint in
the United States, Bell Mobility and Telus in Canada.  Nortel was the
first to commercially offer EV-DO in South America with Embratel, Brazil;
in Central America with Telefonica Guatemala; and is now the first to
deliver EV-DO at 450 MHz in Eastern Europe with Telefonica O2 Czech
Republic.

               About Telefonica O2 Czech Republic

Telefonica O2 Czech Republic a.s. offers the most comprehensive portfolio
of voice and data services in this country.  Special attention is paid to
exploiting growth potential, in particular the company's data and Internet
business. Telefonica O2 Czech Republic operates the largest fixed and
mobile network including a unique 3rd generation network, CDMA (for data)
and UMTS, enabling the transport of voice, data and video.

                        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.  In Europe, Nortel
operates in the U.K., France, Germany, Spain, Italy and Turkey.

                        *    *    *

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  All trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.

Additionally, Moody's Investors Service affirmed the B3
corporate family rating of Nortel; assigned a B3 rating to the
proposed US$2billion senior note issue; downgraded the US$200
million 6.875% Senior Notes due 2023 and revised the outlook to
stable from negative.

Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
US$2 billion notes.  S&P said the outlook is stable.


SAFETY-KLEEN: Discloses Strategic Organizational Realignment
------------------------------------------------------------
Safety-Kleen Systems, Inc., disclosed a strategic realignment of the
company's organization in order to streamline its operations, enhance
profit and loss accountability at the field level and provide a
specialized approach to meeting core customer needs on a geographic basis.

"Safety-Kleen currently offers customers the nation's broadest range of
industrial cleaner, used oil collection and re-refining and environmental
services," said company CEO and President Frederick J. Florjancic.  "This
realignment will take maximum advantage of our national network and
strengthen the manner in which we deliver services to our core customer
base."

Mr. Florjancic said the realignment moves individual decision-making
authority and financial accountability closer to the company's front
lines, vesting the responsibility for delivering best-in-class services
and products, and providing increased value to stakeholders, with those
closest to actual Safety-Kleen customers.

This new structure will better meet Safety-Kleen's need for increased
efficiency, profitability and accountability as the company continues to
grow by increasing its core business and acquiring other similar
companies.

Under the realignment, Safety-Kleen will be structured along geographic
lines, with the East Group, based in Atlanta, GA, headed by Executive Vice
President, Dave Sprinkle, and the West Group, based in Plano, TX, headed
by Executive Vice President Steve Grimshaw.

Each group will oversee the branches, operations facilities, and oil
operations within its geographic area, with the exception of the company's
oil re-refineries in East Chicago, Ind., and Breslau, Ont., which will
continue to report to Sprinkle, and the National Accounts Group and
International (including Canada), which will continue to report to
Grimshaw.

Each of the two groups will also have its own sales leader, and will be
further divided into four geographic divisions, each led by a locally
based Senior Vice President.  The company's Environment, Health and Safety
function will report to the corporate Legal and Compliance Department but
will work closely with the division leaders.

On the corporate side, Disposal Purchasing and Procurement will report to
Finance; Compliance, Internal Audit and Contract Administration, will be
centralized under the Legal and Compliance Department; and, Corporate
Support Services and Marketing will report directly to Florjancic.

"This will allow us to be very efficient while strengthening our value
proposition with core customers," Mr. Florjancic said.  "The bottom line
will be better service, enhanced growth and increased profitability."

Safety-Kleen, a privately held company, is North America's
premier provider of industrial oil collection and re-refining,
parts cleaner services, and industrial waste management.
Safety-Kleen offers its customers a complete set of responsible
re-refining, cleaning, and environmental solutions through its
fully integrated branch network designed to collect, process,
recycle, re-refine, and dispose of a wide range of both
hazardous and non-hazardous waste streams.  The company has
approximately 4,500 employees serving hundreds of thousands of
customers in the United States, Canada and Puerto Rico.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 28, 2006,
in connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the Services - Contractor sector, the rating
agency revised its Corporate Family Rating for Safety-Kleen
HoldCo, Inc. to B2 from B1.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans facilities:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$100 million
   Senior Secured
   Revolver due 2012      B1       Ba3    LGD 2       27%

   US$230 million
   Senior Secured
   Term Loan B
   due 2013               B1       Ba3    LGD 2       27%

   US$65 million
   Senior Secured
   Pre-Funded Letter
   Of Credit due 2013     B1       Ba3    LGD 2       27%


WILLIAMS SCOTSMAN: Expands Fleet Operations in Mexico
-----------------------------------------------------
Williams Scotsman International, Inc., acquired approximately 80 mobile
office and section modular units from the TIP de Mexico S. de R.L. de C.V.
division of GE Equipment Services.  The deal, which closed Dec. 20, is
intended to support fleet deployment strategy in the growing Mexican
market, including oil and gas exploration, production, and distribution
sectors.

In early 2006, Williams Scotsman acquired American Homes International,
adding nearly 300 mobile offices and storage units.  The latest
acquisition puts Williams Scotsman’s Mexico fleet inventory at
approximately 800 units.

"We are enthusiastic about the recent addition of units to our Mexico
fleet.  In such a fragmented market, this deal underscores our dedication
to efficiently grow our fleet to best serve the demand for temporary space
as well as the permanent needs of the Mexican commercial construction
market," commented Mark Delaney, Regional Vice President for Williams
Scotsman Mexico.

Williams Scotsman of Mexico completed its largest customized modular
project at the Burgos Gas Fields in Northern Mexico for Grupo Industrial
Faja de Oro, S.A., the general contractor hired by PEMEX. Within sixty
days of signing the contract, Williams Scotsman delivered forty-one mobile
units to PEMEX camps, outfitted with dormitories, kitchens, game rooms,
and exercise facilities.  The project requires the mobile units to be
relocated from drill site to drill site over a lease period of two years.
The relocatable campsite trailers enable Faja de Oro to successfully ramp
up operations to provide PEMEX with critical services.  Williams
Scotsman's order-to-occupancy and turn-key building solutions allowed the
project to be completed on time and within budget.  More recently,
Williams Scotsman delivered and installed a customized 10 section modular
building, totaling 5,280 square foot for the Sonora Government and
Banjercito to assist automobile travelers with permits as they enter
Mexico.  The job was completed on time in 69 days.

Headquartered in Baltimore, Maryland, Williams Scotsman International,
Inc., is a provider of modular space solutions in North America and
Europe.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 4, 2006, Moody's
Investors Service placed all ratings of Williams Scotsman International,
Inc. on review for possible upgrade.

These ratings were placed on review for possible upgrade:

   -- Long-Term Corporate Family Rating at B2
   -- Senior Secured Credit Facility at B2
   -- Senior Unsecured Notes at B3

The review was prompted by the company's continued strong performance,
supported by substantial increases in average lease rates with stable
utilization.




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


XEROX CORP: Names John McDermott Chief Information Officer
----------------------------------------------------------
John McDermott has been named chief information officer of Xerox Corp.
Mr. McDermott was previously vice president, corporate strategy and
alliances for Xerox.

As CIO, Mr. McDermott is responsible for Xerox's business information
systems including managing the company's global information technology
infrastructure and telecommunications.

Mr. McDermott joined Xerox in August 2002 as head of strategy, responsible
for leading strategic management processes and development activities as
well as the company's relationship with alliance partners and with Fuji
Xerox Co. Ltd.

Prior to joining Xerox, Mr. McDermott led the technology practice for the
consulting firm of Marakon Associates, where, in addition to his advisory
roles with large information technology clients, he served as Marakon's
chief information officer.

Mr. McDermott's appointment is effective immediately.  He reports to
Ursula Burns, president of Xerox Business Group Operations.  Mr. McDermott
replaces Patricia Cusick, who retired from Xerox last year.

A resident of Ridgefield, Conn., Mr. McDermott holds a bachelor's degree
from Hampshire College and a master's degree in business administration
from Yale University.

Headquartered in Stamford, Connecticut, Xerox Corp. --
http://www.xerox.com/-- develops, manufactures, markets,
services and finances a range of document equipment, software,
solutions and services.  Xerox operates in over 160 countries
worldwide and distributes products in the Western Hemisphere
through divisions, wholly owned subsidiaries and third-party
distributors.  The company has operations in Japan, Italy and
Nicaragua.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 1, 2006, Moody's
raised these ratings on Xerox Corp:

   -- Senior unsecured to Baa3 from Ba1;

   -- Senior unsecured shelf registration to (P) Baa3 from
      (P) Ba1;

   -- Trust preferred to Ba1 from Ba2;

   -- Subordinated shelf registration to (P) Ba1 from (P) Ba2;
      and

   -- Preferred shelf registration to (P) Ba1 from (P) Ba2.

   Xerox Credit Corp.

   -- Senior unsecured to Baa3 from Ba1 (support agreement from
      Xerox Corporation).

Concurrently, Moody's has withdrawn these ratings for Xerox, which are
applicable to non investment grade issuers:

   -- Corporate Family Rating,
   -- All LGD assessments, and
   -- SGL rating




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


COMVERSE TECHNOLOGY: S&P Retains Negative Watch on BB- Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it is leaving its
'BB-' corporate credit and senior unsecured debt ratings on New
York, N.Y.-based Comverse Technology Inc. on CreditWatch with
negative implications, where they were placed on March 15, 2006.

"The company recently announced that it has received a notice of
default and demand letter from the trustee of its convertible
notes citing the company's failure to file with the trustee its
form 10-K annual financial statement for the year ended
Jan. 31, 2006, or any subsequent form 10-Q quarterly financial
statements," Standard & Poor's credit analyst Ben Bubeck, said.

Comverse does not believe that a default has occurred under the
indenture, as the company has not yet filed these reports with the SEC.
It should be noted that the company reported cash balances of nearly
US$1.9 billion as of Oct. 31, 2006, compared with approximately US$418
million of outstanding convertible notes.  Therefore, the company is
expected to be able to meet a
potentially accelerated maturity with current balance sheet
liquidity, if necessary.

The ratings were originally placed on CreditWatch following the
company's announcement that its board of directors had created a
special committee to review matters relating to the company's
stock option grants, which has resulted in the ongoing delay of
the filing of financial statements, potential restatement of prior
periods, and departure of senior management.

S&P will continue to monitor developments with Comverse, including
financial restatements, changes to the strategy and corporate governance
practice that may stem from the management departures, potential
litigation, and debt maturity acceleration to determine what, if any,
affect they have on debt ratings.

In Latin America, Comverse has operations in Argentina, Brazil, Mexico and
Peru.


DOE RUN: Expects Nine Air Monitors to Meet National Standard
------------------------------------------------------------
The Doe Run Company reported that nine of the 10 ambient air monitors it
runs to track emissions at its Herculaneum, Mo., smelter are expected to
meet the national standard for lead in the fourth quarter of 2006.  One
station, the City Hall monitor, is expected to fall just outside the
Environmental Protection Agency (EPA)-established National Ambient Air
Quality Standard or NAAQS.

According to data collected by Doe Run, fourth-quarter results from air
monitors in Herculaneum are expected to range from 0.2 to 1.7 micrograms
of lead per cubic meter of air.  The City Hall monitor is expected to
register 1.7 micrograms per cubic meter for the fourth quarter.  The
remaining nine monitors are expected to record numbers well below the 1.5
micrograms standard with Broad Street expected to end the quarter at 1.2
micrograms per cubic meter, the lowest reading at Broad Street in 3 years.

The City Hall monitor is located approximately 800 feet from the smelter
and some 550 feet north of the Broad Street monitor.  Over the last three
years, the City Hall Monitor has ranged from 0.7 to 1.5 micrograms per
cubic meter placing it at or below the standard. Although not registered
as an official EPA monitoring site, Doe Run installed the monitor near
City Hall in the 1st quarter of 2004 to better track plant emissions.

Since the first State Implementation Plan was put in place in 1980 the
smelter has reduced emissions by more than 92%, with marked decreases in
emissions after each set of SIP controls came on line.

"Our ultimate goal and commitment remains the same -– to consistently be
in attainment at all ten of our monitoring stations," said Herculaneum
Smelter General Manager Gary Hughes.  "We are confident that with full
implementation of the new SIP control strategies agreed to between Doe Run
and the Missouri Department of Natural Resources, we will continue to
progress toward that goal."

Based in St. Louis, Mo., The Doe Run Company --
http://www.doerun.com/-- is a privately held natural resources
company dedicated to environmentally responsible mineral
production, metals fabrication, recycling and reclamation.  The
company and its subsidiaries deliver products and services
needed to provide power, protection and convenience through
premium products and associated metals including lead, zinc,
copper, gold and silver.  As the operator of one of the world's
only multi-metal facilities and the Americas' largest integrated
lead producer, Doe Run employs more than 5,000 people, with U.S.
operations in Missouri, Washington and Arizona, and Peruvian
operations in Cobriza and La Oroya.

Doe Run Peru S.R.L., an indirect Peruvian subsidiary, operates a
smelter in La Oroya, Peru, one of the largest polymetallic
processing facilities in the world, producing an extensive
product mix of non-ferrous and precious metals, including
silver, copper, zinc, lead and gold.  Doe Run Peru also has a
copper mining and milling operation in Cobriza, Peru in the
region of Huancavelica, which is approximately 200 miles
southeast of La Oroya in Peru.

              Doe Run Peru Going Concern Doubt

As reported in the Troubled Company reporter-Latin America on
Aug. 10, 2006, Doe Run Peru has significant capital requirements
under environmental commitments and guarantees and substantial
contingencies related to taxes and has significant debt service
obligations under the revolving credit facility, each of which,
if not satisfied, could result in a default under Doe Run Peru's
credit agreement and collectively raise substantial doubt about
Doe Run Peru's ability to continue as a going concern.

Doe Run Peru continues to have substantial cash requirements in
the future, including the maturity of the revolving credit
facility on Sept. 22, 2006, and significant capital requirements
under environmental commitments.  In addition, there are
substantial contingencies related to taxes.

The Doe Run Peru Revolving Credit Facility expires on
Sept. 22, 2006, and will require negotiations to extend its
terms.  There can be no assurance that Doe Run Peru will be
successful in extending the existing credit agreement or
negotiating a new agreement, or if it is successful, that the
extended or new credit agreement would be at terms that are
favorable to Doe Run Peru.

Any default under the requirements of the Environmental
Remediation and Management Program could result in a default
under the Doe Run Peru Revolving Credit Facility.  A default
under the requirements of the Doe Run Peru Revolving Credit
Facility results in defaults under the Doe Run Revolving Credit
Facility and the indenture governing the bonds.


PHELPS DODGE: New Cerro Verde Starts Copper Concentrate Output
--------------------------------------------------------------
Phelps Dodge Corp. reported that the expansion at the Cerro Verde Mine
near Arequipa, Peru, has begun producing copper concentrate from the
mine's primary sulfide ore body.

The first product shipment, approximately 9,500 dry metric tons of copper
concentrate manufactured during pre-operational trials, was disclosed in
regulatory filings with CONASEV, the government agency that oversees
publicly traded companies in Peru.  The concentrate was sold for
processing to Sumitomo Metal Mining Co. Ltd., one of the major
shareholders of the Cerro Verde Mine.

The new concentrator associated with the expansion is operating but is not
yet at full capacity.  The concentrator continues to work through normal
adjustments associated with the start-up of a major operation.  Full
production will be achieved during the first half of 2007.

Once it reaches full production, the expansion will allow the mine to
triple annual production from approximately 100,000 tons of copper to
300,000 tons.  In addition, the expansion is expected to produce more than
2,000 tons of molybdenum per year. Cerro Verde estimates that the
expansion will extend the mine's life by approximately 26 years.  Through
the expansion, approximately 1 billion tons of sulfide ore reserves
averaging
0.51% copper will be processed through the new concentrator.

                    About Cerro Verde Mine

Phelps Dodge owns 53.6% of the Cerro Verde Mine.  Sumitomo Metal
Mining and Sumitomo Corp. together own 21%.  Compania de Minas
Buenaventura owns 18.5% of the mine, and common shareholders own 6.9%.

                      About Phelps Dodge

Phelps Dodge Corp. (NYSE: PD) http://www.phelpsdodge.com/-- is one of the
world's leading producers of copper and molybdenum and is the largest
producer of molybdenum-based chemicals and continuous-cast copper rod.
The company employs 15,000 people worldwide.  Phelps Dodge has mining
operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others.

                        *    *    *

In September 2006, Moody's Investors Service confirmed Phelps Dodge's
Preferred Stock 2 Shelf at (P)Ba1.


SAN IGNACIO: Completes Debt Repayment Process
---------------------------------------------
San Ignacio de Morococha aka Simsa said in a filing with the Lima stock
exchange that it has completed a debt repayment process agreed by its
shareholders in August 2002.

Simsa said in a statement that at a meeting on Dec. 26, 2006, the special
committee, which was set up to supervise the debt repayment, agreed that
Simsa had prepaid all the debt included in bankruptcy protection
proceedings.

Business News Americas relates that Simsa entered into bankruptcy
protection proceedings at the end of 2001.  On Aug. 19, 2002, its
shareholders then authorized a global funding accord that restructured
US$18 million of bad debt.

According to BNamericas, the refinancing plan involved a US$6-million
strategic alliance with Glencore.

Simsa's net profit increased almost 30-fold to PEN55.5 million in the
first three quarters of 2006, from PEN1.9 million in same-period in 2005,
due to increasing zinc prices, BNamericas states.

Headquartered in Lima, Peru, Compania Minera San Ignacio de Morococha SA
-- http://www.simsa.com.pe/-- is a Peru-based company, engaged in the
exploration and mining for zinc and lead. The company's mine, plant and
administrative offices are located in the Unidad Minera San Vicente, in
the Chanchamayo province of Peru.  The main client of Compania Minera San
Ignacio de Morococha is AYS SA, which generates 69% of the company's
overall product sales.




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


BRIGHTPOINT INC: Partner Launching Services in Puerto Rico
----------------------------------------------------------
Prime Time Group, Inc., Brightpoint Inc.'s delivery partner, is prepared
for the launch of its wireless products and services in Puerto Rico.

"We spent Christmas preparing the stores and getting the infrastructure in
place for a successful roll out through the 7-11 assets in January 2007",
says Prime Time President Troy Metz.  "As we are committed to our
shareholders, we planned on rolling out in late January and I am pleased
to report that we are on track with this initiative and within our budget
to do so."

Says CEO Dallas Robinson, "We are prepared to launch beginning on the 23rd
of January and concluding on the 10th of February" he adds "we are pleased
that this announcement could come so soon and is in part due to the
tremendous support of Brightpoint, our delivery partner and master agent
in the United States."

"We should see sales results by the end of this quarter and I expect that
they will surprise everyone" says Armando De Valle President of PR7 Inc.
and the 7-Eleven assets in Puerto Rico.  "We are very excited that the
Virgin brand and the accessory lines of Prime Time Group will be entering
our market and the Caribbean through our chain of 7-Elevens.  I believe
that our market will respond to this with tremendous enthusiasm."

Prime Time Group Inc. holds an interest in the 7-Eleven assets of PR-7
Inc. located in Puerto Rico. It recently completed an agreement to
distribute Sprint, Boost, Virgin Mobile and Sprint Disney through its
master dealer Brightpoint in the United States and Prime Time's initial
outlets in Arizona.


CHATTEM INC: Closes US$410 Million Purchase of Five J&J Brands
--------------------------------------------------------------
Chattem Inc. closed its previously announced agreement to acquire the U.S.
rights to five leading consumer and over-the-counter brands from Johnson &
Johnson for US$410 million in cash.

With the acquisition, Chattem's diverse portfolio of high quality brands
has now been expanded to include five additional brands:

    * ACT(R), an anti-cavity mouthwash/mouth rinse;
    * UNISOM(R), an OTC sleep aid;
    * CORTIZONE, a hydrocortisone anti-itch product;
    * KAOPECTATE(R), an anti-diarrhea product; and
    * BALMEX(R), a diaper rash product.

The acquired brands were divested in connection with the recent
acquisition by Johnson & Johnson of Pfizer Inc.'s Consumer Healthcare
business and certain regulatory requirements in connection with that
acquisition.

"We are very excited to add these leading brands to the Company's existing
portfolio of quality products," said Zan Guerry, Chairman and Chief
Executive Officer of Chattem.  "With the tremendous cooperation of Johnson
& Johnson and Pfizer Inc., we have worked very hard over the past several
months to help ensure a smooth transition of ownership and remain very
excited about the growth potential of these brands."

The acquisition was funded in part with the proceeds from a new US$300
million term loan provided by Bank of America pursuant to a Fifth
Amendment to and restatement of its Credit Agreement, with the remaining
funds principally being provided through the use of a portion of the
proceeds derived from Chattem's previously announced sale of 2%
Convertible Senior Notes due 2013.

Based in Chattanooga, Tennessee, Chattem Inc. (NASDAQ: CHTT)
-- http://www.chattem.com/-- manufactures and markets a variety
of branded consumer products, including over-the-counter
healthcare products and toiletries and skin care products in the United
States, including Puerto Rico.  The company's products include Icy Hot(R),
Gold Bond(R), Selsun Blue(R), Garlique(R), Pamprin(R) and BullFrog(R).

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 5, 2006
Moody's Investors Service confirmed the Ba3 corporate family
rating of Chattem Inc. and lowered the senior subordinated
rating to B2 from B1.  Moody's said the outlook is stable.


FIRST BANCORP: Declares Payment of Preferred Dividends
------------------------------------------------------
First BanCorp's board of directors has declared the next payment of
dividends on First BanCorp's Series A through E Preferred shares.

The estimated corresponding amounts, record dates and payment dates for
the Series A through E Preferred Shares are:

Series       $Per/share        Record Date      Payment Date
   A          0.1484375        Jan. 29, 2007     Jan. 31, 2007
   B          0.17395833       Jan. 15, 2007     Jan. 31, 2007
   C          0.1541666        Jan. 15, 2007     Jan. 31, 2007
   D          0.15104166       Jan. 15, 2007     Jan. 31, 2007
   E          0.14583333       Jan. 15, 2007     Jan. 31, 2007

Regulatory approvals for payments of dividends were obtained as a part of
First BanCorp's previously announced agreement with the Board of Governors
of the Federal Reserve System, the Federal Deposit Insurance Corporation
and the Office of the Commissioner of Financial Institutions of the
Commonwealth of Puerto Rico.

First BanCorp (NYSE: FBP) -- http://www.firstbankpr.com/-- is
the parent corporation of FirstBank Puerto Rico, a state
chartered commercial bank with operations in Puerto Rico, the
Virgin Islands and Florida; of FirstBank Insurance Agency; and
of Ponce General Corporation.  First BanCorp, FirstBank Puerto
Rico and FirstBank Florida, formerly UniBank, the thrift
subsidiary of Ponce General, all operate within U.S. banking
laws and regulations.

                        *    *    *

As reported in the Troubled Company Reporter on March 22, 2006,
Fitch Ratings affirmed the ratings and Outlook for First Bancorp
and FirstBank Puerto Rico: long-term Issuer Default Rating
'BB'/short-term 'B'.  Fitch said the rating outlook remains
negative.




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


BRITISH WEST: Injunction Against Disposal of Assets Withdrawn
-------------------------------------------------------------
The injunction ordered by the Port-of-Spain industrial court to bar the
British West Indies Airlines aka BWIA from selling off its assets has been
withdrawn by consent order.

Irena Patterson -- BWIA's area manager for Jamaica -- and the
Communications, Transport and General Workers' Trade Union filed a lawsuit
in Trinidad and Tobago, to stop the airline from disposing up to TT$3.7
million assets.  Ms. Patterson claimed that the sum BWIA offered to her
was almost TT$2 million less than she expected.

The industrial court of granted Ms. Patterson and the trade union an
injunction restraining BWIA from disposing of assets of TT$3,706,901.10.

Ms. Patterson sent requests for comment on the lawsuit, which Trinidad
reports say involved outstanding monies connected to a TT$2-million
voluntary separation package, to Dionne Ligoure -- the corporate director
of the Caribbean Airlines, which replaced BWIA on Jan. 1 -- at the new
airline's Port-of-Spain headquarters.

BWIA planned to challenge whether the industrial court has jurisdiction to
determine the matter involving Ms. Patterson, who has worked continuously
in Jamaica.

However, the lawsuit was withdrawn after Dr. Shafeek Sultan-Khan and
Addison Khan -- representatives of BWIA -- told the industrial court that
Trinidad Ministers Lenny Saith and Conrad Enill had assured that any
amounts awarded would be honored.  BWIA had undertaken to guarantee that
any order of the industrial court made after Dec. 31, 2006, in trade
disputes between the trade union and BWIA will be honored by the airline.
The union then withdrew its application for continuation of the
injunction.

Meanwhile, the Aviation Communication and Allied Workers' Union or ACAWU
had warned earlier that it would take legal action to get what it claims
was a promised 15.5% stake valued at TT$38 million in BWIA.

Curtis John, the head of ACAWU, told the Breaking News that lawyers for
the union had already been informed on the issue.  He said he was waiting
to see what type of action the Trinidad government will take.

The industrial court has also granted another injunction sought by ACAWU
against BWIA.  That injunction resulted from a lawsuit filed on by Ms.
Patterson.

Mr. John told Newsday that the granting of the injunction was a small
victory.  He also confirmed ACAWU's intention to join with the trade union
in an application to be filed in the industrial court later this year
seeking an order declaring Caribbean Airlines as the successor employer to
BWIA.

Mr. John commented to the Breaking News, "What is amazing is that they
(BWIA) did not hold a shareholders' meeting with people who bought into
the airline."

The workers of BWIA had been guaranteed 15.5% of the airline's shares
estimated at TT$38 million, the Breaking News relates, citing Mr. John,
who warned that the union was prepared to take the necessary action to
ensure it gets paid.

Mr. John told Caribbean Net News that he believed there was a secretive
plan by some individuals linked to BWIA, which would have led to BWIA
workers losing their shareholdings.

Shareholders should act to help recover their losses, Caribbean Net
states, citing Mr. John.

British West Indies aka BWIA was founded in 1940, and for more
than 60 years has been serving the Caribbean islands from
Trinidad and Tobago, the hub of the Americas, linking the twin
island republic and many other Caribbean islands with North
America, South America, the United Kingdom and Europe.

The airline has reportedly been losing US$1 million a week due
to poor operational management.  An employee survey revealed
that lack of responsibility by the management is a major issue
in the company.  A number of key employees moved to other
companies caused by a deadlock in the airline's negotiation with
its labor union.

The Trinidad & Tobago government, which owns 97.188% of BWIA,
decided to shut down the airline on Dec. 31, 2006, and reopen a
new airline that will be called Caribbean Airlines.  The
government approved a substantial capital injection for the
creation of Caribbean Airlines.




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


* URUGUAY: State Firm Inks Pact with National Land Settlement
-------------------------------------------------------------
UTE, the state power firm of Uruguay, said in a statement that it has
signed an agreement with INC or The National Land Settlement Institute to
exchange benefits from their respective rural properties.

Business News Americas relates that under the agreement, UTE and INC could
exchange wooden posts from their forested areas.

UTE uses posts for its power distribution network, BNamericas states.

                        *    *    *

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




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


CITGO PETROLEUM: Former Gas Station Liable to Pollution
-------------------------------------------------------
The Dolgeville village would received US$203,900 in Environmental
Restoration Program funds, when the state Department of Environmental
Conservation found that the former Citgo Petroleum gas station on North
Main Street was liable to environmental contamination, Evening Times
reports.

Evening Times relates that an investigation has been conducted on the site.

According to Evening Times, groundwater and soil contamination has been
documented on the site and are related to past petroleum distribution
operations.

Evening Times relates that all aboveground structures have been removed at
the site.  At least five underground storage tanks are known to remain.
The garage contained several lifts and a mechanic’s pit that are the
likely sources of contamination.

The report says that the investigation will include:

          -- removal of tanks and impacted soils,
          -- soil sampling,
          -- groundwater sampling,
          -- evaluation of surrounding properties, and
          -- confirmation sampling to evaluate the effectiveness
             of the removal activities.

Evening Times notes that any remaining contamination will be evaluated in
an alternative analysis report.

Testing at the 0.14 acre parcel of land that once was a gas station and
service garage will start soon, Evening Times says, citing Mayor Bruce
Lyon.

"It should start in April, if not sooner, as the weather has been
cooperative.  If the weather stays like it has been, it may start soon,"
Mayor Lyon told Evening Times.

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

                        *    *    *

As reported on Dec. 28, 2006, Fitch Ratings raised the rating of
CITGO Petroleum Corp.'s Issuer Default Rating to 'BB' from
'BB-'.

Fitch also raised the ratings on the company's senior secured
revolving credit facilities, term loan, and fixed rate
Industrial Revenue Bonds from 'BB+' to 'BBB-'.  Fitch said the
rating outlook is stable.


PETROLEOS DE VENEZUELA: Refining Ecuadorian Crude in February
-------------------------------------------------------------
Close to 100,000 barrels per day of Napo-type Ecuadorian crude will be
processed in the Venezuelan refining circuit starting on Feb. 1, 2007,
President Hugo Chavez disclosed during a ceremony that took place in the
Miraflores Palace during the official visit of the Ecuadorian president
elect, Rafael Correa, with whom a Joint Declaration was signed to reaffirm
the commitment of building a new regional integration model.

"Lets bring that oil, lest refine it.  What we will do is provide the
installed capacity we have in our refineries, close to 100 thousand
barrels per day.  We bring oil, we refine it, and they take the products.
They only pay for the transformation cost, not a penny of profits, because
if they do, then where is the help? On January 16 we will sign that,"
affirmed President Chavez.

On his part, President-Elect Correa, who received a replica of the sword
of the Liberator Simon Bolivar as a gift, thanked that "this long and sad
night, dense and obscure, we have lived for the last 20 years due to the
imposition of neoliberalism, when they tried to turn us not into nations,
but just into markets, when they tried to turn us not into citizens, but
just into consumers, is finally being defeated by the peoples of Latin
America."

The processing of this Ecuadorian crude is one of the agreements that
Petroleos de Venezuela and Petroecuador undertook to define in the next
few days to be signed on Jan. 16, one day after President Correa takes
office in the seat of the Ecuadorian Government.

The Venezuelan President suggested that this exchange could result in the
creation of a bi-national fund to fight poverty, to teach to read and
write and grant micro credits.

However, cooperation between both state-owned oil companies extends
further.  Both companies will also define the incorporation of a mixed
company to undertake exploration projects such as quantification and
certification of oil reserves in the Orinoco Oil Belt, the largest oil
reservoir worldwide.

Furthermore, following orders of the Presidents, Petroleos de Venezuela
and Petroecuador will start modernization and enlargement studies of the
Las Esmeraldas Ecuadorian refinery, and will evaluate the construction of
a new refining center in the Andean nation.

All these energy cooperation agreements will be framed within the
Venezuelan proposal called Petroandina, a platform of regional energy
integration.

               Full Oil Sovereignty in Ecuador

The Joint Declaration, described by the Venezuelan President as "one of
the best" he has signed, also instructs Petroleos de Venezuela on how to
provide "consultancy and assistance regarding the establishment of
sovereign trade policies in the hydrocarbons area, for Ecuador to reach
agreements that protect national interest, as well as to review the
existing commitments and find ways to optimize such commitments, in
defense of the interests of the Ecuadorian nation."

Meanwhile, Venezuela will exchange with Ecuador all its knowledge on
matters related to hydrocarbons, training of personnel and development of
technologies in oil and gas exploration, production, transportation,
storing, processing and commercialization activities.

This cooperation is based on the Bolivarian ideal of unity among Latin
America and Caribbean countries, and on the feelings of brotherhood
between both countries, undertaking to build and develop a new integration
model.

The document subscribed indicates that the South American Union should
follow the principles of fair trade, complimentarity,
technologic-productive integration and solidarity among brother peoples;
and that it should take as fundamental strategy the creation of the
Bolivarian Alternative for the Peoples of Our America.

Some of the topics the Presidents agree to advance include the addition of
Ecuador to TeleSUR, the creation of the Bank of the South, the development
of community media, and the promotion of the Radio of the South and a News
Agency.

The Bolivarian Government of Venezuela took the opportunity to applaud the
decision of the Ecuadorian people of transforming their political system
and strengthening democracy with citizen participation.

Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad.  The company has a commercial office in China.

                        *    *    *

Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.


                         ***********


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

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            * * * End of Transmission * * *