TCRLA_Public/070109.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, January 9, 2007, Vol. 8, Issue 6

                          Headlines

A R G E N T I N A

ACXIOM CORP: Enhances Retail Solutions with Equitec Acquisition
CENTRAL PUERTO: Fitch Argentina Places Shares in Category 3
CMS ENERGY: May Sell Argentine Asset to Cut on Losses
GETTY IMAGES: Commences 0.50% Debentures Consent Solicitation
HIDRYAPOLIS SA: Trustee Verifies Proofs of Claim Until April 11

NVIDIA CORP: Completes Acquisition of PortalPlayer
PAN AMERICAN: Studying Argentine Diesel Refinery Development
PC BUFFER: Verification of Proofs of Claim Is Until Feb. 12
PETROLEO BRASILEIRO: Studying Argentine Diesel Plant Development
SANCOR: Delay in Venezuelan Loan Causes Co. to Miss Payment

TALAVERA LOPEZ: Names Raul Falco as Bankruptcy Trustee
TAXI NORTE: Claims VerificatioN Deadline Is Until Feb. 14
TRI-WEAR: Deadline for Verification of Claims Is on March 20
WENDY'S INTERNATIONAL: Discloses Fourth Quarter Same-Store Sales

B A H A M A S

COMPLETE RETREATS: Panel Counsel Wants US$1.1MM Professional Fee
JETBLUE AIRWAYS: Reports 9.8% Increase in December Traffic
PINNACLE ENT: Offering 10 Million Shares of Common Stock

B E R M U D A

INTELSAT LTD: Subsidiary to Redeem US$1 Billion Senior Notes
REFCO INC: Court Approves Settlement with JPMorgan Chase Bank
SEA CONTAINERS: Train Unit Plans 155 Redundancies to Pay Fees
SEA CONTAINERS: Train Unit Appeals on Regulator's Access Order

B O L I V I A

* BOLIVIA: Developing New Reform Bills for Ende
* BOLIVIA: State Firm Opening Bids for Gas Export to Argentina

B R A Z I L

BANCO BRADESCO: Central Bank Approves Capital Stock Increase
BANCO NACIONAL: Grants BRL1.1MM Railway Financing to Group ALL
BANCO NACIONAL: May Disburse BRL7.7B in Loans to Power Sector
BENQ MOBILE: Sacks 310 Workers at Brazilian Plant
CENTRAIS ELECTRICAS: Plans Expansion on International Arena

COMPANHIA PARANAENSE: Reduces Contracted Energy from CIEN
COMPANHIA SIDERURGICA: Reports Low Sales Growth Outside Brazil
COSAN INDUSTRIA: Moody's Rates US$300MM Senior Notes at Ba2
DURA AUTO: Court Approves Upper Cumberland & Lawrenceburg Pacts
DURA AUTOMOTIVE: Seeks Court Nod for Lease Rejection Procedures

DRESSER-RAND: Discloses Changes in Senior Management Team
FORD MOTOR: Investing US$1.02 Billion in Brazil Through 2011
JBS SA: Commences US$275MM 9.375% Sr. Notes Consent Solicitation
JBS SA: S&P Says Ratings Unaffected by Proposed Spin-Off Plan
PETROLEO BRASILEIRO: Keppel-Fels May Win P-55 Project Auction

PETROLEO BRASILEIRO: Launches Exchange Offer of Notes
TAM SA: Reaches 47.8% Average Domestic Market Share in 2006
USINAS SIDERURGICAS: Posts Low Sales Growth Outside Brazil

C A Y M A N   I S L A N D S

495 LEASING: Shareholders to Gather for Jan. 11 Final Meeting
AHR RIVER: Liquidator to Present Wind Up Accounts on Jan. 11
ASPEN CREEK: Last Day for Proofs of Claim Filing Is on Jan. 11
BOLERO LEASING: Final Shareholders Meeting Is Set for Jan. 11
BRANDERVIEW INTERNATIONAL: Final Shareholders Meeting Is Jan. 11

DENTBLANCHE FINANCE: Final General Meeting Is Set for Jan. 11
GULLIVER LEASING: Final Shareholders Meeting Is Set for Jan. 11
LONGHORN CLO: Shareholders to Convene for Jan. 11 Final Meeting
MARATHON PETROLEUM: Proofs of Claim Filing Deadline Is Jan. 11
MARATHON POWER: Proofs of Claim Filing Is Until Jan. 11

MARATHON POWER FINANCE: Proofs of Claim Must be Filed by Jan. 11
MARATHON POWER GHANA: Proofs of Claim Must be Filed by Jan. 11
MARATHON PIPELINE: Proofs of Claim Must be Filed by Jan. 11
MASTR CI-5: Shareholders to Gather for Final Meeting on Jan. 11
NATS R-27: Invites Shareholders for Final Meeting on Jan. 11

PARMALAT SPA: Court Orders CEO to Return OCC Documents to BofA
PROSPERO CAPITAL: Final General Meeting Is Set for Jan. 11
PARROTSPITZE FINANCE: Last Shareholders Meeting Is on Jan. 11
PRIMA INVESTMENTS: Sets Final Shareholders Meeting on Jan. 11
SACHSEN-GUILDER: Final General Meeting Is Set for Jan. 11

SENECA CBO: Shareholders To Gather for Jan. 11 Final Meeting
SIRIUS ALPHA: Liquidator To Present Wind Up Accounts on Jan. 11
SUNDANCE INVESTMENTS: Final General Meeting Is on Jan. 11
URSA MINOR: Shareholders to Convene for Final Meeting on Jan. 11
VOYAGER LEASING: Calls Shareholders for Final Meeting on Jan. 11

C H I L E

ARAMARK: Commences Financing Transactions with RMK Acquisition
ARAMARK: Moody's Assigns Provisional Ratings on Buyout Financing

C O L O M B I A

BANCOLOMBIA: General Attorney Orders House Arrest of Bank Execs.
CLOROX CO: Names Three New Executives
GERDAU SA: Appealing Regulator's Decision on Acerias Auction
GERDAU SA: Sidenor Completes Acquisition of GSB ACERO Shares

D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Metro Project Increasing Foreign Debt
* DOMINICAN REPUBLIC: President Postpones Middle East Visit

E C U A D O R

* ECUADOR: Minister Worries Over Local Fiscal Deficit

E L   S A L V A D O R

AES CORP: Increases Revolving Credit Facility to US$750 Million

G U A T E M A L A

AFFILIATED COMPUTER: Annual Stockholders' Meeting Set for June 7

G U Y A N A

BRITISH WEST: Caribbean Airlines' Employment Policy Questioned
BRITISH WEST: New Airline Launches Operations in Guyana

H O N D U R A S

SBARRO INC: S&P Revises Outlook to Developing on MidOcaen Buyout

J A M A I C A

AIR JAMAICA: Condition Won't Improve, Says Ex-Senior Executive
DIGICEL LTD: Asks Solomon Telecom to Stop Blocking Competition

M E X I C O

ADVANCED MARKETING: Organizational Meeting Scheduled for Friday
ALLIS-CHALMERS: Intends to Offer US$225 Million of Senior Notes
ARROW ELECTRONICS: Buys Agilysys KeyLink Systems for US$485 Mln
ARROW ELECTRONICS: Closes Takeover of InTechnology Storage Ops
ARROW ELECTRONICS: Fitch Keeps BB+ Default Rating on Acquisition

CLIENTLOGIC CORP: Amends Merger Agreement with SITEL Corp.
CLIENTLOGIC CORP: Moody's Lifts Corporate Family Rating to B2
CONSTELLATION BRANDS: Crown Imports Starts Scheduled Operation
DELTA AIR: Reaches Pilot Pension Plan Agreement with PBGC
DIRECTV GROUP: Liberty Media to Acquire Largest Stake in Firm

DIRECTV GROUP: S&P Affirms BB Corporate Credit Rating
ENESCO GROUP: Lenders Limit Funding Under Sr. Credit Facility
FORD MOTOR: Launches Microsoft's In-Car Digital System
MERIDIAN AUTOMOTIVE: Posts US$12.9 Mln Net Loss in November 2006
NORTEL: Closes US$320 Mil. Cash Sale of Unit to Alcatel-Lucent

RIO VISTA: Earns US$4.6 Million in Quarter Ended September 30
VALASSIS: ADVO Shareholders to Vote on Merger Pact on Feb. 22
WERNER LADDER: Panel Consultant's Scope of Employment Expanded

N I C A R A G U A

* NICARAGUA: Pre-Qualifies Four Firms in Oil Exploration Bidding

P A N A M A

AES CORP: Gets Hydroelectric Build-Operate Concessions in Panama

P E R U

HERTZ CORP: Parent Discloses Strategies to Boost Competitiveness

P U E R T O   R I C O

MUSICLAND HOLDING: Posts US$602,000 Net Loss in November 2006

T R I N I D A D   &   T O B A G O

BRITISH WEST: Shareholders Told Stocks Are Worth Nothing

V E N E Z U E L A

CITGO PETROLEUM: 24 Service Stations Switching Brands
CITGO PETROLEUM: Posts 455,000 Barrels Per Day Crude Oil Import
DAIMLERCHRYSLER AG: Insurers Agree to Repay EUR168 Million
DAIMLERCHRYSLER AG: Sales in Non-US Markets Rise 6.6% in 2006

* VENEZUELA: Government Won't Renew License of Radio Caracas
* VENEZUELA: Rafael Ramirez Keeps Energy & Oil Minister Post
* VENEZUELA: S&P Examines Long-Term Economic Challenges
* S&P Says LatAm Media Companies Continue Improved Performance


                          - - - - -


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


ACXIOM CORP: Enhances Retail Solutions with Equitec Acquisition
---------------------------------------------------------------
Acxiom Corp. has expanded and enhanced its retail business solution
capabilities with the acquisition of Equitec, based in Cleveland, Ohio.

The acquisition pairs Acxiom with Equitec, a business with strong
marketing and merchandizing optimization expertise in the retail industry.
All Equitec principals are being retained and will continue to lead this
practice in support of the company’s retail market growth strategies.
Terms of the asset purchase were not released. Acxiom expects the
transaction to be accretive to earnings in fiscal 2008.

"This acquisition enables Acxiom to offer a unique combination of custom
consulting and analysis, deep customer insight and standardized assessment
that accelerates financial return for retailers," said Acxiom Company
Leader Charles D. Morgan.  "Retailers will be able to confidently adjust
merchandise assortments, to better predict market and store potential, to
accurately assess new product launch opportunities and to clearly identify
underserved markets and segments, all derived from the unique needs of
consumers in individual store trading areas."

The acquisition solidifies a successful business relationship that dates
to 1999 when the two companies initiated the Market Advantage joint
venture.  That experience generated numerous client results including:

   -- the generation of US$14 million in new business on a
      US$100 million base;

   -- a reduction of US$17 million in working capital in the
      first year of an allocation re-program; and

   -- identification of US$160 million in revenue in
      underserved markets for a leading specialty retailer.

"Retail is increasingly a difficult business in which to prosper," said
Mike Henry, Chief Executive Officer and founder of Equitec.  "It's no
longer good enough to know 'what's selling;' increasingly 'who's buying’
matters more.  Progressive retailers will locate stores, adjust their
formats and allocate and assort merchandise more frequently through the
lens of deep consumer insight."

"Acxiom now has the capability to diagnose, build, deliver and leverage
solutions that enable retailers to respond more confidently and accurately
to consumer buying behavior within current or planned trading areas," said
Tim Suther, Acxiom Retail Client Services Leader.  "We will accelerate
time-to-benefit for those retailers seeking to better understand consumer
behavior and its influence upon merchandizing, marketing, operations
decisions and profits."

As Acxiom associates, Equitec's employees will continue to provide
industry-leading service to clients in retail, manufacturing and travel
sectors.  Notable Equitec clients include:

   -- Black & Decker,
   -- The Home Depot,
   -- EarthLink,
   -- General Electric,
   -- KB Home,
   -- Masco Companies,
   -- Sabre Holdings,
   -- Saks and
   -- Travelocity.

                    About Acxiom Corp.

Based in Little Rock, Arkansas, Acxiom Corp. (Nasdaq: ACXM) --
http://www.acxiom.com/-- integrates data, services and technology to
create and deliver customer and information management solutions for many
of the largest, most respected companies in the world.  The core
components of Acxiom's innovative solutions are Customer Data Integration
technology, data, database services, IT outsourcing, consulting and
analytics, and privacy leadership.  Founded in 1969, Acxiom has locations
throughout the United States, Europe, Australia and China.  Acxiom has a
team of specialists with sales and business development associates based
in the largest Latin American markets: Brazil, Argentina and Mexico.

                        *    *    *

Standard & Poor's Ratings Services assigned on Sept. 6, 2006, its loan and
recovery ratings to Little Rock, Arkansas-based Acxiom Corp.'s proposed
US$800 million secured first-lien financing.  The first-lien facilities
consist of a US$200 million revolving credit facility and a US$600 million
term loan.  They are rated 'BB' with a recovery rating of '2'.

As reported in the Troubled Company Reporter on Aug. 25, 2006, Moody's
Investors Service assigned a Ba2 rating to Acxiom Corp.'s US$800 million
senior secured credit facilities, while affirming its corporate family
rating of Ba2.  Moody's said the rating outlook is stable.


CENTRAL PUERTO: Fitch Argentina Places Shares in Category 3
-----------------------------------------------------------
Fitch Argentina Calificadora de Riesgo placed the shares of Central Puerto
in category 3.

The company is a leader in the Argentine electrical market.  Its
operations, nevertheless, are threatened by the difficulties in the
provision of natural gas, which also affects the feature of its credits.

The paying capacity of Central Puerto remains tight because of the high
level of debt that it has.  In September 2006, the debt decreased to
US$573 milion, with a level of capitalization of 59% (80% on December
2005).  As result, the relation debt/EBITDA decreased from the 15.2x to
the 7.8x (December 2005).  The restructuring agreement included a
refinancing of the total of the debt, reducing its commitments by 55%
(going from US$412.2 million to US$184.9).  On December 2006, the company
postponed the payment of interests for US$2.5 million, which corresponded
to the second service of the post-restructured debt.

Despite the restructuring, the company's debt is relatively high because
its income is in pesos while its debts are in dollars.  The payments of
capital for the years 2009-2011 are very aggressive in relation to its
generation of funds.

The company announced the sale of its factory in Loma de Lata to Pampa
Holding for US$460 million (in 365 days after December 2006).  This would
mean a reduction to Central Puerto of its generation of funds for US$8
million per year.  The use of the funds coming from the sale has not been
decided yet.

Central Puerto is one of the largest thermical generators in Argentina.
Total Austral has recently sold 63.94% of the shares to Merril Lynch,
Pierce, Fenner and Smith Inc. and Sociedad Argentina de Electricidad S.A.
The remaining shares are traded in the Bolsa de Comercio de Buenos Aires.


CMS ENERGY: May Sell Argentine Asset to Cut on Losses
-----------------------------------------------------
CMS Energy Corp. might be selling its main Argentine asset, GasAtacama.

The group invested about US$1 billion in Argentina but has incurred losses
since the 2001 crisis.

According to sources familiar with the matter, CMS Energy has already
approached possible buyers of the company, Infobae reports.

CMS Energy had a contract signed with Endesa in order to construct the gas
pipe GasAtacama, in which it invested US$900 million, though plans failed.

CMS Energy Corp. -- http://www.cmsenergy.com/-- is a Michigan-based
company that has as its primary business operations an electric and
natural gas utility, natural gas pipeline systems, and independent power
generation.  Through its regulated utility subsidiary, Consumers Energy
Co., the company provides natural gas and electricity to almost 60% of
nearly 10 million customers in Michigan's lower-peninsula counties.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 16, 2006,
Moody's Investors Service lowered its Corporate Family Rating for CMS
Energy Corp. to Ba2 from Ba1, in connection with its new
Probability-of-Default and Loss-Given-Default rating methodology.


GETTY IMAGES: Commences 0.50% Debentures Consent Solicitation
-------------------------------------------------------------
Getty Images, Inc., solicited consents from the holders of record at the
close of business on Jan. 4, 2007, of its outstanding 0.50% Convertible
Subordinated Debentures, Series B due 2023 in the aggregate principal
amount of US$265 million to an amendment to, and a waiver of an alleged or
existing default or event of default under, the indenture governing the
Debentures.

On Nov. 9, 2006, Getty Images' Board of Directors had established a
special committee to conduct an internal investigation relating to Getty
Images' stock option grant practices and related accounting for stock
option grants and that it would delay the filing of its Quarterly Report
on Form 10-Q for the quarter ended Sept. 30, 2006, until the special
committee's review is complete.  Also on Nov. 29, 2006, Getty Images
received notices of a purported default from holders who claim to hold
more than 25% in principal amount of the outstanding Debentures asserting
that Getty Images' failure to file its Third Quarter Form 10-Q by the
prescribed filing date under SEC regulations was a default under Section
17.01 of the Indenture, which incorporates by reference Section 314(a) of
the Trust Indenture Act of 1939.

Getty Images does not believe that it has failed to perform any of its
obligations under the Indenture, which does not contain an express
covenant requiring Getty Images to provide the trustee under the Indenture
or the holders with periodic reports, such as the Third Quarter Form 10-Q.
While Section 314(a) of TIA is incorporated into the Indenture by virtue
of Section 17.01 thereof, Getty Images does not believe that the TIA
requires periodic reports to be filed with the SEC or provided within any
prescribed period of time.

Notwithstanding Getty Images' position regarding notices of default, it is
seeking an amendment to, and a waiver of the alleged or existing default
or event of default under, the Indenture. The proposed amendment to the
Indenture would provide that no notice of default delivered to Getty
Images on or prior to March 2, 2007, that specifies as the basis for the
default a failure to file with the SEC the Third Quarter Form 10-Q and/or
the company's Annual Report on Form 10-K for the year ended
Dec. 31, 2006, as applicable, and to file the applicable reports with the
trustee under the Indenture, will have any force or effect with respect to
the exercise of remedies by the trustee or any holder of Debentures if
Getty Images files the applicable reports on or prior to May 1, 2007.  The
Consent Solicitation also includes a waiver of any defaults and events of
default under Section 17.01 of the Indenture that may exist as a result of
its failure to file the Third Quarter Form 10-Q.

Getty Images proposes to make a cash payment to consenting holders of the
Debentures of US$5.00 per US$1,000 in aggregate principal amount of the
Debentures held by such consenting holders, upon or promptly following
expiration of the Consent Solicitation.  Only registered holders of the
Debentures on the Jan. 4, 2007, record date that validly deliver, and do
not revoke, consents prior to 5:00 p.m. New York City time on
Jan. 17, 2007, the expiration of the Consent Solicitation, will be
eligible to receive the consent payment.

The consummation of the Consent Solicitation (including the payment of the
consent payment) is subject to the receipt of valid consents in respect of
a majority in aggregate principal amount of all outstanding Debentures,
the execution of the supplemental indenture by us and the trustee under
the Indenture, and the absence of any existing or proposed law or
regulation or any proceeding that would make unlawful or invalid or enjoin
or delay the proposed amendment, the entering into of the supplemental
indenture or the payment of the consent payment.

The Consent Solicitation with respect to the Debentures may be extended or
terminated by Getty Images at its option.

Getty Images has retained Goldman, Sachs & Co. to serve as the
Solicitation Agent and D.F. King & Co., Inc. to serve as Information Agent
and Tabulation Agent for the Consent Solicitation. Requests for documents
may be made directly to:

          D.F. King & Co., Inc.
          48 Wall Street, 22nd Floor
          New York, New York
          Tel: 800-488-8095 (toll free)
               212-269-5550 (collect)

Questions regarding the solicitation of consents may be directed to:

          Goldman, Sachs & Co.
          Attention: Credit Liability Management Group
          Tel: 800-828-3182 (toll free)
               212-357-0775 (collect)

Getty Images Inc. -- http://gettyimages.com/-- (NYSE: GYI) creates and
distributes visual content and the first place creative professionals turn
to discover, purchase and manage imagery.  The company's award-winning
photographers and imagery help customers create inspiring work which
appears every day in the world's most influential newspapers, magazines,
advertising campaigns, films, television programs, books and Web sites.
Headquartered in Seattle, WA and serving customers in more than 100
countries, Getty Images believes in the power of imagery to drive positive
change, educate, inform, and entertain.  The company has corporate offices
in Australia, the United Kingdom and Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 11, 2006, Standard &
Poor's Ratings Services lowered its ratings on Seattle, Washington-based
visual imagery company Getty Images Inc., including lowering the corporate
credit rating to 'B+' from 'BB', and placed the ratings on CreditWatch
with developing implications.


HIDRYAPOLIS SA: Trustee Verifies Proofs of Claim Until April 11
---------------------------------------------------------------
Jacobo Luterstein, the court-appointed trustee for Hidryapolis SA's
bankruptcy proceeding, verifies creditors' proofs of claim until April 11,
2007.

Mr. Luterstein will present the validated claims in court as individual
reports on May 24, 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 Hidryapolis SA and its
creditors.

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

A general report that contains an audit of Hidryapolis SA's accounting and
banking records will follow on August 6, 2007.

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

The trustee can be reached at:

         Jacobo Ernesto
         Rodriguez Pena
         Buenos Aires, Argentina


NVIDIA CORP: Completes Acquisition of PortalPlayer
--------------------------------------------------
NVIDIA Corp. has completed the purchase of PortalPlayer, Inc., a supplier
of semiconductors, firmware, and software for personal media players and
secondary display-enabled computers.

PortalPlayer's acquisition is expected to accelerate NVIDIA's ongoing
investment in its handheld product strategy.  NVIDIA's handheld
technology, which combines high-quality graphics, TV, and video with low
power and a small footprint, is at the foundation of many industry-leading
portable media devices, including phones from Motorola, Samsung, Kyocera,
HTC, and Sony Ericsson.

Headquartered in Santa Clara, California, NVIDIA Corp.
(Nasdaq: NVDA) -- http://www.nvidia.com/-- creates innovative,
industry-changing products for computing, consumer electronics,
and mobile devices.  The NVIDIA(R) graphics processing unit and
media and communications processor brands include NVIDIA
GeForce(R), NVIDIA GoForce(R), NVIDIA Quadro(R), and NVIDIA
nForce(R).  These product families are transforming visually-rich
applications such as video games, film production, broadcasting,
industrial design, space exploration, and medical imaging.  The company
has offices throughout Asia, Europe, and the Americas including Brazil and
Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on Dec. 8, 2006, Standard &
Poor's Ratings Services removed its ratings on Santa Clara,
California-based Nvidia Corp. from CreditWatch, where they were placed
with negative implications on Aug. 15, 2006.  The corporate credit rating
was affirmed at 'BB-'.  S&P said the outlook is stable.


PAN AMERICAN: Studying Argentine Diesel Refinery Development
------------------------------------------------------------
Pan American Energy has started analyzing the development of a planned
US$2.3-billion diesel refinery in Argentina, Business News Americas
reports, citing a spokesperson of the planning and public works ministry
of Argentina.

BNamericas relates that four other firms are studying the project.  These
are:

          -- Repsol YPF,
          -- Chevron,
          -- Petroleo Brasileiro, and
          -- the Esso fuel distribution unit of ExxonMobil.

According to BNamericas, the firms agreed to conduct studies for project
development.  However, no official document was signed.

Cristian Folgar, the Argentine deputy fuels minister, told Infobae that
project feasibility studies could be completed by year-end with operations
starting up in 2010.

BNamericas says that the refinery could be constructed in Comodoro
Rivadavia in Chubut.  It can produce up to 3 million cubic meters of
diesel yearly.

The private sector would fund US$1.6 billion of the refinery project.
Institutional investors like local pension fund managers would finance the
balance, BNamericas states.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on Nov. 10,
2006, Standard & Poor's Ratings Services said that its ratings on Pan
American Energy LLC (PAE; BB-/Stable/--) are not affected by the recent
sale of exploration & production onshore assets in the Province of Tierra
del Fuego to US-incorporated Apache Corp. (A-/Stable/A-2) for about US$380
million.

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on Aug. 4,
2006, Fitch Ratings upgraded Pan American Energy's foreign currency issuer
default rating to BB- with stable outlook from B+.  This rating action
follows Fitch's upgrade on Argentina's long-term local currency Issuer
Default Rating to 'B' from 'B-' and country ceiling to 'B+' from 'B' on
Aug. 2, 2006.


PC BUFFER: Verification of Proofs of Claim Is Until Feb. 12
-----------------------------------------------------------
Miguel Adolfo Kupchik, the court-appointed trustee for PC Buffer SRL's
bankruptcy proceeding, will verify creditors' proofs of claim until Feb.
12, 2007.

Mr. Kupchik will present the validated claims in court as individual
reports on April 26, 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 PC Buffer 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 PC Buffer's accounting and
banking records will follow on June 11, 2007.

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

The trustee can be reached at:

         Miguel Adolfo Kupchik
         San Luis 3067
         Buenos Aires, Argentina


PETROLEO BRASILEIRO: Studying Argentine Diesel Plant Development
----------------------------------------------------------------
Petroleo Brasileiro, the state-run oil firm of Brazil, has started
analyzing the development of a planned US$2.3-billion diesel refinery in
Argentina, Business News Americas reports, citing a spokesperson of the
planning and public works ministry.

BNamericas relates that four other firms are studying the project.  These
are:

          -- Repsol YPF,
          -- Chevron,
          -- Pan American Energy; and
          -- the Esso fuel distribution unit of ExxonMobil.

According to BNamericas, the firms agreed to conduct studies for project
development.  However, no official document was signed.

Cristian Folgar, the Argentine deputy fuels minister, told Infobae that
project feasibility studies could be completed by year-end with operations
starting up in 2010.

BNamericas says the refinery could be constructed in Comodoro Rivadavia in
Chubut.  It can produce up to 3 million cubic meters of diesel yearly.

The private sector would fund US$1.6 billion of the refinery project.
Institutional investors like local pension fund managers would finance the
balance, BNamericas states.

                        *    *    *

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

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

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

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

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

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


SANCOR: Delay in Venezuelan Loan Causes Co. to Miss Payment
-----------------------------------------------------------
Argentine dairy cooperative SanCor says that the funds from the US$135
million loan agreed with the Venezuelan government have not been received
yet.  As a result, the company had to ask for more time to pay around US$3
million in interests that were due on Dec. 31, 2005.  SanCor intended to
pay 20% on Dec. 29, 30% in late January and the rest in late February.

The funds from Venezuela are expected to arrive by the end of this month.

SanCor and state-owned Banco de Desarrollo Economico y Social de Venezuela
signed in December 2006, loan pacts providing the cooperative with US$80
million to pay its debts plus US$50 million for its capital.

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

                        *     *     *

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


TALAVERA LOPEZ: Names Raul Falco as Bankruptcy Trustee
------------------------------------------------------
A court in Tucuman appointed Raul Falco to supervise the bankruptcy
proceeding of Talavera aka Lopez SRL.  Under bankruptcy protection,
control of the company's assets is transferred to Mr. Falco.

As trustee, Mr. Falco will:

   -- verify creditors' proofs of claim;

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

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

The trustee can be reached at:

          Raul Falco
          Las Heras 355, San Miguel
          Tucuman, Argentina


TAXI NORTE: Claims VerificatioN Deadline Is Until Feb. 14
---------------------------------------------------------
Pablo Ernesto Aguilar, the court-appointed trustee for Taxi Norte SRL's
bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 14,
2007.

Mr. Aguilar will present the validated claims in court as individual
reports on Mar. 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 Taxi Norte 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 Taxi Norte's accounting and
banking records will follow on May 11, 2007.

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

The trustee can be reached at:

         Pablo Ernest Aguilar
         Hipolito Yrigoyen
         Buenos Aires, Argentina


TRI-WEAR: Deadline for Verification of Claims Is on March 20
------------------------------------------------------------
Carlos Daniel Ayuso, the court-appointed trustee for Tri-Wear SRL's
bankruptcy proceeding, verifies creditors' proofs of claim until March 20,
2007.

Mr. Ayuso will present the validated claims in court as individual reports
on May 7, 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 Tri-Wear 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 Tri-Wear's accounting and
banking records will follow on June 20, 2007.

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

The trustee can be reached at:

         Carlos Daniel Ayuso
         Tucuman 1455, San Isidro
         Buenos Aires, Argentina


WENDY'S INTERNATIONAL: Discloses Fourth Quarter Same-Store Sales
----------------------------------------------------------------
Wendy's International, Inc., disclosed preliminary same-store sales of
3.1% at U.S. company stores and 2.7% at U.S. franchised restaurants for
its fourth quarter ended Dec. 31, 2006

"We closed the year with same-store sales of 6.1% in December, which is
our strongest month in two and a half years," said Chief Executive Officer
and President Kerrii Anderson.  "We have made tremendous progress in
improving our sales performance in the past three quarters, after a
difficult first quarter.  We are proud that we achieved positive
same-store sales for the full year in 2006.

"We are also pleased that we finished the year with company store average
unit volumes of US$1.4 million, which equals the all-time high for
Wendy's."

In October, Wendy's promoted its 99-cent junior bacon cheeseburger and
99-cent crispy chicken sandwich.  Wendy's promoted its new Double Melt
cheeseburgers and also introduced a reloadable gift card program in
November.  During December, Wendy's reintroduced its Chicken Club
sandwich, featuring a chicken fillet, natural Swiss cheese, bacon,
mayonnaise, tomato and lettuce on a Kaiser roll.

"Our strong promotional calendar, menu management, product innovation and
improved marketing have been the driving forces behind the positive sales
momentum we have generated over the past three quarters," Anderson said.
"We expect to see similar quarterly sales results in the coming year and
anticipate a strong start in 2007.

"We are working diligently to improve all aspects of operations --
friendliness, speed of service, order accuracy and cleanliness of our
restaurants -- to drive transactions during 2007,” Ms. Anderson said.  "We
believe the best way to improve the financial performance of our
restaurants is with better operations.

"We also plan to invest approximately US$60 million in 2007 to upgrade our
existing company restaurants, in addition to the US$25 million in
incentives we will offer to franchisees who remodel their stores according
to our standards," Ms. Anderson said.  "This is consistent with our
previously announced plan to slow development and focus on driving sales
and profits in our existing restaurants."

                  Fourth-quarter outlook

The company previously disclosed that its fourth-quarter beef costs were
approximately 4% lower in 2006 than in the fourth quarter of 2005, and
that it expects to realize US$5 million to US$6 million in incremental
interest income due to a higher cash balance relative to the fourth
quarter of 2005.

Wendy's also anticipates that it will incur additional costs in the fourth
quarter, including US$4 million to US$8 million in pretax charges for the
closure of certain underperforming Wendy's restaurants and approximately
US$4 million in pretax expense for research and development related to its
breakfast test.  In addition, the company expects to record higher expense
for performance-based incentive compensation in the fourth quarter of 2006
commensurate with improved second-half core operating results compared to
2005.

Wendy's to promote new deluxe value meals, cranberry pecan chicken salad
in first quarter

In January, Wendy's is promoting its new double junior cheeseburger and
crispy chicken deluxe value meals.  These combo meals include a sandwich,
small order of fries and a 20-ounce cold drink at a suggested price of
US$2.99.  Wendy's will also add a new limited-time seasonal cranberry
pecan chicken salad in the first quarter, featuring spring mix greens,
Mandarin oranges, chicken, dried cranberries and pecans, with a berry
balsamic vinaigrette dressing.

In February, Wendy's will promote several limited-time sandwiches locally,
including the bacon mushroom melt cheeseburger, Mozzarella Lovers’ Bacon
Cheeseburger, bacon Swiss chicken sandwich and bacon Swiss cheeseburger.

Headquartered in Dublin, Ohio, Wendy's International Inc.
-- http://www.wendysintl.com/-- and its subsidiaries operate, develop,
and franchise a system of quick service and fast casual restaurants in the
United States, Canada, Mexico, Argentina, among others.

                        *    *    *

As reported in the Troubled Company Reporter on Oct. 17, 2006, Moody's
Investors Service held its Ba2 Corporate Family Rating for Wendy's
International Inc.

Additionally, Moody's held its Ba2 ratings on the company's
US$200 million 6.25% Senior Unsecured Notes Due 2011 and US$225 million
6.2% Senior Unsecured Notes Due 2014.  Moody's assigned the debentures an
LGD4 rating suggesting noteholders will experience a 54% loss in the event
of default.




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


COMPLETE RETREATS: Panel Counsel Wants US$1.1MM Professional Fee
----------------------------------------------------------------Bingham
McCutchen LLP seeks payment of US$1,110,499 for professional services it
rendered on behalf of the Official Committee of Unsecured Creditors
appointed in the bankruptcy cases of Complete Retreats LLC and its
debtor-affiliates for the period Aug. 3, 2006, through Oct. 31, 2006.
Bingham McCutchen further seeks reimbursement of US$23,546 for actual and
necessary expenses it incurred during the Application Period.

William F. Govier, Esq., at Bingham McCutchen LLP, in Hartford,
Connecticut, relates that attorneys at Bingham expended 2,271
hours on the Debtors' cases during the Application Period, while
law clerks and legal assistants expended 509.9 hours.

The services performed by Bingham during the Application Period
include:

    -- preparing for meetings and communicating with Committee
       members, other unsecured creditors, and the U.S. Trustee
       regarding the bankruptcy cases' status and other matters
       as needed;

    -- preparing and reviewing retention applications and
       monthly statements for the Committee's professionals;

    -- reviewing and analyzing proposed interim DIP financing
       and holding discussions with the proposed interim DIP
       lenders;

    -- analyzing the Debtors' ongoing financial and operating
       performance, merger and acquisition program, and various
       possible plan and restructuring scenarios;

    -- reviewing the Debtors' proposed lease rejections and
       property disposition motions;

    -- evaluating prepetition lien status and reviewing
       mortgages, security agreements and related documents for
       approximately 70 properties;

    -- reviewing proofs of claim from time to time as filed; and

    -- reviewing and summarizing pleadings and electronic
       docketing notices for distribution to the Committee.

                  About Complete Retreats

Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses.  In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members.

Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245).
Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert
LLP represent the Debtors in their restructuring efforts.  Michael J.
Reilly, Esq., at Bingham McCutchen LP, in Hartford,
Connecticut, serves as counsel to the Official Committee of
Unsecured Creditors.  No estimated assets have been listed in the Debtors'
schedules, however, the Debtors disclosed US$308,000,000 in total debts.

The Debtors' exclusive period to file a plan expires on
February 18, 2007.  They have until April 19, 2007, to solicit
acceptance to that plan.  (Complete Retreats Bankruptcy News,
Issue No. 18; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


JETBLUE AIRWAYS: Reports 9.8% Increase in December Traffic
----------------------------------------------------------
JetBlue Airways Corp. reported that its traffic in December increased 9.8%
from December 2005, on a capacity increase of 14.6%.

Load factor for December 2006 was 79.4%, a decrease of 3.5 points from
December 2005.  JetBlue's preliminary completion factor was 99.6% and its
on-time performance was 64.7%.  "We were pleased to see that our
preliminary PRASM for the month of December increased 22% year over year,"
said David Neeleman, CEO of JetBlue.


               JetBlue Airways Traffic Results

                       December 2006   December 2005   % Change
Revenue passenger
  miles (000)            2,031,593       1,849,843        9.8
Available seat
  miles (000)            2,558,049       2,232,317       14.6
Load factor                  79.4%           82.9%    (3.5) pts
Revenue passengers      1,742,574       1,421,793       22.6
Departures                 15,857          11,324       40.0
Average stage length        1,079           1,273      (15.2)


                        Y-T-D 2006      Y-T-D 2005   % Change
Revenue passenger
  miles (000)           23,319,821      20,200,057       15.4
Available seat
  miles (000)           28,593,960      23,703,094       20.6
Load factor                 81.6%           85.2%     (3.6) pts
Revenue passengers     18,564,563      14,729,066       26.0
Departures                159,152         112,009       42.1
Average stage length        1,186           1,358      (12.7)

Based in Forest Hills, New York, JetBlue Airways Corp.
(Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger
air transportation services primarily in the United States.  As
of Feb. 14, 2006, the Company operated approximately 369 daily
flights serving 34 destinations in 15 states, Puerto Rico, the
Dominican Republic, and the Bahamas.  The Company also provides
in-flight entertainment systems for commercial aircraft,
including live in-seat satellite television, digital satellite
radio, wireless aircraft data link service, and cabin
surveillance systems and Internet services, through its wholly
owned subsidiary, LiveTV, LLC.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 23, 2006,
Moody's Investors Service assigned ratings of Caa1 (LGD5, 88%)
to the approximately US$40 million of Special Facility Revenue
Bonds, Series 2006 (JetBlue Airways Corporation Project or the
JFK Facility Bonds) to be issued by the New York City Industrial
Development Agency.  Moody's affirmed the B2 corporate family
rating for JetBlue Airways Corp.  Moody's said the outlook remains negative.

Standard & Poor's Ratings Services assigned its 'B' rating to
US$40 million of New York City Industrial Development Agency
special facility revenue bonds, series 2006 maturing on May 15,
2021, and May 15, 2030; the amount for each maturity have yet to
be determined.  The bonds, which will be used to finance a
hangar and other facilities, will be serviced by payments made
by JetBlue Airways Corp. (B/Stable/B-3) under a lease between
the airline and the agency.


PINNACLE ENT: Offering 10 Million Shares of Common Stock
--------------------------------------------------------
Pinnacle Entertainment, Inc., intends to offer 10 million newly issued
shares of its common stock under an effective shelf registration statement
on file with the U.S. Securities and Exchange Commission.  The company
also intends to grant to the underwriters of the proposed offering an
option to purchase up to an additional 1.5 million newly issued shares of
common stock.  Upon the completion of the offering, Pinnacle anticipates
having approximately 58.2 million shares of common stock outstanding,
assuming the option to purchase additional shares is not exercised.

The company expects to use the proceeds of this offering for general
corporate purposes and for one or more of its capital projects, including
expansions at existing facilities, its St. Louis construction projects,
its Sugarcane Bay and Atlantic City development projects, and possible
other future development projects.

Bear, Stearns & Co. Inc. and Lehman Brothers Inc. will act as joint book-
running managers of the offering.

Copies of the preliminary prospectus supplement relating to the offering
may be obtained from:

           Bear, Stearns & Co. Inc.
           Attn: Prospectus Department
           383 Madison Avenue
           New York, New York 10179
           Tel:  1-866-803-9204

                  -- or --

           Lehman Brothers Inc.
           c/o ADP Financial Services
           Prospectus Fulfillment
           1155 Long Island Avenue, Edgewood, NY 11717
           Fax: 631-254-7268
           E-mail: monica_castillo@adp.com

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

                        *    *    *

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

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




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


INTELSAT LTD: Subsidiary to Redeem US$1 Billion Senior Notes
------------------------------------------------------------
Intelsat Subsidiary Holding Co. Ltd., an Intelsat Ltd. subsidiary, intends
to redeem all of its outstanding US$1 billion Floating Rate Senior Notes
due 2012.

Intelsat Subsidiary 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.

                     About Intelsat Ltd

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.

At Sept. 30, 2006, the company's balance sheet showed
US$12.4 billion in total assets and US$12.9 billion in total liabilities,
resulting in a US$494.6 million stockholders'
deficit.


REFCO INC: Court Approves Settlement with JPMorgan Chase Bank
-------------------------------------------------------------
The Hon. Robert D. Drain of the U.S. Southern District of New York has
approved the Settlement Agreement and Mutual Release between Marc S.
Kirschner, the Chapter 11 trustee for the estate of Refco Capital Markets,
Ltd., and JPMorgan Chase Bank, N.A.

Any and all related claims filed by JPMorgan against RCM and any other
Debtors will be deemed disallowed and expunged, with prejudice, except the
two JPMorgan claims asserted against Refco
Capital LLC and Refco Group Ltd., LLC.

Headquartered in New York, New York, Refco Inc. --
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 Bankruptcy News, Issue No. 52;
Bankruptcy Creditors' Service Inc. 215/945-7000)


SEA CONTAINERS: Train Unit Plans 155 Redundancies to Pay Fees
-------------------------------------------------------------
Great North Eastern Railway is drawing up plans to cut jobs as it strives
to meet the terms of its franchise agreement with the British government,
according to Dan Milmo of the Guardian.

The Guardian reports that GNER is considering 155 redundancies, out of a
3,100-strong GNER workforce.

Mr. Milmo quotes a GNER spokesman as saying "We have not set out a
specific number.  But there will be a reduction in headcount. The quantum
and timing is part of ongoing discussions with trade unions."  The
spokesman added that GNER hopes to achieve the job cuts through voluntary
redundancies and a partial hiring freeze.

According to the Guardian, GNER is missing revenue targets that underpin
its pledge to pay the government GBP1,300,000,000 over the 10-year course
of the franchise.  Amid rising electricity prices and a fall in tourist
numbers due to the July 7 bombings, it posted turnover growth of 3.3% in
2005, when 10% was needed.

As widely reported, the government has agreed to tear up the franchise
agreement and re-tender the right to run trains on the east coast line in
two years' time.  In the meantime, GNER will run the franchise on a fixed
management contract while the government draws up a new tender and
conducts an auction for a new operator.

                       RMT to Strike

The Rail Maritime and Transport union, which represents 1,500 of GNER's
3,100 workers, said it would resist any redundancies at the company, Haydn
Lewis of The Press reports.

According to the Press, RMT General Secretary Bob Crow said GNER gave us
written confirmation of projected staffing levels under the 35-hour week
deal, which would at least maintain existing staff numbers and would even
increase the staff complement in some grades.  Now it seems that the
company has been telling the media that there will be redundancies.  RMT
has already made it clear that we will resist redundancies, with
industrial action if necessary."

A GNER spokesman was also quoted as saying "GNER's challenge is to
maintain and build upon our high standards of service, reflected in record
passenger satisfaction of 90 per cent, while delivering that service as
efficiently as possible in line with our current franchise contract with
Government.  We have been in discussions with trade union partners for
many months about how to maintain our high standards while becoming more
efficient.  There may be a modest reduction in overall numbers of
employees but only after full consultation.  This will be managed
sensitively and progressively.  No decisions have been taken on the size
and timing of any changes, which will be subject to full consultation.
GNER has not leaked any information to the media."

Furthermore, according to the Press, Mr. Crow urged the Government to
block any job cuts at the rail firm asserting that their priority remains
to ensure that their members' jobs are not sacrificed to enable a
privateer to dig itself out its financial crisis.

                         About GNER

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

                    About Sea Containers

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

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

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


SEA CONTAINERS: Train Unit Appeals on Regulator's Access Order
--------------------------------------------------------------
Great North Eastern Railway is taking its battle against "unlawful state
aid" granted by United Kingdom's Office of Rail
Regulation to Hull Trains and Grand Central Railway to the
European Commission, reports Paul Rogerson of The Herald.  The
ORR is the economic regulator for the railway industry in Great
Britain.

The Herald disclosed that GNER wants the European Commission to
investigate the ORR's decision to grant its rival train companies the
right to run "open access" passenger services on the east coast route.
GNER argues that its rivals will be charged less for access to the same
rail network for the provision of equivalent services.

According to The Herald, GNER said the present regime will result in the
east coast franchise losing up to GBP9,700,000 a year, at a time when its
parent, Sea Containers, Ltd., is negotiating with  government on the terms
of GNER's franchise.  GNER argues that all companies should pay an
equivalent amount for access to the rail network for equivalent services.

GNER previously challenged the ORR's decision in the High Court but failed
to win its case, Mr. Rogerson adds.

The Herald quotes GNER's Legal Director, Janet Huck, as saying, "We
welcome competition and already operate on one of the most competitive
travel routes in Britain.  We have nothing against new entrants on the
route, but competition should be on a level playing field.  The current
regime is unfair and will place franchise operators at a competitive
disadvantage compared with open access operators who compete on the same
track for the same passenger revenue.  The commercial consequences of this
unfairness are serious, so we have little option but to pursue further
this important matter of principle."

GNER won the franchise for the east coast route in 2005.  GNER had agreed
to pay GBP1,300,000,000 to the Treasury over a seven-year franchise if
performance targets are met.  According to The Herald, senior directors at
GNER say that the company's ability to pay that premium was called into
question by the ORR's decision.

                         About GNER

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

                    About Sea Containers

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

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

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




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B O L I V I A
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* BOLIVIA: Developing New Reform Bills for Ende
-----------------------------------------------
The Bolivian government is drafting new reform bills that will allow Ende,
the nation's state power firm, to start selling energy outside the
country, published reports say, citing Jerjes Mercado, the deputy
electricity minister of Bolivia.

Minister Mercado told reporters, "We have high-level contact with Brazil
and Peru and some conversations with Chile.  The idea is that Ende will be
in charge of electricity exports and is already working on the relevant
studies."

Business News Americas relates that yearly income from power exports could
go beyond US$1 billion.

According to El Diario, Ende will transport power across the river Madera
to Brazil with a project that would carry bilateral costs of US$4 billion.

BNamericas underscores that Ende is also studying power exports to Peru
near Colorado Lake with a US$50 million.

The reforms would let Ende operate throughout the entire power chain,
including generation, transmission and distribution, BNamericas states.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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


* BOLIVIA: State Firm Opening Bids for Gas Export to Argentina
--------------------------------------------------------------
Yacimientos Petroliferos Fiscales Bolivianos, the state-run oil company of
Bolivia, said in a statement that it will open bids from local gas
producers for the export of gas to Argentina.

Business News Americas relates that the exports are part of the accord
signed by Yacimientos Petroliferos and Enarsa, its counterpart in
Argentina, in October.  The agreement established a boost in gas export
volumes from 4.5 million cubic meters per day to:

       -- 7.7 million cubic meters per day in 2007,
       -- 16 million cubic meters per day for 2008 and 2009, and
       -- 27.7 million cubic meters per day from 2010 to 2026.

According to BNamericas, the gas will be sold to Argentina at US$5 per
million British thermal unit, as established in a June bilateral accord.

The exported Bolivian gas will bring in US$32.3 billion over the
contract's 20 years, as well as US$7.9 billion from the sale of
hydrocarbons liquids associated with natural gas production, Yacimientos
Petroliferos said in a statement.

                        *    *    *

Fitch Ratings assigned these ratings on Bolivia:

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




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


BANCO BRADESCO: Central Bank Approves Capital Stock Increase
------------------------------------------------------------
The Central Bank of Brazil approved on Jan. 2, 2007, the capital increase
process of Banco Bradesco S.A.'s subscription of stocks, which was
disclosed in a Special Stockholder's Meeting on Oct. 5, 2006, and ratified
on Dec. 28, 2006.

Consequently, the new subscribed stocks will be incorporated into the
stockholders position on Jan. 9, 2007, becoming free for trading.

As reported in the Troubled Company Reporter on Jan. 3, 2007, Banco
Bradesco approved during a special stockholders' meeting
on Dec. 28 to increase capital stock by BRL1,200,000,000 to
BRL14,200,000,000, from BRL13,000,000,000, through the
subscription of 21,818,182 new book-entry, registered stocks,
with no par value, being 10,909,152 common stocks and 10,909,030
preferred stocks.

The stocks subscribed and integrated in the capital increase
will be fully entitled to Dividends and Monthly and possibly
Complementary Interest on Own Capital to be declared as from the
date of their inclusion in the stockholders' position, which
will take place after the approval of the respective process by
the Brazilian central bank, as well as, to other advantages
attributed to the Banco Bradesco stocks.

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

                        *    *    *

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

   -- Foreign currency counterparty credit rating

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

   -- Local currency counterparty credit rating

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

   -- Brazil national scale rating

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

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


BANCO NACIONAL: Grants BRL1.1MM Railway Financing to Group ALL
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES approved a
BRl1.12 billion financing to Group ALL, for company investments of BRL2.87
billion until 2009.  From the total credit, BRL985.3 million will be
granted to ALL do Brasil and BRL138.4 million to Brasil Ferrovias.

This BNDES financing is allocated to investment projects at Group ALL's
railways, comprised by the concessionaires:

    -- ALL do Brasil,
    -- Ferronorte and Ferroban (Brasil Ferrovias) and
    -- Novoeste.

The investments will increase the cargo volume transported by the railways
and will be carried out along 12,000 kilometers of network in the States
of:

   -- Mato Grosso,
   -- Mato Grosso do Sul,
   -- Sao Paulo,
   -- Parana,
   -- Santa Catarina and
   -- Rio Grande do Sul.

Investments financed by the Bank include:

   -- remodeling and modernization of the permanent road,
   -- construction of new crossing yards,
   -- restoration of wagons and locomotives,
   -- modernization of operating systems and
   -- increase in the capacity of cargo running terminals.

The project provides further for investments to overcome logistic
bottlenecks:

   -- viaducts will be built in Paranagua, Londrina, Ponta
      Grossa and Piraquara;

   -- circuit implementation works will also be made for the
      Municipalities of Curitiba (43 km) and Joinville (16.9 km)
      and, in the State of Sao Paulo; and

   -- the permanent road at Baixada Santista (9 km) will be
      fenced, with the construction of ten ramps, in addition
      to isolating the railway lines at the Port of de Santos.

Among the main merits of the projects are:

   -- a reduction in transport logistic costs, mainly those
      related to the discharge of grains,

   -- increase in the railway system transport capacity, and

   -- stimulus to using the railway modal, with a consequent
      reduction in the roadway transport concentration.

Through the financings to ALL do Brasil and Brasil Ferrovias, BNDES gives
an additional contribution to develop the Brazilian transport
infrastructure, which investments are a priority to the Bank's operational
policy.  In 2006, BNDES disbursements to the railway sector amounted to
BRL500 million, involving projects for the construction and restoration of
wagons and investments in railways.  Financings to the railway sector last
year reached the record level of BRL2.2 billion, equivalent to total
investments of BRL7.5 billion, reflecting that sector's recovery.

BNDES, by means of BNDESPAR, participates to ALL's holding group by owning
7.03% of the voting capital.  BNDESPAR's interest in total company's
capital is 12.7%, with shares at market value exceeding BRL1.5 billion.

BNDESPAR investment in ALL's capital, in May 2006, resulted from Brasil
Ferrovias' restructuring process in 2005.

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: May Disburse BRL7.7B in Loans to Power Sector
-------------------------------------------------------------
A spokesperson of Banco Nacional de Desenvolvimento Economico e Social
told Business News Americas that the bank could disburse as much as BRL7.7
billion in loans to the power sector this year.

BNamericas relates that Banco Nacional disbursed BRL3 billion through Dec.
18, 2006, for power projects.

The spokesperson said that the disbursement could reach BRL10 billion for
the power sector if federal authorities authorize the 6,450-megawatt
Madeira complex's environment impact study, BNamericas notes.

BNamericas underscores that Banco Nacional is also considering 39 other
power projects for funding.

The environmental clearance for the Madeira will be granted by the end of
the first quarter of 2007, which would allow the Brazilian federal
government to offer it in a power auction, BNamericas states.

According to Gazeta Mercantil, Banco Nacional is considering funding:

          -- the 1,087-megawatt Estreito,
          -- the 210-megawatt Serra do Facao, and
          -- the 181-megawatt Salto Pilao hydroelectric
             projects.

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/--


BENQ MOBILE: Sacks 310 Workers at Brazilian Plant
-------------------------------------------------
BenQ Mobile GmbH & Co. OHG. has dismissed about 310 workers at its Manaus
plant in Brazil in September and October 2006, Vlademir Santana, who leads
the Amazon wing of the electricians and metalworkers union, told Valor
Economico.

Mr. Santana told Business News Americas that the Manaus factory still has
450 workers.  BenQ Mobile recently recruited between 20 and 30 contractors
for the plant

According to BNamericas, the lay-offs spurred rumors on BenQ Mobile's
shutting down, particularly because they happened at the time when the
company sought for bankruptcy protection in Germany, where it is
headquartered.

However, Mr. Santana is positive that the Manaus plant can continue
running since BenQ Mobile succeeded in renegotiating contracts with
suppliers in Brazil, BNamericas notes.

Mr. Santana told BNamericas, "If we continue at the current pace of
production, I don't believe the Manaus unit will close."

A BenQ Mobile spokesperson confirmed to BNamericas that the bankruptcy
process in Germany doesn't directly affect the Manaus factory.

Meanwhile, some projects in the research and development center of BenQ
Mobile's troubled German unit were abandoned, the report says.

BNamericas underscores that in line with the bankruptcy procedure, BenQ
Mobile is altering its marketing strategy.

The spokesperson told BNamericas, "BenQ is focusing on high value, more
profitable handsets rather than more generic mobile phones."

The more profitable handsets are produced in lower volumes, which requires
fewer workers, BNamericas says, citing the spokesperson.

A BenQ Mobile insolvency administrator told Valor Economico that the
firm's office and factory in Germany would be closed down because no
bidders came to the unit's rescue by Dec. 31, 2006.

BenQ Mobile reported US$13 in global revenues last year.  Its Brazilian
unit was predicted to post BRL1.5 billion in revenues in 2006, Valor
Economico states.

BenQ Moile GmbH & Co. OHG. specializes in the manufacturing of computing,
communications, and consumer electronics devices.  Its principal products
include TFT LCD monitors, plasma TVs, scanners and printers, digital
cameras, projectors, CD/DVD rewriters, laptops, computer keyboards and
mice, digital audio players and mobile phones.  Three groups manage BenQ's
product lines: Computing Products Business Group, Digital Media Business
Group and BenQ Mobile Business Group.  The global head office is located
in Taoyuan, Taiwan, with Latin American headquarters in Miami, Florida.


CENTRAIS ELECTRICAS: Plans Expansion on International Arena
-----------------------------------------------------------
Aloisio Vasconcelos, the chief executive officer of Centrais Electricas
Brasileiras SA, told Business News Americas that the firm is eyeing
Central America, Chile, Colombia and Africa for its planned international
operations.

Centrais Electricas has started negotiating business opportunities in the
regions, BNamericas says, citing Mr. Vasconcelos.  Centrais Electricas is
in talks for:

          -- hydroelectric projects in Colombia,
          -- a project in Mozambique, and
          -- a transmission line in Chile.

BNamericas relates that Centrais Electricas also signed a memorandum of
understanding with South Korea's Kepco and China's Citic to seek out
business together.

Under the Brazilian law, Centrais Electricas can't operate outside Brazil,
BNamericas notes.  However, Mr. Vasconcelos is supporting a proposal to
change legislation to open the company to international operations.

Mr. Vasconcelos told BNamericas, "I have to decline politely when
proposals are made.  This is an opportunity lost to take Brazilian
suppliers abroad."

The report says that the proposal was made in 2005.  It requires
authorization from the presidential chief-of-staff's office before it can
be passed to congress.

Mr. Vasconcelos admitted to BNamericas, "I am not very happy about this.
All I can do is sit and wait for the government to send the bill to the
congress."

However, Centrais Electricas' subsidiaries like Furnas and Chesf are
already participating in projects outside Brazil.

Mr. Vasconcelos commented to BNamericas, "It would be better for
Eletrobras (Centrais Electricas) to go instead of its subsidiaries because
it has more bargaining power and better access to financing."

Centrais Electricas is prepared to start operating abroad.  It will
include in its 2007-11 strategic plan the possibility of budgeting
international operations if congress ratifies the bill, BNamericas says,
citing Mr. Vasconcelos.

"Eletrobras has 45 years of expertise in the construction of hydroelectric
power plants and has know-how in both alternating and direct current
transmission which is in demand worldwide," Mr. Vasconcelos told
BNamericas.

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: Reduces Contracted Energy from CIEN
---------------------------------------------------------
Companhia Paranaense de Energia aka COPEL purchased on
Dec. 14, 2006, 160 MW of average energy for the period from 2007 to 2014
from Centro de Investigaciones Economicas Nacionales or CIEN.  Both
parties decided on Jan. 3, 2007, to enter into an addendum to the Supply
Agreements of Firm and Electric Power # 001/99 and # 002/99, reducing from
400MW to 175 MW average, the total energy contracted until Dec. 31, 2007.

This agreement was made as a result of of ANEEL (Brazilian Electricity
Regulatory Agency) Resolution 224 as of
June 20, 2006, which no longer guaranteed energy to Centro de
Investigaciones Economicas Nacionales or CIEN and under the terms of
Resolution 294, as of Nov. 28, 2006, which guarantees Copel the recovery
of the energy amount negotiated with CIEN, through the participation at
Auction A-1 and other energy purchase mechanisms, preserving the company's
neutrality.

By force of this addendum, COPEL will reverse in the first quarter of
2007, approximately BRL100 million of the provision recorded for the
payment of pending items related to the agreement addendum.

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.


COMPANHIA SIDERURGICA: Reports Low Sales Growth Outside Brazil
--------------------------------------------------------------
Companhia Siderurgica Nacional's sales abroad have remained flat, Business
News Americas reports.

Companhia Siderurgica's exports increased 0.3% to US$726 million in the
first 11 months of 2006, compared with US$724 million in the same period
in 2005, Secex, the foreign trade ministry of Brazil, told BNamericas.

Meanwhile, Usinas Siderurgicas de Minas Gerais SA's export revenues
increased 42% through November 2006, compared with November 2005,
BNamericas relates.

Usinas Siderurgicas saw its exports rise in value to US$511 million
through November 2006, compared with US$360 million in November 2005.  Its
subsidiary, Cosipa, posted a 12% growth in foreign sales, bringing in
US$741 million in the first 11 months of 2006, BNamericas states.

                 About Usinas Siderurgicas

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

                About Companhia Siderurgica

Companhia Siderurgica Nacional is one of the lowest-cost steel
producers in the world, which is a result of its access to
proprietary, high-quality iron ore (at the Casa de Pedra mine);
self-sufficiency in energy; streamlined facilities; and
logistics advantages.  This is in addition to the group's strong
market position in the fairly concentrated steel industry in
Brazil.

                        *    *    *

As reported on Nov. 21, 2006, Standard & Poor's Ratings Services placed
its 'BB' corporate credit rating on Brazil-based steel maker Companhia
Siderurgica Nacional on Credit Watch with negative implications after the
company announced its intention to acquire Corus Group Plc.


COSAN INDUSTRIA: Moody's Rates US$300MM Senior Notes at Ba2
-----------------------------------------------------------
Moody's Investors Service assigned a Ba2 foreign currency rating to Cosan
Industria e Comercio's proposed issuance of approximately US$300 million
guaranteed senior unsecured notes due in 2017.  Simultaneously, Moody's
affirmed Cosan's Ba2 global local currency corporate family rating. The
ratings outlook is stable.

The proposed notes will be issued by Cosan Finance Limited, a wholly owned
subsidiary of Cosan based in the Cayman Islands, but unconditionally and
irrevocably guaranteed by Cosan and Usina da Barra S.A -- Acucar e Alcool.
The net proceeds will be used for capital expenditures, including the
co-generation projects, the expansion of facilities and the purchase of
equipment and for the payment of a portion of indebtedness.  Cosan also
intends to use part of the proceeds for possible future acquisitions and
for general corporate purposes, including working capital needs.

The assigned Ba2 foreign currency rating is based on Cosan's Ba2 global
local currency scale corporate family rating which considers the 22 rating
factors outlined in our Global Natural Product Processors -- Protein and
Agriculture Methodology.

"Cosan's Ba2 rating continues to be supported by the company's dominant
market position as the largest producer of sugar and ethanol in Brazil and
leading position in the world, Brazil's continued solid fundamentals and
strong competitive position for ethanol and sugar production, combined
with the pressures for currently regulated markets such as Europe to
deregulate gradually," says Moody's analyst Soummo Mukherjee.  "However,
the rating continue to be constrained primarily by the risk of volatility
in earnings and cash flow inherent in its commodity-oriented business and
the event risk from the company's acquisitive growth strategy," he adds.

The stable outlook reflects Moody's expectation that the company will
maintain credit metrics consistent with the Ba2 category, solid liquidity,
and that leverage will modestly improve over the next twelve months due to
maintenance of debt levels combined with ongoing increases in operating
performance.

Cosan's rating could be raised if the company is able to increase its
scale and product diversification, reducing the level of correlation
between sugar and ethanol. An improvement in the ratings or outlook could
also result from a significant increase in the percentage of total world
sugar production that trades in the unregulated markets. Quantitatively,
positive rating momentum would require the company to generate free cash
flow to debt in the range of 9-12% (currently slightly negative) and EBITA
/ Interest in the 4-5 x range on a sustainable basis (based on Moody's
standard definitions and analytic adjustments).

Cosan's current ratings could come under negative pressure if world sugar
prices were to drop significantly for a prolonged period of time and
adversely affected the company's profitability; if the Central South
region of Brazil, Cosan's only area of production, suddenly experienced a
material adverse event such as a natural catastrophe or a prolonged
drought; or if Cosan's acquisitive strategy led to a deterioration of
current credit metrics.  Quantitatively, Cosan's ratings would come under
negative pressure if free cash flow remained negative at the end of its FY
2007 and/or if Debt / EBITDA increased to above 4 x (excluding PESA debt
and also according to Moody's standard definitions and analytic
adjustments).

Moody's has reviewed some preliminary legal documentation for the proposed
notes issuance transaction.  The rating assumes that there will be no
material variation from the draft documents reviewed and that all legal
agreements are legally, valid, binding and enforceable.

Moody's assigned this rating:

   --US$300 million of guaranteed senior unsecured notes due in
     2017: Ba2

Moody's affirmed these ratings:

   -- Global local currency scale corporate family rating: Ba2;
   -- Brazilian national scale corporate family rating: A1.br;
      and
   -- Foreign currency senior unsecured rating: Ba2

Cosan S.A. Industria e Comercio, headquartered in Sao Paulo, Brazil, is
the third largest sugar producer and the second largest ethanol producer
in the world.  In 2006/2007 it crushed more than 36 million tons of sugar
cane in seventeen mills located in the Central South region of Brazil.
During the six-month period ended on Oct. 31, 2006, Cosan presented sugar
sales of 1.7 million tons and ethanol sales of 629 million liters.


DURA AUTO: Court Approves Upper Cumberland & Lawrenceburg Pacts
---------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District
of Delaware granted DURA Automotive Systems, Inc. and its debtor
affiliates' agreements with Upper Cumberland Electric Membership
Corporation and Lawrenceburg Utility Systems.

The Debtors entered into separate Court-approved agreements with Upper
Cumberland and Lawrenceburg.

Pursuant to the Adequate Protection Agreement, the Debtors will make
monthly payments to the utility providers beginning on the first business
day of December 2006, and continuing on the first business day of each
subsequent month with each monthly payment until the outstanding amount is
paid in full:

                                Minimum          Outstanding
      Utility Provider       Monthly Payment       Amounts
      ----------------       ---------------     -----------
      Upper Cumberland                US$5,307         US$15,918
      Lawrenceburg Utility              35,677           214,525

Upper Cumberland and Lawrenceburg Utility agree that the terms of the
Agreement provide adequate assurance of payment in accordance with Section
366(c) of the Bankruptcy Code.

The Court also approved the Debtors' stipulation with Quest Energy, LLC,
resolving Quest's objection to the Debtors' motion.  Court papers did not
indicate the terms of the Stipulation.

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


DURA AUTOMOTIVE: Seeks Court Nod for Lease Rejection Procedures
---------------------------------------------------------------
DURA Automotive Systems, Inc., and its debtor affiliates, pursuant to
Sections 365 and 554 of the Bankruptcy Code, seek the approval of the U.S.
Bankruptcy Court for the District of Delaware for an expedited procedure
for rejecting executory contracts and unexpired leases of personal and
non-residential real property.

Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington,
Delaware, relates that the Debtors are in the process of consolidating
their operations, which may require exiting non-core and unprofitable
locations, returning unnecessary equipment, and terminating burdensome
contracts in order to minimize costs and strengthen the businesses.

In connection therewith, the Debtors anticipate that, in a very short
time, they will seek to reject a number of real property leases, personal
property leases, and executory contracts.  Absent expedited procedures for
managing this process, the Debtors will inevitably suffer delays and
resulting administrative costs, which could be significant, Mr. Collins
avers.

The Debtors request that these procedures be approved in connection with
the rejection of any executory contract, lease, sublease, or interest in
the lease or sublease during the course of their bankruptcy proceedings:

    a. The Debtors will file a notice to reject any executory
       contract, lease or sublease, or interest in the lease or
       sublease, pursuant to Section 365 and will serve the
       Notice, as well as the deadlines and procedures for
       filing objections to the Notice, via overnight delivery
       service upon:

         (i) the United States Trustee;

        (ii) counsel to the agent to the Debtors' prepetition
             secured lenders;

       (iii) counsel to the agent to the Debtors' postpetition
             secured lenders;

        (iv) counsel to the Official Committee of Unsecured
             Creditors;

         (v) the contract counter-party or landlord(s) affected
             by the Notice, and

        (vi) any other parties-in-interest to the executory
             contract or lease, including subtenants, if any,
             sought to be rejected by the Debtors.

       If the Notice is issued by the Debtors prior to the
       effective date of a plan of reorganization, the affected
       executory contract, lease, sublease or interest in the
       lease or sublease will be deemed to be subject to a
       motion to reject for all purposes.

    b. The Notice will set forth this information, to the best
       of the Debtors' knowledge, as applicable:

         (i) the street address of the real property underlying
             the lease or sublease, the interest in the personal
             property lease or sublease or the type of executory
             contract which the Debtors seek to reject;

        (ii) the Debtors' monthly payment obligation, if any,
             under the contract, lease or sublease or interest
             in the lease or sublease;

       (iii) the remaining term of the contract, lease or
             sublease or interest in the lease or sublease;

        (iv) the name and address of the contract counterparty,
             landlord or subtenant;

         (v) a general description of the terms of the executory
             contract or lease; and

        (vi) a disclosure describing the procedures for fling
             objections, if any.

    c. Should a party-in-interest object to the proposed
       rejection by the Debtors of an executory contract, lease
       or sublease, or interest in the lease or sublease, the
       party must file and serve a written objection so that the
       objection is filed with the Court and is actually
       received by these parties no later than 10 days after the
       date the Debtors serve the Notice:

         (i) counsel to the Debtors: Kirkland & Ellis LLP, 200
             East Randolph Drive, Chicago, Illinois 60601, Attn:
             Ryan Blaine Bennett, Esq., and Richards, Layton &
             Finger, One Rodney Square, 920 N, King Street,
             Wilmington, Delaware 19801, Attention: Daniel J.
             DeFranceschi, Esq.;

        (ii) counsel to the Creditors Committee; and

       (iii) the Office of the United State Trustee.

    d. Absent an objection, the rejection of the executory
       contract, lease or sublease, or interest in the lease or
       sublease, will become effective 10 days from the date the
       Notice was served on the Service Parties without further
       notice, hearing or order of the Court; provided, however,
       that with respect to leases or subleases for non-
       residential real property, the rejection will become
       effective on the later of:

         (x) the Rejection Date or

         (y) the date the Debtors unequivocally relinquished
             control of the premises to the affected landlord by
             turning over keys or "key codes" to the affected
             landlord.

    e. If a timely objection is filed that cannot be resolved,
       the Court will schedule a hearing to consider the
       objection only with respect to the rejection of any
       executory contract, lease or sublease, or interest in the
       lease or sublease, as to which an objection is properly
       filed and served.  If the Court upholds the objection and
       determines the effective date of rejection of the
       executory contract, lease or sublease, or interest in the
       lease or sublease, that date will be the rejection date.
       If the objection is overruled or withdrawn or the Court
       does not determine the date of rejection, the rejection
       date of the lease, sublease or interest will be deemed to
       have occurred on the Rejection Date or NRP Lease
       Rejection Date, as applicable.

    f. If the Debtors have deposited funds with a lessor or
       contract counterparty as a security deposit or other
       arrangement, the lessor or contract counterparty may not
       set-off for otherwise use the deposit without the prior
       authority of the Court.

    g. With respect to any personal property of the Debtors
       located at any of the premises subject to any Notice, the
       Debtors will remove the property prior to the expiration
       of the period within which a party must file and serve a
       written objection.  If they determine that the value of
       the property at a particular location has a de minimis
       value or cost of removing the property exceeds the
       value of the property, the Debtors will generally
       describe the property in the Notice and, absent a timely
       objection, the property will be deemed abandoned pursuant
       to Section 554, as is, where is, effective as of the date
       of the rejection of the underlying unexpired lease.

The Debtors further request that counterparties to executory contracts,
leases or subleases, or interests in the leases and subleases that are
rejected pursuant to the Rejection Procedures be required to file a proof
of claim relating to the rejection of the executory contract, lease or
sublease, or interest in the lease or sublease, if any, by the later of:

   (a) the claims bar date established in the Chapter 11 cases,
       if any; and

   (b) 30 days after the Rejection Date.

The Debtors believe that the Rejection Procedures provide a fair and
efficient manner for rejecting contracts, leases, subleases, and interests
in leases and subleases.

Mr. Collins asserts that the Rejection Procedures will enable the Debtors
to minimize their unnecessary postpetition obligations while also
providing parties-in-interest with adequate notice of lease and contract
rejections and an opportunity to object to the rejection within a
definitive time period.

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


DRESSER-RAND: Discloses Changes in Senior Management Team
---------------------------------------------------------
Dresser-Rand Group Inc. disclosed that the company will make changes in
responsibilities for three members of its senior management team.

"We believe that the actions we are announcing are important to continue
to develop our successful leadership team, as rotational assignments are a
fundamental part of our development efforts, said Dresser-Rand's President
and Chief Executive Officer, Vincent R. Volpe, Jr.  These changes will
occur during the first quarter of this year to allow for orderly
transition in each area."

Jean-Francois Chevrier, currently Vice President and General Manager,
European Operations, will become Vice President and General Manager, North
American Operations.  Mr. Chevrier will have responsibility for the
Burlington Iowa, Olean, Wellsville, and Painted Post, New York operations,
including engineering and drafting centers.  Additionally, he will have
responsibility for the global Research and Development Engineering
organization.  His sixteen years experience with Dresser-Rand includes
operations and engineering positions for Turbo Products, including
Director of Special Projects in Olean, New York. Prior to joining
Dresser-Rand, he worked in operations management for a subsidiary of
Peugeot in its military and aerospace equipment businesses.  Mr. Chevrier
has a BSME from Tarbes University in France.  He and his wife
Marie-Christine will relocate to Olean, New York.

Walter J. Nye, currently Executive Vice President, Product Services
Worldwide, will assume responsibility for the European Served Area as the
Vice President and General Manager.  Mr. Nye, who brings over 31 years of
experience in Dresser-Rand, will have responsibility for the German,
Norwegian, and French operations.  Additionally, he will assume
responsibility for Field Operations, New Unit Sales, and Product Services
Sales organizations in Europe. His prior experience with Dresser-Rand
includes positions as Controller, Turbo Products Division, President of
the Services Division and a variety of management positions in accounting
and operations.  Mr. Nye has a BA from St. Bonaventure University.  He and
his wife Michele will relocate to Le Havre, France.

Christopher Rossi, currently Vice President and General Manager, North
American Operations, will become Executive Vice President, Product
Services Worldwide, assuming responsibility for all aftermarket parts and
services sales.  Mr. Rossi will also have responsibility for the Controls
Strategic Business Unit, and Dresser-Rand's merger and acquisition
initiatives Over the past 20 years with Dresser-Rand, Mr. Rossi has held
various leadership positions within Dresser-Rand, including General
Manager, Painted Post Operations, Vice President, Supply Chain Management
Worldwide and several operations and engineering positions within the
Reciprocating Compressor Division.  Mr. Rossi has an MBA in Corporate
Finance from the University of
Rochester, and a BSME from Virginia Tech. He and his wife Georgia and
their two children will relocate to Houston, Texas.

Dresser-Rand is among the largest suppliers of rotating
equipment solutions to the worldwide oil, gas, petrochemical,
and process industries.  It operates manufacturing facilities in
the United States, France, Germany, Norway, India, and Brazil,
and maintains a network of 24 service and support centers
covering 105 countries.

                        *    *    *

Standard & Poor's Ratings Services raised on Sept. 13, 2006, its
corporate credit rating on rotating equipment maker Dresser-Rand
Group Inc. to 'BB-' from 'B+' and revised the outlook on the
rating to stable from positive.


FORD MOTOR: Investing US$1.02 Billion in Brazil Through 2011
------------------------------------------------------------
Ford Motor Co. told the Associated Press that it will invest US$1.02
billion in its Brazilian operations through 2011.

AP relates that the investment includes the purchase of Troller Veiculos
Especiais SA, an off-road vehicle maker.

Ford Motor said that it will buy Troller Veiculos, an off-road vehicle
maker, Reuters notes.  The company did not say how much it would spend for
Troller Veiculos.

Dominic DiMarco, Ford Motor's executive director for Canada and South
America, said in a statement that the investments also include the BRL300
million disclosed in 2005 to develop a new product in one suburb of Sao
Paulo and expansion production in another.

The investments would be in addition to about US$139 million the company
will spend on product development and capacity expansion at a Sao Paulo
plant, Reuters says, citing Ford Motor.

Mr. DiMarco told AP that Ford Motor said the investment means that the
firm is confident in the economy of Brazil.

Ford Motor has regained market share in Brazil in recent years due to a
group of new small cars designed in the country and aimed at buyers in the
developing world, Reuters states.

                    About Troller Veiculos

Headquartered in Ceara, Troller Veiculos Especiais SA was founded in 1997.
The firm produces about 100 vehicles per month of two off-road models:
the T4 and a pickup called the Pantanal.

                      About Ford Motor

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

                        *    *    *

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

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

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


JBS SA: Commences US$275MM 9.375% Sr. Notes Consent Solicitation
----------------------------------------------------------------
JBS SA has commenced a solicitation to seek consents from the holders of
its US$275,000,000 9.375% Senior Notes due 2011 and its US$300,000,000
10.50% Senior Notes due 2016 in order to:

   (1) allow it to transfer all of the assets and certain
       related liabilities of its hygiene and cleaning products
       division, as well as certain other assets that are not
       directly related to its core beef business, to its newly
       created affiliate, Flora Produtos de Higiene e Limpeza
       Ltda., a limited liability company organized under the
       laws of Brazil and a wholly- owned subsidiary of J&F
       Participacoes Ltda., a limited liability company
       organized under the laws of Brazil and the parent company
       of JBS, and

   (2) add a wholly-owned subsidiary to be organized by JBS as a
       limited liability company in the Cayman Islands -- JBS
       Finance, as a co-issuer of the Notes.  JBS intends to
       effect the Flora Transaction as part of a corporate
       reorganization that it expects will further streamline
       its corporate structure and to focus its operating
       resources and activities on its core beef business.

In connection with the Flora Transaction and the addition of JBS
Finance as a co-issuer of the Notes, JBS, JBS Finance, Flora and the
Trustee will enter into supplemental indentures pursuant to which:

   (1) Flora will jointly and severally guarantee all of JBS
       and JBS Finance's obligations under the Notes,

   (2) JBS Finance will become a co-issuer of the Notes and as
       such will be jointly and severally liable, together with
       JBS, for all amounts due under the Notes and

   (3) JBS Finance and Flora will agree to be bound by certain
       restrictive covenants, subject to certain qualifications
       set forth therein.

The Flora Guarantees will terminate and the restrictive covenants
applicable to Flora will no longer be applicable, in each case
concurrently with an increase in JBS' total share capital and additional
paid-in capital in an aggregate amount not less than the reduction of the
total shareholders' equity of JBS as a direct result of the Flora
Transaction, but only to the extent that JBS receives written confirmation
that the ratings of the Notes by both Standard & Poor's Ratings Group and
Moody's Investor Service, Inc., in effect immediately prior to the release
of the Flora Guarantee will not be downgraded as a result of such release.

Details of the Consent Solicitation are contained in JBS' Solicitation
Statement, dated Jan. 5, 2007, and the related Consent Letter.  The
Consent Solicitation will expire at 5:00 pm (New York City time) Jan. 23,
2007, unless extended.

JBS will pay holders of Notes that deliver their Consent Letters and
consent to the proposed amendments to the indentures related to the Notes

   (1) by 5:00 p.m., New York City time, on Jan. 16, 2007,
       unless extended, a cash payment equal to US$2.50 per
       US$1,000 principal amount of Notes in respect of which
       The Consent Letters have been delivered or

   (2) on or prior to 5:00 p.m., New York City time, on
       Jan. 23, 2007, unless extended, will receive a cash
       payment equal to US$1.50 per US$1,000 principal amount of
       Notes in respect of which such Consent Letters have been
       delivered, in each case assuming receipt of the required
       consents and the satisfaction of the terms and conditions
       described in the Solicitation Statement.  Payment of any
       the fee will be made within five business days following
       the expiration date of the Consent Solicitation.

Headquartered in Sao Paulo, Brazil, JBS is the fourth largest beef company
in the world in terms of live cattle slaughtering capacity and the largest
beef processor and exporter in Brazil, Argentina and Latin America.  With
operations in Brazil and Argentina, JBS produces, prepares, packages and
delivers fresh, chilled and processed beef and beef by-products to
customers both in Brazil and abroad.  The group also manufactures and
sells hygiene and cleaning products.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 8, 2007, Moody's is
taking no action at this stage in relation to JBS SA's B1 global local
currency corporate family rating and B1 senior unsecured rating or stable
rating outlook following the company's announced plans to take a series of
steps as part of a corporate reorganization aimed to further streamline
its corporate structure and to focus JBS's operations on its core beef
business.


JBS SA: S&P Says Ratings Unaffected by Proposed Spin-Off Plan
-------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'B+' long-term corporate
credit rating on JBS S.A. will not be affected by the company's proposed
spin-off of its hygiene and cleaning unit.  JBS proposes to transfer all
assets and liabilities of its hygiene and cleaning unit, as well as
certain other assets that are not directly related to its core beef
business, to a recently created company, Flora Produtos de Higiene e
Limpeza Ltda (Flora; not rated), which will be controlled by J&F
Participacoes Ltda., the same holding company that controls JBS.

Importantly, Flora will be guarantor of the combined US$575 million notes
issued by JBS, preserving the original structure of the notes.  However,
Standard & Poor's understands that the effect of the spin-off on JBS'
consolidated results will be minimal due to the relatively small scale and
low cash-flow generation presented by its hygiene and cleaning unit.

Meanwhile, JBS will not be allowed to provide support to Flora, which
reduces the risks of potential cash drain from its food operations (apart
from dividend distributions to shareholders that could be directed to
Flora, which are subject to existing covenants of the company's notes).


PETROLEO BRASILEIRO: Keppel-Fels May Win P-55 Project Auction
-------------------------------------------------------------
A consortium led by Keppel-Fels presented the lowest price for the
construction of the P-55 semi-submersible platform for Petroleo Brasileiro
SA, at US$1.65 billion, Valor Economico reports.

Business News Americas relates that the P-55 is expected to have capacity
to produce 180,000 barrels per day from the deepwater Roncador field in
the Campos basin.  The P-55 will start operating in 2011.

According to BNamericas, the Atlantico Sul consortium offered US$1.81
billion.

Valor Economico notes that the offers were opened during a public ceremony
in Rio de Janeiro.

A spokesperson of Petroleo Brasileiro told BNamericas that the firm's
tender commission is studying the offers.

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: Launches Exchange Offer of Notes
-----------------------------------------------------
Petroleo Brasileiro SA said in a statement that it has started an exchange
offer of old notes for new ones through PIFCo, its international finance
unit.

Business News Americas relates that the debt swap operation involves the
exchange of five series of old notes for US$500 million of global notes
that mature in 2016.  The exchange will end on Feb. 1.

According to BNamericas, Petroleo Brasileiro wants to remove US$1.76
billion of debt maturing 2008-14 from the market.  The global notes pay a
yearly coupon of 6.125%.

Petroleo Brasileiro said in a statement that the operation is being
arranged by Morgan Stanley and is managed by Swiss bank UBS Securities.

BNamericas underscores that Petroleo Brasileiro has been restructuring and
reducing its debt, taking advantage of US$20 billion in cash reserves.
The firm conducted last year debt and share buyback operations using its
cash reserves.

Petroleo Brasileiro's net debt decreased to BRL19.6 billion in September
2006, from BRL20.8 billion in 2005, according to company information.

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 SA: Reaches 47.8% Average Domestic Market Share in 2006
-----------------------------------------------------------
TAM SA disclosed operating data for December 2006, as disclosed by the
National Civil Aviation Agency or ANAC.

According to ANAC, TAM registered a 23.6% growth in domestic RPK
(demand) compared to the same period last year, and a 23.7% increase in
domestic ASK (supply).  In December, market demand increased by 8.1% and
market supply increased by 12.2%. TAM registered a domestic market share
(RPK) of 49.1%, 6.1 p.p. growth compared to the same period in 2005, but a
reduction when compared to November 2006. This reduction was due to the
harp increase in total market ASKs, diluting TAM's participation to 47.6%
versus 51.0% in November 2006).  AM's domestic load factor was 72.3%,
higher than the 70.1% market average.

In the international market, TAM registered 60.3% growth in RPK and 59.1%
in ASK, compared to December 2005. The company reached a market share of
60.6%, representing 39.3 p.p. growth year-on-year. TAM reached a 75.2%
load factor, higher than the market average 70.6%.

The total scheduled yield for 4Q06 decreased compared with 4Q05,
consistent with our strategy to stimulate demand via competitive pricing.

Operating data              Dec-2006         Dec-2005     Var. %

Domestic Market
ASK (millions) - Supply     2,508            2,028        23.7%
RPK (millions) - Demand     1,813            1,468        23.6%
Load Factor                 72.3%            72.4%     (0.1) pp
Market share                 49.1%            43.0%      6.1 pp

International Market
ASK (millions) - Supply       946              594        59.1%
RPK (millions) - Demand       711              444        60.3%
Load Factor                  75.2%            74.7%      0.6 pp
Market share                 60.6%            21.3%     39.3 pp

Operating data                4Q06             4Q05       Var. %

Domestic Market
ASK (millions) - Supply     7,299            5,791        26.0%
RPK (millions) - Demand     5,158            4,073        26.6%
Load Factor                  70.7%            70.3%      0.3 pp
Market share                 50.3%            42.1%      8.2 pp

International Market
ASK (millions) - Supply     2,573            1,700        51.4%
RPK (millions) - Demand     1,896            1,290        46.9%
Load Factor                  73.7%            75.9%    (2.2) pp
Market share                 60.0%            20.9%     39.1 pp

Operating data           Jan - Dec 06     Jan - Dec 05    Var. %

Domestic Market
ASK (millions) - Supply    26,044           20,939        24.4%
RPK (millions) - Demand    19,042           14,637        30.1%
Load Factor                  73.1%            69.9%      3.2 pp
Market share                 47.8%            41.3%      6.5 pp

International Market
ASK (millions) - Supply     8,660            6,334        36.7%
RPK (millions) - Demand     6,653            4,713        41.2%
Load Factor                  76.8%            74.4%      2.4 pp
Market share                 37.3%            18.4%     18.9 pp

TAM SA -- http://www.tam.com.br/-- operates regular flights to
47 destinations throughout Brazil.  It serves 72 different
cities in the domestic market through regional alliances.
Additionally, it maintains code-share agreements with
international airline companies that allow passengers to travel
to a large number of destinations throughout the world.  TAM was
the first Brazilian airline company to launch a loyalty program.
The program has over 3.3 million subscribers and has awarded
more than 3.6 million tickets.

As reported in the Troubled CompanY Reporter on Jan. 5, 2007, Fitch
Ratings Services has assigned these ratings to TAM Linhas Aereas SA:

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


USINAS SIDERURGICAS: Posts Low Sales Growth Outside Brazil
----------------------------------------------------------
Usinas Siderurgicas de Minas Gerais SA's export revenues increased 42%
through November 2006, compared with November 2005, Business News Americas
reports.

BNamericas relates that Usinas Siderurgicas saw its exports rise in value
to US$511 million through November 2006, compared with US$360 million in
November 2005.

Cosipa, Usinas Siderurgicas' unit, posted a 12% growth in foreign sales,
bringing in US$741 million in the first 11 months of 2006, according to
BNamericas.

Meanwhile, Companhia Siderurgica Nacional's sales abroad have remained
flat, BNamericas states.

Companhia Siderurgica's exports increased 0.3% to US$726 million in the
first 11 months of 2006, compared with US$724 million in the same period
in 2005, Secex, the foreign trade ministry of Brazil, told BNamericas.

                 About Companhia Siderurgica

Companhia Siderurgica Nacional is one of the lowest-cost steel
producers in the world, which is a result of its access to
proprietary, high-quality iron ore (at the Casa de Pedra mine);
self-sufficiency in energy; streamlined facilities; and
logistics advantages.  This is in addition to the group's strong
market position in the fairly concentrated steel industry in
Brazil.

                  About Usinas Siderurgicas

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

                        *    *    *

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




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


495 LEASING: Shareholders to Gather for Jan. 11 Final Meeting
-------------------------------------------------------------
495 Leasing 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 liquidator can be reached at:

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


AHR RIVER: Liquidator to Present Wind Up Accounts on Jan. 11
------------------------------------------------------------
AHR River Investments, 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 liquidator can be reached at:

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


ASPEN CREEK: Last Day for Proofs of Claim Filing Is on Jan. 11
--------------------------------------------------------------
Aspen Creek Holdings Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidators:

          Teo Pok Zin
          Charles Adams, Ritchie & Duckworth
          P.O. Box 709GT, Zephyr House
          Mary Street, 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.

Aspen Creek's shareholders agreed on Nov. 17, 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:

          Richard D. Fear
          Charles Adams, Ritchie & Duckworth
          P.O. Box 709GT, Zephyr House
          Mary Street, George Town
          Grand Cayman, Cayman Islands
          Tel: 949-4544
          Fax: 949-8460


BOLERO LEASING: Final Shareholders Meeting Is Set for Jan. 11
-------------------------------------------------------------
Bolero Leasing 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 liquidator can be reached at:

          Mike Hughes
          Maples Finance Ltd.
          P.O. Box 1093,George Town
          Grand Cayman, Cayman Islands


BRANDERVIEW INTERNATIONAL: Final Shareholders Meeting Is Jan. 11
----------------------------------------------------------------
Branderview International Ltd.'s final shareholders meeting will be on
Jan. 11, 2007, at:

          Smith Barney Private Trust Co. Ltd.
          CIBC Financial Centre, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

          Buchanan Ltd.
          P.O. Box 1170, Grand Cayman
          KY1-110 Cayman Islands


DENTBLANCHE FINANCE: Final General Meeting Is Set for Jan. 11
-------------------------------------------------------------
Dentblanche Finance Ltd.'s final shareholders meeting will be on Jan. 11,
2007, at:

          Maples Finance Center 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 liquidator can be reached at:

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


GULLIVER LEASING: Final Shareholders Meeting Is Set for Jan. 11
---------------------------------------------------------------
Gulliver Leasing 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 liquidator can be reached at:

          Mike Hughes
          Maples Finance Ltd.
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands


LONGHORN CLO: Shareholders to Convene for Jan. 11 Final Meeting
---------------------------------------------------------------
Longhorn CLO IV 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 liquidator can be reached at:

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


MARATHON PETROLEUM: Proofs of Claim Filing Deadline Is Jan. 11
--------------------------------------------------------------
Marathon Petroleum Denmark Ltd.'s creditors are required to submit proofs
of claim by Jan. 11, 2006, to the company's liquidators:

          Yvonne Kunetka
          Marathon Oil Co.
          5555 San Felipe Road
          Houston, Texas, 77056-2723, USA

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.

Marathon Petroleum's shareholders agreed on Nov. 28, 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:

          Ian Gobin
          87 Mary Street, George Town
          Grand Cayman KY1-9001, Cayman Islands


MARATHON POWER: Proofs of Claim Filing Is Until Jan. 11
-------------------------------------------------------
Marathon Power Epsilon Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2006, to the company's liquidators:

          Yvonne Kunetka
          Marathon Oil Co
          5555 San Felipe Road
          Houston, Texas, 77056-2723, USA

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.

Marathon Power's shareholders agreed on Nov. 21, 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:

          Ian Gobin
          Walkers, Walker House
          87 Mary Street George Town
          Grand Cayman KY1-9001 Cayman Islands


MARATHON POWER FINANCE: Proofs of Claim Must be Filed by Jan. 11
----------------------------------------------------------------
Marathon Power Finance Co. Ltd.'s creditors are required to submit proofs
of claim by Jan. 11, 2006, to the company's liquidators:

          Yvonne Kunetka
          Marathon Oil Co.
          5555 San Felipe Road
          Houston, Texas, 77056-2723, USA

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.

Marathon Power's shareholders agreed on Nov. 21, 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:

          Ian Gobin
          Walkers, Walker House
          87 Mary Street, George Town
          Grand Cayman KY1-9001, Cayman Islands
          Tel: (345) 814 4604
          Fax: (345) 949 7886


MARATHON POWER GHANA: Proofs of Claim Must be Filed by Jan. 11
--------------------------------------------------------------
Marathon Power Ghana Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidators:

          Yvonne Kunetka
          Marathon Oil Co.
          5555 San Felipe Road
          Houston, Texas, 77056-2723, USA

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.

Marathon Power's shareholders agreed on Nov. 21, 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:

          Ian Gobin
          Walkers, Walker House
          87 Mary Street, George Town
          Grand Cayman KY1-9001, Cayman Islands
          Tel: (345) 814 4604
          Fax: (345) 949 7886


MARATHON PIPELINE: Proofs of Claim Must be Filed by Jan. 11
-----------------------------------------------------------
Marathon Pipeline Peru Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidator:

          Yvonne Kunetka
          Marathon Oil Co.
          5555 San Felipe Road
          Houston, Texas, 77056-2723, U.S.A.

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.

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

Parties-in-interest may contact:

          Ian Gobin
          Walkers, Walker House
          87 Mary Street, George Town
          Grand Cayman KY1-9001, Cayman Islands
          Tel: (345) 814 4604
          Fax: (345) 949 7886


MASTR CI-5: Shareholders to Gather for Final Meeting on Jan. 11
---------------------------------------------------------------
Mastr CI-5 Ltd.'s final shareholders meeting will be on
Jan. 11, 2007, at:

          Maples Finance Ltd.
          P.O. Box 1093, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


NATS R-27: Invites Shareholders for Final Meeting on Jan. 11
------------------------------------------------------------
Nats R-27 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 liquidator can be reached at:

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


PARMALAT SPA: Court Orders CEO to Return OCC Documents to BofA
--------------------------------------------------------------
The Hon. Lewis A. Kaplan of the U.S. Southern District of New York ordered
Dr. Enrico Bondi, Chief Executive of Parmalat S.p.A., to return to Bank of
America all copies of the five Office of the Comptroller of
Currency-related documents BofA inadvertently produced and is precluded
from using them, or the information they contain, in any way.

Judge Kaplan stated that the Court is assuming the existence or the
probable applicability of a bank examination privilege asserted by the
Office of the Comptroller of Currency.  "The difficulty, however, is that
the horse is out of the barn."

Judge Kaplan noted that the documents, apart from the five that were
produced by Bank of America, have been made available by Italian
authorities to the parties and to 65,000 others.  "In the absence of any
evidence implicating Dr. Enrico Bondi or any of the litigants in the
Italian government's seizure and thus its invasion of the privilege, it is
impossible to see how preventing Dr. Bondi from using them would further
the OCC's interest in fostering candid communication with the agency and
between the OCC and the banks it supervises."

According to Judge Kaplan, all involved in the process must understand
that there always is a risk that otherwise privileged documents will
become public.  Legal privileges rarely can protect against theft, seizure
by foreign governments, and a host of other contingencies.

Judge Kaplan, nevertheless, clarifies that the BofA documents are another
matter.  He said that the inadvertent production "of a privileged document
does not waive the privilege unless the producing party's conduct was so
careless as to suggest that it was not concerned with the protection of
the asserted privilege."

BofA has submitted a declaration that demonstrates the care taken to avoid
that production and the steps were adequate.

Hence, Judge Kaplan granted Dr. Bondi's request to retain and use
OCC-related documents and testimony with respect to the documents seized
by Italian authorities and the deposition already taken.

Dr. Bondi's request is, however, denied in all other respects.

            BofA Wants Bondi's Complete Answers

Bank of America asked the Court to compel Dr. Bondi to provide complete
answers to its first set of interrogatories, which was served on Sept. 25,
2006.

Daniel A. McLaughlin, Esq., at Sidley Austin LLP, in New York, relates
that in his complaint, Dr. Bondi alleges that "Bank of
America's transactions with Parmalat were knowingly designed to
assist Parmalat corrupt managers in their looting schemes" and
that BofA's transactions with Parmalat "provided no economic
benefit to Parmalat."

In light of the allegations, BofA seeks factual information
concerning:

   (1) the amounts allegedly looted by Parmalat insiders;

   (2) the flow of funds from Parmalat's transactions with BofA
       that allegedly tie the funds to the looting; and

   (3) Dr. Bondi's computation of damages, which is allowed by
       Rule 33.3 of the Local Rules of the U.S. District Court
       for the Southern District of New York.

Mr. McLaughlin told the Court that Dr. Bondi refuses to provide meaningful
responses concerning any of the basic issues that are central to his
Complaint.  Complete and thorough responses to BofA's interrogatories are
the most practical method through which BofA will be able to gain the
information sought,
Mr. McLaughlin added.

Dr. Bondi's reference to the documents that he and other parties have
produced in the present litigation, without identifying the specific
documents on which he relies, is a wholly insufficient interrogatory
response, Mr. McLaughlin said.

Moreover, Mr. McLaughlin noted that Dr. Bondi's failure to provide
sufficient responses severely prejudices BofA.  Dr. Bondi should not be
permitted to sandbag BofA by failing to provide any substantive response
to the interrogatories until after the close of discovery.

                       About Parmalat

Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that can be
stored at room temperature for months.  It also has 40- some brand product
line, which includes yogurt, cheese, butter, cakes and cookies, breads,
pizza, snack foods and vegetable sauces, soups and juices.

The Company's U.S. operations filed for chapter 11 protection on Feb. 24,
2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary Holtzer, Esq., and Marcia
L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors.
When the U.S. Debtors filed for bankruptcy protection, they reported more
than
US$200 million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate petitions for
Extraordinary Administration before the Italian Ministry of Productive
Activities and the Civil and Criminal District Court of the City of Parma,
Italy on Dec. 24, 2003.  Dr. Enrico Bondi was appointed Extraordinary
Commissioner in each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268,
in the United States Bankruptcy Court for the Southern District of New
York.

Parmalat has three financing arms: Parmalat Capital Finance Limited, Dairy
Holdings, Ltd., and Food Holdings, Ltd.  Dairy Holdings and Food Holdings
are Cayman Island special-purpose vehicles established by Parmalat SpA.
The Finance Companies are under separate winding up petitions before the
Grand Court of the Cayman Islands.  Gordon I. MacRae and James Cleaver of
Kroll (Cayman) Limited serve as Joint Provisional Liquidators in the
cases.  On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the Southern
District of New York.  In May 2006, the Cayman Island Court appointed
Messrs. MacRae and Cleaver as Joint Official Liquidators.  Gregory M.
Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I.
Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.

The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases.

(Parmalat Bankruptcy News, Issue No. 83; Bankruptcy Creditors' Service
Inc. 215/945-7000, http://bankrupt.com/newsstand/)


PROSPERO CAPITAL: Final General Meeting Is Set for Jan. 11
----------------------------------------------------------
Prospero Capital Inc.'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 liquidator can be reached at:

          Phillip Hinds
          Maples Finance Ltd.
          P.O. Box 1093,George Town
          Grand Cayman, Cayman Islands


PARROTSPITZE FINANCE: Last Shareholders Meeting Is on Jan. 11
-------------------------------------------------------------
Parrotspitze Finance 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 liquidator can be reached at:

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


PRIMA INVESTMENTS: Sets Final Shareholders Meeting on Jan. 11
-------------------------------------------------------------
Prima Investments Ltd.'s final shareholders meeting will be on Jan. 11,
2007, at:

          Smith Barney Private Trust Co. Ltd.
          CIBC Financial Centre, George Town
          Grand Cayman, Cayman Islands

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


SACHSEN-GUILDER: Final General Meeting Is Set for Jan. 11
---------------------------------------------------------
Sachsen-Guilder'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 liquidator can be reached at:

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


SENECA CBO: Shareholders To Gather for Jan. 11 Final Meeting
------------------------------------------------------------
Seneca CBO III 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 liquidator can be reached at:

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


SIRIUS ALPHA: Liquidator To Present Wind Up Accounts on Jan. 11
---------------------------------------------------------------
Sirius Alpha Fund'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 liquidator can be reached at:

          Jan neveril
          Maples Finance Ltd.
          P.O. Box 1093,George Town
          Grand Cayman, Cayman Islands


SUNDANCE INVESTMENTS: Final General Meeting Is on Jan. 11
---------------------------------------------------------
Sundance Investments Ltd.'s final shareholders meeting will be on Jan. 11,
2007, at:

          1818 Market Street
          Philadelphia, PA 19103, USA

These agenda will be taken during the meeting:

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

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

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

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

The liquidator can be reached at:

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


URSA MINOR: Shareholders to Convene for Final Meeting on Jan. 11
----------------------------------------------------------------
Ursa Minor 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 liquidator can be reached at:

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


VOYAGER LEASING: Calls Shareholders for Final Meeting on Jan. 11
----------------------------------------------------------------
Voyager Leasing 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 liquidator can be reached at:

          Phillip Hinds
          Maples Finance Ltd.
          P.O. Box 1093,George Town
          Grand Cayman, Cayman Islands




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


ARAMARK: Commences Financing Transactions with RMK Acquisition
--------------------------------------------------------------
ARAMARK Corp. and RMK Acquisition Corp. disclosed that, in connection with
the anticipated acquisition of ARAMARK by an investor group led by Joseph
Neubauer and investment funds managed by GS Capital Partners, CCMP Capital
Advisors and J.P. Morgan Partners, Thomas H. Lee Partners and Warburg
Pincus LLC, they will commence certain financing transactions consisting
of the borrowing of new senior secured and unsecured indebtedness and the
repayment of certain indebtedness.  The new financing transactions will
include:

   -- new senior secured credit facilities, consisting of
      US$3.660 billion of term loans and a US$600 million
      revolving credit facility; and

   -- US$2.270 billion of new senior and senior subordinated
      unsecured indebtedness, consisting of senior fixed rate,
      senior floating rate and senior subordinated notes.

The new term loan facility is expected to have a seven-year maturity, and
the revolving credit facility is expected to have a six-year maturity.

The senior fixed rate notes and the senior floating rate notes each are
expected to have an eight-year maturity and the senior subordinated notes
are expected to have a ten-year maturity.  The notes will be offered by
RMK Acquisition Corp. in a private placement in the United States only to
qualified institutional buyers within the meaning of Rule 144A under the
Securities Act of 1933, as amended.  The notes will be offered outside the
United States to non-U.S. investors pursuant to Regulation S under the
Securities Act.

The Acquisition will be effected by the merger of RMK Acquisition Corp.
with and into ARAMARK, with ARAMARK remaining as the surviving entity.
The merger will be completed in accordance with the Agreement and Plan of
Merger, entered into by the parties on Aug. 8, 2006.  Upon the closing,
the notes will become the obligations of ARAMARK.

In connection with the Acquisition, ARAMARK will redeem approximately
US$300 million of its 6.375% notes due February 2008, US$300 million of
its 7.00% notes due May 2007 and approximately US$31.6 million of its
7.25% notes and debentures due August 2007.

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

                        *    *    *

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

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

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


ARAMARK: Moody's Assigns Provisional Ratings on Buyout Financing
----------------------------------------------------------------
Moody's Investors Service assigned provisional ratings to the proposed
financing of the leveraged buyout of ARAMARK Corp. (new company) Moody's
concurrently downgraded to B3 from B2 the rating on the existing 5% senior
notes due 2012 of ARAMARK Services, Inc., a wholly-owned subsidiary of
ARAMARK Corp. (old company).  This concludes a review for possible
downgrade initiated on May 1, 2006.  The rating outlook is stable.

Moody's assigned these ratings on the new company:

   -- US$600 million secured revolving credit facility due 2013,
      (P)Ba3 (LGD 3, 32%);

   -- US$3.660 billion secured term loan due 2014, (P)Ba3
      (LGD 3, 32%);

   -- US$250 million secured synthetic letter of credit facility
      due 2013, (P)Ba3 (LGD 3, 32%);

   -- US$1.7 billion senior unsecured notes due 2015, (P)B3
      (LGD 5, 80%);

   -- US$570 million senior subordinated notes due 2016, (P)B3
      (LGD 6, 93%);

   -- Corporate family rating, (P)B1; and

   -- Probability of Default rating, B1.

These ratings or assessments are subject to Moody's review of final
documentation.

Moody's downgraded these ratings:

   ARAMARK (Old):

   -- Corporate Family Rating, to B1 from Ba3;

   -- Probability of Default rating, to B1 from Ba3;

   -- Senior unsecured shelf registration, to (P)B3 (LGD 6, 96%)
      from (P)B2 (LGD 6, 96%); and

   -- Senior subordinated shelf registration, to (P)B3
      (LGD 6, 97%) from (P)B2 (LGD 6, 97%).

   ARAMARK Services:

   -- US$250 million senior unsecured notes due 2012, to B3
      (LGD 6, 96%) from B2 (LGD 6, 96%);

   -- Senior unsecured shelf registration, to (P)B3 (LGD 6, 96%)
      from (P)B2 (LGD 6, 96%); and

   -- Senior subordinated shelf registration, to (P)B3
      (LGD 6, 97%) from (P)B2 (LGD 6, 97%).

Moody's affirmed these ratings:

   ARAMARK Services:

   -- US$300 million senior unsecured notes due 2007, Baa3;
   -- US$31 million senior unsecured notes due 2007, Baa3; and
   -- US$300 million senior unsecured notes due 2008, Baa3.

The review of the ratings was initiated on May 1, 2006, following the
announcement that the company had received a proposal to be acquired in a
leveraged buyout led by its chairman and private equity investors GS
Capital Partners, J.P. Morgan Capital Partners, CCMP Capital Partners,
Thomas H. Lee Partners and Warburg Pincus LLC. On August 8, 2006, the
board of directors of ARAMARK approved a definitive merger agreement. The
merger is valued at approximately US$8.6 billion, including the assumption
or repayment of approximately US$2.1 billion of existing debt, and is
expected to close in the first quarter of 2007.

The merger is expected to be financed with a US$3.66 billion secured term
loan, US$1.7 billion of senior unsecured notes, US$570 million of senior
subordinated notes and an equity contribution of US$2.1 billion. The
company has received commitments to increase the size of its receivable
securitization facility from US$225 million to US$250 million and expects
to have US$225 million outstanding at closing.

Moody's will withdraw the ratings on the senior notes due 2007-2008 upon
the closing of the buyout since these notes are expected to be redeemed by
the company.  The existing corporate family rating of ARAMARK (Old) will
also be withdrawn upon the closing of the buyout. The senior notes due
2012 will remain outstanding after the consummation of the buyout.  The
downgrade of the senior notes due 2012 reflects the structural
subordination of these notes to high levels of secured and guaranteed debt
in the post-acquisition capital structure. The provisional ratings of
ARAMARK (Newco) will be converted into definitive ratings upon the closing
of the buyout.

The (P)B1 Corporate Family Rating is supported by the large size of the
company, significant geographic, customer and service line diversification
and good growth fundamentals.  Financial strength will weaken
significantly post-merger because of the approximately US$4.5 billion in
incremental debt needed to fund the buyout.  The ratings are constrained
by cash flow, leverage and interest coverage metrics that are weak for the
B1 rating category.

The stable outlook reflects Moody's expectation of 2%-4% organic revenue
growth and modest EBIT margin improvement over the next 12-24 months.
Cash flow, leverage and interest coverage metrics are expected to remain
weak for the rating category during this period.

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




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


BANCOLOMBIA: General Attorney Orders House Arrest of Bank Execs.
----------------------------------------------------------------
The Office of the General Attorney of Colombia has ordered the house
arrest of Bancolombia SA's president, Jorge Londono, and the bank's vice
president, Federico Ochoa, the Associated Press reports.

The chief federal prosecutor's office said in a statement that Messrs.
Saldarriaga and Ochoa will be kept under house arrest pending the outcome
of fraud investigation on the 1997 merger that led to the creation of
Bancolombia.

According to AP, Bancolombia was formed after Banco Industrial Colombiano
acquired a 51% stake in Banco de Colombia for US$418 million.

AP underscores that a court-appointed arbitrator in Bogota ordered earlier
this year that Bancolombia pay US$25 million to the Gillinski family, who
were the former owners of Banco de Colombia, as the family was awarded a
smaller stake in the merged bank than they were entitled to receive.

Banco Industrial funded its acquisition of Banco de Colombia with loans
for US$318 million taken out by its affiliate in Panama and which were
illegally transferred as debt onto Bancolombia's balance sheet, AP notes,
citing prosecutors.

Prosecutors told AP that Mr. Saldarriaga and other Banco Industrial
officials at that time failed to fulfill their promise to inject US$150
million into Bancolombia.

After reviewing the resolution issued by the Office of the General
Attorney on Jan. 4, 2007, Bancolombia said it found major flaws that it
expects to be corrected immediately by the prosecutor.

Mr. Saldarriaga -- through his attorney, Ricardo Calvete Rangel -- will
initiate the necessary actions and proceedings to correct the significant
errors that the prosecutor has made.

Bancolombia said in a press release that during the acquisition and merger
process, the bank and its officers acted with the highest degree of
loyalty and transparency, and the transactions conducted with the
shareholders followed the requirements established by law.  Neither
Bancolombia nor its officers have made any improper use of public funds,
nor have they appropriated any such funds.  On the contrary, all funds
entrusted to Bancolombia by its clients have been managed with the highest
degree of care.

Bancolombia's acts in the acquisition and merger process have been
thoroughly analyzed at various judicial and administrative levels,
including:

          -- the Supreme Court of Justice,

          -- the State Council,

          -- the Administrative Tribunal of Cundinamarca,

          -- the Superior Court of Bogota,

          -- the Superior Court of Medellin and three
             arbitration panels, and

          -- the former Superintendencies of Banking and
             Securities (currently the Superintendency of
             Finance of Colombia).

The multiple levels of review have cleared Bancolombia and its officers
and directors of the same fraud charges that are being pressed by the
prosecutor against these officers of Bancolombia.  The prosecutor's
actions contradict previous decisions of the first and second instances of
the same prosecutor.

The officers of Bancolombia, through their attorneys will continue to work
on the matter with the highest diligence and will initiate all available
judicial proceedings against the unexpected decision of the prosecutor.

Bancolombia accepted the decision taken by the General Attorney's Office
and reiterates its confidence in Colombian authorities with the conviction
that the actions of Bancolombia and its senior management are in
compliance with the law.

The decision of the prosecutor does not affect the equity of Bancolombia
or its solvency, its business and operations, or its obligations with its
customers and clients.

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

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

                        *    *    *

As reported in the Troubled Company Reporter-Latin America on Jan. 2,
2007, Moody's Investors Service placed the D+ bank financial strength
rating of Bancolombia SA on review for possible downgrade.  Bancolombia's
foreign currency deposit ratings were affirmed at Ba3/Not-Prime.


CLOROX CO: Names Three New Executives
-------------------------------------
Clorox Co. disclosed some executive changes.  Lawrence S. "Larry" Peiros
has been named executive vice president and chief operating officer –-
Clorox North America.  Beth Springer has been named executive vice
president –- strategy and growth.  Frank A. Tataseo has been named
executive vice president -– functional operations.  The three executives
will continue reporting to chairman and CEO Don Knauss as members of the
company's executive committee.  The other members of the company's
executive committee remain in place.

"These changes are aligned with our growth agenda," said Mr. Knauss. "By
establishing single-point accountability for strategy, North America
operations and functional operations, we've created ownership for key
drivers of our growth agenda.  The heads of these three areas will
continue to work with the broader leadership of the company and in
partnership with the executive committee members responsible for
international operations, human resources, finance and legal to speed
decision making and information flow to ensure this new structure
maximizes our ability to drive shareholder value."

As executive vice president and COO for Clorox North America, Mr. Peiros
will have overall responsibility for all of the company's U.S. and Canada
businesses.

"Consolidating these operating units under Larry will create better line
of sight across our North America businesses, helping us make better and
faster decisions and streamline accountability," said Mr. Knauss.  "Larry
has a deep understanding of these businesses having had responsibility for
nearly each one during his 25-year career with Clorox.  Recently, he’s
been instrumental in developing the company's health-and-wellness
platform, which is a chief focus for the company.  I look forward to his
continued contributions to drive this and other key consumer platforms
across our North America portfolio."

As executive vice president –- strategy and growth, Ms. Springer will have
responsibility for creating an overall, enterprise perspective on
long-range strategy and business planning functions.  Specifically, she
will oversee the company's strategic planning, growth, new ventures,
licensing, sustainability, and mergers and acquisitions activities.

"Accelerating profitable top-line growth is paramount at Clorox,” Mr.
Knauss said.  "Beth is ideally suited to lead our efforts to develop and
implement value-creating growth initiatives. I firmly believe that
aligning and integrating our strategic planning and growth activities
under her leadership will give us ongoing visibility to all major growth
segments, help us optimize ROIC and, ultimately, create value for our
shareholders.  First as a general manager and more recently as a group
vice president, Beth has been instrumental in successfully transforming
the growth and profit trajectories of the Glad® business. I couldn't be
more excited by what she will bring to this new role."

As executive vice president -– functional operations, Mr. Tataseo will
continue to have responsibility for the company's Marketing, Sales, R&D,
Product Supply and Information Services functions.  In this role, Tataseo
leads the company's efforts to integrate functional strategies and
processes to build capabilities that support the company's strategic
priorities across all of its businesses.

Mr. Peiros, joined Clorox in 1981 as a brand assistant in Household
Products Marketing.  During the years that followed, he held marketing
positions of increasing responsibility.  He was named vice president –
Corporate Marketing Services in 1993, vice president -- Food Products in
1995, vice president Armor All Products and Cleaning Products in 1997 and
vice president -– Household Products in 1998.  In 1999, he was named group
vice president with responsibility for U.S. laundry and home care, auto
care and Brita water-filtration products businesses, as well as Clorox
Canada.

Ms. Springer, joined Clorox in 1990 as associate marketing manager for
Household Products, and subsequently held marketing positions of
increasing responsibility in the company's Cat Litter, Household Cleaning,
Laundry and Glad businesses.  In 2002, she was named vice president –
general manager, Glad Products.  In January 2005, she was named group vice
president with responsibility for the Glad Products joint venture with the
Procter & Gamble Company and The Clorox Company's cat litter, Kingsford
charcoal and food businesses.

Mr. Tataseo, joined Clorox in 1994 as vice president -- sales.  He was
subsequently named senior vice president with responsibility for the
company's worldwide sales function.  In 2004, he was named group vice
president -- functional operations.

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

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

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


GERDAU SA: Appealing Regulator's Decision on Acerias Auction
------------------------------------------------------------
A press official of Gerdau SA told Business News Americas that the firm
will make an appeal on the Colombian antitrust authorities' decision to
ban the company from the Acerias Paz del Rio auction.

As reported in the Troubled Company Reporter-Latin America on Jan. 8,
2007, the Colombian antitrust authorities prevented Gerdau from
participating in the auction of a 51.89% stake in Acerias Paz.  The
antitrust agency said that the potential integration of Gerdau and Paz del
Rio would unduly restrict competition.  Gerdau already controls Colombian
steel firms Diaco and Siderurgica del Pacifico.  Gerdau has until Jan. 9
to appeal the decision.

The Gerdau official told BNamericas, "The Gerdau group informs that it is
taking legal action to reverse the decision of Colombia's commerce and
industry regulator in order to participate in the auction of Acerias Paz
del Rio's social capital."

The Acerias Paz sale has a base price of COP52 per share for the 8.19
million shares up for auction.  The sale will close this month.

Headquartered in Porto Alegre, Brazil, Gerdau SA --
http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products.  In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.

Gerdau's four majority-owned Brazilian operating subsidiaries
are:

   -- Acominas,
   -- Gerdau Acos Longos SA,
   -- Gerdau Acos Especiais SA and
   -- Gerdau Comercial de Acos SA;

                        *    *    *

Gerdau SA's US$600 million 8-7/8% perpetual bond is rated Ba1 by
Moody's, BB+ by S&P, and BB- by Fitch.

                        *    *    *

As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social SA to 'BB' with a stable outlook from 'BB-'
with a positive outlook.  The company's local currency credit
rating was also shifted to 'BB+' with a stable outlook from 'BB'
with a positive outlook.


GERDAU SA: Sidenor Completes Acquisition of GSB ACERO Shares
------------------------------------------------------------
Gerdau S.A. disclosed that its Spanish subsidiary Corporacion Sidenor,
S.A. in which it has a 40% stake in its capital stock, completed the
acquisition of all outstanding shares issued by GSB ACERO, S.A.,
subsidiary of CIE Automotive, and have signed the corresponding documents
after meeting all contracted conditions and after getting the
authorization issued by the Spanish Free Trade Authorities.

The purchase price for all GSB ACERO, S.A. shares is approximately
EUR111.5 million in addition to a net debt of about EUR11 million totaling
EUR122.5 million.

Gerdau S.A. has a 40% stake in Corporacion Sidenor, S.A. together with a
Santander Group company with another 40%, and Sidenor executives' holding
company with the remaining 20%.

Headquartered in Porto Alegre, Brazil, Gerdau SA --
http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products.  In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.

Gerdau's four majority-owned Brazilian operating subsidiaries
are:

   -- Acominas,
   -- Gerdau Acos Longos SA,
   -- Gerdau Acos Especiais SA and
   -- Gerdau Comercial de Acos SA;

                        *    *    *

Gerdau SA's US$600 million 8-7/8% perpetual bond is rated Ba1 by
Moody's, BB+ by S&P, and BB- by Fitch.

                        *    *    *

As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social SA to 'BB' with a stable outlook from 'BB-'
with a positive outlook.  The company's local currency credit
rating was also shifted to 'BB+' with a stable outlook from 'BB'
with a positive outlook.




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


* DOMINICAN REPUBLIC: Metro Project Increasing Foreign Debt
-----------------------------------------------------------
The foreign debt of the Dominican Republic will grow by DOP7.1 billion
this year, due to the construction of the Metro, DR1 Newsletter reports.

DR1 underscores that the budget for the Metro includes numerous loans from
international organizations, most of which have not been approved by the
congress.

According to DR1, DOP10.7 billion will be spent on the Metro project to
accelerate the pace of the project.  In 2005 the project had a budget of
DOP1.84 billion, but actual costs rose to DOP3 billion.

Hoy relates that there was a DOP1.1-billion fund transfer from the
Education and Health Departments to the project at the end of 2006.

In 2005 the contract signed by Diandino Pena, the Metro director, with the
Siemens-Thales increased the foreign debt by US$119 million.
Siemens-Thales has been contracted to construct 17 of the train carriages
for the Metro.

The viaducts from Villa Mella will cost US$200 million, while the one from
the Cementera to La Feria will cost US$327 million, totaling US$527
million, Hoy says.

Mr. Pena initially told DR1 that each kilometer of the Metro would cost
US$32.6 million, but months later he said that the actual cost would be
between US$40 and US$50 million, one of the lowest rates in the world.

Dominicans will be able to enjoy the metro by 2008, before the May 16
presidential elections, Mr. Pena told DR1.

                        *    *    *

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.


* DOMINICAN REPUBLIC: President Postpones Middle East Visit
-----------------------------------------------------------
The Dominican Republic's President Leonel Fernandez has delayed his trip
to the Middle East, which is aimed at promotion of the expansion of a
natural gas terminal in the Dominican nation, DR1 Newsletter reports,
citing the foreign relations ministry.

No explanation was provided for the decision to cancel the trip, DR notes.

According to DR1, President Fernandez will make his trip to Qatar the
following week.

The Dominican Republic could become a regional intermediary for natural
gas if the US decides not to construct any more natural gas plants due to
safety concerns, Hugo Giuliani Cury -- the Dominican ambassador in Doha,
Qatar, told a local newspaper.

                        *    *    *

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.




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


* ECUADOR: Minister Worries Over Local Fiscal Deficit
-----------------------------------------------------
Ricardo Patino, the future economy minister of Ecuador, is concerned about
the over US$771 million local fiscal deficit left by the departing
government, Prensa Latina reports.

Mr. Patino told Prensa Latina, "Every day, we have a different figure."

Authorities announced a non-payment of US$900 million, Prensa Latina says,
citing Mr. Patino.

Mr. Patino told a local television channel, "First, we were told the
deficit reached US$840 million, later, that it was US$771 million, and a
few days later I was told the non-payment was US$900 million."

Jose Serrano, the current economy minister, had said that there were
mistakes on the information so the real deficit is US$900 million, Prensa
Latin notes, citing Mr. Patino.

Mr. Patino was against the idea of using natural resources in other needs,
Prensa Latina relates.  He said that municipalities, provincial councils
and universities should receive assigned funds in the budget.  He also
criticized the inability of the administration to give real information on
the funds Ecuador can really count on right now.

According to Prensa Latina, Mr. Patino promised he would verify if there
are enough resources in the fiscal budget when he sits as minister to
fulfill with the foreign debt payments.

The new government will focus on the payment of the public sector's
salaries, which has arrears for US$160 million, Prensa Latina states,
citing Mr. Patino.

                        *    *    *

Fitch assigned these ratings on Ecuador:

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




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


AES CORP: Increases Revolving Credit Facility to US$750 Million
---------------------------------------------------------------
In a regulatory filing with the U.S. Securities and Exchange Commission,
AES Corp. disclosed that on Dec. 6 and
Dec. 26, 2006, it entered into amendments for its senior secured facility.

The amendments are part of a single plan and increase the size of the
revolving credit facility from US$650 million to US$750 million.

The amendment was entered into by:

    * AES Corp., as borrower;

    * AES Hawaii Management Company, Inc., AES New York Funding,
      L.L.C., AES Oklahoma Holdings, L.L.C., and AES Warrior Run
      Funding, L.L.C., as Subsidiary Guarantors;

    * Citicorp Usa, Inc., as Agent and as a Revolving Fronting
      Bank;

    *  Citibank N.A., as Collateral Agent;

    * Bank of America, N.A., Deutsche Bank Trust Company
      Americas, Lehman Commercial Paper, Inc., UBS AG, Stamford
      Branch, Union Bank California, N.A., CALYON - New York
      Branch, and Societe Generale - New York Branch, as
      Revolving Fronting Banks; and

    * Barclays Bank PLC, as a Committing Bank.

A full-text copy of Amendment No. 9 to the Third Amended and Restated
Credit and Reimbursement Agreement, dated as of
Dec. 29, 2006, is available for free at:

           http://ResearchArchives.com/t/s?182c

A full-text copy of Amendment No. 8 to the Third Amended and Restated
Credit and Reimbursement Agreement, dated as of
Dec. 6, 2006, is available for free at:

           http://ResearchArchives.com/t/s?182d

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

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

                        *    *    *

The company’s senior secured term loan due 2011 and senior secured
revolving credit facility due 2010 carry Moody’s Ba1 rating.




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


AFFILIATED COMPUTER: Annual Stockholders' Meeting Set for June 7
----------------------------------------------------------------
Affiliated Computer Services Inc. reported that its Board of Directors has
determined that the company's 2006 Annual Meeting of Stockholders will be
held on June 7, at a time and place to be disclosed in the company's
notice of annual meeting and proxy statement.

Stockholders of record at the close of business on
April 13, 2007 -- the record date established by the Board of Directors --
will be entitled to vote at the 2006 Annual Meeting.

Stockholders are entitled to present proposals for action at future
meetings if they comply with Affiliated Computer's bylaws and the
requirements of the proxy rules promulgated by the U.S. Securities and
Exchange Commission.  To be eligible for inclusion in Affiliated
Computer's proxy statement, which will be sent to stockholders in
connection with the 2006 Annual Meeting, a stockholder proposal must be
sent to:

          William L. Deckelman, Jr.
          Corporate Secretary
          Affiliated Computer Services, Inc.
          2828 North Haskell Avenue
          Dallas, Texas, 75204,

The proposal must be presented no later than Jan. 19, 2007.

A proposal that is not included in the proxy statement to be properly
brought before the 2006 Annual Meeting by a stockholder, must be delivered
to Mr. Deckelman no later than Jan. 19, 2007.  The foregoing time limits
also apply in determining whether notice is timely for purposes of rules
adopted by the SEC relating to the exercise of discretionary voting
authority with respect to proxies.

Headquartered in Dallas, Texas, Affiliated Computer Services, Inc., (NYSE:
ACS) -- http://www.acs-inc.com/-- provides business process outsourcing
and information technology solutions to commercial and government clients.
The company has global operations in Brazil, China, Dominican Republic,
India, Guatemala, Ireland, Philippines, Poland and Singapore.

                        *    *    *

The Troubled Company Reporter - Asia Pacific reported that Standard &
Poor's Ratings Services kept its ratings for Affiliated Computer Services
Inc. including the 'B+' corporate credit rating, on CreditWatch, where
they were placed with negative implications on Sept. 29, 2006.

Fitch Ratings assigned its BB issuer default rating, BB senior secured
revolving bank credit facility rating, BB senior secured term loan rating,
and BB senior notes rating on Affiliated Computer Services, Inc.  Fitch
said the rating outlook is negative.




===========
G U Y A N A
===========


BRITISH WEST: Caribbean Airlines' Employment Policy Questioned
--------------------------------------------------------------
The Caribbean Congress of Labor, a regional trade union federation, is
questioning the employment policy of Caribbean Airlines, which took the
place of British West Indies Airlines effective Jan. 1 this year, the
Barbados Advocate reports.

The Advocate relates that George De Peana, secretary general of the
Caribbean Congress of Labor, sent letters to Arthur Lok-Jack -- Caribbean
Airlines' chairperson -- and Peter Davies, chief executive officer of the
airline, questioning the employment contracts of the firm's workers, some
of which are said to be as short as three months, regardless of the
experience of the workers.

According to The Advocate, Mr. De Peana is calling on Messrs. Lok-Jack and
Davies to publicly disclose the Caribbean Airlines' policy.

The report says that Mr. De Peana wants to know the truth about the short
contracts and what extent Caribbean Airlines has outsourced jobs and in
what areas.

The Advocate underscores that Mr. De Peana said in his letter to Mr.
Davies that he was informed that Caribbean Airlines has contracted out
several aspects of the airline's business, including the checking-in
counter service which, as it has been observed is being carried out by
workers of another firm.

Mr. De Peana suspected that Caribbean Airlines has objections to the
presence of trade unions, The Advocate states.

"I would certainly welcome a response to the questions posed and a
categorical statement from you as CEO (chief executive officer, Mr.
Davies) of Caribbean Airlines that you will have no objection to workers
of CAL (Caribbean Airlines) being unionized as were the workers of BWIA
(British West)," Mr. De Peana told The Advocate.

British West Indies aka BWIA was founded in 1940, and for more than 60
years had 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 had reportedly been losing US$1 million a week due to poor
operational management.  An employee survey revealed that lack of
responsibility by the management was 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 the Caribbean Airlines.
The government approved a substantial capital injection for the creation
of Caribbean Airlines.


BRITISH WEST: New Airline Launches Operations in Guyana
-------------------------------------------------------
Caribbean Airlines, which has taken the place of British West Indies
Airlines aka BWIA, has started operating in Guyana, with an almost smooth
transition despite losing 20% of its staff, Caribbean Net News reports.

As reported in the Troubled Company Reporter-Latin America on Dec. 13,
2006, an aircraft of Caribbean Airlines made an unexpected landing at the
Cheddi Jagan International Airport in Guyana, to fly out stranded
passengers.

However, it was on Jan. 1, 2007, that Caribbean Airlines commenced its
operations in Guyana, Caribbean Net notes.

BWIA stopped operating on Dec. 31, 2006.

Carlton Defour, general manager of Caribbean Airlines' South American
operations, told Caribbean Net that operationally the transition went very
well.  The new airline will be rationalizing on flights servicing Guyana.

The major challenges have come from within the airline, given the changes
to the accounting system and other strategic areas, Caribbean Net says,
citing Mr. Defour.

Mr. Defour told Caribbean Net, "We have had no negative feedback from
passengers and I can safely say that for the first days of operation.
Everything is going well.  We had very few hiccups with flights leaving
Guyana, but flights went out on time."

During the transition phase, BWIA lost 20% of its staff, with some of
those retained having to relocate to other positions within Caribbean
Airlines.  There will be no new routes from Guyana within the next few
months, but there will be a reduction of flights out –- from three flights
per day to two, Caribbean Net notes, citing Mr. Defour.

BWIA had disclosed in September that it had reduced flights from Guyana to
Manchester, England, and in October the airline stopped flights from
Guyana to Washington, USA, saying that the routes were non-profitable,
Caribbean Net states.

British West Indies aka BWIA was founded in 1940, and for more than 60
years had 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 had reportedly been losing US$1 million a week due to poor
operational management.  An employee survey revealed that lack of
responsibility by the management was 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 the Caribbean Airlines.
The government approved a substantial capital injection for the creation
of Caribbean Airlines.




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


SBARRO INC: S&P Revises Outlook to Developing on MidOcaen Buyout
----------------------------------------------------------------
Standard & Poor's Rating Services revised the CreditWatch listing on
Sbarro Inc. to developing from negative.

"The revision comes as the potential for a downgrade has decreased because
the acquisition of the company by MidOcean Partners will not significantly
change the capital structure," said Standard & Poor's credit analyst Diane
Shand.  "In addition, because the company has had positive operating
performance for the past three years an upgrade is a possibility."  The
corporate credit rating is 'CCC+'.

The Nov. 29, 2006, CreditWatch listing followed the company's announcement
that it had agreed to be acquired by private equity investors, MidOcean
Partners, for an undisclosed sum.

Headquartered in Melville, New York, Sbarro, Inc. is a quick service
restaurant chain that serves Italian specialty foods.  As of Oct. 8, 2006,
the company owned and operated 479 and franchised 476 restaurants
worldwide under brand names such as "Sbarro," "Umberto's," and "Carmela's
Pizzeria."  The company also operated 25 other restaurant concepts and
joint ventures under various brand names.  The company announced on
June 19, 2006, its internationalexpansion by opening more than 25
restaurants in Guatemala, El Salvador, Honduras, The Bahamas and Romania.




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


AIR JAMAICA: Condition Won't Improve, Says Ex-Senior Executive
--------------------------------------------------------------
A former Air Jamaica senior official at Air Jamaica is positive that the
airline's financial condition won't improve, the Jamaica Observer reports.

The Observer did not name the former Air Jamaica official.

As reported in the Troubled Company Reporter-Latin America on Dec. 13,
2006, Michael Conway, chief executive officer of Air Jamaica said that Air
Jamaica would post better results during the holiday season.

Air Jamaica previously disclosed that it is aiming for a US$100-million
decrease in yearly losses.  OK Melhado, chairperson of Air Jamaica, had
said that the carrier was on the way to achieving the results based on
certain goals, which include:

          -- saving some US$45 million from refleeting the
             airline with 757s and 737s which were more
             economical than the current Airbuses;

          -- upgrading its maintenance services and systems to
             be less expensive and more responsive; and

          -- reviewing the routes to optimize resources.

When Air Jamaica has completed its change of fleet, in about two years, it
should save about US$45 million from that activity, Mr. Melhado had said.
The proposal was to change Air Jamaica's narrow-bodied Airbus fleet to
Boeing aircraft.  In the case of the A-321s, they would be changed to
Boeing 757s, which have the advantages of lower lease cost, greater
payload and greater range.

However, the former Air Jamaica official told The Observer, "Two years ago
Air Jamaica was operating 20 aircraft with the intention of taking that
number to 27.  Today it has 16, and one only has to go to Sangster's
International airport in Montego Bay to see that it is now chartering
other aircraft.  Staff morale is now very low because no one can see the
airline turning the corner anytime soon.  Both Conway and Melhado keep
talking about restructuring Air Jamaica, but after two years it has failed
to make staff cuts.  As far as its on-time performance is concerned it is
now at 40% coming from 90% two years ago.  Then I hear that the Civil
Aviation Authority doesn't want to embarrass the government by insisting
that Air Jamaica should pay its taxes on time."

Meanwhile, a board member of Air Jamaica told Caribbean Business Report,
"We have a Herculean task ahead of us in restructuring the airline and
returning it to profitability.  The media expect it to be done within 12
months but that is totally unrealistic.  It takes a year to gauge what has
to be done and to assess just what is feasible.  We have a good management
team who will get the job done if they are allowed to do so without these
unrealistic expectations being placed upon the airline.  One must bear in
mind that Air Jamaica has never been profitable.  Rather than tearing Air
Jamaica down with claims that it has no model, and will never be
profitable and all the nonsense that is written, the country should get
behind it.  There is no doubt that Jamaica should have its own airline and
I expect further restructuring and cost-cutting measures this year.  When
the government reclaimed the airline at the end of 2004, we made it clear
that we would return it to profitability in five years I think we should
be judged on that timetable rather than tomorrow, don't you?"

Gordon 'Butch' Stewart, Air Jamaica's former chairperson, commented to
Caribbean Business, "You judge a national airline on its ability to
develop new routes and over the last two years Air Jamaica has not opened
a single new route.  In fact, it has reduced routes.  Over the last two
years it has received far in excess of US$500 million to spur it into
profitability.  This came in the form of a bond, a one-off payment and a
subsidy from the government and a one-off payment by the Air Jamaica
Acquisition Group (AJAG).  Despite this assistance it reported a loss of
US$120 million for 2005.  For years AJAG was promised a subsidy, which it
never got but within the first month of returning to government ownership
it received an annual subsidy and bailout assistance yet it had its worst
year ever in 2006.  Last year saw the systematic destruction of the
airline. Did it register any improvements in sales and marketing, on-time
performance, finance, profitability, maintenance, route development and
in-flight service?  The answer would have to be a resounding 'no', so what
makes one think it will be better next year?  This week I read in the Wall
Street Journal that airlines are expected to announce improved financial
results and better profitability in 2006 with 2007 expected to be an even
better year.  So while the industry is improving, Air Jamaica continues to
go from bad to worse."

"The management will be getting a lot more than aging aircraft.  There is
a question of antiquated technology, questions concerning fuel efficiency
and maintenance, not to mention the retraining of pilots and ground staff
at the cost of millions of US dollars, who are now au fait with
cutting-edge aviation technology who now have to be subjected to basic
forgotten systems.  It is my understanding that the 737s they are intent
on using have faulty tail rudders and so the question of safety issues
arises.  Now the Jamaican public must ask itself, is this progress?  Is
this how the airline should be going into 2007?  Boeing makes very good
aircraft and it is a matter of opinion as to which company manufactures
the better commercial planes, Boeing or Airbus.  There can be no question
that this deal with Boeing for these aging models is bad for Jamaica in
every respect.  The country needs to know more about the particulars of
this deal because you don't go backwards to go forward," Mr. Stewart
explained to The Observer.

Mr. Stewart told The Observer that under his leadership, Air Jamaica was
intensely criticized for its lease arrangements.  Mr. Steward said that
when AJAG took over Air Jamaica in 1994 it paid US$450,000 per month for
aircraft valued at US$7 million.  Ten years later AJAG left lease
arrangements in place at US$325,000 per month for aircraft valued in
excess of US$40 million.

"Of course the propaganda was that under AJAG the lease costs were too
high and on returning to government control, Air Jamaica dispatched Aubyn
Hill globe-trotting to have them reduced.  Today the lease arrangements
have not been reduced nor has there been an apology for bad-talking AJAG.
We are now in 2007 and the question remains, is Air Jamaica in a better
position now than it was under AJAG?" Caribbean Business states, citing
Mr. Stewart.

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

                        *    *    *

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


DIGICEL LTD: Asks Solomon Telecom to Stop Blocking Competition
--------------------------------------------------------------
Digicel Pacific Ltd. is calling on Solomon Telekom to stop blocking
competition in the mobile telecommunications industry following their
legal action to prevent Digicel from providing any telecommunication
services operating in the Solomon Islands.

According to Vanessa Slowey, CEO of Digicel Pacific Ltd, "By filing this
injunction, we believe that Solomon Telekom is sending a clear signal that
they fear competition and will do everything in their means to prevent the
development of a healthy competitive and vibrant telecommunications
industry in the Solomon Islands."

Ms. Slowey continued, "Solomon Telekom has held a monopoly position for 18
years and yet mobile penetration stands at an unacceptably low 1.3%.  The
people of the Solomon Islands should not have to wait any longer to
experience modern era telecommunications services at cheaper prices,
accessible to far more people and communities than ever before; nor should
they be robbed of all the associated benefits of competitors in the market
place such as investment, job creation and community support.

"Given our track record we can promise that our mobile customers in the
Solomon Islands and South Pacific region will never return to the days of
unreliable coverage, expensive outmoded handsets and non-existent customer
care.  The Government of the Solomon Islands can rely on our support as
they look to liberalize the Solomon telecommunications market," concluded
Ms. Slowey.

In May 2006, Digicel received an experimental license from the Government
of the Solomon Islands to operate a GSM license.  The dynamic company is
committed to building a seamless Pan South Pacific network just as its
sister company has done in the Caribbean, and has already launched
operations in Samoa in October 2006 and also has licenses in Papua New
Guinea, Vanuatu as well as a letter of intent from the government of
Nauru.

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

                        *    *    *

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

                        *    *    *

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




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


ADVANCED MARKETING: Organizational Meeting Scheduled for Friday
---------------------------------------------------------------
The U.S. Trustee for Region 3 will hold an organizational meeting to
appoint an official committee of unsecured creditors in Advanced Marketing
Services, Inc. and its debtor-affiliates' chapter 11 cases at 10:00 a.m.,
on Friday, Jan. 12, 2006, at the Double Tree Hotel, 700 King Street, Salon
L in Wilmington, Delaware.

The sole purpose of the meeting will be to form a committee or
committees of unsecured creditors in the Debtors' cases.  The
meeting is not the meeting of creditors pursuant to Section 341
of the Bankruptcy Code.  However, a representative of the Debtors will
attend and provide background information regarding the cases.

Creditors interested in serving on a Committee should complete
and return to the U.S. Trustee a statement indicating their
willingness to serve on an official committee.

Official creditors' committees, constituted under Section 1102 of the
Bankruptcy Code, ordinarily consist of the seven largest
creditors who are willing to serve on a committee.  In some
Chapter 11 cases, the U.S. Trustee is persuaded to appoint
multiple creditors' committees.

Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtors' expense.
They may investigate the Debtors' business and financial affairs.
Importantly, official committees serve as fiduciaries to the general
population of creditors they
represent.  Those committees will also attempt to negotiate the
terms of a consensual Chapter 11 plan -- almost always subject to the
terms of strict confidentiality agreements with the Debtors and other core
parties-in-interest.  If negotiations break down, the Committee may ask
the Bankruptcy Court to replace management with an independent trustee.
If the Committee concludes that the reorganization of the Debtors is
impossible, the Committee will urge the Bankruptcy Court to convert the
Chapter 11 cases to a liquidation proceeding.

Based in San Diego, California, Advanced Marketing Services, Inc. --
http://www.advmkt.com/-- 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.

The company and its two affiliates, Publishers Group Incorporated and
Publishers Group West Incorporated filed for chapter 11 protection on Dec.
29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482).  Chun I.
Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at
Richards, Layton & Finger, P.A., represent the Debtors.  When the Debtors
filed for
protection from their creditors, they listed estimated assets and debts of
more than US$100 million.  The Debtors' exclusive period to file a chapter
11 plan will expire on Apr. 28, 2007.


ALLIS-CHALMERS: Intends to Offer US$225 Million of Senior Notes
---------------------------------------------------------------
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.

The company plans to use the net proceeds of the offering to repay a
portion of the debt outstanding under its US$300 million bridge loan
facility, which was incurred to finance its acquisition of substantially
all the assets of Oil & Gas Rental Services, Inc.

The notes will be offered to qualified institutional buyers in accordance
with Rule 144A under the Securities Act of 1933, and outside the United
States to persons other than U.S. persons, in reliance on Regulation S.

The offer and sale of the notes will not be registered under the
Securities Act of 1933, and the notes may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements of the Securities Act of 1933 and applicable
state securities laws.

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.


ARROW ELECTRONICS: Buys Agilysys KeyLink Systems for US$485 Mln
---------------------------------------------------------------
Arrow Electronics Inc. has signed a definitive agreement pursuant to which
Arrow will acquire substantially all of the assets and operations of the
Agilysys KeyLink Systems Group for US$485 million in cash.

Arrow will also enter into a long-term procurement agreement with the
Agilysys Enterprise Solutions Group, Agilysys' value-added reseller
business.

Based in Cleveland, Ohio, KeyLink is a leading value-added distributor of
enterprise servers, storage and software in the United States and Canada.
Through approximately 500 employees, KeyLink provides complex solutions
from industry leading manufacturers to more than 800 reseller partners.
Pro forma sales for the 2006 calendar year are expected to be
approximately US$1.6 billion, which include revenues that will be
associated with the above-mentioned procurement agreement.

"With this acquisition, we will become the leading distributor of
enterprise products for both International Business Machines Corp. and
Hewlett Packard Company, as well as the leading value-added distributor of
storage and software," stated William E.  Mitchell, Chairman, President
and Chief Executive Officer of Arrow Electronics, Inc.  "Keylink is a
natural complement to our existing enterprise computing solutions business
with its value-added approach and its resellers' focus on small and medium
sized customers."

"Our partnership will create significant cross selling opportunities to
further accelerate our growth in the global enterprise computing solutions
distribution market," stated M. Catherine Morris, president, Arrow
Enterprise Computing Solutions.  All field sales positions will remain
intact to ensure that we will continue to provide our customers and
suppliers with superior levels of service."

"We believe KeyLink will further benefit from Arrow's considerable global
scale, vast customer base, strong financial resources and leadership in
the technology distribution market," said Arthur Rhein, chairman,
president and chief executive officer of Agilysys.  "As a result of this
transaction, both Agilysys and Keylink will be better positioned to
achieve their full potential as Agilysys focuses solely on growing its
information technology solutions business.  We wish Arrow well as they
continue to grow their business," added Mr. Rhein.

"The acquisition is expected to be US$0.18 to US$0.22 accretive in the
first 12 months and will further strengthen our industry leading return on
invested capital, while generating an expected US$30 million in operating
cash flow annually," added Paul J. Reilly, senior vice president and chief
financial officer of Arrow Electronics, Inc.

The transaction, which will be funded with cash-on-hand plus borrowings
under Arrow's existing committed liquidity facilities, is subject to
customary closing conditions, including obtaining the necessary government
approvals, and is expected to be completed within 90 days.  Goldman, Sachs
& Co.  acted as financial advisor and Milbank, Tweed, Hadley & McCloy LLP
acted as legal counsel to Arrow in connection with this transaction.

                   About Arrow Electronics

Headquartered in Melville, New York, Arrow Electronics --
http://www.arrow.com/-- provides products, services and solutions to
industrial and commercial users of electronic components and computer
products.   Arrow serves as a supply channel partner for nearly 600
suppliers and more than 130,000 original equipment manufacturers, contract
manufacturers and commercial customers through a global network of over
270 locations in 53 countries and territories.

In Latin America, Arrow Electronics has operations in Argentina, Brazil
and Mexico.

                        *    *    *

Arrow Electronics carries Fitch's 'BB+' issuer default rating.
The Company's senior unsecured notes and senior unsecured bank
credit facility also carry Fitch's 'BB+' rating.  Fitch said the rating
outlook is positive.


ARROW ELECTRONICS: Closes Takeover of InTechnology Storage Ops
--------------------------------------------------------------
Arrow Electronics Inc. has completed its previously disclosed acquisition
of the storage and security distribution business of InTechnology plc for
a purchase price of around US$80 million.

"The acquisition of InTechnology's storage and security distribution
business enables us to further expand our Enterprise Computing Solutions
business into the United Kingdom, Europe's second largest IT market,"
stated M. Cathy Morris, president, Arrow Enterprise Computing Solutions.
"We expect this transaction to create further opportunities for us in the
growing storage and security software markets.  We expect this transaction
to be US$.02 to US$.04 accretive in 2007."

InTechnology Distribution, which is headquartered in Harrogate, England
and has approximately 200 employees, delivers storage and security
solutions to value-added resellers in the United Kingdom.  Total 2006
sales are expected to exceed US$400 million.

"The addition of InTechnology's storage and security distribution business
is a key strategic step towards our goal of becoming the preeminent
provider of enterprise computing solutions in Europe," stated Kurt
Schoeffer, managing director, DNS. "This transaction will enable us to
provide a more comprehensive suite of solutions for our reseller
customers," added Steve Pearce, chief operating officer, InTechnology plc.

                   About Arrow Electronics

Headquartered in Melville, New York, Arrow Electronics --
http://www.arrow.com/-- provides products, services and solutions to
industrial and commercial users of electronic components and computer
products.   Arrow serves as a supply channel partner for nearly 600
suppliers and more than 130,000 original equipment manufacturers, contract
manufacturers and commercial customers through a global network of over
270 locations in 53 countries and territories.

In Latin America, Arrow Electronics has operations in Argentina, Brazil
and Mexico.

                        *    *    *

Arrow Electronics carries Fitch's 'BB+' issuer default rating.
The Company's senior unsecured notes and senior unsecured bank
credit facility also carry Fitch's 'BB+' rating.  Fitch said the rating
outlook is positive.


ARROW ELECTRONICS: Fitch Keeps BB+ Default Rating on Acquisition
----------------------------------------------------------------
Fitch Ratings expects that Arrow Electronics Inc.'s proposed acquisition
of Agilysys Keylink Systems Group for US$485 million in cash will not
affect the company's ratings or Positive Rating Outlook.

However, Fitch believes further meaningful debt-financed acquisitions
could result in a revision of Arrow's Rating Outlook to Stable or negative
rating actions.

Fitch currently rates Arrow as:

   -- Issuer Default Rating of BB+;
   -- Senior unsecured notes of BB+; and
   -- Senior unsecured bank credit Facility of BB+.

Arrow recently announced that it has entered into a definitive agreement
to acquire substantially all the assets of Keylink, a leading enterprise
and computing solutions distributor, from Agilysys Inc. for US$485 million
in cash.  Simultaneously, Arrow entered into a long-term procurement
agreement with Agilysis' value-added reseller business.

With approximately US$1.6 billion of sales for calendar year 2006, pro
forma for the Agilysis procurement agreement, Fitch believes the proposed
acquisition will consolidate Arrow's already leading position in
distributing enterprise computing solutions, and strengthen Arrow's
exposure to Keylink's leading suppliers, International Business Machines
and Hewlett Packard.

In addition, Arrow expects Keylink to generate approximately 5.5%-6.0%
operating EBIT margins in 2007, including expectations for modest cost
reductions, which would be accretive to Arrow's corporate-wide
profitability, which Fitch estimates was at 4.7% for the latest 12 months
ended Sept. 30, 2006.

While recognizing these anticipated positives, this transaction, if
consummated, would be Arrow's fifth acquisition over the past year and the
first to be debt-financed.  Including expectations for positive free cash
flow for the fourth quarter ended
Dec. 31, 2006, but with just US$253 million of cash and cash equivalents
as of Sept. 30, 2006, Fitch expects Arrow will fund the majority of the
purchase price with either its US$600 million senior unsecured revolving
credit facility expiring
June 2010 and/or US$550 million accounts receivable securitization
facility expiring February 2008, both of which were undrawn as of Sept.
30, 2006.

Nonetheless, even assuming the transaction is fully funded with borrowings
under these facilities, total debt adjusted for rent expense to operating
EBITDAR will remain below 3.0 times.  Fitch believes that Arrow will
continue to pursue acquisition opportunities, mainly in the more
fragmented global enterprise computing market, which, depending on
materiality, could pressure Fitch's Positive Rating Outlook in the future.

In Latin America, Arrow Electronics has operations in Argentina, Brazil
and Mexico.


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

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

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

On Dec. 6, 2006, prior to SITEL entering into the amendment with
ClientLogic, The Gores Group, LLC and The Calgary Group, LLC and Jefferies
Capital Partners IV LLC revised their previously announced proposal to
acquire all of the outstanding shares of common stock of SITEL to lower
the proposed price of US$4.50 to US$4.25 per share in cash.

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

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

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

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

                     About ClientLogic

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


CLIENTLOGIC CORP: Moody's Lifts Corporate Family Rating to B2
-------------------------------------------------------------
Moody's Investors Service upgraded ClientLogic Corp.'s corporate family
rating to B2 from B3.  The rating outlook is stable.

Concurrently, Moody's has assigned a B2 rating to ClientLogic's
US$675-million first lien term loan and US$85-million undrawn first lien
revolving credit facility.

Proceeds of the current offering will be applied towards the financing of
ClientLogic's proposed merger with SITEL Corp. for approximately US$440
million in total implied enterprise value of which approximately US$327
million represents the equity purchase price.  The transaction is expected
to close at the end of January 2007.  This concludes a review for possible
upgrade initiated in Dec. 2006 following the company's announcement of its
revised plan to merge with SITEL Corporation and SITEL's recent return to
filing timely financial statements with the SEC.

The upgrade reflects the increased scale that ClientLogic will have once
combined with SITEL as well as the favorable outlook of the call center
outsourcing industry.  The B2 corporate family rating reflects the
substantial risks associated with a merger of this size, modest free cash
flow, sizeable financial leverage as measured by free cash flow to debt,
and moderate client concentration.  Mitigating these risks is the
company's position as the second largest provider within the highly
competitive call center outsourcing industry and projected cost savings
and synergies expected with the merger

Ratings/assessments:

   -- Corporate family rating -- B2

   -- Probability of default rating -- B3

   -- US$85-million first lien revolving credit facility -- B2,
      LGD-3, 35%

   -- US$675-million first lien term loan -- B2, LGD-3, 35%

Headquartered in Nashville, Tennessee, ClientLogic Corp. provides
outsourced call center services worldwide.


CONSTELLATION BRANDS: Crown Imports Starts Scheduled Operation
--------------------------------------------------------------
Constellation Brands and Grupo Modelo, S. A. de C. V.'s owned beer
importation and marketing joint venture, Crown Imports LLC, reported that
it is operational as scheduled.

The joint venture will import to the United States the Corona Extra,
Corona Light, Negra Modelo, Modelo Especial and Pacifico brands owned by
Grupo Modelo, in addition to Tsingtao from China and St. Pauli Girl from
Germany.

Crown Imports disclosed that its operation 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.

                    About Crown Imports

Headquartered in Chicago, Ill. Crown Imports LLC
-- http://www.crownimportsllc.com/-- is a beer importation and marketing
joint venture owned by Constellation Brands and Grupo Modelo, S. A. de C.
V.  Bill Hackett, former president of Constellation's Barton Beers, will
lead the company.  The company will have a board of directors half from
Grupo Modelo and half from Constellation Brands.

                     About Grupo Modelo

Founded in 1925, Grupo Modelo (MX: GMODELOC) produces and markets 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.

                 About Constellation Brands

Based in Fairport, New York, Constellation Brands, Inc.
(NYSE:STZ, ASX:CBR) -- http://www.cbrands.com/-- produces and markets
beverage alcohol brands with a broad portfolio across the wine, spirits
and imported beer categories.  Well-known brands in Constellation's
portfolio include: Almaden, Arbor Mist, Vendange, Woodbridge by Robert
Mondavi, Hardys, Nobilo, Kim Crawford, Alice White, Ruffino, Kumala,
Robert Mondavi Private Selection, Rex Goliath, Toasted Head, Blackstone,
Ravenswood, Estancia, Franciscan Oakville Estate, Inniskillin,
Jackson-Triggs, Simi, Robert Mondavi Winery, Stowells, Blackthorn, Black
Velvet, Mr. Boston, Fleischmann's, Paul Masson Grande Amber Brandy,
Chi-Chi's, 99 Schnapps, Ridgemont Reserve 1792, Effen Vodka, Corona Extra,
Corona Light, Pacifico, Modelo Especial, Negra Modelo, St. Pauli Girl,
Tsingtao.

                        *    *    *

As reported in the Troubled Company Reporter on Sept. 26, 2006 Moody's
Investors Service's affirmed its Ba2 Corporate Family Rating for
Constellation Brands Inc., and downgraded its Ba3 probability-of-default
rating to B1.  The rating agency also assigned its LGD6 loss-given-default
ratings on the Company's US$250 million 8.125% Senior Subordinated Notes
due
Jan. 15, 2012, suggesting noteholders will experience a 95% loss in the
event of a default.


DELTA AIR: Reaches Pilot Pension Plan Agreement with PBGC
---------------------------------------------------------
Delta Air Lines confirmed that the Pension Benefit Guaranty Corporation or
PBGC, the federal agency charged with insuring the nation's pension plans
under ERISA, has become the trustee of the Delta Pilots Retirement Plan.

In December 2006, the company announced it had reached a settlement
agreement with the PBGC and that the agreement had the full support of its
Official Committee of Unsecured Creditors.  The agreement later received
approval by the U.S. Bankruptcy Court, which had previously determined
that Delta could not reorganize or emerge from Chapter 11 unless the Pilot
Plan was terminated.

With the PBGC's agreement that the Pilot Plan meets all legal criteria for
distress termination, the agency has become the Plan's trustee, with Sept.
2, 2006, established as the termination date for the Plan.  In settlement
of its claims against Delta and its affiliates, the PBGC will be allowed a
pre-petition unsecured claim against Delta of US$2.2 billion, and the
debtors' proposed plan of reorganization will provide for the distribution
to the PBGC of US$225 million in senior unsecured notes.

"Delta appreciates the PBGC's recognition that the company satisfactorily
met all of the statutory criteria for a distress termination of the Delta
Pilots Retirement Plan and that the agency is now the Plan's trustee.
This represents an important and necessary milestone in Delta's
restructuring and we are pleased we were able to work constructively with
all parties involved to satisfactorily resolve what is an extremely
important and complex issue," said Edward H. Bastian, Delta's chief
financial officer.

As previously announced, retired Delta pilots will receive in excess of
US$800 million in allowed claims in respect of their lost non-qualified
pension benefits.

Delta's active pilots are now covered by a defined contribution pension
plan previously negotiated with the Air Line Pilots Association, the union
representing Delta's more than 6,000 active pilots.

Delta reconfirmed that it will preserve the Delta Retirement Plan, which
covers ground employees and flight attendants.  The ability to preserve
this plan was made possible by the alternative funding provisions included
in the pension reform legislation passed by Congress last August.

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


DIRECTV GROUP: Liberty Media to Acquire Largest Stake in Firm
-------------------------------------------------------------
Liberty Media Corp. has entered into a definitive agreement with News
Corporation to exchange Liberty's 16.3% stake in News for News's 38.5%
stake in DIRECTV Group, Inc., regional sports networks in Denver,
Pittsburgh, and Seattle, and cash.

"We are happy to become the largest shareholder in the world's largest
satellite television provider.  Chase Carey and the DIRECTV team have done
a fantastic job, and we look forward to the strategic benefits of them
joining the Liberty family," said Liberty President and CEO Greg Maffei
who added, "During 2006 we converted many passive investments into
strategic operating businesses, but this transaction is the largest and
most important.  DIRECTV and the regional sports networks represent a
critical step in our efforts to transform Liberty Media into a
well-positioned, focused operating company."

"We are extremely pleased with the successful, tax-efficient conversion of
our News holding.  Our investment in DIRECTV will create financial,
operating, and strategic flexibility," said Liberty Chairman John Malone.
"Liberty's ownership of News has created tremendous value for our
shareholders, and we are grateful to Rupert Murdoch and News management."

DIRECTV President and CEO Chase Carey stated, "We are very excited about
welcoming Liberty to DIRECTV.  They bring a wealth of expertise in media
and technology that will be invaluable.  I have known both John Malone and
Greg Maffei for over 10 years that gives me great confidence this
transition will be smooth, and we will move forward without missing a
beat.  I also want to take advantage of this opportunity to thank Rupert
Murdoch and News for their contributions to DIRECTV's success over the
last three years."

It is expected that Chase Carey will continue to serve as DIRECTV's
President and CEO, and Liberty will appoint directors to fill the board
seats currently held by News representatives.

Under the agreement, pursuant to Section 355 of the IRC, Liberty will
transfer to News 188,000,000 NWS shares and 324,637,067 NWS.A shares, and
News will transfer to Liberty the stock of a subsidiary that holds
470,420,752 shares of DIRECTV common stock, the Fox Sports Rocky Mountain,
Northwest and Pittsburgh regional sports networks, and US$550 million in
cash.

The transaction, which was unanimously approved by the boards of News and
Liberty, is expected to close in mid-2007, and is subject to regulatory
and News Corp shareholder approvals and the receipt of a private letter
ruling from the Internal Revenue Service.

Liberty was represented in the transaction by the investment banking firm
of Bear Stearns and the law firm of Baker Botts.

                    About Liberty Media

Liberty Media Corp. owns a broad range of electronic retailing, media,
communications and entertainment businesses and investments.  Those
interests are attributed to two tracking stock groups: the Liberty
Interactive group, which includes Liberty's interests in QVC, Provide
Commerce, IAC/InterActiveCorp, and Expedia, and the Liberty Capital group
includes Liberty's interests in Starz Entertainment, News Corporation, and
Time Warner.

                    About DIRECTV Group

The DIRECTV Group, Inc., formerly Hughes Electronics
Corp., headquartered in El Segundo, California, is a
world-leading provider of multi-channel television
entertainment, and broadband satellite networks and services.
The DIRECTV Group, Inc. with sales in 2004 of approximately
USUS$11.4 billion is 34% owned by Fox Entertainment Group, Inc.,
which is owned by News Corp.  DIRECTV is currently
available in Latin American countries: Argentina, Brazil, Chile,
Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras,
Mexico, Nicaragua, Panama, Puerto Rico, Trinidad & Tobago,
Uruguay, Venezuela and several Caribbean island nations.

                        *    *    *

On June 8, 2005, Moody's assigned a Ba2 rating to DIRECTV's
USUS$1 billion senior unsecured notes.  Moody's said the rating
outlook is stable.


DIRECTV GROUP: S&P Affirms BB Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on satellite
direct-to-home TV provider The DIRECTV Group Inc., including the 'BB'
corporate credit rating.  The outlook is stable.

The affirmation followed the recent announcement that Liberty Media LLC
(BB+/Negative/--) would be acquiring News Corp.'s 38.4% interest in El
Segundo, Calif.-based DIRECTV, in a transaction valued at approximately
US$11 billion.

"Liberty's CEO has publicly stated that DIRECTV's balance sheet, currently
modestly leveraged and having $2.3 billion in cash and short-term
investments, could handle more debt," said Standard & Poor's credit
analyst Naveen Sarma.  "However, our affirmation of the ratings on DIRECTV
is based on our belief that, though Liberty will be DIRECTV's largest
shareholder and will have board representation, it will only have
influence over, not direct control of, DIRECTV's financial policy."

Conversely, although Standard & Poor's recognizes that DIRECTV is a
significant investment for Liberty, we view it as only part of Liberty's
investment portfolio.  Accordingly, the rating agency does not impute
credit support to DIRECTV from its higher rated, prospective major
shareholder.

Despite modest leverage, the 'BB' corporate credit rating on DIRECTV is
constrained by business risk.  The rating reflects the intensely
competitive U.S. pay-TV industry and some concern about the company's
longer-term competitive position arising from its inability to provide the
high-speed data, voice, and advanced two-way video services available from
cable TV companies and likely to be offered by telephone companies over
the next few years.

Tempering factors include healthy subscriber growth, scale advantages from
the company's position as the second-largest multichannel TV provider,
modest leverage, significant cash and growing, sizable discretionary cash
flow.

The DIRECTV Group, Inc., formerly Hughes Electronics
Corp., headquartered in El Segundo, California, is a
world-leading provider of multi-channel television
entertainment, and broadband satellite networks and services.
The DIRECTV Group, Inc. with sales in 2004 of approximately
USUS$11.4 billion is 34% owned by Fox Entertainment Group, Inc.,
which is owned by News Corp.  DIRECTV is currently
available in Latin American countries: Argentina, Brazil, Chile,
Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras,
Mexico, Nicaragua, Panama, Puerto Rico, Trinidad & Tobago,
Uruguay, Venezuela and several Caribbean island nations.


ENESCO GROUP: Lenders Limit Funding Under Sr. Credit Facility
-------------------------------------------------------------
Enesco Group, Inc., disclosed that the lenders under its senior credit
facility with Bank of America, N.A. and LaSalle Bank N.A. informed the
company that such lenders have elected to make future advances under such
credit facility only on a limited discretionary basis.  Enesco continues
to seek refinancing for such senior credit facility and to pursue other
restructuring alternatives.  There can be no certainty as to whether
Enesco will be successful in achieving these goals.

Enesco Group, Inc. --- http://www.enesco.com/-- is a world
leader in the giftware, and home and garden decor industries.
Serving more than 44,000 customers worldwide, Enesco distributes
products to a wide variety of specialty card and gift retailers,
home decor boutiques, as well as mass-market chains and direct
mail retailers.  Internationally, Enesco serves markets
operating in the United Kingdom, Canada, Europe, Mexico,
Australia and Asia.  With subsidiaries located in Europe and
Canada, and a business unit in Hong Kong, Enesco's international
distribution network is a leader in the industry.  Enesco's
product lines include some of the world's most recognizable
brands, including Border Fine Arts, Bratz, Circle of Love,
Foundations, Halcyon Days, Jim Shore Designs, Lilliput Lane,
Pooh & Friends, Walt Disney Classics Collection, and Walt Disney
Company, among others.

                       Credit Default

As reported in the Troubled Company Reporter on Aug. 15, 2006,
Enesco is continuing to aggressively pursue long-term debt
financing.  Enesco previously had agreed to obtain a commitment
for long-term financing by Aug. 7, 2006.  Because Enesco has not
obtained a commitment, the company is in default of its current
credit facility agreement.

Enesco is working with the lenders for possible additional
loans or terms and conditions, but has been advised that the
lenders are not committing to waive the default.


FORD MOTOR: Launches Microsoft's In-Car Digital System
------------------------------------------------------
Ford Motor Company launched a new factory-installed, in-car communications
and entertainment system that is designed to change the way consumers use
digital media portable music players and mobile phones in their vehicles.

The Ford-exclusive technology based on Microsoft Auto software, called
Sync, provides consumers the convenience and flexibility to bring into
their vehicle nearly any mobile phone or digital media player and operate
it using voice commands or the vehicle's steering wheel or radio controls.

Ford owners will not need to worry about whether their car or truck is
compatible with the latest phone or music player that hits the market.
Sync seamlessly integrates the vehicle with the popular portable
electronic devices of today and is upgradeable to support the devices and
services of tomorrow.

"Sync is what today's generation and today's drivers demand in
connectivity," says Derrick Kuzak, group vice president, product
development, Ford Motor Company.  "Not only does it offer hands-free phone
operation and iPod, Zune or MP3 player connectivity, it's built on a
software platform that is upgradeable and will allow us to offer new
features by simply upgrading the software."

Sync offers consumers two ways to bring electronic devices into their
Ford, Lincoln and Mercury vehicles and operate them seamlessly through
voice commands or steering wheel controls:

   * Bluetooth, for wireless connection of phones and phones
     that play music.

   * A USB 2.0 port for command and control and charging of
     digital media players -- including the Apple iPod and
     Microsoft Zune -- as well as PlaysForSure music devices and
     most USB media storage devices.

     Supported formats include MP3, AAC, WMA, WAV and PCM.

The ability to upgrade Sync, control all portable electronic devices via
voice commands, offer a USB port to connect storage devices and recharge
electronics puts this technology well beyond technology available today --
including Bluetooth, hands-free offerings or portable music device
connections.

"More than 80 percent of U.S. households use cell phones, and 60 million
digital music devices have been sold. That's a 50 percent increase from
just 2005," Mr. Kuzak said.  "With such market growth led by consumers'
needs, Sync is the right new technology at the right time for Ford,
Lincoln and Mercury vehicles."

Sync will debut this calendar year on the 2008 Ford Focus, Fusion, Five
Hundred, Edge, Freestyle, Explorer and Sport Trac; Mercury Milan, Montego
and Mountaineer; and Lincoln MKX and MKZ. The technology will be on all
Ford, Lincoln and Mercury vehicles in the near future.

"Ford and Microsoft share a vision for a future where drivers are safely
connected to the people, information and entertainment they care about
while they are on the road," said Bill Gates, Chairman, Microsoft
Corporation.  "Built on Microsoft Auto technology, Ford Sync delivers an
in-car system that is an important step toward achieving this vision.
Using software that bridges the automotive and consumer electronics
industries, Sync will help revolutionize the driving experience by
providing a simple system that intelligently connects mobile phones, music
players, and more."

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.


MERIDIAN AUTOMOTIVE: Posts US$12.9 Mln Net Loss in November 2006
---------------------------------------------------------------

             Meridian Automotive Systems - Composites
                 Operations, Inc. and Subsidiaries
               Unaudited Consolidated Balance Sheet
                      As of November 30, 2006
                          (In Thousands)

CURRENT ASSETS:
    Cash                                                       -
    Accounts receivable, net                           US$74,779
    Intercompany receivable                               14,934
    Inventories                                           60,138
    Tooling costs in excess of billings and others        26,181
                                                      ----------
       TOTAL CURRENT ASSETS                              176,032
                                                      ----------
    Property, plant and equipment, net                   198,106
    Intangible assets                                     15,163
    Investment in subsidiaries                            23,863
    Other assets                                          10,800
                                                      ----------
       TOTAL ASSETS                                   US$423,964
                                                      ==========

CURRENT LIABILITIES NOT SUBJECT TO COMPROMISE:
    Current portion of long term debt                     56,522
    Accounts payable                                      51,677
    Accrued expenses                                      41,444
    Tooling billings in excess of costs                    4,520
                                                      ----------
       TOTAL CURRENT LIABILITIES                         154,163
                                                      ----------

    Liabilities subject to compromise                    816,178

    Non-Current Liabilities Not Subject to Compromise:
       Other long-term liabilities                         8,745
       Accumulated post-retirement benefit obligation     23,267
                                                      ----------
       TOTAL LIABILITIES                               1,002,353
       SHAREHOLDERS' EQUITY                            (578,389)
                                                      ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY            US$423,964
                                                      ==========

              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
                 Unaudited Statement of Operations
                      November 1 to 30, 2006
                           (In Thousands)

Net sales                                              US$62,477
Cost of sales                                             61,032
                                                      ----------
Gross profit                                               1,445

Selling, general and administrative expenses               2,800
Restructuring charges                                      1,840
                                                      ----------
Operating income (loss)                                  (3,195)

Interest expense, net                                      8,753
Other (expense) income                                      (19)
Chapter 11 and related reorganization items                1,023
                                                      ----------
Loss before provision for income taxes                  (12,952)
(Benefit) Provision for income taxes                          17
                                                      ----------
NET LOSS                                             (US$12,969)
                                                      ==========

              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
                 Unaudited Statement of Cash Flows
                      November 1 to 30, 2006
                           (In Thousands)

OPERATING ACTIVITIES:
    Net loss                                         (US$12,969)
    Adjustments required to reconcile net loss to net
     cash provided by (used in) operating activities:
       Depreciation, amortization, and impairment          4,328
       Change in working capital and other operating
        items                                             17,383
                                                      ----------
     Net cash provided by (used for) operating
      activities before reorganization items               8,742
                                                      ----------
     Operating cash flows from reorganization items:
        Chapter 11 and related reorganization items        1,023
        Payments on Chapter 11 and related reorg items   (1,169)
                                                      ----------
     Net cash provided by Chapter 11 and related
      reorg items                                          (146)

     Net cash provided by (used for) operating
      activities                                           8,596

INVESTING ACTIVITIES:
    Additions to property and equipment                   (1,055)
    Proceeds from sale or property and equipment               9
                                                      ----------
    Net cash used for investing activities               (1,046)
                                                      ----------

FINANCING ACTIVITIES:
    Proceeds from prepetition borrowings                       -
    Repayments of prepetition borrowings                       -
    Proceeds from DIP credit facility                     28,800
    Repayments of DIP credit facility                   (34,000)
    Repayments on prepetition long-term debt                   -
    Deferred financing costs capitalized                 (2,350)
                                                      ----------
Net cash (used for) provided by financing activities     (7,550)
                                                      ----------
Net increase (decrease) in cash                                -
                                                      ----------
Cash and Cash Equivalents, beginning of period                 -

Cash and Cash Equivalents, end of period                       -
                                                      ==========

Headquartered in Dearborn, Mich., Meridian Automotive Systems
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and other interior
systems to automobile and truck manufacturers.  Meridian operates 22
plants in the United States, Canada and Mexico, supplying Original
Equipment Manufacturers and major Tier One parts suppliers.  The Company
and its debtor-affiliates filed for chapter 11 protection on April 26,
2005 (Bankr. D. Del. Case Nos. 05-11168 through 05-11176).  James F.
Conlan, Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S. Brady,
Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq., and Ian S.
Fredericks, Esq., at Young Conaway Stargatt & Taylor, LLP, represent the
Debtors in their restructuring efforts.  Eric E. Sagerman, Esq., at
Winston & Strawn LLP represents the Official Committee of Unsecured
Creditors.  The Committee also hired Ian Connor Bifferato, Esq., at
Bifferato, Gentilotti, Biden & Balick, P.A., to prosecute an adversary
proceeding against Meridian's First Lien Lenders and Second Lien Lenders
to invalidate their liens.  When the Debtors filed for protection from
their creditors, they listed US$530 million in total assets and
approximately US$815 million in total liabilities.  (Meridian Bankruptcy
News, Issue No. 48;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


NORTEL: Closes US$320 Mil. Cash Sale of Unit to Alcatel-Lucent
--------------------------------------------------------------
Nortel Networks Corp. closed the sale of assets and liabilities related to
its UMTS access business to Alcatel-Lucent.  The sale closed on Dec. 31,
2006.  The transaction is for US$320 million in cash less significant
deductions and transaction related costs.

The closing of the sale follows the signing of the definitive agreement on
Dec. 4, 2006, and the signing of the non-binding Memorandum of
Understanding between the companies on
Sept. 1, 2006.  As part of the agreement, approximately 1,700 of Nortel's
UMTS access employees have transferred to Alcatel-Lucent.  Regulatory
approvals have been met.  With the completion of this sale, Alcatel-Lucent
acquired the UMTS access product portfolio, associated patents and
tangible assets as well as customer contracts from Nortel.

                        About Nortel

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

                        *    *    *

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


RIO VISTA: Earns US$4.6 Million in Quarter Ended September 30
-------------------------------------------------------------
Rio Vista Energy Partners LP filed its third quarter financial statements
for the three months ended Sept. 30, 2006, reporting a US$4,697,000 net
income on US$191,000 of revenues, compared with US$1,074,000 net loss with
no revenues in the comparable period of 2005.

At Sept. 30, 2006, the company's balance sheet showed US$18,364,000 in
total assets and US$2,123,000 in total liabilities resulting in
US$16,241,000 stockholders' equity.

A full-text copy of the regulatory filing is available for free
at http://ResearchArchives.com/t/s?180d

                     Going Concern Doubt

As reported on the Troubled Company Reporter on May 5, 2006,
Burton Mccumber & Cortez, L.L.P., in Brownsville, Texas, raised
substantial doubt about the ability of Rio Vista Energy Partners
L.P. to continue as a going concern after auditing the Company's
consolidated financial statements for the years ended
Dec. 31, 2004, and 2005.

                       About Rio Vista

Headquartered in Houston, Texas, Rio Vista Energy Partners L.P.
buys, transports and sells liquefied petroleum gas.  Rio Vista
owns and operates terminal facilities in Brownsville, Texas and in
Matamoros, Tamaulipas, Mexico and approximately 23 miles of
pipelines, which connect the Brownsville Terminal Facility to the
Matamoros Terminal Facility.  The primary market for Rio Vista's LPG is
the northeastern region of Mexico, which includes the states of Coahuila,
Nuevo Leon and Tamaulipas.


VALASSIS: ADVO Shareholders to Vote on Merger Pact on Feb. 22
-------------------------------------------------------------
ADVO, Inc., has scheduled a special meeting of stockholders for Feb. 22,
2007, to vote upon the proposal to adopt the amended merger agreement with
Valassis Communications, Inc.  Stockholders who hold shares at the close
of business on the record date, Jan. 12, 2007, will be eligible to vote at
this special meeting.  The proxy materials for this meeting will be filed
and mailed to stockholders in mid-to-late January.

                         About ADVO

Based in Windsor, Conn., ADVO, Inc. -- http://www.ADVO.com/
-- is a direct mail media company, with annual revenues of
US$1.4 billion.  Serving 17,000 national, regional and local
retailers, the company reaches 114 million households, more than
90% of the nation's homes, with its ShopWise(R) shared mail
advertising.  ADVO employs 3,700 people at its 23 mail
processing facilities, 33 sales offices.

                       About Valassis

Headquartered in Livonia, Michigan, Valassis Communications Inc.
(NYSE: VCI) -- http://www.valassis.com/-- provides marketing
services to consumer-packaged goods manufacturers, retailers,
technology companies and other customers with operations in the
United States, Europe, Mexico and Canada.  Valassis' products
and services portfolio includes: newspaper-delivered promotions
and advertisements such as inserts, sampling, polybags and on-
page advertisements; direct-to-door advertising and sampling;
direct mail; Internet-delivered marketing; loyalty marketing
software; coupon and promotion clearing; and promotion planning
and analytic services.  Valassis has been listed as one of
FORTUNE magazine's "Best Companies to Work For" for nine
consecutive years.  Valassis subsidiaries include Valassis
Canada, Promotion Watch, Valassis Relationship Marketing
Systems, LLC and NCH Marketing Services, Inc.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 1, 2006,
Moody's Investors Service downgraded Valassis Communications,
Inc.'s senior unsecured note ratings to Ba1 from Baa3.  Moody's
also assigned a Ba1 Corporate Family Rating, Ba1 Probability of
Default Rating, and LGD4 loss given default assessments to
Valassis' debt securities.  Moody's kept the ratings on review for
possible downgrade.


WERNER LADDER: Panel Consultant's Scope of Employment Expanded
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved the
request of the Official Committee of Unsecured Creditors appointed in
bankruptcy cases of Werner Holding Co. (DE), Inc., aka Werner Ladder
Company, and its debtor-affiliates, to expand the scope and duration of
Neil J. Minihane's employment as its consultant.

Pursuant to a Supplement Engagement Letter dated Nov. 21, 2006 with the
Committee, Mr. Minihane will continue to:

   (a) review and analyze the Debtors' historical financial and
       operations data relating to their operations in Chicago,
       Illinois and Juarez, Mexico, including, profits and loss
       information and cash usage analyses relating to these
       facilities;

   (b) assess and periodically advise the Committee regarding
       the status and progress of the transition of the Debtors'
       operations from Chicago to Juarez, including delivering a
       weekly summary report to the Committee every Friday, and
       providing suggestions or recommendations as may be
       appropriate or necessary;

   (c) advise and attend meetings of the Committee and its
       professionals, as appropriate;

   (d) advise and attend meetings with third parties, including
       the Debtors, as may be requested by the Committee;

   (e) be reasonably available for follow-up questions by the
       Committee concerning the report; and

   (f) perform general consulting services with respect to the
       Debtors' overall operations.

Under the Supplement Engagement Letter, Mr. Minihane will perform the
additional services to the Committee through and including Dec. 31, 2006.

Mr. Minihane will be:

   (i) paid US$15,000 per week, for a period of five weeks, or
       as extended by a Court order, commencing upon Court
       approval of the Supplemental Application; and

  (ii) reimbursed for reasonable and necessary expenses relating
       to the services provided.

Pursuant to the Supplement Engagement Letter, the Committee sought the
Court's authority for the Debtors' estates to continue to pay 85% of Mr.
Minihane subsequent US$15,000 weekly payments on an interim basis, at the
beginning of each week until Dec. 31, 2006, or as extended by the Court.
The Committee believed it is reasonable to allow Mr. Minihane to receive
interim compensation as services are performed, subject to Court approval
on a final basis, because he is not employed by a large company.

Mr. Minahe assured the Court that he does not hold or represent
any interest adverse to the Committee or the bankruptcy estates.
He maintains that he is a "disinterested person" as that term is
defined in Section 101 (14) of the Bankruptcy Code.

Headquartered in Greenville, Pennsylvania, Werner Holding Co. (DE), Inc.
aka Werner Ladder Co. -- http://www.wernerladder.com/
-- manufactures and distributes ladders, climbing equipment and ladder
accessories.  The company and three of its affiliates filed for chapter 11
protection on June 12, 2006 (Bankr. D. Del. Case No. 06-10578).

The firm of Willkie Farr & Gallagher LLP serves as the Debtors'
counsel.  Kara Hammond Coyle, Esq., Matthew Barry Lunn, Esq., and Robert
S. Brady, Esq., Young, Conaway, Stargatt & Taylor, LLP, represents the
Debtors as its co-counsel.  The Debtors have
retained Rothschild Inc. as their financial advisor.  Greenberg
Traurig LLP is counsel to the Official Committee of Unsecured
Creditors.  Jefferies & Co serves as the Committee's financial
advisor.

At March 31, 2006, the Debtors reported total assets of
US$201,042,000 and total debts of US$473,447,000.




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


* NICARAGUA: Pre-Qualifies Four Firms in Oil Exploration Bidding
----------------------------------------------------------------
Donald Espinosa -- the hydrocarbons director of Instituto Nicaraguense de
Energia, the energy regulator in Nicaragua -- told Business News Americas
that the regulator has pre-qualified four companies for second round
bidding for offshore oil exploration and production contracts.

Mr. Espinosa said that the pre-qualifiers are all international companies
and have begun to buy bidding documents, BNamericas notes.

Though the pre-qualification phase will close at the end of February, the
round's timetable probably will be pushed back after Daniel Ortega, the
president-elect of Nicaragua, takes office on Jan. 10.  The end of January
or early February could release a new calendar, BNamericas says, citing
Mr. Espinosa.

According to BNamericas, blocks in the second round cover 84,123 square
kilometers and 33,546 square kilometers offshore the Caribbean and Pacific
coasts, respectively.

BNamericas relates that contracts in the second round will reflect those
in the first round with up to 4,000 square kilometers per contract.  The
contracts cover six year of exploration and 30 years of production.

BNamericas states that five exploration and production concession
contracts were signed in the first round:

          -- Industrias Oklahoma Nicaragua picked up 19 Pacific
             offshore blocks (3,423 square kilometers);

          -- Infinity picked up Caribbean areas in the Perlas
             (2,291 square kilometers) and Tyra (3,330 square
             kilometers) blocks; and

          -- MKJ Exploraciones picked up areas in Perlas (4,000
             square kilometers) and Tyra (4,000 square
             kilometers).

                        *    *    *

Moody's Investor Service assigned these ratings to Nicaragua:

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




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


AES CORP: Gets Hydroelectric Build-Operate Concessions in Panama
----------------------------------------------------------------
An official of Asep, the public services regulator in Panama, told
Business News Americas that the regulator has awarded three hydroelectric
build and operate concessions that total 416 megawatts in installed
capacity to AES Corp.

BNamericas relates that the projects are:

          -- Gavilan (158 megawatts),
          -- Cauchero II (132 megawatts), and
          -- Chan-220 (126 megawatts), which would use water
             from the Changuinola river in Bocas del Toro.

The official told BNamericas that AES Corp. was given one year to present
the projects' final design.

AES Corp. runs four hydro plants with total 470 megawatts of installed
capacity and one 43-megawatt thermal plant in Panama, BNamericas states.

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

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

                        *    *    *

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




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


HERTZ CORP: Parent Discloses Strategies to Boost Competitiveness
----------------------------------------------------------------
Hertz Global Holdings, Inc., disclosed the first in a series of
initiatives to further improve Hertz's competitiveness and industry
leadership.

The company said that targeted job reductions affecting approximately 200
employees are intended to help streamline decision-making and improve
service, in part by de-layering management in several departments.  The
job reductions are occurring at the company's corporate headquarters in
Park Ridge, N.J., the U.S. service center in Oklahoma City, and in U.S.
field operations, and are expected to result in annualized savings of up
to US$15.8 million.  The company anticipates incurring an estimated US$3.3
million-US$3.8 million restructuring charge for severance and related
costs that will be taken in the first quarter of 2007.

The company said that the job reductions are occurring in the context of
initiatives intended to improve operational efficiency and reduce costs
worldwide.  The initiatives focus on reducing new car costs, improving
process efficiencies at its car and equipment rental locations,
centralizing purchasing and organizational restructuring.

"Hertz is generating solid top-line growth and profits, enabling us to
take steps to reduce costs and improve efficiency from a position of
strength," said Mark P. Frissora, Chairman and CEO of Hertz.

"Job reductions are a difficult decision, and we regret the impact on
affected employees, but the management team recognizes that fleet cost
inflation and competitive conditions require us to act now. Throughout
2007, Hertz will implement a series of operational initiatives that should
result in even higher levels of efficiency, enabling the company to
maintain its position as the premium brand and service leader in our
markets," added Mr. Frissora.

              About Hertz Global Holdings, Inc.

Hertz Global Holdings, Inc., the indirect parent corporation of
The Hertz Corp., is the largest worldwide general use car rental
brand and one of the largest equipment rental businesses in the
United States.  In its car rental business segment, Hertz and
its independent licensees and associates accept reservations for
car rentals at approximately 7,600 locations in approximately
145 countries.

                       About Hertz Corp.

Hertz Corp. -- https://www.hertz.com/ -- a global car rental company,
participates primarily in the on-airport segment
of the car rental industry.  This segment, which generates
approximately 69% of Hertz's consolidated revenues, is heavily
reliant on airline traffic.  Demand tends to be cyclical, and
can also be affected by global events such as wars, terrorism,
and disease outbreaks.  Hertz has also grown its off-airport
business (12% of consolidated revenues), the segment of the car
rental business that is less cyclical and more profitable, but
which is dominated by 'A-' rated Enterprise Rent-A-Car Co.
Through its Hertz Equipment Rental Corp. subsidiary (HERC, 18%
of consolidated revenues), Hertz also operates one of the larger
industrial and construction equipment renters in the U.S., along
with some European locations.  Hertz has operations in
Philippines, Hungary, and Peru, among others.

                        *    *    *

Standard & Poor's Ratings Services affirmed on Nov. 16, 2006, its ratings
on Hertz Corp., including the 'BB-' corporate credit rating, and removed
them from CreditWatch, where they were placed with negative implications
June 26, 2006.  S&P said the outlook is negative.




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


MUSICLAND HOLDING: Posts US$602,000 Net Loss in November 2006
-------------------------------------------------------------

                       Musicland Holding Corp.
                      Consolidated Balance Sheet
                       As of November 30, 2006

ASSETS
Current Assets
   Cash                                           US$28,215,000
   Letter of Credit/Other Deposits                      931,000
   Other
      Amounts due from TransWorld                     6,279,000
      Receivables from Sub-leases                       774,000
      Amounts due from GOB sales                              0
      Miscellaneous CC                                   29,000
      Vendors Credit due from services                2,608,000
                                                  -------------
      Total                                          38,836,000

Fixed Assets                                                  0
Other non-current assets
   Transport Logistic deposit                                 0
   Insurance Deposits                                 3,977,000
                                                  -------------
      TOTAL ASSETS                                US$42,813,000
                                                  =============

Liabilities & Shareholders' deficit
Current liabilities
   Accounts payable
      Due to Transworld                                    US$0
      Due to Deluxe                                           0
      A/P                                                     0
   Other accrued liabilities
      Logistic Accrual                                  415,000
      Deferred Income                                         0
      Insurance Reserve                               3,380,000
      Accrued Payroll & Employee Benefits:
         Accrued Vacation                                 7,000
         Accrued Severance                                    0
         Accrued Employer Payroll Taxes                  15,000
         Health Insurance Benefits Reserves             251,000
      Sales Tax                                         178,000
      5% Admin. Fee on Wachovia L/C                     250,000
      FY06 Tax Return & Employee Benefit                      0
         Audit Services                                  62,000
      Payroll/W2 & 1099 System                           46,000
      Miscellaneous                                      29,000
   Gift Card liabilities                                      0
                                                  -------------
      Total                                           4,634,000
                                                  -------------

DIP financing                                                 0
Other LT Liabilities                                          0
Liabilities subject to compromise                   330,247,000
Shareholders' deficit                              (292,068,000)
                                                  -------------
      TOTAL LIABILITIES &
      SHAREHOLDERS' DEFICIT                       US$42,813,000
                                                  =============

                       Musicland Holding Corp.
                       Statement of Operations
               For the Month Ended November 30, 2006


Merchandise revenue                                           -
Non-merchandise revenue                                       -

   Net sales                                                  -

Cost of good sold                                             -

   Gross Profit                                               -

Store operating expenses
   Payroll                                           US$218,000
   Occupancy                                                  0
   Other                                                126,000
                                                  -------------
      Store expenses                                          0
                                                  -------------
General & administrative                                344,000
                                                  -------------
EBITDA (Loss)                                          (344,000)
                                                  -------------

   Hilco 340 Store GOB                                        0
   Chapter 11 & related charges                        (491,000)
   Sale to Transworld                                         0
   Hilco 65                                                   0
   Media Play Wind down                                       0
   Depreciation & Amortization                                0
                                                  -------------
      Operating income (Loss)                          (835,000)

   Interest income (expense)                             78,000
   Other non-operating charges                          155,000
                                                  -------------
      Earnings before Taxes                            (602,000)
                                                  -------------
   Income tax                                                 0
                                                  -------------
      Net earnings (Loss)                           (US$602,000)
                                                  =============

                       Musicland Holding Corp.
                       Statements of Cash Flow
               For the Month Ended November 30, 2006


Operating activities
   Net earnings (Loss)                              (US$602,000)
   Adjustments to reconcile net earnings (loss)
      to net cash provided by (used in)
      operating activities:                             264,000
         Loss on utility deposits write off                   0

   Changes in operating assets & liabilities:
      Inventory                                               0
      Other current assets                            3,974,000
      Other Non-current Assets                       (3,427,000)
      Accounts payable                                        0
      Other accrued liabilities                               0

      Liabilities subject to compromise                       0
                                                  -------------
   Net cash provided by (used in)
      operating activities                              209,000
                                                  -------------

Investing activities
   Change in other long-term asset/liabilities                -
   Retirement of fixed assets                                 -
      Net cash                                                -

Financing activities
   Distribution to Secured Creditors                          0
                                                  -------------
Increase/decrease in cash                               209,000
                                                  -------------
   Cash at the beginning of Period                   28,006,000
                                                  -------------
   Cash at the end of Period                      US$28,215,000
                                                  =============

Headquartered in New York, New York, Musicland Holding Corp., is a
specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 25; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).




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


BRITISH WEST: Shareholders Told Stocks Are Worth Nothing
--------------------------------------------------------
British West Indies Airlines aka BWIA Director William Lucie-Smith told
minority shareholders at a meeting that their remaining 3% of the
airline's stocks were worthless as the airline operated at a loss, which
was forecasted to be in excess of US$50 million for this year,
Hardbeatnews reported.

The airline's shares were delisted from the Trinidad and Tobago Stock
Exchange and operations were formally closed on
Dec. 31, 2006, making way for Caribbean Airline Limited.  The government
holds 97% of the stocks.

Upon hearing the news, some shareholders suggested that the government
should pay them off for their faith in the national airline and believing
that the government is capable as it had infused capital for the airline's
closure and the setting up of Caribbean Airlines, Trinidad and Tobago
Express reported.

The Express said that the government is weighing its options and exploring
the situation with the shareholders, citing Finance Minister Christine
Sahadeo.  She expects that in two weeks time, the government will answer
the shareholders' queries to what will happen of their remaining 3% stake
in the airline.

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.




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


CITGO PETROLEUM: 24 Service Stations Switching Brands
-----------------------------------------------------
Some 24 service stations in Kentucky, Indiana, and Tennessee will abandon
the Citgo Petroleum Corp. brand soon, Messenger-Inquirer reports.

Valor Oil is based in Owensboro.  It supplies stations in three states.

Gary Emmick, the head of Valor Oil, told Messenger-Inquirer that the firm
will soon switch from Citgo Petroleum to Texaco and Marathon gas, diesel
fuel and lubricants.  Valor will continue to supply Chevron products,
including Texaco and Marathon.

About eight of the Citgo Petroleum stations Valor Oil supplies will use
the Texaco brand, while 16 will become Marathon outlets,
Messerger-Inquirer says, citing Mr. Emmick.

Messenger-Inquirer relates Franey's Food Marts abandoned Citgo Petroleum
in December to use the Texaco brand.

Service stations have started abandoning Citgo Petroleum after Venezuela's
President Hugo Chavez called US President George W. Bush a devil during
his United Nations speech on Sept. 20, 2006.

Citgo Petroleum has disclosed plans to pull out of Kentucky this year,
Messenger-Inquirer states.

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.


CITGO PETROLEUM: Posts 455,000 Barrels Per Day Crude Oil Import
---------------------------------------------------------------
Citgo Petroleum Corp. has imported 455,000 barrels per day of crude oil in
the first six months of 2006, excluding spin-offs and partnerships with
private companies, US Energy Information Administration reports.

El Universal relates that Citgo Asphalt, an affiliate of Citgo Petroleum,
imported 77,600 barrels per day of crude oil from several suppliers.

According to El Universal, Lyondell-Citgo, which up to 2006 comprised
Citgo Petroleum and Lyondell Chemical, bought an average of 261,000
barrels per day of crude to feed its refining circuit, out of which 3%
came from:

          -- Bahrain,
          -- Iran,
          -- Iraq,
          -- Kuwait,
          -- Qatar,
          -- Saudi Arabia, and
          -- the United Arab Emirates.

El Universal underscores that other firms where Petroleos de Venezuela,
the Venezuelan parent of Citgo Petroleum, owns a majority stake like PDV
Midwest bought 140,000 barrels per day of foreign crude oil.

The Chalmette plant, which is operated by ExxonMobil and where Petroleos
de Venezuela owns a 50% stake, imported some 99,500 barrels per day of
crude oil, the report says.

In the second half of 2006, a decrease in foreign crude oil imports is
expected, as well as a decline in sales of Citgo Petroleum finished
by-products, after a decrease in Citgo Petroleum-branded gas stations in
the US, El Universal states.

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

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

                        *    *    *

Standard and Poor's Ratings Services assigned a 'BB' rating on
Citgo Petroleum Corp.

Citgo Petroleum carries Fitch's BB- Issuer Default Rating.
Fitch also rates the company's US$1.15 billion senior secured
revolving credit facility maturing in 2010 at 'BB+', its US$700
million secured term-loan B maturing in 2012 at 'BB+', and its
senior secured notes at 'BB+'.


DAIMLERCHRYSLER AG: Insurers Agree to Repay EUR168 Million
----------------------------------------------------------
Insurance firms led by ACE Ltd. have agreed to reimburse around EUR168
million to DaimlerChrysler AG over a EUR300-million class action
settlement in 2003, The Associated Press reports.

A group of Chrysler shareholders filed a US$22-billion class suit against
DaimlerChrysler over comments of former chairman Juergen Schrempp in 2000.
Mr. Schrempp described the 1998 tie-up between Daimler and Chrysler as a
takeover, but executives from both companies depicted it as a merger of
equals.  Mr. Schrempp noted that describing the combination as a merger
rather than a takeover was "for psychological reasons" only.

According to AP, DaimlerChrysler had settled the legal action for EUR300
million, assuming that liability insurance on Mr. Schrempp would cover the
costs.  However, only one insurer, AIG, paid DaimlerChrysler, forcing the
company to sue its other insurers to recover the money, AP relays.

Thomas Froehlich, a spokesman for DaimlerChrysler, and Lothar Riedle,
ACE's chief in Germany, confirmed the agreement to AP but declined to give
further details.

                    About DaimlerChrysler

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

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

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

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

                           Outlook

As reported in the TCR-Europe on Oct. 30, DaimlerChrysler said
it expects a slight decrease in worldwide demand for automobiles
in the fourth quarter and thus slower market growth than in Q4
2005.  For full-year 2006, the company anticipates market growth
of around 3%.  It expects unit sales in 2006 to be lower than in
the previous year (4.8 million units).

On Sept. 15, DaimlerChrysler reduced the Group's operating-
profit target for 2006 to an amount in the magnitude of US$6.3
billion.  Although the company now has to assume that the profit
contribution from EADS will be US$0.3 billion lower than
originally anticipated because of the delayed delivery of the
Airbus A380, DaimlerChrysler is maintaining this earnings target
due to very positive business developments in the divisions
Mercedes Car Group, Truck Group and Financial Services.


DAIMLERCHRYSLER AG: Sales in Non-US Markets Rise 6.6% in 2006
-------------------------------------------------------------
DaimlerChrysler AG’s Chrysler Group told the Associated Press that sales
in non–US markets grew 6.6% in 2006, compared with 2005, due to strong
sales of new vehicles like the Dodge Caliber and Jeep Compass.

AP underscores that the Auburn Hills, Michigan–based arm of the
DaimlerChrysler said it sold 555,924 vehicles outside of the US in 2006.

Sales increased 15% to almost 207,000 units outside North America in 2006,
compared with 2005.  Sales in Mexico increased by 3.3% and sales of
DaimlerChrysler Canada rose 1.7% on five consecutive months of sales
growth, according to AP.

Sales in the US declined 7% to 2.14 million units in 2006, compared with
2005, AP states.

Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.  It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.

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

DaimlerChrysler has operations in Australia, China, Indonesia,
Japan, Korea, Malaysia and Thailand.

DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of EUR5 billion (US$6.4
billion) based on an expected full-year operating loss of
approximately EUR1 billion (US$1.2 billion) for its Chrysler
Group.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures - particularly on light trucks - by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.  Chrysler Group
will take additional production cuts in the third and fourth
quarters to reduce dealer inventories and make way for its
current product offensive.


* VENEZUELA: Government Won't Renew License of Radio Caracas
------------------------------------------------------------
"They better go packing and see what they are going to do as of March
because the broadcasting license for this coup-plotting TV channel that
used to be called Radio Caracas Television will not be renewed!"
Venezuelan President Hugo Chavez said at his annual greeting speech, El
Universal reports.

The TV network's broadcasting license will expire in the first quarter of
this year.

"This resolution has been drafted already.  Start turning your equipment
off! No media at the service of coup-plotting, against the people, against
the nation, against the national independence and against the dignity of
the Republic will be tolerated in this country! Venezuela has to be
respected!" The Venezuela ruler emphasized.

"I am making this announcement before the date comes (for expiration of
RCTV broadcasting license) and they continue to spread their story that
the license is in force for 20 years.  Wrong! It is effective for 20 years
if you are good! This is over!" President Chavez exclaimed, according to
El Universal.

Minister of Communication and Information, William Lara, told El Universal
that the government's decision is legal and governed by the Organic Law on
Telecommunications.

"Regulations are clear.  Broadcasting licenses granted by the Venezuelan
State are in force for 20 years, and such a term expires on May 27, 2007,
for RCTV," Minister Lara told state-run TV channel VTV, as reported by the
official news agency ABN.

At the same interview with VTV, the communications minister refuted claims
by RCTV CEO Marcel Granier that the broadcasting license was renewed in
2001.  According to Mr. Lara, the government only conducted a census "to
know the exact number of telecommunication operators in the country,
nothing else."

"That survey was not binding.   Therefore, Marcel Granier is making a
misconstruction when he thinks that the license would be renewed
automatically," Mr. Lara underscored, according to El Universal.

According to ABN, the revocation of the license was in part due to the
network's destabilization campaign against the government.

"We have to remind the decisive role RCTV played during the coup d'etat in
2002 and the manipulation it deployed during that time," Minister Lara was
quoted by ABN as saying.

Meanwhile, the government assured everyone that it won't expropriate the
network's assets.

"This is no revocation or expropriation, but termination of the license.
The premises of RCTV are owned by Marcel Granier and the other
shareholders of that company, and nobody is to act against such
facilities," Mr. Lara said in a press statement.

Separately, RCTV's CEO said in reports that the current Venezuelan
administration wants to crush press freedom in the country through his
"authoritarian" and "populist" government.

"Obviously, just like in all populist and authoritarian regimes, there is
a wish to control information and follow the model of (Fidel) Castro,
(Juan Domingo) Peron, (Benito) Mussolini, (Adolf) Hitler.  This government
has been very industrious in this connection, showing a remarkable stress
on propaganda," Mr. Granier told Colombia Caracol Radio.

"We all know what this is all about: they are trying to dismantle freedom
of speech and force the media to obey Government guidelines, while leading
reporters to spread pro-government propaganda rather than exerting their
profession independently."

In reaction to the decision, the Reporters Without Borders organization
claimed that the move against RCTV is "a serious attack against editorial
pluralism," claiming it shows a clear intention to interfere with media,
published reports say.

Reporters Without Borders issued a statement urging the government to
reconsider its decision.

"This is a new outrage against freedom of the press and speech. This is
simply retaliation against a critic voice annoying him (Chavez)," Gonzalo
Marroquin, Commission on Freedom of the Press and Information's president,
was quoted by El Universal as saying.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'.  At the same time, the
agency also affirmed the short-term foreign currency IDR at 'B'
and the Country Ceiling at 'BB-'.  Fitch said the outlook on the
ratings remains stable.


* VENEZUELA: Rafael Ramirez Keeps Energy & Oil Minister Post
------------------------------------------------------------
Rafael Ramirez will remain as energy and oil minister of Venezuela, the
country's President Hugo Chavez told Business News Americas.

President Chavez said in a televised speech, "I ratify Rafael Ramirez in
his post."

As reported in the Troubled Company Reporter-Latin America on Dec. 21,
2006, Mr. Ramirez resigned as Venezuela's energy and oil minister but
remained as president of Petroleos de Venezuela SA, the nation's
state-owned oil company.  President Chavez had requested the resignation
of his ministers and was responded with the filing of resignation letters.
The ministers stayed in their posts, waiting for their replacements.

However, President Chavez told BNamericas that all his ministers will stay
on, except Jesse Chacon -- the interior minister -- and Nelson Merentes,
the finance minister.

                        *    *    *

As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'.  At the same time, the
agency also affirmed the short-term foreign currency IDR at 'B'
and the Country Ceiling at 'BB-'.  Fitch said the outlook on the
ratings remains stable.


* VENEZUELA: S&P Examines Long-Term Economic Challenges
-------------------------------------------------------
Standard & Poor's Ratings Services issued a report that examines some of
the long-term economic challenges facing the Bolivarian Republic of
Venezuela (BB-/Positive/B sovereign credit ratings) following the
reelection of President Hugo Chavez.

The report, entitled "Credit FAQ: Venezuela's Outlook For 2007 (And
Beyond) After The Presidential Elections," finds that, with the election
cycle over, the government could begin to sharpen its focus on domestic
problems such as crime and corruption and, perhaps more importantly from a
ratings perspective, inflation and the country's longer-term investment
environment.

As such, Standard & Poor's Ratings Services credit analyst Richard Francis
said 2007 should prove to be a pivotal year for the policy direction the
government takes, and will prove key to any future rating actions over the
next several years.

"High oil prices have generated large current account surpluses, which, in
turn, have boosted the external assets of the public sector," said Mr.
Francis.  "However, the economic policy mix remains problematic due to
high levels of government spending that is causing inflationary pressures
to build.  In addition, the outlook for the all-important energy sector
remains unclear, and 2007 will prove to be decisive for the directions
taken by both state-owned Petroleos de Venezuela and the private sector,"
he added.

Mr. Francis explained that an upgrade could result if the government
successfully trims its spending, which is putting significant pressure on
consumer prices and, in turn, resulting in increased open market
operations by the central bank and now totals 30% of total government
debt.

"Looking ahead, future investment remains uncertain given the government's
decision to unilaterally change its business dealings with foreign oil
companies," Mr. Francis said.  "Private investment will be on hold until
the new rules of the game are clear.  However, given Venezuela's vast
potential, private oil companies will likely begin investing again within
the next year and a half," he added.

Standard & Poor's said that a much-improved fiscal position and
significantly lower gross debt stock, along with coherent policies to
mitigate against future oil price shocks, could eventually result in an
investment-grade rating, as was the case for Russia and Kazakhstan.

"Much like Venezuela, the political environment in these two countries was
a key constraint on the ratings, although extremely strong fiscal and
external indicators ultimately outweighed the political environment," Mr.
Francis noted.  "Given the wide range of reform needed in Venezuela,
further upgrades above the 'BB' level will likely take time, even if many
of the key economic indicators continue to improve," he concluded.


* S&P Says LatAm Media Companies Continue Improved Performance
--------------------------------------------------------------
The credit quality of Latin American media and entertainment companies
continued to improve through the second half of 2006, with rating actions
dominated by upgrades.  The good performance of media companies in the
region has been supported by the benign economic environment of the past
few years, which prompted a strong recovery in advertising revenues.  As a
result, these entities have generally reported consistent generation of
free operating cash flows that allowed for a significant reduction in
financial leverage.

Despite the favorable environment and the recent ratings upgrades, the
industry remains mostly noninvestment grade, with Grupo Televisa S.A.
(BBB/Stable/--) the sole exception.  The recent upgrades included
Brazilian TV companies Globo Comunicacao e Participacoes S.A. (Globo;
BB/Stable/--) and RBS Participacoes S.A. (RBS; B+/Stable/--), and
Argentinean newspaper company Arte Grafico Editorial Argentino S.A. (AGEA;
raBBB+/Stable/--).  Currently all media and entertainment issuers covered
by Standard & Poor's in the region retain a stable outlook.

Although Standard & Poor's does not anticipate as vigorous growth during
2007 as witnessed in 2004-2006, we see room for mild growth, at least in
line with the expectations for GDP growth in the region (of about 3%-5%).

Country Analysis

Argentina In line with the economic activity in the country (GDP growth of
8% during the third quarter of 2006) and better consumption fundamentals
in Argentina, media companies continue showing a positive performance.
The advertising pie in Argentina is highly dominated by television and
newspapers, each of which claimed 40%.  In the short term, the prospects
for the advertising sector remain positive due to the favorable
macroeconomic fundamentals, strong consumption patterns, and the upcoming
presidential election in 2007.

The increase in advertising spending comes mainly from the significant
growth in home appliances and supermarket chains advertising, the huge
expansion in the mobile telephone market, and the increased participation
of food and beverage and personal care products.  This and some
adjustments in advertising prices should help companies to offset
increasing costs such as wages and, in the case of newspapers, the higher
international newsprint prices.

Brazil

The outlook for Brazilian media companies in 2007 is generally favorable,
although we anticipate more challenges for advertising growth than in the
last few years of outstanding performance.  Standard & Poor's expects that
continued economic stability in the country, and some economic growth (GDP
growth of at least 3% according to current market consensus), should
support at least mild growth in corporate advertising expenditures through
2007 (by far the major source of revenue of local media companies).

Several Brazilian corporates allocated a significant portion of their
yearly advertising budget to the World Cup in June-July 2006, which
resulted in weaker advertising results for Brazilian media companies in
the second half of the year.  Nevertheless, the two rated issuers in
Brazil, Globo and RBS, have been recently upgraded, as they continue to
present improving financial results with sound generation of free
operating cash flows and continuous reduction in financial leverage.

Mexico

Credit quality for Mexican open-TV broadcasters remains stable, despite
the single-digit growth in the past few years and the expected cyclical
growth in revenues during 2006 from sales related to the World Cup and the
presidential election in Mexico.  Growth in consumer products advertising
and the authorization of several new nationwide banks are expected to make
up for a portion of the revenue downcycle.

On the other hand, changes to the regulatory environment have been
recently proposed regarding technology convergence and competition.  The
discussion about them has fueled expectations of new growth opportunities
in the telecom and media sector, though there are uncertainties about how
content will be distributed in a market with low broadband Internet and
pay-TV access, and high open-TV penetration and a reasonable (and still
growing) mobile phone teledensity.  In addition, these changes are
expected to bring new players (start-ups or merged entities) within a
couple of years, while currently narrow-focused media groups are designing
multi-media strategies.  A consequence of these evolving expectations is
the strengthening of M&A-related rumors, frequently affecting market
instrument valuation.


                         ***********


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

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

Copyright 2076.  All rights reserved.  ISSN 1529-2746.

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